Notice2026-19040
Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend 24X Rule 8.1(d) To Clarify Certain Disciplinary Functions by FINRA's Office of Disciplinary Affairs
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
September 17, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 179 (Thursday, September 17, 2026)</title>
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[Federal Register Volume 91, Number 179 (Thursday, September 17, 2026)]
[Notices]
[Pages 58933-58934]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19040]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106351; File No. SR-24X-2026-24]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Amend
24X Rule 8.1(d) To Clarify Certain Disciplinary Functions by FINRA's
Office of Disciplinary Affairs
September 14, 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 September 8, 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 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\ 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 subparagraph (d) of Rule 8.1
(Disciplinary Jurisdiction) to clarify that the Exchange and FINRA are
parties to a regulatory services agreement pursuant to which FINRA has
agreed to perform certain functions on behalf of the Exchange, and that
FINRA's Office of Disciplinary Affairs may review the Exchange's
disciplinary matters, which means that some or all of the adjudication
functions described in the Exchange's rules may be provided by FINRA
pursuant to the terms of that regulatory services agreement. 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
Exchange Rule 8.1 (Disciplinary Jurisdiction) establishes the
Exchange's jurisdiction over disciplinary matters that arise from the
alleged violation of Exchange rules, federal securities laws, or
related provisions by a Member \3\ or person associated with a Member.
Currently, subparagraph (d) of Rule 8.1 states that the Exchange may
contract with another self-regulatory organization to perform some or
all of the Exchange's disciplinary functions, and that the Exchange
shall specify to what extent Exchange rules shall govern Exchange
disciplinary actions and to what extent the rules of the other self-
regulatory organization shall govern such actions. The Exchange
proposes to amend Rule 8.1(d) to remove non-specific references to
other self-regulatory organizations and to clarify that the Exchange
and FINRA are parties to a regulatory services agreement pursuant to
which FINRA has agreed to perform certain functions on behalf of the
Exchange, and that FINRA's Office of Disciplinary Affairs may review
the Exchange's disciplinary matters, which means that some or all of
the adjudication functions described in the Exchange's rules may be
provided by FINRA pursuant to the terms of that regulatory services
agreement.
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\3\ See 24X Rule 1.5(u).
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The proposed changes are intended to clarify the manner in which
the Exchange contracts with other self-regulatory organizations by
specifying that FINRA's Office of Disciplinary Affairs is the entity
that may review the Exchange's disciplinary matters and provide the
adjudication functions described in the Exchange's rules pursuant to
the regulatory services agreement between the Exchange and FINRA.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act \4\ in general, and with
Section 6(b)(5) of the Act \5\ in particular, because it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
[[Page 58934]]
coordination with persons engaged in facilitating transactions in
securities, 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; and it is not designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers.
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\4\ 15 U.S.C. 78f.
\5\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes that the proposal to update
Rule 8.1(d) will ensure that the Rule more clearly describes the manner
in which FINRA will provide regulatory services to the Exchange with
respect to disciplinary matters pursuant to a regulatory services
agreement. The proposed amendment would reduce potential investor and
market participant confusion and therefore remove impediments to and
perfect the mechanism of a free and open market and a national market
system by ensuring that investors and market participants can more
easily navigate, understand, and comply with the Exchange's rules. The
proposed amendment would not be inconsistent with the public interest
and the protection of investors because investors would not be harmed
by the proposed changes, but instead would benefit from the increased
transparency and clarity that the proposed changes will provide.
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 Act. The proposed rule change is
not intended to address competitive issues but rather is concerned
solely with updating Rule 8.1(d) to more clearly describe the manner in
which the Exchange contracts with other self-regulatory organizations
with respect to disciplinary matters.
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
Because the proposed rule change does not: (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) \6\ of the Act and Rule 19b-
4(f)(6) thereunder.\7\ A proposed rule change filed under Rule 19b-
4(f)(6) normally does not become operative prior to 30 days after the
date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\8\ the
Commission may designate a shorter time if such action is consistent
with the protection of investors and the public interest.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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.
\8\ 17 CFR 240.19b-4(f)(6)(iii).
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At any time within 60 days of the filing of such 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) \9\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\9\ 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#c6b4b3aaa3eba5a9ababa3a8b2b586b5a3a5e8a1a9b0"><span class="__cf_email__" data-cfemail="3644435a531b55595b5b535842457645535518515940">[email protected]</span></a>. Please include
file number SR-24X-2026-24 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-2026-24. 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-2026-24 and should be submitted on
or before October 8, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-19040 Filed 9-16-26; 8:45 am]
BILLING CODE 8011-01-P
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