Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 11.330 To Adopt a New Market Data Product To Be Known as DEEP+, 81608-81612 [2024-23166]
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Federal Register / Vol. 89, No. 195 / Tuesday, October 8, 2024 / Notices
for the Shares will be published daily in
the financial section of newspapers.
Quotation and last-sale information
regarding the Shares will be
disseminated through the facilities of
the CTA.
The proposed rule change is designed
to perfect the mechanism of a free and
open market, and, in general, to protect
investors and the public interest in that
it will facilitate the listing and trading
of an additional type of exchange-traded
product that will enhance competition
among market participants, to the
benefit of investors and the marketplace.
As noted above, the Exchange has in
place surveillance procedures relating to
trading in the Shares and may obtain
information via ISG from other
exchanges that are members of ISG or
with which the Exchange has entered
into a surveillance sharing agreement.
The Exchange or FINRA, on behalf of
the Exchange, or both, will
communicate as needed regarding
trading in the Shares, CME Ether
Futures and CME Bitcoin Futures, or
any other bitcoin or ether derivative
with other markets and other entities
that are members of the ISG, and the
Exchange, or FINRA, on behalf of the
Exchange, or both, may obtain trading
information regarding trading in the
Shares, CME Ether Futures and CME
Bitcoin Futures, or any other ether or
bitcoin derivative from such markets
and other entities.37 The Exchange may
obtain information regarding trading in
the Shares, CME Ether Futures and CME
Bitcoin Futures, or any other ether or
bitcoin derivative via ISG, from other
exchanges who are members or affiliates
of the ISG, or with which the Exchange
has entered into a comprehensive
surveillance sharing agreement.
For the above reasons, the Exchange
believes that the proposed rule change
is consistent with the requirements of
Section 6(b)(5) of the Act.
ddrumheller on DSK120RN23PROD with NOTICES1
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 competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange notes that the proposed rule
change, rather will facilitate the listing
and trading of an additional exchangetraded product that will enhance
competition among both market
participants and listing venues, to the
benefit of investors and the marketplace.
37 For a list of the current members and affiliate
members of ISG, see www.isgportal.com.
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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.
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–
CboeBZX–2024–091 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–CboeBZX–2024–091. 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
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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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–CboeBZX–2024–091 and should be
submitted on or before October 29,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.38
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–23167 Filed 10–7–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101231; File No. SR–IEX–
2024–20]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
11.330 To Adopt a New Market Data
Product To Be Known as DEEP+
October 2, 2024.
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 19, 2024, 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.
38 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 89, No. 195 / Tuesday, October 8, 2024 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Pursuant to the provisions of Section
19(b)(1) under the Act,4 and Rule 19b–
4 thereunder,5 the Exchange with the
Commission a proposed rule change to
amend Rule 11.330 to adopt a new
market data product to be known as
DEEP+, which is an uncompressed data
feed that provides order-by-order depth
of book quotations for all displayed
orders for securities traded on IEX, and
execution information (i.e., last sale
information) for executions on the
Exchange. The Exchange has designated
this proposal as non-controversial and
provided the Commission with the
notice required by Rule 19b–4(f)(6)(iii)
under the Act.6 IEX also proposes to
update its Fee Schedule to reflect that
DEEP+ will be offered free of charge for
an initial incentive period.
The text of the proposed rule change
is available at the Exchange’s website at
www.iextrading.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
The Exchange proposes to amend IEX
Rule 11.330(a) to add a new
subparagraph (3) that describes a new
market data product to be known as
DEEP+, and to renumber the current
subparagraphs (3) and (4) to be
subparagraphs (4) and (5). The Exchange
also proposes to make a conforming edit
to IEX Rule 11.232(f), and to update its
Fee Schedule 7 to reflect that IEX will be
4 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
6 17 CFR 240.19b–4(f)(6)(iii).
7 See IEX Fee Schedule, available at https://
www.iexexchange.io/resources/trading/feeschedule.
5 17
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offering DEEP+ free of charge for an
initial incentive period.
Currently, the Exchange offers two
Real-Time 8 market data products:
TOPS 9, an uncompressed data feed that
provides aggregated top of book
quotations for all displayed orders
resting on the Order Book and execution
information (i.e., last sale information)
for executions on the Exchange; and
DEEP,10 an uncompressed data feed that
provides aggregated depth of book
quotations for all displayed orders
resting on the Order Book at each price
level, and execution information (i.e.,
last sale information) for executions on
the Exchange.11 The TOPS and DEEP
feeds also include IEX’s ‘‘Retail
Liquidity Identifier’’ 12, which is
disseminated by IEX to TOPS, DEEP,
and the appropriate securities
information processor (‘‘SIP’’), when
IEX’s Order Book has at least one round
lot of aggregated Retail Liquidity
Provider 13 order interest (‘‘RLP
Interest’’) 14 for a particular security,
provided that the RLP Interest is resting
at the Midpoint Price 15 and priced at
least $0.001 better than the NBB 16 or
NBO 17. The Retail Liquidity Identifier 18
provides the symbol and side of the RLP
Interest, but does not include its price
or size.19
Based on informal discussion with
market participants, the Exchange has
determined that there is demand for an
order-by-order depth of book feed
offering for displayed orders, in
addition to the aggregated depth of book
data offered by DEEP. Accordingly, the
Exchange proposes to amend Rule
11.330(a)(3) to offer the new DEEP+
market data product.
