Notice2026-07783
Consolidated Tape Association; Notice of Filing of Amendment No. 1, and Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Fortieth Substantive Amendment to the Second Restatement of the CTA Plan and Thirty-First Substantive Amendment to the Restated CQ Plan, as Modified by Amendment No. 1 Thereto, To Extend the Processor's Hours of Operation
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
April 22, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 77 (Wednesday, April 22, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 77 (Wednesday, April 22, 2026)]
[Notices]
[Pages 21563-21573]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07783]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105269; File No. SR-CTA/CQ-2026-01]
Consolidated Tape Association; Notice of Filing of Amendment No.
1, and Order Instituting Proceedings To Determine Whether To Approve or
Disapprove the Fortieth Substantive Amendment to the Second Restatement
of the CTA Plan and Thirty-First Substantive Amendment to the Restated
CQ Plan, as Modified by Amendment No. 1 Thereto, To Extend the
Processor's Hours of Operation
April 17, 2026.
I. Introduction
On January 12, 2026,\1\ the Participants \2\ in the Second
Restatement of the Consolidated Tape Association Plan (``CTA Plan'')
and the Restated Consolidated Quotation Plan (``CQ Plan'')
(collectively ``CTA/CQ Plans'' or ``Plans'') filed with the Securities
and Exchange Commission (``SEC'' or ``Commission''), pursuant to
Section 11A of the Securities Exchange Act of 1934 (``Exchange Act'')
\3\ and Rule 608(a) of Regulation National Market System (``NMS'')
thereunder,\4\ a proposal to amend the Plans to extend the Processor's
\5\ hours of operation (``Extended Hours Proposal''). The Extended
Hours Proposal represents the Fortieth Substantive Amendment to the CTA
Plan and the Thirty-First Substantive Amendment to the CQ Plan. The
Extended Hours Proposal was published for comment in the Federal
Register on January 27, 2026.\6\ No comment letters were received.
---------------------------------------------------------------------------
\1\ See Letter from Jeff Kimsey, Chair, CTA/CQ Plans Operating
Committee, to Vanessa Countryman, Secretary, Commission (Jan. 12,
2026). The Participants also filed amendments to 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. See also, Letter from Jeff Kimsey, Chair, UTP Plan
Operating Committee, to Vanessa Countryman, Secretary, Commission
(Jan. 12, 2026).
\2\ The Participants are: 24X National Exchange LLC, Cboe BYX
Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc.,
Cboe EDGX Exchange, Inc., Cboe Exchange, Inc., Financial Industry
Regulatory Authority, Inc., Investors' Exchange LLC, Long Term Stock
Exchange, Inc., MEMX LLC, MIAX PEARL, LLC, Nasdaq BX, Inc., Nasdaq
ISE, LLC, Nasdaq PHLX LLC, The Nasdaq Stock Market LLC, New York
Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc., NYSE
National, Inc., and NYSE Texas, Inc.
\3\ 15 U.S.C. 78k-1.
\4\ 17 CFR 242.608(a).
\5\ Section I. of the CTA Plan defines Processor as the
organization designated as recipient and processor of last sale
price information furnished by Participants pursuant to the CTA
Plan, as described in Section V. of the CTA Plan. Section I of the
CQ Plan defines Processor as the organization designated as
recipient and processor of quotation information furnished by
Participants pursuant to the CQ Plan, as described in Section V. of
the CQ Plan. Capitalized terms that are not defined herein are
defined in the Plans.
\6\ See Securities Exchange Act Release No. 104665 (Jan. 22,
2026), 91 FR 3602 (``Notice'').
---------------------------------------------------------------------------
On April 7, 2026, the Participants filed an amendment to the
Extended Hours Proposal (``Amendment No. 1''), which amended and
superseded the Extended Hours Proposal in its entirety, as set forth in
Item II.B.\7\ The Commission is publishing this notice to solicit
comments on the Extended Hours Proposal, as modified by Amendment No.
1, and is instituting proceedings, under Rule 608(b)(2)(i) of
Regulation NMS,\8\ to determine whether to approve or disapprove the
Extended Hours Proposal, as modified by Amendment No. 1, or to approve
the Extended Hours Proposal, as modified by Amendment No. 1, with any
changes or subject to any conditions the Commission deems necessary or
appropriate.
---------------------------------------------------------------------------
\7\ See Letter from Jeff Kimsey, Chair, CTA/CQ Plans Operating
Committee, to Vanessa Countryman, Secretary, Commission (Apr. 7,
2026).
