Notice2026-19950
Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 14.350 Regarding Information Circular Requirements
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 30, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 188 (Wednesday, September 30, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 188 (Wednesday, September 30, 2026)]
[Notices]
[Pages 61890-61892]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19950]
[[Page 61890]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106494; File No. SR-LTSE-2026-19]
Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend Rule 14.350 Regarding Information Circular Requirements
September 25, 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 14, 2026, Long-Term Stock Exchange, Inc. (``LTSE'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. 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 Commission a proposed rule change
to eliminate the requirement that the Exchange distribute an
information circular to Members \3\ prior to the commencement of
trading in each UTP Exchange Traded Product \4\ that generally includes
the same information as contained in the information circular approved
by the listing exchange.
---------------------------------------------------------------------------
\3\ See LTSE Rule 1.160 w) (defining ``Member'').
\4\ See LTSE Rule 14.350(b) (defining ``UTP Exchange Traded
Product'').
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
website at <a href="https://longtermstockexchange.com/">https://longtermstockexchange.com/</a> and at the principal
office of the Exchange.
II. Self-Regulatory Organization's Statement on 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
LTSE Rule 14.350(b) governs the trading of UTP Exchange Traded
Products on the Exchange. Current LTSE Rule 14.350(b)(1) provides that
the Exchange distribute an information circular prior to the
commencement of trading in each UTP Exchange Traded Product that
generally mirrors the information circular issued by the primary
listing exchange, including: (a) the special risks of trading the new
Exchange Traded Product,\5\ (b) the Exchange Rules that will apply to
the new Exchange Traded Product, and (c) information about the
dissemination of value of the underlying assets or indices. By this
proposed rule change, the Exchange proposes to eliminate this
requirement.
---------------------------------------------------------------------------
\5\ See LTSE Rule 145.430(b) (defining ``Exchange Traded
Product'').
---------------------------------------------------------------------------
The information circular requirement is unnecessary because the
primary listing exchange's information circular already provides
Members with the same disclosures the Exchange is required to produce.
Members have access to the primary listing exchange's information
circular prior to the commencement of UTP trading and may rely upon it
for the same purposes.\6\ The Exchange's issuance of a separate,
duplicative circular does not advance investor protection.
---------------------------------------------------------------------------
\6\ As other national securities exchanges have observed, such
information circulars are generally available on the primary listing
market's website. E.g., Securities Exchange Act Release Nos. 105835
(July 1, 2026), 91 FR 41671, 41672 n.8 (July 7, 2026) (SR-PEARL-
2026-28); 105715 (June 17, 2026), 91 FR 37477, 37478 n.5 (June 23,
2026) (SR-CboeBZX-2026-054); and 106068 (August 10, 2026), 91 FR
52384 (August 13, 2026) (SR-MEMX-2026-22).
---------------------------------------------------------------------------
At the same time, the Exchange acknowledges that its duplicative
information circular helpfully highlights three things: (1) the special
risks of trading the new UTP Exchange Traded Product; (2) the Exchange
Rules that apply to the new UTP Exchange Traded Product; and (3)
information about the dissemination of value of the underlying assets
or indices. To preserve the visibility of Exchange rules that relate to
those things in the context of UTP Exchange Traded Products, the
Exchange proposes to amend LTSE Rule 14.350(a) to add express cross-
references to LTSE Rules 3.150 (Know Your Customer),\7\ 3.160 (Fair
Dealing with Customers),\8\ 3.170 (Suitability),\9\ and 3.290 (Customer
Disclosures).\10\ These rules already apply to Members, and therefore
the proposed addition of these cross-references is not a substantive
change.
---------------------------------------------------------------------------
\7\ LTSE Rule 3.150 provides: ``LTSE Members shall comply with
FINRA Rule 2090 as if such rule were part of the Exchange's Rules.''
\8\ LTSE Rule 3.160 imposes a duty on Members to deal fairly
with their customers and provides a non-exhaustive list of practices
inconsistent with that duty.
\9\ LTSE Rule 3.170(a) provides: ``LTSE Members and associated
persons of a Member shall comply with FINRA Rule 2111 as if such
rule were part of the Exchange's Rules.'' LTSE Rule 3.170(b)
provides interpretive guidance for paragraph (a).
\10\ LTSE Rule 3.290 prohibits a member from accepting an order
from a customer for execution in the Pre-Market or Post-Market
Session without disclosing to such customer that extended hours
trading involves material trading risks, including the possibility
of lower liquidity, high volatility, changing prices, unlinked
markets, an exaggerated effect from news announcements, wider
spreads, and any other relevant risk.
