FINRA filed for immediate effectiveness to extend 2 pilots that were scheduled to expire this month, relating to:  (i) trading pauses;  and (ii) clearly erroneous transactions in exchange-listed securities.

    Trading Pause Pilot, Rule Filing 10-64, 12/7.   The pilot program under FINRA Rule 6121, Trading Halts Due to Extraordinary Market Volatility, was extended from 12/10/10 to 4/11/11. Nothing else is the rule was changed.  FINRA Rule 6121.01 provides that if a primary listing market has issued an individual stock trading pause under its rules, FINRA will halt trading otherwise than on an exchange in that security until trading has resumed on the primary listing market.  The pilot was developed and implemented as a market-wide initiative by FINRA and other SROs in consultation with SEC staff, and is currently applicable to the S&P 500 Index, the Russell 1000 Index and a pilot list of Exchange Traded Products.

    Clearly Erroneous Transactions Pilot, Rule Filing 10-65, 12/8.   The pilot program under FINRA Rule 11892, Clearly Erroneous Transactions in Exchange-Listed Securities. was also extended from 12/10/10 to 4/11/11.  The pilot was drafted in consultation with other SROs and SEC staff to provide for uniform treatment:  (i) of clearly erroneous execution reviews in Multi-Stock Events involving 20 or more securities;  and (ii) in the event transactions occur that result in the issuance of an individual stock trading pause by the primary listing market and subsequent transactions that occur before the trading pause is in effect for transactions otherwise than on an exchange.  FINRA also implemented additional changes to the Rule as part of the pilot that reduce the ability of FINRA to deviate from the objective standards set forth in the Rule.