Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Clarify Two Aspects of its Recent Post Only Filing and to Correct One Nonsubstantive Typographical Error Introduced in the Post Only Filing, 5283-5285 [2024-01512]
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Federal Register / Vol. 89, No. 18 / Friday, January 26, 2024 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) by order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
Sherry R. Haywood,
Assistant Secretary.
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–
NYSEARCA–2024–05 on the subject
line.
lotter on DSK11XQN23PROD with NOTICES1
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–NYSEARCA–2024–05. 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
VerDate Sep<11>2014
18:02 Jan 25, 2024
Jkt 262001
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–NYSEARCA–2024–05 and should be
submitted on or before February 16,
2024.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.33
[FR Doc. 2024–01511 Filed 1–25–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99411; File No. SR–IEX–
2024–03]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Clarify Two
Aspects of its Recent Post Only Filing
and to Correct One Nonsubstantive
Typographical Error Introduced in the
Post Only Filing
January 22, 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 January
16, 2024, 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 Exchange. 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 the 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
33 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(1).
5 17 CFR 240.19b–4.
1 15
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5283
(‘‘Commission’’) a proposed rule change
to clarify two aspects of its recent Post
Only Filing 6 and to correct one
nonsubstantive typographical error
introduced in the Post Only Filing. 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
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
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange recently filed a rule
change to introduce a Post Only 9 order
parameter instruction and a related
Trade Now 10 order instruction.11 The
Post Only Filing was effective on filing,
and IEX expects to implement the new
functionality in February 2024.12 IEX
will issue a Trading Alert at least ten
(10) days in advance of the
implementation date.13
The Exchange is making this filing to
clarify two aspects of the Post Only
Filing and to correct one nonsubstantive
typographical error introduced in the
Post Only Filing. First, IEX proposes to
amend IEX Rule 11.190(a)(1)(H), which
currently states that a non-displayed
limit order ‘‘May include a Trade Now
instruction. . .,’’ to replace the word
6 See Securities Exchange Act Release No. 98988
(November 20, 2023), 88 FR 82926 (November 27,
2023) (SR–IEX–2023–13) (‘‘Post Only Filing’’).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4.
9 See IEX Rule 11.190(b)(20).
10 See IEX Rule 11.190(b)(21).
11 See supra note 6.
12 See IEX Trading Alert # 2024–002, available at
https://iextrading.com/alerts/#/238.
13 See supra note 6.
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Federal Register / Vol. 89, No. 18 / Friday, January 26, 2024 / Notices
‘‘May’’ with ‘‘Will’’ to reflect that all
non-displayed limit orders will include
a Trade Now instruction. This proposed
change is consistent with the Post Only
Filing, which states that ‘‘non-displayed
limit orders (including non-displayed
portions of reserve orders and nondisplayed Discretionary Limit orders)
would always include a Trade Now
order instruction. . . .’’ 14 The
proposed change is also consistent with
provisions in IEX Rules 11.190(b)(2)(J)
and 11.190(b)(7)(F)(xi),15 which provide
that non-displayed portions of reserve
orders and Discretionary Limit orders,
respectively, ‘‘will include a Trade Now
instruction. . . .’’ IEX thus proposes to
specify that all non-displayed limit
orders will always include a Trade Now
instruction.
Second, IEX proposes to clarify that
regular limit orders with the Post Only
order instruction are eligible to trade in
the Pre-Market Hours 16 and Post-Market
Hours 17, depending upon their order’s
Time-in-Force (‘‘TIF’’).18 IEX’s Post
Only order instruction may only be
applied to limit orders with a TIF of
DAY, GTX, SYS, or GTT.19 However,
although the Post Only Filing states that
‘‘Post Only orders must have a [TIF] of
DAY, GTX, SYS, or GTT because they
will only trade during Regular Market
Hours’’,20 regular limit orders with the
Post Only order instruction and a TIF of
GTT or SYS can also trade during the
Pre-Market and Post-Market Hours,
while regular limit orders with the Post
Only order instruction and a TIF of GTX
can also trade during the Post-Market
Hours. Accordingly, IEX proposes to
clarify in this rule change proposal that
the phrase ‘‘because they will only trade
during Regular Market Hours’’ in the
Post Only Filing was inaccurately
underinclusive, and the TIFs apply as
set forth in IEX Rule 11.190(b)(20).
Finally, IEX proposes to amend IEX
Rule 11.190(b)(7)(F) to correct a
nonsubstantive typographical error
introduced in the Post Only Filing.
