[Federal Register Volume 82, Number 185 (Tuesday, September 26, 2017)]
[Notices]
[Pages 44861-44865]
[FR Doc No: 2017-20500]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81662; File No. SR-IEX-2017-31]

Self-Regulatory Organizations: Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Clarify
the Manner in Which the Order Collar and Router Constraint Apply to
Auctions and the Opening Process

September 20, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on September 6, 2017, the Investors Exchange LLC (``IEX''
or the ``Exchange'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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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
Commission a proposed rule change to clarify the inapplicability of the
Exchange's Order Collar \6\ and Router Constraint \7\ 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. The Exchange has designated
this rule change as ``non-controversial'' under Section 19(b)(3)(A) of
the Act \8\ and provided the Commission with the notice required by
Rule 19b-4(f)(6) thereunder.\9\
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    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CRF 240.19b-4.
    \6\ See Rule 11.190(f)(1).
    \7\ See Rule 11.190(f)(2).
    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4.
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    The text of the proposed rule change is available at the Exchange's
Web site at www.iextrading.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statement 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
Background
    The purpose of this proposed rule change is to clarify the
inapplicability of the Exchange's Order Collar and Router Constraint 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. On July 24th
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'').\10\ On August
4, 2017, the Commission approved a proposed rule change filed by the
Exchange to adopt rules governing auctions in IEX-listed securities,
provide for the dissemination of auction related market data, and
establish rules relating to trading halts and pauses (``IEX
Auctions'').\11\
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    \10\ See Securities Exchange Act Release No. 81195 (July 24,
2017), 82 FR 35250 (July 28, 2017).
    \11\ See Securities Exchange Act Release No. 81316 (August 4,
2017), 82 FR 37474 (August 10, 2017).
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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. 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''). Specifically, pursuant to Rule 11.220(a)(2), Cross
Eligible Orders are ranked and eligible for execution in the Opening
Process in price-display-time priority as follows:
     Midpoint peg orders, as defined in IEX Rule 11.190(b)(9),
on the Cross Book are ranked and eligible for execution in the Opening
Process at the less aggressive of the Midpoint Price or the order's
limit price, if any.
     Primary peg orders, as defined in IEX Rule 11.190(b)(8),
on the Cross Book are ranked and eligible for execution in the Opening
Process at the less aggressive of one (1) MPV below (above) the NBB
(NBO) for buy (sell) orders or the order's limit price, if any, but may
exercise price discretion up (down) to

