29768 Federal Register / Vol. 87, No. 94 / Monday, May 16, 2022 / Notices 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

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. 

8See IEX Rule 1.160(t). 9See IEX Rule 1.160(bb). 10See IEX Rule 1.160(p). 11See IEX Rule 11.230(a)(4)(D). 

12See IEX Rule 1.160(nn). 

13See, e.g., Cboe BZX Exchange, Inc. (‘‘Cboe 

BZX’’) Rule 11.9(g)(4); MIAX PEARL LLC (‘‘MIAX 

PEARL’’) Rule 2614(g)(2). 

14Currently, a non-displayed limit order can 

check past the Midpoint Price on entry, but cannot 

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–Phlx–2022–20. 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 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office 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–Phlx–2022–20 and should 

be submitted on or before June 6, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–10416 Filed 5–13–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94884; File No. SR–IEX– 

2022–04] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Remove the 

Midpoint Price Constraint on NonDisplayed Limit Orders and Make 

Conforming Changes 

May 10, 2022. 

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 April 29, 

2022, 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the 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 the Exchange is filing 

with the Commission a proposed rule 

change to remove the midpoint price 

constraint on non-displayed limit orders 

and make conforming changes to several 

rules. 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

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 statement 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 

Currently, IEX Rule 11.190(h)(2) 

(Non-Displayed Price Sliding) adjusts 

the price of any non-displayed limit 

order priced more aggressively than the 

Midpoint Price 8 to be priced at the 

Midpoint Price (the ‘‘Midpoint Price 

Constraint’’). The Exchange proposes to 

amend its non-displayed price sliding 

rule to allow non-displayed limit orders 

to be priced more aggressively than the 

Midpoint Price. Specifically, the 

Exchange proposes to amend IEX Rule 

11.190(h)(2) to remove the Midpoint 

Price Constraint on non-displayed limit 

orders, thereby allowing non-displayed 

limit orders to be priced as aggressively 

as the contra-side Protected Quotation,9

provided it does not lock IEX’s Order 

Book.10 Because this rule change should 

result in there being more aggressively 

priced non-displayed liquidity resting 

on the Exchange, IEX also proposes to 

amend its Order Execution Recheck 11

rule to increase the circumstances in 

which a resting non-displayed order 

may be invited by the System 12 to 

execute against eligible contra-side 

liquidity. Additionally, the Exchange 

proposes to make related changes to IEX 

Rules 11.190(b) and 11.230(a)(4)(C) to 

prevent aggressively priced nondisplayed limit orders locking or 

crossing IEX’s displayed Order Book. 

Finally, the Exchange proposes to make 

conforming changes to IEX Rules 

11.190, 11.220, 11.230, 11.231, 11.232, 

and 11.340. This proposal would align 

IEX’s non-displayed price sliding rules 

with those of other national securities 

exchanges that trade equities, as 

detailed below.13

I. Midpoint Price Constraint Removal 

Currently, IEX restricts non-displayed 

limit orders such that they cannot be 

booked and ranked at a price any more 

aggressive than the Midpoint Price.14


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rest at a price more aggressive than the Midpoint 

Price. 

15For example, Midpoint Peg and Retail Liquidity 

Provider orders rest at the less aggressive of the 

order’s limit price or the Midpoint Price, and 

Discretionary Peg and Corporate Discretionary Peg 

orders rest one minimum price variant less 

aggressive than the National Best Bid (for bids) or 

National Best Offer (for offers) and exercise 

discretion to the less aggressive of the order’s limit 

price or the Midpoint Price. 

16See IEX Rule 1.160(s). 

17The term ‘‘NBO’’ means the national best offer. 

See IEX Rule 1.160(u). 

18The term ‘‘NBB’’ means the national best bid. 

See IEX Rule 1.160(u). 

19This repricing could occur upon order entry, or 

after the NBBO changes such that the order is now 

priced more aggressively than the contra-side 

Protected Quotation. 

20The term ‘‘NBBO’’ means the national best bid 

or offer, as set forth in Rule 600(b) of Regulation 

NMS under the Act. See IEX Rule 1.160(u). 

21The example focuses on price sliding of nondisplayed limit orders to buy, but the same rules 

would apply to non-displayed orders to sell. 

22For purposes of this example, we are treating 

the orders as ‘‘IEX Only’’ (non-routable) orders. See 

IEX Rule 11.190(a)(1)(B). If the incoming order was 

designated as routable, it would first seek to execute 

against the IEX Order Book and any away markets 

before booking. 

23Because the incoming order is non-displayed, 

it can be priced at the contra-side NBO without 

locking the away market NBO. See Reg NMS Rule 

610(d), 17 CFR 242.610(d). 

24See IEX Rule 11.190(b)(11). Significantly, only 

non-displayed orders can have specific conditions 

such as a Minimum Quantity that could prevent a 

match. Id. 

25Any order that cannot be executed due to its 

specific conditions (but would otherwise be 

executable against a contra-side order) surrenders 

its precedence in the Order Book. See IEX Rule 

11.220(a)(5). Usually, this issue arises when one or 

both orders have a MQTY instruction preventing an 

execution, but there are a few other specific 

conditions that prevent executions and cause an 

order to surrender precedence, such as an Offset 

Peg order being ineligible to trade during a locked 

market, see IEX Rule 11.190(h)(3)(C)(iii). 

26See IEX Rule 11.210. 

27See IEX Rule 11.220(a)(5). 

28Orders execute in price, display, time priority, 

so the incoming bid, which would be priced at 

$10.10 has priority over the bid with specific 

conditions resting at $10.09. See IEX Rule 

11.220(a)(2). 

29See IEX Rule 11.220(a)(5). 

30 IEX has always permitted non-displayed orders 

to lock on its non-displayed Order Book when a 

specific condition of one or both orders prevents an 

execution. See IEX 11.230(a)(4)(C). 

31See IEX Rule 11.220(a)(5). 

