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NYSE deletes 'approved person' registration category, adopts FINRA-style definition

NYSE deletes 'approved person' registration category, adopts FINRA-style definition

Rule Changes

NYSE's filing ends a registration category from the seat-holder era and moves toward FINRA's definitions

October 1st, 2026: SEC posts notice of NYSE rule change

Overview

Updated Oct 30

The New York Stock Exchange (NYSE) filed on September 18 to delete its 'approved person' registration category, a holdover from when membership meant owning a seat. The SEC posted notice on October 1, and the Federal Register published it October 6. Comments were due October 27.

The change does not take effect until 30 days after filing unless the SEC shortens that period. The SEC can also suspend it within 60 days, or by November 17. I found no reported suspension as of October 30. The new 'associated person' definition, modeled on FINRA Rule 1011(b), covers people who control or work for member firms. Foreign associated persons would certify to their member firm rather than NYSE.

Why it matters

Member firms drop a separate registration category, but anyone who controls a member firm still falls under NYSE jurisdiction.

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Key Indicators

60 days
SEC suspension window
The SEC may summarily suspend the rule within 60 days of the September 18 filing, through November 17.

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Organizations Involved

New York Stock Exchange
New York Stock Exchange
Stock exchange
Proposing the rule change

The largest stock exchange in the United States, owned by Intercontinental Exchange.
U.S. Securities and Exchange Commission
U.S. Securities and Exchange Commission
Federal regulator
Reviewing the rule change

The federal agency that oversees securities markets, including self-regulatory organizations like NYSE and FINRA.
Financial Industry Regulatory Authority
Financial Industry Regulatory Authority
Self-regulatory organization
Model for the new definition

The self-regulatory organization that oversees broker-dealers in the United States.

Timeline

February 2012 October 2026

2 events Latest: October 1st, 2026 · 1 month ago

  1. SEC posts notice of NYSE rule change

    Latest Rule Change

    The SEC posted notice of NYSE's filing to delete the approved person category. The Federal Register published it October 6. The rule is not operative for 30 days after filing unless the SEC shortens that period.

  2. SEC approves NYSE Amex narrowing of approved person definition

    Regulatory

    NYSE Amex excluded foreign affiliates from the approved person definition and eliminated the application process.

Scenarios

1

SEC lets NYSE rule stand

Likely Resolves by Dec 5, 2026

Discussed by: The rule took effect immediately; No source in this review addresses how often the SEC suspends such filings.

The SEC takes no action within 60 days of publication, and the rule becomes permanent. This is the default outcome for rule changes filed as immediately effective.

2

SEC opens disapproval proceedings

Unlikely Resolves by Dec 5, 2026

Discussed by: The SEC could question whether the new definition captures everyone the old category did.

The SEC issues an order instituting proceedings to determine whether to disapprove the rule, citing concerns about gaps in oversight of persons who control member firms.

3

Other exchanges follow NYSE's lead

Possible Resolves by End of 2027

Discussed by: NYSE's filing cites harmonization with FINRA as a goal; other SROs face similar duplication.

Other self-regulatory organizations file similar rule changes to align their definitions with FINRA's, extending the harmonization trend across the industry.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

February 2012

NYSE Amex narrows approved person definition (2012)

NYSE Amex amended its definition of 'approved person' to exclude foreign affiliates and eliminated the application process for approved persons. The SEC approved the change in February 2012.

Then

Foreign affiliates no longer needed approved person status, and the application process was dropped.

Now

The category began shrinking years before its eventual elimination.

Why this matters now

The same category, the same exchange family, an earlier step in the same direction.

September 2026

NYSE harmonizes Rule 1210 with FINRA (2026)

NYSE filed a rule change to amend Rule 1210, aligning its waiting periods after failed registration exams with FINRA's. The change reduced waiting periods from 30 to 15 calendar days.

Then

NYSE's registration exam rules matched FINRA's.

Now

The filing shows NYSE actively harmonizing its rules with FINRA's across multiple areas.

Why this matters now

The approved person change is part of the same harmonization push.

Sources

(10)
+4
Federal Register LexFed SEC PublicNow PRIA Find Know Do Federal Register SEC.gov Federal Register SEC.gov