Notice2026-04081
Notice of an Application of the 24X National Exchange LLC for a Temporary, Conditional Exemption From Certain Requirements of Rule 602 of Regulation NMS, Certain Requirements of Certain Equity Data Plans, and Section 19(g)(1) of the Securities Exchange Act of 1934, Pursuant to Section 36 of the Securities Exchange Act of 1934 and Rule 602 and 608 of Regulation NMS, To Permit Certain Overnight Trading, and Request for Comment
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
March 2, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 40 (Monday, March 2, 2026)</title>
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[Federal Register Volume 91, Number 40 (Monday, March 2, 2026)]
[Notices]
[Pages 10169-10172]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04081]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104894; File No. S7-2026-06]
Notice of an Application of the 24X National Exchange LLC for a
Temporary, Conditional Exemption From Certain Requirements of Rule 602
of Regulation NMS, Certain Requirements of Certain Equity Data Plans,
and Section 19(g)(1) of the Securities Exchange Act of 1934, Pursuant
to Section 36 of the Securities Exchange Act of 1934 and Rule 602 and
608 of Regulation NMS, To Permit Certain Overnight Trading, and Request
for Comment
February 25, 2026.
On December 15, 2025, the Securities and Exchange Commission (the
``Commission'') received an application from the 24X National Exchange
LLC (``24X'' or the ``Exchange'') to obtain a temporary, conditional
exemption,\1\
[[Page 10170]]
pursuant to Section 36 of the Securities Exchange Act of 1934
(``Exchange Act'') \2\ and/or where applicable under Rules 602(d) \3\
and 608(e) \4\ of Regulation NMS under the Exchange Act, in accordance
with relevant procedures set forth in Exchange Act Rule 0-12.\5\
Specifically, 24X requests exemptive relief, subject to certain
conditions, from (1) certain requirements of Rule 602 of Regulation NMS
under the Exchange Act; \6\ (2) certain requirements of the Joint Self-
Regulatory Organization Plan Governing the Collection, Consolidation
and Dissemination of Quotation and Transaction Information for Nasdaq-
Listed Securities Traded on Exchanges on an Unlisted Trading Privileges
Basis (``UTP Plan'') \7\ and the Consolidated Quotation Plan (``CQ
Plan'') \8\ with regard to the reporting of quoting activity during the
24X Market Session; \9\ and (3) the requirement under Section 19(g)(l)
of the Exchange Act \10\ to comply with certain requirements set forth
in 24X Rules 1.5(c) and 11.6, to permit the Exchange to offer trading
during the 24X Market Session \11\ (together, the ``Temporary Quotation
Reporting Exemption'').\12\ The exemptive relief requested by the
Exchange would permit the Exchange to commence operation during the 24X
Market Session (i.e., generally, permitting trading overnight Sundays
through Thursdays) prior to the relevant Equity Data Plans \13\ being
amended to collect, consolidate, process and disseminate quotation and
transaction information at all times during the 24X Market Session. The
Commission is publishing this notice to provide interested persons with
an opportunity to comment.
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\1\ See Letter from David Sassoon, General Counsel, 24X, dated
December 15, 2025 (``Application''). The Application is attached as
an Appendix to this notice. The Appendix may be found on <a href="https://www.sec.gov/rules-regulations/exchange-act-exemptive-notices-orders">https://www.sec.gov/rules-regulations/exchange-act-exemptive-notices-orders</a>.
Defined terms in this notice are the same as used in the
Application, unless otherwise noted.
\2\ 15 U.S.C. 78mm. Section 36(a)(1) of the Exchange Act gives
the Commission the authority to exempt any person, security or
transaction or any class or classes of persons, securities or
transactions, conditionally or unconditionally, from any Exchange
Act provision or any rule or regulation thereunder by rule,
regulation or order, to the extent that the exemption is necessary
or appropriate in the public interest and consistent with the
protection of investors.
\3\ 17 CFR 242.602(d). Rule 602(d) of Regulation NMS states that
the Commission may exempt from the provisions of Rule 602, either
unconditionally or on specified terms and conditions, ``any
responsible broker or dealer, electronic communications network,
national securities exchange, or national securities association if
the Commission determines that such exemption is consistent with the
public interest, the protection of investors and the removal of
impediments to and perfection of the mechanism of a national market
system.''
