Regulators Approve Extended Trading Hours for Stock Options on NYSE American
New York, Wednesday, 2 September 2026.
The SEC has approved NYSE American’s proposal to extend equity options trading hours, introducing early and late sessions for up to 100 select stocks while prohibiting unpredictable market orders.
SEC Approves NYSE American Extended Hours Proposal
The Securities and Exchange Commission (SEC) has granted accelerated approval to NYSE American LLC for a proposed rule change designed to extend trading hours for specific equity options [1]. This regulatory decision, issued on September 1, 2026, validates Amendment No. 2 to the exchange’s initial filing, which originally commenced on June 5, 2026 [1]. The approval marks a significant shift in market structure, aiming to align U.S. options trading availability with investor demand for extended risk management tools outside standard operating hours [1]. The regulatory process included a review period extension on July 30, 2026, followed by the submission of Amendment No. 2 on August 17, 2026, which superseded all prior versions of the proposal [1]. This timeline underscores the SEC’s focused effort to evaluate the implications of expanded access while maintaining market integrity [1].
New Trading Sessions and Operational Hours
Under the newly approved framework, NYSE American will establish two distinct trading sessions beyond the existing Core Trading Session of 9:30 a.m. to 4:00 p.m. Eastern Time [1]. The Early Trading Session is scheduled to run from 7:30 a.m. to 9:25 a.m. ET, while the Late Trading Session will operate from 4:00 p.m. to 4:15 p.m. ET [1]. When combined, these extended windows provide a total of 130 minutes of additional trading time per day, offering participants increased flexibility to react to market-moving events [1]. It is important to note that these hours are significantly shorter than the 4:00 a.m. to 8:00 p.m. window currently available for underlying equities, reflecting a cautious approach to options liquidity [1]. The Exchange plans to utilize existing infrastructure, including current ports and data feeds, to support these sessions without altering clearing or settlement processes [1].
Eligibility Criteria and Class Limits
Participation in Extended Hours Trading is initially restricted to 100 multiply-listed equity option classes to ensure market stability during the phased introduction [1]. To qualify for this limited cohort, an option class must meet stringent criteria, including an average daily volume of 150,000 contracts and an underlying equity market capitalization of $50 billion [1]. Additionally, the underlying equity must demonstrate an average daily trading volume of 10 million shares [1]. The Exchange will conduct semi-annual reviews of eligible options based on trading statistics from the previous six-month period, with cycles following January 1 and July 1 of each year [1]. If an option no longer meets these eligibility criteria, it may be delisted from Extended Hours Trading within 18 months, allowing for two additional semiannual review cycles to reassess potential eligibility [1].
Risk Management and Industry Context
To mitigate risks associated with lower liquidity and higher volatility, the Exchange has prohibited the submission of market orders during Extended Hours Trading sessions [1]. ATP Holders are mandated to disclose specific material risks to customers, including wider spreads and exaggerated impacts from news announcements, before accepting orders [1]. This move parallels broader industry trends, as competitors like Nasdaq have announced plans for a 23-hour trading system launching December 6, 2026 [2]. While Nasdaq’s initiative aims for near continuous access with only a one-hour daily close, NYSE American’s proposal focuses on targeted extensions for high-volume options [2]. These concurrent developments suggest a structural evolution in U.S. markets toward greater accessibility, though participants must remain vigilant regarding operational readiness and volatility management [2].