NYSE proposes amendment to Rule 7.10 governing clearly erroneous trades
The change would affect all securities traded on the NYSE and is open for comment after the Oct. 20, 2026 filing
On Oct. 8, 2026, New York Stock Exchange LLC filed a proposed amendment to Rule 7.10, which governs clearly erroneous executions, with the Securities and Exchange Commission. The filing, identified as Release No. 34-106705 and File No. SR-NYSE-2026-50, was published in the Federal Register on Oct. 20, 2026. The amendment would apply to every security listed on the NYSE and is subject to public comment.
The Exchange seeks to reorganize Rule 7.10 into three distinct paragraphs - Definitions, Availability of Clearly Erroneous Review, and Procedures. New definitions would be added for "CEE Reference Price," "LULD Plan," and "Price Bands," among others. The proposal also specifies how missing or erroneous LULD Price Bands affect the availability of clearly erroneous review during the Core Trading Session and Overnight Protected Hours, amends provisions on multi-stock events, removes references to multi-day events, adds a provision on reasonable cross-market coordination, and eliminates redundant language.
Rule 7.10 originated as a pilot after the May 6, 2010 Flash Crash and was extended and revised in 2013, 2014, and 2022, the latter making the rule permanent and aligning it with the LULD Plan. In August 2026 the Commission approved Amendment 27 to the LULD Plan, establishing Overnight Price Bands. The Exchange's current filing extends the clearly erroneous review framework to those overnight protections, reflecting disruptions on Jan. 24, 2023 and June 3, 2024 that highlighted the interaction between LULD bands and erroneous trade determinations.
The Commission is now soliciting comments from interested persons on the proposed rule change. Comments must be submitted in accordance with the procedures outlined in the filing.
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