Comment Deadline Set for SEC Proposed NMS Order Competition Rule

Comments on an SEC proposal amending Regulation NMS to prohibit restricted competition trading centers from executing segmented orders for NMS stocks internally unless the order was first subject to competition in a qualified auction are due by March 31, 2023. The Notice was published in the Federal Register.

New Rule 615 (the "Order Competition Rule") would also establish requirements for qualified auctions. The SEC said that the rule would apply to (i) "segmented" orders and (ii) "restricted competition trading centers" (see previous coverage). The SEC said that the rule is intended "to promote competition as a means to protect the interests of individual investors."