Notice2026-11142
Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide for a Momentary Handoff, Upon the Exchange Commencing Trading of NMS Stocks and Exchange Traded Products
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
June 4, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 107 (Thursday, June 4, 2026)</title>
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[Federal Register Volume 91, Number 107 (Thursday, June 4, 2026)]
[Notices]
[Pages 33845-33847]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11142]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105590; File No. SR-NASDAQ-2026-047]
Self-Regulatory Organizations; The Nasdaq Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Provide for a Momentary Handoff, Upon the Exchange Commencing Trading
of NMS Stocks and Exchange Traded Products
June 1, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 26, 2026, The Nasdaq Stock Market LLC (``Nasdaq'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III, below, which Items have been prepared by the
Exchange. 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\ 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 the Exchange's rules to provide for
a momentary handoff, upon the Exchange commencing trading of NMS stocks
and exchange traded products 23 hours per day, five days per week, to
facilitate the transition between Day and Night Sessions on the
Exchange.
The text of the proposed rule change is set forth below; proposed
new language is italicized; deleted text is in brackets.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/nasdaq/rulefilings">https://listingcenter.nasdaq.com/rulebook/nasdaq/rulefilings</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 Exchange 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 these 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 aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend the Exchange's
Rulebook to provide for a momentary handoff between the Exchange's new
Day and Night Sessions once the Exchange begins to trade NMS stocks and
exchange traded products (``ETPs'') on a 23 hours per day, five days
per week basis (``23/5'').
Background and Overview
On April 15, 2026, the SEC approved a proposal that the Exchange
submitted to trade NMS stocks and ETPs on a 23/
[[Page 33846]]
5 basis.\3\ As set forth in the Approval Order, the Exchange will
conduct 23/5 trading in two sessions: a ``Day'' Session, which
comprises all existing trading hours of the Exchange, from 4:00 a.m. ET
until 8:00 p.m. ET,\4\ and a newly established ``Night'' Session, which
will run from 9:00 p.m. ET until 4:00 a.m. ET.\5\ Additionally, in
coordination with other exchanges offering similar extended trading
hours, the Exchange will also pause trading between 8:00 p.m. ET and
9:00 p.m. ET to perform maintenance, testing, and to facilitate the
transition to the existing trading day to the new trading day, which
will commence at 9:00 p.m. ET (the ``Day-to-Night Pause'').\6\ At the
conclusion of the Day Session at 8:00 p.m. ET, Nasdaq will cancel all
orders then outstanding.\7\ Nasdaq will launch the operation of its 23/
5 market upon the availability of the Securities Information Processor
(``SIP'') to operate during the Night Session.\8\
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\3\ See Securities Exchange Act Release No. 34-105199 (April 10,
2026), 91 FR 20222 (April 15, 2026) (the ``Approval Order'').
\4\ The new Day Session will consolidate and encompass three
daily trading sessions that occur on Nasdaq during each weekday from
Monday through Friday. In particular, the Day Session will encompass
the following. First, it will include the Pre-Market Hours session
that Nasdaq currently conducts from 4:00AM to 9:30AM ET. See Rule
Equity 1, Section 1(a)(9). Second, commencing at 9:30AM with the
execution of the Nasdaq Opening Cross, the Day Session will include
Nasdaq's Regular Market Hours trading session, whih runs until
4:00PM. See id. Third, commencing at 4:00PM with the execution of
the Nasdaq Closing Cross, the Day Session will include the Post-
Market Hours trading session, which runs from 4:00 p.m. until 8:00
p.m. See id.
\5\ During weekdays, between the hours of 8:00 p.m.-4:00 a.m.
ET, the Exchange at present is closed to trading as it is during all
weekend hours. Going forward, however, the Night Session will run
between 9:00 p.m.-4:00 a.m. ET during the weekdays, commencing each
week with a Night Session that will begin at 9:00 p.m. ET on
Sundays.
