81 FR 50572 - Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing of Proposed Rule Change To Amend Rule 11.230 To Rename the “Router Plus” Routing Option to “Router”

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 147 (August 1, 2016)

Page Range		50572-50573
FR Document		2016-18056
Federal Register, Volume 81 Issue 147 (Monday, August 1, 2016)
[Federal Register Volume 81, Number 147 (Monday, August 1, 2016)]
[Notices]
[Pages 50572-50573]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-18056]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78420; File No. SR-IEX-2016-02]


Self-Regulatory Organizations; Investors Exchange LLC; Notice of 
Filing of Proposed Rule Change To Amend Rule 11.230 To Rename the 
``Router Plus'' Routing Option to ``Router''

July 26, 2016.
    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 July 13, 2016, 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 Exchange has designated this proposal as a ``non-
controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of 
the Act \4\ and Rule 19b-4(f)(6)(iii) thereunder,\5\ which renders it 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change
    The Exchange proposes to amend subparagraph (c)(2) of Rule 11.230 
(Order Execution) to rename the Router Plus routing option to Router.
    The text of the proposed rule change is available at the Exchange's 
Web site 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 purpose of the proposed rule change is to change the references 
in Rule 11.230(c)(2) from ``Router Plus'' to ``Router,'' consistent 
with the Exchange's re-branding of its routing options prior to 
Exchange launch. The name change from Router Plus to Router is a non-
substantive change. No changes to the functionality of this routing 
option are proposed.
    Currently, subparagraph (c) of Rule 11.230 describes two routing 
options offered by the Exchange: Router Basic and Router Plus. The 
proposed change would merely rename Router Plus to Router. Router Basic 
is a routing option under which an order is sent to destinations on the 
System routing table. If shares remain unexecuted after routing, they 
are posted on the Order Book or canceled, as per User instruction. Once 
posted on the Order Book, the unexecuted portion of such an order is 
eligible for the re-sweep behavior described in paragraph (3), market 
conditions permitting. Router Plus (which as proposed, would be 
retitled Router) is a routing option under which an order is sent to 
the Order Book to check for available shares and then any remainder is 
sent to destinations on the System routing table. If shares remain 
unexecuted after routing, they are posted on the Order Book or 
canceled, as per User instruction. Once posted on the Order Book, the 
unexecuted portion of such an order is eligible for the re-sweep 
behavior described in paragraph (3), market conditions permitting. As 
stated above, the proposed change would merely rename Router Plus to 
Router.
2. Statutory Basis
    IEX believes that the proposed rule change is consistent with the 
provisions of Section 6 of the Act \6\ in general and with Sections 
6(b) \7\ of the Act \8\ in particular, in that it 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.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
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    Specifically, the proposed rule change is a stylistic change to 
remove the word ``plus'' in the name of the router option consistent 
with the Exchange's re-branding of its routing options prior to 
Exchange launch. Accordingly, the Exchange believes this nonsubstantive 
change will make the Exchange's rules clearer for market participants 
by removing unnecessary verbiage.
B. Self-Regulatory Organization's Statement on Burden on Competition
    IEX does not believe that the proposed rule change will impose any 
burden on competition, because the Exchange is not proposing any 
substantive changes to Rule 11.230(c)(2).
C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received from Members, Participants, or Others
    Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action
    The Exchange has designated this rule filing as non-controversial 
under Section 19(b)(3)(A) \9\ of the Act and Rule 19b-4(f)(6) \10\ 
thereunder. Because the proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate if consistent with 
the protection of investors and the public interest, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\11\ The Exchange notes that its proposal makes a 
stylistic, non-substantive change and has asked the Commission to waive 
the 30-day operative delay, making this proposal operative upon filing. 
The Commission believes that waiver of the operative delay is 
consistent with the protection of investors and the public interest 
because the Exchange is not

[[Page 50573]]

substantively altering the routing options it offers but rather is 
amending the terminology it uses to identify one particular routing 
option. Therefore, the Commission hereby waives the operative delay and 
designates the proposed rule change operative upon filing.\12\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 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 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.
    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \13\ 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File SR-IEX-2016-02 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-2016-02. 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/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 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. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-IEX-2016-02 and should be 
submitted on or before August 22, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-18056 Filed 7-29-16; 8:45 am]
 BILLING CODE 8011-01-P
50572 Federal Register / Vol. 81, No. 147 / Monday, August 1, 2016 / Notices

