82 FR 12653 - Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt DEEP, a New Depth of Book Market Data Feed, Rename TOPS Viewer to IEX Data Platform, and Include Depth of Book Market Data Therein
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 42 (March 6, 2017)
Federal Register Volume 82, Issue 42 (March 6, 2017)
| Page Range | 12653-12656 | |
| FR Document | 2017-04202 |
[Federal Register Volume 82, Number 42 (Monday, March 6, 2017)] [Notices] [Pages 12653-12656] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-04202] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80118; File No. SR-IEX-2017-05] Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt DEEP, a New Depth of Book Market Data Feed, Rename TOPS Viewer to IEX Data Platform, and Include Depth of Book Market Data Therein February 28, 2017. 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 February 15, 2017, 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 [[Page 12654]] solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Pursuant to the provisions of Section 19(b)(1) under the Securities Exchange Act of 1934 (``Act''),\4\ and Rule 19b-4 thereunder,\5\ Investors Exchange LLC (``IEX'' or the ``Exchange'') is filing with the Commission a proposed rule change to amend Rule 11.330(a)(3) to adopt a new market data product to be known as DEEP, which is an uncompressed data feed that provides aggregated 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. Additionally, the Exchange proposes to amend Rule 11.330(a)(2) in order to change the name of its data feed currently known as TOPS Viewer to IEX Data Platform, and to add aggregated depth of book quotations for up to ten (10) price levels to the IEX Data Platform. 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\ --------------------------------------------------------------------------- \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 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 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 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Rule 11.330(a)(3) to describe a new market data product to be known as DEEP. Currently, the Exchange offers TOPS, 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. The data disseminated on TOPS is also available via TOPS Viewer through the Exchange's public Web site. Both TOPS and TOPS Viewer are provided free of charge. Based on informal discussion with market participants and other Users, the Exchange has determined that there is demand for a depth of book feed offering. Accordingly, the Exchange proposes to amend Rule 11.330(a)(3) to offer DEEP. As proposed, DEEP will disseminate, on a real-time basis,\7\ aggregated depth of book quotations for all displayed orders resting on the Order Book at each price level for securities traded on IEX (i.e., displayed top of book and full depth of book quotations) and execution information (i.e., last sale information) for executions on the Exchange. DEEP will be provided free of charge. --------------------------------------------------------------------------- \7\ Rule 11.510(b)(2) describes the application of the POP to outbound communications from the Exchange, which impacts DEEP in the same manner as all other data products offered by the Exchange. Specifically, as specified therein, the POP ``is designed to provide all Participants with an equivalent 350 microseconds of latency from the System at the primary data center to the Exchange-provided network interface at the IEX POP.'' --------------------------------------------------------------------------- Consistent with IEX's existing approach whereby data disseminated on TOPS is also available via TOPS Viewer through the Exchange's public Web site, IEX is proposing to continue this paradigm by also providing aggregated depth of book quotations for all displayed orders resting on the Order Book for up to ten (10) price levels that are disseminated through DEEP via the Exchange's public Web site. Accordingly, the Exchange proposes to amend Rule 11.330(a)(2) to modify the name of its data product currently known as TOPS Viewer, and instead title it the IEX Data Platform, to reflect that such platform will provide a suite of data that includes data disseminated by TOPS and a subset of data disseminated by DEEP. As is the case currently with respect to TOPS and TOPS Viewer, the aggregated best bid and offer (``BBO'') and last sale information disseminated through DEEP and the IEX Data Platform will also be reported under the Consolidated Tape Association (``CTA'') Plan or the Nasdaq/UTP Plan. The Exchange will release such information to DEEP and the IEX Data Platform in compliance with Rule 603(a) of Regulation NMS, which requires that exchanges distribute market data on terms that are ``fair and reasonable'' and ``not unreasonably discriminatory,'' and prohibits an exchange from releasing data relating to quotes and trades to its customers through proprietary feeds before it sends its quotes and trade reports for inclusion in the consolidated feeds.\8\ --------------------------------------------------------------------------- \8\ See Regulation NMS, 70 FR 37496, 37567 (June 29, 2005) (adopting release); see also Concept Release, 75 FR at 3601 (January 21, 2010). --------------------------------------------------------------------------- The Exchange plans to implement the proposed changes during the second quarter of 2017 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 90 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 \9\ in general, and with Section 6(b)(5) of the Act,\10\ in particular. DEEP will be provided consistent with the purposes of Section 6(b)(5) of the Act.\11\ Moreover, the proposed rule change 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(4), (5). \11\ 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 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 transparency regarding displayed orders in the IEX System, and also provides market participants with the option to receive IEX BBO and last sale 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 [[Page 12655]] participants and market data vendors on an equivalent basis, and without charge. 