83 FR 42538 - Self-Regulatory Organizations: Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Definition of the Cross Price Constraint Utilized in the Opening Process for Non-IEX-Listed Securities Pursuant to Rule 11.231
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 163 (August 22, 2018)
Federal Register Volume 83, Issue 163 (August 22, 2018)
| Page Range | 42538-42540 | |
| FR Document | 2018-18060 |
[Federal Register Volume 83, Number 163 (Wednesday, August 22, 2018)] [Notices] [Pages 42538-42540] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-18060] [[Page 42538]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83862; File No. SR-IEX-2018-18] Self-Regulatory Organizations: Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Definition of the Cross Price Constraint Utilized in the Opening Process for Non-IEX-Listed Securities Pursuant to Rule 11.231 August 16, 2018. 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 9, 2018, the Investors Exchange LLC (``IEX'' or the ``Exchange'') filed with the Securities and Exchange Commission (``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 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 amend the definition of the Cross Price Constraint utilized in 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 \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 CRF 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 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 Statutory Basis for, the Proposed Rule Change 1. Purpose Background The purpose of this proposed rule change is to amend the definition of the Cross Price Constraint utilized in the opening process for non- IEX-listed securities pursuant to Rule 11.231. On July 24, 2017, the Commission approved a proposed rule change filed by the Exchange 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 (the ``Opening Process'').\8\ --------------------------------------------------------------------------- \8\ See Securities Exchange Act Release No. 81195 (July 24, 2017), 82 FR 35250 (July 28, 2017). --------------------------------------------------------------------------- Opening Process for Non-IEX-Listed Securities Pursuant to Rule 11.231, the Exchange attempts to perform the Opening Process in each non-IEX-listed security, in which all eligible interest resting on the Order Book in the Pre-Market Session available for continuous trading (i.e., orders on the ``Continuous Book'') as well as all eligible interest queued for execution in the Regular Market Session (i.e., orders on the ``Cross Book'') are executed at a single price (the ``Opening Match''). Prior to the beginning of Regular Market Hours, Users who wish to participate in the Opening Process may enter limit, market, and pegged orders designated with a time-in-force of DAY and limit orders designated with a time-in-force of GTX, which shall queue in the System and are eligible for execution in the Opening Process (orders on the Cross Book); interest resting on the Order Book in the Pre-Market Session available for continuous trading (i.e., orders on the Continuous Book) are also eligible for execution in the Opening Process (collectively, ``Cross Eligible Orders''). Cross Eligible Orders resting on the Continuous Book are ranked by the price at which they are resting on the Continuous Book and Cross Eligible Orders resting on the Cross Book are ranked by the limit price defined by the User, if any, except in the case of pegged orders, which are ranked by their current book price (in each case, the order's ``resting price'').\9\ --------------------------------------------------------------------------- \9\ See Rule 11.220(a)(2). See also Rule 11.231(a)(1). --------------------------------------------------------------------------- IEX Order Collar Rule 11.190(f)(1) sets forth the operation of the IEX Order Collar. Except for orders that are eligible for the Cross Book, the IEX Order Collar prevents any incoming order (including those marked ISO), or order resting on the Order Book, from executing at prices outside of the Order Collar price range.\10\ The Order Collar price range is calculated by applying the numerical guidelines for clearly erroneous executions to the Order Collar Reference Price.\11\ The Order Collar Reference Price is defined as the most current of the following: \12\ --------------------------------------------------------------------------- \10\ See Rule 11.190(f)(1) for a complete description of the IEX Order Collar. \11\ The upper (lower) Order Collar price range is calculated by adding (subtracting) the appropriate percentage (consistent with the numerical guidelines for clearly erroneous executions) to the Order Collar Reference Price. \12\ In the event there is no valid Order Collar Reference Price, the Exchange generally rejects orders for the security. See Rule 11.190(f)(1). ---------------------------------------------------------------------------The consolidated last sale price disseminated during the Regular Market Session on the current trade date; Last trade price disseminated outside of the Regular Market Session (Form T, as communicated by the relevant SIP) on trade date which other than for the Form T designation would have been considered a valid last sale price; or If neither of the prices above are available, the prior days Official Closing Price from the listing exchange, adjusted to account for corporate actions, news events, etc.\13\ --------------------------------------------------------------------------- \13\ See Rule 11.190(f)(1)(A). --------------------------------------------------------------------------- Proposed Changes The Exchange recently identified a minor omission in the Cross Price Constraint rule provisions with respect to manner in which the IEX Order Collar price range applies. Specifically, as described above, the Exchange does not apply the IEX Order Collar to orders eligible for the Cross Book so that it does not impact their relative priority of execution.