49914 Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / Notices 

18 17 CFR 240.19b–4(f)(6). 

19 17 CFR 240.19b–4(f)(6)(iii). 

20For 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). 21 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 17 CFR 240.19b–4(f)(6)(iii). 

designated this rule filing as noncontroversial. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 18 normally does not 

become operative prior to 30 days after 

the date of the filing. However, Rule 

19b–4(f)(6)(iii) 19 permits the 

Commission to designate a shorter time 

if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposed 

rule change may become operative 

immediately upon filing. The Exchange 

notes that the proposed rule change will 

promote consistency between the 

Exchange and CBOE Affiliated 

Exchanges, and is part of a larger 

technology integration that will 

ultimately reduce complexity for Users 

of the Exchange that are also 

participants on other CBOE Affiliated 

Exchanges. 

The Commission believes that waiver 

of the 30-day operative delay is 

consistent with the protection of 

investor and the public interest. The 

Commission notes that the proposed 

rule change is based on rules of its 

affiliated exchanges, CBOE and C2, and 

thus does not raise any new or novel 

issues. Accordingly, the Commission 

hereby waives the 30-day operative 

delay and designates the proposed rule 

change as operative upon filing.20

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: (1) Necessary or appropriate in 

the public interest; (2) for the protection 

of investors; or (3) 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 

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– 

BatsEDGX–2017–39 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–BatsEDGX–2017–39. 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 Web site (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 Web site 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–BatsEDGX–2017–39 and 

should be submitted on or before 

November 17, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23373 Filed 10–26–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81922; File No. SR–IEX– 

2017–37] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Rule 

11.152 To Add Provisions Related to 

Market Maker Withdrawals of 

Quotations in Securities Listed on the 

Investors Exchange 

October 23, 2017. 

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 October 

19, 2017, 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 Substance of 

the Proposed Rule Change 

Pursuant to the provisions of Section 

19(b)(1) under the Securities Exchange 

Act of 1934 (‘‘Act’’),4 and Rule 19b–4 

thereunder,5 Investors Exchange LLC 

(‘‘IEX’’ or ‘‘Exchange’’) is filing with the 

Commission a proposed rule change to 

amend Rule 11.152 to add provisions 

related to Market Maker withdrawals of 

quotations in securities listed on IEX, 

remove an incorrect cross reference in 

paragraph (c), and to correct a 

typographical error in a cross-reference 

in paragraph (d). The Exchange has 

designated this proposal as ‘‘noncontroversial’’ and provided the 

Commission with the notice required by 

Rule 19b–4(f)(6)(iii) under the Act.6 The 

text of the proposed rule change is 

available at the Exchange’s Web site 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 


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7As defined by Regulation NMS Rule 600(b)(42). 

17 CFR 242.600. 

8Note, as described further below, the Exchange 

proposes to delete the final clause of this provision, 

which provides an exception for a trading halt 

initiated for Market Makers pursuant to IEX Rule 

11.280. IEX Rule 11.280 (Limit Up-Limit Down Plan 

and Trading Halts), does not include a provision 

regarding a halt for Market Makers, and thus the 

cross-reference has no practical effect. 

9However, if IEX finds that the IEX Market 

Maker’s failure to maintain a clearing arrangement 

is voluntary, the withdrawal of quotations will be 

considered voluntary and unexcused. 

10Such circumstances would include, without 

limitation, unpredictable events such as jury duty, 

bomb threats or other physical security issues, the 

birth of a child, or sudden illness. 

11Such requirements would include, for example, 

possession of material nonpublic information 

regarding the security in question for which the 

Market Maker is seeking excused withdrawal status. 

12 In the event that FINRA’s definition of a ‘‘Small 

Firm Member’’ is changed, IEX will file a rule 

change to address any such change in proposed 

Rule 11.152(c)(1)(C). 

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 [sic] 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 

Background 

On June 17, 2016, the Commission 

granted IEX’s application for registration 

as a national securities exchange under 

Section 6 of the Act including approval 

of rules applicable to the qualification, 

listing and delisting of companies on 

the Exchange. The Exchange plans to 

begin a listing program in the fourth 

quarter of 2017 and is proposing to 

amend Rule 11.152 to add provisions 

related to Market Maker withdrawals of 

quotations in securities listed on IEX. 

