Are any small market centers exempt from the Rule?
The Commission has exempted from the Rule certain small market centers that do not focus their business on the most actively traded securities.25 Small market centers often may be significant sources of liquidity in the securities of small and medium companies, but have fewer transactions than large market centers over which to distribute the cost of generating the monthly execution quality reports. The Commission therefore is concerned that the costs of compliance for small market centers, as well as the potential costs if small market centers cease supplying liquidity, potentially could outweigh the benefits of their monthly reports. If a small market center chooses, however, to focus a significant part of its business in very actively traded securities, it should compete on the same terms as larger market centers that trade those securities. The exemption covers any market center that reported fewer than 200 transactions per trading day on average over the preceding six month period
