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New SEC Rules Seek to Modernize Infrastructure Used in Equity Market Data Collection, Distribution; Jay Clayton Quoted

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Jay Clayton
Jay Clayton Chairman SEC

The Securities and Exchange Commission (SEC) has implemented rules to update the infrastructure used to collect, consolidate and disseminate market data for national market system (NMS) stocks.

SEC said Wednesday that the newly adopted rules will upgrade and expand the content of NMS market data and create a decentralized consolidation framework that replaces exclusive securities information processors with “competing consolidators” to oversee the collection, consolidation and dissemination of market data to the public.

“Today’s rules are part of our larger initiative and ongoing efforts to modernize our equity market regulatory structure to address significant changes in our trading markets and better fit the needs of investors—both retail and institutional—and other market participants, including issuers,” said SEC Chairman Jay Clayton. “In particular, these rules are designed to increase competition and transparency, which will improve data quality and data access for all market participants.”

SEC has come up with a phased transition plan for the new rules that will kick off in 2021.