Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt DEEP, a New Depth of Book Market Data Feed, Rename TOPS Viewer to IEX Data Platform, and Include Depth of Book Market Data Therein, 12653-12656 [2017-04202]
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Federal Register / Vol. 82, No. 42 / Monday, March 6, 2017 / Notices
asabaliauskas on DSK3SPTVN1PROD with NOTICES
begins. Because the Service will assist
the stabilizing agent in performing this
function, which is performed by no
other broker, Nasdaq believes that it is
reasonable to limit access to the Service
to the Stabilizing Agent. Moreover,
because the Service will cease to be
available once the Cross is executed and
the information provided therein will
quickly become stale, Nasdaq does not
believe that access to the information
will provide the Stabilizing Agent with
any unfair advantage.
Nasdaq believes that the proposal to
move provisions of Rule 7015 into Rule
7017 is consistent with the Act because
the change is intended to promote a
clear understanding of the rule text by
including in a single rule all Nasdaq
data services that are specifically
designed to support the initial trading of
securities that are the subject of an IPO
or a Follow-On Offering. Nasdaq further
believes that the proposal to make the
Service available to eligible recipients at
no additional charge is reasonable
because it will not result in any increase
in the costs incurred by a Stabilizing
Agent to receive the additional
information. Nasdaq further believes
that the proposal is consistent with an
equitable allocation of fees and not
unfairly discriminatory because
additional information is being
provided to a limited group of potential
users in order to assist in the promotion
of fair and orderly markets during a
Follow-On Offering. Accordingly, the
absence of an additional fee is designed
to encourage eligible members to accept
the information in order to ensure that
the goals of the proposal are advanced
to the greatest extent possible.
Nasdaq further believes that the nonsubstantive changes it is making to
move information about the IPO
Indicator Service from Rule 7015 to new
Rule 7017, and to provide additional
detail in Rule 7017 about the
information available through the IPO
Indicator Service, are consistent with
the Act because they will promote a
clearer understanding of the IPO
Indicator Service by members and other
interested persons.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
Nasdaq does not believe that the
proposed rule change will impose any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. In fact,
because the Service is intended to
provide the Stabilizing Agent with
information about the condition of the
Nasdaq order book in advance of the
Cross, Nasdaq believes that the proposal
will help it compete more effectively
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with NYSE by allowing it to provide to
Stabilizing Agents with information that
is similar in effect to the information
available to stabilizing agents through
the NYSE DMM. Accordingly, Nasdaq
does not believe that there can be any
reasonable objection to the proposal on
competitive grounds.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2017–015 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–NASDAQ–2017–015. This
file number should be included on 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
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12653
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 Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. 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–
NASDAQ–2017–015 and should be
submitted on or before March 27, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–04204 Filed 3–3–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80118; File No. SR–IEX–
2017–05]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Adopt
DEEP, a New Depth of Book Market
Data Feed, Rename TOPS Viewer to
IEX Data Platform, and Include Depth
of Book Market Data Therein
February 28, 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 February
15, 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
21 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 82, No. 42 / Monday, March 6, 2017 / Notices
solicit comments on the proposed rule
change from interested persons.
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 the ‘‘Exchange’’) is filing with
the Commission a proposed rule change
to amend Rule 11.330(a)(3) to adopt a
new market data product to be known
as DEEP, which is an uncompressed
data feed that provides aggregated depth
of book quotations for all displayed
orders for securities traded on IEX, and
execution information (i.e., last sale
information) for executions on the
Exchange. Additionally, the Exchange
proposes to amend Rule 11.330(a)(2) in
order to change the name of its data feed
currently known as TOPS Viewer to IEX
Data Platform, and to add aggregated
depth of book quotations for up to ten
(10) price levels to the IEX Data
Platform. The Exchange has designated
this proposal as non-controversial and
provided the Commission with the
notice required by Rule 19b–4(f)(6)(iii)
under the Act.6
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 [sic] 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.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 11.330(a)(3) to describe a new
market data product to be known as
DEEP. Currently, the Exchange offers
4 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
6 17 CFR 240.19b–4(f)(6)(iii).
