Notice2026-21244
Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Warrant Performance Incentive Program
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
October 19, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 200 (Monday, October 19, 2026)</title>
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[Federal Register Volume 91, Number 200 (Monday, October 19, 2026)]
[Notices]
[Pages 66182-66187]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21244]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106663; File No. SR-24X-2026-26]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Warrant Performance Incentive Program
October 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 October 1, 2026, 24X National Exchange LLC (``24X'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III 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.
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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 make certain amendments to its warrant
performance incentive program. 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 adopted a warrant performance incentive program
(``Program'') to allow Members of the Exchange who participate in the
Program (``Participants'') \3\ to earn the right to purchase Non-Voting
Common Units \4\ of 24X US Holdings LLC (``24X US Holdco''), the
Exchange's parent company.\5\ As described in the Warrant Program
Release, each Member of the Exchange may become a Participant in the
Program by prepaying $500,000 in Exchange fees (``Prepayment Fee'') and
satisfying the Program eligibility requirements.\6\ Upon joining the
Program, each Participant will receive a warrant that vests based on
the Participant's achievement of certain minimum trading volumes
(``Target Volume'') \7\ on the Exchange during each designated pre-
determined period in which the Program is in effect (``Measurement
Period'') \8\ and the Exchange's achievement of a minimum market share
during such Measurement Periods (``24X Minimum Overall Market
Share'').\9\ When the warrants vest, Participants will have the right
to exercise the warrants to purchase a certain number of 24X US Holdco
Non-Voting Common Units.
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\3\ A recent amendment to the Program also allows Sponsored
Participants to be joint Participants in the Program together with a
Sponsoring Member of the Exchange. See Securities Exchange Act Rel
No. 105481 (May 13, 2026), 91 FR 28695 (May 18, 2026) (SR-24X-2026-
16). For purposes of this proposed rule change, ``Participant''
collectively refers to both Members of the Exchange who are
Participants of the Program and Sponsored Participants of the
Exchange who jointly participate in the Program together with a
Sponsoring Member of the Exchange.
\4\ 24X notes that it filed a proposed rule change for immediate
effectiveness to amend the Second Amended and Restated Limited
Liability Company Agreement of 24X US Holdings LLC, as amended
(``24X US Holdco LLC Agreement'') to accommodate aspects of the
proposal that affected the 24X US Holdco LLC Agreement. The changes
to the 24X Holdco LLC Agreement included amendments to authorize the
issuance of Non-Voting Common Units as well as the implementation of
the liquidity program related to the Program. Securities Exchange
Act Rel. No. 104098 (Sept. 26, 2025), 90 FR 47029 (Sept. 30, 2025)
(SR-24X-2025-11).
\5\ Securities Exchange Act. Rel. No. 104018 (Sept. 23, 2025),
90 FR 46437 (Sept. 26, 2025) (SR-24X-2025-04) (``Warrant Program
Release''). The Exchange later amended certain dates in the Program.
Securities Exchange Act Rel. No. 104257 (Nov. 25, 2025), 90 FR 55207
(Dec. 1, 2025) (SR-24X-2025-12) (``Amended Warrant Program
Release''). These two releases are collectively referred to as the
``Warrant Program Releases.''
\6\ See Warrant Program Release at 46437-46438.
\7\ As discussed in more detail in the Warrant Program Release,
the ``Target Volume'' is 5% of the average daily trading volume on
the Exchange, where the daily trading volume is calculated based on
total aggregated average daily volume traded over each Measurement
Period.
\8\ As discussed in more detail in the Warrant Program Releases,
the ``Measurement Period'' for Year 1 (2025) is October 14, 2025
through December 31, 2025; the Measurement Periods for Year 2 (2026)
are (1) January 1-March 31, 2026, (2) April 1-June 30, 2026, (3)
July 1-September 30, 2026, and (4) October 1--December 31, 2026; and
the Measurement Periods for Year 3 (2027) are (1) January 1-March
31, 2027, (2) April 1-June 30, 2027, (3) July 1-September 30, 2027
and (4) October 1-December 31, 2027.
