6120. Trading Halts
(a) Authority to Initiate Halts In Trading Otherwise Than on an Exchange in NMS Stocks
FINRA, pursuant to the procedures set forth in paragraph (b):
(1) shall halt trading otherwise than on an exchange in any NMS stock, as defined in Rule 600(b)(47) of SEC Regulation NMS, whenever any market that has the authority to call a regulatory halt in the security imposes a trading halt, or suspends the listing, to:
(A) permit dissemination of material news;
(B) obtain information from the issuer relating to material news;
(C) obtain information relating to the issuer's ability to meet listing qualification requirements; or
(D) obtain any other information that is necessary to protect investors and the public interest.
(2) shall halt trading otherwise than on an exchange in any NMS stock when:
(A) extraordinary market activity in the security is occurring, such as the execution of a series of transactions for a significant dollar value at prices substantially unrelated to the current market for the security, as measured by the national best bid and offer, and
(B) FINRA determines that such extraordinary market activity is likely to have a material effect on the market for the security; and
(C)(i) FINRA determines that such extraordinary market activity is caused by the misuse or malfunction of an electronic quotation, communication, reporting, or execution system operated by, or linked to, FINRA; or
(ii) After consultation with a national securities exchange trading the security, FINRA determines that such extraordinary market activity is caused by the misuse or malfunction of an electronic quotation, communication, reporting, or execution system operated by, or linked to, such other national securities exchange.
(3) shall close the Alternative Display Facility (ADF) or any Trade Reporting Facility (TRF) to quotation and/or trade reporting activity, as applicable, whenever the ADF or such TRF is unable to transmit real-time trade reporting information to the applicable Securities Information Processor. If the ADF or any TRF closes trading pursuant to this subparagraph (3), members would not be prohibited from trading through other markets for which trading is not halted.
Members shall promptly notify FINRA whenever they have knowledge of any matter related to an NMS stock or the issuer thereof that has not been adequately disclosed to the public or where they have knowledge of a regulatory problem relating to such security.
(b) Commencement and Termination of a Trading Halt
(1) In the event FINRA determines that a basis exists under this Rule 6120 to initiate a trading halt or close the ADF or any TRF, the commencement of the trading halt or closure will be effective simultaneously with appropriate notice.
(2) Trading shall resume upon appropriate notice that a trading halt or closure is no longer in effect.
|Amended by SR-FINRA-2008-021 eff. Dec. 15, 2008.
Amended by SR-NASD-2006-104 eff. March 5, 2007.
Amended by SR-NASD-2006-087 eff. Aug. 1, 2006.
Adopted by SR-NASD-2005-087 eff. Aug. 1, 2006.
Selected Notice: 08-57.