LTSE proposes immediate amendment to Rule 11.270 for overnight price bands
The amendment, effective upon filing on Oct. 8, 2026, expands clearly erroneous trade review restrictions to overnight protected hours for LTSE-listed securities.
On October 8, 2026, the Long-Term Stock Exchange, Inc. (LTSE) filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106649; File No. SR-LTSE-2026-24; FR Doc No. 2026-21129). The filing, announced in a notice dated October 13, 2026, seeks immediate effectiveness of amendments to Rule 11.270, "Clearly Erroneous Executions," and the Commission is soliciting comments from interested parties.
The proposed amendment is intended to align Rule 11.270 with the Commission's August 5, 2026 approval of Overnight Protected Bands under the Limit Up-Limit Down (LULD) Plan for 23/5 Trading. The Commission's order established temporary static bands 20% above and below two reference points for overnight trading from 9:00 p.m. ET through 4:00 a.m. ET. LTSE argues that extending the LULD-based restrictions on clearly erroneous review to these overnight hours will reduce discordance between the price-band mechanism and the CEE process.
Key changes include adding definitions for "LULD Protected Hours," encompassing both the Regular Market Session and the newly defined "Overnight Protected Hours," and defining "Overnight Price Bands." The text of Rule 11.270(c)(1) would replace "Regular Market Session" with "LULD Protected Hours," thereby extending the non-reviewable status of trades executed within price bands to the overnight period. Paragraph (c)(1)(B) would be revised to incorporate the "Overnight Percentage Parameter" from the LULD Plan, and language in (c)(1)(A) would be streamlined to reference the "LULD Plan."
The exchange also proposes to modify Rule 11.270(c)(2), (d)(3) and (f) by replacing references to "eligible for review pursuant to paragraph (c)(1)(A)" with language covering transactions in NMS stocks not subject to the LULD Plan during Overnight Protected Hours. These edits are described as non-substantive and would be applied consistently throughout the rule.
The Commission's notice invites comments on the proposed changes, which, if adopted, will affect all market participants trading LTSE-listed securities during both regular and overnight protected trading sessions.
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