Pursuant to Section 19(b)(1) ^[1] of the Securities Exchange Act of 1934 (“Act”),^[2] and Rule 19b-4 thereunder,^[3] notice is hereby given that on July 29, 2026, the Investors Exchange LLC (“IEX” or the “Exchange”) filed with the Securities and Exchange Commission (the “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

Pursuant to the provisions of Section 19(b)(1) under the Act,^[4] and Rule 19b-4 thereunder,^[5] the Exchange is filing with the Commission a proposed rule change to amend Rule 11.280 (Limit Up-Limit Down Plan and Trading Halts on the Exchange) to reflect that IEX will not cancel outstanding orders during a Regulatory Halt or Operational Halt in anticipation of the SIP implementation of the new regulatory halt rules.

The text of the proposed rule change is available at the Exchange's website at www.iexexchange.io/​resources/​regulation/​rule-filings and at the principal office of the Exchange.

II. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change

1. Purpose

The Exchange is a participant of the transaction reporting plan ^[6] governing Tape C Securities (“Nasdaq UTP Plan”),^[7] and the transaction reporting plan governing Tape A and B Securities (“CTA Plan”) ^[8] (collectively, with the CQ Plan,^[9] the “SIP Plans”). In tandem with all other national securities exchanges that trade equities securities, and in conjunction with the adoption of amendments to the Nasdaq UTP Plan ^[10] and comparable amendments to the CTA and CQ Plans ^[11] (collectively, the “SIP Plan Amendments”), the Exchange ( printed page 51813) previously amended Rules 11.271 and 11.280 to integrate several definitions and concepts from the SIP Plan Amendments and to reorganize several rules in light of the Exchange's experience with applying the rules as a national securities exchange.^[12] The changes clarified the circumstances and manner in which the Exchange would halt trading in one or more securities. Included in these changes were rules setting forth the manner in which the Exchange would handle outstanding orders in a security should it become subject to a Regulatory Halt ^[13] or an Operational Halt.^[14]

The SIP Plans' Processors ^[15] have informed IEX and the other equities exchanges that they will be implementing the SIP Plan Amendments on August 10, 2026, and on July 10, 2026, IEX issued a trading alert announcing the test and implementation dates for these changes.^[16] Thus, pursuant to the terms of the IEX SIP Halts Filing, August 10, 2026 will be the operative date for the rule changes made in that filing. In preparation for the August 10, 2026 implementation of the SIP Plan Amendments, IEX makes this rule filing proposal to conform its pending trading halt rules with existing Exchange practices with respect to one aspect of how IEX will handle a Regulatory or Operational Halt. As described below, the Exchange proposes to amend Rules 11.280(b)(3) and 11.280(d)(2) to reflect that the Exchange will not cancel all outstanding orders under either a Regulatory or Operational Halt.

Background

The Exchange has been working with other SROs to establish common criteria and procedures for halting and resuming trading in equity securities in the event of regulatory or operational issues.^[17] These common standards are designed to ensure that events which might impact multiple exchanges are handled in a consistent manner that is transparent. The Exchange believes that implementation of these common standards will assist the SROs in maintaining fair and orderly markets. However, these common standards do not address the manner in which individual exchanges handle outstanding orders during a halt, specifically whether to cancel outstanding orders, or retain outstanding orders in a halted security to allow them to trade when the halt ends, while allowing Users ^[18] to cancel orders during the halt if they prefer.^[19]

Among the changes introduced in the SIP Plan Amendments and then adopted by IEX (as well as the other equities exchanges) is a new standardized definition of a Regulatory Halt.^[20] Under these common rules, a Regulatory Halt means one of five types of halts: (a) a halt in trading a security called by the Primary Listing Market for regulatory purposes (such as dissemination of material news); (b) a trading pause triggered by Limit Up Limit Down; (c) a halt based on Extraordinary Market Activity; ^[21] (d) a SIP Halt; or (e) a halt triggered by a Market-Wide Circuit Breaker.^[22] While the Exchange and the other SROs intended to harmonize certain aspects of their trading halt rules (such as the start and stop times of a Regulatory Halt), other elements of each exchanges' trading halt rules continued to be unique to each market.^[23] For example, some exchanges, such as MEMX and IEX, proposed to cancel all outstanding orders for the subject securities in the event of a Regulatory Halt ^[24] or Operational Halt.^[25] Other exchanges proposed to halt the subject securities from trading, but not cancel any outstanding orders for those securities during a Regulatory Halt ^[26] or Operational Halt.^[27] And other exchanges proposed to halt the subject securities from trading, only cancel some outstanding orders for those securities during a Regulatory Halt while retaining others on their order books,^[28] and cancel all outstanding orders during an Operational Halt.^[29]

IEX's current process for handling a regulatory or operational halt, which is scheduled to be supplanted by the processes set forth in the IEX SIP Halt Filing on August 10, 2026, is to halt trading, but not cancel outstanding orders. Upon further consideration, IEX has decided to amend Rules 11.280(b)(3) and 11.280(d)(2) to align those rules with the Exchange's current functionality with respect to cancelling outstanding orders during either a Regulatory Halt or an Operational Halt. Thus, IEX would no longer cancel all outstanding orders during a Regulatory or Operational Halt, but Users would be able to cancel their outstanding orders during a Regulatory or Operational Halt.

