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[Federal Register Volume 89, Number 235 (Friday, December 6, 2024)]
[Notices]
[Pages 97125-97127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28539]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101782; File No. SR-IEX-2024-27]

Self-Regulatory Organizations; Investors Exchange LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Provide 
that DEEP+ Data Will Be Included in the Exchange's HIST Data Product

December 2, 2024.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on November 27, 2024, the Investors Exchange LLC (``IEX'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``Commission'') the proposed rule change as described in Items I 
and II below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.

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[[Page 97126]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Pursuant to the provisions of Section 19(b)(1) under the Act,\4\ 
and Rule 19b-4 thereunder,\5\ the Exchange is filing with the 
Commission a proposed rule change to provide that DEEP+ data will be 
included in its HIST \6\ Data Product. The Exchange has designated this 
rule change as ``non-controversial'' under Section 19(b)(3)(A) of the 
Act \7\ and provided the Commission with the notice required by Rule 
19b-4(f)(6) thereunder.\8\
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    \4\ 15 U.S.C. 78s(b)(1).
    \5\ 17 CFR 240.19b-4.
    \6\ See IEX Rule 11.330(a)(5).
    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4.
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    The text of the proposed rule change is available at the Exchange's 
website at 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 the 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of and basis for the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in Sections A, B, and C below, of the 
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is making this filing to provide that DEEP+ data will 
be included in its HIST Data Product.
    IEX introduced HIST in 2017.\9\ HIST is ``a data product that 
offers historical data.'' \10\ At the time IEX introduced HIST, the 
Exchange offered two real-time data products: TOPS,\11\ an uncompressed 
data feed that offers aggregated top of book quotations for all 
displayed orders resting on the Order Book; and DEEP,\12\ an 
uncompressed data feed that provides aggregated depth of book 
quotations for all displayed orders resting on the Order Book at each 
price level.\13\ Thus, in the 2017 filing to adopt HIST, IEX described 
HIST as including ``the same substantive data that is provided in real 
time via TOPS and DEEP on a T+1 basis via the Exchange's public 
website, free of charge.'' \14\
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    \9\ See Securities Exchange Act Release No. 80845 (June 1, 
2017), 82 FR 26552 (June 6, 2017) (SR-IEX-2017-19).
    \10\ See IEX Rule 11.330(a)(5).
    \11\ See IEX Rule 11.330(a)(1).
    \12\ See IEX Rule 11.330(a)(2).
    \13\ TOPS and DEEP also include execution information (i.e., 
last sale information) for executions on the Exchange and IEX 
Auction information for any IEX-listed securities. See IEX Rule 
11.330(a)(1) and (2).
    \14\ See supra note 9. HIST files are posted to the IEX website 
after the close of trading and can be accessed at https://iextrading.com/trading/market-data/#hist-download.
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    IEX recently filed an immediately effective rule change proposal to 
introduce a new data product, DEEP+, which will disseminate, on a real-
time basis, order-by-order information for all displayed orders resting 
on the Order Book for securities traded on IEX and execution 
information (i.e., last sale information) for executions on the 
Exchange.\15\ While DEEP+ and DEEP will both provide information about 
all displayed orders resting on the IEX Order Book (and last sale 
information), DEEP+ will provide information about each displayed 
resting order, while DEEP will continue to provide information about 
the total volume of displayed interest resting at any price.\16\ IEX 
plans to introduce DEEP+ on December 9, 2024.\17\
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    \15\ See Securities Exchange Act Release No. 101231 (October 2, 
2024), 89 FR 81608 (October 8, 2024) (SR-IEX-2024-20); see also IEX 
Rule 11.330(a)(3).
    \16\ Id.
    \17\ See Trading Alert # 2024-037, available at https://iextrading.com/alerts/#/275.
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    While IEX Rule 11.330(a)(5), which describes HIST, is not specific 
as to which historical data is included therein, IEX's 2017 rule filing 
adopting HIST provided that TOPS and DEEP data would be included, as 
noted above. Accordingly, the Exchange is making this rule filing to 
provide that HIST will also include DEEP+ data. IEX is not proposing to 
modify the language in Rule 11.330(a)(5) which will continue to state: 
``HIST. Historical Data is a data product that offers historical 
data.'' IEX notes that other exchanges that offer an historical data 
product do not provide specificity on which of their market data 
products are included in their historical data products.\18\
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    \18\ See, e.g., Cboe BZX Rule 11.22(h) (``Historical Data. 
Historical Data is a data product that offers historical equities 
data''); MEMX Rule 13.8(d) (``MEMOIR Historical Data. MEMOIR 
Historical Data is a data product that offers historical equities 
data'').
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\19\ in general, and furthers the 
objectives of Section 6(b)(5),\20\ in particular, in that it would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system because it is designed to add the 
same substantive data that IEX will provide in real-time via the new 
DEEP+ data product to HIST, thereby providing additional transparency 
regarding historical IEX displayed orders to Members \21\ and other 
users of IEX data products.
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    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(5).
    \21\ See IEX Rule 1.160(s).
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    As discussed in the Purpose section, IEX publishes the HIST file, 
which contains the same substantive data that is provided in real-time 
via TOPS and DEEP, to its website after the close of trading, where it 
is offered free of charge. Adding DEEP+ data to HIST is fully 
consistent with this approach. Further, other exchanges offer depth of 
book data in their historical data products in a comparable manner.\22\ 
Therefore, the Exchange does not believe that this proposed rule change 
raises any new or novel issues not already considered by the 
Commission.
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    \22\ See supra note 18.
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    IEX also believes that the proposed rule change is 
nondiscriminatory since all Members and other market participants will 
be able to access DEEP+ data through HIST.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. As described in the Purpose 
and Statutory Basis sections, this rule filing merely proposes to add 
to its HIST data product the substantive data that will be provided in 
real-time via the new DEEP+ market data product, which will provide 
enhanced transparency to Members and other users of IEX data products 
regarding historical displayed orders on IEX.
    With regard to intra-market competition, the proposed rule change 
will apply equally to all Members and other market participants on a 
fair, impartial and nondiscriminatory basis without imposing any new 
burdens. Access to HIST is optional and will be available to all 
Members and market participants in the same manner.
    With regard to inter-market competition, other exchanges are free 
to adopt similar data products subject to

