82 FR 41452 - Self-Regulatory Organizations; Investors Exchange LLC; Order Approving a Proposed Rule Change To Introduce a New Market Maker Peg Order
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 168 (August 31, 2017)
Federal Register Volume 82, Issue 168 (August 31, 2017)
| Page Range | 41452-41454 | |
| FR Document | 2017-18455 |
[Federal Register Volume 82, Number 168 (Thursday, August 31, 2017)] [Notices] [Pages 41452-41454] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-18455] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81482; File No. SR-IEX-2017-22] Self-Regulatory Organizations; Investors Exchange LLC; Order Approving a Proposed Rule Change To Introduce a New Market Maker Peg Order August 25, 2017. I. Introduction On June 30, 2017, the Investors Exchange LLC (``IEX'' or the ``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to (i) introduce a new Market Maker Peg Order; (ii) amend IEX Rule 11.510(c) to specify connectivity within the Exchange System when repricing a Market Maker Peg Order; and (iii) amend IEX Rule 11.340(d) to describe how Market Maker Peg Orders will be priced in order to comply with the Plan to Implement a Tick Size Pilot Program (``Tick Pilot Plan'').\3\ The proposed rule change was published for comment in the Federal Register on July 11, 2017.\4\ The Commission received no comments on the proposed rule change. This order approves the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities and Exchange Act Release No. 74892 (May 6, 2015), 80 FR 27513 (File No. 4-657). See also Securities and Exchange Act Release No. 76382 (November 6, 2015) (File No. 4-657), 80 FR 70284 (File No. 4-657) (November 13, 2015), which extended the pilot period commencement date from May 6, 2015 to October 3, 2016. \4\ See Securities Exchange Act Release No. 81078 (July 5, 2017), 82 FR 32026 (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change The Exchange proposes to introduce a new Market Maker Peg Order that the Exchange states is designed to promote compliance by market makers with the continuous quoting and pricing obligations of IEX Rule 11.151 (Market Maker Obligations),\5\ in a manner consistent with the requirements under Rule 15c3-5 of the Act (``Market Access Rule'') \6\ and Regulation SHO.\7\ The Exchange states that ``this order-based approach would provide an effective compliance tool to facilitate market makers compliance with the requirements of the Market Access Rule and Regulation SHO while also providing quotation adjusting functionality to its market makers.'' \8\ IEX also states that market makers will have control of order origination, as required by the Market Access Rule, and retain the ability to make marking and locate determinations prior to order entry, as required by Regulation SHO.\9\ --------------------------------------------------------------------------- \5\ IEX Rule 11.151 requires market makers for each stock in which they are registered to continuously maintain a two-sided quotation within a designated percentage of the National Best Bid (``NBB'') and National Best Offer (``NBO''). \6\ 17 CFR 240.15c3-5. \7\ See Notice, supra note 4, at 32027. See also 17 CFR 242.200 through 204 (Regulation SHO). \8\ See Notice, supra note 4, at 32027. \9\ See id. --------------------------------------------------------------------------- As proposed, the Market Maker Peg Order will be a one-sided limit order [[Page 41453]] that, similar to other peg orders available to market participants on the Exchange,\10\ will be tied or ``pegged'' to a certain price. Unlike other peg orders on the Exchange, however, it will be distinguishable in that it will always be displayed. Use of the Market Maker Peg Order will be limited to the Exchange's registered market makers.\11\ Market Maker Peg Orders will have their price automatically set and adjusted by the System,\12\ both upon entry and any time thereafter, in order to comply with the Exchange's rules regarding market maker quoting and pricing obligations.\13\ --------------------------------------------------------------------------- \10\ See Rule 11.190(a)(3). \11\ See IEX Rule 11.150. \12\ The term ``System'' is defined in IEX Rule 1.160(nn). \13\ The Market Maker Peg Order is one-sided, and thus a market maker seeking to use Market Maker Peg Orders as a backstop to help facilitate compliance with the Exchange's continuous two-sided quotation requirements set forth in IEX Rule 11.151 would need to submit both a bid and an offer using the order type. --------------------------------------------------------------------------- Specifically, upon entry or at the beginning of the Regular Market Session,\14\ as applicable, the entered bid or offer will be automatically priced by the System at the Designated Percentage (as defined in IEX Rule 11.151(a)(6)) away from the then current NBB or NBO, as applicable, or if there is no NBB or NBO, at the Designated Percentage away from the last reported sale from the responsible single plan processor in order to comply with the quotation requirements for market makers set forth in IEX Rule 11.151(a). Market makers will be able to submit Market Maker Peg Orders to the Exchange starting at the beginning of the Pre-Market Session, but the order will not be executable or automatically priced until the beginning of the Regular Market Session, and will expire at the end of the Regular