Trading Pause Pilot Rule Expanded to all NMS Stocks


Effective August 8, the trading pause pilot rule—which was applicable only to securities included in the S&P 500 Index, the Russell 1000 Index and a list of selected exchange-traded products—was expanded to include all National Market System (NMS) stocks. The expanded trading pause pilot rule requires a threshold move of 30% (or more) to trigger a trading pause for NMS securities where they are priced at $1.00 or more, and a threshold move of 50% (or more) where such securities are priced less than $1.00. According to the Financial Industry Regulatory Authority, Inc., the expansion of the trading pause pilot rule applies the trading pause protections against excessive volatility to a wider group of securities, and permits further review and assessment of the operation of trading pauses, including whether alternative measures are appropriate.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Katten Muchin Rosenman LLP | Attorney Advertising

Written by:


Katten Muchin Rosenman LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.