Notice2026-09262
Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Transaction Fees Applicable to Members of the Exchange
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Published
May 11, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 90 (Monday, May 11, 2026)</title>
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[Federal Register Volume 91, Number 90 (Monday, May 11, 2026)]
[Notices]
[Pages 25669-25671]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09262]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105387; File No. SR-24X-2026-13]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Amend
the Transaction Fees Applicable to Members of the Exchange
May 6, 2026.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on April 29, 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\ 15 U.S.C. 78a.
\3\ 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 fees applicable to
Members of the Exchange as described below. 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.
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 fees applicable to
Members of the Exchange. Specifically, the Exchange proposes the
following with respect to securities priced below $1.00 per share
(``Sub-Dollar Securities''): (i) to reduce the fee for executions of
non-retail orders that remove liquidity from the 24X Book \4\
(``Removed Volume'') \5\ from 0.15% of total dollar value to 0.09% of
total dollar value, and (ii) to reduce the fee for executions of retail
orders that remove liquidity from the 24X Book (``Removed Retail
Volume'') \6\ from 0.15% of total dollar value to 0.09% of total dollar
value. The Exchange proposes to implement the rule change on May 1,
2026.
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\4\ ``24X Book'' refers to the Exchange system's electronic file
of orders. See Exchange Rule 1.5(a).
\5\ Such executions correspond to fee codes ``2'' and ``61'' in
the Exchange's fee schedule.
\6\ Such executions correspond to fee codes ``102,'' ``160,''
and ``161'' in the Exchange's fee schedule.
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The proposed decreased fees for Removed Volume and Removed Retail
Volume in Sub-Dollar Securities are consistent with or lower than the
fees charged by other exchanges,\7\ and are intended to promote order
flow in Sub-Dollar Securities to the Exchange by incentivizing 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. The Exchange also believes
this change will promote market quality by encouraging narrower spreads
in Sub-Dollar Securities, which are often characterized by lower depth
and wider bid-ask differentials.
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\7\ See Long-Term Stock Exchange, Inc. (``LTSE'') fee schedule,
available at: <a href="https://cdn.prod.website-files.com/6462417e8db99f8baa06952c/69e926495f9a2fbcc9a9d0d4_LTSE%20Fee%20Schedule_April%209%202026%20">https://cdn.prod.website-files.com/6462417e8db99f8baa06952c/69e926495f9a2fbcc9a9d0d4_LTSE%20Fee%20Schedule_April%209%202026%20</a>(SR
-LTSE-2026-11).docx.pdf; 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_02012026_2.pdf">https://www.miaxglobal.com/sites/default/files/fee_schedule-files/MIAX_Pearl_Equities_Fee_Schedule_02012026_2.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>.
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The proposed rule change does not include different fees for
transactions in Sub-Dollar Securities that depend on the number of
orders submitted to, or transactions executed on or through, the
Exchange. Accordingly, all fees 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) \8\ of the Act in general, and
furthers the objectives of Section 6(b)(4) \9\ 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 fees are consistent with the
objectives of Section 6(b)(5) \10\ 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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\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(4).
\10\ 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 fees 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 will 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 Exchange also
believes this change will promote market quality by encouraging
narrower spreads in Sub-Dollar Securities, which are often
characterized by lower market depth and wider bid-ask differentials.
The Commission and the courts have repeatedly expressed their
preference
[[Page 25670]]
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.'' \11\
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\11\ 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 fees are comparable to or lower than those in place on
other exchanges: \12\
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\12\ See supra note 7. The Exchange notes that the fee schedules
of the above-mentioned other exchanges either provide the same fees
for removed volume retail transactions as they do for removed volume
non-retail transactions, or do not specify separate fees for retail
versus non-retail transactions.
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Fee for removing sub-dollar
Exchange volume
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24X....................................... 0.09%.
LTSE...................................... 0.15% [sic].
Cboe EDGA................................. 0.15%.
MIAX Pearl................................ 0.20%.
NYSE Texas................................ 0.10%.
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The Exchange believes that it is appropriate, reasonable, and
consistent with the Act to charge a standard fee of 0.09% of total
dollar value for Removed Volume and Removed Retail Volume in Sub-Dollar
Securities, because that is comparable to or lower than the transaction
fees charged by other exchanges for removing liquidity in Sub-Dollar
Securities.\13\ The Exchange further believes that the proposed fees
are equitably allocated and not unfairly discriminatory because they
apply equally to all Members, and are 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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\13\ Id.
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The Exchange notes that under the proposed amended fee structure,
it will pay higher rebates for non-retail transactions that add
displayed liquidity to the Exchange (``Added Displayed Volume'') \14\
and retail transactions that add displayed liquidity to the Exchange
(``Added Displayed Retail Volume'') \15\ in Sub-Dollar Securities as
the fees it charges for removing such volume, and as such the Exchange
will have negative net capture (i.e., will not make money) with respect
to transactions in Sub-Dollar Securities. 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 and Added Displayed Retail Volume transactions in Sub-
Dollar Securities, 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
and Added Displayed Retail Volume transactions in Sub-Dollar Securities
will materially impact the capitalization of 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.
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\14\ Such executions correspond to fee codes ``1,'' ``53,''
``54,'' and ``62'' in the Exchange's fee schedule.
\15\ Such executions correspond to fee codes ``101,'' ``153,''
``154,'' and ``162'' in the Exchange's fee schedule.
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In conclusion, the Exchange submits that its proposed amended fee
structure satisfies the requirements of Sections 6(b)(4) and 6(b)(5) 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 believes
that it is subject to significant competitive forces, and that its
proposed amended fee structure is an appropriate effort to address such
forces.
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 additional 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.'' \16\
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\16\ 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 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 other exchanges and 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
[[Page 25671]]
Added Displayed Volume and Added Displayed Retail Volume in Sub-Dollar
Securities, 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 this pricing incentive is 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 fees are comparable to or lower than those in place on
other exchanges with respect to similar transactions. Accordingly, with
respect to a market participant deciding to submit an order to add or
remove liquidity in Sub-Dollar Securities, 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 fees
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 fees apply equally to all Members. The proposed
pricing structure is intended to encourage market participants to add
and remove displayed liquidity in Sub-Dollar Securities on the Exchange
by providing fees that are comparable to or lower than 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) \17\ of the Act and subparagraph (f)(2) of Rule 19b-4
thereunder,\18\ 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) \19\ of the Act to
determine whether the proposed rule change should be approved or
disapproved.
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\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(2).
\19\ 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
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#1361667f763e707c7e7e767d6760536076703d747c65"><span class="__cf_email__" data-cfemail="0c7e796069216f6361616962787f4c7f696f226b637a">[email protected]</span></a>. Please include
file number SR-24X-2026-13 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-2026-13. 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-2026-13 and should be submitted on
or before June 1, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-09262 Filed 5-8-26; 8:45 am]
BILLING CODE 8011-01-P
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