2026-12260NoticeWallet

Exchange Tweaks Market-Maker Registration Rules

Published Date: 6/18/2026

Notice

Summary

The Long-Term Stock Exchange (LTSE) wants to update its rules for Market Makers—those who help keep trading smooth and steady. They’re adding clear definitions, setting up a new registration system, and creating fresh responsibilities for Market Makers and their traders. These changes aim to make trading fairer and more organized, with no big cost changes expected, and they’re open for public comments now.

Analyzed Economic Effects

5 provisions identified: 0 benefits, 5 costs, 0 mixed.

New Firm-Level Market Maker Registration

If your firm wants Market Maker status on LTSE, you must file a written application on an Exchange-prescribed form and meet review factors such as capital, operations, personnel, technical resources, and disciplinary history. Each Market Maker must have and maintain minimum net capital at least equal to the amount required under SEC Rule 15c3-1, and registration becomes effective only when the Exchange approves the application (approval-based effectiveness).

Firm Duties: Continuous Quoting & Supervision

Registered Market Makers must engage in a course of dealings to help keep markets fair and orderly, including maintaining continuous two-sided quotations, staying in compliance with Exchange rules, notifying the Exchange of material financial or operational changes, keeping an updated list of Market Maker Authorized Traders (MMATs), and clearing trades through a registered clearing agency. The firm is explicitly responsible for the acts and omissions of its MMATs and faces disciplinary action (including suspension or revocation) for substantial or continued failures.

Assigned Market Maker (AMM) Program Added

LTSE may appoint Members registered as Market Makers to be Assigned Market Makers (AMMs) for Non-LTSE-Primary-Listed Securities and require enhanced market-quality responsibilities, including maintaining continuous two-sided quotations in assigned securities. Eligibility requires being a Market Maker in good standing and meeting the qualification requirements in Rule 11.150(a); the Exchange may limit or change the number of AMMs, select AMMs based on factors like capital and operational capability, and review or revoke appointments.

Individual Trader (MMAT) Registration & Training

Individuals who act as Market Maker Authorized Traders (MMATs) must be registered by the sponsoring Market Maker on an Exchange-prescribed form and may only enter orders for that Market Maker's account. MMATs must complete proficiency examinations and continuing education required under LTSE Rule 2.160 and any additional Exchange training, and the Exchange may suspend or withdraw MMAT registration for failures such as causing non-compliance or not maintaining fair and orderly markets.

Security-Level Market Maker Registration Process

After firm-level registration, a Market Maker must file a security registration form to be authorized in specific securities; registration in a security becomes effective on the same day as Exchange approval. In reviewing security-level registrations, LTSE may consider factors such as financial resources, market-making experience and performance, operational capability, the effect on competition among Market Makers, clearing arrangements, and the security's price, volatility, and liquidity; voluntary termination and Exchange-initiated suspension/termination are also provided for.

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Key Dates

Published Date
6/18/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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