Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt the Initial Fees and Rebates Applicable to Members of the Exchange

<NOTICE> SECURITIES AND EXCHANGE COMMISSION <DEPDOC>[Release No. 34-103873; File No. SR-24X-2025-02]</DEPDOC> <SUBJECT>Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt the Initial Fees and Rebates Applicable to Members of the Exchange</SUBJECT> <DATE>September 5, 2025.</DATE> Pursuant to Section 19(b)(1)  <SU>1</SU> <FTREF/> of the Securities Exchange Act of 1934 (“Act”)  <SU>2</SU> <FTREF/> and Rule 19b-4 thereunder, <SU>3</SU> <FTREF/> notice is hereby given that, on August 27, 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. <FTNT> <SU>1</SU>  15 U.S.C. 78s(b)(1). </FTNT> <FTNT> <SU>2</SU>  15 U.S.C. 78a. </FTNT> <FTNT> <SU>3</SU>  17 CFR 240.19b-4. </FTNT> <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD> The Exchange proposes to adopt the initial fees and rebates applicable to Members  <SU>4</SU> <FTREF/> of the Exchange pursuant to Exchange Rule 15.1(a) and (c). The proposed rule change is available on the Exchange's website at <E T="03">https://equities.24exchange.com/regulation</E> and at the principal office of the Exchange. <FTNT> <SU>4</SU>   <E T="03">See</E> Exchange Rule 1.5(u). </FTNT> <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD> 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. <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change</HD> <HD SOURCE="HD3">1. Purpose</HD> The Exchange proposes to implement a fee schedule (the “Fee Schedule”) applicable to use of the Exchange. The Exchange will commence operations as a national securities exchange on September 29, 2025, and will implement the Fee Schedule as of that date. The Exchange first notes that upon commencement of operations as a national securities exchange, it will operate in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or incentives to be insufficient. More specifically, the Exchange will be only one of several equities venues to which market participants may direct their order flow. Based on publicly available information, no single registered equities exchange currently has more than approximately 13% of total market share. <SU>5</SU> <FTREF/> Thus, in such a diffuse and highly competitive market, no single equities exchange possesses significant pricing power in the execution of order flow, and as it commences operations the Exchange anticipates representing a small percentage of the overall market. <FTNT> <SU>5</SU>  Market share percentage calculated as of July 15, 2025; <E T="03">see</E> Cboe Global Markets, U.S. Equities Market Volume Summary, available at: <E T="03">https://www.cboe.com/us/equities/market_share/.</E> </FTNT> <HD SOURCE="HD3">Transaction Fees</HD> Below is a description of the fees and rebates that the Exchange intends to impose under the initial proposed Fee Schedule, which will be applicable to transactions executed in all trading sessions. Under the proposed Fee Schedule, the Exchange will operate a “Maker-Taker” model whereby it provides rebates to Members that provide liquidity and charges fees to those that remove liquidity, as further described below. The Exchange does not initially propose to charge different fees or provide different rebates depending on the number of orders submitted to, or transactions executed on or through, the Exchange. Accordingly, all fees and rebates described below are applicable to all Members, regardless of the overall volume of a Member's trading activities on the Exchange. <HD SOURCE="HD3">(1) Standard Fee for Removed Volume</HD> The Exchange proposes to charge a standard fee of $0.00295 per share for executions of orders that remove liquidity from the 24X Book  <SU>6</SU> <FTREF/> (“Removed Volume”) in all securities traded on the Exchange priced at or above $1.00 per share. <FTNT> <SU>6</SU>  “24X Book” refers to the Exchange system's electronic file of orders. <E T="03">See</E> Exchange Rule 1.5(a). </FTNT> <HD SOURCE="HD3">(2) Standard Rebate for Added Displayed Volume</HD> The Exchange proposes to provide a standard rebate of $0.00295 per share in all securities traded on the Exchange priced at or above $1.00 per share and 0.075% of total dollar value for all securities traded on the Exchange priced below $1.00 per share for executions of orders that: (i) are displayed on the 24X Book and (ii) add liquidity to the Exchange (“Added Displayed Volume”). <SU>7</SU> <FTREF/> The