Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Correct Six Typographical Citation and Cross-Reference Errors in the IEX Rule Book, 1604-1606 [2024-00285]
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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Notices
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[FR Doc. 2024–00298 Filed 1–9–24; 8:45 am]
BILLING CODE P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Correct Six
Typographical Citation and CrossReference Errors in the IEX Rule Book
lotter on DSK11XQN23PROD with NOTICES1
January 4, 2024.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on December
22, 2023, 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 Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
VerDate Sep<11>2014
16:40 Jan 09, 2024
Jkt 262001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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
Exchange 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
Statutory Basis for, the Proposed Rule
Change
[Release No. 34–99274; File No. SR–IEX–
2023–14]
1 15
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 IEX is filing with the
Commission a proposed rule change to
correct six typographical citation and
cross-reference errors in the IEX Rule
Book. 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
The text of the proposed rule change
is available at the Exchange’s website at
www.iextrading.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
1. Purpose
The Exchange makes this filing to
correct six typographical citation and
cross-reference errors in the IEX Rule
Book. Specifically, the Exchange
proposes to update external citations to
subsections of Rule 600(b) of Regulation
NMS under the Act in IEX Rules
10.160(f), 11.210(a)(2), 11.230(b),
11.610(y), and 11.610(qq) (‘‘Regulation
NMS citations’’); the Exchange also
proposes to update an internal crossreference error attributable to a recent
rule change.
With respect to the Regulation NMS
citations, IEX notes that in 2021, the
Commission amended Regulation NMS
in connection with the adoption of the
Market Data Infrastructure Rules.8 As
part of that initiative, the Commission
4 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
6 15 U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4.
8 See Securities Exchange Act Release No. 90610,
86 FR 18596 (April 9, 2021) (S7–03–20).
5 17
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
adopted new definitions in Rule 600(b)
of Regulation NMS and renumbered the
remaining definitions. The Exchange
accordingly proposes to update the
relevant citations to Regulation NMS in
the IEX Rule Book as follows:
• The citation to the Regulation NMS
definition of Intermarket Sweep Order
in IEX Rule 10.160(f) would be changed
from Rule 600(b)(30) to Rule 600(b)(38);
• The citation to the Regulation NMS
definition of NMS Stock in IEX Rule
11.210(a)(2) would be changed from
Rule 600(b)(46) 9 to Rule 600(b)(55);
• The citation to the Regulation NMS
definition of Protected Quotation in IEX
Rule 11.230(b) would be changed from
Rule 600(b)(58) to Rule 600(b)(71);
• The citation to the Regulation NMS
definition of Listed Option in IEX Rule
11.610(y) would be changed from Rule
600(b)(35) to Rule 600(b)(43);
• The citation to the Regulation NMS
definition of NMS Stock in IEX Rule
11.610(y) would be changed from Rule
600(b)(47) to Rule 600(b)(55);
With respect to the internal crossreference, IEX Rule 11.190(b)(2)(G)
cross-references IEX Rule
11.190(b)(7)(E)(v), when it should crossreference IEX Rule 11.190(b)(7)(F)(v).
This cross-reference error stems from a
recent rule filing that renumbered IEX
Rule 11.190(b)(7) without updating the
cross-reference contained in IEX Rule
11.190(b)(2)(G).10 IEX therefore
proposes to amend IEX Rule
11.190(b)(2)(G) to cross-reference IEX
Rule 11.190(b)(7)(F)(v) instead of
11.190(b)(7)(E)(v).
IEX notes that both the proposed
changes to the Regulation NMS citations
and the internal cross-reference do not
substantively modify system
functionality or processes on the
Exchange, but solely correct outdated
cross-references.
2. Statutory Basis
IEX believes that the proposed rule
change is consistent with the provisions
of Section 6(b) 11 of the Act in general,
and furthers the objectives of Section
6(b)(1) of the Act 12 in particular, in that
it is designed to enforce compliance by
the Exchange’s Members 13 and persons
9 IEX Rule 11.210(a)(2), which reads in relevant
part ‘‘the security is an NMS stock pursuant to
Commission Rule 600(b)(46)’’ contains a
typographical error; the rule should have referred
to Rule 600(b)(47), not 600(b)(46). This proposed
rule change corrects this typographical error.
10 See Securities Exchange Act Release No. 96611
(January 9, 2023), 88 FR 2379, 2380 (January 13,
2023) (SR–IEX–2022–10).
11 15 U.S.C. 78f.
12 15 U.S.C. 78f(b)(1).
13 See IEX Rule 1.160(s).
E:\FR\FM\10JAN1.SGM
10JAN1
Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Notices
associated with its Members, with the
provisions of the rules of the Exchange.
