Sunshine Act Meeting, 50035 [2016-18061]
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Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Notices
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Pub. L. 94–409, that the
Securities and Exchange Commission
Equity Market Structure Advisory
Committee will hold a public meeting
on Tuesday, August 2, 2016, in the
Multipurpose Room, LL–006 at the
Commission’s headquarters, 100 F
Street NE., Washington, DC
The meeting will begin at 9:30 a.m.
(EDT) and will be open to the public.
Seating will be on a first-come, firstserved basis. Doors will be open at 9:00
a.m. Visitors will be subject to security
checks. The meeting will be webcast on
the Commission’s Web site at
www.sec.gov.
On July 13, 2016, the Commission
published notice of the Committee
meeting (Release No. 34–78308),
indicating that the meeting is open to
the public and inviting the public to
submit written comments to the
Committee. This Sunshine Act notice is
being issued because a majority of the
Commission may attend the meeting.
The agenda for the meeting will focus
on updates and potential
recommendations from the four
subcommittees.
For further information, please
contact Brent J. Fields from the Office of
the Secretary at (202) 551–5400.
Dated: July 26, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016–18061 Filed 7–27–16; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78417]
Order Granting Application of
Investors’ Exchange LLC for a Limited
Exemption from Exchange Act Rule
10b–10(a)(2)(i)(A) pursuant to Rule
10b–10(f)
asabaliauskas on DSK3SPTVN1PROD with NOTICES
July 26, 2016.
I. Introduction
By letter dated July 19, 2016 (‘‘the
Application’’), Investors’ Exchange LLC
(‘‘IEX’’ or the ‘‘Exchange’’) requests a
limited exemption from the
requirements of Rule 10b–10(a)(2)(i)(A)
under the Securities Exchange Act of
1934 (‘‘Exchange Act’’) on behalf of
VerDate Sep<11>2014
18:42 Jul 28, 2016
Jkt 238001
Members 1 that execute trades on the
Exchange for their customers. As
discussed in the Application, IEX will
operate a fully automated electronic
order book with a continuous,
automated matching function that will
provide for strict price-display-time
priority execution (‘‘Trading System’’).2
The order book and the Exchange’s rules
provide for post trade anonymity
through settlement for trades executed
through IEX.3
II. Background 4
a. The Exchange
IEX is registered as a national
securities exchange under Section 6 of
the Exchange Act.5 The Members of the
Exchange consist of those broker-dealers
admitted to Membership and entitled to
enter orders in, and receive executions
through, the Exchange’s order book or
otherwise.
The Exchange will operate an order
book for orders with a continuous,
automated matching function, in
compliance with the Exchange’s rules
and Regulation NMS under the Act.6
Liquidity will be derived from orders to
buy and orders to sell submitted to the
Exchange electronically by its Members
from remote locations.
The order book and the Exchange’s
rules will provide for strict pricedisplay-time priority execution. Under
IEX Rule 11.220, orders will be
prioritized on a strict price-display-time
basis, first by price, then by display
(with displayed orders and displayed
portions of orders having precedence
over non-displayed orders and nondisplayed portions of orders at a given
price) and then by time. Incoming
orders are first matched for execution
1 Unless otherwise defined in this order, defined
terms used have the same meaning as described in
the Exchange Rules.
2 See IEX Rule 11.220. IEX represents that the
Exchange’s rules do not provide for any special
order type that would be an exception to the strict
price-display-time priority handling of orders as set
forth in IEX Rule 11.220.
3 As explained in the Application, the Exchange
does not request an exemption from Rule 10b–
10(a)(2)(i)(A) for when it reveals the identity of a
Member or a Member’s clearing firm: (i) For
regulatory purposes or to comply with an order of
a court or arbitrator; or (ii) when a Registered
Clearing Agency (such as the National Securities
Clearing Corporation) ceases to act for a Member or
the Member’s clearing firm, and determines not to
guarantee the settlement of the Member’s trades.
See IEX Rule 11.250(d)(2).
4 Background information is derived from the
Application.
5 See In the Matter of the Application of:
Investors’ Exchange, LLC for Registration as a
National Securities Exchange; Findings, Opinion,
and Order of the Commission, Exchange Act
Release No. 78101 (June 17, 2016), 81 FR 41141
(June 23, 2016).
6 See 17 CFR 242.600 et seq.
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
50035
against orders in the IEX order book.
Orders that cannot be executed are
eligible for routing to away trading
centers, if consistent with the terms of
the orders.7 All trades will be executed
through the Exchange’s Trading System
on an anonymous basis. The transaction
reports produced by the Trading System
will indicate the details of transactions
executed in the Trading System but
shall not reveal the contra party
identities. Transactions executed in the
Trading System will also be cleared and
settled anonymously.8
The order book’s matching system
algorithm permits orders originated by
an IEX Member to execute against other
orders from the same participant on the
same basis as orders from other
Members. In the order book’s handling
of displayed orders, which is based on
strict price-display-time priority, a
Member could receive an execution
against itself, and under the Exchange’s
Rules, the Member would not know that
it was the contra-side of the trade at the
time of execution.
a. Rule 10b–10
Rule 10b–10 under the Exchange Act
generally requires broker-dealers
effecting a customer transaction in
securities (other than U.S. savings bonds
or municipal securities) 9 to provide a
written notification to its customer, at or
before completion of a securities
transaction, that discloses information
specific to the transaction. In particular,
under Rule 10b–10(a)(2)(i)(A), when a
broker-dealer acts as agent for a
customer, for some other person, or for
both a customer and some other person,
the broker-dealer must disclose ‘‘[t]he
name of the person from whom the
security was purchased, or to whom it
was sold, for such customer or the fact
that the information will be furnished
upon written request of such customer’’
(the ‘‘Contra-Party Identity
Requirement’’).
III. Relief Sought
As explained in the Application,
trades are executed with total
anonymity on IEX, where the identity of
the actual contra-party is not revealed
7 See IEX Rule 11.230. The Exchange understands
that the exemptive relief would not apply to any
situation in which the Trading System routes an
order to an away trading center for execution, as
such executions would be governed by the rules of
the away trading center.
8 Except for the conditions set forth in IEX Rule
11.250(d)(2). See supra note 3.
9 Municipal securities are subject to the
transaction confirmations requirements under Rule
G–15 of the Municipal Securities Rulemaking
Board.
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[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Notices]
[Page 50035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18061]
[[Page 50035]]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Pub. L. 94-409, that the Securities and
Exchange Commission Equity Market Structure Advisory Committee will
hold a public meeting on Tuesday, August 2, 2016, in the Multipurpose
Room, LL-006 at the Commission's headquarters, 100 F Street NE.,
Washington, DC
The meeting will begin at 9:30 a.m. (EDT) and will be open to the
public. Seating will be on a first-come, first-served basis. Doors will
be open at 9:00 a.m. Visitors will be subject to security checks. The
meeting will be webcast on the Commission's Web site at www.sec.gov.
On July 13, 2016, the Commission published notice of the Committee
meeting (Release No. 34-78308), indicating that the meeting is open to
the public and inviting the public to submit written comments to the
Committee. This Sunshine Act notice is being issued because a majority
of the Commission may attend the meeting.
The agenda for the meeting will focus on updates and potential
recommendations from the four subcommittees.
For further information, please contact Brent J. Fields from the
Office of the Secretary at (202) 551-5400.
Dated: July 26, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-18061 Filed 7-27-16; 11:15 am]
BILLING CODE 8011-01-P
