Notice2026-10450
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Temporary Rule 7.34-E(T) To Provide for an Overnight Trading Session and To Amend the Hours for the Exchange's Early Trading Session and the Late Trading Session, and To Make Corresponding Changes to Other Rules
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
May 27, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 101 (Wednesday, May 27, 2026)</title>
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[Federal Register Volume 91, Number 101 (Wednesday, May 27, 2026)]
[Notices]
[Pages 31509-31513]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10450]
[[Page 31509]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105532; File No. SR-NYSEARCA-2026-53]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Temporary
Rule 7.34-E(T) To Provide for an Overnight Trading Session and To Amend
the Hours for the Exchange's Early Trading Session and the Late Trading
Session, and To Make Corresponding Changes to Other Rules
May 21, 2026.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on May 12, 2026, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend temporary Rule 7.34-E(T) (``Trading
Sessions'') to provide for an Overnight Trading Session and to amend
the hours for the Exchange's Early Trading Session and the Late Trading
Session, and to make corresponding changes to other rules. The proposed
rule change is available on the Exchange's website at <a href="http://www.nyse.com">www.nyse.com</a> and
at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
NYSE Arca, Inc. (``NYSE Arca'' or the ``Exchange'') proposes to
amend temporary Rule 7.34-E(T) (``Trading Sessions'') to provide for an
Overnight Trading Session and to amend the hours for the Exchange's
Early Trading Session and the Late Trading Session, and to make
corresponding changes to other rules.
On February 11, 2025, the Securities and Exchange Commission
(``Commission'') approved the Exchange's proposal to adopt temporary
Rule 7.34-E(T) to lengthen its trading hours for NMS stocks to 1:30
a.m. Eastern Time through 11:30 p.m. Eastern Time on Monday through
Thursday, and 1:30 a.m. Eastern Time through 8:00 p.m. Eastern Time on
Friday (``Extended Hours Trading'').\4\ As part of that proposal, among
other things, the Exchange amended current Rule 7.34-E (Trading
Sessions) to include a preamble providing that the current version of
Rule 7.34-E would remain operative until Extended Hours Trading as set
out in Rule 7.34-E(T) is operative, and that the Exchange would not
commence operating pursuant to the hours set out in Rule 7.34-E(T)
unless the Equity Data Plans \5\ ``(1) have established a mechanism to
collect, consolidate, process and disseminate quotation and transaction
information at all times during Extended Hours Trading that is
equivalent to the mechanism established for the Core Trading Session,
and (2) have provided the Exchange with notification that they are
prepared to collect, consolidate, process and disseminate quotation and
transaction information to accommodate Extended Hours Trading.'' The
preamble to current Rule 7.34-E further provides that when such
conditions are met, the Exchange will file a proposed rule change
pursuant to Section 19(b) of the Exchange Act and the rules thereunder
before commencing Extended Hours Trading as described in Rule 7.34-
E(T).
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\4\ See Securities Exchange Act Release No. 102400 (February 11,
2025), 90 FR 9794 (February 18, 2025) (SR-NYSEARCA-2024-89)
(``Original Filing'').
\5\ ``Equity Data Plans'' is defined in Rule 1.1 (Definitions).
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Following the Commission's approval of the Original Filing, the
Exchange has continued to discuss plans for Extended Hours Trading with
domestic and international market participants and has determined to
refine its approach. The Exchange now proposes to amend Rule 7.34-E(T)
to provide that the Exchange would operate from 9:00 p.m. Eastern Time
Sunday to 8:00 p.m. Eastern Time Friday, with a pause in trading from
8:00 p.m. Eastern Time on Monday through Thursday for an hour to
accommodate technical refreshes for the Exchange, the Processors, and
other market participants (``23/5 Trading'').
To facilitate 23/5 Trading, the Exchange proposes to make the
following changes to its rules.
Proposed Changes to Rule 7.34-E(T)(a)
Specifically, to facilitate 23/5 Trading, the Exchange proposes to
add a definition for a fourth trading session--the ``Overnight Trading
Session''--and to amend the definitions of ``Early Trading Session''
and ``Late Trading Session'' in Rule 7.34-E(T)(a).
