FINRA is proposing a rule change to FINRA Rule 6121.01 in order to clarify the operation of the Regulation NMS Plan to Address Extraordinary Volatility (the "Plan") following a trading pause or regulatory halt in a security subject to the Plan.
The proposed change addresses the brief time between the resumption of trading following a trading pause or regulatory halt and when the new price bands (that trades are permitted to take place within) are received from the securities information processor (the "Processor"). The rule change would require FINRA members to take measures to ensure the price bands are in place when trading, either by: (i) waiting for the receipt of the new price bands from the Processor, or (ii) calculating an interim upper price band and lower price band and ensuring that trades occur within those bands.
FINRA filed the proposed rule for immediate effectiveness with an operative date of August 22, 2016.
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