NYSE Arca amends trading halt rules for initial listings and ETP issues

On October 7, 2026 NYSE Arca, Inc. filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106709; File No. SR-NYSEARCA-2026-103). The filing amends Rule 7.18-E, Rule 7.35-E(a)(8)(A) and Rule 7.35-E(f) and is effective immediately upon filing, as noted in the Federal Register notice (FR Doc No: 2026-21739).

The Exchange proposes to amend Rule 7.18-E(b)(1)(B)(i) to state that an Initial Listing Regulatory Halt "does not apply to corporate securities that are subject to an IPO," adding the exceptions "(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." The same amendment clarifies that trading will resume after such a halt "with a Trading Halt Auction," and specifies the mechanism for ETP New Issues.

Rule 7.35-E(a)(8)(A) is revised to redefine the "Auction Reference Price" for Trading Halt Auctions. The current definition relies on the last consolidated trade of at least one round lot or the prior day's official closing price; the amendment addresses securities, such as ETP New Issues, that lack a prior trade or closing price.

Rule 7.35-E(f) is updated to replace the term "ETP IPO Security" with "ETP New Issue" and to substitute the reference to an "Early Open Auction" with a "Trading Halt Auction." The amendment permits an issuer to elect to open trading in the Early Trading Session at 4:00 a.m. ET via a Trading Halt Auction, subject to auction collars and possible five-minute extensions if the Indicative Match Price falls outside the collars.

The Exchange characterizes the revisions as non-substantive clarifications intended to enhance transparency and to support the implementation of its 23/5 Trading schedule, which begins daily trading at 9:00 p.m. ET and requires regulatory halts before an early-session auction can occur.