SEC REQUESTS PUBLIC COMMENT ON PROPOSAL FOR 24-HOUR SECURITY EXCHANGE


On September 1, 2022, the Securities and Exchange Commission (“SEC”) called for public comments on a proposal to create a 24-hour securities exchange. Currently, no securities exchange registered with the SEC allow investors to trade between 8:00 p.m. and 4:00 a.m. Eastern time.

The proposal comes from 24X National Exchange LLC (“24X”), which filed a Form 1 application under the Securities Exchange Act of 1934 on March 25, 2022. 24X sought registration as a national securities exchange under Section 6 of the Exchange Act. The Company seeks to run the exchange out of a data center located in New York. 24X’s initial application was posted for comment in the Federal Register on June 6, 2022. In response, the SEC received three comments, including one from the NASDAQ and one from the New York Stock Exchange. Commentors requested that 24X explain how it would ensure a fair and orderly market and how the new exchange would interact with systems already in place. The commentors also stated that the request should be denied because the regulatory infrastructure necessary to support such an exchange does currently exist.

In light of those concerns, the SEC is now seeking public comment on whether 24X’s proposals are adequately designed to prevent fraud and manipulation in the market. The SEC noted that it “has not previously considered the potential issues arising from an exchange application that expands the trading hours for continuous trading as 24X proposes.”

All comments will be posted publicly, and it remains to be seen how the SEC will treat 24X’s application going forward.

The SEC’s request for comments can be found here: https://www.sec.gov/rules/other/2022/34-95651.pdf

About Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour, personal injury and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in California, Georgia and Pennsylvania.

Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, direct purchasers, consumers and employees.

To schedule a free consultation with our attorneys and to learn more about your legal rights, call our offices today at (877) 247-4292 or (212) 983-9330.

About Dylan B. Weeks

Dylan B. Weeks is an Associate in Faruqi & Faruqi, LLP's New York office. His practice is focused on securities litigation.

Tags: faruqi & faruqi, investigation, news, litigation, settlement notice, case, faruqi law, faruqi blog, faruqilaw, Dylan B. Weeks, securities litigation Dylan B. Weeks Dylan B. Weeks
Associate at Faruqi & Faruqi, LLP

New York office
Tel: (212) 983-9330
Fax: (212) 983-9331
E-mail: dweeks@faruqilaw.com
Social: LinkedIn

Finding us

Our Offices


Our offices are nationwide. If you have any questions about a case or our firm, please contact us.

New York

685 Third Avenue 26th Floor
New York, New York 10017
(212) 983-9330
(877) 247-4292
(212) 983-9331

California

1901 Avenue of the Stars Suite 1060
Los Angeles, California 90067
(424) 256-2884
(424) 256-2885

Georgia

3565 Piedmont Road NE Building Four, Suite 380
Atlanta, Georgia 30305
(404) 847-0617
(404) 506-9534

Pennsylvania

1617 JFK Boulevard, Suite 1550
Philadelphia, Pennsylvania 19103
(215) 277-5770
(215) 277-5771

Faruqi & Faruqi office in New York, New York

Faruqi & Faruqi office in Los Angeles, California

Faruqi & Faruqi office in Atlanta, Georgia

Faruqi & Faruqi office in Philadelphia, Pennsylvania