Expansion of FINRA Trading Pause Rule

FINRA RN 11-37

August 5, 2011

FINRA published a regulatory notice to inform firms of the recently-approved expansion of its trading pause pilot rule to include all NMS stocks.The rule previously covered only stocks in the S&P 500, Russell 1000 and certain exchange-traded products.The rule generally provides that a primary market will halt or pause trading in a security when its price declines 10% or more in a rolling five-minute period.

Cross References

FINRA Rule 6121

SEC Release No. 34-64735 (approval of rule change)

FINRA RN 10-30 and RN 10-43 (re. trading pause pilot)

Lofchie’s Guide to Broker-Dealer Regulation, Trading Chapter Section VII