SIA Submits Comments to the CBOE on the Status of Intermarket Linkage Plan and SEC Rule 11Ac1-7

The Securities Industry Association (SIA)* provides comments to the Chicago Board Options Exchange(CBOE) on the status of intermarket linkage plan and Securities and Exchange Commission (SEC) Options Trade-Through Disclosure Rule (Rule 11Ac1-7). On September 26, 2001, the SEC again postponed the implementation date of Rule 11Ac1-7. The rule would require brokers to disclose to customers on a confirmation when a customer’s order was executed at a price inferior to a better quote on another exchange. The rules includes an exemption for brokers that route customer orders to an exchange that is part of an intermarket linkage. SIA shares concern that further delay will not only diminish competition and the opportunities for investors to obtain better prices, but will also effectively deny brokerage firms the use of the exemption.
*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.