Notice2026-10542
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Update the Options Opening Process
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
May 28, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 102 (Thursday, May 28, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 102 (Thursday, May 28, 2026)]
[Notices]
[Pages 31813-31817]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10542]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105546; File No. SR-IEX-2026-15]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Update
the Options Opening Process
May 22, 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 May 12, 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, II
and III 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
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 Securities
Exchange Act of 1934 (``Act''),\4\ and Rule 19b-4 thereunder,\5\
Investors Exchange LLC (``IEX'' or ``Exchange'') is filing with the
Securities and Exchange Commission (``Commission'') a proposed rule to
replace the current price discovery auction opening process for option
series with a simpler deterministic midpoint crossing process. 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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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 Rule 22.160 \8\ to replace the
current price discovery auction opening
[[Page 31814]]
process \9\ for option series with a simpler deterministic midpoint
crossing process opening process. As proposed, the opening process
would be based on sequential evaluations of market conditions. If there
is a possible trade on IEX, the Exchange would determine a single
opening price for the series as the midpoint of the NBBO,\10\ rounded
up if necessary. After the opening price has been established, the
Exchange would match existing orders and quotes in the System \11\
based on a pro-rata allocation at the opening price until there is no
remaining volume or there is an imbalance of orders. Orders not
matched, in whole or in part, will be handled at the conclusion of the
Opening Process as specified in proposed Rule 22.160(d).
---------------------------------------------------------------------------
\8\ Conforming and related amendments are also proposed to Rules
22.250 and 22.260.
\9\ Currently Rule 22.160--Market Opening Procedures--provides
for the determination of an opening price for an option series based
on a price discovery auction of quotes and orders from liquidity
providers on the Exchange's order book that results in the
determination of an opening price. See Rule 22.160.
\10\ See Rule 17.100.
\11\ ``System'' means the automated trading system used by IEX
Options for the trading of options contracts. See Rule 22.100(a).
---------------------------------------------------------------------------
If no trade is possible on the Exchange (because there are no
quotes or orders in the series that could be matched at any price), the
Exchange would open the series without determining an opening price by
disseminating the best bid and offer among quotes and orders that exist
in the System at that time.
The Exchange believes the proposed opening process, which would
apply to the opening of trading at the start of Regular Market Hours
\12\ and during the resumption of trading following a trading halt,
will be less operationally complex than the current process, while
providing a fair, neutral execution benchmark tied to the prevailing
market.\13\ As discussed below, the proposed process is based on MIAX
Sapphire's opening process \14\ with several minor differences to
account for different rule structures and allocation methodologies.\15\
---------------------------------------------------------------------------
\12\ ``Regular Market Hours'' means the time between 9:30 a.m.
and 4:00 p.m. Eastern Time (``ET''). See Rule 1.160(gg).
\13\ IEX anticipates launching its options market in October
2026. On September 18, 2025, the Commission approved IEX's proposed
rules to govern the trading of options contracts on IEX. See
Securities Exchange Act Release No. 103998 (September 18, 2025), 90
FR 45861 (September 23, 2025).
\14\ See MIAX Sapphire Rule 503.
\15\ See Rule 22.170(b) (pro rata allocation) and MIAX Sapphire
Rule 514(b) (price-time allocation).
---------------------------------------------------------------------------
Proposal
Initiation of the Opening Process
The Exchange proposes to initiate the Opening Process when the
``Market for the Underlying Security'' \16\ first disseminates, at or
after 9:30 a.m. ET, both a two-sided quote on the underlying security
and a trade of any size that is at or within the quote (i.e., the
``Opening Trigger''). The proposed rule text defines ``Opening
Trigger'' in substantially the same way as the definition of ``Auction
Trigger'' in the current rule text, except that the Exchange proposes
to replace the term ``Primary Market'' with the ``Market for the
Underlying Security.'' The latter is a broader term that encompasses
not just the listing exchange for the underlying security, but also the
market with the most liquidity in the underlying security for the
previous two months or the first market to open the underlying
security.\17\ In the case of opening following a trading halt, the
Opening Trigger would be a resume message from the Market for the
Underlying Security followed by a two-sided quote and a trade of any
size that is at or within the quote in the underlying security.\18\
---------------------------------------------------------------------------
\16\ See proposed Rule 22.160(a)(3); MIAX Sapphire Rule
503(a)(3). The Exchange proposes to determine the Market for the
Underlying Security on a class-by-class basis and will publish this
information on the Exchange's website.
