83 FR 1084 - Joint Industry Plan; Notice of Filing and Immediate Effectiveness of the Forty-First Amendment to the Joint Self-Regulatory Organization Plan Governing the Collection, Consolidation and Dissemination of Quotation and Transaction Information for Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading Privileges Basis
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 6 (January 9, 2018)
Federal Register Volume 83, Issue 6 (January 9, 2018)
| Page Range | 1084-1087 | |
| FR Document | 2018-00168 |
[Federal Register Volume 83, Number 6 (Tuesday, January 9, 2018)] [Notices] [Pages 1084-1087] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-00168] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82440; File No. S7-24-89] Joint Industry Plan; Notice of Filing and Immediate Effectiveness of the Forty-First Amendment to the Joint Self-Regulatory Organization Plan Governing the Collection, Consolidation and Dissemination of Quotation and Transaction Information for Nasdaq-Listed Securities Traded on Exchanges on an Unlisted Trading Privileges Basis January 3, 2018. Pursuant to Section 11A of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 608 thereunder,\2\ notice is hereby given that on December 14, 2017, the Participants \3\ in the Joint Self-Regulatory Organization Plan Governing the Collection, Consolidation and Dissemination of Quotation and Transaction Information for Nasdaq- Listed Securities Traded on Exchanges on an Unlisted Trading Privileges Basis (``NASDAQ/UTP Plan'' or ``Plan'') filed with the Securities and Exchange Commission (``Commission'') a proposal to amend the NASDAQ/UTP Plan.\4\ The amendment is the 41st Amendment to the NASDAQ/UTP Plan (``Amendment'').\5\ --------------------------------------------------------------------------- \1\ 15 U.S.C. 78k-1. \2\ 17 CFR 242.608. \3\ The Participants are: Cboe BYX Exchange, Inc.; Cboe BZX Exchange, Inc.; Cboe EDGA Exchange, Inc.; Cboe EDGX Exchange, Inc.; Cboe Exchange, Inc.; Chicago Stock Exchange, Inc.; Financial Industry Regulatory Authority, Inc.; Investors Exchange LLC; Nasdaq BX, Inc.; Nasdaq ISE, LLC; Nasdaq PHLX LLC; The Nasdaq Stock Market LLC; New York Stock Exchange LLC; NYSE Arca, Inc.; NYSE American LLC; and NYSE National, Inc. (collectively, the ``Participants''). \4\ The Plan governs the collection, processing, and dissemination on a consolidated basis of quotation information and transaction reports in Eligible Securities for each of its Participants. This consolidated information informs investors of the current quotation and recent trade prices of Nasdaq securities. It enables investors to ascertain from one data source the current prices in all the markets trading Nasdaq securities. The Plan serves as the required transaction reporting plan for its Participants, which is a prerequisite for their trading Eligible Securities. See Securities Exchange Act Release No. 55647 (April 19, 2007), 72 FR 20891 (April 26, 2007). \5\ See Letter from Emily Kasparov to Brent J. Fields, Secretary, Commission, dated December 13, 2017 (``Transmittal Letter''). --------------------------------------------------------------------------- The Amendment proposes to modify the text of the fee schedule of the Plan to adopt a ``Multiple Instance, Single User'' (``MISU'') Program that aligns with the MISU Program used by the CTA and CQ Plans. As explained in greater detail below, the Participants state that the Amendment moves towards harmonizing the fees under the Plan with the fees under the CTA and [[Page 1085]] CQ Plan, thereby reducing the administrative burden on subscriber firms. Currently, the Plan has in place a net reporting option for the professional subscriber fee, known as the ``Net Reporting Program.'' \6\ The Net Reporting Program allows a firm to report only a single device in cases where the firm provides market data to an employee on multiple internally-controlled, fee-liable devices. The Net Reporting Program, however, is only available for internal devices with respect to which the firm controls access to market data and not for external devices for which a vendor (and not the firm) controls access to market data. The proposed adoption of the MISU Program would eliminate this restriction and allow firms to provide a net reporting option that includes both internal devices with respect to which the firm controls access to market data as well as external devices for which another vendor controls access to market data. --------------------------------------------------------------------------- \6\ See infra note 8 and accompanying text. --------------------------------------------------------------------------- According to the Participants, because the adoption of the MISU Program will result in more netting of devices than currently exists under the Net Reporting Program, the Plan expects that the number of devices being reported will decrease. Therefore, to make the adoption of the MISU Program revenue neutral, the Participants are proposing an increase in the professional subscriber device fee from $22 to $24, regardless of whether or not a professional subscriber opts for the MISU program. A description of the Plan's expectations with regards to the decrease in the number of reported devices, and calculations regarding the revenue neutral aspect of the proposed amendment is described in greater detail below. Pursuant to Rule 608(b)(3)(i) under Regulation NMS,\7\ the Participants designate the Amendment as