[Federal Register Volume 88, Number 35 (Wednesday, February 22, 2023)]
[Notices]
[Pages 10952-10953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03582]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96935; File No. SR-IEX-2023-02]


Self-Regulatory Organizations; Investors Exchange LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Extend 
the Implementation Date of Recently-Approved Changes to IEX Rule 
11.190(g) That Are Designed To Provide an Alternative Calculation for 
Pegged Order Types for Determining Whether a Quote Instability 
Condition Exists

February 15, 2023.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on February 7, 2023, the Investors Exchange LLC (``IEX'' or the 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Pursuant to the provisions of Section 19(b)(1) under the Act,\3\ 
and Rule 19b-4 thereunder,\4\ IEX is filing with the Commission a 
proposal to extend the implementation date of recently-approved changes 
to IEX Rule 11.190(g) that are designed to provide an alternative 
calculation for pegged order types for determining whether a quote 
instability condition exists. The Exchange has designated this proposal 
as non-controversial and provided the Commission with the notice 
required by Rule 19b-4(f)(6)(iii) under the Act.\5\
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    \3\ 15 U.S.C. 78s(b)(1).
    \4\ 17 CFR 240.19b-4.
    \5\ 17 CFR 240.19b-4(f)(6)(iii).
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    The text of the proposed rule change is available at the Exchange's 
website at www.iextrading.com, at the principal office of the Exchange, 
and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of and basis for the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in Sections A, B, and C below, of the 
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    IEX is filing this proposal to extend the implementation date of 
recently-approved changes to IEX Rule 11.190(g) that are designed to 
provide an alternative calculation for pegged order types for 
determining whether a quote instability condition exists (``original 
rule change''). IEX filed the proposed original rule change on 
September 27, 2022,\6\ and the Commission approved it on December 1, 
2022.\7\ The original rule change is currently scheduled to be 
implemented within 90 days of the Approval Order,\8\ i.e., on or before 
March 1, 2023.
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    \6\ See Securities Exchange Act Release No. 96014 (October 11, 
2022), 87 FR 62903 (October 17, 2022) (SR-IEX-2022-06) (``Original 
Filing'').
    \7\ See Securities Exchange Act Release No. 96416 (December 1, 
2022), 87 FR 75099 (December 7, 2022) (SR-IEX-2022-06) (``Approval 
Order'').
    \8\ See supra note 7.
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    The Exchange had anticipated that the technical changes necessary 
to implement the original rule change would be completed in time to 
enable implementation on or before March 1, 2023. However, due to 
unforeseen delays, the technical changes are not yet complete, and IEX 
needs additional time to implement beyond the 90 days specified in the 
Original Filing. As a result, the Exchange is now proposing to 
implement the proposed changes by June 30, 2023, and will announce the 
implementation date by Trading Alert at least ten (10) days in advance 
of such implementation date. Besides the implementation date, the 
Exchange is not proposing to make any changes to the terms of the 
Original Filing.
2. Statutory Basis
    IEX believes that its proposal is consistent with the provisions of 
Section 6(b) of the Act \9\ in general, and with Section 6(b)(5) of the 
Act,\10\ in particular, in that it is designed to promote just and 
equitable principles of trade, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system and, 
in general, to protect investors and the public interest. Specifically, 
the proposal is consistent with the Act because it will allow the 
Exchange to complete technical changes necessary to implement the 
original rule change in a thorough and risk averse manner, thereby 
protecting investors. Further, the ten (10) days' notice to market 
participants of the implementation date for the original rule filing is 
consistent with the Act because it will provide appropriate 
transparency to the Commission and market participants regarding the 
change. Finally, as noted in the Purpose section, the Exchange is not 
proposing to make any changes to the terms of the Original Filing other 
than the implementation date.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).

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[[Page 10953]]

B. Self-Regulatory Organization's Statement on Burden on Competition

    IEX does not believe that the proposal will result in any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. As explained above, the purpose of this proposal 
is to modify the timing of the planned implementation of recently-
approved changes to IEX Rule 11.190(g) and to inform the Commission and 
market participants of that change. The currently functionality of IEX 
Rule 11.190(g) will continue to be available until the Original Filing 
is implemented, and the implementation delay will impact all market 
participants equally. The Exchange does not expect the implementation 
date change to place any burden on competition. Rather, postponing 
implementation will allow the Exchange to implement the original rule 
change in a thorough and risk averse manner and is not designed for any 
competitive purpose.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\ 
Because the proposed rule change does not: (i) significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\
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    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposed 
rule change may become operative immediately. The Exchange states that 
waiving the operative delay will permit the Exchange to implement the 
proposal prior to expiration of the latest implementation date to the 
original rule change, which the Exchange states will avoid any 
potential confusion on the part of market participants or the 
Commission as to when the original rule change will be implemented. 
Based on the foregoing, the Commission believes that allowing this 
proposal to become operative upon filing is consistent with the 
protection of investors and the public interest. For this reason, the 
Commission hereby waives the 30-day operative delay and designates the 
proposal operative upon filing.\17\
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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 17 CFR 240.19b-4(f)(6)(iii).
    \17\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-IEX-2023-02 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-IEX-2023-02. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal offices of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-IEX-2023-02, and should be submitted on 
or before March 15, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-03582 Filed 2-21-23; 8:45 am]
BILLING CODE 8011-01-P