\4\ 17 CFR 242.608(e). Rule 608(e) of Regulation NMS states that
that ``[t]he Commission may exempt from the provisions of this
section, either unconditionally or on specified terms and
conditions, any self-regulatory organization, member thereof, or
specified security, if the Commission determines that such exemption
is consistent with the public interest, the protection of investors,
the maintenance of fair and orderly markets and the removal of
impediments to, and perfection of the mechanisms of, a national
market system.''
\5\ 17 CFR 240.0-12. Exchange Act Rule 0-12 sets forth
procedures for filing applications for orders for exemptive relief
pursuant to Section 36 of the Exchange Act.
\6\ 17 CFR 242.602.
\7\ See UTP Plan, available at <a href="https://www.utpplan.com/utp_plan">https://www.utpplan.com/utp_plan</a>.
\8\ See CQ Plan, available at <a href="https://www.ctaplan.com/plans">https://www.ctaplan.com/plans</a>.
\9\ See 24X Rule 1.5. The complete 24X Rulebook is available at
<a href="https://equities.24exchange.com/api/media/file/24X%20Rulebook%2001.15.2026.pdf">https://equities.24exchange.com/api/media/file/24X%20Rulebook%2001.15.2026.pdf</a>.
\10\ 15 U.S.C. 78s(g)(1)
\11\ See 24X Rules 1.5(c) and 11.6.
\12\ See Application, p. 9-11.
\13\ See 24X Rule 1.5(o) which defines the term ``Equity Data
Plans'' as the ``effective national market system plan(s) that
govern the collection, consolidation, processing and dissemination
of consolidated equity market data via the exclusive securities
information processors (``SIPs''), including (1) Consolidated Tape
Association Plan (``CTA Plan''), (2) Consolidated Quotation Plan
(``CQ Plan''), (3) the Joint Self-Regulatory Organization Plan
Governing the Collection, Consolidation, and Dissemination of
Quotation and Transaction Information for Nasdaq-Listed Securities
Traded on Exchanges on an Unlisted Trading Privileges Basis (``UTP
Plan''), and (4) any successor thereto to the named Plan(s).''
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I. Background
On November 27, 2024, the Commission granted the 24X Form 1
application for registration as a national securities exchange, which
included 24X rules that will allow it to ultimately operate 23 hours a
day, 5 days per week.\14\ Specifically, the 24X rules provide for four
trading sessions--a Pre-Market Session (4:00 a.m.-9:30 a.m. Eastern
Time (``ET'')), a Core Market Session (9:30 a.m.-4:00 p.m. ET), a Post-
Market Session (4:00 p.m.-8:00 p.m. ET),\15\ and a 24X Market Session
(9:00 p.m.-4:00 a.m. ET every Sunday, Monday, Tuesday, Wednesday, and
Thursday night that precedes a U.S. Business Day).\16\
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\14\ See Exchange Act Release No. 101777 (Nov. 27, 2024), 89 FR
97092 (Dec. 6, 2024) (In the Matter of the Application of 24X
National Exchange LLC for Registration as a National Securities
Exchange; Findings, Opinion, and Order of the Commission) (``24X
Approval Order'').
\15\ See 24X Rules 1.5(z), (1), and (y), respectively. On Sept.
24, 2025, 24X amended its hours for the Post-Market Session so that
it concludes at 8:00 p.m. ET and the 24X Market Session so that it
begins at 9:00 p.m. See Exchange Act Release No. 104086 (Sept. 26,
2025), 90 FR 46978 (Sept. 30, 2025).
\16\ See 24X Rule 1.5(c). See 24X Rule 1.5(ll) which defines the
term ``U.S. Business Day'' as ``any Monday, Tuesday, Wednesday,
Thursday or Friday other than any of the following U.S. holidays if
they are celebrated on a Monday, Tuesday, Wednesday, Thursday or
Friday: New Year's Day, Martin Luther King Jr. Day, President's Day,
Good Friday, Memorial Day, Juneteenth National Independence Day,
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day
Eastern Time, or such other holiday(s) as published by the Exchange
from time to time.''
