Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to Fees Pursuant to Rule 15.110, 8084-8085 [2020-02749]
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8084
Federal Register / Vol. 85, No. 29 / Wednesday, February 12, 2020 / Notices
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 self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
submitted to OMB within 30 days of
this notice.
Dated: February 7, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–02781 Filed 2–11–20; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88134; File No. SR–IEX–
2020–02]
1. Purpose
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Related to Fees
Pursuant to Rule 15.110
February 6, 2020.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on February
4, 2020, the Investors Exchange LLC
(‘‘IEX’’ or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
lotter on DSKBCFDHB2PROD with NOTICES
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 Act,4 and Rule 19b–
4 thereunder,5 IEX is filing with the
Commission proposed changes to
eliminate the IEX Enhanced Market
Maker (‘‘IEMM’’) program set forth in
IEX Rule 11.170 and make conforming
changes to its Fee Schedule, pursuant to
IEX Rule 15.110(a) and (c), to eliminate
the IEMM fee discounts.
The text of the proposed rule change
is available at the Exchange’s website 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
1 15
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(1).
5 17 CFR 240.19b–4.
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Jkt 250001
The Exchange is proposing to
eliminate the IEX Enhanced Market
Maker (‘‘IEMM’’) program set forth in
IEX Rule 11.170 and to make
conforming changes to its Fee Schedule,
pursuant to IEX Rule 15.110(a) and (c),
to eliminate the IEMM fee discounts.
Background
IEX launched the IEMM program on
February 1, 2018.6 The IEMM program
provides a fee discount to incentivize
Members 7 to quote at and/or near the
NBBO 8 in IEX Listed Securities 9 for a
significant portion of the day. As
specified in IEX Rule 11.170, a Member
registered as an IEX Market Maker
pursuant to Rule 11.150 in all securities
listed on IEX 10 may be designated as an
IEMM by meeting the monthly quoting
criteria for the Inside Tier, the Depth
Tier, or both.11 Members designated as
IEMMs qualify for a lower per-share rate
charged for both displayed and nondisplayed executions subject to either
the Reduced or Standard Match Fees on
the Exchange in securities priced at or
above $1.00, as set forth in IEX Rule
11.170(a)(3) and the IEX Fee Schedule.
There are no longer any IEX Listed
Securities, and it is thus not possible for
any Member to qualify for designation
as an IEMM and the applicable
6 See Securities Exchange Act Release No. 82636
(February 6, 2018), 83 FR 6059 (February 12, 2018)
(SR–IEX–2018–02).
7 See IEX Rule 1.160(s).
8 The term ‘‘NBBO’’ means the national best bid
or offer, as set forth in Rule 600(b) of Regulation
NMS under the Act, determined as set forth in IEX
Rule 11.410(b). See IEX Rule 1.160(u).
9 See IEX Rule 14.002(19).
10 Supplementary Material .01 to Rule 11.170
provides a limited exception to the requirement that
a Member must be a registered IEX Market Maker
in all securities listed on IEX if (i) a Member does
not act as a market maker in one or more IEX-listed
securities on any other national securities exchange,
and (ii) the Market Maker provides documentation,
satisfactory to IEX Regulation, substantiating that
such Member is unable to act as a market maker in
one or more particular securities listed on IEX (a)
in order to comply with specified legal or regulatory
requirements, or (b) operational restrictions not
exceeding 90 calendar days from the date the
security first lists on the Exchange.
11 See IEX Rule 11.170.
PO 00000
Frm 00168
Fmt 4703
Sfmt 4703
transaction fee discount.12 Therefore,
the Exchange is proposing to eliminate
the IEMM program and delete IEX Rule
11.170 (designating it as ‘‘Reserved’’)
and remove all references to the IEMM
fee discounts from the IEX Fee
Schedule. IEX believes this proposed
rule change will eliminate any possible
confusion about whether Members can
qualify for the IEMM discounts.
2. Statutory Basis
IEX believes that the proposed rule
change is consistent with the provisions
of Section 6(b) of the Act 13 in general,
and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,14 in
particular, in that it is designed to
provide for the equitable allocation of
reasonable dues, fees and other charges
among its Members and other persons
using the Exchange’s facilities; and to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system.
The Exchange believes that the
proposed rule change is consistent with
these principles because it will remove
obsolete rule text and fee provisions,
thereby avoiding any potential
confusion among Members. As noted in
the Purpose section, there are no longer
any IEX Listed Securities, and it is thus
not possible for any Member to qualify
for designation as an IEMM and the
applicable transaction fee discount. The
Exchange further believes that the
proposed rule change is reasonable,
equitable, and not unfairly
discriminatory because the changes will
apply equally to all Members.
