SRO Monitor Digest

NYSE American and NYSE National each amended their rules to allow trading of tokenized equity securities on their exchanges, closely mirroring rules Nasdaq received SEC approval for in March 2026. Both operate within a DTC three-year pilot program backed by a December 2025 SEC no-action letter, keeping tokenized and traditional shares on the same order book with identical priority rules, fees, and protections. NYSE American's filing specifies Russell 1000 stocks and major-index ETFs, while both filings took effect immediately upon filing (subject to a 60-day SEC suspension window) and won't change anything in practice until DTC's infrastructure goes live.

NYSE American (Rule 7.37E), NYSE Arca (Rule 7.37-E), and NYSE Texas (Rule 7.37) each amended their order handling rules to designate the SIP data feed as their primary data source for handling, executing, and routing orders to Texas Stock Exchange (TXSE) ahead of its expected July 2026 launch. NYSE American's filing also corrects an error in Rule 7.37E(d). All are routine housekeeping updates effective immediately upon filing with no practical change today, signaling the industry is operationally preparing for TXSE's entry.

IEX is upgrading its Crumbling Quote Indicator (CQI) — the algorithm that detects when the best bid or offer is about to move against a resting order — by adding IEX's own quotes to the reference data used in the calculation, alongside the existing 11 Signal Exchanges. This is an incremental technical improvement: IEX's quote presence has grown significantly (now in the top 3 exchanges by NBBO presence), so excluding IEX's own quotes from the CQI inputs was leaving some predictable adverse-selection events undetected. The filing took effect immediately under the SEC's non-controversial fast-track process, meaning the change is already in force (subject to a 10-day advance Trading Alert before implementation) without needing SEC approval — boosting CQI coverage from 70.1% to 75.0% while maintaining accuracy, which means better adverse-selection protection for D-Limit, D-Peg, P-Peg, and C-Peg order users.