Notice2025-17345
Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing of a Proposed Rule Change Regarding the Regular Hours Only Instruction
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 10, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 173 (Wednesday, September 10, 2025)</title>
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[Federal Register Volume 90, Number 173 (Wednesday, September 10, 2025)]
[Notices]
[Pages 43666-43668]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17345]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103894; File No. SR-24X-2025-01]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing of a Proposed Rule Change Regarding the Regular Hours Only
Instruction
September 5, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Exchange Act'' or the ``Act'') \1\ and Rule 19b-4 thereunder,\2\
notice is hereby given that on August 27, 2025, 24X National Exchange
LLC (``24X'' or the ``Exchange'') filed with the Securities
[[Page 43667]]
and Exchange Commission (``SEC'' or ``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by the Exchange. The Exchange filed the proposal as a
``non-controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing with the Commission a proposed rule change
to require that any order with a time-in-force (``TIF'') instruction of
Regular Hours Only (``RHO'') \5\ that is entered into the System \6\
before the opening or after the closing of the Core Market Session \7\
be rejected. This change would conform the treatment of orders with an
RHO instruction with the treatment of such orders on other national
securities exchanges. The text of the proposed rule change is also
available on the Exchange's website (<a href="https://equities.24exchange.com">https://equities.24exchange.com</a>)
and at the Exchange's principal office.
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\5\ See 24X Rule 11.6(o)(2).
\6\ The term ``System'' means ``the electronic communications
and trading facility designated by the Board through which
securities orders of Users are consolidated for ranking, execution
and, when applicable, routing. See 24X Rule 1.5(hh).
\7\ The term ``Core Market Session'' means ``the time between
9:30 a.m. and 4:00 p.m. Eastern Time each U.S. Business Day.'' See
24X Rule 1.5(l).
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Under the 24X Rules, orders may be submitted to the Exchange with a
TIF instruction of RHO, which is an ``instruction the User may attach
to an order stating any order to buy or sell is designated for
execution during the Core Market Session, and, if not executed, expires
at the end of the Core Market Session.'' \8\ 24X permits RHO Orders to
be entered into the System at any time. Specifically, 24X Rule
11.6(o)(2) states that
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\8\ See 24X Rule 11.6(o)(2).
RHO Orders may be entered into the System at any time, but no
RHO Order may be executed outside of the Core Market Session. For
RHO Orders entered outside the Core Market Session, or during the
Core Market Session but prior to the commencement of trading,
trading for such RHO Orders will commence once the security has
begun trading on the primary listing market on or after 9:30:00 a.m.
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Eastern Time.
24X proposes to revise its rules to reject any RHO Order that is
entered into the System before the opening or after the closing of the
Core Market Session.
To implement the change in the treatment of RHO Orders, 24X
proposes to amend Rule 11.6(o)(2). Specifically, 24X proposes to delete
from 24X Rule 11.6(o)(2) the following language:
RHO Orders may be entered into the System at any time, but no
RHO Order may be executed outside of the Core Market Session. For
RHO Orders entered outside the Core Market Session, or during the
Core Market Session but prior to the commencement of trading,
trading for such RHO Orders will commence once the security has
begun trading on the primary listing market on or after 9:30:00 a.m.
Eastern Time.
24X proposes to replace this language with the following: ``Any order
with a TIF instruction of RHO entered into the System before the
opening or after the closing of the Core Market Session will be
rejected.'' With this change, the definition of an RHO instruction in
24X Rule 11.6(o)(2) would conform with the definition of an RHO
instruction as set forth in the rules of other national securities
exchanges.\9\
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\9\ See, e.g., MEMX Rule 11.6(o)(5); LTSE 11.180(o)(5).
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Correspondingly, 24X proposes to amend the definition of ``24X
Trading Day'' in 24X Rule 1.5(b) to conform the discussion of RHO
Orders in the definition of 24X Trading Day with the proposed revised
description of an RHO Order in 24X Rule 11.6(o)(2). 24X Rule 1.5(b)
discusses the treatment of RHO Orders entered outside the Core Market
Session, or during the Core Market Session but prior to the
commencement of trading. Specifically, 24X Rule 1.5(b) states, in
relevant part, that
For RHO Orders entered outside the Core Market Session, or
during the Core Market Session but prior to the commencement of
trading, trading for such RHO Orders will commence once the security
has begun trading on the primary listing market on or after 9:30:00
a.m. Eastern Time; for all orders eligible to trade in the Core
Market Session other than such RHO Orders, trading will be
continuous in the Core Market Session, with no pause in trading
related to the commencement of trading on the primary listing
market.
