Notice2025-24046
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Common Criteria and Procedures for Halting and Resuming Trading in Equity Securities
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
December 31, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 247 (Wednesday, December 31, 2025)</title>
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[Federal Register Volume 90, Number 247 (Wednesday, December 31, 2025)]
[Notices]
[Pages 61442-61449]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-24046]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104499; File No. SR-IEX-2025-37]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Adopt
Common Criteria and Procedures for Halting and Resuming Trading in
Equity Securities
December 23, 2025.
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 18, 2025, 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\ the Exchange is filing with the
Commission a proposed rule amendment to adopt common criteria and
procedures for halting and resuming trading in equity securities in the
event of regulatory or operational issues, reorganize the text of the
current relevant rules, and make conforming changes to related rules.
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\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
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The Exchange has designated this proposed 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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\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="https://www.iexexchange.io/resources/regulation/rule-filings">https://www.iexexchange.io/resources/regulation/rule-filings</a>
and at the principal office of the Exchange.
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. 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 is a participant of the transaction reporting plan \8\
governing Tape C Securities (``Nasdaq UTP Plan''),\9\ and the
transaction reporting plan governing Tape A and B Securities (``CTA
Plan'') \10\ (collectively, with the CQ Plan,\11\ the ``SIP Plans'').
In tandem with all other national securities exchanges that trade
equities securities, and in conjunction with the adoption of amendments
to the Nasdaq UTP Plan \12\ and comparable amendments to the CTA and CQ
Plans,\13\ which were
[[Page 61443]]
proposed by the Participants of both plans (collectively, the ``SIP
Plan Amendments''), the Exchange hereby proposes to amend its current
Rules 11.271 and 11.280 to integrate several definitions and concepts
from the SIP Plan Amendments and to reorganize several rules in light
of the Exchange's experience with applying the rules as a national
securities exchange.\14\ The rules set forth the Exchange's authority
to halt trading under various circumstances.
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\8\ Each transaction reporting plan has a securities information
processor (``SIP'') responsible for consolidation of information for
the plan's securities, pursuant to Rule 603 of Regulation NMS.
\9\ Nasdaq UTP Plan refers to the transaction reporting plan for
Nasdaq-listed securities that is known as The Joint Self-Regulatory
Organization Plan Governing the Collection, Consolidation and
Dissemination of Quotation and Transaction Information for Nasdaq-
Listed Securities Traded on Exchanges on an Unlisted Trading
Privilege Basis.
\10\ CTA Plan refers to the transaction reporting plan for NYSE-
listed securities (Tape A) and all non-NYSE or non-Nasdaq listed
securities (Tape B).
\11\ CQ Plan refers to the plan for the dissemination on a
current and continuous basis of bid and asked quotations and
quotation sizes of Tape B and Tape C securities.
\12\ On February 11, 2021, the Nasdaq UTP Plan participants
filed Amendment 50 to the Plan, to revise provisions governing
regulatory and operational halts. See Letter from Robert Brooks,
Chairman, UTP Operating Committee, Nasdaq UTP Plan, to Vanessa
Countryman, Secretary, Securities and Exchange Commission, dated
February 11, 2021. The Nasdaq UTP Plan subsequently filed two
partial amendments to the 50th Amendment, on March 31, 2021 and on
April 7, 2021. The Commission approved the amendments on May 28,
2021. See Securities Exchange Act Release 92071 (May 28, 2021), 86
FR 29846 (June 3, 2021) (S7-24-89) (the ``Amended UTP Plan''). The
Amended Nasdaq UTP Plan includes provisions requiring participant
self-regulatory organizations (``SROs'') to honor a Regulatory Halt
declared by the Primary Listing Market.
\13\ On February 3, 2021, the CTA/CQ Plan participants
(collectively with the Nasdaq UTP Plan participants referred to
herein as ``Participants'') filed Amendment 36 to the Second
Restatement of the CTA Plan and Amendment 27 to the Restated CQ
Plan, to revise provisions governing regulatory and operational
halts. See Letter from Robert Books, Chair, CTA/CQ Operating
Committee, to Vanessa Countryman, Secretary, Securities and Exchange
Commission, dated February 3, 2021. The Commission approved the
amendments on May 28, 2021 (the ``Amended CTA/CQ Plan''). See
Securities Exchange Act Release No. 92070 (May 28, 2021), 86 FR
29849 (June 3, 2021) (SR-CTA/CQ-2021-01).
\14\ This proposed rule change is based on similar rule changes
filed by several exchanges that do not operate Primary Listing
Markets. See Securities Exchange Act Release Nos. 96574 (December
22, 2022), 87 FR 80213 (December 29, 2022) (SR-Phlx-2022-49); 97093
(March 9, 2023), 88 FR 16045 (March 15, 2023) (SR-PEARL-2023-11);
97824 (June 29, 2023), 88 FR 43159 (July 6, 2023) (SR-MEMX-2023-11);
103698 (August 13, 2025), 90 FR 40108 (August 18, 2025) (SR-NYSENAT-
2025-17).
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Although IEX's rules relating to listing of securities remain in
effect, IEX is currently not acting in the capacity of a ``Primary
Listing Market'', as defined in the Amended UTP and Amended CTA/CQ
Plans with respect to any security, and therefore this proposal
provides the Exchange with more limited authority to declare Regulatory
Halts than exchanges that operate as a Primary Listing Market.\15\
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\15\ See, e.g., Securities Exchange Act Release Nos. 95069 (June
8, 2022), 87 FR 36018 (June 14, 2022) (SR-NASDAQ-2022-017), 102810
(April 10, 2025), 90 FR 16041 (April 16, 2025) (SR-NYSEAMER-2025-
19), 103356 (June 30, 2025) (SR-NYSE-2025-21), 103476 (July 16,
2025), 90 FR 34314 (July 21, 2025) (SR-NYSEARCA-2025-50).
