Federal Register Publishes SEC Final Interpretation of "Automated Quotation" under Reg. NMS

In connection with an approval of the Investors' Exchange LLC's application to be recognized as a national securities exchange, the SEC finalized its interpretation of the definition of "automated quotation" under Regulation NMS. Specifically, the SEC finalized the interpretation of the meaning of the term "immediate," as it is used in the definition of "automated quotation" in Rule 600(b)(3) of Regulation NMS. The SEC clarified that the term does not in itself prohibit a trading center from implementing an intentional access delay that is de minimis; i.e., a delay so short that it does not impair fair and efficient access to an exchange's quotations.

The final interpretation was published in the Federal Register and became effective immediately.