Notice2025-22394
Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Limit Order Price Protection Percentages
Primary source
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Published
December 10, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 235 (Wednesday, December 10, 2025)</title>
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[Federal Register Volume 90, Number 235 (Wednesday, December 10, 2025)]
[Notices]
[Pages 57258-57260]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22394]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104329; File No. SR-24X-2025-16]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Modify
Limit Order Price Protection Percentages
December 5, 2025.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on November 28, 2025, 24X National Exchange LLC (``24X'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to modify the limit order price protection
percentages applicable to the Pre-Market, Post-Market, and 24X Market
Sessions to match those applicable to the Core Market Session. The
proposed rule change is available on the Exchange's website at <a href="https://equities.24exchange.com/regulation">https://equities.24exchange.com/regulation</a> and at the principal office of the
Exchange.
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 self-regulatory organization
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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
24X Rule 11.9(g) describes a mechanism by which the Exchange's
trading System \4\ will reject limit orders that, among other
parameters, are priced specified percentages away from the National
Best Bid or National Best Offer (``Limit Order Price Protection'').
This mechanism is intended to reduce the risk of harm to market
participants resulting from limit orders inadvertently entered at
unintended prices. The Exchange proposes to modify the Limit Order
Price Protection percentages applicable to the Pre-Market Session,\5\
Post-Market Session,\6\ and 24X Market Session \7\ to match those
applicable to the Core Market Session.\8\
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\4\ See 24X Rule 1.5(hh).
\5\ See 24X Rule 1.5(z).
\6\ See 24X Rule 1.5(y).
\7\ See 24X Rule 1.5(c). The Exchange will not commence
operation of the 24X Market Session until the requirements of 24X
Rule 1.5(c) are met.
\8\ See 24X Rule 1.5(l).
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24X Rule 11.9(g) currently provides that, during the Pre-Market,
Post-Market, and 24X Market Sessions, the Limit Order Price Protection
percentages are: (i) 20% for securities priced above $0.00 up to and
including $25.00; (ii) 10% for securities priced above $25.00 up to and
including $50.00; and (iii) 6% for securities priced above $50.00. The
Exchange proposes to modify the above percentages to match those
applicable to the Core Market Session as follows: (i) 10% for
securities priced above $0.00 up to and including $25.00; (ii) 5% for
securities priced above $25.00 up to and including $50.00; and (iii) 3%
for securities priced above $50.00.
The Exchange proposes this change in order to align with the limit
order price protection percentages adopted by other national securities
exchanges during their early and late trading sessions.\9\ The proposed
change will also provide greater protection to investors given that the
proposed revised percentages are lower than the current percentages.
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\9\ See, e.g., NYSE Arca Inc. (``NYSE Arca'') Rule 7.31-
E(a)(2)(B)(ii).
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act \10\ in general, and with
Section 6(b)(5) of
[[Page 57259]]
the Act \11\ in particular, because it is 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 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; and it is not designed to permit
unfair discrimination between customers, issuers, brokers, or dealers.
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\10\ 15 U.S.C. 78f.
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change furthers the
objectives of the Act by aligning the Exchange's rules more closely
with those of other national securities exchanges \12\ in providing
Limit Order Price Protection percentages that better protect investors
during trading sessions other than the Core Market Session, thereby
removing impediments to and perfecting the mechanism of a free and open
market and a national market system and protecting investors and the
public interest. Given that the proposed modified Limit Order Price
Protection percentages are already applicable to the Core Market
Session and are consistent with those used by other exchanges,\13\ the
Exchange believes that the proposed rule change does not involve any
new or novel issues that have not been previously considered by the
Commission.
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\12\ See, e.g., NYSE Arca Rule 7.31-E(a)(2)(B)(ii).
\13\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not intended to address competitive issues but rather is intended
solely to offer protections to investors that are consistent with the
protections they receive from other national securities exchanges.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
Because the proposed rule change does not (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \16\ and Rule
19b-4(f)(6)(iii) thereunder.\17\
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 17 CFR 240.19b-4(f)(6). The Exchange originally submitted
the proposed rule change to the Commission on October 9, 2025, which
could have enabled it to become effective on October 14, 2025, the
date on which the Exchange commenced operations as a national
securities exchange and the date on which the Exchange began
implementing the proposed modified Limit Order Price Protection
percentages during the Pre-Market and Post-Market Sessions. However,
the Commission was unable to consider any proposed rule changes
during the federal government shutdown that lasted from October 1,
2025 to November 12, 2025. Technological limitations prevented the
Exchange from being able to commence operations without also
commencing implementation of the proposed modified Limit Order Price
Protection percentages during the Pre-Market and Post-Market
Sessions.
\16\ 15 U.S.C. 78s(b)(3)(A)(iii).
\17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
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 fulfilled this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \18\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\19\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
states that conforming the Limit Order Price Protection percentages for
the Pre-Market, Post Market Sessions and 24X Market Session with the
Limit Order Price Protection percentages that are applicable to the
Core Market Session will provide greater protections for market
participants. The Commission believes that waiver of the operative
delay would be consistent with the protection of investors and the
public interest because this proposed rule change does not present any
novel issues. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposed rule change as operative
upon filing.\20\
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\18\ 17 CFR 240.19b-4(f)(6).
\19\ 17 CFR 240.19b-4(f)(6)(iii).
\20\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#ec9e998089c18f8381818982989fac9f898fc28b839a"><span class="__cf_email__" data-cfemail="f88a8d949dd59b9795959d968c8bb88b9d9bd69f978e">[email protected]</span></a>. Please include
file number SR-24X-2025-16 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-2025-16. 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing 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-2025-16 and should be submitted on
or before December 31, 2025.
[[Page 57260]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-22394 Filed 12-9-25; 8:45 am]
BILLING CODE 8011-01-P
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