\8\ 17 CFR 242.608(b)(2)(i).
---------------------------------------------------------------------------
II. Extended Hours Proposal
A. Summary of Notice Published January 27, 2026
The Participants proposed to amend the Plans to extend the
Processor's hours of operation to receive and disseminate quotation
information, last sale price information, and related information in
Eligible Securities from 9:00 p.m. Eastern Time (``ET'') Sunday to 8:00
p.m. ET Friday; provided, however, that the Processor will pause
operations at 8:00 p.m. ET on Monday through Thursday for one hour to
accommodate technical refreshes for the Processor, Participants, and
other market participants.\9\ In the event of a holiday where U.S.
markets are closed, the Processor would not operate from 8:00 p.m. ET
the day before the holiday through 9:00 p.m. ET the day of the
holiday.\10\ The Processor would consider a trade date to start at 8:00
p.m. ET on the day before Regular Trading
[[Page 21564]]
Hours begin and end at 8:00 p.m. ET on the same day as when Regular
Trading Hours begin.\11\ Other than extending the hours of operation,
the Processor will operate as it currently does.\12\
---------------------------------------------------------------------------
\9\ See Notice, supra note 6, at 3602.
\10\ See id. at 3603.
\11\ See id.
\12\ See id. at 3602.
---------------------------------------------------------------------------
As proposed, Participants that utilize the extended hours would be
required to pay for the development and operating costs and expenses
which are incurred by the Processor to accommodate the extended
hours.\13\ Participants that utilize the extended hours at a later time
would be required to pay a proportionate share of the aggregate
development costs previously paid by other Participants, and contribute
to the operating costs from the point at which it begins operating
during the extended hours.\14\
---------------------------------------------------------------------------
\13\ See id. at 3603.
\14\ See id.
---------------------------------------------------------------------------
B. Notice and Description of Amendment No. 1
Set forth in this Section II.B. is the description of the proposed
Amendment No. 1, along with information required by Rules 601(a) and
608(a) under the Exchange Act,\15\ as prepared and submitted by the
Participants to the Commission.\16\ Set forth in Exhibit A and Exhibit
B is the text of the Amendment No. 1 marked to show the proposed
changes to the respective Plans, as prepared and submitted by the
Participants.
---------------------------------------------------------------------------
\15\ See 17 CFR 242.601(a); 242.608(a).
\16\ See Amendment No. 1, supra note 7.
---------------------------------------------------------------------------
(a) Rule 608(a)
1. Purpose of the Amendments
The purpose of the amendments is to extend the Processor's hours of
operation to receive and disseminate quotation information, last sale
price information, and related information in Eligible Securities from
9:00 p.m. ET Sunday to 8:00 p.m. ET Friday; provided, however, that the
Processor will pause operations at 8:00 p.m. ET on Monday through
Thursday for an hour to accommodate technical refreshes for the
Processor, Participants, and other market participants.
As background, a number of Participants have recently proposed
extending their hours of operation.\17\ Those proposals provided for
trading days of varying lengths (e.g., 23 hours versus 22 hours) along
with hours of operation that did not overlap. Further, under those
proposals, the extended trading hours could not be implemented unless
the Equity Data Plans \18\ (1) established a mechanism to collect,
consolidate, process and disseminate quotation and transaction
information at all times during the extended trading hours that is
equivalent to the mechanism established for Regular Trading Hours; \19\
and (2) notified the relevant exchanges of their readiness.
---------------------------------------------------------------------------
\17\ See, e.g., Securities Exchange Act Release No. 34-101777
(Nov. 27, 2024), 89 FR 97092 (Dec. 6, 2024) (File No. 10-242 (24X));
Securities Exchange Act Release No. 34-102400 (Feb. 11, 2025), 90 FR
9794 (Feb. 18, 2025) (SR-NYSEARCA-2024-89).
\18\ The ``Equity Data Plans'' are collectively 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 (the ``UTP Plan''), the CQ Plan, the CTA Plan, and
the CT Plan LLC.
\19\ The Participants propose amending the Plans to include a
definition of ``Regular Trading Hours,'' cross-referencing the
definition in Rule 600 of Regulation NMS of the Exchange Act.
