Notice2023-22008
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Implementation Date of Its New Fixed Midpoint Peg Order Type
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 4, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 191 (Wednesday, October 4, 2023)</title>
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[Federal Register Volume 88, Number 191 (Wednesday, October 4, 2023)]
[Notices]
[Pages 68790-68791]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-22008]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98645; File No. SR-IEX-2023-11]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Extend
the Implementation Date of Its New Fixed Midpoint Peg Order Type
September 29, 2023.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on September 28, 2023, the Investors Exchange LLC (``IEX''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Pursuant to the provisions of Section 19(b)(1) under the Act,\4\
and Rule 19b-4 thereunder,\5\ IEX is filing with the Commission a
proposal to extend the implementation date of its new fixed midpoint
peg order type in advance of a potential partial shutdown of the
federal government. The Exchange has designated this proposal as non-
controversial under Section 19(b)(3)(A) of the Act \6\ and provided the
Commission with the notice required by Rule 19b-4(f)(6)(iii) under the
Act.\7\
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\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6)(iii).
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The text of the proposed rule change is available at the Exchange's
website at <a href="http://www.iextrading.com">www.iextrading.com</a>, at the principal office of the Exchange,
and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
IEX is filing this proposal to extend the implementation date of
its new fixed midpoint peg order type,\8\ which is designed to peg to
the less aggressive of the order's limit price or the Midpoint
Price,\9\ but does not re-reprice based on changes to the NBBO.\10\ IEX
filed the immediately effective rule change on July 19, 2023, and it
was published in the Federal Register on August 7, 2023 (``Original
Rule Filing'').\11\ Pursuant to the Original Rule Filing, the fixed
midpoint peg order type is currently scheduled to be implemented within
90 days of the July 19, 2023 filing date, i.e., on or before October
17, 2023.
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\8\ See IEX Rule 11.190(b)(19).
\9\ See IEX Rule 1.160(t).
\10\ See IEX Rule 1.160(u).
\11\ See Securities Exchange Act Release No. 98035 (August 1,
2023), 88 FR 52233 (August 7, 2023) (SR-IEX-2023-06).
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The Exchange anticipates that the technical changes necessary to
implement the fixed midpoint peg order type should be completed in time
to enable implementation on or before October 17, 2023. However,
unforeseen delays may require that IEX extend the implementation date a
few weeks beyond October 17, 2023. IEX understands that as of September
26, 2023, there is a meaningful possibility of a partial federal
government shutdown starting on October 1, 2023. IEX also understands
that during a partial federal government shutdown, the Commission will
not be able to accept and publish rule change proposal filings.\12\
Thus, in advance of the potential partial federal government shutdown,
and in an abundance of caution in case IEX requires a few additional
weeks to implement the fixed midpoint peg order type, IEX now proposes
to extend the October 17, 2023 implementation deadline to November 30,
2023.
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\12\ See Jeff Stein, et al., ``A federal government shutdown
looks more and more likely: what to know,'' The Washington Post,
September 26, 2023.
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IEX will still announce the implementation date by Trading Alert at
least ten (10) days in advance of such implementation date. Besides the
implementation date, the Exchange is not proposing to make any changes
to the terms of the Original Rule Filing.
2. Statutory Basis
IEX believes that its proposal is consistent with the provisions of
Section 6(b) of the Act \13\ in general, and with Section 6(b)(5) of
the Act,\14\ in particular, in that it is designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, to protect investors and the public interest. Specifically,
the proposal is consistent with the Act because it will allow the
Exchange to complete technical changes necessary to implement the fixed
midpoint peg order type in a thorough and risk averse manner, thereby
protecting investors. By making this filing in advance of a potential
partial federal government shutdown, IEX is ensuring it will have the
necessary time to implement the order type even if the federal
government is partially shutdown.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
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Further, the ten (10) days' notice to market participants of the
implementation date for the fixed midpoint peg order type is consistent
with the Act because it will provide appropriate transparency to market
participants and the Commission regarding the change. Finally, as noted
in the Purpose section, the Exchange is not proposing to make any
changes to the terms of the Original Rule Filing other than the
implementation date.
[[Page 68791]]
B. Self-Regulatory Organization's Statement on Burden on Competition
IEX does not believe that the proposal will result in any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. As explained above, the purpose of this proposal
is to modify the timing of the planned implementation of a new fixed
midpoint peg order type with appropriate notice to inform market
participants and the Commission of the change. The implementation delay
will impact all market participants equally. The Exchange does not
expect the implementation date change to place any burden on
competition. Rather, postponing implementation will allow the Exchange
to implement the original rule change in a thorough and risk averse
manner and is not designed for any competitive purpose.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \15\ and Rule 19b-4(f)(6) \16\ thereunder.
Because the proposed rule change does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, if consistent with the protection of
investors and the public interest, it has become effective pursuant to
Section 19(b)(3)(A) of the Act \17\ and Rule 19b-4(f)(6)
thereunder.\18\
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6).
\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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The Exchange believes that the proposed rule change meets the
criteria of subparagraph (f)(6) of Rule 19b-4 \19\ because it would not
significantly affect the protection of investors or the public interest
in that it is designed to allow the Exchange to complete technical
changes necessary to implement the original rule change in a thorough
and risk adverse manner, thereby protecting investors. Accordingly, the
Exchange believes that this proposal is noncontroversial and satisfies
the requirements of Rule 19b-4(f)(6).\20\
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\19\ 17 CFR 240.19b-4(f)(6).
\20\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \21\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\22\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay. Waiving the 30-day
delay in this manner would permit the Exchange to implement the
proposal prior to expiration of the latest implementation date to the
original rule change, thereby avoiding any potential confusion on the
part of market participants or the Commission as to when the original
rule change will be implemented. For these reasons, and because the
proposed rule change does not raise any novel legal or regulatory
issues, the Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest.
Therefore, the Commission hereby waives the 30-day operative delay and
designates the proposal operative upon filing.\23\
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\21\ 17 CFR 240.19b-4(f)(6).
\22\ 17 CFR 240.19b-4(f)(6)(iii).
\23\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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) of the Act \24\ to determine whether the proposed
rule change should be approved or disapproved.
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\24\ 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
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#5321263f367e303c3e3e363d2720132036307d343c25"><span class="__cf_email__" data-cfemail="aedcdbc2cb83cdc1c3c3cbc0daddeeddcbcd80c9c1d8">[email protected]</span></a>. Please include
file number SR-IEX-2023-11 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-IEX-2023-11. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-IEX-2023-11 and should be
submitted on or before October 25, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-22008 Filed 10-3-23; 8:45 am]
BILLING CODE 8011-01-P
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