Notice2024-00285
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Correct Six Typographical Citation and Cross-Reference Errors in the IEX Rule Book
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
January 10, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 7 (Wednesday, January 10, 2024)</title>
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[Federal Register Volume 89, Number 7 (Wednesday, January 10, 2024)]
[Notices]
[Pages 1604-1606]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-00285]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99274; File No. SR-IEX-2023-14]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Correct
Six Typographical Citation and Cross-Reference Errors in the IEX Rule
Book
January 4, 2024.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on December 22, 2023, Investors Exchange LLC (``IEX'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Pursuant to the provisions of Section 19(b)(1) under the Act,\4\
and Rule 19b-4 thereunder,\5\ IEX is filing with the Commission a
proposed rule change to correct six typographical citation and cross-
reference errors in the IEX Rule Book. The Exchange has designated this
rule change as ``non-controversial'' under Section 19(b)(3)(A) of the
Act \6\ and provided the Commission with the notice required by Rule
19b-4(f)(6) thereunder.\7\
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\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4.
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The text of the proposed rule change is available at the Exchange's
website at <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 Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange makes this filing to correct six typographical
citation and cross-reference errors in the IEX Rule Book. Specifically,
the Exchange proposes to update external citations to subsections of
Rule 600(b) of Regulation NMS under the Act in IEX Rules 10.160(f),
11.210(a)(2), 11.230(b), 11.610(y), and 11.610(qq) (``Regulation NMS
citations''); the Exchange also proposes to update an internal cross-
reference error attributable to a recent rule change.
With respect to the Regulation NMS citations, IEX notes that in
2021, the Commission amended Regulation NMS in connection with the
adoption of the Market Data Infrastructure Rules.\8\ As part of that
initiative, the Commission adopted new definitions in Rule 600(b) of
Regulation NMS and renumbered the remaining definitions. The Exchange
accordingly proposes to update the relevant citations to Regulation NMS
in the IEX Rule Book as follows:
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\8\ See Securities Exchange Act Release No. 90610, 86 FR 18596
(April 9, 2021) (S7-03-20).
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<bullet> The citation to the Regulation NMS definition of
Intermarket Sweep Order in IEX Rule 10.160(f) would be changed from
Rule 600(b)(30) to Rule 600(b)(38);
<bullet> The citation to the Regulation NMS definition of NMS Stock
in IEX Rule 11.210(a)(2) would be changed from Rule 600(b)(46) \9\ to
Rule 600(b)(55);
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\9\ IEX Rule 11.210(a)(2), which reads in relevant part ``the
security is an NMS stock pursuant to Commission Rule 600(b)(46)''
contains a typographical error; the rule should have referred to
Rule 600(b)(47), not 600(b)(46). This proposed rule change corrects
this typographical error.
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<bullet> The citation to the Regulation NMS definition of Protected
Quotation in IEX Rule 11.230(b) would be changed from Rule 600(b)(58)
to Rule 600(b)(71);
<bullet> The citation to the Regulation NMS definition of Listed
Option in IEX Rule 11.610(y) would be changed from Rule 600(b)(35) to
Rule 600(b)(43);
<bullet> The citation to the Regulation NMS definition of NMS Stock
in IEX Rule 11.610(y) would be changed from Rule 600(b)(47) to Rule
600(b)(55);
With respect to the internal cross-reference, IEX Rule
11.190(b)(2)(G) cross-references IEX Rule 11.190(b)(7)(E)(v), when it
should cross-reference IEX Rule 11.190(b)(7)(F)(v). This cross-
reference error stems from a recent rule filing that renumbered IEX
Rule 11.190(b)(7) without updating the cross-reference contained in IEX
Rule 11.190(b)(2)(G).\10\ IEX therefore proposes to amend IEX Rule
11.190(b)(2)(G) to cross-reference IEX Rule 11.190(b)(7)(F)(v) instead
of 11.190(b)(7)(E)(v).
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\10\ See Securities Exchange Act Release No. 96611 (January 9,
2023), 88 FR 2379, 2380 (January 13, 2023) (SR-IEX-2022-10).
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IEX notes that both the proposed changes to the Regulation NMS
citations and the internal cross-reference do not substantively modify
system functionality or processes on the Exchange, but solely correct
outdated cross-references.
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \11\ of the Act in general, and furthers the
objectives of Section 6(b)(1) of the Act \12\ in particular, in that it
is designed to enforce compliance by the Exchange's Members \13\ and
persons
[[Page 1605]]
associated with its Members, with the provisions of the rules of the
Exchange.
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\11\ 15 U.S.C. 78f.
\12\ 15 U.S.C. 78f(b)(1).
\13\ See IEX Rule 1.160(s).
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The Exchange believes that the proposed changes to the Regulation
NMS citations would remove impediments to and perfect the mechanism of
a free and open market and a national market system because the
proposed changes are designed to update external and internal rule
references. The Exchange believes that Members would benefit from the
increased clarity, thereby reducing potential confusion and ensuring
that persons subject to the Exchange's jurisdiction, regulators, and
the investing public can more easily navigate and understand the
Exchange's rules.
The Exchange also believes that the proposed rule change is
consistent with the public interest and the protection of investors
because it will provide increased clarity in the Exchange's rules,
thereby reducing potential confusion, as described above.
B. Self-Regulatory Organization's Statement on Burden on Competition
IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. As described in the Purpose and
Statutory Basis sections, this rule filing merely proposes to correct
five external citations and one internal cross-reference. The proposed
rule change is not intended to address competitive issues but rather
would modify Exchange rules to update citations to Regulation NMS and
an internal cross-reference. Since the proposal does not substantively
modify system functionality or processes on the Exchange, the proposed
changes will not impose any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has designated this rule filing as non-controversial
under Section 19(b)(3)(A) \14\ of the Act and Rule 19b-4(f)(6) \15\
thereunder. Because the proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\16\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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The Exchange believes that the proposed rule change meets the
criteria of subparagraph (f)(6) of Rule 19b-4 \17\ because it would not
significantly affect the protection of investors or the public
interest, nor does it impose any burden on competition because it
merely corrects six typographical errors in existing rule provisions
without substantively changing such provisions. This rule filing does
not substantively modify system functionality or processes on the
Exchange. Accordingly, the Exchange believes that the proposed rule
change is noncontroversial and satisfies the requirements of Rule 19b-
4(f)(6).\18\
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\20\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay, because this rule
filing merely corrects typographical errors for which the rest of the
rule is otherwise clear. Therefore, IEX believes there is no need to
delay implementation of this rule change, so that the Exchange may
promptly correct these typographical errors and avoid any potential
confusion during such time period on the part of market participants.
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\19\ 17 CFR 240.19b-4(f)(6).
\20\ 17 CFR 240.19b-4(f)(6)(iii).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \21\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\21\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<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#6012150c054d030f0d0d050e1413201305034e070f16"><span class="__cf_email__" data-cfemail="4c3e392029612f2321212922383f0c3f292f622b233a">[email protected]</span></a>. Please include
file number SR-IEX-2023-14 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-2023-14. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<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-2023-14 and should be
submitted on or before January 30, 2024.
[[Page 1606]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-00285 Filed 1-9-24; 8:45 am]
BILLING CODE 8011-01-P
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