Accordingly, IEX proposes to delete the first sentence of Rule 11.280(b)(3) as set forth in the IEX SIP Halt Filing, and to update the paragraph with language from its former Rule 11.272(b). As proposed, Rule 11.280(b)(3) would read:

While a security is subject to a Regulatory Halt pursuant to this Rule the Exchange will not accept orders, and all orders resting on the Order Book will ( printed page 51814) be unavailable for trading or re-sweep during the Regulatory Halt, but will be available for cancelation by the submitting User. At the end of the Regulatory Halt the Exchange shall re-open the security and again begin accepting orders.

With respect to Operational Halts, IEX will continue to notify the SIPs of the start and end of any Operational Halt caused by System ^[30] issues on the Exchange and will disseminate an Operational Halt Status Message through its proprietary data feeds, but will not automatically cancel all outstanding orders. However, based upon its evaluation of factors such as the reason for the Operational Halt and its expected duration, the Exchange may determine to cancel all outstanding orders during an Operational Halt.^[31] And, as described above, if IEX does not cancel outstanding orders during an Operational Halt, Users would be able to cancel their outstanding orders during the Operational Halt. Thus, IEX proposes to amend Rule 11.280(d)(2) to remove the first sentence, which currently reads: “On the occurrence of any Operational Halt pursuant to this Rule all outstanding orders in the System will be cancelled,” and to add new last sentence that will read: “While a security is subject to an Operational Halt pursuant to this Rule the Exchange will not accept orders, and all orders resting on the Order Book will be unavailable for trading or re-sweep during the Operational Halt, but will be available for cancelation by the submitting User.”

IEX notes that these proposed rule changes were previously approved by the Commission,^[32] and are also comparable to the current rules and functionality of the Nasdaq Stock Market in the circumstance of a Regulatory Halt ^[33] initiated by another exchange or an Operational Halt initiated by Nasdaq.^[34]

2. Statutory Basis

The Exchange believes that its proposal is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.^[35] Specifically, the proposal is consistent with Section 6(b)(5) of the Act ^[36] because it would promote just and equitable principles of trade, remove impediments to, and perfect the mechanism of, a free and open market and a national market system, and, in general, protect investors and the public interest.

As described above, the Exchange and other SROs have adopted harmonized rules related to halting and resuming trading in U.S.-listed equity securities which are not impacted by this rule filing. As discussed in the Purpose section, there are differences in how the exchanges have chosen to handle outstanding orders during a Regulatory or Operational Halt, with such order handling not mandated by the SIP Plan Amendments. The Exchange believes that it is appropriate to not cancel outstanding orders during a Regulatory or Operational Halt, but instead to permit Users to cancel their own outstanding orders. This approach is designed to avoid potential confusion on the part of Users as to the status of their outstanding orders, particularly in the case of a short halt or Limit Up Limit Down pause, and would reduce technical complexity for the Exchange and its Users. Thus, the Exchange believes that the proposed rule change is consistent with Section 6(b)(5) of the Act because it is designed to foster cooperation and coordination with persons engaged in regulating and facilitating transactions in securities.

Further, IEX believes that the proposed rule change is consistent with the SIP Plan Amendments in that no changes are proposed to the harmonized rules related to halting and resuming trading in U.S.-listed equity securities.

Finally, as detailed above, the proposed changes in this rule filing are comparable to Nasdaq rules.^[37] Thus, the Exchange does not believe that this proposal raises any new or novel issues that have not already been considered by the Commission.

B. Self-Regulatory Organization's Statement on Burden on Competition

IEX believes the proposal is consistent with Section 6(b)(8) of the Act ^[38] in that it does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Specifically, the proposed rule change is not designed to address any competitive concerns but to avoid potential confusion and reduce technical complexity as described in the Statutory Basis section.

With respect to intermarket competition, the Exchange notes that other exchanges are free to adopt comparable provisions subject to the Commission rule filing process. With respect to intramarket competition, the Exchange notes as well that the proposed rule change would apply to all Users in the same manner.

C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others

Not applicable.

III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action

The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act ^[39] and Rule 19b-4(f)(6) thereunder.^[40] 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6)(iii) thereunder.^[41]

A proposed rule change filed under Rule 19b-4(f)(6) ^[42] normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),^[43] the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay, so that the proposed rule change may become operative on August 10, 2026, when all the changes introduced in the IEX SIP Halts Filing become operative. The Exchange has asserted that waiving the 30-day operative will allow the Exchange to coordinate its ( printed page 51815) implementation of the new market-wide Regulatory and Operational Halts processes with the other national securities exchanges and will help ensure consistency across the SROs.

The Commission believes that a waiver of the operative delay is consistent with the protection of investors and the public interest because it would allow the Exchange to implement the proposed changes on the date that the IEX SIP Halts Filing becomes operative. Accordingly, the Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing.^[44]

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) ^[45] of the Act to determine whether the proposed rule change should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

• Use the Commission's internet comment form (www.sec.gov/​rules/​sro.shtml); or
• Send an email torule-comments@sec.gov. Please include file number SR-IEX-2026-25 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-2026-25. 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 ( www.sec.gov/​rules/​sro.shtml). Copies of the filing will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection.

All submissions should refer to file number SR-IEX-2026-25 and should be submitted on or before September 1, 2026.