The Exchange believes that the
proposed changes to the Regulation
NMS citations would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because
the proposed changes are designed to
update external and internal rule
references. The Exchange believes that
Members would benefit from the
increased clarity, thereby reducing
potential confusion and 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 Exchange also believes that the
proposed rule change is consistent with
the public interest and the protection of
investors because it will provide
increased clarity in the Exchange’s
rules, thereby reducing potential
confusion, as described above.
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. As described
in the Purpose and Statutory Basis
sections, this rule filing merely proposes
to correct five external citations and one
internal cross-reference. The proposed
rule change is not intended to address
competitive issues but rather would
modify Exchange rules to update
citations to Regulation NMS and an
internal cross-reference. Since the
proposal does not substantively modify
system functionality or processes on the
Exchange, the proposed changes will
not impose any burden on competition.
lotter on DSK11XQN23PROD with NOTICES1
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) 14 of the Act and
Rule 19b–4(f)(6) 15 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
14 15
15 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
VerDate Sep<11>2014
16:40 Jan 09, 2024
Jkt 262001
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.16
The Exchange believes that the
proposed rule change meets the criteria
of subparagraph (f)(6) of Rule 19b–4 17
because it would not significantly affect
the protection of investors or the public
interest, nor does it impose any burden
on competition because it merely
corrects six typographical errors in
existing rule provisions without
substantively changing such provisions.
This rule filing does not substantively
modify system functionality or
processes on the Exchange.
Accordingly, the Exchange believes that
the proposed rule change is
noncontroversial and satisfies the
requirements of Rule 19b–4(f)(6).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
Commission to waive the 30-day
operative delay, because this rule filing
merely corrects typographical errors for
which the rest of the rule is otherwise
clear. Therefore, IEX believes there is no
need to delay implementation of this
rule change, so that the Exchange may
promptly correct these typographical
errors and avoid any potential confusion
during such time period on the part of
market participants.
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) 21 of the Act to
determine whether the proposed rule
16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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.
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6).
19 17 CFR 240.19b–4(f)(6).
20 17 CFR 240.19b–4(f)(6)(iii).
21 15 U.S.C. 78s(b)(2)(B).
PO 00000
Frm 00097
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1605
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
• Send an email to rule-comments@
sec.gov. Please include file number SR–
IEX–2023–14 on the subject line.
Paper Comments
• 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–2023–14. 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 (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 website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
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–2023–14 and should be
submitted on or before January 30, 2024.
E:\FR\FM\10JAN1.SGM
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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–00285 Filed 1–9–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99275; File No. SR–MEMX–
2023–39]
Self-Regulatory Organizations; MEMX
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend the Exchange’s Fee
Schedule To Adopt Connectivity and
Application Session Fees for MEMX
Options
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
21, 2023, MEMX LLC (‘‘MEMX’’ 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 Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
lotter on DSK11XQN23PROD with NOTICES1
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend the Fee Schedule to: (i) apply the
Exchange’s current Connectivity and
Application Session fees to MEMX
Options Users, (ii) implement a waiver
of Connectivity and Application Session
fees solely related to participation on
MEMX Options until February 1, 2024,
and (iii) make an organizational change
to its existing fee schedule for the
Exchange’s pre-existing equities market
(‘‘MEMX Equities’’), in order to create a
separate fee schedule for Connectivity
Fees (for both MEMX Equities and
MEMX Options). The Exchange
proposes to implement the changes to
the Fee Schedule pursuant to this
proposal immediately. The text of the
proposed rule change is provided in
Exhibit 5.
22 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
16:40 Jan 09, 2024
In its filing with the Commission, the
Exchange 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
Exchange 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Background
January 4, 2024.
VerDate Sep<11>2014
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Jkt 262001
The Exchange is filing a proposal to
amend the Fee Schedule to: (i) apply the
Exchange’s current Connectivity and
Application Session fees to MEMX
Options Users, (ii) implement a waiver
of Connectivity and Application Session
fees solely related to participation on
MEMX Options until February 1, 2024,
and (iii) make an organizational change
to its existing fee schedule for the
Exchange’s pre-existing equities market
(‘‘MEMX Equities’’), in order to create a
separate fee schedule for Connectivity
Fees (for both MEMX Equities and
MEMX Options). The Exchange believes
that these changes will provide greater
transparency to Members about how the
Exchange assesses fees, as well as
allowing Members to more easily
validate their bills on a monthly basis.
