Notice2026-04504
Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Exchange Rule 11.6(q)(1)
Primary source
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Published
March 9, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 45 (Monday, March 9, 2026)</title>
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[Federal Register Volume 91, Number 45 (Monday, March 9, 2026)]
[Notices]
[Pages 11356-11358]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04504]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104927; File No. SR-24X-2026-05]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Exchange Rule 11.6(q)(1)
March 4, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on February 24, 2026, 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\ 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 amend Exchange Rule 11.6(q)(1) (``Round
Lot'') to conform with a recent amendment to the definition of round
lot under Rule 600 of Regulation NMS recently approved by the
Commission.\3\ 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.
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\3\ See Securities Exchange Act Release No. 101070 (September
18, 2024), 89 FR 81620 (October 8, 2024) (S7-30-22).
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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 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 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
The Exchange proposes to amend Rule 11.6(q)(1) (``Round Lot'') to
conform with the definition of round lot under Rule 600 of the
Regulation NMS that was implemented in November 2025.\4\ The Exchange
also proposes to make conforming non-substantive changes to Rule
11.20(d)(1) (``Continuous, Two-Sided Quote Obligation'').
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\4\ See supra note 4.
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In 2020, the Commission adopted amendments to Regulation NMS to
modernize the NMS information provided within the national market
system for the benefit of market participants and to better achieve
Section 11A's goals of assuring ``the availability to brokers, dealers,
and investors of information with respect to
[[Page 11357]]
quotations for and transactions in securities that is prompt, accurate,
reliable, and fair'' (``MDI Rules'').\5\ These changes included an
amendment to Rule 600 of Regulation NMS to include a definition of
``round lot'' that assigns each NMS stock to a round lot size based on
the stock's average closing price.\6\ Prior to this change, a ``round
lot'' was not defined in the Act or Regulation NMS. The definition of a
``round lot'' was included in the rules of the individual exchanges,
including Exchange Rule 11.6(q)(1), which defined a ``Round Lot'' as
100 shares or any multiple thereof, but the rules also generally
allowed the exchanges, or the primary listing exchange for the
security, discretion to define ``round lot'' otherwise.
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\5\ See Securities Exchange Act Release No. 90610 (December 9,
2020), 86 FR 18596 (April 9, 2021) (``MDI Adopting Release'').
\6\ See id.
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On September 18, 2024, the Commission accelerated the
implementation of the round lot definition.\7\ The Commission also
revised the round lot definition as set forth below.\8\ Rule 600(b)(93)
of Regulation NMS, as adopted by the MDI Rules and as amended in
2024,\9\ defines a round lot for NMS stocks \10\ that have an average
closing price on the primary listing exchange during the prior
Evaluation Period \11\ of: (1) $250.00 or less per share as 100 shares;
(2) $250.01 to $1,000.00 per share as 40 shares; (3) $1,000.01 to
$10,000.00 per share as 10 shares; and (4) $10,000.01 or more per share
as 1 share.\12\ For any security that becomes an NMS Stock during an
operative period, as described in Rule 600(b)(93)(iv),\13\ a round lot
is 100 shares. Adjustments to the round lot size for a security will
occur on a semiannual basis and the calculation of the average closing
price on the primary listing exchange will be based on a one month
``Evaluation Period.'' \14\ The revised definition of round lot was
implemented on November 3, 2025, the first business day of November
2025.\15\
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\7\ See supra note 4.
\8\ Id.
\9\ Id.
\10\ ``NMS stock'' is defined under Regulation NMS as any NMS
security other than an option. 17 CFR 242.600(b)(65).
\11\ Rule 600(b)(93)(iii) of Regulation NMS defines the
Evaluation Period as ``(A) all trading days in March for the round
lot assigned on the first business day in May and (B) all trading
days in September for the round lot assigned on the first business
day of November during which the average closing price of an NMS
stock on the primary listing exchange shall be measured by the
primary listing exchange to determine the round lot for each NMS
stock.''
\12\ See supra note 4.
\13\ Pursuant to Rule 600(b)(93)(iv) of Regulation NMS the round
lot assigned under the section ``shall be operative on (A) the first
business day of May for the March Evaluation Period and continue
through the last business day of October of the calendar year, and
(B) the first business day of November for the September Evaluation
Period and continue through the last business day of April of the
next calendar year.''
\14\ See supra note 4.
\15\ Id.
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The Exchange now proposes to amend Rule 11.6(q)(1) (``Round Lot'')
to conform with the definition of round lot under Rule 600 of
Regulation NMS. Exchange Rule 11.6(q)(1) provides that ``[o]ne hundred
(100) shares or any multiple thereof shall constitute a Round Lot,
unless an alternative number of shares is established as a Round Lot by
the listing exchange for the security.'' \16\ The Exchange now proposes
to replace this sentence with a sentence that explicitly refers to the
definition of round lot under Rule 600 of Regulation NMS. As a result,
the above sentence will be deleted and replaced with the following:
``[a] Round Lot for each NMS Stock shall be the size assigned by the
primary listing market pursuant to Rule 600 of Regulation NMS under the
Exchange Act.'' Again, this change is being proposed solely to conform
the Exchange's definition of ``Round Lot'' under Exchange Rule
11.6(q)(1) to the new definition of round lot under Rule 600 of
Regulation NMS.
