[Federal Register Volume 89, Number 7 (Wednesday, January 10, 2024)]
[Notices]
[Pages 1604-1606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00285]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99274; File No. SR-IEX-2023-14]


Self-Regulatory Organizations; Investors Exchange LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Correct 
Six Typographical Citation and Cross-Reference Errors in the IEX Rule 
Book

January 4, 2024.
    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 December 22, 2023, 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, II 
and III 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\ 15 U.S.C. 78a.
    \3\ 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,\4\ 
and Rule 19b-4 thereunder,\5\ IEX is filing with the Commission a 
proposed rule change to correct six typographical citation and cross-
reference errors in the IEX Rule Book. The Exchange has designated this 
rule change 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) thereunder.\7\
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    \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.
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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 Exchange 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 Exchange 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
    The Exchange makes this filing to correct six typographical 
citation and cross-reference errors in the IEX Rule Book. Specifically, 
the Exchange proposes to update external citations to subsections of 
Rule 600(b) of Regulation NMS under the Act in IEX Rules 10.160(f), 
11.210(a)(2), 11.230(b), 11.610(y), and 11.610(qq) (``Regulation NMS 
citations''); the Exchange also proposes to update an internal cross-
reference error attributable to a recent rule change.
    With respect to the Regulation NMS citations, IEX notes that in 
2021, the Commission amended Regulation NMS in connection with the 
adoption of the Market Data Infrastructure Rules.\8\ As part of that 
initiative, the Commission adopted new definitions in Rule 600(b) of 
Regulation NMS and renumbered the remaining definitions. The Exchange 
accordingly proposes to update the relevant citations to Regulation NMS 
in the IEX Rule Book as follows:
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    \8\ See Securities Exchange Act Release No. 90610, 86 FR 18596 
(April 9, 2021) (S7-03-20).
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     The citation to the Regulation NMS definition of 
Intermarket Sweep Order in IEX Rule 10.160(f) would be changed from 
Rule 600(b)(30) to Rule 600(b)(38);
     The citation to the Regulation NMS definition of NMS Stock 
in IEX Rule 11.210(a)(2) would be changed from Rule 600(b)(46) \9\ to 
Rule 600(b)(55);
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    \9\ IEX Rule 11.210(a)(2), which reads in relevant part ``the 
security is an NMS stock pursuant to Commission Rule 600(b)(46)'' 
contains a typographical error; the rule should have referred to 
Rule 600(b)(47), not 600(b)(46). This proposed rule change corrects 
this typographical error.
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     The citation to the Regulation NMS definition of Protected 
Quotation in IEX Rule 11.230(b) would be changed from Rule 600(b)(58) 
to Rule 600(b)(71);
     The citation to the Regulation NMS definition of Listed 
Option in IEX Rule 11.610(y) would be changed from Rule 600(b)(35) to 
Rule 600(b)(43);
     The citation to the Regulation NMS definition of NMS Stock 
in IEX Rule 11.610(y) would be changed from Rule 600(b)(47) to Rule 
600(b)(55);
    With respect to the internal cross-reference, IEX Rule 
11.190(b)(2)(G) cross-references IEX Rule 11.190(b)(7)(E)(v), when it 
should cross-reference IEX Rule 11.190(b)(7)(F)(v). This cross-
reference error stems from a recent rule filing that renumbered IEX 
Rule 11.190(b)(7) without updating the cross-reference contained in IEX 
Rule 11.190(b)(2)(G).\10\ IEX therefore proposes to amend IEX Rule 
11.190(b)(2)(G) to cross-reference IEX Rule 11.190(b)(7)(F)(v) instead 
of 11.190(b)(7)(E)(v).
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    \10\ See Securities Exchange Act Release No. 96611 (January 9, 
2023), 88 FR 2379, 2380 (January 13, 2023) (SR-IEX-2022-10).
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    IEX notes that both the proposed changes to the Regulation NMS 
citations and the internal cross-reference do not substantively modify 
system functionality or processes on the Exchange, but solely correct 
outdated cross-references.
2. Statutory Basis
    IEX believes that the proposed rule change is consistent with the 
provisions of Section 6(b) \11\ of the Act in general, and furthers the 
objectives of Section 6(b)(1) of the Act \12\ in particular, in that it 
is designed to enforce compliance by the Exchange's Members \13\ and 
persons

[[Page 1605]]

associated with its Members, with the provisions of the rules of the 
Exchange.
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    \11\ 15 U.S.C. 78f.
    \12\ 15 U.S.C. 78f(b)(1).
    \13\ See IEX Rule 1.160(s).
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    The Exchange believes that the proposed changes to the Regulation 
NMS citations would remove impediments to and perfect the mechanism of 
a free and open market and a national market system because the 
proposed changes are designed to update external and internal rule 
references. The Exchange believes that Members would benefit from the 
increased clarity, thereby reducing potential confusion and ensuring 
that persons subject to the Exchange's jurisdiction, regulators, and 
the investing public can more easily navigate and understand the 
Exchange's rules.
    The Exchange also believes that the proposed rule change is 
consistent with the public interest and the protection of investors 
because it will provide increased clarity in the Exchange's rules, 
thereby reducing potential confusion, as described above.

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 
five external citations and one internal cross-reference. The proposed 
rule change is not intended to address competitive issues but rather 
would modify Exchange rules to update citations to Regulation NMS and 
an internal cross-reference. Since the proposal does not substantively 
modify system functionality or processes on the Exchange, the proposed 
changes will not impose any burden on competition.

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) \14\ of the Act and Rule 19b-4(f)(6) \15\ 
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.\16\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 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 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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    The Exchange believes that the proposed rule change meets the 
criteria of subparagraph (f)(6) of Rule 19b-4 \17\ because it would not 
significantly affect the protection of investors or the public 
interest, nor does it impose any burden on competition because it 
merely corrects six typographical errors in existing rule provisions 
without substantively changing such provisions. This rule filing does 
not substantively modify system functionality or processes on the 
Exchange. Accordingly, the Exchange believes that the proposed rule 
change is noncontroversial and satisfies the requirements of Rule 19b-
4(f)(6).\18\
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    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\20\ 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, 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 during such time period on the part of market participants.
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    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 17 CFR 240.19b-4(f)(6)(iii).
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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) \21\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \21\ 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-2023-14 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-2023-14. 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-2023-14 and should be 
submitted on or before January 30, 2024.


[[Page 1606]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-00285 Filed 1-9-24; 8:45 am]
BILLING CODE 8011-01-P