Co-authored by Natalya S. Zelensky

On September 20, NYSE Arca, Inc. issued a proposal to amend NYSE Arca Equities Rule 7.23 to adopt pricing obligations for Market Makers. Under the proposal, NYSE Arca will require Market Makers to continuously maintain two-sided Q Order trading interest within a Designated Percentage from the National Best Bid and Offer (NBBO) for each security in which they are registered. These pricing obligations are intended to eliminate trade executions against Market Maker placeholder Q Orders traditionally priced far away from the inside market. Permissible Q Orders will be determined by, among other things, the time of day in which a Q Order is entered and the individual character of the security.

Click here to read Release No. 34-62946.