Notice2026-03131
Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the LTSE Fee Schedule Relating to Its Co-Lead Incentive Rebates
Primary source
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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 7581-7583]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03131]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104835; File No. SR-LTSE-2026-06]
Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the LTSE Fee Schedule Relating to Its Co-Lead Incentive Rebates
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
relating to its Co-Lead Incentive rebates (``Co-Lead Incentive'') to
provide a temporary enhanced rebate for Members \3\ that newly qualify
beginning on or after February 1, 2026. The Exchange proposes to
implement the changes to the fee schedule pursuant to this proposal on
February 1, 2026.
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\3\ The term ``Member'' shall mean any registered broker or
dealer that has been admitted to membership in the Exchange. A
Member will have the status of a Member of the Exchange as that term
is defined in Section 3(a)(3) of the Act. Membership may be granted
to a sole proprietor, partnership, corporation, limited liability
company, or other organization that is a registered broker or dealer
pursuant to Section 15 of the Act, and which has been approved by
the Exchange. See LTSE Rule 1.160(w).
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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 Exchange proposes to amend its Co-Lead Incentive to provide a
temporary enhanced rebate for Members that newly qualify beginning on
or after February 1, 2026. The proposed change is designed to further
incent early and sustained participation in Co-Lead, thereby promoting
displayed liquidity, tighter spreads, and improved execution quality
for market participants.
As described in a separate contemporaneous filing, the Exchange is
amending Co-Lead to comply with recently adopted fee-transparency
requirements \4\ by instituting a one-month look-back between
qualification and the receipt of incentives.\5\ Under that structure, a
Member's eligibility for Co-Lead Incentives is determined based on its
activity during a given month, and any applicable rebates are applied
to the Member's activity during the subsequent month. The Exchange is
also reducing the Co-Lead quoting obligation to encourage broader
participation. These changes are reflected in the
[[Page 7582]]
Exchange's Fee Schedule, as amended by SR-LTSE-2026-05.
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\4\ The fee transparency requirement was adopted in Regulation
NMS: Minimum Pricing Increments, Access Fees, and Transparency of
Better Priced Orders, Securities Exchange Act Rel. No. 101070 (Sept.
18, 2024), 89 FR 81620 (Oct. 8, 2024) (Rule 610(d) amendments).
\5\ See SR-LTSE-2026-05 proposing to amend the LTSE Fee Schedule
with respect to the 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, which
was filed on January 30, 2026, and replaced SR-LTSE-2026-03.
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Consistent with that revised structure, upon initially qualifying
for the Co-Lead Incentive, a Member will be eligible to receive a one-
time enhanced Co-Lead Incentive of $0.0057 per share to all executions
of securities priced at or above $1 (excluding LIP Enhanced Securities)
by that Member during the calendar month immediately following such
Qualification Month,\6\ up to the number of qualifying shares executed
by the Member during the Qualification Month. Any qualifying executions
in excess of that amount during such month, will receive the standard
Co-Lead Incentive.\7\ Beginning with the next calendar month
thereafter, all qualifying executions by the Member will receive the
standard Co-Lead Incentive, provided the Member continues to satisfy
the quoting requirement during the Qualification Month.
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\6\ 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.
\7\ For the avoidance of doubt, this is a one-time incentive for
the first time a Member successfully qualifies for the Co-Lead
Incentive. No single Member will be eligible a second time.
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By way of example, if a Member qualifies for Co-Lead based on its
activity in March and executes two million qualifying shares during
that month, the Member would receive a $0.0057 per-share rebate on up
to two million qualifying shares executed in April, and a $0.0040 per-
share rebate on any qualifying shares executed in excess of that
amount. In May and thereafter, the Member would receive the standard
Co-Lead Incentive for all qualifying executions, provided it continues
to satisfy the quoting requirement.
The Exchange believes this structure provides a clear, transparent,
and predictable incentive for Members to make the operational
investments necessary to begin participating in Co-Lead, while avoiding
on-going or open-ended preferential pricing. Limiting the enhanced
rebate to the month immediately following the initial qualification and
capping it based on the Member's demonstrated displayed liquidity
during the Qualification Month, ensures that the incentive is directly
tied to meaningful displayed liquidity and does not create undue
disparities among Members.
