Beginning today, 8/8, the trading pause pilot rule has been expanded to include all National Market System (NMS) stocks.  Currently, the rule applies only to securities included in the S&P 500 Index, the Russell 1000 Index and a selected exchange-traded products.

FINRA Rule 6121, Trading Halts Due to Extraordinary Market Volatility (aka the "trading pause pilot rule") - along with similar rules at other SROs - governs the pilot program;  on 6/23/11, the SEC approved the rule amendments which expanded the scope of the rule.  The rule mandates that the primary market for a covered security will halt or pause the trading in that security if the price of the security has declined 10% or more within a rolling 5-minute period.  Pursuant to Rule 6121, FINRA also will halt OTC trading in that stock for the duration of the pause.

New Trigger Points.  Today's expanded pilot will cover all remaining NMS stocks, but will use different trigger points for trading pauses.  As amended, the rule will require a threshold move of 30% or more to trigger a trading pause for these securities where they are priced at least $1.00, and a threshold move of 50% or more where such securities are priced less than $1.00.  This expansion of the trading pause pilot applies the trading pause protections against excessive volatility to a wider group of securities, and also permits further review and assessment of the operation of the trading pauses, including whether alternative measures are appropriate.

FINRA Staff Contact.   Direct questions to:  FINRA Operations, at (866) 776-0800; or Racquel Russell, Office of General Counsel, at (202) 728-8363.
 

For further details, go to:  [FINRA RegNote 11-37, August 2011]   Also, refer to FINRA rule change and RegNotes 10-43 and
10-30.