Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Correct Two Typographical Errors in IEX Rules 2.220(a)(7) and 11.410(a), 57280-57282 [2020-20256]
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Federal Register / Vol. 85, No. 179 / Tuesday, September 15, 2020 / Notices
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on August 28, 2020, the Board
unanimously determined that failure to
redeem the Fund’s shares would likely
result in adverse consequences to all of
the Fund’s shareholders.
Applicant’s Conditions
Applicant has agreed to the following
as conditions to deregistration under the
Act:
1. Applicant will continue to
maintain its internet website and shall
post its semi-annual (unaudited) and
annual (audited by the Applicant’s
independent accountants) financial
statements to its website. As of the date
of the filing of the application,
Applicant has not engaged an
independent accounting firm to audit
the Applicant. However, the Board and
Applicant’s management are actively
seeking a firm to perform any required
audits. The Applicant’s financial
statements will be prepared in
conformity with generally accepted
accounting practices in the United
States of America and comply with
Regulation S–X, as if the Applicant were
a registered management investment
company, and will be posted to the
Applicant’s website within 60 days of
the period’s end. Within 60 days of the
period’s end, Applicant will send
notifications to the shareholders (i)
informing them that its financial
statements are available online, (ii)
providing the internet address where
the financial statements can be found
and (iii) offering to send them a paper
copy, free of charge, upon their request.
2. Applicant will continue to
maintain a Board that complies with the
fund governance standards under Rule
0–1(a)(7) under the Act as if Applicant
were a registered management
investment company. The Applicant’s
Board will continue to meet no less
frequently than quarterly. The Board
shall continue to approve the selection
of the Applicant’s independent public
accountant in accordance with Rule
32a–4 under the Act as if the Applicant
were a registered management
investment company. No less frequently
than quarterly, the Applicant’s Board
shall determine the fair value of the
illiquid asset in a manner consistent
with Section 2(a)(41) of the Act. In the
event that the value ascribed to that
asset decreases 25% or more with
respect to its prior value, such decrease
shall be promptly communicated in
writing to (i) the shareholders and (ii)
staff of the Commission’s Division of
Investment Management.
3. Applicant shall continue to
maintain and implement the policies
and procedures required by Rules 17j–
1 and 38a–1 under the Act as if it were
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a registered management investment
company.
4. Applicant will comply with the
books and records provisions of Section
31 of the Act, and the rules thereunder
as set forth in the response to Item 7 of
the application. Such books and records
shall promptly be made available to the
staff of the Commission as requested.
5. Applicant will operate in
compliance with Section 17 of the Act
as if it were a registered management
investment company.
6. Neither (i) the Applicant’s
investment adviser, (ii) any ‘‘affiliated
person’’ (as defined in the Act) of the
investment adviser, (iii) any affiliated
person of the Applicant, nor (iv) any
affiliated person of the persons
described in clauses (ii) or (iii) will
receive any fee or other payment,
directly or indirectly, from Applicant;
provided, however, that Applicant is
permitted to make pro rata liquidation
distributions.
For the Commission, by the Division of
Investment Management, under delegated
authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–20268 Filed 9–14–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89796; File No. SR–IEX–
2020–13]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Correct Two
Typographical Errors in IEX Rules
2.220(a)(7) and 11.410(a)
September 9, 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
September 3, 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).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Pursuant to the provisions of Section
19(b)(1) under the Act,4 and Rule 19b–
4 thereunder,5 IEX is filing is filing with
the Commission a proposed rule change
to correct two typographical errors in
IEX Rules 2.220(a)(7) and 11.410(a). 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
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 recently filed a
proposed rule change to amend, in part,
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 Top of
Book 8 quotations, in anticipation of
MIAX PEARL’s planned launch of
equities trading on September 25, 2020 9
(the ‘‘Original Filing’’).10 The Original
Filing introduced identical
typographical errors in IEX Rules
4 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
6 15 U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4.
8 See IEX Rule 11.410(a)(1).
9 See https://www.miaxoptions.com/alerts/2020/
07/20/miax-pearl-equities-updated-dom-andesesm-interface-specifications.
