SEC Division of Trading and Markets no-action letter: 24X National Exchange LLC

April 30, 2026
David Sassoon
General Counsel
24X National Exchange LLC
1 Landmark Square, Suite 1815
Stamford, CT 06901
Dear Mr. Sassoon:
Based on the facts and circumstances set forth in your letter dated April 29, 2026 (“Letter”),1 the staff of the Division of Trading and Markets (“Division”) will not recommend enforcement action to the Securities and Exchange Commission (“Commission”) under paragraph (a) of Rule 10b-10 under the Securities Exchange Act of 1934 (“Exchange Act”) if a Member confirms its capacity as “agent” when the Member, in its role as the customer’s agent, submits a customer’s order to the 24X National Exchange LLC (“24X” or the “Exchange”) and the order is executed on 24X in a trade with an anonymous contra-party that turns out to be the Member trading in a principal (including proprietary) capacity, provided that: (1) the Member complies with all other requirements of Rule l0b-10 in confirming the customer’s order, including paragraph (a)(2)(i) thereof,2 and (2) the handling and execution of the customer order complies with the No Knowledge Requirement and the Parity Requirement.3 Further, based on the facts and circumstances set forth in your Letter, the Division staff will not recommend enforcement action to the Commission if a Member does not make, keep current, and preserve a record of the identity of the contra-party of an anonymous trade executed on the Exchange as part of the records required to be made 1 Unless otherwise noted, each defined term in this letter has the same meaning as defined, directly or by reference, in your Letter. 2 See Order Granting Application of 24X National Exchange LLC for a Limited Exemption from Exchange Act Rule 10b-10(a)(2)(i)(A) pursuant to Rule 10b-10(f), Release No. 34-105340 (April 30, 2026) (granting a limited exemption to 24X from the requirements of Rule 10b-10(a)(2)(i)(A) of the Exchange Act, to the extent that Members execute trades for their customers on the Exchange using the 24X Trading System). 3 This Division staff position applies only to trades that Members execute on the Exchange’s Trading System. This Division staff position does not apply to orders routed to an away trading center for execution.

and kept current under Rule 17a-3(a)(1) and to be preserved under Rule 17a-4, provided that the Exchange makes and keeps current a record of the identities of the parties to each anonymous trade executed on the Exchange in the manner described in Rule 17a-3 and preserves those records for the period specified in Rule 17a-4.4

The position of the Division staff is based strictly on the facts and circumstances discussed in the Letter. Any different facts or circumstances from those set forth in the Letter might require a different response.5 Furthermore, this response expresses the Division staff's position on enforcement action only and does not purport to express any legal conclusions on the questions presented. The Division staff expresses no view with respect to any other questions that the proposed activities may raise, including the applicability of any other federal or state laws, or self-regulatory organization rules. This position is applicable as of the date of this letter and is subject to modification or revocation by the Division staff at any time.

Sincerely,
Emily Westerberg Russell
Chief Counsel
Division of Trading and Markets
4
The Division staff notes, however, that this relief does not extend to trades on the Exchange if the Member knows the identity of the contra-party. 5 In this regard, we note your representation that the Exchange’s rules do not provide for any special order type that would be an exception to the strict price-time priority execution of orders as set forth in 24X Rule 11.8.

1 Landmark Square, Suite 1815
Stamford, CT 06901
Chief Counsel
Division of Trading and Markets
Securities and Exchange Commission
100 F Street, N.E.
Washington, DC 20549
Re: Request for a Limited Exemption from Paragraph (a)(2)(i)(A) of Rule 10b￾10 Under the Securities Exchange Act of 1934 (the “Exchange Act”) and Request for No-Action Relief from Rules 10b-10(a)(2), 17a-3(a) and 17a￾4(a) Under the Exchange Act Dear Ms. Russell:
24X National Exchange LLC (“24X” or the “Exchange”) respectfully requests on behalf of members of the Exchange (“Members”) that execute trades on the Exchange for their customers a limited exemption from the requirement in paragraph (a)(2)(i)(A) of Rule 10b-101 under the Exchange Act to disclose to their customers the name of the person from whom a security was purchased, or to whom it was sold, or the fact that such information will be provided upon the customer’s written request. The Exchange operates a fully automated electronic book (“order book”) for orders to buy and sell securities (“orders”) with a continuous, automated matching function which provides for strict price-time priority execution (“Trading System”).2 The order book and rules also provide for post trade anonymity through settlement for trades executed through 24X. 3 24X also requests, on behalf of its Members, your assurance that the staff of the Division of Trading and Markets (“Staff”) will not recommend that the Commission take any enforcement 1 Paragraph (f) of Rule 10b-10 under the Exchange Act provides the Securities and Exchange Commission (“SEC” or “Commission”) authority to issue exemptions from the requirements contained in paragraphs (a) and (b) of Rule 10b-10. 2 See 24X Rule 11.8. The Exchange rules do not provide for any special order type that would be an exception to the strict price-time priority handling of orders set forth in 24X Rule 11.8. 3 As explained herein, the Exchange does not request an exemption for when it reveals the identity of a Member or a Member’s clearing firm: (1) for regulatory purposes or to comply with an order of a court or arbitrator; or (2) when a registered clearing agency ceases to act for a Member or the Member’s clearing firm and determines not to guarantee the settlement of the Member’s trades. See 24X Rule 11.12(f).

