Document ID: SEC-2022-1449-0001
Agency: sec
Document Type: Notice
Title: Application: 24X National Exchange, LLC
Posted Date: 2022-11-09T05:00Z

[Federal Register Volume 87, Number 216 (Wednesday, November 9, 2022)]
[Notices]
[Pages 67725-67726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24380]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96218; File No. 10-239]

24X National Exchange LLC; Notice of Filing of Amendment No. 1 to 
an Application for Registration as a National Securities Exchange Under 
Section 6 of the Securities Exchange Act of 1934

November 3, 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 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

[[Page 67726]]

Application (``Amendment No. 1'').\8\ 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.
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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.
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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.\9\ 24X would not maintain a physical trading 
floor.\10\ 24X proposes to allow trading in NMS stocks 24 hours a day, 
7 days per week, 365 days a year.\11\ 24X has proposed specific rules 
to govern trading during regular trading hours \12\ as well as trading 
outside of regular trading hours.\13\
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    \9\ See Exhibit E, as amended by 24X's Amendment No. 1, at 1, 4.
    \10\ Id. at 1.
    \11\ See proposed 24X Rule 11.1 (describing the hours of trading 
and trading days for 24X).
    \12\ 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''.
    \13\ 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. 1 to 24X's Initial Form 1 Application

    In Amendment No. 1, 24X proposed several changes to its trading 
system and corporate governance, and provided additional financial 
statements. Among other things, Amendment No. 1 revised the corporate 
documents of 24X and its direct holding company; \14\ amended 24X's 
proposed rules and User Manual; \15\ filed additional financial 
statements for 24X's immediate holding company; \16\ and provided 
additional information about the finances for 24X.\17\
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    \14\ See Exhibits A and C, as amended by 24X's Amendment No. 1.
    \15\ See Exhibits B and E, as amended by 24's Amendment No. 1. 
For example, 24X has proposed to delete its proposal to trade 
fractional shares and to have a mirrored platform in London, as 
proposed in 24X's Initial Form 1 Application.
    \16\ See Exhibit D, as amended by 24'x Amendment No. 1.
    \17\ See Exhibit I, as amended by 24X's Amendment No. 1.
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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. 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, 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 November 30, 
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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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-24380 Filed 11-8-22; 8:45 am]
BILLING CODE 8011-01-P