NYSE’s Proposed Midday Auction

SIFMA submits comments to the SEC on a proposal by the New York Stock Exchange. Under the proposal, NYSE would establish a daily “Midday Auction” in a subset of NYSE-listed securities that have a consolidated average daily trading volume of 1,000,000 shares or less and have been designated by the NYSE (the “Midday Auction Stocks”). SIFMA supports efforts to improve the trading quality in lower volume securities. However, we believe that when such efforts deviate significantly from established rules, such initiatives must be addressed by the Commission market wide, rather than via rulemaking that is designed to benefit only one market participant.