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Notice2026-03130

Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Fee Schedule With Respect to the Co-Lead Incentive

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Published
February 18, 2026

Issuing agencies

Securities and Exchange Commission

Full Text

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<title>Federal Register, Volume 91 Issue 32 (Wednesday, February 18, 2026)</title>
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[Federal Register Volume 91, Number 32 (Wednesday, February 18, 2026)]
[Notices]
[Pages 7548-7549]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03130]



[[Page 7548]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-104833; File No. SR-LTSE-2026-05]


Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Fee Schedule With Respect to the Co-Lead Incentive

February 12, 2026.
    Pursuant to the provisions of Section 19(b)(1) under the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that on January 30, 2026, Long-Term Stock Exchange, 
Inc. (``LTSE'' or the ``Exchange'') filed with the Securities and 
Exchange Commission (the ``Commission'') the proposed rule change as 
described in Items I, II and III 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\ 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 is filing with the Securities and Exchange Commission 
(``Commission'') a proposed rule change to amend the LTSE Fee Schedule 
with respect to the Co-Lead Incentive rebates (``Co-Lead Incentives'') 
to adopt a month-based qualification and prospective rebate framework 
to provide fee transparency in compliance with Rule 610(d) of 
Regulation NMS, as amended.
    The text of the proposed rule change is available at the Exchange's 
website at <a href="https://longtermstockexchange.com/">https://longtermstockexchange.com/</a>, and at the principal 
office of the Exchange.

II. Self-Regulatory Organization's Statement on 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 self-regulatory organization 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
    The purpose of the proposed rule change is to enhance the clarity, 
transparency, and operability of the Exchange's Co-Lead Incentive 
program, while continuing to promote displayed liquidity, improved 
execution quality, and market quality on the Exchange.
    To comply with Rule 610(d) of Regulation NMS, as amended, the 
Exchange is adopting a month-based qualification and rebate framework 
under which a Member's eligibility for Co-Lead Incentives is determined 
based on its quoting activity during a month, and any applicable 
rebates are applied to qualifying executions during the immediately 
following month. This structure introduces a clear and predictable one-
month look-back between qualification and rebate application, ensuring 
that Members have advance notice of the rebates that may apply to their 
trading activity.
    The Exchange is adopting this framework to comply with the 
Commission's recently adopted fee transparency rule, which requires 
national securities exchanges to ensure that fees and rebates are 
clearly disclosed and not applied in a manner that is retroactive or 
otherwise opaque. By separating the month in which qualification is 
measured from the month in which rebates are applied, the Exchange 
eliminates any potential ambiguity regarding when a Member earns and 
receives rebates.\3\
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    \3\ The Co-Lead Incentive of $0.0040 per share remains 
unchanged.
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    The calculation for determining whether a Member qualifies for the 
Co-Lead Incentive remains unchanged. However, the Exchange is now 
adopting a provision addressing the timing of when the Co-Lead 
Incentives are applied. This provision states, if, based on such 
calculation, a Member satisfies the quoting requirement for a given 
calendar month, that calendar month shall be deemed a Qualification 
Month \4\ for the purposes of the Co-Lead Incentive, and the Member 
will be eligible to receive the applicable Co-Lead Incentive during the 
following calendar month.
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    \4\ The term ``Qualification Month'' shall mean a calendar month 
used by the Exchange to determine that a Member satisfied the 
quoting requirement and therefore qualifies for the Co-Lead 
Incentive in the following month. The applicable Co-Lead Incentive 
will apply to all executions of securities priced at or above $1 
(excluding LIP Enhanced Securities) by that Member during the 
following calendar month.
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    The proposed rule change also reduces the number of securities in 
which a Member must satisfy the quoting requirement during the 
Qualification Month from 2000 to 1000 securities. The Exchange believes 
this adjustment will encourage broader participation in the program by 
lowering operational barriers to entry, while continuing to require 
meaningful and sustained displayed liquidity contributions across a 
diversified set of securities.
(b) Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the objectives of Section 
6(b)(4) of the Act,\6\ in particular, in that it provides for the 
equitable allocation of reasonable dues, fees and other charges among 
all of its Members and issuers and other persons using its facilities; 
Section 6(b)(5) of the Act,\7\ which requires, among other things, that 
the rules of the Exchange be designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and to protect 
investors and the public interest and are not designed to permit unfair 
discrimination between customers, issuers, brokers or dealers.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C.78f(b)(4).
    \7\ 15 U.S.C.78f(b)(5).
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    The proposed Co-Lead framework is reasonable because it ties 
rebates to a Member's demonstrated quoting activity during a month and 
applies those rebates prospectively during the following month. This 
structure promotes transparency and ensures that Members can understand 
in advance the pricing that will apply to its trading activity.
    The proposal is equitably allocated and not unfairly discriminatory 
because the quoting requirement and rebates are applied uniformly to 
all Members that choose to participate in the program and satisfy the 
objective eligibility requirements. No Member is required to 
participate in Co-Lead, and any Member that meets the quoting 
requirements during a Qualification Month is eligible to receive the 
Co-Lead Incentive during the following month.

[[Page 7549]]

    The Exchange further believes that adopting a one-month look-back 
between qualification and rebate application is consistent with the Act 
because it enhances fee transparency and avoids pricing uncertainty, 
consistent with Commission guidance and recently adopted fee 
transparency requirements applicable to national securities exchanges.
    Finally, the Exchange believes that reducing the number of 
securities required to satisfy the quoting requirement is consistent 
with the Act because it encourages broader participation in a 
liquidity-enhancing program without diminishing the requirement that 
participating Members provide meaningful displayed liquidity.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\8\ the Exchange does 
not believe that the proposed rule change would impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act.
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    \8\ 15 U.S.C. 78f(b)(8).
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    The proposed changes apply uniformly to all Members and are 
designed to promote transparency, predictability, and participation in 
a liquidity-enhancing program. The revised Co-Lead framework does not 
limit a Member's ability to access or trade on the Exchange.
    The Exchange operates in a highly competitive environment in which 
market participants can readily direct order flow to competing venues 
if they deem pricing or incentives to be unattractive. The Exchange 
therefore believes that the proposed rule change will enhance, rather 
than burden, competition by encouraging broader participation in Co-
Lead and improving displayed liquidity and market quality on the 
Exchange.

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

    This proposed rule change establishes dues, fees or other charges 
among its members and, as such, may take effect upon filing with the 
Commission pursuant to Section 19(b)(3)(A)(ii) of the Act \9\ and 
paragraph (f)(2) of Rule 19b-4 thereunder.\10\ Accordingly, the 
proposed rule change would take effect upon filing with the Commission.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend the rule 
change if it appears to the Commission that the action is necessary or 
appropriate in the public interest, for the protection of investors, or 
would otherwise further 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#2d5f584148004e4240404843595e6d5e484e034a425b"><span class="__cf_email__" data-cfemail="b7c5c2dbd29ad4d8dadad2d9c3c4f7c4d2d499d0d8c1">[email&#160;protected]</span></a>. Please include 
File Number SR-LTSE-2026-05 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-LTSE-2026-05. 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 LTSE and on its internet website at 
<a href="https://longtermstockexchange.com/">https://longtermstockexchange.com/</a>. 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-LTSE-2026-05 and should be submitted on or 
before March 11, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-03130 Filed 2-17-26; 8:45 am]
BILLING CODE 8011-01-P


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