[FR Doc. 2016–18173 Filed 7–29–16; 8:45 am] IV below. The self-regulatory mechanism of a free and open market
BILLING CODE 7710–12–P organization has prepared summaries, and a national market system and, in
set forth in Sections A, B, and C below, general, to protect investors and the
of the most significant aspects of such public interest.
SECURITIES AND EXCHANGE statements. Specifically, the proposed rule change
COMMISSION is a stylistic change to remove the word
A. Self-Regulatory Organization’s ‘‘plus’’ in the name of the router option
[Release No. 34–78420; File No. SR–IEX– Statement of the Purpose of, and consistent with the Exchange’s re-
2016–02] Statutory Basis for, the Proposed Rule branding of its routing options prior to
Change Exchange launch. Accordingly, the
Self-Regulatory Organizations;
1. Purpose Exchange believes this nonsubstantive
Investors Exchange LLC; Notice of
The purpose of the proposed rule change will make the Exchange’s rules
Filing of Proposed Rule Change To
change is to change the references in clearer for market participants by
Amend Rule 11.230 To Rename the
Rule 11.230(c)(2) from ‘‘Router Plus’’ to removing unnecessary verbiage.
‘‘Router Plus’’ Routing Option to
‘‘Router’’ ‘‘Router,’’ consistent with the B. Self-Regulatory Organization’s
Exchange’s re-branding of its routing Statement on Burden on Competition
July 26, 2016. options prior to Exchange launch. The
Pursuant to Section 19(b)(1) 1 of the IEX does not believe that the
name change from Router Plus to Router
Securities Exchange Act of 1934 (the proposed rule change will impose any
is a non-substantive change. No changes
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 burden on competition, because the
to the functionality of this routing
notice is hereby given that, on July 13, Exchange is not proposing any
option are proposed.
2016, the Investors Exchange LLC Currently, subparagraph (c) of Rule substantive changes to Rule
(‘‘IEX’’ or the ‘‘Exchange’’) filed with the 11.230 describes two routing options 11.230(c)(2).
Securities and Exchange Commission offered by the Exchange: Router Basic C. Self-Regulatory Organization’s
(the ‘‘Commission’’) the proposed rule and Router Plus. The proposed change Statement on Comments on the
change as described in Items I and II would merely rename Router Plus to Proposed Rule Change Received from
below, which Items have been prepared Router. Router Basic is a routing option Members, Participants, or Others
by the self-regulatory organization. The under which an order is sent to Written comments were neither
Exchange has designated this proposal destinations on the System routing solicited nor received.
as a ‘‘non-controversial’’ proposed rule table. If shares remain unexecuted after
change pursuant to Section 19(b)(3)(A) routing, they are posted on the Order III. Date of Effectiveness of the Proposed
of the Act 4 and Rule 19b–4(f)(6)(iii) Book or canceled, as per User Rule Change and Timing for
thereunder,5 which renders it effective instruction. Once posted on the Order Commission Action
upon filing with the Commission. The Book, the unexecuted portion of such an The Exchange has designated this rule
Commission is publishing this notice to order is eligible for the re-sweep filing as non-controversial under
solicit comments on the proposed rule behavior described in paragraph (3), Section 19(b)(3)(A) 9 of the Act and Rule
change from interested persons. market conditions permitting. Router 19b–4(f)(6) 10 thereunder. Because the
Plus (which as proposed, would be proposed rule change does not: (i)
I. Self-Regulatory Organization’s retitled Router) is a routing option
Statement of the Terms of Substance of Significantly affect the protection of
under which an order is sent to the investors or the public interest; (ii)
the Proposed Rule Change Order Book to check for available shares impose any significant burden on
The Exchange proposes to amend and then any remainder is sent to competition; and (iii) become operative
subparagraph (c)(2) of Rule 11.230 destinations on the System routing for 30 days from the date on which it
(Order Execution) to rename the Router table. If shares remain unexecuted after was filed, or such shorter time as the
Plus routing option to Router. routing, they are posted on the Order Commission may designate if consistent
The text of the proposed rule change Book or canceled, as per User with the protection of investors and the
is available at the Exchange’s Web site instruction. Once posted on the Order public interest, it has become effective
at www.iextrading.com, at the principal Book, the unexecuted portion of such an pursuant to Section 19(b)(3)(A) of the
office of the Exchange, and at the order is eligible for the re-sweep Act and Rule 19b–4(f)(6) thereunder.11
Commission’s Public Reference Room. behavior described in paragraph (3), The Exchange notes that its proposal
market conditions permitting. As stated makes a stylistic, non-substantive
II. Self-Regulatory Organization’s above, the proposed change would
Statement of the Purpose of, and change and has asked the Commission
merely rename Router Plus to Router. to waive the 30-day operative delay,
Statutory Basis for, the Proposed Rule
Change 2. Statutory Basis making this proposal operative upon
filing. The Commission believes that
In its filing with the Commission, the IEX believes that the proposed rule waiver of the operative delay is
self-regulatory organization included change is consistent with the provisions consistent with the protection of
statements concerning the purpose of of Section 6 of the Act 6 in general and investors and the public interest
and basis for the proposed rule change with Sections 6(b) 7 of the Act 8 in because the Exchange is not
and discussed any comments it received particular, in that it is designed to
on the proposed rule change. The text promote just and equitable principles of 9 15 U.S.C. 78s(b)(3)(A).
sradovich on DSK3GMQ082PROD with NOTICES

