76526 Federal Register / Vol. 89, No. 181 / Wednesday, September 18, 2024 / Notices 

54 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. 

5Outbound communications include, without 

limitation, execution report messages found in the 

Exchange’s FIX Specification, quote and trade 

update messages found in the Exchange’s TOPS and 

DEEP Specifications and DROP messages. See IEX 

Rule 11.510(b)(2). 

6See IEX Rule 1.160(nn). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). 

9See IEX Rule 1.160(qq). 

10See IEX Rule 1.160(s). 

11See IEX Rule 1.160(ll). 

12See IEX Rule 11.130(c). 

13See IEX Rule 11.130(d). 

14See IEX Rule 11.130(a). 

15A Point-of-Presence is the location at which 

customers of an exchange (or other technological 

system) can connect to the exchange. 

16 Inbound communications include, without 

limitation, order messages and cancel messages 

found in the Exchange’s FIX Specification. See IEX 

Rule 11.510(b)(1). 

17See IEX Rule 11.510(b)(1). 

18See IEX Rule 11.230(b). 

19See IEX Rule 11.510, Supplementary Material 

.03. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.54

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–21167 Filed 9–17–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101018; File No. SR–IEX– 

2024–17] 

Self-Regulatory Organizations; 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend IEX 

Rules 11.190 and 11.510 To Remove 

References to the Latency Applicable 

to Outbound Communications From 

IEX’s System in Connection With IEX’s 

Planned Migration of its System From 

a Data Center Located in Weehawken, 

New Jersey to a Data Center Located 

in Secaucus, New Jersey 

September 12, 2024. 

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

Securities Exchange Act of 1934 (‘‘Act’’) 

and Rule 19b–4 thereunder,2 notice is 

hereby given that, on September 4, 

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 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 19b– 

4 thereunder,4 the Exchange is filing 

with the Commission a proposed rule 

change to amend IEX Rules 11.190 and 

11.510 to remove references to the 

latency applicable to outbound 

communications 5 from IEX’s System 6

in connection with IEX’s planned 

migration of its System from a data 

center located in Weehawken, New 

Jersey to a data center located in 

Secaucus, New Jersey. 

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

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 

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 

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 connection with IEX’s planned 

migration of its System from a data 

center located in Weehawken, New 

Jersey to a data center located in 

Secaucus, New Jersey, the Exchange 

proposes to amend IEX Rules 11.190 

and 11.510 to remove references to the 

latency applicable to outbound 

communications from IEX’s System 

(‘‘outbound latency’’) to its Users 9

(defined as Members 10 and Sponsored 

Participants 11), Data Recipients,12 and 

Service Bureaus 13 (collectively, 

‘‘Participants’’ 14). In addition, IEX 

proposes to add Temporary 

Supplementary Material .01 to IEX Rule 

11.510(a) to describe the minor 

temporary change in inbound latency 

during the data center migration. The 

Exchange also proposes to make a 

clarifying change to IEX Rule 11.190 

described below. 

Background 

IEX’s System is currently located at 

the NJ2 data center in Weehawken, New 

Jersey. Participants access the IEX 

System through the Exchange-provided 

network interface at the IEX Point-ofPresence 15 or ‘‘POP,’’ located at the 

NY5 data center in Secaucus, New 

Jersey. After entering through the POP, 

a Participant’s inbound 

communications 16 sent to the System 

traverse the IEX ‘‘coil’’ which is a box 

containing approximately 38 miles of 

compactly coiled optical fiber cable. 

After exiting the coil, the inbound 

messages travel an additional 

geographic distribution to the System at 

NJ2. The time required for a message to 

traverse the coil combined with the 

geographic distribution (and related 

networking) to the System equates to an 

equivalent 350 microseconds of latency, 

referred to as the ‘‘inbound latency.’’ 17

All inbound messages (e.g., orders to 

buy or sell and any modification to a 

previously sent open order) from any 

Participant traverse this connectivity 

infrastructure, including the coil, in the 

same manner regardless of the type of 

message or whether the Participant is 

seeking to buy, sell, make or take 

liquidity. 

