Notice2026-05012
Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Transaction Rebates Applicable to Members of the Exchange
Primary source
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Published
March 16, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 50 (Monday, March 16, 2026)</title>
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[Federal Register Volume 91, Number 50 (Monday, March 16, 2026)]
[Notices]
[Pages 12634-12637]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05012]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104976; File No. SR-24X-2026-06]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Amend
the Transaction Rebates Applicable to Members of the Exchange
March 11, 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 26, 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, 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 proposes to amend the transaction rebates applicable
to Members \3\ of the Exchange pursuant to Exchange Rule 15.1(a) and
(c). 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 Exchange Rule 1.5(u).
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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 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
The Exchange proposes to amend the transaction rebates applicable
to Members of the Exchange. Specifically, the Exchange proposes the
following: (i) to increase the rebate for executions of orders that
that are displayed on the 24X Book \4\ and add liquidity to the
Exchange (``Added Displayed Volume'') in all securities traded on the
Exchange priced at or above $1.00 per share from $0.00295 per share to
$0.0034 per share, and (ii) to decrease the rebate for executions of
orders that are not displayed on the 24X Book, add liquidity to the
Exchange, and include a Midpoint Peg instruction (``Added Midpoint'')
in all securities traded on the Exchange priced at or above $1.00 per
share from $0.00295 per share to $0.0025 per share, and in all
securities traded on the Exchange priced below $1.00 per share from
0.075% of total dollar value to 0.065% of total dollar value.
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\4\ ``24X Book'' refers to the Exchange system's electronic file
of orders. See Exchange Rule 1.5(a).
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The proposed increased rebate for Added Displayed Volume
transactions and decreased rebates for Added Midpoint transactions are
consistent with or higher than the rebates provided by other exchanges
for similar executions,\5\ and are intended to
[[Page 12635]]
incentivize Members to increase the liquidity-providing orders they
submit to the Exchange, which would support price discovery on the
Exchange and provide additional liquidity for incoming orders.
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\5\ See Cboe EDGA Exchange, Inc. (``Cboe EDGA'') fee schedule,
available at: <a href="https://www.cboe.com/us/equities/membership/fee_schedule/edga/">https://www.cboe.com/us/equities/membership/fee_schedule/edga/</a>; MIAX PEARL, LLC (``MIAX Pearl'') fee schedule,
available at: <a href="https://www.miaxglobal.com/sites/default/files/fee_schedule-files/MIAX_Pearl_Equities_Fee_Schedule_08012025.pdf">https://www.miaxglobal.com/sites/default/files/fee_schedule-files/MIAX_Pearl_Equities_Fee_Schedule_08012025.pdf</a>;
and NYSE Texas, Inc. (``NYSE Texas'') fee schedule, available at:
<a href="https://www.nyse.com/publicdocs/nyse/markets/nyse-texas/NYSE_Texas_Fee_Schedule.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse-texas/NYSE_Texas_Fee_Schedule.pdf</a>; MEMX LLC (``MEMX'') fee schedule,
available at: <a href="https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/">https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/</a>.
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The proposed rule change does not include different rebates
depending on the number of orders submitted to, or transactions
executed on or through, the Exchange. Accordingly, the rebates
described above are applicable to all Members, regardless of the
overall volume of a Member's trading activities on the Exchange.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \6\ of the Act in general, and
furthers the objectives of Section 6(b)(4) \7\ of the Act in
particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees, and other charges among its
Members and other persons using its facilities. Additionally, the
Exchange believes that the proposed amended rebates are consistent with
the objectives of Section 6(b)(5) \8\ of the Act in that they are
designed 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 national market
system, and, in general, to protect investors and the public interest,
and, particularly, are not designed to permit unfair discrimination
between customers, issuers, brokers, or dealers.
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\6\ 15 U.S.C. 78f.
\7\ 15 U.S.C. 78f(b)(4).
\8\ 15 U.S.C. 78f(b)(5).
