[Federal Register Volume 90, Number 234 (Tuesday, December 9, 2025)]
[Notices]
[Pages 57102-57104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-22305]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104313; File No. SR-24X-2025-15]
Self-Regulatory Organizations; 24X National Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Amend
the Transaction Fee Schedule Applicable to Members of the Exchange
December 4, 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 November 25, 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, 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.
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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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[[Page 57103]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the transaction fee schedule
applicable to Members \4\ of the Exchange pursuant to Exchange Rule
15.1(a) and (c). 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 Exchange Rule 1.5(u).
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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 proposes to amend the list of fee codes that appear in
its transaction fee schedule to more fulsomely reflect the universe of
codes that the Exchange provides in execution reports, without
modifying any of the underlying transaction fees and rebates applicable
to Members of the Exchange. Specifically, the Exchange proposes to add
fee codes to clarify that (i) added displayed volume transactions
(currently corresponding to fee code 1) will generate fee code 53 if
they improve the national best bid or national best offer
(``NBBO''),\5\ fee code 54 if they join the NBBO, and fee code 62 if
they improve the price of the security at issue; (ii) removed volume
transactions (currently corresponding to fee code 2) will generate fee
code 61 if they result in immediate removal of the midpoint of the
NBBO; and (iii) added non-displayed volume transactions (currently
corresponding to fee code 51), will generate fee code 63 if they
improve the price of the security at issue.
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\5\ See 17 CFR 242.600(b)(60).
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The Exchange notes that the 24X trading system and certain
associated services, including the provision of fee codes to Members
executing transactions on the Exchange, are provided on an outsourced
basis by MEMX Technologies LLC (``MEMX Technologies'').\6\ Upon
consultation with MEMX Technologies, the Exchange became aware that due
to a miscommunication that occurred before 24X commenced operations as
a national securities exchange, its existing transaction fee schedule
did not include all of the various fee codes Members were receiving
with respect to their transactions on the Exchange. The proposed rule
change seeks to remedy this by adding information about fee codes that
do not currently appear on the Exchange's transaction fee schedule but
which, as described above, are related to fee codes in the Exchange's
current fee schedule. The proposed rule change will have no commercial
impact on Members or the securities market given that the Exchange is
not proposing to modify the fees and rebates applicable to transactions
that Members execute on the Exchange, but rather is seeking only to
codify in its fee schedule the entire universe of transaction fee codes
that Members are already receiving on execution reports from the
Exchange.
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\6\ The Exchange and MEMX Technologies executed a Development,
License and Services Agreement on December 9, 2024, with
accompanying Schedules (collectively, the ``DLSA''). MEMX
Technologies, an affiliate of the MEMX Exchange, is in the business
of developing technology systems for use in the financial industry.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act \7\ in general, and with
Sections 6(b)(4) and 6(b)(5) of the Act \8\ in particular, because it
provides for the equitable allocation of reasonable dues, fees, and
other charges among its Members and other persons using its facilities;
it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in 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; and it is not
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\7\ 15 U.S.C. 78f.
\8\ 15 U.S.C. 78f(b)(4) and (b)(5).
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The Exchange believes that the proposed rule change furthers the
objectives of the Act by providing a more complete description of the
fee codes that Members of the Exchange are receiving in connection with
the transactions they execute on the Exchange.
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 Act. The proposed rule change is
not intended to address competitive issues but rather is intended
solely to clarify that certain transactions executed on the Exchange
generate different fee codes depending on their characteristics.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \9\ of the Act and subparagraph (f)(2) of Rule 19b-4
thereunder,\10\ because it establishes a due, fee, or other charge
imposed by the Exchange. 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 shall
institute proceedings under Section 19(b)(2)(B) \11\ of the Act to
determine whether the proposed rule change should be approved or
disapproved.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(2).
\11\ 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
[[Page 57104]]
Send an email to [email protected]. Please include
file number SR-24X-2025-15 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-2025-15. 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 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-2025-15 and should be submitted on
or before December 30, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-22305 Filed 12-8-25; 8:45 am]
BILLING CODE 8011-01-P