Document ID: SEC-2016-1335-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Investors Exchange, LLC
Posted Date: 2016-08-01T04:00Z

[Federal Register Volume 81, Number 147 (Monday, August 1, 2016)]
[Notices]
[Pages 50572-50573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18056]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78420; File No. SR-IEX-2016-02]

Self-Regulatory Organizations; Investors Exchange LLC; Notice of 
Filing of Proposed Rule Change To Amend Rule 11.230 To Rename the 
``Router Plus'' Routing Option to ``Router''

July 26, 2016.
    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 July 13, 2016, 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 Exchange has designated this proposal as a ``non-
controversial'' proposed rule change pursuant to Section 19(b)(3)(A) of 
the Act \4\ and Rule 19b-4(f)(6)(iii) thereunder,\5\ which renders it 
effective upon filing with the Commission. 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.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 17 CFR 240.19b-4(f)(6)(iii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change
    The Exchange proposes to amend subparagraph (c)(2) of Rule 11.230 
(Order Execution) to rename the Router Plus routing option to Router.
    The text of the proposed rule change is available at the Exchange's 
Web site 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 [sic] may be examined 
at the places specified in Item IV below. The self-regulatory 
organization has prepared summaries, set forth in Sections A, B, and C 
below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change
1. Purpose
    The purpose of the proposed rule change is to change the references 
in Rule 11.230(c)(2) from ``Router Plus'' to ``Router,'' consistent 
with the Exchange's re-branding of its routing options prior to 
Exchange launch. The name change from Router Plus to Router is a non-
substantive change. No changes to the functionality of this routing 
option are proposed.
    Currently, subparagraph (c) of Rule 11.230 describes two routing 
options offered by the Exchange: Router Basic and Router Plus. The 
proposed change would merely rename Router Plus to Router. Router Basic 
is a routing option under which an order is sent to destinations on the 
System routing table. If shares remain unexecuted after routing, they 
are posted on the Order Book or canceled, as per User instruction. Once 
posted on the Order Book, the unexecuted portion of such an order is 
eligible for the re-sweep behavior described in paragraph (3), market 
conditions permitting. Router Plus (which as proposed, would be 
retitled Router) is a routing option under which an order is sent to 
the Order Book to check for available shares and then any remainder is 
sent to destinations on the System routing table. If shares remain 
unexecuted after routing, they are posted on the Order Book or 
canceled, as per User instruction. Once posted on the Order Book, the 
unexecuted portion of such an order is eligible for the re-sweep 
behavior described in paragraph (3), market conditions permitting. As 
stated above, the proposed change would merely rename Router Plus to 
Router.
2. Statutory Basis
    IEX believes that the proposed rule change is consistent with the 
provisions of Section 6 of the Act \6\ in general and with Sections 
6(b) \7\ of the Act \8\ in particular, in that it is designed to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in facilitating transactions in 
securities, 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.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f.
    \8\ 15 U.S.C. 78f(b)(5).
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    Specifically, the proposed rule change is a stylistic change to 
remove the word ``plus'' in the name of the router option consistent 
with the Exchange's re-branding of its routing options prior to 
Exchange launch. Accordingly, the Exchange believes this nonsubstantive 
change will make the Exchange's rules clearer for market participants 
by removing unnecessary verbiage.
B. Self-Regulatory Organization's Statement on Burden on Competition
    IEX does not believe that the proposed rule change will impose any 
burden on competition, because the Exchange is not proposing any 
substantive changes to Rule 11.230(c)(2).
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) \9\ of the Act and Rule 19b-4(f)(6) \10\ 
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 if consistent with 
the protection of investors and the public interest, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\11\ The Exchange notes that its proposal makes a 
stylistic, non-substantive change and has asked the Commission to waive 
the 30-day operative delay, making this proposal operative upon filing. 
The Commission believes that waiver of the operative delay is 
consistent with the protection of investors and the public interest 
because the Exchange is not

[[Page 50573]]

substantively altering the routing options it offers but rather is 
amending the terminology it uses to identify one particular routing 
option. Therefore, the Commission hereby waives the operative delay and 
designates the proposed rule change operative upon filing.\12\
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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.
    \12\ 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) \13\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \13\ 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File SR-IEX-2016-02 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-2016-02. 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 Web site (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 Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-IEX-2016-02 and should be 
submitted on or before August 22, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-18056 Filed 7-29-16; 8:45 am]
 BILLING CODE 8011-01-P