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The Exchange operates in a highly competitive market in which
market participants can readily direct order flow to competing venues
if they deem fee levels at a particular venue to be excessive or
incentives to be insufficient. The Exchange believes that the proposed
amended rebates reflect a simple and competitive pricing structure
designed to incentivize market participants to add aggressively priced
displayed liquidity and direct their order flow to the Exchange, which
the Exchange believes would promote price discovery and price formation
and deepen liquidity that is subject to the Exchange's transparency,
regulation, and oversight as an exchange, thereby enhancing market
quality to the benefit of all Members and investors.
The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues, and also recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \9\
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\9\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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As illustrated in the following table, the Exchange notes that the
proposed amended rebates are comparable to those in place on other
exchanges: \10\
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\10\ See supra note 6. If a particular exchange provides
different rebates depending on transaction volume, the highest
available rebate is included in the above table.
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Rebate for added
Exchange displayed volume Rebate for added Rebate for added midpoint
>=$1.00 midpoint >=$1.00 <$1.00
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24X.................................... ($0.0034) ($0.0025) (0.065% of total dollar
value).
Cboe EDGA.............................. (0.0027) (0.0025) (0.15% of total dollar
value).
MIAX Pearl............................. (0.00335) (0.0029) (0.15% of total dollar
value).
NYSE Texas............................. (0.0029) (0.0014) (0.10% of total dollar
value).
MEMX................................... (0.0033) (0.0028) (0.15% of total dollar
value).
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The Exchange believes that it is appropriate, reasonable, and
consistent with the Act to provide a rebate of $0.0034 for Added
Displayed Volume transactions because it is comparable to the
transaction rebates provided by other exchanges for similar
transactions.\11\ The Exchange further believes that this rebate is
equitably allocated and not unfairly discriminatory because it applies
equally to all Members, and is designed to facilitate increased
activity on the Exchange to the benefit of all Members by providing
more trading opportunities and promoting price discovery.
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\11\ Id.
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The Exchange believes that it is appropriate, reasonable, and
consistent with the Act to provide a rebate of $0.0025 for Added
Midpoint transactions in securities priced at or above $1.00 per share
and a rebate of 0.065% of total dollar value for Added Midpoint
transactions in securities priced below $1.00 per share because those
rebates are also comparable to rebates provided by other exchanges for
similar transactions.\12\ The Exchange further believes that this
rebate structure is equitably allocated and not unfairly discriminatory
because it applies equally to all Members.
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\12\ Id.
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The Exchange notes that under the proposed amended rebate
structure, it will pay a greater rebate for Added Displayed Volume than
the fee it charges for removing such volume, and as such the Exchange
will have negative net capture with respect to such transactions. As
noted above, the Exchange operates in a highly competitive market, and
the Exchange believes this pricing structure will enable it to
effectively compete with other exchanges by attracting Members and
order flow to the Exchange, which will help the Exchange to gain market
share for executions. The Exchange may determine to modify its pricing
structure after it has gained sufficient participation from market
participants to instead be profitable with respect to such
transactions. The Exchange believes this pricing structure, including
the negative net capture for Added Displayed Volume transactions, is
designed to incentivize market participants to add aggressively priced
displayed liquidity and direct their order flow to the Exchange, which
the Exchange believes would promote price discovery, price formation,
and narrower spreads, and deepen liquidity that is subject to the
Exchange's transparency, regulation, and oversight as an exchange,
thereby enhancing market quality to the benefit of all Members and
investors. The Exchange does not believe that the negative net capture
with respect to Added Displayed Volume transactions will materially
impact the capitalization of
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the Exchange or otherwise impair the Exchange's ability to operate or
regulate itself. The Exchange is well-capitalized and the Exchange's
parent company, 24X US Holdings LLC, has agreed to provide adequate
funding for the Exchange's operations, including the regulation of the
Exchange.
In conclusion, the Exchange submits that its proposed amended
rebate structure satisfies the requirements of Sections 6(b)(4) \13\
and 6(b)(5) \14\ of the Act for the reasons discussed above in that it
provides for the equitable allocation of reasonable dues, fees, and
other charges among its Members and other persons using its facilities,
does not permit unfair discrimination between customers, issuers,
brokers, or dealers, and is 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 in general
to protect investors and the public interest, particularly as the
proposal neither targets nor will it have a disparate impact on any
particular category of market participant. As described more fully
below in the Exchange's statement regarding the burden on competition,
the Exchange is subject to significant competitive forces, and believes
that its proposed amended rebate structure is an appropriate effort to
address such forces.
