Stock Markets Get Nighttime Speed Bumps to Tame Wild Swings
Published Date: 8/10/2026
Notice
Summary
Starting soon, stock markets will have new safety rules to keep prices steady during overnight trading, helping prevent wild price swings. This change affects all major U.S. stock exchanges and aims to protect investors by setting temporary price limits when trading happens outside regular hours. These protections will roll out in phases, making overnight trading safer without impacting normal market hours or costs.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Overnight 20% Price Bands
During Overnight Protected Hours (9:00 p.m. ET Sunday through Thursday to 4:00 a.m. ET next day), Primary Listing Exchanges will publish Overnight Price Bands based on two reference prices. The Overnight Lower Price Band will be 20% below the lower of the two reference prices and the Overnight Upper Price Band will be 20% above the higher reference price; minimum band thresholds are $1.00 from the reference price for stocks with a Closing Price under $1.00 and $3.00 for stocks with a Closing Price of $1.00 or more; for leveraged ETPs the 20% parameter and minimum thresholds are multiplied by the leverage ratio.
Regulatory Halts and Order Rejections Overnight
If warranted, the Primary Listing Exchange may declare a Regulatory Halt during Overnight Protected Hours and will notify the Processor; during a Regulatory Halt Participants will reject orders and any NMS Stock subject to a Regulatory Halt will not reopen during Overnight Protected Hours. There will not be automatic Trading Pauses when an Overnight Price Band is hit during Overnight Protected Hours.
Markets Must Publish Bands Before 9pm
Primary Listing Exchanges must calculate and transmit Overnight Price Bands to the Processors no later than 8:55 p.m. ET and the Processors will disseminate those bands to the public prior to 9:00 p.m. ET. All trading centers operating during Overnight Protected Hours must establish, maintain, and enforce written policies and procedures reasonably designed to prevent trades and displayed prices outside the Overnight Price Bands.
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Key Dates
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