Notice2026-12035
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To amend Rule 7.35-E
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Published
June 16, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 115 (Tuesday, June 16, 2026)</title>
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[Federal Register Volume 91, Number 115 (Tuesday, June 16, 2026)]
[Notices]
[Pages 36224-36226]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-12035]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105670; File No. SR-NYSEARCA-2026-60]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To amend Rule 7.35-
E
June 11, 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 29, 2026, NYSE Arca, Inc. (``NYSE Arca'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit
[[Page 36225]]
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 Rule 7.35-E (Auctions) to introduce
an option for an exchange-traded products (``ETP'') eligible to
participate in an initial public offering (``IPO'') auction to elect to
commence trading in the NYSE Arca Early Trading Session. 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
The Exchange proposes to amend Rule 7.35-E(f) to provide an option
for an ``ETP IPO Security'' as defined therein to commence trading in
the Early Trading Session. The proposal is substantively identical to
Cboe BZX Exchange, Inc. (``Cboe BZX'') functionality that allows
similarly defined ETP IPO Securities the option to commence trading at
4:00 a.m. Eastern Time (``ET'') or in the IPO Auction at 9:30 a.m. ET
on the first day of trading.\4\
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\4\ See Cboe BZX Rule 11.23(a)(24) & 11.23(d)(2)(E)(i)(a). See
Securities Exchange Act Release No. 104037 (Sept. 29, 2025), 90 FR
46690 (Sept. 29, 2025) (SR-CboeBZX-2025-130) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Amend Rule
11.23 To Introduce an Option for an Exchange-Traded Product
(``ETP'') Eligible To Participate in an Initial Public Offering
(``IPO'') Auction To Elect to Commence Trading in the BZX Early
Trading Session) (``Cboe BZX Notice''). Nasdaq Stock Market LLC
(``Nasdaq'') also offers substantially similar functionality. See
Nasdaq Rule 4120; see generally Securities Exchange Act Release No.
103085 (May 20, 2025), 90 FR 22424 (May 27, 2025) (SR-Nasdaq-2025-
011) (Notice of Filing of Amendment No. 1, and Order Granting
Accelerated Approval of a Proposed Rule Change, as Modified by
Amendment No. 1, To Introduce Functionality To Initiate a Trading
Halt for Exchange-Traded Products on Launch Day) (``Nasdaq Approval
Order'').
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Given the current competitive landscape, the Exchange respectfully
requests that the Commission waive the five business day notice of the
Exchange's intent to file this proposed rule change as well as the 30-
day operative delay, so that the proposed rule change may become
effective and operative upon filing with the Commission pursuant to
Section 19(b)(3)(A) of the Act \5\ and paragraph (f)(6) of Rule 19b-4
thereunder.\6\
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6).
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Background and Proposed Rule Change
Currently, IPO Auctions for any security, including Derivative
Securities Products,\7\ for which NYSE Arca is the primary listing
market, excluding transfers, commence trading at the start of the Core
Trading Session, which begins for each security at 9:30 a.m. ET.\8\ IPO
Auctions follow the processing rules of a Core Open Auction subject to
Rule 7.35(f).
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\7\ Rule 1 defines ``Derivative Securities Product'' as a
security that meets the definition of ``derivative securities
product'' in Rule 19b-4(e) under the Act.
\8\ See Rule 7.34-E(a)(2).
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The Exchange proposes to provide that an ETP IPO Security, defined
as a Derivative Securities Product that is eligible to participate in
an IPO Auction pursuant Rule 7.35-E(f), may elect to begin trading in
the Early Trading Session, which begins at 4:00 a.m. ET,\9\ as an
alternative to the IPO Auction. As proposed, an ETP IPO Security that
elects to commence trading during the Early Trading Session would
follow the processing rules of an Early Open Auction set forth in Rule
7.35-E(b).
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\9\ See Rule 7.34-E(a)(1).
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To effectuate these changes, the Exchange would add the following
text to Rule 7.35-E(f):
An ``ETP IPO Security'' as defined herein may elect to commence
trading in the Early Trading Session. An ETP IPO Security that
elects to commence trading during the Early Trading Session will
follow the processing rules of an Early Open Auction. An ``ETP IPO
Security'' means a Derivative Securities Product that is eligible to
participate in an IPO Auction pursuant to this Rule.