Specifically, the Post Only Filing added
two new subparagraphs to IEX Rule
11.190(b)(7)(F), which it labeled ‘‘(x)’’
and ‘‘(ix).’’ IEX proposes to modify the
label on the second new subparagraph
to change it from (‘‘ix’’) to instead be
lotter on DSK11XQN23PROD with NOTICES1
14 See
Post Only Filing, 88 FR 82926, 82927.
described below, IEX Rule
11.190(b)(7)(F)(xi) was erroneously numbered
11.190(b)(7)(F)(ix); this rule filing corrects the
numbering of the subparagraph.
16 See IEX Rule 1.160(z).
17 See IEX Rule 1.160(aa).
18 See IEX Rule 11.190(c).
19 See IEX Rule 11.190(b)(20)(E).
20 See Post Only Filing, 88 FR 82926, 82927.
(‘‘xi’’), which is the next sequential
number.21
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act,22 in general, and
furthers the objectives of section
6(b)(5),23 in particular, in that it would
remove impediments to and perfect the
mechanism of a free and open market
and a national market system because it
is designed to enforce compliance by
the Exchange’s Members 24 and the
public with the provisions of the rules
of the Exchange. In particular, the
Exchange believes that the proposed
rule change will provide greater clarity
to Members and the public regarding the
Exchange’s rules by clarifying that: (i)
all non-displayed limit orders will
always include a Trade Now
instruction; (ii) regular displayed limit
orders with a Post Only order
instruction may trade in the Pre-Market
and Post-Market Hours if permitted by
their TIFs; and (iii) the newly-added
subparagraph (ix) of IEX Rule
11.190(b)(7)(F) should be renumbered to
be subparagraph (xi).
This rule filing does not propose any
substantive changes to the functionality
of the Post Only and Trade Now order
instructions, but rather simply clarifies
the functionality introduced in the Post
Only Filing and removes the
inconsistencies described in the
Purpose section. Therefore, the
Exchange does not believe that these
proposed changes raise any new or
novel issues not already considered by
the Commission. IEX also believes that
the proposed rule change is
nondiscriminatory since all Members
are eligible to enter orders with Post
Only and/or Trade Now instructions,
and these changes will provide the same
additional clarity to all Members.
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. As described
in the Purpose and Statutory Basis
sections, this rule filing merely proposes
to clarify which orders will always
include a Trade Now instruction and
the trading hours during which Post
15 As
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18:02 Jan 25, 2024
Jkt 262001
21 This rule change will not impact the preexisting IEX Rule 11.190(b)(7)(F)(ix), which will
continue to read ‘‘Discretionary Limit orders are
subject to the Price Sliding provisions of IEX Rule
11.190(h).’’
22 15 U.S.C. 78f(b).
23 15 U.S.C. 78f(b)(5).
24 See IEX Rule 1.160(s).
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
Only orders can trade, as well as to
correct one nonsubstantive
typographical error introduced in the
Post Only Filing. This proposal would
not make any substantive changes to the
IEX’s new Post Only and Trade Now
functionality and is not designed to
address any competitive issues. Because
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
Because the foregoing 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 25 and Rule 19b–
4(f)(6) thereunder.26
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 27 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 28
permits the Commission to 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 proposed
rule change may be operative
concurrent with IEX’s planned
implementation of the Post Only Filing
in February 2024. The Exchange states
that the proposal clarifies the applicable
trading sessions and Trade Now
functionality as it applies to the Post
Only order type and corrects one
nonsubstantive typographical error
concerning subparagraph numbering in
the rule text. Additionally, the Exchange
states that waiver of the operative delay
25 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give 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 satisfied this requirement.
27 17 CFR 240.19b–4(f)(6).
28 17 CFR 240.19b–4(f)(6)(iii).
26 17
E:\FR\FM\26JAN1.SGM
26JAN1
Federal Register / Vol. 89, No. 18 / Friday, January 26, 2024 / Notices
would allow these clarifying changes to
take effect concurrent with the
implementation of the Post Only and
Trade Now functionality, which will
benefit all market participants who
submit either Post Only or Trade Noweligible orders to the Exchange. Because
the proposal raises no novel regulatory
issues and makes only clarifying
changes, the Commission believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Therefore, the Commission hereby
waives the operative delay and
designates the proposal as operative
upon filing.29
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
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:
lotter on DSK11XQN23PROD with NOTICES1
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–2024–03 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–2024–03. 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
29 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
18:02 Jan 25, 2024
Jkt 262001
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–2024–03 and should be
submitted on or before February 16,
2024.
