Rules Relating to Clearly Erroneous Executions

SIFMA provides comments to the Securities and Exchange Commission (SEC) on proposed amendments to rules relating to clearly erroneous executions, File Numbers SR-BATS-2010-016, SR-BX-2010-040, SR-CBOE-2010-056, SR-CHX-2010-13, SR-EDGA-2010-03, SR-EDGX-2010-03, SR-FINRA-2010-032, SR-ISE-2010-62, SR-NASDAQ-2010-076, SR-NSX-2010-07, SR-NYSE-2010-47, SR-NYSEAmex-2010-60, SR-NYSEArca-2010-58. SIFMA argues that the proposals should be considered in conjunction with a review of (1) the new single stock circuit breakers; (2) possible alternatives to SSCB’s; and (3) any other market structure rulemaking proposal. SIFMA proposes to replace the price-based schedule of parameters at 10%, 5%, and 3% from the SSCB trigger price, with a parameter such as the greater of 2% or $.05 from the SSCB trigger price. SIFMA also proposes that under unusual circumstances, the SROs should have flexibility to break trades even, if necessary, after the existing deadline set for breaking erroneous trades. SIFMA also argued that FINRA should have the flexibility to handle egregious circumstances in the OTC market.