24X National Exchange Expands Warrant Program to Boost…

Event summary

24X National Exchange filed a proposed rule change with the SEC to expand its warrant performance incentive program, increasing equity available to participants by 22.25% of 24X US Holdings LLC.
The program's duration has been extended through June 2028, with new quarterly measurement periods added in 2028.
Entry cost for member firms seeking only the newly added equity has been lowered to $250,000 from $500,000.
Vesting conditions have been simplified, removing the Exchange market share threshold requirement and tying vesting solely to members' trading volume.
The changes are set to take effect on October 1, 2026, ahead of the Exchange's planned launch of 23-hour weekday trading on December 6, 2026.

The big picture

24X National Exchange is doubling down on its strategy of around-the-clock equity trading by expanding its warrant program to incentivize liquidity providers. This move comes as the Exchange prepares to launch its 23-hour weekday trading model, aiming to capture a share of the extended-hours trading market. The shift towards performance-based vesting reflects a broader industry trend of aligning participant incentives with exchange growth and liquidity provision.

What we're watching

Liquidity Dynamics: How the expanded warrant program will affect trading volume and liquidity during extended hours, particularly as 24X launches its 23/5 operations.
Participant Incentives: Whether the simplified vesting conditions and lower entry costs will attract more broker-dealers to participate in the Exchange.
Regulatory Approval: The pace at which the SEC will review and approve the proposed rule change, given the Exchange's novel 23-hour trading model.