For the Commission, by the Division
of Trading and Markets, pursuant to
delegated authority.30
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–01512 Filed 1–25–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99406; File No. SR–NYSE–
2024–04]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Its
Price List
January 22, 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 January
12, 2024, New York Stock Exchange
LLC (‘‘NYSE’’ 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
30 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
PO 00000
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5285
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
The Exchange proposes to amend its
Price List to (1) offer credits to member
organizations providing non-displayed
liquidity in Tape A, B, and C securities
with a per share stock price below
$1.00; (2) modify the requirements and
charges for D Orders above the first
750,000 average daily volume (‘‘ADV’’)
of aggregate executions at the close last
modified in the last 3 minutes before the
scheduled close of trading and make a
non-substantive conforming change in
the same section of the Price List; (3)
offer additional monthly rebates and
incentives for Designated Market Maker
(‘‘DMM’’) units with 150 or fewer
assigned securities; (4) eliminate
underutilized fees for transactions
designated with a Retail Modifier as
defined in Rule 13 (‘‘Retail Modifier’’);
and (5) modify the rates for routing to
NYSE American LLC in Tape B and C
securities below $1.00. The Exchange
proposes to implement the rule change
on January 12, 2024. The proposed rule
change is available on the Exchange’s
website at www.nyse.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
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 those 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 parts 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 proposes to amend its
Price List to (1) offer credits to member
organizations providing non-displayed
liquidity in Tape A, B, and C securities
with a per share stock price below
$1.00; (2) modify the requirements and
charges for D orders above the first
E:\FR\FM\26JAN1.SGM
26JAN1
]]>Agencies
[Federal Register Volume 89, Number 18 (Friday, January 26, 2024)]
[Notices]
[Pages 5283-5285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01512]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99411; File No. SR-IEX-2024-03]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to Clarify
Two Aspects of its Recent Post Only Filing and to Correct One
Nonsubstantive Typographical Error Introduced in the Post Only Filing
January 22, 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 January 16, 2024, 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 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 the
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 clarify two aspects of its recent Post Only Filing \6\ and to
correct one nonsubstantive typographical error introduced in the Post
Only Filing. 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 CFR 240.19b-4.
\6\ See Securities Exchange Act Release No. 98988 (November 20,
2023), 88 FR 82926 (November 27, 2023) (SR-IEX-2023-13) (``Post Only
Filing'').
\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
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 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange recently filed a rule change to introduce a Post Only
\9\ order parameter instruction and a related Trade Now \10\ order
instruction.\11\ The Post Only Filing was effective on filing, and IEX
expects to implement the new functionality in February 2024.\12\ IEX
will issue a Trading Alert at least ten (10) days in advance of the
implementation date.\13\
---------------------------------------------------------------------------
\9\ See IEX Rule 11.190(b)(20).
\10\ See IEX Rule 11.190(b)(21).
\11\ See supra note 6.
\12\ See IEX Trading Alert # 2024-002, available at https://iextrading.com/alerts/#/238.
\13\ See supra note 6.
---------------------------------------------------------------------------
The Exchange is making this filing to clarify two aspects of the
Post Only Filing and to correct one nonsubstantive typographical error
introduced in the Post Only Filing. First, IEX proposes to amend IEX
Rule 11.190(a)(1)(H), which currently states that a non-displayed limit
order ``May include a Trade Now instruction. . .,'' to replace the word
[[Page 5284]]
``May'' with ``Will'' to reflect that all non-displayed limit orders
will include a Trade Now instruction. This proposed change is
consistent with the Post Only Filing, which states that ``non-displayed
limit orders (including non-displayed portions of reserve orders and
non-displayed Discretionary Limit orders) would always include a Trade
Now order instruction. . . .'' \14\ The proposed change is also
consistent with provisions in IEX Rules 11.190(b)(2)(J) and
11.190(b)(7)(F)(xi),\15\ which provide that non-displayed portions of
reserve orders and Discretionary Limit orders, respectively, ``will
include a Trade Now instruction. . . .'' IEX thus proposes to specify
that all non-displayed limit orders will always include a Trade Now
instruction.
---------------------------------------------------------------------------
\14\ See Post Only Filing, 88 FR 82926, 82927.
\15\ As described below, IEX Rule 11.190(b)(7)(F)(xi) was
erroneously numbered 11.190(b)(7)(F)(ix); this rule filing corrects
the numbering of the subparagraph.
---------------------------------------------------------------------------
Second, IEX proposes to clarify that regular limit orders with the
Post Only order instruction are eligible to trade in the Pre-Market
Hours \16\ and Post-Market Hours \17\, depending upon their order's
Time-in-Force (``TIF'').\18\ IEX's Post Only order instruction may only
be applied to limit orders with a TIF of DAY, GTX, SYS, or GTT.\19\
However, although the Post Only Filing states that ``Post Only orders
must have a [TIF] of DAY, GTX, SYS, or GTT because they will only trade
during Regular Market Hours'',\20\ regular limit orders with the Post
Only order instruction and a TIF of GTT or SYS can also trade during
the Pre-Market and Post-Market Hours, while regular limit orders with
the Post Only order instruction and a TIF of GTX can also trade during
the Post-Market Hours. Accordingly, IEX proposes to clarify in this
rule change proposal that the phrase ``because they will only trade
during Regular Market Hours'' in the Post Only Filing was inaccurately
underinclusive, and the TIFs apply as set forth in IEX Rule
11.190(b)(20).
