FINRA Proposal to Better Align NMS Computer Clocks Published (Fed. Reg.)

FINRA proposed new Rule 4590 (and a corresponding amendment to existing Rule 7430) was published in the Federal Register.

The proposed rule is intended to reduce the synchronization tolerance for FINRA members' computer clocks that record events in National Market System ("NMS") securities. The proposal would reduce the permitted tolerance from one second to 50 milliseconds for computer clocks that record events in such securities. However, the proposal would not change the current one-second standard for non-NMS securities, nor the current one-second standard for mechanical clocks or time-stamping devices.

Comments on the FINRA proposal must be submitted by March 17, 2016.