FINRA Proposes Wide Ticks for Little Companies

FINRA proposed FINRA Rule 6191 (Compliance with Regulation NMS Plan to Implement a Tick Size Pilot Program) to implement the quoting and trading requirements of the Regulation NMS (Regulation of the National Market System) Plan to implement a Tick Size Pilot Program. The purpose of the program is to increase tick sizes for a group of smaller companies.

FINRA specified that the proposed rule would:

• set forth the requirements necessary for FINRA and its members to meet their quoting and trading obligations, as applicable, under the Plan;

• require members to establish, maintain and enforce written policies and procedures that are designed reasonably to comply with the applicable quoting and trading requirements of the Plan; and

• provide that FINRA systems will not display quotations in violation of the Plan and the new Rule 6191.

FINRA also proposed that, if approved, the rule change become operative on October 3, 2016.