---------------------------------------------------------------------------
Following the approval of some of those individual Participant
proposals by the SEC, all the Participants have worked jointly to
outline a plan for the collection, consolidation, processing, and
dissemination of quotation and transaction information during the
extended hours proposed by the Participants. Following extensive
discussions among the Participants and the Advisory Committee of the
UTP Plan and the Plans, the Participants have developed the proposal
contained herein (``Proposal'') to implement hours of operation to be
set as close as technologically feasible to 24 hours per day, as well
as agreed to particular hours of operation.
With respect to the hours of operation, the Participants have
agreed to operate from 9:00 p.m. ET Sunday to 8:00 p.m. ET Friday;
provided, however, that the Processor would pause operations at 8:00
p.m. ET on Monday through Thursday for an hour to accommodate technical
refreshes for the Processor, Participants, and other market
participants. In the event of a holiday where U.S. markets are closed,
the Processor would not operate from 8:00 p.m. ET the day before the
holiday through 9:00 p.m. ET the day of the holiday. For example, if
the markets are closed for a holiday on a Thursday, then the Processors
would not operate from 8:00 p.m. ET on Wednesday to 9:00 p.m. ET on
Thursday. With respect to a holiday where U.S. markets close early the
day before the holiday (and because on such early close days, late
trading sessions end at 5:00 p.m. ET), the Processor will not operate
from 5:00 p.m. ET the day before the holiday through 9:00 p.m. ET the
day of the holiday.
With respect to the pause from 8:00 p.m. ET to 9:00 p.m. ET on
Monday through Thursday, the Processor would endeavor to reduce the
length of the pause where technically feasible. In the event the length
of the pause is reduced, the Operating Committee would amend the Plans
and notify the industry of the reduction at least 90 days prior to
implementation of a reduction. The Participants determined that having
a pause at 8:00 p.m. ET would lessen the cost, complexity, and burden
of designing a system that did not have a pause. In particular, if the
Processor did not pause at 8:00 p.m. ET, the design would have required
designing, funding, and building a duplicate system to handle a 24-hour
trading session as the Processor's systems require at least some
downtime for system refreshes. Further, the Participants understand
that other market participants would consider the proposed pause useful
to refresh their own systems prior to beginning the next day's trading
session.\20\
---------------------------------------------------------------------------
\20\ Although there may be certain days where a pause will not
be required for a refresh, the Participants believe that it will
reduce confusion and complexity to have the Processor open at the
same time each trading day.
---------------------------------------------------------------------------
With respect to when a trade date starts and ends, the Processor
would consider a trade date to be between \21\ 8:00 p.m. ET on the day
before Regular Trading Hours begin and 8:00 p.m. ET on the same day as
when Regular Trading Hours begin.\22\ In other words, Wednesday's
trading day would be between 8:00 p.m. ET on Tuesday and 8:00 p.m. ET
on Wednesday. The Participants believe that having the start of a trade
date prior to the opening of markets would reduce complexity and burden
as the alternative would have required a new trading date to start in
the middle of a trading session (i.e., at midnight). Additionally, the
Participants believe that starting the trading date at the specified
time would align with current practice for venues already trading
during the proposed extended hours.
---------------------------------------------------------------------------
\21\ As part of this Amendment No. 1, the Participants have
modified the language from the original filing. Specifically,
instead of stating that a trade date starts and ends at particular
times, the Plan language now states that the trade date is between
particular times. This language is consistent with how the UTP Plan
describes hours of operation and avoids the issue of overlapping
trade dates at 8:00 p.m. ET.
\22\ Setting the start of the trading day in this amendment is
only applicable to the operation of the Processor. The Operating
Committee does not have the authority to set the start of the
trading day for rules and regulations that might be dependent on
when a trading day begins.
---------------------------------------------------------------------------
Consistent with current practice for existing hours of operation,
the Participants have agreed to the following provisions regarding the
Processor's operation during extended trading hours:
[[Page 21565]]
<bullet> For transactions reported outside the hours of 9:30 a.m.
ET and 4:00 p.m. ET, such transactions will be designated as ``.T''
trades to denote their execution outside normal market hours.\23\
---------------------------------------------------------------------------
\23\ This language is consistent with current UTP Plan
provisions and current Processor specifications.
---------------------------------------------------------------------------
<bullet> Late trades will be reported in accordance with the rules
of the Participant in whose market the transaction occurred and can be
reported at any time the Processor is able to receive last sale price
information.\24\
---------------------------------------------------------------------------
\24\ This language is consistent with current UTP Plan
provisions and current Processor specifications.
