Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend IEX Rules 2.220(a)(7) and 11.410(a) To Include MIAX PEARL, LLC in the List of Away Trading Centers To Which the Exchange Routes and the Market Data Sources the Exchange Will Use To Determine MIAX PEARL's Top of Book Quotation, 55050-55052 [2020-19452]
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55050
Federal Register / Vol. 85, No. 172 / Thursday, September 3, 2020 / Notices
Compression orders are not seeking
price improvement but rather looking to
free up capital that will permit those
parties to continue to provide liquidity
to the market, and thus is not intended
to have a competitive impact.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
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 Exchange 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.
jbell on DSKJLSW7X2PROD with NOTICES
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:
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–CBOE–2020–074 and
should be submitted on or before
September 18, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.53
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2020–19453 Filed 9–2–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–
CBOE–2020–074 on the subject line.
Sunshine Act Meeting; Cancellation
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–CBOE–2020–074. 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
2020 at 9:00 a.m.
VerDate Sep<11>2014
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FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: 85 FR 53898, August
31, 2020.
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Wednesday, September 2,
The Open
Meeting scheduled for Wednesday,
September 2, 2020 at 9:00 a.m., has been
cancelled.
CHANGES IN THE MEETING:
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Dated: September 1, 2020.
Vanessa A. Countryman,
Secretary.
53 17
PO 00000
CFR 200.30–3(a)(12).
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[Release No. 34–89705; File No. SR–IEX–
2020–12]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend IEX
Rules 2.220(a)(7) and 11.410(a) To
Include MIAX PEARL, LLC in the List
of Away Trading Centers To Which the
Exchange Routes and the Market Data
Sources the Exchange Will Use To
Determine MIAX PEARL’s Top of Book
Quotation
August 28, 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 August
25, 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 the Act,4 and Rule 19b–
4 thereunder,5 IEX is filing with the
Commission a proposed rule change to
amend IEX Rules 2.220(a)(7) and
11.410(a) to include MIAX PEARL, LLC
(‘‘MIAX PEARL’’) in the list of away
trading centers to which the Exchange
routes and the market data sources the
Exchange will use to determine MIAX
PEARL’s Top of Book 6 quotation, in
anticipation of MIAX PEARL’s planned
launch. The Exchange has designated
this rule change as ‘‘non-controversial’’
under Section 19(b)(3)(A) of the Act 7
and provided the Commission with the
notice required by Rule 19b–4(f)(6)
thereunder.8
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.
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 See IEX Rule 11.410(a)(1).
7 15 U.S.C. 78s(b)(3)(A).
8 17 CFR 240.19b–4.
2 15
[FR Doc. 2020–19649 Filed 9–1–20; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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Federal Register / Vol. 85, No. 172 / Thursday, September 3, 2020 / 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
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
Statutory Basis for, the Proposed Rule
Change
jbell on DSKJLSW7X2PROD with NOTICES
1. Purpose
The Exchange proposes to amend IEX
Rules 2.220(a)(7) 9 and 11.410(a) 10 to
include MIAX PEARL LLC (‘‘MIAX
PEARL’’) in the list of away trading
centers to which the Exchange routes
and the market data sources the
Exchange will use to determine Top of
Book 11 quotations, in anticipation of
MIAX PEARL’s planned launch of
equities trading on September 25,
2020.12
Specifically, the Exchange proposes to
amend IEX Rule 2.220(a)(7) to add
MIAX PEARL to the list of away trading
centers to which IEX Services routes
orders. As set forth in IEX Rule
11.230(b)(2), IEX Services routes eligible
orders to away trading centers with
accessible Protected Quotations in
compliance with Regulation NMS Rule
611.13 The Exchange must include
MIAX PEARL in its list of away trading
centers to which it routes, because
MIAX PEARL’s best-priced, displayed
quotation will be a Protected Quotation
under Regulation NMS Rule
600(b)(62) 14 for purposes of Regulation
NMS Rule 611.15
The Exchange also proposes to amend
and update the table in IEX Rule
11.410(a) specifying the primary and
secondary sources for MIAX PEARL
market data as a result of MIAX
9 IEX Rule 2.220(a)(7) lists the away trading
centers that IEX Services LLC (‘‘IEX Services’’)
routes to as outbound router for the Exchange.
10 IEX Rule 11.410(a) specifies the market data
sources for each away trading center that the
Exchange uses for necessary price reference points.