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. The Exchange also believes that the proposed rule change is consistent with Section 11(A) of the Act \12\ 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. Furthermore, the proposed rule change is consistent with Rule 603 of Regulation NMS,\13\ which provides that any national securities exchange which distributes information with respect to quotations for or transactions in an NMS stock do so on terms that are fair and reasonable and not unreasonably discriminatory. 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 provided free of charge. Furthermore, 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. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78k-1. \13\ See 17 CFR 242.603. --------------------------------------------------------------------------- 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 or the IEX Data Platform, and will make both available to market participants on a fair and impartial basis, and on terms that are not unreasonably discriminatory. In addition, the Exchange believes that providing aggregated 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 alternative market data, as well as to compete with other exchanges that offer similar market data products, such as those currently offered by the New York Stock Exchange, Inc. (``NYSE''), the Nasdaq Stock Market LLC (``Nasdaq''), and BZX Exchange, Inc. (``Bats'').\14\ --------------------------------------------------------------------------- \14\ See, e.g., Nasdaq Rule 7023(a)(1)(C), which describes the Nasdaq TotalView as a depth-of-book data feed that includes all orders and quotes from all Nasdaq members displayed in the Nasdaq Market Center as well as the aggregate size of such orders and quotes at each price level in the execution functionality of the Nasdaq Market Center; See also NYSE OpenBook Aggregated, available at http://www.nyxdata.com/nysedata/Default.aspx?tabid=1421, which provides a real-time view of the NYSE limit order book including the aggregated size at each price level; See Bats Rule 11.22(a) and 11.22(c), which describe the Bats TCP Depth and Multicast Depth feeds as an uncompressed data feed that offers depth of book quotations and execution information based on equity orders entered into the System; See also Bats Rule 11.22(m), which describes the BZX Summary Depth feed as a data feed that offers aggregated two- sided quotations for all displayed orders entered into the System for up to five (5) price levels. --------------------------------------------------------------------------- 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 proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) \15\ of the Act and Rule 19b-4(f)(6) thereunder.\16\ --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A). \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's 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. --------------------------------------------------------------------------- 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) \17\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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 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 SR-IEX-2017-05 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-2017-05. This file number should be included in 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 Section, 100 F Street NE., Washington, DC 20549-1090, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be available for inspection and copying at the 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- 2017-05 and should be submitted on or before March 27, 2017. [[Page 12656]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-04202 Filed 3-3-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 42 / Monday, March 6, 2017 / Notices 12653
begins. Because the Service will assist with NYSE by allowing it to provide to change that are filed with the
the stabilizing agent in performing this Stabilizing Agents with information that Commission, and all written
function, which is performed by no is similar in effect to the information communications relating to the
other broker, Nasdaq believes that it is available to stabilizing agents through proposed rule change between the
reasonable to limit access to the Service the NYSE DMM. Accordingly, Nasdaq Commission and any person, other than
to the Stabilizing Agent. Moreover, does not believe that there can be any those that may be withheld from the
because the Service will cease to be reasonable objection to the proposal on public in accordance with the
available once the Cross is executed and competitive grounds. provisions of 5 U.S.C. 552, will be
the information provided therein will available for Web site viewing and
quickly become stale, Nasdaq does not C. Self-Regulatory Organization’s
printing in the Commission’s Public
believe that access to the information Statement on Comments on the
Reference Room, 100 F Street NE.,
will provide the Stabilizing Agent with Proposed Rule Change Received From
Washington, DC 20549, on official
any unfair advantage. Members, Participants, or Others
business days between the hours of
Nasdaq believes that the proposal to No written comments were either 10:00 a.m. and 3:00 p.m. Copies of the
move provisions of Rule 7015 into Rule solicited or received. filing also will be available for
7017 is consistent with the Act because inspection and copying at the principal
the change is intended to promote a III. Date of Effectiveness of the
Proposed Rule Change and Timing for office of the Exchange. All comments
clear understanding of the rule text by received will be posted without change;
including in a single rule all Nasdaq Commission Action
the Commission does not edit personal
data services that are specifically Within 45 days of the date of identifying information from
designed to support the initial trading of publication of this notice in the Federal submissions. You should submit only
securities that are the subject of an IPO Register or within such longer period information that you wish to make
or a Follow-On Offering. Nasdaq further up to 90 days (i) as the Commission may available publicly. All submissions
believes that the proposal to make the designate if it finds such longer period should refer to File Number SR–
Service available to eligible recipients at to be appropriate and publishes its NASDAQ–2017–015 and should be
no additional charge is reasonable reasons for so finding or (ii) as to which submitted on or before March 27, 2017.
