FINRA Proposes Quick Resumption to Trading following Market-Wide Circuit Breaker

FINRA proposed a quick resumption of trading in all National Market System ("NMS") stocks in the event of a Level 3 market-wide circuit breaker ("MWCB") halt.

The FINRA proposal would amend FINRA Rule 6121.02 ("Market-wide Circuit Breakers in NMS Stocks") so that a Level 3 MWCB halt would conclude at the end of a trading day on the day of its occurrence, and then the next day, over-the-counter trading in all NMS stocks would be able to resume as normal. FINRA recommended that broker-dealers establish sufficient policies and procedures to address the resumption of over-the-counter trading.

FINRA filed the proposed rule change for immediate effectiveness, and requested that the SEC waive the requirement that a rule change must become operative 30 days after filing.