Self-Regulatory Organizations: Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Correct Nonsubstantive Conflicting Rule Text in Rule 11.190, 38723-38725 [2017-17172]
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Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices
Oral presentations may not exceed ten
(10) minutes. The time for individual
presentations may be reduced
proportionately, if necessary, to afford
all participants who have submitted a
timely request an opportunity to be
heard.
Participants wishing to submit a
written statement for the record must
submit a copy of such statement to
OPIC’s Corporate Secretary no later than
5 p.m. Wednesday, August 30, 2017.
Such statement must be typewritten,
double spaced, and may not exceed
twenty-five (25) pages.
Upon receipt of the required notice,
OPIC will prepare an agenda, which
will be available at the hearing, that
identifies speakers, the subject on which
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A written summary of the hearing will
be compiled, and such summary will be
made available, upon written request to
OPIC’s Corporate Secretary, at the cost
of reproduction.
Written summaries of the projects to
be presented at the September 14, 2017,
Board meeting will be posted on OPIC’s
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CONTACT PERSON FOR INFORMATION:
Information on the hearing may be
obtained from Catherine F.I. Andrade at
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408–0297, or via email at
Catherine.Andrade@opic.gov.
Dated: August 11, 2017.
Catherine F.I. Andrade,
OPIC Corporate Secretary.
[FR Doc. 2017–17316 Filed 8–11–17; 4:15 pm]
BILLING CODE 3210–01–P
POSTAL REGULATORY COMMISSION
[Docket Nos. MC2017–169 and CP2017–262]
New Postal Products
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
negotiated service agreements. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: August 17,
2017.
mstockstill on DSK30JT082PROD with NOTICES
SUMMARY:
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
ADDRESSES:
VerDate Sep<11>2014
17:15 Aug 14, 2017
Jkt 241001
telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Docketed Proceeding(s)
I. Introduction
The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the market dominant or
the competitive product list, or the
modification of an existing product
currently appearing on the market
dominant or the competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s Web site (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3007.40.
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
1. Docket No(s).: MC2017–169 and
CP2017–262; Filing Title: Request of the
United States Postal Service to Add
PO 00000
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Priority Mail Contract 340 to
Competitive Product List and Notice of
Filing (Under Seal) of Unredacted
Governors’ Decision, Contract, and
Supporting Data; Filing Acceptance
Date: August 9, 2017; Filing Authority:
39 CFR 3020.30; Public Representative:
Matthew R. Ashford; Comments Due:
August 17, 2017.
This notice will be published in the
Federal Register.
Stacy L. Ruble,
Secretary.
[FR Doc. 2017–17217 Filed 8–14–17; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81365; File No. SR–IEX–
2017–26]
Self-Regulatory Organizations:
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Correct
Nonsubstantive Conflicting Rule Text
in Rule 11.190
August 9, 2017.
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 August
8, 2017, 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.
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 change
to correct nonsubstantive conflicting
rule text related to the behavior of
market orders entered during the PreMarket Session 6 marked DAY that are
eligible to participate in either auctions
for IEX-listed securities pursuant to
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(1).
5 17 CRF 240.19b–4.
6 See Rule 1.160(z).
2 15
II. Docketed Proceeding(s)
38723
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Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices
Rule 11.350, or the opening process for
non-IEX-listed securities pursuant to
Rule 11.231. The Exchange has
designated this rule change as ‘‘noncontroversial’’ under Section 19(b)(3)(A)
of the Act 7 and provided the
Commission with the notice required by
Rule 19b–4(f)(6) thereunder.8
The text of the proposed rule change
is available at the Exchange’s Web site
at www.iextrading.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and 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 statement [sic] 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.
mstockstill on DSK30JT082PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
filing is to correct nonsubstantive
conflicting rule text related to the
queuing behavior of market orders
entered during the Pre-Market Session
marked DAY that are eligible to
participate in auctions for IEX-listed
securities pursuant to Rule 11.350, or in
the opening process for non-IEX-listed
securities pursuant to Rule 11.231. On
April 13, 2017, IEX filed with the
Commission a proposed rule change to
amend IEX Rule 11.231 to modify the
manner in which the Exchange opens
trading for non-IEX-listed securities
beginning at the start of Regular Market
Hours; and to amend IEX Rules 11.190
and 11.220 to specify the order types
eligible to participate in the proposed
opening process for non-IEX listed
securities and the priority of such orders
(the ‘‘Opening Process’’). The proposed
rule change for the Opening Process was
published for comment in the Federal
Register on April 28, 2017.9 On April
20, 2017, IEX filed with the Commission
a proposed rule change to adopt rules
7 15
U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4.