As proposed, DEEP+ will disseminate,
on a Real-Time basis, order-by-order
information for all displayed orders
resting on the Order Book for securities
traded on IEX and execution
information (i.e., last sale information)
for executions on the Exchange. DEEP+
8 ‘‘Real-Time’’ means IEX market data that is
accessed, used, or distributed less than fifteen (15)
milliseconds after it was made available by the
Exchange. IEX provides only Real-Time IEX market
data to Data Subscribers.
9 See IEX Rule 11.330(a)(1).
10 See IEX Rule 11.330(a)(2).
11 TOPS and DEEP would also provide IEX
Auction Information for any IEX-listed securities.
Currently, IEX is not a listing exchange, and such
information is only provided with respect to
auction test symbols.
12 See IEX Rule 11.232(f).
13 See IEX Rule 11.190(b)(14).
14 See IEX Rule 11.232(f).
15 See IEX Rule 1.160(t).
16 See IEX Rule 1.160(u).
17 See IEX Rule 1.160(u).
18 See IEX Rule 11.232(f).
19 Id.
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will provide details on each displayed
order resting on the Order Book
including OrderID, symbol, side,
timestamp associated with the message,
price, and size, and will update each
order’s data when there are
amendments, cancels, and executions.20
Like TOPS and DEEP, DEEP+ will
also disseminate a Retail Liquidity
Identifier for each security for which
IEX has the requisite RLP Interest.
Therefore, IEX proposes to amend IEX
Rule 11.232(f) to reflect that the Retail
Liquidity Indicator will be disseminated
to DEEP+, in addition to being
disseminated to TOPS, DEEP, and the
SIPs. IEX notes that this order-specific
information, including the disseminated
Retail Liquidity Identifier,21 is
functionally equivalent to the orderspecific information provided by other
exchanges’ order-by-order feeds.22
For an initial incentive period, DEEP+
will be provided free of charge, and Data
Subscribers 23 may redistribute DEEP+
data, whether on a Real-Time or
Delayed 24 basis, free of charge (for an
initial incentive period), subject to the
terms of the IEX Data Subscriber
Agreement and IEX’s Market Data
Policies.25
Additionally, IEX proposes to amend
the Fee Schedule to insert two new rows
in the table of Market Data Fees
reflecting that DEEP+ initially will be
offered for free (on a Real-Time or
20 IEX notes that Data Subscribers will be able to
use DEEP+ to derive IEX’s top of book quotations
for internal use from the order-by-order data, as set
forth in IEX’s Market Data Policies (available at
https://www.iexexchange.io/resources/trading/
market-data).
21 See, e.g., Cboe BYX Rule 11.22(k) (referencing
the inclusion of Cboe BYX’s retail liquidity
identifier in the BYX Summary Depth data feed).
22 For example, Cboe BYX provides an order-byorder depth of book with the equivalent data. See
Cboe US Equities/Options Multicast Depth of Book
(PITCH) Specification, available at https://
cdn.cboe.com/resources/membership/Cboe_US_
Equities_FIX_Specification.pdf.
23 ‘‘Data Subscriber’’ means any natural person or
entity that receives Real-Time IEX market data
either directly from the Exchange or from another
non-affiliate Data Subscriber. A Data Subscriber
must enter into a Data Subscriber Agreement with
IEX in order to receive Real-Time IEX market data.
A natural person or entity that receives Real-Time
IEX market data from an affiliated Data Subscriber
is subject to the Data Subscriber Agreement of such
affiliated Data Subscriber. See IEX Fee Schedule.
24 ‘‘Delayed’’ means IEX market data that is
accessed, used, or distributed at least fifteen (15)
milliseconds after it was made available by the
Exchange. A Data Subscriber may redistribute RealTime IEX market data that it receives from the
Exchange on a Delayed basis to a natural person or
entity. In addition, a recipient of Delayed IEX
market data may further redistribute such Delayed
IEX market data to a natural person or entity. See
IEX Fee Schedule.
25 Available at https://www.iexexchange.io/
resources/trading/market-data.
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Federal Register / Vol. 89, No. 195 / Tuesday, October 8, 2024 / Notices
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Delayed basis).26 IEX also proposes to
delete the two references to footnote 3
in the Market Data Fees table (in the
rows for Real-Time DEEP and TOPS),
and to amend the footnote’s language so
that it is applicable to DEEP+. Footnote
3 currently reads ‘‘These fees will be
operative beginning July 1, 2022,’’
which was the date IEX began charging
to distribute TOPS and DEEP in RealTime. Because that date applied to the
initiation of fees for TOPS and DEEP in
Real-Time (and has passed), IEX
proposes to amend the footnote to apply
to DEEP+ and read: ‘‘These fees will be
operative when the product is launched.