5 17
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TOPS, an uncompressed data feed that
provides aggregated top of book
quotations for all displayed orders
resting on the Order Book and execution
information (i.e., last sale information)
for executions on the Exchange. The
data disseminated on TOPS is also
available via TOPS Viewer through the
Exchange’s public Web site. Both TOPS
and TOPS Viewer are provided free of
charge. Based on informal discussion
with market participants and other
Users, the Exchange has determined that
there is demand for a depth of book feed
offering. Accordingly, the Exchange
proposes to amend Rule 11.330(a)(3) to
offer DEEP. As proposed, DEEP will
disseminate, on a real-time basis,7
aggregated depth of book quotations for
all displayed orders resting on the Order
Book at each price level for securities
traded on IEX (i.e., displayed top of
book and full depth of book quotations)
and execution information (i.e., last sale
information) for executions on the
Exchange. DEEP will be provided free of
charge.
Consistent with IEX’s existing
approach whereby data disseminated on
TOPS is also available via TOPS Viewer
through the Exchange’s public Web site,
IEX is proposing to continue this
paradigm by also providing aggregated
depth of book quotations for all
displayed orders resting on the Order
Book for up to ten (10) price levels that
are disseminated through DEEP via the
Exchange’s public Web site.
Accordingly, the Exchange proposes to
amend Rule 11.330(a)(2) to modify the
name of its data product currently
known as TOPS Viewer, and instead
title it the IEX Data Platform, to reflect
that such platform will provide a suite
of data that includes data disseminated
by TOPS and a subset of data
disseminated by DEEP.
As is the case currently with respect
to TOPS and TOPS Viewer, the
aggregated best bid and offer (‘‘BBO’’)
and last sale information disseminated
through DEEP and the IEX Data Platform
will also be reported under the
Consolidated Tape Association (‘‘CTA’’)
Plan or the Nasdaq/UTP Plan. The
Exchange will release such information
to DEEP and the IEX Data Platform in
compliance with Rule 603(a) of
Regulation NMS, which requires that
exchanges distribute market data on
7 Rule 11.510(b)(2) describes the application of
the POP to outbound communications from the
Exchange, which impacts DEEP in the same manner
as all other data products offered by the Exchange.
Specifically, as specified therein, the POP ‘‘is
designed to provide all Participants with an
equivalent 350 microseconds of latency from the
System at the primary data center to the Exchangeprovided network interface at the IEX POP.’’
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terms that are ‘‘fair and reasonable’’ and
‘‘not unreasonably discriminatory,’’ and
prohibits an exchange from releasing
data relating to quotes and trades to its
customers through proprietary feeds
before it sends its quotes and trade
reports for inclusion in the consolidated
feeds.8
The Exchange plans to implement the
proposed changes during the second
quarter of 2017 pending completion of
necessary technology changes and
subject to effectiveness of this proposed
rule change. The Exchange will
announce the implementation date of
the proposed changes by Trader Alert at
least 10 business days in advance of
such implementation date and within
90 days of effectiveness of this proposed
rule change.
2. Statutory Basis
IEX believes that the proposed rule
change is consistent with the provisions
of Section 6 of the Act 9 in general, and
with Section 6(b)(5) of the Act,10 in
particular. DEEP will be provided
consistent with the purposes of Section
6(b)(5) of the Act.11 Moreover, the
proposed rule change is not designed to
permit unfair discrimination among
customers, issuers, and brokers; and is
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in facilitating transactions in securities,
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.
The proposed rule change is designed
to promote just and equitable principles
of trade and remove impediments to and
perfect the mechanism of a free and
open market and a national market
system by providing quotation and
transaction information to market
participants. The Exchange also believes
this proposal is consistent with Section
6(b)(5) of the Act because it is designed
to protect investors and the public
interest and promote just and equitable
principles of trade by providing
transparency regarding displayed orders
in the IEX System, and also provides
market participants with the option to
receive IEX BBO and last sale
information otherwise than under the
CTA and Nasdaq/UTP Plans. Further,
the proposal would not permit unfair
discrimination because the information
will be available to all market
8 See Regulation NMS, 70 FR 37496, 37567 (June
29, 2005) (adopting release); see also Concept
Release, 75 FR at 3601 (January 21, 2010).
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4), (5).
11 15 U.S.C. 78f(b)(5).
