Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt Rule 20.140A (Select Provisions of Options Listing Procedures Plan) To Apply Uniform Objective Standards to the Range of Options Series Exercise (or Strike) Prices Available for Trading on the Exchange

Issuing agencies

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<title>Federal Register, Volume 91 Issue 189 (Thursday, October 1, 2026)</title>
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[Federal Register Volume 91, Number 189 (Thursday, October 1, 2026)]
[Notices]
[Pages 62569-62571]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20073]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106515; File No. SR-IEX-2026-35]


Self-Regulatory Organizations; Investors Exchange LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Adopt 
Rule 20.140A (Select Provisions of Options Listing Procedures Plan) To 
Apply Uniform Objective Standards to the Range of Options Series 
Exercise (or Strike) Prices Available for Trading on the Exchange

September 28, 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 September 23, 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 rule change proposal to adopt Rule 20.140A (Select 
Provisions of Options Listing Procedures Plan) to apply uniform 
objective standards to the range of options series exercise (or strike) 
prices available for trading on the Exchange. The Exchange has 
designated this rule change as ``non-controversial'' under Section 
19(b)(3)(A) of the Act \6\ and provided the Commission with the notice 
required by Rule 19b-4(f)(6) thereunder.\7\
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    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CFR 240.19b-4.
    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4.
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    The text of the proposed rule change is available at the Exchange's 
website at <a href="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.

[[Page 62570]]

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 adopt Rule 20.140A (Select Provisions of 
Options Listing Procedures Plan) to apply uniform objective standards 
to the range of options series exercise (or strike) prices available 
for trading on the Exchange.
    The Options Listings Procedure Plan (``OLPP'') was approved by the 
Commission on July 6, 2001, and has been amended several times.\8\ The 
OLPP provides procedures for: (i) listing and trading new option 
classes; (ii) selecting new options series; (iii) petitioning the 
Options Clearing Corporation (``OCC'') to review the eligibility, 
pursuant to the exchanges' listing standards, of a selected option 
class without delaying the trading of that option class; (iv) 
determining operational details for option contracts adjusted pursuant 
to OCC By-Laws; (v) admitting new sponsors; and (vi) losing eligibility 
to participate in the OLPP.
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    \8\ See e.g., Securities Exchange Act Release Nos. 44521 (July 
6, 2001), 66 FR 36809 (July 13, 2001) (order approving OLPP); 58205 
(July 22, 2008), 73 FR 43798 (July 28, 2008) (order granting 
permanent approval to amendment no. 1 to the OLPP); 58630 (September 
24, 2008) 73 FR 57166 (October 1, 2008) (order granting permanent 
approval to amendment no. 2 to the OLPP); 60531 (August 19, 2009), 
74 FR 43173 (August 26, 2009) (order approving amendment 3 to the 
OLPP); and 104892 (February 25, 2026), 91 FR 10168 (March 2, 2026) 
(order approving amendment to OLPP to create a forum for discussion 
concerning plan matters).
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    IEX makes this rule filing proposal to codify certain provisions of 
the OLPP pertaining to selecting new option series and certain strike 
setting parameters that have been adopted under the OLPP. The Exchange, 
which recently became a Plan Sponsor of the OLPP,\9\ believes that it 
is helpful to codify select provisions into the rules of IEX Options, 
so that all applicable rules governing series selection and applicable 
strike setting parameters are located in a single place. In addition, 
the Exchange makes this filing because several other Participant 
Exchanges have similar (essentially identical \10\) rules that are all 
designed to ensure consistence and compliance with the OLPP.\11\
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    \9\ See Securities Exchange Act Release No. 106209 (August 27, 
2026), 91 FR 56253 (September 1, 2026) (plan amendment adding IEX as 
a Plan Sponsor of the OLPP).The other Plan Sponsors are: BOX 
Exchange LLC; Cboe BZX Exchange, Inc.; Cboe C2 Exchange, Inc.; Cboe 
EDGX Exchange, Inc.; Cboe Exchange, Inc. (``CBOE''); MEMX LLC; MX2 
LLC; Miami International Securities Exchange LLC (``MIAX''); MIAX 
Emerald, LLC; MIAX PEARL, LLC; MIAX Sapphire, LLC; Nasdaq Texas, 
Inc.; Nasdaq GEMX, LLC; Nasdaq ISE, LLC (``Nasdaq ISE''); Nasdaq 
MRX, LLC; Nasdaq PHLX LLC; the Nasdaq Stock Market LLC; NYSE 
American LLC; NYSE Arca, Inc. (``NYSE Arca''); and the Options 
Clearing Corporation.
    \10\ The only differences between proposed Rule 20.140A and the 
rules of other Participant Exchanges are the internal cross-
references and terminology in each exchange's rules.
    \11\ See e.g., CBOE Rule 4.7; MIAX Rule 404A; Nasdaq ISE Options 
4 Section 6; and NYSE Arca Rule 6.4A-O.
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    Amendment 3 to the OLPP \12\ adopted uniform objective standards to 
the range of options series exercise (or strike) prices available for 
trading on Participant Exchanges to the OLPP as a quote mitigation 
strategy. The Exchange is proposing to codify the changes made to the 
OLPP by Amendment 3 by adopting new Rule 20.140A (Select Provisions of 
Options Listing Procedures Plan). The Exchange is proposing to create a 
new rule that can be easily amended in the future if other amendments 
to the OLPP are made which similarly warrant being codified into IEX 
Options rules.
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    \12\ See Securities Exchange Act Release No. 60531 (August 19, 
2009), 74 FR 43173 (August 26, 2009) (order approving amendment 3 to 
the OLPP).
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2. Statutory Basis

