NYSE expands Closing Imbalance definition and adjusts order freeze rules

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4, the New York Stock Exchange LLC filed a proposed rule change on July 31, 2026 (Release No. 34-106126; File No. SR-NYSE-2026-36). The filing, announced in the Federal Register on August 13, 2026 (Vol. 91, No. 158, pp. 53465-53468, FR Doc No. 2026-16783), states that the amendment is effective immediately.

The amendment revises the definition of "Closing Imbalance" in Rule 7.35(a)(4)(A)(ii) to include Closing Imbalance Offset Orders (Closing IO Orders) and, beginning 10 minutes before the scheduled end of Core Trading Hours, Closing D Orders, in addition to the existing Market-on-Close and Limit-on-Close orders.

Rule 7.35B(f)(3) is also changed. A request to enter a Closing D Order or D Order in an Auction-Eligible Security will be rejected beginning 10 seconds before the scheduled close of trading, while a request to cancel, cancel-and-replace, or modify such orders will be rejected beginning one minute before the scheduled close, extending the prior 10-second cancellation window.

The Exchange explains that the expanded imbalance calculation provides market participants with a more comprehensive view of unpaired auction-eligible interest, and the revised cancellation timing is intended to promote stability in the Closing Imbalance calculation.

The Commission is publishing this notice to solicit comments from interested persons; the proposed rule change is available on the Exchange's website at www.nyse.com and at its principal office.