The proposed change does not alter any other Co-Lead eligibility
criteria, incentive parameters, or qualification standards, as amended
in the related filing, and is designed to operate cohesively with the
one-month look-back framework adopted to comply with the fee-
transparency rule.
(b) Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(4) of the Act,\9\ 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,\10\ 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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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C.78f(b)(4).
\10\ 15 U.S.C.78f(b)(5).
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The proposed enhanced rebate is reasonable because it is narrowly
tailored, time-limited, and directly linked to a Member's provision of
displayed liquidity in Co-Lead eligible securities. By offering the
enhanced rebate only during the month immediately following a Member's
initial qualification, and only up to the number of shares executed
during the Qualification Month, the Exchange ensures that the incentive
is aligned with demonstrated trading activity and sustained liquidity
support, rather than speculative or short-term behavior.
The Exchange also believes that the proposed rule change is
reasonable, fair and equitable, and non-discriminatory because it is
available to all Members on equal terms. Any Member that satisfies the
qualification requirement, as set forth in the Exchange's Fee Schedule,
is eligible to receive the enhanced rebate. The Exchange is not
conferring a permanent pricing advantage on any subset of Members, and
the standard Co-Lead Incentive applies uniformly once the initial
incentive period has elapsed.
The Exchange further believes that the proposed change promotes the
objectives of Section 6(b)(5) by enhancing market quality. Encouraging
new participants to enter Co-Lead supports increased displayed
liquidity, greater depth at the inside, and improved price discovery,
all of which benefits investors and the public interest.
Finally, the Exchange believes that the proposal is consistent with
the fee-transparency requirements applicable as of February 1, 2026.
The enhanced rebate operates entirely within the one-month look-back
framework adopted in a separate filing, ensuring that Members have
advance notice of the incentives that may apply to their trading
activity and that all fees and rebates are clearly disclosed in the
Exchange's Fee Schedule.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\11\ 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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\11\ 15 U.S.C. 78f(b)(8).
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The proposed enhanced rebate applies uniformly to all Members that
newly qualify for Co-Lead and is available on the same terms and
conditions to any Member that satisfies the program's objective
eligibility criteria. The proposal does not limit access to the
incentive based on a Member's size, business model, or trading
strategy, and does not favor one class of market participants over
another.
The Exchange further believes that the proposed change does not
impose an undue burden on intramarket competition. The enhanced rebate
is temporary in nature, is capped based on a Member's demonstrated
displayed liquidity during the Qualification Month, and transitions to
the standard Co-Lead Incentive thereafter. As a result, the proposal
does not confer a persistent pricing advantage on any Member and does
not disadvantage Members that do not participate in the program or
qualify at a later date.
With respect to intermarket competition, the Exchange operates in a
highly competitive environment in which market participants can readily
route order flow to competing venues if they deem pricing or incentives
to be unattractive. The proposed enhanced rebate is intended to
encourage initial participation in a liquidity enhancing program and
the Exchange believes that the proposal is reasonably designed to allow
it to compete effectively for order flow while promoting displayed
liquidity and market quality.
Accordingly, the Exchange believes that the proposed rule change
promotes competition by encouraging broader participation in the Co-
Lead program
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and enhancing liquidity on the Exchange, without imposing any
unnecessary or inappropriate burden on competition.
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 \12\ and
paragraph (f)(2) of Rule 19b-4 thereunder.\13\ Accordingly, the
proposed rule change would take effect upon filing with the Commission.
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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 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#d9abacb5bcf4bab6b4b4bcb7adaa99aabcbaf7beb6af"><span class="__cf_email__" data-cfemail="b8cacdd4dd95dbd7d5d5ddd6cccbf8cbdddb96dfd7ce">[email protected]</span></a>. Please include
File Number SR-LTSE-2026-06 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-2026-06. 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-2026-06 and should be submitted on or
before March 11, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-03131 Filed 2-17-26; 8:45 am]
BILLING CODE 8011-01-P
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