---------------------------------------------------------------------------
<bullet> Transactions reported outside the hours of 9:30 a.m. ET
and 4:00 p.m. ET will be included in the calculation of total trade
volume for purposes of determining net distributable operating revenue,
but will not be included in the calculation of the daily high, low, or
last sale.
<bullet> Quote Credits may be earned only in connection with
quotations transmitted by a Participant to the Processor during Regular
Trading Hours.
Consistent with the current language of the Plans,\25\ the
Participants have agreed that only Participants that utilize the
extended hours described herein would be required to pay for the
development and operating costs and expenses which would not have been
incurred by the Processor had it not made the changes described herein.
Further, the Participants have agreed that to the extent any additional
Participant begins utilizing the extended hours described herein at a
later time, such additional Participant will be required to pay a
proportionate share of the aggregate development costs previously paid
by other Participants. The Participants agree that such additional
Participant will contribute to the operating costs of the extended
operating hours from the point at which it begins utilizing the
extended hours, but that previously-incurred operating costs will not
be reapportioned when a Participant begins utilizing the extended
hours.
---------------------------------------------------------------------------
\25\ Although the approach is consistent with the current
language of the Plans, the Participants have proposed revisions to
the language to improve readability and align the language with the
proposed language in the UTP Plan.
---------------------------------------------------------------------------
As part of the amendments, the Participants have proposed moving
existing language related to costs and making minor changes for
readability.\26\ This existing language in the CQ Plan referred to
additional expenses related to operation outside 9:00 a.m. ET and 6:30
p.m. ET; however, the Participants already operate outside of this time
period and there are no additional expenses to allocate from the
Processor's operation outside of this time period based on current
operations. The extended hours proposed herein, however, will result in
additional expenses that will need to be allocated. Consequently, the
Participants propose updating the current allocation language to focus
solely on the extended hours proposed herein.
---------------------------------------------------------------------------
\26\ The Participants have proposed amendments to the UTP Plan
to implement the cost allocation methodology described herein. The
UTP Plan already contains provisions relating to the allocation of
development costs for technical enhancements made at the request of
a Participant and solely for its use; however, unlike the Plans, the
UTP Plan is silent on the allocation of operating costs. See UTP
Plan, Section XIII.A.; CQ Plan Section VIII.(b); CTA Plan Section
XI.(b). The amendments to the UTP Plan would eliminate the current
inconsistency between the UTP Plan and the Plans on the issue of
cost allocation for such system enhancements, enhance the
transparency of the Equity Data Plans as to how such costs will be
borne and divided, and eliminate potential conflicts in the future
among Participants about their individual financial responsibility
for the enhancements described in this Proposal. The fact that the
current Equity Data Plans will shortly be supplanted by the CT Plan
does not eliminate the need to amend the cost allocations of the
current UTP and CTA/CQ Plans as proposed here. Subject to SEC
approval and Processor readiness, and satisfaction of market
conditions to support extended hours of operation as discussed
above, the Participants are working to make extended trading hours
available in December 2026, before the CT Plan will become
operative.
---------------------------------------------------------------------------
The Participants believe that the proposed allocation of the
incremental development and operating costs associated with the
extended hours is consistent with the Exchange Act because it reflects
a reasonable, cost-causation-based approach that is designed to promote
the economically efficient operation of the Plans while avoiding
unreasonable discrimination. Specifically, the amendments provide that
only those Participants that elect to utilize the extended hours will
bear the development costs and operational expenses that would not have
been incurred absent the extended-hours functionality, thereby avoiding
imposing costs on Participants that do not use (and do not benefit
from) the extended-hours capability. In addition, requiring a
Participant that begins utilizing the extended hours at a later date to
pay a proportionate share of previously incurred development costs is
designed to prevent free-riding and to treat similarly situated
Participants in a comparable manner.
2. Governing or Constituent Documents
No changes as a result of amendments.
3. Implementation of Amendments
All of the Participants have manifested their approval of the
proposed amendments by means of their execution of the Plans. The
Participants also solicited the Advisory Committee for its thoughts and
any comments on the amendments.
If these amendments are approved by the Commission, the amendments,
including the proposed changes to the language of the Plans, will not
become operative until the Operating Committee determines that market
conditions will support the extended hours of operation. The specific
market conditions to be considered by the Operating Committee include,
but are not limited to, the following:
<bullet> Depository Trust & Clearing Corporation (``DTCC'') offers
clearing during the extended hours of operation.\27\
---------------------------------------------------------------------------
\27\ Based on publicly available information, DTCC will support
the extended hours by the second quarter of 2026.