Additionally, IEX’s affiliated brokerdealer, IEX Services LLC (‘‘IEXS’’), is a 

Member of the Exchange and is subject 

to the same inbound and outbound 

latency as other Members, as described 

in IEX Rules 2.220 and 11.510. If a 

Participant sends a routable order to the 

Exchange it utilizes IEXS for order 

routing to IEX and away venues. After 

traversing the inbound latency to reach 

the System, it is directed to the System 

routing logic rather than the IEX 

matching engine.18 Upon receipt of a 

routable order, the System routing logic 

may route all or a portion of the order 

to the IEX Order Book or to another 

national securities exchange. Any such 

orders routed to the IEX Order Book by 

the System routing logic are subject to 

an additional 350 microsecond inbound 

latency between the IEX routing logic 

and the IEX Order Book.19

IEX is not proposing to make any 

changes to its inbound latency 

(including the additional latency for 

routable orders) or the rules specifying 


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20See IEX Rule 11.510(b)(2). 

21Ordinary course network connectivity includes 

switches and cabling to connect the network access 

point at the POP to the System. 

22 IEX previously subjected all outbound 

messages traveling from the System to the POP to 

a 350-microsecond latency. However, since 

February 2021, IEX’s outbound latency has only 

reflected the actual geographic distribution and 

related network connectivity between the System 

and the POP. See Securities Exchange Act Release 

No. 90645 (December 11, 2020), 85 FR 81982 

(December 17, 2020) (SR–IEX–2020–18) 

(‘‘Outbound Coil Removal Proposal’’); Securities 

Exchange Act Release No. 91016 (January 29, 2021), 

86 FR 8238 (February 4, 2021) (SR–IEX–2020–18) 

(‘‘Outbound Coil Removal Approval Order’’); see 

also IEX Trading Alert #2021–006, available at 

https://iextrading.com/alerts/#/138. The 

Commission received no comments on that 

proposed rule change. See Outbound Coil Removal 

Approval Order, 86 FR 8238. 

23See supra note 20. 

24As described above, IEX’s current technological 

footprint requires all outbound messages from the 

System back to Participants to travel the geographic 

distribution between two data centers in two 

separate cities in New Jersey, thereby subjecting 

outbound messages to a non-negligible outbound 

latency. 25See supra note 23. 

26See Securities Exchange Act Release No. 93800 

(December 16, 2021), 86 FR 72650, 72652 

(December 22, 2021) (SR–IEX–2021–17). 

such latency, except with respect to the 

brief period of time during the migration 

of the Exchange’s primary data center, 

as discussed below. 

Separately, all outbound messages 

from IEX back to a Participant (e.g., 

confirmations of an execution that 

occurred on IEX) currently travel from 

the IEX System at NJ2 to the POP at NY5 

without traversing the coil, referred to 

as the ‘‘outbound latency.’’ 20 The 

outbound latency that presently applies 

to all messages sent from IEX back to 

Participants is determined by the actual 

geographic distribution and related 

network connectivity 21 between the 

Exchange’s System and POP, and 

equates to an equivalent of 37 

microseconds of latency.22 In addition, 

outbound messages from IEX back to a 

Participant with respect to a routable 

order are subject to 37 microseconds of 

additional latency between the Order 

Book and the System routing logic, and 

are then subject to the outbound latency 

back to the Participant.23

IEX plans to relocate its System to a 

new data center in Secaucus, New 

Jersey (NY6), which is in the same data 

center complex as the POP data center 

(NY5), i.e., in separate buildings within 

the same data center complex. This 

configuration is comparable to the 

technological footprints of other 

national securities exchanges whereby 

the POP and trading system are in close 

physical proximity. Because the System 

will be in close proximity to the POP, 

the duration of the outbound latency 

will become negligible after the data 

center migration.24 Thus, IEX 

understands that, as proposed, the 

duration of the outbound latency would 

be in the range of what market 

participants currently experience when 

receiving outbound messages from other 

national securities exchanges. IEX also 

notes that as part of its data center 

migration, it will increase the length of 

the inbound coil to account for the 

reduced physical distance between the 

POP and the System, in order to retain 

the 350-microsecond inbound latency 

without any changes. The additional 

350 microsecond inbound latency 

between the IEX routing logic and the 

IEX Order Book will be unchanged as 

well. 

Proposal 

Currently, IEX’s Rule Book contains 

nine references to the 37-microsecond 

outbound latency. These references 

were included in the relevant IEX Rules 

in 2021 when IEX amended its rules to 

eliminate the outbound coil and thereby 

reduce the outbound latency from 350 

to 37 microseconds to reflect that 

because of the geographic distance 

between the System and the POP, 

outbound messages from IEX’s System 

were still subject to a non-negligible 

delay.25 These rule references are 

unique to IEX; no other national 

securities exchange references either 

their inbound or outbound latencies in 

their rules. IEX believes that including 

any reference to an outbound latency in 

its rules will be unnecessary once the 

data center migration occurs because 

IEX’s operations in this regard will be 

consolidated in close proximity to each 

other in the same manner as most other 

national securities exchanges, and the 

latency applicable to outbound 

messages from the System to 

Participants will be negligible and in the 

range of what market participants 

experience receiving messages from 

other national securities exchanges. As 

proposed, IEX would also delete 

references to the outbound latency 

between the Order Book and System 

routing logic so that IEXS is subject to 

the same outbound latency as other 

Members. 

