Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Initial Fees and Rebates Applicable to Members of the Exchange Pursuant to Exchange Rule 15.110 and Adopt a Policy Relating to Billing Errors, 81587-81592 [2024-23062]
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Federal Register / Vol. 89, No. 195 / Tuesday, October 8, 2024 / Notices
Summary of Application: Applicants
request an order to permit certain
business development companies and
closed-end management investment
companies to co-invest in portfolio
companies with each other and with
certain affiliated investment entities.
Applicants: FS Credit Opportunities
Corp., PA Senior Credit Opportunities
Fund, L.P., FS Senior Credit Fund II,
L.P., FS Global Advisor, LLC, FS
Specialty Lending Fund, FS/EIG
ADVISOR, LLC, FS Tactical
Opportunities (LOI) Splitter, L.P., FS
Tactical Opportunities (SI) Splitter, L.P.,
FS Tactical Opportunities (LOI) Splitter
II, L.P., FS Tactical Opportunities (SI)
Splitter II, L.P. and FS Tactical Advisor,
LLC.
Filing Dates: The application was
filed on September 19, 2023, and
amended on January 24, 2024, May 23,
2024 and September 18, 2024.
Hearing or Notification of Hearing: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing on any application by
emailing the SEC’s Secretary at
Secretarys-Office@sec.gov and serving
the Applicants with a copy of the
request by email, if an email address is
listed for the relevant Applicant below,
or personally or by mail, if a physical
address is listed for the relevant
Applicant below.
Hearing requests should be received
by the Commission by 5:30 p.m. on
October 28, 2024, and should be
accompanied by proof of service on
applicants, in the form of an affidavit or,
for lawyers, a certificate of service.
Pursuant to rule 0–5 under the Act,
hearing requests should state the nature
of the writer’s interest, any facts bearing
upon the desirability of a hearing on the
matter, the reason for the request, and
the issues contested. Persons who wish
to be notified of a hearing may request
notification by emailing the
Commission’s Secretary at SecretarysOffice@sec.gov.
ADDRESSES: The Commission:
Secretarys-Office@sec.gov. Applicants:
Stephen S. Sypherd, 201 Rouse
Boulevard, Philadelphia, Pennsylvania
19112; James A. Lebovitz, Jonathan H.
Gaines, David Bartels, Cira Centre, 2929
Arch Street, Philadelphia, PA 19104.
FOR FURTHER INFORMATION CONTACT:
Deepak T. Pai, Senior Counsel, or
Thomas Ahmadifar, Branch Chief, at
(202) 551–6825 (Division of Investment
Management, Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: For
Applicants’ representations, legal
analysis, and conditions, please refer to
Applicants’ third amended and restated
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17:23 Oct 07, 2024
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application, dated September 18, 2024,
which may be obtained via the
Commission’s website by searching for
the file number at the top of this
document, or for an Applicant using the
Company name search field, on the
SEC’s EDGAR system.
The SEC’s EDGAR system may be
searched at, at https://www.sec.gov/
edgar/searchedgar/legacy/
companysearch.html. You may also call
the SEC’s Public Reference Room at
(202) 551–8090.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–23218 Filed 10–7–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101226; File No. SR–LTSE–
2024–06]
Self-Regulatory Organizations; LongTerm Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Adopt
Initial Fees and Rebates Applicable to
Members of the Exchange Pursuant to
Exchange Rule 15.110 and Adopt a
Policy Relating to Billing Errors
October 1, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 19, 2024, Long-Term Stock
Exchange, Inc. (‘‘LTSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
to adopt the initial fees and rebates
applicable to Members of the Exchange
pursuant to Exchange Rule 15.110
(Authority to Prescribe Dues, Fees,
Assessments and Other Charges) and
adopt a policy relating to billing errors.
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00171
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The Exchange proposes to implement
the rule change effective immediately
upon commencement of its transition to
a new trading platform.
The text of the proposed rule change
is available at the Exchange’s website at
https://longtermstockexchange.com/, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
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
The Exchange proposes to adopt a fee
schedule (the ‘‘Fee Schedule’’)
applicable to the use of the Exchange.
Additionally, the Exchange proposes to
amend Rule 15.120 (Collection of
Exchange Fees and Other Claims and
Billing Policy), as well as moving the
entirety of the text in Rule 15.200
(Schedule of Fees) to the new Fee
Schedule. These changes are part of a
larger initiative where the Exchange
intends to transition to a new trading
platform. The go-live date for this
transition is September 23, 2024 and
thus, proposed fees and changes will be
effective as of the date of such
transition.3
The Exchange first notes that it
operates in a highly competitive market
in which market participants can
readily direct order flow to competing
venues if they deem fee levels at a
particular venue to be excessive or
incentives to be insufficient. More
specifically, the Exchange will be only
one of numerous equities venues to
which market participants may direct
their order flow. Based on publicly
available information, no single
registered equities exchange currently
has more than approximately 16% of
3 Id.
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Federal Register / Vol. 89, No. 195 / Tuesday, October 8, 2024 / Notices
total market share.4 Thus, in such a lowconcentrated and highly competitive
market, no single equities exchange
possesses significant pricing power in
the execution of order flow and the
Exchange currently represents a small
percentage of the overall market.
Transaction Fees
Below is a description of the fees and
rebates that the Exchange intends to
impose under the initial proposed Fee
Schedule, which will be applicable to
transactions executed in all trading
sessions. Under the proposed Fee
Schedule, the Exchange will operate a
‘‘Maker-Taker’’ model whereby it
provides rebates to Members that
provide liquidity and charges fees to
those that remove liquidity, as further
described below. The Exchange does not
initially propose to assess volume-based
fees or rebates. Accordingly, all fees and
rebates described below are applicable
to all Members, regardless of the overall
volume of a Member’s trading activities
on the Exchange.
The Exchange proposes to adopt a
pricing strategy that incentivizes adding
displayed liquidity on the Exchange in
order to encourage and facilitate price
discovery and price formation, which
the Exchange believes benefits all
Members and investors. Details of this
pricing strategy are laid out below:
(A) Standard Fee for Removing
Liquidity
The Exchange proposes a fee of
$0.0030 per share for executions of
orders that remove liquidity from the
LTSE Order Book 5 (‘‘Remove
Liquidity’’) in securities priced at or
above $1.00 per share or 0.30% of the
total dollar value (‘‘TDV’’) for securities
priced under $1.00.6
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(B) Standard Rebate for Adding
Displayed Liquidity
The Exchange proposes to provide a
rebate of $0.0028 per share for
executions of orders that: (i) are
displayed on the LTSE Order Book and
(ii) add liquidity to the Exchange
(‘‘Added Displayed Liquidity’’), in all
securities traded on the Exchange priced
at or above $1.00 per share or 0.28% of
4 Market share percentage calculated as of
September 4, 2024. The Exchange receives and
processes data made available through consolidated
data feeds (i.e., CTS and UTDF).
5 ‘‘LTSE Order Book’’ means the System’s
electronic file of orders. See Exchange Rule 1.160(t).
The ‘‘System’’ shall mean the electronic
communications and trading facility designated by
the Board through which securities orders of
Members are consolidated for ranking and
execution. See Exchange Rule 1.160(rr).
6 This pricing is referred to as ‘‘Remove liquidity’’
on the proposed Fee Schedule.
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the TDV for securities priced under
$1.00.7 The proposed rebate for Added
Displayed Liquidity would apply to the
Reserve Quantity 8 of an order such that
any replenishment amount of the
Reserve Quantity of an order that is
executed against would be treated as
Added Displayed Liquidity even though
such portion of the order was not
displayed on the LTSE Order Book prior
to the order being replenished in
accordance with the Member’s
instructions and the Exchange’s rules.
The entire portion of the Reserve
Quantity of an order would be eligible
for this rebate, however, a Member
would only receive such rebate for any
portion(s) of the Reserve Quantity that
is (are) executed against it. The
proposed Fee Schedule will detail the
treatment of the Reserve Quantity.
