NYSE Arca Files Plan for 23/5 Overnight Trading

NYSE Arca proposed a rule change that adds a new Overnight Trading Session and revises the hours of its existing Early and Late sessions.

The proposed rule change amends NYSE Arca's temporary Rule 7.34-E(T) to introduce the Overnight Trading Session, redefines the Early and Late Trading Sessions and makes conforming changes to its order-handling, clearly-erroneous and pre-trade-risk rules. 

Under the proposal, the Overnight Trading Session would begin at 9:00 p.m. ET Sunday through Thursday and run until the start of the next Early Trading Session at 4:00 a.m. ET. NYSE Arca's systems would pause from 8:00 p.m. to 9:00 p.m. Monday through Thursday for end-of-day functions and a technical refresh, and the exchange would begin accepting orders for all of that trading day's sessions at 8:59 p.m. (one minute before the Overnight Session opens, rather than the 30 minutes before currently provided). The Overnight Session would begin with continuous trading, not an opening auction, following the model used by affiliate NYSE National. The Late Trading Session would end at 8:00 p.m. ET. When a weekday holiday falls between Monday and Friday, the exchange would close at the end of the Late Session the evening before and reopen at 9:00 p.m. on the evening of the holiday.

The Exchange said that 23/5 operations cannot begin until the Equity Data Plans confirm they can collect, consolidate and disseminate quotation and transaction information across the extended hours, after which the exchange will make a further filing. The exchange said its projected launch date is December 6, 2026.

The SEC published the proposal in the Federal Register. Comments are due to the SEC by June 17.