October 11, 2024 - In a letter filed with the Securities and Exchange Commission (SEC) today, the FIA Principal Traders Group (FIA PTG) commented again on the application of 24X National Exchange LLC for registration as a national securities exchange. FIA PTG reiterated the significant implications for the regulatory, technological, and operational underpinnings of the equity securities markets, not to mention the associated costs, all of which must be carefully considered before approval of the application.
In addition, FIA PTG raised specific concerns with 24X Exchange's liability caps for “any loss, damages, claim or expense” arising out of any use of the exchange. While the proposed 24X liability caps appear consistent with other securities exchanges, FIA PTG said that an even greater level of scrutiny regarding the proposed 24X limitation of liability is warranted due to the additional operational risks associated with operating a near 24x7 market center.
FIA PTG again encouraged the SEC to confer with the industry through roundtables and other open forums and to withhold making any decision on the Application until such broader market engagement has taken place.
Read the full letter here.
