REGULATION

SEC delays NYSE speed bump approval

The exchange is looking for approval to establish a speed bump on NYSE MKT.

By Hayley McDowell hayley.mcdowell@strategic-i.com March 20, 2017 1:20 PM GMT

The New York Stock Exchange’s (NYSE) plans to implement a speed bump on NYSE MKT have been delayed by US authorities.

The Securities and Exchange Commission (SEC) was set to provide a response to the exchange operator’s proposal by 1 April, but has delayed this to 16 May.

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider and take action on the exchange’s proposed rule change,” a regulatory filing said.

NYSE put forward plans to implement a speed bump on NYSE MKT in January this year as the trading venue is rebranded to become ‘NYSE American’.

The exchange will promote midpoint trading by introducing a 350-microsecond delay upon order entry, and for proprietary data and outbound routing.

The rebranded market was described as “a first-of-its-kind exchange that brings the strengths of NYSE’s features, such as electronic DMMs with quoting obligations assigned to each NYSE American listed company.”

NYSE MKT is also set to close its floor trading in the second quarter this year as it transitions onto the ‘Pillar’ technology platform. 

A regulatory filing explained the exchange proposes to close its floor-based trading of cash equities and switch to a fully automated, price-time allocation model.

NYSE MKT offers trading in approximately 250 small-cap companies and was acquired by NYSE Euronext in 2008 for $260 million.