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As part of this proposed rule change, IEX, like other exchanges, is
proposing to move its rules relating to Trading Halts Due to
Extraordinary Market Volatility (the Market Wide Circuit Breaker or
``MWCB''), currently IEX Rules 11.280(a)-(d) and (i)-(k), to Rule
11.271. IEX is also proposing to delete the current text in its current
Rule 11.271 (Trading Halts), because those rules are being replaced
with the rules in proposed Rule 11.280 (Limit Up-Limit Down Plan and
Trading Halts on the Exchange). These changes will better align IEX's
MWCB, Limit Up-Limit Down Plan and Trading Halts rules with those of
other exchanges for clarity and organizational purposes.\16\ As
described below, IEX also proposes to remove Rule 16.170 and make
conforming edits related to these changes in Rules 11.230, 11.231,
11.350, 16.111, and 16.160.
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\16\ See, e.g., MEMX Rules 11.22 (Trading Halts Due to
Extraordinary Market Volatility) and 11.23 (Limit Up-Limit Down Plan
and Trading Halts on the Exchange).
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Background
As a Participant in the SIP Plans, the Exchange worked with the
other Participants to establish and implement common criteria and
procedures for halting and resuming trading in equity securities in the
event of regulatory or operational issues. These common standards were
designed so that market events which might impact multiple exchanges
are handled in a consistent and transparent manner. The Exchange
believes that implementation of these common standards will promote the
SROs' role in maintaining fair and orderly markets, protecting
investors and furthering the public interest. Notwithstanding the
development of these common standards, the Exchange will retain
discretion in certain instances as to whether and how to handle halts,
as discussed below.
Every U.S.-listed equity security has its primary listing on a
specific stock exchange that is responsible for a number of regulatory
functions.\17\ These include confirming that the security continues to
meet the exchange's listing standards, monitoring trading in that
security and taking action to halt trading in the security when
necessary to protect investors and to ensure a fair and orderly market.
While these core responsibilities remain with the Primary Listing
Market, trading in the security can occur on multiple exchanges that
have unlisted trading privileges for the security or in the over-the-
counter market, regulated by the Financial Industry Regulatory
Authority, Inc. (``FINRA'').
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\17\ IEX is proposing to adopt Primary Listing Market as a new
definition having the same meaning as in the Amended Nasdaq UTP
Plan, Section X(A)(8) and in the Amended CTA Plan Section
XI(a)(i)(H). Each of those sections define Primary Listing Market as
``the national securities exchange on which an Eligible Security is
listed. If an Eligible Security is listed on more than one national
securities exchange, Primary Listing Market means the exchange on
which the security has been listed the longest.''
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The exchanges and FINRA are responsible for monitoring activity on
the markets over which they have oversight but also must adhere to the
regulatory decisions made by the Primary Listing Market with respect to
its listed securities. For example, a venue trading a security pursuant
to unlisted trading privileges must halt trading in that security
during a Regulatory Halt,\18\ which is a defined term under the
proposed rules, and may only trade the security once the Primary
Listing Market has cleared the security to resume trading. While the
Exchange and the other SROs intend to harmonize certain aspects of
their trading halt rules, other elements of the rules will continue to
be unique to each market. The Exchange believes that this is
appropriate to reflect the different products listed or traded on each
market. The Exchange will implement all of the changes proposed herein
in conjunction with other SROs implementing the necessary changes. The
Exchange will publish a trading alert at least 30 days prior to
implementing the proposed changes.
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\18\ See proposed Rule 11.280(a)(10).
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Definitions
The Exchange proposes adding a new definition for ``UTP Exchange
Traded Products'' \19\ to Rule 1.160 (Definitions), which will match
the definitions used by other exchanges.\20\ Additionally, the Exchange
proposes adding a definitions section as Rule 11.280(a) to consolidate
the various definitions that will be used with respect to trading
halts, several of which are taken from the Amended Nasdaq UTP Plan and
the Amended CTA Plan after the SIP Plan Amendments (``SIP Plans'').
Specifically, the Exchange is also proposing to adopt the following
terms from the SIP Plans: ``Operating Committee,'' ``Operational
Halt,'' ``Processor'' or ``SIP,'' ``Regular Trading Hours,'' ``SIP
Halt,'' and ``SIP Halt Resume Time.'' The definitions of ``UTP Exchange
Traded Product,'' ``Pre-Market Session,'' and ``Post-Market Session''
are included in the definitions section with cross-references to their
current and proposed definitions in Rule 1.160.\21\
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\19\ See proposed Rule 1.160(rr). The Exchange also proposes to
renumber current Rule 1.160(rr), which defines the term ``UTP
Security'' to be Rule 1.160(ss).
\20\ See, e.g., MEMX Rule 1.5(kk).
\21\ See Rule 1.160(z) and proposed Rule 1.160(rr).
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The Exchange also proposes to add definitions of ``Trust Shares,''
``Index Fund Shares,'' ``Managed Fund Shares,'' and ``Trust Issued
Receipts,'' as subcategories to the defined term UTP Exchange Traded
Product, and those terms will have the same meanings as those found in
the rules of other exchanges, which were adopted in response to the SIP
Plan Amendments.\22\
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\22\ See Nasdaq PHLX Rules 3100(b)(1)(A)-(D); MEMX Rules
11.22(a)(1)(A)-(D).
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As described above, the Exchange proposes to adopt the definition
of ``Primary Listing Market'' that is found in the SIP Plans.\23\ As is
currently the case under the SIP Plans, all Regulatory Halt decisions
are made by the market on which the security has its primary listing.
This reflects the regulatory responsibility that the Primary Listing
Market has for fair and orderly trading
[[Page 61444]]
in the securities that list on its market and its direct access to its
listed companies, which are required to advise it of certain events and
maintain lines of communication with the Primary Listing Market. The
proposed definition makes clear that if a security is listed on more
than one market (a dually-listed security), the Primary Listing Market
means the exchange on which the security has been listed the longest.
This provision matches language used in the definition of ``Primary
Listing Exchange'' in the Limit-Up Limit-Down Plan and will avoid
conflict in the event of dually-listed securities.
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\23\ See supra note 17.
