NYSE clarifies initial listing halt rules with immediate effect
The amendment to NYSE Rule 7.18, effective September 11, 2026, applies to securities undergoing initial pricing that are not IPOs.
On September 11, 2026, New York Stock Exchange LLC filed a proposed rule change to amend Rule 7.18, which governs trading halts. The Securities and Exchange Commission published a notice of filing on September 22, 2026 and, because the change does not significantly affect investor protection or competition, it became effective immediately under Section 19(b)(3)(A)(iii) of the Securities Exchange Act.
The amendment to Rule 7.18(b)(1)(B)(i) adds an explicit exception stating that an Initial Listing Regulatory Halt does not apply to (a) IPOs in equity securities that are not derivative products, or (b) securities listed on a national securities exchange immediately prior to initial pricing. The Exchange characterizes the change as clarifying rather than substantive.
The amendment to Rule 7.18(b)(5)(B)(v) specifies that trading will resume after an Initial Listing Regulatory Halt when the designated market maker opens the security "with a Trading Halt Auction," aligning the text with the mechanism already described in Rule 7.18(b)(5)(B).
The Exchange asserts that the proposal is consistent with Section 6(b) of the Act, imposes no unnecessary burden on competition, and serves the public interest by enhancing transparency. No written comments were received on the proposal.
The Commission may, within 60 days of the filing, temporarily suspend the rule change if deemed necessary in the public interest, but absent such action the amendment remains in force.
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