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6121. Trading Halts Due to Extraordinary Market Volatility

Past version: effective from Oct 24 2016 - Nov 19 2017.
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Pursuant to the procedures set forth in Rule 6120(b), FINRA shall halt all trading otherwise than on an exchange in any NMS stock, as defined in Rule 600(b)(47) of SEC Regulation NMS, if other major securities markets initiate market-wide trading halts in response to their rules or extraordinary market conditions or if otherwise directed by the Securities and Exchange Commission. Members must halt quoting and trading otherwise than on an exchange in any NMS stock as of the time the market-wide trading halt is publicly disseminated.

• • • Supplementary Material: --------------

.01 Resumption of Trading in Securities Subject to the Regulation NMS Plan to Address Extraordinary Market Volatility

(a) The Regulation NMS Plan to Address Extraordinary Market Volatility (Plan) sets forth the circumstances under which the Primary Listing Exchange shall declare a Trading Pause for an NMS Stock. The Plan expressly provides that no trades in an NMS Stock shall occur during a Trading Pause. The Plan also sets forth the circumstances under which trading in an NMS Stock can resume after a Trading Pause. A member may resume trading otherwise than on an exchange following a Trading Pause or Regulatory Halt in an NMS Stock that is subject to the Plan if trading has commenced on the Primary Listing Exchange (or other national securities exchange pursuant to paragraph (b) below) and either:
(1) the member has received the Price Bands from the Processor; or
(2) if immediately following a Trading Pause or Regulatory Halt the member has not yet received the Price Bands from the Processor, the member has calculated an upper price band and lower price band consistent with the methodology provided for in Section V of the Plan and ensures that any transactions prior to the receipt of the Price Bands from the Processor are within the ranges provided for pursuant to the Plan, consistent with Section VI(A)(1) of the Plan.
(b) Where a Primary Listing Exchange does not reopen for trading at the end of a ten-minute Trading Pause and has issued notice that it cannot resume trading for a reason other than a significant imbalance, a member may resume trading otherwise than on an exchange in such NMS Stock if trading has commenced on at least one other national securities exchange.
(c) For purposes of this Supplementary Material .01, the following terms shall have the meanings as set forth in the Regulation NMS Plan to Address Extraordinary Market Volatility: "NMS Stock," "Price Bands," "Primary Listing Exchange," "Processor," "Regulatory Halt" and "Trading Pause."
(d) The provisions of this Supplementary Material .01 shall be in effect during a pilot period to coincide with the pilot period for the Plan (including any extensions to the pilot period for the Plan).

.02 Market-wide Circuit Breakers in NMS Stocks

(a) In the event of a Level 1, Level 2 or Level 3 Market Decline, as determined by a primary listing market and publicly disseminated, FINRA shall halt trading otherwise than on an exchange in all NMS stocks and shall not permit the resumption of trading for the time periods specified by the primary listing market, except as otherwise provided below.
(b) For purposes of this Rule, a Market Decline means a decline in the value of the S&P 500® Index between 9:30 a.m. and 4:00 p.m. on a trading day as compared to the closing value of the S&P 500® Index for the immediately preceding trading day.
(c) (1) If trading is halted in all NMS stocks for a Level 1 or a Level 2 Market Decline, FINRA will halt trading otherwise than on an exchange in all NMS stocks until trading has resumed on the primary listing market. If, however, the primary listing market does not reopen a security within 15 minutes following the end of the 15-minute halt period, FINRA may permit the resumption of trading otherwise than on an exchange in that security if trading in the security has commenced on at least one other national securities exchange.
(2) If a Level 3 Market Decline occurs at any time during the trading day, FINRA shall halt trading otherwise than on an exchange in all NMS stocks until the primary listing market opens the next trading day.
(d) The provisions of Supplementary Material .02 of this Rule shall be in effect during a pilot period to coincide with the pilot period for the Regulation NMS Plan to Address Extraordinary Market Volatility unless the pilot is either extended or approved permanently.
Amended by SR-FINRA-2016-028 and SR-FINRA-2016-034 eff. Oct. 24, 2016.
Amended by SR-FINRA-2013-016 eff. April 8, 2013.
Amended by SR-FINRA-2011-054 and SR-FINRA-2013-011 eff. April 8, 2013.
Amended by SR-FINRA-2013-010 eff. Feb. 1, 2013.
Amended by SR-FINRA-2012-037 eff. July 23, 2012.
Amended by SR-FINRA-2012-006 eff. Jan. 24, 2012.
Amended by SR-FINRA-2011-068 eff. Nov. 21, 2011.
Amended by SR-FINRA-2011-023 eff. Aug. 8, 2011.
Amended by SR-FINRA-2011-038 eff. Aug. 5, 2011.
Amended by SR-FINRA-2011-015 eff. Mar. 30, 2011.
Amended by SR-FINRA-2010-064 eff. Dec. 7, 2010.
Amended by SR-FINRA-2010-033 eff. Sept. 14, 2010.
Amended by SR-FINRA-2010-025 eff. June 10, 2010.
Adopted by SR-FINRA-2008-048 eff. Oct. 7, 2008.

Selected Notices: 10-30, 10-43, 13-12, 16-26.

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