[Federal Register Volume 88, Number 191 (Wednesday, October 4, 2023)]
[Notices]
[Pages 68790-68791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-22008]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98645; File No. SR-IEX-2023-11]


Self-Regulatory Organizations; Investors Exchange LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Extend 
the Implementation Date of Its New Fixed Midpoint Peg Order Type

September 29, 2023.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on September 28, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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,\4\ 
and Rule 19b-4 thereunder,\5\ IEX is filing with the Commission a 
proposal to extend the implementation date of its new fixed midpoint 
peg order type in advance of a potential partial shutdown of the 
federal government. The Exchange has designated this proposal as non-
controversial under Section 19(b)(3)(A) of the Act \6\ and provided the 
Commission with the notice required by Rule 19b-4(f)(6)(iii) under the 
Act.\7\
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CFR 240.19b-4.
    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    IEX is filing this proposal to extend the implementation date of 
its new fixed midpoint peg order type,\8\ which is designed to peg to 
the less aggressive of the order's limit price or the Midpoint 
Price,\9\ but does not re-reprice based on changes to the NBBO.\10\ IEX 
filed the immediately effective rule change on July 19, 2023, and it 
was published in the Federal Register on August 7, 2023 (``Original 
Rule Filing'').\11\ Pursuant to the Original Rule Filing, the fixed 
midpoint peg order type is currently scheduled to be implemented within 
90 days of the July 19, 2023 filing date, i.e., on or before October 
17, 2023.
---------------------------------------------------------------------------

    \8\ See IEX Rule 11.190(b)(19).
    \9\ See IEX Rule 1.160(t).
    \10\ See IEX Rule 1.160(u).
    \11\ See Securities Exchange Act Release No. 98035 (August 1, 
2023), 88 FR 52233 (August 7, 2023) (SR-IEX-2023-06).
---------------------------------------------------------------------------

    The Exchange anticipates that the technical changes necessary to 
implement the fixed midpoint peg order type should be completed in time 
to enable implementation on or before October 17, 2023. However, 
unforeseen delays may require that IEX extend the implementation date a 
few weeks beyond October 17, 2023. IEX understands that as of September 
26, 2023, there is a meaningful possibility of a partial federal 
government shutdown starting on October 1, 2023. IEX also understands 
that during a partial federal government shutdown, the Commission will 
not be able to accept and publish rule change proposal filings.\12\ 
Thus, in advance of the potential partial federal government shutdown, 
and in an abundance of caution in case IEX requires a few additional 
weeks to implement the fixed midpoint peg order type, IEX now proposes 
to extend the October 17, 2023 implementation deadline to November 30, 
2023.
---------------------------------------------------------------------------

    \12\ See Jeff Stein, et al., ``A federal government shutdown 
looks more and more likely: what to know,'' The Washington Post, 
September 26, 2023.
---------------------------------------------------------------------------

    IEX will still 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 Rule Filing.
2. Statutory Basis
    IEX believes that its proposal is consistent with the provisions of 
Section 6(b) of the Act \13\ in general, and with Section 6(b)(5) of 
the Act,\14\ 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 fixed 
midpoint peg order type in a thorough and risk averse manner, thereby 
protecting investors. By making this filing in advance of a potential 
partial federal government shutdown, IEX is ensuring it will have the 
necessary time to implement the order type even if the federal 
government is partially shutdown.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Further, the ten (10) days' notice to market participants of the 
implementation date for the fixed midpoint peg order type is consistent 
with the Act because it will provide appropriate transparency to market 
participants and the Commission 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 Rule Filing other than the 
implementation date.

[[Page 68791]]

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 a new fixed 
midpoint peg order type with appropriate notice to inform market 
participants and the Commission of the change. 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) of the Act \15\ and Rule 19b-4(f)(6) \16\ 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, if consistent with the protection of 
investors and the public interest, it has become effective pursuant to 
Section 19(b)(3)(A) of the Act \17\ and Rule 19b-4(f)(6) 
thereunder.\18\
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 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.
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change meets the 
criteria of subparagraph (f)(6) of Rule 19b-4 \19\ because it would not 
significantly affect the protection of investors or the public interest 
in that it is designed to allow the Exchange to complete technical 
changes necessary to implement the original rule change in a thorough 
and risk adverse manner, thereby protecting investors. Accordingly, the 
Exchange believes that this proposal is noncontroversial and satisfies 
the requirements of Rule 19b-4(f)(6).\20\
---------------------------------------------------------------------------

    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \21\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\22\ 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. Waiving the 30-day 
delay in this manner would permit the Exchange to implement the 
proposal prior to expiration of the latest implementation date to the 
original rule change, thereby avoiding any potential confusion on the 
part of market participants or the Commission as to when the original 
rule change will be implemented. 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.\23\
---------------------------------------------------------------------------

    \21\ 17 CFR 240.19b-4(f)(6).
    \22\ 17 CFR 240.19b-4(f)(6)(iii).
    \23\ 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).
---------------------------------------------------------------------------

    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) of the Act \24\ to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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-2023-11 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-2023-11. 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-2023-11 and should be 
submitted on or before October 25, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
---------------------------------------------------------------------------

    \25\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-22008 Filed 10-3-23; 8:45 am]
BILLING CODE 8011-01-P