---------------------------------------------------------------------------
<bullet> The Processor has implemented changes to symbol directory
messages as specified in a previously approved change request, which
requires the Processors to disseminate specified reference information
for Eligible Securities in symbol directory messages.
<bullet> Listing markets are able to support the changes to the
symbol directory messages, including corporate actions information.
<bullet> The Processor will be able to disseminate all quotes and
trades, including off-exchange trades, during the extended trading
hours.
The Processors and listing markets anticipate meeting the final
three requirements before the planned December 6, 2026 launch of the
extended hours.
The Participants request the SEC determine whether dissemination of
real-time Trade Reporting Facility (``TRF'') information outside of
Regular Hours is a prerequisite for implementation.
4. Development and Implementation Phases
The Operating Committee expects that the implementation of the
amendment will occur on December 6, 2026. Prior to the implementation,
the Processor will announce testing dates.
5. Analysis of Impact on Competition
The amendments proposed herein do not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Securities Exchange Act of 1934 (the ``Act'') because
the amendments
[[Page 21566]]
implement the extended trading hours as approved by the Commission as
part of proposals by the Participants. Similarly, the Participants do
not believe that the proposed amendments introduce terms that are
unreasonably discriminatory for the purposes of Section 11A(c)(1)(D) of
the Act because the amendments implement the extended trading hours as
approved by the Commission as part of proposals by the Participants.
Additionally, the implementation decisions were made after
extensive discussion among the Participants (including those with
pending proposals to offer extended trading hours) as well as the
Advisory Committee. The amendments were designed with a view to
maximizing industry benefit while being agnostic to current proposals
from Participants. While certain specific aspects of the amendments
differ from the proposals by the Participants, the Participants have
agreed to these changes after discussing the practicality of
implementing extended trading hours. The Participants do not believe
that the design choices discussed herein impose a burden on competition
because the Participants have developed an approach that minimizes
downtime of the system while also ensuring that the Processor, the
Participants, and other market participants have the opportunity to
refresh their systems during the pause prior to the start of a trading
day. The Participants believe that implementing the pause will minimize
the technological burden of the expanded trading hours.
6. Written Understanding or Agreements Relating to Interpretation of,
or Participation in, Plan
No changes as a result of amendments.
7. Approval by Sponsors in Accordance With Plan
Section IV.(c)(i) of the CQ Plan and Section IV.(b)(i) of the CTA
Plan require the Participants to unanimously approve the amendments
proposed herein. They have so approved it as of the date specified in
the below amendments.
8. Description of Operation of Facility Contemplated by the Proposed
Amendment
Other than extending the hours of operations, the Processor will
operate as it currently does.
9. Terms and Conditions of Access
No changes as a result of amendments.
10. Method of Determination and Imposition, and Amount of, Fees and
Charges
Consistent with the current language of the Plans, the Participants
have agreed that only Participants that utilize the extended hours
described herein would be required to pay for the development and
operating costs and expenses which would not have been incurred by the
Processor had it not made the changes described herein. Further, the
Participants have agreed that to the extent any additional Participant
begins utilizing the extended hours described herein at a later time,
such additional Participant will be required to pay a proportionate
share of the aggregate development costs previously paid by other
Participants. The Participants agree that such additional Participant
will contribute to the operating costs of the extended operating hours
from the point at which it begins utilizing the extended hours, but
that previously-incurred operating costs will not be reapportioned when
a Participant begins utilizing the extended hours.
As part of the amendments, the Participants have proposed moving
existing language related to costs and making minor changes for
readability. This existing language in the CQ Plan referred to
additional expenses related to operation outside 9:00 a.m. ET and 6:30
p.m. ET; however, the Participants already operate outside of this time
period and there are no additional expenses to allocate from the
Processor's operation outside of this time period based on current
operations. The extended hours proposed herein, however, will result in
additional expenses that will need to be allocated. Consequently, the
Participants propose updating the current allocation language to focus
solely on the extended hours proposed herein.
Additionally, the Participants have proposed utilizing the
following methodology for considering whether quotations and
transactions during the extended hours are incorporated into the
revenue allocation formula, which aligns with current practice:
<bullet> Transactions reported outside the hours of 9:30 a.m. ET
and 4:00 p.m. ET will be included in the calculation of total trade
volume for purposes of determining net distributable operating revenue,
but will not be included in the calculation of the daily high, low, or
last sale.
