24X National Exchange LLC; Notice of Filing of Amendment No. 2 to an Application for Registration as a National Securities Exchange Under Section 6 of the Securities Exchange Act of 1934, 86400-86402 [2024-25170]
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Federal Register / Vol. 89, No. 210 / Wednesday, October 30, 2024 / Notices
Historical Depth Reports available to all
investors. Potential purchasers may
request the data at any time if they
believe it to be valuable or may decline
to purchase such data. As noted above,
the Exchange previously adopted
similar discount programs for other
historical data products offered by the
Exchange.15
B. Self-Regulatory Organization’s
Statement on Burden on Competition
ddrumheller on DSK120RN23PROD with NOTICES1
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange operates in a highly
competitive environment in which the
Exchange must continually adjust its
fees to remain competitive. Because
competitors are free to modify their own
fees in response, including the adoption
of similar discount to those fees, the
Exchange believes that the degree to
which fee changes (including discounts
and rebates) in this market may impose
any burden on competition is extremely
limited. As discussed above, the
Exchange’s Historical Depth Reports
offering is subject to direct competition
from several other options exchanges
that offer similar data products.
Moreover, purchase of Historical Depth
Reports is optional. It is designed to
help investors understand underlying
market trends to improve the quality of
investment decisions, but is not
necessary to execute a trade.
The proposed rule changes are
grounded in the Exchange’s efforts to
compete more effectively. In this
competitive environment, potential
purchasers are free to choose which, if
any, similar product to purchase to
satisfy their need for market
information. As a result, the Exchange
believes this proposed rule change
permits fair competition among national
securities exchanges. Further, the
Exchange believes that these changes
will not cause any unnecessary or
inappropriate burden on intermarket
competition, as the proposed incentive
program applies uniformly to any
purchaser of Historical Depth Reports.
15 See Securities Exchange Act Release No. 99185
(December 14, 2023), 88 FR 88182 (December 20,
2023) (SR–CboeEDGX–2023–072) and Securities
Exchange Act Release No. 100333 (June14, 2024),
89 FR 52115 (June 21, 2024) (SR–CboeEDGX–2024–
034).
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 16 and paragraph (f) of Rule
19b–4 17 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change 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–
CboeEDGX–2024–068 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–CboeEDGX–2024–068. 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
16 15
17 17
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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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–CboeEDGX–2024–068 and should be
submitted on or before November 20,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–25143 Filed 10–29–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release 34–101431; File No. 10–242]
24X National Exchange LLC; Notice of
Filing of Amendment No. 2 to an
Application for Registration as a
National Securities Exchange Under
Section 6 of the Securities Exchange
Act of 1934
October 24, 2024.
On February 6, 2024, 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 March 4,
2024.2 The Commission received
comments on the Form 1 3 and a letter
18 17
CFR 200.30–3(a)(12).
U.S.C. 78f.
2 See Securities Exchange Act Release No. 99614
(Feb. 27, 2024), 89 FR 15621 (‘‘Notice’’).
3 The public comment file for 24X’s Form 1 (File
No. 10–242) is available on the Commission’s
website at: https://www.sec.gov/comments/10-242/
10-242.htm.
1 15
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Federal Register / Vol. 89, No. 210 / Wednesday, October 30, 2024 / Notices
responding to the comments from 24X.4
On May 31, 2024, the Commission
instituted proceedings pursuant to
Section 19(a)(1)(B) of the Act 5 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’’).6 After
issuance of the OIP, Commission
received six comment letters 7 and a
letter responding to the OIP and
comments from 24X.8 On August 21,
2024, 24X filed an amendment to its
Form 1 application (‘‘Amendment No.
1’’),9 which was published for comment
in the Federal Register on September 3,
2024.10 On August 30, 2024, the
Commission extended, pursuant to
Section 19(a)(1)(B) of the Exchange
Act,11 the time period for granting or
denying 24X’s Form 1 application for an
additional 90 days, until November 29,
2024.12 The Commission subsequently
received three comment letters.13 On
October 23, 2024, 24X filed a second
amendment to its Form 1 application
(‘‘Amendment No. 2’’).14 The
Commission is publishing this notice in
order to solicit views of interested
persons on 24X’s Form 1, as amended
by Amendment No. 2.
I. Description of 24X’s Proposed
Trading System
ddrumheller on DSK120RN23PROD with NOTICES1
As described in the Notice, 24X
proposes to operate as a national
securities exchange with expanded
4 See letter to Secretary, Commission, from David
Sassoon, General Counsel, 24X, dated May 30, 2024
(‘‘24X Letter’’).