\14\ However, while the IEX Order Collar does not apply to orders [[Page 42539]] eligible for the Cross Book, the current implementation of the Cross Price Constraint mechanism is in fact adjusted by the IEX Order Collar price range in limited circumstances when the upper or lower threshold of such price is less aggressive than the upper or lower threshold of the Cross Price Constraint, respectively. In other words, if the Away Protected NBB is below the lower threshold of the IEX Order Collar price range, or the Away Protected NBO is above the upper threshold of the IEX Order Collar price range, the Opening Process execution is constrained by the upper and/or lower thresholds of the IEX Order Collar. Adjusting the Cross Price Constraint by the IEX Order Collar price range does not impact the relative priority of orders eligible for the Cross Book because the constraint is not applied at the order level but instead to the cross price, in connection with the Opening Match. --------------------------------------------------------------------------- \14\ See Securities Exchange Act Release No. 81662 (September 20, 2017), 82 FR 44861 (September 26, 2017) (SR-IEX-2017-31), a proposed rule change to clarify the inapplicability of the Exchange's Order Collar[thinsp]and Router Constraint[thinsp]to certain orders that are eligible for participation in the opening process for non-IEX-listed securities pursuant to Rule 11.231, or for auctions in IEX-listed securities pursuant to Rule 11.350. --------------------------------------------------------------------------- Based on the foregoing, the Exchange believes the existing Cross Price Constraint definition should explicitly account for the IEX Order Collar price range. Accordingly, the Exchange is proposing to amend rule 11.231(c)(1)(iii) to explicitly state that the Cross Price Constraint is adjusted by the IEX Order Collar price range, as described below: The upper threshold price of the Cross Price Constraint is equal to the lesser of the price of the Away Protected NBO or the upper threshold of the Order Collar price range for the Regular Market Session, calculated pursuant to Rule 11.190(f)(1)(C), except in the event that an Away Protected Bid is crossing an Away Protected Offer, the upper threshold price is equal to the greater of five cents ($0.05) or one half of a percent (0.5%) higher than the lowest Away Protected Offer; and The lower threshold price of the Cross Price Constraint is equal to the greater of the price of the Away Protected NBB or the lower threshold of the Order Collar price range for the Regular Market Session, calculated pursuant to Rule 11.190(f)(1)(C), except in the event that an Away Protected Bid is crossing an Away Protected Offer, the lower threshold price is equal to the greater of five cents ($0.05) or one half of a percent (0.5%) lower than the highest Away Protected Bid.\15\ --------------------------------------------------------------------------- \15\ Rule 11.231(b)(2) states in relevant part that an imbalance of Cross Eligible Orders on the buy side or sell side may result in orders that are not executed in whole or in part. Thus, as part of the transition to the Regular Market Session (see Rule 1.160(gg)), unexecuted Cross Eligible Orders to buy (sell) that are priced at or above (below) the Cross Price Constraint (but remain unexecuted due to an imbalance of Cross Eligible Orders) will price slide pursuant to IEX Rule 11.190(h) and all remaining unexecuted Cross Eligible Orders, along with any orders that were either ineligible to participate in the Opening Process or too passive to be executed in the Opening Process, will be released to the Order Book for continuous trading or canceled in accordance with the terms of the order. Thus, the Exchange notes that when the Cross Price Constraint is narrowed because the Away Protected NBB is below the lower threshold of the IEX Order Collar price range, or the Away Protected NBO is above the upper threshold of the IEX Order Collar price range, there may be a smaller quantity of shares executed in the Opening Process, which may result in a larger quantity of unexecuted Cross Eligible Order shares that are priced equal to or more aggressively than the more narrow Cross Price Constraint (as proposed) transitioning to the RMS and price sliding pursuant to Rule 11.190(h), or canceling pursuant to the terms of the order, as applicable. --------------------------------------------------------------------------- 2. Statutory Basis IEX believes that the proposed rule change is consistent with the provisions of Section 6(b) \16\ of the Act in general, and furthers the objectives of Section 6(b)(5) of the Act \17\ 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. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78f. \17\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes it is consistent with the protection of investors and the public interest to constrain the Opening Process match by the IEX Order Collar price range because executions outside of the Order Collar price range are significantly dislocated from recent trading activity (as measured by the Order Collar Reference Price), and often are the result of erroneous system processing or manual trading errors. The Exchange also notes that executions outside of the IEX Order Collar price range often meet the clearly erroneous criteria and are therefore eligible to be reviewed for cancellation pursuant to Rule 11.270. Thus, the Exchange believes that applying the IEX Order Collar to the cross price in connection with the Opening Match is consistent with the protection of investors and the public interest because it is designed to prevent executions at dislocated prices that are significantly dislocated from recent trading activity and may be canceled pursuant to Rule 11.270. Furthermore, the Exchange believes that the proposed rule change does not materially alter the Opening Process, because the Opening Process match is already subject to the Cross Price Constraint. Instead, the Exchange believes the proposed changes are designed to make the Cross Price Constraint definition more robust by accounting for the rare scenarios where the Away Protected NBB is below the lower threshold of the IEX Order Collar price range, or the Away Protected NBO is above the upper threshold of the IEX Order Collar price range (i.e., when the spread between the Away Protected NBBO is excessively wide, such that it may not reflect the market for the security). The Exchange further believes that the proposed rule changes are consistent with the protection of investors and the public interest because the proposed changes are designed to avoid any potential confusion regarding the Opening Process functionality, and to make the Exchange's rules more accurate, complete, and descriptive of the System's functionality. 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 changes do not impact competition in any respect since it is designed to avoid any potential confusion regarding the Opening Process functionality, and to make the Exchange's rules more accurate, complete, and descriptive of the System's functionality without materially changing the Opening Process. In addition, the Exchange believes there will be no impact on intra-market competition, as the proposed changes will apply equally to all Members and therefore no new burdens are being proposed. Furthermore, the Exchange believes there will be no impact on intra-market competition because as discussed above, the proposed changes to the Cross Price Constraint do not impact the relative execution priority of orders eligible for the Cross Book, as the constraint is not applied at the order level but instead to the cross price in connection with the Opening Match. 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 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 [[Page 42540]] 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 \18\ and Rule 19b-4(f)(6) thereunder.\19\ --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(A). \19\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with 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. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \20\ normally does not become operative for 30 days after the date of its filing. However, pursuant to Rule 19b-4(f)(6)(iii),\21\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. In its filing with the Commission, the Exchange has asked the Commission to waive the 30-day operative delay so that the proposed rule change may become operative upon filing. The Exchange represents that the proposed rule change would protect against executions in the Opening Process that are significantly disclocated from recent trading activity and may be cancelled pursuant to Rule 11.270. In addition, the Exchange notes that while the proposed change to the Cross Price Constraint may affect the cross price in limited circumstances, there will be no change to the relative priority of execution for Cross Eligible Orders. Furthermore, the Exchange states that waiver of the operative delay would allow the Exchange to update its rules without delay to avoid potential confusion among market participants regarding the Exchange's Opening Process functionality and immediately protect against dislocated executions in the Opening Process. The Commission does not believe that any new or novel issues are raised by the proposal. For these reasons, 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 proposed rule change operative upon filing.\22\ --------------------------------------------------------------------------- \20\ 17 CFR 240.19b-4(f)(6). \21\ 17 CFR 240.19b-4(f)(6)(iii). \22\ 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). --------------------------------------------------------------------------- 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) of the Act \23\ to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \23\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-IEX-2018-18 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-2018-18. 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 (http://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 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-IEX-2018-18, and should be submitted on or before September 12, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-18060 Filed 8-21-18; 8:45 am] BILLING CODE 8011-01-P
![42538 Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Notices
SECURITIES AND EXCHANGE statements concerning the purpose of Orders resting on the Cross Book are
COMMISSION and basis for the proposed rule change ranked by the limit price defined by the
and discussed any comments it received User, if any, except in the case of pegged
[Release No. 34–83862; File No. SR–IEX– on the proposed rule change. The text orders, which are ranked by their
2018–18] of these statement [sic] may be current book price (in each case, the
examined at the places specified in Item order’s ‘‘resting price’’).9
Self-Regulatory Organizations:
Investors Exchange LLC; Notice of IV below. The self-regulatory IEX Order Collar
Filing and Immediate Effectiveness of organization has prepared summaries,
set forth in Sections A, B, and C below, Rule 11.190(f)(1) sets forth the
Proposed Rule Change To Amend the operation of the IEX Order Collar.
