2025-07707NoticeWallet

NYSE Texas Gets Green Light for New Traded Product Rules

Published Date: 5/5/2025

Notice

Summary

NYSE Chicago, now NYSE Texas, updated its rules to allow new types of exchange-traded products to be listed and traded, including Exchange-Traded Fund shares. They also cleaned up old, duplicate rules to keep things simple and clear. These changes kick in quickly and help traders and investors enjoy smoother, more flexible trading options.

Analyzed Economic Effects

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

Exchange will list many ETPs including ETFs

The Exchange (formerly NYSE Chicago, now NYSE Texas) will allow listing and trading of a broad set of exchange-traded products (ETPs), and explicitly adds Exchange-Traded Fund Shares to the definition of Derivative Securities Product in Rule 1.1. The change adopts NYSE Arca listing and continued-listing standards (Rules 5 and 8 equivalents) so those ETP types may be listed and traded on the Exchange after the Commission approved the change on April 29, 2025.

Trading halts if NAV not disseminated

The Exchange will add Rule 7.18(c)(2) so that trading in listed ETPs (including Managed Fund Shares and Managed Trust Securities) will be halted if the Net Asset Value (NAV) or a Disclosed Portfolio is not being disseminated to all market participants at the same time. Trading will remain halted until the NAV or Disclosed Portfolio is available to all market participants.

Required firewalls and insider-use rule before listing

The Exchange requires establishment of firewalls around personnel with access to index or portfolio change information for certain ETPs, and it will not list or trade any ETPs until it adopts a rule modeled on NYSE Arca Rule 11.3 to prevent misuse of material non-public information. These requirements appear as Commentary provisions to proposed listing rules and an explicit statement that listing will not commence until the misuse-prevention rule is operative.

Participants and Market Makers face exchange duties

Participants, including Market Makers, will be subject to applicable Exchange equities rules such as maintaining books and records under Article 11, Rule 2, Market Maker registration and obligations under Rule 7 Section 2, and supervisory system requirements under Rule 11.3110. The filing notes these duties and responsibilities apply to Participants in connection with trading listed ETPs.

FINRA and NYSE Regulation surveillance and reviews

Listed ETPs on the Exchange will be subject to the Exchange's existing trading surveillances and to cross-market surveillance administered by FINRA on the Exchange's behalf, and NYSE Regulation will conduct initial and continued listing reviews for ETPs on the Exchange. The Exchange represents these surveillance procedures are intended to detect manipulation and other rule or federal securities law violations.

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Key Dates

Effective Date
Published Date
4/29/2025
5/5/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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