24X National Exchange LLC; Notice of Filing of Amendment No. 1 to an Application for Registration as a National Securities Exchange Under Section 6 of the Securities Exchange Act of 1934, 67725-67726 [2022-24380]

Download as PDF Federal Register / Vol. 87, No. 216 / Wednesday, November 9, 2022 / Notices proposed changes would update the Framework to describe the process by which FICC would designate uncommitted liquidity resources as QLR, clarify that FICC may have access to liquidity resources that are not designated as QLR, and improve the clarity of the descriptions of the Clearing Agencies’ liquidity risk management functions. Therefore, the proposed changes relate mostly to the operation of the Framework and/or are technical in nature. As such, the Clearing Agencies do not believe that the proposed rule change would have any impact on competition. (C) Clearing Agency’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Clearing Agencies have not received or solicited any written comments relating to this proposal. If any written comments are received, they will be publicly filed as an Exhibit 2 to this filing, as required by Form 19b–4 and the General Instructions thereto. Persons submitting comments are cautioned that, according to Section IV (Solicitation of Comments) of the Exhibit 1A in the General Instructions to Form 19b–4, the Commission does not edit personal identifying information from comment submissions. Commenters should submit only information that they wish to make available publicly, including their name, email address, and any other identifying information. All prospective commenters should follow the Commission’s instructions on how to submit comments, available at https://www.sec.gov/regulatory-actions/ how-to-submit-comments. General questions regarding the rule filing process or logistical questions regarding this filing should be directed to the Main Office of the Commission’s Division of Trading and Markets at tradingandmarkets@sec.gov or 202– 551–5777. The Clearing Agencies reserve the right to not respond to any comments received. khammond on DSKJM1Z7X2PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change, and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: VerDate Sep<11>2014 17:09 Nov 08, 2022 Jkt 259001 (A) by order approve or disapprove such proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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: 67725 2022–013 and should be submitted on or before November 30, 2022. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.27 J. Matthew DeLesDernier, Deputy Secretary. [FR Doc. 2022–24410 Filed 11–8–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–96218; File No. 10–239] • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NSCC–2022–013 on the subject line. 24X National Exchange LLC; Notice of Filing of Amendment No. 1 to an Application for Registration as a National Securities Exchange Under Section 6 of the Securities Exchange Act of 1934 Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549. All submissions should refer to File Number SR–NSCC–2022–013. 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 (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of NSCC and on DTCC’s website (https://dtcc.com/legal/sec-rulefilings.aspx). All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NSCC– PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 November 3, 2022. On March 25, 2022, 24X National Exchange LLC (‘‘24X’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a Form 1 application under the Securities Exchange Act of 1934 (‘‘Act’’) seeking registration as a national securities exchange under Section 6 of the Act.1 Notice of the application was published for comment in the Federal Register on June 6, 2022.2 The Commission received comment letters on 24X’s Initial Form 1 Application and a letter from 24X responding to these comment letters.3 On September 1, 2022, the Commission instituted proceedings pursuant to Section 19(a)(1)(B) of the Act 4 to determine whether to grant or deny 24X’s application for registration as a national securities exchange under Section 6 of the Act (the ‘‘OIP’’).5 The Commission received one comment letter in response to the OIP,6 and a letter in response to the OIP from 24X.7 On October 21, 2022, 24X filed an amendment to its Initial Form 1 27 17 CFR 200.30–3(a)(12). U.S.C. 78f. 2 See Securities Exchange Act Release No. 95007 (May 31, 2022), 87 FR 34333 (June 6, 2022) (‘‘Initial Form 1 Application’’). 3 The public comment file for 24X’s Form 1 application (File No. 10–239) is available on the Commission’s website at: https://www.sec.gov/ comments/10-239/10-239.htm. 4 15 U.S.C. 78s(a)(1)(B). 5 See Securities Exchange Act Release No. 95651 (Sept.1, 2022), 87 FR 54736 (Sept. 7, 2022). 6 See letter from Brian Hyndman, President and Chief Executive Officer, Blue Ocean ATS, LLC, dated Sept. 28, 2022, to Vanessa A. Countryman, Secretary, Commission. 7 See letter from James M. Brady, Katten Muchin Rosenman LLP, outside counsel for 24X National Exchange LLC, dated Oct. 18, 2022, to Vanessa A. Countryman, Secretary, Commission. 