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\16\ See IEX Rule 1.160(z).
\17\ See IEX Rule 1.160(aa).
\18\ See IEX Rule 11.190(c).
\19\ See IEX Rule 11.190(b)(20)(E).
\20\ See Post Only Filing, 88 FR 82926, 82927.
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Finally, IEX proposes to amend IEX Rule 11.190(b)(7)(F) to correct
a nonsubstantive typographical error introduced in the Post Only
Filing. Specifically, the Post Only Filing added two new subparagraphs
to IEX Rule 11.190(b)(7)(F), which it labeled ``(x)'' and ``(ix).'' IEX
proposes to modify the label on the second new subparagraph to change
it from (``ix'') to instead be (``xi''), which is the next sequential
number.\21\
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\21\ This rule change will not impact the pre-existing IEX Rule
11.190(b)(7)(F)(ix), which will continue to read ``Discretionary
Limit orders are subject to the Price Sliding provisions of IEX Rule
11.190(h).''
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\22\ in general, and furthers the
objectives of section 6(b)(5),\23\ in particular, in that it would
remove impediments to and perfect the mechanism of a free and open
market and a national market system because it is designed to enforce
compliance by the Exchange's Members \24\ and the public with the
provisions of the rules of the Exchange. In particular, the Exchange
believes that the proposed rule change will provide greater clarity to
Members and the public regarding the Exchange's rules by clarifying
that: (i) all non-displayed limit orders will always include a Trade
Now instruction; (ii) regular displayed limit orders with a Post Only
order instruction may trade in the Pre-Market and Post-Market Hours if
permitted by their TIFs; and (iii) the newly-added subparagraph (ix) of
IEX Rule 11.190(b)(7)(F) should be renumbered to be subparagraph (xi).
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\22\ 15 U.S.C. 78f(b).
\23\ 15 U.S.C. 78f(b)(5).
\24\ See IEX Rule 1.160(s).
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This rule filing does not propose any substantive changes to the
functionality of the Post Only and Trade Now order instructions, but
rather simply clarifies the functionality introduced in the Post Only
Filing and removes the inconsistencies described in the Purpose
section. Therefore, the Exchange does not believe that these proposed
changes raise any new or novel issues not already considered by the
Commission. IEX also believes that the proposed rule change is
nondiscriminatory since all Members are eligible to enter orders with
Post Only and/or Trade Now instructions, and these changes will provide
the same additional clarity to all Members.
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. As described in the Purpose
and Statutory Basis sections, this rule filing merely proposes to
clarify which orders will always include a Trade Now instruction and
the trading hours during which Post Only orders can trade, as well as
to correct one nonsubstantive typographical error introduced in the
Post Only Filing. This proposal would not make any substantive changes
to the IEX's new Post Only and Trade Now functionality and is not
designed to address any competitive issues. Because 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
Because the foregoing 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 \25\ and Rule 19b-
4(f)(6) thereunder.\26\
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\25\ 15 U.S.C. 78s(b)(3)(A).
\26\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give 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 satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \27\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \28\ permits the
Commission to 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 proposed rule change may be operative concurrent with IEX's planned
implementation of the Post Only Filing in February 2024. The Exchange
states that the proposal clarifies the applicable trading sessions and
Trade Now functionality as it applies to the Post Only order type and
corrects one nonsubstantive typographical error concerning subparagraph
numbering in the rule text. Additionally, the Exchange states that
waiver of the operative delay
[[Page 5285]]
would allow these clarifying changes to take effect concurrent with the
implementation of the Post Only and Trade Now functionality, which will
benefit all market participants who submit either Post Only or Trade
Now-eligible orders to the Exchange. Because the proposal raises no
novel regulatory issues and makes only clarifying changes, the
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Therefore, the Commission hereby waives the operative delay and
designates the proposal as operative upon filing.\29\
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\27\ 17 CFR 240.19b-4(f)(6).
\28\ 17 CFR 240.19b-4(f)(6)(iii).
\29\ For purposes only of waiving the 30-day operative delay,
the Commission also 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 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
Send an email to [email protected]. Please include
file number SR-IEX-2024-03 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-2024-03. 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-2024-03 and should be
submitted on or before February 16, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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\30\ 17 CFR 200.30-3(a)(12).
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-01512 Filed 1-25-24; 8:45 am]
BILLING CODE 8011-01-P
