NYSE Texas proposes immediate amendment to Rule 7.18 trading halt provisions
The amendment binds securities listed on NYSE Texas and subject to corporate actions, taking effect immediately upon filing on Aug. 14, 2026.
On August 14, 2026, NYSE Texas, Inc. filed a proposed rule change with the Securities and Exchange Commission under Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4. The filing, identified as Release No. 34-106174 and File No. SR-NYSETEX-2026-31, is published in the Federal Register (Vol. 91, No. 164, FR Doc No. 2026-17362) to solicit public comment.
The proposal amends Rule 7.18 to establish specific requirements for halting and resuming trading in securities undergoing certain corporate actions. Under the amendment, a mandatory regulatory halt would be imposed before the start of overnight trading on other venues at 9:00 p.m. Eastern Time, with trading resuming via a Trading Halt Auction at 8:00 a.m. Eastern Time. The rule also aligns the reverse-stock-split auction time from 9:00 a.m. to 8:00 a.m. ET and extends the halt framework, currently limited to reverse stock splits, to additional corporate actions.
NYSE Texas cites the forthcoming 23-hours-a-day, 5-days-a-week ("23/5") trading schedule, which compresses the non-trading window to a single hour between the close at 8:00 p.m. ET and the next open at 9:00 p.m. ET on other markets. The reduced window limits the ability of the Exchange and market participants to process corporate-action updates, raising the risk of pricing errors and market disruption. The proposed halt mechanism mirrors a rule change recently approved for NYSE Arca, which the Commission noted was designed to promote fair and orderly trading.
The Commission has granted the rule change immediate effectiveness upon filing, consistent with the statutory and regulatory framework. Interested parties may submit comments during the notice period, and the full text of the proposal is available on the Exchange's website at www.nyse.com and at its principal office.
The notice directs readers to the Exchange's website and the principal office for the complete filing, and it references related filings for NYSE Arca and prior NYSE Texas amendments to Rule 7.18.
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