Notice2026-04341
Self-Regulatory Organizations; New York Stock Exchange LLC; Order Granting Approval of a Proposed Rule Change To Streamline and Modernize Rule 76
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 5, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 43 (Thursday, March 5, 2026)</title>
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[Federal Register Volume 91, Number 43 (Thursday, March 5, 2026)]
[Notices]
[Pages 10838-10839]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04341]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104914; File No. SR-NYSE-2026-02]
Self-Regulatory Organizations; New York Stock Exchange LLC; Order
Granting Approval of a Proposed Rule Change To Streamline and Modernize
Rule 76
March 2, 2026.
I. Introduction
On January 8, 2026, New York Stock Exchange LLC (``NYSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to streamline and modernize Rule
76. The proposed rule change was published for comment in the Federal
Register on January 23, 2026.\3\ The Commission received no comment
letters on the proposed rule change. This order approves the proposed
rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 104636 (Jan. 20,
2026), 91 FR 2978 (``Notice'').
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II. Description of the Proposed Rule Change
The Exchange proposes amendments to NYSE Rule 76 (``Crossing''
Orders) that would streamline and modernize the rule and eliminate
Designated Market Maker (``DMM'') involvement in manual Floor broker
cross transactions under both NYSE Rule 76 and NYSE Rule 72(d) on the
Trading Floor.\4\ Rule 76 governs the execution of ``cross'' or
``crossing'' orders by Floor brokers. NYSE Rule 76 applies only to
manual transactions executed on the Trading Floor and provides that
when a member has an order to buy and an order to sell the same
security that can be crossed at the same price, the member is required
[[Page 10839]]
to clearly announce to the trading Crowd \5\ the proposed cross by
offering the security at a price that is higher than his or her bid by
a minimum variation permitted in the security before crossing the
orders.\6\
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\4\ The term ``Trading Floor'' is defined in Rule 6A to mean the
restricted-access physical areas designated by the Exchange for the
trading of securities, commonly known as the ``Main Room'' and the
``Buttonwood Room.''
\5\ Rule 70.30 defines ``Crowd'' as the ``rooms on the Exchange
Floor that contain active posts/panels where Floor brokers are able
to conduct business constitute the Crowd. A Floor broker will be
considered to be in the Crowd if he or she is physically present in
one of these rooms.''
\6\ See Notice, supra note 3, at 2979.
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The Exchange proposes to modernize the way Floor brokers execute
cross transactions on the Trading Floor. Rather than perpetuating the
current practice of a Floor broker verbally announcing the cross trade
at the post/panel of the DMM unit for the subject security and having
the relevant DMM acknowledge the Floor broker announcement, the
Exchange proposes that Floor brokers would undertake these functions at
a designated spot on the Trading Floor in the presence of a Trading
Official, thereby eliminating any interaction between a Floor broker
and a DMM during cross transactions.\7\
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\7\ See id.
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The Exchange states that in today's marketplace, cross transactions
are negotiated upstairs by customers seeking a primary market print or
customers who do not wish to have their orders handled by broker-
dealers that also trade as principal. As a practical matter, cross
transactions are no longer arranged at the point of sale by Floor
brokers interacting with other brokers and the DMM in a physical
trading crowd. In the current environment, verbally announcing a
proposed cross transaction at a post/panel means announcing it to the
DMM and any other Floor brokers that happen to be nearby. As proposed,
Floor brokers would announce the cross transaction electronically to
all other Floor brokers on the Trading Floor.\8\
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\8\ See Notice, supra note 3, at 2979-2980.
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The Exchange states that announcement of a proposed cross
transaction to the Crowd would be consistent with NYSE Rule 70.30.
Moreover, because crosses under NYSE Rule 72(d) utilize the crossing
procedures set forth in NYSE Rule 76, the proposed change would also
eliminate the need to announce NYSE Rule 72(d) crosses at the post/
panel where the security to be crossed is traded and eliminate DMM
involvement in those transactions as well. As proposed, Floor brokers
would also electronically announce NYSE Rule 72(d) crosses to all
Floor-based participants. The remaining aspects of NYSE Rule 72(d)
would remain unchanged by the proposal.\9\
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\9\ See Notice, supra note 3, at .
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The Exchange also proposes to simplify NYSE Rule 76 by removing all
references to wireless hand-held devices or ``HHDs'' from subsection
(a) of Supplementary Material .10. The Exchange proposes to replace
references to ``quote minder'' with ``Exchange systems.'' Finally, the
Exchange proposes to delete the preamble to NYSE Rule 76 providing that
``Supplementary Material .10 to this Rule is not applicable to trading
UTP Securities on the Pillar trading platform.'' Given the proposed
changes, including elimination of verbal announcements at the point of
sale for Exchange-listed securities, Floor brokers executing cross
transactions under either NYSE Rule 72(d) or NYSE Rule 76 would follow
the same procedures when crossing Exchange-listed and UTP securities,
rendering the preamble unnecessary. The remaining aspects of the Cross
Function described in NYSE Rule 76.10 would remain unchanged.\10\
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\10\ See Notice, supra note 3, at .
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III. Discussion and Commission Findings
The Commission finds that the proposed rule change is consistent
with the requirements of the Exchange Act and the rules and regulations
thereunder applicable to a national securities exchange.\11\ In
particular, the Commission finds that the proposed rule change is
consistent with Section 6(b)(5) of the Exchange Act,\12\ which
requires, among other things, that the rules of a national securities
exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general, to protect investors and the
public interest, and not be designed to permit unfair discrimination
between customers, issuers, brokers, or dealers.
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\11\ 15 U.S.C. 78f(b). In approving this proposed rule change,
the Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\12\ 15 U.S.C. 78f(b)(5).
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The proposed changes to NYSE Rule 76 would remove impediments to
and perfect the mechanism of a free and open market and a national
market system by streamlining and modernizing the process for executing
cross transactions on the Trading Floor. The requirement that a Floor
broker announce a cross transaction at the point of sale is intended to
``clear'' the trading Crowd before executing a cross transaction.
Having the Floor broker announce proposed cross transactions
electronically to all Floor-based market participants would make the
process more efficient by not limiting the announcement to a single
physical location on the Trading Floor. The proposed announcement would
also allow additional Floor brokers to learn about pending cross
transactions and potentially participate, to the benefit of the
marketplace and investors. Therefore, the Commission also believes that
the proposed changes to Rule 76 would promote just and equitable
principles of trade consistent with Section 6(b)(5) of the Act.\13\
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\13\ 15 U.S.C. 78f(b)(5).
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Further, the proposal to require Exchange Trading Officials to
supervise and acknowledge announcements of the proposed cross
transactions promotes investor protection and the public interest.
Finally, allowing the Floor broker electronically announce cross
transactions under NYSE Rules 72 and 76 at a designated spot on the
Trading Floor in the presence of a Trading Official rather than at the
point of sale would permit Cross transactions to be extended to UTP
securities, which would remove impediments to and perfect the mechanism
of a free and open market and a national market system.
For the foregoing reasons, the Commission believes that the
proposal is consistent with the Act.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Exchange Act,\14\ that the proposed rule change (SR-NYSE-2026-02) be
and it hereby is approved.
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\14\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-04341 Filed 3-4-26; 8:45 am]
BILLING CODE 8011-01-P
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