Document ID: SEC-2023-1170-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Investors Exchange, LLC
Posted Date: 2023-10-04T04:00Z

[Federal Register Volume 88, Number 191 (Wednesday, October 4, 2023)]
[Notices]
[Pages 68844-68846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21932]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98583; File No. SR-IEX-2023-09]

Self-Regulatory Organizations; Investors Exchange LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Correct 
Six Typographical Cross-Reference Errors in IEX Rule 11.190(b)

September 28, 2023.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on September 22, 2023, the Investors Exchange LLC (``IEX'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Pursuant to the provisions of Section 19(b)(1) under the Act,\3\ 
and Rule 19b-4 thereunder,\4\ the Exchange is filing with the 
Commission a proposed rule change to correct six typographical cross-
reference errors in IEX Rule 11.190(b). The Exchange has designated 
this rule change as ``non-controversial'' under Section 19(b)(3)(A) of 
the Act \5\ and provided the Commission with the notice required by 
Rule 19b-4(f)(6) thereunder.\6\
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    \3\ 15 U.S.C. 78s(b)(1).
    \4\ 17 CFR 240.19b-4.
    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4.
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    The text of the proposed rule change is available at the Exchange's 
website at www.iextrading.com, at the principal office of the Exchange, 
and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of and basis for the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below.

[[Page 68845]]

The self-regulatory organization has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange makes this filing to correct six inadvertent and 
identical typographical cross-reference errors in IEX Rule 11.190(b). 
Specifically, the definitions of the Primary Peg,\7\ Midpoint Peg,\8\ 
Discretionary Peg,\9\ Offset Peg,\10\ Corporate Discretionary Peg,\11\ 
and Fixed Midpoint Peg \12\ order types all contain cross-references to 
IEX Rule 11.190(a)(3)(D) to describe how the System \13\ handles a 
pegged order marked with a Time-in-Force \14\ (``TIF'') of ``DAY'' that 
is submitted before, during, or after the Regular Market Session.\15\ 
However, the order type definitions should instead cross-reference IEX 
Rule 11.190(a)(3)(E)(iii), which contains the relevant text. 
Notwithstanding the cross-reference errors, the rules describing the 
six pegged order types in question each accurately set forth how an 
order with a TIF of DAY is handled by the System.
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    \7\ See IEX Rule 11.190(b)(8)(F).
    \8\ See IEX Rule 11.190(b)(9)(F).
    \9\ See IEX Rule 11.190(b)(10)(F).
    \10\ See IEX Rule 11.190(b)(13)(F).
    \11\ See IEX Rule 11.190(b)(16)(F).
    \12\ See IEX Rule 11.190(b)(19)(F).
    \13\ See IEX Rule 1.160(nn).
    \14\ See IEX Rule 11.190(c).
    \15\ See IEX Rule 1.160(gg).
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    Specifically, each rule states the following with respect to a 
pegged order marked with a TIF of DAY: the order is eligible to trade 
only during the Regular Market Session, if submitted to the System 
before the opening of the Regular Market Session will be queued by the 
System until the start of the Regular Market Session, and if submitted 
into the System after the closing of the Regular Market Session will be 
rejected.\16\ This language is functionally identical to the 
description in IEX Rule 11.190(a)(3)(E)(iii) of how a pegged order with 
a TIF of DAY functions before, during, and after the Regular Market 
Session:
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    \16\ See IEX Rules 11.190(b)(8)(F); 11.190(b)(9)(F); 
11.190(b)(10)(F); 11.190(b)(13)(F); 11.190(b)(16)(F); and 
11.190(b)(19)(F).

    Pegged orders marked DAY submitted before the open of the 
Regular Market Session are queued by the System until the Regular 
Market Session Opening Process, pursuant to IEX Rule 11.231. Pegged 
orders marked DAY submitted during the Regular Market Session are 
accepted and begin trading immediately. Pegged orders entered into 
the System marked DAY, if not fully executed or canceled by the 
User, expire at the end of the Regular Market Session. Pegged orders 
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marked DAY are rejected during the Post-Market Session.

