Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the IEX Fee Schedule, Pursuant to IEX Rule 15.110(a) and (c), To Clarify the Circumstances in Which IEX Offers Certain Physical Port Connections, 28059-28061 [2020-10057]
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Federal Register / Vol. 85, No. 92 / Tuesday, May 12, 2020 / Notices
conflicts of interest and the effects they
may have on the Plan.
The [Participants propose that the
]Administrators must respond to the
following questions and instructions:
• Is the Administrator an affiliate of
or affiliated with any Participant? If yes,
disclose the[which] Participant(s) and
describe the nature of the affiliation.
Include an entity-level organizational
chart depicting the Administrator and
its affiliates.[?]
• Provide a narrative description of
the functions directly performed by
senior staff, the administrative services
manager, and the staff that reports to
that manager (collectively, the ‘‘Plan
Administrator’’).
• Does the Plan Administrator
provide any services for any
Participant’s Proprietary Market Data
products? If yes, what services? Does the
Plan Administrator have any profit or
loss responsibility, or licensing
responsibility, for a Participant’s
Proprietary Market Data products or any
other professional involvement with
persons the Administrator knows are
engaged in the Participant’s Proprietary
Market Data business? If so, describe.
• List the policies and procedures
established to safeguard confidential
Plan information that is applicable to
the Plan Administrator.
• Does the Administrator, or its
representatives, have additional
relationships or material economic
interests that could be perceived by a
reasonable objective observer to present
a potential conflict of interest with the
representatives’ responsibilities to the
Plan? If so, provide a detailed narrative
discussion of all material facts
necessary to identify the potential
conflicts of interest and the effects they
may have on the Plan.
The [Participants propose that the
]Members of the Advisory Committee
must respond to the following questions
and instructions:
• Provide the Advisor’s title and a
brief description of the Advisor’s role
within the firm.
• Does the Advisor have
responsibilities related to the firm’s use
or procurement of market data?
• Does the Advisor have
responsibilities related to the firm’s
trading or brokerage services?
• Does the Advisor’s firm use the SIP?
Does the Advisor’s firm use exchange
Proprietary Market Data products?
• Does the Advisor’s firm have an
ownership interest of 5% or more in one
or more Participants? If yes, list the
Participant(s).
• Does the Advisor actively
participate in any litigation against the
Plans?
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18:47 May 11, 2020
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• Does the Advisor or the Advisor’s
firm have additional relationships or
material economic interests that could
be perceived by a reasonable objective
observer to present a potential conflict
of interest with their responsibilities to
the Plan? If so, provide a detailed
narrative discussion of all material facts
necessary to identify the potential
conflicts of interest and the effects they
may have on the Plan.
Pursuant to Section IV(e)(1) of the
Plan, each service provider or
subcontractor that has agreed in writing
to provide required disclosures and be
treated as a Disclosing Party pursuant to
Section IV(e) of the Plan shall respond
to the following questions and
instructions:
• Is the service provider or
subcontractor affiliated with a
Participant, Processor, Administrator, or
member of the Advisory Committee? If
yes, disclose with whom the person is
affiliated and describe the nature of the
affiliation.
• If the service provider’s or
subcontractor’s compensation is on a
commission basis or is tied to specific
metrics, provide a detailed narrative
summary of how compensation is
determined for performing work on
behalf of the Plan.
• Is the service provider or
subcontractor subject to policies and
procedures (including information
barriers) concerning the protection of
confidential information that includes
affiliates? If so, describe. If not, explain
their absence.
• Does the service provider or
subcontractor, or its representative,
have additional relationships or
material economic interests that could
be perceived by a reasonable objective
observer to present a potential conflict
of interest with its responsibilities to the
Plan? If so, provide a detailed narrative
discussion of all material facts
necessary to identify the potential
conflicts of interest and the effects they
may have on the Plan.
The [Participants will post the
]responses to these questions will be
posted on the Plan’s website. If a
Disclosing Party has any material
changes in its responses, the Disclosing
Party must promptly update its
disclosures. Additionally, the Disclosing
Parties must[will] update the
disclosures on an annual basis to reflect
any changes. This annual update must
be made before the first quarterly
session meeting of each calendar year,
which is generally held in midFebruary.
