Notice2026-09129
Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the LTSE Fee Schedule To Introduce the LTSE Membership Launchpad Program
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
May 8, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 89 (Friday, May 8, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 89 (Friday, May 8, 2026)]
[Notices]
[Pages 25397-25400]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09129]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105375; File No. SR-LTSE-2026-11]
Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the LTSE Fee Schedule To Introduce the LTSE Membership Launchpad
Program
May 5, 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 April 22, 2026, Long-Term Stock Exchange, Inc. (``LTSE'' 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
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 introduce the LTSE Membership Launchpad Program, which offers
discounted Membership Fees, Logical Connectivity Fees and Market Data
Fees for up to 12 months for new Members of the Exchange. The Exchange
proposes to implement the changes to the fee schedule pursuant to this
proposal on April 9, 2026.\3\
---------------------------------------------------------------------------
\3\ On April 9, 2026, the Exchange filled SR-LTSE-2026-10. The
Exchange intends to withdraw that filing on April 22, 2026 and
submit this proposal in its place. This filing replaces and
supersedes SR-LTSE-2026-10.
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
website at <a href="https://longtermstockexchange.com/">https://longtermstockexchange.com/</a>
[[Page 25398]]
and at the principal office of the Exchange.
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 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to introduce the LTSE Membership Launchpad
Program (the ``Program'') to offer discounted Membership Fees, Logical
Connectivity Fees and Market Data Fees for up to 12 months for new LTSE
Members. The purpose of this filing is to encourage smaller, retail-
oriented market participants that are not currently LTSE Members to
become Members by discounting certain fixed costs associated with
becoming a Member of LTSE. The Exchange proposes to codify the Program
under Section E of the Fee Schedule and to implement the fee changes
effective April 9, 2026.
The Exchange also notes that the Program is similar to a program
adopted by another exchange that similarly provides discounts on
membership, connectivity and market data fees for new members for the
similar purpose of encouraging smaller, retail-oriented market
participants to become members of the exchange.\4\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 91626 (April 21,
2021), 79 FR 22287(April 27, 2021) (SR-NYSE-2021-22) See also New
York Stock Exchange Price List, NYSE Membership On-Ramp Program.
---------------------------------------------------------------------------
Current Market and Competitive Environment
The Exchange operates in a highly competitive market. The
Commission has repeatedly expressed its preference for competition over
regulatory intervention in determining prices, products, and services
in the securities markets. In Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
self-regulatory organization 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.'' \5\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37495, 37499 (June 29, 2005) (S7-10-04) (Final Rule)
(``Regulation NMS'').
---------------------------------------------------------------------------
While Regulation NMS has enhanced competition, it has also fostered
a ``fragmented'' market structure where trading in a single stock can
occur across multiple trading centers. When multiple trading centers
compete for order flow in the same stock, the Commission has recognized
that ``such competition can lead to the fragmentation of order flow in
that stock.'' Indeed, equity trading is currently dispersed across 17
exchanges, 31 alternative trading systems, and numerous broker-dealer
internalizers and wholesalers, all competing for order flow. Based on
publicly available information, no single exchange has more than 15%
market share. Therefore, no exchange possesses significant pricing
power in the execution of equity order flow. More specifically, the
Exchange's market share of trading in Tape A, B and C securities
combined is less than 1%.
The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
move order flow or discontinue or reduce use of certain categories of
products, in response to fee changes. Accordingly, competitive forces
constrain exchange transaction fees that relate to orders that would
provide liquidity on an exchange.
Proposed Rule Change
The Exchange proposes to discount certain fixed costs related to
Exchange membership in order to incentivize smaller, retail-oriented
market participants to consider LTSE membership. Specifically, the
Exchange proposes to introduce a new Program that offers significant
discounts for up to 12 months on the Membership Fees, Logical
Connectivity Fees and Market Data Fees for new Members, subject to
specific restrictions.
Proposed Discounts
The proposed discounts would be phased out over a period of 12
months. Specifically, during Phase 1 (months 1-6) following approval of
a new membership application, the applicable discount for the
Membership Fee, Logical Connectivity Fees and Market Data Fees would be
100% for each eligible product. During Phase 2 (months 7-12), the
amount of the discount would become 50%. The Program would terminate at
the end of Phase 2 (12 months), and the Member would be charged at the
regular rate set forth in the LTSE Fee Schedule from that point
forward.\6\
---------------------------------------------------------------------------
\6\ For the avoidance of doubt, the discounts described in the
Program apply beginning in the first full month following approval
of a new membership application (month 1). No Membership Fee,
Logical Connectivity Fees, or Market Data Fees are assessed during
the initial month in which a new Member is approved and onboarded
(``Month 0''), consistent with the Exchange's existing billing
practice. Accordingly, the treatment of Month 0 is not a new fee
waiver or discount being proposed by this filing.