Market Session. --------------------------------------------------------------------------- \14\ The term ``Regular Market Session'' is defined in IEX Rule 1.160(gg). --------------------------------------------------------------------------- Upon reaching the Defined Limit (as defined in IEX Rule 11.151(a)(7)), the price of a Market Maker Peg Order will be adjusted by the System to the Designated Percentage away from the then current NBB or NBO, or, if there is no NBB or NBO, the order will, by default, be the Designated Percentage away from the last reported sale from the responsible single plan processor. If a Market Maker Peg Order bid or offer moves a specified number of percentage points away from the Designated Percentage towards the then current NBB or NBO, its price will be adjusted by the System to the Designated Percentage away from the then current NBB or NBO, as applicable. If there is no NBB or NBO, as applicable, the order will be adjusted by the System to the Designated Percentage away from the last reported sale from the responsible single plan processor. In the event that pricing a Market Maker Peg Order at the Designated Percentage away from the then current NBB and NBO, or, if no NBB or NBO, to the Designated Percentage away from the last reported sale from the responsible single plan processor, would result in the order exceeding its limit price, the order will be cancelled or rejected.\15\ --------------------------------------------------------------------------- \15\ According to the Exchange, a limit price entered on a Market Maker Peg Order is designed to allow a market maker to specify a price at which the initial pricing and any subsequent repricing of the order to the Designated Percentage will be constrained. See Notice, supra note 4, at 32028. --------------------------------------------------------------------------- If, after entry, the Market Maker Peg Order is priced based on the last reported sale from the single plan processor and such Market Maker Peg Order is established as the NBB or NBO, the Market Maker Peg Order will not be subsequently adjusted until either there is a new consolidated last sale or a new NBB or NBO is established. For purposes of the proposed rule, the Exchange will apply the Designated Percentage and Defined Limit as set forth in IEX Rules 11.151(a)(6) and (7), respectively, subject to the following exception: For all NMS stocks with a price less than $1 per share that are not included in the S&P 500[supreg] Index, Russell 1000[supreg] Index, and a pilot list of Exchange Traded Products, the Exchange will use the Designated Percentage and Defined Limit applicable to NMS stocks equal to or greater than $1 per share that are not included in the S&P 500[supreg] Index, Russell 1000[supreg] Index, and a pilot list of Exchange Traded Products. Market Maker Peg Orders will not be eligible for routing pursuant to IEX Rule 11.230(b) and are always displayed on the Exchange. Notwithstanding the availability of Market Maker Peg Order functionality, a market maker will remain responsible for entering, monitoring, and resubmitting, as applicable, quotations that meet the requirements of IEX Rule 11.151. A new timestamp will be created for the order each time that it is automatically adjusted in accordance with the proposed rule. The Exchange states that the System will be available for entry, modification, and cancellation of Market Maker Peg Orders only via the POP \16\ pursuant to IEX Rule 11.510(b), and thus will be subject to the Inbound and Outbound POP Latency upon entry, accordingly.\17\ In addition, the Exchange proposes to amend IEX Rule 11.510(c) (System Connectivity) to provide that each time a Market Maker Peg Order is automatically adjusted by the System in accordance with proposed IEX Rule 11.190(b)(13), all inbound and outbound communications related to the modified order instruction will traverse an additional POP between the Market Maker Peg Order repricing logic and the Order Book, which is subject to an equivalent 350 microseconds of latency.\18\ The Exchange states that this approach is designed so that a market maker using a Market Maker Peg Order will be in the same position as a market maker updating its own quote through the POP.\19\ --------------------------------------------------------------------------- \16\ The term ``POP'' is defined in IEX Rule 11.510(a). \17\ See 11.510(b)(1) and (2), respectively, which define the ``Inbound POP Latency'' as an equivalent 350 microseconds of latency from the Exchange-provided network interface at the IEX POP to the System at the primary data center; and ``Outbound POP Latency'' as an equivalent 350 microseconds of latency from the System at the primary data center to the Exchange-provided network interface at the IEX POP. \18\ The Exchange states that the same ``additional POP'' that is used to implement an equivalent 350 microseconds of latency to all routable orders sent by the System to the Order Book pursuant to Rule 11.510(c)(1) will be used to implement such delay to all modified order instructions for Market Maker Peg Orders pursuant to proposed Rule 11.190(b)(13). See Notice, supra note 4, at 32028 fn 19. \19\ See Notice, supra note 4, at 32028. For additional details concerning IEX's approach to subject all inbound and outbound communications related to the repricing of Market Maker Peg Orders to POP latency, see Notice, supra note 4, at 32028-29. --------------------------------------------------------------------------- Finally, the Exchange proposes to amend IEX Rule 11.340 (Compliance with Regulation NMS Plan to Implement a Tick Size Pilot) to specify that if, pursuant to proposed IEX Rule 11.190(b)(13), a Market Maker Peg Order in a Pilot Security \20\ will be priced at an increment other than $0.05, the System will round such order to buy (sell) up (down) to the nearest permissible increment.