24X proposes to delete this language from 24X Rule 1.5(b) because 24X
proposes to revise its Rules to reject RHO Orders entered into the
System before the opening or after the closing of the Core Market
Session.\10\ This change would conform the definition of 24X Trading
Day with the proposed revised definition of an RHO instruction in 24X
Rule 11.6(o)(2).
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\10\ 24X also proposes to delete the phrase ``including the
pause in trading described in the next sentence'' from 24X Rule
1.5(b) as the referenced ``next sentence'' is proposed to be deleted
from 24X Rule 1.15(b).
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Exchange Act and the rules and regulations thereunder applicable to
the Exchange and, in particular, the requirements of Section 6(b) of
the Act.\11\ Specifically, the Exchange believes the proposed rule
change is consistent with the Section 6(b)(5) \12\ requirements that
the rules of an exchange be designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in regulating, clearing, settling, processing
information with respect to, and facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \13\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
\13\ Id.
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The Exchange believes the proposed rule change will remove
impediments to and perfect the mechanism of a free and open market and
a national market system. The proposal to reject any RHO Order that is
entered into the System before the opening or after the closing of the
Core Market Session is consistent
[[Page 43668]]
with the rules of other national securities exchanges that have RHO
Orders. As such, the proposed rule change would not impose a burden
competition as it would allow the Exchange to operate in the same
manner as other national securities exchanges currently operate with
regard to RHO Orders. Thus, the proposed rule change to revise the
treatment of RHO Orders on the Exchange is not novel or unique. The
Commission has previously determined that the proposed revised
treatment of RHO Orders complies with the requirements of the Exchange
Act.
Moreover, the proposal would remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, protect investors and the public interest by allowing
investors to trade on the Exchange in the same manner that investors
trade on other national securities exchanges without making changes to
their order handling processes.
Furthermore, the proposed rule change further removes impediments
to a free and open market and does not unfairly discriminate among
market participants, as all Members of the Exchange will be able, but
not be required, to make use of the RHO Orders as described in this
proposed rule change.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. As discussed
above, the proposal to reject any RHO Order that is entered into the
System before the opening or after the closing of the Core Market
Session is consistent with the rules of other national securities
exchanges that have RHO Orders. As such, the proposed rule change would
promote competition by allowing the Exchange to operate in the same
manner as other national securities exchanges currently operate with
regard to RHO Orders and allow investors to trade on the Exchange in a
manner similar to trading on other national securities exchanges with
regard to RHO Orders. The Commission has previously determined that the
proposed revised treatment of RHO Orders will not result in any burden
on competition that is not necessary or appropriate in furtherance of
the purposes of the Act in approving comparable rules of other national
securities exchanges.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not:
A. significantly affect the protection of investors or the public
interest;
B. impose any significant burden on competition; and
C. become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \14\ and
Rule 19b-4(f)(6) \15\ thereunder. At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such rule change if it appears to the Commission
that such action is necessary or appropriate in the public interest,
for the protection of investors, or otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission will institute proceedings to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#3745425b521a54585a5a525943447744525419505841"><span class="__cf_email__" data-cfemail="dcaea9b0b9f1bfb3b1b1b9b2a8af9cafb9bff2bbb3aa">[email protected]</span></a>. Please include
File Number SR-24X-2025-01 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-24X-2025-01. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing. Copies of such
filing also will be available for inspection and copying at the
principal office of the Exchange. Do not include personal identifiable
information in submissions; you should submit only information that you
wish to make available publicly. We may redact in part or withhold
entirely from publication submitted material that is obscene or subject
to copyright protection. All submissions should refer to File Number
SR-24X-2025-01 and should be submitted on or before October 1, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 7 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-17345 Filed 9-9-25; 8:45 am]
BILLING CODE 8011-01-P
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