24X Exchange amends warrant incentive program, adds new equity tranche

On October 1 2026, 24X National Exchange LLC filed a proposed rule change (Release No. 34-106663; File No. SR-24X-2026-26) with the SEC to amend its warrant performance incentive program. The Commission published the filing in the Federal Register (Vol. 91, No. 200, FR Doc No. 2026-21244) and set a comment period for interested parties.

The program allows Exchange members and sponsored participants who prepay a $500,000 fee to receive warrants that vest on the basis of meeting a target trading volume and the Exchange's overall market-share threshold. The original equity component consists of 1,098,040 non-voting common units, representing 10 % of 24X US Holdco's fully diluted outstanding units as of September 29 2025, allocated across nine measurement periods through December 31 2027.

The amendment introduces an "Additional Equity" tranche of 2,759,103 non-voting common units, or 22.25 % of the same fully diluted base. These units become purchasable beginning in the first 2027 measurement period and extend through two additional periods in 2028. The amendment also reduces the required prepayment fee for this tranche and changes the vesting metric from total trading volume to maker-only volume.

Two further changes affect both the original and additional equity. The Exchange proposes to eliminate the 0.50 % (Year 2) and 1.00 % (Year 3) overall market-share thresholds and to exclude certain dates from the target-volume calculation. All other program terms remain as described in the prior Warrant Program Releases. The rule change is slated for implementation on October 1 2026 and will not apply retroactively.

Comments on the proposed rule change must be submitted in accordance with the procedures outlined on the Exchange's website at https://equities.24exchange.com/regulation or at the Exchange's principal office.