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
proposed rule change is not designed to
address any competitive issues but
simply to remove obsolete rule text and
fee provisions to avoid any potential
confusion among Members.
12 IEX announced its listing business exit on
September 23, 2019, which was effective on
October 7, 2019. See IEX Trading Alert #2019–029
available at: https://iextrading.com/alerts/#/85.
13 15 U.S.C. 78f.
14 15 U.S.C. 78f(b)(4)–(5).
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Federal Register / Vol. 85, No. 29 / Wednesday, February 12, 2020 / Notices
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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) 15 of the Act.
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) 16 of the Act to
determine whether the proposed rule
change should be approved or
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:
lotter on DSKBCFDHB2PROD with NOTICES
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–2020–02 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–2020–02. 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 website (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 website 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–IEX–2020–02 and should
be submitted on or before March 4,
2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–02749 Filed 2–11–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–794, OMB Control No.
3235–0737]
Proposed Collection; Comment
Request; 30 Day Notice—Submission
for OMB Review; Comment Request;
Extension: Rule 22e–4 (30 Day Notice
2019)
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
30 day notice—Submission for OMB
Review; Comment Request
Extension:
Rule 22e–4 (30 Day Notice 2019)
Notice is hereby given that, under the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501–3520), the Securities and
Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collections of information
summarized below. The Commission
plans to submit 1 this existing collection
17 17
CFR 200.30–3(a)(12).
30-day notice supersedes the notice
originally published in the Federal Register on
February 5, 2020 (85 FR 6588, Feb. 5, 2020). That
8085
of information to the Office of
Management and Budget for extension
and approval.
Section 22(e) of the Investment
Company Act of 1940 (‘‘Investment
Company Act’’) provides that no
registered investment company shall
suspend the right of redemption or
postpone the date of payment of
redemption proceeds for more than
seven days after tender of the security
absent specified unusual circumstances.
The provision was designed to prevent
funds and their investment advisers
from interfering with the redemption
rights of shareholders for improper
purposes, such as the preservation of
management fees. Although section
22(e) permits funds to postpone the date
of payment or satisfaction upon
redemption for up to seven days, it does
not permit funds to suspend the right of
redemption for any amount of time,
absent certain specified circumstances
or a Commission order.
Rule 22e–4 under the Act [17 CFR
270.22e–4] requires an open-end fund
and an exchange-traded fund that
redeems in kind (‘‘In-Kind ETF’’) to
establish a written liquidity risk
management program that is reasonably
designed to assess and manage the
fund’s or In-Kind ETF’s liquidity risk.
The rule also requires board approval
and oversight of a fund’s or In-Kind
ETF’s liquidity risk management
program and recordkeeping. Rule 22e–4
also requires a limited liquidity review,
under which a UIT’s principal
underwriter or depositor determines, on
or before the date of the initial deposit
of portfolio securities into the UIT, that
the portion of the illiquid investments
that the UIT holds or will hold at the
date of deposit that are assets is
consistent with the redeemable nature
of the securities it issues and retains a
record of such determination for the life
of the UIT and for five years thereafter.
The following estimates of average
burden hours and costs are made solely
for purposes of the Paperwork
Reduction Act and are not derived from
a comprehensive or even representative
survey or study of the cost of
Commission rules and forms.
Commission staff estimates that funds
within 846 fund complexes are subject
to rule 22e–4. Compliance with rule
22e–4 is mandatory for all such funds
and In-Kind ETFs, with certain program
elements applicable to certain funds
within a fund complex based upon
whether the fund is an In-Kind ETF or
does not primarily hold assets that are
highly liquid investments. The
1 This
15 15
16 15
U.S.C. 78s(b)(3)(A)(ii).
U.S.C. 78s(b)(2)(B).
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notice incorrectly contained the heading ‘‘Proposed
Collection’’.