establishing or changing a fee or other charge collected on behalf of the Participants in connection with access to, or use of, any facility contemplated by the Nasdaq/UTP Plan and are submitting the amendment for immediate effectiveness. --------------------------------------------------------------------------- \7\ 17 CFR 242.608(b)(3)(i). --------------------------------------------------------------------------- The Commission is publishing this notice to solicit comments from interested persons on the Amendment. Set forth in Sections I and II is the statement of the purpose and summary of the Amendments, along with the information required by Rules 608(a) and 601(a) under the Act, prepared and submitted by the Participants to the Commission. I. Rule 608(a) A. Purpose of the Amendment 1. Background In April 2013, the Plan adopted the Net Reporting Program for professional subscriber device fees.\8\ If a firm complied with the requirements of the Net Reporting Program, this option permitted the firm to report only a single device in cases where the firm provided market data to an employee on multiple internally-controlled, fee- liable devices. That is, only a single device fee would apply with respect to that firm's provision of market data to that person, even though he or she receives data on multiple devices. At that time, the Net Reporting Program was made available solely for internally- controlled devices with respect to which the firm controlled access to market data and not for external devices for which a vendor (and not the firm) controlled access to market data (``vendor-controlled terminals''). --------------------------------------------------------------------------- \8\ See Securities Exchange Act Release No. 69361 (Apr. 10, 2013), 78 FR 22588 (Apr. 16, 2013). --------------------------------------------------------------------------- The rationale for not including vendor-controlled terminals in the Net Reporting Program was because of the Plan's indirect billing model and the associated administrative burden of including the vendor- controlled terminals in the Net Reporting Program under the indirect billing model. Under the CTA and CQ Plans, Network A and Network B administrators bill end users directly, and as a result, did not face similar administrative burdens for including vendor-controlled terminals. Therefore, the CTA and CQ Plans follow a MISU Program, which allows vendor-controlled terminals to be netted with internally- controlled devices. The CTA's and CQ's MISU Programs allow subscriber firms to reduce the number of professional subscriber devices being reported for that particular subscriber. As the name suggests, it allows the subscriber firm to be charged a single fee when an employee is accessing market data on multiple devices. A subscriber firm not opting for the MISU Program is required to pay a device fee for each device accessed by an employee. To be included in the CTA's and CQ's MISU Programs, the subscriber firm is required to comply with a number of requirements designed to ensure that the Network A and Network B market data administrator is able to properly account for the multiple devices being used by a single user. 2. Harmonization of CTA/CQ's and UTP's MISU Programs The Plan is proposing to adopt a MISU Program that allows subscriber firms to report usage in a manner consistent with the CTA and CQ Plans.\9\ Specifically, the Plan's proposed MISU Program would allow subscriber firms to net vendor-controlled terminals with internally-controlled devices. --------------------------------------------------------------------------- \9\ The Plan would still allow subscriber firms to take advantage of the Net Reporting Program rather than the MISU program if they so choose. --------------------------------------------------------------------------- As an example, consider a subscriber firm that has an employee who accesses market data on two separate internally-controlled devices, as well as two vendor-controlled terminals. Under the Net Reporting Program, that subscriber firm would report three devices for the employee: The two separate internally-controlled devices would be netted to be counted as one device, and the two vendor-controlled terminals would be separately counted. However, under the proposed MISU Program, the subscriber firm would report a single device for the employee because both vendor-controlled terminals could be netted with the internally-controlled devices. To take advantage of the MISU Program, subscriber firms must comply with certain requirements that will be set forth in an updated Data Policy document.\10\ First, such subscriber firms must submit application documentation, including a sample MISU report to demonstrate their ability to comply with the reporting requirements. Additionally, such subscriber firms must demonstrate internal controls for entitlements, monitoring, and usage reporting requirements. After the application documentation and internal controls are verified, the subscriber firm will receive an approval letter confirming acceptance into the MISU Program. Once accepted to the MISU Program, the subscriber firm will have continuing obligations related to reporting that will ensure the UTP Administrator is able to properly calculate credit under the MISU Program. Such reporting obligations will be detailed in the Data Policy document made available via the UTP website. --------------------------------------------------------------------------- \10\ The Plan's Data Policies can be found online at http://utpplan.com/DOC/Datapolicies.pdf. --------------------------------------------------------------------------- 3. Revenue Neutral Implementation of MISU Program The purpose of this amendment is to harmonize the CQ/CTA Plans and the Plan and reduce administrative burdens for subscriber firms--the purpose of the amendment is not intended to increase or decrease Plan revenue. As a result of [[Page 1086]] the MISU Program, however, subscriber firms will be able to net certain devices such that the total number of devices being reported will decrease. Therefore, to remain revenue neutral, the Plan is proposing an increase in the professional subscriber device fee from $22 to $24. As described in more detail below, the Plan has determined, based on past experience, that an increase of the professional subscriber device fee to $24 will offset revenue losses resulting from a decrease in the number of devices due to increased netting as well as natural price attrition. B. Governing or Constituent Documents Not applicable. C. Implementation of the Amendments Pursuant to Rule 608(b)(3)(i) under Regulation NMS, the Participants have designated the proposed amendment as establishing or changing fees and are submitting the amendment for immediate effectiveness. However, to effectuate the MISU Program, certain reporting systems will need to be developed to accommodate the reports that subscriber firms are required to file under the MISU Program. Therefore, the MISU Program and associated fee increase will be implemented after development of necessary systems. The Plan will announce the planned implementation date, and expects to be able to proceed with the MISU Program during the first quarter of 2018. D. Development and Implementation Phases See Item I.C. above. E. Analysis of Impact on Competition The proposed amendments do not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Securities Exchange Act of 1934. The proposed adoption of the MISU Program will reduce the administrative burden placed on subscriber firms by harmonizing the approach to netting available under the CQ/CTA Plans and the Plan. The Plan has consulted with subscriber firms who have expressed overwhelming support for the harmonization detailed herein. As a result, the proposed adoption of the MISU Program would promote consistency in market data administration among the national market system plans and make market data fees easier to administer for subscriber firms. Additionally, while the adoption of the MISU Program will include a fee increase, such fee increase is necessary to ensure that the adoption of the MISU Program remains revenue neutral. As described below, the Plan has based the fee increase on experience with netting under the CQ/CTA Plans as well as natural price attrition. F. Written Understanding or Agreements Relating to Interpretation of, or Participation in, Plan Not applicable. G. Approval by Sponsors in Accordance With Plan See Item I.C. above. H. Description of Operation of Facility Contemplated by the Proposed Amendments Not applicable. I. Terms and Conditions of Access Not applicable. J. Method of Determination and Imposition, and Amount of, Fees and Charges The Participants proposed to increase the professional subscriber device fee from $22 to $24 after performing an analysis to adopt a revenue-neutral MISU Program. The adoption of the MISU Program is designed to reduce administrative burdens on subscriber firms by harmonizing the various market data plans. The fee changes are designed to ensure that the MISU Program has a negligible effect on Plan revenue. In determining the necessary fee increase to achieve revenue neutrality, the Participants reviewed two aspects of the adoption of the MISU Program that would result in decreased revenue: (1) An increase in the netting of devices and (2) natural price attrition. First, as previously explained, the MISU Program will allow subscriber firms to net internally controlled devices with vendor- controlled terminals. For example, consider a subscriber firm who has an employee who accesses market data on two separate internal devices, as well as two vendor-controlled terminals. Under the current Net Reporting Program, that subscriber firm would report three devices for the employee: The two separate internal devices would be netted to be counted as one device, and the two vendor-controlled terminals would be separately counted. However, under the proposed MISU Program, the subscriber firm would report a single device for the employee because the internally-controlled devices can be netted with both vendor- controlled terminals. Because of this additional netting, the number of devices, and therefore the amount of revenue collected, would decrease. Therefore, to remain revenue neutral, the fee would need to be increased by an amount that is proportional to the projected decrease in the number of professional subscriber devices being reported. Experience under the CTA Plan has demonstrated that the current MISU Program already in place currently results in a loss of 3.5% of the total number of professional subscriber devices due to netting of multiple terminals.