10 See Securities Exchange Act Release No. 89705
(August 28, 2020) (SR–IEX–2020–12).
5 17
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Federal Register / Vol. 85, No. 179 / Tuesday, September 15, 2020 / Notices
2.220(a)(7) and Rule 11.410(a), which
the Exchange proposes to correct as
described below.
The Original Filing inadvertently
listed the Market Identifier Code
(‘‘MIC’’) for MIAX PEARL’s equities
exchange as ‘‘MPRL,’’ which is the MIC
for MIAX PEARL’s options exchange.
The Exchange proposes to correct these
typographical errors by replacing the
references to ‘‘MPRL’’ in IEX Rules
2.220(a)(7) and Rule 11.410(a) with
references to ‘‘EPRL,’’ which is the MIC
for MIAX PEARL’s equities exchange.11
2. Statutory Basis
IEX believes that the proposed rule
change is consistent with the provisions
of Section 6(b) 12 of the Act in general,
and furthers the objectives of Section
6(b)(5) of the Act 13 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.
Specifically, IEX believes that the
proposed rule change is consistent with
Section 6(b)(5) of the Act 14 because by
correcting inadvertent typographical
errors introduced by the Original Filing,
it will eliminate any confusion
regarding the away trading centers to
which the Exchange routes and the
market data sources the Exchange will
use to determine Top of Book
quotations, without substantively
changing such provisions.
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
rather to correct inadvertent
typographical errors, thereby
eliminating any potential confusion
regarding such rule provisions without
changing their substance.
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
11 See
supra note 9.
U.S.C. 78f.
13 15 U.S.C. 78f(b)(5).
14 15 U.S.C. 78f(b)(5).
12 15
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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 15 and Rule 19b–
4(f)(6) thereunder.16
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 17 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 18
permits the Commission to 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. 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,
without undue delay, to correct a
typographical error in an acronym used
in a recent proposed rule change filing
to avoid any potential confusion before
the MIAX PEARL equities platform
commences operations. 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.19
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
15 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.
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6)(iii).
19 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).
16 17
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57281
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 20 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:
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–2020–13 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–2020–13. 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
20 15
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U.S.C. 78s(b)(2)(B).
15SEN1
57282
Federal Register / Vol. 85, No. 179 / Tuesday, September 15, 2020 / Notices
publicly. All submissions should refer
to File Number SR–IEX–2020–13 and
should be submitted on or before
October 6, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–20256 Filed 9–14–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89799; File No. SR–
NASDAQ–2020–027]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Order
Instituting Proceedings To Determine
Whether To Approve or Disapprove a
Proposed Rule Change To Apply
Additional Initial Listing Criteria for
Companies Primarily Operating in
Restrictive Markets
September 9, 2020.
I. Introduction
On May 29, 2020, The Nasdaq Stock
Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to apply additional listing
criteria to companies primarily
operating in a jurisdiction that has
secrecy laws, blocking statutes, national
security laws or other laws or
regulations restricting access to
information by regulators of U.S.-listed
companies. The proposed rule change
was published for comment in the
Federal Register on June 12, 2020.3 On
July 21, 2020, pursuant to Section
19(b)(2) of the Act,4 the Commission
designated a longer period within which
to approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to disapprove the proposed
rule change.5
21 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 89027
(June 8, 2020), 85 FR 35962 (‘‘Notice’’). Comments
on the proposed rule change can be found at:
https://www.sec.gov/comments/sr-nasdaq-2020027/srnasdaq2020027.htm.
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 89358
(July 21, 2020), 85 FR 45275 (July 27, 2020). The
Commission designated September 10, 2020 as the
date by which the Commission shall approve or
disapprove, or institute proceedings to determine
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1 15
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16:57 Sep 14, 2020
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The Commission is publishing this
order to solicit comments on the
proposed rule change from interested
persons and to institute proceedings
pursuant to Section 19(b)(2)(B) of the
Act 6 to determine whether to approve
or disapprove the proposed rule change.