(C) Rebates for Adding Displayed
Liquidity That Matches the National
Best Bid or Offer (‘‘NBBO’’) 9
The Exchange proposes to provide a
rebate of $0.0029 per share for
executions of Added Displayed
Liquidity that establishes a new best bid
or offer on the Exchange that matches
the NBBO first established on an away
market (‘‘NBBO Joiner’’) in all securities
traded on the Exchange priced at or
above $1.00 per share or 0.29% of the
TDV for securities priced under $1.00.10
The proposed Fee Schedule will include
this definition of NBBO Joiner.
(D) Rebates for Adding Displayed
Liquidity That Establishes the NBBO
The Exchange proposes to provide a
rebate of $0.00295 per share for
executions of Added Displayed
Liquidity that establishes the NBBO
(‘‘NBBO Setter’’) on LTSE in all
securities traded on the Exchange priced
at or above $1.00 per share or 0.295%
of the TDV for securities priced under
$1.00.11 The proposed Fee Schedule
will include this definition of NBBO
Setter.
7 The pricing is referred to by the Exchange as
‘‘Add displayed liquidity’’ on the proposed Fee
Schedule.
8 ‘‘Reserve Quantity’’ refers to the portion of an
order that includes a Non-Displayed instruction in
which a portion of that order is also displayed on
the LTSE Order Book. Both the portion of the order
with a Displayed instruction and the Reserve
Quantity are available for execution against
incoming orders. See Exchange Rule 11.180(k).
9 ‘‘NBBO’’ is defined in LTSE Rule 11.410(b).
10 The pricing is referred to by the Exchange as
‘‘Add displayed liquidity—NBBO Joiner’’ on the
proposed Fee Schedule.
11 The pricing is referred to by the Exchange as
‘‘Add displayed liquidity—NBBO Setter’’ on the
proposed Fee Schedule.
PO 00000
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(E) Standard Rebate for Adding NonDisplayed Liquidity
The Exchange proposes to provide a
standard rebate of $0.0014 per share for
executions of orders that: (i) are not
displayed on the LTSE Order Book and
(ii) add liquidity to the Exchange, in all
securities traded on the Exchange priced
at or above $1.00 per share or 0.14% of
the TDV for securities priced under
$1.00.12
Other Proposed Changes
Annual Membership Fee
The Exchange currently sets forth its
Annual Membership Fee of $10,000 a
year in Rule 15.200. The Exchange is
proposing to remove this section of the
rulebook and move the Annual
Membership Fee to the newly created
Section (A) of the Fee Schedule so that
Members can have all specific fees
assessed by the Exchange in one place.
The Exchange is not proposing any
changes to the Annual Membership Fee
except to remove subsection (4) which
details how the Exchange assessed the
Annual Membership Fee the year it
launched operations. Since this
subsection is no longer applicable the
Exchange believes it is appropriate to
remove it altogether instead of inserting
it into the proposed Fee Schedule.
Billing Errors
Additionally, the Exchange is
proposing to adopt a policy relating to
billing errors. Specifically, the Exchange
proposes to adopt a new paragraph (c)
in Rule 15.120 which would provide
that all fees and rebates assessed prior
to the three full calendar months before
the month in which the Exchange
becomes aware of a billing error shall be
considered final.13 To clarify the new
Billing Errors section, the Exchange is
also proposing to add the title ‘‘Pricing
Disputes’’ to Rule 15.120(b). The
Exchange would apply the three month
look back regardless of whether the
error was discovered by the Exchange or
by a Member or Non-Member that
submitted a pricing dispute.14
12 This pricing is referred to by the Exchange
‘‘Add non-displayed liquidity’’ on the proposed Fee
Schedule to represent the execution of an order that
adds non-displayed liquidity.
13 The Exchange notes that the current policy in
Rule 15.120(b), which states that all pricing
disputes must be submitted no later than sixty (60)
days after receipt of a billing invoice, will remain
in place.
14 For example, if the Exchange becomes aware of
a transaction fee billing error on September 4, 2024,
the Exchange will resolve the error by crediting or
debiting Members or Non-Members based on the
fees or rebates that should have been applied to any
impacted transactions during June, July and August
2024. The Exchange notes that because it bills in
arrears, the Exchange would be able to correct the
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The purpose of the proposed change
is to provide both the Exchange and its
Members and Non-Members finality
with respect to fees and rebates
previously assessed by the Exchange
and the ability to close their books after
a specified period of time. The
Exchange notes that Rule 15.120(b)
already requires that pricing disputes
must be submitted to the Exchange in
writing and accompanied by supporting
documentation no later than 60 days
after receipt of a billing invoice, which
is designed to encourage prompt review
of Exchange invoices so that any pricing
disputes can be addressed in a timely
manner. The Exchange believes the
proposed change would further the goal
of addressing billing discrepancies in a
timely manner while the information
and data underlying those charges (e.g.,
applicable fees and order information) is
still easily and readily available,
without further limiting the timeframe
in which a pricing dispute may be
submitted. This practice would avoid
issues that may arise when billing errors
are discovered long after they occurred
and the parties have already prepared,
and in some cases published, their
books, and would conserve Exchange
resources that would have to be
expended to resolve untimely billing
disputes. As such, the proposed rule
change would alleviate administrative
burdens related to prior billing errors,
which could divert Exchange staff
resources away from the Exchange’s
regulatory and business purposes.
The Exchange notes that the language
of proposed Rule 15.120(c) is the same
as language in MEMX Rule 15.3(c) 15
and is also included in the fee schedules
of the four Cboe U.S. equities
exchanges—Cboe BZX Exchange, Inc.
(‘‘Cboe BZX’’),16 Cboe BYX Exchange,
Inc. (‘‘Cboe BYX’’),17 Cboe EDGA
Exchange, Inc. (‘‘Cboe EDGA’’),18 and
error in advance of issuing the June [sic] 2024
invoice and therefore, transactions impacted after
the end of the last full calendar month through the
date of discovery (in this example, between August
31, 2024 and September 4, 2024) and thereafter,
would be billed correctly.
15 See Securities Exchange Act Release No. 34–
93381 (October 19, 2021), 86 FR 58972 (October 25,
2021) (SR–MEMX–2021–12).
16 See Cboe BZX equities trading fee schedule on
its public website (available at https://
www.cboe.com/us/equities/membership/fee_
schedule/bzx/). See also Securities Exchange Act
Release No. 90897 (January 11, 2021), 86 FR 4161
(January 15, 2021) (SR–CboeBZX–2020–094).
17 See Cboe BYX equities trading fee schedule on
its public website (available at https://
www.cboe.com/us/equities/membership/fee_
schedule/byx/). See also Securities Exchange Act
Release No. 90899 (January 11, 2021), 86 FR 4156
(January 15, 2021) (SR–CboeBYX–2020–034).
18 See Cboe EDGA equities trading fee schedule
on its public website (available at https://
www.cboe.com/us/equities/membership/fee_
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Cboe EDGX Exchange, Inc. (‘‘Cboe
EDGX’’).19 The Exchange also notes that
a number of other exchanges have
explicitly stated that they consider all
fees to be final after a similar period of
time.20 The proposed billing errors
policy would apply to all fees and
rebates assessed by the Exchange.
Other Changes
The Exchange proposes to add a
section to the proposed Fee Schedule
entitled ‘‘Additional Fees’’ and state
that Chapter 15 of the LTSE Rule
contains other dues, fees, and
assessments as well as the collection of
Exchange fees for completeness.
Further, the Exchange proposes to add
a corresponding reference in
Supplementary Material .02 of Chapter
15 to state that the LTSE Fee Schedule
details fees and rebates assessed by the
Exchange.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6(b) 21 of the
Act in general, and furthers the
objectives of Sections 6(b)(4) 22 of the
Act, in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees and other charges
among its Members and other persons
using its facilities. Additionally, the
Exchange believes that the proposed
fees and rebates are consistent with the
objectives of Section 6(b)(5) 23 of the Act
in that they are designed 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 a free and open
market and national market system, and,
in general, to protect investors and the
public interest, and, particularly, are not
designed to permit unfair
schedule/edga/). See also Securities Exchange Act
Release No. 90897 (January 11, 2021), 86 FR 4161
(January 15, 2021) (SR–CboeBZX–2020–094).