[FR Doc. 2020–10037 Filed 5–11–20; 8:45 am]
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28059
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88819; File No. SR–IEX–
2020–06]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify the
IEX Fee Schedule, Pursuant to IEX
Rule 15.110(a) and (c), To Clarify the
Circumstances in Which IEX Offers
Certain Physical Port Connections
May 6, 2020.
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 April 22,
2020, 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
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 Act,4 and Rule 19b–4
thereunder,5 IEX is filing with the
Commission a proposed rule change to
modify its Fee Schedule, pursuant to
IEX Rule 15.110(a) and (c), to clarify the
circumstances in which IEX offers
certain physical port connections. The
Exchange has designated this rule
change as ‘‘non-controversial’’ under
Section 19(b)(3)(A) of the Act 6 and
provided the Commission with the
notice required by Rule 19b–4(f)(6)
thereunder.7
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
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).
U.S.C. 78a.
3 17 CFR 240.19b–4.
4 15 U.S.C. 78s(b)(1).
5 17 CFR 240.19b–4.
6 15 U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4.
2 15
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Federal Register / Vol. 85, No. 92 / Tuesday, May 12, 2020 / Notices
and discussed any comments it received
on the proposed rule change. The text
of these statement 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to modify its
Fee Schedule, pursuant to IEX Rule
15.110(a) and (c), to clarify the
circumstances in which IEX offers
certain physical port connections.
Specifically, the Exchange proposes to
add two footnotes to its Fee Schedule to
clarify that 10 gigabit (‘‘10G’’) physical
connections are available to connect to
both its production and test systems, but
1 gigabit (‘‘1G’’) physical connections
are only available to connect to its test
system. IEX will continue to offer all
physical connections to the Exchange
free of charge.
IEX is proposing this change to its Fee
Schedule in order to more clearly
denote the various ways market
participants can connect to the
Exchange. IEX, like all securities
exchanges, offers its Members 8 physical
connections (also called ‘‘physical
ports’’) through which Members may
‘‘plug in’’ to the Exchange.9 These
physical ports come in several forms
that offer different amounts of
bandwidth into the Exchange’s network.
IEX offers two types of physical ports:
Either a 1G or 10G interface.10 10G
physical ports are ten times faster than
1G physical ports. IEX offers 10G
physical ports only to connect to the
IEX point-of-presence (‘‘IEX POP’’) and
Disaster Recovery data centers
(collectively the ‘‘Production
Systems’’).11 1G physical ports are the
default interface to the IEX Test Facility
8 See
IEX Rule 1.160(s).
physically connect to IEX through
physical ports, each of which supports multiple
‘‘logical port’’ connections. Members send and
receive data through the logical ports (also known
as ‘‘sessions’’) such as order entry messages and
market data feeds.
10 See IEX Connectivity Manual (Version 1.80) at
5, available at https://iextrading.com/docs/
IEX%20Connectivity%20Manual.pdf.
11 Prior to January 1, 2017, IEX allowed Members
to connect to the Production Systems through either
1G or 10G physical ports, see IEX Trading Alert
#2016–060 ‘‘Notice of Upcoming Network &
Support Changes’’ (October 28, 2016) available at
https://iextrading.com/trading/alerts/2016/060/,
but always recommended to Members that they
connect via the faster 10G physical ports. See
‘‘Connectivity Manual (Version 1.0),’’ Addendum
F–14 to IEX’s Form 1 Filing (September 9, 2015).
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(‘‘ITF’’), which is not as bandwidth or
latency sensitive as the Production
Systems, but 10G physical ports are also
available to connect to the ITF.12 IEX
offers all physical ports free of charge,
but the current IEX Fee Schedule does
not specify which physical ports are
used to connect to the Production
Systems or the ITF.13
Therefore, the Exchange proposes to
add two clarifying footnotes to the
‘‘Connectivity Fees’’ section of the IEX
Fee Schedule. The first footnote, after
the words ‘‘10G Physical Port,’’ states
that ‘‘10G physical ports are available to
connect to IEX’s production systems
(i.e., the IEX POP and Disaster Recovery
Data Centers) and the IEX Test Facility
(‘ITF’).’’ The second footnote, after the
words ‘‘1G Physical Port,’’ states that
‘‘1G physical ports are the default
connection to the ITF, but Members may
also connect to the ITF through a 10G
physical port.’’
