“Implementation of Reg NMS is a complex, multi-step process involving not just securities firms, but also many other market participants such as exchanges, vendors, and other entities,” said Marc Lackritz, president of the Securities Industry Association (SIA). “Today’s decision underscores the need for a deliberate, coordinated approach to this task and provides a new timetable during which we will continue to work with regulators and other market participants. We must ensure a smooth and effective implementation so neither the markets nor their customers experience unnecessary disruption. We support the SEC’s efforts to establish an appropriate, effective timetable for implementing the remaining components of this new regulation.”
The new time line requires SROs to publish on their websites by October 16, 2006 their final technical specifications for their systems regarding compliance with the new order protection rule. By February 5, 2007 these systems must be operational. May 21, 2007 is the start of full industry compliance with the order protection and access rules for a pilot group of NMS stocks. Full industry compliance with these two rules for all remaining NMS stocks takes place from July 9, 2007 until October 8, 2007, which is considered the "Completion Date.” In addition, one component of the new market data rules - the revised revenue allocation formula – has a new implementation date of April 1, 2007. These new phase-in dates are in line with what SIA member firms requested in a letter to the SEC staff on March 24, 2006. More details on the new dates can be found in the SEC release: http://www.sec.gov/rules/final/2006/34-53829.pdf .
