NYSE Trading Floor Re-Opens and Adds Proposed DMM Rule Changes
May 27th | 2020
The New York Stock Exchange (“NYSE”) re-opened floor trading on May 27, 2020 following a two month closure. At the same time that NYSE floor trading facilities re-opened, NYSE filed a proposed rule change that would add Commentary .05 to Rule 7.35A related to a temporary period beginning May 26, 2020 and ending on the earlier of a full reopening of the Trading Floor facilities to Designated Market Makers (“DMM”) or after the Exchange closes on June 30, 2020. The change is intended to contemplate the effect of Rule 7.35A(c)(1)(E), which states that a DMM may not effect a Trading Halt Auction electronically if it is reopening following a regulatory halt issued under Section 2 of the Listed Company Manual.
Commentary .05 to Rule 7.35A provides that:
For a temporary period that begins May 26, 2020, and ends on the earlier of a full
reopening of the Trading Floor facilities to DMMs or after the Exchange closes on June
30, 2020, the Exchange would (1) permit a DMM limited entry to the Trading Floor or
(2) provide a DMM remote access to Floor-based systems, for the purpose of effecting a
manual Trading Halt Auction for reopening a security following a regulatory halt issued
under Section 2 of the Listed Company Manual.
The Exchange believes that providing DMMs with the ability to conduct such Trading Halt Auctions manually would promote fair and orderly reopening auctions following a regulatory halt because it would allow such reopenings to be facilitated at a price that is consistent with the buy and sell interest for such securities.