United States: SEC Approves NMS Plan To Implement Tick Size Pilot For Small Cap Stocks

In June 2014, the Securities and Exchange Commission ("SEC" or "Commission") issued an order directing the national securities exchanges and the Financial Industry Regulatory Authority (collectively, the "Participants") to act jointly in developing and filing with the Commission a national market system plan to implement a tick size pilot program ("Order").1 On November 7, 2014, the SEC published for comment the Participants' proposal to establish a national market system plan ("Plan") to implement the Order.2 After considering the 77 comment letters submitted in response to the proposal, the SEC amended the Plan in several ways, and approved the Plan in its modified form on May 13, 2015.3 The Plan describes a two-year pilot program to widen the minimum quoting and trading increments for some stocks with smaller capitalizations ("Pilot"). The Plan sets forth proposed procedures for selecting a representative group of stocks of small capitalization companies ("Pilot Securities") and subjecting groups of those Pilot Securities ("test groups") to various requirements with regard to quoting and trading increments. As set forth in more detail in the Plan, Participants will be required to adopt rules to ensure that Pilot Securities in the test groups are quoted and traded in permitted increments.4 Similarly, Participants and members of Participants (i.e., broker-dealer members of the exchanges and FINRA) will be required to establish, maintain and enforce written policies and procedures reasonably designed to comply with the quoting and trading increments for the Pilot Securities and other requirements of the Plan. The Pilot is required to be implemented within one year from the date of publication of the SEC's approval order—that is, by May 13, 2016.

The Plan is a response to concerns that the existing minimum pricing increments (exchange-traded stocks priced equal to or greater than $1.00 per share trade in minimum increments of a penny) may be detrimental to small and mid-size companies. The Plan is intended to assist the Commission, market participants, and the public in assessing the impact of different increment conventions on the trading and liquidity of stocks of small capitalization companies, and whether "wider minimum tick sizes for small capitalization stocks would enhance market quality to the benefit of market participants, issuers, and US investors."5

This alert summarizes key aspects of the approved Plan, in a Q&A format. 

1. How has the SEC modified the originally proposed Plan?

Based on its analysis of the proposed Plan and the input of commenters, the SEC made the following changes to the Plan as originally proposed:

  • extended the operative period of the Pilot ("Pilot Period") from one year to two years;
  • lowered the market capitalization threshold criteria for identifying Pilot Securities from $5 billion to $3 billion or less;
  • modified the trade-at prohibition by: (a) amending the definition of trade-at to clarify that the provision will be operative only during Regular Trading Hours;6 (b) removing the venue limitation7 in the exception to the trade-at prohibition that applies in circumstances where the order is executed by a trading center that is displaying a quotation, via either a processor8 or an SRO quotation feed9, at a price equal to the trade-at protected quotation but only up to the trading center's full displayed size; and (c) lowering the thresholds in the definition of "Block Size" from an order of at least 10,000 shares or with a market value of $200,000 to an order of at least 5,000 shares or a market value of at least $100,000;
  • modified the data elements related to Market Maker10 profitability data by: (a) removing the data element in Appendix C that would have required realized trading profits to be calculated net of fees and rebates; and (b) requiring further aggregation of the Market Maker profitability data made publicly available;
  • required Participants to provide an assessment regarding the impact of the Pilot on Market Maker profitability; and
  • modified the time when Participants must submit their assessments to the SEC.

2. What securities will be affected by the Plan?

Pilot Securities will include NMS stocks that are common stock of an operating company ("NMS common stock") and that meet the following criteria during the relevant measurement period, that is, the US trading days during the three calendar months ending at least 30 days before the start of the Pilot:

  • a market capitalization of $3 billion or less on the last day of the measurement period;
  • a consolidated average daily volume of one million shares or less during the measurement period;
  • a measurement period volume-weighted average price of at least $2;
  • a closing price of at least $2 on the last day of the measurement period; and
  • a closing price of not less than $1.50 on every trading day during the measurement period. 