the Opening Match Price, subject to the less aggressive of the NBB
(NBO) or the order's limit price, if any, except during periods of
quote instability, as defined in IEX Rule 11.190(g). When exercising
price discretion, primary peg orders are ranked behind any non-
displayed interest at the Opening Match Price \12\ for the duration of
the Opening Process. If multiple primary peg orders are exercising
price discretion during the Opening Process, they maintain their
relative time priority at the Opening Match Price.
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    \12\ See IEX Rule 11.231(b)(1).
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     Discretionary Peg orders, as defined in IEX Rule
11.190(b)(10), on the Cross Book are ranked and eligible for execution
in the Opening Process at the less aggressive of the NBB (NBO) for buy
(sell) orders or the order's limit price, if any, but may exercise
price discretion up (down) to the Opening Match Price, subject to the
less aggressive of the Midpoint Price or the order's limit price, if
any, except during periods of quote instability, as defined in IEX Rule
11.190(g). When exercising price discretion, Discretionary Peg orders
are ranked behind any non-displayed interest at the Opening Match Price
for the duration of the Opening Process. If multiple Discretionary Peg
orders are exercising price discretion during the Opening Process, they
maintain their relative time priority at the Opening Match Price.
     Limit orders on the Cross Book are ranked and eligible for
execution in the Opening Process at their limit price.
     Non-displayed limit orders and non-displayed portions of
reserve orders on the Continuous Book are ranked and eligible for
execution in the Opening Process at the less aggressive of the Midpoint
Price or the order's limit price.
     Displayed limit orders on the Continuous Book are ranked
and eligible for execution in the Opening Process at their resting
price.
IEX Auctions for IEX-Listed Securities
    Pursuant to Rule 11.350, once IEX begins a listing program, IEX
Auctions will enable Members to participate in electronic price
discovery mechanisms that match all eligible orders resting on the
Order Book that are eligible for continuous trading (i.e., orders on
the ``Continuous Book''), as well as all eligible orders queued for
execution in the applicable auction (i.e., orders on the ``Auction
Book'') in each IEX-listed security at a single price using a double
auction process. Members who wish to participate in an IEX Auction can
send Auction Eligible Orders (i.e., orders on Continuous Book or
Auction Book that are not Auction Ineligible Orders \13\) prior to the
auction. The IEX Auction process is designed to efficiently maximize
the number of shares executed at a single price during the auctions.
IEX Auctions will apply to all IEX-listed securities at the open
(``Opening Auction'') and close (``Closing Auction'') of the Regular
Market Session, for the start of trading for an IPO or launch of a new
issue (``IPO Auction''), and upon the resumption of trading in a
security following a trading halt (``Halt Auction'') or a trading pause
pursuant to the LULD Plan (``Volatility Auction'').\14\
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    \13\ See Rule 11.350(a)(3).
    \14\ See Rule 11.280(e)(1)(A) and Supplementary Material .01(c)
to Rule 14.207.
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    Auction Eligible Orders resting on the Continuous Book are ranked
by the price at which they are resting on the Continuous Book; Auction
Eligible Orders resting on the Auction Book are ranked by the limit
price defined by the User, if any, (in each case, the order's ``resting
price''). Specifically, pursuant to Rule 11.350(b)(1)(A)(i), Auction
Eligible Orders are ranked and eligible for execution in IEX Auctions
in price-display-time priority as follows:
     Midpoint peg orders are ranked and eligible for execution
in the Closing Auction at the less aggressive of the Midpoint Price or
the order's limit price, if any.
     Primary peg orders are ranked and eligible for execution
in the Closing Auction at the less aggressive of one (1) MPV below
(above) the NBB (NBO) for buy (sell) orders or the order's limit price,
if any, but may exercise price discretion up (down) to the auction
match price, subject to the less aggressive of the NBB (NBO) or the
order's limit price, if any, except during periods of quote
instability, as defined in IEX Rule 11.190(g). When exercising price
discretion, primary peg orders are ranked behind any non-displayed
interest at the auction match price for the duration of the Closing
Auction. If multiple primary peg orders are exercising price discretion
during the Closing Auction, they maintain their relative time priority
at the auction match price.
     Discretionary Peg orders are ranked and eligible for
execution in the Closing Auction at the less aggressive of the NBB
(NBO) for buy (sell) orders or the order's limit price, if any, but may
exercise price discretion up (down) to the auction match price, subject
to the less aggressive of the Midpoint Price or the order's limit
price, if any, except during periods of quote instability, as defined
in IEX Rule 11.190(g). When exercising price discretion, Discretionary
Peg orders are ranked behind any non-displayed interest at the auction
match price for the duration of the Closing Auction. If multiple
Discretionary Peg orders are exercising price discretion during the
Closing Auction, they maintain their relative time priority at the
auction match price.
     Non-displayed limit orders and non-displayed portions of
reserve orders on the Continuous Book are ranked and eligible for
execution in the Opening or Closing Auction at the less aggressive of
the Midpoint Price or the order's limit price.
     Displayed limit orders on the Continuous Book are ranked
and eligible for execution in the Opening or Closing Auction at the
order's resting price.
     Limit orders, including LOO and LOC orders, on the Auction
Book are ranked and eligible for execution in an auction at the order's
limit price.
IEX Order Collar and Router Constraint
    Rule 11.190(f)(1) sets forth the operation of the IEX Order Collar,
which prevents any incoming order, or order resting on the Order Book
including those marked ISO, from executing at prices outside of the
Order Collar price range. Similarly, Rule 11.190(f)(2) sets forth the
operation of the IEX Router Constraint, which prevents an order from
routing at prices more aggressive than the Router Constraint price
range. The Order Collar and Router Constraint price ranges are
calculated by applying the numerical guidelines for clearly erroneous
executions to the Order Collar Reference Price and Router Constraint
Reference Price, respectively.\15\ The Order Collar Reference Price and
Router Constraint Reference Price are each defined as the most current
of the following:
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    \15\ The upper (lower) Order Collar price range and the upper
(lower) Router Constraint Price range are calculated by adding
(subtracting) the appropriate percentage (consistent with the
numerical guidelines for clearly erroneous executions) to the Order
Collar Reference Price and the Router Constraint Reference Price,
respectively.
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     The 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.
    In the event there is no valid Order Collar Reference Price or
Router Constraint Reference Price, the Exchange generally rejects
orders for the security.\16\
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    \16\ See Rules 11.190(f)(1)-(2).
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Proposed Clarifications