\17\ The Exchange would determine the Market for the Underlying
Security on a class-by-class basis, announced to Members on the IEX
website.
\18\ See proposed Rule 22.160(a)(4)(B).
---------------------------------------------------------------------------
Following receipt of the Opening Trigger, the Exchange will
disseminate a message to market participants indicating the initiation
of the Opening Process and the System will pause for a period of time
no longer than one-half second to allow the market to absorb the
information.\19\ However, under proposed Rule 22.160(c)(1), the opening
process (or resumption of trading following a halt) would not proceed
if the best bid(s) (offer(s)) disseminated by away options exchanges
(the ``Away Best Bid or Offer'' or ``ABBO'') \20\ is crossed.
---------------------------------------------------------------------------
\19\ See proposed Rule 22.160(c).
\20\ See proposed Rule 17.100.
---------------------------------------------------------------------------
As proposed, quotes, limit orders designated ``Day,'' and market
orders (collectively defined as ``Eligible Interest'') may be entered
into the System beginning at 8:00 a.m. ET, and will be eligible to
participate in the Opening Process.\21\ Quotes and limit orders with a
time in force of Immediate or Cancel (``IOC'') are not included in the
definition of Eligible Interest and may only be entered following the
transition to continuous trading, as set forth in proposed Rule
22.160(d).
---------------------------------------------------------------------------
\21\ See proposed Rule 22.160(a)(2).
---------------------------------------------------------------------------
Opening Process Where There Is a Possible Trade on the Exchange
The Opening Process would initially determine whether there is
locking or crossing interest in the option series on the Exchange or
interest on the Exchange that locks or crosses the NBB \22\ or NBO.\23\
If so, the NBBO bid/ask differential must be within a specified range,
i.e., the ``Valid Width NBBO.'' \24\ Under proposed Rule 22.160(a)(5),
Valid Width NBBO means the combination of all away market quotes and
any combination of Market Maker \25\ orders and quotes received from a
minimum number of Away Markets and a minimum number of Market Makers
within a specified bid/ask differential.\26\ However, away markets that
are crossed would void all Valid Width NBBO calculations, and the
Exchange would exclude from the Valid Width NBBO calculation any Market
Maker orders or quotes on the Exchange that are crossed internally. The
Exchange would consider any IEX Market Maker orders or quotes that lock
or cross the ABBO to be at the locked or crossed ABBO price for
purposes of calculating the Valid Width NBBO. The Exchange proposes to
determine the bid/ask differentials for the Valid Width NBBO based on
the underlying security and publish them on the IEX Options website.
---------------------------------------------------------------------------
\22\ See Rule 17.100.
\23\ See Rule 17.100.
\24\ See proposed Rule 22.160(c)(1)(A).
\25\ See Rule 17.100.
\26\ See proposed Rule 22.160(c)(1)(5).
---------------------------------------------------------------------------
In either scenario described above (locking or crossing interest on
the Exchange or interest on the Exchange that locks or crosses the NBB
or NBO), provided that a Valid Width NBBO is present, the Exchange will
determine a single price at which the option series will be opened (the
``Opening Price'') which will be the midpoint of the Valid Width NBBO
(the ``NBBO Midpoint'').\27\
---------------------------------------------------------------------------
\27\ See proposed Rule 22.160(c)(2)(A).