9 See Securities Exchange Act Release No. 80514
(April 24, 2017), 82 FR 19763 (April 28, 2017).
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governing auctions in IEX-listed
securities, provide for the dissemination
of auction related market data, and
establish rules relating to trading halts
and pauses (‘‘IEX Auctions’’). The
proposed rule change for IEX Auctions
was published for comment in the
Federal Register on May 9, 2017.10 On
July 24th 2017, the Commission
approved on an accelerated basis IEX’s
proposed Opening Process, as modified
by Amendment 3.11 On August 4, 2017,
the Commission approved on an
accelerated basis the IEX Auctions
proposal, as modified by Amendment
2.12
The rule changes related to both the
Opening Process and IEX Auctions
included a modification to Rule
11.190(a)(2)(E)(iii), to specify that
market orders marked DAY entered
during the Pre-Market Session will be
queued by the System until the Opening
Auction (or Halt Auction, as applicable),
for IEX-listed securities pursuant to IEX
Rule 11.350, or until the Opening
Process for non-IEX-listed securities
pursuant to IEX Rule 11.231. However,
because the proposed rule changes for
the Opening Process and IEX Auctions
were filed and pending action from the
Commission concurrently, the proposed
rule changes specified in Exhibit 5 to
each rule change filing were each
separately specified as compared to
existing IEX rules. Therefore, the
Exhibits 5 to each rule change filing
specify distinct behavior, pursuant to
Rule 11.190(a)(2)(E)(iii), for how market
orders marked as DAY queue before the
applicable open for the security in
question. Exhibit 5 to the IEX Auctions
filing provides that such orders queue
until the Opening Auction (or Halt
Auction, as applicable) for IEX listed
securities. Exhibit 5 to the Opening
Process filing provides that such orders
queue until the Opening Process for
non-listed securities. As a technical
matter, after the Commission’s approval
of the rule changes related to IEX
Auctions, which came subsequent to the
Commission’s approval of the Opening
Process, Rule 11.190(a)(2)(E)(iii) no
longer specifies the queueing behavior
of market orders entered during the PreMarket Session marked DAY in the
Opening Process. Accordingly, IEX
proposes to consolidate and correct the
rule text changes to Rule
11.190(a)(2)(E)(iii), as approved in each
rule filing to provide that Market orders
10 See Securities Exchange Act Release No. 80583
(May 3, 2017), 82 FR 21634 (May 9, 2017).
11 See Securities Exchange Act Release No. 81195
(July 24, 2017), 82 FR 35250 (July 28, 2017).
12 See Securities Exchange Act Release No. 81316
(August 4, 2017), awaiting publication to the
Federal Register.
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marked DAY submitted before the open
of the Regular Market Session are
queued by the System until the Opening
Auction (or Halt Auction, as applicable)
for IEX-listed securities pursuant to IEX
Rule 11.350, or until the Opening
Process for non-IEX-listed securities
pursuant to IEX Rule 11.231, except
market orders marked DAY that are
designated to route pursuant to Rule
11.230(c). Market orders marked DAY
are eligible to trade or route during the
Regular Market Session and treated by
the System as having a time-in-force of
IOC.
As recently announced by IEX
Trading Alert #2017–027, on August 24,
2017 the Exchange is beginning a multiphase deployment of the Opening
Process functionality for non-test
securities.13 Furthermore, the Exchange
believes that some Members are
currently in the process of making or
testing technology changes for the
Exchange’s Opening Process.
