Notice2026-09990
Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend 24X Rule 1.5(c) To Extend by Seven (7) Months the Deadline by Which 24X Must File With the Commission the 24X Market Session Proposed Rule Change Regarding the Commencement of the 24X Market Session
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 19, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 96 (Tuesday, May 19, 2026)</title>
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[Federal Register Volume 91, Number 96 (Tuesday, May 19, 2026)]
[Notices]
[Pages 29241-29244]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09990]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105497; File No. SR-24X-2026-17]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Amend
24X Rule 1.5(c) To Extend by Seven (7) Months the Deadline by Which 24X
Must File With the Commission the 24X Market Session Proposed Rule
Change Regarding the Commencement of the 24X Market Session
May 15, 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 May 1, 2026, 24X National Exchange LLC (``24X'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or the ``Commission'') the proposed rule change as described
in Items I and II 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 24X Rule 1.5(c) to extend by seven
months the deadline by which 24X must file with the SEC the 24X Market
Session Proposed Rule Change regarding the commencement of the 24X
Market Session. 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 is filing with the Commission a proposed rule change
to amend 24X Rule 1.5(c) to extend by seven months the date by which
24X must file with the SEC the 24X Market Session Proposed Rule Change
regarding the commencement of the 24X Market Session. The proposed rule
change would extend the filing deadline for the 24X Market Session
Proposed Rule Change from May 27, 2026 to December 27, 2026 to allow
additional time for the Equity Data Plans to make the necessary changes
to accommodate the 24X Market Session.\4\
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\4\ 24X is seeking exemptive relief to permit the Exchange to
commence operation during the 24X Market Session prior to the
relevant Equity Data Plans being amended to collect, consolidate,
process and disseminate quotation and transaction information at all
times during the 24X Market Session. See Securities Exchange Act
Rel. No. 104894 (Feb. 25, 2026), 91 FR 10169 (Mar. 2, 2026). 24X
hopes the Commission will grant such relief in short order.
Nevertheless, because of the 24X Rules currently in place that set
forth a deadline of May 27, 2026 for filing the 24X Market Session
Proposed Rule Change, 24X is submitting this filing to extend the
deadline for filing the 24X Market Session Proposed Rule Change as
discussed herein. Despite making this filing, 24X remains committed
to its request for exemptive relief to commence operation of the 24X
Market Session as quickly as possible, and encourages the Commission
to grant the requested exemption as soon as possible.
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a. Background
The SEC approved rules for 24X to operate the 24X Market
Session,\5\ which will operate between 8 p.m. and 4 a.m. Sunday,
Monday, Tuesday, Wednesday, and Thursday nights that precede a U.S.
Business Day \6\ subject to certain conditions. 24X Rules 1.5(c) and
11.16 require the concurrent operation of the Equity Data Plans before
the operation of the 24X Market Session commences, and that 24X file
the 24X Market Session Proposed Rule Change that would serve to provide
notice to the Commission and the public of 24X's intention to commence
operation of the 24X Market Session.
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\5\ See 24X Rule 1.5(c) defining the ``24X Market Session.''
\6\ 24X Rule 1.5(ll) defines a ``U.S. Business Day'' as ``any
Monday, Tuesday, Wednesday, Thursday or Friday other than any of the
following U.S. holidays if they are celebrated on a Monday, Tuesday,
Wednesday, Thursday or Friday: New Year's Day, Martin Luther King
Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth
National Independence Day, Independence Day, Labor Day, Thanksgiving
Day and Christmas Day Eastern Time, or such other U.S. holiday(s) as
published by the Exchange from time to time.''
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Specifically, 24X Rule 1.5(c) states that 24X will not start
operating the 24X
[[Page 29242]]
Market Session unless the Equity Data Plans ``(1) have established a
mechanism to collect, consolidate, process and disseminate quotation
and transaction information at all times during the 24X Market Session
that is equivalent to the mechanism established for Exchange Trading
Hours other than the 24X Market Session, and (2) have provided the
Exchange with notification that they are prepared to collect,
consolidate, process and disseminate quotation and transaction
information to accommodate the 24X Market Session.''
24X Rule 1.5(c) further requires 24X, prior to commencing the 24X
Market Session, to ``file a proposed rule change pursuant to Section
19(b) of the Exchange Act and the rules thereunder to amend its rules
confirming that the Exchange is able to comply with its obligations
under the Exchange Act and the rules thereunder during the 24X Market
Session and that such Equity Data Plans are prepared to collect,
consolidate, process and disseminate quotation and transaction
information at all times during the 24X Market Session (``24X Market
Session Proposed Rule Change'').'' 24X Rule 1.5(c) further provides
that ``[t]he 24X Market Session Proposed Rule Change must be filed with
the SEC within 18 months of the SEC's approval of the Exchange's
application for registration as a national securities exchange. If the
24X Market Session Proposed Rule Change is not filed within 18 months
of the SEC's approval of the Exchange's application for registration as
a national securities exchange, the Exchange will promptly file a
proposed rule change to remove the rules that apply to the 24X Market
Session.''
