NYSE Arca, Inc. (the Exchange) has issued a rule proposal to revert back to how it handled order flow during a regulatory halt for a security listed on another primary listing market. Earlier this past June, NYSE Arca Equities Rule 7.11(f) was amended to require the Exchange, upon receiving a trading pause or regulatory halt message for a security from another primary listing market, to reject all orders for the stock until the stock has reopened, to accept and process all cancellations and to take certain other actions. As noted in its rule proposal, the Exchange believes there are times that trading should continue despite another market invoking a regulatory halt. It now proposes to revert back to how it handled order flow prior to the Rule 7.11(f) amendment, which means that it will reject and cancel orders or take other actions under Rule 7.11(f) for a trading pause on another primary listing market, but will not do so for a regulatory halt. Comments to the proposal should be submitted to the Securities and Exchange Commission on or before July 21.

Click here to read Securities and Exchange Commission Release No. 34-62368.