Trading Phase of Reg NMS Begins on March 5

Statement of SEC Division of Market Regulation Director Erik Sirri Regarding the Start of the Trading Phase of Compliance With Regulation NMS on Monday, March 5, 2007:

On Monday, March 5, 2007, exchanges and electronic communication networks (ECNs) will begin complying with the Trading Phase of Regulation NMS. The Trading Phase was designed to identify and work out any problems before full effectiveness of Regulation NMS. Beginning March 5, 2007, the exchanges and ECNs participating in the Alternative Display Facility of the NASD will implement policies and procedures reasonably designed to prevent trade-throughs of better-priced protected quotations displayed by other exchanges and ADF participants. On July 9, 2007, securities firms also will comply with the trade-through provisions of Regulation NMS for 250 pilot stocks