Effective March 24, 2008, the NYSE has amended Rule 15 to:
1) Utilize the previous day’s closing price on the NYSE in arranging opening transactions instead of the consolidated close;
2) Utilize the relevant price of the underlying security traded on its primary foreign market when arranging opening transactions for ADRs; and
3) Revise the price change parameters.
1) Utilize the previous day’s closing price on the NYSE in arranging opening transactions instead of the consolidated close;
2) Utilize the relevant price of the underlying security traded on its primary foreign market when arranging opening transactions for ADRs; and
3) Revise the price change parameters.
The amendment to Rule 15 uses five separate price groupings and related price change parameters to distinguish the trading characteristics of the different priced securities:
| Exchange Closing Price | Applicable Price Change (More Than) |
|---|---|
| Under $20.00 | $ .50 |
| $20.00 - $49.99 | $ 1.00 |
| $50.00 - $99.99 | $ 2.00 |
| $100 - $500 | $ 5.00 |
| Above $500 | 1.5% |
The amendment to Rule 15 further creates a different procedure for pre-opening indications of ADRs. Where the trading day in the primary foreign market of the security underlying the ADR concludes after trading on the NYSE for the previous day has ended, but does not resume prior to the opening of the ADR on the NYSE, indications will be issued based on the change in parity between the closing price of the primary foreign market and the anticipated opening price of the ADR. Similarly, in instances where the security underlying the ADR is still trading on its primary foreign market at the time the specialist is arranging the opening of such ADR on the NYSE, pre-opening indications will be based on the change in parity between the anticipated opening price of the ADR and the last sale price of the underlying security on the primary foreign market.
NYSE Regulation Information Memo Rule Filing SR-NYSE-2008-16
Category: Operations
