Notice2024-28539
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Provide that DEEP+ Data Will Be Included in the Exchange's HIST Data Product
Primary source
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Published
December 6, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 235 (Friday, December 6, 2024)</title>
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[Federal Register Volume 89, Number 235 (Friday, December 6, 2024)]
[Notices]
[Pages 97125-97127]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28539]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101782; File No. SR-IEX-2024-27]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Provide
that DEEP+ Data Will Be Included in the Exchange's HIST Data Product
December 2, 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 November 27, 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
and II 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 97126]]
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 provide that DEEP+ data will be
included in its HIST \6\ Data Product. The Exchange has designated this
rule change as ``non-controversial'' under Section 19(b)(3)(A) of the
Act \7\ and provided the Commission with the notice required by Rule
19b-4(f)(6) thereunder.\8\
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\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ See IEX Rule 11.330(a)(5).
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4.
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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 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 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is making this filing to provide that DEEP+ data will
be included in its HIST Data Product.
IEX introduced HIST in 2017.\9\ HIST is ``a data product that
offers historical data.'' \10\ At the time IEX introduced HIST, the
Exchange offered two real-time data products: TOPS,\11\ an uncompressed
data feed that offers aggregated top of book quotations for all
displayed orders resting on the Order Book; and DEEP,\12\ an
uncompressed data feed that provides aggregated depth of book
quotations for all displayed orders resting on the Order Book at each
price level.\13\ Thus, in the 2017 filing to adopt HIST, IEX described
HIST as including ``the same substantive data that is provided in real
time via TOPS and DEEP on a T+1 basis via the Exchange's public
website, free of charge.'' \14\
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\9\ See Securities Exchange Act Release No. 80845 (June 1,
2017), 82 FR 26552 (June 6, 2017) (SR-IEX-2017-19).
\10\ See IEX Rule 11.330(a)(5).
\11\ See IEX Rule 11.330(a)(1).
\12\ See IEX Rule 11.330(a)(2).
\13\ TOPS and DEEP also include execution information (i.e.,
last sale information) for executions on the Exchange and IEX
Auction information for any IEX-listed securities. See IEX Rule
11.330(a)(1) and (2).
\14\ See supra note 9. HIST files are posted to the IEX website
after the close of trading and can be accessed at <a href="https://iextrading.com/trading/market-data/#hist-download">https://iextrading.com/trading/market-data/#hist-download</a>.
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IEX recently filed an immediately effective rule change proposal to
introduce a new data product, DEEP+, which will disseminate, on a real-
time basis, order-by-order information for all displayed orders resting
on the Order Book for securities traded on IEX and execution
information (i.e., last sale information) for executions on the
Exchange.\15\ While DEEP+ and DEEP will both provide information about
all displayed orders resting on the IEX Order Book (and last sale
information), DEEP+ will provide information about each displayed
resting order, while DEEP will continue to provide information about
the total volume of displayed interest resting at any price.\16\ IEX
plans to introduce DEEP+ on December 9, 2024.\17\
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\15\ See Securities Exchange Act Release No. 101231 (October 2,
2024), 89 FR 81608 (October 8, 2024) (SR-IEX-2024-20); see also IEX
Rule 11.330(a)(3).
\16\ Id.
\17\ See Trading Alert # 2024-037, available at <a href="https://iextrading.com/alerts/#/275">https://iextrading.com/alerts/#/275</a>.
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While IEX Rule 11.330(a)(5), which describes HIST, is not specific
as to which historical data is included therein, IEX's 2017 rule filing
adopting HIST provided that TOPS and DEEP data would be included, as
noted above. Accordingly, the Exchange is making this rule filing to
provide that HIST will also include DEEP+ data. IEX is not proposing to
modify the language in Rule 11.330(a)(5) which will continue to state:
``HIST. Historical Data is a data product that offers historical
data.'' IEX notes that other exchanges that offer an historical data
product do not provide specificity on which of their market data
products are included in their historical data products.\18\
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\18\ See, e.g., Cboe BZX Rule 11.22(h) (``Historical Data.
Historical Data is a data product that offers historical equities
data''); MEMX Rule 13.8(d) (``MEMOIR Historical Data. MEMOIR
Historical Data is a data product that offers historical equities
data'').
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\19\ in general, and furthers the
objectives of Section 6(b)(5),\20\ 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 add the
same substantive data that IEX will provide in real-time via the new
DEEP+ data product to HIST, thereby providing additional transparency
regarding historical IEX displayed orders to Members \21\ and other
users of IEX data products.
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\19\ 15 U.S.C. 78f(b).
\20\ 15 U.S.C. 78f(b)(5).
\21\ See IEX Rule 1.160(s).
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As discussed in the Purpose section, IEX publishes the HIST file,
which contains the same substantive data that is provided in real-time
via TOPS and DEEP, to its website after the close of trading, where it
is offered free of charge. Adding DEEP+ data to HIST is fully
consistent with this approach. Further, other exchanges offer depth of
book data in their historical data products in a comparable manner.\22\
Therefore, the Exchange does not believe that this proposed rule change
raises any new or novel issues not already considered by the
Commission.
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\22\ See supra note 18.
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IEX also believes that the proposed rule change is
nondiscriminatory since all Members and other market participants will
be able to access DEEP+ data through HIST.
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
and Statutory Basis sections, this rule filing merely proposes to add
to its HIST data product the substantive data that will be provided in
real-time via the new DEEP+ market data product, which will provide
enhanced transparency to Members and other users of IEX data products
regarding historical displayed orders on IEX.
With regard to intra-market competition, the proposed rule change
will apply equally to all Members and other market participants on a
fair, impartial and nondiscriminatory basis without imposing any new
burdens. Access to HIST is optional and will be available to all
Members and market participants in the same manner.
With regard to inter-market competition, other exchanges are free
to adopt similar data products subject to
[[Page 97127]]
the SEC rule filing process, and others have done so.\23\
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\23\ See supra note 18.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has designated this rule filing as non-controversial
under Section 19(b)(3)(A) \24\ of the Act and Rule 19b-4(f)(6) \25\
thereunder. Because the proposed rule change does not (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, it has become effective pursuant to
Section 19(b)(3)(A) of the Act \26\ and Rule 19b-4(f)(6)
thereunder.\27\
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\24\ 15 U.S.C. 78s(b)(3)(A).
\25\ 17 CFR 240.19b-4(f)(6).
\26\ 15 U.S.C. 78s(b)(3)(A).
\27\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its 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.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \28\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \29\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may be operative concurrent with IEX's planned
implementation of DEEP+ on December 9, 2024. The Commission believes
that the proposed rule change raises no novel issues and that waiver of
the operative delay is consistent with the protection of investors and
the public interest. Therefore, the Commission hereby waives the
operative delay and designates the proposal operative upon filing.\30\
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\28\ 17 CFR 240.19b-4(f)(6).
\29\ 17 CFR 240.19b-4(f)(6)(iii).
\30\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \31\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\31\ 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#b6c4c3dad39bd5d9dbdbd3d8c2c5f6c5d3d598d1d9c0"><span class="__cf_email__" data-cfemail="d9abacb5bcf4bab6b4b4bcb7adaa99aabcbaf7beb6af">[email protected]</span></a>. Please include
file number SR-IEX-2024-27 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-2024-27. 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 will also 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-2024-27 and should be
submitted on or before December 27, 2024.
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\32\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\32\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-28539 Filed 12-5-24; 8:45 am]
BILLING CODE 8011-01-P
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