Regulatory Notice 16-23
SEC Approves Rule Change to Reduce the Clock Synchronization Tolerance for Computer Clocks Used To Record Events in NMS Securities and OTC Equity Securities
The Securities and Exchange Commission (SEC) approved a new clock synchronization standard of 50 milliseconds applicable to computer clocks that are used to record certain events in NMS securities or OTC equity securities. Firms have six months from the effective date, until February 20, 2017, to apply the new 50 millisecond standard to impacted system clocks that capture time in milliseconds. Firms have eighteen months from the effective date, until February 19, 2018, to apply the new standard to impacted system clocks that do not capture time in milliseconds.
The new rule text is available on FINRA’s website.
Questions regarding this Notice should be directed to: