YOU ARE HERE: LAT HomeCollections

Markets / Your Money

SEC Pushes Back Deadline for Reporting on Nasdaq Stock Orders

April 13, 2001|From Times Staff and Wire Reports

The Securities and Exchange Commission on Thursday pushed back the deadline for the securities industry to publish reports on how Nasdaq stock orders are processed.

The delay came after a trade group said not all of its firms would be ready on time.

"It is essential that all significant market centers trading Nasdaq securities begin reporting on their order executions at the same time and the information disseminated to the public be reliable and not materially misleading," the SEC said in a news release.

The SEC rule, which seeks to provide investors with information such as where their trades are processed and how long it takes for orders to be filled, was set to take effect May 1.

Under the amended rule, Nasdaq traders have until August before they must begin gathering the data, which must be published by the end of September. For New York Stock Exchange stocks, including those traded on Nasdaq systems, traders must start collecting data in May and publish their findings by the end of June.

Securities firms needed more time to adjust for the rule because of recent changes in market structure, such as the shift to trading stocks in decimals rather than the traditional fractions. Those changes required massive adjustments to the industry's computer systems.

"Everyone shares the goal of providing to the public information about the quality of execution," Securities Industry Assn. spokesman Jim Spellman said. "The challenge here is to get it done and to get it done right. A little bit more breathing room after crossing a number of hurdles . . . everyone felt was worth doing."

Los Angeles Times Articles