Definition of the Cross Price of the most significant aspects of such
statements. Except for orders that are eligible for the
Constraint Utilized in the Opening Cross Book, the IEX Order Collar
Process for Non-IEX-Listed Securities A. Self-Regulatory Organization’s prevents any incoming order (including
Pursuant to Rule 11.231 Statement of the Purpose of, and those marked ISO), or order resting on
Statutory Basis for, the Proposed Rule the Order Book, from executing at prices
August 16, 2018.
Change outside of the Order Collar price
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the 1. Purpose range.10 The Order Collar price range is
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 calculated by applying the numerical
Background guidelines for clearly erroneous
notice is hereby given that on August 9,
The purpose of this proposed rule executions to the Order Collar Reference
2018, the Investors Exchange LLC
change is to amend the definition of the Price.11 The Order Collar Reference
(‘‘IEX’’ or the ‘‘Exchange’’) filed with the
Cross Price Constraint utilized in the Price is defined as the most current of
Securities and Exchange Commission
opening process for non-IEX-listed the following: 12
(‘‘Commission’’) the proposed rule • The consolidated last sale price
change as described in Items I and II securities pursuant to Rule 11.231. On
July 24, 2017, the Commission approved disseminated during the Regular Market
below, which Items have been prepared Session on the current trade date;
by the Exchange. The Commission is a proposed rule change filed by the
Exchange to amend IEX Rule 11.231 to • Last trade price disseminated
publishing this notice to solicit outside of the Regular Market Session
comments on the proposed rule change modify the manner in which the
Exchange opens trading for non-IEX- (Form T, as communicated by the
from interested persons. relevant SIP) on trade date which other
listed securities beginning at the start of
I. Self-Regulatory Organization’s Regular Market Hours (the ‘‘Opening than for the Form T designation would
Statement of the Terms of Substance of Process’’).8 have been considered a valid last sale
the Proposed Rule Change price; or
Opening Process for Non-IEX-Listed • If neither of the prices above are
Pursuant to the provisions of Section Securities available, the prior days Official Closing
19(b)(1) under the Securities Exchange Price from the listing exchange, adjusted
Pursuant to Rule 11.231, the Exchange
Act of 1934 (‘‘Act’’),4 and Rule 19b–4 to account for corporate actions, news
attempts to perform the Opening
thereunder,5 Investors Exchange LLC events, etc.13
Process in each non-IEX-listed security,
(‘‘IEX’’ or ‘‘Exchange’’) is filing with the
in which all eligible interest resting on Proposed Changes
Securities and Exchange Commission
the Order Book in the Pre-Market
(‘‘Commission’’) a proposed rule change The Exchange recently identified a
Session available for continuous trading
to amend the definition of the Cross minor omission in the Cross Price
(i.e., orders on the ‘‘Continuous Book’’)
Price Constraint utilized in the opening Constraint rule provisions with respect
as well as all eligible interest queued for
process for non-IEX-listed securities to manner in which the IEX Order
execution in the Regular Market Session
pursuant to Rule 11.231. The Exchange Collar price range applies. Specifically,
(i.e., orders on the ‘‘Cross Book’’) are
has designated this rule change as ‘‘non- as described above, the Exchange does
executed at a single price (the ‘‘Opening
controversial’’ under Section 19(b)(3)(A) not apply the IEX Order Collar to orders
Match’’). Prior to the beginning of
of the Act 6 and provided the eligible for the Cross Book so that it
Regular Market Hours, Users who wish does not impact their relative priority of
Commission with the notice required by
to participate in the Opening Process execution.14 However, while the IEX
Rule 19b–4(f)(6) thereunder.7
may enter limit, market, and pegged Order Collar does not apply to orders
The text of the proposed rule change
orders designated with a time-in-force of
is available at the Exchange’s website at
DAY and limit orders designated with a
www.iextrading.com, at the principal 9 See Rule 11.220(a)(2). See also Rule 11.231(a)(1).
time-in-force of GTX, which shall queue 10 See Rule 11.190(f)(1) for a complete description
office of the Exchange, and at the
in the System and are eligible for of the IEX Order Collar.