proposed standard rebate for Added Displayed Volume would apply to the Reserve Quantity  <SU>8</SU> <FTREF/> of an order such that any replenishment amount of the Reserve Quantity of an order that is executed against would be treated as Added Displayed Volume even though such portion of the order was not displayed on the 24X Book prior to the order being replenished in accordance with the Member's instructions and the Exchange's rules. The entire portion of the Reserve Quantity of an order would be eligible for this rebate, but a Member would only receive such rebate for any portions of the Reserve Quantity that are executed against. <FTNT> <SU>7</SU>  Such executions will be indicated by a fee code of “1” in execution reports provided by the Exchange. </FTNT> <FTNT> <SU>8</SU>  “Reserve Quantity” refers to the portion of an order that includes a Non-Displayed instruction in which a portion of that order is also displayed on the 24X Book. <E T="03">See</E> Exchange Rule 11.6(k). </FTNT> <HD SOURCE="HD3">(3) Standard Rebate for Added Non-Displayed Volume</HD> The Exchange proposes to provide a standard rebate of $0.0025 per share for executions of orders that: (i) are not displayed on the 24X Book and (ii) add liquidity to the Exchange (“Added Non-Displayed Volume”), in all securities traded on the Exchange priced at or above $1.00 per share that do not include a Midpoint Peg instruction. <SU>9</SU> <FTREF/> The proposed Fee Schedule will provide a standard rebate of $0.00295 per share for Added Non-Displayed Volume that includes a Midpoint Peg instruction. <SU>10</SU> <FTREF/> <FTNT> <SU>9</SU>  This pricing is referred to on the proposed Fee Schedule as “Added non-displayed volume” and indicated by fee code “51” in execution reports provided by the Exchange. </FTNT> <FTNT> <SU>10</SU>  This pricing is referred to on the proposed Fee Schedule as “Added Midpoint” and indicated by fee code “52” in execution reports provided by the Exchange. </FTNT> The Exchange proposes to provide a higher rebate for executions of Added Displayed Volume than for executions of Added Non-Displayed Volume to incentivize displayed liquidity over non-displayed liquidity on the Exchange, including orders with a displayed component and a non-displayed component ( <E T="03">i.e.,</E> orders with a Reserve Quantity), in order to encourage and facilitate price discovery and price formation, which the Exchange believes benefits all Members and investors. The Exchange additionally proposes to provide a higher rebate for executions of orders that include a Midpoint Peg instruction in order to encourage Members to submit liquidity-providing orders designed to execute at the midpoint to the Exchange, which the Exchange believes will deepen liquidity and increase execution opportunities at the midpoint on the Exchange, thereby improving the Exchange's market quality to the benefit of all Members and enhancing its attractiveness as a trading venue. <HD SOURCE="HD3">(4) Standard Fee for Routed Removed Volume</HD> The Exchange proposes to charge a standard fee of $0.0030 per share for all orders routed to another market that (i) are executed on an away market and (ii) remove liquidity from the market to which it was routed (“Routed Removed Volume”), in all securities traded on the Exchange priced at or above $1.00 per share. <SU>11</SU> <FTREF/> All charges by the Exchange for routing are applicable only in the event that an order is executed; there is no charge for orders that are routed away from the Exchange but are not filled. The Exchange notes that the fees for routing relate to orders routed through the Exchange's third-party broker-dealers. Routing services offered by the Exchange are completely optional and market participants can readily select between various providers of routing services, including other exchanges and broker-dealers. <FTNT> <SU>11</SU>  This pricing is referred to on the proposed Fee Schedule as “Routed removed volume” and indicated by fee code “3” in execution reports provided by the Exchange. </FTNT> <HD SOURCE="HD3">(5) Securities Priced Below $1.00 per Share</HD> The Exchange proposes to charge a standard fee of 0.28% of the total dollar value of any transaction in securities priced below $1.00 per share (“Sub-Dollar Securities”) that removes liquidity from ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 31k characters. 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