\9\ As discussed in more detail in the Warrant Program Release,
the ``24X Minimum Overall Market Share'' is defined as follows: (1)
for each Measurement Period of Year 2, the 24X Minimum Overall
Market Share is 0.50% of the Consolidated Average Daily Volume
(``CADV'') for all NMS Stocks eligible for trading on 24X; and (2)
for each Measurement Period of Year 3, the 24X Minimum Overall
Market Share is 1.00% of the CADV for all NMS Stocks eligible for
trading on 24X.
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The Exchange has determined to revise the Program to make
additional Non-Voting Common Units available to be purchased by
Participants starting in the first Measurement Period of 2027
(``Additional Equity''), under different terms than those applicable to
the Non-Voting Common Units currently available to be purchased through
the Program (``Original Equity''). Specifically, the right to purchase
Additional Equity would extend through two additional Measurement
Periods in 2028, would be subject to a reduced Prepayment Fee, and
would be based on maker volume only instead of total trading volume.
[[Page 66183]]
The Exchange also proposes to make two additional changes to the
terms of the Program that would apply to the right to purchase both the
Original Equity and the Additional Equity. Specifically, as described
below, the Exchange proposes to eliminate the 24X Minimum Overall
Market Share threshold requirement and exclude certain dates from the
calculation of Target Volume in each Measurement Period. All other
aspects of the Program would remain the same as described in the
Warrant Program Releases.
The Exchange proposes to implement the rule change on October 1,
2026. None of the proposed changes would be applied retroactively.
a. Proposed Changes With Respect to Additional Equity Only
i. Description and Timing of Additional Equity
The Original Equity consists of 1,098,040 Non-Voting Common Units
representing 10% of the outstanding total Units on a fully diluted
basis of 24X US Holdco as of September 29, 2025. The Original Equity
may be purchased by Participants upon the exercise of warrants that
vest in accordance with the Program based on trading that occurs during
the Program Period, which begins on and including October 14, 2025 and
ends on and including December 31, 2027.\10\ The Original Equity is
allocated among the Measurement Periods for each of the three years of
the Program as follows: \11\
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\10\ See Warrant Program Release at 46438-46439.
\11\ See id.
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Percentage of
outstanding total
units on a fully
Measurement period Non-voting diluted basis of 24X
common units US Holdco as of
September 29, 2025
(%)
------------------------------------------------------------------------
October 14, 2025-December 31, 2025 219,608 2.00
January 1, 2026-March 31, 2026.... 82,353 0.75
April 1, 2026-June 30, 2026....... 82,353 0.75
July 1, 2026-September 30, 2026... 82,353 0.75
October 1, 2026-December 31, 2026. 82,353 0.75
January 1, 2027-March 31, 2027.... 137,255 1.25
April 1, 2027-June 30, 2027....... 137,255 1.25
July 1, 2027-September 30, 2027... 137,255 1.25
October 1, 2027-December 31, 2027. 137,255 1.25
------------------------------------------------------------------------
The Exchange proposes to also make the Additional Equity available
for purchase by Participants upon the exercise of warrants that vest in
accordance with the Program based on trading that occurs during the
last four Measurement Periods of the existing Program (from and
including January 1, 2027 through and including December 31, 2027) and
also during two additional Measurement Periods that would begin on and
including January 1, 2028 and end on and including June 30, 2028. The
Additional Equity would consist of 2,759,103 Non-Voting Common Units
representing 22.25% of the outstanding total Units on a fully diluted
basis of 24X US Holdco as of September 29, 2025. The Additional Equity
would be allocated among the above-mentioned Measurement Periods as
follows:
------------------------------------------------------------------------
Percentage of
outstanding total
units on a fully
Measurement period Non-voting diluted basis of 24X
common units US Holdco as of
September 29, 2025
(%)
------------------------------------------------------------------------
January 1, 2027-March 31, 2027.... 1,023,038 8.25
April 1, 2027-June 30, 2027....... 310,012 2.50
July 1, 2027-September 30, 2027... 310,012 2.50
October 1, 2027-December 31, 2027. 310,012 2.50
January 1, 2028-March 31, 2028.... 310,012 2.50
April 1, 2028-June 30, 2028....... 496,017 4.00
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The following table describes the overall number and allocation of