19 See Cboe EDGX equities trading fee schedule
on its public website (available at https://
www.cboe.com/us/equities/membership/fee_
schedule/edgx/). See also Securities Exchange Act
Release No. 90901 (January 11, 2021), 86 FR 4137
(January 15, 2021) (SR–CboeEDGX–2020–064).
20 See, e.g., Securities Exchange Act Release No.
34–91836 (May 11, 2021), 86 FR 26765 (May 17,
2021) (SR–BOX–2021–08); Securities Exchange Act
Release No. 87650 (December 3, 2019), 84 FR 67304
(December 9, 2019) (SR–NYSECHX–2019–024);
Securities Exchange Act Release No. 84430 (October
16, 2018), 83 FR 53347 (October 22, 2018) (SR–
NYSENAT–2018–23); and Securities Exchange Act
Release No. 79060 (October 6, 2016), 81 FR 70716
(October 13, 2016) (SR–ISEGemini-2016–11).
21 15 U.S.C. 78f.
22 15 U.S.C. 78f(b)(4).
23 15 U.S.C. 78f(b)(5).
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81589
discrimination between customers,
issuers, brokers, or dealers.
The Exchange operates in a highly
competitive market in which market
participants can readily direct order
flow to competing venues if they deem
fee levels at a particular venue to be
excessive or incentives to be
insufficient. The Exchange believes that
the proposed Fee Schedule reflects a
simple and competitive pricing
structure designed to incentivize market
participants to add aggressively priced
displayed liquidity and direct their
order flow to the Exchange, which the
Exchange believes would promote price
discovery and price formation and
deepen liquidity that is subject to the
Exchange’s transparency, regulation,
and oversight as an exchange, thereby
enhancing market quality to the benefit
of all Members and investors.
The Commission and the courts have
repeatedly expressed their preference
for competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. In Regulation NMS, while
adopting a series of steps to improve the
current market model, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 24
Transactions Fees
The Exchange believes that charging a
fee to the liquidity remover, and
providing a rebate to the liquidity adder,
is reasonable, equitable and not unfairly
discriminatory because it incentivizes
liquidity provision on the Exchange.
The Exchange also notes that several
other exchanges charge fees for
removing liquidity and provide rebates
for adding liquidity, and that this aspect
of the Exchange’s proposed Fee
Schedule does not raise any new or
novel issues that have not previously
been considered by the Commission in
connection with the fees and rebates of
other exchanges.25 The Exchange notes
that unlike other exchanges, LTSE is not
proposing any volume based tiers or
rebates and rather is proposing a simple
flat fee for each of the categories listed
below.
The Exchange also believes that it is
reasonable, equitable and not unfairly
24 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
25 See e.g., MEMX Equities Fee Schedule,
Transaction Fees; MIAX Pearl Equities Exchange
Fee Schedule and Cboe EDGX Fee Schedule.
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discriminatory to provide a higher
rebate for executions resulting from
adding displayed liquidity than for
executions of adding non-displayed
liquidity as this rebate structure is
designed to incentivize Members to
send the Exchange displayable orders,
thereby contributing to price discovery
and price formation, consistent with the
overall goal of enhancing market
quality. Moreover, the Exchange notes
that there are precedents for exchanges
to provide rebates that distinguish
between displayed and non-displayed
volume to incentivize displayed orders
and facilitate price discovery.
Standard Fee for Removing Liquidity
The Exchange believes that it is
appropriate, reasonable, and consistent
with the Act to charge a standard fee of
$0.0030 per share for executions of
orders that remove liquidity from the
LTSE Order Book in securities priced at
or above $1.00 per share or 0.30% of the
TDV for securities priced under $1.00
because it is comparable to the
transaction fee charged by other
exchanges to remove liquidity.26 The
Exchange further believes that this fee is
equitably allocated and not unfairly
discriminatory because it applies
equally to all Members and, when
coupled with higher rebates for adding
displayed liquidity, as described below,
is designed to facilitate increased
activity on the Exchange to the benefit
of all Members by providing more
trading opportunities and promoting
price discovery.
Standard Rebate for Adding Displayed
Liquidity
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The Exchange believes that it is
appropriate, reasonable, and consistent
with the Act to provide a standard
rebate of $0.0028 per share for
executions of orders that: (i) are
displayed on the LTSE Order Book and
(ii) add liquidity to the Exchange, in all
securities traded on the Exchange priced
at or above $1.00 per share or 0.28% of
the TDV for securities priced under
$1.00 because this rebate is consistent
with transaction rebates provided by
other exchanges.27 The Exchange
26 For example, the MEMX Fee Schedule assess
fees to remove liquidity for securities at or above
$1.00 that range from $0.0029–$0.0030 per share
(fees for securities below $1.00 the fees range from
0.28%–0.30% of total dollar value); see https://
info.memxtrading.com/equities-trading-resources/
us-equities-fee-schedule/. The Cboe BZX Fee
Schedule has standard fees for ‘‘removing’’ liquidity
of $0.0030 for shares executed at or above $1.00 or
0.30% of total dollar volume for shares executed
below $1.00; see https://www.cboe.com/us/equities/
membership/fee_schedule/bzx/.
27 For example, the Cboe BZX Fee Schedule
reflects a standard rebate for adding displayed
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further believes that this rebate structure
is equitably allocated and not unfairly
discriminatory because it applies
equally to all Members.
Rebates for Adding Displayed Liquidity
That Matches the NBBO
The Exchange believes that it is
appropriate, reasonable, and consistent
with the Act to provide a standard
rebate of $0.0029 per share for
executions of Added Displayed
Liquidity that matches the NBBO in all
securities traded on the Exchange priced
at or above $1.00 per share or 0.29% of
the TDV for securities priced under
$1.00 because this rebate is consistent
with transaction rebates provided by
other exchanges.28 The Exchange
further believes that this rebate structure
is equitably allocated and not unfairly
discriminatory because it applies
equally to all Members. Lastly, the
Exchange believes that providing a
higher rebate for adding displayed
liquidity that matches the NBBO is
reasonable, equitable and not unfairly
discriminatory as it designed to
encourage the submission of well priced
orders, thereby contributing to a deeper
and more robust and well-balanced
market ecosystem on the Exchange to
the benefit of all Members and market
participants.
Rebates for Adding Displayed Liquidity
That Establishes the NBBO
The Exchange believes that it is
appropriate, reasonable, and consistent
with the Act to provide a standard
rebate of $0.00295 per share for
executions of Added Displayed
Liquidity that establishes the NBBO on
LTSE in all securities traded on the
Exchange priced at or above $1.00 per
share or 0.295% of the TDV for
securities priced under $1.00 because
this rebate is consistent with transaction
rebates provided by other exchanges.29
The Exchange further believes that this
rebate structure is equitably allocated
and not unfairly discriminatory because
liquidity of $0.0016 for executions in securities
priced at or above $1.00, with no rebate for
executions in securities priced below $1.00.
Further, various tiers provide the ability of a firm
to receive a rebate of $0.0032 per share; see https://
www.cboe.com/us/equities/membership/fee_
schedule/bzx/. The MEMX Fee Schedule reflects
rebates for ‘‘adding’’ displayed liquidity that range
from $0.0015 to $0.0037 for shares executed at or
above $1.00, with 0.075% to 0.15% of total dollar
value for shares executed below $1.00, see https://
info.memxtrading.com/equities-trading-resources/
us-equities-fee-schedule/.
28 Id.
29 Id. The Exchange notes that MEMX does not
have a standalone per share rebate for setting the
NBBO, however MEMX offers an additive per share
rebate of up to $0.0002 ‘‘NBBO Setter Tier’’ for
securities at or above $1.00 based on the Member’s
average daily adding volume.
PO 00000
Frm 00174
Fmt 4703
Sfmt 4703
it applies equally to all Members. Lastly,
the Exchange believes that providing a
higher rebate for adding displayed
liquidity that establishes the NBBO is
reasonable, equitable and not unfairly
discriminatory as it designed to
encourage the submission of well priced
orders, thereby contributing to a deeper
and more robust and well-balanced
market ecosystem on the Exchange to
the benefit of all Members and market
participants.