Pilot Securities with prices that fall below $1.00 during the Pilot will remain in the program. The Pilot will exclude any NMS common stock that has its initial public offering within six months of the start of the two-year Pilot Period, because there would be insufficient baseline data against which to compare the Pilot performance of these stocks.

Each primary listing exchange will make publicly available for free on its website a list of those Pilot Securities listed on that exchange and included in the control group and in each test group. The list will be adjusted for ticker symbol changes and relevant corporate actions.11

3. How will Pilot Securities be allocated to different groups for testing?

The Pilot will be structured around four groups of securities—three test groups of 400 securities each and a control group of the remaining securities. After the complete list of Pilot Securities is determined, the Participants will select, by means of a stratified random sampling process, the Pilot Securities to be placed into the three test groups. Those Pilot Securities not placed into the three test groups will constitute the control group. To effect the stratified random sampling, Pilot Securities will be categorized based on price, market capitalization and trading volume, with each of those categories further subdivided into low, medium or high subcategories, for a total of 27 categories. A random sample of Pilot Securities from each of the 27 categories will be placed into the three test groups, in a number proportional to the category's size relative to the population of Pilot Securities. A primary listing market's stocks will be selected from each category and included in the three test groups in the same proportion as that primary listing market's stocks comprise each category of Pilot Securities.

4. What restrictions on quoting and trading will the Plan impose?

The Pilot will restrict quoting and trading increments for securities in the three test groups, as discussed below. To provide a baseline to analyze the economic effects of the wider quoting and trading increments required by the test groups, securities in the control group may be quoted and traded at any price increment currently permitted.

A. Test Group One

Securities in the first test group will be quoted in $0.05 minimum increments, but may continue to trade at any price increment currently permitted. Participants would adopt rules prohibiting Participants or members of Participants from displaying, ranking, or accepting from any person any displayable and any non-displayable bids or offers, orders or indications of interest in any Pilot Security in this test group in price increments other than $0.05. However, orders priced to execute at the midpoint and orders entered into a Participant-operated retail liquidity program may be ranked and accepted in increments of less than $0.05.

B. Test Group Two

Pilot Securities in this test group will be subject to the same quoting requirements as Test Group One, along with the applicable quoting exceptions. In addition, securities in the second test group may only be traded in $0.05 minimum increments, subject to certain exceptions. Participants will adopt rules prohibiting trading centers operated by Participants and members of Participants from executing orders in any Pilot Security in this test group in price increments other than $0.05. The $0.05 minimum trading increment also will apply to brokered cross-trades.12 

Pilot Securities in this test group may trade in increments less than $0.05 under the following circumstances:

  • Trading may occur at the midpoint between the national best bid and the national best offer ("NBBO"), or the midpoint between the best protected bid and the best protected offer;
  • Retail Investor Orders13 may be provided with price improvement that is at least $0.005 better than the best protected bid or the best protected offer; and
  • Negotiated Trades14 may trade in increments of less than $0.05.

C. Test Group Three

Securities in the third test group will be subject to the same quoting and trading restrictions as those in Test Group Two, along with the applicable exceptions. In addition, with certain exceptions, Test Group Three securities would be subject to a "trade-at" prohibition. Under the trade-at prohibition, the Plan will (1) prevent a trading center that was not quoting from price-matching protected quotations and (2) permit a trading center that was quoting a protected quotation to execute orders at that level, but only up to the amount of its displayed size. Accordingly, the Plan provides that Participants will adopt rules prohibiting trading centers operated by Participants and members of Participants from executing a sell order for a Pilot Security at the price of a protected bid or a buy order for a Pilot Security at the price of a protected offer for these securities during Regular Trading Hours.