---------------------------------------------------------------------------
Membership Fee
The Exchange currently charges a Membership Fee of $10,000 a year
for all LTSE Members ($833.33 per month). The Membership Fee is
assessed on a calendar year basis, with the fee for each upcoming year
due by December 31st.\7\
---------------------------------------------------------------------------
\7\ If a firm is admitted as a Member during a calendar year,
the annual Membership Fee is prorated (starting with the next
calendar month) based upon the date the firm becomes a Member. Such
proration applies only to the portion of the calendar year in which
the firm is admitted. The full annual Membership Fee for the
following calendar year shall be due on December 31 of the year of
admission (for example, the full 2027 annual Membership Fee shall be
due on December 31, 2026).
---------------------------------------------------------------------------
For example, assuming new Member A is approved on May 7, 2026, the
Exchange would calculate and apply the 2026 annual Membership Fee as
follows:
<bullet> Apply a 100% discount for the period June 2026 through
November 2026 (months 1-6).
<bullet> Apply a 50% discount for December 2026 (month 7) = $416.67
($833.33 * 50%).
The Exchange would calculate and apply Member A's 2027 annual
Membership Fee as follows:
<bullet> Apply a 50% discount for the period January 2027 through
May 2027 (months 8-12) = $2,083.32 ($833.33 * 5 months * 50%).
<bullet> Apply no discount for the period June 2027 through
December 2027 = $5,833.31 ($833.33 * 7 months).
To be eligible, a new Member may not have been, within the prior 6
months, approved as an LTSE Member. Eligibility for discounts begins in
the month following membership approval, which will count as month 1
for the purposes of assessing the 12 months of discounts. A new Member
is only eligible to enroll in the Program once. A new Member that is an
``affiliate'' of an existing Member is ineligible to participate in the
Program. Affiliate is proposed to be defined, for purposes of
[[Page 25399]]
the fee schedule, as any Member under 75% common ownership or control
of that Member.
Market Data Fees
LTSE offers the following market data products to all market
participants, including new Members on a voluntary, subscription basis:
the LTSE Depth of Book Feed, the LTSE Top of Book Feed, and the LTSE
Last Sale Feed, together the (``Market Data Feeds''). Each Market Data
Feed allows a vendor to redistribute certain data elements included in
the data feed on a real-time basis. For the Depth of Book Feed, the
Exchange charges $2,500 per data recipient per month. For the Top of
Book Feed, the Exchange charges $500 per data recipient per month. For
the Last Sale Feed the Exchange charges $0 per month. A firm that was a
subscriber to any of the LTSE Market Data Feeds six (6) months before
becoming approved as a new Member is ineligible for Program's market
data fee discounts.
Assume new Member A is approved on May 7, 2026, and subscribes to
the LTSE Depth of Book Feed for 5 data recipients and the LTSE Top of
Book Feed for 10 data recipients. Under the current fee schedule,
Member A would be charged $2,500 per data recipient per month for the
Depth of Book Feed (totaling $12,500 per month) and $500 per data
recipient per month for the Top of Book Feed (totaling $5,000 per
month), for a combined total of $17,500 per month.
Under the Program, during Phase 1 (months 1-6), Member A would
receive a 100% discount on these fees, resulting in no charge for
market data during this period. During Phase 2 (months 7-12), Member A
would receive a 50% discount, resulting in monthly charges of $6,250
for the Depth of Book Feed and $2,500 for the Top of Book Feed, for a
combined total of $8,750 per month.
Beginning in month 13, Member A would be charged the full
applicable rates set forth in the LTSE Fee Schedule.
Logical Connectivity Fees
Finally, the Program would be available for fees charged for the
Logical Connectivity sessions. These application sessions, commonly
known as ports, are utilized to perform a particular function on the
Exchange, such as order entry or order cancellation, receipt of drop
copies, proprietary market data dissemination, or requesting data to be
backfilled (i.e., ``gap ports''). Members can also choose to connect to
LTSE indirectly through a session maintained by a third-party service
bureau. Service bureau sessions may provide access to one or multiple
Members on a single session.
The Exchange charges $450 per port per month but waives the fees
for three (3) sessions per month per market participant which the
Exchange believes encourages market participants to connect to the
Exchange's backup trading systems and to conduct appropriate testing of
their use of the Exchange. All Logical Connectivity Fees beyond the
first 3 complimentary sessions will be eligible. However, the Exchange
notes that Cross-Connect Fees will not be eligible for the Program.
Assume new Member A is approved on May 7, 2026, and subscribes to
20 Logical Connectivity sessions. Under the current fee schedule,
Member A would be charged $450 per port per month for each port in
excess of the three (3) complimentary sessions, resulting in 17
billable ports and a total monthly charge of $7,650.
