The SEC has granted the NYSE /NYSE Amex relief under Reg SHO to use a reference price other than the current national best bid for short sale orders executed in single-price auction transactions when the short sale restriction is in effect. Short sale orders will be filed as follows for single-price auction transactions:
- Opening – one minimum price increment above the national best bid at 9:30 am. (Where there is no national best bid at 9:30 am, short sale limit orders for the opening will be filed at their limit prices). Filing prices will be disseminated on both the NYSE and NYSE Amex Imbalances feed. See link for detailed: NYSE Order Imbalances Client specification
- Re-opening following a trading halt or a volatility trading pause – one minimum price increment above the last published Exchange bid prior to halt or pause.
- Closing -- one minimum price increment above the last Exchange bid prior to the Closing Auction.
Please see the following link for additional details:
NYSE Request for Exemptive Relief and the SEC Letter granting the exemption
Category: Operations