    During development and testing of the functionality for the Opening
Process and IEX Auctions, the Exchange identified a minor ambiguity
between the Order Collar and Router Constraint rule provisions, and the
rule provisions governing the priority of ranking and execution for
orders eligible for execution in the Opening Process or IEX Auctions.
Specifically, as described above, the priority of ranking and execution
rule provisions for the Opening Process and for IEX Auctions
contemplate that the IEX Order Collar would not apply to orders
eligible for the Cross Book or the Auction Book, and that the Router
Constraint functionality would not apply to orders eligible for the
Cross Book or the Opening Auction Book.\17\ As set forth above, the
rules governing priority of ranking and execution for the Opening
Process and IEX Auctions specify in relevant part that orders queued on
the Cross Book or the Auction Book rest at the order's limit price
defined by the User (if any), and that market orders have precedence
over limit orders. Accordingly, and as discussed more fully below,
application of the Order Collar or Router Constraint to such orders
would be inconsistent with the provisions governing their priority of
ranking and execution.
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    \17\ The Exchange notes that the Router Constraint does not
apply to orders on the Closing Auction Book, because such orders are
comprised of On-Close orders (i.e., Limit-On-Close and Market-On-
Close orders), which are only accepted if they are appropriately
designated as ``IEX-only''. See the IEX Auction Specification at 15,
which describes valid FIX tag combinations for On-Close orders. See
also Rules 11.350(a)(20) and (24). Similarly, the Router Constraint
does not apply to market orders with a time-in-force of DAY that are
entered during the Pre-Market Session and are eligible for the
Opening Auction Book, because such orders are rejected if they are
designated to route pursuant to Rule 11.230(c). See Rule
11.190(a)(2)(E)(iii). Accordingly, the proposed rule change is
narrowly tailored to cover limit orders eligible for the Opening
Auction Book.
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    The Exchange believes that the application of the Order Collar to
orders eligible for the Cross Book or the Auction Book, or the Router
Constraint to orders eligible for the Cross Book or the Opening Auction
Book, would be inconsistent with the existing provisions governing
their priority of ranking and execution, because a collared or
constrained limit order could rest at a less aggressive price than its
user-defined limit price, and a collared or constrained market order
would, by definition, have a limit applied by the System (which is
inconsistent with the user-instructed terms if the order), and could
cede priority. For example, if the Order Collar were to apply, a market
order to buy (sell) entered for the Opening Process or for an IEX
Auction would effectively be converted into a limit order with a limit
price equal to the upper (lower) Order Collar price range. Moreover, a
limit order to buy (sell) with a limit price more aggressive than the
upper (lower) Order Collar price range would be entered onto the Cross
Book or the Auction Book with a limit price equal to the upper (lower)
Order Collar price range, which is a less aggressive price than the
orders' user-defined limit price. Similarly, if the Router Constraint
were to apply to routable orders that are eligible for the Cross Book
or the Opening Auction Book, a routable limit order to buy (sell) with
a limit price more aggressive than the upper (lower) Router Constraint
price range would be entered onto the Cross Book or the Opening Auction
Book, respectively, with a limit price equal to the upper (lower)
Router Constraint price range, which is a less aggressive price than
the user-defined limit price on such orders. Lastly, in addition to the
inconsistencies that arise from applying the Router Constraint as
described above, its application to a buy (sell) order entered onto the
Opening Auction Book early in the Pre-Market Session based on the price
of the current last trade could unnecessarily constrain the order from
participating in the auction and impact the price discovery process if
the market for the security has moved up (down) by the time of the
Opening Auction.
    In addition to the foregoing, the Exchange believes that applying
the Order Collar or Router Constraint to orders entered for a Halt or
Volatility Auction could disrupt the price discovery process, and would
be inconsistent with the protection of investors and the public
interest.\18\ Applying the Order Collar or Router Constraint to orders
entered for a Halt Auction or Volatility Auction would require using
the price of the last trade immediately before the halt or pause as the
Order Collar Reference Price and Router Constraint Reference Price,
respectively. In the event of a trading halt, the market is in the
process of reestablishing the value of a security, and therefore
calculating the Order Collar price range and Router Constraint price
range using a last sale reference price that may not reflect
adjustments in valuation resulting from additional information
regarding the security during the halt could result in auction pricing
that is not reflective of the current value of the security. Similarly,
in the event of a trading pause, the security has just experienced
sharp price volatility and the market is in the process of
reestablishing the value of a security, and therefore calculating the
Order Collar price range and the Router Constraint price range using a
reference price that may not reflect adjustments in valuation during
the pause could potentially result in auction pricing that is not
reflective of the current value of the security. Accordingly, the
Exchange is proposing to also clarify that in the event a security is
subject to a trading halt or trading pause, the Router Constraint
Reference Price is invalid. Pursuant to Rule 11.190(f)(2)(B), in the
absence of a valid Router Constraint Reference Price, the Exchange will
reject any routable orders for the security.
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    \18\ The Exchange notes that securities that are the subject of
an IPO Auction pursuant to Rule 11.350(e) will be subject to a
trading halt pursuant to Rule 11.280(g)(7), and would therefore not
have a valid Router Constraint Reference Price pursuant Rule
11.190(f)(2)(A).
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    In sum, consistent with the foregoing, the Exchange is proposing
to:
     Clarify in Rule 11.190(f)(1) that the Order Collar does
not apply to orders that are eligible for the Cross Book pursuant to
Rule 11.231 during the Opening Process for non-IEX-listed securities or
the Auction Book pursuant to Rule 11.350(a)(1) during the auction
process for IEX-listed securities;
     Clarify in Rule 11.190(f)(2) that the Router Constraint
does not apply to orders that are eligible for the Cross Book pursuant
to Rule 11.231 during the Opening Process for non-IEX-listed securities
or the Auction Book pursuant to Rule 11.350(a)(1)(A)(ii) during the
auction process for IEX-listed securities; and
     Clarify in Rule 11.190(f)(2)(A) that the Router Constraint
Reference Price during a trading halt or pause is invalid.
    Lastly, as recently announced by IEX Trading Alert #2017-027, on
August 23, 2017 the Exchange began a multi-phase deployment of the
Opening Process for non-IEX-listed securities.\19\ The production
deployment is scheduled to be completed on August 30, 2017. Moreover,
as announced by IEX Trading Alert #2017-015, the Exchange intends to
become a primary listing exchange and support its first IEX-listed
security

