MEMX Tweaks Rules for Clearly Erroneous Overnight Trades
Published Date: 10/28/2026
Notice
Summary
MEMX is updating its rules about fixing big trading mistakes, called 'Clearly Erroneous Executions,' to match new overnight trading protections approved by regulators. This change affects traders using MEMX and aims to keep markets fair and smooth during extended hours. The update took effect right away on October 19, 2026, with no extra costs for users.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Overnight trades generally won't be broken
If you trade on MEMX during Overnight Protected Hours (9:00 p.m. ET through 4:00 a.m. ET), transactions executed within the applicable LULD Price Bands will generally not be reviewable as "clearly erroneous." This extends the same restriction that applies during Regular Trading Hours to Overnight Protected Hours when the Price Bands were available and correct.
Initial Overnight Price Bands set at ±20%
Overnight Price Bands will initially be temporary static bands 20% above and 20% below two reference points, and they apply during Overnight Protected Hours from 9:00 p.m. ET through 4:00 a.m. ET. The Operating Committee will evaluate performance after implementation and may propose changes to those bands.
Rights and warrants retain review eligibility overnight
If you trade NMS stocks that are not subject to the LULD Plan (for example, rights and warrants) during Overnight Protected Hours, those trades will be eligible for clearly erroneous review and will be evaluated under the same Numerical Guidelines that apply to Pre-Market and Post-Market sessions. The rule extends current out-of-hours review treatment to Overnight Protected Hours.
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