[Federal Register Volume 88, Number 191 (Wednesday, October 4, 2023)]
[Notices]
[Pages 68844-68846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21932]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98583; File No. SR-IEX-2023-09]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Correct
Six Typographical Cross-Reference Errors in IEX Rule 11.190(b)
September 28, 2023.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 22, 2023, the Investors Exchange LLC (``IEX'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. 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\ the Exchange is filing with the
Commission a proposed rule change to correct six typographical cross-
reference errors in IEX Rule 11.190(b). The Exchange has designated
this rule change as ``non-controversial'' under Section 19(b)(3)(A) of
the Act \5\ and provided the Commission with the notice required by
Rule 19b-4(f)(6) thereunder.\6\
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\3\ 15 U.S.C. 78s(b)(1).
\4\ 17 CFR 240.19b-4.
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4.
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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 the
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.
[[Page 68845]]
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange makes this filing to correct six inadvertent and
identical typographical cross-reference errors in IEX Rule 11.190(b).
Specifically, the definitions of the Primary Peg,\7\ Midpoint Peg,\8\
Discretionary Peg,\9\ Offset Peg,\10\ Corporate Discretionary Peg,\11\
and Fixed Midpoint Peg \12\ order types all contain cross-references to
IEX Rule 11.190(a)(3)(D) to describe how the System \13\ handles a
pegged order marked with a Time-in-Force \14\ (``TIF'') of ``DAY'' that
is submitted before, during, or after the Regular Market Session.\15\
However, the order type definitions should instead cross-reference IEX
Rule 11.190(a)(3)(E)(iii), which contains the relevant text.
Notwithstanding the cross-reference errors, the rules describing the
six pegged order types in question each accurately set forth how an
order with a TIF of DAY is handled by the System.
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\7\ See IEX Rule 11.190(b)(8)(F).
\8\ See IEX Rule 11.190(b)(9)(F).
\9\ See IEX Rule 11.190(b)(10)(F).
\10\ See IEX Rule 11.190(b)(13)(F).
\11\ See IEX Rule 11.190(b)(16)(F).
\12\ See IEX Rule 11.190(b)(19)(F).
\13\ See IEX Rule 1.160(nn).
\14\ See IEX Rule 11.190(c).
\15\ See IEX Rule 1.160(gg).
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Specifically, each rule states the following with respect to a
pegged order marked with a TIF of DAY: the order is eligible to trade
only during the Regular Market Session, if submitted to the System
before the opening of the Regular Market Session will be queued by the
System until the start of the Regular Market Session, and if submitted
into the System after the closing of the Regular Market Session will be
rejected.\16\ This language is functionally identical to the
description in IEX Rule 11.190(a)(3)(E)(iii) of how a pegged order with
a TIF of DAY functions before, during, and after the Regular Market
Session:
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\16\ See IEX Rules 11.190(b)(8)(F); 11.190(b)(9)(F);
11.190(b)(10)(F); 11.190(b)(13)(F); 11.190(b)(16)(F); and
11.190(b)(19)(F).
Pegged orders marked DAY submitted before the open of the
Regular Market Session are queued by the System until the Regular
Market Session Opening Process, pursuant to IEX Rule 11.231. Pegged
orders marked DAY submitted during the Regular Market Session are
accepted and begin trading immediately. Pegged orders entered into
the System marked DAY, if not fully executed or canceled by the
User, expire at the end of the Regular Market Session. Pegged orders
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marked DAY are rejected during the Post-Market Session.
IEX therefore proposes to amend subparagraph (F) of IEX Rules
11.190(b)(8), 11.190(b)(9), 11.190(b)(10), 11.190(b)(13),
11.190(b)(16), and 11.190(b)(19) from starting ``As provided in IEX
Rule 11.190(a)(3)(D) . . .'' to instead begin with ``As provided in IEX
Rule 11.190(a)(3)(E)(iii). . . .'' IEX notes that correcting this
cross-reference in the six affected order type definitions will not
substantively change the meaning of each rule, because everything but
the rule cross-references in these subparagraphs IEX accurately
describes the manner in which the System handles a pegged order with a
TIF of DAY that is submitted before, during, and after the Regular
Market Session. And the incorrect cross-reference to IEX Rule
11.190(a)(3)(D) contains an unrelated provision that states that a
pegged order may be submitted with or without a limit price and
therefore does not change the meaning of the IEX Rules 11.190(b)(8),
11.190(b)(9), 11.190(b)(10), 11.190(b)(13), 11.190(b)(16), and
11.190(b)(19).
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \17\ of the Act in general, and furthers the
objectives of Section 6(b)(1) of the Act \18\ in particular, in that it
is designed to enforce compliance by the Exchange's Members \19\ and
persons associated with its Members, with the provisions of the rules
of the Exchange. In particular, the Exchange believes that the proposed
rule change will provide greater clarity to Members and the public
regarding the Exchange's rules by correcting six inadvertent and
identical typographical cross-referencing errors without changing their
substance and providing consistency within the Exchange's Rulebook.
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\17\ 15 U.S.C. 78f.
\18\ 15 U.S.C. 78f(b)(1).
\19\ See IEX Rule 1.160(s).
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As described in the Purpose section, the rules describing the six
pegged order types accurately describe how the System handles a pegged
order with a TIF of DAY that is submitted before, during, and after the
Regular Market Session. This rule filing does not propose any
substantive changes to the functionality of the pegged order types; it
merely proposes to correct cross-references within such rules. The
proposed changes will also make it easier for Members to interpret the
Exchange's Rulebook.
B. Self-Regulatory Organization's Statement on Burden on Competition
IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. As described in the Purpose and
Statutory Basis sections, this rule filing merely proposes to correct
cross-references in six IEX rules that describe pegged order type
functionality, and would not make any substantive changes to the
functionality of the pegged order types. The proposed rule change is
not designed to address any competitive issues but rather to correct
six inadvertent and identical typographical errors, thereby eliminating
any potential confusion regarding such rule provisions without changing
their substance.
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 designated this rule filing as non-controversial
under Section 19(b)(3)(A) \20\ of the Act and Rule 19b-4(f)(6) \21\
thereunder. 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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.
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\20\ 15 U.S.C. 78s(b)(3)(A).
\21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its 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) \22\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\23\ the Commission
may designate a shorter time if such action is consistent with the
[[Page 68846]]
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay because this rule
filing merely corrects typographical errors for which the rest of the
rule is otherwise clear. Therefore, IEX believes there is no need to
delay implementation of this rule change, so that the Exchange may
promptly correct these typographical errors and avoid any potential
confusion on the part of market participants. For these reasons, and
because the proposed rule change does not raise any novel legal or
regulatory issues, the Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. Therefore, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\24\
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\22\ 17 CFR 240.19b-4(f)(6).
\23\ 17 CFR 240.19b-4(f)(6)(iii).
\24\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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 under
Section 19(b)(2)(B) \25\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\25\ 15 U.S.C. 78s(b)(2)(B).
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-IEX-2023-09 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-2023-09. 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 (https://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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions. You should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-IEX-2023-09 and should be
submitted on or before October 25, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-21932 Filed 10-3-23; 8:45 am]
BILLING CODE 8011-01-P