\6\ Between 8:00 p.m. and 9:00 p.m. ET on each weekday, the
Exchange will pause trading on its market to conduct maintenance,
testing, and to process those corporate actions, such as mergers,
stock splits, and dividends, that will become effective the
following trading day. The pause will also allow for market
participants to process and clear trades before proceeding to a new
trading day. See Equity 1, Rule 1(a)(19).
\7\ See Rule 4120(a)(10)(B).
\8\ See Equity 1, Section 1(19) (defining the term ``Night
Session'' and further providing that (1) the Exchange shall not
commence operation of the Night Session unless the Equity Data Plans
(1) have established a mechanism to collect, consolidate, process
and disseminate quotation and transaction information at all times
during the Night Session that is equivalent to the mechanism
established for Exchange trading hours during Regular Market Hours,
and (2) have provided the Exchange with notification that they are
prepared to collect, consolidate, process and disseminate quotation
and transaction information to accommodate the Night Session; (2)
that prior to commencing operation during the Night Session, the
Exchange will file a proposed rule change pursuant to Section 19(b)
of the Exchange Act and the rules thereunder to amend its rules
confirming that the Exchange is able to comply with its obligations
under the Exchange Act and the rules thereunder during the Night
Session and that such Equity Data Plans are prepared to collect,
consolidate, process and disseminate quotation and transaction
information at all times during the Night Session (``Night Session
Proposed Rule Change''); and (3) that if the Night Session Proposed
Rule Change is not filed within 18 months of the SEC's approval of
this proposed rule change, the Exchange will promptly file a
proposed rule change to remove the rules that apply to the Night
Session). See id.
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The Exchange intends for the transition from the Night Session to
the Day Session to be as seamless as possible, but to ensure that the
transition is orderly, it will be necessary for trading to be in
abeyance momentarily during that transition. Specifically, this new
proposed handoff (the ``Night-to-Day Handoff'') will enable the
Exchange to avoid reporting overlapping quoting information to the SIP
during the transition between sessions.
Unlike the Day-to-Night Pause, the Exchange expects that the Night-
to-Day Handoff will be short and of de minimis duration. The Exchange
will publish a more specific estimate of the duration of the Night-to-
Day Handoff in a Nasdaq Trader Alert prior to the launch of 23/5
trading on Nasdaq.
To effectuate the Night-to-Day Handoff, the Exchange proposes to
amend Rule 4120(a)(10)(C) to state that it will cancel all open orders
outstanding in the Night Session ``just prior to'' rather than ``as
of'' 4:00 a.m. ET.\9\ As set forth in Rule 4752(b), the Exchange will
continue to accept new orders again when the Exchange commences the Day
Session at 4:00 a.m. ET.
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\9\ See proposed Rule 4120(a)(10)(C).
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The Exchange also proposes to amend Rule 4756(a)(3) to state that
orders for the Night Session may be entered into the System (or
previously entered orders cancelled or modified) from 9:00 p.m. ET
until ``just prior to'' 4:00 a.m. ET in accordance with the hours of
operation for the Night Session. Similarly, with respect to entry of
quotes by Nasdaq Market Makers, the Exchange proposes to provide that
during the Night Session, Nasdaq Market Makers and Nasdaq ECNs can
enter quotes into the System from 9:00 p.m. ET to ``just prior to''
4:00 a.m. ET.\10\ For orders with a Time-in-Force \11\ of ``Night,''
these orders will deactivate ``just prior to'' the conclusion of the
Night Session at 4:00 a.m. ET, rather than at 4:00 a.m. ET.\12\
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\10\ See proposed Rule 4756(b).
\11\ The ``Time-in-Force'' assigned to an Order means the period
of time that the Nasdaq Market Center will hold the Order for
potential execution. Participants specify an Order's Time-in-Force
by designating a time at which the Order will become active and a
time at which the Order will cease to be active. See Rule 4702.