Standard Rebate for Adding NonDisplayed Liquidity
The Exchange believes that it is
appropriate, reasonable, and consistent
with the Act to provide a standard
rebate of $0.0014 per share for
executions of orders that: (i) are not
displayed on the LTSE Order Book and
(ii) add liquidity to the Exchange, in all
securities traded on the Exchange priced
at or above $1.00 per share or 0.14% of
the TDV for securities priced under
$1.00 because this rebate is consistent
with transaction rebates provided by
other exchanges.30 The Exchange
further believes that this rebate structure
is equitably allocated and not unfairly
discriminatory because it applies
equally to all Members.
Other Proposed Changes
Annual Membership Fee
The Exchange believes moving the
Annual Membership Fee language to the
proposed Fee Schedule is reasonable,
equitable and not unfairly
discriminatory. In particular, the
Exchange believes that the proposed
rule change will provide greater clarity
to Members by having the Membership
Fee in the Fee Schedule. Lastly,
removing subsection (4) is appropriate
as it is an obsolete reference which only
applied during the Exchange’s first year
of operations. This proposed change
does not propose any substantive
changes to the Membership Fees the
Exchange charges. Therefore, the
Exchange does not believe that the
proposed change raises any new or
novel issues not already considered by
the Commission.
30 For example, the Cboe BZX Fee Schedule
reflects a standard rebate for adding liquidity of
$0.0.00080 for executions in securities priced at or
above $1.00, with no rebate for executions in
securities priced below $1.00. Further, various tiers
provide the ability of a firm to receive a rebate of
$0.0032 per share; see https://www.cboe.com/us/
equities/membership/fee_schedule/bzx/. The
MEMX Fee Schedule reflects rebates for adding
non-displayed liquidity that range from $0.0008 to
$0.028 for shares executed at or above $1.00, with
0.075% for shares executed below a $1.00, see
https://info.memxtrading.com/equities-tradingresources/us-equities-fee-schedule/.
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ddrumheller on DSK120RN23PROD with NOTICES1
Billing Errors
With respect to the proposed policy
relating to billing errors, the Exchange
believes that providing that all fees and
rebates are final after three months (i.e.,
resolving billing errors only for the three
full calendar months preceding the
month in which the Exchange became
aware of the error) is reasonable and
consistent with the Act as both the
Exchange and its Members and NonMembers have an interest in knowing
when its fee assessments are final and
when reliance can be placed on those
assessments. Indeed, without some
deadline on billing errors, the Exchange
and its Members and Non-Members
would never be able to close their books
with any confidence. As noted above,
the Exchange believes this proposed
change would conserve Exchange
resources that would have to be
expended to resolve untimely billing
disputes, which could divert Exchange
staff resources away from the
Exchange’s regulatory and business
purposes. For these reasons, the
Exchange believes this proposed change
promotes just and equitable principles
of trade, fosters cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities,
removes impediments to and perfects
the mechanism of a free and open
market and a national market system,
and, in general, protects investors and
the public interest.
Furthermore, as noted above, the
language of proposed Rule 15.120(c) is
the same as language included in
MEMX Rule 15.3(c) and the fee
schedules of the four Cboe U.S. equities
exchanges,31 and a number of other
exchanges similarly consider their fees
final after a similar period of time.32 As
such, this proposed change does not
raise any new or novel issues that have
not been previously considered by the
Commission. This proposed change is
also equitable and not unfairly
discriminatory because it would apply
equally to all Members (and NonMembers that pay Exchange fees) and
would apply in cases where either the
Member (or Non-Member) discovers the
error or the Exchange discovers the
error.
Additional Changes
Lastly, the Exchange believes the
additional changes are reasonable,
equitable and not unfairly
discriminatory. In particular, the
Exchange believes that the proposed
31 See
32 See
supra notes 17–21 [sic].
supra note 22 [sic].
VerDate Sep<11>2014
17:23 Oct 07, 2024
changes will provide greater clarity to
market participants when looking at
either the Fee Schedule or Chapter 15 of
the LTSE Rulebook.This proposed
change does not propose any
substantive changes fees [sic] charged
by the Exchange.. Therefore, the
Exchange does not believe that the
proposed change raises any new or
novel issues not already considered by
the Commission.
In conclusion, the Exchange also
submits that its proposed fee structure
satisfies the requirements of Sections
6(b)(4) and 6(b)(5) of the Act for the
reasons discussed above in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among its Members and other persons
using its facilities, provides certainty in
billing and a process for resolving
billing disputes, does not permit unfair
discrimination between customers,
issuers, brokers, or dealers, and is
designed to promote just and equitable
principles of trade, 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, particularly as the
proposal neither targets nor will it have
a disparate impact on any particular
category of market participant. As
described more fully below in the
Exchange’s statement regarding the
burden on competition, the Exchange
believes that it is subject to significant
competitive forces, and that its
proposed fee and rebate structure is an
appropriate effort to address such
forces.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Rather, as
discussed above, the Exchange believes
that the proposed change would
encourage the submission of additional
order flow to a public exchange, thereby
promoting market depth, execution
incentives and enhanced execution
opportunities, as well as price discovery
and transparency for all Members. As a
result, the Exchange believes that the
proposed change furthers the
Commission’s goal in adopting
Regulation NMS of fostering
competition among orders, which
promotes ‘‘more efficient pricing of
individual stocks for all types of orders,
large and small.’’ 33 The Exchange does
not believe that the proposed rule
33 See
Jkt 265001
PO 00000
supra note 26 [sic].
Frm 00175
Fmt 4703
Sfmt 4703
81591
change will impose any burden on
intermarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the Exchange believes that the
proposed pricing structure will increase
competition and is intended to draw
volume to the Exchange. The Exchange
believes that the ever-shifting market
share among the exchanges from month
to month demonstrates that market
participants can shift order flow or
discontinue to reduce use of certain
categories of products, in response to
new or different pricing structures being
introduced into the market.
Accordingly, competitive forces
constrain the Exchange’s transaction
fees and rebates, and market
participants can readily trade on
competing venues if they deem pricing
levels at those other venues to be more
favorable. Although this pricing is
intended to attract liquidity to the
Exchange, most other exchanges in
operation today already offer multiple
incentives to their participants,
including tiered pricing that provides
higher rebates or discounted executions,
and other exchanges will be able to
modify such incentives in order to
compete with the Exchange.
Accordingly, with respect to a
participant deciding to either submit an
order to add liquidity or seeking to
remove liquidity, there are multiple
exchanges that will continue to be
competitively priced for such orders
when compared to the Exchange’s
pricing. Further, while pricing
incentives can cause shifts of liquidity
between trading centers, market
participants make determinations on
where to provide liquidity or route
orders to take liquidity based on factors
other than pricing, including execution
quality, technology, functionality, and
other considerations. Consequently, the
Exchange believes that the degree to
which its fees and rebates could impose
any burden on competition is extremely
limited, and does not believe that such
fees would burden competition of
Members or competing venues in a
manner that is not necessary or
appropriate in furtherance of the
purposes of the Act. The Exchange does
not believe that the proposed rule
change will impose any burden on
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because the
proposed fees and rebates apply equally
to all Members. The proposed pricing
structure is intended to encourage
market participants to add displayed
and non-displayed liquidity to the
Exchange by providing rebates that are
E:\FR\FM\08OCN1.SGM
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81592
Federal Register / Vol. 89, No. 195 / Tuesday, October 8, 2024 / Notices
comparable to those offered by other
exchanges as well as to provide a
competitive rate charged for removing
liquidity, which the Exchange believes
will help to encourage Members to send
orders to the Exchange to the benefit of
all Exchange participants. As the
proposed rates are equally applicable to
all market participants, the Exchange
does not believe there is any burden on
intramarket competition.
