Notice2026-01013
Order Granting Temporary Exemptive Relief, Pursuant to Section 36(a)(1) of the Securities Exchange Act of 1934 From Compliance With Rule 600(b)(69)(ii) of Regulation NMS
Primary source
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Published
January 21, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 13 (Wednesday, January 21, 2026)</title>
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[Federal Register Volume 91, Number 13 (Wednesday, January 21, 2026)]
[Notices]
[Pages 2577-2578]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01013]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104612]
Order Granting Temporary Exemptive Relief, Pursuant to Section
36(a)(1) of the Securities Exchange Act of 1934 From Compliance With
Rule 600(b)(69)(ii) of Regulation NMS
January 15, 2026.
I. Introduction
On September 18, 2024, the Securities and Exchange Commission
(``SEC'' or ``Commission'') adopted Regulation NMS: Minimum Pricing
Increments, Access Fees and Transparency of Better Priced Orders,\1\
which among other things, accelerated the implementation of the odd-lot
information definition in Rule 600(b)(69) of Regulation NMS \2\ and
added information about the best odd-lot order to the definition of
odd-lot information.\3\ The Commission adopted a compliance date for
implementing odd-lot information as the first business day of May
2026.\4\
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\1\ Securities Exchange Act Release No. 101070 (Sept. 18, 2024),
89 FR 81620 (Oct. 8, 2024) (``Adopting Release'').
\2\ 17 CFR 242.600(b)(69).
\3\ 17 CFR 242.600(b)(69)(iii).
\4\ See Adopting Release, supra note 1, at 81679-81681.
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By letter dated July 9, 2025, the Operating Committees of the
Consolidated Quotation Plan (``CQ Plan''), Consolidated Tape
Association Plan (``CTA Plan''), and the Joint Self-Regulatory
Organization Plan Governing the Collection, Consolidation and
Dissemination of Quotation and Transaction Information for Nasdaq-
Listed Securities Traded on Exchanges on an Unlisted Trading Privileges
Basis (``UTP Plan'') (collectively, the ``Plans'') \5\ requested that
the Commission provide temporary exemptive relief for two years from
the requirement to disseminate certain odd-lot information as defined
in Rule 600(b)(69)(ii) of Regulation NMS.\6\ As discussed below, the
Commission is providing temporary exemptive relief to
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the Plans' participants \7\ from compliance with Rule 600(b)(69)(ii) of
Regulation NMS \8\ until the first business day of May 2028.
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\5\ The Plans are effective national market system plans that
govern the collection, consolidation, processing and dissemination
of quotation and transaction information for NMS stocks by the
exclusive SIPs. The Securities Industry Automation Corporation
(``SIAC'' an affiliate of the New York Stock Exchange LLC
(``NYSE'')) is the exclusive SIP for the CTA and CQ Plans, and the
Nasdaq Stock Market LLC (``Nasdaq'') is the exclusive SIP for the
UTP Plan.
\6\ See letter from James P. Dombach, Davis Wright Tremaine,
Counsel to the Operating Committees of the Plans, dated July 9, 2025
(``Request Letter'') available at <a href="https://www.sec.gov/files/rules/exorders/2026/34-104612-incoming-letter-james-p-dombach-davis-wright-tremaine.pdf">https://www.sec.gov/files/rules/exorders/2026/34-104612-incoming-letter-james-p-dombach-davis-wright-tremaine.pdf</a>.
\7\ The participants are: 24X National Exchange LLC; Cboe BYX
Exchange, Inc.; Cboe BZX Exchange, Inc.; Cboe EDGA Exchange, Inc.;
Cboe EDGX Exchange, Inc.; Cboe Exchange, Inc.; Financial Industry
Regulatory Authority, Inc.; Investors Exchange LLC; Long-Term Stock
Exchange, Inc.; MEMX LLC; MIAX PEARL, LLC; Nasdaq; Nasdaq BX, Inc.;
Nasdaq ISE, LLC; Nasdaq PHLX LLC; NYSE; NYSE American LLC; NYSE Arca
Inc.; NYSE Texas, Inc.; and NYSE National Inc. (``Participants'').
\8\ 17 CFR 242.600(b)(69)(ii).
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II. Discussion and Temporary Exemptive Relief
Section 36(a)(1) of the Securities Exchange Act of 1934 (``Exchange
Act'') authorizes the Commission, by rule, regulation, or order, to
exempt, conditionally or unconditionally, any person, security, or
transaction, or any class or classes of persons, securities, or
transactions, from any provisions of the Exchange Act, or any rule or
regulation thereunder, to the extent that such exemption is necessary
or appropriate in the public interest, and is consistent with the
protection of investors.\9\
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\9\ 15 U.S.C. 78mm(a)(1).
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In the Adopting Release, the Commission adopted amendments to Rules
600(b)(69) \10\ and 603(b)(3) \11\ of Regulation NMS. Rule 600(b)(69)
of Regulation NMS defines odd-lot information.\12\ Rule 600(b)(69)(ii)
includes ``odd-lots at a price greater than or equal to the national
best bid and less than or equal to the national best offer, aggregated
at each price level at each national securities exchange and national
securities association.'' \13\ Rule 600(b)(69)(iii) includes the
highest priced odd-lot order to buy that is priced higher than the
national best bid, and the lowest priced odd-lot order to sell that is
priced lower than the national best offer (i.e., the ``BOLO'').\14\
Rule 603(b)(3) of Regulation NMS, among other things, requires the
national securities exchanges and national securities associations to
make available to the exclusive SIPs all data necessary to generate
odd-lot information, and require the exclusive SIPs to collect,
consolidate and disseminate odd-lot information.\15\
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\10\ 17 CFR 242.600(b)(69).
