National Market System Plans
The Securities and Exchange Commission (SEC) requires that each participant in an effective National Market System Plan (NMS Plan) ensure that a current and complete version of the NMS Plan is posted on a central web site. Below are links to the central web sites that provide copies of each of the three NMS Plans in which FINRA participates. In addition, each of the web sites provides any proposed amendments to these plans that are pending with the SEC.
This plan governs the process of selecting a plan processor and developing a plan for the Consolidated Audit Trail. On July 11, 2012, the Securities and Exchange Commission adopted Rule 613 under the Securities Exchange Act to require the SROs to jointly submit an NMS plan to create, implement, and maintain a consolidated order tracking system, or Consolidated Audit Trail with respect to the trading of NMS securities. To achieve the goals established by the Commission under Rule 613, the SROs submitted this NMS plan as a preliminary step to set forth how they will proceed with formulating and submitting the ultimate CAT NMS Plan, including how they will review and evaluate bids, and select the plan processor to build, operate, and maintain the Consolidated Audit Trail. This plan will automatically terminate upon the Commission’s approval of the ultimate CAT NMS Plan.
This plan governs the establishment, operation and administration of a market-wide limit up-limit down mechanism that is intended to address extraordinary market volatility in NMS stocks, as defined in Rule 600(b)(47) of Regulation NMS under the Exchange Act. The Plan sets forth market-wide limit up-limit down requirements designed to prevent trades in individual NMS Stocks from occurring outside of the specified price bands and also governs quotations in NMS stocks. These limit up-limit down requirements would be coupled with Trading Pauses, as defined in Section I(X) of the Plan, to accommodate more fundamental price moves.
The ISRA Plan governs the establishment, operation and administration of a uniform system for the selection and reservation of securities symbols (the “Symbol Reservation System”). Self-regulatory organizations (SROs) that have joined the plan utilize this system to reserve one- to five-character root symbols, utilizing a web-based tool developed and maintained by the Options Clearing Corporation, the Plan Processor.
The CTA/CQ Plans governs the collection, processing, and distribution of quotation and transaction information for exchange-listed securities (excluding those securities listd on the Nasdaq Stock Exchange). The data reflected on the consolidated tape (Networks A and B) is derived from various market centers, including securities exchanges, FINRA, electronic communications networks (ECNs), and other broker-dealers. Under the CTA/CQ Plans, all U.S. exchanges and associations that quote and trade exchange-listed securities must provide their data to a centralized securities information processor (SIP) for data consolidation and dissemination.
The OTC UTP Plan governs the collection, processing and distribution of quotation and transaction information for issues listed on the NASDAQ Stock Exchange. UTP data is derived from various market centers, including securities exchanges, FINRA, ECNs, and other broker-dealers. Under the OTC UTP Plan, all U.S. exchanges and associations that quote and trade NASDAQ-listed securities must provide their data to a centralized SIP for data consolidation and dissemination.
National Market System Plan Establishing Procedures Under Rule 605 of Regulation NMS
This plan establishes procedures under Rule 605 of Regulation NMS. Rule 605 of Regulation NMS was originally adopted in November 2000 as Rule 11Ac1-5 under the Securities Exchange of 1934. In 2005, Rule 11Ac1-5 was re-designated as Rule 605 with the adoption of Regulation NMS. Rule 605 generally requires a market center that trades NMS stocks to make available to the public monthly electronic execution reports that include uniform statistical measures of execution quality.