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On October 14, 2025, 24X commenced operations allowing trading
during three of these four trading sessions, namely the Pre-Market,
Core Market, and Post-Market Sessions. However, as approved by the
Commission,\17\ 24X Rule 1.5(c) provides that, the Exchange shall not
commence operation of the 24X Market Session unless the Equity Data
Plans (1) have established a mechanism to collect, consolidate, process
and disseminate quotation and transaction information at all times
during the 24X Market Session that is equivalent to the mechanism
established for Exchange Trading Hours other than the 24X Market
Session, and (2) have provided the Exchange with notification that they
are prepared to collect, consolidate, process and disseminate quotation
and transaction information to accommodate the 24X Market Session.\18\
Further, as approved by the Commission,\19\ 24X Rule 1.5(c) provides
that prior to commencing its operation of the 24X Market Session, the
Exchange will file a proposed rule change pursuant to Section 19(b) of
the Exchange Act and the rules thereunder confirming that the Exchange
is able to comply with its obligations under the Exchange Act and the
rules thereunder during the 24X Market Session and that such Equity
Data Plans are prepared to collect, consolidate, process and
disseminate quotation and transaction information at all times during
the 24X Market Session (``24X Market Session Proposed Rule Change'').
Finally, 24X Rule 1.5(c) states that the 24X Market Session Proposed
Rule Change must be filed with the Commission within 18 months of the
Commission's approval of the Exchange's application for registration as
a national securities exchange (i.e., May 27, 2026), and that if it is
not filed within those 18 months, the Exchange will promptly file a
proposed rule change to remove the rules that apply to the 24X Market
Session. In the 24X Approval Order, the Commission stated that
requiring the 24X Market Session to operate concurrently with the
operation of the Equity Data Plans would enhance transparency during
the 24X Market Session and promote the goals of the national market
system.\20\
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\17\ See 24X Approval Order, 89 FR at 97105.
\18\ See 24X Rule 1.5(c).
\19\ See 24X Approval Order, 89 FR at 97108.
\20\ See id.
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II. Summary of the Application and Proposed Conditions
In its Application,\21\ the Exchange states that in proposing 24X
Rules 11.6 and 1.5(c), it believed that 18 months
[[Page 10171]]
from approval of its application for registration as a national
securities exchange would be more than sufficient time for the Equity
Data Plans to make the necessary technology changes and changes to the
Equity Data Plans to allow for overnight trading on a national
securities exchange. The Exchange states that it has been vocal in
pressing for the necessary changes to the Equity Data Plans, and that
24X was given a projected timeline of November/December of 2026 for
overnight trading support for the Equity Data Plans, which is well
beyond the 18-month period anticipated when the Commission approved 24X
as a national securities exchange.\22\
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\21\ See Appendix.
\22\ After the Commission received the Application, on January
12, 2026, the CTA Plan, CQ Plan, and UTP Plan (together the
``Plans'') filed amendments to extend the operation of the exclusive
securities information processors (``SIPs'') from 9:00 p.m. ET
Sunday to 8:00 p.m. ET Friday subject to daily, one-hour operational
pauses from 8:00 p.m. to 9:00 p.m. on Monday through Thursday. In
the amendments, the Plans stated that, if approved by the
Commission, they expected implementation to occur in December 2026.
See Exchange Act Release Nos. 104670 (Jan. 22, 2026), 91 FR 3609
(Jan. 27, 2026) (Notice of Filing of Fifty-Fifth Amendment to the
UTP Plan), and 104665 (Jan. 22, 2026), 91 FR 3602 (Jan. 27, 2026)
(Notice of Filing of Fortieth Amendment to the CTA Plan and Thirty-
First Amendment to the CQ Plan) (together, ``Plan Amendments'').
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24X expresses concern that ``more established'' exchanges may
determine to form or acquire alternative trading systems and begin
trading overnight, reducing the incentive to modify the Equity Data
Plans to facilitate exchange trading in this market.\23\ 24X also
expresses concern that the implementation of the provided technology
may be further delayed by the need for regulatory approval of
amendments to the Equity Data Plans. As discussed in more detail in the
Application, 24X requests a Temporary Quotation Reporting Exemption
pursuant to Section 36 of the Exchange Act and/or Rules 602(f) and
608(e) of Regulation NMS to permit 24X to offer trading during the 24X
Market Session.
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\23\ See Application, p. 3.
