NYSE has corrected its new definition of “associated person” after determining that the filed rule text omitted a category the exchange said it intended to preserve. The restored clause covers persons engaged in a securities or kindred business that is controlled by a member or member organisation. The correction was filed on 19 October and published by the SEC on 29 October.[1]
The underlying reform deleted NYSE’s separate approved-person registration category and adopted an associated-person definition based in part on FINRA’s framework. NYSE said that change was intended to reduce duplicative registration while retaining jurisdiction over the people and entities previously captured. The omission created a mismatch between that explanation and the operative wording.[2][1]
The jurisdiction NYSE says it intended to preserve
Category and treatment under Rule 2(c)
| Category | Intended position | Correction effect |
|---|---|---|
| Person controlling a member organisation | Included in the new associated-person framework | UnchangedSource 2Source 1 |
| Securities or kindred business controlled by a member or member organisation | Described as included in the original filing but omitted from the filed text | Expressly restoredSource 1 |
| U.S.-registered broker-dealer under common control with a member organisation | Included through the control-person structure | UnchangedSource 2Source 1 |
| Customer or ordinary affiliate without the specified control/business relationship | Not included merely because of commercial contact | No expansion statedSource 1 |
For member organisations, this is not a customer product change. It is a governance and regulatory-mapping issue. Firms need to confirm which controlled securities or kindred businesses sit inside the associated-person perimeter, who is responsible for filings and supervision, and whether internal inventories built from the initially filed text omitted a covered affiliate.[1]
The timing deserves attention. The original filing was scheduled to become operative on 18 October, and the corrective filing was made the following day. That sequence does not support treating the omitted category as deliberately deregulated. NYSE’s published rationale is the opposite: the clause was left out inadvertently and the correction conforms the rule to the already stated purpose.[1][2]
The SEC waived the normal 30-day operative delay and designated the correction operative upon filing. NYSE says the restored language aligns Rule 2(c) with the jurisdiction described in the earlier reform, rather than introducing a new category of covered business.[1]
Sources & further reading
- SR-NYSE-2026-52: correction to Rule 2(c) U.S. Securities and Exchange Commission · 29 Oct 2026 · Accessed 30 Oct 2026
- SR-NYSE-2026-47: deletion of approved-person registration and new associated-person definition U.S. Securities and Exchange Commission · 1 Oct 2026 · Accessed 30 Oct 2026