\21\ IEX states that this approach is designed to ensure that Market Maker Peg Orders for Pilot Securities are appropriately priced in $0.05 increments by rounding such orders to the nearest permissible increment that is also compliant with the minimum market maker quoting obligations set forth in IEX Rule 11.151.\22\ --------------------------------------------------------------------------- \20\ The term ``Pilot Security'' has the meaning specified in the Tick Pilot Plan. \21\ The Exchange states that if the rounding methodology results in a Market Maker Peg Order being priced to a price below $0.05, the order will be cancelled back to the market maker that entered the order. See Notice, supra note 4, at 32028. \22\ See id. --------------------------------------------------------------------------- In its proposal, the Exchange noted its intention to implement the proposed [[Page 41454]] changes during the third quarter of 2017.\23\ --------------------------------------------------------------------------- \23\ See id. at 32029. --------------------------------------------------------------------------- III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange.\24\ Specifically, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,\25\ which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, 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 Commission finds that the proposed rule change also is designed to support the principles of Section 11A(a)(1) \26\ of the Act in that it seeks to assure fair competition among brokers and dealers and among exchange markets. --------------------------------------------------------------------------- \24\ In approving this rule change, the Commission has considered the rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \25\ 15 U.S.C. 78f(b)(5). \26\ 15 U.S.C. 78k-1(a)(1). --------------------------------------------------------------------------- The Commission finds that the Exchange's proposal is consistent with the Act because it provides an optional tool that market makers may use as a backstop to help maintain a continuous quote in satisfaction of the Exchange's minimum continuous quoting requirements, which may assist in the maintenance of fair and orderly markets. The Commission notes, however, that notwithstanding the availability of the Market Maker Peg Order functionality, the market maker remains responsible for meeting its obligations under IEX Rule 11.151, including entering, monitoring, and re-submitting, as applicable, compliant quotations. At the same time, the Commission finds that the proposal is reasonably designed to assist market makers in complying with the regulatory requirements of the Market Access Rule and Regulation SHO. The Commission notes, however, the Market Maker Peg Order does not by itself ensure that the market maker is satisfying the requirements of the Market Access Rule or Regulation SHO, including the satisfaction of the locate requirements of Rule 203(b)(1) of the Act or any exception thereto. The Commission believes that the Exchange's proposal to subject all inbound and outbound communications related to Market Maker Peg Orders, including the automatic repricing of such orders, to POP latency is consistent with the Act. In particular, this treatment of the Market Maker Peg Order places a market maker using this order type in the same position as another market maker placing and updating its own quote directly without using the Market Maker Peg Order type--both will be subject to the POP and experience the same latency. In addition, this approach is consistent with the treatment of other displayed orders on the Exchange, all of which are subject to the POP latency. Further, the Commission believes that the Exchange's proposal to specify how Market Maker Peg Orders will be priced in order to comply with the Tick Pilot Plan is consistent with the Act and Rule 608 of Regulation NMS \27\ because it implements the Tick Pilot Plan and conforms Exchange rules to those requirements.\28\ --------------------------------------------------------------------------- \27\ 17 CFR 242.608. \28\ The Commission notes that in this regard IEX's proposal is substantially similar to Bats BZX Exchange, Inc. (``Bats'') Rule 11.27(c)(5). --------------------------------------------------------------------------- Finally, the Commission notes that other national securities exchanges offer similar order types to the Exchange's proposed Market Maker Peg Order,\29\ and the Commission received no comments on the Exchange's proposed rule change. --------------------------------------------------------------------------- \29\ See, e.g., Bats Rule 11.9(c)(16), Nasdaq Stock Market LLC Rule 4702(b)(7), and Bats EDGX Exchange, Inc. Rule 11.8(e). --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\30\ that the proposed rule change (SR-IEX-2017-22), be and hereby is, approved. --------------------------------------------------------------------------- \30\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\31\ --------------------------------------------------------------------------- \31\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-18455 Filed 8-30-17; 8:45 am] BILLING CODE 8011-01-P