Thus, IEX proposes to remove all 

references to outbound latencies in its 

rules, and proposes to amend IEX Rules 

11.190(b)(17) and 11.510 as follows: 

• To make the description about how 

market maker pegged orders adjust 

shorter and clearer, without a 

substantive change, modify the twelfth 

sentence of IEX Rule 11.190(b)(17) to 

remove all references to outbound 

latency so that it reads: ‘‘Each time a 

Market Maker Peg order is automatically 

adjusted by the System in accordance 

with this rule, it is subject to 350 

microseconds of latency prior to posting 

on the Order Book at the adjusted 

price.’’ With this proposed change, the 

rule will continue to describe the 350- 

microsecond latency applied whenever 

the System automatically adjusts a 

Market Maker Peg order’s price. This 

additional 350 microsecond latency is 

designed so that a market maker using 

a Market Maker Peg order to facilitate 

compliance with the Exchange’s 

continuous quoting and pricing 

obligations is in the same position as a 

market maker updating its own quote, 

whose orders and order modification 

instructions would be subjected to a 

350-microsecond inbound latency.26

• Make a clarifying change to the 

thirteenth sentence of IEX Rule 

11.190(b)(17), by changing the reference 

to ‘‘the proposed rule’’ to instead read 

‘‘this rule.’’ 

• Modify the third sentence of IEX 

Rule 11.510(a) to remove the description 

of the outbound latency. 

• Remove the fourth sentence of IEX 

Rule 11.510(b), which describes the 

outbound latency. 

• Remove subparagraph (2) of IEX 

Rule 11.510(b) to remove the definition 

of outbound latency. 

• Modify the third sentence of IEX 

Rule 11.510(c)(1) to remove the 

semicolon and the remainder of the text 

following the semicolon. This proposed 

change will retain the description of the 

additional inbound 350-microsecond 

latency the Exchange applies to 

messages from the System routing logic 

to the Order Book, while deleting 

language describing the outbound 

latency from the Order Book to the 

System routing logic because that 

latency will now be negligible. 

• Modify the fourth sentence of IEX 

Rule 11.510(c)(1) immediately after the 

reference to ‘‘each time a Market Maker 

Peg order is automatically adjusted by 

the System’’ to change it from: ‘‘all 

inbound communications related to the 

modified order instruction are subject to 

350 microseconds of latency and all 

outbound communications related to 

the modified order instruction are 

subject to 37 microseconds of latency 

between the Market Maker Peg order 

repricing logic and the Order Book.’’ to 

‘‘it is subject to 350 microseconds of 

latency prior to posting on the Order 

Book at the adjusted price.’’ This 

proposed change reflects that there will 

no longer be a non-negligible outbound 

latency affecting Market Maker Peg 

orders, but that they will continue to be 

subject to an additional 350 


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27 15 U.S.C. 78f(b). 

28 15 U.S.C. 78f(b)(5). 

microseconds of latency if they are 

automatically adjusted by the System. 

As described above, this additional 350 

microsecond latency is designed so that 

a market maker using a Market Maker 

Peg order to facilitate compliance with 

the Exchange’s continuous quoting and 

pricing obligations is in the same 

position as a market maker updating its 

own quote, whose orders and order 

modification instructions would be 

subjected to a 350-microsecond inbound 

latency. 

• Remove the third sentence of IEX 

Rule 11.510(c)(2)(A) to reflect that there 

will no longer be a non-negligible 

outbound latency affecting IEX’s data 

products. 

• Remove the words ‘‘In addition to 

the connectivity described in paragraph 

(b)(2) of this IEX Rule 11.510,’’ from the 

beginning of the second sentence of IEX 

Rule 11.510(c)(3)(A) to delete the 

reference to the now-deleted 

subparagraph (b)(2) of IEX Rule 11.510 

(which had defined the outbound 

latency). And capitalize the ‘‘C’’ in 

‘‘Communications’’, which will become 

the beginning of the second sentence. 

