- Regulatory Newsletters
- NASDAQ OMX REGWATCH
- Current Regulatory Initiatives
- Tick Size Pilot Program
- Consolidated Audit Trail
- FINRA Rule 4540 Series - CARDS
- Regulation SCI
- ATS Trading Information
- Limit Up/Limit Down
- Market-Wide Circuit Breakers
- Clearly Erroneous Improvements
- Large Trade Reporting
- Market Access Rule
- Amendments to RegSHO
- CFTC-SEC Advisory Committee
- Market Structure Concept Release
- Contact Information
Current Regulatory Initiatives
NASDAQ OMX is always committed to working with regulators, exchanges and market participants to ensure trading is transparent and fair. To keep you informed of the ever-changing regulatory landscape of U.S. trading, refer to the information below regarding current regulatory initiatives.
|Limit Up-Limit Down Proposal|
On April 5, 2011, national securities exchanges and FINRA filed a proposal to establish a new "limit up-limit down" mechanism to address extraordinary market volatility in U.S. equity markets. Under the proposal, the mechanism would prevent trades in listed equity securities from occurring outside of a specified price band, which would be set at a percentage level above and below the average price of the security over the immediately preceding five-minute period. To accommodate more fundamental price moves, there would be a five-minute trading pause - similar to the pause triggered by the current circuit breakers - if trading is unable to occur within the price band for more than 15 seconds. The Limit Up-Limit Down plan is designed to replace the existing single stock circuit breakers in phases.
On July 18, 2013, the SEC approved Amendment #4 to the Plan to divide the implementation of Phase 2 into two stages. In the first stage of Phase 2, all Tier 2 NMS stocks were implemented beginning the week of August 5th, 2013 and ended the week of September 3rd, 2013. Starting on August 5th, 2013, the LULD bands begin at 9:30 a.m. E.T. and end at 3:45 p.m. ET each trading day, or fifteen minutes before the close in the case of an early scheduled close. The amended band times will apply to all the Tier 1 symbols and the Tier 2 symbols. In December, the NMS Plan Participants filed Amendment #6 that is immediately effective to include the last 15 minutes of regular trading starting February 24, 2014. Therefore, starting Monday, February 24th 2014, the LULD bands will begin at 9:30 a.m. E.T. and end at 4:00 p.m. ET each trading day. The addition of the last 15 minutes of trading will apply to all NMS Stocks.
|Clearly Erroneous Process Improvements|
On June 17, 2010, U.S. exchanges filed with the SEC rule amendments intended to improve the transparency of filings for clearly erroneous transactions following large market-wide events and trading pauses. The rules have been amended several additional times since the original filing, with the latest update occurring on June 19, 2014. This latest amendment provides that a series of transactions in a particular security on one or more trading days may be viewed as one event if all such transactions were effected based on the same fundamentally incorrect or grossly misinterpreted issuance information resulting in a severe valuation error for all such transactions. Additionally, the latest amendment addresses transactions to be nullified due to certain events associated with trading pauses.
On March 24, 2014 the SEC approved a proposal to extend the pilot period of amendments concerning clearly erroneous transactions to coincide with the pilot period for the NMS Plan to Address Extraordinary Market Volatility, which is set to expire on February 20, 2015.