![41452 Federal Register / Vol. 82, No. 168 / Thursday, August 31, 2017 / Notices
declaring that it has ceased to be an JPMorgan China Region Fund, Inc. [File ‘‘Exchange’’) filed with the Securities
investment company. Applicant has No. 811–06686] and Exchange Commission
never made a public offering of its Summary: Applicant, a closed-end (‘‘Commission’’), pursuant to Section
securities and does not propose to make investment company, seeks an order 19(b)(1) of the Securities Exchange Act
a public offering or engage in business declaring that it has ceased to be an of 1934 (‘‘Act’’) 1 and Rule 19b–4
of any kind. investment company. On July 14, 2017, thereunder,2 a proposed rule change to
Filing Date: The application was filed applicant made a liquidating (i) introduce a new Market Maker Peg
on August 3, 2017. distribution to its shareholders, based Order; (ii) amend IEX Rule 11.510(c) to
Applicant’s Address: 200 West Street, on net asset value. Applicant has 62 specify connectivity within the
New York, New York 10282. remaining shareholders, and each is Exchange System when repricing a
entitled to a pro rata share of the assets, Market Maker Peg Order; and (iii)
HSBC Advisor Funds Trust [File No. if any, remaining after the winding up amend IEX Rule 11.340(d) to describe
811–07583] of applicant’s affairs. Applicant’s how Market Maker Peg Orders will be
remaining assets were transferred to a priced in order to comply with the Plan
Summary: Applicant seeks an order
liquidating trust in which shareholders to Implement a Tick Size Pilot Program
declaring that it has ceased to be an
have a pro rata beneficial interest. (‘‘Tick Pilot Plan’’).3 The proposed rule
investment company. Each series of
Expenses of $192,043 incurred in change was published for comment in
applicant has transferred its assets to a
connection with the liquidation were the Federal Register on July 11, 2017.4
corresponding series of HSBC Funds
paid by the applicant. The Commission received no comments
and, on June 24, 2016, made a final
Filing Date: The application was filed on the proposed rule change. This order
distribution to its shareholders based on
on August 18, 2017. approves the proposed rule change.
net asset value. Expenses of $15,173
incurred in connection with the Applicant’s Address: 1 Beacon Street, II. Description of the Proposed Rule
reorganization were paid by the 18th Floor, Boston, Massachusetts Change
applicant and the applicant’s 02108.
The Exchange proposes to introduce a
investment adviser. Touchstone Investment Trust [File No. new Market Maker Peg Order that the
Filing Dates: The application was 811–02538] Exchange states is designed to promote
filed on August 4, 2017, and amended Summary: Applicant seeks an order compliance by market makers with the
on August 18, 2017. declaring that it has ceased to be an continuous quoting and pricing
Applicant’s Address: 4400 Easton investment company. Each series of obligations of IEX Rule 11.151 (Market
Commons, Suite 200, Columbus, Ohio applicant has transferred its assets to a Maker Obligations),5 in a manner
43219–3035. corresponding series of Touchstone consistent with the requirements under
Funds Group Trust and, on January 27, Rule 15c3–5 of the Act (‘‘Market Access
HSBC Portfolios [File No. 811–08928] Rule’’) 6 and Regulation SHO.7 The
2017, made a final distribution to its
Summary: Applicant seeks an order shareholders based on net asset value. Exchange states that ‘‘this order-based
declaring that it has ceased to be an Expenses of $51,370 incurred in approach would provide an effective
investment company. Each series of connection with the reorganization were compliance tool to facilitate market
applicant has transferred its assets to a paid by the applicant’s investment makers compliance with the
corresponding series of HSBC Funds adviser. requirements of the Market Access Rule
and, on June 24, 2016, made a final Filing Dates: The application was and Regulation SHO while also
distribution to its shareholders based on filed on August 9, 2017, and amended providing quotation adjusting
net asset value. Expenses of $2,463 on August 23, 2017. functionality to its market makers.’’ 8
incurred in connection with the Applicant’s Address: 303 Broadway, IEX also states that market makers will
reorganization were paid by the Suite 1100, Cincinnati, Ohio 45202. have control of order origination, as
applicant and the applicant’s For the Commission, by the Division of required by the Market Access Rule, and
investment adviser. Investment Management, pursuant to retain the ability to make marking and
Filing Dates: The application was delegated authority. locate determinations prior to order
filed on August 4, 2017, and amended Eduardo A. Aleman, entry, as required by Regulation SHO.9
on August 18, 2017. Assistant Secretary. As proposed, the Market Maker Peg
Order will be a one-sided limit order
Applicant’s Address: 4400 Easton [FR Doc. 2017–18453 Filed 8–30–17; 8:45 am]
Commons, Suite 200, Columbus, Ohio BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1).
