Notice2026-19038
Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend Rule 7.18E Regarding Initial Listing Regulatory Halts
Primary source
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Published
September 17, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 179 (Thursday, September 17, 2026)</title>
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[Federal Register Volume 91, Number 179 (Thursday, September 17, 2026)]
[Notices]
[Pages 58931-58933]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19038]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106347; File No. SR-NYSEAMER-2026-81]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend Rule
7.18E Regarding Initial Listing Regulatory Halts
September 14, 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 September 2, 2026, NYSE American LLC (``NYSE American'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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 Rule 7.18E (``Trading Halts'')
regarding Initial Listing Regulatory Halts. 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 American LLC (``NYSE American'' or the ``Exchange'') proposes
to amend Rule 7.18E (``Trading Halts'') regarding Initial Listing
Regulatory Halts.
Background
Rule 7.18E(b)(1)(B) lists the types of discretionary regulatory
halts the Exchange may declare, including, at subparagraph (i), an
``Initial Listing Regulatory Halt.''
The Initial Listing Regulatory Halt was first adopted in 2018 as
NYSE Rule 123D(d) on the Exchange's affiliate exchange, the New York
Stock Exchange LLC (``NYSE'').\4\ The text of that rule
[[Page 58932]]
stated, in pertinent part, that the Exchange ``may declare a regulatory
halt in a security that is the subject of an initial pricing on the
Exchange of a security that has not been listed on a national
securities exchange . . . immediately prior to the initial pricing.''
\5\ NYSE's Rule 19b-4 filing in support of the rule specified that the
purpose of the rule change was to ``provide authority to declare a
regulatory halt for a new listing that is not the subject of an IPO.''
\6\ In its order granting approval of the rule, the Commission noted
that the rule ``should facilitate the initial opening . . . of certain
securities not listed in connection with an underwritten IPO . . . .''
\7\
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\4\ See Securities Exchange Act Release No. 82627 (February 2,
2028), 83 FR 5650 (February 8, 2018) (SR-NYSE-2017-30) (Notice of
Filing of Amendment No. 3 and Order Granting Accelerated Approval of
Proposed Rule Change as Modified by Amendment No. 3).
\5\ See NYSE Rule 123D(d) (SR-NYSE-2017-30 version).
\6\ See NYSE Form 19b-4 in support of SR-NYSE-2017-30, available
at <a href="https://www.nyse.com/publicdocs/nyse/markets/nyse/rule-filings/filings/2017/NYSE-2017-30,%20a.m.%203.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse/rule-filings/filings/2017/NYSE-2017-30,%20a.m.%203.pdf</a> (``Proposed Rule 123D(d)
would provide authority for the Exchange to declare a regulatory
halt for a security that is having its initial listing on the
Exchange, is not an IPO, and has not been listed on a national
securities exchange . . . prior to the initial pricing.'').
\7\ See supra note 4, 83 FR at 5655.
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The Exchange adopted the Initial Listing Regulatory Halt as Rule
7.18E(e) in 2022,\8\ based on the text of NYSE Rule 123D(d). In August
2026, the Exchange's Rule 7.18E (``Trading Halts'') was reorganized and
the Initial Listing Regulatory Halt was moved to Rule 7.18E(b)(1)(B)(1)
[sic], which currently defines it as ``of a security that is the
subject of an initial pricing on the Exchange that has not been listed
on a national securities exchange immediately prior to initial
pricing.'' \9\
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\8\ See Securities Exchange Act Release No. 95945 (September 29,
2022), 87 FR 60428 (October 5, 2022) (SR-NYSEAMER-2022-44).
\9\ See Securities Exchange Act Release No. 102810 (April 10,
2025), 90 FR 16041 (April 16, 2025) (SR-NYSEAMER-2025-19), and
further amended by Securities Exchange Act Release No. 105182 (April
8, 2026), 91 FR 18902 (April 13, 2026) (SR-NYSEAMER-2026-27).
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Proposed Change to Rule 7.18E(b)(1)(B)(i)
The Exchange proposes to amend the text of Rule 7.18E(b)(1)(B)(i)
to explicitly specify that the Initial Listing Regulatory Halt does not
apply to securities that are subject to an IPO. The Exchange believes
that the transparency and clarity of the rule would be enhanced by
specifying that the Exchange may declare an Initial Listing Regulatory
Halt if a security is the subject of an initial pricing on the
Exchange, ``except for (a) IPOs in equity securities that are not
derivative security products, or (b) securities that are listed on a
national securities exchange immediately prior to initial pricing.''
Because both these exceptions are covered by the existing rule text,
the proposed change is not substantive, but rather clarifying in
nature.
Proposed Change to Rule 7.18E(b)(5)(B)(iv)
Rule 7.18E(b)(5)(B)(iv) describes how the Exchange will resume
trading after an Initial Listing Regulatory Halt. The current rule text
provides that the Exchange ``will terminate an Initial Listing
Regulatory Halt when the security is open for trading.'' While that
language is correct, it does not specify the mechanism by which the
security will reopen. In fact, trading after an Initial Listing
Regulatory Halt reopens with a Trading Halt Auction,\10\ which is the
default described in Rule 7.18E(b)(5)(B).\11\ The Exchange proposes to
amend the rule text to specify explicitly that the Exchange will resume
trading in a security after an Initial Listing Regulatory Halt ``with a
Trading Halt Auction.''
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\10\ The term ``Trading Halt Auction'' is defined in Rule
7.35E(e).
\11\ Rule 7.18E(b)(5)(B) provides: ``The Exchange will resume
trading after a Regulatory Halt other than a SIP Halt with a Trading
Halt Auction pursuant to Rule 7.35E, except as provided below . . .
.''
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2. Statutory Basis
The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\12\ Specifically, the
proposal is consistent with Section 6(b)(5) of the Act \13\ because it
would promote just and equitable principles of trade, 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.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposed rule change would protect
investors and the public interest and perfect the mechanism of a free
and open market and a national market system by adding transparency and
specificity to the rule. The existing text and history of the rule are
clear that an Initial Listing Regulatory Halt will not be used in the
case of an IPO of a corporate security, but the Exchange believes that
stating that exception explicitly in the rule text will enhance the
transparency of the rule and benefit the public interest. Similarly,
the current rule text does not specify the mechanism for reopening
trading after an Initial Listing Regulatory Halt, and the Exchange
believes that explicitly stating that trading resumes with a Trading
Halt Auction will enhance the transparency of the rule. These proposed
changes are not substantive in nature, but rather add further
specificity and transparency to the existing rule text.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange believes the proposal is consistent with Section
6(b)(8) of the Act \14\ in that it does not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act as explained below. Rather than impacting
competition, the proposed changes are non-substantive and would enhance
the specificity and transparency of the rule.
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\14\ 15 U.S.C. 78f(b)(8).
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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
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 after 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 \15\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A)(iii).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of 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 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
[[Page 58933]]
under Section 19(b)(2)(B) \17\ of the Act to determine whether the
proposed rule change should be approved or disapproved.
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\17\ 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#b5c7c0d9d098d6dad8d8d0dbc1c6f5c6d0d69bd2dac3"><span class="__cf_email__" data-cfemail="f183849d94dc929e9c9c949f8582b1829492df969e87">[email protected]</span></a>. Please include
file number SR-NYSEAMER-2026-81 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-NYSEAMER-2026-81. 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-NYSEAMER-2026-81 and should be submitted
on or before October 8, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-19038 Filed 9-16-26; 8:45 am]
BILLING CODE 8011-01-P
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