    The Exchange believes that the proposed rule change is consistent 
with the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\13\ Specifically, the Exchange believes the proposed rule change 
is consistent with the Section 6(b)(5) \14\ requirements that the rules 
of an exchange be 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. 
Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \15\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ Id.
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    In particular, the Exchange believes that codifying certain 
provisions of the OLPP into new Rule 20.140A serves to foster investor 
protection by allowing the Exchange to list options series that have 
been viewed as beneficial to traders, investors, and the investing 
public. The proposal to permit series to be added based on after-market 
trading 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 mechanisms of a free and open market and a national 
market system, by allowing the Exchange to make series available for 
trading with reduced operational difficulties. The Exchange notes that 
this proposed change, which is consistent with the OLPP should provide 
market participants with earlier notice regarding what options series 
will be available for trading the following day, and should help to 
enhance investors' ability to plan their options trading.
    The Exchange notes that this rule filing does not propose any new 
provisions that have not already been approved by the Commission in the 
amended OLPP \16\ or the other exchange rules that codify select 
provisions of the OLPP, which the Commission allowed to become 
immediately effective upon filing.\17\ Thus, this rule filing raises no 
new or novel issues that have not previously been considered by the 
Commission in connection with the OLPP and the rules of other options 
exchanges.
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    \16\ See supra, note 12.
    \17\ See supra, note 11.
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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. Specifically, the Exchange 
believes that by conforming Exchange rules to the OLPP, the Exchange 
would promote regulatory clarity and consistency, thereby reducing 
burdens on the marketplace and facilitating investor protection. The 
Exchange believes that adopting rules

[[Page 62571]]

like those adopted by other Participant Exchanges, would allow for 
continued competition between Exchange market participants trading 
similar products as their counterparts on other exchanges, while at the 
same time allowing the Exchange to continue to compete for order flow 
with other exchanges in option issues.

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) \18\ of the Act and Rule 19b-4(f)(6) \19\ 
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.\20\
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    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(6).
    \20\ 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) \21\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\22\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay period. 
Specifically, the waiver would enable the proposed rule change to 
become operative prior to October 2, 2026, when IEX Options would 
commence trading, and would provide clarity to market participants that 
like other options markets, the rules of IEX Options incorporate select 
provisions of the OLPP. For these reasons, waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest, and the Commission designates the proposed rule change to be 
operative upon filing with the Commission.\23\
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    \21\ 17 CFR 240.19b-4(f)(6).
    \22\ 17 CFR 240.19b-4(f)(6)(iii).
    \23\ For purposes only of waiving the 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. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \24\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \24\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

    <bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#3240475e571f515d5f5f575c4641724157511c555d44"><span class="__cf_email__" data-cfemail="5725223b327a34383a3a323923241724323479303821">[email&#160;protected]</span></a>. Please include 
file number SR-IEX-2026-35 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-2026-35. 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-2026-35 and should be submitted on 
or before October 22, 2026.


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
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    \25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-20073 Filed 9-30-26; 8:45 am]
BILLING CODE 8011-01-P


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