IEX will announce the launch date by
Trader Alert at least 10 business days in
advance of the product launch’’ and to
apply footnote 3 to the two new rows
describing the free distribution of
DEEP+ on both a Real-Time and
Delayed basis.27
The Exchange notes that other
exchanges offer both aggregated and
order-by-order depth of book market
data products. For example, Cboe BYX
offers both Multicast Depth 28 (also
known as BYX Depth), an order-byorder depth of book market data feed,
and BYX Summary Depth,29 a depth of
book data feed that offers aggregated
quotations for all displayed orders for
up to five price levels. Cboe BYX’s
order-by-order depth of book market
data feed contains the same orderspecific information that will be
contained in IEX’s proposed DEEP+
market data feed.30 Thus, the Exchange
does not believe that this aspect of the
proposal raises any new or novel issues
not already considered by the
Commission.31 The Exchange plans to
implement the proposed changes during
the fourth quarter of 2024, pending
completion of necessary technology
changes and subject to effectiveness of
this proposed rule change. The
Exchange will announce the
implementation date of the proposed
changes by Trader Alert at least 10
business days in advance of such
26 Should IEX in the future decide to charge for
DEEP+, it will make a fee filing pursuant to the SEC
rule filing process.
27 While not specified in the Fee Schedule, as
noted throughout this filing, IEX will be offering
DEEP+ free of charge during an initial incentive
period.
28 See Cboe BYX Rule 11.22(c).
29 See Cboe BYX Rule 11.22(k).
30 See supra note 22.
31 DEEP+ Data Subscribers will also have access
to the DEEP+ SNAP service, which allows Data
Subscribers to download point-in-time snapshots of
DEEP+ in order to enable them to accelerate late
start recovery. As with its current DEEP SNAP and
TOPS SNAP services, DEEP+ SNAP will be offered
for no additional charge to DEEP+ Data Subscribers;
thus, DEEP+ SNAP will also be offered free of
charge during the initial incentive period.
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implementation date and within 120
days of effectiveness of this proposed
rule change.
2. Statutory Basis
IEX believes that the proposed rule
change is consistent with the provisions
of Section 6 of the Act 32 in general, and
with Section 6(b)(5) of the Act,33 in
particular. DEEP+ will be provided
consistent with the purposes of Section
6(b)(5) of the Act.34 Specifically, the
Exchange believes that the proposed
introduction of an order-by-order depth
of book market data feed, which will
provide Data Subscribers with full
depth-of-market information, will serve
to more closely align the information
provided by IEX with that of competitor
exchanges, while providing additional
data to the marketplace. Thus, this
proposal should help remove
impediments to a free and open market,
in furtherance of the protection of
investors and the public interest.
Additionally, the benefit of providing
additional data to the marketplace may
be useful to certain market participants
with trading strategies that take into
account order-by-order depth of book
feeds such as DEEP+. Thus, these
Members may choose to deploy
additional trading strategies on IEX that
align with how they function on other
exchanges. IEX believes that this
potential deployment of additional
trading strategies on IEX by certain
market participants could attract
additional volume to IEX (both
displayed and non-displayed), which
would benefit all market participants.
Thus, this proposal should help remove
impediments to a free and open market,
in furtherance of the protection of
investors and the public interest.
Moreover, DEEP+ will be available to
all Data Subscribers on an equal basis
including being offered free of charge to
all Data Subscribers on an initial basis.
By expanding all market participants’
access to Real-Time market data
disseminated from IEX’s displayed
Order Book, the proposal is not
designed to permit unfair
discrimination among customers,
issuers, and brokers; and is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
32 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
34 15 U.S.C. 78f(b)(5).
The proposed rule change is designed
to promote just and equitable principles
of trade and remove impediments to and
perfect the mechanism of a free and
open market and a national market
system by providing more detailed
quotation and transaction information to
market participants. The Exchange also
believes this proposal is consistent with
Section 6(b)(5) of the Act because it is
designed to protect investors and the
public interest and promote just and
equitable principles of trade by
providing additional transparency
regarding displayed orders on the IEX
Order Book, and also provides market
participants with a disaggregated feed
that allows them to construct the IEX
BBO information otherwise than under
the CTA and Nasdaq/UTP Plans.
Further, the proposal would not permit
unfair discrimination because the
information will be available to all
market participants and market data
vendors on an equivalent basis. In
addition, any market participant that
wishes to receive IEX BBO and last sale
information via the CTA and Nasdaq/
UTP Plans will still be able to do so if
they subscribe or access through a Data
Subscriber.
The Exchange also believes that not
charging a fee for DEEP+ for an initial
incentive period (whether accessed on a
Real-Time or Delayed basis) is
appropriate, reasonable, and consistent
with the Act because it is designed to
incentivize market participants to
subscribe to DEEP+, which may in turn
encourage those same market
participants to direct more order flow to
the Exchange as discussed above, and
such orders will have the benefit of
exchange transparency, regulation, and
oversight. IEX operates in a highly
competitive environment, and not
charging fees for DEEP+ is designed to
enable it to compete effectively and to
encourage market participants to
connect to the Exchange.