IEX Rules 11.150 through 11.154 

contain provisions applicable to IEX 

Market Makers, including registration, 

quotation obligations, withdrawal of 

quotations, voluntary termination of 

registration, and suspension and 

termination of quotations. Pursuant to 

Rule 11.151 a Member registered as a 

Market Maker is required to maintain a 

two-sided quotation within the 

designated percentage of the National 

Best Bid (‘‘NBB’’) and National Best 

Offer (‘‘NBO’’),7 as appropriate. 

IEX Rule 11.152 governs the 

requirements for a Market Maker to 

obtain excused withdrawal status 

thereby temporarily suspending its 

obligation to comply with the two-sided 

quotation obligation of Rule 11.151. 

Specifically, Rule 11.152 provides the 

ability for a Market Maker to obtain 

excused withdrawal status under the 

following circumstances: 

• Systemic equipment problems—An 

IEX Market Maker that wishes to obtain 

excused withdrawal status based on a 

market maker’s systemic equipment 

problems, such as defects in an IEX 

Market Maker’s software or hardware 

systems or connectivity problems 

associated with the circuits connecting 

Exchange systems with the IEX Market 

Maker’s systems, shall contact IEX 

Market Operations. IEX Market 

Operations may grant excused 

withdrawal status based on systemic 

equipment problems for up to five (5) 

business days, unless extended by IEX 

Market Operations. 

• For securities listed on exchanges 

other than IEX—An IEX Market Maker 

that wishes to withdraw quotations 

shall contact IEX Regulation to obtain 

excused withdrawal status prior to 

withdrawing its quotations. Excused 

withdrawal status based on illness, 

vacations or physical circumstances 

beyond the Market Maker’s control may 

be granted for up to five (5) business 

days, unless extended by IEX 

Regulation. Excused withdrawal status 

based on investment activity or advice 

of legal counsel, accompanied by a 

representation that the condition 

necessitating the withdrawal of 

quotations is not permanent in nature, 

may, upon written request, be granted 

for not more than sixty (60) days. The 

withdrawal of quotations because of 

pending news, a sudden influx of orders 

or price changes, or to effect 

transactions with competitors shall not 

normally constitute acceptable reasons 

for granting excused withdrawal status, 

unless IEX has initiated a trading halt 

for Market Makers in the security, 

pursuant to IEX Rule 11.280.8

• Failure to maintain a clearing 

arrangement—Excused withdrawal 

status may be granted to an IEX Market 

Maker that fails to maintain a clearing 

arrangement with a registered clearing 

agency or with a Member of such an 

agency and is withdrawn from 

participation in the trade reporting 

service of the Exchange, thereby 

terminating its registration as an IEX 

Market Maker.9

Other than for systemic equipment 

problems, a Market Maker that wishes to 

withdraw quotations in a security shall 

contact IEX Regulation to obtain 

excused withdrawal status prior to 

withdrawing its quotations. 

Withdrawals of quotations shall be 

granted by IEX Regulation only upon 

satisfying one of the conditions 

specified in Rule 11.152, as described 

above. 

Proposed Rule Change 

IEX proposes to amend paragraph (c) 

of Rule 11.152 to add provisions for a 

Market Maker to obtain excused 

withdrawal status for securities listed 

on IEX. As proposed, a Market Maker in 

a security listed on IEX may obtain 

excused withdrawal status, thereby 

temporarily suspending its obligation to 

comply with the two-sided quotation 

obligation of Rule 11.151, under the 

following circumstances: 

• Circumstances beyond the Market 

Maker’s control—Excused withdrawal 

status based on circumstances beyond 

the IEX Market Maker’s control,10 other 

than systemic equipment problems, may 

be granted for up to five (5) business 

days, unless extended by IEX 

Regulation. 

• Legal or regulatory requirements— 

Excused withdrawal status based on 

demonstrated legal or regulatory 

requirements,11 supported by 

appropriate documentation and 

accompanied by a representation that 

the condition necessitating the 

withdrawal of quotations is not 

permanent in nature, may, upon 

notification, be granted for not more 

than sixty (60) days (unless such request 

is required to be made pursuant to 

proposed amendments to paragraph (e) 

related to the Member that operates the 

Market Maker acting as a manager, 

distribution participant or affiliated 

purchaser of a distribution in the 

security for which it seeks excused 

withdrawal status). 