• Modify the first sentence of IEX 

Rule 11.510 Supplementary Material .02 

to remove the words ‘‘and 37 

microseconds of outbound latency’’ 

because outbound messages will no 

longer be subject to a non-negligible 

outbound latency. 

• Delete the fifth sentence of IEX Rule 

11.510 Supplementary Material .03 

because outbound messages from the 

Order Book to the System routing logic 

will no longer be subject to a nonnegligible outbound latency. 

Implementation 

The data center migration will be 

implemented over several weeks and 

will involve relocating the client 

gateways and trading system matching 

engines from the Weehawken, New 

Jersey data center to the Secaucus, New 

Jersey data center. During this transition 

period, Participants will temporarily 

experience 387 microseconds of 

inbound latency rather than 350 

microseconds. Accordingly, IEX 

proposes to add Temporary 

Supplementary Material .01 to Rule 

11.510(a) to provide as follows: 

Data Center Migration. During the 2024 

migration of the Exchange’s primary data 

center from a data center located in 

Weehawken, New Jersey to a data center 

located in Secaucus, New Jersey, Participants 

will experience 387 microseconds of inbound 

latency between the network access point of 

the POP and the System at the primary data 

center. Consequently, during the migration, 

each reference to 350 microseconds of 

inbound latency in this rulebook, including 

this Rule 11.510 and Rule 11.190, shall be 

read as 387 microseconds of inbound latency. 

Notwithstanding the foregoing, a routable 

child order handled by IEXS that is routed 

to the Order Book as described in 

Supplementary Material .03 to this Rule 

11.510 will be subject to 424 microseconds 

of latency between the System routing logic 

to the Order Book, in addition to the 387 

microseconds of inbound latency for the 

parent order between the network access 

point of the POP and the System routing 

logic at the primary data center, described 

above. IEX will issue a Trader Alert in 

advance of the migration describing the 

transition, schedule, and impact on 

Participants. 

IEX will issue a Trading Alert at least 

30 days in advance of the migration 

(and within 120 days of effectiveness of 

this proposed rule change) describing 

the transition, schedule, and impact. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,27 in general, and 

furthers the objectives of Section 

6(b)(5),28 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, 

and 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. 

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with the protection of investors and the 

public interest because it is designed to 

reflect a material change to the location 

of the IEX System following the planned 

data center migration that will result in 

the outbound latency becoming 

negligible and in the range of what 

market participants experience 

receiving messages from other national 

securities exchanges, as discussed in the 

Purpose section. Accordingly, IEX 

believes that removing references to the 

outbound latency and its duration will 

reduce any potential confusion in its 

rules regarding its operations and the 

manner in which Participants will 

receive outbound communications from 

the Exchange. As discussed in the 

Purpose section, following the data 

center migration and consolidation of 

IEX’s System and POP in close 

proximity, its operations in this regard 

will be comparable to most other 

national securities exchanges. Since 

such other exchanges do not include 

references to their outbound latency, or 

its duration, in their rules, continued 

inclusion in IEX’s rules would be 

disparate and could lead to confusion as 

to IEX’s outbound latency. 

As discussed in the Purpose section, 

outbound latency information was 

previously relevant to market 

participants when IEX subjected 

outbound messages to a 350- 

microsecond delay which could impact 

how Members made order routing 

decisions and processed data from IEX. 

And when IEX eliminated the coil from 

its outbound latency in 2021, IEX 

determined that it remained appropriate 

to include the new lower latency metric 

in its rules to provide clarity to market 

participants regarding the change. 

However, IEX believes that market 

participants are now fully aware that 

IEX’s outbound latency is attributable 

only to the actual distance and related 

network connectivity between the 

System and the POP. Because the data 

center migration will consolidate IEX’s 

System and POP in close proximity in 

the same data center complex, as 

discussed in the Purpose section and 

above, virtually all of the existing 

latencies attributable to the physical 

distance between the System in NJ2 and 

the POP in NY5 will be eliminated. As 

a result, notwithstanding that the POP 

and System will be in separate buildings 

(NY5 and NY6, respectively) in the 

same data center complex, IEX’s 

outbound messages to Participants will 

be subject to only negligible latency in 

a substantially comparable manner to 

other national securities exchanges, 

attributable to the negligible distance 

between the System and POP. The 

Exchange notes in this regard that 

system processing, geography/transit 

times, and technology all create latency 

in sending messages from an exchange 

to a participant. IEX believes that, as 

proposed, its outbound latency is within 

the range of the outbound latencies of 

other national securities exchanges. 