With respect to the proposed billing
errors policy, the proposal would
establish a clearly defined timeframe for
fees and rebates to be considered final
that would apply equally to all Members
and Non-Members. Additionally, as
noted above, this proposed change is
similar to rules of other exchanges and
therefore does not raise any new or
novel issues that have not been
previously considered by the
Commission.34
For these reasons, the Exchange does
not believe such proposed changes
would impair the ability of Members 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 Non-Members, as
applicable, the Exchange does not
believe the proposal would impose any
burden on intramarket competition.
ddrumheller on DSK120RN23PROD with NOTICES1
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
This proposed rule change establishes
dues, fees or other charges among its
members and, as such, may take effect
upon filing with the Commission
pursuant to Section 19(b)(3)(A)(ii) of the
Act 35 and paragraph (f)(2) of Rule 19b–
4 thereunder.36 Accordingly, the
proposed rule change would take effect
upon filing with the Commission.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend the rule change if
it appears to the Commission that the
action is necessary or appropriate in the
public interest, for the protection of
34 See
supra notes 14–19 [sic].
U.S.C. 78s(b)(3)(A)(ii).
36 17 CFR 240.19b–4(f)(2).
35 15
VerDate Sep<11>2014
17:23 Oct 07, 2024
Jkt 265001
investors, or would otherwise further
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or 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:
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 SR–
LTSE–2024–06 on the subject line.
• 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–2024–06. 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
a.m. and 3 p.m. Copies of the filing also
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–2024–06 and should be
Frm 00176
Fmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.37
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–23062 Filed 10–7–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101229; File No. SR–
CBOE–2024–042]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing of a
Proposed Rule Change To Amend Its
Rules To Permit Orders Comprised of
Options and Futures Legs (‘‘FutureOption Orders’’)
October 1, 2024.
Paper Comments
PO 00000
submitted on or before October 29,
2024.
Sfmt 4703
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 17, 2024, Cboe Exchange,
Inc. (the ‘‘Exchange’’ or ‘‘Cboe
Options’’) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
its Rules to permit orders comprised of
options and futures legs (‘‘future-option
orders’’). The text of the proposed rule
change is provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/CBOELegal
RegulatoryHome.aspx), at the
Exchange’s Office of the Secretary, and
at the Commission’s Public Reference
Room.
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
Exchange included statements
concerning the purpose of and basis for
17 CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
37
1 15
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]]>Agencies
[Federal Register Volume 89, Number 195 (Tuesday, October 8, 2024)]
[Notices]
[Pages 81587-81592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23062]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101226; File No. SR-LTSE-2024-06]
Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Adopt Initial Fees and Rebates Applicable to Members of the Exchange
Pursuant to Exchange Rule 15.110 and Adopt a Policy Relating to Billing
Errors
October 1, 2024.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 19, 2024, Long-Term Stock Exchange, Inc. (``LTSE'' or
the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I,
II, and III 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.
---------------------------------------------------------------------------
\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 Securities and Exchange Commission
(``Commission'') a proposed rule change to adopt the initial fees and
rebates applicable to Members of the Exchange pursuant to Exchange Rule
15.110 (Authority to Prescribe Dues, Fees, Assessments and Other
Charges) and adopt a policy relating to billing errors. The Exchange
proposes to implement the rule change effective immediately upon
commencement of its transition to a new trading platform.
The text of the proposed rule change is available at the Exchange's
website at https://longtermstockexchange.com/, at the principal office
of the Exchange, and at the Commission's Public Reference Room.
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
The Exchange proposes to adopt a fee schedule (the ``Fee
Schedule'') applicable to the use of the Exchange. Additionally, the
Exchange proposes to amend Rule 15.120 (Collection of Exchange Fees and
Other Claims and Billing Policy), as well as moving the entirety of the
text in Rule 15.200 (Schedule of Fees) to the new Fee Schedule. These
changes are part of a larger initiative where the Exchange intends to
transition to a new trading platform. The go-live date for this
transition is September 23, 2024 and thus, proposed fees and changes
will be effective as of the date of such transition.\3\
---------------------------------------------------------------------------
\3\ Id.
---------------------------------------------------------------------------
The Exchange first notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. More specifically, the
Exchange will be only one of numerous equities venues to which market
participants may direct their order flow. Based on publicly available
information, no single registered equities exchange currently has more
than approximately 16% of
[[Page 81588]]
total market share.\4\ Thus, in such a low-concentrated and highly
competitive market, no single equities exchange possesses significant
pricing power in the execution of order flow and the Exchange currently
represents a small percentage of the overall market.
---------------------------------------------------------------------------
\4\ Market share percentage calculated as of September 4, 2024.
The Exchange receives and processes data made available through
consolidated data feeds (i.e., CTS and UTDF).
---------------------------------------------------------------------------
Transaction Fees
Below is a description of the fees and rebates that the Exchange
intends to impose under the initial proposed Fee Schedule, which will
be applicable to transactions executed in all trading sessions. Under
the proposed Fee Schedule, the Exchange will operate a ``Maker-Taker''
model whereby it provides rebates to Members that provide liquidity and
charges fees to those that remove liquidity, as further described
below. The Exchange does not initially propose to assess volume-based
fees or rebates. Accordingly, all fees and rebates described below are
applicable to all Members, regardless of the overall volume of a
Member's trading activities on the Exchange.
The Exchange proposes to adopt a pricing strategy that incentivizes
adding displayed liquidity on the Exchange in order to encourage and
facilitate price discovery and price formation, which the Exchange
believes benefits all Members and investors. Details of this pricing
strategy are laid out below:
(A) Standard Fee for Removing Liquidity
The Exchange proposes a fee of $0.0030 per share for executions of
orders that remove liquidity from the LTSE Order Book \5\ (``Remove
Liquidity'') in securities priced at or above $1.00 per share or 0.30%
of the total dollar value (``TDV'') for securities priced under
$1.00.\6\
---------------------------------------------------------------------------
\5\ ``LTSE Order Book'' means the System's electronic file of
orders. See Exchange Rule 1.160(t). The ``System'' shall mean the
electronic communications and trading facility designated by the
Board through which securities orders of Members are consolidated
for ranking and execution. See Exchange Rule 1.160(rr).
\6\ This pricing is referred to as ``Remove liquidity'' on the
proposed Fee Schedule.
---------------------------------------------------------------------------
(B) Standard Rebate for Adding Displayed Liquidity
The Exchange proposes to provide a rebate of $0.0028 per share for
executions of orders that: (i) are displayed on the LTSE Order Book and
(ii) add liquidity to the Exchange (``Added Displayed Liquidity''), in
all securities traded on the Exchange priced at or above $1.00 per
share or 0.28% of the TDV for securities priced under $1.00.\7\ The
proposed rebate for Added Displayed Liquidity would apply to the
Reserve Quantity \8\ of an order such that any replenishment amount of
the Reserve Quantity of an order that is executed against would be
treated as Added Displayed Liquidity even though such portion of the
order was not displayed on the LTSE Order Book prior to the order being
replenished in accordance with the Member's instructions and the
Exchange's rules. The entire portion of the Reserve Quantity of an
order would be eligible for this rebate, however, a Member would only
receive such rebate for any portion(s) of the Reserve Quantity that is
(are) executed against it. The proposed Fee Schedule will detail the
treatment of the Reserve Quantity.
---------------------------------------------------------------------------
\7\ The pricing is referred to by the Exchange as ``Add
displayed liquidity'' on the proposed Fee Schedule.
\8\ ``Reserve Quantity'' refers to the portion of an order that
includes a Non-Displayed instruction in which a portion of that
order is also displayed on the LTSE Order Book. Both the portion of
the order with a Displayed instruction and the Reserve Quantity are
available for execution against incoming orders. See Exchange Rule
11.180(k).
---------------------------------------------------------------------------
(C) Rebates for Adding Displayed Liquidity That Matches the National
Best Bid or Offer (``NBBO'') \9\
---------------------------------------------------------------------------
\9\ ``NBBO'' is defined in LTSE Rule 11.410(b).
---------------------------------------------------------------------------
The Exchange proposes to provide a rebate of $0.0029 per share for
executions of Added Displayed Liquidity that establishes a new best bid
or offer on the Exchange that matches the NBBO first established on an
away market (``NBBO Joiner'') in all securities traded on the Exchange
priced at or above $1.00 per share or 0.29% of the TDV for securities
priced under $1.00.\10\ The proposed Fee Schedule will include this
definition of NBBO Joiner.