---------------------------------------------------------------------------
Deleting the information circular requirement necessitates making a
conforming change to LTSE Rule 14.350(b)(2)(B). The Exchange proposes
to modify that provision to require that Members provide each purchaser
of UTP Exchange Traded Products a written description of the terms and
characteristics of those securities, in a form approved by the listing
exchange--rather than by the Exchange--or prepared by the open-ended
management company issuing such securities, not later than the time a
confirmation of the first transaction in such securities is delivered
to such purchaser. Members and their customers may rely on the listing
exchange's information circular, and provision of a duplicative written
description in a form approved by the Exchange does not enhance
investor protection.\11\
---------------------------------------------------------------------------
\11\ The Exchange also proposes making a clean up change to
subparagraph (B). Specifically, because subparagraph (B) contains
only a single subparagraph, the Exchange proposes to eliminate the
numbering of subparagraph (i).
---------------------------------------------------------------------------
Lastly, the Exchange proposes to renumber the subparagraphs of LTSE
Rule 14.350(b) to reflect the elimination of the Information Circular
subparagraph.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\12\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \13\ requirements that the rules
of an exchange be designed to prevent fraudulent and manipulative acts
and
[[Page 61891]]
practices, 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 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 the Section 6(b)(5) \14\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f.
\13\ 15 U.S.C. 78f(b)(5).
\14\ Id.
---------------------------------------------------------------------------
The Exchange believes the proposed deletion of current Rule
14.350(b)(1) is consistent with the Act because the primary listing
exchange's information circular already provides Members with the same
disclosures that the Exchange's information circular would contain. The
investor protection functions historically served by the information
circular requirement are independently addressed through the primary
listing exchange's information circular and the Member-level
obligations imposed by Rules 3.150, 3.160, 3.170, and 3.290, to which
the Exchange proposes to add express cross-references in the
introductory paragraph of Rule 14.350(a). The amendment to proposed
Rule 14.350(b)(1)(B) ensures that where a written description is
required, it is provided in a form approved by the listing exchange,
thereby aligning the Exchange's requirements with those of the primary
listing market. The Exchange will further notify Members by information
circular that such written description will only be required when
mandated by the listing exchange, ensuring that no duplicative
obligation is imposed where the listing exchange has not determined one
to be warranted. The renumbering of the subparagraphs of LTSE Rule
14.350(b), as well as the clean up change to current LTSE Rule
14.350(b)(2)(B), are ministerial. For these reasons, the Exchange
believes the proposed rule change is consistent with the Act.
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
eliminates duplicative procedural obligations applicable to the
Exchange in its capacity as a UTP trading venue. It does not alter the
terms or conditions under which UTP Exchange Traded Products may be
traded on the Exchange, impose any new requirements on Members, or
affect the ability of any market participant to access the Exchange's
markets.
Members will continue to have access to the primary listing
exchange's information circular prior to the commencement of UTP
trading and may rely upon it for the same purposes as the Exchange's
information circular. The proposed amendment to Rule 14.350(b)(1)(B)
aligns the written description obligation with the primary listing
market's requirements and does not impose any burden on Members beyond
what the primary listing market itself requires. Accordingly, the
Exchange does not believe the proposed rule change imposes any burden
on competition not necessary or appropriate in furtherance of the
purposes of the Act.
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \15\ and Rule 19b-4(f)(6) \16\ thereunder.
Because the foregoing proposed rule change does not: (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; or (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \17\ and Rule 19b-4(f)(6) \18\ thereunder.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6).
\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of its
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.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\20\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become operative immediately upon filing. The Exchange
states that the proposed rule change eliminates duplicative procedural
obligations applicable to the Exchange in its capacity as a UTP trading
venue, and notes that the primary listing exchange's information
circular already provides Members with the same disclosures the
Exchange would otherwise be required to produce.\21\ The Exchange also
notes that the proposed rule change does not alter the terms or
conditions under which UTP Exchange Traded Products may be traded on
the Exchange. For these reasons, the Commission finds that waiver of
the 30-day operative delay is consistent with the protection of
investors and the public interest. Therefore, the Commission hereby
waives the 30-day operative delay and designates the proposed rule
change to be operative upon filing.\22\
---------------------------------------------------------------------------
\19\ 17 CFR 240.19b-4(f)(6).
\20\ 17 CFR 240.19b-4(f)(6)(iii).
\21\ The Exchange represents that such information circulars are
generally available on the primary listing market's website. See
supra note 6.
\22\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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.
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#1f6d6a737a327c7072727a716b6c5f6c7a7c31787069"><span class="__cf_email__" data-cfemail="4032352c256d232f2d2d252e3433003325236e272f36">[email protected]</span></a>. Please include
file number SR-LTSE-2026-19 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange
[[Page 61892]]
Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-LTSE-2026-19. 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-2026-19 and should be submitted on
or before October 21, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
---------------------------------------------------------------------------
\23\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-19950 Filed 9-29-26; 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 September 30, 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.