IEX eliminates minimum roster requirement for Obvious Error Panel

On September 18, 2026, Investors Exchange LLC (IEX) filed a proposed rule change with the Securities and Exchange Commission under Release No. 34-106507, File No. SR-IEX-2026-33. The filing amends IEX Rule 21.150 to eliminate the requirement that the Exchange maintain a minimum roster of representatives for its Obvious Error Panel, and the amendment is effective upon filing.

Current Rule 21.150(l)(2) obligates IEX to designate at least ten market-making (MM) representatives and at least ten non-MM representatives - a total minimum roster of twenty individuals - to be called upon for panel service. The proposed amendment removes this fixed roster requirement while preserving the panel's composition of the Chief Regulatory Officer (or designee), two MM representatives, and two non-MM representatives.

IEX states the change is intended to reduce an "unnecessary administrative burden" on the Exchange and its Options Members. By eliminating the mandatory roster size, the Exchange can retain flexibility in selecting qualified representatives without altering the balance of interests on each panel. The proposal notes that similar exchanges, such as Nasdaq Options, do not impose a minimum roster requirement.

The Exchange cites its authority under Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4, and asserts that the amendment is consistent with Section 6(b) of the Act, including the requirements to promote just and equitable principles of trade and to avoid unfair discrimination.

The text of the proposed rule change is available on IEX's website and at its principal office. The Commission is publishing this notice to solicit comments from interested persons.