FINRA proposed to amend the Tick Size Pilot in order to modify the conditions to the block-size exception and the exceptions making use of Intermarket Sweep Orders ("ISOs") and Trade-at Intermarket Sweep Orders ("TAISOs") for the test group of pilot securities subject to the "Trade-at" requirement. The "Trade-at" requirement prevents price matching by a person who is not displaying orders at the price of a trading center's best "protected" bid or offer, unless an enumerated exception applies.
The proposed amendments would: (i) eliminate the condition that, to be eligible for the block-size exception, the order may not be executed on multiple trading centers; and (ii) amend the definition of "Trade-at Intermarket Sweep Order" to clarify that a trading center can simultaneously route TAISOs or ISOs to execute against the full "displayed" size of the protected quotation that has been traded.
FINRA filed the proposed amendment for immediate effectiveness and requested that the SEC waive the 30-day operative period so that the proposed rule change can become operative on October 3, 2016.
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