of these statement [sic] may be trade, to foster cooperation and 10 17 CFR 240.19b–4(f)(6).
examined at the places specified in Item coordination with persons engaged in 11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–

facilitating transactions in securities, to 4(f)(6) requires a self-regulatory organization to give
1 15 remove impediments to and perfect the the Commission written notice of its intent to file
U.S.C. 78s(b)(1).
2 15
the proposed rule change at least five business days
U.S.C. 78a. prior to the date of filing of the proposed rule
3 17 CFR 240.19b–4. 6 15 U.S.C. 78f(b). change, or such shorter time as designated by the
4 15 U.S.C. 78s(b)(3)(A). 7 15 U.S.C. 78f. Commission. The Exchange has satisfied this
5 17 CFR 240.19b–4(f)(6)(iii). 8 15 U.S.C. 78f(b)(5). requirement.

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Federal Register / Vol. 81, No. 147 / Monday, August 1, 2016 / Notices 50573

substantively altering the routing Commission and any person, other than comments on the proposed rule change
options it offers but rather is amending those that may be withheld from the from interested persons.
the terminology it uses to identify one public in accordance with the
I. Self-Regulatory Organization’s
particular routing option. Therefore, the provisions of 5 U.S.C. 552, will be
Statement of the Terms of Substance of
Commission hereby waives the available for Web site viewing and
the Proposed Rule Change
operative delay and designates the printing in the Commission’s Public
proposed rule change operative upon Reference Room, 100 F Street NE., The Exchange proposes to adopt Rule
filing.12 Washington, DC 20549, on official 15.120 and entitle it ‘‘Collection of
At any time within 60 days of the business days between the hours of Exchange Fees and Other Claims and
filing of the proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the Billing Policy’’ that (a) requires each IEX
Commission summarily may filing also will be available for Member, and all applications for
temporarily suspend such rule change if inspection and copying at the principal membership, to provide a clearing
it appears to the Commission that such office of the Exchange. All comments account number for an account at the
action is necessary or appropriate in the received will be posted without change; National Securities Clearing Corporation
public interest, for the protection of the Commission does not edit personal (‘‘NSCC’’) for purposes of permitting the
investors, or otherwise in furtherance of identifying information from Exchange to debit certain fees, fines,
the purposes of the Act. If the submissions. You should submit only charges and/or other monetary sanctions
Commission takes such action, the information that you wish to make or other monies due and owing to the
Commission shall institute proceedings available publicly. All submissions Exchange; and (b) require [sic] IEX
under Section 19(b)(2)(B) 13 of the Act to should refer to File Number SR–IEX– Members to submit billing disputes
determine whether the proposed rule 2016–02 and should be submitted on or within a certain time period.
change should be approved or before August 22, 2016. The text of the proposed rule change
disapproved. is available at the Exchange’s Web site
For the Commission, by the Division of at www.iextrading.com, at the principal
IV. Solicitation of Comments Trading and Markets, pursuant to delegated office of the Exchange, and at the
authority.14
Interested persons are invited to Commission’s Public Reference Room.
submit written data, views and Robert W. Errett,
Deputy Secretary. II. Self-Regulatory Organization’s
arguments concerning the foregoing,
Statement of the Purpose of, and
including whether the proposed rule [FR Doc. 2016–18056 Filed 7–29–16; 8:45 am]
Statutory Basis for, the Proposed Rule