32See Nasdaq Rule 4703(e). 

33See Nasdaq Rule 4703(e); see also Nasdaq Rule 

4702(b)(3)(A) (allowing non-displayed orders to 

book at the price of an away market Protected 

Quotation). 

34See MIAX PEARL Rule 2614(c)(7)(B)(iii). 

35See MIAX PEARL Rules 2617(a)(4)(C) and (D). 

In the same situation, IEX is proposing to re-price 

the non-displayed order to a price one (1) MPV less 

aggressive than the contra-side displayed order, 

which IEX believes is a minor distinction from 

MIAX PEARL’s 1⁄2 MPV approach. 

Additionally, IEX offers several order 

types that constrain an order’s price to 

a price no more aggressive than the 

Midpoint Price.15 Based on informal 

feedback, IEX understands that a 

number of Members 16 would like to be 

able to post non-displayed orders at 

prices more aggressive than the 

Midpoint Price. The Members also 

express a preference to have IEX’s nondisplayed price-sliding function like 

that of other equities exchanges, which 

only reprice non-displayed limit orders 

to be equal to the contra-side Protected 

Quotation when they would otherwise 

be priced more aggressively than the 

contra-side Protected Quotation. In 

response to this feedback, and with the 

understanding that Members will 

continue to have the option of using one 

of several order types that constrain 

orders to prices no more aggressive than 

the Midpoint Price, IEX proposes to 

remove its Midpoint Price Constraint on 

non-displayed limit orders. 

Specifically, IEX proposes to modify 

IEX Rule 11.190(h)(2) to remove all 

references to the Midpoint Price 

Constraint, and to introduce text 

specifying that non-displayed limit 

orders can be priced more aggressively 

than the Midpoint Price (i.e., between 

the Midpoint Price and the NBO 17 for 

bids (buy orders) or between the 

Midpoint Price and the NBB18 for offers 

(sell orders). If a non-displayed limit 

order to buy (sell) is priced more 

aggressively than the NBO (NBB), IEX 

will adjust the order’s price to the NBO 

(for bids) or the NBB (for offers).19

For example, if the NBBO 20 is $10.00 

x $10.10, and IEX receives a nondisplayed buy order 21 with a limit price 

of $10.20, the incoming bid will be 

repriced to the NBO, $10.10, and 

execute against any eligible contra-side 

liquidity on IEX 22 or book at $10.10 if 

IEX has no eligible contra-side liquidity 

(i.e., IEX has no offers resting on its 

Order Book).23 However, if the 

incoming non-displayed buy order has a 

minimum quantity instruction 24

(‘‘MQTY’’) or other specific condition 25

that prevents it from matching with an 

order on the IEX Order Book, the 

System will reprice the incoming nondisplayed buy order to a price one 

minimum price variant (‘‘MPV’’) 26 less 

aggressive than the NBO price if the IEX 

sell order is displayed at the NBO, or at 

the NBO if the IEX sell order is nondisplayed.27

IEX believes it is appropriate to adjust 

the price of the non-displayed limit 

order whose specific conditions prevent 

an execution with IEX’s Protected Bid or 

Offer (as applicable) prior to posting, 

because the Member who submitted the 

order with specific conditions chose to 

reduce the number of situations in 

which the order could potentially 

execute. Thus, in the example above, if 

another non-displayed buy order arrives 

that is able to execute against the 

displayed sell order resting at the NBO, 

an execution will occur consistent with 

IEX’s execution priority rules,28

including the rule that orders that 

cannot execute due to their specific 

conditions surrender their 

precedence.29

However, when the resting sell order 

is non-displayed, and the two orders 

cannot execute because of a specific 

condition of one or both orders, IEX 

believes it is appropriate to allow the 

two non-displayed orders to book at the 

same price (the NBO), thereby ‘‘locking’’ 

the non-displayed Order Book.30 If a 

later arriving buy order can execute 

with the resting non-displayed sell 

order at the NBO price, it will 

appropriately execute before the first 

buy order with specific conditions that 

prevented an execution, because the 

order with specific conditions 

surrenders its precedence.31

Therefore, IEX proposes to add text to 

IEX Rule 11.190(h)(2) specifying that if 

a repriced non-displayed limit order 

would lock or cross IEX’s Protected 

Quotation, the order will be adjusted to 

a price one MPV less aggressive than the 

NBO (for bids) or the NBB (for offers). 

IEX notes this functionality is identical 

to that of The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’), which also reprices nondisplayed minimum quantity orders that 

would otherwise ‘‘lock’’ a contra-side 

displayed order that does not meet its 

specific conditions to a price one MPV 

less aggressive than the price of the 

contra-side order.32 Similarly, pursuant 

to Nasdaq rules, a non-displayed 

minimum quantity order can lock a 

contra-side non-displayed order priced 

at the Protected Quotation, because the 

order with specific conditions will 

surrender precedence to incoming 

orders that can execute against the 

contra-side order resting at the 

‘‘locking’’ price.33 Additionally, other 

exchanges, such as MIAX PEARL, will 

not allow minimum quantity orders to 

trade at a price above (below) any sell 

(buy) displayed orders that are priced 

below (above) the price of the minimum 

quantity order.34 MIAX PEARL will 

only execute a non-displayed minimum 

quantity order that would otherwise 

‘‘lock’’ a contra-side displayed order 

that does not meet its specific 

conditions at a price 1⁄2 MPV less 

aggressive than the contra-side 

displayed order.35

Example 1 demonstrates how, as 

proposed, IEX’s non-displayed price 

sliding rules will work: 


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36See IEX Rule 11.190(b)(11). 

37The example focuses on price sliding of nondisplayed limit orders to buy, but the same rules 

would apply to non-displayed orders to sell. 

38See IEX Rule 11.190(b)(7). 

39See IEX Rule 11.190(b)(2)(B). 

40See IEX Rule 11.190(b)(2)(B). 

