The NYSE has filed with the Securities and Exchange Commission for immediate effectiveness a new rule that will authorize the NYSE to suspend certain rule requirements relating to the opening of securities in the event of extreme market volatility or market-wide price dislocation. Extreme volatility impacts NYSE’s pre-opening rule requirements, which over the past few months has led to undue delays in NYSE openings. The new rule will permit a qualified NYSE officer to declare an extreme market volatility condition, which will suspend certain pre-opening rules. The new rule is intended to ensure timely, fair and orderly opening of securities.

A variety of factors need to be met in order for the rule to be invoked, including, but not limited to, the following: 

  • Volatility during the previous day’s trading session; 
  • Substantial activity in the futures market before the opening of the NYSE; 
  • The volume of pre-opening indications of interest; 
  • Evidence of significant pre-opening order imbalances across the market; and 
  • News and corporate events.$FILE/Microsoft%20Word%20-%20Document%20in%2007-110.pdf