The Exchange also believes that the
proposed rule change is consistent with
Section 11(A) of the Act 35 in that it
supports (1) fair competition among
brokers and dealers, among exchange
markets, and between exchange markets
and markets other than exchange
markets and (2) the availability to
brokers, dealers, and investors of
information with respect to quotations
for and transactions in securities. As
noted above, the Exchange will provide
DEEP+ to Members and other recipients
of Exchange data on terms that are fair
and reasonable and not unreasonably
discriminatory in that DEEP+ will be
33 15
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ddrumheller on DSK120RN23PROD with NOTICES1
provided free of charge for an initial
incentive period.
Additionally, IEX believes that the
proposed rule change is consistent with
the provisions with Section 6(b)(5) of
the Act because DEEP+ would be
accessed and subscribed to on a
voluntary basis, in that neither the
Exchange nor market data distributors
are required by any rule or regulation to
make this data available. Accordingly,
distributors and subscribers can
discontinue their use at any time and for
any reason. Thus, the proposal should
help remove impediments to a free and
open market, in furtherance of the
protection of investors and the public
interest.
Further, IEX believes that the
proposed edits to the Fee Schedule are
consistent with the Act. Specifically, the
proposal to update the Fee Schedule to
state that DEEP+ will be offered for
free,36 and to revise footnote 3 to make
clear that the fee’s (and product’s)
implementation date will be on a date
to be announced by Trading Alert at
least ten (10) business days in advance
of the product launch are consistent
with the Act because they will provide
clarity to, and reduce confusion of,
market participants about the cost and
availability of this new market data
product, which should help remove
impediments to a free and open market,
in furtherance of the protection of
investors and the public interest.
Finally, as noted in the Purpose
section, offering both an order-by-order
and aggregated depth of book market
data product is consistent with the
offerings of other exchanges.
Specifically, as discussed in the Purpose
section, Cboe BYX’s order-by-order
market data feed contains the same
order-specific information that IEX will
provide in DEEP+.37 And Cboe BYX’s
order-by-order also contains the same
non-order-specific information such as
the Retail Liquidity Identifier, which
DEEP+ will also contain.38 Thus IEX
believes it does not raise any new or
novel issues not already considered by
the Commission in the context of other
exchanges’ market data product filings.
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
36 While not specified in the Fee Schedule, as
noted throughout this filing, IEX will be offering
DEEP+ free of charge during an initial incentive
period.
37 See supra note 21.
38 See supra note 22.
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Exchange is not proposing to charge a
fee for DEEP+ during an initial incentive
period and will make it available to
market participants on a fair and
impartial basis, and on terms that are
not unfairly discriminatory. In addition,
the Exchange believes that providing
order-by-order depth of book quotations
as described above is designed to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system by
providing investors with a new
exchange-specific source of market data,
as well as to compete with other
exchanges that offer similar market data
products.
With regard to intra-market
competition, the proposed order-byorder depth of book market data feed
will be made equally available to all
Members and Data Subscribers on a fair,
impartial and nondiscriminatory basis
without imposing any new burdens on
the Members and Data Subscribers,
including the fact that it will be offered
free of charge during an initial incentive
period. As discussed in the Purpose and
Statutory Basis sections, the proposed
rule change is designed to provide all
market participants more transparency
into the order-by-order composition of
IEX’s Order Book.
With regard to inter-market
competition, other exchanges are free to
adopt similar market data product
offerings, and, as discussed in the
Purpose section, other exchanges like
Cboe BYX already provide market
participants the option of subscribing to
an aggregated or order-by-order depth of
book feed (or both). IEX’s proposed
DEEP+ feed will foster, not burden,
competition by providing a new
exchange-specific source of market data,
which is similar to products offered by
other exchanges. Thus, it will provide
investors with a new option for
receiving market data. Thus, the
Exchange believes the proposed rule
change is consistent with the Exchange
Act because it will further encourage
competition between IEX and other
exchanges.
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
does not:
(i) significantly affect the protection of
investors or the public interest;
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81611
(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 and Rule 19b–4(f)(6) thereunder.39
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) 40 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–2024–20 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–2024–20. 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
39 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) 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.
40 15 U.S.C. 78s(b)(2)(B).
E:\FR\FM\08OCN1.SGM
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Federal Register / Vol. 89, No. 195 / Tuesday, October 8, 2024 / Notices
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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–IEX–2024–20 and should be
submitted on or before October 29,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.41
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–23166 Filed 10–7–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–523, OMB Control No.
3235–0585]
ddrumheller on DSK120RN23PROD with NOTICES1
Submission for OMB Review;
Comment Request; Extension: Rule
206(4)–7
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (the
‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
The title for the collection of
information is ‘‘Investment Advisers Act
rule 206(4)–7, 17 CFR 275.206(4)–7,
Compliance procedures and practices.’’
This collection of information is found
at 17 CFR 275.206(4)–7, and is
mandatory. Rule 206(4)–7 under the
41 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:23 Oct 07, 2024
Jkt 265001
Investment Advisers Act of 1940
(‘‘Advisers Act’’) requires each
investment adviser registered with the
Commission to (1) adopt and implement
written policies and procedures
reasonably designed to prevent
violations of the Advisers Act and its
rules, (2) review those compliance
policies and procedures annually, and
(3) designate a chief compliance officer
who is responsible for administering the
compliance policies and procedures.