5 15 U.S.C. 78s(a)(1)(B).
6 See Securities Exchange Act Release No. 100254
(May 31, 2024), 89 FR 48466 (Jun. 6, 2024).
7 The public comment file for 24X’s Form 1 (File
No. 10–242) is available on the Commission’s
website at: https://www.sec.gov/comments/10-242/
10-242.htm.
8 See letter to Secretary, Commission, from David
Sassoon, General Counsel, 24X, dated Aug. 21, 2024
(‘‘24X OIP Letter’’).
9 Amendment No. 1 is available on the
Commission’s website at: https://www.sec.gov/
rules-regulations/other-commission-orders-noticesinformation/24x-form-1.
10 See Securities Exchange Act Release No.
100839 (Aug. 27, 2024), 89 FR 71471 (Sept. 3,
2024).
11 15 U.S.C. 78s(a)(1)(B).
12 See Securities Exchange Act Release No.
100884 (Aug. 30, 2024), 89 FR 72917 (Sept. 6,
2024).
13 See letters from Patrick Blonien, Instructor of
Finance, Carnegie Mellon University, and
Alexander Ober, Ph.D. Candidate in Finance, Rice
University, undated; John Ramsay, Chief Market
Policy Officer, Investors’ Exchange LLC, dated Oct.
9, 2024; Joanna Mallers, Secretary, FIA Principal
Traders Group, dated Oct. 11, 2024.
14 Amendment No. 2 is available on the
Commission’s website at: https://www.sec.gov/
rules-regulations/other-commission-orders-noticesinformation/24x-form-1.
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hours of trading that are outside of
regular trading hours.15
II. Amendment No. 2 to 24X’s Form 1
In Amendment No. 2, 24X proposes to
revise Exhibit B–1 to: (1) modify the
definition of ‘‘24X Trading Day’’ in 24X
Rule 1.5(b) to reflect trading over 5 days,
rather than the 7 days initially
proposed, and make corresponding
changes to 24X Rule 11.1; 16 (2) modify
the definition of ‘‘24X Market Session’’
in 24X Rule 1.5(c) to revise the hours of,
and to expressly condition the operation
of, the 24X Market Session; 17 (3) add
15 ‘‘Regular trading hours’’ is defined in
Commission Rule 600(b)(88) as ‘‘the time between
9:30 a.m. and 4:00 p.m. Eastern Time.’’ 17 CFR
242.600(b)(88).
16 In Amendment No. 2, 24X proposes to revise
the 24X Rule 1.5(b) definition of ‘‘24X Trading Day’’
to mean, ‘‘the 23-hour period commencing at 8:00
p.m. Eastern Time on one calendar day and ending
at 7:00 p.m. Eastern Time on the next calendar day
for the period from Sunday at 8 p.m. Eastern Time
through Friday at 7:00 p.m. Eastern Time. Subject
to any trading pauses, halts or suspensions as
described in these Rules, including the pause in
trading described in the next sentence, trading will
be continuous during this period, despite the
designation of specified times for the Pre-Market
Session, Core Market Session, Post-Market Session
and 24X Market Session. For RHO Orders entered
outside the Core Market Session, or during the Core
Market Session but prior to the commencement of
trading, trading for such RHO Orders will
commence once the security has begun trading on
the primary listing market on or after 9:30:00 a.m.
Eastern Time; for all orders eligible to trade in the
Core Market Session other than such RHO Orders,
trading will be continuous in the Core Market
Session, with no pause in trading related to the
commencement of trading on the primary listing
market.’’
17 Specifically, 24X proposes in Amendment No.
2 to revise the definition of ‘‘24X Market Session’’
in 24X Rule 1.5(c) to read, ‘‘(i) the time between
8:00 p.m. Eastern Time on Sunday and 4:00 a.m.
Eastern Time on Monday, unless Monday is not a
U.S. Business Day, (ii) the time between 8:00 p.m.
Eastern Time on Monday and 4:00 a.m. Eastern
Time on Tuesday, unless Tuesday is not a U.S.
Business Day, (iii) the time between 8:00 p.m.
Eastern Time on Tuesday and 4:00 a.m. Eastern
Time on Wednesday, unless Wednesday is not a
U.S. Business Day, (iv) the time between 8:00 p.m.
Eastern Time on Wednesday and 4:00 a.m. Eastern
Time on Thursday, unless Thursday is not a U.S.
Business Day, and (v) the time between 8:00 p.m.