Under the Program, during Phase 1 (months 1-6), Member A would
receive a 100% discount on these fees and would not be charged for
Logical Connectivity during this period. During Phase 2 (months 7-12),
Member A would receive a 50% discount and would be charged $225 per
port per month for 17 ports, resulting in a total monthly charge of
$3,825.
Beginning in month 13, Member A would be charged the full
applicable rates set forth in the LTSE Fee Schedule.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(4) of the Act,\9\ 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,\10\ 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.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
\10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
As discussed above, the Exchange operates in a highly fragmented
and competitive market where market participants can and do move order
flow or discontinue or reduce use of certain categories of products, in
response to fee changes. Moreover, in the current competitive market
environment, market participants also have a choice of where to become
members. In light of this, the Exchange believes that it is reasonable
to offer discounted Membership Fees, Logical Connectivity Fees and
Market Data Fees for up to 12 months for new Members in order to
provide an incentive for smaller broker-dealers to apply for Exchange
membership and a trading license. The Exchange believes that providing
an incentive for broker-dealers that are not currently Exchange Members
to apply for membership would encourage market participants to become
Members of the Exchange and bring additional liquidity to a public
market. In addition, the Exchange believes that the proposal could
result in additional retail liquidity to a public exchange, to the
benefit of all market participants. The Exchange believes creating
incentives and opportunities for new Members on the Exchange protects
investors and the public interest by increasing the competition and
liquidity on a transparent public market.
The Exchange believes the proposal constitutes an equitable
allocation of fees because the proposed change would be offered to all
market participants that wish to become new Members, all of whom would
continue to be subject to the same fee structure and access to the
Exchange's market would continue to be offered on fair and
nondiscriminatory terms.
The Exchange believes that the proposal is not unfairly
discriminatory. In the prevailing competitive environment, Members are
free to disfavor Exchange membership and the Exchange's pricing if they
believe that alternatives offer them better value. The proposal is not
unfairly discriminatory because it neither targets nor uniquely impacts
any particular category of market participant. The proposed discounted
Membership Fees, Logical Connectivity Fees and Market Data Fees for up
to 12 months do not permit unfair discrimination because the proposed
changes would apply to all similarly situated new Members, who would
all benefit from the discounted fees on an equal basis. For the
foregoing reasons, the Exchange believes that the proposal is
consistent with the Act.
[[Page 25400]]
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\11\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
Intramarket Competition
Instead, as discussed above, the Exchange believes that the
proposed changes would increase competition by reducing the cost of
operating as an Exchange Member, which the Exchange believes will
enhance market quality through the submission of additional retail
liquidity to a public exchange, thereby promoting market depth, price
discovery and transparency and enhancing order execution opportunities
for member organizations. As a result, the Exchange believes that the
proposed change furthers the Commission's goal in adopting Regulation
NMS of fostering integrated competition among orders, which promotes
``more efficient pricing of individual stocks for all types of orders,
large and small.'' \12\
---------------------------------------------------------------------------
\12\ Regulation NMS, 70 FR at 37498-99.
---------------------------------------------------------------------------
The proposed changes are designed to attract additional Members and
order flow to the Exchange. The Exchange believes that the proposed
changes would continue to incentivize market participants to become
Exchange Members and direct order flow, especially retail order flow,
to the Exchange. Greater liquidity benefits all market participants on
the Exchange by encouraging market participants to become Exchange
Members and send orders to the Exchange, thereby providing more trading
opportunities and contributing to robust levels of liquidity on the
Exchange, which benefits all market participants. The proposed
discounts would be available to all similarly situated market
participants, and, as such, the proposed change would not impose a
disparate burden on competition among market participants on the
Exchange. As noted, the proposal would apply to all similarly situated
Members on the same and equal terms, who would benefit from the changes
on the same basis. Accordingly, the proposed change would not impose a
disparate burden on competition among market participants on the
Exchange.
Intermarket Competition
The Exchange operates in a highly competitive market in which
market participants can readily choose to send their orders to other
exchange and off exchange venues if they deem fee levels at those other
venues to be more favorable. In such an environment, the Exchange must
continually adjust its fees and rebates to remain competitive with
other exchanges and with off-exchange venues. Because competitors are
free to modify their own fees and credits in response, and because
market participants may readily adjust their order routing practices,
the Exchange does not believe its proposed fee change can impose any
burden on intermarket competition.
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 \13\ and
paragraph (f)(2) of Rule 19b-4 thereunder.\14\ Accordingly, the
proposed rule change would take effect upon filing with the Commission.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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#4634332a236b25292b2b232832350635232568212930"><span class="__cf_email__" data-cfemail="eb999e878ec6888486868e859f98ab988e88c58c849d">[email protected]</span></a>. Please include
file number SR-LTSE-2026-11 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-2026-11. 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-2026-11 and should be submitted on
or before May 29, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-09129 Filed 5-7-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on May 8, 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.