---------------------------------------------------------------------------
Opening Process Matching Methodology
Once the Exchange has established an Opening Price in the manner
set forth above, the Exchange proposes to execute matches of Eligible
Interest at the Opening Price and will continue to do so until there is
no remaining volume or an imbalance of orders. The Exchange proposes to
retain the existing ``Auction Ranking'' provision in current Rule
22.160(b), which it proposes to rename ``Opening Order Ranking'' and to
make minor conforming and clarifying edits in the proposed rule
text.\28\ Accordingly,
[[Page 31815]]
market orders will be ranked ahead of limit orders; limit orders and
quotes will be ranked by their limit price; and orders and quotes at
the same price will be allocated pursuant to Rule 22.170,\29\ but
without Market Maker or Specialist entitlements.\30\ The Exchange notes
that this provision differs from MIAX Sapphire's opening process
because IEX will use a pro rata allocation method, whereas MIAX
Sapphire uses a price-time allocation method.\31\
---------------------------------------------------------------------------
\28\ The Exchange proposes to add a clarifying preamble to the
first sentence: ``[i]f there is an imbalance of orders and quotes
that are potentially eligible to participate in the Opening
Process.'' In addition, the Exchange proposes to change the order of
the subparagraphs so that the current subparagraph (2) will be new
subparagraph (1), also for clarifying purposes. The remaining edits
are conforming edits to replace the term ``Auction'' with the term
``Opening Process.''
\29\ Rule 22.170(b) sets forth the Exchange's pro rata
allocation methodology: ``[R]esting quotes and orders on the IEX
Options Book are prioritized according to price. If there are two or
more quotes or orders at the best price, then the contracts are
allocated proportionally according to size (in a pro-rata fashion),
rounded down to the nearest whole contract. If there are residual
contracts to be filled, the quote or order with the largest
remaining size (based on the pro rata calculation) will receive the
first contract, and each successive contract (if any) will be
allocated to each subsequent quote or order based on size (largest
to smallest). If there are two or more quotes or orders with the
same remaining size, then the quote or order with the first time
priority will be allocated [to] the next contract. Each successive
contract (if any) will be allocated in the same manner.
\30\ See proposed Rules 22.160(b) and 22.160(c)(2)(B).
\31\ See MIAX Sapphire Rule 503(b)(2)(ii).
---------------------------------------------------------------------------
Any unexecuted contracts at the conclusion of the Opening Process
will be handled as set forth in the ``Transition to Continuous
Trading'' section in proposed Rule 22.160(d), as described below.\32\
The Exchange will report all executions in the Opening Process at the
Opening Price, trade reported anonymously, and disseminated via a
national market system plan.\33\ In addition, the Exchange proposes new
rule text providing that if a Market Maker using the same MPID submits
orders that lock or cross each other during the Opening Process, the
System would cancel the oldest order or quote before execution.\34\
---------------------------------------------------------------------------
\32\ See proposed Rule 22.160(c)(2)(C).
\33\ See proposed Rule 22.160(c)(2)(D).
\34\ See proposed Rule 22.160(f). The proposed rule text is
based substantially on MIAX Sapphire Rule 503(d).
---------------------------------------------------------------------------
Opening Process Where There Is No Possible Trade on the Exchange
If there is no locking or crossing interest on the Exchange or
interest on the Exchange that locks or crosses the NBB or NBO, the
Exchange would open the series without determining an opening price
\35\ based on one of the following: (i) a Valid Width NBBO is present;
(ii) a certain minimum number of exchanges have disseminated a firm
quote on OPRA; or (iii) after a configured time out period has
elapsed.\36\ The Exchange would open the series for trading by
disseminating the Exchange's best bid and offer among quotes and orders
that exist in the System at that time to OPRA and proprietary data
feeds. Any remaining orders in the System would be handled pursuant to
proposed Rule 22.160(d), ``Transition to Continuous Trading,'' as
described below. The Exchange is not proposing any changes to its order
processing rule during a trading halt.\37\
---------------------------------------------------------------------------
\35\ See proposed Rule 22.160(c)(3).
\36\ See proposed Rule 22.160(c)(1)(B)(i)-(iii). The Exchange
would post the applicable period of time that will apply under
proposed Rule 22.160(c)(1)(B)(iii) on its website.
