The SEC proposed a rule change that would exempt securities listed on the Investors Exchange ("IEX") from state registration requirements, pursuant to Securities Act Section 18(b).
On June 17, 2016, the SEC approved an IEX application to register as a national securities exchange (see previous coverage). The SEC then proposed to amend Securities Act Rule 146(b) to allow for IEX-listed securities to be designated as "covered securities" (i.e., securities listed on registered exchanges that have listing standards determined by the Commission by rule to be "substantially similar" to those of registered exchanges that are already exempted (e.g., the NYSE)). The requested amendment would exempt those IEX-listed securities from state registration requirements. The SEC determined preliminarily that IEX's "listing standards are substantially similar" to those of other major national securities exchanges, and proposed amending Rule 146(b) accordingly.
Comments on the proposal will be due within 30 days of its publication in the Federal Register.
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