    IEX therefore proposes to amend subparagraph (F) of IEX Rules 
11.190(b)(8), 11.190(b)(9), 11.190(b)(10), 11.190(b)(13), 
11.190(b)(16), and 11.190(b)(19) from starting ``As provided in IEX 
Rule 11.190(a)(3)(D) . . .'' to instead begin with ``As provided in IEX 
Rule 11.190(a)(3)(E)(iii). . . .'' IEX notes that correcting this 
cross-reference in the six affected order type definitions will not 
substantively change the meaning of each rule, because everything but 
the rule cross-references in these subparagraphs IEX accurately 
describes the manner in which the System handles a pegged order with a 
TIF of DAY that is submitted before, during, and after the Regular 
Market Session. And the incorrect cross-reference to IEX Rule 
11.190(a)(3)(D) contains an unrelated provision that states that a 
pegged order may be submitted with or without a limit price and 
therefore does not change the meaning of the IEX Rules 11.190(b)(8), 
11.190(b)(9), 11.190(b)(10), 11.190(b)(13), 11.190(b)(16), and 
11.190(b)(19).
2. Statutory Basis
    IEX believes that the proposed rule change is consistent with the 
provisions of Section 6(b) \17\ of the Act in general, and furthers the 
objectives of Section 6(b)(1) of the Act \18\ in particular, in that it 
is designed to enforce compliance by the Exchange's Members \19\ and 
persons associated with its Members, with the provisions of the rules 
of the Exchange. In particular, the Exchange believes that the proposed 
rule change will provide greater clarity to Members and the public 
regarding the Exchange's rules by correcting six inadvertent and 
identical typographical cross-referencing errors without changing their 
substance and providing consistency within the Exchange's Rulebook.
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    \17\ 15 U.S.C. 78f.
    \18\ 15 U.S.C. 78f(b)(1).
    \19\ See IEX Rule 1.160(s).
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    As described in the Purpose section, the rules describing the six 
pegged order types accurately describe how the System handles a pegged 
order with a TIF of DAY that is submitted before, during, and after the 
Regular Market Session. This rule filing does not propose any 
substantive changes to the functionality of the pegged order types; it 
merely proposes to correct cross-references within such rules. The 
proposed changes will also make it easier for Members to interpret the 
Exchange's Rulebook.

B. Self-Regulatory Organization's Statement on Burden on Competition

    IEX does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. As described in the Purpose and 
Statutory Basis sections, this rule filing merely proposes to correct 
cross-references in six IEX rules that describe pegged order type 
functionality, and would not make any substantive changes to the 
functionality of the pegged order types. The proposed rule change is 
not designed to address any competitive issues but rather to correct 
six inadvertent and identical typographical errors, thereby eliminating 
any potential confusion regarding such rule provisions without changing 
their substance.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has designated this rule filing as non-controversial 
under Section 19(b)(3)(A) \20\ of the Act and Rule 19b-4(f)(6) \21\ 
thereunder. Because the proposed rule change does not: (i) 
significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \22\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\23\ the Commission 
may designate a shorter time if such action is consistent with the

[[Page 68846]]

protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay because this rule 
filing merely corrects typographical errors for which the rest of the 
rule is otherwise clear. Therefore, IEX believes there is no need to 
delay implementation of this rule change, so that the Exchange may 
promptly correct these typographical errors and avoid any potential 
confusion on the part of market participants. For these reasons, and 
because the proposed rule change does not raise any novel legal or 
regulatory issues, the Commission believes that waiving the 30-day 
operative delay is consistent with the protection of investors and the 
public interest. Therefore, the Commission hereby waives the 30-day 
operative delay and designates the proposal operative upon filing.\24\
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    \22\ 17 CFR 240.19b-4(f)(6).
    \23\ 17 CFR 240.19b-4(f)(6)(iii).
    \24\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \25\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \25\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-IEX-2023-09 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-IEX-2023-09. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions. You should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-IEX-2023-09 and should be 
submitted on or before October 25, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-21932 Filed 10-3-23; 8:45 am]
BILLING CODE 8011-01-P