2026-11804NoticeWallet

NYSE Texas Adopts Standard Best-Execution Rule

Published Date: 6/12/2026

Notice

Summary

NYSE Texas just rolled out a new rule called 11.5310 to make sure brokers and firms always get the best prices when handling customer orders. This change helps protect customers by aiming for faster, smarter trades at the best market prices. The rule is effective immediately, so everyone involved in trading on NYSE Texas should get ready to follow it right away.

Analyzed Economic Effects

5 provisions identified: 4 benefits, 1 costs, 0 mixed.

Brokers Must Seek Best Market

If you are a securities customer whose order is handled on NYSE Texas, brokers and firms must use "reasonable diligence" to find the best market and get you the most favorable price under prevailing market conditions. The rule lists five factors to consider (market character, transaction size/type, number of markets checked, quote accessibility, and order terms). The rule was filed May 29, 2026 and is effective immediately.

No Hidden Third-Party Routing

The rule bars brokers from inserting a third party between the customer and the best market in ways that conflict with the best execution duty. When a retail firm must use a broker's broker or another third party to get a better execution, the retail firm bears the burden of showing that using the third party was acceptable (for example, a crossing order or protection of a firm's identity).

Customer-Directed Routes Limit Duty

If you give an unsolicited instruction to route your order to a specific market, the broker is not required to look beyond that instruction to seek best execution, though the broker must still process your order promptly and per the order terms. If you direct your order to another broker-dealer that is also a participant, that receiving broker-dealer must meet the rule's requirements when handling the order.

Broad Definition of 'Market' for Orders

The rule's supplementary material defines "market" broadly to include many types of venues (including exchange and non-exchange venues) so brokers must consider a wide set of trading venues when determining best execution. This clarification is meant to inform broker-dealers of the range of venues they should consider.

Rule Harmonization Lowers Compliance Complexity

The Exchange states the new Rule 11.5310 is substantially similar to Nasdaq PHLX and NYSE rules and is intended to harmonize best execution standards across self-regulatory organizations. The Exchange says this will reduce burdens on Participants, Participant Firms, and Associated Persons who must follow multiple venues' rules.

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Key Dates

Effective Date
Published Date
5/29/2026
6/12/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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