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The Exchange is also proposing to adopt a definition of the term
``Extraordinary Market Activity'' \24\ that would represent a modified
version of the term's definitions in the Amended UTP Plan and the
Amended CTA Plan,\25\ but which is consistent with recent rule filings
of other exchanges.\26\ Specifically, the Exchange proposes to define
``Extraordinary Market Activity'' without the concept of a ``market-
wide basis'' because the term would only be used in the Exchange's
rules as a basis for the Exchange. Thus, the Exchange proposes to
define Extraordinary Market Activity as follows:
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\24\ The term ``Extraordinary Market Activity'' was never
specifically defined in IEX's rules, although it was described by
way of a few examples in the rules IEX now proposes to delete as
part of this filing. See IEX Rule 11.280(g)(6)(A) and (B).
\25\ See Amended Nasdaq UTP Plan Section X.A.1; Amended CTA
Plan, Section XI(a)(i)(H).
\26\ See Securities Exchange Act Release No. 97824 (June 29,
2023), 88 FR 43159 (July 6, 2023) (SR-MEMX-2023-11).
a disruption or malfunction of any electronic quotation,
communication, reporting, or execution system operated by, or linked
to, the Processor or a Trading Center or a member of such Trading
Center that has a severe and continuing negative impact on quoting,
order, or trading activity or on the availability of market
information necessary to maintain a fair and orderly market. For
purposes of this definition, a severe and continuing negative impact
on quoting, order, or trading activity includes (i) a series of
quotes, orders, or transactions at prices substantially unrelated to
the current market for the security or securities; (ii) duplicative
or erroneous quoting, order, trade reporting, or other related
message traffic between one or more Trading Centers or their
members; or (iii) the unavailability of quoting, order, transaction
information, or regulatory messages for a sustained period.\27\
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\27\ See proposed Rule 11.280(a)(2).
The third set of new proposed definitions would be specific to
events involving the SIP. Specifically, the Exchange is also proposing
to adopt the following terms from the SIP Plans: ``Operating
Committee,'' ``Operational Halt,'' ``Processor'' or ``SIP,'' ``Regular
Trading Hours,'' ``SIP Halt,'' and ``SIP Halt Resume Time.''
While the Exchange recognizes that many events involving the SIP
would also meet the definition of ``Extraordinary Market Activity'' (as
defined in the SIP Plans), the Exchange believes that the critical role
of the SIPs in market infrastructure factors in favor of additional
guidance on how such events will be handled. The definitions of ``SIP
Halt Resume Time'' and ``SIP Halt'' are intended to provide additional
guidance to address this subset of potential market issues. In
addition, the Exchange is proposing to define terms related to SIP
governance needed in order to understand these definitions:
<bullet> ``Processor'' or ``SIP'' \28\ have the same meaning as the
terms set forth in the SIP Plans, namely the entity selected by the
Participants to perform the processing functions set forth in the Plan.
These terms may be used to apply to the processor for transactions in
Tape A and B securities or the processor for transactions in Tape C
securities.
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\28\ See proposed Rule 11.280(a)(9).
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<bullet> ``SIP Plan'' \29\ means each of the national market system
plans governing the SIPs, as applicable. Specifically, SIP Plan refers
to any or all of the following national market system plans governing
the collection, consolidation, and dissemination of quotation and
transaction information for NMS stocks: (i) the ``Nasdaq UTP Plan'';
(ii) the Consolidated Tape Association and Consolidated Quotation Plan
(``CTA/CQ Plan''); or the ``CT Plan''.\30\
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\29\ See proposed Rule 11.280(a)(3).
\30\ The CT Plan was approved in November 2024 to become the
successor to and replacement for the Nasdaq UTP Plan and the CTA/CQ
Plans. See Securities Exchange Act Release No. 101672 (November 20,
2024), 89 FR 94924 (November 29, 2024) (File No. 4-757). The CT Plan
is expected to begin disseminating quote and trade data in the
second quarter of 2027. See CT Plan FAQs, available at <a href="https://thectplanllc.com/faqs/">https://thectplanllc.com/faqs/</a>.
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<bullet> ``Operating Committee'' \31\ has the same meaning as in
each respective SIP Plan.
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\31\ See proposed Rule 11.280(a)(3).
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The Exchange is proposing to adopt a category of Regulatory Halt,
called a ``SIP Halt,'' \32\ which will have the same meaning as that
term is defined in the SIP Plans, namely ``a Regulatory Halt to trading
in one or more securities that a Primary Listing Market declares in the
event of a SIP Outage or Material SIP Latency.'' \33\ This new category
of Regulatory Halt will address situations where the Primary Listing
Market declares a Regulatory Halt in one or more securities as a result
of a SIP outage \34\ or material SIP latency.\35\
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\32\ See proposed Rule 11.280(a)(12).
\33\ See Amended Nasdaq UTP Plan Section X(A)(11); Amended CTA
Plan, Section XI(a)(i)(K).
\34\ A SIP outage means a situation in which the Processor has
ceased, or anticipates being unable, to provide updated and/or
accurate quotation or last sale price information in one or more
securities for a material period that exceeds the time thresholds
for an orderly failover to backup facilities established by mutual
agreement among the Processor, the Primary Listing Market for the
affected securities, and the Operating Committee unless the Primary
Listing Market, in consultation with the Processor and the Operating
Committee, determines that resumption of accurate data is expected
in the near future. See Amended Nasdaq UTP Plan, Section X(A)(13);
Amended CTA Plan, Section XI(a)(i)(M).
\35\ A material SIP latency means a delay of quotation or last
sale price information in one or more securities between the time
data is received by the Processor and the time the Processor
disseminates the data over the Processor's vendor lines, which delay
the Primary Listing Market determines, in consultation with, and in
accordance with, publicly disclosed guidelines established by the
Operating Committee, to be (a) material and (b) unlikely to be
resolved in the near future. See Amended Nasdaq UTP Plan, Section
X(A)(5); Amended CTA Plan, Section XI(a)(i)(E).
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Fourth, the Exchange proposes to add a definition of ``Regulatory
Halt,'' \36\ which would be a new defined term that incorporates the
Exchange's existing regulatory halt authority as well as the proposed
new regulatory halt authority. The Exchange proposes that the term
would have the same meaning as in the SIP Plans as follows:
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\36\ See proposed Rule 11.280(a)(10).
a halt declared by the Primary Listing Market in trading in one
or more securities on all Trading Centers for regulatory purposes,
including for the dissemination of material news, news pending,
suspensions, or where otherwise necessary to maintain a fair and
orderly market. A Regulatory Halt includes a trading pause triggered
by Limit Up Limit Down, a halt based on Extraordinary Market
Activity, a trading halt triggered by a Market-Wide Circuit Breaker,
and a SIP Halt.\37\
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\37\ Id.