Non-Voting Common Units that would be available for purchase by
Participants in accordance with the proposed revised Program:
[[Page 66184]]
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Combined percentage
Combined original of outstanding total
Original Additional equity equity and units on a fully
Measurement period equity non- non-voting common additional equity diluted basis of 24X
voting common units non-voting common US Holdco as of
units units September 29, 2025
(%)
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October 14, 2025-December 31, 2025 219,608 .................. 219,608 2.00
January 1, 2026-March 31, 2026.... 82,353 .................. 82,353 0.75
April 1, 2026-June 30, 2026....... 82,353 .................. 82,353 0.75
July 1, 2026-September 30, 2026... 82,353 .................. 82,353 0.75
October 1, 2026-December 31, 2026. 82,353 .................. 82,353 0.75
January 1, 2027-March 31, 2027.... 137,255 1,023,038 1,160,293 9.50
April 1, 2027-June 30, 2027....... 137,255 310,012 447,267 3.75
July 1, 2027-September 30, 2027... 137,255 310,012 447,267 3.75
October 1, 2027-December 31, 2027. 137,255 310,012 447,267 3.75
January 1, 2028-March 31, 2028.... .............. 310,012 310,012 2.50
April 1, 2028-June 30, 2028....... .............. 496,017 496,017 4.00
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Total......................... 1,098,040 2,759,103 3,857,143 32.25
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As described below, the Exchange proposes that depending on which
Prepayment Fee they elect to pay, Participants of the Program may
become eligible to earn either (i) the right to purchase both Original
Equity and Additional Equity or (ii) the right to purchase Additional
Equity only.
ii. Prepayment Fee
The Exchange proposes that current Participants of the Program who
have already paid the $500,000 Prepayment Fee will be automatically
eligible to earn the right to purchase Additional Equity for any
Measurement Period in which the Program thresholds are met, as long as
those Participants continue to meet the other Program eligibility
requirements. The Exchange also proposes that any Participant who joins
the Program after the proposed rule change goes into effect can either
(i) prepay $500,000 in Exchange fees to become eligible to earn the
right to purchase both Original Equity and Additional Equity, or (ii)
prepay a reduced amount of $250,000 in Exchange fees to become eligible
to earn the right to purchase Additional Equity only. The Prepayment
Fee must be tendered by the first day of each quarter of the Program
Period to participate in the Program as of such quarter until April 1,
2028.
The following are examples of the timing of participation in the
Program:
<bullet> If Participant A joined the Program by tendering the
$500,000 Prepayment Fee and executing the required documentation on
October 14, 2025 (the date trading commenced on the Exchange), then
Participant A's trading starting on October 14, 2025 would be counted
toward the Target Volume for Year 1 and thereafter until the end of the
Program Period. Participant A would be eligible to earn the right to
purchase both Original Equity and Additional Equity for the entire
Program Period.
<bullet> If Participant B joined the Program by tendering the
$500,000 Prepayment Fee and executing the required documentation on
October 22, 2026, then Participant B's trading starting on January 1,
2027 would be counted toward the Target Volume for the first quarter of
Year 3 (i.e., the first Measurement Period for Year 3) and thereafter
until the end of the Program Period. Participant B would be eligible to
earn the right to purchase both Original Equity and Additional Equity
starting with the Measurement Period that begins on January 1, 2027
throughout the end of the Program Period.
<bullet> If Participant C joined the Program by tendering the
$250,000 Prepayment Fee and executing the required documentation on
October 22, 2026, then Participant C's trading starting on January 1,
2027 would be counted toward the Target Volume for the first quarter of
Year 3 (i.e., the first Measurement Period for Year 3) and thereafter
until the end of the Program Period. Participant C would be eligible to
earn the right to purchase Additional Equity only starting with the
Measurement Period that begins on January 1, 2027 throughout the end of
the Program Period.
<bullet> If Participant D joined the Program by tendering the
$500,000 Prepayment Fee and executing the required documentation on
October 1, 2027, then Participant D's trading starting on October 1,
2027 would be counted toward the Target Volume for the fourth quarter
of Year 3 (i.e., the last Measurement Period in Year 3) and the first
quarter of Year 4 (i.e., the only Measurement Period in Year 4).