41See IEX Rule 11.190(b)(13). 

42See IEX Rule 11.190(b)(8). 

43Currently, if the offset amount plus the limit 

price would result in a price more aggressive than 

the Midpoint Price, the Offset Peg would be priced 

at the Midpoint Price. 

44 Depending upon the difference between the 

NBB and NBO, the Midpoint Price for any 

execution over $1.00 per share can be a whole 

penny or a sub-penny price (i.e., if the NBB is 

$10.01 and NBO is $10.05, the Midpoint Price is a 

sub-penny price, $10.025. But if the NBB is $10.01 

and the NBO is $10.06, the Midpoint Price is a 

whole penny price, $10.03). 

45See IEX Rules 11.190(b)(8)(K) and 11.190(g). 

46See IEX Rule 11.190(b)(9). 

47See IEX Rule 11.190(b)(14). 

48See IEX Rule 11.190(b)(10). 

49See IEX Rule 11.190(b)(16). 

50As discussed above, Primary Peg orders are not 

currently eligible for Book Recheck because the 

Midpoint Price Constraint means there will not be 

any eligible non-displayed contra-side liquidity on 

the Order Book resting at a price aggressive enough 

to match the Primary Peg. 

51See IEX Rule 11.230(a)(4)(D). 

52See IEX Rule 11.230(a)(4)(D). 

53See IEX Rule 11.230(a)(4)(D)(ii). 

54See New York Stock Exchange (‘‘NYSE’’) Rules 

7.37(b)(8) and (9) (Resting orders that are repriced 

and become marketable against contra-side orders 

on the order book will trade consistent with their 

ranking, and resting orders on both sides of market 

that reprice and become marketable against one 

another will trade consistent with their ranking); 

see also MIAX PEARL Rule 1901(a) (resting orders 

may become ‘‘Aggressing’’ orders if the PBBO or 

NBBO is updated, in which case the Aggressing 

order will check the order book for marketable 

contra-side liquidity); Nasdaq Rule 4702(a) 

(whenever an order receives a new timestamp, 

including if it was repriced, it is treated by Nasdaq 

as a new, active order). 

Example 1 

• NBBO for a stock is $10.10 x $10.20. IEX 

has no displayed quote. 

• Order A, a displayed order to buy 100 

shares with a limit price of $10.09 arrives 

and is booked at $10.09, thereby becoming 

IEX’s Protected Best Bid. 

• Order B, a displayed order to sell 100 

shares with a limit price of $10.21 arrives 

and is booked at $10.21, thereby becoming 

IEX’s Protected Best Offer. 

• IEX’s PBBO for the stock is now $10.09 

x $10.21. 

• Order C, a non-displayed order to buy 

300 shares with a limit price of $10.30 and 

a minimum quantity 36 of 300 shares 

arrives.37

• Order C is repriced by the System to 

$10.20, which is the NBO. 

• The NBBO changes to $10.10 x $10.21. 

Order B, which is IEX’s Best Offer, is now 

equal to the NBO. 

• Order C remains priced at $10.20, a price 

one MPV less aggressive than IEX’s contraside Protected Quotation of $10.21. 

• Order D, a displayed order to sell 100 

shares with a limit price of $10.20 arrives. 

Order C and Order D do not match because 

Order D does not satisfy Order C’s minimum 

quantity requirements. 

• Order D becomes the NBO, and the 

NBBO moves to $10.10 x $10.20. 

• Order C is repriced to $10.19, a price one 

MPV less aggressive than IEX’s contra-side 

Protected Quotation of $10.20. 

As noted above and discussed in the 

Statutory Basis section below, these 

proposed changes would align IEX’s 

non-displayed price sliding rules with 

those of the other equities exchanges. 

II. Impact of Midpoint Price Constraint 

Removal on Specific Order Types 

As discussed above, this rule proposal 

impacts the price sliding behavior of 

non-displayed limit orders, including (i) 

non-displayed Discretionary Limit (‘‘DLimit’’) 38 orders; (ii) non-displayed 

portions of Reserve 39 orders, and (iii) 

non-displayed portions of D-Limit 

Reserve 40 orders, which will be able to 

rest and trade at prices up to the contraside away market Protected Quotation. 

Additionally, as set forth below, this 

proposed rule change impacts the 

pricing and functionality of Offset Peg 41

and Primary Peg 42 orders, respectively. 

Specifically, IEX proposes to amend 

IEX Rule 11.190(b)(13), describing 

Offset Peg orders, to allow them to be 

priced as aggressively as the contra-side 

Protected Quotation, dependent upon 

the limit price plus the offset amount. 

Currently, Offset Peg orders cannot be 

priced more aggressively than the 

Midpoint Price.43 IEX is proposing to 

allow Offset Peg orders to rest at prices 

as aggressive as the contra-side 

Protected Quotation, irrespective of the 

Midpoint Price. Therefore, IEX proposes 

to amend IEX Rules 11.190(b)(13) to 

reflect the new offset functionality. 

Additionally, because Offset Peg orders 

will no longer rest or execute at the 

Midpoint Price if it is a sub-penny 

Midpoint Price,44 IEX proposes to 

amend IEX Rule 11.190(a)(3) (Pegged 

Order) to reflect that Offset Peg orders 

cannot execute in sub-penny 

increments. 

This rule filing also impacts Primary 

Peg orders, which currently book at a 

price one MPV less aggressive than the 

NBB (for bids) or NBO (for offers) and 

during periods of quote stability 45 can 

exercise discretion up to the NBB/NBO 

for bids/offers. Primary Peg orders are 

not currently eligible for Book Recheck 

because the Midpoint Price Constraint 

means there will not be any eligible 

non-displayed contra-side liquidity on 

the Order Book resting at a price 

aggressive enough to match the Primary 

Peg. And currently, Primary Peg orders 

cannot have a TIF of IOC or FOK, 

because the only types of orders Primary 

Pegs could match with upon entry are 

non-displayed odd lots priced at the 

contra-side Protected Quotation. 