1 15 E:\FR\FM\09NON1.SGM 09NON1 67726 Federal Register / Vol. 87, No. 216 / Wednesday, November 9, 2022 / Notices Application (‘‘Amendment No. 1’’).8 The Commission is publishing this notice in order to solicit views of interested persons on 24X’s Initial Form 1 Application, as amended by Amendment No. 1. I. Description of 24X’s Proposed Trading System 24X proposes to operate a fully automated electronic trading platform for the trading of listed NMS stocks pursuant to unlisted trading privileges.9 24X would not maintain a physical trading floor.10 24X proposes to allow trading in NMS stocks 24 hours a day, 7 days per week, 365 days a year.11 24X has proposed specific rules to govern trading during regular trading hours 12 as well as trading outside of regular trading hours.13 II. Amendment No. 1 to 24X’s Initial Form 1 Application In Amendment No. 1, 24X proposed several changes to its trading system and corporate governance, and provided additional financial statements. Among other things, Amendment No. 1 revised the corporate documents of 24X and its direct holding company; 14 amended 24X’s proposed rules and User Manual; 15 filed additional financial statements for 24X’s immediate holding company; 16 and provided additional information about the finances for 24X.17 khammond on DSKJM1Z7X2PROD with NOTICES III. Request for Written Comment The Commission requests that interested persons provide written views and data with respect to 24X’s Initial Form 1 Application, as amended 8 Amendment No. 1 is available on the Commission’s website at: https://www.sec.gov/ rules/other/2022/24x/24x-form-1.htm. 9 See Exhibit E, as amended by 24X’s Amendment No. 1, at 1, 4. 10 Id. at 1. 11 See proposed 24X Rule 11.1 (describing the hours of trading and trading days for 24X). 12 Regulation NMS Rule 600(b)(77) defines ‘‘regular trading hours’’ as ‘‘the time between 9:30 a.m. and 4:00 p.m. Eastern Time . . .’’ 24X proposes to define four different trading sessions. See proposed 24X Rules 1.5(b), defining the ‘‘24X Market Session’’; 1.5(k) defining the ‘‘Core Market Session’’; 1.5(v) defining the ‘‘Post-market Session’’; and 1.5(w) defining the ‘‘Pre-Market Session’’. 13 See e.g., proposed 24X Rule 11.16 (describing what orders are eligible for execution outside of regular trading hours). 14 See Exhibits A and C, as amended by 24X’s Amendment No. 1. 15 See Exhibits B and E, as amended by 24’s Amendment No. 1. For example, 24X has proposed to delete its proposal to trade fractional shares and to have a mirrored platform in London, as proposed in 24X’s Initial Form 1 Application. 16 See Exhibit D, as amended by 24’x Amendment No. 1. 17 See Exhibit I, as amended by 24X’s Amendment No. 1. VerDate Sep<11>2014 17:09 Nov 08, 2022 Jkt 259001 by Amendment No. 1. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number 10– 239 on the subject line. Paper Comments • 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 10–239. 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 (https://www.sec.gov/ rules/other.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to 24X’s Initial Form 1 Application, as amended by Amendment No. 1, filed with the Commission, and all written communications relating to the application between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from submissions. You should submit only information that you wish to make publicly available. All submissions should refer to File Number 10–239 and should be submitted on or before November 30, 2022. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 J. Matthew DeLesDernier, Deputy Secretary. [FR Doc. 2022–24380 Filed 11–8–22; 8:45 am] BILLING CODE 8011–01–P 18 17 PO 00000 CFR 200.30–3(a)(71)(ii). Frm 00058 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–498, OMB Control No. 3235–0556] Proposed Collection; Comment Request; Extension: Rule 15b11–1/ Form BD–N Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the collection of information provided for in Rule 15b11–1 (17 CFR 240.15b11–1) under the Securities Exchange Act of 1934 (‘‘Exchange Act’’) (15 U.S.C. 78a et seq.) and Form BD–N (17 CFR 249.501b). The Commission plans to submit this existing collection of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Rule 15b11–1 provides that a broker or dealer may register by notice pursuant to section 15(b)(11)(A) of the Exchange Act (15 U.S.C. 78o(b)(11)(A)) if it: (1) is registered with the Commodity Futures Trading Commission as a futures commission merchant or an introducing broker, as those terms are defined in the Commodity Exchange Act (7 U.S.C. 1, et seq.); (2) is a member of the National Futures Association or another national securities association registered under section 15A(k) of the Exchange Act (15 U.S.C. 78o–3(k)); and (3) is not required to register as a broker or dealer in connection with transactions in securities other than security futures products. The rule also requires a broker or dealer registering by notice to do so by filing Form BD–N (17 CFR 249.501b) in accordance with the instructions to the form. In addition, the rule provides that if the information provided by filing the form is or becomes inaccurate for any reason, the broker or dealer shall promptly file an amendment on the form correcting such information. The Commission staff estimates that the total annual reporting burden associated with Rule 15b11–1 and Form BD–N is approximately three hours, based on an average of zero initial notice registrations per year that each take approximately 30 minutes to complete, for zero hours, plus an average of eleven amendments per year that each take approximately fifteen minutes to complete, for 2.75 hours, E:\FR\FM\09NON1.SGM 09NON1