Trading centers will be permitted to execute an order for a Pilot Security at a price equal to a protected bid or protected offer under the following circumstances: 

  • the order is executed by a trading center that is displaying a quotation, via either a processor or an SRO quotation feed, at a price equal to the traded-at protected quotation but only up to the trading center's full displayed size;
  • the order is of Block Size (that is, an order of at least 5,000 shares or with a market value of at least $100,000);
  • the order is a Retail Investor Order executed with at least $0.005 price improvement;
  • the order is executed when the trading center displaying the protected quotation that was traded at was experiencing a failure, material delay, or malfunction of its systems or equipment;
  • the order is executed as part of a transaction that was not a "regular way" contract;
  •  the order is executed as part of a single-priced opening, reopening, or closing transaction by the trading center;
  • the order is executed when a protected bid was priced higher than a protected offer in the Pilot Security;
  • the order is identified as an Intermarket Sweep Order;
  • the order is executed by a trading center that simultaneously routed Trade-at Intermarket Sweep Orders15 to execute against the full displayed size of any protected quotation in the Pilot Security that was traded at;
  • the order is executed as part of a Negotiated Trade;
  • the order is executed when the trading center displaying the protected quotation that was traded at had displayed, within one second prior to execution of the transaction that constituted the trade-at, a best bid or best offer, as applicable, for the Pilot Security with a price that was inferior to the price of the trade-at transaction;
  • the order is executed by a trading center which, at the time of order receipt, the trading center had guaranteed an execution at no worse than a specified price (a "stopped order"), where: (a) the stopped order was for the account of a customer; (b) the customer agreed to the specified price on an order-by-order basis; and (c) the price of the trade-at transaction was, for a stopped buy order, equal to the national best bid in the Pilot Security at the time of execution or, for a stopped sell order, equal to the national best offer in the Pilot Security at the time of execution; or
  • the order is for a fractional share of a Pilot Security, provided that such fractional share order was not the result of breaking an order for one or more whole shares of a Pilot Security into orders for fractional shares or was not otherwise effected to evade the requirements of the trade-at prohibition or any other provisions of the Plan.

5. Did the Participants provide examples of the operation of the trade-at prohibition?

To illustrate the operation of the trade-at prohibition, the Participants included the following examples in the Plan:

Example 1

The NBBO for Pilot Security ABC is $20.00 × $20.10. Trading Center 1 is displaying a 100-share protected bid at $20.00. Trading Center 2 is displaying a 100-share protected bid at $19.95. There are no other protected bids. Trading Center 3 is not displaying any shares in Pilot Security ABC but has 100 shares hidden at $20.00 and has 100 shares hidden at $19.95. Trading Center 3 receives an incoming order to sell for 400 shares. To execute the 100 shares hidden at $20.00, Trading Center 3 must respect the protected bid on Trading Center 1 at $20.00. Trading Center 3 must route a Trade-at Intermarket Sweep Order to Trading Center 1 to execute against the full displayed size of the protected bid, at which point Trading Center 3 is permitted to execute against the 100 shares hidden at $20.00. To execute the 100 shares hidden at $19.95, Trading Center 3 must respect the protected bid on Trading Center 2 at $19.95. Trading Center 3 must route a Trade-at Intermarket Sweep Order to Trading Center 2 to execute against the full displayed size of the protected bid, at which point Trading Center 3 is permitted to execute against the 100 shares hidden at $19.95.

Example 2

The NBBO for Pilot Security ABC is $20.00 × $20.10. Trading Center 1 is displaying a 100-share protected bid at $20.00. Trading Center 2 is displaying a 100-share protected bid at $20.00. Trading Center 2 also has 300 shares hidden at $20.00 and has 300 shares hidden at $19.95. Trading Center 3 is displaying a 100-share protected bid at $19.95. There are no other protected bids. Trading Center 2 receives an incoming order to sell for 900 shares. Trading Center 2 may execute 100 shares against its full displayed size at the protected bid at $20.00. To execute the 300 shares hidden at $20.00, Trading Center 2 must respect the protected bid on Trading Center 1 at $20.00. Trading Center 2 must route a Trade-at Intermarket Sweep Order to Trading Center 1 to execute against the full displayed size of Trading Center 1's protected bid, at which point Trading Center 2 is permitted to execute against the 300 shares hidden at $20.00. To execute the 300 shares hidden at $19.95, Trading Center 2 must respect the protected bid on Trading Center 3 at $19.95. Trading Center 2 must route a Trade-at Intermarket Sweep Order to Trading Center 3 to execute against the full displayed size of Trading Center 3's protected bid, at which point Trading Center 2 is permitted to execute against the 300 shares hidden at $19.95.