• Religious holidays—Excused 

withdrawal status based on religious 

holidays may be granted only if written 

notice is received by IEX one business 

day in advance and is approved by IEX. 

• Vacation—Excused withdrawal 

status based on vacation may be granted 

only if: (A) The written request for 

withdrawal is received by IEX one 

business day in advance, and is 

approved by IEX; (B) The request 

includes a list of securities for which 

withdrawal is requested; and (C) The 

request is made by an IEX Market Maker 

that meets the definition of a ‘‘Small 

Firm Member’’ pursuant to Definition Y 

of the FINRA Restated Certification of 

Incorporation, even if the IEX Market 

Maker is not a FINRA member.12

As proposed, the withdrawal of 

quotations because of pending news, a 

sudden influx of orders or price 


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13The Exchange notes that this provision was 

inadvertently included in the Exchange’s original 

rule set, and is substantially similar to Nasdaq Rule 

4619(c)(2), which provides an identical exception 

for a trading halt initiated for Nasdaq market 

makers pursuant to Nasdaq Rule 4120. 

14 17 CFR 242.103. 

15 15 U.S.C. 78f. 

16 15 U.S.C. 78f(b)(5). 

changes, or to effect transactions with 

competitors shall not constitute 

acceptable reasons for granting excused 

withdrawal status. 

The Exchange also proposes to amend 

paragraph (e) of Rule 11.152, which is 

currently reserved, to add provisions to 

provide that excused withdrawal status 

may be granted to an IEX Market Maker 

that is a distribution participant or an 

affiliated purchaser in order to comply 

with SEC Rule 101 or 104 under the Act. 

As proposed, such excused withdrawal 

status may be granted under the 

following conditions: 

• Subparagraph (e)(1) of Rule 11.152 

provides that a member acting as a 

manager (or in a similar capacity) of a 

distribution of a security that is a 

subject security or reference security 

under SEC Rule 101 and any member 

that is a distribution participant or an 

affiliated purchaser in such a 

distribution that does not have a 

manager shall provide written notice to 

IEX Regulation and the Market 

Regulation Department of FINRA no 

later than the business day prior to the 

first entire trading session of the oneday or five-day restricted period under 

SEC Rule 101, unless later notification 

is necessary under the specific 

circumstances. 

Æ The notice required by 

subparagraph (e)(1) shall be provided by 

submitting a completed Underwriting 

Activity Report that includes a request 

on behalf of each IEX Market Maker that 

is a distribution participant or an 

affiliated purchaser to withdraw the IEX 

Market Maker’s quotations and includes 

the contemplated date and time of the 

commencement of the restricted period. 

Æ The managing underwriter shall 

advise each IEX Market Maker that it 

has been identified as a distribution 

participant or an affiliated purchaser to 

IEX Regulation and that its quotations 

will be automatically withdrawn, unless 

a market maker that is a distribution 

participant (or an affiliated purchaser of 

a distribution participant) notifies IEX 

Regulation as required by subparagraph 

(e)(2) of Rule 11.152 of its intention not 

to participate in the prospective 

distribution in order to avoid having its 

quotations withdrawn. Further, 

subparagraph (e)(3) provides that if an 

IEX Market Maker that is a distribution 

participant withdraws its quotations in 

an IEX-listed security in order to 

comply with any provision of SEC Rules 

101 or 104 and promptly notifies IEX 

Regulation of its action, the withdrawal 

shall be deemed an excused withdrawal. 

In addition, subparagraph (e)(3) 

provides that nothing in the 

subparagraph shall prohibit IEX from 

taking such action as is necessary under 

the circumstances against a Member and 

its associated persons for failure to 

contact IEX Regulation to obtain an 

excused withdrawal as required by 

subparagraphs (a) and (e) of Rule 

11.152. 

Æ Subparagraph (e)(5) of Rule 11.152 

provides that a member acting as a 

manager (or in a similar capacity of a 

distribution subject to subparagraph 

(e)(1)) of Rule 11.152 shall submit a 

request on the Underwriting Activity 

Report to IEX Regulation and the Market 

Regulation Department of FINRA to 

rescind the excused withdrawal status 

of distribution participants and 

affiliated purchasers, which request 

shall include the date and time of the 

pricing of the offering, the offering 

price, and the time the offering 

terminated, and, if not in writing, shall 

be confirmed in writing no later than 

the close of business the day the offering 

terminates. 

