SEC Adopts Rules to Modernize Infrastructure for NMS Market Data

On December 9, the Securities and Exchange Commission adopted final rules that aim to modernize the infrastructure related to the collection, consolidation, and dissemination of market data for exchange-listed national market system stocks (referred to “NMS market data”). These final rules update and expand the content of NMS market data (for example, by adding new data fields and defining existing fields with more granularity) and revise the method by which NMS market data are consolidated and disseminated to make the process more competitive and decentralized. The final rules represent a significant step forward in updating the NMS market data system to keep up with modern market developments, as the rules governing the content of, and the process for sending out, NMS market data has not been materially updated since its implementation in the late 1970s.

The SEC press release, including a link to the final rule text, is available here.

SEC Announces Stand-Alone Office Focused on Innovation and Financial Technology

On December 3, the Securities and Exchange Commission announced that its Strategic Hub for Innovation and Financial Technology (FinHub), will migrate from its current position within the Division of Corporate Finance and be designated as a stand-alone office. FinHub will continue to be led by Valerie A. Szczepanik, who will become its first director and will report directly to the SEC Chairman. FinHub leads the SEC’s work in encouraging responsible innovation in the financial sector, including through the use of new technologies and business models. FinHub engages directly with market participants to further these efforts.

The SEC press release is available here.