---------------------------------------------------------------------------
\10\ The pricing is referred to by the Exchange as ``Add
displayed liquidity--NBBO Joiner'' on the proposed Fee Schedule.
---------------------------------------------------------------------------
(D) Rebates for Adding Displayed Liquidity That Establishes the NBBO
The Exchange proposes to provide a rebate of $0.00295 per share for
executions of Added Displayed Liquidity that establishes the NBBO
(``NBBO Setter'') on LTSE in all securities traded on the Exchange
priced at or above $1.00 per share or 0.295% of the TDV for securities
priced under $1.00.\11\ The proposed Fee Schedule will include this
definition of NBBO Setter.
---------------------------------------------------------------------------
\11\ The pricing is referred to by the Exchange as ``Add
displayed liquidity--NBBO Setter'' on the proposed Fee Schedule.
---------------------------------------------------------------------------
(E) Standard Rebate for Adding Non-Displayed Liquidity
The Exchange proposes to provide a standard rebate of $0.0014 per
share for executions of orders that: (i) are not displayed on the LTSE
Order Book and (ii) add liquidity to the Exchange, in all securities
traded on the Exchange priced at or above $1.00 per share or 0.14% of
the TDV for securities priced under $1.00.\12\
---------------------------------------------------------------------------
\12\ This pricing is referred to by the Exchange ``Add non-
displayed liquidity'' on the proposed Fee Schedule to represent the
execution of an order that adds non-displayed liquidity.
---------------------------------------------------------------------------
Other Proposed Changes
Annual Membership Fee
The Exchange currently sets forth its Annual Membership Fee of
$10,000 a year in Rule 15.200. The Exchange is proposing to remove this
section of the rulebook and move the Annual Membership Fee to the newly
created Section (A) of the Fee Schedule so that Members can have all
specific fees assessed by the Exchange in one place. The Exchange is
not proposing any changes to the Annual Membership Fee except to remove
subsection (4) which details how the Exchange assessed the Annual
Membership Fee the year it launched operations. Since this subsection
is no longer applicable the Exchange believes it is appropriate to
remove it altogether instead of inserting it into the proposed Fee
Schedule.
Billing Errors
Additionally, the Exchange is proposing to adopt a policy relating
to billing errors. Specifically, the Exchange proposes to adopt a new
paragraph (c) in Rule 15.120 which would provide that all fees and
rebates assessed prior to the three full calendar months before the
month in which the Exchange becomes aware of a billing error shall be
considered final.\13\ To clarify the new Billing Errors section, the
Exchange is also proposing to add the title ``Pricing Disputes'' to
Rule 15.120(b). The Exchange would apply the three month look back
regardless of whether the error was discovered by the Exchange or by a
Member or Non-Member that submitted a pricing dispute.\14\
---------------------------------------------------------------------------
\13\ The Exchange notes that the current policy in Rule
15.120(b), which states that all pricing disputes must be submitted
no later than sixty (60) days after receipt of a billing invoice,
will remain in place.
\14\ For example, if the Exchange becomes aware of a transaction
fee billing error on September 4, 2024, the Exchange will resolve
the error by crediting or debiting Members or Non-Members based on
the fees or rebates that should have been applied to any impacted
transactions during June, July and August 2024. The Exchange notes
that because it bills in arrears, the Exchange would be able to
correct the error in advance of issuing the June [sic] 2024 invoice
and therefore, transactions impacted after the end of the last full
calendar month through the date of discovery (in this example,
between August 31, 2024 and September 4, 2024) and thereafter, would
be billed correctly.
---------------------------------------------------------------------------
[[Page 81589]]
The purpose of the proposed change is to provide both the Exchange
and its Members and Non-Members finality with respect to fees and
rebates previously assessed by the Exchange and the ability to close
their books after a specified period of time. The Exchange notes that
Rule 15.120(b) already requires that pricing disputes must be submitted
to the Exchange in writing and accompanied by supporting documentation
no later than 60 days after receipt of a billing invoice, which is
designed to encourage prompt review of Exchange invoices so that any
pricing disputes can be addressed in a timely manner. The Exchange
believes the proposed change would further the goal of addressing
billing discrepancies in a timely manner while the information and data
underlying those charges (e.g., applicable fees and order information)
is still easily and readily available, without further limiting the
timeframe in which a pricing dispute may be submitted. This practice
would avoid issues that may arise when billing errors are discovered
long after they occurred and the parties have already prepared, and in
some cases published, their books, and would conserve Exchange
resources that would have to be expended to resolve untimely billing
disputes. As such, the proposed rule change would alleviate
administrative burdens related to prior billing errors, which could
divert Exchange staff resources away from the Exchange's regulatory and
business purposes.
The Exchange notes that the language of proposed Rule 15.120(c) is
the same as language in MEMX Rule 15.3(c) \15\ and is also included in
the fee schedules of the four Cboe U.S. equities exchanges--Cboe BZX
Exchange, Inc. (``Cboe BZX''),\16\ Cboe BYX Exchange, Inc. (``Cboe
BYX''),\17\ Cboe EDGA Exchange, Inc. (``Cboe EDGA''),\18\ and Cboe EDGX
Exchange, Inc. (``Cboe EDGX'').\19\ The Exchange also notes that a
number of other exchanges have explicitly stated that they consider all
fees to be final after a similar period of time.\20\ The proposed
billing errors policy would apply to all fees and rebates assessed by
the Exchange.
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\15\ See Securities Exchange Act Release No. 34-93381 (October
19, 2021), 86 FR 58972 (October 25, 2021) (SR-MEMX-2021-12).
\16\ See Cboe BZX equities trading fee schedule on its public
website (available at https://www.cboe.com/us/equities/membership/fee_schedule/bzx/). See also Securities Exchange Act Release No.
90897 (January 11, 2021), 86 FR 4161 (January 15, 2021) (SR-CboeBZX-
2020-094).
\17\ See Cboe BYX equities trading fee schedule on its public
website (available at https://www.cboe.com/us/equities/membership/fee_schedule/byx/). See also Securities Exchange Act Release No.
90899 (January 11, 2021), 86 FR 4156 (January 15, 2021) (SR-CboeBYX-
2020-034).
\18\ See Cboe EDGA equities trading fee schedule on its public
website (available at https://www.cboe.com/us/equities/membership/fee_schedule/edga/). See also Securities Exchange Act Release No.
90897 (January 11, 2021), 86 FR 4161 (January 15, 2021) (SR-CboeBZX-
2020-094).
\19\ See Cboe EDGX equities trading fee schedule on its public
website (available at https://www.cboe.com/us/equities/membership/fee_schedule/edgx/). See also Securities Exchange Act Release No.
90901 (January 11, 2021), 86 FR 4137 (January 15, 2021) (SR-
CboeEDGX-2020-064).
\20\ See, e.g., Securities Exchange Act Release No. 34-91836
(May 11, 2021), 86 FR 26765 (May 17, 2021) (SR-BOX-2021-08);
Securities Exchange Act Release No. 87650 (December 3, 2019), 84 FR
67304 (December 9, 2019) (SR-NYSECHX-2019-024); Securities Exchange
Act Release No. 84430 (October 16, 2018), 83 FR 53347 (October 22,
2018) (SR-NYSENAT-2018-23); and Securities Exchange Act Release No.
79060 (October 6, 2016), 81 FR 70716 (October 13, 2016) (SR-
ISEGemini-2016-11).
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Other Changes
The Exchange proposes to add a section to the proposed Fee Schedule
entitled ``Additional Fees'' and state that Chapter 15 of the LTSE Rule
contains other dues, fees, and assessments as well as the collection of
Exchange fees for completeness. Further, the Exchange proposes to add a
corresponding reference in Supplementary Material .02 of Chapter 15 to
state that the LTSE Fee Schedule details fees and rebates assessed by
the Exchange.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \21\ of the Act in general, and
furthers the objectives of Sections 6(b)(4) \22\ of the Act, in
particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees and other charges among its Members
and other persons using its facilities. Additionally, the Exchange
believes that the proposed fees and rebates are consistent with the
objectives of Section 6(b)(5) \23\ of the Act in that they are designed
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 a
free and open market and national market system, and, in general, to
protect investors and the public interest, and, particularly, are not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\21\ 15 U.S.C. 78f.