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Federal Register / Vol. 82, No. 42 / Monday, March 6, 2017 / Notices
asabaliauskas on DSK3SPTVN1PROD with NOTICES
participants and market data vendors on
an equivalent basis, and without charge.
In addition, any market participant that
wishes to receive IEX BBO and last sale
information via the CTA and Nasdaq/
UTP Plans will still be able to do so.
The Exchange also believes that the
proposed rule change is consistent with
Section 11(A) of the Act 12 in that it
supports (1) fair competition among
brokers and dealers, among exchange
markets, and between exchange markets
and markets other than exchange
markets and (2) the availability to
brokers, dealers, and investors of
information with respect to quotations
for and transactions in securities.
Furthermore, the proposed rule change
is consistent with Rule 603 of
Regulation NMS,13 which provides that
any national securities exchange which
distributes information with respect to
quotations for or transactions in an NMS
stock do so on terms that are fair and
reasonable and not unreasonably
discriminatory. As noted above, the
Exchange will provide DEEP to
Members and other recipients of
Exchange data on terms that are fair and
reasonable and not unreasonably
discriminatory in that DEEP will be
provided free of charge. Furthermore,
DEEP would be accessed and subscribed
to on a voluntary basis, in that neither
the Exchange nor market data
distributors are required by any rule or
regulation to make this data available.
Accordingly, distributors and
subscribers can discontinue their use at
any time and for any reason.
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 is not proposing to charge a
fee for DEEP or the IEX Data Platform,
and will make both available to market
participants on a fair and impartial
basis, and on terms that are not
unreasonably discriminatory. In
addition, the Exchange believes that
providing aggregated depth of book
quotations as described above is
designed to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system by providing investors with
alternative market data, as well as to
compete with other exchanges that offer
similar market data products, such as
those currently offered by the New York
Stock Exchange, Inc. (‘‘NYSE’’), the
12 15
U.S.C. 78k–1.
17 CFR 242.603.
13 See
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Nasdaq Stock Market LLC (‘‘Nasdaq’’),
and BZX Exchange, Inc. (‘‘Bats’’).14
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
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) 15 of the Act and Rule 19b–
4(f)(6) thereunder.16
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) 17 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
14 See, e.g., Nasdaq Rule 7023(a)(1)(C), which
describes the Nasdaq TotalView as a depth-of-book
data feed that includes all orders and quotes from
all Nasdaq members displayed in the Nasdaq
Market Center as well as the aggregate size of such
orders and quotes at each price level in the
execution functionality of the Nasdaq Market
Center; See also NYSE OpenBook Aggregated,
available at https://www.nyxdata.com/nysedata/
Default.aspx?tabid=1421, which provides a realtime view of the NYSE limit order book including
the aggregated size at each price level; See Bats Rule
11.22(a) and 11.22(c), which describe the Bats TCP
Depth and Multicast Depth feeds as an
uncompressed data feed that offers depth of book
quotations and execution information based on
equity orders entered into the System; See also Bats
Rule 11.22(m), which describes the BZX Summary
Depth feed as a data feed that offers aggregated twosided quotations for all displayed orders entered
into the System for up to five (5) price levels.
15 15 U.S.C. 78s(b)(3)(A).
16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
17 15 U.S.C. 78s(b)(2)(B).
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12655
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
IEX–2017–05 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–2017–05. 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 (https://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, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing will also be available for
inspection and copying at the principal
office of the Exchange. 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–
2017–05 and should be submitted on or
before March 27, 2017.
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Federal Register / Vol. 82, No. 42 / Monday, March 6, 2017 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–04202 Filed 3–3–17; 8:45 am]
BILLING CODE 8011–01–P
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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80121; File No. SR–MIAX–
2017–09]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend MIAX Options Rule
519, MIAX Order Monitor
February 28, 2017.
Pursuant to the provisions of Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’)1 and Rule 19b–4
thereunder,2 notice is hereby given that
on February 23, 2017, Miami
International Securities Exchange, LLC
(‘‘MIAX Options’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend Exchange Rule 519, MIAX Order
Monitor.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/rulefilings, at MIAX’s principal office, and
at the Commission’s Public Reference
Room.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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The Exchange proposes to amend
Rule 519, MIAX Order Monitor, to
clarify the behavior of the Order Size
Protection functionality (defined below)
described in paragraph (b) and to make
minor, non-substantive changes to the
rule as described below. The Exchange
also proposes to amend Rule 519 by
removing the option for a Member 3 to
disable the risk protection features
described in paragraphs (b)–(d) of the
rule: Order Size Protection, Open Order
Protection, and Open Contract
Protection, respectively, which are all
defined below.