Because, as proposed, non-displayed 

orders will be able to rest at the contraside Protected Quotation, there is a 

greater chance a Primary Peg order 

could execute upon entry. Therefore, 

IEX proposes to amend IEX Rules 

11.190(a)(3) and 11.190(b)(8) to allow 

Primary Pegs to be submitted with any 

TIF. 

Notwithstanding that IEX is proposing 

to remove the Midpoint Price 

Constraint, there are still several order 

types that Members seeking a Midpoint 

Price execution can use. Specifically, 

Midpoint Peg 46 orders (including Retail 

Liquidity Provider 47 orders) and 

Discretionary Peg 48 orders (including 

Corporate Discretionary Peg 49 orders), 

will continue to allow Members to 

submit orders that will execute at prices 

no more aggressive than the Midpoint 

Price. 

III. Expansion of Book Recheck 

Opportunities 

Currently, all non-displayed orders, 

other than Primary Peg 50 orders, are 

eligible to be invited by the System to 

become active and check the Order 

Book for contra-side liquidity upon a 

change to the Order Book or NBBO, or 

as part of the processing of inbound 

messages (‘‘Book Recheck’’ or 

‘‘Recheck’’).51 Book Recheck allows 

resting orders to trade against other 

orders on the Order Book that were 

ineligible for execution, or did not 

satisfy the order’s conditions (i.e., 

minimum quantity) when they were 

originally booked.52 Currently, to be 

eligible for Book Recheck, orders must 

be able to execute at a price equal to or 

more aggressive than the Midpoint 

Price.53 IEX’s Book Recheck 

functionality is consistent with the 

manner in which other exchanges allow 

a resting order to become active if price 

changes or other circumstances allow 

two orders to execute with one another 

when they previously could not.54

As described above, with the 

proposed removal of the Midpoint Price 

Constraint, IEX expects to have nondisplayed orders resting on the Order 

Book that are priced more aggressively 

than the Midpoint Price. Therefore, IEX 

proposes to amend IEX Rule 

11.230(a)(4)(D) to clarify that for an 

order to be eligible for Book Recheck, it 

must be able to execute against resting 

contra-side liquidity, irrespective of if 

the contra-side order is resting at the 

Midpoint Price. IEX also proposes to 

amend the Book Recheck references in 


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55This scenario would not arise if the contra-side 

order were a displayed order because displayed 

orders cannot include a minimum quantity and 

would execute against any eligible contra-side 

order. 56See MEMX Rule 11.6(f). 

57See MIAX PEARL Rule 2614(c)(7)(B)(iv). 

58See IEX Rule 11.232. 

59See IEX Rules 11.190(b)(15) and 11.232(a)(2). 

60See IEX Rule 11.232(a)(2). 

61An aggressively priced displayed odd lot order 

resting at the same price as the aggressively priced 

non-displayed limit order will have execution 

priority over the non-displayed limit order. 

62As set forth in IEX Rule 11.210, for securities 

that execute at sub-dollar prices (i.e., the order is 

priced less than $1.00 per share), the minimum 

price variation is $0.0001. Therefore, sub-penny 

executions can still occur for any sub-dollar 

executions. 

IEX Rule 11.190(b) to align the language 

(and functionality) with IEX Rule 

11.230(a)(4)(D). By way of example, 

with this proposed change, a resting 

non-displayed bid priced at $10.03 with 

a NBBO of $10.00 x $10.10 would be 

eligible to Recheck against a resting sell 

order (either a displayed odd lot or a 

non-displayed order) with a limit price 

equal to or more aggressive than $10.03. 

As a result of this rule change, nondisplayed limit orders will be allowed 

to rest at the contra-side Protected 

Quotation, which means there can now 

be circumstances when a resting 

Primary Peg order could execute against 

resting contra-side liquidity. Therefore, 

IEX also proposes to amend the Book 

Recheck rule to remove the language 

excluding Primary Peg orders from Book 

Recheck eligibility and amend the 

Primary Peg order definition to state 

they are eligible for Book Recheck. 

IV. Minimum Quantity Order Changes 

As described above, orders with 

specific conditions, such as MQTY 

orders, might not always be able to 

execute against contra-side liquidity 

with which they would otherwise match 

because of the Minimum Quantity 

order’s specific conditions.55 Therefore, 

as discussed above, IEX proposes to 

amend IEX Rule 11.190(h)(2) to adjust 

the price of a minimum quantity order 

in such a circumstance to a price one 

MPV less aggressive than the contra-side 

Protected Quotation when the 

Exchange’s Protected Quotation is equal 

to the NBBO. IEX also proposes a 

conforming change to amend IEX Rule 

11.190(b)(11), governing MQTY orders, 

by adding a paragraph reflecting that the 

new repricing functionality in IEX Rule 

11.190(h)(2) applies when an order’s 

minimum quantity prevents it from 

executing with an order resting at the 

contra-side Protected Quotation. 

Specifically, IEX proposes to add 

subparagraph (G)(iii)(c) to IEX Rule 

11.190(b)(11) specify that an incoming 

MQTY order that would otherwise be 

executable against a resting nondisplayed order but for the MQTY 

order’s specific conditions will be 

booked and ranked by the System at the 

less aggressive of the incoming MQTY 

order’s limit price, if any, or the contraside protected quotation (i.e., the NBO 

for buy orders and NBB for sell orders) 

unless the Exchange’s Protected Bid (for 

offers) or Protected Offer (for bids) is 

equal to the current NBB (for offers) or 

current NBO (for bids), in which case 

the incoming MQTY order is booked 

and ranked on the Order Book nondisplayed one (1) MPV below the 

current NBO (for bids) or one (1) MPV 

above the current NBB (for offers). 