11 See IEX Rule 11.410(a)(1).
12 See https://www.miaxoptions.com/alerts/2020/
07/20/miax-pearl-equities-updated-dom-andesesm-interface-specifications.
13 17 CFR 242.611.
14 17 CFR 242.600(b)(62).
15 See MIAX PEARL Equities Rule 2617(c).
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PEARL’s establishment of Top of Market
and Depth of Market Feeds 16 (‘‘MIAX
PEARL Market Data Feeds’’ or ‘‘direct
feeds’’). As specified in IEX Rule
11.410(a)(2), the Exchange uses market
data from each away trading center that
produces a Protected Quotation 17 to
determine each away trading center’s
Top of Book quotation, as well as the
NBBO 18 for certain reporting, regulatory
and compliance systems within IEX. As
proposed, the Exchange will use the
direct feeds as the primary source to
determine MIAX PEARL’s Top of Book
quotes. The Exchange also proposes to
use securities information processor
(‘‘SIP’’) data, i.e., CQS SIP data for
securities reported under the
Consolidated Quotation Services and
Consolidated Tape Association plans
and UQDF SIP data for securities
reported under the Nasdaq Unlisted
Trading Privileges plan, as the
secondary source to determine MIAX
PEARL’s Top of Book quotes.
The Exchange is not proposing any
other changes to IEX Rules 2.220(a)(7)
and 11.410. The proposed changes do
not alter the manner in which orders are
handled or routed by the Exchange.
2. Statutory Basis
IEX believes that the proposed rule
change is consistent with the provisions
of Section 6(b) 19 of the Act in general,
and furthers the objectives of Section
6(b)(5) of the Act 20 in particular, in that
it is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, 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.
For the reasons discussed in the
Purpose section, the Exchange believes
that the proposed rule change removes
impediments to and perfects the
mechanism of a free and open market
and protects investors and the public
interest because including MIAX PEARL
in the list of away trading centers to
which IEX routes and including the
MIAX PEARL Market Data Feeds in the
primary sources of market data the
Exchange will use to determine away
trading center Top of Book quotes (with
the SIP as the secondary source) will
facilitate the Exchange’s compliance
with the applicable requirements of
Regulation NMS.
16 See
MIAX PEARL Equities Rule 2625.
IEX Rule 1.160(bb).
18 See IEX Rule 1.160(u).
19 15 U.S.C. 78f.
20 15 U.S.C. 78f(b)(5).
17 See
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55051
Additionally, adding MIAX PEARL to
the list of away trading centers to which
IEX routes and listing the MIAX PEARL
Market Data Feeds as the primary source
of market data the Exchange will use to
determine away trading center Top of
Book quotes (with the SIP as the
secondary source) provides
transparency with respect to the away
trading centers to which IEX Services
may route orders and the sources of
market data the Exchange will use to
determine MIAX PEARL’s Top of Book
quotes.
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 believes that the proposed
update does not impact competition in
any respect since its purpose is to
enhance transparency with respect to
the operation of the Exchange and its
use of market data feeds, and to update
an away market name.
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 foregoing 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) of the Act 21 and Rule 19b–
4(f)(6) thereunder.22
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 23 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 24
permits the Commission to designate a
shorter time if such action is consistent
21 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its 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.
23 17 CFR 240.19b–4(f)(6).
24 17 CFR 240.19b–4(f)(6)(iii).
22 17
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55052
Federal Register / Vol. 85, No. 172 / Thursday, September 3, 2020 / Notices
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay.
The proposed rule change will merely
amend IEX rules to reflect the planned
September 25, 2020 launch of MIAX
PEARL as an away trading center with
Protected Quotes and specify that IEX
will route orders to MIAX PEARL and
use the direct feeds as the primary
source (with the SIP as the secondary
source) to determine MIAX PEARL’s
Top of Book quotation.
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 implement the proposed
rule change concurrent with MIAX
PEARL’s launch of equities trading,
thereby facilitating IEX’s compliance
with the applicable requirements of
Regulation NMS and providing clarity
to market participants with respect to
whether IEX routes to MIAX PEARL and
how IEX determines MIAX PEARL’s
Top of Book quotation. The Commission
believes that waiver of the 30-day
operative delay is consistent with the
protection of investors and the public
interest because the proposed rule
change does not raise any new or novel
issues. Therefore, the Commission
hereby waives the operative delay and
designates the proposal as operative
upon filing.25
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) 26 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
jbell on DSKJLSW7X2PROD with NOTICES
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:
25 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
26 15 U.S.C. 78s(b)(2)(B).