Accordingly, in order to provide clarity
to Members and other market
participants regarding the Opening
Process, and specifically to avoid
potential confusion regarding the
queueing behavior of market orders
entered during the Pre-Market Session
marked as DAY, the Exchange is
proposing to make the conforming
change to Rule 11.190(a)(2)(E)(iii)
described above to clearly state that
such orders will be queued by the
System until the Opening Auction (or
Halt Auction, as applicable) for IEXlisted securities pursuant to IEX Rule
11.350, or until the Opening Process for
non-IEX-listed pursuant to IEX Rule
11.231.
2. Statutory Basis
IEX believes that the proposed rule
change is consistent with the provisions
of Section 6(b) 14 of the Act in general,
and furthers the objectives of Section
6(b)(5) of the Act 15 in particular, in that
it is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, 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. The
Exchange believes it is consistent with
the Act to correct the conflicting rule
provisions so that IEX’s rules are
accurate and descriptive of the System’s
functionality as approved by the
13 See IEX Trading Alert #2017–027 (Deployment
Schedule for New Opening Process for Non-IEXListed Securities), August 3, 2017.
14 15 U.S.C. 78f.
15 15 U.S.C. 78f(b)(5).
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Federal Register / Vol. 82, No. 156 / Tuesday, August 15, 2017 / Notices
Commission, and to avoid any potential
confusion among Members and market
participants regarding the Opening
Process.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
IEX does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
correction does not impact competition
in any respect since it is designed to
correct a conflict between two approved
versions of Exchange rule
11.190(a)(2)(E)(iii), without changing
the substance of the Rules as separately
approved.
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) 16 of the Act and
Rule 19b–4(f)(6) 17 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.18
A proposed rule change filed under
Rule 19b–4(f)(6) 19 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),20 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
16 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
18 Under Rule 19b–4(f)(6)(iii), the Exchange is
required to provide 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 requested that the Commission waive
the prefiling requirement for its proposal in order
to allow it to file this clarification without undue
delay. The Commission hereby waives that
requirement.
19 17 CFR 240.19b–4(f)(6).
20 17 CFR 240.19b–4(f)(6)(iii).
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17 17
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Commission to waive the 30-day
operative delay so that the proposal may
become operative upon filing. The
Exchange represents that waiver will
allow it to promptly reconcile a
potential conflict between two recentlyapproved changes to IEX Rule
11.190(a)(2)(E)(iii) without changing the
substance of that Rule, thus avoiding
any potential confusion among market
participants regarding the Exchange’s
Opening Process. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest as it will resolve a potential
ambiguity in IEX’s rules concerning
queuing of market orders marked DAY
before the open of trading involving
either IEX-listed securities or non-IEXlisted securities. While the current rule
text references the term ‘‘Opening
Auction’’ for both types of securities,
IEX uses the term ‘‘Opening Process’’ for
the latter. To avoid any potential
confusion, IEX is proposing to use that
more precise term in this subsection of
the rule when it references non-IEXlisted securities. Accordingly, the
proposed rule change raises no new or
novel issues and the Commission
hereby waives the 30-day operative
delay requirement and designates the
proposed rule change operative upon
filing.21
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) 22 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
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
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
21 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
22 15 U.S.C. 78s(b)(2)(B).
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38725
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
IEX–2017–26 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–IEX–2017–26. This file
number should be included in 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 Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Section, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing will also be available for
inspection and copying at the IEX’s
principal office and on its Internet Web
site at www.iextrading.com. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–IEX–2017–26 and should
be submitted on or before September 5,
2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–17172 Filed 8–14–17; 8:45 am]
BILLING CODE 8011–01–P
23 17
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CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 82, Number 156 (Tuesday, August 15, 2017)]
[Notices]
[Pages 38723-38725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17172]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81365; File No. SR-IEX-2017-26]
Self-Regulatory Organizations: Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Correct
Nonsubstantive Conflicting Rule Text in Rule 11.190
August 9, 2017.
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 August 8, 2017, 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.