Eastern Time on Thursday and 4:00 a.m. Eastern
Time on Friday, unless Friday is not a U.S.
Business Day; provided, however, it shall not
include any trading pauses as described in Rule
11.15(c). For the avoidance of doubt,
notwithstanding anything to the contrary in these
Rules, the Exchange shall not commence operation
of the 24X Market Session unless the Equity Data
Plans (1) have established a mechanism to collect,
consolidate, process and disseminate quotation and
transaction information at all times during the 24X
Market Session that is equivalent to the mechanism
established for Exchange Trading Hours other than
the 24X Market Session, and (2) have provided the
Exchange with notification that they are prepared
to collect, consolidate, process and disseminate
quotation and transaction information to
accommodate the 24X Market Session. Prior to
commencing operation during the 24X Market
Session, the Exchange will file a proposed rule
change pursuant to Section 19(b) of the Exchange
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86401
subparagraph (o) to 24X Rule 1.5 to
define the term, ‘‘Equity Data Plans’’; 18
(4) revise 24X Rule 3.21(i) (‘‘Customer
Disclosures’’) to reflect the proposed
amendment to the 24X Market
Session; 19 (5) revise the Time-in-Force
instructions in 24X Rule 11.6(o)(4) to
reflect the new operating hours; (6)
make corresponding changes to 24X
Rule 11.15(c), governing trading pauses,
consistent with the new operating
hours; and (7) modify 24X Rule 11.16 to
clarify that the Exchange will not
operate the 24X Market Session until
the 24X Market Session Proposed Rule
Change as required under 24X Rule
1.5(c) has been approved or otherwise
become effective under Section 19(b) of
the Act.20
In Amendment No. 2, 24X also
proposes to revise Exhibit E and Exhibit
E–1 to make conforming changes to
reflect the new operating hours of the
Exchange, and in particular, the
operating hours of, and conditions for
commencement of operations of, the
24X Market Session.
III. Request for Written Comment
The Commission requests that
interested persons provide written
views and data with respect to 24X’s
Act and the rules thereunder to amend its rules
confirming that the Exchange is able to comply with
its obligations under the Exchange Act and the rules
thereunder during the 24X Market Session and that
such Equity Data Plans are prepared to collect,
consolidate, process and disseminate quotation and
transaction information at all times during the 24X
Market Session (‘‘24X Market Session Proposed
Rule Change’’). The 24X Market Session Proposed
Rule Change must be filed with the SEC within 18
months of the SEC’s approval of the Exchange’s
application for registration as a national securities
exchange. If the 24X Market Session Proposed Rule
Change is not filed within 18 months of the SEC’s
approval of the Exchange’s application for
registration as a national securities exchange, the
Exchange will promptly file a proposed rule change
to remove the rules that apply to the 24X Market
Session.’’
18 24X proposes to define ‘‘Equity Data Plans’’ in
24X Rule 1.5(o) as ‘‘the effective national market
system plan(s) that govern the collection,
consolidation, processing and dissemination of
consolidated equity market data via the exclusive
securities information processors (‘‘SIPs’’),
including (1) Consolidated Tape Association Plan
(‘‘CTA Plan’’), (2) Consolidated Quotation Plan
(‘‘CQ Plan’’), (3) the Joint Self-Regulatory
Organization Plan Governing the Collection,
Consolidation and Dissemination of Quotation and
Transaction Information for Nasdaq-Listed
Securities Traded on Exchanges on an Unlisted
Trading Privileges Basis (‘‘UTP Plan’’), and (4) any
successor thereto to the named Plan(s).’’
19 In particular, in Amendment No. 2, 24X
proposes to remove subparagraph (2) to 24X Rule
3.21(i).
20 Specifically, 24X proposes in Amendment No.
2 to add language to 24X Rule 11.16 to read, ‘‘[t]he
Exchange will not commence operation of the 24X
Market Session until a proposed rule change as
required under 24X Rule 1.5(c) has been approved
or become otherwise effective under Section 19(b)
of the Exchange Act and the rules thereunder.’’
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Federal Register / Vol. 89, No. 210 / Wednesday, October 30, 2024 / Notices
Form 1, as amended by Amendment No.
2. Comments may be submitted by any
of the following methods:
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–101427; File No. SR–
CboeEDGA–2024–041]
• 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–
242 on the subject line.
October 24, 2024.
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 10–242. 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 Form 1, as
amended, 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 10–242 and should be
submitted on or before November 14,
2024.
ddrumheller on DSK120RN23PROD with NOTICES1
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Fee Schedule
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–25170 Filed 10–29–24; 8:45 am]
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 October
18, 2024, Cboe EDGA Exchange, Inc.