The MIAX Order Monitor is a risk
management feature of the Exchange’s
System.4 Pursuant to paragraph (b) of
Rule 519, the MIAX Order Monitor
prevents certain orders from executing
or being placed on the Book 5 if the size
of the order exceeds the Order Size
Protection designated by the Member
submitting the order (proposed ‘‘Order
Size Protection’’).6 If the maximum size
of an order is not designated by the
Member, the Exchange will set a default
maximum value which will be
determined by the Exchange and
announced to Members through a
Regulatory Circular.7
Pursuant to paragraph (c) of Rule 519,
the MIAX Order Monitor rejects any
orders that exceed the maximum
number of open orders held in the
System on behalf of a particular Member
(the ‘‘Open Order Protection’’).8 If the
maximum number of open orders is not
designated by the Member, the
Exchange will set a default maximum
value which will be determined by the
Exchange and announced to Members
through a Regulatory Circular.9
3 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
4 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
5 The term ‘‘Book’’ means the electronic book of
buy and sell orders and quotes maintained by the
System. See Exchange Rule 100.
6 See Exchange Rule 519(b).
7 The Exchange notes that the current default
maximum order size is 10,000 contracts.
8 See Exchange Rule 519(c).
9 The Exchange notes that the current default
maximum number of open orders is 30,000.
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Pursuant to paragraph (d) of Rule 519,
the MIAX Order Monitor rejects any
orders that cause the number of open
contracts represented by orders held in
the System on behalf of a particular
Member (the ‘‘Open Contract
Protection’’) 10 to exceed a specified
maximum number of contracts. If the
maximum number of open contracts is
not designated by the Member, the
Exchange will set a default maximum
value which will be determined by the
Exchange and announced to Members
through a Regulatory Circular.11
The Exchange also proposes to make
minor, non-substantive changes to
paragraph (b) to make the language clear
and consistent with the remainder of the
rule. The Exchange proposes to amend
the heading of paragraph (b) from
‘‘Order Size Protections’’ to ‘‘Order Size
Protection’’ to more accurately reflect
the scope of the functionality.
Additionally, the Exchange proposes to
change the rule text to more accurately
describe that the functionality operates
on a per order basis. The Exchange
proposes to make clarifying changes to
the second sentence by changing the
first occurrence of ‘‘orders’’ to ‘‘an
order’’ and changing the second
occurrence of ‘‘orders’’ to ‘‘order’’ and
placing it after the word ‘‘maximum’’ so
the proposed revised sentence would
read, ‘‘[i]f the maximum size of an order
is not designated by the Member, the
Exchange will set a maximum order size
on behalf of the Member by default.’’
The Order Size Protection operates on
an order by order basis, and the
Exchange believes the revised language
more accurately describes the
functionality.
Additionally, the Exchange proposes
to amend paragraph (b) to eliminate the
option for Members to disable the Order
Size Protection. The proposed sentence
will read, ‘‘[m]embers may designate the
order size protection on a firm wide
basis.’’ Should a Member fail to
designate an Order Size Protection
value, the Exchange will apply a default
setting, which it will determine and
announce to Members through a
Regulatory Circular.
The Exchange also proposes to amend
paragraph (c) to remove the option for
Members to disable the Open Order
Protection. If a Member does not
designate an appropriate value, the
Exchange will apply a default value,
which it will determine and announce
to Members through a Regulatory
Circular.
10 See
Exchange Rule 519(d).
Exchange notes that the current default
maximum number of open contracts is 1,000,000.
