FINRA Proposes Rule to Extend the "Clearly Erroneous Transactions" Pilot Program for Exchange-Listed Securities

FINRA filed with the SEC an immediately effective rule proposal to extend a pilot program related to FINRA Rule 11892 ("Clearly Erroneous Transactions in Exchange-Listed Securities"). FINRA proposes to extend the pilot program to coincide with the pilot period for the Plan to Address Extraordinary Market Volatility, pursuant to Reg. NMS Rule 608 ("Filing and Amendment of National Market System Plans"), known as the "Limit Up-Limit Down Plan." The current pilot program under FINRA Rule 11892 provides for uniform treatment (i) of clearly erroneous execution reviews in multi-stock events involving twenty or more securities, and (ii) in the event that transactions occur which result in the issuance of an individual stock-trading pause by the primary listing market and subsequent transactions occur before the trading pause is in effect over-the-counter.

The pilot program was due to expire on April 8, 2104.

See: Text of Proposed Rule Change.