because it will not result in any increase the self-regulatory organization
in the costs incurred by a Stabilizing consents, the Commission will: For the Commission, by the Division of
(A) By order approve or disapprove Trading and Markets, pursuant to delegated
Agent to receive the additional
authority.21
information. Nasdaq further believes such proposed rule change, or
that the proposal is consistent with an (B) institute proceedings to determine Eduardo A. Aleman,
equitable allocation of fees and not whether the proposed rule change Assistant Secretary.
unfairly discriminatory because should be disapproved. [FR Doc. 2017–04204 Filed 3–3–17; 8:45 am]
additional information is being BILLING CODE 8011–01–P
IV. Solicitation of Comments
provided to a limited group of potential
users in order to assist in the promotion Interested persons are invited to
of fair and orderly markets during a submit written data, views, and SECURITIES AND EXCHANGE
Follow-On Offering. Accordingly, the arguments concerning the foregoing, COMMISSION
absence of an additional fee is designed including whether the proposed rule
to encourage eligible members to accept change is consistent with the Act. [Release No. 34–80118; File No. SR–IEX–
the information in order to ensure that Comments may be submitted by any of 2017–05]
the goals of the proposal are advanced the following methods:
to the greatest extent possible. Self-Regulatory Organizations;
Electronic Comments
Nasdaq further believes that the non- Investors Exchange LLC; Notice of
substantive changes it is making to • Use the Commission’s Internet Filing and Immediate Effectiveness of
move information about the IPO comment form (http://www.sec.gov/ Proposed Rule Change To Adopt
Indicator Service from Rule 7015 to new rules/sro.shtml); or DEEP, a New Depth of Book Market
Rule 7017, and to provide additional • Send an email to rule-comments@ Data Feed, Rename TOPS Viewer to
detail in Rule 7017 about the sec.gov. Please include File Number SR– IEX Data Platform, and Include Depth
information available through the IPO NASDAQ–2017–015 on the subject line. of Book Market Data Therein
Indicator Service, are consistent with Paper Comments February 28, 2017.
the Act because they will promote a
clearer understanding of the IPO • Send paper comments in triplicate Pursuant to Section 19(b)(1) 1 of the
Indicator Service by members and other to Secretary, Securities and Exchange Securities Exchange Act of 1934 (the
interested persons. Commission, 100 F Street NE., ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Washington, DC 20549–1090. notice is hereby given that, on February
B. Self-Regulatory Organization’s All submissions should refer to File 15, 2017, the Investors Exchange LLC
Statement on Burden on Competition Number SR–NASDAQ–2017–015. This (‘‘IEX’’ or the ‘‘Exchange’’) filed with the
Nasdaq does not believe that the file number should be included on the Securities and Exchange Commission
proposed rule change will impose any subject line if email is used. To help the (the ‘‘Commission’’) the proposed rule
burden on competition that is not Commission process and review your
asabaliauskas on DSK3SPTVN1PROD with NOTICES
change as described in Items I and II
necessary or appropriate in furtherance comments more efficiently, please use below, which Items have been prepared
of the purposes of the Act. In fact, only one method. The Commission will by the self-regulatory organization. The
because the Service is intended to post all comments on the Commission’s Commission is publishing this notice to
provide the Stabilizing Agent with Internet Web site (http://www.sec.gov/
information about the condition of the rules/sro.shtml). Copies of the 21 17 CFR 200.30–3(a)(12).
Nasdaq order book in advance of the submission, all subsequent 1 15 U.S.C. 78s(b)(1).
Cross, Nasdaq believes that the proposal amendments, all written statements 2 15 U.S.C. 78a.
will help it compete more effectively with respect to the proposed rule 3 17 CFR 240.19b–4.