Agencies

[Federal Register Volume 87, Number 216 (Wednesday, November 9, 2022)]
[Notices]
[Pages 67725-67726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24380]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96218; File No. 10-239]


24X National Exchange LLC; Notice of Filing of Amendment No. 1 to 
an Application for Registration as a National Securities Exchange Under 
Section 6 of the Securities Exchange Act of 1934

November 3, 2022.
    On March 25, 2022, 24X National Exchange LLC (``24X'') filed with 
the Securities and Exchange Commission (``Commission'') a Form 1 
application under the Securities Exchange Act of 1934 (``Act'') seeking 
registration as a national securities exchange under Section 6 of the 
Act.\1\ Notice of the application was published for comment in the 
Federal Register on June 6, 2022.\2\ The Commission received comment 
letters on 24X's Initial Form 1 Application and a letter from 24X 
responding to these comment letters.\3\ On September 1, 2022, the 
Commission instituted proceedings pursuant to Section 19(a)(1)(B) of 
the Act \4\ to determine whether to grant or deny 24X's application for 
registration as a national securities exchange under Section 6 of the 
Act (the ``OIP'').\5\ The Commission received one comment letter in 
response to the OIP,\6\ and a letter in response to the OIP from 
24X.\7\ On October 21, 2022, 24X filed an amendment to its Initial Form 
1

[[Page 67726]]

Application (``Amendment No. 1'').\8\ The Commission is publishing this 
notice in order to solicit views of interested persons on 24X's Initial 
Form 1 Application, as amended by Amendment No. 1.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78f.
    \2\ See Securities Exchange Act Release No. 95007 (May 31, 
2022), 87 FR 34333 (June 6, 2022) (``Initial Form 1 Application'').
    \3\ The public comment file for 24X's Form 1 application (File 
No. 10-239) is available on the Commission's website at: https://www.sec.gov/comments/10-239/10-239.htm.
    \4\ 15 U.S.C. 78s(a)(1)(B).
    \5\ See Securities Exchange Act Release No. 95651 (Sept.1, 
2022), 87 FR 54736 (Sept. 7, 2022).
    \6\ See letter from Brian Hyndman, President and Chief Executive 
Officer, Blue Ocean ATS, LLC, dated Sept. 28, 2022, to Vanessa A. 
Countryman, Secretary, Commission.
    \7\ See letter from James M. Brady, Katten Muchin Rosenman LLP, 
outside counsel for 24X National Exchange LLC, dated Oct. 18, 2022, 
to Vanessa A. Countryman, Secretary, Commission.
    \8\ Amendment No. 1 is available on the Commission's website at: 
https://www.sec.gov/rules/other/2022/24x/24x-form-1.htm.
---------------------------------------------------------------------------

