The Financial Industry Regulatory Authority is filing a proposed rule change (Proposal) with the Securities and Exchange Commission to clarify the operation of the Regulation NMS Plan to Address Extraordinary Volatility (Plan) following a “Trading Pause” or “Regulatory Halt” (as such terms are defined in the Plan) in a security subject to the Plan (Security).

The Proposal seeks to address the brief time between the resumption of trading following a Trading Pause or Regulatory Halt and when the upper and lower price range of a Security (“Price Bands”) is received from the single plan processor responsible for the consolidation of information regarding the Security (Processor) by requiring members to take measures to ensure that bands are in place (either by waiting for the receipt of the Price Bands from the Processor or calculating an interim upper price band and lower price band and ensuring that trades occur within those bands). Members may not rely on interim bands beyond the short period of time (generally up to three milliseconds) between the resumption of trading and the receipt of Price Bands by market participants.

More information about the Proposal is available here.