II. Exchange’s Description of the
Proposed Rule Change
The Exchange states that in recent
years the lack of transparency from
certain emerging markets has raised
concerns with respect to listed emerging
market companies regarding the
accuracy of disclosures, accountability,
and access to information, particularly
when the companies are based in a
jurisdiction that has secrecy laws,
blocking statutes, national security laws
or other laws or regulations restricting
access to information by regulators of
U.S.-listed companies (‘‘Restrictive
Market’’).7 The Exchange further states
that such concerns can be compounded
when a company lists on the Exchange
through an initial public offering
(‘‘IPO’’) or a business combination with
a small offering size or a low public
float percentage, as the company may
not develop sufficient public float,
investor base, and trading interest to
provide the depth and liquidity
necessary to promote fair and orderly
trading, which may result in a security
that is illiquid.8 The Exchange states
that such securities may trade
infrequently, in a more volatile manner,
and with a wider bid-ask spread, all of
which may lead to trading at a price that
may not reflect true market value.9 In
addition, the Exchange states that less
liquid securities may be more
susceptible to price manipulation and
that, in particular, the risk of price
manipulation due to insider trading is
more acute with respect to a company
that principally administers its business
in a Restrictive Market (‘‘Restrictive
Market Company’’) because regulatory
investigations into price manipulation,
insider trading, and compliance
concerns may be impeded, and,
therefore, investor protections and
remedies may be limited.10 As a result,
the Exchange states that it believes that
Restrictive Market Companies present
unique potential risks to U.S.
investors.11
The Exchange states that it is now
proposing rule changes that it believes
whether to approve or disapprove, the proposed
rule change.
6 15 U.S.C. 78s(b)(2)(B).
7 See Notice, supra note 3, at 35962.
8 See id. at 35962 and 35965.
9 See id. at 35962 and 35965–66.
10 See id. at 35962 and 35966.
11 See id. at 35965.
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Frm 00102
Fmt 4703
Sfmt 4703
will help to ensure that Restrictive
Market Companies have sufficient
investor base and public float to support
fair and orderly trading on the
Exchange.12 Specifically, the Exchange
proposes to adopt a definition of
‘‘Restrictive Market’’ 13 and to apply
additional initial listing requirements to
a Restrictive Market Company listing on
the Exchange in connection with an IPO
or a business combination.14 The
Exchange also proposes to prohibit a
Restrictive Market Company from listing
on the Nasdaq Capital Market in
connection with a Direct Listing,15 but
to allow a Restrictive Market Company
to list on the Nasdaq Global Select
Market or Nasdaq Global Market in
connection with a Direct Listing,
provided that such company meets all
applicable initial listing requirements
for such market.
A. Definition of Restrictive Market
The Exchange proposes to adopt a
new definition of Restrictive Market in
Listing Rule 5005(a)(37).16 As proposed,
a Restrictive Market would mean a
jurisdiction that Nasdaq determines to
have secrecy laws, blocking statutes,
national security laws or other laws or
regulations restricting access to
information by regulators of U.S.-listed
companies in such jurisdiction.17 In
12 See
id.
infra note 17 and accompanying text.
14 The Exchange states that, currently, it may rely
upon its discretionary authority under Nasdaq
Listing Rule 5101 to deny initial listing or apply
additional or more stringent criteria when it is
concerned that a small offering size for an IPO may
not reflect the company’s initial valuation or may
not ensure sufficient liquidity to support trading in
the secondary market. Pursuant to Rule 5101,
Nasdaq has broad discretionary authority over the
initial and continued listing of securities in Nasdaq
in order to maintain the quality of and public
confidence in its market, to prevent fraudulent and
manipulative acts and practices, to promote just
and equitable principles of trade, and to protect
investors and the public interest. Nasdaq may use
such discretion to deny initial listing, apply
additional or more stringent criteria for the initial
or continued listing of particular securities, or
suspend or delist particular securities based on any
event, condition, or circumstance that exists or
occurs that makes initial or continued listing of the
securities on Nasdaq inadvisable or unwarranted in
the opinion of Nasdaq, even though the securities
meet all enumerated criteria for initial or continued
listing on Nasdaq. See Nasdaq Listing Rule 5101.