Accordingly, IEX believes that including 

any references to outbound latencies in 

its rules is no longer necessary. 

Further, the Exchange believes that 

the proposed rule change is consistent 

with the protection of investors and the 

public interest because it will apply to 

all Members in the same manner. All 

outbound communications will 

continue to be subject to the same 

negligible outbound latency on a fair 

and nondiscriminatory basis. 

With respect to IEXS, its routing 

broker, the Exchange notes that it will 

continue to be on a level playing field 

compared to all other Members, as it 

will be subject to the same inbound and 

outbound latency as other Members 


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29The 424 microseconds of latency is attributable 

to the additional geographic distance that a routable 

order will traverse between the old and new 

primary data centers as well as the standard 

inbound latency during the migration period. 

30See IEX Rule 2.220(a)(3). 

31 15 U.S.C. 78s(b)(3)(A). 

32 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the self-regulatory organization 

to give the Commission written notice of the selfregulatory organization’s 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. IEX has satisfied this requirement 

33See supra note 23. 

except for the brief several week period 

of time during implementation when 

IEXS will be subject to increased 

inbound latency of 424 microseconds 

while other Members will be subject to 

inbound latency of 387 microseconds, 

as described above.29 With respect to 

this time period, the Exchange notes 

that the Act generally does not prohibit 

an exchange from treating its affiliated 

routing broker in a manner that is less 

preferential than other Members. 

Moreover, use of IEXS by other 

Members is optional and any Member 

that does not want to use IEXS may use 

other routers to route orders to away 

trading centers or IEX itself.30

And the Exchange believes that the 

proposed non-substantive clarifying 

change to IEX Rule 11.190(b)(17) is 

consistent with the protection of 

investors and the public interest 

because it will have no impact on the 

Exchange’s functionality, but rather 

simply provide consistency and clarity 

in IEX’s description of the Market Maker 

Peg order type, thereby reducing the 

potential for confusion of any market 

participants. 

As discussed in the Purpose section 

and above, the Exchange also notes that 

no other national securities exchanges 

currently describe their outbound 

message latencies in their rules. IEX 

does not believe that the proposed 

changes raise any new or novel issues 

that have not already been considered 

by the Commission in connection with 

the operations of other national 

securities exchanges. 

Finally, IEX believes that it is 

consistent with the protection of 

investors and the public interest to add 

the Temporary Supplementary Material 

to IEX Rule 11.510(a) describing the 

temporary minor change to inbound 

latency during the data center migration 

to provide transparency to market 

participants. This change will apply to 

all Members in the same manner in a 

fair and nondiscriminatory basis. 

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. To the 

contrary, the proposal is designed to 

reflect that with the data center 

migration, the latency applicable to 

outbound communications from the 

System to Participants will be 

negligible, as described in the Purpose 

and Statutory Basis sections. 

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 after the data center migration, 

IEX’s outbound communications will be 

subject to only a negligible latency. As 

discussed in the Purpose section, upon 

completion of the data center migration, 

IEX’s outbound latency will be in the 

range of what market participants 

currently experience when receiving 

outbound messages from other national 

securities exchanges. Moreover, the 

proposed rule change would benefit 

other such exchanges because it would 

enable them to receive outbound 

communications from IEX (including 

IEX’s Data Products) sooner than is 

currently the case. Similarly, as with 

other Exchange Members, other 

exchanges’ outbound routing brokers 

would receive order messages from IEX 

sooner than is currently the case and 

could more quickly incorporate such 

information into any further routing 

decisions. 

The Exchange also does not believe 

that the proposed rule change will 

impose any burden on intramarket 

competition because it will apply to all 

Members in the same manner. All 

Members will continue to connect to 

IEX at the POP and receive outbound 

communications from IEX subject to the 

same negligible latency. With respect to 

the brief several week period of time 

during implementation when IEXS will 

be subject to increased inbound latency 

of 424 microseconds while other 

Members will be subject to inbound 

latency of 387 microseconds, as noted in 

the Statutory Basis section, the 

Exchange notes that the Act generally 

does not prohibit an exchange from 

treating its affiliated routing broker in a 

manner that is less preferential than 

other Members. Moreover, use of IEXS 

by other Members is optional and any 

Member that does not want to use IEXS 

may use other routers to route orders to 

away trading centers or to IEX itself. 