The rule is designed to protect investors
by fostering better compliance with the
securities laws. The collection of
information under rule 206(4)–7 is
necessary to help ensure that
investment advisers maintain
comprehensive internal programs that
promote the advisers’ compliance with
the Advisers Act and its rules. The
Commission’s examination and
oversight staff may review the
information collected to assess
investment advisers’ compliance
programs. Responses provided to the
Commission pursuant to the rule in the
context of the Commission’s
examination and oversight program are
generally kept confidential. An agency
may not conduct or sponsor, and a
person is not required to respond to, a
collection of information unless it
displays a currently valid control
number.
The respondents to this information
collection are investment advisers
registered with the Commission.
Updated data indicate that there were
15,441 advisers registered with the
Commission as of December 31, 2023.
Each respondent would produce one
response, per year. Commission staff has
estimated that compliance with rule
206(4)–7 imposes an annual burden of
approximately 90 hours per response.
Based on this figure, Commission staff
estimates a total annual burden of
1,389,690 hours for this collection of
information.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice by November 7, 2024 to (i)
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov and (ii) Austin Gerig,
Director/Chief Data Officer, Securities
and Exchange Commission, c/o
Oluwaseun Ajayi, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
PO 00000
Frm 00196
Fmt 4703
Sfmt 4703
Dated: October 2, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–23161 Filed 10–7–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–462, OMB Control No.
3235–0696]
Proposed Collection; Comment
Request; Extension: Rules 15Fb1–1
through 15Fb6–2 and Forms SBSE,
SBSE–A, SBSE–BD, SBSE–C and
SBSE–W
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.) the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rules 15Fb1–1 through
15Fb6–2 and Forms SBSE, SBSE–A,
SBSE–BD, SBSE–C and SBSE–W (17
CFR 240.15Fb1–1 through 240.15Fb6–2,
and 17 CFR 249.1600, 249.1600a,
249.1600b, 249.1600c and 249.1601),
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
The Commission adopted Rules
15Fb1–1 through 15Fb6–2 and Forms
SBSE, SBSE–A, SBSE–BD, SBSE–C and
SBSE–W on August 5, 2015 to create a
process to register SBS Entities. Forms
SBSE, SBSE–A, and SBSE–BD and
SBSE–C were designed to elicit certain
information from applicants. The
Commission uses the information
disclosed by applicants through the SBS
Entity registration rules and forms to: (1)
determine whether an applicant meets
the standards for registration set forth in
the provisions of the Exchange Act; and
(2) develop an information resource
regarding SBS Entities where members
of the public may obtain relevant, up-todate information about SBS Entities,
and where the Commission may obtain
information for examination and
enforcement purposes. Without the
information provided through these SBS
Entity registration rules and forms, the
Commission could not effectively
determine whether the applicant meets
the standards for registration or
implement policy objectives of the
Exchange Act.
E:\FR\FM\08OCN1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 195 (Tuesday, October 8, 2024)]
[Notices]
[Pages 81608-81612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23166]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101231; File No. SR-IEX-2024-20]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 11.330 To Adopt a New Market Data Product To Be Known as DEEP+
October 2, 2024.
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 19, 2024, 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.
---------------------------------------------------------------------------
[[Page 81609]]
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\ the Exchange with the Commission a
proposed rule change to amend Rule 11.330 to adopt a new market data
product to be known as DEEP+, which is an uncompressed data feed that
provides order-by-order depth of book quotations for all displayed
orders for securities traded on IEX, and execution information (i.e.,
last sale information) for executions on the Exchange. The Exchange has
designated this proposal as non-controversial and provided the
Commission with the notice required by Rule 19b-4(f)(6)(iii) under the
Act.\6\ IEX also proposes to update its Fee Schedule to reflect that
DEEP+ will be offered free of charge for an initial incentive period.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The text of the proposed rule change is available at the Exchange's
website at www.iextrading.com, at the principal office of the Exchange,
and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend IEX Rule 11.330(a) to add a new
subparagraph (3) that describes a new market data product to be known
as DEEP+, and to renumber the current subparagraphs (3) and (4) to be
subparagraphs (4) and (5). The Exchange also proposes to make a
conforming edit to IEX Rule 11.232(f), and to update its Fee Schedule
\7\ to reflect that IEX will be offering DEEP+ free of charge for an
initial incentive period.
---------------------------------------------------------------------------
\7\ See IEX Fee Schedule, available at https://www.iexexchange.io/resources/trading/fee-schedule.
