[Federal Register Volume 89, Number 123 (Wednesday, June 26, 2024)]
[Notices]
[Pages 53468-53470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 www.iextrading.com, at the principal office of the Exchange, 
and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
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 https://www.iexexchange.io/resources/trading/fee-schedule#transaction-fees.
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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

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-IEX-2024-12 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-IEX-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 (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for 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