Securities Lawyer's Deskbook                          published by The University of Cincinnati College of Law

Rule 601 -- Dissemination of Transaction Reports and Last Sale Data with Respect to Transactions in NMS Stocks

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1. Filing and effectiveness of transaction reporting plans.
   
   
1. Every national securities exchange shall file a transaction reporting plan regarding transactions in listed equity and Nasdaq securities executed through its facilities, and every national securities association shall file a transaction reporting plan regarding transactions in listed equity and Nasdaq securities executed by its members otherwise than on a national securities exchange.
   
   
2. Any transaction reporting plan, or any amendment thereto, filed pursuant to this section shall be filed with the Commission, and considered for approval, in accordance with the procedures set forth in Rule 242.608(a) and (b). Any such plan, or amendment thereto, shall specify, at a minimum:
   
   
   1. The listed equity and Nasdaq securities or classes of such securities for which transaction reports shall be required by the plan;
      
      
   2. Reporting requirements with respect to transactions in listed equity securities and Nasdaq securities, for any broker or dealer subject to the plan;
      
      
   3. The manner of collecting, processing, sequencing, making available and disseminating transaction reports and last sale data reported pursuant to such plan;
      
      
   4. The manner in which such transaction reports reported pursuant to such plan are to be consolidated with transaction reports from national securities exchanges and national securities associations reported pursuant to any other effective transaction reporting plan;
      
      
   5. The applicable standards and methods which will be utilized to ensure promptness of reporting, and accuracy and completeness of transaction reports;
      
      
   6. Any rules or procedures which may be adopted to ensure that transaction reports or last sale data will not be disseminated in a fraudulent or manipulative manner;
      
      
   7. Specific terms of access to transaction reports made available or disseminated pursuant to the plan; and
      
      
   8. That transaction reports or last sale data made available to any vendor for display on an interrogation device identify the marketplace where each transaction was executed.
      
      
3. No transaction reporting plan filed pursuant to this section, or any amendment to an effective transaction reporting plan, shall become effective unless approved by the Commission or otherwise permitted in accordance with the procedures set forth in Rule 242.608.
   
   
2. Prohibitions and reporting requirements.
   
   
   1. No broker or dealer may execute any transaction in, or induce or attempt to induce the purchase or sale of, any NMS stock:
      
      
      1. On or through the facilities of a national securities exchange unless there is an effective transaction reporting plan with respect to transactions in such security executed on or through such exchange facilities; or
         
         
      2. Otherwise than on a national securities exchange unless there is an effective transaction reporting plan with respect to transactions in such security executed otherwise than on a national securities exchange by such broker or dealer.
         
         
   2. Every broker or dealer who is a member of a national securities exchange or national securities association shall promptly transmit to the exchange or association of which it is a member all information required by any effective transaction reporting plan filed by such exchange or association (either individually or jointly with other exchanges and/or associations).
      
      
3. Retransmission of transaction reports or last sale data. Notwithstanding any provision of any effective transaction reporting plan, no national securities exchange or national securities association may, either individually or jointly, by rule, stated policy or practice, transaction reporting plan or otherwise, prohibit, condition or otherwise limit, directly or indirectly, the ability of any vendor to retransmit, for display in moving tickers, transaction reports or last sale data made available pursuant to any effective transaction reporting plan; provided, however, that a national securities exchange or national securities association may, by means of an effective transaction reporting plan, condition such retransmission upon appropriate undertakings to ensure that any charges for the distribution of transaction reports or last sale data in moving tickers permitted by paragraph (d) of this section are collected.
   
   
4. Charges. Nothing in this section shall preclude any national securities exchange or national securities association, separately or jointly, pursuant to the terms of an effective transaction reporting plan, from imposing reasonable, uniform charges (irrespective of geographic location) for distribution of transaction reports or last sale data.
   
   
5. Appeals. The Commission may, in its discretion, entertain appeals in connection with the implementation or operation of any effective transaction reporting plan in accordance with the provisions of Rule 242.608(d).
   
   
6. Exemptions. The Commission may exempt from the provisions of this section, either unconditionally or on specified terms and conditions, any national securities exchange, national securities association, broker, dealer, or specified security if the Commission determines that such exemption is consistent with the public interest, the protection of investors and the removal of impediments to, and perfection of the mechanisms of, a national market system.
   
   

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