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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–2020–12 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Vanessa Countryman, Secretary,
Securities and Exchange Commission,
100 F Street NE, Washington, DC
20549–1090.
All submissions should refer to File
Number SR–IEX–2020–12. 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 will also be available for
inspection and copying at the IEX’s
principal office and on its internet
website at www.iextrading.com. 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–2020–12 and
should be submitted on or before
September 24, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Jill M. Peterson,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89710; File No. SR–LTSE–
2020–14]
Self-Regulatory Organizations; LongTerm Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change to
Temporarily Suspend the Application
of Order Price Collars in Rule
11.190(f)(1) Until September 8, 2020
August 28, 2020.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on August
28, 2020, Long-Term Stock Exchange,
Inc. (‘‘LTSE’’ 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
LTSE proposes to temporarily
suspend until September 8, 2020, the
provisions of Rule 11.190(f)(1) pending
further systems development work.
The text of the proposed rule change
is available at the Exchange’s website at
https://longtermstockexchange.com/, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement on 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
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.
[FR Doc. 2020–19452 Filed 9–2–20; 8:45 am]
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27 17
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]]>Agencies
[Federal Register Volume 85, Number 172 (Thursday, September 3, 2020)]
[Notices]
[Pages 55050-55052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19452]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89705; File No. SR-IEX-2020-12]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend IEX
Rules 2.220(a)(7) and 11.410(a) To Include MIAX PEARL, LLC in the List
of Away Trading Centers To Which the Exchange Routes and the Market
Data Sources the Exchange Will Use To Determine MIAX PEARL's Top of
Book Quotation
August 28, 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 August 25, 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 the Act,\4\
and Rule 19b-4 thereunder,\5\ IEX is filing with the Commission a
proposed rule change to amend IEX Rules 2.220(a)(7) and 11.410(a) to
include MIAX PEARL, LLC (``MIAX PEARL'') in the list of away trading
centers to which the Exchange routes and the market data sources the
Exchange will use to determine MIAX PEARL's Top of Book \6\ quotation,
in anticipation of MIAX PEARL's planned launch. The Exchange has
designated this rule change as ``non-controversial'' under Section
19(b)(3)(A) of the Act \7\ and provided the Commission with the notice
required by Rule 19b-4(f)(6) thereunder.\8\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ See IEX Rule 11.410(a)(1).
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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.
[[Page 55051]]
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 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend IEX Rules 2.220(a)(7) \9\ and
11.410(a) \10\ to include MIAX PEARL LLC (``MIAX PEARL'') in the list
of away trading centers to which the Exchange routes and the market
data sources the Exchange will use to determine Top of Book \11\
quotations, in anticipation of MIAX PEARL's planned launch of equities
trading on September 25, 2020.\12\
---------------------------------------------------------------------------
\9\ IEX Rule 2.220(a)(7) lists the away trading centers that IEX
Services LLC (``IEX Services'') routes to as outbound router for the
Exchange.
\10\ IEX Rule 11.410(a) specifies the market data sources for
each away trading center that the Exchange uses for necessary price
reference points.
\11\ See IEX Rule 11.410(a)(1).
\12\ See https://www.miaxoptions.com/alerts/2020/07/20/miax-pearl-equities-updated-dom-and-esesm-interface-specifications.
---------------------------------------------------------------------------
Specifically, the Exchange proposes to amend IEX Rule 2.220(a)(7)
to add MIAX PEARL to the list of away trading centers to which IEX
Services routes orders. As set forth in IEX Rule 11.230(b)(2), IEX
Services routes eligible orders to away trading centers with accessible
Protected Quotations in compliance with Regulation NMS Rule 611.\13\
The Exchange must include MIAX PEARL in its list of away trading
centers to which it routes, because MIAX PEARL's best-priced, displayed
quotation will be a Protected Quotation under Regulation NMS Rule
600(b)(62) \14\ for purposes of Regulation NMS Rule 611.\15\
---------------------------------------------------------------------------
\13\ 17 CFR 242.611.
\14\ 17 CFR 242.600(b)(62).
\15\ See MIAX PEARL Equities Rule 2617(c).