In addition, 24X Rule 11.16 states that, ``24X will not commence
operations of the 24X Market Session until a proposed rule change as
required under 24X Rule 1.5(c) has been approved, or has otherwise
become effective, under Section 19(b) of the Exchange Act and the rules
thereunder.''
b. Existing Deadline for Filing of 24X Market Session Proposed Rule
Change
The Commission granted 24X's application for registration as a
national securities exchange on November 27, 2024; \7\ therefore, 18
months after such date is May 27, 2026. Therefore, the deadline for
filing the 24X Market Session Proposed Rule Change as set forth in 24X
Rule 1.5(c) is May 27, 2026.
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\7\ Securities Exchange Act Rel. No. 101777 (Nov. 27, 2024), 89
FR 97092 (Dec. 6, 2024).
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c. Extension of Deadline To File the 24X Market Session Proposed Rule
Change
The Exchange proposes to revise 24X Rule 1.5(c) to extend the
deadline for filing the 24X Market Session Proposed Rule Change by
seven months, from within 18 months of the SEC's approval of the
Exchange's application for registration as a national securities
exchange to within 25 months of the SEC's approval of the Exchange's
application for registration as a national securities exchange. This
would extend the deadline from May 27, 2026 to December 27, 2026. This
seven-month extension would allow additional time for the Equity Data
Plans to establish a mechanism to collect, consolidate, process and
disseminate quotation and transaction information at all times during
the 24X Market Session that is equivalent to the mechanism established
for Exchange Trading Hours other than the 24X Market Session, and to
provide notice to 24X of the establishment of such a mechanism.
24X proposes to replace the two references to the 18 month deadline
in 24X Rule 1.5(c) with a reference to a 25 month deadline.
Specifically, 24X proposes to replace the reference to 18 months with
25 months in the following sentences in 24X Rule 11.5(c):
The 24X Market Session Proposed Rule Change must be filed with the
SEC within 18 months of the SEC's approval of the Exchange's
application for registration as a national securities exchange. If the
24X Market Session Proposed Rule Change is not filed within 18 months
of the SEC's approval of the Exchange's application for registration as
a national securities exchange, the Exchange will promptly file a
proposed rule change to remove the rules that apply to the 24X Market
Session.''
With these changes, these sentences in 24X Rule 1.5(c) would read:
The 24X Market Session Proposed Rule Change must be filed with the
SEC within 25 months of the SEC's approval of the Exchange's
application for registration as a national securities exchange. If the
24X Market Session Proposed Rule Change is not filed within 25 months
of the SEC's approval of the Exchange's application for registration as
a national securities exchange, the Exchange will promptly file a
proposed rule change to remove the rules that apply to the 24X Market
Session.
The proposed brief, seven-month extension of the deadline for
filing the 24X Market Session Proposed Rule Change would provide a
reasonable accommodation to 24X as the innovator for overnight exchange
trading while continuing to satisfy the reasons cited by the Commission
in approving the provisions related to the commencement of the 24X
Market Session. In its approval order for 24X's exchange registration,
the SEC states that ``[t]hese provisions relating to the force and
effect of the 24X Market Session rules set forth in 24X Rule 11.16 help
to balance the interest in providing the time needed for 24X to be able
to comply with 24X Rule 1.5(c) with the interest in ensuring that the
rules of an Exchange are effective and can be enforced by the
Exchange.''
First, the seven additional months would provide 24X with the time
needed to comply with 24X Rule 1.5(c). 24X understands that the Equity
Data Plans aim to establish a mechanism to collect, consolidate,
process and disseminate quotation and transaction information at all
times during the 24X Market Session that is equivalent to the mechanism
established for Exchange Trading Hours other than the 24X Market
Session by December 6, 2026. Accordingly, extending the deadline for
filing the 24X Market Session Proposed Rule Change to December 27, 2026
would provide sufficient time for the Equity Data Plans to complete the
necessary changes for the 24X Market Session.
Second, the limited, defined period of time for the extension also
would continue to satisfy the SEC's ``interest in ensuring that the
rules of an Exchange are effective and can be enforced by the
Exchange.'' The short extension would continue to maintain the balance
of providing 24X with time to implement the 24X Market Session while
ensuring that 24X's Rules are effective and can be enforced by the
Exchange.