43219–3035. 2 17 CFR 240.19b–4.
3 See Securities and Exchange Act Release No.
Kalmar Pooled Investment Trust [File SECURITIES AND EXCHANGE 74892 (May 6, 2015), 80 FR 27513 (File No. 4–657).
No. 811–07853] COMMISSION See also Securities and Exchange Act Release No.
Summary: Applicant seeks an order 76382 (November 6, 2015) (File No. 4–657), 80 FR
[Release No. 34–81482; File No. SR–IEX– 70284 (File No. 4–657) (November 13, 2015), which
declaring that it has ceased to be an 2017–22] extended the pilot period commencement date from
investment company. On June 23, 2017, May 6, 2015 to October 3, 2016.
applicant made a liquidating Self-Regulatory Organizations; 4 See Securities Exchange Act Release No. 81078
distribution to its shareholders, based Investors Exchange LLC; Order (July 5, 2017), 82 FR 32026 (‘‘Notice’’).
5 IEX Rule 11.151 requires market makers for each
on net asset value. Expenses of $200,000 Approving a Proposed Rule Change To
sradovich on DSK3GMQ082PROD with NOTICES
stock in which they are registered to continuously
incurred in connection with the Introduce a New Market Maker Peg maintain a two-sided quotation within a designated
liquidation were paid by the applicant. Order percentage of the National Best Bid (‘‘NBB’’) and
Filing Date: The application was filed National Best Offer (‘‘NBO’’).
August 25, 2017. 6 17 CFR 240.15c3–5.
on August 18, 2017. 7 See Notice, supra note 4, at 32027. See also 17
Applicant’s Address: Barley Mill I. Introduction
CFR 242.200 through 204 (Regulation SHO).
House, 3701 Kennett Pike, Wilmington, On June 30, 2017, the Investors 8 See Notice, supra note 4, at 32027.
Delaware 19807. Exchange LLC (‘‘IEX’’ or the 9 See id.
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![41454 Federal Register / Vol. 82, No. 168 / Thursday, August 31, 2017 / Notices
changes during the third quarter of requirements of Rule 203(b)(1) of the SECURITIES AND EXCHANGE
2017.23 Act or any exception thereto. COMMISSION
III. Discussion and Commission The Commission believes that the [Release No. 34–81486; File No. SR–ICC–
Findings Exchange’s proposal to subject all 2017–012]
inbound and outbound communications
After careful review, the Commission Self-Regulatory Organizations; ICE
related to Market Maker Peg Orders,
finds that the proposed rule change is Clear Credit LLC; Notice of Filing of
consistent with the requirements of the including the automatic repricing of
such orders, to POP latency is consistent Proposed Rule Change Relating to
Act and the rules and regulations ICC’s Liquidity Risk Management
thereunder that are applicable to a with the Act. In particular, this
Framework and ICC’s Stress Testing
national securities exchange.24 treatment of the Market Maker Peg
Framework
Specifically, the Commission finds that Order places a market maker using this
the proposed rule change is consistent order type in the same position as August 25, 2017.
with Section 6(b)(5) of the Act,25 which another market maker placing and Pursuant to Section 19(b)(1) of the
requires, among other things, that the updating its own quote directly without Securities Exchange Act of 1934 1 and
rules of a national securities exchange using the Market Maker Peg Order Rule 19b–4,2 notice is hereby given that
be designed to prevent fraudulent and type—both will be subject to the POP on August 22, 2017, ICE Clear Credit
manipulative acts and practices, to and experience the same latency. In LLC (‘‘ICC’’) filed with the Securities
promote just and equitable principles of addition, this approach is consistent and Exchange Commission
trade, to foster cooperation and with the treatment of other displayed (‘‘Commission’’) the proposed rule
coordination with persons engaged in orders on the Exchange, all of which are change described in Items I, II, and III
facilitating transactions in securities, to subject to the POP latency. below, which Items have been primarily
remove impediments to and perfect the prepared by ICC. The Commission is
Further, the Commission believes that publishing this notice to solicit
mechanism of a free and open market
the Exchange’s proposal to specify how comments on the proposed rule change
and a national market system, and, in
Market Maker Peg Orders will be priced from interested persons.
