In response to Regulation National Market System (Regulation NMS) and investors’ desire for more efficient trading, many exchanges are automating their equity trading systems. The Securities and Exchange Commission (SEC) 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.
The compliance dates represent a step towards full implementation of rules 610 and 611, which assure access to quotations and prevent ‘trade-throughs,’ respectively.
The extended dates are designed to provide all automated trading centers with sufficient time to meet the new intermediate compliance dates for posting final technical specifications and commencing full operation of their new or modified trading systems.
In addition, the extended dates give all securities industry participants an extension designed to facilitate a non-disruptive and cost-effective implementation of the new regulatory requirements by the securities industry.