Commission’s Public Reference Room.
execution in the Opening Process 11 The upper (lower) Order Collar price range is
II. Self-Regulatory Organization’s (orders on the Cross Book); interest calculated by adding (subtracting) the appropriate
percentage (consistent with the numerical
Statement of the Purpose of, and resting on the Order Book in the Pre- guidelines for clearly erroneous executions) to the
Statutory Basis for, the Proposed Rule Market Session available for continuous Order Collar Reference Price.
Change trading (i.e., orders on the Continuous 12 In the event there is no valid Order Collar
Book) are also eligible for execution in Reference Price, the Exchange generally rejects
In its filing with the Commission, the orders for the security. See Rule 11.190(f)(1).
self-regulatory organization included the Opening Process (collectively, 13 See Rule 11.190(f)(1)(A).
‘‘Cross Eligible Orders’’).
amozie on DSK3GDR082PROD with NOTICES1
14 See Securities Exchange Act Release No. 81662
1 15 U.S.C. 78s(b)(1). Cross Eligible Orders resting on the (September 20, 2017), 82 FR 44861 (September 26,
2 15 U.S.C. 78a. Continuous Book are ranked by the 2017) (SR–IEX–2017–31), a proposed rule change to
3 17 CFR 240.19b–4. price at which they are resting on the clarify the inapplicability of the Exchange’s Order
Collar and Router Constraint to certain orders that
4 15 U.S.C. 78s(b)(1). Continuous Book and Cross Eligible are eligible for participation in the opening process
5 17 CRF 240.19b–4.
for non-IEX-listed securities pursuant to Rule
6 15 U.S.C. 78s(b)(3)(A). 8 See Securities Exchange Act Release No. 81195 11.231, or for auctions in IEX-listed securities
7 17 CFR 240.19b–4. (July 24, 2017), 82 FR 35250 (July 28, 2017). pursuant to Rule 11.350.
VerDate Sep<11>2014 16:34 Aug 21, 2018 Jkt 244001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\22AUN1.SGM 22AUN1](https://thefederalregister.org/doc/83_FR_42701/page/1.svg)
![42540 Federal Register / Vol. 83, No. 163 / Wednesday, August 22, 2018 / Notices
which it was filed, or such shorter time action is necessary or appropriate in the comment submissions. You should
as the Commission may designate, it has public interest, for the protection of submit only information that you wish
become effective pursuant to Section investors, or otherwise in furtherance of to make available publicly. All
19(b)(3)(A) of the Act 18 and Rule 19b– the purposes of the Act. If the submissions should refer to File
4(f)(6) thereunder.19 Commission takes such action, the Number SR–IEX–2018–18, and should
A proposed rule change filed Commission shall institute proceedings be submitted on or before September 12,
pursuant to Rule 19b–4(f)(6) under the under Section 19(b)(2)(B) of the Act 23 to 2018.
Act 20 normally does not become determine whether the proposed rule For the Commission, by the Division of
operative for 30 days after the date of its change should be approved or Trading and Markets, pursuant to delegated
filing. However, pursuant to Rule 19b– disapproved. authority.24
4(f)(6)(iii),21 the Commission may Eduardo A. Aleman,
IV. Solicitation of Comments
designate a shorter time if such action Assistant Secretary.
is consistent with the protection of Interested persons are invited to
submit written data, views, and [FR Doc. 2018–18060 Filed 8–21–18; 8:45 am]
investors and the public interest. In its
filing with the Commission, the arguments concerning the foregoing, BILLING CODE 8011–01–P
Exchange has asked the Commission to including whether the proposed rule
waive the 30-day operative delay so that change is consistent with the Act.
Comments may be submitted by any of SECURITIES AND EXCHANGE
the proposed rule change may become COMMISSION
operative upon filing. The Exchange the following methods:
represents that the proposed rule change Electronic Comments [Release No. 34–83864; File No. SR–ICC–
would protect against executions in the
• Use the Commission’s internet 2018–007]
Opening Process that are significantly
comment form (http://www.sec.gov/
disclocated from recent trading activity Self-Regulatory Organizations; ICE
rules/sro.shtml); or
and may be cancelled pursuant to Rule • Send an email to rule-comments@ Clear Credit LLC; Notice of
11.270. In addition, the Exchange notes sec.gov. Please include File Number SR– Designation of Longer Period for
that while the proposed change to the IEX–2018–18 on the subject line. Commission Action on Proposed Rule
Cross Price Constraint may affect the Change Relating to the Clearance of an
cross price in limited circumstances, Paper Comments Additional Credit Default Swap
there will be no change to the relative • Send paper comments in triplicate Contract
priority of execution for Cross Eligible to Secretary, Securities and Exchange
Orders. Furthermore, the Exchange Commission, 100 F Street NE, August 16, 2018.
