[Federal Register Volume 90, Number 187 (Tuesday, September 30, 2025)]
[Notices]
[Pages 46978-46981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-19015]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104086; File No. SR-24X-2025-07]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Revise
the Hours of Operation of the Exchange
September 26, 2025.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on September 24, 2025, 24X National Exchange LLC (``24X'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to revise the hours of operation of the
Exchange. Specifically, the Exchange proposes to change the end time of
the Post-Market Session to 8 p.m. E.T. rather than 7 p.m. E.T., to
correspondingly revise the definition of the 24X Market Session to
preserve a one-hour trading pause (the ``Trading Pause''),\4\ and to
make other conforming changes. The proposed rule change is available on
the Exchange's website at https://equities.24exchange.com/regulation
and at the principal office of the Exchange.
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\4\ See 24X Rule 11.5(c)(2).
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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 self-regulatory organization
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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is filing this proposed rule change to revise the
hours of operation of the Exchange. Specifically, the Exchange proposes
to change the end time of the Post-Market Session to 8 p.m. E.T. rather
than 7 p.m. E.T., to correspondingly revise the definition of the 24X
Market Session \5\ to preserve the Trading Pause, and to make other
conforming changes to reflect the changes to these market session
definitions.
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\5\ Pursuant to 24X Rule 1.5(c), the Exchange will not commence
operation of the 24X Market Session until certain requirements are
met.
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a. Background
24X was approved by the Securities and Exchange Commission as a
national securities exchange on November 27, 2024 \6\ and plans to
commence operations on September 29, 2025. 24X Rules currently provide
for trading sessions that span from 4 a.m. E.T. to 7 p.m. E.T. on each
U.S. Business Day: \7\ (1) the ``Core Market Session,'' which will
operate between 9:30 a.m. E.T. and 4 p.m. E.T. on U.S. Business
Days,\8\ (2) the ``Pre-Market Session,'' which will operate between 4
a.m. E.T. and 9:30 a.m. E.T. on U.S. Business Days,\9\ and (3) the
``Post-Market Session,'' which will operate between 4 p.m. E.T. and 7
p.m. E.T. on U.S. Business Days.\10\ The current 24X Rules also provide
that once certain requirements are met, another trading session, the
``24X Market Session,'' \11\ would operate between 8 p.m. E.T. and 4
a.m. E.T. on Sunday, Monday, Tuesday, Wednesday, and Thursday nights
that precede a U.S. Business Day.\12\ 24X Rules also provide for the
Trading Pause from 7 p.m. E.T. until 8 p.m. E.T. on Monday, Tuesday,
Wednesday, and Thursday nights.\13\
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\6\ See Securities Exchange Act Release No. 101777 (November 27,
2024), 89 FR 97092 (December 6, 2024).
\7\ See 24X Rule 1.5(ll) defining ``U.S. Business Day.''
\8\ See 24X Rule 1.5(l) defining the ``Core Market Session.''
\9\ See 24X Rule 1.5(z) defining the ``Pre-Market Session.''
\10\ See 24X Rule 1.5(y) defining the ``Post-Market Session.''
\11\ See 24X Rule 1.5(c) defining the ``24X Market Session.''
\12\ See 24X Rule 1.5(c).
\13\ See 24X Rule 11.15(c)(2). This Trading Pause will permit
24X to address the technical implications of a 23-hour trading day
and will facilitate industry-wide testing, internal market testing,
and systems updates and improvements.
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24X, however, will not commence operation of the 24X Market Session
until certain requirements are met. Specifically, Rule 1.5(c) requires
24X, prior to commencing operation of the 24X Market Session, to file a
proposed rule change, pursuant to Section 19(b) of the Exchange Act and
the rules thereunder, to amend its rules confirming that 24X is able to
comply with its obligations under the Exchange Act during the 24X
Market Session and that the Equity Data Plans \14\ 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 Commission and be approved,
[[Page 46979]]
or otherwise become effective pursuant to Exchange Act Section 19(b),
before 24X can offer trading during the 24X Market Session.\15\ Because
the 24X Market Session will not operate until the aforementioned
requirements of 24X Rule 1.5(c) are met, 24X will commence trading on
September 29, 2025 by operating only the Pre-Market Session, Core
Market Session, and Post-Market Session.
