LTSE expands fee collection options with immediate rule change

On September 21, 2026, the Long-Term Stock Exchange, Inc. filed a proposed rule change with the Securities and Exchange Commission under Section 19(b)(1) of the Securities Exchange Act of 1934. The filing, identified as Release No. 34-106558, File No. SR-LTSE-2026-20, and published in the Federal Register on September 30, 2026 (Vol. 91, No. 191, pp. 63352-63354, FR Doc No. 2026-20305), is effective immediately.

The amendment targets Rule 15.120(a), which presently requires each Member and each applicant for registration to provide a National Securities Clearing Corporation (NSCC) clearing account number for direct debit of undisputed or final fees, fines, charges, and other monetary sanctions. The proposed language would allow the Exchange to waive the NSCC account requirement and instead accept alternative payment instructions that the Exchange approves, while reserving the right to reinstate the NSCC requirement after repeated collection failures.

The Exchange states that the purpose of the change is to alleviate operational burdens for Members or applicants who find the NSCC clearing account process difficult, while maintaining a direct debit capability. It cites consistency with Section 6(b) of the Act and the specific objectives of Section 6(b)(5), emphasizing the need to promote equitable trade practices, protect investors, and ensure the Exchange can enforce its fee collection rules.

The proposed language mirrors provisions in rules of other national securities exchanges, including MEMX LLC and several MIAX entities. The Commission is soliciting comments on the proposal from interested persons, and the full text of the amendment is available on the LTSE website and at the Exchange's principal office.