SEC Extends Review Period for NYSE Proposed Rule Change on Rights Listings (SR-NYSE-2026-05)
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On February 4, 2026, the New York Stock Exchange (NYSE) filed a proposed rule change with the Securities and Exchange Commission (SEC) to amend Section 703.12(II) of the NYSE Listed Company Manual. The amendment would expand the circumstances under which rights — a type of financial instrument giving existing shareholders the option to purchase additional shares — may be listed on the NYSE. The proposed rule change was published in the Federal Register on February 17, 2026, initiating a mandatory 45-day public comment and review window. The standard deadline for SEC action was April 3, 2026. The SEC received no public comment letters on the proposal. Pursuant to Section 19(b)(2) of the Securities Exchange Act of 1934, the SEC is authorized to extend this review period up to 90 days when it determines additional time is needed to adequately consider the rule change and related issues. The Commission has exercised this authority and extended the deadline by approximately 45 additional days. The new final deadline by which the SEC must approve, disapprove, or institute formal proceedings to determine whether to disapprove the NYSE's proposed rule change is May 18, 2026. This notice was signed by Sherry R. Haywood, Assistant Secretary, on behalf of the Division of Trading and Markets.
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Key Changes
- NYSE proposed amendment to Section 703.12(II) of the NYSE Listed Company Manual filed February 4, 2026 to expand listing eligibility for rights instruments
- Original 45-day SEC review deadline of April 3, 2026 has been extended by the Commission
- New SEC action deadline set to May 18, 2026 — approximately 45 additional days beyond the original deadline
+ 3 more changes with Pro
Obligations
What this law requires
SEC must approve, disapprove, or institute formal proceedings to determine whether to disapprove the NYSE's proposed rule change (SR-NYSE-2026-05) by May 18, 2026
NYSE must comply with the extended review deadline of May 18, 2026, for SEC action on the proposed rule change to amend Section 703.12(II) of the NYSE Listed Company Manual
SEC must consider the proposed rule change and related issues regarding the expansion of circumstances under which rights may be listed on the NYSE within the extended review period
NYSE must amend Section 703.12(II) of the NYSE Listed Company Manual if the SEC approves the proposed rule change to expand the circumstances under which rights may be listed