<bullet> Quote Credits may be earned only in connection with
quotations transmitted by a Participant to the Processor during Regular
Trading Hours.
11. Method and Frequency of Processor Evaluation
No changes as a result of amendments.
12. Dispute Resolution
No changes as a result of amendments.
(b) Rule 601(a)
1. Equity Securities for Which Transaction Reports Shall Be Required by
the Plan
No changes as a result of amendments.
2. Reporting Requirements
Other than extending the hours of operations, the Processor will
operate as it currently does.
3. Manner of Collecting, Processing, Sequencing, Making Available and
Disseminating Last Sale Information
Other than extending the hours of operations, the Processor will
operate as it currently does.
4. Manner of Consolidation
Other than extending the hours of operations, the Processor will
operate as it currently does.
5. Standards and Methods Ensuring Promptness, Accuracy and Completeness
of Transaction Reports
Other than extending the hours of operations, the Processor will
operate as it currently does.
6. Rules and Procedures Addressed to Fraudulent or Manipulative
Dissemination
No changes as a result of amendments.
7. Terms of Access to Transaction Reports
No changes as a result of amendments.
8. Identification of Marketplace of Execution
No changes as a result of amendments.
---------------------------------------------------------------------------
\28\ 17 CFR 242.608(b)(2)(i).
---------------------------------------------------------------------------
III. Proceedings To Determine Whether To Approve or Disapprove the
Extended Hours
Proposal
The Commission is instituting proceedings pursuant to Rule
608(b)(2)(i) of Regulation NMS,\28\ and Rules 700 and 701 of the
Commission's
[[Page 21567]]
Rules of Practice,\29\ to determine whether to approve or disapprove
the Extended Hours Proposal, as modified by Amendment No. 1, or to
approve the Extended Hours Proposal, as modified by Amendment No. 1,
with any changes or subject to any conditions the Commission deems
necessary or appropriate. The Commission is instituting proceedings to
have sufficient time to consider the issues raised by the Extended
Hours Proposal, as modified by Amendment No. 1. Institution of
proceedings does not indicate that the Commission has reached any
conclusions with respect to any of the issues involved. Rather, the
Commission seeks and encourages interested persons to provide
additional comment on the Extended Hours Proposal, as modified by
Amendment No. 1, to inform the Commission's analysis.
---------------------------------------------------------------------------
\29\ 17 CFR 201.700; 17 CFR 201.701.
---------------------------------------------------------------------------
Rule 608(b)(2) of Regulation NMS provides that the Commission
``shall approve a national market system plan or proposed amendment to
an effective national market system plan, with such changes or subject
to such conditions as the Commission may deem necessary or appropriate,
if it finds that such plan or amendment is necessary or appropriate in
the public interest, for the protection of investors and the
maintenance of fair and orderly markets, to remove impediments to, and
perfect the mechanisms of, a national market system, or otherwise in
furtherance of the purposes of the [Exchange] Act.'' \30\ Rule
608(b)(2) further provides that the Commission shall disapprove a
national market system plan or proposed amendment if it does not make
such a finding.\31\ In the Notice, the Commission sought comment on the
Extended Hours Proposal, including whether the Extended Hours Proposal
is consistent with the Exchange Act.\32\ In this order, pursuant to
Rule 608(b)(2)(i) of Regulation NMS,\33\ the Commission is providing
notice of the grounds for disapproval under consideration. The
Commission is instituting proceedings to allow for additional analysis
of whether the Extended Hours Proposal, as modified by Amendment No. 1,
is necessary or appropriate in the public interest, for the protection
of investors and the maintenance of fair and orderly markets, to remove
impediments to, and perfect the mechanisms of, a national market
system, or otherwise in furtherance of the purposes of the Exchange Act
consistent with Rule 608 of Regulation NMS.\34\
---------------------------------------------------------------------------
\30\ 17 CFR 242.608(b)(2).
\31\ Id.
\32\ See Notice, supra note 6, at 3605.
\33\ 17 CFR 242.608(b)(2)(i).
\34\ 17 CFR 242.608(b)(2).
