2026-19515NoticeWallet

Texas Exchange Ropes in Order Halt Rules

Published Date: 9/24/2026

Notice

Summary

The Texas Stock Exchange is updating how it handles orders during trading pauses and special auctions like IPOs and volatility closings. These changes affect traders by adjusting which orders count, what info is shared, and how auction prices are picked. The new rules kicked in right after filing on September 15, 2026, aiming to make trading smoother and fairer without extra costs.

Analyzed Economic Effects

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

Market Orders Largely Excluded from Halt Auctions

Only limit orders (not market orders) may be entered during the Quote-Only Period for a Halt Auction. The rule makes a limited exception for MOO (Market-on-Open) orders that were queued prior to 9:28 a.m. ET before Regular Trading Hours if a Pre-Market Session halt continues into the open. This change was proposed in the filing made September 15, 2026.

Auction Data Changed: Collars and Collar Interest Displayed

During a Halt Auction the Exchange will disseminate the Halt Auction Collars and, starting with the Quote-Only Period and every five seconds thereafter, the Lower Collar Auction Interest and Upper Collar Auction Interest. The Exchange will stop publishing the Reference Price, Indicative Price, Auction Only Price, Halt Auction Reference Price, and the lesser of Reference Buy Shares and Reference Sell Shares for Halt Auctions. The same change applies to Volatility Closing Auctions.

New Auction Price Tie-Break Step Added

For IPO, Halt, and Volatility Closing Auctions, after maximizing executable volume and minimizing total imbalance, the Exchange will next select the entered price at which shares would remain unexecuted; if more than one such price exists, it will pick the price closest to the issuing price for an IPO or to the Final Last Sale Eligible Trade for a Halt Auction. This aligns the process with the Exchange's Opening and Closing Auctions.

Pegged and Hidden Orders Stay on the Book During Halts

If a regulatory halt happens, orders with a Peg instruction (e.g., Midpoint Peg, Market Peg, Primary Peg, Offset Peg) and Non-Displayed Limit Orders will not be cancelled. Instead they will remain on the Texas Stock Exchange (the "TXSE Book") in an unexecutable state during the halt; pegged orders will peg to the NBBO only after the Halt Auction when the NBBO is available. Users may still cancel these orders at any time during the halt. This change was filed on September 15, 2026.

Quote-Only Extensions No Longer Triggered by Market Orders

The Exchange removed unmatched market orders as a condition that would extend the Quote-Only Period for a Halt Auction, and it replaced the term "Indicative Price" with wording that refers to "the price at which the Halt Auction would occur." The rule keeps the extension when the auction price would occur outside the applicable collars. These changes were part of the proposal filed September 15, 2026.

Volatility Closing Auction Rules Apply More Broadly

The Exchange removed language limiting Volatility Closing Auction provisions to halts initiated under a specific rule, so the Volatility Closing Auction process will apply whenever a security is halted during the specified period before the close or when a Halt Auction Quote-Only Period would otherwise extend beyond the applicable cutoff. The Exchange says this creates a consistent closing process.

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Key Dates

Effective Date
Published Date
9/15/2026
9/24/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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