---------------------------------------------------------------------------
Currently, the Exchange offers two Real-Time \8\ market data
products: TOPS \9\, an uncompressed data feed that provides aggregated
top of book quotations for all displayed orders resting on the Order
Book and execution information (i.e., last sale information) for
executions on the Exchange; and DEEP,\10\ an uncompressed data feed
that provides aggregated depth of book quotations for all displayed
orders resting on the Order Book at each price level, and execution
information (i.e., last sale information) for executions on the
Exchange.\11\ The TOPS and DEEP feeds also include IEX's ``Retail
Liquidity Identifier'' \12\, which is disseminated by IEX to TOPS,
DEEP, and the appropriate securities information processor (``SIP''),
when IEX's Order Book has at least one round lot of aggregated Retail
Liquidity Provider \13\ order interest (``RLP Interest'') \14\ for a
particular security, provided that the RLP Interest is resting at the
Midpoint Price \15\ and priced at least $0.001 better than the NBB \16\
or NBO \17\. The Retail Liquidity Identifier \18\ provides the symbol
and side of the RLP Interest, but does not include its price or
size.\19\
---------------------------------------------------------------------------
\8\ ``Real-Time'' means IEX market data that is accessed, used,
or distributed less than fifteen (15) milliseconds after it was made
available by the Exchange. IEX provides only Real-Time IEX market
data to Data Subscribers.
\9\ See IEX Rule 11.330(a)(1).
\10\ See IEX Rule 11.330(a)(2).
\11\ TOPS and DEEP would also provide IEX Auction Information
for any IEX-listed securities. Currently, IEX is not a listing
exchange, and such information is only provided with respect to
auction test symbols.
\12\ See IEX Rule 11.232(f).
\13\ See IEX Rule 11.190(b)(14).
\14\ See IEX Rule 11.232(f).
\15\ See IEX Rule 1.160(t).
\16\ See IEX Rule 1.160(u).
\17\ See IEX Rule 1.160(u).
\18\ See IEX Rule 11.232(f).
\19\ Id.
---------------------------------------------------------------------------
Based on informal discussion with market participants, the Exchange
has determined that there is demand for an order-by-order depth of book
feed offering for displayed orders, in addition to the aggregated depth
of book data offered by DEEP. Accordingly, the Exchange proposes to
amend Rule 11.330(a)(3) to offer the new DEEP+ market data product.
As proposed, DEEP+ will disseminate, on a Real-Time basis, order-
by-order information for all displayed orders resting on the Order Book
for securities traded on IEX and execution information (i.e., last sale
information) for executions on the Exchange. DEEP+ will provide details
on each displayed order resting on the Order Book including OrderID,
symbol, side, timestamp associated with the message, price, and size,
and will update each order's data when there are amendments, cancels,
and executions.\20\
---------------------------------------------------------------------------
\20\ IEX notes that Data Subscribers will be able to use DEEP+
to derive IEX's top of book quotations for internal use from the
order-by-order data, as set forth in IEX's Market Data Policies
(available at https://www.iexexchange.io/resources/trading/market-data).
---------------------------------------------------------------------------
Like TOPS and DEEP, DEEP+ will also disseminate a Retail Liquidity
Identifier for each security for which IEX has the requisite RLP
Interest. Therefore, IEX proposes to amend IEX Rule 11.232(f) to
reflect that the Retail Liquidity Indicator will be disseminated to
DEEP+, in addition to being disseminated to TOPS, DEEP, and the SIPs.
IEX notes that this order-specific information, including the
disseminated Retail Liquidity Identifier,\21\ is functionally
equivalent to the order-specific information provided by other
exchanges' order-by-order feeds.\22\
---------------------------------------------------------------------------
\21\ See, e.g., Cboe BYX Rule 11.22(k) (referencing the
inclusion of Cboe BYX's retail liquidity identifier in the BYX
Summary Depth data feed).
\22\ For example, Cboe BYX provides an order-by-order depth of
book with the equivalent data. See Cboe US Equities/Options
Multicast Depth of Book (PITCH) Specification, available at https://cdn.cboe.com/resources/membership/Cboe_US_Equities_FIX_Specification.pdf.
---------------------------------------------------------------------------
For an initial incentive period, DEEP+ will be provided free of
charge, and Data Subscribers \23\ may redistribute DEEP+ data, whether
on a Real-Time or Delayed \24\ basis, free of charge (for an initial
incentive period), subject to the terms of the IEX Data Subscriber
Agreement and IEX's Market Data Policies.\25\
---------------------------------------------------------------------------
\23\ ``Data Subscriber'' means any natural person or entity that
receives Real-Time IEX market data either directly from the Exchange
or from another non-affiliate Data Subscriber. A Data Subscriber
must enter into a Data Subscriber Agreement with IEX in order to
receive Real-Time IEX market data. A natural person or entity that
receives Real-Time IEX market data from an affiliated Data
Subscriber is subject to the Data Subscriber Agreement of such
affiliated Data Subscriber. See IEX Fee Schedule.
\24\ ``Delayed'' means IEX market data that is accessed, used,
or distributed at least fifteen (15) milliseconds after it was made
available by the Exchange. A Data Subscriber may redistribute Real-
Time IEX market data that it receives from the Exchange on a Delayed
basis to a natural person or entity. In addition, a recipient of
Delayed IEX market data may further redistribute such Delayed IEX
market data to a natural person or entity. See IEX Fee Schedule.
\25\ Available at https://www.iexexchange.io/resources/trading/market-data.
