80 FR 57261 - Investors' Exchange, LLC; Notice of Filing of Application, as Amended, for Registration as a National Securities Exchange Under Section 6 of the Securities Exchange Act of 1934
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 183 (September 22, 2015)
Federal Register Volume 80, Issue 183 (September 22, 2015)
| Page Range | 57261-57262 | |
| FR Document | 2015-23972 |
[Federal Register Volume 80, Number 183 (Tuesday, September 22, 2015)] [Notices] [Pages 57261-57262] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-23972] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75925; File No. 10-222] Investors' Exchange, LLC; Notice of Filing of Application, as Amended, for Registration as a National Securities Exchange Under Section 6 of the Securities Exchange Act of 1934 September 15, 2015. On August 21, 2015, Investors' Exchange, LLC (``IEX'') submitted to the Securities and Exchange Commission (``Commission'') a Form 1 application under the Securities Exchange Act of 1934 (``Exchange Act''), seeking registration as a national securities exchange under Section 6 of the Exchange Act.\1\ On September 9, 2015, IEX submitted Amendment No. 1 to its Form 1 application.\2\ IEX's Form 1 application, as amended, provides detailed information on how it proposes to satisfy the requirements of the Exchange Act. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(f). \2\ In Amendment No. 1, IEX submitted updated portions of its Form 1 application, including revised exhibits, a revised version of the proposed IEX Rule Book, and revised Addenda C-2, C-3, C-4, D-1, D-2, F-1, F-2, F-3, F-4, F-5, F-6, F-7, F-8, F-9, F-10, F-11, F-12, F-13. --------------------------------------------------------------------------- The Commission is publishing this notice to solicit comments on IEX's Form 1 application, as amended. The Commission will take any comments it receives into consideration in making its determination about whether to grant IEX's request to register as a national securities exchange. The Commission will grant the registration if it finds that the requirements of the Exchange Act and the rules and regulations thereunder with respect to IEX are satisfied.\3\ --------------------------------------------------------------------------- \3\ See 15 U.S.C. 78s(a). Alternatively, if the Commission does not grant the registration, it will institute proceedings to determine whether registration should be approved or denied. See 15 U.S.C. 78s(a)(1)(B). --------------------------------------------------------------------------- IEX currently operates an alternative trading system (``ATS'') for the trading of equity securities. If the Commission approves IEX's application to become a national securities exchange, IEX would transition trading in each symbol to the exchange and ultimately close its ATS. IEX would operate a fully automated electronic book for orders to buy or sell securities with a continuous, automated matching function. IEX would not have a physical trading floor. Liquidity would be derived from orders to buy and orders to sell submitted to IEX electronically by its registered broker-dealer members from remote locations, as well as from quotes submitted electronically by members that chose to register under IEX rules as market makers on IEX and be subject to certain specified requirements and obligations. One notable feature of IEX's proposed trading rules is the proposed ``Midpoint Price Constraint'' price sliding process for non-displayed orders, which would prevent non-displayed limit orders from posting at a price more aggressive than the midpoint of the national best bid and offer.\4\ In addition, IEX is proposing a discretionary peg order type, which, if unexecuted upon entry, would post non-displayed and would exercise discretion only when IEX does not consider that the national best bid or national best offer for a particular security is in the process of changing based on a pre-determined set of conditions described in IEX's proposed rule.\5\ --------------------------------------------------------------------------- \4\ See proposed IEX Rule 11.190(h)(2). See also Exhibit E to IEX's Form 1 submission, at 17. Specifically, a non-displayed order on IEX with a limit price more aggressive than the midpoint of the NBBO would be priced at the midpoint, and the price would automatically be adjusted in response to changes in the NBBO to be equal to the less aggressive of the order's limit price or the midpoint of the NBBO. See also proposed IEX Rule 11.230(a)(4)(D) (concerning the ``Book Recheck'' functionality), and Exhibit E to IEX's Form 1 submission, at 19 (describing the ``Book Recheck'' functionality). \5\ See proposed IEX Rule 11.190(b)(10) (concerning the discretionary peg order type) and 11.190(g) (concerning quote stability). See also Exhibit E to IEX's Form 1 submission, at 14-15. --------------------------------------------------------------------------- IEX would be wholly owned by its parent company, IEX Group, Inc. (``IEXG''), which would appoint IEX's initial Board of Directors. If approved by the Commission, within 90 days after the date of its approval to operate as a national securities exchange, IEX would undertake a petition process by which members could elect Member Representative Directors to the Board, as specified in the proposed Amended and Restated Operating Agreement of IEX.