Participant D would be eligible to earn both the right to purchase
Original Equity for the last Measurement Period in Year 3 and the right
to purchase Additional Equity for the last Measurement Period in Year 3
and the only two Measurement Periods in Year 4. No Member may become a
Participant that is eligible to earn Original Equity after October 1,
2027.
<bullet> If Participant E joined the Program by tendering the
$250,000 Prepayment Fee and executing the required documentation on
April 1, 2028, then Participant E's trading starting on April 1, 2028
would be counted toward the Target Volume for the second quarter of
Year 4 (i.e., the second Measurement Period in Year 4). Participant E
would be eligible to earn the right to purchase Additional Equity for
the second Measurement Period in Year 4. No Member may become a
Participant after April 1, 2028.
All other terms regarding the Prepayment Fee would remain unchanged
as described in the Warrant Program Releases.
iii. Target Volume Calculation
As described in the Warrant Program Release, the Target Volume that
Participants must meet in order for their warrants to vest is 5% of the
average daily trading volume on the Exchange, where the daily trading
volume is calculated based on total aggregated average daily volume
traded over each Measurement Period.\12\ The Exchange proposes that
with respect to Additional Equity only, Target Volume for each
[[Page 66185]]
Measurement Period will be calculated based solely on Participants'
maker volume (i.e., trading volume which adds liquidity to the
Exchange). Target Volume will continue to be calculated based on total
trading volume with respect to Original Equity.
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\12\ See Warrant Program Release at 46439.
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Pursuant to the Program requirements, the Non-Voting Common Units
subject to the Program would be allocated among Participants who have
met or outperformed the Target Volume during each Measurement Period on
a pro rata basis based on volume contributions to the 24X market. As
described in the Warrant Program Release, the volumes for each
Participant are calculated for each of the Measurement Periods,\13\ and
the Non-Voting Common Units indicated are allocated among Participants
after the end of each Measurement Period. With respect to Additional
Equity only, the Exchange proposes to add two Measurement Periods
during the first and second quarters of Year 4. Therefore, the Non-
Voting Common Units that would be available to be purchased for the
first Measurement Period of Year 4 in accordance with the Program will
be allocated among Participants that meet the Target Volume on or
before April 5, 2028 and after March 31, 2028, based on trading during
the first Measurement Period of Year 4, which is the quarterly period
from January 1, 2028 through March 31, 2028. The Non-Voting Common
Units that would be available to be purchased for the second
Measurement Period of Year 4 in accordance with the Program will be
allocated among Participants that meet the Target Volume on or before
July 5, 2028 and after June 30, 2028, based on trading during the
second Measurement Period of Year 4, which is the quarterly period from
April 1, 2028 through June 30, 2028. All other terms regarding Target
Volume would remain unchanged as described in the Warrant Program
Releases.
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\13\ The volume for the Exchange is also calculated for each of
the Measurement Periods.
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b. Proposed Changes With Respect to Both Original Equity and Additional
Equity
i. Elimination of 24X Minimum Overall Market Share Threshold
As described in the Warrant Program Releases, the 24X Minimum
Overall Market Share is a designated target percentage of the CADV for
all NMS Stocks eligible for trading on 24X for each relevant
Measurement Period.\14\ The CADV is calculated based on the volume
reported by all exchanges and trade reporting facilities to a
consolidated transaction reporting plan for the relevant Measurement
Period.
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\14\ See Warrant Program Release at 46439.
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In order to incentivize participation in the Program and bring
greater volume and liquidity to the Exchange, the Exchange proposes to
eliminate the 24X Minimum Overall Market Share requirement with respect
to Original Equity, and to not implement a 24X Minimum Overall Market
Share requirement with respect to Additional Equity. Elimination of the
requirement would make Program outcomes more predictable for
Participants because Exchange market share depends on the trading
activity of all Members and on changes in overall U.S. equity market
volume, rather than the individual actions of each Participant. By
allowing Participants to determine whether their warrants will vest
solely by choosing to meet the Target Volume and not having to rely on
other factors outside their control, the proposed revised Program would
both attract more new Participants and encourage existing Participants
to increase the amount of liquidity they contribute to the Exchange.