---------------------------------------------------------------------------
Additionally, IEX proposes to amend the Fee Schedule to insert two
new rows in the table of Market Data Fees reflecting that DEEP+
initially will be offered for free (on a Real-Time or
[[Page 81610]]
Delayed basis).\26\ IEX also proposes to delete the two references to
footnote 3 in the Market Data Fees table (in the rows for Real-Time
DEEP and TOPS), and to amend the footnote's language so that it is
applicable to DEEP+. Footnote 3 currently reads ``These fees will be
operative beginning July 1, 2022,'' which was the date IEX began
charging to distribute TOPS and DEEP in Real-Time. Because that date
applied to the initiation of fees for TOPS and DEEP in Real-Time (and
has passed), IEX proposes to amend the footnote to apply to DEEP+ and
read: ``These fees will be operative when the product is launched. IEX
will announce the launch date by Trader Alert at least 10 business days
in advance of the product launch'' and to apply footnote 3 to the two
new rows describing the free distribution of DEEP+ on both a Real-Time
and Delayed basis.\27\
---------------------------------------------------------------------------
\26\ Should IEX in the future decide to charge for DEEP+, it
will make a fee filing pursuant to the SEC rule filing process.
\27\ While not specified in the Fee Schedule, as noted
throughout this filing, IEX will be offering DEEP+ free of charge
during an initial incentive period.
---------------------------------------------------------------------------
The Exchange notes that other exchanges offer both aggregated and
order-by-order depth of book market data products. For example, Cboe
BYX offers both Multicast Depth \28\ (also known as BYX Depth), an
order-by-order depth of book market data feed, and BYX Summary
Depth,\29\ a depth of book data feed that offers aggregated quotations
for all displayed orders for up to five price levels. Cboe BYX's order-
by-order depth of book market data feed contains the same order-
specific information that will be contained in IEX's proposed DEEP+
market data feed.\30\ Thus, the Exchange does not believe that this
aspect of the proposal raises any new or novel issues not already
considered by the Commission.\31\ The Exchange plans to implement the
proposed changes during the fourth quarter of 2024, pending completion
of necessary technology changes and subject to effectiveness of this
proposed rule change. The Exchange will announce the implementation
date of the proposed changes by Trader Alert at least 10 business days
in advance of such implementation date and within 120 days of
effectiveness of this proposed rule change.
---------------------------------------------------------------------------
\28\ See Cboe BYX Rule 11.22(c).
\29\ See Cboe BYX Rule 11.22(k).
\30\ See supra note 22.
\31\ DEEP+ Data Subscribers will also have access to the DEEP+
SNAP service, which allows Data Subscribers to download point-in-
time snapshots of DEEP+ in order to enable them to accelerate late
start recovery. As with its current DEEP SNAP and TOPS SNAP
services, DEEP+ SNAP will be offered for no additional charge to
DEEP+ Data Subscribers; thus, DEEP+ SNAP will also be offered free
of charge during the initial incentive period.
---------------------------------------------------------------------------
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6 of the Act \32\ in general, and with Section
6(b)(5) of the Act,\33\ in particular. DEEP+ will be provided
consistent with the purposes of Section 6(b)(5) of the Act.\34\
Specifically, the Exchange believes that the proposed introduction of
an order-by-order depth of book market data feed, which will provide
Data Subscribers with full depth-of-market information, will serve to
more closely align the information provided by IEX with that of
competitor exchanges, while providing additional data to the
marketplace. Thus, this proposal should help remove impediments to a
free and open market, in furtherance of the protection of investors and
the public interest.
---------------------------------------------------------------------------
\32\ 15 U.S.C. 78f(b).
\33\ 15 U.S.C. 78f(b)(5).
\34\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Additionally, the benefit of providing additional data to the
marketplace may be useful to certain market participants with trading
strategies that take into account order-by-order depth of book feeds
such as DEEP+. Thus, these Members may choose to deploy additional
trading strategies on IEX that align with how they function on other
exchanges. IEX believes that this potential deployment of additional
trading strategies on IEX by certain market participants could attract
additional volume to IEX (both displayed and non-displayed), which
would benefit all market participants. Thus, this proposal should help
remove impediments to a free and open market, in furtherance of the
protection of investors and the public interest.
Moreover, DEEP+ will be available to all Data Subscribers on an
equal basis including being offered free of charge to all Data
Subscribers on an initial basis. By expanding all market participants'
access to Real-Time market data disseminated from IEX's displayed Order
Book, the proposal is not designed to permit unfair discrimination
among customers, issuers, and brokers; and is designed to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
The proposed rule change is designed to promote just and equitable
principles of trade and remove impediments to and perfect the mechanism
of a free and open market and a national market system by providing
more detailed quotation and transaction information to market
participants. The Exchange also believes this proposal is consistent
with Section 6(b)(5) of the Act because it is designed to protect
investors and the public interest and promote just and equitable
principles of trade by providing additional transparency regarding
displayed orders on the IEX Order Book, and also provides market
participants with a disaggregated feed that allows them to construct
the IEX BBO information otherwise than under the CTA and Nasdaq/UTP
Plans. Further, the proposal would not permit unfair discrimination
because the information will be available to all market participants
and market data vendors on an equivalent basis. In addition, any market
participant that wishes to receive IEX BBO and last sale information
via the CTA and Nasdaq/UTP Plans will still be able to do so if they
subscribe or access through a Data Subscriber.