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solicit comments on the proposed rule TOPS, an uncompressed data feed that terms that are ‘‘fair and reasonable’’ and
change from interested persons. provides aggregated top of book ‘‘not unreasonably discriminatory,’’ and
quotations for all displayed orders prohibits an exchange from releasing
I. Self-Regulatory Organization’s
resting on the Order Book and execution data relating to quotes and trades to its
Statement of the Terms of Substance of
information (i.e., last sale information) customers through proprietary feeds
the Proposed Rule Change
for executions on the Exchange. The before it sends its quotes and trade
Pursuant to the provisions of Section data disseminated on TOPS is also reports for inclusion in the consolidated
19(b)(1) under the Securities Exchange available via TOPS Viewer through the feeds.8
Act of 1934 (‘‘Act’’),4 and Rule 19b–4 Exchange’s public Web site. Both TOPS The Exchange plans to implement the
thereunder,5 Investors Exchange LLC and TOPS Viewer are provided free of proposed changes during the second
(‘‘IEX’’ or the ‘‘Exchange’’) is filing with charge. Based on informal discussion quarter of 2017 pending completion of
the Commission a proposed rule change with market participants and other necessary technology changes and
to amend Rule 11.330(a)(3) to adopt a Users, the Exchange has determined that subject to effectiveness of this proposed
new market data product to be known there is demand for a depth of book feed rule change. The Exchange will
as DEEP, which is an uncompressed offering. Accordingly, the Exchange announce the implementation date of
data feed that provides aggregated depth proposes to amend Rule 11.330(a)(3) to the proposed changes by Trader Alert at
of book quotations for all displayed offer DEEP. As proposed, DEEP will least 10 business days in advance of
orders for securities traded on IEX, and disseminate, on a real-time basis,7 such implementation date and within
execution information (i.e., last sale aggregated depth of book quotations for 90 days of effectiveness of this proposed
information) for executions on the all displayed orders resting on the Order rule change.
Exchange. Additionally, the Exchange Book at each price level for securities
proposes to amend Rule 11.330(a)(2) in 2. Statutory Basis
traded on IEX (i.e., displayed top of
order to change the name of its data feed IEX believes that the proposed rule
book and full depth of book quotations)
currently known as TOPS Viewer to IEX change is consistent with the provisions
and execution information (i.e., last sale
Data Platform, and to add aggregated of Section 6 of the Act 9 in general, and
information) for executions on the
depth of book quotations for up to ten with Section 6(b)(5) of the Act,10 in
Exchange. DEEP will be provided free of
(10) price levels to the IEX Data particular. DEEP will be provided
charge.
Platform. The Exchange has designated Consistent with IEX’s existing consistent with the purposes of Section
this proposal as non-controversial and approach whereby data disseminated on 6(b)(5) of the Act.11 Moreover, the
provided the Commission with the TOPS is also available via TOPS Viewer proposed rule change is not designed to
notice required by Rule 19b–4(f)(6)(iii) permit unfair discrimination among
through the Exchange’s public Web site,
under the Act.6 customers, issuers, and brokers; and is
IEX is proposing to continue this
The text of the proposed rule change designed to promote just and equitable
paradigm by also providing aggregated
is available at the Exchange’s Web site principles of trade, to foster cooperation
depth of book quotations for all
at www.iextrading.com, at the principal and coordination with persons engaged
displayed orders resting on the Order
office of the Exchange, and at the in facilitating transactions in securities,
Book for up to ten (10) price levels that
Commission’s Public Reference Room. to remove impediments to and perfect
are disseminated through DEEP via the
the mechanism of a free and open
II. Self-Regulatory Organization’s Exchange’s public Web site.
market and a national market system
Statement of the Purpose of, and the Accordingly, the Exchange proposes to
and, in general, to protect investors and
Statutory Basis for, the Proposed Rule amend Rule 11.330(a)(2) to modify the the public interest.