Example 3

The NBBO for Pilot Security ABC is $20.00 × $20.10. Trading Center 1 is displaying a 100-share protected bid at $20.00. Trading Center 1 is also displaying 300 shares at $19.90 on an SRO quotation feed. Trading Center 2 is displaying a 100-share protected bid at $19.95. Trading Center 2 is also displaying 200 shares on an SRO quotation feed at $19.90 and has 200 shares hidden at $19.90. Trading Center 3 is displaying a 100-share protected bid at $19.90. There are no other protected bids. Trading Center 2 receives an incoming order to sell for 700 shares. To execute against its protected bid at $19.95, Trading Center 2 must comply with the trade-through restrictions in Rule 611 and route an intermarket sweep order to Trading Center 1 to execute against the full displayed size of Trading Center 1's protected bid at $20.00. Trading Center 2 is then permitted to execute against its 100-share protected bid at $19.95. Trading Center 2 may then execute 200 shares against its full displayed size at the price of Trading Center 3's protected bid. To execute the 200 shares hidden at $19.90, Trading Center 2 must respect the protected bid on Trading Center 3 at $19.90. Trading Center 2 must route a Trade-at Intermarket Sweep Order to Trading Center 3 to execute against the full displayed size of Trading Center 3's protected bid, at which point Trading Center 2 is permitted to execute against the 200 shares hidden at $19.90. Trading Center 2 does not have to respect Trading Center 1's displayed size at $19.90 for trade-at purposes because it is not a protected quotation.

6. What data will be collected and published under the Plan?

Throughout the Pilot Period, Participants will collect a variety of data ("Trading Center Data") with respect to Pilot Securities,16 including the following:

  • daily market quality statistics categorized by security, order type, original order size, hidden status, and coverage under Rule 605 of Regulation NMS;
  •  specified data regarding market orders and marketable limit orders;
  • daily Market Maker registration statistics; and
  • daily Market Maker participation statistics.

In addition, members of Participants will be required to collect and provide to their designated examining authority the data in the first two bullets above, as applicable, subject to certain terms and conditions in the Plan. Participants and members of Participants operating a trading center also will be required to collect this data starting six months prior to the commencement of the Pilot, and for six months following the termination of the Pilot. Participants and the designated examining authorities will make the data publicly available for free on their websites, and will report the data to the SEC on a monthly basis. The data will be provided on a disaggregated basis by trading center. The data made publicly available will not identify the trading center that generated the data.

Market Makers will be required to provide to their designated examining authority specified data regarding daily Market Maker trading profits with respect to Pilot Securities on a monthly basis.17 Each Market Maker also will be required to provide its designated examining authority such daily data for dates starting six months prior to the Pilot Period through six months after the end of the Pilot Period. On a monthly basis, each designated examining authority will aggregate such data related to Market Makers categorized by the control group and each test group and make the aggregated data publicly available on its website for free. The data made publicly available will not identify the Market Makers that generated the data or the individual securities. Each designated examining authority also will report such data to the SEC, provided, however, that the data reported to the SEC will include the profitability statistics categorized by security.

7. What policies and procedures will Participants and members of Participants be required to have under the Plan?

The Plan requires Participants and members of Participants to establish, maintain and enforce written policies and procedures that are reasonably designed to comply with the quoting and trading increments for the Pilot Securities. Each Participant is required to develop appropriate policies and procedures that provide for collecting and reporting to the Commission the Trading Center Data. In addition, each Participant that is the designated examining authority of a member of a Participant operating a trading center must require such member to develop appropriate policies and procedures for collecting and reporting to the designated examining authority the Trading Center Data related to (1) market quality statistics and (2) market and marketable limit order data. Each Participant that is the designated examining authority of a member of a Participant operating a trading center is required to develop appropriate policies and procedures for collecting and reporting such Trading Center Data to the Commission.
In addition, each Participant that is a designated examining authority of a Market Maker must require such Market Maker to develop policies and procedures for collecting Market Maker profitability data and reporting it to the designated examining authority. Each Participant that is the designated examining authority of a Market Maker must develop appropriate policies and procedures that provide for collecting and reporting such data to the Commission on an aggregated basis. The designated examining authority also is required to develop policies and procedures reasonably designed to ensure the confidentiality of the non-aggregated data it receives from Market Makers.

