New York Stock Exchange started the fourth and last phase of its hybrid market platform today, while the SEC postponed the launch of its Regulation NMS reform to accommodate the world's largest equity market. The new NYSE hybrid market includes order auto-execution on the NYSE Direct+ platform and also allows floor specialists to interact with its electronic book.
"In Phase IV, the NYSE will introduce immediate-or-cancel and intermarket sweep orders that will not route (orders)," according to an NYSE statement circulated to brokers' compliance departments.
Simultaneously, the SEC is postponing the implementation of two major Reg NMS rules to March 5 from Feb. 5. The rules require that exchanges provide fair access to quotes and that trading centers prevent order execution at a price inferior to the best electronic quote displayed on another trading center. The SEC had previously amended the start date of a market data sharing plan among the U.S. exchanges to April 1.
The SEC was responding to the NYSE's Jan. 8 request for a delay because "implementing Regulation NMS without full participation by a major market such as the NYSE would jeopardize the smooth functioning of the U.S. equity markets," according to a statement from the agency. The rollout of stocks compliant with Reg NMS will start on July 9 and should be completed by Oct. 8.
As a result of the new Reg NMS schedule, the Chicago Board Options Exchange is pushing back the launch of the CBOE Stock Exchange to March 5 from Feb. 5.