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Regulation and Compliance > Federal Regulation > SEC

SEC Extends BDs' Compliance Deadline With Amended Reg NMS

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The Securities and Exchange Commission has extended the deadline for broker-dealers to comply with recently adopted amendments to Rule 606 of Regulation National Market System, or Reg NMS, which requires BDs to provide additional disclosures concerning the handling of customer orders.

Broker-dealers have told the agency they need more time beyond the May 20 deadline, so the agency has moved it to Oct. 1.

“The Commission understands that, as broker-dealers have worked to meet the May 20, 2019, compliance date set forth in the Adopting Release, some have determined that additional time is needed to complete the systems changes and implement business process changes necessary to comply with the amended rule,” the SEC said Wednesday.

On Nov. 2, 2018, the Commission adopted amendments to Rules 600, 605, and 606 of Reg NMS.

The recently adopted amendments to Rule 606(b) added a new disclosure requirement that requires a broker-dealer, upon a customer request, to provide specific disclosures related to the routing and execution of the customer’s NMS stock orders submitted on a not held basis for the prior six months, subject to two de minimis exceptions, the agency explains.

The compliance date remains May 20 for the amendments to Rule 605, which requires that public order execution reports be kept publicly available for a period of three years.


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