How the exchange is regulated
The Demand Call Market is a demonstration. As a real market it would be regulated by the SEC in one of two ways, each with its own duties and reports. This page sets out the method; the reports themselves will be generated from the demo's own trades.
Two ways to register
A national securities exchange
Registers on Form 1 under Section 6 of the Exchange Act and becomes a self-regulatory organization: it writes and enforces rules for its members (rule changes filed on Form 19b-4), joins the market-data plans, and is covered by Regulation SCI from launch. The Texas Stock Exchange took this path: approved September 30, 2025, trading since July 10, 2026.
An alternative trading system
Operated by a FINRA-member broker-dealer that files Form ATS-N with the SEC. No self-regulatory duties or 19b-4 filings; Regulation SCI, fair-access and display duties start only above volume thresholds. A common first step before becoming an exchange.
The exchange's duties
| Duty | What it requires |
|---|---|
| Regulation SCI | Resilient, secure systems: immediate notice of a systems event, a written report within 24 hours and a final one when it is resolved, quarterly reports of system changes, an annual review, yearly business-continuity tests. |
| Regulation NMS | Order protection (Rule 611: no trade-throughs of protected quotes; its repeal was proposed in June 2026), no locked or crossed quotes, access-fee caps, the tick size. |
| Market data | An exchange sends its quotes and trades to the consolidated tape (the CTA/UTP plans and their processors). A call's alert, Snap Count and Snap Sheet would also go to members over the exchange's own feed, as here. |
| Rule 605 | Monthly execution-quality statistics by stock, order type and size, published on the website (amended rule in effect since August 1, 2026). |
| Consolidated Audit Trail | As a plan participant: every order event reported daily, clocks within 100 microseconds, CAT-based surveillance of members. |
| Surveillance and discipline | Enforce the exchange's rules and the securities laws on its members, with fair procedures; usually done through a regulatory services agreement with FINRA. |
| Section 31 fees | Form R31 each month; the fee on covered sales is $20.60 per million dollars since April 4, 2026, paid to the SEC in March and September and passed to sellers (this demo charges it). |
| Fair access and confidentiality | Fair, written access standards; subscribers' trading information kept to operations and compliance staff (for an ATS, Regulation ATS Rule 301(b)(10)). |
| Clearing and settlement | Trades settle the next business day (T+1, Rule 15c6-1, since May 28, 2024) through the NSCC and DTC. |
The reports
| Report | Filed by → to | How often | What it holds |
|---|---|---|---|
| Form 1 amendments | Exchange → SEC | On change; yearly; every 3 years | Governance, rules, financials |
| Form 19b-4 | Exchange → SEC, website | Each rule or fee change | Rule text and its statutory basis |
| Form ATS-N / ATS-R | ATS → SEC | Before launch, on change / quarterly | How it operates; volume and subscribers |
| Form SCI | Exchange → SEC | On events; quarterly; yearly | Incidents, system changes, reviews |
| Rule 605 | Exchange or ATS → website | Monthly | Execution quality by stock, order type and size |
| CAT | Exchange, ATS, brokers → CAT | Daily | Every order event with timestamps and identifiers |
| Form R31 | Exchange → SEC | Monthly | Covered sales for Section 31 |
End-of-day files
Each weekday evening the demo writes the files an exchange sends: its trades for NSCC's trade capture (cleared and netted by NSCC, settled at DTC on T+1), its CAT events, a daily summary, the Rule 605 execution-quality files (month to date) and the Section 31 fee figures for Form R31. They come from the demo's own calls; none is filed with anyone.
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In this demo
Nothing here is filed with anyone, and no real order reaches this market. The exchange already keeps what the reports need: every call's alert, Snap Count, snapshot attempts, sheets and fills, and every On-Demand print, all timestamped. Next: the Rule 605 statistics and a CAT-style event log generated from them, published on this page. The broker side of the method is on Direct Path Brokers.
Sources: SEC Rules 6a-1/6a-2, 19b-4, Regulation SCI, Regulation NMS, Rule 605 (17 CFR 242.605), Section 31 fee advisory 2026-2, Regulation ATS (17 CFR 242.301), Rule 15c6-1; the CAT NMS Plan; FINRA. Summarized November 2, 2026; check the rule text before relying on it.