19 Mar 2025
📈Proposed Rule Change for Selective Midpoint Order by NYSE Arca
Self-Regulatory Organizations; NYSE Arca, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Amend Rule 7.31-E To Adopt the Selective Midpoint Order
Summary
The Securities and Exchange Commission is reviewing a proposed rule change by NYSE Arca to implement the Selective Midpoint Order (SeMi), which will replace the Discretionary Pegged Order. This new order type aims to enhance market liquidity and prevent trades during unstable conditions, utilizing a machine learning model for market stability predictions.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The proposed rule change to adopt the Selective Midpoint Order (SeMi) introduces a new non-displayed order type that impacts trading strategies and market liquidity. It may raise compliance requirements for market participants, necessitating adjustments in trading algorithms and oversight of market conditions during execution, thus affecting operational costs and profitability.