The Exchange proposes to add a definition of ``Operational Halt,''
\38\ which is defined as having the same meaning as in the SIP
Plans.\39\ Specifically, the Exchange is proposing to define
Operational Halt to mean a halt in trading in one or more securities
only on the market declaring the halt and is not a Regulatory Halt. An
Operational Halt is effective only on the Exchange; other markets are
not required to halt trading in the impacted securities. In practice,
the Exchange has always had the capacity to implement operational halts
in specified circumstances.\40\ The proposed change would provide
greater clarity on when an Operational Halt may be
[[Page 61445]]
implemented and the process for halting and resuming trading in the
event of an Operational Halt. An Operational Halt is not a Regulatory
Halt.
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\38\ See proposed Rule 11.280(a)(5).
\39\ See Amended Nasdaq UTP Plan, Section X(A)(7); Amended CTA
Plan, Section XI(a)(i)(G).
\40\ See Rule 11.110(c) and Rule 11.280(d).
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Regulatory Halt
Proposed Rule 11.280(b)(1)(A)(i)-(iv) includes four situations in
which the Exchange must halt trading pursuant to a Regulatory Halt:
under the Limit Up-Limit Down Plan, pursuant to Extraordinary Market
Volatility (Market-Wide Circuit Breakers), when the Primary Listing
Market declares a SIP halt, or when the Primary Listing Market declares
a trading halt based on Extraordinary Market Activity, as defined in
the SIP Plans. Proposed Rule 11.280(b)(1)(A)(i) retains without
substantive modification the existing rule with respect to the Limit
Up-Limit Down Plan (current Rule 11.280(e)). The Exchange, currently
acting as a non-Primary Listing Market, does not itself declare trading
pauses pursuant to the Limit Up-Limit Down Plan, but rather implements
such pauses declared by Primary Listing Markets. The Exchange proposes
to make clear in Rule 11.280(b)(1)(A)(ii) that a trading halt pursuant
to Extraordinary Market Volatility (Market-Wide Circuit Breakers), as
is described in proposed Rule 11.271, constitutes a Regulatory Halt.
The Exchange would also add subsections concerning Regulatory Halts
declared by Primary Listing Markets based on a SIP halt or
Extraordinary Market Activity in Rule 11.280(b)(1)(A)(iii). As is the
case under the current Rule 11.280(e), the Exchange would honor a
Regulatory Halt. The Exchange proposes to add Rule 11.280(b)(1)(A)(iv),
which states that the Exchange will halt trading for any security
traded on the Exchange when the Primary Listing Market declares a
Regulatory Halt for any such security. The Exchange also proposes to
add Rule 11.280(b)(1)(A)(iv)(a), which makes clear that the start time
of a Regulatory Halt is the time the Primary Listing Market declares
the Regulatory Halt, regardless of whether communications issues impact
the dissemination of notice of the Halt. This provision is consistent
with the SIP Plans \41\ and would provide market participants with
certainty on the official start time of the Regulatory Halt. Under the
proposed rule, the start time is fixed by the Primary Listing Market;
it is not dependent on whether notice is disseminated immediately. This
will avoid possible disagreement if the Regulatory Halt time were tied
to dissemination or receipt of notification, which may occur at
different times. The Exchange recognizes that in situations where
communication is interrupted, trades may continue to occur until news
of the Regulatory Halt reaches all trading centers. However, a fixed
``official'' Regulatory Halt time will allow SROs to revisit trades
after the fact and determine in a consistent manner whether specific
trades should stand.
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\41\ See Amended Nasdaq UTP Plan X(D)(1) and Amended CTA Plan
Section XI(a)(iv)(A).
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Resumption of Trading After a Regulatory Halt
The SROs have jointly developed processes to govern the resumption
of trading in the event of a Regulatory Halt. While the actual process
of re-launching trading will remain unique to each exchange, the
proposed rule would harmonize certain common elements of the reopening
process that would benefit from consistency across markets. These
common elements include the primacy of the Primary Listing Market in
resumption decisions, the requirement that the Primary Listing Market
make its determination to resume trading in good faith,\42\ and certain
parts of the complex process of reopening trading after a SIP Halt.
With respect to a SIP Halt, common elements of the reopening process
include the interaction among SROs (including the Primary Listing
Market with the SIP), the requirement that the Primary Listing Market
terminate a SIP Halt with a notification that specifies a SIP Halt
Resume Time, the minimum quoting times before resumption of trading,
the cutoff time after which trading would not resume during Regular
Trading Hours, and the time when trading may resume if the Primary
Listing Market does not open a security within the amount of time
specified in its rules after the SIP Halt Resume Time.
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\42\ See Amended Nasdaq UTP Plan X(E)(1) and Amended CTA Plan
Section XI(a)(v)(A).
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Proposed Rule 11.280(b)(2) provides the process to be followed when
resuming trading upon the conclusion of a Regulatory Halt. The new
rule, which incorporates Sections X(E) and X(F) of the Amended Nasdaq
UTP Plan and Sections XI(a)(v) and XI(a)(vi), is divided into the
following two subsections concerning resumption of trading: (A) after a
Regulatory Halt other than a SIP Halt; and (B) after a SIP Halt.
Proposed Rule 11.280(b)(2)(A)(i) provides that, for a Regulatory Halt
other than a SIP Halt, the Exchange may resume trading subject to the
Regulatory Halt after the Exchange receives notification from the
Primary Listing Market that the Regulatory Halt has been terminated.
The Exchange does not conduct halt crosses and, therefore, the
resumption of trading in these securities will occur once notice from
the Primary Listing Market is received. Proposed Rule
11.280(b)(2)(B)(i) provides that, for securities subject to a SIP Halt
initiated by another exchange that is the Primary Listing Market,
during Regular Trading Hours, the Exchange may resume trading after
trading has resumed on the Primary Listing Market or notice has been
received from the Primary Listing Market that trading may resume.
