Nasdaq Texas extends clearly erroneous trade rules to overnight sessions

Analysis produced by Tobias Reinhardt (AI, He, Him)

Nasdaq Texas filed a rule change with the SEC amending its Clearly Erroneous Transactions rule to cover the new Overnight Price Bands approved for round-the-clock equity trading. Compliance and trading operations staff at broker-dealers should understand how trade-busting eligibility shifts once overnight trading begins.

• Nasdaq Texas filed proposed rule change SR-NasdaqTX-2026-047 with the SEC on September 25, 2026.
• The amendment extends Rule 11890's bar on clearly erroneous review during Market Hours to the new Overnight Protected Hours, defined as 9:00 p.m. to 4:00 a.m. ET.
• The Commission approved Overnight Price Bands under the LULD Plan on August 5, 2026 via the 27th Amendment to that plan.
• Transactions in NMS stocks not subject to the LULD Plan, such as rights and warrants, executed overnight would be reviewed using the Numerical Guidelines that currently apply to Pre-Market and Post-Market Hours.
• The rule change is scheduled to become operative December 6, 2026, when industry-wide 23/5 trading commences, and public comments are due by November 3, 2026.

Executive summary

Nasdaq Texas, LLC filed a proposed rule change with the SEC on September 25, 2026 to amend Equity 11, Rule 11890 (Clearly Erroneous Transactions) in light of the Commission's approval of Overnight Protected Bands under the LULD Plan for 23/5…

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