IEX also proposes to make three
conforming changes to the Connectivity
Fees section of the IEX Fee Schedule.
First, IEX proposes to renumber current
footnote one to footnote three and
current footnote two to footnote four, to
reflect the addition of the new footnotes
one and two. And IEX proposes to
remove the words ‘‘IEX Test Facility’’
from the newly-renumbered footnote
three, because the term is defined in the
new footnote one.
2. Statutory Basis
IEX believes that the proposed rule
change is consistent with the provisions
of Section 6(b) 14 of the Act in general,
and furthers the objectives of Sections
6(b)(4) 15 of the Act, 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 its
facilities. The Exchange also believes
that the proposed rule change is
consistent with Section 6(b)(5) 16 of the
Act, in particular, in that it is designed
to prevent fraudulent and manipulative
acts and practices; 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, and, in
general, to protect investors and the
public interest; and is not designed to
12 See
supra note 10.
IEX Fee Schedule, available at https://
iextrading.com/trading/fees/.
14 15 U.S.C. 78f.
15 15 U.S.C. 78f(b)(4).
16 15 U.S.C. 78f(b)(5).
13 See
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permit unfair discrimination between
customers, brokers, or dealers.
Specifically, the Exchange believes
that the proposed rule change is
consistent with Section 6(b)(4) of the
Act because physical ports will
continue to be available to all Members
on the same basis and free of charge. As
described in the Purpose section, all
Members will continue to be able to
connect to the IEX Production Systems
through faster 10G physical ports, and
may choose to use either 1G or 10G
physical ports to connect to the ITF. As
described in the Purpose section above,
this proposed rule change does not
change any fees charged by IEX, but
rather provides clarity to market
participants as to which physical port
connections are available to connect to
the Production Systems and the ITF.
The Exchange also believes that the
proposed rule change is consistent with
Section 6(b)(5) of the Act because it is
designed to provide enhanced clarity to
Members that 1G physical ports are only
available to connect to the ITF, and that
physical connections to the Exchange’s
Production Systems are only available
through a 10G physical port connection.
While the availability of 1G and 10G
physical port connections are clearly
described in the IEX Connectivity
Manual, as discussed in the Purpose
section, IEX believes that including
descriptive language in the IEX Fee
Schedule will provide enhanced clarity
to Members.
Furthermore, the Exchange believes it
is consistent with the Act to make
conforming changes to the Connectivity
Fees section of the Fee Schedule,
because the renumbering of the
footnotes and deletion of the duplicative
language in the newly-numbered third
footnote will provide enhanced clarity
in the IEX Fee Schedule to the benefit
of all market participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on intermarket or
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
rule change does not impact
competition in any respect, since it is
merely designed to provide enhanced
clarity to market participants rather than
for any competitive purpose.
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Federal Register / Vol. 85, No. 92 / Tuesday, May 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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 17 and Rule
19b–4(f)(6) thereunder.18 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
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 19 and Rule 19b–4(f)(6)(iii)
thereunder.20
A proposed rule change filed under
Rule 19b–4(f)(6) 21 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),22 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing because the proposed rule change
merely clarifies the IEX Fee Schedule’s
description of physical port connections
offered by IEX. The Exchange believes
that waiver of the operative delay is
consistent with the protection of
investors and the public interest
because it will allow the Exchange to
provide clarity to market participants
about which physical port connections
may be used to connect to the
Production Systems and the ITF,
thereby permitting the Exchange to
avoid any potential confusion on the
part of its Members and their associated
persons. For this reason, and because
17 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
19 15 U.S.C. 78s(b)(3)(A).
20 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.
21 17 CFR 240.19b–4(f)(6).
22 17 CFR 240.19b–4(f)(6)(iii).
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18 17
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18:47 May 11, 2020
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the proposal does not raise any novel
issues or affect fees, the Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest. According, the Commission
hereby waives the 30-day operative
delay and designates the proposal
operative upon filing.23
At any time within 60 days of the
filing of this 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 will institute proceedings
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:
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–2020–06 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–2020–06. 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
23 For purposed only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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28061
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–2020–06, and should
be submitted on or before June 2, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–10057 Filed 5–11–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88822; File No. SR–
NYSEArca–2020–37]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change, as Modified by
Amendment No. 1, Regarding
Investments of the PIMCO Enhanced
Short Maturity Active ESG ExchangeTraded Fund
May 6, 2020.
