Wednesday, December 4, 2013

Equity Trader Alert #2013 - 111
Limit Up/Limit Down Plan Update

Markets Impacted:

Contact Information:

What you need to know:

  • The Limit Up/Limit Down NMS Plan implementation schedule for Phase II(B) to include the last 15 minutes of regular trading is delayed until Monday, February 24, 2014.
  • All NMS stocks must still be rolled out by December 8, 2013 with bands in effect from 9:30 a.m., E.T., and ending at 3:45 p.m., E.T. each trading day, or earlier in the case of an early scheduled close.
  • Starting Monday, February 24, 2014, the LULD bands will begin at 9:30 a.m., E.T. and end at 4:00 p.m., E.T. each trading day. The addition of the last 15 minutes of trading will apply to all NMS Stocks.

What part of the NMS Plan is changing?

The NMS Participants have filed with the Securities and Exchange Commission (SEC) for immediate effectiveness the Limit Up/Limit Down Plan Amendment #6 to establish Phase 2 into two sub-phases. The first sub-phase (Phase II.A.), as previously planned, requires that all NMS Stocks be implemented under the Plan by December 8, 2013 and have bands in place beginning at 9:30 a.m., Eastern Time (E.T.), and ending at 3:45 p.m., E.T. each trading day, or earlier in the case of an early scheduled close.

The second sub-phase (Phase II.B.) would cause the Plan to apply to all NMS Stocks beginning at 9:30 a.m., E.T., and ending at 4:00 p.m., E.T. each trading day, or earlier in the case of an early scheduled close by Monday, February 24, 2014.

What is the purpose of the change?

The modification to the implementation schedule is in response to requests by the securities industry for additional time for systems testing by Participants and the securities industry, particularly to test with proposed Exchange rule and system modifications around the close. The Participants believe that providing additional time for the Participants and the securities industry to test the manner by which the Plan operates around the close, particularly when there is a trading pause less than five minutes before the scheduled close of trading, is necessary and appropriate in the public interest and for the protection of investors.

Will testing be available?

Yes. Testing dates and plans will be announced soon.

Where can I find additional information?

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