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\16\ Rule 11.6(q)(1).
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The Exchange also proposes to make conforming non-substantive
changes to Rule 11.20(d)(1) ('' Continuous, Two-Sided Quote
Obligation''), which currently provides that ``[u]nless otherwise
designated, a `normal unit of trading' shall be 100 shares.'' \17\ The
Exchange proposes to replace the aforementioned sentence with a
sentence that conforms to the newly adopted definition of Round Lot in
the Exchange's Rulebook. As a result, the above sentence will be
deleted and replaced with the following: ``[u]nless otherwise
designated, a `normal unit of trading' shall be a Round Lot as defined
in Rule 11.6(q)(1).''
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\17\ Rule 11.20(d)(1).
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The purpose of these changes is to provide greater clarity to
Exchange Members \18\ and the public regarding the Exchange's Rulebook.
The Exchange does not propose any additional rule changes. The proposed
rule changes will be implemented immediately.
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\18\ See Rule 1.5(p). A ``Member'' is defined as ``any
registered broker or dealer that has been admitted to membership in
the Exchange.''
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2. Statutory Basis
The Exchange believes the proposed rule changes are consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\19\ Specifically, the Exchange believes the proposed rule changes
are consistent with the Section 6(b)(5) \20\ 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 changes
are consistent with the Section 6(b)(5) \21\ requirement that the rules
of an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\19\ 15 U.S.C. 78f(b).
\20\ 15 U.S.C. 78f(b)(5).
\21\ Id.
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The Exchange proposes to amend Rule 11.6(q)(1) (``Round Lot'') to
conform with the definition of round lot under Rule 600 of the
Regulation NMS that was implemented in November 2025.\22\ This change
is proposed solely to conform the Exchange's definition of ``Round
Lot'' under Rule 11.6(q)(1) to the new definition of round lot under
Rule 600 of Regulation NMS. The Exchange also proposes to make
conforming, non-substantive changes to Rule 11.20(d)(1) (``Continuous,
Two-Sided Quote Obligation'') to conform the rule with the Exchange's
new definition of round lot.
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\22\ See supra note 4.
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The proposed changes do not amend the operation of the affected
rules. The proposed rule changes would reduce potential investor and
market participant confusion and therefore remove impediments to and
perfect the mechanism of a free and open market and a national market
system by ensuring that the Exchange's rules properly reflect the
requirements of Rule 600 of Regulation NMS. The Exchange also believes
that the proposed rule changes would remove impediments to and perfect
the mechanism of a free and open market by ensuring that persons
subject to the Exchange's jurisdiction, regulators, and the investing
public can more easily navigate and understand the Exchange's rules.
The proposed rule changes would not be inconsistent with the public
interest or the protection of investors because investors will not be
harmed
[[Page 11358]]
and, in fact, would benefit from the increased transparency and
clarity, thereby reducing potential confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change to
amend the definition of round lot is not intended to address
competitive issues; rather, the proposed change is concerned solely
with amending the Exchange's rule to conform with the definition of
round lot under Rule 600 of Regulation NMS. The proposed rule change to
amend Exchange Rule 11.20(d)(1) to conform with the Exchange's
definition of round lot is conforming and non-substantive in nature,
and is not intended to address competitive issues.
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) of the Act \23\ and Rule 19b-4(f)(6) \24\ thereunder.
Because the foregoing proposed rule change does not: (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; or (iii) 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 \25\ and Rule 19b-4(f)(6) \26\ thereunder.
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\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f)(6).
\25\ 15 U.S.C. 78s(b)(3)(A).
\26\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange 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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A proposed rule change filed under Rule 19b-4(f)(6) \27\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\28\ the Commission
may designate a shorter time if such action is consistent with
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative upon filing. In the filing, the
Exchange stated that the waiver of the 30-day operative delay would
allow the Exchange to timely implement the proposed rule changes to
conform with the amendment to the definition of round lot under Rule
600 of Regulation NMS. The proposed rule change does not raise any
novel issues, as it merely amends the definition of round lot in
Exchange Rule 11.6(q)(1) to make it consistent with Rule 600 of
Regulation NMS and makes a conforming change to Exchange Rule 11.20 in
order to clarify its rules for the benefit of its members and other
market participants, and therefore, waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest. Accordingly, the Commission hereby waives the operative delay
and designates the proposal operative upon filing.\29\
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\27\ 17 CFR 240.19b-4(f)(6).
\28\ 17 CFR 240.19b-4(f)(6)(iii).
\29\ For purposes only of waiving the 30-day operative delay,
the Commission 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 change 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#bbc9ced7de96d8d4d6d6ded5cfc8fbc8ded895dcd4cd"><span class="__cf_email__" data-cfemail="dba9aeb7bef6b8b4b6b6beb5afa89ba8beb8f5bcb4ad">[email protected]</span></a>. Please include
file number SR-24X-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-24X-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 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-2026-05 and should be submitted on
or before March 30, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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\30\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-04504 Filed 3-6-26; 8:45 am]
BILLING CODE 8011-01-P
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