During Regular Trading Hours, if the Primary Listing Market does not
open a security within the amount of time specified by the rules of the
Primary Listing Market after the SIP Halt Resume Time, the Exchange may
resume trading in that security. Outside Regular Trading Hours, the
Exchange may resume trading immediately after the SIP Halt Resume
Time.\43\ Proposed Rule 11.280(b)(2) is consistent with current
practice.
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\43\ See Amended Nasdaq UTP Plan X(F)(3) and Amended CTA Plan
Section XI(a)(vi)(C).
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Proposed Rule 11.280(b)(3) retains without substantive modification
existing Rule 11.271. Proposed Rule 11.280(b)(3) states that on the
occurrence of any Regulatory Halt pursuant to this Rule all outstanding
orders in the System will be cancelled, the Exchange will not accept
new orders, and at the end of the Regulatory Halt, the Exchange shall
re-open the security and again begin accepting orders. Lastly,
consistent with Section X(G) of the Nasdaq UTP Plan and Section
XI(a)(vii) of the CTA Plan, the Exchange proposes to add Rule
11.280(c), which will more broadly require the Exchange to halt trading
of a UTP security if the Primary Listing Market declares a Regulatory
Halt in that security, and more specifically, governs trading halts in
certain Exchange Traded Products traded on the Exchange pursuant to
unlisted trading privileges during pre-market, regular trading hours,
and post-market sessions.
Operational Halt
The Exchange proposes in Rule 11.280(d) to address Operational
Halts, which are non-regulatory in nature and apply only to the
exchange that calls the halt. As described above, the Exchange has
always had the capacity to implement operational halts and local
trading suspensions in specified circumstances, but such halts are not
currently referred to as ``operational
[[Page 61446]]
halts'' in the Exchange's rules.\44\ As part of the Exchange's
assessment with the other SROs of the halting and resumption of
trading, the Exchange believes that the markets would benefit from
greater clarity regarding when an Operational Halt may be appropriate.
In part, the proposed change is designed to cover situations similar to
those that might constitute a Regulatory Halt, but where the impact is
limited to a single market. For example, just as a market disruption
might trigger a Regulatory Halt for Extraordinary Market Activity (as
defined in the SIP Plans) if it affects multiple markets, so too a
disruption at the Exchange, such as a technical issue affecting trading
in one or more securities, could impact trading on the Exchange so
significantly that an Operational Halt is appropriate in one or more
securities. In such an instance, it would be in the public interest to
institute an Operational Halt to minimize the impact of a disruption
that, if trading were allowed to continue, might negatively affect a
greater number of market participants. An Operational Halt does not
implicate other trading centers. Proposed Rule 11.280(d) would
authorize the Exchange to implement an Operational Halt for any
security trading on the Exchange:
---------------------------------------------------------------------------
\44\ See, e.g., Rule 11.110(c). The Exchange also notes that its
proposed Rule 11.280(d) regarding Operational Halts is substantially
identical to the rules introduced by other exchanges in their
filings responding to the SIP Amendments and is therefore not novel.
See supra note 14.
---------------------------------------------------------------------------
<bullet> if it is experiencing Extraordinary Market Activity \45\
on the Exchange; or
---------------------------------------------------------------------------
\45\ ``Extraordinary Market Activity'' in proposed Rule
11.280(d) would have the meaning proposed by the Exchange, which as
noted above is a modified form of the definitions in the SIP Plans.
---------------------------------------------------------------------------
<bullet> when otherwise necessary to maintain a fair and orderly
market or in the public interest.
Proposed Rule 11.280(d)(2) provides the process for initiating an
Operational Halt. Under the proposed rule, on the occurrence of any
Operational Halt all outstanding orders in the System will be
cancelled. Further, the Exchange must notify the SIP if it has concerns
about its ability to collect and transmit Quotation Information or
Transaction Reports, or if it has declared an Operational Halt or
suspension of trading in one or more Eligible Securities, pursuant to
the procedures adopted by the Operating Committee.
Proposed Rule 11.280(d)(3) will clarify how the Exchange resumes
trading after an Operational Halt. Proposed Rule 11.280(d)(3)(A)
provides that the Exchange would resume trading after an Operational
Halt when it determines that trading may resume in a fair and orderly
manner consistent with the Exchange's rules. Proposed Rule
11.280(d)(3)(B) provides that orders entered during the Operational
Halt will not be accepted. Proposed Rule 11.280(d)(3)(C) provides that
trading in a halted security shall resume at the time specified by the
Exchange in a notice. Proposed Rule 11.280(d)(3)(C) also specifies that
the Exchange will notify all other Participants and the SIP of such an
Operational Halt as well as provide notice that an Operational Halt has
been lifted using such protocols and other emergency procedures as may
be mutually agreed to between the Operating Committee and the Exchange.
If the SIP is unable to disseminate notice of an Operational Halt or
the Exchange is not open for trading, the Exchange will take reasonable
steps to provide notice of an Operational Halt, which shall include
both the type and start time of the Operational Halt. Each Participant
shall continuously monitor communication protocols established by the
Operating Committee and the Processor during market hours to
disseminate notice of an Operational Halt, and the failure of a
Participant to do so shall not prevent the Exchange from initiating an
Operational Halt.
Trading Halts Due to Extraordinary Market Volatility
Additionally, the Exchange proposes moving the Trading Halts Due to
Extraordinary Market Volatility (MWCB) rules that are currently in Rule
11.280 to their own separate rule, proposed Rule 11.271. As proposed,
MWCB halts, which fall under the category of Regulatory Halts, are
cross referenced in proposed Rule 11.280(b)(i)(A)(ii). The text of the
proposed Rule 11.271 does not materially differ from what is currently
in found in IEX Rules 11.280(a)-(d) \46\ and (i)-(k).\47\ The Exchange
believes separating this text from Rule 11.280 is appropriate in order
to remain consistent with similar rule filings proposed by other
Exchanges.\48\
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\46\ These provisions outline the processes related to MWCB
halts.
\47\ These provisions outline the processes related to MWCB
testing.
\48\ See, e.g., MEMX Rule 11.22(b)(i)(A)(ii), which like
proposed IEX Rule 11.280(b)(i)(A)(ii) refers to the separate MWCB
rule (MEMX Rule 11.23 and proposed IEX Rule 11.271).
---------------------------------------------------------------------------
Conforming Changes to Other Rules
The Exchange proposes to make the following conforming changes to
other rules, in addition to any changes described above.\49\ Other
conforming edits IEX proposes to make are as follows:
---------------------------------------------------------------------------
\49\ See, e.g., supra note 19 (describing the proposed addition
of a definition for UTP Exchange Traded Products to Rule 1.160 and
the renumbering of the rule).
---------------------------------------------------------------------------
<bullet> In Rule 11.230(a)(3) (Order Execution), add ``Plan'' at
the end of the phrase ``Limit Up-Limit Down''. IEX proposes this change
so that the Rule Book is consistent in how it refers to the Limit Up-
Limit Down Plan.
<bullet> In Rule 11.231(e) (Regular Market Session Opening Process
for Non-IEX-Listed Securities), replace a reference to Rule 11.271 with
a reference to Rule 11.280. The reference is to the authority to reject
orders submitted during a trading halt, which under this proposal will
now be found in Rule 11.280.
<bullet> As described above, IEX proposes to rearrange Rules 11.271
(Trading Halts) and Rule 11.280 (Limit Up-Limit Down Plan and Trading
Halts), such that the MWCB rules will move from Rule 11.271, and
current rule 11.271 will be replaced with the trading halts rules
described above in Rule 11.280.
<bullet> In Rule 11.350 (Auctions), change references to Rule
11.280(e) (Limit Up-Limit Down Mechanism) and Rule 11.280(h) (Procedure
for Initiating and Terminating a Trading Halt) to refer to Rule 11.280
in general, which contains several rules relating to the Limit Up-Limit
Down Plan and corresponding trading halts. Specifically, IEX proposes
to make the following changes:
[cir] In Rule 11.350(a)(1)(E)(i), change the reference to Rule
11.280(e) to instead refer to Rule 11.280.
[cir] In Rule 11.350(a)(6)(A)(i), change the reference to Rule
11.280(h)(9) to instead refer to Rule 11.280.
[cir] In Rule 11.350(a)(6)(B), change the reference to Rule
11.280(h)(9) to instead refer to Rule 11.280.
[cir] In Rule 11.350(a)(7)(A)(i), change the reference to Rule
11.280(h)(9) to instead refer to Rule 11.280.
[cir] In Rule 11.350(a)(7)(B), change the reference to Rule
11.280(h)(9) to instead refer to Rule 11.280.
[cir] In Rule 11.350(a)(9)(G), change the reference to Rule
11.280(h)(8) to instead refer to Rule 11.280.
[cir] In Rule 11.350(a)(9)(H), change the reference to Rule
11.280(h)(8) to instead refer to Rule 11.280.
[cir] In Rule 11.350(a)(9)(I), change the reference to Rule
11.280(h)(8) to instead refer to Rule 11.280.
[cir] In Rule 11.350(d)(2)(D), change the two references to Rule
11.280(e) to instead refer to Rule 11.280.
[cir] In Rule 11.350(e), change the references to Rules
11.280(h)(9) and 11.280(g)(1), (4), or (5) (Authority to Initiate
Trading Halts) to instead refer to Rule 11.280.
[cir] In Rule 11.350(e)(2)(B)(iii), change the reference to Rule
11.280(h)(8)(C) to instead refer to Rule 11.280.
[[Page 61447]]
[cir] In Supplementary Material .01 to Rule 11.350(e), change the
two references to Rule 11.280(h)(9) and the one reference to Rule
11.280(h)(8) to instead refer to Rule 11.280.
[cir] In Supplementary Material .02 to Rule 11.350(e), change the
two references to Rule 11.280(h)(9) and the one reference to Rule
11.280(h)(8) to instead refer to Rule 11.280.
[cir] In Rule 11.350(f), change the reference to Rule 11.280(e) to
instead refer to Rule 11.280.
[cir] In Rule 11.350(f)(1)(A) change the two references to Rule
11.280(e) to instead refer to Rule 11.280.
[cir] In Rule 11.350(f)(2)(C)(iii) change the two references to
Rule 11.280(e) to instead refer to Rule 11.280.
[cir] In Rule 11.350(f)(3) change the two references to Rule
11.280(e) to instead refer to Rule 11.280.
[cir] In Rule 11.350(f)(3)(A)(iii) change the two references to
Rule 11.280(e) to instead refer to Rule 11.280.
<bullet> In Rule 11.350(a)(29)(B), change the reference to Rule
11.280(a)(1)-(3) (talking about Level 1 or Level 2 market declines that
trigger the MWCB) to cite to Rule 11.280(a)(1)-(3), which is the new
location of the relevant MWCB rules.
<bullet> In Rule 16.111 (Trading of Certain Derivative Securities),
change the reference to the MWCB in Rule 16.111(i)(5)(B)(ii) that
refers to Rule 11.280 to instead refer to Rule 11.271.
<bullet> In Rule 16.111(j)(6)(B)(v), add IEX Rule 11.271 to the
list of rules under which IEX may halt trading in a security and remove
Rule 16.170 from the list. As described below, IEX is proposing to
delete Rule 16.170.
<bullet> In Rule 16.160 (Derivative Securities Traded under
Unlisted Trading Privileges), make the following conforming edits:
[cir] In the first sentence of the opening paragraph, change the
word ``security'' to ``UTP Security (see IEX Rule 1.160(ss),'' for
clarity.
[cir] In Rule 16.160(a), change the words ``Derivative Security''
to read `` `UTP Exchange Traded Product' as defined in IEX Rule
1.160(rr)'' for clarity.
[cir] In Rule 16.160(a)(1), change the two references to ``UTP
Derivative Security'' to read ``UTP Exchange Traded Product'' for
clarity.
[cir] In Rule 16.160(a)(2), change the one reference to ``UTP
Derivative Security'' to read ``UTP Exchange Traded Product'' and the
eight references to ``UTP Derivative Securities'' to read ``UTP
Exchange Traded Products'' for clarity.
[ssquf] Also in Rule 16.160(a)(2), IEX proposes to replace the
three brackets surrounding text with {braces{time} to reduce the
confusion caused in rule filings by having bracketed text that is not
intended to be deleted. The quoted text will now read as follows:
<bullet> ``A circular describing the terms and characteristics of
{the UTP Exchange Traded Products{time} has been prepared by the
{open-ended management investment company name{time} and is available
from your broker. It is recommended that you obtain and review such
circular before purchasing {the UTP Exchange Traded Products{time} .''
[cir] In Rule 16.160(a)(3), change the reference to ``UTP
Derivative Securities'' to read ``UTP Exchange Traded Products'' for
clarity. Additionally, add IEX Rule 11.271 to the list of rules under
which IEX may halt trading in a security and remove Rule 16.170 from
the list. As described below, IEX is proposing to delete Rule 16.170.
[cir] In Rule 16.160(a)(4), change the reference to ``UTP
Derivative Security'' to read ``UTP Exchange Traded Product'' for
clarity.
[cir] In Rule 16.160(a)(5), change the reference to ``UTP
Derivative Security'' to read ``UTP Exchange Traded Product'' for
clarity.
Finally, as noted above, IEX is proposing to delete Rule 16.170
(Trading Halts for Trading of Certain Derivative Securities Products on
IEX Pursuant to Unlisted Trading Privileges). As described above,
proposed Rule 11.280 contains a thorough breakdown of the types of
Regulatory and Operational Halts that may be called for a derivative
security trading on IEX pursuant to unlisted trading privileges. The
language in Rule 16.170 is therefore rendered obsolete by the
introduction of the halt rules in Rule 11.280, and IEX proposes to
remove this rule because it no longer accurately reflects the
circumstances in which IEX may halt trading in a derivative security
trading pursuant to unlisted trading privileges and could cause
confusion if it remained in the Rule Book.
2. Statutory Basis
The Exchange believes that its proposal is consistent with the
requirements of the Act and the rules and regulations thereunder that
are applicable to a national securities exchange, and, in particular,
with the requirements of Section 6(b) of the Act.\50\ Specifically, the
proposal is consistent with Section 6(b)(5) of the Act \51\ because it
would promote just and equitable principles of trade, remove
impediments to, and perfect the mechanism of, a free and open market
and a national market system, and, in general, protect investors and
the public interest.
---------------------------------------------------------------------------
\50\ 15 U.S.C. 78f(b).
\51\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
As described above, the Exchange and other SROs are seeking to
adopt harmonized rules related to halting and resuming trading in U.S.-
listed equity securities. The Exchange believes that the proposed rules
will provide greater transparency and clarity with respect to the
situations in which trading will be halted and the process through
which that halt will be implemented and terminated. Particularly, the
proposed changes seek to achieve consistent results for market
participants across U.S. equities exchanges while maintaining a fair
and orderly market, protecting investors and protecting the public
interest. Based on the foregoing, the Exchange believes that the
proposed rules are consistent with Section 6(b)(5) of the Act \52\
because they will foster cooperation and coordination with persons
engaged in regulating and facilitating transactions in securities.
---------------------------------------------------------------------------
\52\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange further believes that the various provisions of the
proposed rules that will apply to all SROs are focused on the type of
cross-market event where a consistent approach will assist market
participants and reduce confusion during a crisis. Because market
participants often trade the same security across multiple venues and
trade securities listed on different exchanges as part of a common
strategy, the Exchange believes that the proposed rules will lessen the
risk that market participants holding a basket of securities will have
to deal with divergent outcomes depending on where the securities are
listed or traded.
Conversely, the proposed rules would still allow individual SROs to
react differently to events that impact various securities or markets
in different ways. This avoids the ``brittle market'' risk where an
isolated event at a single market forces all markets trading equities
securities to halt trading in all securities where the issue impacted
only a subset of securities. By addressing both concerns, the Exchange
believes that the proposed rules furthers the Act's goal of maintaining
fair and orderly markets.
The Exchange believes that the proposed rules' focus of
responsibility on the Primary Listing Market for decisions related to a
Regulatory Halt and the resumption of trading is consistent with the
Act, which itself imposes obligations on exchanges with respect to
issuers with listed securities on those markets. As is currently the
[[Page 61448]]
case, the Primary Listing Market would be responsible for the many
regulatory functions related to its listings, including the
determination of when to declare a Regulatory Halt. While these core
responsibilities remain with the Primary Listing Market, trading in the
security can occur on multiple exchanges that have extended unlisted
trading privileges for the security, such as on the Exchange or in the
over-the-counter market regulated by FINRA. The Exchange is responsible
for monitoring activity on its own markets, but also must honor a
Regulatory Halt. The proposed changes relating to Regulatory Halts
would ensure that all SROs handle the situations covered therein in a
consistent manner that would prevent conflicting outcomes in cross-
market events and ensure that all trading centers recognize a
Regulatory Halt declared by the Primary Listing Market. Furthermore,
the proposed changes are consistent with and implement the SIP Plan
Amendments.
The Exchange believes that the definitions in the proposed rules
are also consistent with the Act. The Exchange proposes adding a
definitions section to Rule 11.280(a) to consolidate the various
definitions that will be used with Regulatory Halts, some of which are
taken from the SIP Plans. The Exchange is adopting a modified form of
the term ``Extraordinary Market Activity'' from the SIP Plans, as
described above.
In addition, several other definitions have been moved into the
proposed definitions section from elsewhere in the pre-existing trading
halt rules without changes in the definitions. As noted, certain
definitions are consistent with the definitions in the SIP Plans,
furthering the Act's goal of promoting fair and orderly markets. For
example, the Exchange is proposing to adopt a definition of ``SIP
Halt,'' to explicitly address a situation that may disrupt the markets,
and this definition is identical to the definitions in the SIP Plans.
In addition to ``SIP Halt,'' the Exchange is adopting the following
terms from the SIP Plans: ``Operating Committee,'' ``Operational
Halt,'' ``Primary Listing Market,'' ``Processor,'' ``Regulatory Halt,''
``Regular Trading Hours,'' and ``SIP Halt Resume Time,'' as discussed
in the Purpose section.
The Exchange believes that the proposed rules, which make halts
more consistent across multiple exchanges, are consistent with the Act
in that they will foster cooperation and coordination with persons
engaged in regulating the equities markets. In particular, the Exchange
believes it is important for SROs to coordinate when there is a
widespread and significant event, as multiple trading centers are
impacted in such an event. Further, while the Exchange recognizes that
the proposed rules will not guarantee a consistent result on every
market in all situations, the Exchange does believe that it will assist
in that outcome. While the proposed rules relating to Regulatory Halts
focus primarily on the kinds of cross-market events that would likely
impact multiple markets, individual SROs will still retain flexibility
to deal with unique products or smaller situations confined to a
particular market. Allowing for exchange flexibility in such situations
will promote just and equitable principles of trade by protecting
investors from harm that is not of their own making. The proposed rules
provide guidance on when the Exchange should seek information from the
Operating Committee, other SROs and market participants as well as
means for dissemination of important information to the market. The
Exchange believes these provisions strike the right balance in
outlining a process to address unforeseen events without preventing
SROs from taking action needed to protect the market.
Also consistent with the Act, and with the SIP Plan Amendments, is
the Exchange's proposal in Rule 11.280(d) to address Operational Halts,
which are nonregulatory in nature and apply only to the exchange that
calls the halt. As noted above, the Exchange presently has the ability
to call an Operational Halt. Nevertheless, the Exchange believes that
the markets would benefit from greater clarity regarding when an
Operational Halt may be appropriate. Proposed Rule 11.280(d) would
authorize the Exchange to implement an Operational Halt for any
security trading on the Exchange: (i) if it is experiencing
Extraordinary Market Activity on the Exchange; or (ii) when otherwise
necessary to maintain a fair and orderly market or in the public
interest.
The proposed change is designed to cover situations where the
impact is limited to a single market. For example, a disruption at the
Exchange, such as a technical issue affecting trading in one or more
securities, could impact trading on the Exchange so significantly that
an Operational Halt is appropriate in one or more securities. In such
an instance, it would be in the public interest to institute an
Operational Halt to minimize the impact of a disruption that, if
trading were allowed to continue, might negatively affect a greater
number of market participants. An Operational Halt does not implicate
other trading centers. The Exchange believes that the broader language
provided by the definition of Extraordinary Market Activity in proposed
Rule 11.280(d) will better serve the interests of investors by allowing
the Exchange to act where appropriate.
The Exchange also believes that the proposed conforming changes to
other rules in this rule filing are consistent with the Act because
they are designed to remove impediments to and perfect the mechanism of
a free and open market and a national market system. The Exchange
believes that the conforming changes that will maintain the clarity and
accuracy of its Rule Book will protect investors and the public
interest by reducing the potential for confusion.
Finally, as detailed above, the substantive changes in this rule
filing are all based upon, and for the most part identical to, rule
filings made by several other equities exchanges that were also
designed to harmonize all exchanges' rules with respect to Regulatory
and Operational Halts.\53\ Thus, the Exchange does not believe that
this proposal raises any new or novel issues that have not already been
considered by the Commission.
---------------------------------------------------------------------------
\53\ See supra notes 14, 15, and 16.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
IEX believes the proposal is consistent with Section 6(b)(8) of the
Act \54\ in that it does not impose any burden on competition that is
not necessary or appropriate in furtherance of the purposes of the Act
as explained below.
---------------------------------------------------------------------------
\54\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
Importantly, the IEX believes the proposed changes will not impose
a burden on intermarket competition but will rather alleviate any
burden on competition because it is the result of a collaborative
effort by all SROs to harmonize and improve the process related to the
halting and resumption of trading in U.S.-listed equity securities. In
this area, the Exchange believes that all SROs should have consistent
rules to the extent possible in order to provide additional
transparency and certainty to market participants and to avoid
inconsistent outcomes that could cause confusion and erode investor
confidence. The proposed changes would ensure that all SROs handle the
situations covered therein in a consistent manner and ensure that all
Trading Centers handle a Regulatory Halt consistently. The Exchange
understands that all national securities markets that trade equities
securities intend to file proposals that are
[[Page 61449]]
substantially similar to this proposal. The Exchange does not believe
that the proposed rule change imposes a burden on intermarket
competition because the provisions apply to all Participants equally.
In addition, information regarding the halting and resumption of
trading will be disseminated using several freely accessible sources to
ensure broad availability of information in addition to the SIP data
and proprietary data feeds offered by the Exchange and other SROs that
are available to subscribers.
The Exchange also does not believe that the proposed rule change
imposes a burden on intramarket competition because the provisions
apply to all Members equally. In addition, the proposals include
several provisions related to the declaration and timing of trading
halts and the resumption of trading designed to avoid any advantage to
those who can react more quickly than other market participants. The
proposed rule gives the Exchange the ability to declare the timing of a
Regulatory Halt immediately or at a future time to allow for broad
dissemination of information. The SROs retain the discretion to cancel
trades that occur after the time of the Regulatory Halt. The proposals
also allow for the staggered resumption of trading to assist firms of
all sizes in reentering the market after a SIP Halt affecting multiple
securities. In addition, the proposals encourage early and frequent
communication among the SROs, SIPs and market participants to enable
the dissemination of timely and accurate information concerning the
market to market participants.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Not applicable.
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, it has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \55\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\56\
---------------------------------------------------------------------------
\55\ 15 U.S.C. 78s(b)(3)(A)(iii).
\56\ 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.
---------------------------------------------------------------------------
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) \57\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\57\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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#92e0e7fef7bff1fdfffff7fce6e1d2e1f7f1bcf5fde4"><span class="__cf_email__" data-cfemail="6e1c1b020b430d0103030b001a1d2e1d0b0d40090118">[email protected]</span></a>. Please include
file number SR-IEX-2025-37 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-2025-37. 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 website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing 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-2025-37 and should be submitted on
or before January 21, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\58\
---------------------------------------------------------------------------
\58\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-24046 Filed 12-30-25; 8:45 am]
BILLING CODE 8011-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.