11 The
E:\FR\FM\06MRN1.SGM
06MRN1
]]>Agencies
[Federal Register Volume 82, Number 42 (Monday, March 6, 2017)]
[Notices]
[Pages 12653-12656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04202]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80118; File No. SR-IEX-2017-05]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Adopt
DEEP, a New Depth of Book Market Data Feed, Rename TOPS Viewer to IEX
Data Platform, and Include Depth of Book Market Data Therein
February 28, 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 February 15, 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
[[Page 12654]]
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 the ``Exchange'') is filing with the
Commission a proposed rule change to amend Rule 11.330(a)(3) to adopt a
new market data product to be known as DEEP, which is an uncompressed
data feed that provides aggregated depth of book quotations for all
displayed orders for securities traded on IEX, and execution
information (i.e., last sale information) for executions on the
Exchange. Additionally, the Exchange proposes to amend Rule
11.330(a)(2) in order to change the name of its data feed currently
known as TOPS Viewer to IEX Data Platform, and to add aggregated depth
of book quotations for up to ten (10) price levels to the IEX Data
Platform. The Exchange has designated this proposal as non-
controversial and provided the Commission with the notice required by
Rule 19b-4(f)(6)(iii) under the Act.\6\
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\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ 17 CFR 240.19b-4(f)(6)(iii).
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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 [sic] 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
The Exchange proposes to amend Rule 11.330(a)(3) to describe a new
market data product to be known as DEEP. Currently, the Exchange offers
TOPS, an uncompressed data feed that provides aggregated top of book
quotations for all displayed orders resting on the Order Book and
execution information (i.e., last sale information) for executions on
the Exchange. The data disseminated on TOPS is also available via TOPS
Viewer through the Exchange's public Web site. Both TOPS and TOPS
Viewer are provided free of charge. Based on informal discussion with
market participants and other Users, the Exchange has determined that
there is demand for a depth of book feed offering. Accordingly, the
Exchange proposes to amend Rule 11.330(a)(3) to offer DEEP. As
proposed, DEEP will disseminate, on a real-time basis,\7\ aggregated
depth of book quotations for all displayed orders resting on the Order
Book at each price level for securities traded on IEX (i.e., displayed
top of book and full depth of book quotations) and execution
information (i.e., last sale information) for executions on the
Exchange. DEEP will be provided free of charge.
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\7\ Rule 11.510(b)(2) describes the application of the POP to
outbound communications from the Exchange, which impacts DEEP in the
same manner as all other data products offered by the Exchange.
Specifically, as specified therein, the POP ``is designed to provide
all Participants with an equivalent 350 microseconds of latency from
the System at the primary data center to the Exchange-provided
network interface at the IEX POP.''
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Consistent with IEX's existing approach whereby data disseminated
on TOPS is also available via TOPS Viewer through the Exchange's public
Web site, IEX is proposing to continue this paradigm by also providing
aggregated depth of book quotations for all displayed orders resting on
the Order Book for up to ten (10) price levels that are disseminated
through DEEP via the Exchange's public Web site. Accordingly, the
Exchange proposes to amend Rule 11.330(a)(2) to modify the name of its
data product currently known as TOPS Viewer, and instead title it the
IEX Data Platform, to reflect that such platform will provide a suite
of data that includes data disseminated by TOPS and a subset of data
disseminated by DEEP.
As is the case currently with respect to TOPS and TOPS Viewer, the
aggregated best bid and offer (``BBO'') and last sale information
disseminated through DEEP and the IEX Data Platform will also be
reported under the Consolidated Tape Association (``CTA'') Plan or the
Nasdaq/UTP Plan. The Exchange will release such information to DEEP and
the IEX Data Platform in compliance with Rule 603(a) of Regulation NMS,
which requires that exchanges distribute market data on terms that are
``fair and reasonable'' and ``not unreasonably discriminatory,'' and
prohibits an exchange from releasing data relating to quotes and trades
to its customers through proprietary feeds before it sends its quotes
and trade reports for inclusion in the consolidated feeds.\8\
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\8\ See Regulation NMS, 70 FR 37496, 37567 (June 29, 2005)
(adopting release); see also Concept Release, 75 FR at 3601 (January
21, 2010).
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The Exchange plans to implement the proposed changes during the
second quarter of 2017 pending completion of necessary technology
changes and subject to effectiveness of this proposed rule change. The
Exchange will announce the implementation date of the proposed changes
by Trader Alert at least 10 business days in advance of such
implementation date and within 90 days of effectiveness of this
proposed rule change.
