31828 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 

9 Id. 

10 17 CFR 200.30–3(a)(57). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4 15 U.S.C. 78s(b)(1). 

5 17 CFR 240.19b–4. 

6See Rule 1.160(s). 

7This pricing is referred to by the Exchange as 

‘‘Displayed Match Fee’’ with a Fee Code of ‘L’ 

provided by the Exchange on execution reports. See 

the Investors Exchange Fee Schedule, available on 

the Exchange public website. 

8This pricing is referred to by the Exchange as 

the ‘‘Non-Displayed Match Fee’’ with a Fee Code of 

‘I’ provided by the Exchange on execution reports. 

See the Investors Exchange Fee Schedule, available 

on the Exchange public website. 

9As defined by Regulation NMS Rule 600(b)(42). 

17 CFR 242.600. 

10This pricing is referred to by the Exchange as 

the ‘‘Spread-Crossing Remove Fee’’, with a Fee 

Code of ‘‘N’’ provided by the Exchange on 

execution reports. See the Investors Exchange Fee 

Schedule, available on the Exchange public 

website. The Exchange notes that if an order—based 

on market conditions, User instructions, applicable 

days after the date of publication of 

notice of filing of the proposed rule 

change. The Commission may extend 

the period for issuing an order 

approving or disapproving the proposed 

rule change by not more than 60 days 

if the Commission determines that a 

longer period is appropriate and 

publishes the reasons for such 

determination. As noted earlier, the 

proposed rule change was published for 

notice and comment in the Federal 

Register on January 9, 2018. July 8, 

2018, is 180 days from that date, and 

September 6, 2018, is 240 days from that 

date. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the proposed rule change 

so that it has sufficient time to consider 

this proposed rule change. Accordingly, 

the Commission, pursuant to Section 

19(b)(2) of the Act,9 designates 

September 6, 2018, as the date by which 

the Commission should either approve 

or disapprove the proposed rule change 

(File Number SR–NASDAQ–2017–128). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14667 Filed 7–6–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83582; File No. SR–IEX– 

2018–11] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify the 

Structure of its Fee Schedule and Make 

Several Conforming and Clarifying 

Changes, Pursuant to IEX Rule 

15.110(A) and (C) 

July 2, 2018. 

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 29, 

2018, 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. 

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 Securities Exchange 

Act of 1934 (‘‘Act’’),4 and Rule 19b–4 

thereunder,5 Investors Exchange LLC 

(‘‘IEX’’ or ‘‘Exchange’’) is filing with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to modify the structure of its Fee 

Schedule and make several conforming 

and clarifying changes, pursuant to IEX 

Rule 15.110(a) and (c), in order to 

provide more clarity to market 

participants regarding the fees assessed 

for executions on the Exchange. 

Changes to the Fee Schedule pursuant 

to this proposal are effective upon filing 

and will be operative on July 1, 2018. 

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 statement 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 proposes to modify the 

structure of its Fee Schedule and make 

minor conforming changes, pursuant to 

IEX Rule 15.110(a) and (c), in order to 

provide more clarity to market 

participants regarding the fees assessed 

for executions on the Exchange. The 

Exchange’s existing Fee Schedule 

requires market participants to 

determine which of the Exchange’s Fee 

Codes are applicable to any given 

transaction, and then calculate the 

applicable fee that will be assessed 

depending on the applicable Fee Code 

combination. After informal discussions 

with various market participants, the 

Exchange is proposing to provide more 

clarity to market participants regarding 

the fees assessed for executions on the 

Exchange by amending the structure of 

its Fee Schedule to explicitly provide 

each possible Fee Code combination, 

along with the associated fee applicable 

to such transaction. The Exchange is 

also proposing to make several minor 

substantive changes to the Fee Schedule 

and related rules to enhance the 

consistency and clarity of the 

Exchange’s Fee Schedule. 

Existing Fee Schedule 

In an effort to incentivize Members 6

to submit displayed orders to the 

Exchange, the Exchange currently 

charges a fee of $0.0003 per share (or 

0.30% of the total dollar value of the 

transaction for securities priced below 

$1.00) to Members for executions on IEX 

that provide or take resting interest with 

displayed priority (i.e., an order or 

portion of a reserve order that is booked 

and ranked with display priority on the 

Order Book).7 Furthermore, the 

Exchange currently charges $0.0009 per 

share (or 0.30% of the total dollar value 

of the transaction for securities priced 

below $1.00) to Members for executions 

on IEX that provide or take resting 

interest with non-displayed priority 

(i.e., an order or portion of a reserve 

order that is booked and ranked with 

non-displayed priority on the Order 

Book).8

Moreover, in order to reduce the 

variability in fees to access liquidity on 

the Exchange and thereby incentivize 

Members to route more orders to the 

Exchange that are executable at the far 

side of the NBBO,9 the Exchange 

assesses a deterministic Spread-Crossing 

Remove Fee of $0.0003 per share to all 

executions at or above $1.00 that result 

from removing liquidity with a buy 

(sell) order that is executable at the NBO 

(NBB).10 The Exchange does not charge 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 31829 

IEX Rules and/or the Act and the rules and 

regulations thereunder—is not executable at the far 

side of the NBBO, such order will not be eligible 

for the Spread-Crossing Remove Fee. See Securities 

Exchange Act Release No. 83147 (May 1, 2018) 83 

FR 20118 (May 7, 2018) (SR–IEX–2018–09). 

11This pricing is referred to by the Exchange as 

the ‘‘Internalization Fee’’ with a Fee Code of ‘S’ 

provided by the Exchange on execution reports. 

Orders from different market participant identifiers 

of the same broker dealer, with the same Central 

Registration Depository registration number, are 

treated as originating from the same Exchange 

Member. See the Investors Exchange Fee Schedule, 

available on the Exchange public website. 

12See the Investors Exchange Fee Schedule, 

available on the Exchange public website. 

13This pricing is referred to by the Exchange as 

the ‘‘Crumbling Quote Remove Fee Indicator’’ with 

a Fee Code of ‘Q’ provided by the Exchange on 

execution reports. See the Investors Exchange Fee 

Schedule, available on the Exchange public 

website. See also 17 CFR 242.610(c). 

14See Securities Exchange Act Release No. 81484 

(August 25, 2017), 82 FR 41446 (August 31, 2017) 

(SR–IEX–2017–27). 

15See Securities Exchange Act Release No. 82127 

(November 20, 2017), 82 FR 56089 (November 27, 

2017) (SR–IEX–2017–40), and Securities Exchange 

Act Release No. 81502 (August 30, 2017), 82 FR 

42141 (September 6, 2017) (SR–IEX–2017–28), 

respectively. The Exchange does not yet have any 

IEX-listed securities, but intends on launching a 

listings program for corporate issuers. 

16See Rule 11.350(c). 

17See Rule 1.160(z). 

18See Rule 11.350(d). 

19See Rule 1.160(gg). 

20See Rule 11.350(e). 

21See Rule 11.350(f). 

22The Exchange also notes that there is no 

Continuous Book prior to a Halt, Volatility, or IPO 

auction, and thus no opportunity for a Member to 

have a displayed order on the Continuous Book that 

is executed in such auctions. 

23See Rule 11.350(e). 

24See supra note 13. 

25See Rule 11.231(a). 

26See Rule 11.170(a). 

27See Securities Exchange Act Release No. 82636 

(February 6, 2018), 83 FR 6059 (February 12, 2018) 

(SR–IEX–2018–02). See also the Investors Exchange 

Fee Schedule, available on the Exchange public 

website. 

any fee to Members for executions on 

IEX when the adding and removing 

order originated from the same 

Exchange Member,11 and all executions 

below $1.00 are assessed a fee equal to 

0.30% of the total dollar value of the 

transaction.12

Furthermore, to incentivize additional 

resting liquidity on IEX, including 

displayed liquidity, the Exchange 

charges the maximum fee allowable 

pursuant to Regulation NMS for certain 

executions that appear to be part of a 

deliberate trading strategy that targets 

resting liquidity during periods of quote 

instability. Specifically, the Exchange 

charges a Crumbling Quote Remove Fee 

(‘‘CQRF’’) of $0.0030 (or 0.3% of the 

total dollar value of the transaction for 

securities priced below $1.00) to orders 

that remove resting liquidity during 

periods of quote instability, as defined 

in Rule 11.190(g), if such orders 

constitute at least 5% of the Member’s 

volume executed on IEX and at least 1 

million shares, on a monthly basis, 

measured on a per market participant 

identifier (‘‘MPID’’) basis.13 Orders that 

exceed the 5% and 1 million share 

thresholds are assessed the CQRF per 

each incremental share executed that 

exceeds the threshold.14

In addition to the fees assessed for 

trading on the continuous market, the 

Exchange also assesses fees for orders 

that execute in an IEX Auction for 

securities listed on the Exchange 

pursuant to Rule 11.350, as well as for 

orders that execute in the Opening 

Process for non-IEX-listed securities 

pursuant to Rule 11.231.15 For orders 

that execute in an IEX Auction for 

securities listed on the Exchange: 

• Executions in the Opening 

Auction 16 receive Fee Code ‘‘O’’, and 

are assessed a fee of $0.0003 per share, 

unless the order was displayed on the 

Continuous Book during the Pre-Market 

Session,17 in which case the execution 

also receives Fee Code ‘‘L’’, and is not 

charged a fee. 

• Executions in the Closing 

Auction 18 receive Fee Code ‘‘C’’, and 

are assessed a fee of $0.0003 per share, 

unless the order was displayed on the 

Continuous Book during the Regular 

Market Session,19 in which case the 

execution also receives Fee Code ‘‘L’’, 

and is not charged a fee. 

• Executions in a Halt Auction 20 or 

Volatility Auction 21 receive Fee Code 

‘‘H’’, and are assessed a fee of $0.0003 

per share; 22 and 

• Executions in an IPO Auction 23

receive Fee Code ‘‘P’’, and are assessed 

a fee of $0.0003 per share.24

For orders that execute in the 

Opening Process for non-IEX-listed 

securities pursuant to Rule 11.231: 

• Orders resting on the Cross Book 25

that execute in the Opening Process 

receive Fee Code ‘‘X’’, and are assessed 

a fee of $0.0009 per share; 

• Non-displayed orders resting on the 

Continuous Book that execute in the 

Opening Process receive Fee Code ‘‘X’’, 

and are assessed a fee of $0.0009 per 

share; and 

• Displayed orders resting on the 

Continuous Book that execute in the 

Opening Process receive Fee Codes ‘‘X’’ 

and ‘‘L’’, and are assessed a fee of 

$0.0003 per share. 

In addition to the fees described 

above, the Exchange also offers a Market 

Quality Incentive Program that offers 

certain fee-based incentives for 

Members that provide meaningful and 

consistent support to market quality and 

price discovery by extensive quoting at 

and/or near the NBBO in IEX-listed 

securities for a significant portion of the 

day.26 Specifically, a Member that 

satisfies the quoting criteria for one or 

more of the following tiers in each 

security listed on IEX over the course of 

the month that the security is listed on 

IEX may be designated as an ‘‘IEMM’’: 

• Inside Tier IEMM: One or more of 

its MPIDs has a displayed order entered 

in a principal capacity of at least one 

round lot resting on the Exchange at the 

NBB and/or the NBO for an average of 

at least 20% of Regular Market Hours 

(the ‘‘NBBO Quoting Percentage’’); and/ 

or 

• Depth Tier IEMM: One or more of 

its MPIDs has a displayed order entered 

in a principal capacity of at least one 

round lot resting on the Exchange at the 

greater of 1 minimum price variation 

(‘‘MPV’’) or 0.03% (i.e., 3 basis points) 

away from the NBBO (or more 

aggressive) for an average of at least 

75% of Regular Market Hours (the 

‘‘Depth Quoting Percentage’’). 

Members that are designated as an 

IEMM qualify for the Displayed Match 

Fee Discount as well as the NonDisplayed Match Fee Discount. 

Specifically, for Inside Tier IEMMs, the 

Displayed Match Fee Discount and the 

Non-Displayed Match Fee Discount 

results in a $0.0001 discount for each 

execution subject to the Displayed 

Match Fee and the Non-Displayed 

Match Fee, respectively, with no cap on 

aggregate monthly savings. Furthermore, 

Depth Tier IEMMs will receive a 

$0.0001 discount for each execution 

subject to the Displayed Match Fee and 

the Non-Displayed Match Fee, up to 

$20,000.00 in aggregate savings per 

month.27

Proposed Changes 

After informal discussions with 

various market participants, the 

Exchange is proposing to provide more 

clarity to market participants regarding 

the fees assessed for executions on the 

Exchange by amending the structure of 

its Fee Schedule to provide an 

overarching framework for interpreting 

the Exchange’s Fee Codes, as well as 

explicitly enumerating each possible 

Fee Code combination, along with the 

associated fee applicable to such 

transaction. The Exchange is also 

proposing to make several conforming 

changes to the Fee Schedule and related 

rules to account for the updated 

structure. 

The Exchange proposes to continue 

utilizing standard FIX tag 9730 (Trade 

Liquidity Indicator) to populate the 

applicable Fee Codes for executions on 


sradovich on DSK3GMQ082PROD with NOTICES
31830 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 

28See the Investors Exchange FIX Specification, 

available on the Exchange’s public website. 

29The Exchange notes the proposed definition of 

‘‘Quote instability’’ is a new definition, and is 

simply a cross reference to Rule 11.190(g). See Rule 

11.190(g). 30The Exchange notes that the proposed 

definition of ‘‘Spread-crossing eligible order’’ is a 

new definition, and is intended to provide market 

participants further clarity regarding the conditions 

associated with the Spread-Crossing Remove Fee. 

See Securities Exchange Act Release No. 83147 

(May 1, 2018) 83 FR 20118 (May 7, 2018) (SR–IEX– 

2018–09). 

the Exchange.28 Furthermore, the 

Exchange is proposing to divide the 

Exchange’s Fee Codes into ‘‘Base Fee 

Codes’’, one of which shall be supplied 

on every execution report, and 

‘‘Additional Fee Codes’’, one or more of 

which may be provided on an execution 

report, as applicable. The first position 

in the Last Liquidity Indictor tag would 

always contain a Base Fee Code. The 

second through fourth positions would 

contain one or more Additional Fee 

Codes, as applicable, that serve to 

modify the Base Fee Code in the first 

position. 

As in the existing Fee Schedule, all 

proposed fees identify cost per share 

executed unless otherwise specified, 

and footnotes provide further 

explanatory text or indicate variable rate 

changes, provided the conditions in the 

footnote are met. The rates listed in the 

proposed Base Rates table apply unless 

a Member’s transaction is assigned 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. Executions below $1.00 

are assessed a fee of 0.30% of TDV 

unless the Fee Code Combination 

results in a FREE execution. For 

executions on routable orders, the 

Exchange passes-through in full any fees 

charged by/rebates received from away 

venues (‘‘Cost’’) to the Member and adds 

the IEX fee (i.e., a $0.0001 charge per 

share). 

The Exchange also proposes to adopt 

the following definitions that are 

substantially like the Exchange’s 

existing definitions governing 

transaction fees: 

• ‘‘Fee Code’’ is identified on each 

execution report message from the 

Exchange in the Trade Liquidity 

Indicator (FIX tag 9730) field. 

• ‘‘MPID’’ means a market participant 

identifier. 

• ‘‘TDV’’ means the total dollar value 

of the execution calculated as the 

execution price multiplied by the 

number of shares executed in the 

transaction. 

• ‘‘Quote instability’’ is defined in 

IEX Rule 11.190(g).29

• ‘‘CQRF Threshold’’ means the 

Crumbling Quote Remove Fee 

Threshold. The threshold is equal to 5% 

of the sum of a Member’s total monthly 

executions on IEX if at least 1,000,000 

shares during the calendar month, 

measured on an MPID basis. 

• ‘‘Spread-crossing eligible order’’ 

means a buy order that is executable at 

the NBO or a sell order that is 

executable at the NBB after accounting 

for the order’s limit (if any), peg 

instruction (if any), market conditions, 

and all applicable rules and 

regulations.30

The proposed Base Fee Codes and 

Additional Fee Codes, as well as the 

corresponding fees, are as follows: 

Base fee codes Description 

Executions at 

or above 

$1.00 

Executions 

below $1.00 

I, X .................................................. Standard Match Fee ................................................................................ $0.0009 0.30% of TDV. 

L ...................................................... Reduced Match Fee ................................................................................ 0.0003 0.30% of TDV. 

O, C, H, P ....................................... Auction Match Fee .................................................................................. 0.0003 0.30% of TDV. 

Alpha ............................................... Routing and removing liquidity (all routing options) ................................ Cost + $0.0001 

Additional fee 

codes Description Fee 

S ................... Internalization Fee: Member executes against resting liquidity provided by such Member .................................... FREE 

Q .................. Crumbling Quote Remove Fee: Removes liquidity during periods of quote instability at or within the NBBO 

above the CQRF Threshold, measured on an MPID basis.

$0.0030 

N ................... Spread-Crossing Eligible Remove Fee: Removes liquidity with a spread-crossing eligible order .......................... $0.0003 

D ................... Discounted Single-Price Cross Fee: Displayed interest resting on the Continuous Book executes in a cross or

auction.

FREE 

Fee Codes ‘‘I’’ and ‘‘X’’ are currently 

identified as the Non-Displayed Match 

Fee and the Opening Match Fee, 

respectively, and would both be referred 

to as the Standard Match Fee, as 

proposed. Furthermore, Fee Code ‘‘L’’ is 

currently identified as the Displayed 

Match Fee, and would be referred to as 

the Reduced Match Fee, as proposed. 

The Exchanges notes these amendments 

reflect only changes in nomenclature, 

and do not represent substantive 

changes to the fees assessed for 

execution on the Exchange. Moreover, 

similar to the existing Fee Schedule, the 

Exchange proposes to append footnote 1 

to each Fee Code combination that 

includes Fee Code ‘‘Q’’. Footnote 1 

states that executions with Fee Code Q 

that exceed the CQRF Threshold are 

subject to the Crumbling Quote Remove 

Fee identified in the Fee Code Modifiers 

table. Executions with Fee Code Q that 

do not exceed the CQRF Threshold are 

subject to the fees identified in the Fee 

Code Combinations and Associated Fees 

table. 

The Exchange is proposing to make 

one minor conforming change to the 

fees assessed for displayed order’s 

resting on the Continuous Book that are 

executed in the Opening Process for 

non-IEX-listed securities pursuant to 

Rule 11.231 in order to enhance the 

consistency and clarity of the 

Exchange’s Fee Schedule. Specifically, 

as described above, a displayed order 

resting on the Continuous Book that is 

executed in the Opening Process for 

non-IEX-listed securities is currently 

charged the Displayed Match Fee (or the 

Reduced Match Fee, as proposed). In 

contrast, a displayed order resting on 

the Continuous Book that is executed in 

an Opening or Closing Auction for IEXlisted securities is not charged a fee. 

However, as proposed, the Opening 

Process utilizes the Base Fee Code of 

‘‘X’’, which would conflict with the 

Base Fee Code of ‘‘L’’ for displayed 

executions. Thus, the Exchange is 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 31831 

31See proposed Additional Fee Code ‘‘D’’, 

Discounted Single-Price Cross: displayed interest 

resting on the Continuous Book executes in a cross 

or auction. 

32The Exchange has included an asterisk to 

denote a Fee Code combination that will have 

proposed footnote 1 appended. As described above, 

Footnote 1 states that executions with Fee Code Q 

that exceed the CQRF Threshold are subject to the 

Crumbling Quote Remove Fee of $0.0030, as 

identified in the Fee Code Modifiers table. 

Executions with Fee Code Q that do not exceed the 

CQRF Threshold are subject to the fees identified 

in the Fee Code Combinations and Associated Fees 

table. 

proposing to harmonize the fees charged 

to displayed orders resting on the 

Continuous Book that are executed in 

the Opening Process or the Opening or 

Closing Auction, by introducing 

Additional Fee Code ‘‘D’’ (Discounted 

Single-Price Cross Fee), representing 

displayed interest resting on the 

Continuous Book that executes in a 

single price cross (i.e., in Opening 

Process, or an IEX Auction), and is not 

charged a fee.31

The Exchange believes that offering 

such displayed orders resting on the 

Continuous Book free execution in the 

Opening Process is consistent with the 

protection of investors and the public 

interest in that it may have the effect of 

incentivizing Members that seek 

execution in the Opening Process to 

enter displayed interest, thereby 

contributing to the public price 

discovery process to the benefit of all 

market participants. Furthermore, the 

proposed change creates consistency in 

the Exchange’s fee for similarly situated 

orders in that displayed orders resting 

on the Continuous Book that are 

executed as part of a single-priced cross 

will receive the same free execution. 

In addition to the Base Fee Code and 

Additional Fee Code framework 

described above, the Exchange is also 

proposing to provide a table of all 

possible Fee Code combinations and 

their associated fees, which explicitly 

sets forth each of the fees associated 

with each Fee Code combination. This 

table is designed to provide market 

participants an authoritative source on 

how to interpret the Fee Code’s assigned 

by the Exchange on each execution 

report. Consistent with the foregoing, 

the proposed Fee Code combinations 

and associated fees are as follows: 32

Fee Codes Description Fee 

I .................... Adds or removes non-displayed liquidity .................................................................................................................. $0.0009 

L ................... Adds or removes displayed liquidity ......................................................................................................................... $0.0003 

IS .................. Member executes against resting non-displayed liquidity provided by such Member ............................................. FREE 

IQ * ............... Removes non-displayed liquidity during periods of quote instability ........................................................................ $0.0009 

IN .................. Removes non-displayed liquidity with a spread-crossing eligible order ................................................................... $0.0003 

LS ................. Member executes against resting displayed liquidity provided by such Member .................................................... FREE 

LQ * .............. Removes displayed liquidity during periods of quote instability ............................................................................... $0.0003 

LN ................. Removes displayed liquidity with a spread-crossing eligible order .......................................................................... $0.0003 

ISQ * ............. Member removes non-displayed liquidity provided by such Member during periods of quote instability ................ FREE 

ISN ............... Member removes non-displayed liquidity provided by such Member with a spread-crossing eligible order ........... FREE 

IQN * ............. Removes non-displayed liquidity during periods of quote instability with a spread-crossing eligible order ............ $0.0003 

LSQ * ............ Member removes displayed liquidity provided by such Member during periods of quote instability ....................... FREE 

LSN .............. Member removes non-displayed liquidity provided by such Member with a spread-crossing eligible order ........... FREE 

LQN * ............ Removes displayed liquidity during periods of quote instability with a spread-crossing eligible order ................... $0.0003 

ISQN * .......... Member removes non-displayed liquidity provided by such Member during periods of quote instability with a 

spread-crossing eligible order.

FREE 

LSQN * ......... Member removes non-displayed liquidity provided by such Member during periods of quote instability with a 

spread-crossing eligible order.

FREE 

X ................... Opening Process for Non-Listed Securities (‘‘Opening Process’’) ........................................................................... $0.0009 

XD ................ Displayed interest resting on the Continuous Book executes in the Opening Process ........................................... FREE 

O .................. Opening Auction, IEX-listed security ........................................................................................................................ $0.0003 

OD ................ Displayed interest resting on the Continuous Book executes in the Opening Auction ............................................ FREE 

C ................... Closing Auction, IEX-listed security .......................................................................................................................... $0.0003 

CD ................ Displayed interest resting on the Continuous Book executes in the Closing Auction ............................................. FREE 

H ................... Halt or Volatility Auction, IEX-listed security ............................................................................................................. $0.0003 

P ................... IPO Auction, IEX-listed security ................................................................................................................................ $0.0003 

Lastly, in order to enhance the 

consistency and clarity of the 

Exchange’s Fee Schedule, IEX proposes 

to make conforming changes to the 

description of the IEMM Program in 

both the Fee Schedule and Rule 

11.170(a)(3) to account for the changes 

described above, as well as to clarify the 

application of the Spread-Crossing 

Eligible Remove Fee. Specifically, the 

Exchange is changing the name of the 

Non-Displayed Match Fee Discount and 

the Displayed Match Fee Discount to the 

Standard Match Fee Discount and 

Reduced Match Fee Discount, 

respectively, which conforms to the 

nomenclature of the proposed Base 

Rate’s. Furthermore, the Exchange is 

clarifying that Members that qualify as 

IEMMs will receive a $0.0001 discount 

on executions that receive the SpreadCrossing Eligible Remove Fee, subject to 

any applicable Depth Tier aggregate 

monthly savings cap. The SpreadCrossing Eligible Remove Fee Code of 

‘‘N’’ is an additional Fee Code applied 

to execution that remove resting 

liquidity (either displayed, or nondisplayed), and thus, such executions 

would also receive the applicable Base 

Fee Code, but would be subject to the 

Spread-Crossing Eligible Remove Fee as 

set forth in the proposed table of Fee 

Code combinations and associated fees. 

The Exchange believes the proposed 

changes do not substantively change the 

IEMM Program, as executions qualifying 

for the Spread-Crossing Eligible Remove 

Fee are a logical subset of executions 

that satisfy the conditions of the 

Standard Match Fee (when removing 

non-displayed liquidity) or the Reduced 

Match Fee (when removing displayed 

liquidity). Thus, to provide clarity 

regarding the application of the SpreadCrossing Eligible Remove Fee, the 

Exchange proposes to amend the Fee 

Schedule to explicitly enumerate the 

Spread-Crossing Eligible Remove Fee 

Discount for Members that qualify as an 

IEMM. Accordingly, as proposed, unless 

an IEMM otherwise qualifies for a lower 

rate, IEMMs will receive the following 

rates for executions during continuous 

trading in securities priced at or above 

$1.00. 


sradovich on DSK3GMQ082PROD with NOTICES
31832 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 

33 15 U.S.C. 78f. 

34 15 U.S.C. 78f(b)(4). 

35See, e.g., the Fee Schedule of Cboe BZX 

Exchange, Inc., available at http://

markets.cboe.com/us/equities/membership/fee_

schedule/bzx/. 

IEMM Tier 

Standard 

match fee 

discount 

Reduced 

match fee 

discount 

Spreadcrossing 

eligible 

remove fee 

discount 

Inside Tier .................................................................................................................................... $0.0001 $0.0001 $0.0001 

Depth Tier .................................................................................................................................... 0.0001 0.0001 0.0001 

The Exchange also proposes to clarify 

in the Fee Schedule that IEMMs 

qualifying for the Depth Tier can receive 

up to $20,000.00 in aggregate savings, 

per month, before the discounted rates 

above no longer apply, and the IEMM is 

subject to the Base Rates. Furthermore, 

the Exchange proposed to clarify in both 

the Fee Schedule and Rule 11.170(a)(3) 

that if a Member qualifies under both 

the Inside Tier and the Depth Tier, any 

earned Standard Match Fee Discount, 

Reduced Match Fee Discount, and 

Spread-Crossing Eligible Remove Fee 

Discount will be aggregated and applied 

to such Members’ executions that are 

subject to the Standard Match Fee, 

Reduced Match Fee, or Spread-Crossing 

Eligible Remove Fee in securities priced 

at or above $1.00, subject to the 

applicable Depth Tier aggregate monthly 

savings cap of $20,000.00. 

Finally, the Exchange is proposing to 

make conforming changes to Rule 

11.170(a)(3) in order to explicitly state 

that for Members that qualify as an 

IEMM, executions that take liquidity in 

securities priced at or above $1.00 with 

a buy order that is executable at the 

NBO or a sell order that is executable at 

the NBB after accounting for the order’s 

limit (if any), peg instruction (if any), 

market conditions, and all applicable 

rules and regulations (i.e., orders that 

receive the Spread-Crossing Eligible 

Remove Fee) will receive a $0.0001 fee 

reduction, up to $20,000.00 in aggregate 

savings, per month, inclusive of 

Reduced Standard Match Fee and 

Reduced Discounted Match Fee savings. 

The Exchange believes that these 

changes do not represent a substantive 

change to the IEMM Program, but are 

simply meant to conform to the 

Exchange’s proposed Fee Schedule as 

discussed above. 

2. Statutory Basis 

IEX believes that the proposed rule 

change is consistent with the provisions 

of Section 6(b) 33 of the Act in general, 

and furthers the objectives of Sections 

6(b)(4) 34 of the Act, in particular, in that 

it is designed to provide for the 

equitable allocation of reasonable dues, 

fees and other charges among its 

Members and other persons using its 

facilities. The Exchange believes that 

the proposed fee change is reasonable, 

fair and equitable, and nondiscriminatory. 

The proposed changes are designed to 

provide more clarity to market 

participants regarding the fees assessed 

for executions on the Exchange by 

amending the structure of its Fee 

Schedule to explicitly provide each 

possible Fee Code combination, along 

with the associated fee applicable to 

such transaction, therefore making the 

Exchange’s Fee Schedule more clear and 

deterministic to the benefit of all market 

participants. The Exchange believes the 

proposed changes enhance the 

consistency and clarity of the 

Exchange’s Fee Schedule, and do not 

represent a significant departure from 

pricing currently offered by the 

Exchange. As described in the Purpose 

section, the Exchange is proposing to 

primarily make formatting changes, and 

certain conforming edits designed to 

make the Exchange’s rules clearer and 

more precise. 

As described above, as part of the 

proposed restructuring of the Fee 

Schedule, the Exchange is proposing to 

not charge any fee for displayed order’s 

resting on the Continuous Book that are 

executed in the Opening Process for 

non-IEX-listed securities pursuant to 

Rule 11.231. The Exchange believes that 

offering displayed orders resting on the 

Continuous Book free execution in the 

Opening Process is consistent with the 

protection of investors and the public 

interest in that it may have the effect of 

incentivizing Members that seek 

execution in the Opening Process to 

enter displayed interest, thereby 

contributing to the public price 

discovery process to the benefit of all 

market participants. Furthermore, the 

proposed change creates consistency in 

the Exchange’s fees for similarly 

situated orders in that displayed orders 

resting on the Continuous Book that are 

executed as part of a single-priced cross 

(i.e., the Opening Process or an IEX 

Auction) will receive the same free 

execution. 

In addition, as described above, the 

Exchange is also proposing to make 

conforming changes to the description 

of the IEMM Program in both the Fee 

Schedule and Rule 11.170(a)(3) to 

account for the modified Fee Schedule, 

as well as to clarify the application of 

the Spread-Crossing Eligible Remove 

Fee. The Exchange believes these 

proposed changes are reasonable, fair 

and equitable, and non-discriminatory 

because they do not substantively 

change the IEMM Program, as 

executions qualifying for the SpreadCrossing Eligible Remove Fee are a 

logical subset of executions that satisfy 

the conditions of the Standard Match 

Fee (when removing non-displayed 

liquidity) or the Reduced Match Fee 

(when removing displayed liquidity). 

Thus, the proposed changes are 

primarily designed to provide clarity 

regarding the application of the SpreadCrossing Eligible Remove Fee in the 

context of the IEMM program by 

explicitly enumerating the SpreadCrossing Eligible Remove Fee Discount 

for Members that qualify as an IEMM. 

Furthermore, the Exchange notes that 

the proposed structure of the Fee 

Schedule is substantially like the Fee 

Schedule of other market centers, and 

therefore does not present any new or 

novel issues not already considered by 

the Commission.35

Finally, the Exchange believes that 

the proposed fees are nondiscriminatory 

because they will continue to apply 

uniformly to all Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

IEX does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange does not believe that the 

proposed rule change will impose any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act, 

because, as discussed above, the 

Exchange is not materially altering the 

fees assessed for executions on the 

Exchange. Moreover, the Exchange 

operates in a highly competitive market 

in which market participants can 

readily favor competing venues if fee 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices 31833 

36See supra note 30. 

37 15 U.S.C. 78s(b)(3)(A)(ii). 

38 15 U.S.C. 78s(b)(2)(B). 39 17 CFR 200.30–3(a)(12). 

schedules at other venues are viewed as 

more favorable. Consequently, the 

Exchange believes that the degree to 

which IEX fees could impose any 

burden on competition is extremely 

limited and does not believe that such 

fees would burden competition between 

Members or competing venues in a 

manner that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. Moreover, as noted 

in the Statutory Basis section, the 

Exchange does not believe that the 

proposed changes represent a significant 

departure from its current fee schedule. 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on intermarket competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the Exchange is not materially 

altering the fees assessed for executions 

on the Exchange. Furthermore, as noted 

above, the Exchange notes that the 

proposed structure of the Fee Schedule 

is substantially similar to the Fee 

Schedule of other market centers, and 

therefore does not present any new 

intermarket competitive burdens that do 

not already exist.36

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 foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) 37 of the Act. 

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) 38 of the Act to 

determine whether the proposed rule 

change 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– 

IEX–2018–11 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–2018–11. This file 

number should be included in 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 Section, 100 F Street NE, 

Washington, DC 20549–1090, on official 

business days between the hours of 

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

filing will also be available for 

inspection and copying at the IEX’s 

principal office and on its internet 

website at www.iextrading.com. 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–IEX– 

2018–11 and should be submitted on or 

before July 30, 2018. For the 

Commission, by the Division of Trading 

and Markets, pursuant to delegated 

authority.39

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14547 Filed 7–6–18; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

National Small Business Development 

Centers Advisory Board 

AGENCY: Small Business Administration. 

ACTION: Notice of open Federal Advisory 

Committee meeting. 

SUMMARY: The SBA is issuing this notice 

to announce the cancellation of the July 

17, 2018 meeting of the Federal 

Advisory Committee for the Small 

Business Development Centers Program. 

Future meetings of the Committee will 

be publicized as details become 

available. 

FOR FURTHER INFORMATION CONTACT: 

Anne Reim, Office of Small Business 

Development Centers, U.S. Small 

Business Administration, 409 Third 

Street SW, Washington, DC 20416; 

anne.reim@sba.gov; 202–205–9565. 

If anyone wishes to learn more about 

the Committee, please contact Anne 

Reim at the information above. 

SUPPLEMENTARY INFORMATION: Pursuant 

to section l0(a) of the Federal Advisory 

Committee Act (5 U.S.C. Appendix 2), 

the SBA announces the meetings of the 

National SBDC Advisory Board. This 

Board provides advice and counsel to 

the SBA Administrator and Associate 

Administrator for Small Business 

Development Centers. 

John Woodard, 

White House Liaison. 

[FR Doc. 2018–14622 Filed 7–6–18; 8:45 am] 

BILLING CODE P 

SUSQUEHANNA RIVER BASIN 

COMMISSION 

Projects Approved for Consumptive 

Uses of Water 

AGENCY: Susquehanna River Basin 

Commission. 

ACTION: Notice. 

SUMMARY: This notice lists the projects 

approved by rule by the Susquehanna 

River Basin Commission during the 

period set forth in DATES. 

DATES: May 1–31, 2018. 

ADDRESSES: Susquehanna River Basin 

Commission, 4423 North Front Street, 

Harrisburg, PA 17110–1788. 

FOR FURTHER INFORMATION CONTACT: 

Jason E. Oyler, General Counsel, 717– 

238–0423, ext. 1312, joyler@srbc.net. 

Regular mail inquiries May be sent to 

the above address. 

SUPPLEMENTARY INFORMATION: This 

notice lists the projects, described 

below, receiving approval for the 


sradovich on DSK3GMQ082PROD with NOTICES