Notice2026-19630
Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7.18
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
September 25, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 185 (Friday, September 25, 2026)</title>
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[Federal Register Volume 91, Number 185 (Friday, September 25, 2026)]
[Notices]
[Pages 60996-60998]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19630]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106466; File No. SR-NYSE-2026-45]
Self-Regulatory Organizations; New York Stock Exchange LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 7.18
September 22, 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 11, 2026, New York Stock Exchange LLC (``NYSE'' 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 7.18 (``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,
[[Page 60997]]
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
New York Stock Exchange LLC (``NYSE'' or the ``Exchange'') proposes
to amend Rule 7.18 (``Trading Halts'') regarding Initial Listing
Regulatory Halts.
Background
Rule 7.18(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
Rule 123D(d).\4\ The text of that rule 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\ The Exchange'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,%20Am.%203.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse/rule-filings/filings/2017/NYSE-2017-30,%20Am.%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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In August 2026, the Exchange's Rule 7.18 (``Trading Halts'') was
reorganized and the Initial Listing Regulatory Halt was moved from Rule
123D(d) to Rule 7.18(b)(1)(B)(i), 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.'' \8\
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\8\ See Securities Exchange Act Release No. 103356 (June 30,
2025), 90 FR 29600 (July 3, 2025) (SR-NYSE-2025-21).
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Proposed Change to Rule 7.18(b)(1)(B)(i)
The Exchange proposes to amend the text of Rule 7.18(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 7.18(b)(5)(B)(v)
Rule 7.18(b)(5)(B)(v) describes how the Exchange will resume
trading after an Initial Listing Regulatory Halt. The current rule text
provides that the Exchange ``will resume trading after an Initial
Listing Regulatory Halt when the DMM opens the security.'' While that
language is correct, it does not specify the mechanism by which the
security will reopen. In fact, after an Initial Listing Regulatory
Halt, the DMM reopens trading in the security with a Trading Halt
Auction,\9\ which is the default described in Rule 7.18(b)(5)(B).\10\
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 when the DMM opens the security ``with a Trading Halt
Auction.''
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\9\ The term ``Trading Halt Auction'' is defined in Rule
7.35(e).
\10\ Rule 7.18(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 7.35, 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.\11\ Specifically, the
proposal is consistent with Section 6(b)(5) of the Act \12\ 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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\11\ 15 U.S.C. 78f(b).
\12\ 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 that the DMM will
use for reopening trading after an Initial Listing Regulatory Halt, and
the Exchange believes that explicitly stating that trading will resume
with a Trading Halt Auction will enhance the transparency of the rule.
The 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 \13\ 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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\13\ 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
[[Page 60998]]
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 \14\ and subparagraph
(f)(6) of Rule 19b-4 thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 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 under
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\16\ 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#a1d3d4cdc48cc2ceccccc4cfd5d2e1d2c4c28fc6ced7"><span class="__cf_email__" data-cfemail="2250574e470f414d4f4f474c5651625147410c454d54">[email protected]</span></a>. Please include
file number SR-NYSE-2026-45 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-NYSE-2026-45. 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-NYSE-2026-45 and should be submitted on
or before October 16, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-19630 Filed 9-24-26; 8:45 am]
BILLING CODE 8011-01-P
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