The Exchange also believes that not charging a fee for DEEP+ for an
initial incentive period (whether accessed on a Real-Time or Delayed
basis) is appropriate, reasonable, and consistent with the Act because
it is designed to incentivize market participants to subscribe to
DEEP+, which may in turn encourage those same market participants to
direct more order flow to the Exchange as discussed above, and such
orders will have the benefit of exchange transparency, regulation, and
oversight. IEX operates in a highly competitive environment, and not
charging fees for DEEP+ is designed to enable it to compete effectively
and to encourage market participants to connect to the Exchange.
The Exchange also believes that the proposed rule change is
consistent with Section 11(A) of the Act \35\ in that it supports (1)
fair competition among brokers and dealers, among exchange markets, and
between exchange markets and markets other than exchange markets and
(2) the availability to brokers, dealers, and investors of information
with respect to quotations for and transactions in securities. As noted
above, the Exchange will provide DEEP+ to Members and other recipients
of Exchange data on terms that are fair and reasonable and not
unreasonably discriminatory in that DEEP+ will be
[[Page 81611]]
provided free of charge for an initial incentive period.
---------------------------------------------------------------------------
\35\ 15 U.S.C. 78k-1.
---------------------------------------------------------------------------
Additionally, IEX believes that the proposed rule change is
consistent with the provisions with Section 6(b)(5) of the Act because
DEEP+ would be accessed and subscribed to on a voluntary basis, in that
neither the Exchange nor market data distributors are required by any
rule or regulation to make this data available. Accordingly,
distributors and subscribers can discontinue their use at any time and
for any reason. Thus, the proposal should help remove impediments to a
free and open market, in furtherance of the protection of investors and
the public interest.
Further, IEX believes that the proposed edits to the Fee Schedule
are consistent with the Act. Specifically, the proposal to update the
Fee Schedule to state that DEEP+ will be offered for free,\36\ and to
revise footnote 3 to make clear that the fee's (and product's)
implementation date will be on a date to be announced by Trading Alert
at least ten (10) business days in advance of the product launch are
consistent with the Act because they will provide clarity to, and
reduce confusion of, market participants about the cost and
availability of this new market data product, which should help remove
impediments to a free and open market, in furtherance of the protection
of investors and the public interest.
---------------------------------------------------------------------------
\36\ While not specified in the Fee Schedule, as noted
throughout this filing, IEX will be offering DEEP+ free of charge
during an initial incentive period.
---------------------------------------------------------------------------
Finally, as noted in the Purpose section, offering both an order-
by-order and aggregated depth of book market data product is consistent
with the offerings of other exchanges. Specifically, as discussed in
the Purpose section, Cboe BYX's order-by-order market data feed
contains the same order-specific information that IEX will provide in
DEEP+.\37\ And Cboe BYX's order-by-order also contains the same non-
order-specific information such as the Retail Liquidity Identifier,
which DEEP+ will also contain.\38\ Thus IEX believes it does not raise
any new or novel issues not already considered by the Commission in the
context of other exchanges' market data product filings.
---------------------------------------------------------------------------
\37\ See supra note 21.
\38\ See supra note 22.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange is not proposing
to charge a fee for DEEP+ during an initial incentive period and will
make it available to market participants on a fair and impartial basis,
and on terms that are not unfairly discriminatory. In addition, the
Exchange believes that providing order-by-order depth of book
quotations as described above is designed to remove impediments to and
perfect the mechanism of a free and open market and a national market
system by providing investors with a new exchange-specific source of
market data, as well as to compete with other exchanges that offer
similar market data products.
With regard to intra-market competition, the proposed order-by-
order depth of book market data feed will be made equally available to
all Members and Data Subscribers on a fair, impartial and
nondiscriminatory basis without imposing any new burdens on the Members
and Data Subscribers, including the fact that it will be offered free
of charge during an initial incentive period. As discussed in the
Purpose and Statutory Basis sections, the proposed rule change is
designed to provide all market participants more transparency into the
order-by-order composition of IEX's Order Book.
With regard to inter-market competition, other exchanges are free
to adopt similar market data product offerings, and, as discussed in
the Purpose section, other exchanges like Cboe BYX already provide
market participants the option of subscribing to an aggregated or
order-by-order depth of book feed (or both). IEX's proposed DEEP+ feed
will foster, not burden, competition by providing a new exchange-
specific source of market data, which is similar to products offered by
other exchanges. Thus, it will provide investors with a new option for
receiving market data. Thus, the Exchange believes the proposed rule
change is consistent with the Exchange Act because it will further
encourage competition between IEX and other exchanges.
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 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 and Rule
19b-4(f)(6) thereunder.\39\
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\39\ CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 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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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) \40\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\40\ 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-2024-20 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-2024-20. 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
[[Page 81612]]
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 a.m. and 3
p.m. Copies of the filing also will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-IEX-2024-20 and should be submitted on
or before October 29, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\41\
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\41\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-23166 Filed 10-7-24; 8:45 am]
BILLING CODE 8011-01-P