The Exchange notes that none of these
changes amend any existing fee
applicable to MEMX Equities. The
Exchange is proposing to implement the
proposal immediately. The Exchange
previously filed the proposal on October
24, 2023 (SR–MEMX–2023–29) (the
‘‘Initial Proposal’’). The Exchange has
withdrawn the Initial Proposal and
replaced the proposal with the current
filing (SR–MEMX–2023–39).
As set forth below, the Exchange
believes that its proposal provides a
great deal of transparency regarding the
cost of providing connectivity services
and anticipated revenue and that the
proposal is consistent with the Act and
associated guidance. The Exchange is
re-filing this proposal promptly
following the withdrawal of the Initial
Proposal in order to provide additional
details not contained in the Initial
Proposal and modify the original
proposed Options Connectivity and
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
Application Session fee waiver end date
from January 1, 2024, to February 1,
2024.
(i) Fees for Connectivity to MEMX
Options
As noted above, the Exchange is
proposing to apply the current fees it
charges to Members and non-Members 3
for physical connectivity to the
Exchange and for application sessions
(otherwise known as ‘‘logical ports’’)
that a Member utilizes in connection
with their participation on the Exchange
(together with physical connectivity,
collectively referred to in this proposal
as ‘‘connectivity services’’, as described
in greater detail below) to both Users of
MEMX Equities and MEMX Options.4
Specifically, the Exchange will continue
to charge $6,000 per month for a
physical connection in the data center
where the Exchange primarily operates
under normal market conditions
(‘‘Primary Data Center’’), and $3,000 per
month for a physical connection at the
geographically diverse data center,
which is operated for backup and
disaster recovery purposes (‘‘Secondary
Data Center’’). These physical
connections can be used to access both
platforms, accordingly, a firm that is a
Member of both MEMX Equities and
MEMX Options may use a single
physical connection to access its
application sessions at both MEMX
Equities and MEMX Options. This
differs from application sessions in that
a firm that is a Member of both MEMX
Equities and MEMX Options would
need to purchase separate application
sessions for each trading platform in
order to access each such trading
platform. These application session fees
will continue to be $450 per month for
an application session used for order
entry (‘‘Order Entry Port’’) and $450 per
month for an application session for
receipt of drop copies (‘‘Drop Copy
Port’’), to the extent such ports are in
the Primary Data Center. As is true
today for MEMX Equities, the Exchange
will not charge for Order Entry Ports or
Drop Copy Ports in the Secondary Data
Center. The Exchange’s proposal to
apply the same fees to Equities and
Options stems from the same cost
analysis it conducted in adopting those
3 Types of market participants that obtain
connectivity services from the Exchange but are not
Members include service bureaus and extranets.
Service bureaus offer technology-based services to
other companies for a fee, including order entry
services to Members, and thus, may access
application sessions on behalf of one or more
Members. Extranets offer physical connectivity
services to Members and non-Members.
4 MEMX Options launched on September 27,
2023.
E:\FR\FM\10JAN1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 7 (Wednesday, January 10, 2024)]
[Notices]
[Pages 1604-1606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00285]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99274; File No. SR-IEX-2023-14]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Correct
Six Typographical Citation and Cross-Reference Errors in the IEX Rule
Book
January 4, 2024.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on December 22, 2023, 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 Exchange. 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 Act,\4\
and Rule 19b-4 thereunder,\5\ IEX is filing with the Commission a
proposed rule change to correct six typographical citation and cross-
reference errors in the IEX Rule Book. 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 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
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange 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 Exchange 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange makes this filing to correct six typographical
citation and cross-reference errors in the IEX Rule Book. Specifically,
the Exchange proposes to update external citations to subsections of
Rule 600(b) of Regulation NMS under the Act in IEX Rules 10.160(f),
11.210(a)(2), 11.230(b), 11.610(y), and 11.610(qq) (``Regulation NMS
citations''); the Exchange also proposes to update an internal cross-
reference error attributable to a recent rule change.
With respect to the Regulation NMS citations, IEX notes that in
2021, the Commission amended Regulation NMS in connection with the
adoption of the Market Data Infrastructure Rules.\8\ As part of that
initiative, the Commission adopted new definitions in Rule 600(b) of
Regulation NMS and renumbered the remaining definitions. The Exchange
accordingly proposes to update the relevant citations to Regulation NMS
in the IEX Rule Book as follows:
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 90610, 86 FR 18596
(April 9, 2021) (S7-03-20).