8. How will the pilot be assessed?

No later than eighteen months after the start of the Pilot Period, the Participants will provide to the Commission and make publicly available a joint assessment of the impact of the Pilot. The assessment will be conducted using data generated during the first twelve months of the Pilot Period, or a subset of which that represents the impact of the Pilot. Such assessment will include:

  • an assessment of the statistical and economic impact of an increase in the quoting increment on market quality, the number of Market Makers, Market Maker participation, Market Maker profits, and market transparency;
  • an evaluation of whether any market capitalization, daily trading volume, or other thresholds can differentiate the results of the above assessments across stocks;
  • an assessment of the statistical and economic impact of the above assessments for the incremental impact of a trading increment and for the joint effect of an increase in a quoting increment with the addition of a trading increment;
  • an assessment of the statistical and economic impact of the above assessments for the incremental impact of a trade-at prohibition and for the joint effect of an increase in a quoting increment with the addition of a trading increment and a trade-at prohibition; and
  • an assessment of any other economic issues that the Participants believe the Commission should consider in any rulemaking that may follow the Pilot.

Further, Participants may individually submit to the Commission and make publicly available additional supplemental assessments of the impact of the Pilot.


Order Directing the Exchanges and the Financial Industry Regulatory Authority to Submit a Tick Size Pilot Plan, Securities Exchange Act Rel. No. 72460 (June 24, 2014), 79 Fed. Reg. 36840 (Jun. 30, 2014) ("Order").
Joint Industry Plan; BATS Exchange, Inc., BATS-Y Exchange, Inc., Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory Authority, Inc., NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, The Nasdaq Stock Market LLC, New York Stock Exchange LLC, NYSE MKT LLC, and NYSE Arca, Inc.; Notice of Filing of Proposed National Market System Plan to Implement a Tick Size Pilot Program on a One-Year Pilot Basis, Securities Exchange Act Rel. No. 73511 (Nov. 3, 2014), 79 Fed. Reg. 66423 (Nov. 7, 2014) ("Proposing Release"). For a summary of the proposed Plan, see SEC Requests Comment on NMS Plan to Implement Tick Size Pilot Program for Small Cap Stocks, WilmerHale Securities Alert (Dec. 15, 2014), available at https://www.wilmerhale.com/pages/publicationsandnewsdetail.aspx?NewsPubId=17179875711.
3 Joint Industry Plans; Order Approving the National Market System Plan to Implement a Tick Size Pilot Program, by BATS Exchange, Inc., BATS-Y Exchange, Inc., Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory Authority, Inc., NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, The Nasdaq Stock Market LLC, New York Stock Exchange LLC, NYSE MKT LLC, and NYSE Arca, Inc., as Modified  by the Commission, for a Two-Year Period, Securities Exchange Act Rel. No. 74892 (May 6, 2015), 80 Fed. Reg. 27514 (May 13, 2015).
4 See Plan to Implement a Tick Size Pilot Program Submitted to the Securities and Exchange Commission Pursuant to Rule 608 of Regulation NMS under the Securities Exchange Act of 1934 (as modified by the Commission), available at http://www.sec.gov/rules/sro/nms/2015/34-74892-exa.pdf.
5 Proposing Release at 36843. 
6 "Regular Trading Hours" has "the meaning provided in Rule 600(b)(64) of Regulation NMS under the Exchange Act. For purposes of the Plan, Regular Trading Hours can end earlier than 4:00pm ET in the case of an early scheduled close."
7 In the original proposal, this exception included the following venue limitation: "Where the quotation is displayed through a national securities exchange, the execution at the size of the order must occur against the displayed size on that national securities exchange. Where the quotation is displayed through the Alternative Display Facility or another facility approved by the Commission that does not provide execution functionality, the execution at the size of the order must occur against the displayed size in accordance with the rule of the Alternative Display Facility or such approved facility."
8 "Processor" is defined in the Plan as "the single plan processor responsible for the consolidation of information for an NMS stock pursuant to Rule 603(b) of Regulation NMS under the Exchange Act."
9 "SRO quotation feed" is defined in the Plan as "any market data feed disseminated by a self-regulatory organization."
10 "Market Maker" is defined in the Plan as "a dealer registered with any self-regulatory organization, in accordance with the rules thereof, as (i) a market maker or (ii) a liquidity provider with an obligation to maintain continuous, two-sided trading interest."
