SEC extends Reg. NMS deadlines

By: Ray Pellecchia

File Under: NYSE

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Here's the SEC's news release about extending the compliance dates for Reg. NMS. Excerpt:

Washington, D.C., May 18, 2006 — The Securities and Exchange Commission today extended the compliance dates for Rule 610 and Rule 611 of Regulation NMS, a series of initiatives designed to modernize and strengthen the national market system for equity securities. In response to Regulation NMS and the desire of investors for more efficient trading, many exchanges are automating their equity trading systems. The Commission is extending the compliance dates to give these exchanges additional time to develop their new trading systems, and to give the securities industry time to establish the access to these trading systems.

The initial compliance date for the rules has been extended from June 29, 2006, to a series of five dates, beginning on Oct. 16, 2006. In addition, the Commission, by separate order, has exempted until April 1, 2007, those self-regulatory organizations (SROs) that participate in the joint industry plans for distributing market data from compliance with the amended formula for allocating market data revenues to the SROs.

. . .

The extended compliance dates for Rule 610 and Rule 611 are as follows.

Oct. 16, 2006 (Specifications Date): Final date for publication of final technical specifications for the Regulation NMS-compliant trading systems of all automated trading centers that intend to qualify their quotations for trade-through protection under Rule 611 during the Pilot Stocks Phase and All Stock Phase (as defined below).

Feb. 5, 2007 (Trading Phase Date): Final date for full operation of Regulation NMS-compliant trading systems of all automated trading centers intending to qualify their quotations for trade-through protection under Rule 611 during the Pilot Stocks Phase and All Stocks Phase. The period from Feb. 5, 2007, to May 21, 2007, is the “Trading Phase.”

May 21, 2007 (Pilot Stocks Phase Date): Start of full industry compliance with Rule 610 and Rule 611 for 250 NMS stocks (100 NYSE stocks, 100 Nasdaq stocks, and 50 Amex stocks). The period from May 21, 2007 to July 9, 2007 is the “Pilot Stocks Phase.”

July 9, 2007 (All Stocks Phase Date): Start of full industry compliance with Rule 610 and Rule 611 for all remaining NMS stocks. The period from July 9, 2007, to Oct. 8, 2007, is the “All Stocks Phase.”

Oct. 8, 2007 (Completion Date): Completion of phased-in compliance with Rule 610 and Rule 611.

The Commission’s extension of compliance dates and exemptive order are available on its website at www.sec.gov/spotlight/regnms.htm.