\6\ --------------------------------------------------------------------------- \6\ See IEX Amended and Restated Operating Agreement Article III, Section 4(g). See also Exhibit J to IEX's Form 1 submission, at 37. --------------------------------------------------------------------------- A description of the manner of operation of IEX's proposed system can be found in Exhibit E to IEX's Form 1 application. The proposed rulebook for the proposed IEX exchange can be found in Exhibit B to IEX's Form 1 application, and the governing documents for both IEX and IEXG can be found in Exhibits A and C, respectively. A listing of the officers and directors of IEX can be found in Exhibit J to IEX's Form 1 application. IEX's Form 1 application, as amended, including all of the Exhibits referenced above, is available online at www.sec.gov/rules/other.shtml as well as at the Commission's Public Reference Room. Interested persons are invited to submit written data, views, and arguments concerning IEX's Form 1, as amended, including whether the application is consistent with the Exchange Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number 10-222 on the subject line. [[Page 57262]] Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number 10-222. 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 Web site (http://www.sec.gov/rules/other.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to IEX's Form 1 filed with the Commission, and all written communications relating to the application 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 Web site 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. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make publicly available. All submissions should refer to File Number 10-222 and should be submitted on or before November 6, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(71)(i). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-23972 Filed 9-21-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 183 / Tuesday, September 22, 2015 / Notices 57261
and Exchange Commission, 100 F Street 1934 (‘‘Exchange Act’’), seeking a discretionary peg order type, which, if
NE., Washington, DC 20549–1090. registration as a national securities unexecuted upon entry, would post
All submissions should refer to File exchange under Section 6 of the non-displayed and would exercise
Number SR–NYSEArca-2015–73. This Exchange Act.1 On September 9, 2015, discretion only when IEX does not
file number should be included on the IEX submitted Amendment No. 1 to its consider that the national best bid or
subject line if email is used. To help the Form 1 application.2 IEX’s Form 1 national best offer for a particular
Commission process and review your application, as amended, provides security is in the process of changing
comments more efficiently, please use detailed information on how it proposes based on a pre-determined set of
only one method. The Commission will to satisfy the requirements of the conditions described in IEX’s proposed
post all comments on the Commission’s Exchange Act. rule.5
Internet Web site (http://www.sec.gov/ The Commission is publishing this IEX would be wholly owned by its
rules/sro.shtml). Copies of the notice to solicit comments on IEX’s parent company, IEX Group, Inc.
submission, all subsequent Form 1 application, as amended. The (‘‘IEXG’’), which would appoint IEX’s
amendments, all written statements Commission will take any comments it initial Board of Directors. If approved by
with respect to the proposed rule receives into consideration in making its the Commission, within 90 days after
change that are filed with the determination about whether to grant the date of its approval to operate as a
Commission, and all written IEX’s request to register as a national national securities exchange, IEX would
communications relating to the securities exchange. The Commission undertake a petition process by which
proposed rule change between the will grant the registration if it finds that members could elect Member
Commission and any person, other than the requirements of the Exchange Act Representative Directors to the Board, as
those that may be withheld from the and the rules and regulations specified in the proposed Amended and
public in accordance with the thereunder with respect to IEX are Restated Operating Agreement of IEX.6
provisions of 5 U.S.C. 552, will be satisfied.3
A description of the manner of
IEX currently operates an alternative
available for Web site viewing and operation of IEX’s proposed system can
trading system (‘‘ATS’’) for the trading
printing in the Commission’s Public be found in Exhibit E to IEX’s Form 1
of equity securities. If the Commission
Reference Section, 100 F Street NE., application. The proposed rulebook for
approves IEX’s application to become a
Washington, DC 20549 on official the proposed IEX exchange can be
national securities exchange, IEX would
business days between 10 a.m. and 3 found in Exhibit B to IEX’s Form 1
transition trading in each symbol to the
p.m. Copies of the filing will also be application, and the governing
exchange and ultimately close its ATS.
available for inspection and copying at documents for both IEX and IEXG can
IEX would operate a fully automated
the principal office of the Exchange. All be found in Exhibits A and C,
electronic book for orders to buy or sell
comments received will be posted respectively. A listing of the officers and
securities with a continuous, automated
without change; the Commission does directors of IEX can be found in Exhibit
matching function. IEX would not have
not edit personal identifying J to IEX’s Form 1 application. IEX’s
a physical trading floor. Liquidity
information from submissions. You Form 1 application, as amended,
would be derived from orders to buy
should submit only information that including all of the Exhibits referenced
and orders to sell submitted to IEX
you wish to make available publicly. All above, is available online at
electronically by its registered broker-
submissions should refer to File www.sec.gov/rules/other.shtml as well
dealer members from remote locations,
Number SR–NYSEArca–2015–73 and as at the Commission’s Public Reference
as well as from quotes submitted
should be submitted on or before Room.