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\13\ 15 U.S.C. 78f(b)(4).
\14\ 15 U.S.C. 78f(b)(5).
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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
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Rather, as
discussed above, the Exchange believes that the proposed changes would
encourage the submission of order flow to a public exchange, thereby
promoting market depth, execution incentives, and enhanced execution
opportunities, as well as price discovery and transparency for all
Members. As a result, the Exchange believes that the proposed changes
further the Commission's goal in adopting Regulation NMS of fostering
competition among orders, which promotes ``more efficient pricing of
individual stocks for all types of orders, large and small.'' \15\
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\15\ Regulation NMS Adopting Release at 37499.
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The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. To the contrary,
the Exchange believes that the proposed amended pricing structure will
increase competition and is intended to draw volume to the Exchange.
The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
shift order flow or reduce use of certain categories of products in
response to new or different pricing structures being introduced into
the market. Accordingly, competitive forces constrain the Exchange's
transaction fees and rebates, and market participants can readily trade
on competing venues if they deem pricing levels at those other venues
to be more favorable. As a new exchange, the Exchange faces intense
competition from existing exchanges and other non-exchange venues that
provide markets for equities trading. With respect to the Exchange's
proposal to operate with negative net capture for transactions
involving Added Displayed Volume, the Exchange is proposing this
pricing in an effort to encourage market participants to join, connect
to, and participate on the Exchange. The Exchange may modify its
pricing structure after it has gained sufficient participation from
market participants to eliminate the negative net capture and instead
be profitable with respect to such transactions.
Although these pricing incentives are intended to attract liquidity
to the Exchange, most other exchanges in operation today already offer
multiple incentives to their participants, including tiered pricing
that provides higher rebates or discounted executions, and other
exchanges will be able to modify such incentives in order to compete
with the Exchange. As discussed above, the Exchange notes that the
proposed amended rebates are comparable to those in place on other
exchanges. Accordingly, with respect to a market participant deciding
to submit an order to add liquidity, there are multiple exchanges that
will continue to be competitively priced for such orders when compared
to the Exchange's pricing. Further, while pricing incentives do cause
shifts of liquidity between trading centers, market participants make
determinations on where to provide liquidity or route orders to take
liquidity based on factors other than pricing, including technology,
functionality, and other considerations. Consequently, the Exchange
believes that the degree to which its proposed amended rebates could
impose any burden on competition is extremely limited, and does not
believe that such pricing structure would burden competition of Members
or competing venues in a manner that is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange does not believe that the proposed rule change will
impose any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed amended rebates apply equally to all Members. The proposed
pricing structure is intended to encourage market participants to add
displayed liquidity on the Exchange by providing rebates that are
comparable to those offered by other exchanges, which the Exchange
believes will help to encourage Members to send orders to the Exchange
to the benefit of all Exchange participants. As the proposed rates are
equally applicable to all market participants, the Exchange does not
believe there is any burden on intramarket competition.
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 foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \16\ of the Act and subparagraph (f)(2) of Rule 19b-4
thereunder,\17\ because it establishes a due, fee, or other charge
imposed by the Exchange. 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 under Section 19(b)(2)(B) \18\ of the Act to
determine whether the proposed rule change should be approved or
disapproved.
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f)(2).
\18\ 15 U.S.C. 78s(b)-(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
[[Page 12637]]
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#e496918881c9878b8989818a9097a4978187ca838b92"><span class="__cf_email__" data-cfemail="2755524b420a44484a4a424953546754424409404851">[email protected]</span></a>. Please include
file number SR-24X-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-24X-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 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-2026-06 and
should be submitted on or before April 6, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2026-05012 Filed 3-13-26; 8:45 am]
BILLING CODE 8011-01-P
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