NYSE: Still Not Complying With Reg NMS?

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The New York Stock Exchange is still not in compliance with government regulations meant secure the best price available for stock traders, a source familiar with the SEC’s regulatory work says. The National Market System regulation—known as “Reg NMS” to regulators and securities industry insiders—requires stock exchanges to provide smaller traders and individuals with access to the same price quotes offered to institutional traders, and to execute trades at the exchange where the best price is available. Compliance requires a heavy reliance on electronic trading.
Shortly after the stock markets plunged in late February, the NYSE requested a second extension of its NMS compliance deadline from the SEC. In January the deadline had been pushed back from February to March. The NYSE gave scant explanation for its failure to meet the March deadline, and the SEC denied the request for the extension.
The NYSE still is not meeting the Reg NMS requirements, the source says. Neither the NYSE nor the SEC could be reached for comment. Our source says the next step may be an SEC investigation or enforcement action against the NYSE.

Earlier:
REG NMS: Time Is A Luxury The NYSE Does Not Have [DealBreaker]

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