general, to protect investors and the
public interest. The Commission finds in order to comply with the Tick Pilot
I. Clearing Agency’s Statement of the
that the proposed rule change also is Plan is consistent with the Act and Rule
Terms of Substance of the Proposed
designed to support the principles of 608 of Regulation NMS 27 because it
Rule Change
Section 11A(a)(1) 26 of the Act in that it implements the Tick Pilot Plan and
conforms Exchange rules to those The principal purpose of the
seeks to assure fair competition among proposed rule change is to revise the
brokers and dealers and among requirements.28
ICC Liquidity Risk Management
exchange markets. Finally, the Commission notes that Framework and the ICC Stress Testing
The Commission finds that the other national securities exchanges offer Framework. These revisions do not
Exchange’s proposal is consistent with similar order types to the Exchange’s require any changes to the ICC Clearing
the Act because it provides an optional proposed Market Maker Peg Order,29 Rules (‘‘Rules’’).
tool that market makers may use as a and the Commission received no
backstop to help maintain a continuous comments on the Exchange’s proposed II. Clearing Agency’s Statement of the
quote in satisfaction of the Exchange’s Purpose of, and Statutory Basis for, the
rule change.
minimum continuous quoting Proposed Rule Change
requirements, which may assist in the IV. Conclusion In its filing with the Commission, ICC
maintenance of fair and orderly markets. included statements concerning the
The Commission notes, however, that It is therefore ordered, pursuant to
purpose of and basis for the proposed
notwithstanding the availability of the Section 19(b)(2) of the Act,30 that the
rule change and discussed any
Market Maker Peg Order functionality, proposed rule change (SR–IEX–2017– comments it received on the proposed
the market maker remains responsible 22), be and hereby is, approved. rule change. The text of these statements
for meeting its obligations under IEX For the Commission, by the Division of may be examined at the places specified
Rule 11.151, including entering, Trading and Markets, pursuant to delegated in Item IV below. ICC has prepared
monitoring, and re-submitting, as authority.31 summaries, set forth in sections (A), (B),
applicable, compliant quotations. At the Eduardo A. Aleman, and (C) below, of the most significant
same time, the Commission finds that Assistant Secretary. aspects of these statements.
the proposal is reasonably designed to
assist market makers in complying with
[FR Doc. 2017–18455 Filed 8–30–17; 8:45 am] (A) Clearing Agency’s Statement of the
the regulatory requirements of the BILLING CODE 8011–01–P Purpose of, and Statutory Basis for, the
Market Access Rule and Regulation Proposed Rule Change
SHO. The Commission notes, however, (a) Purpose
the Market Maker Peg Order does not by ICC proposes revisions to its Stress
itself ensure that the market maker is Testing Framework and its Liquidity
satisfying the requirements of the Risk Management Framework.
Market Access Rule or Regulation SHO, Specifically, ICC proposes changes to
27 17 CFR 242.608.
including the satisfaction of the locate
sradovich on DSK3GMQ082PROD with NOTICES
28 The Commission notes that in this regard IEX’s
enhance ICC’s stress testing and
proposal is substantially similar to Bats BZX liquidity stress testing practices
23 See id. at 32029.
Exchange, Inc. (‘‘Bats’’) Rule 11.27(c)(5). following the clearing of Single Name
24 In approving this rule change, the Commission
has considered the rule’s impact on efficiency,
29 See, e.g., Bats Rule 11.9(c)(16), Nasdaq Stock (‘‘SN’’) credit default swaps (‘‘CDS’’)
competition, and capital formation. See 15 U.S.C. Market LLC Rule 4702(b)(7), and Bats EDGX referencing ICC Clearing Participants
78c(f). Exchange, Inc. Rule 11.8(e).
25 15 U.S.C. 78f(b)(5). 30 15 U.S.C. 78s(b)(2). 1 15 U.S.C. 78s(b)(1).
26 15 U.S.C. 78k–1(a)(1). 31 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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Document Created: 2017-09-23 10:08:23
Document Modified: 2017-09-23 10:08:23
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 41452 |
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