Federal Register #2026-11147

SEC Notice: Amendment for Overnight Price Band Protections in Securities Trading

This notice concerns the Securities and Exchange Commission's (SEC) publication of the Twenty-Seventh Amendment to the National Market System Plan for Temporary Price Band Protections in Overnight Trading. - Government Buyer: - Securities and Exchange Commission (SEC) - Purpose and Scope: - Amendment jointly filed by multiple national securities exchanges and self-regulatory organizations - Seeks to establish temporary price band protections during overnight trading sessions (9:00 p.m. to 4:00 a.m. ET, Sunday through Thursday) - Aims to address extraordinary market volatility and reduce the risk of erroneous trades during periods of reduced liquidity - Implementation Details: - Protections will be implemented in two phases: - Phase 1: Applies standards currently used by alternative trading systems (ATSs) - Phase 2: Introduces more permanent and refined protections, including sliding price bands and recalibrated parameters - Requires trading centers to establish, maintain, and enforce written policies and procedures to prevent trades outside specified price bands - Primary Listing Exchanges and Processors will calculate and disseminate price bands; Regulatory Halts may be imposed at their discretion - Notable Requirements: - Focus on market stability and investor protection during overnight trading - No procurement of commercial products or services; this is a regulatory action - OEMs and Vendors: - No OEMs or commercial vendors are involved, as this is not a procurement opportunity

Description

This notice announces the filing of the Twenty-Seventh Amendment to the National Market System Plan by multiple national securities exchanges and self-regulatory organizations. The amendment proposes to establish temporary price band protections during overnight trading sessions to address extraordinary market volatility and reduce the risk of erroneous trades during periods of reduced liquidity. The amendment will be implemented in two phases, with the first phase applying protections based on existing standards used by alternative trading systems, and the second phase expected to introduce more permanent and refined protections. The amendment aims to enhance market stability and integrity during overnight trading hours, which are defined as 9:00 p.m. Eastern Time Sunday through 4:00 a.m. Eastern Time the next day, from Sunday through Thursday.

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