Federal Register #SR-NYSEARCA-2026-60

SEC Notice of Proposed Rule Change to NYSE Arca Rule 7.35-E for Early Trading of ETP IPO Securities

This notice from the Securities and Exchange Commission (SEC) addresses a proposed rule change by NYSE Arca, Inc. regarding the trading of exchange-traded products (ETPs) during their initial public offering (IPO): - The proposal seeks to amend NYSE Arca Rule 7.35-E - Would allow eligible ETP IPO securities to begin trading in the Early Trading Session at 4:00 a.m. Eastern Time - Provides an alternative to the standard IPO auction, which begins at 9:30 a.m. Eastern Time - The change is intended to give issuers greater flexibility and earlier access to market liquidity for new ETPs - The rule change would align NYSE Arca's procedures with those of other exchanges, specifically: - Cboe BZX Exchange, Inc. - Nasdaq Stock Market LLC - No procurement of products or services is involved; this is a regulatory update affecting trading procedures - No part numbers, quantities, or unique procurement requirements are referenced

Description

The Securities and Exchange Commission has filed a proposed rule change to amend Rule 7.35-E of NYSE Arca, Inc. The amendment introduces an option for an exchange-traded product (ETP) eligible to participate in an initial public offering (IPO) auction to elect to commence trading in the NYSE Arca Early Trading Session starting at 4:00 a.m. ET, as an alternative to the IPO auction at 9:30 a.m. ET. This change aims to provide earlier trading opportunities for new issue ETPs, aligning NYSE Arca's functionality with other exchanges like Cboe BZX and Nasdaq. The proposal is intended to enhance market liquidity and provide issuers with flexibility in trading commencement.

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