Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend LTSE Rule 15.120 To Expand the Permitted Collection Arrangements

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<title>Federal Register, Volume 91 Issue 191 (Monday, October 5, 2026)</title>
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[Federal Register Volume 91, Number 191 (Monday, October 5, 2026)]
[Notices]
[Pages 63352-63354]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20305]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106558; File No. SR-LTSE-2026-20]


Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend LTSE Rule 15.120 To Expand the Permitted Collection Arrangements

September 30, 2026.
    Pursuant to the provisions of Section 19(b)(1) under the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that on September 21, 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 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 is filing with the Commission a proposed rule change 
to amend Rule 15.120 (Collection of Exchange Fees and Other Claims and 
Billing Policy). Current Rule 15.120(a) requires that each Member, and 
all applicants for registration as such, provide a clearing account 
number for an account at the National Securities Clearing Corporation 
(``NSCC'') for purposes of permitting the Exchange to debit any 
undisputed or final fees, fines, charges, and/or other monetary 
sanctions or other monies due and owing to the Exchange or other 
charges pursuant to certain rules.
    The Exchange proposes to expand the collection arrangements 
permitted under the rule. Under the amended rule, the Exchange may 
waive the NSCC clearing account number requirement and instead approve 
an alternative payment instruction while still reserving the right to 
require a Member or applicant to provide an NSCC clearing account 
number in the event that the Exchange encounters repeated failed 
collection attempts using such alternative payment instructions.
    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
    This proposed rule change amends Rule 15.120 (Collection of 
Exchange Fees and Other Claims and Billing Policy). Current Rule 
15.120(a) requires that each Member, and all applicants for 
registration as such, provide a clearing account number for an account 
at the National Securities Clearing Corporation

[[Page 63353]]

(``NSCC'') for purposes of permitting the Exchange to debit any 
undisputed or final fees, fines, charges, and/or other monetary 
sanctions or other monies due and owing to the Exchange or other 
charges pursuant to certain rules.
    The Exchange proposes to expand the collection arrangements 
permitted under the rule by adding the following language:

    The Exchange will, upon request, waive the requirement for a 
Member or applicant for registration as such to provide an NSCC 
clearing account number and instead require such Member or applicant 
to provide alternative payment instructions as agreed to by the 
Exchange for purposes of permitting the Exchange to debit any of the 
fees, fines, charges and/or other monetary sanctions or other monies 
due and owing to the Exchange listed above; provided, however, that 
the Exchange reserves the right to require any such Member or 
applicant to provide an NSCC clearing account number for such 
purposes as set forth above if the Exchange encounters repeated 
failed collection attempts using such alternative payment 
instructions.