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24X requests that the Commission grant the Temporary Quotation
Reporting Exemption subject to the following conditions:
(1) 24X will make publicly available a proprietary real-time
data feed that includes (a) quotation information with the data
elements required by the UTP and CQ Plans for the 24X Market
Session, and (b) last sale information with the data elements
required by the UTP and CTA Plans, at no cost;
(2) 24X would make clear on its website that consolidated market
data is not currently available with regard to quoting activity in
the 24X Market Session, and that quotation information during the
24X Market Session is only available via 24X's proprietary data
feeds;
(3) 24X will satisfy the requirements of Rules 601 and 602 of
Regulation NMS as well as the requirements of the UTP, CQ and CTA
Plans with regard to the quoting and transaction activity during its
Pre-Market Session, Core Market Session and Post-Market Session;
(4) 24X will satisfy the requirements of Rule 601 of Regulation
NMS as well as the requirements of the UTP and CTA Plans with regard
to transaction activity during the 24X Market Session by reporting
the transaction activity in the 24X Market Session on a delayed
basis as currently required under the UTP and CTA Plans;
(5) 24X will provide the Commission with quarterly data
regarding the volume of quoting and trading activity during the 24X
Market Session while the exemptive relief is effective; and
(6) National Securities Clearing Corporation shall have in place
rules approved by the Commission permitting it to clear and settle
trades that occur during the 24X Market Session.
III. Request for Comment
The Commission requests and encourage any interested person to
submit comments regarding the Application, including whether the
request should be granted. In particular, the Commission solicits
comment on the following questions:
1. What are commenters' views on 24X's proposed operation of the
24X Market Session while the Equity Data Plans are not operating?
Should the Commission permit, on a temporary conditional basis, a
national securities exchange to operate an overnight trading session
without the concurrent operation of the Equity Data Plans to collect,
process, consolidate and disseminate quotation and transaction
information? Would a temporary conditional exemption be consistent with
Section 11A(a)(1)(C) of the Exchange Act, in particular, the
Congressional finding stating that it is in the public interest and
appropriate for the protection of investors and the maintenance of fair
and orderly markets to assure the availability to brokers, dealers, and
investors of information with respect to quotations for and
transactions in securities?
2. If the Commission grants the 24X Temporary Quotation Reporting
Exemption, should the Commission allow other national securities
exchanges with rules that apply to an overnight trading session, to
commence operation of their overnight trading sessions if they comply
with the proposed conditions set forth in the Temporary Quotation
Reporting Exemption?
3. Would market participants, including investors, be able to
access real-time quotation and transaction information via the
proprietary feeds that would be offered by 24X? Would the conditions
proposed by 24X result in a level of transparency that is sufficient
for trading and investor protection during overnight trading?
4. If the Commission grants the requested temporary exemptive
relief, would other market participants seek regulatory relief in order
to trade on 24X during the 24X Market Session? If so, please describe
in detail.
5. Are there particular sections of the Exchange Act, the rules
thereunder, and Equity Data Plans, not otherwise discussed in the
Application, that the Commission should consider? Please explain.
6. Are there other conditions that should be required to allow the
operation of the 24X Market Session prior to the relevant Equity Data
Plans being amended to be able to collect, consolidate, process and
disseminate the consolidated equity market data during the 24X Market
Session?
7. What are commenters' views on the potential benefits, or
drawbacks, of granting the requested exemption, which, if granted, may
be in place for a limited period of time?
8. If the Commission granted the exemption, how would other market
participants be affected by the earlier than expected timeline for
implementation of the 24X Market Session? For example, would market
participants' preparations for 24-hour trading be impacted if the
exemption was granted? If so, please explain.
Comments should be received on or before April 1, 2026. 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">http://www.sec.gov</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#2351564f460e404c4e4e464d5750635046400d444c55"><span class="__cf_email__" data-cfemail="a7d5d2cbc28ac4c8cacac2c9d3d4e7d4c2c489c0c8d1">[email protected]</span></a>. Please include
File Number S7-2026-06 on the subject line.
Paper Comments
<bullet> Send paper comments to Secretary, Securities and Exchange
Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number S7-2026-06. 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/exorders.shtml">https://www.sec.gov/rules/exorders.shtml</a>). Do not include personal identifiable information in
[[Page 10172]]
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.
For further information, you may contact Kelly Riley, Senior
Special Counsel, Office of Market Supervision, Division of Trading and
Markets, at (202) 551-5500, Securities and Exchange Commission, 100 F
Street NE, Washington, DC 20549.
By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-04081 Filed 2-27-26; 8:45 am]
BILLING CODE 8011-01-P
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