[Federal Register Volume 89, Number 43 (Monday, March 4, 2024)]
[Notices]
[Pages 15621-15622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-04427]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99614; File No. 10-242]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing of Application for Registration as a National Securities
Exchange Under Section 6 of the Securities Exchange Act of 1934
February 27, 2024.
On February 6, 2024, 24X National Exchange LLC (``24X'' or
``Applicant'') submitted to the Securities and Exchange Commission
(``Commission'') a Form 1 application under the Securities Exchange Act
of 1934 (``Exchange Act''), seeking registration as a national
securities exchange under Section 6 of the Exchange Act.\1\ The
Applicant's Form 1 application provides detailed information on how 24X
proposes to satisfy the requirements of the Exchange Act.
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\1\ 15 U.S.C. 78f. 24X filed a Form 1 application on Mar. 25,
2022. See Securities Exchange Act Release No. 95007 (May 31, 2022),
87 FR 34333 (June 6, 2022) (``2022 Form 1 Application''). 24X
withdrew the 2022 Form 1 Application on Feb. 16, 2023. See
Securities Exchange Act Release No. 97043 (Mar. 3, 2023), 88 FR
14663 (Mar. 9, 2023).
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The Commission is publishing this notice to solicit comments on
24X's Form 1 application. The Commission will take any comments it
receives into consideration in making its determination about whether
to grant 24X's request to be registered as a national securities
exchange. The Commission will grant the registration if it finds that
the requirements of the Exchange Act and the rules and
[[Page 15622]]
regulations thereunder with respect to 24X are satisfied.\2\
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\2\ 15 U.S.C. 78s(a).
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24X's Form 1 application states that 24X would be wholly owned by
its parent company, 24X US Holdings LLC (``US Holdings''), which in
turn is wholly owned by 24X Bermuda Holdings LLC (``Bermuda
Holdings'').
The Form 1 application provides that 24X would operate a fully
automated electronic trading platform for the trading of listed
equities and would not maintain a physical trading floor. One novel
feature of 24X's Form 1 application is that 24X proposes to enter into
an agreement with MEMX Technologies, LLC to license the technology
underlying 24X.\3\ The Form 1 application provides that liquidity would
be derived from quotes as well as orders to buy and orders to sell
submitted to 24X electronically by 24X members from remote locations.
24X proposes to have one class of membership open to registered broker-
dealers. Another novel feature of 24X's proposed trading rules is that
24X intends to allow equities trading 24 hours a day, 7 days per week,
365 days a year.\4\ 24X has proposed specific rules to govern trading
outside of regular trading hours.\5\
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\3\ See Exhibits C and E to 24X's Form 1 application.
\4\ See proposed 24X Rule 11.1 (describing the hours of trading
and trading days for 24X).
\5\ For example, see proposed 24X Rule 11.16 (describing what
orders are eligible for execution outside of regular trading hours).
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A more detailed description of the manner of operation of 24X's
proposed system can be found in Exhibit E to 24X's Form 1 application.
The proposed rulebook for the proposed exchange can be found in Exhibit
B to 24X's Form 1 application, and the governing documents for 24X, US
Holdings and Bermuda Holdings can be found in Exhibit A and Exhibit C
to 24X's Form 1 application. A listing of the officers and directors of
24X can be found in Exhibit J to 24X's Form 1 application. A complete
set of forms concerning membership and access can be found in Exhibit F
to 24X's Form 1 application.
24X's Form 1 application, including all of the Exhibits referenced
above, is available online at www.sec.gov/rules/other.shtml as well as
in the Commission's Public Reference Room. Interested persons are
invited to submit written data, views, and arguments concerning 24X's
Form 1 application, including whether the application is consistent
with the Exchange 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 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 application 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 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 10-242 and should be submitted on or before
April 18, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(16) and (a)(71)(i).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-04427 Filed 3-1-24; 8:45 am]
BILLING CODE 8011-01-P