NYSE Arca amends Rule 7.10-E to extend LULD protections to overnight trading
The amendment, effective immediately, changes how clearly erroneous trades are reviewed during overnight sessions for all NYSE Arca participants.
On September 14, 2026 NYSE Arca filed a proposed rule change (File No. SR-NYSEARCA-2026-97; Release No. 34-106419) to amend Rule 7.10-E, "Clearly Erroneous Executions." The Commission published the notice on September 18, 2026 and granted the amendment immediate effectiveness, binding all market participants that trade on NYSE Arca.
The amendment responds to the Commission's August 5, 2026 approval of Overnight Protected Bands for 23/5 trading. NYSE Arca seeks to reverse the 23/5-related changes to Rule 7.10-E and to align the clearly erroneous review process with the newly authorized Overnight Price Bands, which are temporary static bands set 20 % above and below two reference points for the Overnight Protected Hours (9:00 p.m. ET through 4:00 a.m. ET).
Key revisions include adding the definition of "LULD Protected Hours" to encompass both the Core Trading Session and the Overnight Protected Hours, and defining "Overnight Price Bands" as the bands applicable during the overnight period. The first sentence of Rule 7.10-E(c)(1) will replace the phrase "Core Trading Session" with "LULD Protected Hours," extending the exemption from clearly erroneous review to trades executed when any LULD band - core or overnight - is in effect. The amendment also updates the reference to the "Percentage Parameter" in Rule 7.10-E(c)(1)(B) to incorporate the overnight parameter, and substitutes "LULD Plan" for the longer description in Rule 7.10-E(c)(1)(A).
The Commission is soliciting comments on the proposal. Interested parties may review the filing on the NYSE Arca website or at the exchange's principal office. The docket for this action is available under SR-NYSEARCA-2026-97.
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