LTSE proposes to eliminate information circular requirement for UTP products
The amendment would relieve LTSE members of a separate circular before trading UTP Exchange Traded Products, effective immediately upon filing.
On September 14, 2026 the Long-Term Stock Exchange, Inc. (LTSE) filed a proposed rule change with the Securities and Exchange Commission (File No. SR-LTSE-2026-19; Release No. 34-106494). The Commission published a notice of filing on September 25, 2026 (FR Doc No. 2026-19950) and indicated that the amendment is effective immediately.
The proposal seeks to delete the current requirement in LTSE Rule 14.350(b)(1) that the Exchange distribute an information circular to Members before the commencement of trading in each UTP Exchange Traded Product. The Exchange argues that the primary listing exchange's circular already provides the same disclosures, making the duplicate circular unnecessary for investor protection.
To preserve visibility of key disclosures, the Exchange would add cross-references in the introductory paragraph of Rule 14.350(a) to Rules 3.150 (Know Your Customer), 3.160 (Fair Dealing with Customers), 3.170 (Suitability), and 3.290 (Customer Disclosures). It also proposes to amend Rule 14.350(b)(2)(B) so that Members must provide a written description of the securities in a form approved by the listing exchange, rather than by the LTSE, and to renumber the subparagraphs of Rule 14.350(b) accordingly.
The Exchange asserts that the amendment is consistent with Section 6(b)(5) of the Securities Exchange Act of 1934 and does not impose any undue competitive burden, as it merely removes a duplicative procedural step without altering trading terms or access to the market.
The full text of the proposed rule change is available on the LTSE website and at the Exchange's principal office. The Commission is soliciting comments from interested persons during the comment period.
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