Federal Register #SR-NYSEARCA-2026-66

SEC Notice of Proposed Rule Change by NYSE Arca, Inc. to Amend Rule 7.31-E, Orders and Modifiers

This notice from the Securities and Exchange Commission (SEC) details a proposed rule change by NYSE Arca, Inc. regarding the handling of routable Limit Orders: - Government buyer: - Securities and Exchange Commission (SEC) - NYSE Arca, Inc. (self-regulatory organization submitting the rule change) - No OEMs, vendors, or commercial products are mentioned, as this is a regulatory notice, not a procurement - Key regulatory change: - Amend Rule 7.31-E to have routable Limit Orders operate as Inside Limit Orders unless otherwise specified - Orders will be routed price-by-price to the best available price, rather than simultaneously to multiple price points - Intended to improve execution prices by waiting for updates to the National Best Bid or Offer (NBBO) - Additional request for public comment: - Seeks input on exchange-traded funds (ETFs) investing in innovative asset classes or novel investment strategies - No products, part numbers, or purchase quantities are included - No unique technical or operational requirements beyond the regulatory amendment

Description

The Securities and Exchange Commission announces a proposed rule change by NYSE Arca, Inc. to amend Rule 7.31-E relating to Limit Orders. The amendment changes the operation of routable Limit Orders to function as Inside Limit Orders unless otherwise specified, aiming to improve execution prices by waiting for changes to the National Best Bid or Offer (NBBO). The proposal eliminates the current routing of Limit Orders to multiple price points simultaneously and instead routes orders price-by-price to the best available price. The change is intended to promote just and equitable principles of trade and protect investors.

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