NASDAQ proposed to extend its pilot program for clearly erroneous trades.
On January 24, 2012, the SEC requested comment on a proposed rule change that would extend NASDAQ's pilot program for clearly erroneous trades to July 31, 2012. The pilot program had been set to expire on January 31, 2012.
The pilot program was adopted on September 10, 2010 to address concerns that the lack of clear guidelines for dealing with clearly erroneous transactions may have added to the confusion and uncertainty faced by investors on May 6, 2010, when the prices of about 30 stocks on the S&P 500 fell by at least 10% in a five-minute period. The pilot program had originally been set to expire on December 10, 2010, but has been extended numerous times since that date.
The proposed rule change was effective on filing. However, comments on the proposed rule change may still be submitted.
For more information on the pilot program for clearly erroneous trades, see Legal Update, FINRA and National Exchanges Propose to Extend Clearly Erroneous Trade and Circuit Breaker Pilot Programs (www.practicallaw.com/0-507-1898).