Additionally, IEX proposes to add 

subparagraph (G)(iv)(b) to IEX Rule 

11.190(b)(11) to specify what happens 

when two MQTY orders cannot match 

because of at least one of the order’s 

specific conditions. The proposed new 

subparagraph specifies that in this 

situation, the incoming MQTY order 

would be booked and ranked by the 

System at the less aggressive of its limit 

price, if any, or the contra-side 

Protected Quotation (i.e., the NBO for 

buy orders and NBB for sell orders). 

However, if the Exchange’s Protected 

Bid (for offers) or Protected Offer (for 

bids) is equal to the current NBB (for 

offers) or current NBO (for bids), the 

incoming MQTY order would be booked 

and ranked on the Order Book nondisplayed one (1) MPV below the 

current NBO (for bids) or one (1) MPV 

above the current NBB (for offers), as set 

forth in IEX Rule 11.190(h)(2). As 

proposed, this functionality could result 

in a ‘‘crossed’’ non-displayed Order 

Book, as reflected in Example 2, below. 

Therefore, the Exchange proposes to 

amend IEX Rule 11.230(a)(4)(C) to 

remove the last sentence, which reads 

‘‘Lastly, orders are never permitted to 

post non-displayed nor rest nondisplayed on the Order Book at prices 

that cross contra-side liquidity.’’ 

Example 2 

• NBBO for a stock is $10.00 x $10.10. IEX 

has no displayed orders resting on the Order 

Book. 

• Order A, a non-displayed order to sell 

10,000 shares with a limit price of $10.08 and 

a MQTY of 3,000 shares arrives and is 

booked at $10.08. 

• Order B, a non-displayed order to buy 

2,000 shares with a limit price of $10.11 and 

a MQTY of 500 shares arrives. 

• Order B does not satisfy Order A’s 

MQTY, so the two orders do not match. 

• Order B books at $10.10, the contra-side 

Protected Quotation, because it is able to rest 

at the contra-side Protected Quotation so long 

as IEX does not have a Protected Quotation 

priced at the NBO. 

• IEX’s non-displayed Order Book is 

crossed at $10.10 x $10.08. 

IEX notes that the manner in which it 

proposes to allow two MQTY orders to 

cross IEX’s non-displayed Order Book is 

the same approach taken by other 

exchanges. For example, MEMX LLC 

(‘‘MEMX’’) allows orders with minimum 

execution quantities to create a dark 

order book cross,56 and MIAX PEARL 

allows its non-displayed order book to 

be internally locked or crossed, in the 

same manner IEX is proposing.57

V. Related Changes to the Retail Price 

Improvement Program 

IEX’s Retail Price Improvement 

Program 58 currently allows a Retail 59

order to trade with a contra-side order 

resting at the Midpoint Price, or with an 

aggressively priced displayed odd lot 

order priced between the Midpoint 

Price and the contra-side Protected 

Quotation.60 Because this proposed rule 

change will allow non-displayed orders 

to also be priced between the Midpoint 

Price and the contra-side Protected 

Quotation, IEX proposes to amend IEX 

Rule 11.232 to allow Retail orders to 

interact with any order priced between 

the Midpoint Price and the contra-side 

Protected Quotation. Specifically, IEX 

proposes to amend IEX Rules 

11.232(a)(2) and 11.232(e)(2) to reflect 

this change. 

Additionally, IEX proposes to amend 

Rule 11.232(e)(3) regarding Retail order 

priority, by adding subparagraph (iii), 

which states that non-displayed orders 

priced more aggressively than the 

Midpoint Price will have price priority 

over orders resting at the Midpoint Price 

because of their more aggressive price.61

IEX also proposes to renumber 

subparagraph (iii) to (iv) to reflect the 

insertion of the new subparagraph (iii). 

Finally, IEX proposes to add a new 

Example 6, to demonstrate how an 

aggressively priced non-displayed limit 

order will have execution priority over 

orders priced to execute at the Midpoint 

Price. 

VI. Conforming Changes Caused by 

Midpoint Price Constraint Removal 

IEX also proposes several conforming 

changes to other IEX rules. Specifically, 

IEX proposes to make the following 

conforming changes: 

• Amend IEX Rule 11.190(a)(3) (Pegged 

Order) to remove the text stating that an 

Offset Peg order may be executed in subpennies if necessary to obtain a Midpoint 

Price. As noted below, Offset Peg orders 

would no longer be constrained by the 

Midpoint Price, and therefore will no longer 

execute in sub-pennies.62


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29772 Federal Register / Vol. 87, No. 94 / Monday, May 16, 2022 / Notices 

• Amend IEX Rule 11.190(a)(3)(A) to 

remove the text stating that Primary Peg 

orders may not have a TIF of IOC or FOK. 

As discussed above, because the removal of 

the Midpoint Price Constraint means the IEX 

Order Book could have resting orders priced 

at the contra-side Protected Quotation, it is 

now possible for a Primary Peg order to 

execute upon entry, and therefore IEX 

proposes to allow Primary Peg orders to be 

submitted with a TIF of IOC or FOK. 

Relatedly, IEX proposes to amend 

subparagraph (E) of the same rule to remove 

the text saying that Primary Peg orders 

submitted with a TIF of IOC or FOK will be 

rejected on entry. 

• Amend IEX Rule 11.190(b)(2) (Reserve 

Order) and the accompanying Supplementary 

Material to remove references to the 

Midpoint Price Constraint and replace them 

with references to the non-displayed price 

sliding rule. IEX also proposes to correct a 

typographical error by inserting a ‘‘B’’ into 

the last word of the sentence that reads: ‘‘[f]or 

example, NBBO is $10.01 × $10.02, and IEX 

does not have any orders resting at the NBO,’’ 

which will now end by saying ‘‘at the 

NBBO.’’ Further, IEX proposes to modify the 

example in Supplementary Material .01 

(Reserve Orders) to describe a displayed odd 

lot reserve order with 50 shares displayed 

and 950 shares in reserve, to demonstrate 

how the displayed and non-displayed 

portions of a reserve order can be booked at 

different prices. Therefore, IEX proposes to 

end the example by changing the nondisplayed portion’s resting price from 

$10.015 (the Midpoint Price) to $10.02, the 

NBO. Additionally, IEX proposes to reorder 

the paragraphs in the Supplementary 

Material about reserve orders such that the 

paragraph about D-Limit reserve orders is the 

last paragraph. 