\12\ The Exchange further proposes to amend subparagraph (2) of
Rule 4703, which states that ``an Order with a Time in Force of
`System Hours Day' or `SDAY' designated for participation in the
Night Session will deactivate at 4:00 a.m.,'' so that it instead
deactivates ``just prior to 4:00 a.m.'' See proposed Rule
4703(a)(2).
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The Exchange proposes to implement this proposal at the same time
as when the Exchange commences trading on a 23/5 basis.\13\
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\13\ See n.9, supra.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\14\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\15\ in particular, in that it is designed 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.
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\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(5).
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It is consistent with the Act for the Exchange to conduct a
momentary handoff just prior to the end of the Night Session, at 4:00
a.m. ET, and prior to the commencement of the Day Session, at 4:00 a.m.
ET, because such a handoff will help ensure that the Exchange does not
unintentionally submit overlapping data to the SIP as it transitions
from the Night to the Day Session.
As with the transition from the Nasdaq Closing Cross and Regular
Market Hours to Post-Market Hours Trading, the transition from Night to
Day Sessions may not be instantaneous and may require a few moments to
wrap up one trading session before commencing the next one. Nasdaq
notes that the rules of the New York Stock Exchange provide for it to
open at or ``as close to the beginning of Core Trading Hours as
possible.'' \16\
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\16\ See NYSE Rule 7.35A(a) (providing for Designated Market
Makers to ensure that registered securities open as close to the
beginning of NYSE's core trading hours as possible'')
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This approach reflects the technical and functional separation of
the two systems underlying its two 23/5 trading Sessions and ensures
that the transition between trading Sessions occurs in a manner
consistent with the Act's goals of ensuring market integrity, investor
protection, and fair and orderly trading.
Lastly, the proposal would reduce potential investor and market
participant confusion about the Exchange's transition between trading
Sessions, and the time at which Night Session orders will be canceled
in preparation for the commencement of
[[Page 33847]]
the Day Session. The proposal would address this confusion by
clarifying that the transition from Night to Day Session will not be
instantaneous, and that a momentary handoff from one Session to the
other may be needed during which time outstanding orders from the Night
Session will be canceled just prior to 4:00 a.m. ET.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange's proposal to
conduct a momentary handoff between its Night and Day Trading Sessions
is intended to nor will it adversely impact competition. The duration
of the Night-to-Day handoff will be momentary, applicable to all
participants, and should not impact participants' ability to compete
vis-[agrave]-vis one another. To the extent that the proposal does have
any adverse competitive impact on participants, the Exchange believes
that this impact will be minimal, both because the handoff itself will
be of a de minimis duration and because the Exchange expects that
equity volumes on the Exchange at or around 4:00 a.m. ET will be lower
than at other times of the trading day. Moreover, any such impact would
be justified by the need to minimize the risks of a disorderly
transition occurring between the Exchange's Night and Day Sessions.
The Exchange operates in a highly competitive market in which
market Participants can readily choose between competing venues if, as
a result of the proposal, they deem participation in the Exchange's
market to no longer be desirable or if they do not wish to trade at or
around the transition from the Night to the Day Session. Competitors to
the Exchange are free to develop or modify the functionality and
structure of their markets so that these markets either do not require
a handoff at all at or around 4:00 a.m. ET, or require one of a shorter
duration. Accordingly, the Exchange believes that the degree to which
its proposal imposes any burden on competition is limited.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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 for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \17\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\18\
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\17\ 15 U.S.C. 78s(b)(3)(A)(iii).
\18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the 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 to
determine whether the proposed rule should be approved or disapproved.
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#691b1c050c440a0604040c071d1a291a0c0a470e061f"><span class="__cf_email__" data-cfemail="bdcfc8d1d890ded2d0d0d8d3c9cefdced8de93dad2cb">[email protected]</span></a>. Please include
file number SR-NASDAQ-2026-047 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-NASDAQ-2026-047. 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-NASDAQ-2026-047 and should be submitted
on or before June 25, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-11142 Filed 6-3-26; 8:45 am]
BILLING CODE 8011-01-P
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