The proposed rule text is substantially the same as Cboe BZX Rule
11.23(a)(24) and Rule 11.23(d)(2)(E)(i)(a).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\11\ in particular, 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 by
strengthening the Exchange's ability to oversee and police its
marketplace. In addition, the Exchange believes that the proposed rule
change is consistent with the Section 6(b)(5) requirement that the
rules of an exchange not be designed to permit unfair discrimination
between customers, issuers, brokers, or dealers.\12\
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change will remove
impediments to and perfect the mechanism of a free and open market and
national market system and will benefit investors by providing market
participants with additional opportunities to source and access
liquidity for their orders in new issue ETPs on the Exchange. The
proposed option to permit issuers to begin trading an ETP IPO Security
during the Early Trading Session would provide for earlier trading
opportunities in highly anticipated new issue ETPs, functionality that
is already in place on other marketplaces.\13\ The Exchange believes
that the issuer is best situated to determine whether to commence
trading in its ETP IPO Security during the Early Trading Session or
pursuant to the IPO Auction.
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\13\ See note 4, supra.
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The proposed amendments will have no impact on the operation of
trading in the Early Trading Session and would simply allow for an ETP
IPO Security to begin trading on the Exchange at 4 a.m. ET at the
issuer's option in the same manner that an ETP transferred from another
securities exchange begins trading on the Exchange. The Exchange
believes that amending its rules to extend trading hours for ETP IPO
Securities will benefit investors in that they will now be able to
trade ETP IPO Securities earlier in the day on the Exchange in the same
manner as currently available on other marketplaces, thereby providing
additional access to liquidity in securities that an ETP issuer deems
appropriate for trading in the Early Trading Session. The Exchange also
believes that offering the IPO Auction as a default for ETP IPO
Securities with the option to participate in the Early Trading Session
will allow issuers an
[[Page 36226]]
alternative option if such issuer is concerned about unexpected
volatility in ETP pricing during the Early Trading Session.\14\
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\14\ See Cboe BZX Notice, 90 FR at 46691 (citing Nasdaq Approval
Order, 90 FR at 24430).
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The Exchange believes that proposed rule changes raise no novel
issues as the proposed rules are consistent with early trading for ETPs
already in place under the rules of other exchanges.\15\
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\15\ See note 4, supra.
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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. In particular, the Exchange
does not believe that the proposed rule change will impose any burden
on intra-market competition that is not necessary or appropriate in
furtherance of purposes of the Act because all ETP IPO Securities may
commence trading in the Exchange's Early Trading Session if requested
by the issuer. The Exchange also does not believe that the proposed
rule change will impose any burden on intermarket competition but
instead may promote competition because the proposed early trading
hours for ETP IPO Securities are identical to those on Cboe and
Nasdaq.\16\ Market participants are free to trade on the Exchange if
they determine that this proposed rule change has made the Exchange a
more attractive or favorable venue.
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\16\ See id.
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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
Pursuant to Section 19(b)(3)(A) of the Act \17\ and Rule 19b-
4(f)(6) \18\ thereunder, the Exchange has designated this proposal as
one that effects a change that: (i) does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.\19\
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\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(6).
\19\ 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 requested waiver of
the five-day prefiling requirement for this proposal for the reasons
stated in its filing, which the Commission hereby grants.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act normally does not become operative for 30 days after the date of
its filing. However, Rule 19b-4(f)(6)(iii) \20\ permits the Commission
to designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requested
that the Commission waive the 30-day operative delay so that the
proposal can become effective upon filing. The Exchange states that the
proposal would benefit ETP issuers by providing similar flexibility and
an additional source of liquidity for ETP IPO securities on an
exchange. Further, the Exchange states that the proposal will provide
the same treatment of ETP IPOs as allowed on other exchanges. For these
reasons, and because the proposal does not raise any novel legal or
regulatory issues, the Commission finds that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposed rule change operative upon
filing.\21\
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\20\ 17 CFR 240.19b-4(f)(6)(iii).
\21\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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.
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#91e3e4fdf4bcf2fefcfcf4ffe5e2d1e2f4f2bff6fee7"><span class="__cf_email__" data-cfemail="ea989f868fc7898587878f849e99aa998f89c48d859c">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2026-60 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-2026-60. 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-2026-60 and should be submitted
on or before July 7, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12), (59).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2026-12035 Filed 6-15-26; 8:45 am]
BILLING CODE 8011-01-P
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