The International Securities Exchange, LLC (ISE) has filed with the Securities and Exchange Commission a proposal to amend ISE Rule 2102 (Hours of Business) to expand its hours for trading equity securities and ISE Rule 2104 (Types of Orders) to adopt a new order type, “post-closing orders,” for use during part of the expanded hours. Currently, ISE has two equity securities trading sessions, the Pre-Market Session and the Regular Trading Session. The Pre-Market Session ends when the opening transaction occurs, at which time the Regular Market Session commences. The Regular Market Session concludes simultaneously with the primary listing market in such security, which is either 4:00 p.m. or 4:15 p.m. Eastern Time, depending on the security.
As proposed, the Pre-Market Session would begin at 8:00 a.m. Eastern Time instead of 9:00 a.m. Eastern Time. ISE is also proposing a new trading session, the Post-Trading Session, to begin after the conclusion of the Regular-Market Session for any security and to end at 5:00 p.m. Eastern Time.
ISE has also proposed several related rule changes in conjunction with the proposed expansion of equity trading hours. ISE currently requires certain members submitting orders during the Pre-Market Session to disclose certain risks of participating in that session and has proposed that this disclosure requirement be expanded to apply to the Post-Market Session. ISE has also proposed to adopt the rules governing trading halts in the Pre- and Post-Market Sessions.