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\14\ The term ``Equity Data Plans'' is defined in 24X Rule
1.5(o) to mean ``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).''
\15\ See 24X Rules 1.5(c) and 11.16.
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b. Proposed Rule Change
The Exchange proposes to modify its rules to change the end time of
the Post-Market Session, change the start time of the 24X Market
Session to preserve the Trading Pause, and make other conforming
changes. Specifically, the Exchange proposes to amend Rule 1.5(y)
(Post-Market Session) so that the Post-Market Session would end at 8
p.m. E.T. instead of 7 p.m. E.T. With this proposal, the Exchange would
offer the current timing of the Post-Market Session available on other
national securities exchanges.\16\ The Exchange also proposes to
correspondingly amend Rule 1.5(c) (24X Market Session) so that the 24X
Market Session would commence, when applicable, at 9 p.m. E.T. rather
than 8 p.m. E.T., in order to preserve the Trading Pause.
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\16\ See, e.g., Nasdaq Equity 1, Section 1(a)(9).
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The proposed revised hours of the Post-Market and 24X Market
Sessions would not substantively change the operation of the Exchange
and would allow the Exchange to operate for the same number of hours
each day as contemplated in the Exchange's existing rules once the 24X
Market Session becomes operative in accordance with the requirements
described above. In addition, all NMS stocks would continue to be
eligible for trading in the proposed revised hours of the Post-Market
Session. Moreover, as discussed below, the existing safeguards
applicable to the Post-Market Session including, among other things,
operational safeguards, availability of consolidated last sale and
quotation information, specific disclosures to investors regarding the
heightened risks of after-hours trading, and market surveillance
capabilities would be applicable to the proposed revised hours of the
Post-Market and 24X Market Sessions. For the avoidance of doubt, it
should be clear that the 24X Market Session will only become effective
consistent with the requirements of Rule 1.5(c).\17\
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\17\ See supra notes 11-12.
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c. Other Conforming Changes
In addition to the foregoing rule changes, the Exchanges also
proposes to correspondingly amend: (i) Rule 11.15(c)(2) (Trading
Pauses) to move the start time of the Trading Pause from 7 p.m. E.T. to
8 p.m. E.T.; (ii) Rule 1.5(b) (24X Trading Day) to modify the
definition of the 24X Trading Day; (iii) Rule 11.1(a) and (d) (Hours of
Trading and Trading Days) to modify the trading rules that describe the
hours of operation of the Exchange; and (iv) Rule 11.6(o)(4) (Extended
Hours) and (5) (Good-`til Time) to modify the order entry rules that
describe the hours of operation of the Exchange. In each case, the
Exchange proposes these modifications to conform to the proposed
changes to the definitions of the Post-Market and 24X Market Sessions.
d. Operations
The proposed revised trading sessions will operate in the same
manner as the current sessions from an operational perspective. All
order types eligible for such sessions and order type behaviors will
remain unchanged.
e. Securities Information Processor (``SIP'') Readiness
The Exchange will submit all quotes and trades that are generated
in the proposed revised hours of the Post-Market Session to the
consolidated quote and trade systems maintained by the SIPs for public
dissemination. Accordingly, once these proposed revised trading hours
are operative, quotes and trades will be made available to the
investing public in the same manner that quotes are currently made
available.
The two SIP Plan Processors--the Securities Industry Automation
Corporation and Nasdaq--both currently operate from 4 a.m. E.T. through
8 p.m. E.T.
f. Customer Disclosures
As noted above, given the potential trading and other risks of
Extended Hours Trading, Rule 3.21 prohibits Members from accepting
orders for execution during the Pre-Market Session or Post-Market
Session without making the specified disclosures in Rule 3.21. The
Exchange notes that these customer disclosure requirements would be
fully applicable to the proposed revised trading hours of the Post-
Market Session and would place the same disclosure obligations on
Members.
g. Implementation
The Exchange will begin accepting orders for the proposed revised
trading hours of the Post-Market Session subject to the operational
effectiveness of this proposed rule change.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Exchange Act and the rules and regulations thereunder applicable to
the Exchange and, in particular, the requirements of Section 6(b) of
the Act.\18\ Specifically, the Exchange believes the proposed rule
change is consistent with the Section 6(b)(5) \19\ requirements that
the rules of an exchange be 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 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. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \20\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
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\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(5).