\11\ However, because the MISU Program will now be available under all three market data plans, the Participants believe that a larger percentage (5%) of netting will occur because it is more likely the benefits of being able to take advantage of the MISU Programs under all three market data plans outweighs the costs of complying with the MISU Program. As a result, more subscriber firms will find it economically beneficial to take advantage of the MISU Program. --------------------------------------------------------------------------- \11\ Due to the reporting requirements under the CTA's MISU Program, it is possible to calculate the amount of netting that currently occurs and the effects of that netting on the total number of professional subscriber devices. --------------------------------------------------------------------------- Second, whenever there is a market data fee price increase, the Plan experiences natural price attrition whereby subscriber firms cancel their subscriptions simply because of the price increases. The Participants analyzed potential attrition based on the actual effect of past price increases for Tapes A and B. Specifically, the Participants looked at attrition rates of 3% and 5% as a result of the proposed professional subscriber device fee increase. Using these two inputs based on experience (projected netting rates and attrition rates), the Participants determined that an increase of the professional subscriber device fee to $24 was likely to result in a revenue neutral adoption of the MISU Program. In particular, a natural price attrition rate of 3-5% and a netting increase of 5% would result in a decrease in revenue of 8-10%. Therefore, the Participants decided to propose the increase of the professional subscriber device fee from $22 to $24 (an increase of 9%) as a reasoned approach to ensuring that the adoption of the MISU Program by the Plan would remain revenue neutral. K. Method and Frequency of Processor Evaluation Not applicable. L. Dispute Resolution Not applicable. [[Page 1087]] II. Rule 601(a) A. Equity Securities for Which Transaction Reports Shall Be Required by the Plan Not applicable. B. Reporting Requirements Not applicable. C. Manner of Collecting, Processing, Sequencing, Making Available and Disseminating Last Sale Information Not applicable. D. Manner of Consolidation Not applicable. E. Standards and Methods Ensuring Promptness, Accuracy and Completeness of Transaction Reports Not applicable. F. Rules and Procedures Addressed to Fraudulent or Manipulative Dissemination Not applicable. G. Terms of Access to Transaction Reports Not applicable. H. Identification of Marketplace of Execution Not applicable. III. Solicitation of Comments The Commission seeks comment on the Amendment. In particular, the Commission seeks comment on, among other things: (1) Whether the effect on revenue would be neutral as represented by the Participants given that there will be an increase in the professional subscriber device fee; and (2) whether the process subscribers must follow and the requirements that subscribers must comply with to take advantage of the MISU Program, are transparent, objective, and subject to fair and non- discriminatory application. Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed Amendment 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 S7-24-89 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number File No. S7-24-89. 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 website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all written statements with respect to the proposed Amendment that are filed with the Commission, and all written communications relating to the proposed Amendment between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the Amendment also will be available for website viewing and printing at the principal office of the Plan. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number S7-24-89 and should be submitted on or before January 30, 2018. By the Commission. Brent J. Fields, Secretary. [FR Doc. 2018-00168 Filed 1-8-18; 8:45 am] BILLING CODE 8011-01-P
![1084 Federal Register / Vol. 83, No. 6 / Tuesday, January 9, 2018 / Notices
condition will be considered a Co- as the case may be, in such Co- SECURITIES AND EXCHANGE
Investment Transaction for all purposes Investment Transaction. If any COMMISSION
and be subject to the other conditions transaction fee is to be held by a [Release No. 34–82440; File No. S7–24–89]
set forth in the application. Guggenheim Adviser pending
9. The Independent Trustees of each consummation of the transaction, the Joint Industry Plan; Notice of Filing
Regulated Entity will be provided fee will be deposited into an account and Immediate Effectiveness of the
quarterly for review all information maintained by the Guggenheim Adviser Forty-First Amendment to the Joint
concerning Potential Co-Investment at a bank or banks having the Self-Regulatory Organization Plan
Transactions and Co-Investment qualifications prescribed in section Governing the Collection,
Transactions, including investments 26(a)(1) of the Act, and the account will Consolidation and Dissemination of
made by other Regulated Entities or earn a competitive rate of interest that Quotation and Transaction Information
Affiliated Investors that a Regulated for Nasdaq-Listed Securities Traded on
will also be divided pro rata among the
Entity considered but declined to Exchanges on an Unlisted Trading
participating Regulated Entities and
participate in, so that the Independent Privileges Basis
Trustees may determine whether all Affiliated Investors based on the amount
investments made during the preceding they invest in the Co-Investment January 3, 2018.