\37\ See Rule 22.160(g). During a trading halt, the Exchange
would process new and existing orders and quotes by (i) canceling
all resting Market Maker quotes in the series; (ii) re-pricing all
other resting orders on the IEX Options Book to their limit price;
(iii) accepting and processing all cancellations; (iv) rejecting
incoming IOC Limit orders; (v) accepting all other incoming order
and quote messages and instructions until the Trading Halt Opening
Process, at which point the proposed Rule 22.160(c) of this Rule
will govern the entry of incoming orders, quotes, and order
instructions; and (vi) disseminating any zero bid and zero offer
quote to OPRA and proprietary data feeds.
---------------------------------------------------------------------------
Transition to Continuous Trading
After the Opening Process is completed, orders and quotes received
prior to the Opening Process, and not executed in full during the
Opening Process, will be transitioned to the continuous order book and
handled in accordance with existing IEX rules, as applicable.
Accordingly, IEX proposes conforming edits to Rule 22.160(f) (now re-
lettered as (d)) to reflect this approach.
Deviations From the Standard Opening Process
The Exchange proposes to amend the existing provision in Rule
22.160(h) that provides that when in the judgment of the Exchange the
interests of fair and orderly markets require the Exchange may adjust
the timing of or suspend the Auctions. As proposed, new paragraph (e)
to Rule 22.160 will provide that the Exchange's Market Operations
personnel would be authorized to manually override the standard Opening
Process, including to delay or compel the opening of any series in any
option class, when necessary in the interests of commencing or
maintaining a fair and orderly market, in the event of unusual market
conditions or in the public interest.\38\ This could be appropriate if,
for example, a series would otherwise be unable to open because the
Market Maker assigned to the option class is experiencing technical
difficulties and not entering quotes on IEX. As a result, there would
not be a Valid Width NBBO, which requires quotes from at least one IEX
Market Maker.\39\ In this situation, the deviation would enable locking
or crossing interest on the IEX Options Book to execute at the Opening
Price. The proposed rule text is based on MIAX Sapphire Rule 503(c).
---------------------------------------------------------------------------
\38\ The Exchange also proposes that it will make and maintain
records to document and periodically review all determinations to
deviate from the standard manner of the Opening Process.
\39\ The opening process for when there is not a potential trade
on IEX would not be applicable in this situation if there were
locking or crossing interest on IEX.
---------------------------------------------------------------------------
* * * * *
Accordingly, as described above, the Exchange proposes to replace
the current opening auction rule with proposed rule text that is
substantially similar to MIAX Sapphire Rule 503, with certain
differences, as discussed in the Statutory Basis section.
Terminology Changes
As proposed, IEX would replace the term ``Auction'' with ``Opening
Process'' throughout current Rule 22.160, including replacing the terms
``Core Open Auction'' with ``Core Opening Process,'' ``Trading Halt
Open Auction'' with ``Trading Halt Opening Process,'' and ``Auction
Trigger'' with ``Opening Trigger''.
IEX also proposes to add the following terms to Rule 22.160(a), as
described above: ``Eligible Interest'', ``Market for the Underlying
Security'', ``Opening Trigger'', and ``Valid Width National Best Bid or
Offer (or Valid Width NBBO)'', and Away Best Bid or Offer (or ABBO).
Each of these terms are included in MIAX Sapphire Rule 503.\40\ In
addition, the Exchange proposes to delete certain terms and provisions
from the current rule text of Rule 22.160, which are no longer
applicable.\41\
---------------------------------------------------------------------------
\40\ The Exchange proposes to retain the term ``Away Market'' in
Rule 22.160.