The Exchange also notes that another national securities exchange
offers a warrant program that does not include an exchange market share
threshold as a warrant vesting condition.\15\
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\15\ See Securities Exchange Act Rel. No. 105090 (Mar. 26,
2026), 91 FR 16044 (Mar. 31, 2026) (SR-TXSE-2026-003).
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ii. Exclusion of Dates
With respect to both Original Equity and Additional Equity, the
Exchange also proposes to exclude the following dates from the
calculation of the Target Volume that Participants must meet in each
Measurement Period in order for their warrants to vest:
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Date Description
------------------------------------------------------------------------
November 30, 2026............ MSCI Index Rebalance.
December 11, 2026............ Russell Index Reconstitution.
December 18, 2026............ S&P 500, S&P MidCap 400, and S&P SmallCap
600 Quarterly Rebalances.
February 28, 2027............ MSCI Index Rebalance.
March 19, 2027............... S&P 500, S&P MidCap 400, and S&P SmallCap
600 Quarterly Rebalances.
May 27, 2027................. MSCI Index Rebalance.
June 18, 2027................ S&P 500, S&P MidCap 400, and S&P SmallCap
600 Quarterly Rebalances.
June 25, 2027................ Russell Index Reconstitution.
August 31, 2027.............. MSCI Index Rebalance.
September 17, 2027........... S&P 500, S&P MidCap 400, and S&P SmallCap
600 Quarterly Rebalances.
November 30, 2027............ MSCI Index Rebalance.
December 10, 2027............ Russell Index Reconstitution.
December 17, 2027............ S&P 500, S&P MidCap 400, and S&P SmallCap
600 Quarterly Rebalances.
February 29, 2028............ MSCI Index Rebalance.
March 17, 2028............... S&P 500, S&P MidCap 400, and S&P SmallCap
600 Quarterly Rebalances.
May 31, 2028................. MSCI Index Rebalance.
June 16, 2028................ S&P 500, S&P MidCap 400, and S&P SmallCap
600 Quarterly Rebalances.
June 23, 2028................ Russell Index Reconstitution.
------------------------------------------------------------------------
On equivalent rebalance and reconstitution dates in the past, a
significant percentage of consolidated trading volume has occurred
during the closing auctions on the primary listing exchanges. Because
these auction executions were not available to the Exchange or Program
Participants, they artificially increased consolidated market volume
while providing no realistic opportunity for Participants to increase
trading volume on 24X. The Exchange therefore proposes to exclude the
above dates from the calculation of Target Volume given that their
inclusion would create a diluting effect that would make it more
difficult for
[[Page 66186]]
Participants to achieve Target Volume through ordinary trading
activity.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Exchange Act \16\ in general, and furthers the
objectives of Section 6(b)(5) of the Exchange Act \17\ in particular,
in that it is 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 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 the
Section 6(b)(5) of the Exchange Act \18\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Exchange also believes the
proposed rule change is consistent with Section 6(b)(4) of the Exchange
Act,\19\ which requires that Exchange rules provide for the equitable
allocation of reasonable dues, fees and other charges among its members
and other persons using its facilities.
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\16\ 15 U.S.C. 78f.
\17\ 15 U.S.C. 78f(b)(5).
\18\ See id.
\19\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed changes to the Program are
consistent with the Act. Making the Additional Equity available for
purchase through the Program at a reduced Prepayment Fee and based on
maker volume only would both encourage additional Participant
enrollment in the Program, and encourage Participants to provide
additional volume and liquidity to the Exchange. The Exchange believes
that an increase in volume and liquidity would benefit all market
participants by providing more trading opportunities and tighter
spreads, even to those market participants that do not participate in
the Program, thereby perfecting the mechanism for a free and open
market and national market system.