---------------------------------------------------------------------------
The Exchange also proposes to amend and update the table in IEX
Rule 11.410(a) specifying the primary and secondary sources for MIAX
PEARL market data as a result of MIAX PEARL's establishment of Top of
Market and Depth of Market Feeds \16\ (``MIAX PEARL Market Data Feeds''
or ``direct feeds''). As specified in IEX Rule 11.410(a)(2), the
Exchange uses market data from each away trading center that produces a
Protected Quotation \17\ to determine each away trading center's Top of
Book quotation, as well as the NBBO \18\ for certain reporting,
regulatory and compliance systems within IEX. As proposed, the Exchange
will use the direct feeds as the primary source to determine MIAX
PEARL's Top of Book quotes. The Exchange also proposes to use
securities information processor (``SIP'') data, i.e., CQS SIP data for
securities reported under the Consolidated Quotation Services and
Consolidated Tape Association plans and UQDF SIP data for securities
reported under the Nasdaq Unlisted Trading Privileges plan, as the
secondary source to determine MIAX PEARL's Top of Book quotes.
---------------------------------------------------------------------------
\16\ See MIAX PEARL Equities Rule 2625.
\17\ See IEX Rule 1.160(bb).
\18\ See IEX Rule 1.160(u).
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The Exchange is not proposing any other changes to IEX Rules
2.220(a)(7) and 11.410. The proposed changes do not alter the manner in
which orders are handled or routed by the Exchange.
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \19\ of the Act in general, and furthers the
objectives of Section 6(b)(5) of the Act \20\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, 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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\19\ 15 U.S.C. 78f.
\20\ 15 U.S.C. 78f(b)(5).
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For the reasons discussed in the Purpose section, the Exchange
believes that the proposed rule change removes impediments to and
perfects the mechanism of a free and open market and protects investors
and the public interest because including MIAX PEARL in the list of
away trading centers to which IEX routes and including the MIAX PEARL
Market Data Feeds in the primary sources of market data the Exchange
will use to determine away trading center Top of Book quotes (with the
SIP as the secondary source) will facilitate the Exchange's compliance
with the applicable requirements of Regulation NMS.
Additionally, adding MIAX PEARL to the list of away trading centers
to which IEX routes and listing the MIAX PEARL Market Data Feeds as the
primary source of market data the Exchange will use to determine away
trading center Top of Book quotes (with the SIP as the secondary
source) provides transparency with respect to the away trading centers
to which IEX Services may route orders and the sources of market data
the Exchange will use to determine MIAX PEARL's Top of Book quotes.
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 believes that the
proposed update does not impact competition in any respect since its
purpose is to enhance transparency with respect to the operation of the
Exchange and its use of market data feeds, and to update an away market
name.
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 foregoing 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) of the Act \21\ and Rule 19b-
4(f)(6) thereunder.\22\
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\21\ 15 U.S.C. 78s(b)(3)(A).
\22\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its 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 pursuant to Rule 19b-4(f)(6) under the
Act \23\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \24\ permits the
Commission to designate a shorter time if such action is consistent
[[Page 55052]]
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay.
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\23\ 17 CFR 240.19b-4(f)(6).
\24\ 17 CFR 240.19b-4(f)(6)(iii).
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The proposed rule change will merely amend IEX rules to reflect the
planned September 25, 2020 launch of MIAX PEARL as an away trading
center with Protected Quotes and specify that IEX will route orders to
MIAX PEARL and use the direct feeds as the primary source (with the SIP
as the secondary source) to determine MIAX PEARL's Top of Book
quotation.
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 implement the proposed rule
change concurrent with MIAX PEARL's launch of equities trading, thereby
facilitating IEX's compliance with the applicable requirements of
Regulation NMS and providing clarity to market participants with
respect to whether IEX routes to MIAX PEARL and how IEX determines MIAX
PEARL's Top of Book quotation. The Commission believes that waiver of
the 30-day operative delay is consistent with the protection of
investors and the public interest because the proposed rule change does
not raise any new or novel issues. Therefore, the Commission hereby
waives the operative delay and designates the proposal as operative
upon filing.\25\
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\25\ For purposes only of waiving the 30-day operative delay,
the Commission also 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 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) \26\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\26\ 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 [email protected]. Please include
File Number SR-IEX-2020-12 on the subject line.
Paper Comments
Send paper comments in triplicate to Vanessa Countryman,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-IEX-2020-12. 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 will also be available for inspection
and copying at the IEX's principal office and on its internet website
at www.iextrading.com. 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-2020-12
and should be submitted on or before September 24, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
Jill M. Peterson,
Assistant Secretary.
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\27\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2020-19452 Filed 9-2-20; 8:45 am]
BILLING CODE 8011-01-P