\11\ 17 CFR 242.603(b)(3).
\12\ 17 CFR 242.600(b)(69). Rule 600(b)(69)(i) requires odd-lot
transaction data to be provided as part of odd-lot information. The
exclusive SIPs already collect, consolidate and disseminate odd-lot
transaction information. See Securities Exchange Act Release Nos.
70793 (Oct. 31, 2013), 78 FR 66788 (Nov. 6, 2013) (order approving
Amendment No. 30 to the UTP Plan to require odd-lot transactions to
be reported to consolidated tape); 70794 (Oct. 31, 2013), 78 FR
66789 (Nov. 6, 2013) (order approving Eighteenth Substantive
Amendment to the Second Restatement of the CTA Plan to require odd-
lot transactions to be reported to consolidated tape).
\13\ 17 CFR 242.600(b)(69)(ii).
\14\ 17 CFR 242.600(b)(69)(iii).
\15\ 17 CFR 242.603(b)(3).
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The Request Letter states that the exclusive SIPs will begin
disseminating the BOLO in May 2026 but Participants seek to defer
implementation of the odd-lot information as defined in Rule
600(b)(69)(ii) for two-years until May 2028. The Request Letter states
that the Advisory Committee of the Plans \16\ has indicated support for
the exemption request.\17\ In addition, a securities industry trade
group submitted a letter that stated that it supports the exemptive
request.\18\
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\16\ The Advisory Committee to the Plans consist of
representatives from a broker-dealer with substantial retail
investor customer base, a broker-dealer with substantial
institutional investor customer base, an alternative trading system,
a data vendor, an investor, and members selected by each
Participant. See e.g., CTA Plan section III.(e) and UTP Plan section
IV.E. See also CTA Plan Advisory Committee available at <a href="https://www.ctaplan.com/advisory-committee">https://www.ctaplan.com/advisory-committee</a> and UTP Plan Advisory Committee
available at <a href="https://www.utpplan.com/DOC/UTP_ADVISORY_COMMITTEE_2025-09.pdf">https://www.utpplan.com/DOC/UTP_ADVISORY_COMMITTEE_2025-09.pdf</a> (last accessed Dec. 22, 2025).
\17\ See Request Letter.
\18\ See letter from Howard Meyerson, Managing Director,
Financial Information Forum, dated Sept. 24, 2025 available at
<a href="https://www.sec.gov/files/rules/exorders/2026/34-104612-comment-letter-howard-meyerson.pdf">https://www.sec.gov/files/rules/exorders/2026/34-104612-comment-letter-howard-meyerson.pdf</a>.
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The Request Letter states that the exclusive SIPs are facing ``an
unprecedented number of concurrent obligations and enhancements.'' \19\
Specifically, the Request Letter states that the exclusive SIPs
implemented the round lot definition in November 2025, are
incorporating fractional share trading data in February 2026,
formulating plans to implement extended hours, need to accommodate the
transition to amendments to minimum pricing increments \20\ and are
working to expand systems for increased message traffic, and upgrade
equipment.\21\ Further, the Request Letter states that the requirement
to disseminate ``depth-of-book odd-lot quotations'' as defined under
Rule 600(b)(69)(ii) would ``add considerable complexity to the
operation of the [exclusive] SIPs,'' and create significant new
operational challenges for the exclusive SIPs related to data
aggregation complexity, latency and bandwidth, and the implementation
timeline needed develop, test, and implement such changes.\22\ The
Request Letter states that deferring the dissemination of the odd-lot
information required under Rule 600(b)(69)(ii) for two years would
allow the exclusive SIPs to prioritize the requirements related to
disseminating such odd-lot information and other competing initiatives,
while ensuring that each project ``can be implemented in a safe and
effective manner.'' \23\
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\19\ See Request Letter.
\20\ See Securities Exchange Act Release No. 104172 (Oct. 31,
2025), 90 FR 51418 (Nov. 17, 2025) (Order granting temporary
exemptive relief until the first business day of Nov. 2026 to
implement amendments to Rule 612).
\21\ See Request Letter.
\22\ Id.
\23\ Id.
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In light of the information provided in the Request Letter, the
Commission is using its authority under section 36(a)(1) of the
Exchange Act to provide temporary exemptive relief to the Participants
from the requirement to implement the odd-lot information required in
Rule 600(b)(69)(ii) of Regulation NMS until the first business day of
May 2028. The temporary exemptive relief is designed to help facilitate
the systems and operational development necessary to implement the
dissemination of this odd-lot information. The exemptive relief is
necessary and appropriate in the public interest, and consistent with
the protection of investors under section 36(a)(1) of the Exchange Act
to provide temporary exemptive relief from compliance with the odd-lot
information definition in Rule 600(b)(69)(ii) of Regulation NMS until
the first business day of May 2028 so that the Participants have time
to develop the systems changes necessary to make available all data
necessary for the generation of such odd-lot information and for the
Participants to disseminate such odd-lot information through the
exclusive SIPs in an orderly manner.
III. Conclusion
Accordingly, it is hereby ordered, pursuant to section 36(a)(1) of
the Exchange Act,\24\ that the Commission grants exemptive relief as
set forth in this order, from compliance with Rule 600(b)(69)(ii) of
Regulation NMS until the first business day of May 2028.
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\24\ 15 U.S.C. 78mm(a)(1).
By the Commission.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-01013 Filed 1-20-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on January 21, 2026.
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