Notice2026-07486
Self-Regulatory Organizations: Long-Term Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend LTSE Fee Schedule To Modify Transaction Fees
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Published
April 17, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 74 (Friday, April 17, 2026)</title>
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[Federal Register Volume 91, Number 74 (Friday, April 17, 2026)]
[Notices]
[Pages 20739-20741]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07486]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105227; File No. SR-LTSE-2026-08]
Self-Regulatory Organizations: Long-Term Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend LTSE Fee Schedule To Modify Transaction Fees
April 14, 2026.
Pursuant to 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 March 31, 2026, Long-Term Stock Exchange, Inc. (``LTSE'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``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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[[Page 20740]]
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
to modify transaction fees applicable to securities priced below $1.00.
The Exchange proposes to implement the changes to the fee schedule
pursuant to this proposal on April 1, 2026.
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 Schedule of Fees to reduce the
transaction fee for removing liquidity in securities priced below $1.00
via a new program called the Sub-Dollar Incentive Program (``SDIP'').
Currently, LTSE charges a fee of 0.20% of TDV for removing both
displayed and non-displayed liquidity in securities priced below
$1.00.\3\ The Exchange now proposes to reduce this fee to 0.00% of TDV.
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\3\ See the Exchange's Schedule of Fees available on its website
at: <a href="https://cdn.prod.website-files.com/6462417e8db99f8baa06952c/69a703be63c2891f46cae82a_LTSE%20Fee%20Schedule_February%2C%201%202026%20">https://cdn.prod.website-files.com/6462417e8db99f8baa06952c/69a703be63c2891f46cae82a_LTSE%20Fee%20Schedule_February%2C%201%202026%20</a>(Formatting%20updated%202.2.2026).docx.pdf.
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Through SDIP, the Exchange seeks to incentivize interaction in
these lower-priced securities to improve price discovery, remove
friction while creating and exiting trading positions, and increase
overall execution volume. By eliminating taker fees in these
securities, the Exchange will reduce transaction costs for liquidity
takers, encouraging greater order flow and increased interaction with
displayed liquidity.
Increased interaction with displayed liquidity is expected to
incentivize market participants to compete more aggressively to provide
liquidity in these securities. The Exchange believes that this
increased competition among liquidity providers will result in tighter
bid-ask spreads, increased depth of book, and improved price discovery.
Importantly, the Exchange is not proposing to change its existing
liquidity provider rebates in securities priced below $1.00. By
maintaining the incentives available to liquidity providers while
eliminating fees for liquidity takers, the Exchange seeks to promote a
more balanced and efficient market structure in which both liquidity
provision and liquidity interaction are encouraged.
The Exchange believes that this approach strengthens overall market
quality by promoting fair and efficient execution. Investors,
particularly retail investors and institutional market participants,
benefit from more competitive pricing, lower execution costs, and
reduced market impact. These benefits are consistent with the
Exchange's broader objective of fostering a robust and competitive
exchange eco-system.
The Exchange also notes that it operates in a highly competitive
environment in which market participants can readily direct order flow
to competing venues. The proposed change is designed to enhance the
Exchange's competitiveness in lower-priced securities by reducing
transaction costs and encouraging increased participation.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\4\ in general, and furthers the objectives of Section
6(b)(4) of the Act,\5\ 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,\6\ 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. The
Exchange also believes that the proposed rule change is reasonable,
fair and equitable, and non-discriminatory.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
\6\ 15 U.S.C. 78f(b)(5).
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Section 6(b)(4) requires that exchange fees be reasonable and
equitably allocated. The Exchange believes the proposed fee change is
reasonable because it reduces transaction costs for liquidity takers in
securities priced below $1.00, thereby encouraging increased order flow
and execution activity. By removing taker fees in these securities, the
Exchange reduces friction associated with entering and exiting trading
positions, which is expected to increase overall volume.
The Exchange further believes that the proposal is an equitable
allocation of fees because it applies uniformly to all Members trading
securities priced below $1.00 and does not impose disparate fees among
similarly situated participants. In addition, the Exchange believes the
proposed fee structure is reasonable because it maintains existing
incentives for liquidity providers while eliminating costs for
liquidity takers. This balanced approach is designed to enhance overall
market quality by encouraging both the provision of liquidity and
interaction with that liquidity.
Section 6(b)(5) requires that exchange rules promote just and
equitable principles of trade, remove impediments to a free and open
market, and protect investors and the public interest. The Exchange
believes the proposed rule change removes impediments to and perfects
the mechanism of a free and open market by reducing transaction costs
in lower-priced securities and encouraging increased interaction with
displayed liquidity. By lowering barriers to trading, the proposal is
expected to increase participation, improve execution quality, and
enhance price discovery.
The Exchange further believes that the proposal promotes just and
equitable principles of trade by fostering competition among liquidity
providers. As liquidity takers are incentivized to interact more
frequently with displayed quotes, liquidity providers are expected to
compete more aggressively on price and size, resulting in tighter
spreads and increased display depth.
The Exchange believes that these outcomes directly benefit
investors by improving execution quality, reducing trading costs, and
minimizing market impact. The proposal is not unfairly discriminatory
because it applies equally to all Members and market
[[Page 20741]]
participants trading securities priced below $1.00.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\7\ 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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\7\ 15 U.S.C. 78f(b)(8).
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The Exchange operates in a highly competitive environment in which
it must continually adjust its pricing to attract order flow. The
proposed reduction in taker fees is designed to enhance the Exchange's
competitiveness for trading in lower priced securities.
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 \8\ and
paragraph (f)(2) of Rule 19b-4 thereunder.\9\ Accordingly, the proposed
rule change would take effect upon filing with the Commission.
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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 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#4d3f382128602e2220202823393e0d3e282e632a223b"><span class="__cf_email__" data-cfemail="1a686f767f37797577777f746e695a697f79347d756c">[email protected]</span></a>. Please include
file number SR-LTSE-2026-08 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-2026-08. 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-LTSE-2026-08 and should be submitted on
or before May 8, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-07486 Filed 4-16-26; 8:45 am]
BILLING CODE 8011-01-P
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