Regulatory Notice 10-43

Amendments to FINRA Rules on Trading Pauses Due to Extraordinary Market Volatility and Clearly Erroneous Transactions in Exchange-Listed Securities
 

Effective Dates: Amendments to Rule 11892 Became Effective September 10, 2010; Amendment to Rule 6121 Became Effective September 14, 2010

Executive Summary

On September 14, 2010, FINRA’s individual stock trading-pause (also called a single-stock circuit breaker) pilot was expanded to include securities in the Russell 1000® Index as well as a pilot list of exchange traded products (ETPs).

 

On September 10, 2010, amendments to FINRA’s clearly erroneous rules that refine and clarify the process for making clearly erroneous determinations for over-the-counter (OTC) transactions in exchange-listed securities, including events involving multiple stocks, became effective on a pilot basis. Both pilots are set to end on December 10, 2010.

 

The text of the amendments can be found in the FINRA Manual at www.finra.org/finramanual.

 

Questions regarding this Notice should be directed to:

• FINRA Operations at (866) 776-0800; or
• Racquel Russell, Assistant General Counsel, Office of General Counsel, at (202) 728-8363.