\41\ The Exchange proposes to delete: Auction Collar (Rule
22.160(a)(2)); Auction Imbalance Information (Rule 22.160(a)(3));
Auction Price (Rule 22.160(a)(4)); Auction Process (Rule
22.160(a)(5); Auction Processing Period (Rule 22.160(a)(6));
Calculated NBBO (Rule 22.160(a)(9)); Indicative Match Price (Rule
22.160(a)(10)); Legal Width Quote (Rule 22.160(a)(11)); Matched
Volume (Rule 22.160(a)(12)); Rule 22.160(c)(2); Rule
22.160(c)(2)(5); Rule 22.160(c)(3) (Opening MMQ Timers); Rule
22.160(c)(4); Rule 22.160(e) (Order Processing during an Auction
Processing Period); Rule 22.160(f)(1), (f)(2), and (f)(3)(B)
(Transition to Continuous Trading); and Rule 22.160(h).
---------------------------------------------------------------------------
Conforming Edits in Other IEX Rules
The Exchange proposes to amend Rule 22.100(h) (definition of Anti-
Internalization Qualifier (``AIQ'') modifier), 22.250(c)(1)(A)(ii)
[[Page 31816]]
(Automated Breach Actions for Pre-Trade Risk Controls) and Rule
22.260(a)(1)(B) (Additional Price Protection Mechanisms and Risk
Controls) to replace references to ``Auction'' and the pre-open state
with ``Opening Process.''
The Exchange also proposes to amend Rule 22.250(c)(F)(ii)
(Activity-Based Risk Controls) and Rule 22.250(c)(3)(D)(ii) (Global
Risk Controls) to replace references to the ``Core Open Auction'' with
``Core Opening Process.''
In addition, the Exchange proposes conforming edits to Rules
22.260(a)(2) (Limit Order Price Protection) and (d)(3)(D)(ii) (Price
Reasonability Checks--Intrinsic Value Checks) to replace the term
``Auction Price'' with ``Opening Price'', and the term ``Auction
Collar'' with ``Valid Width NBBO.'' The Exchange also proposes to amend
Rule 22.260(e)(1) (Drill-Through Protection) to replace ``Auction
Process'' with ``Opening Process'', and ``Auction Collar'' with ``Valid
Width NBBO.''
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act \42\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \43\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in, securities, 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.
---------------------------------------------------------------------------
\42\ 15 U.S.C. 78f(b).
\43\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
As described in the Purpose section, the proposed opening process
is substantially similar to MIAX Sapphire's opening process set forth
in its Rule 503, with several differences as follows:
First, the Exchange would execute matches of Eligible Interest at
the Opening Price based on the pro rata allocation methodology set
forth in Rule 22.170(b), whereas MIAX Sapphire uses a price-time
allocation methodology.\44\ This difference is consistent with the
allocation methodologies reflected in each exchanges' rules. The
Exchange notes that other options exchanges use a pro rata allocation
methodology for their opening process.\45\
---------------------------------------------------------------------------
\44\ See proposed IEX Rule 22.160(b).
\45\ See, e.g., NYSE Amex Rules 952NYP(b) and 964NYP(c)-(g).
---------------------------------------------------------------------------
Second, while MIAX Sapphire's Opening Process may be triggered
based solely on a quote or a trade in the underlying security,\46\ the
Exchange would only initiate an Opening Process after a quote and a
trade have occurred in the underlying security. The Exchange believes
that requiring a trade in addition to a quote to trigger the Opening
Process would provide additional protections to confirm that trading in
the underlying security reflects adequately stable pricing to support
reasonably informed derivative pricing. The Exchange notes that other
options exchanges also wait for both a quote and trade before
initiating an opening process.\47\
---------------------------------------------------------------------------
\46\ See MIAX Sapphire Rule 503(b).
\47\ See NYSE Amex Rule 952NYP(a)(7) and NYSE Arca Rule 6.64P-
O(a)(7).
---------------------------------------------------------------------------
Third, the Exchange would cancel resting Market Maker quotes during
a trading halt in accordance with current Rule 22.160(g), while MIAX
Sapphire does not. IEX believes that this approach is preferable
because pricing when trading resumes after a halt can often be
materially different, and notes that several other options exchanges
also cancel resting market maker quotes during a trading halt.\48\
---------------------------------------------------------------------------
\48\ See NYSE Amex Rule 952NYP(g) and NYSE Arca Rule 6.64P-O(g).
