Alert June 22, 2010

National Securities Exchanges and FINRA File Rule Regarding Clearly Erroneous Trades

The SEC announced that as part of the response to the May 6, 2010 market disruption the national securities exchanges and FINRA had filed proposed rule changes designed to clarify the process for reviewing trades in exchange-traded securities to determine whether they are clearly erroneous and should be cancelled.  The rules would be implemented in a pilot program running through December 10, 2010, alongside the pilot program for stock-by-stock circuit breakers (discussed in the June 15, 2010 Alert).