Overview

The Securities and Exchange Commission ("Commission') is proposing new rules and amendments to existing rules concerning unlisted trading privileges ("UTP') in listed initial public offerings ("IPOs'). The proposed rules would reduce the period that exchanges have to wait before extending UTP to any listed IPO security, from the third trading day, to the first trade reported by the listing exchange to the Consolidated Tape. The proposed rules also would require exchanges to have rules and oversight mechanisms in place to ensure fair and orderly markets and the protection of investors with respect to UTP in the securities.