electronically by members that chose to
October 13, 2015. Interested persons are invited to
register under IEX rules as market
For the Commission, by the Division of makers on IEX and be subject to certain submit written data, views, and
Trading and Markets, pursuant to delegated specified requirements and obligations. arguments concerning IEX’s Form 1, as
authority.53
One notable feature of IEX’s proposed amended, including whether the
Brent J. Fields, trading rules is the proposed ‘‘Midpoint application is consistent with the
Secretary. Price Constraint’’ price sliding process Exchange Act. Comments may be
[FR Doc. 2015–23973 Filed 9–21–15; 8:45 am] for non-displayed orders, which would submitted by any of the following
BILLING CODE 8011–01–P prevent non-displayed limit orders from methods:
posting at a price more aggressive than Electronic Comments
the midpoint of the national best bid
SECURITIES AND EXCHANGE and offer.4 In addition, IEX is proposing • Use the Commission’s Internet
COMMISSION comment form (http://www.sec.gov/
1 15 U.S.C. 78s(f). rules/sro.shtml); or
[Release No. 34–75925; File No. 10–222] 2 In Amendment No. 1, IEX submitted updated • Send an email to rule-comments@
Investors’ Exchange, LLC; Notice of portions of its Form 1 application, including sec.gov. Please include File Number 10–
revised exhibits, a revised version of the proposed 222 on the subject line.
Filing of Application, as Amended, for IEX Rule Book, and revised Addenda C–2, C–3, C–
Registration as a National Securities 4, D–1, D–2, F–1, F–2, F–3, F–4, F–5, F–6, F–7, F–
Exchange Under Section 6 of the 8, F–9, F–10, F–11, F–12, F–13. aggressive of the order’s limit price or the midpoint
3 See 15 U.S.C. 78s(a). Alternatively, if the of the NBBO. See also proposed IEX Rule
Securities Exchange Act of 1934 11.230(a)(4)(D) (concerning the ‘‘Book Recheck’’
Commission does not grant the registration, it will
institute proceedings to determine whether functionality), and Exhibit E to IEX’s Form 1
September 15, 2015. submission, at 19 (describing the ‘‘Book Recheck’’
registration should be approved or denied. See 15
tkelley on DSK3SPTVN1PROD with NOTICES
On August 21, 2015, Investors’ U.S.C. 78s(a)(1)(B). functionality).
Exchange, LLC (‘‘IEX’’) submitted to the 4 See proposed IEX Rule 11.190(h)(2). See also 5 See proposed IEX Rule 11.190(b)(10)
Securities and Exchange Commission Exhibit E to IEX’s Form 1 submission, at 17. (concerning the discretionary peg order type) and
Specifically, a non-displayed order on IEX with a 11.190(g) (concerning quote stability). See also
(‘‘Commission’’) a Form 1 application Exhibit E to IEX’s Form 1 submission, at 14–15.
limit price more aggressive than the midpoint of the
under the Securities Exchange Act of NBBO would be priced at the midpoint, and the 6 See IEX Amended and Restated Operating
price would automatically be adjusted in response Agreement Article III, Section 4(g). See also Exhibit
53 17 CFR 200.30–3(a)(12). to changes in the NBBO to be equal to the less J to IEX’s Form 1 submission, at 37.
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![57262 Federal Register / Vol. 80, No. 183 / Tuesday, September 22, 2015 / Notices
Paper Comments SECURITIES AND EXCHANGE The text of the proposed rule change
• Send paper comments in triplicate COMMISSION is available on the Exchange’s Web site
to Brent J. Fields, Secretary, Securities at http://nasdaq.cchwallstreet.com, at
and Exchange Commission, 100 F Street [Release No. 34–75931; File No. SR– the principal office of the Exchange, and
NE., Washington, DC 20549–1090. NASDAQ–2015–109] at the Commission’s Public Reference
All submissions should refer to File Room.