change is consistent with the Act. BILLING CODE 8011–01–P
Change
Comments may be submitted by any of
the following methods: In its filing with the Commission, the
SECURITIES AND EXCHANGE self-regulatory organization included
Electronic Comments COMMISSION statements concerning the purpose of
• Use the Commission’s Internet and basis for the proposed rule change
comment form (http://www.sec.gov/ [Release No. 34–78416; File No. SR–IEX– and discussed any comments it received
rules/sro.shtml); or 2016–01] on the proposed rule change. The text
• Send an email to rule-comments@ of these statement [sic] may be
sec.gov. Please include File SR–IEX– Self-Regulatory Organizations; examined at the places specified in Item
2016–02 on the subject line. Investors Exchange LLC; Notice of IV below. The self-regulatory
Filing and Immediate Effectiveness of organization has prepared summaries,
Paper Comments Proposed Rule Change Relating to the set forth in Sections A, B, and C below,
• Send paper comments in triplicate Collection of Exchange Fees and Other of the most significant aspects of such
to Secretary, Securities and Exchange Claims and Billing Policy statements.
Commission, 100 F Street NE., July 26, 2016.
Washington, DC 20549–1090. A. Self-Regulatory Organization’s
Pursuant to Section 19(b)(1) of the Statement of the Purpose of, and the
All submissions should refer to File Securities Exchange Act of 1934
Number SR–IEX–2016–02. This file Statutory Basis for, the Proposed Rule
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Change
number should be included on the notice is hereby given that, on July 12,
subject line if email is used. To help the 2016, the Investors Exchange LLC 1. Purpose
Commission process and review your (‘‘IEX’’ or the ‘‘Exchange’’) filed with the The purpose of the proposed rule
comments more efficiently, please use Securities and Exchange Commission change is to adopt Rule 15.120 to (a)
only one method. The Commission will (‘‘Commission’’) the proposed rule require each IEX Member, and all
post all comments on the Commission’s change as described in Items I and II applications for membership, to provide
Internet Web site (http://www.sec.gov/ below, which Items have been prepared a clearing account number for an
rules/sro.shtml). Copies of the by the Exchange. The Exchange has account at the National Securities
submission, all subsequent designated this proposal as a ‘‘non- Clearing Corporation (‘‘NSCC’’) for
amendments, all written statements controversial’’ proposed rule change purposes of permitting the Exchange to
with respect to the proposed rule pursuant to Section 19(b)(3)(A) of the debit certain fees, fines, charges and/or
change that are filed with the Act 3 and Rule 19b–4(f)(6) thereunder,4 other monetary sanctions or other
Commission, and all written which renders it effective upon filing monies due and owing to the Exchange;
communications relating to the
sradovich on DSK3GMQ082PROD with NOTICES

with the Commission. The Commission and (b) require IEX Members to submit
proposed rule change between the is publishing this notice to solicit billing disputes within a certain time
period.
12 For purposes only of waiving the 30-day
14 17 CFR 200.30–3(a)(12).
operative delay, the Commission has also
1 15
Direct Debit Process
considered the proposed rule’s impact on U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See 2 17 CFR 240.19b–4. As proposed, paragraph (a) of Rule
15 U.S.C. 78c(f). 3 15 U.S.C. 78s(b)(3)(A). 15.120 requires IEX Members, and all
13 15 U.S.C. 78s(b)(2)(B). 4 17 CFR 240.19b–4(f)(6). applicants for membership, to provide a

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Document Created: 2016-07-30 06:26:13
Document Modified: 2016-07-30 06:26:13
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		81 FR 50572