In Rule 7.34-E(T)(a)(1), the Exchange proposes to add a definition
for ``Overnight Trading Session'' and to renumber the remaining
provisions of Rule 7.34-E(T)(a) accordingly. The first sentence of the
definition would provide that ``The Overnight Trading Session will
begin at 9:00 p.m. Eastern Time on Sunday through Thursday and conclude
at the commencement of the next calendar day's Early Trading Session.''
In addition, proposed Rule 7.34-E(T)(a)(1) would also provide that
the ``Exchange will begin accepting orders for all of that trading
day's trading sessions at 8:59 p.m. Eastern Time, one minute before the
Overnight Trading Session begins''--not 30 minutes before trading
opens, as the current version of the temporary rule provides.\6\ Under
23/5 Trading, the Exchange's systems would undergo a technical refresh
during the one-hour pause in trading from 8:00 p.m. Eastern Time on
Monday through Thursday and would not be available to accept orders at
8:30 p.m. Eastern Time, but would be available to begin accepting
orders for all of the trading day's sessions at 8:59 p.m. Eastern Time
before the session starts at 9:00 p.m. Eastern Time. Proposed Rule
7.34-E(T)(a)(1) would specify that the ``Overnight Trading Session will
begin with continuous trading,'' not an opening auction.
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\6\ See current Rule 7.34-E(T)(a)(1), providing that ``The
Exchange will begin accepting orders 30 minutes before the Early
Trading Session begins.''
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The Exchange proposes to move the current text of Rule 7.34-
E(T)(a)(1), concerning the Early Trading Session, to subparagraph
(a)(2). The Exchange proposes to amend the first sentence to provide
that the ``Early Trading Session will begin at 4:00 a.m. Eastern Time
and conclude at the commencement of the
[[Page 31510]]
Core Trading Session.'' The Exchange also proposes to remove the second
sentence, which provides that the Exchange ``will begin accepting
orders 30 minutes before the Early Trading Session begins,'' as
inconsistent with the proposed revision to subparagraph (a)(1)
specifying that the Exchange will begin accepting orders for all of the
trading day's trading sessions at 8:59 p.m. Eastern Time.
The Exchange proposes to move the current text of Rule 7.34-
E(T)(a)(2), concerning the Core Trading Session, to subparagraph
(a)(3). The Exchange proposes no other changes to that provision.
The Exchange proposes to move the current text of Rule 7.34-
E(T)(a)(3), concerning the Late Trading Session, to subparagraph
(a)(4). The Exchange proposes to amend that provision to specify that
the ``Late Trading Session will begin following the conclusion of the
Core Trading Session and conclude at 8:00 p.m. Eastern Time,'' and to
delete the remainder of the current text.
The Exchange also proposes to add subparagraph (a)(5) of Rule 7.34-
E(T), titled ``Note about Holidays,'' which would provide: ``If the
Exchange is closed for a holiday falling between Monday and Friday, the
Exchange will conclude its Late Trading Session the evening before the
holiday and will commence the next Overnight Trading Session at 9:00
p.m. Eastern Time on the evening of the holiday.''
Proposed Changes to Rules 7.31-E and 7.34-E(T)(c)
Rule 7.31-E (``Orders and Modifiers'') defines the Exchange's order
types and their applicability during the Exchange's various trading
sessions. To facilitate 23/5 Trading, the Exchange proposes to amend
the text pertaining to certain order types to specify the treatment of
such order types in the Overnight Trading Session.
First, the Exchange proposes to amend Rule 7.31-E(a)(2)(B)(ii) to
specify that Limit Order Price Protection, which currently applies to
the Early and Late Trading Sessions, would also apply to the Overnight
Trading Session.
Second, the Exchange proposes to amend Rule 7.31-E(h)(3) to provide
that Discretionary Pegged Orders, which are currently rejected if they
are designated for the Early or Late Trading Sessions, would also be
rejected if designated for the Overnight Trading Session.
Third, the Exchange proposes to amend Rule 7.31-E(j)(2) to provide
that Market Makers may enter Q orders in securities in which they are
registered during the Overnight Trading Session, in addition to during
the Early and Late Trading Sessions as the rule currently provides.