Self-Regulatory Organizations; The
Number 10–222. This file number II. Self-Regulatory Organization’s
NASDAQ Stock Market LLC; Notice of
should be included on the subject line Statement of the Purpose of, and
if email is used. To help the Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Statutory Basis for, the Proposed Rule
Commission process and review your
Chapter XV, Section 2 Entitled Change
comments more efficiently, please use
only one method. The Commission will ‘‘NASDAQ Options Market—Fees and
Rebates’’ In its filing with the Commission, the
post all comments on the Commission’s Exchange included statements
Internet Web site (http://www.sec.gov/ September 16, 2015. concerning the purpose of and basis for
rules/other.shtml). Copies of the Pursuant to Section 19(b)(1) of the the proposed rule change and discussed
submission, all subsequent Securities Exchange Act of 1934 any comments it received on the
amendments, all written statements (‘‘Act’’),1 and Rule 19b–4 thereunder,2 proposed rule change. The text of these
with respect to IEX’s Form 1 filed with notice is hereby given that on
the Commission, and all written statements may be examined at the
September 3, 2015, The NASDAQ Stock places specified in Item IV below. The
communications relating to the Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’)
application between the Commission Exchange has prepared summaries, set
filed with the Securities and Exchange forth in sections A, B, and C below, of
and any person, other than those that Commission (‘‘SEC’’ or ‘‘Commission’’)
may be withheld from the public in the most significant aspects of such
the proposed rule change as described statements.
accordance with the provisions of 5 in Items I, II, and III, below, which Items
U.S.C. 552, will be available for Web have been prepared by the Exchange. A. Self-Regulatory Organization’s
site viewing and printing in the The Commission is publishing this Statement of the Purpose of, and
Commission’s Public Reference Room, notice to solicit comments on the Statutory Basis for, the Proposed Rule
100 F Street NE., Washington, DC proposed rule change from interested
20549, on official business days Change
persons.
between the hours of 10:00 a.m. and 1. Purpose
3:00 p.m. All comments received will be I. Self-Regulatory Organization’s
posted without change; the Commission Statement of the Terms of Substance of The Exchange proposes to amend
does not edit personal identifying the Proposed Rule Change Chapter XV, Section 2, ‘‘NASDAQ
information from submissions. You The Exchange proposes to amend Options Market—Fees and Rebates’’ to
should submit only information that Chapter XV, entitled ‘‘Options Pricing,’’ remove references to NDX, as this index
you wish to make publicly available. All at Section 2, which governs pricing for will be delisted on or before September
submissions should refer to File NASDAQ members using the NASDAQ 30, 2015.
Number 10–222 and should be Options Market (‘‘NOM’’), NASDAQ’s Today, the Exchange assesses fees and
submitted on or before November 6, facility for executing and routing pays rebates related to the NASDAQ
2015. standardized equity and index options, OMX PHLX LLC NDX proprietary index
For the Commission, by the Division of to remove references to options on the listed on NOM. The Exchange assesses
Trading and Markets, pursuant to delegated Nasdaq-100 Index traded under the the following Non-Penny Pilot fees for
authority.7 symbol NDX (‘‘NDX’’). NDX:
Brent J. Fields, While the changes proposed herein
Secretary. are effective upon filing, the Exchange
[FR Doc. 2015–23972 Filed 9–21–15; 8:45 am] has designated the amendments become
BILLING CODE 8011–01–P operative on October 1, 2015.
Non-NOM NOM market
Customer Professional Firm Broker-dealer
market maker maker
Non-Penny Pilot Options (including
NDX 1):
Fee for Adding Liquidity .................... N/A $0.45 $0.45 $0.45 $0.35 $0.45
Fee for Removing Liquidity ............... 0.85 0.94 0.94 0.94 0.94 0.94
Rebate to Add Liquidity .................... 0.84 N/A N/A N/A N/A
Additionally, for transactions in NDX, a The Exchange will delist this The NDX surcharge of $0.15 per
surcharge of $0.15 per contract is added proprietary index and will no longer contract would also no longer be
to the Fee for Adding Liquidity and the assess the above-referenced fees or pay assessed.
Fee for Removing Liquidity in Non- rebates for NDX. The Exchange proposes
tkelley on DSK3SPTVN1PROD with NOTICES
2. Statutory Basis
Penny Pilot Options, except for a to remove references to NDX from the
Customer who will not be assessed a fee schedule, including current note 1 in NASDAQ believes that the proposed
surcharge. the fee schedule at Chapter XV, Section rule change is consistent with the
2(1), which relates to NDX transactions.
7 17 CFR 200.30–3(a)(71)(i). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4.
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Document Created: 2015-12-15 09:35:39
Document Modified: 2015-12-15 09:35:39
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 57261 |
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