Change name of its data product currently The proposed rule change is designed
In its filing with the Commission, the known as TOPS Viewer, and instead to promote just and equitable principles
self-regulatory organization included title it the IEX Data Platform, to reflect of trade and remove impediments to and
statements concerning the purpose of that such platform will provide a suite perfect the mechanism of a free and
and basis for the proposed rule change of data that includes data disseminated open market and a national market
and discussed any comments it received by TOPS and a subset of data system by providing quotation and
on the proposed rule change. The text disseminated by DEEP. transaction information to market
of these statement [sic] may be As is the case currently with respect participants. The Exchange also believes
examined at the places specified in Item to TOPS and TOPS Viewer, the this proposal is consistent with Section
IV below. The self-regulatory aggregated best bid and offer (‘‘BBO’’) 6(b)(5) of the Act because it is designed
organization has prepared summaries, and last sale information disseminated to protect investors and the public
set forth in Sections A, B, and C below, through DEEP and the IEX Data Platform interest and promote just and equitable
of the most significant aspects of such will also be reported under the principles of trade by providing
statements. Consolidated Tape Association (‘‘CTA’’) transparency regarding displayed orders
Plan or the Nasdaq/UTP Plan. The in the IEX System, and also provides
A. Self-Regulatory Organization’s Exchange will release such information market participants with the option to
Statement of the Purpose of, and the to DEEP and the IEX Data Platform in receive IEX BBO and last sale
Statutory Basis for, the Proposed Rule compliance with Rule 603(a) of information otherwise than under the
Change Regulation NMS, which requires that CTA and Nasdaq/UTP Plans. Further,
1. Purpose exchanges distribute market data on the proposal would not permit unfair
asabaliauskas on DSK3SPTVN1PROD with NOTICES
The Exchange proposes to amend discrimination because the information
7 Rule 11.510(b)(2) describes the application of
Rule 11.330(a)(3) to describe a new will be available to all market
the POP to outbound communications from the
market data product to be known as Exchange, which impacts DEEP in the same manner
8 See Regulation NMS, 70 FR 37496, 37567 (June
DEEP. Currently, the Exchange offers as all other data products offered by the Exchange.
Specifically, as specified therein, the POP ‘‘is 29, 2005) (adopting release); see also Concept
designed to provide all Participants with an Release, 75 FR at 3601 (January 21, 2010).
4 15 U.S.C. 78s(b)(1). 9 15 U.S.C. 78f(b).
equivalent 350 microseconds of latency from the
5 17 CFR 240.19b–4. 10 15 U.S.C. 78f(b)(4), (5).
System at the primary data center to the Exchange-
6 17 CFR 240.19b–4(f)(6)(iii). provided network interface at the IEX POP.’’ 11 15 U.S.C. 78f(b)(5).
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![12656 Federal Register / Vol. 82, No. 42 / Monday, March 6, 2017 / Notices
For the Commission, by the Division of forth in sections A, B, and C below, of Pursuant to paragraph (d) of Rule 519,
Trading and Markets, pursuant to delegated the most significant aspects of such the MIAX Order Monitor rejects any
authority.18 statements. orders that cause the number of open
Eduardo A. Aleman, contracts represented by orders held in
Assistant Secretary.
A. Self-Regulatory Organization’s
the System on behalf of a particular
Statement of the Purpose of, and
[FR Doc. 2017–04202 Filed 3–3–17; 8:45 am] Member (the ‘‘Open Contract
Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P Protection’’) 10 to exceed a specified
Change
maximum number of contracts. If the
1. Purpose maximum number of open contracts is
SECURITIES AND EXCHANGE not designated by the Member, the
COMMISSION The Exchange proposes to amend
Exchange will set a default maximum
Rule 519, MIAX Order Monitor, to
[Release No. 34–80121; File No. SR–MIAX– value which will be determined by the
clarify the behavior of the Order Size
2017–09] Exchange and announced to Members
Protection functionality (defined below)
through a Regulatory Circular.11
described in paragraph (b) and to make
Self-Regulatory Organizations; Miami minor, non-substantive changes to the The Exchange also proposes to make
International Securities Exchange LLC; rule as described below. The Exchange minor, non-substantive changes to
Notice of Filing and Immediate also proposes to amend Rule 519 by paragraph (b) to make the language clear
Effectiveness of a Proposed Rule removing the option for a Member 3 to and consistent with the remainder of the
Change To Amend MIAX Options Rule disable the risk protection features rule. The Exchange proposes to amend
519, MIAX Order Monitor described in paragraphs (b)–(d) of the the heading of paragraph (b) from
rule: Order Size Protection, Open Order ‘‘Order Size Protections’’ to ‘‘Order Size
February 28, 2017.
Protection, and Open Contract Protection’’ to more accurately reflect
Pursuant to the provisions of Section the scope of the functionality.
