The NYSE will today begin offering two new off-hours crossing sessions as part of a pilot program that will allow traders to fill the balance of customer orders that were placed during the NYSE’s regular 9:30 to 4 p.m. trading session. Crossing Sessions III and IV will operate from 4 to 6:30 p.m. and will accommodate “guaranteed price” and “VWAP” orders respectively.

“This was a natural move for the Exchange to offer extended trading sessions for block facilitation guarantees offered by our members to their customers,” said Catherine R. Kinney, NYSE president and co-chief operating officer. “The Exchange continues to be responsive to customers by offering trading products that facilitate execution of a broad range of investment strategies.”

Crossing Session III allows member firms to execute unfilled portions of guaranteed price orders or “upstairs stops,” meaning that the firm guarantees its customer’s order will be executed at a price equal to or better than the agreed-upon, guaranteed price. Trades in Crossing Session III must be at least 10,000 shares and may take place at prices outside of the 9:30 a.m. to 4 p.m. trading range of the subject security.

Crossing Session IV provides a facility through which member firms can execute the unfilled balance of a customer’s order at a price calculated to ensure that the entire order is filled at a price equal to or better than the volume-weighted average price (VWAP). Orders can be designated as VWAP for the full trading day or for a specific period of time on that particular day.

For both Crossing Sessions III and IV, original orders must be at least 10,000 shares with an unfilled balance to be executed of at least 10,000 shares. Orders are submitted via a Web-based, password-protected entry system.

Also beginning today, the NYSE will extend Crossing Session II by one hour to accommodate late-arriving program trades. The NYSE introduced Crossing Sessions I and II in 1991. A brief description of the Exchange’s off-hours trading facility follows.

	Time of Operation	Order Type	Functionality
Crossing Session I	4:15 – 5 p.m.	Single Stocks	Match orders at closing price
Crossing Session II	4 – 6:15 p.m.	Program Trades	Trade baskets of 15 stocks valued at at least $1 million
Crossing Session III	4 – 6:30 p.m.	Guaranteed Price Orders	Execute unfilled guaranteed price orders of at least 10,000 shares
Crossing Session IV	4 – 6:30 p.m.	VWAP Orders	Execute unfilled balance of a VWAP order of at least 10,000 shares

>For more information on NYSE crossing sessions, click on the following links for the associated information memo and brochure.

Click here for info memo.

Click here for brochure.