action under paragraph (a) of Rule l0b-10 under the Exchange Act in connection with the activities of Members executing orders for their customers in the circumstances described below. Specifically, 24X requests this relief to permit a Member to indicate on a customer confirmation that the Member acted as agent (where the Member submits a customer’s order on 24X in the Member’s role as the customer’s agent (hereinafter “Customer Order”)) and the order is executed in a trade with an anonymous contra-party that turns out to be the Member or one of its affiliates trading in a principal (including proprietary) capacity (hereinafter “Principal Order”), so long as the conditions set out below are met and the Member otherwise complies with all other requirements of Rule l0b-10 in confirming the customer’s order, including paragraph (a)(2)(i) thereof. This request for no-action relief is limited, however, to those situations in which the following requirements are met: (1) the representatives of the Member or its affiliates submitting Principal Orders do not have knowledge about Customer Orders submitted by the Member and the Member representatives submitting Customer Orders do not have knowledge about Principal Orders submitted by the Member or its affiliates (the “No Knowledge Requirement”); and (2) the Member does not determine or influence the selection of the contra-party(ies) against which such Customer Orders will be executed (the “Parity Requirement”). Finally, 24X requests certain no-action relief from the requirements of Rules 17a-3(a)(1) and 17a-4(a) under the Exchange Act, as described below. A. Background – 24X 24X is a registered national securities exchange under Section 6 of the Exchange Act.4 Members of the Exchange (“Members”) consist of those broker-dealers admitted to membership and entitled to enter orders in, and receive executions through, the Exchange’s order book or otherwise. The Exchange operates an order book for orders with a continuous, automated matching function, in compliance with the Exchange’s rules and Regulation NMS under the Exchange Act (“Reg NMS”). Liquidity is derived from orders to buy and orders to sell submitted to the Exchange electronically by its Members from remote locations. The order book and the Exchange’s rules provide for strict price-time priority execution. Under 24X Rule 11.8, orders are prioritized on a strict price-time basis, first by price and then by time. Incoming orders are first matched for execution against orders in the 24X order book. Orders that cannot be executed are eligible for routing to away trading centers, if consistent with the terms of 4 24X received approval of its application for registration as a national securities exchange on November 27,
2024. See Exchange Act Release No. 101777; File No. 10-242 (December 6, 2024). Exchange rules cited herein
were approved as part of the application.

the orders.5 All trades are executed through the Exchange’s Trading System on an anonymous basis. The transaction reports produced by the Trading System indicate the details of transactions executed in the Trading System but shall not reveal contra party identities. Transactions executed in the Trading System are also cleared and settled anonymously.6 The order book’s matching system algorithm permits orders originated by a 24X Member to execute against other orders from the same participant on the same basis as orders from other Members. In the order book’s handling of displayed orders, which is based on strict price-time priority, a Member could receive an execution against itself, and under the Exchange’s rules, the Member would not know that it was the contra-side of the trade at the time of execution. 24X does permit a Member to prevent its incoming orders from being executed against its own trading interest. Specifically, Members have the ability to use self trade prevention (“STP Modifier”). Once set, the Trading System does not execute the order against the Member’s trading interest submitted under the same unique identifier.7 For example, if Member 1, a Member of the Exchange, submits an order to sell with the STP Modifier, the Trading System determines whether Member 1 has a bid for the security under the same unique identifier that would match with the order to sell. If Member 1’s bid would execute against Member 1’s incoming order to sell, the Trading System, in accordance with Member 1’s instructions, cancels or adjusts either or both of the orders.8 B. Rule 10b-10