In addition, Rule 7.34-E(T)(c) describes the order types permitted
in each trading session. The Exchange proposes to add new rule text to
Rule 7.34-E(T)(c) concerning the orders types permitted in the
Overnight Trading Session. The Exchange proposes to add to Rule 7.34-
E(T)(c)(1) a description of the order types permitted in the Overnight
Trading Session, and to renumber the remaining provisions of Rule 7.34-
E-(T)(c) accordingly. The proposed text of Rule 7.34-E(T)(c)(1)
concerning order types in the Overnight Trading Session is based on
current Rule 7.34-E(T)(c)(1) concerning the Exchange's Early Trading
Session, as well as Rule 7.34(c)(1) of the Exchange's affiliate NYSE
National, Inc. (``NYSE National''), which pertains to the order types
permitted in that exchange's Early Trading Session, which, like the
Exchange's Overnight Trading Session, operates without auctions. As
such, the proposed changes are not novel.
Specifically, proposed Rule 7.34-E(T)(c)(1)(A) would provide that
Market Orders and Pegged Orders are not eligible to participate in the
Overnight Trading Session; that Market Orders and Pegged Orders that
include a designation for the Overnight Trading Session would be
rejected; and that Market Pegged Orders and Discretionary Pegged
Orders, regardless of the session designated for the order, may not be
entered before or during the Overnight Trading Session and will be
rejected. This proposed rule text is based on the current text of Rule
7.34-E(T)(c)(1)(A) concerning the Exchange's Early Trading Session,
without alteration except for replacing ``Early Trading Session'' with
``Overnight Trading Session.''
Proposed Rule 7.34-E(T)(c)(1)(B) would provide that Limit Orders
designated IOC will be accepted if entered during the Overnight Trading
Session, and will be rejected if designated for execution in any
trading session other than the Overnight Trading Session. This proposed
rule text is based on the current text of Rule 7.34-E(T)(c)(1)(B) and
(C), which permit the entry of Limit Orders designated IOC only during
the session in which they will execute.
Proposed Rule 7.34-E(T)(c)(1)(C) would provide that for securities
not eligible for an auction on the Exchange, Market Orders designated
for the Core Trading Session and Auction-Only Orders will be routed to
the primary listing market on arrival. It would further provide that
any order routed directly to the primary listing market on arrival will
be cancelled if that market is not accepting orders. This proposed rule
text is based on the current text of Rule 7.34-E(T)(c)(1)(D) concerning
the Exchange's Early Trading Session, without alteration.
Proposed Rule 7.34-E(T)(c)(1)(D) would provide that MOO Orders, MOC
Orders, LOC Orders, Primary Only Orders, and Directed Orders designated
for the Overnight Trading Session will be rejected. This proposed rule
text is based on the current text of Rule 7.34-E(T)(c)(1)(E) concerning
the Exchange's Early Trading Session, without alteration except for
replacing ``Early Trading Session'' with ``Overnight Trading Session.''
Proposed Rule 7.34-E(T)(c)(1)(E) would provide that Non-Displayed
Limit Orders, MPL Orders, Tracking Orders, and RPI Orders entered
before the Overnight Trading Session will be rejected. This proposed
rule text is based on the text of NYSE National Rule 7.34(1)(F)
concerning the Early Trading Session, without alteration except for
replacing ``Early Trading Session'' with ``Overnight Trading Session.''
The Exchange proposes to move the current text of Rule 7.34-
E(T)(c)(1), concerning order types permitted in the Early Trading
Session, to subparagraph (c)(2). The Exchange proposes no other changes
to that provision.
The Exchange proposes to move the current text of Rule 7.34-
E(T)(c)(2), concerning order types permitted in the Core Trading
Session, to subparagraph (c)(3). The Exchange proposes no other changes
to that provision.
The Exchange proposes to move the current text of Rule 7.34-
E(T)(c)(3), concerning order types permitted in the Late Trading
Session, to subparagraph (c)(4). The Exchange proposes no other changes
to that provision.
Proposed Change to Rule 7.10-E
The Exchange proposes to amend Rule 7.10-E (``Clearly Erroneous
Executions'') to specify the portions of the rule that would apply
during the Overnight Trading Session. Specifically, the proposed
changes specify that under Rule 7.10-E(c)(2), clearly erroneous review
will be available to review transactions occurring during the Overnight
Trading Session on the same basis as currently applies to the Early and
Late Trading Sessions. There are no substantive differences between the
applicability of Rule 7.10-E proposed for the Overnight Trading Session
and the current applicability of the rule to the Early and Late Trading
Sessions.