---------------------------------------------------------------------------
\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
change to correct nonsubstantive conflicting rule text related to the
behavior of market orders entered during the Pre-Market Session \6\
marked DAY that are eligible to participate in either auctions for IEX-
listed securities pursuant to
[[Page 38724]]
Rule 11.350, or the opening process for non-IEX-listed securities
pursuant to Rule 11.231. The Exchange has designated this rule change
as ``non-controversial'' under Section 19(b)(3)(A) of the Act \7\ and
provided the Commission with the notice required by Rule 19b-4(f)(6)
thereunder.\8\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CRF 240.19b-4.
\6\ See Rule 1.160(z).
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
Web site at www.iextrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and 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 statement [sic] 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 purpose of this proposed rule filing is to correct
nonsubstantive conflicting rule text related to the queuing behavior of
market orders entered during the Pre-Market Session marked DAY that are
eligible to participate in auctions for IEX-listed securities pursuant
to Rule 11.350, or in the opening process for non-IEX-listed securities
pursuant to Rule 11.231. On April 13, 2017, IEX filed with the
Commission a proposed rule change to amend IEX Rule 11.231 to modify
the manner in which the Exchange opens trading for non-IEX-listed
securities beginning at the start of Regular Market Hours; and to amend
IEX Rules 11.190 and 11.220 to specify the order types eligible to
participate in the proposed opening process for non-IEX listed
securities and the priority of such orders (the ``Opening Process'').
The proposed rule change for the Opening Process was published for
comment in the Federal Register on April 28, 2017.\9\ On April 20,
2017, IEX filed with the Commission a proposed rule change to adopt
rules governing auctions in IEX-listed securities, provide for the
dissemination of auction related market data, and establish rules
relating to trading halts and pauses (``IEX Auctions''). The proposed
rule change for IEX Auctions was published for comment in the Federal
Register on May 9, 2017.\10\ On July 24th 2017, the Commission approved
on an accelerated basis IEX's proposed Opening Process, as modified by
Amendment 3.\11\ On August 4, 2017, the Commission approved on an
accelerated basis the IEX Auctions proposal, as modified by Amendment
2.\12\
---------------------------------------------------------------------------
\9\ See Securities Exchange Act Release No. 80514 (April 24,
2017), 82 FR 19763 (April 28, 2017).
\10\ See Securities Exchange Act Release No. 80583 (May 3,
2017), 82 FR 21634 (May 9, 2017).
\11\ See Securities Exchange Act Release No. 81195 (July 24,
2017), 82 FR 35250 (July 28, 2017).
\12\ See Securities Exchange Act Release No. 81316 (August 4,
2017), awaiting publication to the Federal Register.
---------------------------------------------------------------------------
The rule changes related to both the Opening Process and IEX
Auctions included a modification to Rule 11.190(a)(2)(E)(iii), to
specify that market orders marked DAY entered during the Pre-Market
Session will be queued by the System until the Opening Auction (or Halt
Auction, as applicable), for IEX-listed securities pursuant to IEX Rule
11.350, or until the Opening Process for non-IEX-listed securities
pursuant to IEX Rule 11.231. However, because the proposed rule changes
for the Opening Process and IEX Auctions were filed and pending action
from the Commission concurrently, the proposed rule changes specified
in Exhibit 5 to each rule change filing were each separately specified
as compared to existing IEX rules. Therefore, the Exhibits 5 to each
rule change filing specify distinct behavior, pursuant to Rule
11.190(a)(2)(E)(iii), for how market orders marked as DAY queue before
the applicable open for the security in question. Exhibit 5 to the IEX
Auctions filing provides that such orders queue until the Opening
Auction (or Halt Auction, as applicable) for IEX listed securities.
Exhibit 5 to the Opening Process filing provides that such orders queue
until the Opening Process for non-listed securities. As a technical
matter, after the Commission's approval of the rule changes related to
IEX Auctions, which came subsequent to the Commission's approval of the
Opening Process, Rule 11.190(a)(2)(E)(iii) no longer specifies the
queueing behavior of market orders entered during the Pre-Market
Session marked DAY in the Opening Process. Accordingly, IEX proposes to
consolidate and correct the rule text changes to Rule
11.190(a)(2)(E)(iii), as approved in each rule filing to provide that
Market orders marked DAY submitted before the open of the Regular
Market Session are queued by the System until the Opening Auction (or
Halt Auction, as applicable) for IEX-listed securities pursuant to IEX
Rule 11.350, or until the Opening Process for non-IEX-listed securities
pursuant to IEX Rule 11.231, except market orders marked DAY that are
designated to route pursuant to Rule 11.230(c). Market orders marked
DAY are eligible to trade or route during the Regular Market Session
and treated by the System as having a time-in-force of IOC.
