SEC Orders Creation of National Market System
Pairing national securities exchanges and the Financial Industry Regulatory Authority (“FINRA”), the U.S. Securities and Exchange Commission (“SEC”) has ordered both sides to create a national market system plan. To be filed with the agency, the plan would execute a pilot program to increase minimum quoting and trading increments for particular small capitalization stocks. The 12-month program will also determine if such changes could benefit investor and issuers by improving market quality. As part of the SEC’s order, the exchanges and FINRA must design the pilot’s basic terms in a way that does not unnecessarily disrupt the market, and caps. Read More.