states that waiver of the operative delay Washington, DC 20549–1090. On June 13, 2018, ICE Clear Credit
would allow the Exchange to update its All submissions should refer to File LLC (‘‘ICC’’) filed with the Securities
rules without delay to avoid potential Number SR–IEX–2018–18. This file and Exchange Commission
confusion among market participants number should be included on the (‘‘Commission’’), pursuant to Section
regarding the Exchange’s Opening subject line if email is used. To help the 19(b)(1) of the Securities Exchange Act
Process functionality and immediately Commission process and review your (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
protect against dislocated executions in comments more efficiently, please use proposed rule change to provide for the
the Opening Process. The Commission only one method. The Commission will clearance of an additional credit default
does not believe that any new or novel post all comments on the Commission’s swap contract (File No. SR–ICC–2018–
issues are raised by the proposal. For internet website (http://www.sec.gov/ 007). The proposed rule change was
these reasons, the Commission believes rules/sro.shtml). Copies of the published for comment in the Federal
that waiver of the 30-day operative submission, all subsequent Register on July 3, 2018.3 To date, the
delay is consistent with the protection amendments, all written statements Commission has not received comments
of investors and the public interest. with respect to the proposed rule on the proposed rule change.
Therefore, the Commission hereby change that are filed with the Section 19(b)(2) of the Act 4 provides
waives the operative delay and Commission, and all written that within 45 days of the publication of
designates the proposed rule change communications relating to the notice of the filing of a proposed rule
operative upon filing.22 proposed rule change between the change, or within such longer period up
At any time within 60 days of the Commission and any person, other than to 90 days as the Commission may
filing of the proposed rule change, the those that may be withheld from the designate if it finds such longer period
Commission summarily may public in accordance with the to be appropriate and publishes its
temporarily suspend such rule change if provisions of 5 U.S.C. 552, will be reasons for so finding or as to which the
it appears to the Commission that such available for website viewing and self-regulatory organization consents,
printing in the Commission’s Public the Commission shall either approve the
18 15 U.S.C. 78s(b)(3)(A).
Reference Room, 100 F Street NE, proposed rule change, disapprove the
19 17 CFR 240.19b–4(f)(6). As required under Rule
Washington, DC 20549 on official proposed rule change, or institute
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file business days between the hours of proceedings to determine whether the
the proposed rule change, along with a brief 10:00 a.m. and 3:00 p.m. Copies of the proposed rule change should be
description and text of the proposed rule change,
filing also will be available for disapproved. The 45th day from the
at least five business days prior to the date of filing publication of notice of filing of this
inspection and copying at the principal
amozie on DSK3GDR082PROD with NOTICES1
of the proposed rule change, or such shorter time
as designated by the Commission. office of the Exchange. All comments
24 17 CFR 200.30–3(a)(12).
20 17 CFR 240.19b–4(f)(6).
received will be posted without change.
21 17 CFR 240.19b–4(f)(6)(iii). 1 15 U.S.C. 78s(b)(1).
Persons submitting comments are 2 17 CFR 240.19b–4.
22 For purposes only of waiving the 30-day
cautioned that we do not redact or edit 3 Securities Exchange Act Release No. 34–83545
operative delay, the Commission also has
considered the proposed rule’s impact on personal identifying information from (June 28, 2018), 83 FR 31244 (July 3, 2018) (SR–
efficiency, competition, and capital formation. See ICC–2018–007) (‘‘Notice’’).
15 U.S.C. 78c(f). 23 15 U.S.C. 78s(b)(2)(B). 4 15 U.S.C. 78s(b)(2).
VerDate Sep<11>2014 16:34 Aug 21, 2018 Jkt 244001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 E:\FR\FM\22AUN1.SGM 22AUN1](https://thefederalregister.org/doc/83_FR_42701/page/3.svg)
Document Created: 2018-08-22 00:39:25
Document Modified: 2018-08-22 00:39:25
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 42538 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR