86614 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

26See supra note 14. 27 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

burden on intramarket competition 

because the proposal simply offers an 

additional way for all market 

participants to synthetically liquidate 

unwanted risk exposure, and respects 

the priority of closing cabinet orders. In 

addition, the Exchange does not believe 

the proposed rule change will impose 

any burden on intramarket competition 

because the proposed cabinet orders 

will be available to all market 

participants to execute in open outcry in 

the same manner as they are able to 

execute any other QOO Orders. 

Furthermore, the Exchange believes that 

allowing for split-pricing priority to 

apply to cabinet trades is procompetitive as it will allow the 

Exchange to offer its Participants pricing 

abilities which are currently available 

on competing exchanges 26 As such, the 

Exchange does not believe that the 

proposed rule change will impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BOX–2020–38 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–BOX–2020–38. 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 (http://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 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. 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 SR–BOX–2020–38 and should 

be submitted on or before January 21, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2020–28890 Filed 12–29–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90774; File No. SR– 

NASDAQ–2020–092] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Extend 

the Expiration Date of the Temporary 

Amendments Set Forth in SR– 

NASDAQ–2020–076 Concerning Video 

Conference Hearings 

December 22, 2020. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (‘‘Act’’ 

or ‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on December 17, 2020, The Nasdaq 

Stock Market LLC (‘‘Nasdaq’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to extend the 

expiration date of the temporary 

amendments in SR–NASDAQ–2020–076 

from December 31, 2020 to April 30, 

2021. The proposed rule change would 

not make any changes to the text of the 

Exchange rules. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, 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 

Exchange 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 

Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86615 

4For OHO hearings under Exchange Rules 9261 

and 9830, the proposed rule change temporarily 

grants authority to the Chief or Deputy Chief 

Hearing Officer to order that a hearing be conducted 

by video conference. For ERC hearings under 

Exchange Rules 1015 and 9524, this temporary 

authority is granted to the ERC or relevant 

Subcommittee. 

5The temporary amendments set forth in the 

November 5 Filing were subject to a 30-day 

operative delay and, accordingly, became operative 

on December 6, 2020. See infra note 6 and 

accompanying text. 

6See Exchange Act Release No. 90390 (November 

10, 2020), 85 FR 73302 (November 17, 2020) (Notice 

of Filing and Immediate Effectiveness of File No. 

SR–NASDAQ–2020–076). 

7As noted in the November 5 Filing, the 

temporary proposed rule change grants discretion to 

OHO and the ERC to order a video conference 

hearing. In deciding whether to schedule a hearing 

by video conference, OHO and the ERC may 

consider a variety of other factors in addition to 

COVID–19 trends. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10See Exchange Act Release No. 90619 

(December 9, 2020), 85 FR 81250 (December 15, 

2020) (SR–FINRA–2020–042). In SR–FINRA–2020– 

042, FINRA proposed rule changes to extend the 

expiration date of the temporary rule amendments 

set forth in SR–FINRA–2020–015 and SR–FINRA– 

2020–027 from December 31, 2020, to April 30, 

2021. SR–FINRA–2020–015 provided temporary 

relief from some timing, method of service and 

other procedural requirements in FINRA’s rules. 

SR–FINRA–2020–027 allowed FINRA’s OHO and 

the NAC to conduct hearings, on a temporary basis, 

by video conference, if warranted by the current 

COVID–19-related public health risks posed by an 

in-person hearing. 

places specified in Item IV below. The 

Exchange 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 

In response to the COVID–19 global 

health crisis and the corresponding 

need to restrict in-person activities, the 

Exchange filed proposed rule change 

SR–NASDAQ–2020–076, which allows 

the Exchange’s Office of Hearing 

Officers (‘‘OHO’’) and the Exchange 

Review Council (‘‘ERC’’) to conduct 

hearings, on a temporary basis, by video 

conference, if warranted by the current 

COVID–19-related public health risks 

posed by an in-person hearing. The 

COVID–19 conditions necessitating 

these temporary amendments persist, 

with cases rapidly escalating 

nationwide. Based on its assessment of 

current COVID–19 conditions, and the 

lack of certainty as to when COVID–19- 

related health concerns will subside, the 

Exchange has determined that there is a 

continued need for this temporary relief 

for several months beyond December 31, 

2020. Accordingly, the Exchange 

proposes to extend the expiration date 

of the temporary rule amendments in 

SR–NASDAQ–2020–076 from December 

31, 2020, to April 30, 2021. 

On November 5, 2020, the Exchange 

filed with the Commission a proposed 

rule change for immediate effectiveness, 

SR–NASDAQ–2020–076, to temporarily 

amend Exchange Rules 1015, 9261, 9524 

and 9830 to grant OHO and the ERC 

authority 4 to conduct hearings in 

connection with appeals of Membership 

Application Program decisions, 

disciplinary actions, eligibility 

proceedings and temporary and 

permanent cease and desist orders by 

video conference, if warranted by the 

current COVID–19-related public health 

risks posed by an in-person hearing (the 

‘‘November 5 Filing’’).5 The 

Commission published its notice of 

filing and immediate effectiveness for 

the November 5 Filing on November 10, 

2020.6 The temporary amendments, as 

originally proposed in the November 5 

Filing, will expire on December 31, 

2020, absent another proposed rule 

change filing by the Exchange. 

The Exchange proposed the 

temporary amendments allowing for 

specified OHO and ERC hearings to be 

conducted by video conference in 

response to the COVID–19-related 

public health risks posed in connection 

with conducting traditional, in-person 

hearings. As set forth in the November 

5 Filing, the Exchange relies on COVID– 

19 data and the guidance issued by 

public health authorities to determine 

whether the current public health risks 

presented by an in-person hearing may 

warrant a hearing by video conference.7

As noted above, the COVID–19-related 

public health risks necessitating this 

temporary relief have not yet abated, 

with COVID–19 cases surging 

nationwide. 

Based on its assessment of current 

COVID–19 conditions, including the 

recent escalation in COVID–19 cases 

nationwide, the Exchange does not 

believe the COVID–19-related health 

concerns necessitating this relief will 

subside by December 31, 2020, and has 

determined that there will be a 

continued need for this temporary relief 

for several months beyond December 31, 

2020. Accordingly, the Exchange 

proposes to extend the expiration date 

of the temporary rule amendments in 

the November 5 Filing from December 

31, 2020, to April 30, 2021. The 

extension of these temporary 

amendments allowing for specified 

OHO and ERC hearings to proceed by 

video conference will allow the 

Exchange’s critical adjudicatory 

functions to continue to operate 

effectively in these extraordinary 

circumstances—enabling the Exchange 

to fulfill its statutory obligations to 

protect investors and maintain fair and 

orderly markets—while also protecting 

the health and safety of hearing 

participants. 

The Exchange has filed the proposed 

rule change for immediate effectiveness 

and has requested that the SEC waive 

the requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, so the 

Exchange can implement the proposed 

rule change immediately. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,9

in particular, in that it is designed to 

promote just and equitable principles of 

trade, 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, by 

continuing to provide greater 

harmonization between the Exchange 

rules and FINRA rules of similar 

purpose,10 resulting in less burdensome 

and more efficient regulatory 

compliance. 

The proposed rule change, which 

extends the expiration date of the 

temporary amendments to the Exchange 

rules set forth in the November 5 Filing, 

will continue to aid the Exchange’s 

efforts to timely conduct hearings in 

connection with its core adjudicatory 

functions. Given current COVID–19 

conditions and the uncertainty around 

when those conditions will improve, 

without this relief allowing OHO and 

ERC hearings to continue to proceed by 

video conference, such hearings may 

need to be postponed indefinitely. The 

Exchange must be able to perform its 

critical adjudicatory functions in order 

to fulfill its statutory obligations to 

protect investors and maintain fair and 

orderly markets. As such, this relief is 

essential to the Exchange’s ability to 

fulfill its statutory obligations and 

allows hearing participants to avoid the 

serious COVID–19-related health and 

safety risks associated with in-person 

hearings. 

Among other things, this relief will 

allow OHO to conduct temporary cease 

and desist proceedings by video 

conference so that the Exchange can 

take immediate action to stop ongoing 

customer harm and will allow the ERC 

to timely provide members, disqualified 

individuals and other applicants an 

86616 Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 

11 15 U.S.C. 78s(b)(3)(A). 

12 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. 

13See supra note 10 (referencing FINRA’s 

proposal to extend the expiration date of temporary 

rule amendments allowing hearings to be 

conducted on a temporary basis by video 

conference if warranted by COVID–19 related 

health risks). See also November 5 Filing, 85 FR at 

73303 (stating that with certain exceptions, the text 

of Exchange Rules 1015, 9261, 9524 and 9830 are 

substantially the same as FINRA’s rules). 

14See supra note 10 and accompanying text. 

15For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule change’s impact on efficiency, 

competition, and capital formation. See 15 U.S.C. 

78c(f). 

approval or denial of their applications. 

As set forth in detail in the November 

5 Filing, this temporary relief allowing 

OHO and ERC hearings to proceed by 

video conference accounts for fair 

process considerations and will 

continue to provide fair process while 

avoiding the COVID–19-related public 

health risks for hearing participants. 

Accordingly, the proposed rule change 

extending this temporary relief is in the 

public interest and consistent with the 

Act’s purpose. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the temporary proposed rule change 

will result in any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. As set forth in the 

November 5 Filing, the proposed rule 

change is intended solely to extend 

temporary relief necessitated by the 

continued impacts of the COVID–19 

outbreak and the related health and 

safety risks of conducting in-person 

activities. The Exchange believes that 

the proposed rule change will prevent 

unnecessary impediments to its 

operations, including its critical 

adjudicatory processes, and its ability to 

fulfill its statutory obligations to protect 

investors and maintain fair and orderly 

markets that would otherwise result if 

the temporary amendments were to 

expire on December 31, 2020. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing 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) 11 of the Act and Rule 19b– 

4(f)(6) thereunder.12

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing. However, pursuant to 

Rule 19b–4(f)(6)(iii), the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

so that the proposed rule change may 

become operative immediately upon 

filing. As noted above, the Exchange 

states that the COVID-related health and 

safety risks of conducting in-person 

activities, which necessitated these 

temporary amendments, persist and that 

cases are rapidly escalating nationwide. 

Based on the Exchange’s assessment of 

the current COVID–19 conditions, 

including the lack of certainty as to 

when COVID–19-related health 

concerns will subside, the Exchange has 

determined that that there is a 

continued need for this temporary relief 

for several months beyond December 31, 

2020. Accordingly, the Exchange states 

that waiver of the operative delay would 

allow the proposed changes, which are 

designed to minimize disruptions to the 

Exchange’s operations in order to 

maintain fair processes and fulfill its 

obligations to protect investors and 

maintain fair and orderly markets, to be 

operative on the date of filing so the 

Exchange can implement the extension 

of these temporary amendments 

immediately. 

The Exchange also indicates that this 

filing is eligible to become operative 

immediately because the proposal 

would continue to provide greater 

harmonization between the Exchange 

rules and FINRA rules that serve a 

similar purpose, resulting in less 

burdensome and more efficient 

regulatory compliance. This proposal 

would serve to extend the expiration 

date of the temporary amendments to 

the Exchange rules set forth in the 

November 5 Filing, which is consistent 

with FINRA’s extension to its 

comparable rules, where FINRA 

requested and the Commission granted 

a waiver of the 30-day operative delay.13

The Exchange also states that this 

temporary relief is necessary in order to 

continue performing critical 

adjudicatory functions necessary to 

meet its statutory obligations in light of 

COVID–19 related health and safety 

risks associated with in-person hearings. 

The Commission observes that this 

proposal, like the Exchange’s November 

5 Filing and FINRA’s comparable 

filing,14 provides only temporary relief 

during the period in which the 

Exchange’s operations are impacted by 

COVID–19. As proposed, the changes 

would be in place through April 30, 

2021. For these reasons, the 

Commission believes that waiver of the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposal operative upon filing.15

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 

to determine whether the proposed rule 

should be approved or disapproved. 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2020–092 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–NASDAQ–2020–092. 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 (http://www.sec.gov/ 

Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices 86617 

16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(1). 

4 17 CFR 240.19b–4. 

5 15 U.S.C. 78s(b)(3)(A)(ii). 

6See Securities Exchange Act Release No. 89967 

(September 23, 2020), 85 FR 63616 (October 8, 

2020) (SR–IEX–2020–14). 

7See IEX Rule 1.160(s). 

8See Securities Exchange Act Release No. 89686 

(August 26, 2020), 85 FR 54438 (September 1, 2020) 

(SR–IEX–2019–15). 

9See IEX Rule 1.160(p). 

10See IEX Rules 11.190(b)(7) and 11.190(g). 

11See IEX Rule 11.190(b)(7). 

12 Generally, IEX currently charges $.0003 per 

share for any displayed orders that execute 

(whether they add or remove liquidity) and $.0009 

per share for any non-displayed orders that execute 

(whether they add or remove liquidity). If the shares 

execute for less than $1.00 per share, the Exchange 

charges 0.30% of the total dollar value of the 

transaction. See IEX Fee Schedule, https://

iextrading.com/trading/fees/. 

13See IEX Fee Schedule, https://iextrading.com/ 

trading/fees/. 

14For purposes of the discount, IEX aggregates all 

of a Member’s MPIDs to calculate each Member’s 

D-Peg, M-Peg, and D-Limit liquidity providing 

orders on a monthly basis. Upon a Member’s 

request and subject to IEX’s review and verification 

of the affiliate’s relationship to the requesting 

Member, IEX will aggregate the Member’s activity 

with activity of the Member’s affiliated Member(s). 

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, on business days 

between the hours of 10:00 a.m. and 

3:00 p.m., located at 100 F Street NE, 

Washington, DC 20549. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. 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 SR–NASDAQ–2020–092 and 

should be submitted on or before 

January 20, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2020–28803 Filed 12–29–20; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90786; File No. SR–IEX– 

2020–19] 

Self-Regulatory Organizations: 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Related to 

Transaction Fees Pursuant to IEX Rule 

15.110 

December 22, 2020. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

11, 2020, the Investors Exchange LLC 

(‘‘IEX’’ or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I, II, 

and III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

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,3 and Rule 19b4 thereunder,4 IEX is filing with the 

Commission a proposed rule change to 

amend its Fee Schedule, pursuant to 

IEX Rule 15.110(a) and (c) (the ‘‘Fee 

Schedule’’) to modify certain 

promotional pricing incentives for the 

execution of Discretionary Limit (‘‘DLimit’’) orders. Changes to the Fee 

Schedule pursuant to this proposal are 

effective upon filing,5 and the Exchange 

plans to implement the changes on 

January 1, 2021. 

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 proposes to amend its 

Fee Schedule, pursuant to IEX Rule 

15.110(a) and (c), to modify certain 

pricing incentives currently applicable 

to executions of Discretionary Limit 

(‘‘D-Limit’’), Discretionary Peg (‘‘DPeg’’), and Midpoint Peg (‘‘M-Peg’’) 

order executions that were implemented 

with the launch of the D-limit order 

type on October 1 2020.6 Specifically, 

the Exchange proposes to eliminate the 

fee discount of $0.0002 per executed 

share available to IEX Members 7 for 

liquidity-providing D-Peg and M-Peg 

orders. 

The D-Limit order type was approved 

by the Commission on August 26, 

2020,8 and is designed to protect 

liquidity providers from potential 

adverse selection by latency arbitrage 

trading strategies in a fair and 

nondiscriminatory manner. A D-Limit 

order may be a displayed or nondisplayed limit order that upon entry 

and when posting to the Order Book 9 is 

priced to be equal to and ranked at the 

order’s limit price, but will be adjusted 

to a less-aggressive price during periods 

of quote instability, as defined in IEX 

Rule 11.190(g).10 Otherwise, a D-Limit 

order operates in the same manner as 

either a displayed or non-displayed 

limit order, as applicable,11 and 

accordingly, the Exchange determined 

that liquidity-taking D-Limit orders 

would be subject to the same transaction 

fees as other displayed or non-displayed 

orders.12

Currently, a D-Limit order that 

provides liquidity and is executed at a 

price at or above $1.00 results in a free 

execution.13 In addition, D-Peg and MPeg orders that provide liquidity and 

execute at a price at or above $1.00 per 

share are currently subject to a discount 

of $0.0002 per share from the fee that 

would otherwise be charged for the 

number of shares of such orders 

executed up to the number of shares of 

D-Limit orders that provided liquidity 

and executed at a price at or above $1.00 

per share during such time period by 

the same Member, measured on a 

monthly basis.14

The fee discounts were designed to 

provide a narrowly tailored incentive 

for Members to utilize D-limit orders, a 

new and innovative order type, taking