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NYSE Rule 7.19

Allows firms and clearing firms to set optional pre-trade risk limits and allows the NYSE to take action if those limits are exceeded.

Rule Overview

Jurisdiction: United States

Regulator: NYSE

Topic: Risk Management

SEC, Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Rule 7.19 Related to Pre-trade Risk Controls
Overview
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Further Reading

This rule allows firms and their clearing firms to set optional pre-trade credit and risk limits for trading on the Exchange and authorizes the Exchange to act when those limits are exceeded. Specifically, the Exchange added the following optional controls to give firms and their clearing firms additional tools to manage trading risk before orders are executed:

  • A gross credit risk limit.
  • A single order maximum notional value risk limit.
  • A single order maximum quantity risk limit.

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Further Reading

SEC, Order Approving a Proposed Rule Change to Amend its Rules to Add New Rule 7.19 Go to https://www.nyse.com/publicdocs/nyse/markets/nyse/rule-filings/sec-approvals/2020/(SR-NYSE-2020-17)%2034-88776.pdf