FINRA Rule 6272 Amendment: Odd-Lot Quotation Reporting Requirements for the Alternative Display Facility
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FINRA is amending Rule 6272 (Character of Quotations) to require Alternative Display Facility (ADF) Market Participants to report odd-lot quotation data to FINRA, aligning with new SEC Regulation NMS requirements effective May 1, 2026. Specifically, FINRA must now collect and forward to the exclusive Securities Information Processors (SIPs) the Best Odd-Lot Offer (BOLO) — the highest-priced odd-lot buy order above the national best bid and the lowest-priced odd-lot sell order below the national best offer — as well as top-of-book (TOB) odd-lot quotation data. The amendment adds new paragraph (e) to Rule 6272, requiring ADF Market Participants to submit their best-priced odd-lot orders (quantities below one round lot) that are priced at or better than the national best bid/offer. The operative date is April 27, 2026, aligned with the industry-wide SIP implementation date. The rule was filed as a non-controversial change and became immediately effective upon SEC receipt on March 27, 2026. As of early 2026, there are no active quoting ADF Market Participants, meaning this amendment has no immediate economic impact. However, it future-proofs FINRA's rulebook for any new ADF participants and ensures compliance with the 2024 NMS Amendments (SEC Release No. 101070). FINRA also notes it will separately evaluate whether further rule changes are needed when depth-of-book (DOB) odd-lot requirements under Rule 600(b)(69)(ii) take effect on May 2, 2028.
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Key Changes
- New paragraph (e) added to FINRA Rule 6272 requiring ADF Market Participants to report best-priced odd-lot orders (below one round lot) at or better than the national best bid/offer
- ADF Market Participants must provide both BOLO data (best odd-lot outside NBBO) and TOB odd-lot quotation data (best odd-lot at or within NBBO) to FINRA for SIP dissemination
- Operative date set to April 27, 2026, aligned with industry-wide SIP implementation; mandatory compliance deadline of May 1, 2026 per SEC Rule 600(b)(69)(iii)
+ 3 more changes with Pro
Obligations
What this law requires
ADF Market Participants must submit their highest priced odd-lot buy order priced at or higher than the national best bid to FINRA
ADF Market Participants must submit their lowest priced odd-lot sell order priced at or lower than the national best offer to FINRA
ADF Market Participants must limit odd-lot order submissions to amounts less than one normal unit of trading (round lot)
FINRA must collect odd-lot quotation data from ADF Market Participants and forward it to the exclusive Securities Information Processors (SIPs)
FINRA must provide data to exclusive SIPs necessary to generate Best Odd-Lot Offer (BOLO) information as required by SEC Regulation NMS Rule 600(b)(69)(iii)