(the ‘‘Exchange’’ or ‘‘EDGA’’) 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 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 EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) proposes to
amend its Fee Schedule. 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://markets.cboe.com/us/
equities/regulation/rule_filings/edga/),
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
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
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
BILLING CODE 8011–01–P
1 15
21 17
CFR 200.30–3(a)(71)(ii).
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to update its
Fee Schedule to provide a temporary
20% discount on fees assessed to EDGA
Members (‘‘Members’’) 3 and nonMembers that purchase $20,000 or more
of or more of ad hoc purchases of EDGA
Historical Depth Data (‘‘Historical Depth
Reports’’), effective October 18, 2024
through December 31, 2024.
By way of background, the Exchange
currently makes available for purchase
Depth Data, which is a daily archive of
the Exchange’s depth of book real-time
feed, which provides depth-of-book
quotations and execution information
based on equity orders entered into the
System. The Exchange also offers
Historical Depth Data, which offers such
data on a historical basis, i.e., T+1 or
later. The Historical Depth Report is a
completely voluntary product, in that
the Exchange is not required by any rule
or regulation to make this data available
and that potential customers may
purchase it on an ad-hoc basis only if
they voluntarily choose to do so.
Cboe LiveVol, LLC (‘‘LiveVol’’), a
wholly owned subsidiary of the
Exchange’s parent company, Cboe
Global Markets, Inc., makes the
Historical Depth Report available for
purchase to Users on the LiveVol
DataShop website (datashop.cboe.com).
The Historical Depth Data is available
for purchase to Members and NonMembers; the Exchange charges a fee
per month of historical data of $1,000.
The Historical Depth Report provided
on a historical basis is only provided to
data recipients for internal use only, and
thus, no redistribution will be
permitted. The Exchange notes that the
Historical Depth Report is subject to
direct competition from other
exchanges, as other exchanges offer
similar products for a fee.4
The Exchange’s affiliated equities and
options exchanges (i.e., Cboe Exchange,
Inc. (‘‘Cboe Options’’), Cboe C2
Exchange, Inc. (‘‘C2 Options’’), Cboe
3 See Rule 1.5(n) (‘‘Member’’). The term
‘‘Member’’ shall mean any registered broker or
dealer that has been admitted to membership in the
Exchange. A Member will have the status of a
‘‘member’’ of the Exchange as that term is defined
in Section 3(a)(3) of the Act. Membership may be
granted to a sole proprietor, partnership,
corporation, limited liability company or other
organization which is a registered broker or dealer
pursuant to Section 15 of the Act, and which has
been approved by the Exchange.
4 See, e.g., https://www.nasdaqtrader.com/
Trader.aspx?id=DPPriceListOptions#nom; and
https://www.nyse.com/publicdocs/nyse/data/
NYSE_Market_Data_Fee_Schedule.pdf.
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]]>Agencies
[Federal Register Volume 89, Number 210 (Wednesday, October 30, 2024)]
[Notices]
[Pages 86400-86402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25170]
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SECURITIES AND EXCHANGE COMMISSION
[Release 34-101431; File No. 10-242]
24X National Exchange LLC; Notice of Filing of Amendment No. 2 to
an Application for Registration as a National Securities Exchange Under
Section 6 of the Securities Exchange Act of 1934
October 24, 2024.
On February 6, 2024, 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 March 4, 2024.\2\ The Commission received comments
on the Form 1 \3\ and a letter
[[Page 86401]]
responding to the comments from 24X.\4\ On May 31, 2024, the Commission
instituted proceedings pursuant to Section 19(a)(1)(B) of the Act \5\
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'').\6\ After issuance of the OIP, Commission received
six comment letters \7\ and a letter responding to the OIP and comments
from 24X.\8\ On August 21, 2024, 24X filed an amendment to its Form 1
application (``Amendment No. 1''),\9\ which was published for comment
in the Federal Register on September 3, 2024.\10\ On August 30, 2024,
the Commission extended, pursuant to Section 19(a)(1)(B) of the
Exchange Act,\11\ the time period for granting or denying 24X's Form 1
application for an additional 90 days, until November 29, 2024.\12\ The
Commission subsequently received three comment letters.\13\ On October
23, 2024, 24X filed a second amendment to its Form 1 application
(``Amendment No. 2'').\14\ The Commission is publishing this notice in
order to solicit views of interested persons on 24X's Form 1, as
amended by Amendment No. 2.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78f.