I. Description of 24X's Proposed Trading System

    24X proposes to operate a fully automated electronic trading 
platform for the trading of listed NMS stocks pursuant to unlisted 
trading privileges.\9\ 24X would not maintain a physical trading 
floor.\10\ 24X proposes to allow trading in NMS stocks 24 hours a day, 
7 days per week, 365 days a year.\11\ 24X has proposed specific rules 
to govern trading during regular trading hours \12\ as well as trading 
outside of regular trading hours.\13\
---------------------------------------------------------------------------

    \9\ See Exhibit E, as amended by 24X's Amendment No. 1, at 1, 4.
    \10\ Id. at 1.
    \11\ See proposed 24X Rule 11.1 (describing the hours of trading 
and trading days for 24X).
    \12\ Regulation NMS Rule 600(b)(77) defines ``regular trading 
hours'' as ``the time between 9:30 a.m. and 4:00 p.m. Eastern Time . 
. .'' 24X proposes to define four different trading sessions. See 
proposed 24X Rules 1.5(b), defining the ``24X Market Session''; 
1.5(k) defining the ``Core Market Session''; 1.5(v) defining the 
``Post-market Session''; and 1.5(w) defining the ``Pre-Market 
Session''.
    \13\ See e.g., proposed 24X Rule 11.16 (describing what orders 
are eligible for execution outside of regular trading hours).
---------------------------------------------------------------------------

II. Amendment No. 1 to 24X's Initial Form 1 Application

    In Amendment No. 1, 24X proposed several changes to its trading 
system and corporate governance, and provided additional financial 
statements. Among other things, Amendment No. 1 revised the corporate 
documents of 24X and its direct holding company; \14\ amended 24X's 
proposed rules and User Manual; \15\ filed additional financial 
statements for 24X's immediate holding company; \16\ and provided 
additional information about the finances for 24X.\17\
---------------------------------------------------------------------------

    \14\ See Exhibits A and C, as amended by 24X's Amendment No. 1.
    \15\ See Exhibits B and E, as amended by 24's Amendment No. 1. 
For example, 24X has proposed to delete its proposal to trade 
fractional shares and to have a mirrored platform in London, as 
proposed in 24X's Initial Form 1 Application.
    \16\ See Exhibit D, as amended by 24'x Amendment No. 1.
    \17\ See Exhibit I, as amended by 24X's Amendment No. 1.
---------------------------------------------------------------------------

III. Request for Written Comment

    The Commission requests that interested persons provide written 
views and data with respect to 24X's Initial Form 1 Application, as 
amended by Amendment No. 1. Comments may be submitted by any of the 
following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number 10-239 on the subject line.

Paper Comments

     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 10-239. 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 (https://www.sec.gov/rules/other.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to 24X's Initial Form 1 Application, as amended 
by Amendment No. 1, filed with the Commission, and all written 
communications relating to the application between the Commission and 
any person, other than those that may be withheld from the public in 
accordance with the provisions of 5 U.S.C. 552, will be available for 
website viewing and printing in the Commission's Public Reference Room, 
100 F Street NE, Washington, DC 20549, on official business days 
between the hours of 10:00 a.m. and 3:00 p.m. All comments received 
will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from submissions. You should submit only information that 
you wish to make publicly available. All submissions should refer to 
File Number 10-239 and should be submitted on or before November 30, 
2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(71)(ii).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-24380 Filed 11-8-22; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.