As noted above, the Exchange 

proposes to delete the final clause of the 

final sentence in Rule 11.152(c) 

(described above), which states that the 

withdrawal of quotations because of 

pending news, a sudden influx of orders 

or price changes, or to effect 

transactions with competitors shall not 

normally constitute acceptable reasons 

for granting excused withdrawal status, 

but provides an exception for a trading 

halt initiated for Market Makers 

pursuant to IEX Rule 11.280. IEX Rule 

11.280 (Limit Up-Limit Down Plan and 

Trading Halts), does not include a 

provision granting the Exchange 

authority to halt trading for Market 

Makers, and thus the cross-reference has 

no practical effect.13 The Exchange 

further proposes to make a conforming 

change to the preceding clause of the 

final sentence in Rule 11.152(c), to 

remove the qualifying term ‘‘normally’’ 

with regard to the circumstances that 

will not constitute acceptable reasons 

for granting excused withdrawal status, 

because such qualification is no longer 

necessary or applicable after the 

Exchange removed the exception for a 

trading halt initiated for Market Makers, 

as described above. The proposed 

deletion is designed to avoid any 

potential confusion amongst market 

makers regarding the reasons the 

Exchange would find acceptable for 

granting excused withdrawal status, and 

make the Exchanges rules more clear, 

concise, and accurate. Moreover, 

pursuant to Rule 11.151(a)(2), in the 

event a security is subject to a trading 

halt, the Market Maker’s pricing 

obligations are suspended, and do not 

re-commence until after the first regular 

way transaction on the primary listing 

market in the security following such 

halt, as reported by the responsible 

single plan processor. 

Finally, IEX proposes to correct a 

typographical [sic] in a cross-reference 

in paragraph (d) of Rule 11.152. As 

described above, paragraph (d) provides 

that excused withdrawal status may be 

granted to an IEX Market Maker that 

fails to maintain a clearing arrangement 

with a registered clearing agency or with 

a Member of such an agency and is 

withdrawn from participation in the 

trade reporting service of the Exchange, 

thereby terminating its registration as an 

IEX Market Maker. Paragraph (d) also 

provides that if IEX finds that the 

Market Maker’s failure to maintain a 

clearance arrangement is voluntary, the 

withdrawal of quotations will be 

considered voluntary and unexcused 

pursuant to Rule 2.190. However, the 

reference to Rule 2.190 is incorrect and 

should instead reference Rule 11.153 

which provides that a Market Maker 

may voluntarily terminate its 

registration in a security by 

withdrawing its two-sided quotation 

from the Exchange, and also describes 

the timeframes for registration after such 

a termination, including in the case of 

failure to maintain a clearance 

arrangement. Rule 2.190 governs 

voluntary termination of rights as a 

Member, which is not relevant to the 

provisions of paragraph (d), which 

relate to treating a voluntary failure to 

maintain a clearance arrangement as a 

voluntary termination of Market Maker 

registration. Accordingly, the Exchange 

proposes to correct this typographical 

error. 

As proposed, the amendments to IEX 

Rule 11.152 would substantially 

conform the Rule to Nasdaq Stock 

Market LLC (‘‘Nasdaq’’) Rule 4619, with 

minor nonsubstantive differences in 

terminology. Further, the proposed 

changes to IEX Rule 11.152(e) do not 

include provisions for passive market 

making pursuant to Rule 103 of 

Regulation M, which only applies to 

Nasdaq registered market makers.14

2. Statutory Basis 

IEX believes that the proposed rule 

change is consistent with the provisions 

of Section 6 of the Act 15 in general, and 

furthers the objectives of Section 

6(b)(5) 16 of the Act in particular, in that 


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17Securities Exchange Act Release No. 34–38067 

(January 3, 1997), 62 FR 520 (File No. S7–11–96). 

it is designed to prevent fraudulent and 

manipulative acts and practices, 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. The 

