Notice2022-25685
In the Matter of the Application of 24X National Exchange LLC for Registration as a National Securities Exchange; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Grant or Deny an Application for Registration as a National Securities Exchange Under Section 6 of the Securities Exchange Act of 1934
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 25, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 226 (Friday, November 25, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 226 (Friday, November 25, 2022)]
[Notices]
[Page 72553]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-25685]
[[Page 72553]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96364; File No. 10-239]
In the Matter of the Application of 24X National Exchange LLC for
Registration as a National Securities Exchange; Notice of Designation
of a Longer Period for Commission Action on Proceedings To Determine
Whether To Grant or Deny an Application for Registration as a National
Securities Exchange Under Section 6 of the Securities Exchange Act of
1934
November 18, 2022.
I. Introduction
On March 25, 2022, 24X National Exchange LLC (``24X'') filed with
the Securities and Exchange Commission (``Commission'') a Form 1
application under the Securities Exchange Act of 1934 (``Act'') seeking
registration as a national securities exchange under Section 6 of the
Act.\1\ Notice of the application was published for comment in the
Federal Register on June 6, 2022.\2\ The Commission received comment
letters on the Form 1 application and a letter from 24X responding to
these comment letters.\3\ On September 1, 2022, the Commission
instituted proceedings pursuant to Section 19(a)(1)(B) of the Act \4\
to determine whether to grant or deny 24X's application for
registration as a national securities exchange under Section 6 of the
Act (the ``OIP'').\5\ The Commission received one comment letter in
response to the OIP,\6\ and a letter in response to the OIP from
24X.\7\ On October 21, 2022, 24X filed an amendment to its Form 1
application (``Amendment No. 1'').\8\ Among other things, Amendment No.
1 revised the corporate documents of 24X and its direct holding
company; amended 24X's proposed rules and User Manual; \9\ filed
additional financial statements for 24X's immediate holding company;
and provided additional information about the finances for 24X. On
November 10, 2022, 24X filed a second amendment to its Form 1
application (``Amendment No. 2).\10\ In Amendment No. 2, 24X revised
the Amended and Restated Limited Liability Company Operating Agreement
of 24X Bermuda Holdings LLC, as well as the Member Nominating Committee
Charter.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78f.
\2\ See Securities Exchange Act Release No. 95007 (May 31,
2022), 87 FR 34333 (June 6, 2022) (``Notice'').
\3\ The public comment file for 24X's Form 1 application (File
No. 10-239) is available on the Commission's website at: <a href="https://www.sec.gov/comments/10-239/10-239.htm">https://www.sec.gov/comments/10-239/10-239.htm</a>.
\4\ 15 U.S.C. 78s(a)(1)(B).
\5\ See Securities Exchange Act Release No. 95651 (Sept.1,
2022), 87 FR 54736 (Sept. 7, 2022).
\6\ See letter from Brian Hyndman, President and Chief Executive
Officer, Blue Ocean ATS, LLC, dated Sept. 28, 2022, to Vanessa A.
Countryman, Secretary, Commission.
\7\ See letter from James M. Brady, Katten Muchin Rosenman LLP,
outside counsel for 24X National Exchange LLC, dated Oct. 18, 2022,
to Vanessa A. Countryman, Secretary, Commission.
\8\ See Securities Exchange Act Release No. 96218 (Nov. 3,
2022), 87 FR 67725 (Nov. 9, 2022). Amendment No. 1 is available on
the Commission's website at: <a href="https://www.sec.gov/rules/other/2022/24x/24x-form-1.htm">https://www.sec.gov/rules/other/2022/24x/24x-form-1.htm</a>.
\9\ For example, 24X has proposed to delete its original
proposal to trade fractional shares and to have a mirrored platform
in London.
\10\ See Securities Exchange Act Release No. 96337 (Nov. 17,
2022). Amendment No. 2 is available on the Commission's website at:
<a href="https://www.sec.gov/rules/other/2022/24x/24x-form-1.htm">https://www.sec.gov/rules/other/2022/24x/24x-form-1.htm</a>.
---------------------------------------------------------------------------
Section 19(a)(1)(B) of the Act provides that proceedings instituted
to determine whether to deny an application for registration as a
national securities exchange shall be concluded within 180 days of the
date of a publication of notice of the filing of the application for
registration.\11\ At the conclusion of such proceedings, the
Commission, by order, shall grant or deny such registration.\12\ The
Commission may extend the time for conclusion of such proceedings for
up to 90 days if it finds good cause for such extension and publishes
its reasons for so finding.\13\ The Notice was published for comment in
the Federal Register on June 6, 2022.\14\ The 180th day after
publication of the Notice is December 2, 2022. The Commission is
extending the time period for granting or denying 24X's application for
registration as a national securities exchange for an additional 90
days.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(a)(1)(B).
\12\ Id.
\13\ Id.
\14\ See supra note 2.
---------------------------------------------------------------------------
The Commission finds good cause for extending the period for
granting or denying 24X's application for registration as a national
securities exchange because the extension will provide additional time
for the Commission to assess whether 24X's Form 1 application, as
amended, satisfies the requirements of the Act and the rules and
regulations thereunder. As described in the Notice, 24X proposes to
significantly expand trading outside of regular trading hours \15\ for
NMS stocks by operating a national securities exchange 24 hours a day,
seven days a week, 365 days a year, including holidays. In addition, in
Amendment Nos. 1 and 2, 24X significantly amended its application for
registration as a national securities exchange as originally filed.
Therefore, the Commission believes that there is good cause to extend
the time for conclusion of the proceedings for 90 days. Accordingly,
the Commission, pursuant to Section 19(a)(1)(B) of the Act,\16\
designates March 3, 2023, as the date by which the Commission shall
either grant or deny 24X's Form 1 application.
---------------------------------------------------------------------------
\15\ ``Regular trading hours'' is defined in Rule 600(b)(77) as
``the time between 9:30 a.m. and 4:00 p.m. Eastern Time.'' 17 CFR
242.600(b)(77).
\16\ 15 U.S.C. 78s(a)(1)(B).
By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-25685 Filed 11-23-22; 8:45 am]
BILLING CODE 8011-01-P
</pre></body>
</html>Indexed from Federal Register on November 25, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.