Federal Register #SR-NYSEARCA-2026-97

NYSE Arca Proposed Rule Change on Clearly Erroneous Executions for Overnight Trading

This notice from the Securities and Exchange Commission (SEC) concerns a proposed rule change by NYSE Arca, Inc. regarding securities trading regulations. - Regulatory Context: - NYSE Arca, Inc. proposes amendments to Rule 7.10-E, which governs the review of clearly erroneous executions in securities trading. - The change is prompted by the SEC's approval of Overnight Price Bands under the Limit Up-Limit Down (LULD) Plan, enabling 23/5 trading (23 hours a day, five days a week). - Key Amendments: - The proposal reverses prior changes to Rule 7.10-E. - Extends restrictions on clearly erroneous review to transactions executed during Overnight Protected Hours, aligning them with Core Trading Session rules. - Industry Impact: - No products, OEMs, or purchase quantities are involved; this is a regulatory update, not a procurement opportunity. - Similar rule changes are anticipated from other national securities exchanges and FINRA. - Notable Requirements: - The rule change ensures consistent treatment of clearly erroneous executions across both overnight and core trading sessions. - No commercial vendors or manufacturers are referenced.

Description

This notice announces a proposed rule change by NYSE Arca, Inc. to amend Rule 7.10-E concerning clearly erroneous executions. The amendment is in response to the SEC's approval of Overnight Price Bands under the Limit Up-Limit Down (LULD) Plan for 23/5 trading. The proposal reverses prior changes made to Rule 7.10-E and extends restrictions on clearly erroneous review to transactions executed during Overnight Protected Hours, aligning them with the Core Trading Session rules. The change aims to provide greater certainty to market participants that trades executed within the Price Bands will stand and not be broken.

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