Exchange believes that the proposed 

rule change supports these objectives 

because it is designed to provide 

appropriate, objective and transparent 

criteria for an IEX Market Maker in 

securities listed on IEX to withdraw its 

quotations and obtain excused 

withdrawal status. The Exchange further 

believes that the proposed rule change 

is consistent with the protection of 

investors and the public interest 

because the criteria to obtain excused 

withdrawal status accommodate 

legitimate issues that may be 

periodically encountered by IEX Market 

Makers that warrant an excused 

withdrawal, and are not designed to 

enable IEX Market Makers to avoid or 

circumvent their market making 

obligations through inappropriate 

excused withdrawals. The proposed 

changes to IEX Rule 11.152 are 

substantially similar to existing 

provisions of Nasdaq Rule 4619, subject 

to several minor differences described 

below. Thus, the Exchange does not 

believe that this rule change raises any 

new or novel issues not already 

considered by the Commission. Further, 

the Exchange believes that the proposed 

rule change is reasonable, equitable, and 

not unfairly discriminatory because all 

IEX Market Makers will be subject to the 

same requirements for excused 

withdrawals in securities listed on IEX. 

Specifically, the Exchange believes 

that it is consistent with the protection 

of investors and the public interest to 

allow a Market Maker to obtain excused 

withdrawal status based on 

circumstances outside the Market 

Maker’s control for up to five business 

days, unless extended by IEX 

Regulation, to provide appropriate 

accommodation for unpredictable 

events such as jury duty, bomb threats 

or other physical security issues, the 

birth of a child, or sudden illness. While 

the Exchange anticipates that Market 

Makers will utilize automated 

algorithms and other systemic tools to 

comply with the applicable quoting 

requirements, such systemic tools 

nonetheless must be overseen by one or 

more individuals who may experience 

unpredictable events that require time 

off. The Exchange believes that the 

permitted time period of up to five 

business days, unless extended, is 

reasonable and comports with the 

length of time that unpredictable events 

generally last. The proposed 

amendments to Rule 11.152(c) in this 

regard are substantially identical to 

Nasdaq Rule 4619 (c) except for 

nonsubstantive terminology differences 

to refer to IEX rather than Nasdaq. 

The Exchange additionally believes 

that it is consistent with the protection 

of investors and the public interest to 

allow a Market Maker to obtain excused 

withdrawal status based on 

demonstrated legal or regulatory 

requirements, for not more than 60 days, 

as described in the Purpose section to 

provide appropriate relief when a 

Market Maker is prohibited from trading 

in a particular security, such as if a 

Market Maker is in possession of 

material nonpublic information 

regarding a security in which it is 

registered. The Exchange believes that 

60 days is a reasonable amount of time 

for the legal or regulatory requirement to 

be resolved, and that if it persists 

beyond that time period it would be 

appropriate for the Market Maker to 

terminate its registration in the security 

in question. The proposed amendments 

to Rule 11.152(c) in this regard are 

substantially identical to Nasdaq Rule 

4619(c) except for nonsubstantive 

terminology differences to refer to IEX 

rather than Nasdaq. 

The Exchange also believes that it is 

consistent with the protection of 

investors and the public interest to 

allow a Market Maker to obtain excused 

withdrawal status based on religious 

holidays to provide for such 

observances by the individual(s) 

overseeing Market Maker systemic tools 

in the case of religious holidays when 

IEX is open. The proposed amendments 

to Rule 11.152(c) in this regard are 

substantially identical to Nasdaq Rule 

4619(c) except for nonsubstantive 

terminology differences to refer to IEX 

rather than Nasdaq. 

The Exchange further believes that it 

is consistent with the protection of 

investors and the public interest to 

allow a Market Maker to obtain excused 

withdrawal status based on vacation, 

but to limit such excused withdrawals 

to the circumstances described in the 

Purpose section, including that the 

Market Maker meets the definition of a 

FINRA Small Firm Member, even if the 

IEX Market Maker is not a FINRA 

member. The Exchange believes that 

Market Makers should generally be able 

to manage staff vacations so that it can 

oversee its market making activity, but 

recognizes that smaller firms may not 

have adequate staff in this regard. The 

Exchange notes that Nasdaq Rule 4619 

provides similar relief for vacations, but 

limits such relief to a market maker with 

three or fewer Nasdaq level 3 terminals, 

which it believes is designed to 

similarly identify smaller firms. Since 

IEX Market Makers will not use Nasdaq 

terminals to connect to IEX, the 

Exchange believes that reference to the 

FINRA definition of a Small Member 

Firm is an appropriate alternative 

measure to account for smaller firms 

that serve as IEX Market Makers. Other 

than this difference, the proposed 

amendments to Rule 11.152(c) in this 

regard are substantially identical to 

Nasdaq Rule 4619(c) except for 

nonsubstantive terminology differences 

to refer to IEX rather than Nasdaq. 