\22\ 15 U.S.C. 78f(b)(4).
\23\ 15 U.S.C. 78f(b)(5).
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The Exchange operates in a highly competitive market in which
market participants can readily direct order flow to competing venues
if they deem fee levels at a particular venue to be excessive or
incentives to be insufficient. The Exchange believes that the proposed
Fee Schedule reflects a simple and competitive pricing structure
designed to incentivize market participants to add aggressively priced
displayed liquidity and direct their order flow to the Exchange, which
the Exchange believes would promote price discovery and price formation
and deepen liquidity that is subject to the Exchange's transparency,
regulation, and oversight as an exchange, thereby enhancing market
quality to the benefit of all Members and investors.
The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \24\
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\24\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
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Transactions Fees
The Exchange believes that charging a fee to the liquidity remover,
and providing a rebate to the liquidity adder, is reasonable, equitable
and not unfairly discriminatory because it incentivizes liquidity
provision on the Exchange. The Exchange also notes that several other
exchanges charge fees for removing liquidity and provide rebates for
adding liquidity, and that this aspect of the Exchange's proposed Fee
Schedule does not raise any new or novel issues that have not
previously been considered by the Commission in connection with the
fees and rebates of other exchanges.\25\ The Exchange notes that unlike
other exchanges, LTSE is not proposing any volume based tiers or
rebates and rather is proposing a simple flat fee for each of the
categories listed below.
---------------------------------------------------------------------------
\25\ See e.g., MEMX Equities Fee Schedule, Transaction Fees;
MIAX Pearl Equities Exchange Fee Schedule and Cboe EDGX Fee
Schedule.
---------------------------------------------------------------------------
The Exchange also believes that it is reasonable, equitable and not
unfairly
[[Page 81590]]
discriminatory to provide a higher rebate for executions resulting from
adding displayed liquidity than for executions of adding non-displayed
liquidity as this rebate structure is designed to incentivize Members
to send the Exchange displayable orders, thereby contributing to price
discovery and price formation, consistent with the overall goal of
enhancing market quality. Moreover, the Exchange notes that there are
precedents for exchanges to provide rebates that distinguish between
displayed and non-displayed volume to incentivize displayed orders and
facilitate price discovery.
Standard Fee for Removing Liquidity
The Exchange believes that it is appropriate, reasonable, and
consistent with the Act to charge a standard fee of $0.0030 per share
for executions of orders that remove liquidity from the LTSE Order Book
in securities priced at or above $1.00 per share or 0.30% of the TDV
for securities priced under $1.00 because it is comparable to the
transaction fee charged by other exchanges to remove liquidity.\26\ The
Exchange further believes that this fee is equitably allocated and not
unfairly discriminatory because it applies equally to all Members and,
when coupled with higher rebates for adding displayed liquidity, as
described below, is designed to facilitate increased activity on the
Exchange to the benefit of all Members by providing more trading
opportunities and promoting price discovery.
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\26\ For example, the MEMX Fee Schedule assess fees to remove
liquidity for securities at or above $1.00 that range from $0.0029-
$0.0030 per share (fees for securities below $1.00 the fees range
from 0.28%-0.30% of total dollar value); see https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/. The Cboe BZX Fee Schedule has standard fees for
``removing'' liquidity of $0.0030 for shares executed at or above
$1.00 or 0.30% of total dollar volume for shares executed below
$1.00; see https://www.cboe.com/us/equities/membership/fee_schedule/bzx/.
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Standard Rebate for Adding Displayed Liquidity
The Exchange believes that it is appropriate, reasonable, and
consistent with the Act to provide a standard rebate of $0.0028 per
share for executions of orders that: (i) are displayed on the LTSE
Order Book and (ii) add liquidity to the Exchange, in all securities
traded on the Exchange priced at or above $1.00 per share or 0.28% of
the TDV for securities priced under $1.00 because this rebate is
consistent with transaction rebates provided by other exchanges.\27\
The Exchange further believes that this rebate structure is equitably
allocated and not unfairly discriminatory because it applies equally to
all Members.
---------------------------------------------------------------------------
\27\ For example, the Cboe BZX Fee Schedule reflects a standard
rebate for adding displayed liquidity of $0.0016 for executions in
securities priced at or above $1.00, with no rebate for executions
in securities priced below $1.00. Further, various tiers provide the
ability of a firm to receive a rebate of $0.0032 per share; see
https://www.cboe.com/us/equities/membership/fee_schedule/bzx/. The
MEMX Fee Schedule reflects rebates for ``adding'' displayed
liquidity that range from $0.0015 to $0.0037 for shares executed at
or above $1.00, with 0.075% to 0.15% of total dollar value for
shares executed below $1.00, see https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/.
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Rebates for Adding Displayed Liquidity That Matches the NBBO
The Exchange believes that it is appropriate, reasonable, and
consistent with the Act to provide a standard rebate of $0.0029 per
share for executions of Added Displayed Liquidity that matches the NBBO
in all securities traded on the Exchange priced at or above $1.00 per
share or 0.29% of the TDV for securities priced under $1.00 because
this rebate is consistent with transaction rebates provided by other
exchanges.\28\ The Exchange further believes that this rebate structure
is equitably allocated and not unfairly discriminatory because it
applies equally to all Members. Lastly, the Exchange believes that
providing a higher rebate for adding displayed liquidity that matches
the NBBO is reasonable, equitable and not unfairly discriminatory as it
designed to encourage the submission of well priced orders, thereby
contributing to a deeper and more robust and well-balanced market
ecosystem on the Exchange to the benefit of all Members and market
participants.
---------------------------------------------------------------------------
\28\ Id.
---------------------------------------------------------------------------
Rebates for Adding Displayed Liquidity That Establishes the NBBO
The Exchange believes that it is appropriate, reasonable, and
consistent with the Act to provide a standard rebate of $0.00295 per
share for executions of Added Displayed Liquidity that establishes the
NBBO on LTSE in all securities traded on the Exchange priced at or
above $1.00 per share or 0.295% of the TDV for securities priced under
$1.00 because this rebate is consistent with transaction rebates
provided by other exchanges.\29\ The Exchange further believes that
this rebate structure is equitably allocated and not unfairly
discriminatory because it applies equally to all Members. Lastly, the
Exchange believes that providing a higher rebate for adding displayed
liquidity that establishes the NBBO is reasonable, equitable and not
unfairly discriminatory as it designed to encourage the submission of
well priced orders, thereby contributing to a deeper and more robust
and well-balanced market ecosystem on the Exchange to the benefit of
all Members and market participants.
---------------------------------------------------------------------------
\29\ Id. The Exchange notes that MEMX does not have a standalone
per share rebate for setting the NBBO, however MEMX offers an
additive per share rebate of up to $0.0002 ``NBBO Setter Tier'' for
securities at or above $1.00 based on the Member's average daily
adding volume.
---------------------------------------------------------------------------
Standard Rebate for Adding Non-Displayed Liquidity
The Exchange believes that it is appropriate, reasonable, and
consistent with the Act to provide a standard rebate of $0.0014 per
share for executions of orders that: (i) are not displayed on the LTSE
Order Book and (ii) add liquidity to the Exchange, in all securities
traded on the Exchange priced at or above $1.00 per share or 0.14% of
the TDV for securities priced under $1.00 because this rebate is
consistent with transaction rebates provided by other exchanges.\30\
The Exchange further believes that this rebate structure is equitably
allocated and not unfairly discriminatory because it applies equally to
all Members.
