On June 19, NYSE Regulation, Inc. (NYSE Regulation) issued Information Memo 09-29 to increase member awareness that certain orders and order entry practices can improperly dislocate the market in a security, raising regulatory concerns. Accordingly, NYSE Regulation is advising members to avoid holding back large interest for entry at or near the close, since otherwise members could face regulatory exposure for affecting the close inappropriately, and to review all firm policies and procedures regarding orders to be executed at or near the close with their order-entry personnel to ensure that such activity does not improperly affect the closing price.
Also on June 19, NYSE Regulation issued Information Memo 09-30 advising members and member organizations that, effective June 22, the Order Imbalance Information datafeed disseminated prior to closing transactions on the New York Stock Exchange, LLC and NYSE Amex LLC (Exchanges) will include, at 3:55 p.m., d-Quotes and all other pegging e-Quotes eligible for execution in the closing transaction. The Exchanges anticipate that including this additional information will provide transparency for customers and allow sufficient time for contra-side interest to develop.
Click here to read Information Memo 09-29.