[[Page 31511]]
Proposed Change to Rule 7.19-E
To support 23/5 Trading, the Exchange will offer Entering Firms a
new risk control under Rule 7.19-E (``Pre-Trade Risk Controls'') that
would prohibit orders from executing during the Overnight Trading
Session. The Exchange plans to offer this new risk check as one of the
Single Order Risk Controls available to Entering Firms under Rule 7.19-
E(b)(2)(C), which permits the Exchange to offer Entering Firms
``controls related to the order types or modifiers that can be
utilized.'' Under that rule authority, the Exchange currently allows
Entering Firms to prohibit orders from executing in each of the
Exchange's three current trading sessions, and this change would permit
them to do the same for the Overnight Trading Session. Because this
risk control falls within the existing rule authority, no rule change
is required for the Exchange to offer this risk check to Entering
Firms.
The Exchange proposes to also permit Clearing Firms to prohibit
orders from executing during the Overnight Trading Session, when a
Clearing Firm has been designated by an Entering Firm to enact pre-
trade risk controls on the Entering Firm's behalf. Specifically, the
Exchange proposes to amend Rule 7.19-E(c)(1) to add a new subparagraph
(c)(1)(C), which would permit Clearing Firms designated by an Entering
Firm to prohibit orders from executing during the Overnight Trading
Session. Rule 7.19-E(c) does not currently enable Clearing Firms to
prohibit orders from executing during particular trading sessions, so
the Clearing Firm's ability to prohibit orders from executing during
the Overnight Trading Session would be a new feature of the rule.
Other Forthcoming Changes
The Exchange is coordinating with the other equities markets about
additional proposed rule changes in support of 23/5 Trading, including
(1) Regulatory Halts for certain corporate actions (Rule 7.18-E) and
(2) the resumption of trading after a Level 3 Market-Wide Circuit
Breaker Halt (Rule 7.12-E). The Exchange will propose changes regarding
those rules in forthcoming rule filings.
Implementation
As set out above and in the preamble to Rule 7.34-E, when the
Equity Data Plans have notified the Exchange that they have made the
required functional changes and are ready to begin processing 23/5
Trading, the Exchange will file another rule change with the Commission
before activating 23/5 Trading.
The preamble currently provides that such rule change must be made
``within 18 months of the SEC's approval of the Exchange's rule filing
adopting Rule 7.34-E(T)''--namely, by August 11, 2026. In light of the
industry's plan to launch Extended Hours Trading on December 6, 2026,
the Exchange proposes to amend the preamble to replace ``18 months''
with ``24 months, which the Exchange expects to do in line with the
industry's projected readiness date for Extended Hours Trading of
December 6, 2026.'' This is a non-substantive change and simply extends
the time for the Exchange to launch Extended Hours Trading to be in
line with the industry's launch plans.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b)(5) of the Act,\7\ in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, 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.
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\7\ 15 U.S.C. 78f(b)(5).
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Proposed Changes to Rule 7.34-E(T)(a). The Exchange believes that
the proposed amendment would remove impediments to and perfect the
mechanism of a free and open market and a national market system by
providing a rules framework to support 23/5 Trading, which the Exchange
believes will increase market accessibility, promote capital formation,
and facilitate portfolio management.
As in the Original Filing, the Exchange believes that making this
change in temporary Rule 7.34-E(T) would promote transparency in
Exchange rules and add clarity as to which rules are operative and
when, thereby reducing potential confusion and making the Exchange's
rules easier to navigate. The preamble to the current version of Rule
7.34-E would not be changed, and would continue to provide that the
Exchange will not commence operation of the longer Extended Trading
Hours prior to filing a proposed rule change to amend its rules
confirming that the Exchange is able to comply with its obligations
under the Act during the longer extended trading sessions and that the
Equity Data Plans are prepared to collect, consolidate, process, and
disseminate quotations and transaction information at all times during
the proposed Extended Hours Trading.
