NYSE proposes to double free Late D Order threshold to 10 million shares
Member organizations submitting Late D Orders at the close will receive free execution on the first 10 million shares starting August 11 2026.
The Securities and Exchange Commission published a notice on August 14, 2026 (FR Doc No. 2026-16853; Release No. 34-106138; File No. SR-NYSE-2026-38) that New York Stock Exchange LLC filed a proposed rule change on August 11, 2026. The filing seeks to amend the Exchange's Price List under Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4.
The amendment would increase the share-volume threshold for free Late D Orders at the close from the current 5,250,000 shares to 10,000,000 shares. Member organizations that meet the existing Adding ADV and Tape A CADV requirements would continue to pay $0.0011 per share for Late D Order volume above the threshold, while all other members would pay $0.0012 per share. The Exchange states the fee rates above the threshold would remain unchanged.
In addition, the Exchange proposes a non-substantive, clarifying edit to the "Incremental Discounts on MOC Orders" section of the Price List. The edit adds the phrase "the above tiered rates for" before "MOC Orders in the billing month" to clarify that the discounts refer to the tiered MOC/LOC tiers set forth earlier in the list.
The Exchange argues that raising the free-order threshold will encourage additional liquidity in the Closing Auction, improve price discovery, and provide certainty to members about fee applicability at execution. It cites consistency with Section 6(b) of the Act and asserts that the change equitably allocates fees without discriminating among participants.
The proposed rule change is slated to become effective on August 11, 2026, and the Commission is seeking comments from interested persons during the notice period.