Federal Register: SEC Approves Addition of IEX to Exchange Act Plan and Allocates Regulatory Responsibility

The SEC approved an amendment to a Rule 17d-2 plan ("Plan"). In order to avoid unnecessary and costly regulatory duplication, Exchange Act Rule 17d–2 permits self-regulatory organizations ("SROs") to implement joint plans, subject to SEC approval, for the allocation of regulatory responsibilities with respect to their common members. Consistent with Rule 17d-2, the amendment allocates to FINRA the regulatory responsibilities for the surveillance, investigation and enforcement of insider trading rules for the various exchanges with respect to their common members.

The amendment specifically: (i) reflects the addition of Investors Exchange LLC ("IEX") as a "Participant" to the Plan, (ii) reflects the name changes of certain other Plan Participants, (iii) removes Chicago Board Options Exchange, Inc. as a Participant, and (iii) updates the Participants' rules that are covered by the Plan. In addition, the Participants entered into a regulatory services agreement that addresses investigation and enforcement in situations involving insider trading by non-common FINRA members.