quarter, including those investments Transaction. None of the other Pursuant to Section 11A of the
which the Regulated Entity considered Regulated Entities, Affiliated Investors, Securities Exchange Act of 1934
but declined to participate in, comply the Guggenheim Advisers nor any (‘‘Act’’),1 and Rule 608 thereunder,2
with the conditions of the Order. In affiliated person of the Regulated notice is hereby given that on December
addition, the Independent Trustees will Entities or the Affiliated Investors will 14, 2017, the Participants 3 in the Joint
consider at least annually the continued receive additional compensation or Self-Regulatory Organization Plan
appropriateness for such Regulated remuneration of any kind as a result of Governing the Collection, Consolidation
Entity of participating in new and or in connection with a Co-Investment and Dissemination of Quotation and
existing Co-Investment Transactions. Transaction (other than (a) in the case Transaction Information for Nasdaq-
10. Each Regulated Entity will of the Regulated Entities and the Listed Securities Traded on Exchanges
maintain the records required by section Affiliated Investors, the pro rata on an Unlisted Trading Privileges Basis
57(f)(3) of the Act as if each of the transaction fees described above and (‘‘NASDAQ/UTP Plan’’ or ‘‘Plan’’) filed
Regulated Entities were a BDC and each fees or other compensation described in with the Securities and Exchange
of the investments permitted under condition 2(c)(iii)(c) and (b) in the case Commission (‘‘Commission’’) a proposal
these conditions were approved by a to amend the NASDAQ/UTP Plan.4 The
of the Guggenheim Advisers, investment
Required Majority under section 57(f). amendment is the 41st Amendment to
advisory fees paid in accordance with the NASDAQ/UTP Plan
11. No Independent Trustee of a the Regulated Entities’ and the
Regulated Entity will also be a trustee, (‘‘Amendment’’).5
Affiliated Investors’ investment The Amendment proposes to modify
director, general partner, managing advisory agreements).
member or principal, or otherwise an the text of the fee schedule of the Plan
‘‘affiliated person’’ (as defined in the 14. If the Holders own in the aggregate to adopt a ‘‘Multiple Instance, Single
Act) of any Affiliated Investor. more than 25 percent of the shares of a User’’ (‘‘MISU’’) Program that aligns
12. The expenses, if any, associated Regulated Entity, then the Holders will with the MISU Program used by the
with acquiring, holding or disposing of vote such shares as directed by an CTA and CQ Plans. As explained in
any securities acquired in a Co- independent third party when voting on greater detail below, the Participants
Investment Transaction (including, (1) the election of directors or trustees; state that the Amendment moves
without limitation, the expenses of the (2) the removal of one or more directors towards harmonizing the fees under the
distribution of any such securities Plan with the fees under the CTA and
or trustees; or (3) any matters requiring
registered for sale under the Securities approval by the vote of a majority of the 1 15 U.S.C. 78k–1.
