FINRA Proposes Rule Regarding New Entrant to Alternative Display Facility

FINRA has filed with the SEC a proposed rule to add a new entrant to the Alternative Display Facility ("ADF"). ADF is a quotation collection and trade reporting facility that provides ADF Market Participants with the ability to post quotations, display orders and report transactions in national market system ("NMS") stocks for submissions to the Securities Information Processor for consolidation and dissemination to vendors and other market participants. Additionally, the ADF delivers real-time data to FINRA for regulatory purposes, including enforcement requirements from the SEC. According to FINRA, the new ADF entrant, LavaFlow ("FLOW"), has prepared policies and procedures that are designed to ensure that level access to its quotations is substantially equivalent to the level of access to quotations displayed by SRO trading facilities.

See: Text of Proposed Rule Change; FINRA Press Release.