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 April 29,
2020, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. On May 4, 2020, the
Exchange filed Amendment No. 1 to the
proposed rule change, which
superseded and replaced the proposed
rule change in its entirety. The
Commission is publishing this notice to
solicit comments on the proposed rule
24 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
E:\FR\FM\12MYN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 92 (Tuesday, May 12, 2020)]
[Notices]
[Pages 28059-28061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10057]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88819; File No. SR-IEX-2020-06]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Modify
the IEX Fee Schedule, Pursuant to IEX Rule 15.110(a) and (c), To
Clarify the Circumstances in Which IEX Offers Certain Physical Port
Connections
May 6, 2020.
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 April 22, 2020, 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 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 Act,\4\ and
Rule 19b-4 thereunder,\5\ IEX is filing with the Commission a proposed
rule change to modify its Fee Schedule, pursuant to IEX Rule 15.110(a)
and (c), to clarify the circumstances in which IEX offers certain
physical port connections. The Exchange has designated this rule change
as ``non-controversial'' under Section 19(b)(3)(A) of the Act \6\ and
provided the Commission with the notice required by Rule 19b-4(f)(6)
thereunder.\7\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 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
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
[[Page 28060]]
and discussed any comments it received on the proposed rule change. The
text of these statement 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to modify its Fee Schedule, pursuant to IEX
Rule 15.110(a) and (c), to clarify the circumstances in which IEX
offers certain physical port connections. Specifically, the Exchange
proposes to add two footnotes to its Fee Schedule to clarify that 10
gigabit (``10G'') physical connections are available to connect to both
its production and test systems, but 1 gigabit (``1G'') physical
connections are only available to connect to its test system. IEX will
continue to offer all physical connections to the Exchange free of
charge.
IEX is proposing this change to its Fee Schedule in order to more
clearly denote the various ways market participants can connect to the
Exchange. IEX, like all securities exchanges, offers its Members \8\
physical connections (also called ``physical ports'') through which
Members may ``plug in'' to the Exchange.\9\ These physical ports come
in several forms that offer different amounts of bandwidth into the
Exchange's network. IEX offers two types of physical ports: Either a 1G
or 10G interface.\10\ 10G physical ports are ten times faster than 1G
physical ports. IEX offers 10G physical ports only to connect to the
IEX point-of-presence (``IEX POP'') and Disaster Recovery data centers
(collectively the ``Production Systems'').\11\ 1G physical ports are
the default interface to the IEX Test Facility (``ITF''), which is not
as bandwidth or latency sensitive as the Production Systems, but 10G
physical ports are also available to connect to the ITF.\12\ IEX offers
all physical ports free of charge, but the current IEX Fee Schedule
does not specify which physical ports are used to connect to the
Production Systems or the ITF.\13\
---------------------------------------------------------------------------
\8\ See IEX Rule 1.160(s).
\9\ Members physically connect to IEX through physical ports,
each of which supports multiple ``logical port'' connections.
Members send and receive data through the logical ports (also known
as ``sessions'') such as order entry messages and market data feeds.
\10\ See IEX Connectivity Manual (Version 1.80) at 5, available
at https://iextrading.com/docs/IEX%20Connectivity%20Manual.pdf.
\11\ Prior to January 1, 2017, IEX allowed Members to connect to
the Production Systems through either 1G or 10G physical ports, see
IEX Trading Alert #2016-060 ``Notice of Upcoming Network & Support
Changes'' (October 28, 2016) available at https://iextrading.com/trading/alerts/2016/060/, but always recommended to Members that
they connect via the faster 10G physical ports. See ``Connectivity
Manual (Version 1.0),'' Addendum F-14 to IEX's Form 1 Filing
(September 9, 2015).
\12\ See supra note 10.
\13\ See IEX Fee Schedule, available at https://iextrading.com/trading/fees/.
---------------------------------------------------------------------------
Therefore, the Exchange proposes to add two clarifying footnotes to
the ``Connectivity Fees'' section of the IEX Fee Schedule. The first
footnote, after the words ``10G Physical Port,'' states that ``10G
physical ports are available to connect to IEX's production systems
(i.e., the IEX POP and Disaster Recovery Data Centers) and the IEX Test
Facility (`ITF').'' The second footnote, after the words ``1G Physical
Port,'' states that ``1G physical ports are the default connection to
the ITF, but Members may also connect to the ITF through a 10G physical
port.''