in October of 2017.\20\ In addition, as part of the listings
initiative, the Exchange is providing a series of industry wide weekend
tests for the Exchange and its Members to exercise the various
technology changes required to support IEX Auctions and listings
functionality.\21\ Accordingly, in order to provide clarity to Members
and other market participants regarding the Opening Process and IEX
Auctions, and specifically to avoid potential confusion regarding the
inapplicability of the IEX Order Collar and Router Constraint to their
operation, the Exchange is proposing to make the clarifying changes to
Rule 11.190(f)(1) and (2) described above.
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    \19\ See IEX Trading Alert #2017-027 (Deployment Schedule for
New Opening Process for Non-IEX-Listed Securities), August 3, 2017.
    \20\ See IEX Trading Alert #2017-015 (Listings Specifications,
Testing Opportunities, and Timelines), May 31, 2017.
    \21\ See IEX Trading Alert #2017-028 (First Listings
Functionality Industry Test on Saturday, August 26), August 17,
2017.
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2. Statutory Basis
    IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \22\ of the Act in general, and furthers the
objectives of Section 6(b)(5) of the Act \23\ 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.
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    \22\ 15 U.S.C. 78f.
    \23\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule clarifications do not
alter the substantive functionality of the Opening Process or IEX
Auctions, but instead clarify the applicability of the IEX Order Collar
and Router Constraint so as to be consistent with the existing rules
approved by the Commission. The Exchange further believes that the
proposed clarifying rule change is consistent with the protection of
investors and the public interest because the proposed clarifications
are designed to avoid any potential confusion regarding the Opening
Process and IEX Auction functionality as IEX completes the production
deployment of the Opening Process for non-IEX-listed securities, and
begins industry wide testing to exercise the technology changes being
made by the Exchange and its Members, and make the Exchanges rules more
clear and complete. Additionally, the Exchange believes it is
consistent with the Act to clarify the rule provisions regarding the
Opening Process and IEX Auctions so that IEX's rules are accurate and
descriptive of the System's functionality as approved by the
Commission, and to avoid any potential confusion among Members and
market participants regarding such functionality. Lastly, the Exchange
believes that it is consistent with the Act to provide that the Router
Constraint Reference Price is invalid in the event a security is
subject to a trading halt or trading pause, and thus routable orders in
such security will be rejected, to further clarify the inapplicability
of the Router Constraint to such orders. As discussed in the Purpose
section, when a security is subject to a trading halt or trading pause,
the Router Constraint Reference Price may not reflect adjustments in
valuation and therefore could result in auction pricing that is not
reflective of the current value of the security.