1. Contra-Party Identity Requirement
   Rule l0b-10, among other things, requires a broker-dealer to disclose to its customers the identity of the party the broker-dealer sold to or bought from to fill the customer’s order. Specifically, under paragraph (i)(A) of Rule l0b-10(a)(2), when a broker-dealer is acting as agent for a customer, some other person, or for both the customer and some other person, the broker-dealer must disclose “[t]he name of the person from whom the security was purchased, or to whom it was sold, for such customer or the fact that the information will be furnished upon written request of such customer” (the “Contra-Party Identity Requirement”). A broker-dealer can provide this information on the confirmation, or it has the option to provide the information to a customer at a later time after receiving a written request from the customer. A broker-dealer has 5 See 24X Rule 11.10. The Exchange understands that the exemptive and no-action relief would not apply to any situation in which the Trading System routes an order to an away trading center for execution, as such executions would be governed by the rules of the away trading center. 6 Except for the conditions set forth in 24X Rule 11.12(f). See supra n. 3. 7 See 24X Rule 11.9(d). 8 Members use the STP Modifier for compliance and business reasons. For example, using the STP Modifier prevents order flow from appearing as a wash sale on an exchange or a broker/dealer’s compliance reports.

this option as long as it discloses on the confirmation that the contra-party information is available upon written request. Trades are executed with total anonymity at 24X, where the identity of the actual contra-party is not revealed when the trade is executed. 9 Therefore, Members do not know the identity of the party to whom they sold securities or from whom they purchased securities. Without this information, Members cannot comply with the Contra-Party Identity Requirement. To permit 24X Members to utilize the Exchange without violating Rule l0b-10, the Exchange is seeking an exemption, on behalf of such Members, from the Contra-Party Identity Requirement when Members execute transactions at 24X. The Contra-Party Identity Requirement, in conjunction with the other requirements of paragraph (a)(2) of Rule l0b-10, is designed to provide customers with information that could alert them to potential conflicts of interest their broker-dealer may have had when handling their orders. 10 The Exchange believes an exemption from the Contra-Party Identity Requirement when a Member trades through 24X would not diminish the public policy and investor protection objectives of the Contra-Party Identity Requirement of Rule l0b-10. The Exchange believes the potential for a conflict of interest is less likely in those circumstances when a Member trades through 24X because the trades are executed at the best price available on the Exchange and the contra-party is determined based upon multiple factors not controlled by the Member. In such situations, Members are not permitted the discretion in executing the order that would normally give rise to the opportunity for a conflict of interest.
2. Identification as Agent on Confirmation
The Exchange requests no-action relief, on behalf of its Members, to permit Members to indicate on a customer confirmation that the Member has acted as agent where the Member submits a customer’s order through the electronic trading facilities of 24X, in the Member’s role as the customer’s agent, and the order is executed in a trade with an anonymous contra-party that turns out to be the Member or one of its affiliates trading in a principal (including proprietary) capacity. a. No Knowledge Requirement This request is limited to those circumstances in which the representatives of a Member and its 9 Except for the conditions set forth in 24X Rule 11.12(f). See supra n. 3. 10 Paragraph (a)(2) of Rule l0b-10 requires a broker-dealer to disclose on a confirmation to a customer the capacity in which the broker-dealer handled the customer’s order (i.e., as agent or principal), and whether the broker-dealer acted as agent for some other person, or as agent for both the customer and some other person. Paragraph (i)(D) of Rule l0b-10(a)(2) requires a broker-dealer to disclose to its customer the source and amount of remuneration received, or to be received, by the broker-dealer in connection with the trade.

affiliates submitting Principal Orders do not have knowledge about Customer Orders submitted by the Member, and the Member representatives submitting Customer Orders have no knowledge about Principal Orders submitted by the Member or its affiliates. A Member is able to satisfy the No Knowledge Requirement if it implements and utilizes an effective system of internal controls such as appropriate information barriers, that operate to prevent the representatives of the Member or its affiliates submitting Principal Orders from obtaining knowledge about the Customer Orders submitted by the Member, and the representative of the Members submitting Customer Orders from obtaining knowledge about the Principal Orders submitted by the Member or its affiliates. To be effective, such a system of internal controls must include specific policies and procedures that prevent each Principal Order submitter separated by the information barriers from obtaining knowledge regarding Customer Orders submitted by the Member, and each Customer Order submitter separated by the information barriers from obtaining knowledge regarding Principal Orders submitted by the Member or its affiliates. b. Parity Requirement In addition to the No Knowledge Requirement, this request is limited to those situations in which the Member does not in any way determine or influence the selection of the trading interest against which a customer order will be executed.11 As stated, 24X’s order book does not support functionality that would allow a broker-dealer to select or influence against whom its orders are executed.12 Where the Customer Order and the Principal Order are executed against each other by the order book, a Member indicating in the confirmation that the firm acted as agent does not increase the risk of fraud against the customer, where the No Knowledge Requirement and the Parity Requirement are met. To the contrary, the matching of the agency and the proprietary trading interests occurs at the best price available and the contra-side is determined based upon priority 11 The SEC has issued no-action relief for Rule l0b-10 under these circumstances. See Letter from Joanne Rutkowski, Assistant Chief Counsel, Division of Trading and Markets, to Anders Franzen, General Counsel, MEMX LLC (September 18, 2020); Letter from Paula Jenson, Deputy Chief Counsel, Division of Trading and Markets, to Claudia Crowley, CRO, IEX Group, Inc. (July 26, 2016); Letter from Paula Jenson, Deputy Chief Counsel, Division of Trading and Markets, to Eric W. Hess, General Counsel and Secretary, EDGA Exchange, Inc. and EDGX Exchange, Inc. (May 26, 2010); Letter from James L. Eastman, Associate Director and Chief Counsel, Division of Trading and Markets, to Eric Swanson, SVP, General Counsel, BATS Exchange, Inc. (February 25, 2010); Letter from Brian A. Bussey, Assistant Chief Counsel, Division of Trading and Markets, to J. Craig Long, Foley & Lardner LLP (October 23, 2008); Letter from Brian A. Bussey,
Assistant Chief Counsel, Division of Market Regulation, to James C. Yong, Chief Regulatory Officer, National Stock Exchange (October 13, 2006); Letter from Brian A. Bussey, Assistant Chief Counsel, Division of Market Regulation, to Edward S. Knight, Executive Vice President and General Counsel, Nasdaq (January 26, 2005); and Letter from Brian A. Bussey, Assistant Chief Counsel, Division of Market Regulation, to Aleksandra Radakovic, Vice President, J.P. Morgan Securities Inc. (August 4, 2005). 12 If such functionality were to be offered in the future, 24X understands that the relief requested by this letter would not apply to this functionality.

factors established by the rules of the Exchange.13 Moreover, the proposed action does not diminish investor protection because it does not relieve a Member’s duty of best execution.14
C. Books and Records Retention
Rule 17a-3(a)(1) under the Exchange Act requires that broker-dealers make and keep current records of all purchases and sales of securities, including “the name or other designation of the person from whom purchased or received or to whom sold or delivered.” Rule 17a-4(a) under the Exchange Act requires that the records be preserved for six (6) years, the first two (2) years “in an easily accessible place.” The Exchange asks that the Commission staff not recommend enforcement action to the Commission if, in lieu of making and preserving a separate record, a broker-dealer relies on the Exchange’s records of the identities of Members that execute anonymous trades through 24X in a manner consistent with the requirements of Rule 17a-3(a)(1) and for the period prescribed in Rule 17a-4 under the Exchange Act.15 A broker-dealer would retain the responsibility to make, keep current and preserve records of all purchase and sales of securities in accordance with Rules 17a-3 and 17a-4 under the Exchange Act for trades through 24X if the broker-dealer knows of the contra-party, including those instances where 24X discloses the contra-party to a trade.

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In view of the foregoing, the Exchange respectfully requests that the Commission issue an exemption and such other relief as reflected in this letter. If you have any questions, please contact me at (917) 796-3315 or david@24exchange.com. Sincerely, /s/ David Sassoon David Sassoon General Counsel 24X National Exchange LLC 13 The Exchange expects that same firm volume, i.e., an execution in which a firm’s agency order is matched against the same firm’s principal (including proprietary) trading interest, as a percentage of total volume in a security through the Trading System will not be material for either high or low trading volume securities. The Exchange represents that one year after the Trading System became fully operational, the Exchange will review trade data to determine the actual percentage of same firm volume versus total volume in high and low volume securities to confirm that this number is not material. The Exchange will create and maintain a record of the determination. 14 See Regulation NMS, Exchange Act Release No. 49325 (Feb. 26, 2004), 69 Fed. Reg. 11126, 11137 (March 9, 2004) (“A broker-dealer still must seek the most advantageous terms reasonably available under the circumstances for all customer orders. A broker-dealer must carry out a regular and rigorous review of the quality of the market centers to evaluate its best execution policies, including the determination as to which markets it routes customer order flow.”) 15 The Exchange acknowledges that it will retain records in accordance with 17 CFR 240.17a-1.