---------------------------------------------------------------------------
The citation to the Regulation NMS definition of
Intermarket Sweep Order in IEX Rule 10.160(f) would be changed from
Rule 600(b)(30) to Rule 600(b)(38);
The citation to the Regulation NMS definition of NMS Stock
in IEX Rule 11.210(a)(2) would be changed from Rule 600(b)(46) \9\ to
Rule 600(b)(55);
---------------------------------------------------------------------------
\9\ IEX Rule 11.210(a)(2), which reads in relevant part ``the
security is an NMS stock pursuant to Commission Rule 600(b)(46)''
contains a typographical error; the rule should have referred to
Rule 600(b)(47), not 600(b)(46). This proposed rule change corrects
this typographical error.
---------------------------------------------------------------------------
The citation to the Regulation NMS definition of Protected
Quotation in IEX Rule 11.230(b) would be changed from Rule 600(b)(58)
to Rule 600(b)(71);
The citation to the Regulation NMS definition of Listed
Option in IEX Rule 11.610(y) would be changed from Rule 600(b)(35) to
Rule 600(b)(43);
The citation to the Regulation NMS definition of NMS Stock
in IEX Rule 11.610(y) would be changed from Rule 600(b)(47) to Rule
600(b)(55);
With respect to the internal cross-reference, IEX Rule
11.190(b)(2)(G) cross-references IEX Rule 11.190(b)(7)(E)(v), when it
should cross-reference IEX Rule 11.190(b)(7)(F)(v). This cross-
reference error stems from a recent rule filing that renumbered IEX
Rule 11.190(b)(7) without updating the cross-reference contained in IEX
Rule 11.190(b)(2)(G).\10\ IEX therefore proposes to amend IEX Rule
11.190(b)(2)(G) to cross-reference IEX Rule 11.190(b)(7)(F)(v) instead
of 11.190(b)(7)(E)(v).
---------------------------------------------------------------------------
\10\ See Securities Exchange Act Release No. 96611 (January 9,
2023), 88 FR 2379, 2380 (January 13, 2023) (SR-IEX-2022-10).
---------------------------------------------------------------------------
IEX notes that both the proposed changes to the Regulation NMS
citations and the internal cross-reference do not substantively modify
system functionality or processes on the Exchange, but solely correct
outdated cross-references.
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \11\ of the Act in general, and furthers the
objectives of Section 6(b)(1) of the Act \12\ in particular, in that it
is designed to enforce compliance by the Exchange's Members \13\ and
persons
[[Page 1605]]
associated with its Members, with the provisions of the rules of the
Exchange.
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\11\ 15 U.S.C. 78f.
\12\ 15 U.S.C. 78f(b)(1).
\13\ See IEX Rule 1.160(s).
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The Exchange believes that the proposed changes to the Regulation
NMS citations would remove impediments to and perfect the mechanism of
a free and open market and a national market system because the
proposed changes are designed to update external and internal rule
references. The Exchange believes that Members would benefit from the
increased clarity, thereby reducing potential confusion and 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 Exchange also believes that the proposed rule change is
consistent with the public interest and the protection of investors
because it will provide increased clarity in the Exchange's rules,
thereby reducing potential confusion, as described above.
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. As described in the Purpose and
Statutory Basis sections, this rule filing merely proposes to correct
five external citations and one internal cross-reference. The proposed
rule change is not intended to address competitive issues but rather
would modify Exchange rules to update citations to Regulation NMS and
an internal cross-reference. Since the proposal does not substantively
modify system functionality or processes on the Exchange, the proposed
changes will not impose any burden on competition.
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) \14\ of the Act and Rule 19b-4(f)(6) \15\
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.\16\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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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The Exchange believes that the proposed rule change meets the
criteria of subparagraph (f)(6) of Rule 19b-4 \17\ because it would not
significantly affect the protection of investors or the public
interest, nor does it impose any burden on competition because it
merely corrects six typographical errors in existing rule provisions
without substantively changing such provisions. This rule filing does
not substantively modify system functionality or processes on the
Exchange. Accordingly, the Exchange believes that the proposed rule
change is noncontroversial and satisfies the requirements of Rule 19b-
4(f)(6).\18\
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6).
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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, because this rule
filing merely corrects typographical errors for which the rest of the
rule is otherwise clear. Therefore, IEX believes there is no need to
delay implementation of this rule change, so that the Exchange may
promptly correct these typographical errors and avoid any potential
confusion during such time period on the part of market participants.
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\19\ 17 CFR 240.19b-4(f)(6).
\20\ 17 CFR 240.19b-4(f)(6)(iii).
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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) \21\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\21\ 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 [email protected]. Please include
file number SR-IEX-2023-14 on the subject line.
Paper Comments
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-2023-14. 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 (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 website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also 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-2023-14 and should be
submitted on or before January 30, 2024.
[[Page 1606]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-00285 Filed 1-9-24; 8:45 am]
BILLING CODE 8011-01-P