---------------------------------------------------------------------------
In sum, the Exchange believes the proposed rule change is
consistent with the protection of investors and the public interest
because it is designed to provide a robust opening process that would
(i) result in an opening price based on a neutral execution benchmark
(i.e., the midpoint of the NBBO) tied to the prevailing market, and not
based on potentially erroneous or stale reference prices (i.e., when
the ABBO or an away market is crossed) when there is a possible trade
on IEX; (ii) provide for an appropriate fallback process when there is
not a potential execution on IEX to enable the Exchange to open a
series for trading; (iii) provide for a consistent, orderly transition
to continuous trading at the conclusion of the Opening Process; and
(iv) be less operationally complex and resource intensive for the
Exchange and Options Members compared to the current auction process.
Moreover, and as discussed above, the proposed Opening Process is
based on existing rules of MIAX Sapphire and other options exchanges
that have already been considered by the Commission. Accordingly, the
Exchange does not believe that the proposed rule change raises any new
or novel issues.
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 does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. To the contrary,
the proposal is designed to enhance IEX's competitiveness with other
options exchanges by providing a robust opening process that will be
less operationally complex, less resource intensive, and simpler than
the process reflected in the Exchange's current rules. Moreover,
competing exchanges have and can continue to adopt comparable opening
processes, subject to the SEC rule filing process, as discussed in the
Purpose section.
The Exchange also does not believe that the proposed rule change
will impose any burden on intramarket competition that is not necessary
or appropriate in furtherance of the purposes of the Act. All Options
Members will be eligible to submit orders to the Exchange for potential
execution in the Opening Process. Further, all Members are eligible to
become Options Market Makers, subject to meeting applicable
requirements; \49\ and could thereby submit quotes to the Exchange for
potential execution in the Opening Process. Moreover, to the extent the
proposed change increases the posting of liquidity for potential
execution in IEX's opening process, it would thereby provide potential
benefits to all Options Members and market participants by providing
additional trading opportunities.
---------------------------------------------------------------------------
\49\ See Rule 23.120.
---------------------------------------------------------------------------
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) \50\ of the Act and Rule 19b-4(f)(6) \51\
thereunder. Because the proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii)
[[Page 31817]]
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.
---------------------------------------------------------------------------
\50\ 15 U.S.C. 78s(b)(3)(A).
\51\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change meets the
criteria of subparagraph (f)(6) of Rule 19b-4 \52\ because it would not
significantly affect the protection of investors or the public
interest. Rather, the proposed rule change is designed to benefit
investors and the public interest by providing for a simple
deterministic midpoint crossing opening process that will provide a
fair, neutral execution benchmark tied to the prevailing market.
Moreover, as described in the Purpose and Statutory Basis sections, the
proposed rule change is substantially similar to the opening process
used by MIAX Sapphire, with differences based on existing rules of
other options exchanges. Accordingly, the Exchange believes that this
proposed rule change is non-controversial because it raises no new or
novel issues not already considered by the Commission. Accordingly, the
Exchange believes that the proposed rule change is eligible for
immediate effectiveness.\53\
---------------------------------------------------------------------------
\52\ 17 CFR 240.19b-4(f)(6).
\53\ See Securities Exchange Act Release No. 58092 (July 3,
2008), 73 FR 40144 (July 11, 2008) (concerning 17 CFR 200 and 241).
---------------------------------------------------------------------------
Furthermore, Rule 19b-4(f)(6) requires a self-regulatory
organization to give the Commission written notice of its intent to
file the proposed rule changes 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.\54\
---------------------------------------------------------------------------
\54\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
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) \55\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\55\ 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#6a181f060f47090507070f041e192a190f09440d051c"><span class="__cf_email__" data-cfemail="780a0d141d551b1715151d160c0b380b1d1b561f170e">[email protected]</span></a>. Please include
file number SR-IEX-2026-15 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-2026-15. 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-2026-15 and should be submitted on
or before June 18, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\56\
---------------------------------------------------------------------------
\56\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-10542 Filed 5-27-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on May 28, 2026.
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.