\2\ See Securities Exchange Act Release No. 99614 (Feb. 27,
2024), 89 FR 15621 (``Notice'').
\3\ The public comment file for 24X's Form 1 (File No. 10-242)
is available on the Commission's website at: https://www.sec.gov/comments/10-242/10-242.htm.
\4\ See letter to Secretary, Commission, from David Sassoon,
General Counsel, 24X, dated May 30, 2024 (``24X Letter'').
\5\ 15 U.S.C. 78s(a)(1)(B).
\6\ See Securities Exchange Act Release No. 100254 (May 31,
2024), 89 FR 48466 (Jun. 6, 2024).
\7\ The public comment file for 24X's Form 1 (File No. 10-242)
is available on the Commission's website at: https://www.sec.gov/comments/10-242/10-242.htm.
\8\ See letter to Secretary, Commission, from David Sassoon,
General Counsel, 24X, dated Aug. 21, 2024 (``24X OIP Letter'').
\9\ Amendment No. 1 is available on the Commission's website at:
https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/24x-form-1.
\10\ See Securities Exchange Act Release No. 100839 (Aug. 27,
2024), 89 FR 71471 (Sept. 3, 2024).
\11\ 15 U.S.C. 78s(a)(1)(B).
\12\ See Securities Exchange Act Release No. 100884 (Aug. 30,
2024), 89 FR 72917 (Sept. 6, 2024).
\13\ See letters from Patrick Blonien, Instructor of Finance,
Carnegie Mellon University, and Alexander Ober, Ph.D. Candidate in
Finance, Rice University, undated; John Ramsay, Chief Market Policy
Officer, Investors' Exchange LLC, dated Oct. 9, 2024; Joanna
Mallers, Secretary, FIA Principal Traders Group, dated Oct. 11,
2024.
\14\ Amendment No. 2 is available on the Commission's website
at: https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/24x-form-1.
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I. Description of 24X's Proposed Trading System
As described in the Notice, 24X proposes to operate as a national
securities exchange with expanded hours of trading that are outside of
regular trading hours.\15\
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\15\ ``Regular trading hours'' is defined in Commission Rule
600(b)(88) as ``the time between 9:30 a.m. and 4:00 p.m. Eastern
Time.'' 17 CFR 242.600(b)(88).
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II. Amendment No. 2 to 24X's Form 1
In Amendment No. 2, 24X proposes to revise Exhibit B-1 to: (1)
modify the definition of ``24X Trading Day'' in 24X Rule 1.5(b) to
reflect trading over 5 days, rather than the 7 days initially proposed,
and make corresponding changes to 24X Rule 11.1; \16\ (2) modify the
definition of ``24X Market Session'' in 24X Rule 1.5(c) to revise the
hours of, and to expressly condition the operation of, the 24X Market
Session; \17\ (3) add subparagraph (o) to 24X Rule 1.5 to define the
term, ``Equity Data Plans''; \18\ (4) revise 24X Rule 3.21(i)
(``Customer Disclosures'') to reflect the proposed amendment to the 24X
Market Session; \19\ (5) revise the Time-in-Force instructions in 24X
Rule 11.6(o)(4) to reflect the new operating hours; (6) make
corresponding changes to 24X Rule 11.15(c), governing trading pauses,
consistent with the new operating hours; and (7) modify 24X Rule 11.16
to clarify that the Exchange will not operate the 24X Market Session
until the 24X Market Session Proposed Rule Change as required under 24X
Rule 1.5(c) has been approved or otherwise become effective under
Section 19(b) of the Act.\20\
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\16\ In Amendment No. 2, 24X proposes to revise the 24X Rule
1.5(b) definition of ``24X Trading Day'' to mean, ``the 23-hour
period commencing at 8:00 p.m. Eastern Time on one calendar day and
ending at 7:00 p.m. Eastern Time on the next calendar day for the
period from Sunday at 8 p.m. Eastern Time through Friday at 7:00
p.m. Eastern Time. Subject to any trading pauses, halts or
suspensions as described in these Rules, including the pause in
trading described in the next sentence, trading will be continuous
during this period, despite the designation of specified times for
the Pre-Market Session, Core Market Session, Post-Market Session and
24X Market Session. For RHO Orders entered outside the Core Market
Session, or during the Core Market Session but prior to the
commencement of trading, trading for such RHO Orders will commence
once the security has begun trading on the primary listing market on
or after 9:30:00 a.m. Eastern Time; for all orders eligible to trade
in the Core Market Session other than such RHO Orders, trading will
be continuous in the Core Market Session, with no pause in trading
related to the commencement of trading on the primary listing
market.''
