LTSE proposes market-maker rule overhaul with immediate effect

On September 21, 2026 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 and Rule 19b-4. The Commission published a notice on September 29, 2026 (Federal Register Volume 91, No. 190, pages 62767-62773; FR Doc No. 2026-20200; Release No. 34-106529; File No. SR-LTSE-2026-21) to solicit comments.

The proposal adds definitions for "Market Maker" and "Market Maker Authorized Trader" to Rule 1.160, restates Rule 11.150 to create a comprehensive registration framework, amends Rule 11.151 to modify market-maker obligations and provide exceptions to the existing two-sided quote obligation, adopts a new Rule 11.152 governing obligations of Market Maker Authorized Traders, adopts a new Rule 11.153 for registration of market makers in securities, and replaces the current Rule 11.153 with a new Rule 11.153(b) covering voluntary termination of registration.

Under the revised Rule 11.150, an applicant must file a written application on a prescribed form, satisfy a minimum net-capital requirement consistent with Rule 15c3-1, and receive Exchange approval before the registration becomes effective. The Exchange may suspend or terminate a market-maker's registration for substantial or continual failure to comply with Rule 11.151, failure to meet the net-capital condition, failure to maintain fair and orderly markets, or failure to have at least one qualified Market Maker Authorized Trader.

The changes are intended to enable the Exchange to initiate, operate, and monitor market-making activity in non-LTSE-primary-listed securities, aligning LTSE's market-maker framework with rules of other national securities exchanges. The full text of the proposed rule change is available on the Exchange's website and at its principal office.