11 Appendix A to the Plan sets forth the data to be included in such lists.
12 The Plan defines a "brokered cross-trade" as "a trade that a broker-dealer that is a member of a Participant executes directly by matching simultaneously buy and sell orders for a Pilot Security."
13 "Retail Investor Orders" are defined in the Plan as "an agency order or a riskless principal order originating from a natural person, provided that, prior to submission, no change is made to the terms of the order with respect to price or side of market and the order does not originate from a trade algorithm or any other computerized methodology."
14 "Negotiated Trades" are defined in the Plan as "(i) a Benchmark trade, including, but not limited to, a Volume-Weighted Average Price trade or a Time-Weighted Average Price trade, provided that, if such a trade is composed of two or more component trades, each component trade complies with the quoting and trading increment requirements of the Plan, or with an exception to such requirements, or (ii) a Pilot Qualified Contingent Trade." In turn, a "Benchmark Trade" is defined as "the execution of an order at a price that was not based, directly or indirectly, on the quoted price of a Pilot Security at the time of execution and for which the material terms were not reasonably determinable at the time the commitment to execute the order was made." The Plan defines a "Pilot Qualified Contingent Trade" as "a transaction consisting of two or more component orders, executed as agent or principal, where: (1) at least one component order is in an NMS common stock; (2) all components are effected with a product or price contingency that either has been agreed to by the respective counterparties or arranged for by a broker-dealer as principal or agent; (3) the execution of one component is contingent upon the execution of all other components at or near the same time; (4) the specific relationship between the component orders (e.g., the spread between the prices of the component orders) is determined at the time the contingent order is placed; (5) the component orders bear a derivative relationship to one another, represent different classes of shares of the same issuer, or involve the securities of participants in mergers or with intentions to merge that have been announced or since cancelled; and (6) the transaction is fully hedged (without regard to any prior existing position) as a result of the other components of the contingent trade."
15 A "Trade-at Intermarket Sweep Order" is defined in the Plan as "a limit order for a Pilot Security that meets the following requirements: (1) When routed to a trading center, the limit order is identified as an Intermarket Sweep Order; and (2) Simultaneously with the routing of the limit order identified as an Intermarket Sweep Order, one or more additional limit orders, as necessary, are routed to execute against the full displayed size of any protected bid, in the case of a limit order to sell, or the full displayed size of any protected offer, in the case of a limit order to buy, for the Pilot Security with a price that is equal to the limit price of the limit order identified as an Intermarket Sweep Order. These additional routed orders also must be marked as Intermarket Sweep Orders." This usage of an ISO differs from the definition of ISO in Rule 600(b)(30) of Regulation NMS in that the ISOs, for purposes of the trade-at prohibition, need to be routed to execute against protected quotations with a price that is equal to the limit price of the order routed to a protected quotation. For purposes of the trade-through prohibition in Rule 611 of Regulation NMS, Rule 600(b)(30) provides that ISOs need to be routed to execute against those protected quotations with a price that is superior to the limit price of the order routed to a protected quotation.
16 Appendix B of the Plan sets forth in detail the data collection requirements for Participants and trading centers.
17 Appendix C of the Plan sets forth in detail the data collection requirements for Market Makers. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement

    Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of www.mondaq.com

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

    Disclaimer

    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

    Registration

    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

    Cookies

    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

    Links

    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

    Mail-A-Friend

    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

    Emails

    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .

    Security

    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at enquiries@mondaq.com.

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions