Notice2026-07692
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend IEX Rule 11.240 (Trade Execution, Reporting, and Dissemination of Quotations) To Conform With Amendments to Rules 600 and 603 of Regulation NMS Recently Approved by the Commission That Concern the Reporting and Dissemination of Odd-Lot Information
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
April 21, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 76 (Tuesday, April 21, 2026)</title>
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[Federal Register Volume 91, Number 76 (Tuesday, April 21, 2026)]
[Notices]
[Pages 21342-21344]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07692]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105259; File No. SR-IEX-2026-09]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend IEX
Rule 11.240 (Trade Execution, Reporting, and Dissemination of
Quotations) To Conform With Amendments to Rules 600 and 603 of
Regulation NMS Recently Approved by the Commission That Concern the
Reporting and Dissemination of Odd-Lot Information
April 16, 2026.
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 April 10, 2026, 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 change to amend IEX Rule 11.240, Trade
Execution, Reporting, and Dissemination of Quotations, to conform with
amendments to Rules 600 and 603 of Regulation NMS recently approved by
the Commission that concern the reporting and dissemination of odd-
information.\6\ The Exchange has designated this proposal as non-
controversial 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\ See Regulation NMS: Minimum Pricing Increments, Access Fees
and Transparency of Better Priced Orders, Securities Exchange Act
Release No. 101070 (September 18, 2024), 89 FR 81620 (October 8,
2024) (File No. S7-30-22) (``Adopting Release'').
\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="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 proposes to amend IEX Rule 11.240, Trade Execution,
Reporting, and Dissemination of Quotations, to conform with amendments
to Rules 600 and 603 of Regulation NMS recently approved by the
Commission, which are to be implemented on May 1, 2026.\8\
Specifically, the Exchange proposes to adopt subparagraph (c)(3) under
IEX Rule 11.240 to address the Exchange's odd-lot reporting obligations
under Rules 600 and 603 of Regulation NMS.
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\8\ See Adopting Release, supra note 6 at 81681.
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In February 2020, the SEC proposed several changes to Regulation
NMS through its Market Data Infrastructure Rules (``MDIR'')
Proposal.\9\ In the MDIR Proposal, the Commission discussed the
increasing importance of odd-lot quotations in modern equity markets
and observed that odd-lot quotations were frequently priced at or
better than round-lot quotations, particularly in higher-priced
securities.\10\ However, such odd-lot quotation information was
generally excluded from SIP data feeds and instead available primarily
through proprietary data products. The Commission concluded that this
created a significant information asymmetry between market participants
with access to proprietary feeds and those relying on consolidated
data.\11\
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\9\ See Securities Exchange Act Release No. 88216 (February 14,
2020), 85 FR 16726 (Mar. 24, 2020) (File No. S7-03-20) (``MDIR
Proposal'').
\10\ See MDIR Proposal, supra note 9 at 16732-33.
\11\ See MDIR Proposal, supra note 9 at 16733.
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Thus, the SEC added to Regulation NMS the concept of ``odd-lot
information'',\12\ which it included in the definition of ``core data''
that must be included in the ``consolidated market data'' disseminated
by the exclusive Securities Information Processor (``SIPs'') pursuant
to Rule 603(b)(3) of Regulation NMS.\13\ The MDIR Final Rule defined
odd-lot information as:
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\12\ See Securities Exchange Act Release No. 90610 (December 9,
2020), 86 FR 18596 (April 9, 2021) (File No. S7-03-20) (``MDIR Final
Rule'').
\13\ See MDIR Final Rule, supra note 12 at 18610-15. Rule
603(b)(3) of Regulation NMS, among other things, requires the
national securities exchanges and national securities associations
to make available to the exclusive Securities Information Processor
(``SIPs'') all data necessary to generate odd-lot information, and
require the exclusive SIPs to collect, consolidate and disseminate
odd-lot information.
(i) odd-lot transaction information; \14\ and
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\14\ 17 CFR 242.600(b)(69)(i). The SIPs already collect,
consolidate and disseminate odd-lot transaction information, but it
was not required under Regulation NMS until the MDIR Final Rule.
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(ii) odd-lot quotations that are at a price greater than or
equal to the NBB \15\ and less than or equal to the NBO,\16\
aggregated at each price level at each securities exchange and
FINRA; \17\
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\15\ See IEX Rule 1.160(u).
\16\ See IEX Rule 1.160(u).
\17\ 17 CFR 242.600(b)(69)(ii).
The MDIR Final Rule set the compliance date for the exchanges and
SIPs to include odd-lot information in the core data disseminated
through the SIPs as 180 calendar days after the Commission's approval
of certain amendments to the SIP Plans required by the MDIR Final
Rule.\18\ Because the Commission disapproved those amendments to the
SIP Plans in September 2022, the compliance date for disseminating odd-
lot information through the SIPs was not set at that time.\19\
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\18\ See MDIR Final Rule, supra note 12 at 18700 n. 1355.
\19\ See Securities Exchange Act Release No. 95849, 87 FR 58592
(September 21, 2022) (File No. S7-24-89) (Order disapproving the UTP
Plan amendment) and Securities Exchange Act Release No. 95851
(September 21, 2022), 87 FR 58613 (SR-CTA/CQ-2021-03) (Order
disapproving the CTA/CQ Plan amendment).
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Thus, on September 18, 2024, in the Adopting Release, the
Commission set a compliance date of the first business day of May 2026
for the addition of odd-lot information to the core data
[[Page 21343]]
disseminated by the SIPs, as required by Rule 603(b) of Regulation
NMS.\20\
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\20\ 17 CFR 242.603(b)(3).
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Additionally, the Commission expanded the definition of odd-lot
information to include the ``best odd-lot order to buy and best odd-lot
order to sell'', which it defined as follows:
(iii) Best odd-lot order to buy and best odd-lot order to sell
(collectively the ``BOLO''). Best odd-lot order to buy is the
highest-priced odd-lot order to buy that is priced higher than the
NBB, and Best odd-lot order to sell is the lowest-priced odd-lot
order to sell that is priced lower than the NBO. The BOLO to buy/
sell is calculated and disseminated on a continuing basis by the SIP
Plans.\21\
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\21\ 17 CFR 242.600(b)(69)(iii).
The Commission recently issued an Exemptive Order allowing the
exclusive SIPs to defer implementation of the reporting and
dissemination of depth of book odd-lot information required by Rule
600(b)(69)(ii) for two years until May 2028.\22\ Thus, starting on May
1, 2026, the SIPs will begin disseminating the BOLO and the best odd-
lot bid and offer priced at or better than the NBBO from each exchange
and FINRA.\23\ And the SIPs will disseminate odd-lot quotations priced
between each exchange's and FINRA's best odd-lot bid or offer and the
NBBO for each NMS stock on or before May 2028.\24\ The Exchange will
provide the required odd-lot information to the SIPs in accordance with
the above implementation dates.
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\22\ See Securities Exchange Act Release No. 104612 (January 15,
2026), 91 FR 2577 (January 21, 2026) (Order Granting Temporary
Exemptive Relief, Pursuant to Section 36(a)(1) of the Securities
Exchange Act of 1934 from Compliance with Rule 600(b)(69)(ii) of
Regulation NMS).
\23\ See Press Release, SEC Grants Request for Exemption Related
to Dissemination of Odd-Lot Depth of Book, dated January 22, 2026,
available at <a href="https://www.prnewswire.com/news-releases/sec-grants-request-for-exemption-related-to-dissemination-of-odd-lot-depth-of-book-302668045.html#:%7E:text=NEW%20YORK%2C%20Jan.%2022%2C,quotation%20for%20each%20NMS%20stock">https://www.prnewswire.com/news-releases/sec-grants-request-for-exemption-related-to-dissemination-of-odd-lot-depth-of-book-302668045.html#:%7E:text=NEW%20YORK%2C%20Jan.%2022%2C,quotation%20for%20each%20NMS%20stock</a>.
\24\ Id.
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Thus, the Exchange proposes to amend IEX Rule 11.240, Trade
Execution, Reporting, and Dissemination of Quotations, to adopt
subparagraph (b)(3) to address the Exchange's odd-lot reporting
obligations under Rules 600 and 603 of Regulation NMS. As proposed,
subparagraph (b)(3) to IEX Rule 11.240 would provide that ``[p]ursuant
to Rule 603 of Regulation NMS under the Exchange Act and the January
15, 2026 Exemptive Order issued by the Commission, the Exchange will
transmit for display to the appropriate network processor the data
necessary to generate `odd-lot information', as the term is defined in
Rule 600 of Regulation NMS for each NMS Stock.''
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\25\ in general, and furthers the
objectives of Section 6(b)(1),\26\ in particular, in that it enables
the Exchange to be so organized as to have the capacity to be able to
carry out the purposes of the Act and to comply, and to enforce
compliance by its exchange members and person associated with the
exchange members, with the provisions of the Act, the rules and
regulations thereunder, and the rules of the Exchange. The Exchange
also believes that the proposed rule change is consistent with Section
6(b)(5) \27\ of the Act in that it is designed to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and 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.
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\25\ 15 U.S.C. 78f(b).
\26\ 15 U.S.C. 78f(b)(1).
\27\ 15 U.S.C. 78f(b)(5).
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As described in the Purpose section, the proposed change to IEX
Rule 11.240 is being made solely to conform the Exchange's
dissemination of consolidated market data to the SIPs with the
reporting obligations set forth in Rules 600 and 603 of Regulation
NMS.\28\ Specifically, the change will codify in the IEX's rules its
obligations under Rule 603(b) of Regulation NMS, which requires it to
report to the exclusive SIPs all data necessary to generate odd-lot
information.\29\ Thus, IEX believes that the proposed rule change would
reduce potential investor and market participant confusion and
therefore remove impediments to and perfect the mechanism of a free and
open market and a national market system by ensuring that the
Exchange's rules properly reflect the requirements of Rule 603(b)(3) of
Regulation NMS. The Exchange also believes that the proposed rule
change would remove impediments to and perfect the mechanism of a free
and open market by 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 proposed rule change
would be consistent with the public interest and the protection of
investors because investors will not be harmed and in fact would
benefit from the increased transparency and clarity, thereby reducing
potential confusion.
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\28\ See Adopting Release, supra note 6
\29\ 17 CFR 242.603(b)(3).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes the
proposed rule changes do not impose any burden on intramarket or
intermarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act. This proposed rule change is
not intended to address competitive issues but rather is concerned
solely with amending the Exchange's Rules to address the Exchange's
odd-lot reporting obligations under Rules 600 and 603 of Regulation
NMS.\30\
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\30\ See Adopting Release, supra note 6.
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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) \31\ of the Act and Rule 19b-4(f)(6) \32\
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.\33\
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\31\ 15 U.S.C. 78s(b)(3)(A).
\32\ 17 CFR 240.19b-4(f)(6).
\33\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to
give the Commission written notice of the Exchange's intent to file
the proposed rule change, along with a brief description and text of
the proposed rule change, at least five business days prior to the
date of filing of the proposed rule change, or such shorter time as
designated by the Commission. The Exchange has satisfied this
requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \34\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\35\ the
[[Page 21344]]
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 period.
The Commission believes that the proposal would allow the Exchange to
comply with the odd-lot reporting obligations under Rules 600 and 603
of Regulation NMS that are to be implemented on May 1, 2026. For these
reasons, the Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest, and designates the proposed rule change to be operative upon
filing with the Commission.\36\
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\34\ 17 CFR 240.19b-4(f)(6).
\35\ 17 CFR 240.19b-4(f)(6)(iii).
\36\ For purposes only of waiving the operative delay for this
proposal, the Commission has 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.\37\ If the
Commission takes such action, the Commission shall institute
proceedings to determine whether the proposed rule change should be
approved or disapproved.
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\37\ 15 U.S.C. 78s(b)(3)(C).
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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#780a0d141d551b1715151d160c0b380b1d1b561f170e"><span class="__cf_email__" data-cfemail="a7d5d2cbc28ac4c8cacac2c9d3d4e7d4c2c489c0c8d1">[email protected]</span></a>. Please include
file number SR-IEX-2026-09 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-2026-09. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<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-2026-09 and
should be submitted on or before May 12, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\38\
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\38\ 17 CFR 200.30-3(a)(12) and (59).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2026-07692 Filed 4-20-26; 8:45 am]
BILLING CODE 8011-01-P
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