    Under the amended rule, the Exchange may waive the NSCC clearing 
account number requirement and instead approve an alternative payment 
instruction while still reserving the right to require a Member or 
applicant to provide an NSCC clearing account number in the event that 
the Exchange encounters repeated failed collection attempts using such 
alternative payment instructions.
    The purpose of the proposed change is to provide the Exchange with 
the flexibility to agree to an alternative payment arrangement with a 
Member or Member applicant if such Member or Member applicant so 
requests, as the Exchange understands that certain Members or Member 
applicants may have an operational burden associated with remitting 
payment to the Exchange through a designated clearing account at NSCC. 
Under the proposed rule change, any such alternative payment 
instructions must: (1) be agreed to by the Exchange; and (2) permit the 
Exchange to initiate the debit of any fees and other monies due and 
owing to the Exchange in a manner similar to the current requirement to 
provide a clearing account number for an account at NSCC (i.e., a 
direct debit process). The requirement that such alternative payment 
instructions must be agreed to by the Exchange is intended to be an 
objective standard, and the Exchange's ability to agree to such 
alternative payment instructions would be exercised uniformly with 
respect to any Member or Member applicant that so requests to the 
extent such alternative payment instructions reasonably appear to 
permit the Exchange to utilize a direct debit process. The proposed new 
rule language is identical to language in the rule of another national 
securities exchange, and the rules of other national securities 
exchanges similarly allow them to accommodate alternative payment 
methods.\3\
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    \3\ The new language in proposed LTSE Rule 15.120(a) is 
substantively identical to language in MEMX LLC Rule 15.3(a). 
Additionally, it is substantially similar to language in the 
following rules of other national securities exchanges: MIAX Pearl, 
LLC Rule 3002(a); Miami International Securities Exchange, LLC Rule 
208; MIAX Emerald, LLC Rule 208; and MIAX Sapphire, LLC Rule 208.
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2. Statutory Basis
    The Exchange believes that the proposed rule changes are consistent 
with Section 6(b) of the Act \4\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \5\ in particular, in that 
they are designed to prevent fraudulent and manipulative acts and 
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. 
The Exchange also believes the proposed rule changes are consistent 
with the Section 6(b)(5) requirement that the rules of an exchange not 
be designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. Additionally, the Exchange believes the proposed 
rule change is consistent with the Section 6(b)(1) \6\ requirement that 
it be so organized and have the capacity to be able to carry out the 
purposes of the Act and to comply, and to enforce compliance by its 
Members and Member applicants and persons associated with its Members 
and Member applicants, with the provisions of the Act, the rules and 
regulations thereunder, and the Exchange's Rules. The Exchange believes 
the proposed change to enable the Exchange, upon request, to permit a 
Member (or Member applicant) to provide alternative payment 
instructions (i.e., other than by providing a clearing account number 
for an account at NSCC, as currently required by Rule 15.120) for 
purposes of the Exchange's direct debit collection process is 
appropriate and consistent with Section 6(b)(1) of the Act, as such 
changes would provide the Exchange with the flexibility to agree to an 
alternative payment arrangement with a Member (or Member applicant) 
that has an operational burden associated with remitting payment to the 
Exchange by providing a clearing account number for an account at NSCC. 
The Exchange believes this will enable it to be so organized and have 
the capacity to be able to carry out the purposes of the Act and to 
comply, and to enforce compliance by its Members (and Member 
applicants) and persons associated with its Members (and Member 
applicants), with the Exchange's rules relating to payment of fees and 
other monies due and owing to the Exchange. The Exchange also believes 
that reserving the right to revert to the general rule (i.e., to 
require provision of a clearing account number for an account at NSCC 
for direct debit purposes) with respect to any such Member (or Member 
applicant) if the Exchange encounters repeated failed collection 
attempts using such alternative payment instructions is appropriately 
designed to ensure that it is able to collect the fees and other monies 
due and owing to the Exchange through its standard collection process 
if warranted, and is thus consistent with the Act for similar reasons. 
Additionally, this proposed change is designed to give the Exchange and 
its Members (and Member applicants) flexibility regarding their payment 
arrangements while providing a safeguard by which the Exchange may 
revert to its standard collection process, the Exchange believes it 
would promote just and equitable principles of trade, foster 
cooperation and coordination with persons engaged in regulating, 
clearing, settling, processing information with respect to, and 
facilitating transactions in securities, remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general, protect investors and the public interest. The 
proposed changes are also equitable and not unfairly discriminatory 
because they are based on objective standards and would apply equally 
to all Members and Member applicants for registration as such, as 
described above. The proposed changes are also based on billing and 
collection rules in place at several equity exchanges, which provide 
for substantively similar alternative payment provisions in their 
billing rules for equity members that may want to pay exchange fees via 
an alternative method.
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    \4\ 15 U.S.C. 78f.
    \5\ 15 U.S.C. 78f(b)(5).
    \6\ 15 U.S.C. 78f(b)(1).

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[[Page 63354]]

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposal will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed change to enable 
the Exchange to agree to alternative payment instructions for the 
Exchange's direct debit collection process would apply equally to all 
Members and Member applicants as the opportunity to request that the 
Exchange agree to alternative payment instructions will be available to 
any such Member or Member applicants and the Exchange's ability to 
agree to such alternative payment instructions would be exercised 
uniformly on an objective basis. The Exchange does not believe such 
proposed changes would impair the ability of Members or Member 
applicants or competing order execution venues to maintain their 
competitive standing in the financial markets, and therefore, the 
Exchange does not believe the proposal will impose any burden on 
intermarket competition. Moreover, because the proposed changes would 
apply equally to all Members and Member applicants, the Exchange does 
not believe the proposal would impose any burden on intramarket 
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

    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; and (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)(iii) of the Act \7\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \9\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
requested that the Commission waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The Exchange 
states that it plans to launch its Market Maker program on October 1, 
2026, and waiver of the operative delay would permit a market 
participant that may wish to request an option to provide alternative 
payment instructions pursuant to the proposed rule change to 
participate in the launch of that program. In addition, the Exchange's 
proposed rule is substantially similar to the rules of other national 
securities exchanges.\11\ For these reasons, and because the proposed 
rule change raises no new or novel legal or regulatory issues, the 
Commission finds that waiver of the operative delay is consistent with 
the protection of investors and the public interest. Accordingly, the 
Commission waives the 30-day operative delay and designates the 
proposed rule change to be operative upon filing.\12\
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    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ See supra note 3 and accompanying text.
    \12\ 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).
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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 
would otherwise further 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="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#285a5d444d054b4745454d465c5b685b4d4b064f475e"><span class="__cf_email__" data-cfemail="1664637a733b75797b7b737862655665737538717960">[email&#160;protected]</span></a>. Please include 
File Number SR-LTSE-2026-20 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-2026-20. 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="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>). 
Copies of the filing will be available for inspection and copying at 
the principal office of LTSE and on its internet website at <a href="https://longtermstockexchange.com/">https://longtermstockexchange.com/</a>. 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-2026-20 and should be submitted on or before October 26, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-20305 Filed 10-2-26; 8:45 am]
BILLING CODE 8011-01-P


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