IEX also proposes to make three conforming changes to the
Connectivity Fees section of the IEX Fee Schedule. First, IEX proposes
to renumber current footnote one to footnote three and current footnote
two to footnote four, to reflect the addition of the new footnotes one
and two. And IEX proposes to remove the words ``IEX Test Facility''
from the newly-renumbered footnote three, because the term is defined
in the new footnote one.
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \14\ of the Act in general, and furthers the
objectives of Sections 6(b)(4) \15\ of the Act, 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
its facilities. The Exchange also believes that the proposed rule
change is consistent with Section 6(b)(5) \16\ of the Act, in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices; 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, and, in general, to protect
investors and the public interest; and is not designed to permit unfair
discrimination between customers, brokers, or dealers.
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\14\ 15 U.S.C. 78f.
\15\ 15 U.S.C. 78f(b)(4).
\16\ 15 U.S.C. 78f(b)(5).
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Specifically, the Exchange believes that the proposed rule change
is consistent with Section 6(b)(4) of the Act because physical ports
will continue to be available to all Members on the same basis and free
of charge. As described in the Purpose section, all Members will
continue to be able to connect to the IEX Production Systems through
faster 10G physical ports, and may choose to use either 1G or 10G
physical ports to connect to the ITF. As described in the Purpose
section above, this proposed rule change does not change any fees
charged by IEX, but rather provides clarity to market participants as
to which physical port connections are available to connect to the
Production Systems and the ITF.
The Exchange also believes that the proposed rule change is
consistent with Section 6(b)(5) of the Act because it is designed to
provide enhanced clarity to Members that 1G physical ports are only
available to connect to the ITF, and that physical connections to the
Exchange's Production Systems are only available through a 10G physical
port connection. While the availability of 1G and 10G physical port
connections are clearly described in the IEX Connectivity Manual, as
discussed in the Purpose section, IEX believes that including
descriptive language in the IEX Fee Schedule will provide enhanced
clarity to Members.
Furthermore, the Exchange believes it is consistent with the Act to
make conforming changes to the Connectivity Fees section of the Fee
Schedule, because the renumbering of the footnotes and deletion of the
duplicative language in the newly-numbered third footnote will provide
enhanced clarity in the IEX Fee Schedule to the benefit of all market
participants.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on intermarket or intramarket competition that is not
necessary or appropriate in furtherance of the purposes of the Act. The
Exchange believes that the proposed rule change does not impact
competition in any respect, since it is merely designed to provide
enhanced clarity to market participants rather than for any competitive
purpose.
[[Page 28061]]
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \17\ and Rule 19b-4(f)(6) thereunder.\18\
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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \19\ and Rule 19b-
4(f)(6)(iii) thereunder.\20\
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\17\ 15 U.S.C. 78s(b)(3)(A)(iii).
\18\ 17 CFR 240.19b-4(f)(6).
\19\ 15 U.S.C. 78s(b)(3)(A).
\20\ 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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A proposed rule change filed under Rule 19b-4(f)(6) \21\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\22\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing because the proposed rule
change merely clarifies the IEX Fee Schedule's description of physical
port connections offered by IEX. The Exchange believes that waiver of
the operative delay is consistent with the protection of investors and
the public interest because it will allow the Exchange to provide
clarity to market participants about which physical port connections
may be used to connect to the Production Systems and the ITF, thereby
permitting the Exchange to avoid any potential confusion on the part of
its Members and their associated persons. For this reason, and because
the proposal does not raise any novel issues or affect fees, the
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
According, the Commission hereby waives the 30-day operative delay and
designates the proposal operative upon filing.\23\
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\21\ 17 CFR 240.19b-4(f)(6).
\22\ 17 CFR 240.19b-4(f)(6)(iii).
\23\ For purposed only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of this 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 will institute proceedings 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:
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-2020-06 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-2020-06. 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-2020-06, and should be submitted on
or before June 2, 2020.
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\24\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\24\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-10057 Filed 5-11-20; 8:45 am]
BILLING CODE 8011-01-P