• Amend IEX Rule 11.190(b)(3) (NonDisplayed Order) to remove the text stating 

that Primary Peg orders are not eligible for 

Book Recheck. As discussed above, these 

changes are proposed because Primary Peg 

orders have a higher likelihood of executing 

on entry now that non-displayed orders can 

rest at the contra-side Protected Quote. 

• Amend IEX Rule 11.190(b)(8) (Primary 

Peg Order) to: Amend subparagraph (B) to 

state that a Primary Peg order may have any 

TIF described in IEX Rule 11.190(a)(3); and 

remove the text in subparagraph (J) that says 

Primary Peg orders are not eligible for Book 

Recheck and add text saying that they are 

eligible to be invited to Recheck to trade 

against eligible resting contra-side interest. 

As discussed above, the TIF changes are 

proposed because Primary Peg orders have a 

better likelihood of executing on entry now 

that non-displayed orders can rest at the 

contra-side Protected Quote. Additionally, as 

discussed above, the proposed change to 

allow Primary Peg orders to Recheck the 

Order Book conforms to proposed changes to 

the Book Recheck rule to reflect that orders 

will no longer only be invited to recheck the 

Order Book if there is a contra-side order 

resting at the Midpoint Price. 

• Amend IEX Rule 11.190(b)(9) (Midpoint 

Peg Order) to remove the text in 

subparagraph (J) that states that Midpoint Peg 

orders are eligible to be invited to Recheck 

to trade against interest resting at the 

Midpoint Price and replace it with text 

saying they are eligible to be invited to 

Recheck to trade against eligible resting 

contra-side interest. As discussed above, this 

conforms to proposed changes to the Book 

Recheck rule to reflect that orders will no 

longer only be invited to recheck the Order 

Book if there is a contra-side order resting at 

the Midpoint Price. 

• Amend IEX Rule 11.190(b)(10) 

(Discretionary Peg Order) to remove the text 

in subparagraph (J) that says Discretionary 

Peg orders are eligible to be invited to 

Recheck to trade against interest resting at 

the Midpoint Price and replace it with text 

saying they are eligible to be invited to 

Recheck to trade against eligible resting 

contra-side interest. As discussed above, this 

conforms to proposed changes to the Book 

Recheck rule to reflect that orders will no 

longer only be invited to recheck the Order 

Book if there is a contra-side order resting at 

the Midpoint Price. 

• Amend IEX Rule 11.190(b)(13) (Offset 

Peg Order) to remove the text in 

subparagraph (L) that provides that an Offset 

Peg order with an offset amount that results 

in a price more aggressive than the Midpoint 

Price will have the offset amount reduced so 

that the order is priced at the Midpoint Price 

until such time as the full offset amount will 

not result in the price of the order being more 

aggressive than the Midpoint Price. IEX 

further proposes to add text stating that if the 

offset amount results in a price more 

aggressive than the contra-side Protected 

Quotation, the offset amount will be reduced 

so that the order is booked and ranked on the 

Order Book non-displayed at the contra-side 

protected quotation (i.e., the NBO for buy 

orders and NBB for sell orders), unless the 

Exchange’s Best Bid (for offers) or Best Offer 

(for bids) is equal to the current NBB (for 

offers) or current NBO (for bids), in which 

case the order is booked and ranked on the 

Order Book non-displayed one (1) MPV 

below the current NBO (for bids) or one (1) 

MPV above the current NBB (for offers), as 

set forth in IEX Rule 11.190(h)(2), until such 

time as the full offset amount will not result 

in the price being more aggressive than the 

contra-side Protected Quotation. 

Additionally, as discussed above, because 

Offset Peg orders will no longer be eligible 

to be priced in sub-pennies, IEX proposes to 

remove the sentence describing how a subpenny priced order is rounded up or down. 

• Amend Supplementary Material .03 

(Minimum Quantity Orders) to specify that 

the IEX PBBO for the example is $10.01 × 

$10.03 and modify the example to specify 

that Order #4 in the example would book at 

its limit price of $10.02 (removing the text 

saying it would book at the Midpoint Price). 

Additionally, IEX proposes to reorder the 

paragraphs in the Supplementary Material 

about reserve orders such that the paragraph 

about D-Limit reserve orders is the last 

paragraph. 

• Amend IEX Rule 11.190(b)(16) 

(Corporate Discretionary Peg Order) to 

remove the text in subparagraph (J) that says 

Corporate Discretionary Peg orders are 

eligible to be invited to Recheck to trade 

against interest resting at the Midpoint Price 

and replace it with text saying they are 

eligible to be invited to Recheck to trade 

against eligible resting contra-side interest. 

As discussed above, this conforms to 

proposed changes to the Book Recheck rule 

to reflect that orders will no longer only be 

invited to recheck the Order Book if there is 

a contra-side order resting at the Midpoint 

Price. 

• Amend IEX Rule 11.190(h)(3) (Locked 

and Crossed Markets) to remove all 

references to the Midpoint Price Constraint 

and replace them with references to nondisplayed price sliding. Additionally, amend 

IEX Rule 11.190(h)(3)(D)(i) to remove the 

reference to Offset Peg orders and add 

Corporate Discretionary Peg orders to the list 

of order types for which reference to the 

Midpoint Price is relevant. 