Act) shall, to the extent not payable by outstanding voting securities, as defined 2 17 CFR 242.608.
the Guggenheim Advisers under their in section 2(a)(42) of the Act. 3 The Participants are: Cboe BYX Exchange, Inc.;
respective advisory agreements with the Cboe BZX Exchange, Inc.; Cboe EDGA Exchange,
15. Each Regulated Entity’s chief
Regulated Entities and the Affiliated Inc.; Cboe EDGX Exchange, Inc.; Cboe Exchange,
compliance officer, as defined in Rule Inc.; Chicago Stock Exchange, Inc.; Financial
Investors, be shared by the Regulated
Entities and the Affiliated Investors in 38a–1(a)(4), will prepare an annual Industry Regulatory Authority, Inc.; Investors
report for its Board that evaluates (and Exchange LLC; Nasdaq BX, Inc.; Nasdaq ISE, LLC;
proportion to the relative amounts of the Nasdaq PHLX LLC; The Nasdaq Stock Market LLC;
securities held or to be acquired or documents the basis of that evaluation) New York Stock Exchange LLC; NYSE Arca, Inc.;
disposed of, as the case may be. the Regulated Entity’s compliance with NYSE American LLC; and NYSE National, Inc.
the terms and conditions of the (collectively, the ‘‘Participants’’).
13. Any transaction fee (including 4 The Plan governs the collection, processing, and
break-up or commitment fees but application and the procedures dissemination on a consolidated basis of quotation
excluding brokers’ fees contemplated by established to achieve such compliance. information and transaction reports in Eligible
section 17(e) or 57(k) of the Act, as Securities for each of its Participants. This
For the Commission, by the Division of
consolidated information informs investors of the
applicable) 14 received in connection Investment Management, under delegated current quotation and recent trade prices of Nasdaq
with a Co-Investment Transaction will authority. securities. It enables investors to ascertain from one
be distributed to the participating data source the current prices in all the markets
sradovich on DSK3GMQ082PROD with NOTICES
Eduardo A. Aleman,
Regulated Entities and Affiliated trading Nasdaq securities. The Plan serves as the
Assistant Secretary. required transaction reporting plan for its
Investors on a pro rata basis based on Participants, which is a prerequisite for their
[FR Doc. 2018–00162 Filed 1–8–18; 8:45 am]
the amount they invested or committed, trading Eligible Securities. See Securities Exchange
BILLING CODE 8011–01–P Act Release No. 55647 (April 19, 2007), 72 FR
14 Applicants are not requesting and the 20891 (April 26, 2007).
Commission is not providing any relief for 5 See Letter from Emily Kasparov to Brent J.
transaction fees received in connection with any Fields, Secretary, Commission, dated December 13,
Co-Investment Transaction. 2017 (‘‘Transmittal Letter’’).
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![Federal Register / Vol. 83, No. 6 / Tuesday, January 9, 2018 / Notices 1087
II. Rule 601(a) and Exchange Commission, 100 F Street (‘‘IEX’’ or the ‘‘Exchange’’) filed with the
NE, Washington, DC 20549–1090. Securities and Exchange Commission
A. Equity Securities for Which
All submissions should refer to File (the ‘‘Commission’’) the proposed rule
Transaction Reports Shall Be Required
Number File No. S7–24–89. This file change as described in Items I, II and III
by the Plan
number should be included on the below, which Items have been prepared
Not applicable. subject line if email is used. To help the by the self-regulatory organization. The
Commission process and review your Commission is publishing this notice to
B. Reporting Requirements
comments more efficiently, please use solicit comments on the proposed rule
Not applicable. only one method. The Commission will change from interested persons.