\20\ Id.
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The Exchange believes the proposed rule change would promote just
and equitable principles of trade, remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, protect investors and the public interest by allowing
investors to trade on the Exchange during the time that they may trade
on other national securities exchanges.\21\ As a result, the Exchange
believes the proposed rule change is not novel or unique, and it
provides investors with additional flexibility for managing their
orders. Moreover, the Exchange believes that the proposal will increase
market accessibility, promote capital formation, and facilitate
portfolio management. Additionally, the Exchange notes that its rules
require that disclosures be made to customers describing potential
risks related to trading in the proposed revised hours of the Post-
Market Session, which will continue to protect investors from any
additional risks related to trading during that period.
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\21\ Id.
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The proposed rule change further removes impediments to a free and
open market and does not unfairly discriminate among market
participants,
[[Page 46980]]
as all Members of the Exchange will be able, but not be required, to
participate during the proposed revised trading hours of the Post-
Market Session. Moreover, all Members of the Exchange may participate
in the proposed revised trading hours of the Post-Market Session in the
same manner as they would participate in the existing trading hours of
the Post-Market Session using, for example, the same connection lines,
message formats, and data feeds, that they currently use, thereby
eliminating or minimizing any preparation efforts necessary to continue
to participate. The Exchange therefore believes that the proposed rule
change is reasonably designed to provide an appropriate mechanism for
additional trading time during the Post-Market Session while providing
for appropriate Exchange oversight pursuant to the Act, trade
reporting, and surveillance.
Finally, the Exchange believes that applying the current
requirements of the Post-Market Session, including order designation,
permitted orders, and mandatory customer disclosures, as well as the
operational and regulatory safeguards already in place for the current
Post-Market Session, to the proposed revised trading hours of the Post-
Market Session, would promote just and equitable principles of trade
and protect investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
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 Exchange. As discussed above, the
proposal to modify the trading hours of the Post-Market Session is
consistent with the rules of other exchanges. As such, the proposed
rule change would promote competition by allowing the Exchange to trade
during the proposed revised trading hours of the Post-Market Session in
the same manner as another national securities exchange currently is
permitted to trade during that same time period.
In addition, the Exchange does not believe that the proposed rule
change to modify the trading hours for Post-Market Sessions will impose
any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Exchange Act, because
all Members of the Exchange will be able, but not be required, to
participate during the proposed revised trading hours of the Post-
Market Session. All Members of the Exchange may participate in the
proposed revised trading hours of the Post-Market Session in the same
manner as they would participate in the existing hours of the Post-
Market Session using, for example, the same connection lines, message
formats, and data feeds that they currently use, thereby eliminating or
minimizing any preparation efforts necessary to continue to
participate.
Moreover, the Exchange operates in a highly competitive environment
in which unaffiliated exchange competitors and new entrants could
compete to offer extended hours trading of similar duration, and the
proposal would therefore enable the Exchange to compete on a more level
playing field with these competitors.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the proposed rule change does not: (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) \22\ of the Act and Rule 19b-
4(f)(6) thereunder.\23\
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\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of its
intent to file the proposed rule change, along with a brief
description and text of the proposed rule change, at least five
business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \24\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\25\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative upon filing. The Commission finds that waiving the
30-day operative delay is consistent with the protection of investors
and the public interest. The proposed rule change aligns the Exchange's
post market session hours with those of other exchanges and will allow
24X to begin operations as a national securities exchange on September
29, 2025, as anticipated. Accordingly, the Commission hereby waives the
30-day operative delay and designates the proposed rule change as
operative upon filing.\26\
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\24\ Id.
\25\ 17 CFR 240.19b-4(f)(6)(iii).
\26\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See U.S.C. 78c(f).
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At any time within 60 days of the filing of such 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 shall institute proceedings under
Section 19(b)(2)(B) \27\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\27\ 15 U.S.C. 78s(b)(2)(B).
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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-24X-2025-07 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-24X-2025-07. 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 filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should
[[Page 46981]]
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-24X-2025-07 and should be
submitted on or before October 21, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
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\28\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-19015 Filed 9-29-25; 8:45 am]
BILLING CODE 8011-01-P