Also as in the Original Filing, the Exchange believes that applying
the current requirements for extended hours trading--such as order
designation, permitted orders, and mandatory customer disclosures, as
well as the operational and regulatory safeguards already in place for
the current Early, Core, and Late Sessions--to 23/5 Trading would
promote just and equitable principles of trade and protect investors
and the public interest. The Exchange's representations in the Original
Filing with respect to operations, order designation, permitted orders,
market surveillance, and customer disclosures apply equally to the 23/5
Trading proposal in this filing, namely:
<bullet> Operations. The proposed Overnight Trading Session will
operate in the same way as the current sessions from an operational
perspective. All order types eligible for such sessions and order type
behaviors will remain unchanged. The Exchange will route to away
markets during the proposed Overnight Trading Session just as it
currently does during the current Early and Late Trading Sessions.
Order processing during the proposed Overnight Trading Session will
function the same way it does in the current sessions, with no changes
to the ranking, display, or decrementation processes or rules.
<bullet> SIP Processing. The Exchange will submit all quotes and
trades that are generated in the Overnight Trading Session to the
consolidated quote and trade systems maintained by the System
Information Processors (SIPs) for public dissemination. Once the
Overnight Trading Session is operative, quotes and trades will be made
available to the investing public in the same manner that quotes and
trades are currently made available for other trading sessions. Trades
executed and reported during the Overnight Trading Session will be
reported to the appropriate network processor with the ``.T'' modifier,
as is currently the case for all trades executed outside of the Core
Trading Session.
<bullet> Corporate Actions. The Exchange will work with primary
listing exchanges to coordinate trading halts where appropriate,
including halts implemented due to significant material events (i.e., a
bankruptcy declaration). During the proposed Overnight Trading Session,
the Exchange will pause trading in the underlying security until
trading resumes on the primary listing
[[Page 31512]]
market for the security. Generally, regardless of trading session, when
a halt has been declared on the primary market, the Exchange will also
halt trading automatically in the subject security on NYSE Arca.
Exchange staff will be available during the Overnight Trading Session
in order to maintain a fair and orderly market, make any necessary
rulings, or take any action that may be necessary. Similarly, Exchange
staff will be available if any action such as declaration of a halt in
a NYSE Arca primary symbol would be necessary in the event of a system
malfunction or significant material event such as a bankruptcy
declaration.
<bullet> Market Surveillance. The Exchange's current regulatory
program will be fully applicable to trading in the proposed Overnight
Trading Session.
<bullet> Customer Disclosures. The enhanced customer disclosures in
Rule 7.34-E(T)(d) regarding the potential risks associated with trading
during Extended Hours Trading will apply to the Overnight Trading
Session.
The Exchange believes that its proposal to begin accepting orders
before the Overnight Trading Session at 8:59 p.m. Eastern Time (instead
of 30 minutes before the session begins, as the current version of Rule
7.34-E(T)(a) provides) would remove impediments to and perfect the
mechanism of a free and open market and a national market system. Under
23/5 Trading, trading will not be available during the one-hour pause
starting at 8:00 p.m. Eastern Time on Monday through Thursday, during
which time the Exchange's systems will perform end-of-day functions,
undergo a technical refresh, restart, and prepare for the commencement
of trading at 9:00 p.m. Eastern Time. The Exchange's systems would not
be available to accept orders 30 minutes before the Overnight Trading
Session begins, as the rule currently provides, since the Exchange's
systems will be undergoing their refresh and restart processes around
that time. Instead, the Exchange believes that it would 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 for the Exchange to begin accepting orders for the
Overnight Trading Session one minute before it starts, which would
accommodate the Exchange's system reset while still permitting market
participants to place orders before the session begins.\8\
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\8\ The various exchanges that plan to adopt 23/5 Trading have
taken different approaches to this issue, based upon their own
system architecture and requirements. For instance, Nasdaq plans to
start accepting orders at 9:00 p.m. Eastern Time, when their systems
open for trading, with no advance opportunity for market
participants to submit and queue orders, while Cboe has proposed
that its EDGX exchange would start accepting orders at 8:55 p.m.