C. Manner of Collecting, Processing, post all comments on the Commission’s I. Self-Regulatory Organization’s
Sequencing, Making Available and website (http://www.sec.gov/rules/ Statement of the Terms of Substance of
Disseminating Last Sale Information sro.shtml). Copies of the submission, all the Proposed Rule Change
written statements with respect to the
Not applicable. proposed Amendment that are filed Pursuant to the provisions of Section
with the Commission, and all written 19(b)(1) under the Securities Exchange
D. Manner of Consolidation
communications relating to the Act of 1934 (‘‘Act’’),4 and Rule 19b–4
Not applicable. proposed Amendment between the thereunder,5 Investors Exchange LLC
Commission and any person, other than (‘‘IEX’’ or ‘‘Exchange’’) is filing with the
E. Standards and Methods Ensuring
those that may be withheld from the Commission a proposed rule change to
Promptness, Accuracy and
public in accordance with the amend Rule 11.380 to clarify that the
Completeness of Transaction Reports
provisions of 5 U.S.C. 552, will be optional IEX Aggregate Risk Controls
Not applicable. (‘‘ARC’’) mechanism will not cancel
available for website viewing and
F. Rules and Procedures Addressed to printing in the Commission’s Public certain orders eligible for execution in
Fraudulent or Manipulative Reference Room on official business the Opening or Closing Auction after the
Dissemination days between the hours of 10:00 a.m. applicable Lock-in Time and before the
and 3:00 p.m. Copies of the Amendment Opening or Closing Auction match,
Not applicable. respectively.6 The Exchange has
also will be available for website
G. Terms of Access to Transaction viewing and printing at the principal designated this rule change as non-
Reports office of the Plan. All comments controversial under Section 19(b)(3)(A)
received will be posted without change. of the Act 7 and provided the
Not applicable. Commission with the notice required by
Persons submitting comments are
H. Identification of Marketplace of cautioned that we do not redact or edit Rule 19b–4(f)(6)(iii) thereunder.8 The
Execution personal identifying information from text of the proposed rule change is
comment submissions. You should available at the Exchange’s website at
Not applicable. www.iextrading.com, at the principal
submit only information that you wish
III. Solicitation of Comments to make available publicly. All office of the Exchange, and at the
submissions should refer to File Commission’s Public Reference Room.
The Commission seeks comment on
the Amendment. In particular, the Number S7–24–89 and should be II. Self-Regulatory Organization’s
Commission seeks comment on, among submitted on or before January 30, 2018. Statement of the Purpose of, and
other things: (1) Whether the effect on By the Commission. Statutory Basis for, the Proposed Rule
revenue would be neutral as represented Brent J. Fields, Change
by the Participants given that there will Secretary. In its filing with the Commission, the
be an increase in the professional [FR Doc. 2018–00168 Filed 1–8–18; 8:45 am] self-regulatory organization included
subscriber device fee; and (2) whether statements concerning the purpose of
BILLING CODE 8011–01–P
the process subscribers must follow and and basis for the proposed rule change
the requirements that subscribers must and discussed any comments it received
comply with to take advantage of the SECURITIES AND EXCHANGE on the proposed rule change. The text
MISU Program, are transparent, COMMISSION of these statement may be examined at
objective, and subject to fair and non- the places specified in Item IV below.
discriminatory application. Interested [Release No. 34–82435; File No. SR–IEX–
2017–44]
The self-regulatory organization has
persons are invited to submit written prepared summaries, set forth in
data, views, and arguments concerning Sections A, B, and C below, of the most
Self-Regulatory Organizations;
the foregoing, including whether the significant aspects of such statements.
Investors Exchange LLC; Notice of
proposed Amendment is consistent with
Filing and Immediate Effectiveness of A. Self-Regulatory Organization’s
the Act. Comments may be submitted by
Proposed Rule Change Related to the Statement of the Purpose of, and the
any of the following methods:
Optional IEX Aggregate Risk Controls Statutory Basis for, the Proposed Rule
Electronic Comments Mechanism Change
• Use the Commission’s internet January 3, 2018. 1. Purpose
comment form (http://www.sec.gov/ Pursuant to Section 19(b)(1) 1 of the The purpose of this proposed rule
sradovich on DSK3GMQ082PROD with NOTICES
rules/sro.shtml); or Securities Exchange Act of 1934 (the
• Send an email to rule-comments@ change is to amend Rule 11.380 (Risk
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
sec.gov. Please include File Number S7– notice is hereby given that, on December 4 15U.S.C. 78s(b)(1).
24–89 on the subject line. 22, 2017, the Investors Exchange LLC 5 17CFR 240.19b–4.
6 See Rules 11.350(c) and (d), governing the IEX
Paper Comments 1 15 U.S.C. 78s(b)(1). Opening and Closing Auction, respectively.
• Send paper comments in triplicate 2 15 U.S.C. 78a. 7 15 U.S.C. 78s(b)(3)(A).
to Brent J. Fields, Secretary, Securities 3 17 CFR 240.19b–4. 8 17 CFR 240.19b–4(f)(6)(iii).
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Document Created: 2018-01-09 02:18:37
Document Modified: 2018-01-09 02:18:37
| Category | Regulatory Information | |
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| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
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