• Amend IEX Rule 11.190(h)(4) (Short Sale 

Price Sliding) to remove subparagraph (E) 

and amend subparagraph (C) to remove 

references to displayed or displayable orders 

and the Permitted Display Price, and add a 

sentence saying that ‘‘[i]n the event the NBB 

changes such that the price of a nondisplayed Order subject to Rule 201 of 

Regulation SHO would lock or cross the 

NBB, the order will receive a new timestamp, 

and will be re-priced by the System at the 

Permitted Price.’’ These changes reflect the 

fact that without the Midpoint Price 

Constraint, IEX’s short sale price sliding rules 

no longer need to distinguish between a 

‘‘Permitted Display Price’’ and a ‘‘Permitted 

Price.’’ 

• Amend IEX Rule 11.220 (Priority of 

Orders) Supplementary Material .01 

(Surrendering Precedence) to change the 

order #4 in the example to a midpoint peg 

order, so that the example will continue to 

demonstrate how MQTY orders booked at the 

Midpoint Price surrender precedence if their 

specific conditions prevent an execution. 

• Amend IEX Rule 11.230(a)(4)(C) (Order 

Execution) to replace references to the 

Midpoint Price with references to contra-side 

Protected Quotation (i.e., the NBB or NBO), 

modify the first sentence of the subparagraph 

to specify that orders are permitted to post 

and rest non-displayed on the Order Book at 

prices that lock the protected quotation of an 

away market, so long as IEX does not have 

a protected quotation at the same price, and, 

as discussed above, delete the last sentence 

of the subparagraph that states that orders are 

never permitted to post non-displayed nor 

rest non-displayed on the Order Book at 

prices that cross contra-side liquidity. 

• Amend IEX Rule 11.230(a)(4)(D) (Book 

Recheck) to include Corporate Discretionary 

Pegs in the list of orders eligible for Book 

Recheck and update the rule citations 

accordingly. Renumber subparagraphs (v) 

and (vi) to (iv) and (v) to reflect the deletion 

of subparagraph (iv), which said Primary Peg 

orders are not eligible for Book Recheck) as 

described above. And amend IEX Rule 

11.230(a)(4)(D) Supplementary Material .01 

to modify the example to reflect that a nondisplayed limit order would be booked at its 

limit price of $10.02, not the Midpoint Price 

of $10.015. 

• Amend IEX Rule 11.231 (Regular Market 

Session Opening Process for Non-IEX-Listed 

Securities) by removing the reference to the 


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Federal Register / Vol. 87, No. 94 / Monday, May 16, 2022 / Notices 29773 

63 15 U.S.C. 78f(b). 

64 15 U.S.C. 78f(b)(5). 

65See supra note 13. 

66See supra note 13. 

67See supra note 32. 

68See supra note 35. 

69See supra note 54. 

70See supra notes 56 and 57. 

71 IEX notes that Nasdaq’s rules, while not 

explicit, appear to allow a crossed non-displayed 

order book in this particular situation. 

Midpoint Price from subparagraph (a)(v) and 

replacing it with a reference to the contraside protected quotation (i.e., the NBO for 

buy orders and NBB for sell orders). 

• Amend IEX Rule 11.340 (Compliance 

with Regulation NMS Plan to Implement a 

Tick Size Pilot) to remove the reference to the 

Midpoint Price Constraint in subparagraph 

(d)(4)(D)(ii) and replace it with a reference to 

the non-displayed price sliding rules set forth 

in IEX Rule 11.190(h)(2). 

Implementation 

This proposed rule change will be 

immediately effective upon filing, but 

subject to the thirty (30) day operative 

delay. The Exchange anticipates 

implementing the rule change within 

ninety (90) days of the effective date and 

will provide at least ten (10) days’ 

notice to Members and market 

participants of the implementation 

timeline. 

2. Statutory Basis 

The Exchange believes that this 

proposed rule change is consistent with 

Section 6(b) of the Act,63 in general, and 

furthers the objectives of Section 

6(b)(5),64 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and 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 Exchange believes 

that removing the Midpoint Price 

Constraint for non-displayed limit 

orders is consistent with the protection 

of investors and the public interest 

because it is designed to incentivize the 

entry of more aggressively priced nondisplayed limit orders, because it will 

allow Members to submit orders that are 

more likely to post at their instructed 

limit price, as opposed to being limited 

to posting no higher than the Midpoint 

Price. And these orders resting between 

the Midpoint Price and the contra-side 

Protected Quotation will trade before 

any orders resting at the Midpoint Price, 

which would enhance the aggressively 

priced orders’ execution opportunities. 

Conversely, any contra-side orders that 

match with these aggressively priced 

non-displayed limit orders will benefit 

by the ability to obtain more price 

improvement than if they had executed 

at the Midpoint Price. Thus, IEX 

believes that allowing Members more 

control over the pricing of their nondisplayed orders should both 

incentivize the submission of more 

orders to IEX (improving the overall 

liquidity profile of IEX) and offer more 

potential price improvement 

opportunities, to the benefit of all 

market participants. 

The Exchange further believes that 

removing the Midpoint Price Constraint 

and modeling its non-displayed price 

sliding rule on those of other equity 

exchanges is consistent with the Act 

because such treatment is designed to 

remove impediments to and perfect the 

mechanism of a free and open market 

and national market system by 

conforming IEX’s treatment of nondisplayed limit orders with the other 

equities exchanges.65

In addition, since this proposed rule 

change would make IEX’s nondisplayed price sliding rule consistent 

with that of the other equities 

exchanges, IEX believes that it will 

promote just and equitable principles of 

trade and foster cooperation and 

coordination with persons engaged in 

facilitating securities transactions 

because market participants will no 

longer have to potentially adjust their 

order routing strategies or trading 

algorithms to reflect that non-displayed 

limit orders are never allowed to be 

priced more aggressively than the 

Midpoint Price. 

The Exchange further believes that 

modifying its Book Recheck 

functionality and Retail Price 

Improvement program are consistent 

with the protection of investors and the 

public interest because the rule change 

is designed to increase the opportunities 

for eligible orders to execute on the 

Exchange, which inures to the benefit of 

all market participants who send orders 

to the Exchange. 

