2026-10837NoticeWallet

NYSE Tweak Aligns Penalties With FINRA Rules

Published Date: 6/1/2026

Notice

Summary

NYSE National is updating its disciplinary rules to match recent changes made by FINRA, making the process smoother and clearer for everyone involved. These changes mainly affect ETP Holders (those who trade on the exchange) by pausing certain penalties automatically so the SEC can review them. The new rules take effect immediately, but they don’t change any fees or costs right now.

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Expulsions Paused for SEC Review

If the Exchange orders an expulsion, a membership cancellation, or denies continued membership for a disqualified ETP Holder, that action will not become effective until the time for filing an application for SEC review has expired or, if a timely application is filed, until the SEC completes its Section 19 review or otherwise orders. The rule references the 30-day filing period for an application for SEC review under the Exchange Act and applies to actions such as expulsions under Rule 10.8320 and related decisions in expedited, disciplinary, and eligibility proceedings.

Right to Seek Stay Before Other Sanctions

Exchange staff and adjudicators may give respondents and applicants an opportunity to seek a stay from the SEC or take other appropriate action before certain sanctions or regulatory measures (other than the expulsions/cancellations described above) take effect. This authority covers actions such as suspensions, bars, denials of statutory disqualification applications, and cease and desist orders under the Exchange's Rule 10.9000 Series.

Five-Business-Day Delay for Suspensions

For notices under Rule 10.9557, if an ETP Holder fails to comply with requirements or restrictions, Exchange staff will issue a notice of suspension that becomes effective five business days after service of that notice. The notice must identify the alleged failures, state when the suspension will take effect, and explain what the respondent must do to avoid the action.

Stay Opportunity for Cease-and-Desist Orders

Adjudicators may allow applicants an opportunity to seek a stay from the SEC or take other appropriate action before temporary or permanent cease and desist orders under the Rule 10.9800 Series take effect. The Exchange amended Rules 10.9840, 10.9850, and 10.9870 so that those orders need not be immediately effective if otherwise specified by the adjudicator.

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Key Dates

Effective Date
Published Date
5/19/2026
6/1/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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