Commission Extends Initial Compliance Date of Order Execution Quality Disclosure Rule and Provides Written Guidance on Implementation of Rule
FOR IMMEDIATE RELEASE
Washington, D.C., March 13, 2001 Today, the Securities and Exchange Commission announced that it is extending the initial compliance date for the first phase-in of securities subject to Rule 11Ac1-5, the order execution quality disclosure rule, from April 2, 2001 to May 1, 2001. The subsequent phase-in dates of Rule 11Ac1-5 and the compliance date of Rule 11Ac1-6, the order routing disclosure rule, remain unchanged.
The Division of Market Regulation also has published Staff Legal Bulletin No. 12 responding to questions the staff has received from market participants on the application of Rule 11Ac1-5. The legal bulletin, in the form of a Frequently Asked Questions (FAQ) document, sets forth the views of the Division of Market Regulation. The Commission has neither approved nor disapproved its content.
In addition, the Commission has issued exemptions from the provisions of Rule 11Ac1-5 relating to manually-received orders, orders affected by crossed markets, and orders affected by trading halts. The exemptions are set forth in a letter to the Securities Industry Association.
Separately, the Commission issued a temporary exemption, until July 31, 2001, from the reporting requirement of Rule 11Ac1-5 to smaller Nasdaq market centers. To qualify, the Nasdaq market center must meet two conditions: (1) its reported trade volume in Nasdaq-listed securities for the month of January 2001 was less than 10,000 trades; and (2) it arranges, prior to May 1, 2001, to use Nasdaq's forthcoming voluntary reporting service or any other reporting service to comply with the Rule. The exemption is set forth in a letter to the Nasdaq Stock Market, Inc.
The Commission's release extending the initial compliance date of Rule 11Ac1-5, Staff Legal Bulletin No. 12, and the two exemption letters will be made available on the SEC's Internet site a: http://www.sec.gov.
For further information, contact: Susie Cho in the Division of Market Regulation at (202) 942-0748.http://www.sec.gov/news/headlines/orderexdate.htm