\17\ Specifically, 24X proposes in Amendment No. 2 to revise the
definition of ``24X Market Session'' in 24X Rule 1.5(c) to read,
``(i) the time between 8:00 p.m. Eastern Time on Sunday and 4:00
a.m. Eastern Time on Monday, unless Monday is not a U.S. Business
Day, (ii) the time between 8:00 p.m. Eastern Time on Monday and 4:00
a.m. Eastern Time on Tuesday, unless Tuesday is not a U.S. Business
Day, (iii) the time between 8:00 p.m. Eastern Time on Tuesday and
4:00 a.m. Eastern Time on Wednesday, unless Wednesday is not a U.S.
Business Day, (iv) the time between 8:00 p.m. Eastern Time on
Wednesday and 4:00 a.m. Eastern Time on Thursday, unless Thursday is
not a U.S. Business Day, and (v) the time between 8:00 p.m. Eastern
Time on Thursday and 4:00 a.m. Eastern Time on Friday, unless Friday
is not a U.S. Business Day; provided, however, it shall not include
any trading pauses as described in Rule 11.15(c). For the avoidance
of doubt, notwithstanding anything to the contrary in these Rules,
the Exchange shall not commence operation of the 24X Market Session
unless the Equity Data Plans (1) have established a mechanism to
collect, consolidate, process and disseminate quotation and
transaction information at all times during the 24X Market Session
that is equivalent to the mechanism established for Exchange Trading
Hours other than the 24X Market Session, and (2) have provided the
Exchange with notification that they are prepared to collect,
consolidate, process and disseminate quotation and transaction
information to accommodate the 24X Market Session. Prior to
commencing operation during the 24X Market Session, the Exchange
will file a proposed rule change pursuant to Section 19(b) of the
Exchange Act and the rules thereunder to amend its rules confirming
that the Exchange is able to comply with its obligations under the
Exchange Act and the rules thereunder during the 24X Market Session
and that such Equity Data Plans are prepared to collect,
consolidate, process and disseminate quotation and transaction
information at all times during the 24X Market Session (``24X Market
Session Proposed Rule Change''). The 24X Market Session Proposed
Rule Change must be filed with the SEC within 18 months of the SEC's
approval of the Exchange's application for registration as a
national securities exchange. If the 24X Market Session Proposed
Rule Change is not filed within 18 months of the SEC's approval of
the Exchange's application for registration as a national securities
exchange, the Exchange will promptly file a proposed rule change to
remove the rules that apply to the 24X Market Session.''
\18\ 24X proposes to define ``Equity Data Plans'' in 24X Rule
1.5(o) as ``the effective national market system plan(s) that govern
the collection, consolidation, processing and dissemination of
consolidated equity market data via the exclusive securities
information processors (``SIPs''), including (1) Consolidated Tape
Association Plan (``CTA Plan''), (2) Consolidated Quotation Plan
(``CQ Plan''), (3) the Joint Self-Regulatory Organization Plan
Governing the Collection, Consolidation and Dissemination of
Quotation and Transaction Information for Nasdaq-Listed Securities
Traded on Exchanges on an Unlisted Trading Privileges Basis (``UTP
Plan''), and (4) any successor thereto to the named Plan(s).''
\19\ In particular, in Amendment No. 2, 24X proposes to remove
subparagraph (2) to 24X Rule 3.21(i).
\20\ Specifically, 24X proposes in Amendment No. 2 to add
language to 24X Rule 11.16 to read, ``[t]he Exchange will not
commence operation of the 24X Market Session until a proposed rule
change as required under 24X Rule 1.5(c) has been approved or become
otherwise effective under Section 19(b) of the Exchange Act and the
rules thereunder.''
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In Amendment No. 2, 24X also proposes to revise Exhibit E and
Exhibit E-1 to make conforming changes to reflect the new operating
hours of the Exchange, and in particular, the operating hours of, and
conditions for commencement of operations of, the 24X Market Session.
III. Request for Written Comment
The Commission requests that interested persons provide written
views and data with respect to 24X's
[[Page 86402]]
Form 1, as amended by Amendment No. 2. 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 10-242 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 10-242. 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 Form 1, as amended, 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 10-242 and should be
submitted on or before November 14, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(71)(ii).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-25170 Filed 10-29-24; 8:45 am]
BILLING CODE 8011-01-P