Eastern Time. See Securities Exchange Act Release Nos. 105199 n. 82
(April 10, 2026), 91 FR 20222 (April 15, 2026) (SR-NASDAQ-2025-109)
(``[T]he Exchange will begin accepting orders for the Night Session
at 9:00 p.m. ET . . .''); 105206 (April 10, 2026), 91 FR 20213
(April 15, 2026) (SR-CboeEDGEX-2026-19) (proposed Rule 11.25(a)(2)
provides that EDGX will begin accepting orders at the Order
Acceptance Queuing Time of 8:55 p.m. Eastern Time). The Exchange's
proposal to start accepting orders at 8:59 p.m. Eastern Time is thus
within the range proposed by its competitor exchanges and is
reasonable. The Exchange also notes than when it starts accepting
orders at 8:59 p.m. Eastern Time, it will accept orders for all
trading sessions that day, not just the Overnight Trading Session.
See proposed Rule 7.34-E(T)(a)(1).
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The Exchange believes that its proposal to commence trading in the
Overnight Trading Session at 9:00 p.m. Eastern Time with continuous
trading, and to retain the Early Opening Auction to open the Early
Trading Session at 4:00 a.m. Eastern Time, would remove impediments to
and perfect the mechanism of a free and open market and a national
market system. The Exchange's affiliate NYSE National operates without
auctions and starts its Early Trading Session with continuous trading,
so the practice is not novel. Given the initial expectation of thinner
liquidity at 9:00 p.m. Eastern Time, the Exchange believes it is
reasonable to open the Overnight Trading Session with continuous order
matching. In addition, the Exchange believes it is in the public
interest to retain its 4:00 a.m. Early Opening Auction, to minimize any
disruption to the Early Trading Session and to enable market
participants that currently utilize that auction to continue to do so
even after the Overnight Trading Session is launched.
Proposed Changes to Rules 7.34(T)-E(c) and 7.31-E. The Exchange
believes that its proposed changes to Rules 7.34(T)-E(c)(c) and 7.31-E
would remove impediments to and perfect the mechanism of a free and
open market and a national market system and, in general, protect
investors and the public interest by specifying the order types
available in the Overnight Trading Session. The proposed text of Rule
7.34-E(T)(c)(1) concerning order types in the Overnight Trading
Session, is based on current Rule 7.34-E(T)(c)(1) concerning the
Exchange's Early Trading Session, as well as NYSE National Rule
7.34(c)(1), which pertains to the order types permitted in that
exchange's Early Trading Session, which, like the Exchange's Overnight
Trading Session, operates without auctions. As such, the proposed
changes are not novel.
Proposed Changes to Rule 7.10-E. The Exchange believes that its
proposed changes to Rule 7.10-E would remove impediments to and perfect
the mechanism of a free and open market and a national market system
and, in general, protect investors and the public interest by
clarifying the applicability of the Exchange's Clearly Erroneous Rule
to the Overnight Trading Session. That rule would operate in the same
way as it applies to the Exchange's Early and Late Trading Sessions,
and therefore is not novel.
Proposed Changes to Rule 7.19-E. The Exchange believes that its
proposed changes to Rule 7.19-E(c) would remove impediments to and
perfect the mechanism of a free and open market and a national market
system and, in general, protect investors and the public interest by
permitting an Entering Firm to exercise a pre-trade risk control
prohibiting orders from executing in the Overnight Trading Session, and
permitting an Entering Firm to give permission for its Clearing Firm to
similarly prohibit orders from executing during the Overnight Trading
Session. Although the current version of the rule does not permit
Clearing Firms to set risk controls that prohibit orders from executing
during particular sessions, the Exchange believes that, in light of the
potential risks associated with Extended Hours Trading, investor
protection and the public interest are enhanced by permitting Clearing
Firms so-designated by Entering Firms to prohibit orders from executing
during the Overnight Trading Session.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed change is
designed to add the Overnight Trading Session and to amend the hours
for the Exchange's Early Trading Session and the Late Trading Session,
and to make corresponding changes to other rules to provide for 23/5
Trading. The Exchange operates in a highly competitive environment in
which unaffiliated exchange competitors and new entrants could compete
to offer extended hours trading of similar duration, and the proposal
would therefore enable the Exchange to compete on a more level playing
field with these competitors.
[[Page 31513]]
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\
Because the proposed rule change does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\12\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#3c4e495059115f5351515952484f7c4f595f125b534a"><span class="__cf_email__" data-cfemail="e795928b82ca84888a8a82899394a7948284c9808891">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2026-53 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-NYSEARCA-2026-53. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-NYSEARCA-2026-53 and should be submitted
on or before June 17, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-10450 Filed 5-26-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on May 27, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.