---------------------------------------------------------------------------
In addition, the Commission is instituting proceedings to allow for
additional analysis of whether modifications to the Extended Hours
Proposal, as modified by Amendment No. 1, or conditions to its
approval, such as limiting the consideration of other market conditions
by the Operating Committee before implementing the Extended Hours
Proposal, as modified by Amendment No. 1, are necessary or appropriate
in the public interest, for the protection of investors and the
maintenance of fair and orderly markets, to remove impediments to, and
perfect the mechanisms of, a national market system, or otherwise in
furtherance of the purposes of the Exchange Act consistent with Rule
608 of Regulation NMS.\35\
---------------------------------------------------------------------------
\35\ 17 CFR 242.608(b)(2).
---------------------------------------------------------------------------
Under the Commission's Rules of Practice, the ``burden to
demonstrate that a NMS plan filing is consistent with the Exchange Act
and the rules and regulations issued thereunder . . . is on the plan
participants that filed the NMS plan filing.'' \36\ The description of
the NMS plan filing, its purpose and operation, its effect, and a legal
analysis of its consistency with applicable requirements must all be
sufficiently detailed and specific to support an affirmative Commission
finding.\37\ Any failure of the plan participants that filed the NMS
plan filing to provide such detail and specificity may result in the
Commission not having a sufficient basis to make an affirmative finding
that the NMS plan filing is consistent with the Exchange Act and the
applicable rules and regulations thereunder.\38\
---------------------------------------------------------------------------
\36\ 17 CFR 201.700(b)(3)(ii).
\37\ Id.
\38\ Id.
---------------------------------------------------------------------------
IV. Commission's Solicitation of Comments
The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the Extended Hours Proposal, as modified by Amendment No. 1. In
particular, the Commission invites the written views of interested
persons concerning whether the Extended Hours Proposal, as modified by
Amendment No. 1, is consistent with the Exchange Act, the rules and
regulations thereunder.\39\ The Commission asks that commenters address
the sufficiency and merit of the Participant's statements in support of
the Extended Hours Proposal, as modified by Amendment No. 1, in
addition to any other comments they may wish to submit about the
Extended Hours Proposal, as modified by Amendment No. 1.
---------------------------------------------------------------------------
\39\ See 17 CFR 242.608(b)(2).
---------------------------------------------------------------------------
Although there do not appear to be any issues relevant to approval
or disapproval that would be facilitated by an oral presentation of
views, data, and arguments, the Commission will consider, pursuant to
Rule 608(b)(2)(i) of Regulation NMS,\40\ any request for an opportunity
to make an oral presentation.\41\
---------------------------------------------------------------------------
\40\ 17 CFR 242.608(b)(2)(i).
\41\ Rule 700(c)(2) of the Commission's Rules of Practice
provides that ``[t]he Commission, in its sole discretion, may
determine whether any issues relevant to approval or disapproval
would be facilitated by the opportunity for an oral presentation of
views.'' 17 CFR 201.700(c)(2).
---------------------------------------------------------------------------
Interested persons are invited to submit written data, views, and
arguments regarding whether the Extended Hours Proposal, as modified by
Amendment No. 1, should be approved or disapproved by May 13, 2026. Any
person who wishes to file a rebuttal to any other person's submission
must file that rebuttal by May 27, 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/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#b7c5c2dbd29ad4d8dadad2d9c3c4f7c4d2d499d0d8c1"><span class="__cf_email__" data-cfemail="6113140d044c020e0c0c040f1512211204024f060e17">[email protected]</span></a>. Please include
file number SR-CTA/CQ-2026-01 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-CTA/CQ-2026-01. 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="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
Copies of the filing will be available for inspection and copying at
the principal offices of the Participants.
[[Page 21568]]
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 withholdentirely from publication
submitted material that is obscene or subject to copyright protection.
All submissions should refer to File Number SR-CTA/CQ-2026-01 and
should be submitted on or before May 13, 2026.
---------------------------------------------------------------------------
\42\ 17 CFR 200.30-3(a)(85).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\42\
Vanessa A. Countryman,
Secretary.
BILLING CODE 8011-01-P
[[Page 21569]]
[GRAPHIC] [TIFF OMITTED] TN22AP26.001
[[Page 21570]]
[GRAPHIC] [TIFF OMITTED] TN22AP26.002
[[Page 21571]]
[GRAPHIC] [TIFF OMITTED] TN22AP26.003
[[Page 21572]]
[GRAPHIC] [TIFF OMITTED] TN22AP26.004
[[Page 21573]]
[FR Doc. 2026-07783 Filed 4-21-26; 8:45 am]
BILLING CODE 8011-01-C
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on April 22, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.