Moreover, the elimination of the 24X Minimum Overall Market Share
requirement and exclusion of certain dates from the calculation of
Target Volume with respect to both Original Equity and Additional
Equity would make it more likely that Participants' warrants would vest
in any given Measurement Period. As described above, elimination of the
24X Minimum Overall Market Share requirement would allow Participants
to have more control over whether their warrants vest in any given
Measurement Period,\20\ and exclusion of certain dates from the
calculation of Target Volume would remove a potential diluting effect
that otherwise would hamper Participants' ability to achieve Target
Volume through ordinary trading activity. These incentives would
promote the long-term interests of the Exchange by attracting new
Participants and encouraging existing Participants to contribute to the
growth and success of the Exchange via actively providing liquidity on
the 24X market, and to provide additional investment and funding which
could be used for the regulation and operation of the Exchange. The
Exchange believes that the additional funds provided as a result of
these changes would enable the Exchange to have greater capacity 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, which, in turn, would protect investors and the public
interest.
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\20\ The proposed removal of the 24X Minimum Overall Market
Share requirement is also consistent with the structure of the
warrant program of another national securities exchange. See supra
n. 15.
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The Exchange believes that the proposed changes are equitable and
not unfairly discriminatory because all Participants may earn the right
to purchase both Original Equity and Additional Equity on the same
terms and conditions. The additional Measurement Period, Prepayment Fee
schedule, and Target Volume modification with respect to Additional
Equity are objective and the same for all Participants. Likewise, the
elimination of the 24X Minimum Overall Market Share requirement and
exclusion of certain dates from the calculation of Target Volume with
respect to both Additional Equity and Original Equity are based on
objective standards and would have the same effect for all
Participants.
A Participant's total equity ownership of 24X US Holdco Units,
including any purchased through the exercise of vested warrants via the
Program, shall be subject to the ownership limitations of the 24X US
Holdco LLC Agreement.\21\ Accordingly, a Participant will not be able
to exercise warrants for Non-Voting Common Units to the extent that
such exercise would violate such ownership limitations.
---------------------------------------------------------------------------
\21\ See, e.g., Section III of the 24X US Holdco LLC Agreement.
---------------------------------------------------------------------------
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 Program as amended by this proposed rule change would
increase both intermarket and intramarket competition by incentivizing
Participants to add liquidity to the Exchange, which will enhance the
quality of quoting and increase the volume of securities traded on the
Exchange. To the extent that there is an additional competitive burden
on non-Participants, the Exchange believes that such burden is
appropriate because the Program should incentivize Participants to add
liquidity to the Exchange and thus enhance the volume of securities
traded on the Exchange. To the extent that this purpose is achieved,
the Exchange believes that all of the Exchange's market participants
would benefit from the improved market liquidity.
Given the robust competition for volume among equities markets,
implementing a program to attract liquidity addition like the one
proposed in this filing is consistent with the abovementioned goals of
the Exchange Act. This is especially true for the smaller exchange
markets, such as 24X, which are competing for volume with much larger
exchanges that dominate the equities trading industry. As a new
exchange, 24X will likely continue to have a nominal percentage of the
average daily trading volume in equities in the near term, so it is
unlikely that the Program could cause any competitive harm to the
equities market or to market participants. Rather, the Program is a
modest attempt to attract order volume away from larger competitors by
adopting an innovative pricing strategy. The Exchange notes that if the
Program results in a modest percentage increase in the average daily
trading volume on 24X, while such percentage would represent a large
volume increase for 24X, it would represent a minimal reduction in
volume of its larger competitors in the industry. The Exchange believes
that the Program will help further competition, because market
participants will have yet another option in determining where to post
liquidity if they factor the benefits of 24X equity participation into
the determination.
[[Page 66187]]
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) \22\ of the Act and subparagraph (f)(2) of Rule 19b-4
thereunder,\23\ 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) \24\ of the Act to
determine whether the proposed rule change should be approved or
disapproved.
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\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 17 CFR 240.19b-4(f)(2).
\24\ 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#b2c0c7ded79fd1dddfdfd7dcc6c1f2c1d7d19cd5ddc4"><span class="__cf_email__" data-cfemail="86f4f3eae3abe5e9ebebe3e8f2f5c6f5e3e5a8e1e9f0">[email protected]</span></a>. Please include
file number SR-24X-2026-26 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-2026-26. 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-2026-26 and should be submitted on
or before November 9, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-21244 Filed 10-16-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on October 19, 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.