Notice2024-19944
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
September 6, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 173 (Friday, September 6, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 173 (Friday, September 6, 2024)]
[Notices]
[Pages 72917-72918]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19944]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100884; File No. 10-242]
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
August 30, 2024.
On February 6, 2024, 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 March 4,
[[Page 72918]]
2024.\2\ The Commission received comment letters on the Form 1
application and a letter from 24X responding to these comment
letters.\3\ On May 31, 2024, 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 comment letters in response to the OIP \6\ and a
letter responding to the OIP and comments from 24X.\7\ On August 21,
2024, 24X filed an amendment to its Form 1 application (``Amendment No.
1'') which revised Exhibits B, B-1, C, C-2, D, E, E-1 and N.\8\ Among
other things, in Amendment No. 1, 24X proposes revisions to certain
rules in Exhibit B relating to the operation of the 24X Market
Session.\9\ In Amendment No. 1, 24X also proposes revisions to proposed
Exhibits C, C-2, D (including Exhibits D-1 through D-4), E, E-1 and N
to (1) provide more information about its intention to enter into a
technology services agreement with MEMX Technologies, LLC (``MEMX
Technologies''); (2) update the number of authorized ownership units
for 24X Bermuda Holdings LLC, the ultimate holding company for 24X; (3)
provide updated financial information on 24X's affiliates; and (4)
describe 24X's proposed compliance with Regulation Systems Compliance
and Integrity, its arrangement with MEMX Technologies, and make other
conforming changes to reflect Amendment No. 1.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78f.
\2\ See Securities Exchange Act Release No. 99614 (Feb. 27,
2024), 89 FR 15621 (Mar. 4, 2024) (``Notice'').
\3\ The public comment file for 24X's Form 1 application (File
No. 10-242) is available on the Commission's website at: <a href="https://www.sec.gov/comments/10-242/10-242.htm">https://www.sec.gov/comments/10-242/10-242.htm</a>.
\4\ 15 U.S.C. 78s(a)(1)(B).
\5\ See Securities Exchange Act Release No. 100254 (May 31,
2024), 89 FR 48466 (June 6, 2024).
\6\ See supra note 3 and accompanying text.
\7\ See id.
\8\ See Securities Exchange Act Release No. 100839 (Aug. 27,
2024). Amendment No. 1 is available on the Commission's website at:
<a href="https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/24x-form-1">https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/24x-form-1</a>.
\9\ See proposed 24X Rule 1.5(c), as amended by Amendment No. 1,
defining the ``24X Market Session'' as ``(i) the time between 8:00
p.m. and 4:00 a.m. Eastern Time, (ii) any time that falls on a
Saturday or a Sunday Eastern Time, (iii) any time that falls on one
of the following U.S. holidays: New Year's Day, Martin Luther King
Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth
National Independence Day, Independence Day, Labor Day, Thanksgiving
Day and Christmas Day Eastern Time, or such other U.S. holiday(s) as
published by the Exchange from time to time; provided, however, it
shall not include any trading pauses as described in Rule 11.15(c).
For the avoidance of doubt, notwithstanding anything to the contrary
in these Rules, the Exchange shall not commence operation of the 24X
Market Session unless (1) the equity data national market system
plans have established a mechanism to collect, consolidate and
disseminate quotation and transaction information during the 24X
Market Session, or (2) the Securities and Exchange Commission has
provided exemptive or other relief from the requirements under Rule
601, 602 and such plans (or their successors) applicable to the 24X
Market Session.''
---------------------------------------------------------------------------
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.\10\ At the conclusion of such proceedings, the
Commission, by order, shall grant or deny such registration.\11\ 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.\12\ The Notice was published for comment in
the Federal Register on March 4, 2024.\13\ The 180th day after
publication of the Notice is August 31, 2024. 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(a)(1)(B).
\11\ Id.
\12\ Id.
\13\ 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 \14\ for
NMS stocks by operating a national securities exchange 23 hours a day,
seven days a week, 365 days a year, including holidays, subject to
certain pauses.\15\ In addition, in Amendment No. 1, 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 November 29, 2024, as
the date by which the Commission shall either grant or deny 24X's Form
1 application.
---------------------------------------------------------------------------
\14\ ``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)(88).
\15\ See proposed 24X Rule 11.1 (describing the hours of trading
and trading days for 24X).
\16\ 15 U.S.C. 78s(a)(1)(B).
By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-19944 Filed 9-5-24; 8:45 am]
BILLING CODE 8011-01-P
</pre></body>
</html>Indexed from Federal Register on September 6, 2024.
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.