Third, the short extension of the deadline would avoid the time,
expense and resources by 24X, a new entrant to the market, to file a
proposed rule change to remove the rules that apply to the 24X Market
Session, and then to refile such rules a short time later when the
Equity Data Plans were ready. Such funds and resources instead may be
used with regard to the operation and regulation of the Exchange.
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Exchange Act \8\ in general, and furthers the
objectives of Section 6(b)(5) of the Exchange Act \9\ in particular, in
that it is designed to prevent fraudulent and manipulative
[[Page 29243]]
acts and practices, to promote just and equitable principles of trade,
to foster cooperation and coordination with persons engaged in
facilitating transactions in securities, to remove impediments to and
perfect the mechanisms of a free and open market and a national market
system and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with Section 6(b)(5) of the Exchange Act \10\ requirement
that the rules of an exchange not be designed to permit unfair
discrimination between customers, issuers, brokers, or dealers. The
Exchange also believes that the proposed rule change would further the
objectives of Section 6(b)(1) of the Act,\11\ in particular, in that
such amendments enable the Exchange to be so organized as to have the
capacity to be able to carry out the purposes of the Act and to comply
with the provisions of the Act, the rules and regulations thereunder,
and the rules of the Exchange.
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\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(5).
\10\ See id.
\11\ 15 U.S.C. 78f(b)(1).
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The proposed brief, seven-month extension of the deadline for
filing the 24X Market Session Proposed Rule Change would provide a
reasonable accommodation to 24X as the innovator for overnight exchange
trading while continuing to satisfy the reasons cited by the Commission
in approving the provisions related to the commencement of the 24X
Market Session. The seven additional months would provide 24X with the
time needed to comply with 24X Rule 1.5(c), as the Equity Data Plans
have indicated that they would be ready to accommodate the 24X Market
Session by December 2026. The proposed brief extension also would
continue to maintain the balance of providing 24X with time to
implement the 24X Market Session while ensuring that 24X's Rules are
effective and can be enforced by the Exchange.
Furthermore, the short extension of the deadline would avoid the
time, expense and resources by 24X, a new entrant to the market, to
file a proposed rule change to remove the rules that apply to the 24X
Market Session, and then to refile such rules a short time later when
the Equity Data Plans were ready. Such funds and resources instead may
be used with regard to the operation and regulation of the Exchange.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Exchange Act. The Exchange
believes that the proposed brief extension of the deadline for filing
the 24X Market Session Proposed Rule Change would enhance competition.
The extended deadline will provide 24X with the additional time
necessary to commence operation in the overnight hours, thereby
allowing the addition of exchange trading to the existing over-the-
counter trading during those times. The expansion of trading by an
exchange to the overnight hours is expected to attract additional
trading interest and liquidity to the extended trading hours to the
benefit of all market participants. Furthermore, by providing 24X, a
new entrant to the exchange market, with additional time to address the
regulatory requirements regarding the implementation of the 24X Market
Session, the Exchange may avoid the expense of filing a proposed rule
change to remove the rules that apply to the 24X Market Session, and
then refiling such rules a short time later when the Equity Data Plans
are ready.
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)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder \13\
in that it effects a change that: (i) does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.\14\
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\12\ 15 U.S.C. 78s(b)(3)(A)(iii).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to
give the Commission written notice of the Exchange's intent to file
the proposed rule change, along with a brief description and text of
the proposed rule change, at least five business days prior to the
date of filing of the proposed rule change, or such shorter time as
designated by the Commission. The Exchange has satisfied this
requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \15\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay period. The Commission
believes that waiver of the 30-day operative delay period is consistent
with the protection of investors and the public interest. Specifically,
the Commission believes that the proposal would provide an extension of
the deadline for filing of the 24X Market Session Proposed Rule Change
to provide the Equity Data Plans additional time to accommodate trading
during the 24X Market Session. The proposed extension also would
continue to maintain the balance of providing 24X with time to
implement the 24X Market Session. For these reasons, the Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest, and designates the
proposed rule change to be operative upon filing with the
Commission.\16\
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\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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.\17\ If the
Commission takes such action, the Commission shall institute
proceedings to determine whether the proposed rule change should be
approved or disapproved.
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\17\ 15 U.S.C. 78s(b)(3)(C).
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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#7002051c155d131f1d1d151e0403300315135e171f06"><span class="__cf_email__" data-cfemail="5725223b327a34383a3a323923241724323479303821">[email protected]</span></a>. Please include
file number SR-24X-2026-17 on the subject line.
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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-2026-17. 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-2026-17 and should be submitted on
or before June 9, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-09990 Filed 5-18-26; 8:45 am]
BILLING CODE 8011-01-P
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