Overview
Quarterly changes to S&P Indices will take effect prior to the open of trading on Monday, December 21, 2020; details of the changes can found here. Due to these changes and quarterly options expiration, NYSE anticipates elevated trading activity on Friday, December 18, 2020, particularly near the end of the trading day and in the NYSE Closing Auction.
Normal Closing Auction rules and procedures will apply on December 18th. While we are confident in our capacity planning and software management process, we would like to remind participants of various system interruption contingencies.
Communications
NYSE will disseminate event updates to inform market participants of unusual market conditions via the web at www.nyse.com/market status/history and via RSS and email notifications using NYSE System Status, all of which are a part of our regular communication methods for alerting our customers to important news. To subscribe or update your preferences for NYSE Market Status Notices, visit www.nyse.com/subscriptions. NYSE, NYSE American, NYSE Arca, Cboe and Nasdaq will hold a market-wide call to provide the industry with information, beginning at 3:30 p.m., ET. To ensure that you are not delayed in the conference call queue as a result of the high call volume, please call in at least ten minutes early.
Contingency Procedures
If the NYSE experiences a system disruption that would impact its ability to conduct a closing auction, it will implement one of the following three
contingency scenarios:
If the NYSE experiences a system disruption that would impact its ability to conduct a closing auction, it will implement one of the following three contingency scenarios:
System Interruption Contingency Scenario 1
If after exhausting all possible recovery options, the NYSE determines at or before 3:00 p.m. Eastern Time that it is unable to conduct a closing transaction in one or more securities, the NYSE will designate NYSE Arca as the alternate exchange and the NYSE’s Official Closing Price in the affected securities will be the official closing price under the rules of NYSE Arca. In such an event, all closing interest on the NYSE in the affected securities will be deemed cancelled and member organizations will be encouraged to re route their closing interest for participation in the NYSE Arca closing process.
System Interruption Contingency Scenario 2
In the event of an NYSE system interruption that occurs after 3:00 p.m. Eastern Time whereby service will be restored after the 4:00 p.m. close time, the NYSE will extend when it conducts the closing process to a time later than the usual 4:00 p.m. close time. The NYSE will notify market participants of the new close time and any changes to the cutoff times for submitting closing interest. The new time will be communicated to market participants via the market-wide call and a system status posting.
System Interruption Contingency Scenario 3
In the event of an NYSE system interruption that occurs after 3:00 p.m. Eastern Time whereby service will not be restored, the NYSE’s Official Closing Price will be the VWAP of the last consolidated sale prices for the last five minutes of trading for each affected NYSE listed security. The NYSE will notify market participants via the market-wide call and a system status posting that the closing process will not occur and that all closing interest on the NYSE in the affected securities will be deemed cancelled. Operational questions about this memo should be directed to your relationship manager or rmteam@nyse.com.