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

    IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes that the
proposed correction does not impact competition in any respect since it
is designed to clarify the inapplicability of the IEX Order Collar and
Router Constraint to orders eligible for execution in the Opening
Process for non-IEX-listed securities and in IEX Auctions for IEX-
listed securities, without substantively changing the Rules as
separately approved. In addition, the Exchange does not believe that
clarifying that the Router Constraint Reference Price is invalid in the
event a security is subject to a trading halt or trading pause will
impose any burden on competition, since this proposed change is
designed to further clarify the inapplicability of the Router
Constraint to such orders. The proposed changes will apply equally to
all Members and therefore no new burdens are being proposed.

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

    Written comments were neither solicited nor received.

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

    The Exchange has designated this rule filing as non-controversial
under Section 19(b)(3)(A) \24\ of the Act and Rule 19b-4(f)(6) \25\
thereunder. Because the proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.
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    \24\ 15 U.S.C. 78s(b)(3)(A).
    \25\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \26\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\27\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has filed
the proposed rule change for immediate effectiveness and has requested
that the Commission waive the requirement that the proposed rule change
not become operative for 30 days after the date of the filing, so that
it may become operative on the date the filing was received.
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    \26\ 17 CFR 240.19b-4(f)(6).
    \27\ 17 CFR 240.19b-4(f)(6)(iii).
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    The purpose of the proposed rule change is to state clearly in IEX
Rule 11.190 the inapplicability of the IEX Order Collar and Router
Constraint to orders eligible for execution in the Opening Process for
non-IEX-listed securities and in IEX Auctions for IEX-listed
securities. Additionally, the proposed rule change clearly states in
IEX Rule 11.190 that the IEX Router Constraint is inapplicable when a
security is subject to a trading halt or trading pause and such orders
will be rejected. These clarifications resolve potential ambiguity and
ensure consistency between IEX Rule 11.190 and the opening auction
rules previously approved by the Commission. Further, the proposed rule
change does not raise any novel issues. The waiver of the operative
delay is, therefore, consistent with the protection of investors and
the public interest because it will help to avoid potential confusion
among market participants regarding the inapplicability of the IEX
Order Collar and Router Constraint to orders eligible for the Cross
Book for non-IEX-listed securities and the Auction Book for IEX-listed
securities. Therefore, the Commission hereby waives the 30-day
operative delay and designates the proposed rule change to be operative
upon filing.\28\
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    \28\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).

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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \29\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \29\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form
    (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-IEX-2017-31 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-2017-31. This file
number should be included in the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (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 Web site viewing and
printing in the Commission's Public Reference Section, 100 F Street
NE., Washington, DC 20549-1090. Copies of the filing will also be
available for inspection and copying at the IEX's principal office and
on its Internet Web site at www.iextrading.com. All comments received
will be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-IEX-2017-31 and should be submitted on
or before October 17, 2017.
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    \30\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-20500 Filed 9-25-17; 8:45 am]
BILLING CODE 8011-01-P