[Federal Register Volume 87, Number 224 (Tuesday, November 22, 2022)]
[Notices]
[Page 71388]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25425]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96337; File No. 10-239]
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
November 17, 2022.
On March 25, 2022, 24X National Exchange LLC (``24X'') filed with
the Securities and Exchange Commission (``Commission'') a Form 1
application under the Securities Exchange Act of 1934 (``Act'') seeking
registration as a national securities exchange under Section 6 of the
Act.\1\ Notice of the application was published for comment in the
Federal Register on June 6, 2022.\2\ The Commission received three
comment letters on 24X's Initial Form 1 Application and a letter from
24X responding to these comment letters.\3\ On September 1, 2022, the
Commission instituted proceedings pursuant to Section 19(a)(1)(B) of
the Act \4\ to determine whether to grant or deny 24X's application for
registration as a national securities exchange under Section 6 of the
Act (the ``OIP'').\5\ The Commission received one comment letter in
response to the OIP,\6\ and a letter in response to the OIP from
24X.\7\ On October 21, 2022, 24X filed an amendment to its Initial Form
1 Application (``Amendment No. 1'').\8\ Notice of Amendment No. 1 was
published for comment in the Federal Register on November 9, 2022.\9\
On November 10, 2022, 24X filed a second amendment to its Initial Form
1 Application (``Amendment No. 2'').\10\ The Commission is publishing
this notice in order to solicit views of interested persons on 24X's
Initial Form 1 Application, as amended by Amendment No. 1 and Amendment
No. 2.
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\1\ 15 U.S.C. 78f.
\2\ See Securities Exchange Act Release No. 95007 (May 31,
2022), 87 FR 34333 (June 6, 2022) (``Initial Form 1 Application'').
\3\ The public comment file for 24X's Form 1 application (File
No. 10-239) is available on the Commission's website at: https://www.sec.gov/comments/10-239/10-239.htm.
\4\ 15 U.S.C. 78s(a)(1)(B).
\5\ See Securities Exchange Act Release No. 95651 (Sept. 1,
2022), 87 FR 54736 (Sept. 7, 2022).
\6\ See letter from Brian Hyndman, President and Chief Executive
Officer, Blue Ocean ATS, LLC, dated Sept. 28, 2022, to Vanessa A.
Countryman, Secretary, Commission.
\7\ See letter from James M. Brady, Katten Muchin Rosenman LLP,
outside counsel for 24X National Exchange LLC, dated Oct. 18, 2022,
to Vanessa A. Countryman, Secretary, Commission.
\8\ Amendment No. 1 is available on the Commission's website at:
https://www.sec.gov/rules/other/2022/24x/24x-form-1.htm.
\9\ See Securities Exchange Act Release No. 96218 (Nov. 3,
2022), 87 FR 67725 (Nov. 9, 2022).
\10\ Amendment No. 2 is available on the Commission's website
at: https://www.sec.gov/rules/other/2022/24x/24x-form-1.htm.
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I. Description of 24X's Proposed Trading System
24X proposes to operate a fully automated electronic trading
platform for the trading of listed NMS stocks pursuant to unlisted
trading privileges.\11\ 24X would not maintain a physical trading
floor.\12\ 24X proposes to allow trading in NMS stocks 24 hours a day,
7 days per week, 365 days a year.\13\ 24X proposes specific rules to
govern trading during regular trading hours \14\ as well as trading
outside of regular trading hours.\15\
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\11\ See Exhibit E, as amended by 24X's Amendment No. 1, at 1,
4.
\12\ Id. at 1.
\13\ See proposed 24X Rule 11.1 (describing the hours of trading
and trading days for 24X).
\14\ Regulation NMS Rule 600(b)(77) defines ``regular trading
hours'' as ``the time between 9:30 a.m. and 4:00 p.m. Eastern Time .
. .'' 24X proposes to define four different trading sessions. See
proposed 24X Rules 1.5(b), defining the ``24X Market Session'';
1.5(k) defining the ``Core Market Session''; 1.5(v) defining the
``Post-market Session''; and 1.5(w) defining the ``Pre-Market
Session''.
\15\ See e.g., proposed 24X Rule 11.16 (describing what orders
are eligible for execution outside of regular trading hours).
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II. Amendment No. 2 to 24X's Initial Form 1 Application
In Amendment No. 2, 24X proposes certain changes to the Amended and
Restated Limited Liability Company Operating Agreement of 24X Bermuda
Holdings LLC, \16\ as well as to the Member Nominating Committee
Charter.\17\
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\16\ See Exhibits C and C-2, as amended by 24X's Amendment No.
2.
\17\ See Exhibit J-3, as amended by 24X's Amendment No. 2.
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III. Request for Written Comment
The Commission requests that interested persons provide written
views and data with respect to 24X's Initial Form 1 Application, as
amended by Amendment No. 1 and Amendment No. 2. Comments may be
submitted by any of the following methods:
Electronic Comments
Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number 10-239 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number 10-239. This file number
should be included on the subject line if email is used. To help the
Commission process and review your comments more efficiently, please
use only one method. The Commission will post all comments on the
Commission's internet website (http://www.sec.gov/rules/other.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to 24X's Initial Form 1 Application, as amended
by Amendment No. 1 and Amendment No. 2, filed with the Commission, and
all written communications relating to the application between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. All
comments received will be posted without change. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from submissions. You should submit only
information that you wish to make publicly available.
All submissions should refer to File Number 10-239 and should be
submitted on or before December 13, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(71)(ii).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-25425 Filed 11-21-22; 8:45 am]
BILLING CODE 8011-01-P