Notice2024-13958
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Fee Schedule Pursuant to IEX Rule 15.110(a) and (c)
Primary source
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Published
June 26, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 123 (Wednesday, June 26, 2024)</title>
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[Federal Register Volume 89, Number 123 (Wednesday, June 26, 2024)]
[Notices]
[Pages 53468-53470]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-13958]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100391; File No. SR-IEX-2024-12]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Fee Schedule Pursuant to IEX Rule 15.110(a) and (c)
June 20, 2024.
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 June 12, 2024, 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, II,
and III below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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[[Page 53469]]
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 Act,\4\
and Rule 19b-4 thereunder,\5\ the Exchange is filing with the
Commission a proposed rule change to amend the Exchange's fee schedule
applicable to Members \6\ (the ``Fee Schedule'') pursuant to IEX Rule
15.110(a) and (c) to clarify the fees associated with two fee code
combinations. Changes to the Fee Schedule pursuant to this proposal are
effective upon filing.\7\
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\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ See IEX Rule 1.160(s).
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
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The text of the proposed rule change is available at the Exchange's
website at <a href="http://www.iextrading.com">www.iextrading.com</a>, at the principal office of the Exchange,
and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange recently filed a fee change proposal that increased
the rebate paid for executions of displayed liquidity adding orders in
Tape A and C securities with an execution price of $1.00 per share or
more from $0.0004 to $0.0014 per share, increased the fee for
executions of displayed liquidity removing orders in Tape A or C
securities from $0.0010 to $0.0020 per share (unless a lower fee
applies), and updated the fee codes in the Fee Schedule to reflect
these changes.\8\ The Tape A & C Fee Filing took effect on June 1,
2024.\9\
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\8\ See Securities Exchange Act Release No. 100257 (May 31,
2024), 89 FR 48458 (June 6, 2024) (SR-IEX-2024-09) (``Tape A & C Fee
Filing''). All of the fee changes in the Tape A & C Filing, and in
this fee filing, apply to transactions with an execution price of
$1.00 per share or more.
\9\ See supra note 8.
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The Tape A & C Fee Filing updated all the relevant fee code
combinations in the Fee Code Combinations and Associated Fees table of
the Transaction Fees section of the Fee Schedule. In particular, the
filing updated Fee Code Combination ``ML'', which applies to an order
that adds displayed liquidity in a Tape A or C security, to raise the
rebate from $0.0004 to $0.0014 per share. And the filing updated Fee
Code Combination ``TL'', which applies to an order that removes
displayed liquidity in a Tape A or C security, to raise the fee from
$0.0010 per share to $0.0020 per share.
Fee codes ML and TL also appear in the ``Base Rates'' table in the
Transaction Fees section of the Fee Schedule, where they still reflect
the prior fees for adding and removing displayed liquidity in Tape A
and C securities (a $0.0004 rebate and $0.0010 fee respectively).
However, the Fee Schedule specifies that the rates ``listed in the Base
Rates table apply unless a Member's transaction is assigned a Fee Code
other than a Base Fee Code (an ``Additional Fee Code''). If a Member's
transaction is assigned an Additional Fee Code, the rates listed in the
Fee Code Combinations and Associated Fees table will apply.'' \10\
Because both Fee Codes ML and TL appear in the Fee Code Combinations
and Associated Fees table, the fees listed in that table apply to any
order assigned those fee codes, and therefore, any order with Fee Code
Combination ML will receive a rebate of $0.0014 per share and any order
with Fee Code Combination TL will be charged a fee of $0.0020 per
share.
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\10\ See the third instruction bullet in the Transaction Fees
section of the IEX Fee Schedule, available at <a href="https://www.iexexchange.io/resources/trading/fee-schedule#transaction-fees">https://www.iexexchange.io/resources/trading/fee-schedule#transaction-fees</a>.
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Nevertheless, as of June 1, 2024, the fees listed in the Base Rates
table for Base Fee Codes ML and TL are no longer correct, and IEX is
making this filing to update and clarify the fees listed in the Base
Rates table to make them consistent with the fees listed in the Fee
Code Combinations and Associated Fees table and avoid any confusion
regarding the applicable fees. Specifically, IEX proposes to change the
Base Rate for Base Fee Code ML for executions at or above $1.00 from a
$0.0004 rebate to a $0.0014 rebate. And IEX proposes to change the Base
Rate for Base Fee Code TL for executions at or above $1.00 from a fee
of $0.0010 per share to a fee of $0.0020 per share.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\11\ in general, and furthers the
objectives of section 6(b)(5),\12\ in particular, in that it would
remove impediments to and perfect the mechanism of a free and open
market and a national market system because it is designed to enforce
compliance by the Exchange's Members and the public with the provisions
of the rules of the Exchange. In particular, the Exchange believes that
the proposed rule change will provide greater clarity to Members and
the public regarding the fees charged by the Exchange by eliminating
any possible confusion caused by the inadvertent discrepancy between
the fees listed for codes ML and TL in the Base Rates table and the
fees listed for codes ML and TL in the Fee Code Combinations and
Associated Fees table.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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This rule filing does not propose any substantive changes to the
fees the Exchange charges, but rather simply clarifies the base rebates
and fees for adding and removing displayed liquidity. Therefore, the
Exchange does not believe that these proposed changes raise any new or
novel issues not already considered by the Commission. IEX also
believes that the proposed rule change is nondiscriminatory since it
charges the same fees for Fee Code Combinations ML and TL to all
Members.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. As described in the Purpose,
this rule filing merely proposes to clarify the fees associated with
Base Fee Codes ML and TL. This proposal is not designed to address any
competitive issues. Because the proposal does not substantively modify
system functionality or processes on the Exchange, the proposed changes
will not impose any burden on competition.
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.
[[Page 53470]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to section
19(b)(3)(A)(ii) \13\ of the Act.
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\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
section 19(b)(2)(B) \14\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\14\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#83f1f6efe6aee0eceeeee6edf7f0c3f0e6e0ade4ecf5"><span class="__cf_email__" data-cfemail="abd9dec7ce86c8c4c6c6cec5dfd8ebd8cec885ccc4dd">[email protected]</span></a>. Please include
file number SR-IEX-2024-12 on the subject line.
Paper Comments
<bullet> 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-2024-12. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). 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 website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-IEX-2024-12 and should be
submitted on or before July 17, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-13958 Filed 6-25-24; 8:45 am]
BILLING CODE 8011-01-P
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