As recently announced by IEX Trading Alert #2017-027, on August 24,
2017 the Exchange is beginning a multi-phase deployment of the Opening
Process functionality for non-test securities.\13\ Furthermore, the
Exchange believes that some Members are currently in the process of
making or testing technology changes for the Exchange's Opening
Process. Accordingly, in order to provide clarity to Members and other
market participants regarding the Opening Process, and specifically to
avoid potential confusion regarding the queueing behavior of market
orders entered during the Pre-Market Session marked as DAY, the
Exchange is proposing to make the conforming change to Rule
11.190(a)(2)(E)(iii) described above to clearly state that such orders
will be queued by the System until the Opening Auction (or Halt
Auction, as applicable) for IEX-listed securities pursuant to IEX Rule
11.350, or until the Opening Process for non-IEX-listed pursuant to IEX
Rule 11.231.
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\13\ See IEX Trading Alert #2017-027 (Deployment Schedule for
New Opening Process for Non-IEX-Listed Securities), August 3, 2017.
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2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \14\ of the Act in general, and furthers the
objectives of Section 6(b)(5) of the Act \15\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, 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. The Exchange believes it is consistent with the Act to
correct the conflicting rule provisions so that IEX's rules are
accurate and descriptive of the System's functionality as approved by
the
[[Page 38725]]
Commission, and to avoid any potential confusion among Members and
market participants regarding the Opening Process.
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\14\ 15 U.S.C. 78f.
\15\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes that the
proposed correction does not impact competition in any respect since it
is designed to correct a conflict between two approved versions of
Exchange rule 11.190(a)(2)(E)(iii), without changing the substance of
the Rules as separately approved.
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) \16\ of the Act and Rule 19b-4(f)(6) \17\
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.\18\
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\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f)(6).
\18\ Under Rule 19b-4(f)(6)(iii), the Exchange is required to
provide 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 requested that the
Commission waive the prefiling requirement for its proposal in order
to allow it to file this clarification without undue delay. The
Commission hereby waives that requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\20\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative upon filing. The Exchange represents that waiver
will allow it to promptly reconcile a potential conflict between two
recently-approved changes to IEX Rule 11.190(a)(2)(E)(iii) without
changing the substance of that Rule, thus avoiding any potential
confusion among market participants regarding the Exchange's Opening
Process. The Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest as it will resolve a potential ambiguity in IEX's rules
concerning queuing of market orders marked DAY before the open of
trading involving either IEX-listed securities or non-IEX-listed
securities. While the current rule text references the term ``Opening
Auction'' for both types of securities, IEX uses the term ``Opening
Process'' for the latter. To avoid any potential confusion, IEX is
proposing to use that more precise term in this subsection of the rule
when it references non-IEX-listed securities. Accordingly, the proposed
rule change raises no new or novel issues and the Commission hereby
waives the 30-day operative delay requirement and designates the
proposed rule change operative upon filing.\21\
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\19\ 17 CFR 240.19b-4(f)(6).
\20\ 17 CFR 240.19b-4(f)(6)(iii).
\21\ For purposes only of waiving the 30-day operative delay,
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) \22\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\22\ 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
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-IEX-2017-26 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-IEX-2017-26. This file
number should be included in 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 Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Section, 100 F Street
NE., Washington, DC 20549, on official business days between the hours
of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be available
for inspection and copying at the IEX's principal office and on its
Internet Web site at www.iextrading.com. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-IEX-2017-26 and should be submitted on
or before September 5, 2017.
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\23\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-17172 Filed 8-14-17; 8:45 am]
BILLING CODE 8011-01-P