And as with intermarket competition, 

IEX believes that the data center 

migration and related proposed rule 

change will benefit IEX Members 

because they will receive outbound 

communications from IEX (including 

IEX’s Data Products) sooner than is 

currently the case, thereby enabling 

them to more quickly incorporate such 

information into further trading and 

routing decisions. Moreover, the 

temporary minor change to inbound 

latency will also apply to all Members 

in the same manner. 

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) 31 of the Act and 

Rule 19b–4(f)(6) 32 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 and Rule 19b– 

4(f)(6) thereunder. 

The Exchange does not believe that 

the proposed rule change raises any new 

or novel issues. Indeed, no other 

national securities exchange includes 

outbound latency information in its 

rules. As discussed in the Purpose and 

Burden on Competition sections, IEX 

does not believe that this proposed 

change will impose any burdens on 

inter or intra market competition 

because IEX’s technological footprint 

and related rules will be comparable to 

other national securities exchanges. 

Additionally, as noted in the Purpose 

section, the SEC received no comments 

about IEX’s 2020 proposal to stop 

subjecting outbound messages to a 350- 

microsecond latency, indicating that 

reducing IEX’s outbound latency 

imposes no burden on intermarket 

competition.33

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 


khammond on DSKJM1Z7X2PROD with NOTICES
76530 Federal Register / Vol. 89, No. 181 / Wednesday, September 18, 2024 / Notices 

34 15 U.S.C. 78s(b)(2)(B). 

35 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed fee 

changes on July 3, 2023 (SR–CboeEDGX–2023–045). 

On September 1, 2023, the Exchange withdrew that 

filing and submitted SR–CboeEDGX–2023–058. On 

September 29, 2023, the Securities and Exchange 

Commission issued a Suspension of and Order 

Instituting Proceedings to Determine whether to 

Approve or Disapprove a Proposed Rule Change to 

Amend its Fees Schedule Related to Physical Port 

Fees (the ‘‘OIP’’)in anticipation of a possible U.S. 

government shutdown. ’’). On September 29, 2023, 

the Exchange filed the proposed fee change (SR– 

CboeEDGX–2023–063). On October 13, 2023, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2023–064. On December 12, 2023, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2023–080. On February 12, 2024, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2024–014. On April 9, 2024, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2024–021. On June 7, 2024, the 

Exchange withdrew that filing and submitted SR– 

CboeEDGX–2024–036. On August 29, 2024, the 

Exchange withdrew that filing and submitted this 

filing. 

4See e.g., The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’), General 8, Connectivity to the 

Exchange. Nasdaq and its affiliated exchanges 

charge a monthly fee of $15,000 for each 10Gb Ultra 

fiber connection to the respective exchange, which 

is analogous to the Exchange’s 10Gb physical port. 

See also New York Stock Exchange LLC, NYSE 

American LLC, NYSE Arca, Inc., NYSE Chicago 

Inc., NYSE National, Inc. Connectivity Fee 

Schedule, which provides that 10 Gb LX LCN 

Circuits (which are analogous to the Exchange’s 10 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 34 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number 

SR–IEX–2024–17 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–2024–17. 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–2024–17 and should be 

submitted on or before October 9, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.35

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2024–21174 Filed 9–17–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101016; File No. SR– 

CboeEDGX–2024–057] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend its 

Fees Schedule Related to Physical 

Port Fees 

September 12, 2024. 

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 August 

29, 2024, Cboe EDGX Exchange, Inc. 

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

the Securities and Exchange 

Commission (‘‘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 

Cboe EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX Options’’) 

proposes to amend its Fees Schedule. 

The text of the proposed rule change is 

provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/edgx/), 

at the Exchange’s Office of the 

Secretary, 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 

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 

The Exchange proposes to amend its 

fee schedule relating to physical 

connectivity fees.3

By way of background, a physical port 

is utilized by a Member or non-Member 

to connect to the Exchange at the data 

centers where the Exchange’s servers are 

located. The Exchange currently 

assesses the following physical 

connectivity fees for Members and nonMembers on a monthly basis: $2,500 per 

physical port for a 1 gigabit (‘‘Gb’’) 

circuit and $7,500 per physical port for 

a 10 Gb circuit. The Exchange proposes 

to increase the monthly fee for 10 Gb 

physical ports from $7,500 to $8,500 per 

port. The Exchange notes the proposed 

fee change better enables it to continue 

to maintain and improve its market 

technology and services and also notes 

that the proposed fee amount, even as 

amended, continues to be in line with, 

or even lower than, amounts assessed by 

other exchanges for similar 

connections.4 The Exchange also notes 


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