As discussed in the Purpose Section, 

each of these proposed changes is 

consistent with rules of other equities 

exchanges. Specifically: 

• As proposed, IEX will slide the price of 

a non-displayed limit order priced more 

aggressively than the contra-side Protected 

Quotation to the price of the contra-side 

Protected Question. Cboe BZX Rule 

11.9(g)(4), Nasdaq Rule 4702(b)(3)(A), and 

MIAX PEARL Rule 2614(g)(2) provide for the 

same functionality.66

• As proposed, IEX will slide the price of 

a non-displayed order that fails to match 

with a contra-side order because of the 

order’s special conditions to a price one MPV 

less aggressive than the contra-side order. 

Nasdaq Rule 4703(e) provides for the same 

functionality.67 And MIAX PEARL Rules 

2617(a)(4)(C) and (D) provide for very similar 

functionality, with the only distinction being 

that MIAX PEARL allows the minimum 

quantity order that to trade at a price 1⁄2 MPV 

less aggressive than the price of the contraside order against which it would match but 

for the minimum quantity instruction.68

• As proposed, IEX will allow resting 

orders to become active and check the Order 

Book if they become marketable against 

contra-side liquidity resting on the Order 

Book. NYSE Rules 7.37(b)(8) and (9), Nasdaq 

Rule 4702(a), and MIAX PEARL Rule 1901(a) 

provide for the same functionality.69

• As proposed, IEX will allow nondisplayed order with specific conditions that 

prevent an execution against a contra-side 

order that also has specific conditions to 

cross on the non-displayed Order Book. 

MEMX Rule 11.6(f) and MIAX PEARL Rule 

2614(c)(7)(B)(iv) provide for the same 

functionality.70

Overall, while the proposed rule 

change mirrors the functionality of 

several exchanges, IEX notes that the 

MIAX PEARL and Nasdaq rules are the 

most substantially similar to IEX’s 

proposal. Specifically, IEX’s nondisplayed price sliding rule proposal 

mirrors that of MIAX PEARL with the 

sole exception that MIAX PEARL will 

reprice a non-displayed order that 

cannot match with a contra-side order 

because of the non-displayed order’s 

minimum quantity at a price 1⁄2 of an 

MPV less aggressive than the contra-side 

order, while IEX proposes to rank the 

order at a price one MPV away from the 

price of the contra-side order. Further, 

Nasdaq’s non-displayed price sliding 

rules mirror this proposal with the 

exception that Nasdaq does not 

explicitly state that it will allow two 

non-displayed minimum quantity 

orders to cross each other on the nondisplayed order book, while IEX’s rules 

explicitly permit such a cross.71 Also, 

neither MIAX PEARL nor Nasdaq use 

identical terminology (e.g., descriptions 

of how resting orders can become active 

and check the order book for contra-side 

liquidity rather than use of the term 

‘‘recheck’’ used in IEX rules). 

IEX does not believe that these 

differences raise any new or novel 

issues, but merely reflect minor 

implementation differences. Both MIAX 

PEARL and IEX (as proposed) reprice a 

non-displayed order that cannot match 

with a contra-side order because of a 

minimum quantity, and it appears that 

both Nasdaq and IEX will allow two 

minimum quantity orders to cross each 

other on the non-displayed order book. 

Therefore, IEX does not believe that this 


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29774 Federal Register / Vol. 87, No. 94 / Monday, May 16, 2022 / Notices 

72 15 U.S.C. 78s(b)(3)(A). 

73 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) 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. 74 17 CFR 200.30–3(a)(12). 

proposal raises any new or novel issues 

that have not already been considered 

by the Commission. 

Finally, IEX believes that the 

proposed conforming changes and 

typographical corrections further the 

purposes of the Act because they 

provide greater clarity and consistency 

to the IEX Rule Book thereby reducing 

the potential for confusion by market 

participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act. 

To the contrary, the proposal is 

designed to enhance IEX’s 

competitiveness with other markets by 

adopting rules providing for more prices 

at which non-displayed limit orders can 

execute or rest on the exchange and 

allowing for more circumstances in 

which orders eligible for Recheck or 

Retail orders will be able to interact 

with these aggressively priced nondisplayed limit orders to the benefit of 

all market participants. 

The Exchange also does not believe 

that the proposed rule change will 

impose any burden on intramarket 

competition because it will apply to all 

Members in the same manner. All 

Members are eligible to enter nondisplayed limit orders and, as discussed 

in the Purpose section, all Members 

seeking a Midpoint Price may continue 

to use Discretionary Peg and Midpoint 

Peg orders which will not execute at a 

price more aggressive than the Midpoint 

Price. Moreover, the proposal would 

provide potential benefits to all 

Members to the extent that there is more 

liquidity available on IEX as a result of 

the ability to book non-displayed limit 

orders at more aggressive prices. The 

proposal is intended to incentivize the 

entry of more orders on the Exchange 

and thereby increase the likelihood of 

executions on the Exchange, which 

would benefit all market participants. 

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 

Because the foregoing 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) 72 of the Act and Rule 19b– 

4(f)(6) thereunder.73

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 rule-comments@

sec.gov. Please include File Number SR– 

IEX–2022–04 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–2022–04. This file 

number should be included in 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 will also be available for 

inspection and copying at the principal 

office 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–2022–04 and should 

be submitted on or before June 6, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.74

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–10415 Filed 5–13–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–0088, OMB Control No. 

3235–0083] 

Proposed Collection; Comment 

Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension: 

Rule 15Ba2–1 and Form MSD 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) is soliciting comments 

on the existing collection of information 

provided for in Rule 15Ba2–1 (17 CFR 

240.15Ba2–1) and Form MSD (17 CFR 

249.1100), under the Securities and 

Exchange Act of 1934 (15 U.S.C. 78a et 


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