19(b)(1) of the Securities Exchange Act Protection, respectively, which are all
defined below. Additionally, the Exchange proposes to
of 1934 (‘‘Act’’)1 and Rule 19b–4 change the rule text to more accurately
thereunder,2 notice is hereby given that The MIAX Order Monitor is a risk
describe that the functionality operates
on February 23, 2017, Miami management feature of the Exchange’s
on a per order basis. The Exchange
International Securities Exchange, LLC System.4 Pursuant to paragraph (b) of
proposes to make clarifying changes to
(‘‘MIAX Options’’ or ‘‘Exchange’’) filed Rule 519, the MIAX Order Monitor
the second sentence by changing the
with the Securities and Exchange prevents certain orders from executing
first occurrence of ‘‘orders’’ to ‘‘an
Commission (‘‘Commission’’) a or being placed on the Book 5 if the size
order’’ and changing the second
proposed rule change as described in of the order exceeds the Order Size
occurrence of ‘‘orders’’ to ‘‘order’’ and
Items I, II, and III below, which Items Protection designated by the Member
placing it after the word ‘‘maximum’’ so
have been prepared by the Exchange. submitting the order (proposed ‘‘Order
the proposed revised sentence would
The Commission is publishing this Size Protection’’).6 If the maximum size
read, ‘‘[i]f the maximum size of an order
notice to solicit comments on the of an order is not designated by the
is not designated by the Member, the
proposed rule change from interested Member, the Exchange will set a default
Exchange will set a maximum order size
persons. maximum value which will be
on behalf of the Member by default.’’
determined by the Exchange and
I. Self-Regulatory Organization’s The Order Size Protection operates on
announced to Members through a
Statement of the Terms of Substance of an order by order basis, and the
Regulatory Circular.7
the Proposed Rule Change Exchange believes the revised language
Pursuant to paragraph (c) of Rule 519, more accurately describes the
The Exchange is filing a proposal to the MIAX Order Monitor rejects any functionality.
amend Exchange Rule 519, MIAX Order orders that exceed the maximum
Monitor. number of open orders held in the Additionally, the Exchange proposes
The text of the proposed rule change System on behalf of a particular Member to amend paragraph (b) to eliminate the
is available on the Exchange’s Web site (the ‘‘Open Order Protection’’).8 If the option for Members to disable the Order
at http://www.miaxoptions.com/rule- maximum number of open orders is not Size Protection. The proposed sentence
filings, at MIAX’s principal office, and designated by the Member, the will read, ‘‘[m]embers may designate the
at the Commission’s Public Reference Exchange will set a default maximum order size protection on a firm wide
Room. value which will be determined by the basis.’’ Should a Member fail to
Exchange and announced to Members designate an Order Size Protection
II. Self-Regulatory Organization’s value, the Exchange will apply a default
Statement of the Purpose of, and through a Regulatory Circular.9
setting, which it will determine and
Statutory Basis for, the Proposed Rule announce to Members through a
3 The term ‘‘Member’’ means an individual or
Change Regulatory Circular.
organization approved to exercise the trading rights
In its filing with the Commission, the associated with a Trading Permit. Members are The Exchange also proposes to amend
Exchange included statements deemed ‘‘members’’ under the Exchange Act. See paragraph (c) to remove the option for
Exchange Rule 100.
concerning the purpose of and basis for 4 The term ‘‘System’’ means the automated
Members to disable the Open Order
the proposed rule change and discussed trading system used by the Exchange for the trading Protection. If a Member does not
asabaliauskas on DSK3SPTVN1PROD with NOTICES
any comments it received on the of securities. See Exchange Rule 100. designate an appropriate value, the
proposed rule change. The text of these 5 The term ‘‘Book’’ means the electronic book of Exchange will apply a default value,
statements may be examined at the buy and sell orders and quotes maintained by the which it will determine and announce
System. See Exchange Rule 100.
places specified in Item IV below. The 6 See Exchange Rule 519(b).
to Members through a Regulatory
Exchange has prepared summaries, set 7 The Exchange notes that the current default Circular.
maximum order size is 10,000 contracts.
18 17 CFR 200.30–3(a)(12). 8 See Exchange Rule 519(c). 10 See
Exchange Rule 519(d).
1 15 U.S.C. 78s(b)(1). 9 The Exchange notes that the current default 11 The
Exchange notes that the current default
2 17 CFR 240.19b–4. maximum number of open orders is 30,000. maximum number of open contracts is 1,000,000.
VerDate Sep<11>2014 19:24 Mar 03, 2017 Jkt 241001 PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 E:\FR\FM\06MRN1.SGM 06MRN1](https://thefederalregister.org/doc/82_FR_12695/page/4.svg)
Document Created: 2017-03-04 00:07:12
Document Modified: 2017-03-04 00:07:12
| 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 | 82 FR 12653 |
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