E:\FR\FM\12FEN1.SGM
12FEN1
]]>Agencies
[Federal Register Volume 85, Number 29 (Wednesday, February 12, 2020)]
[Notices]
[Pages 8084-8085]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02749]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88134; File No. SR-IEX-2020-02]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Related to
Fees Pursuant to Rule 15.110
February 6, 2020.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on February 4, 2020, the Investors Exchange LLC (``IEX'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
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 Act,\4\
and Rule 19b-4 thereunder,\5\ IEX is filing with the Commission
proposed changes to eliminate the IEX Enhanced Market Maker (``IEMM'')
program set forth in IEX Rule 11.170 and make conforming changes to its
Fee Schedule, pursuant to IEX Rule 15.110(a) and (c), to eliminate the
IEMM fee discounts.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
website 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 statements 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 is proposing to eliminate the IEX Enhanced Market
Maker (``IEMM'') program set forth in IEX Rule 11.170 and to make
conforming changes to its Fee Schedule, pursuant to IEX Rule 15.110(a)
and (c), to eliminate the IEMM fee discounts.
Background
IEX launched the IEMM program on February 1, 2018.\6\ The IEMM
program provides a fee discount to incentivize Members \7\ to quote at
and/or near the NBBO \8\ in IEX Listed Securities \9\ for a significant
portion of the day. As specified in IEX Rule 11.170, a Member
registered as an IEX Market Maker pursuant to Rule 11.150 in all
securities listed on IEX \10\ may be designated as an IEMM by meeting
the monthly quoting criteria for the Inside Tier, the Depth Tier, or
both.\11\ Members designated as IEMMs qualify for a lower per-share
rate charged for both displayed and non-displayed executions subject to
either the Reduced or Standard Match Fees on the Exchange in securities
priced at or above $1.00, as set forth in IEX Rule 11.170(a)(3) and the
IEX Fee Schedule.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 82636 (February 6,
2018), 83 FR 6059 (February 12, 2018) (SR-IEX-2018-02).
\7\ See IEX Rule 1.160(s).
\8\ The term ``NBBO'' means the national best bid or offer, as
set forth in Rule 600(b) of Regulation NMS under the Act, determined
as set forth in IEX Rule 11.410(b). See IEX Rule 1.160(u).
\9\ See IEX Rule 14.002(19).
\10\ Supplementary Material .01 to Rule 11.170 provides a
limited exception to the requirement that a Member must be a
registered IEX Market Maker in all securities listed on IEX if (i) a
Member does not act as a market maker in one or more IEX-listed
securities on any other national securities exchange, and (ii) the
Market Maker provides documentation, satisfactory to IEX Regulation,
substantiating that such Member is unable to act as a market maker
in one or more particular securities listed on IEX (a) in order to
comply with specified legal or regulatory requirements, or (b)
operational restrictions not exceeding 90 calendar days from the
date the security first lists on the Exchange.
\11\ See IEX Rule 11.170.
---------------------------------------------------------------------------
There are no longer any IEX Listed Securities, and it is thus not
possible for any Member to qualify for designation as an IEMM and the
applicable transaction fee discount.\12\ Therefore, the Exchange is
proposing to eliminate the IEMM program and delete IEX Rule 11.170
(designating it as ``Reserved'') and remove all references to the IEMM
fee discounts from the IEX Fee Schedule. IEX believes this proposed
rule change will eliminate any possible confusion about whether Members
can qualify for the IEMM discounts.
---------------------------------------------------------------------------
\12\ IEX announced its listing business exit on September 23,
2019, which was effective on October 7, 2019. See IEX Trading Alert
#2019-029 available at: https://iextrading.com/alerts/#/85.
---------------------------------------------------------------------------
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) of the Act \13\ in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\14\ in
particular, in that it is designed to provide for the equitable
allocation of reasonable dues, fees and other charges among its Members
and other persons using the Exchange's facilities; and to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, and to remove impediments to and perfect the mechanism of a
free and open market and a national market system.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78f.
\14\ 15 U.S.C. 78f(b)(4)-(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change is consistent
with these principles because it will remove obsolete rule text and fee
provisions, thereby avoiding any potential confusion among Members. As
noted in the Purpose section, there are no longer any IEX Listed
Securities, and it is thus not possible for any Member to qualify for
designation as an IEMM and the applicable transaction fee discount. The
Exchange further believes that the proposed rule change is reasonable,
equitable, and not unfairly discriminatory because the changes will
apply equally to all Members.
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 proposed rule change is not
designed to address any competitive issues but simply to remove
obsolete rule text and fee provisions to avoid any potential confusion
among Members.
[[Page 8085]]
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) \15\ of the Act.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
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) \16\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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 [email protected]. Please include
File Number SR-IEX-2020-02 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-2020-02. 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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-IEX-2020-02 and should be submitted on
or before March 4, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------
\17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-02749 Filed 2-11-20; 8:45 am]
BILLING CODE 8011-01-P