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6 of the Act \9\ in general, and with Section
6(b)(5) of the Act,\10\ in particular. DEEP will be provided consistent
with the purposes of Section 6(b)(5) of the Act.\11\ Moreover, the
proposed rule change is not designed to permit unfair discrimination
among customers, issuers, and brokers; and is designed to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, 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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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4), (5).
\11\ 15 U.S.C. 78f(b)(5).
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The proposed rule change is designed to promote just and equitable
principles of trade and remove impediments to and perfect the mechanism
of a free and open market and a national market system by providing
quotation and transaction information to market participants. The
Exchange also believes this proposal is consistent with Section 6(b)(5)
of the Act because it is designed to protect investors and the public
interest and promote just and equitable principles of trade by
providing transparency regarding displayed orders in the IEX System,
and also provides market participants with the option to receive IEX
BBO and last sale information otherwise than under the CTA and Nasdaq/
UTP Plans. Further, the proposal would not permit unfair discrimination
because the information will be available to all market
[[Page 12655]]
participants and market data vendors on an equivalent basis, and
without charge. In addition, any market participant that wishes to
receive IEX BBO and last sale information via the CTA and Nasdaq/UTP
Plans will still be able to do so.
The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act \12\ in that it supports (1)
fair competition among brokers and dealers, among exchange markets, and
between exchange markets and markets other than exchange markets and
(2) the availability to brokers, dealers, and investors of information
with respect to quotations for and transactions in securities.
Furthermore, the proposed rule change is consistent with Rule 603 of
Regulation NMS,\13\ which provides that any national securities
exchange which distributes information with respect to quotations for
or transactions in an NMS stock do so on terms that are fair and
reasonable and not unreasonably discriminatory. As noted above, the
Exchange will provide DEEP to Members and other recipients of Exchange
data on terms that are fair and reasonable and not unreasonably
discriminatory in that DEEP will be provided free of charge.
Furthermore, DEEP would be accessed and subscribed to on a voluntary
basis, in that neither the Exchange nor market data distributors are
required by any rule or regulation to make this data available.
Accordingly, distributors and subscribers can discontinue their use at
any time and for any reason.
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\12\ 15 U.S.C. 78k-1.
\13\ See 17 CFR 242.603.
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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 is not proposing
to charge a fee for DEEP or the IEX Data Platform, and will make both
available to market participants on a fair and impartial basis, and on
terms that are not unreasonably discriminatory. In addition, the
Exchange believes that providing aggregated depth of book quotations as
described above is designed to remove impediments to and perfect the
mechanism of a free and open market and a national market system by
providing investors with alternative market data, as well as to compete
with other exchanges that offer similar market data products, such as
those currently offered by the New York Stock Exchange, Inc.
(``NYSE''), the Nasdaq Stock Market LLC (``Nasdaq''), and BZX Exchange,
Inc. (``Bats'').\14\
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\14\ See, e.g., Nasdaq Rule 7023(a)(1)(C), which describes the
Nasdaq TotalView as a depth-of-book data feed that includes all
orders and quotes from all Nasdaq members displayed in the Nasdaq
Market Center as well as the aggregate size of such orders and
quotes at each price level in the execution functionality of the
Nasdaq Market Center; See also NYSE OpenBook Aggregated, available
at https://www.nyxdata.com/nysedata/Default.aspx?tabid=1421, which
provides a real-time view of the NYSE limit order book including the
aggregated size at each price level; See Bats Rule 11.22(a) and
11.22(c), which describe the Bats TCP Depth and Multicast Depth
feeds as an uncompressed data feed that offers depth of book
quotations and execution information based on equity orders entered
into the System; See also Bats Rule 11.22(m), which describes the
BZX Summary Depth feed as a data feed that offers aggregated two-
sided quotations for all displayed orders entered into the System
for up to five (5) price levels.
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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
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) \15\ of the Act and Rule 19b-4(f)(6) thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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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) \17\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\17\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-IEX-2017-05 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-2017-05. 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 (https://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, on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be
available for inspection and copying at the principal office of the
Exchange. 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-
2017-05 and should be submitted on or before March 27, 2017.
[[Page 12656]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-04202 Filed 3-3-17; 8:45 am]
BILLING CODE 8011-01-P