[[Page 97127]]

the SEC rule filing process, and others have done so.\23\
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    \23\ See supra note 18.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has designated this rule filing as non-controversial 
under Section 19(b)(3)(A) \24\ of the Act and Rule 19b-4(f)(6) \25\ 
thereunder. Because the proposed rule change does not (i) significantly 
affect the protection of investors or the public interest; (ii) impose 
any significant burden on competition; and (iii) become operative for 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, it has become effective pursuant to 
Section 19(b)(3)(A) of the Act \26\ and Rule 19b-4(f)(6) 
thereunder.\27\
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    \24\ 15 U.S.C. 78s(b)(3)(A).
    \25\ 17 CFR 240.19b-4(f)(6).
    \26\ 15 U.S.C. 78s(b)(3)(A).
    \27\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \28\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \29\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may be operative concurrent with IEX's planned 
implementation of DEEP+ on December 9, 2024. The Commission believes 
that the proposed rule change raises no novel issues and that waiver of 
the operative delay is consistent with the protection of investors and 
the public interest. Therefore, the Commission hereby waives the 
operative delay and designates the proposal operative upon filing.\30\
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    \28\ 17 CFR 240.19b-4(f)(6).
    \29\ 17 CFR 240.19b-4(f)(6)(iii).
    \30\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \31\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \31\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-IEX-2024-27 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-2024-27. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (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 will also be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-IEX-2024-27 and should be 
submitted on or before December 27, 2024.
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    \32\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\32\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-28539 Filed 12-5-24; 8:45 am]
BILLING CODE 8011-01-P
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