24X Exchange Adopts Negative Net Capture Pricing to Undercut Competitors
Securities and Exchange Commission
24X National Exchange LLC is executing an aggressive pricing strategy to capture market share in the trading of equities priced below $1.00 per share.
Effective May 1, 2026, the exchange is actively slashing transaction fees for executions of non-retail and retail orders that remove liquidity from the 24X Book in these Sub-Dollar Securities.
The fee drops significantly from 0.15% to 0.09% of the total dollar value for both categories of removed volume.
This flat rate applies uniformly across the board, entirely bypassing tiered pricing models that base fees on the overall volume of a member's trading activities.
Market participants face a June 1, 2026 deadline to submit comments on the rule change.
The structural intent of this fee reduction targets the inherent inefficiencies of the sub-dollar market.
Sub-Dollar Securities are consistently plagued by lower market depth and wider bid-ask differentials.
By heavily discounting the cost to remove liquidity, 24X aims to incentivize market participants to submit aggressively priced displayed liquidity.
The influx of liquidity-providing orders is designed to force narrower spreads, drive competitive price discovery, and establish the exchange as the primary venue for low-priced equity order flow.
To fund this market capture, 24X is deliberately operating at a loss.
The exchange has structured its fee schedule to trigger a negative net capture on Sub-Dollar Securities. 24X will pay out higher rebates for non-retail and retail transactions that add displayed liquidity than the 0.09% fee it collects for removing that same volume.
This loss-leader pricing model is a direct competitive assault on legacy venues.
The 0.09% extraction fee intentionally undercuts the 0.20% charged by MIAX Pearl, the 0.15% charged by Cboe EDGA and LTSE, and the 0.10% baseline at NYSE Texas.
The exchange intends to maintain this unprofitability only until it secures sufficient critical mass and market participation to modify the structure for profitability.
The deliberate lack of immediate profitability will not trigger regulatory or operational shortfalls.
The Securities and Exchange Commission filing notes that the exchange is well-capitalized, explicitly backed by its parent company, 24X US Holdings LLC.
This corporate backstop guarantees adequate funding for both the exchange's daily operations and its self-regulatory oversight mechanisms while it burns capital to acquire order flow.
The resulting fee structure complies with Section 6(b)(4) of the Securities Exchange Act by ensuring an equitable allocation of costs without unfairly discriminating against smaller brokers or dealers.