15 Nasdaq defines ‘‘Direct Listing’’ as the listing
of ‘‘companies that have sold common equity
securities in private placements, which have not
been listed on a national securities exchange or
traded in the over-the-counter market pursuant to
FINRA Form 211 immediately prior to the initial
pricing.’’ See Nasdaq Listing Rule IM–5315–1.
16 The Exchange proposes to renumber current
paragraphs (a)(37) through (a)(46) of Listing Rule
5005 in connection with the addition of the
definition of Restrictive Market. See Notice, supra
note 3, at 35963.
17 See id. at 35962–63; proposed Listing Rule
5005(a)(37).
13 See
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]]>Agencies
[Federal Register Volume 85, Number 179 (Tuesday, September 15, 2020)]
[Notices]
[Pages 57280-57282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20256]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89796; File No. SR-IEX-2020-13]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Correct
Two Typographical Errors in IEX Rules 2.220(a)(7) and 11.410(a)
September 9, 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 September 3, 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 is filing with the
Commission a proposed rule change to correct two typographical errors
in IEX Rules 2.220(a)(7) and 11.410(a). 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 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 recently filed a proposed rule change to amend, in
part, 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 Top of Book \8\ quotations, in anticipation of MIAX PEARL's
planned launch of equities trading on September 25, 2020 \9\ (the
``Original Filing'').\10\ The Original Filing introduced identical
typographical errors in IEX Rules
[[Page 57281]]
2.220(a)(7) and Rule 11.410(a), which the Exchange proposes to correct
as described below.
---------------------------------------------------------------------------
\8\ See IEX Rule 11.410(a)(1).
\9\ See https://www.miaxoptions.com/alerts/2020/07/20/miax-pearl-equities-updated-dom-and-esesm-interface-specifications.
\10\ See Securities Exchange Act Release No. 89705 (August 28,
2020) (SR-IEX-2020-12).
---------------------------------------------------------------------------
The Original Filing inadvertently listed the Market Identifier Code
(``MIC'') for MIAX PEARL's equities exchange as ``MPRL,'' which is the
MIC for MIAX PEARL's options exchange. The Exchange proposes to correct
these typographical errors by replacing the references to ``MPRL'' in
IEX Rules 2.220(a)(7) and Rule 11.410(a) with references to ``EPRL,''
which is the MIC for MIAX PEARL's equities exchange.\11\
---------------------------------------------------------------------------
\11\ See supra note 9.
---------------------------------------------------------------------------
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \12\ of the Act in general, and furthers the
objectives of Section 6(b)(5) of the Act \13\ 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.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f.
\13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Specifically, IEX believes that the proposed rule change is
consistent with Section 6(b)(5) of the Act \14\ because by correcting
inadvertent typographical errors introduced by the Original Filing, it
will eliminate any confusion regarding the away trading centers to
which the Exchange routes and the market data sources the Exchange will
use to determine Top of Book quotations, without substantively changing
such provisions.
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\14\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change is not
designed to address any competitive issues but rather to correct
inadvertent typographical errors, thereby eliminating any potential
confusion regarding such rule provisions without changing their
substance.
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 \15\ and Rule 19b-
4(f)(6) thereunder.\16\
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires 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 \17\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \18\ permits the
Commission to 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. 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, without undue delay, to correct a typographical
error in an acronym used in a recent proposed rule change filing to
avoid any potential confusion before the MIAX PEARL equities platform
commences operations. 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.\19\
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
\19\ 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) \20\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\20\ 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-2020-13 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-2020-13. 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
[[Page 57282]]
publicly. All submissions should refer to File Number SR-IEX-2020-13
and should be submitted on or before October 6, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-20256 Filed 9-14-20; 8:45 am]
BILLING CODE 8011-01-P