Further, the Exchange believes that it 

is consistent with the protection of 

investors and the public interest to 

allow a Market Maker to obtain excused 

withdrawal status in order to comply 

with SEC Rule 101 or 104 under the Act 

on the conditions described in the 

Purpose section. The Exchange notes 

that Rules 101 and 104 are part of 

Regulation M, which governs the 

activities of underwriters, issuers, 

selling security holders, and others in 

connection with offerings of securities, 

and is intended to preclude 

manipulative conduct by persons with 

an interest in the outcome of an 

offering.17 The proposed amendments to 

IEX Rule 11.152(e) are designed to 

facilitate IEX Market Makers’ 

compliance with SEC Rules 101 and 104 

and support the objectives of Regulation 

M generally. The proposed changes to 

IEX Rule 11.152(e) in this regard are 

substantially identical to Nasdaq Rule 

4619(e) except that they do not include 

provisions for passive market making 

pursuant to Rule 103 of Regulation M, 

which only applies to Nasdaq registered 

market makers, as discussed in the 

Purpose section. 

In addition, the Exchange believes 

that it is consistent with the Act to 

delete the final clause of Rule 11.152(c), 

as well as the related qualifying 

language in the preceding clause, 

because the proposed deletion is 

designed to avoid any potential 

confusion amongst market makers 

regarding the reasons the Exchange 

would find acceptable for granting 

excused withdrawal status, and make 

the Exchanges rules more clear, concise, 

and accurate. 

Finally, the Exchange believes that it 

is consistent with the Act to correct the 

cross-reference typographical error in 

paragraph (d) of Rule 11.152 to promote 

clarity and consistency among market 

participants thereby facilitating investor 

protection and the public interest. The 


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18 15 U.S.C. 78s(b)(3)(A). 

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

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

20 17 CFR 240.19b–4(f)(6). 

21 17 CFR 240.19b–4(f)(6)(iii). 

22For 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). 23 17 CFR 200.30–3(a)(12). 

corrected cross-reference is substantially 

identical to the cross reference in 

Nasdaq Rule 4619(d) to Nasdaq Rule 

4620, which in turn is substantially 

identical to IEX Rule 11.153. 

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. The 

proposed rule change is designed to 

provide appropriate, objective and 

transparent criteria for Market Maker 

excused withdrawals in securities listed 

on IEX. The Exchange does not believe 

that the proposed rule change will result 

in any burden on intramarket 

competition because all Market Makers 

will be subject to the same criteria. The 

Exchange also does not believe that the 

proposed rule change will result in any 

burden on intermarket competition, 

since Nasdaq has substantially similar 

criteria for excused withdrawals and 

other exchanges are free to adopt 

comparable criteria. The Exchange also 

believes that the proposed rule change 

will serve to promote clarity and 

consistency, as noted in the Statutory 

Basis section, thereby reducing burdens 

on competition and facilitating investor 

protection. 

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 proposed rule change 

does not (i) significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 18 and Rule 19b–4(f)(6) 

thereunder.19

A proposed rule change filed under 

Rule 19b–4(f)(6) 20 normally does not 

become operative for 30 days after the 

date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii),21 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The 

Commission believes that waiver of the 

operative delay is consistent with the 

protection of investors and the public 

interest because the Exchange’s 

proposed rule change will conform 

IEX’s rules to a substantially similar 

provision in the rules of Nasdaq, and 

the Exchange’s proposal does not raise 

any new or novel issues. Accordingly, 

the Commission hereby waives the 30- 

day operative delay requirement and 

designates the proposed rule change as 

operative upon filing.22

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 

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–2017–37 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–2017–37. 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 Web site (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 Web site 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–IEX–2017–37, and should 

be submitted on or before November 17, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–23375 Filed 10–26–17; 8:45 am] 

BILLING CODE 8011–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No. SSA 2017–0010] 

Privacy Act of 1974, as Amended; 

Computer Matching Program (SSA/the 

Department of Labor (DOL)—Match 

Number 1003) 

AGENCY: Social Security Administration 

(SSA). 

ACTION: Notice of a renewal of an 

existing computer matching program 

that will expire on May 24, 2017. 

SUMMARY: In accordance with the 

provisions of the Privacy Act, as 


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