The Securities and Exchange Commission has approved amendments to NYSE Rule 92, which generally prohibits NYSE members from trading on a proprietary basis ahead of or along with customer orders executable at the same price. The amendments create an exception tothis prohibition, modeled after the NASD’s so-called “Manning Rule,” which permits members to trade ahead of a customer under certain circumstances for the purpose of facilitating the execution, on a riskless principal basis, of one or more other customer orders.

The amendments also eliminate the requirement to obtain order-by-order consent for permissible trades along with a customer’s order, instead permitting blanket consent with appropriate disclosure. Finally, the amendments create an exemption from Rule 92 that allows members facilitating a customer order to route intermarket sweep orders (which might otherwise violate Rule 92 by trading ahead of or along with open customer orders) consistent with their Regulation NMS obligations without violating Rule 92, if certain conditions are met.