---------------------------------------------------------------------------
\30\ For example, the Cboe BZX Fee Schedule reflects a standard
rebate for adding liquidity of $0.0.00080 for executions in
securities priced at or above $1.00, with no rebate for executions
in securities priced below $1.00. Further, various tiers provide the
ability of a firm to receive a rebate of $0.0032 per share; see
https://www.cboe.com/us/equities/membership/fee_schedule/bzx/. The
MEMX Fee Schedule reflects rebates for adding non-displayed
liquidity that range from $0.0008 to $0.028 for shares executed at
or above $1.00, with 0.075% for shares executed below a $1.00, see
https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/.
---------------------------------------------------------------------------
Other Proposed Changes
Annual Membership Fee
The Exchange believes moving the Annual Membership Fee language to
the proposed Fee Schedule is reasonable, equitable and not unfairly
discriminatory. In particular, the Exchange believes that the proposed
rule change will provide greater clarity to Members by having the
Membership Fee in the Fee Schedule. Lastly, removing subsection (4) is
appropriate as it is an obsolete reference which only applied during
the Exchange's first year of operations. This proposed change does not
propose any substantive changes to the Membership Fees the Exchange
charges. Therefore, the Exchange does not believe that the proposed
change raises any new or novel issues not already considered by the
Commission.
[[Page 81591]]
Billing Errors
With respect to the proposed policy relating to billing errors, the
Exchange believes that providing that all fees and rebates are final
after three months (i.e., resolving billing errors only for the three
full calendar months preceding the month in which the Exchange became
aware of the error) is reasonable and consistent with the Act as both
the Exchange and its Members and Non-Members have an interest in
knowing when its fee assessments are final and when reliance can be
placed on those assessments. Indeed, without some deadline on billing
errors, the Exchange and its Members and Non-Members would never be
able to close their books with any confidence. As noted above, the
Exchange believes this proposed change would conserve Exchange
resources that would have to be expended to resolve untimely billing
disputes, which could divert Exchange staff resources away from the
Exchange's regulatory and business purposes. For these reasons, the
Exchange believes this proposed change promotes just and equitable
principles of trade, fosters cooperation and coordination with persons
engaged in regulating, clearing, settling, processing information with
respect to, and facilitating transactions in securities, removes
impediments to and perfects the mechanism of a free and open market and
a national market system, and, in general, protects investors and the
public interest.
Furthermore, as noted above, the language of proposed Rule
15.120(c) is the same as language included in MEMX Rule 15.3(c) and the
fee schedules of the four Cboe U.S. equities exchanges,\31\ and a
number of other exchanges similarly consider their fees final after a
similar period of time.\32\ As such, this proposed change does not
raise any new or novel issues that have not been previously considered
by the Commission. This proposed change is also equitable and not
unfairly discriminatory because it would apply equally to all Members
(and Non-Members that pay Exchange fees) and would apply in cases where
either the Member (or Non-Member) discovers the error or the Exchange
discovers the error.
---------------------------------------------------------------------------
\31\ See supra notes 17-21 [sic].
\32\ See supra note 22 [sic].
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Additional Changes
Lastly, the Exchange believes the additional changes are
reasonable, equitable and not unfairly discriminatory. In particular,
the Exchange believes that the proposed changes will provide greater
clarity to market participants when looking at either the Fee Schedule
or Chapter 15 of the LTSE Rulebook.This proposed change does not
propose any substantive changes fees [sic] charged by the Exchange..
Therefore, the Exchange does not believe that the proposed change
raises any new or novel issues not already considered by the
Commission.
In conclusion, the Exchange also submits that its proposed fee
structure satisfies the requirements of Sections 6(b)(4) and 6(b)(5) of
the Act for the reasons discussed above in that it provides for the
equitable allocation of reasonable dues, fees and other charges among
its Members and other persons using its facilities, provides certainty
in billing and a process for resolving billing disputes, does not
permit unfair discrimination between customers, issuers, brokers, or
dealers, and is designed to promote just and equitable principles of
trade, 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, particularly as the proposal neither
targets nor will it have a disparate impact on any particular category
of market participant. As described more fully below in the Exchange's
statement regarding the burden on competition, the Exchange believes
that it is subject to significant competitive forces, and that its
proposed fee and rebate structure is an appropriate effort to address
such forces.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Rather, as
discussed above, the Exchange believes that the proposed change would
encourage the submission of additional order flow to a public exchange,
thereby promoting market depth, execution incentives and enhanced
execution opportunities, as well as price discovery and transparency
for all Members. As a result, the Exchange believes that the proposed
change furthers the Commission's goal in adopting Regulation NMS of
fostering competition among orders, which promotes ``more efficient
pricing of individual stocks for all types of orders, large and
small.'' \33\ The Exchange does not believe that the proposed rule
change will impose any burden on intermarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act. To
the contrary, the Exchange believes that the proposed pricing structure
will increase competition and is intended to draw volume to the
Exchange. The Exchange believes that the ever-shifting market share
among the exchanges from month to month demonstrates that market
participants can shift order flow or discontinue to reduce use of
certain categories of products, in response to new or different pricing
structures being introduced into the market. Accordingly, competitive
forces constrain the Exchange's transaction fees and rebates, and
market participants can readily trade on competing venues if they deem
pricing levels at those other venues to be more favorable. Although
this pricing is intended to attract liquidity to the Exchange, most
other exchanges in operation today already offer multiple incentives to
their participants, including tiered pricing that provides higher
rebates or discounted executions, and other exchanges will be able to
modify such incentives in order to compete with the Exchange.
Accordingly, with respect to a participant deciding to either submit an
order to add liquidity or seeking to remove liquidity, there are
multiple exchanges that will continue to be competitively priced for
such orders when compared to the Exchange's pricing. Further, while
pricing incentives can cause shifts of liquidity between trading
centers, market participants make determinations on where to provide
liquidity or route orders to take liquidity based on factors other than
pricing, including execution quality, technology, functionality, and
other considerations. Consequently, the Exchange believes that the
degree to which its fees and rebates could impose any burden on
competition is extremely limited, and does not believe that such fees
would burden competition of Members or competing venues in a manner
that is not necessary or appropriate in furtherance of the purposes of
the Act. The Exchange does not believe that the proposed rule change
will impose any burden on intramarket competition that is not necessary
or appropriate in furtherance of the purposes of the Act because the
proposed fees and rebates apply equally to all Members. The proposed
pricing structure is intended to encourage market participants to add
displayed and non-displayed liquidity to the Exchange by providing
rebates that are
[[Page 81592]]
comparable to those offered by other exchanges as well as to provide a
competitive rate charged for removing liquidity, which the Exchange
believes will help to encourage Members to send orders to the Exchange
to the benefit of all Exchange participants. As the proposed rates are
equally applicable to all market participants, the Exchange does not
believe there is any burden on intramarket competition.
---------------------------------------------------------------------------
\33\ See supra note 26 [sic].
---------------------------------------------------------------------------
With respect to the proposed billing errors policy, the proposal
would establish a clearly defined timeframe for fees and rebates to be
considered final that would apply equally to all Members and Non-
Members. Additionally, as noted above, this proposed change is similar
to rules of other exchanges and therefore does not raise any new or
novel issues that have not been previously considered by the
Commission.\34\
---------------------------------------------------------------------------
\34\ See supra notes 14-19 [sic].
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For these reasons, the Exchange does not believe such proposed
changes would impair the ability of Members 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
Non-Members, as applicable, 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
This proposed rule change establishes dues, fees or other charges
among its members and, as such, may take effect upon filing with the
Commission pursuant to Section 19(b)(3)(A)(ii) of the Act \35\ and
paragraph (f)(2) of Rule 19b-4 thereunder.\36\ Accordingly, the
proposed rule change would take effect upon filing with the Commission.
---------------------------------------------------------------------------
\35\ 15 U.S.C. 78s(b)(3)(A)(ii).
\36\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend the rule
change if it appears to the Commission that the action is necessary or
appropriate in the public interest, for the protection of investors, or
would otherwise further the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or 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:
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 SR-LTSE-2024-06 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 SR-LTSE-2024-06. 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
a.m. and 3 p.m. Copies of the filing also 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-2024-06 and should be
submitted on or before October 29, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\37\
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\37\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-23062 Filed 10-7-24; 8:45 am]
BILLING CODE 8011-01-P
