FINRA Proposes Rule Extending the Market-Wide Circuit Breakers in NMS Stocks Pilot Program
On April 5, the Financial Industry Regulatory Authority filed with the Securities and Exchange Commission a proposed rule change to extend the pilot program related to FINRA Rule 6121.02 (Market-wide Circuit Breakers in NMS Stocks), which provides a methodology for determining when to halt trading in all national market system stocks due to extraordinary market volatility, i.e., market-wide circuit breakers. The original term of the pilot program was intended to coincide with the pilot period for the Plan to Address Extraordinary Market Volatility Pursuant to Rule 608 of Regulation NMS (Limit Up-Limit Down Plan). The rule change is intended to (1) untie the pilot program’s effectiveness from that of the Limit Up-Limit Down Plan, and (2) extend its effectiveness to the close of business on October 18. The rule change was effective upon filing.
FINRA intends to file a separate proposed rule change with the SEC to adopt the rule on a permanent basis.
The text of the rule change is available here.