[Federal Register Volume 86, Number 219 (Wednesday, November 17, 2021)]
[Notices]
[Pages 64268-64276]
[FR Doc No: 2021-25021]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93557; File No. SR-IEX-2021-14]

Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its
Fee Schedule for Market Data Fees

November 10, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on November 1, 2021, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 modify its Fee Schedule, pursuant
to IEX Rules 15.110(a) and (c), to assess fees for receipt and
distribution of its proprietary market data feeds. IEX will implement
the proposed fee beginning on January 3, 2022, to provide an
opportunity for subscribers to update their data subscriptions to suit
their particular market data needs.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78s(b)(1).
    \4\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

    The text of the proposed rule change is available at the Exchange's
website at www.iextrading.com, at the principal office of the Exchange,
and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of and basis for the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has

prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.

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

1. Purpose
    IEX is proposing to modify its Fee Schedule, pursuant to IEX Rules
15.110(a) and (c), to assess fees for receipt and distribution of its
proprietary market data feeds.
    IEX has not previously imposed any fees to access its real-time top
of book (``TOPS'' \5\) and depth of book (``DEEP'' \6\) proprietary
market data feeds (``IEX Data''),\7\ either by direct recipients or
through redistribution. In general, IEX believes that exchanges, in
setting fees of all types, should meet very high standards of
transparency to demonstrate why each new fee or fee increase meets the
Exchange Act requirements that fees be reasonable, equitably allocated,
not unfairly discriminatory, and not create an undue burden on
competition among members and markets. IEX believes this high standard
is especially important when an exchange imposes fees for its own
market data, because it believes each exchange has a natural monopoly
over its own market data (specifically depth of book and direct access
to top of book). Therefore, IEX believes that each exchange should
demonstrate that these fees bear a reasonable relationship to its costs
and reasonable business needs and that it is not taking unfair
advantage of its unique position as the sole provider of its own
proprietary market data.
---------------------------------------------------------------------------

    \5\ See IEX Rule 11.330(a)(1).
    \6\ See IEX Rule 11.330(a)(3).
    \7\ As discussed below, both TOPS and DEEP also include last
sale information.
---------------------------------------------------------------------------

    In proposing to charge fees for access to IEX Data, IEX has sought
to determine such fees in a transparent way in relation to its own
aggregate costs of providing the related service, and also carefully
and transparently assess the impact on Data Subscribers \8\--both
generally and in relation to other Data Subscribers, i.e., to assure
the fee will not create an undue financial burden on any participant
and will not have an undue impact in particular on smaller Data
Subscribers and competition among Data Subscribers in general.
---------------------------------------------------------------------------

    \8\ ``Data Subscriber'' refers to any natural person or entity,
that receives real-time market data either directly from IEX or from
another Data Subscriber. IEX notes that the current recipients of
IEX Data include many Members of the Exchange, see IEX Rule
1.160(s), but also include several non-Members, including vendors
who redistribute IEX Data to third-party recipients.
---------------------------------------------------------------------------

    IEX believes that this level of diligence and transparency is
called for by the requirements of Section 19(b)(1) under the Act,\9\
and Rule 19b-4 thereunder,\10\ with respect to the types of information
self-regulatory organizations (``SROs'') should provide in seeking
approval of any fee changes, and Section 6(b) of the Act,\11\ which
requires, among other things, that exchange fees be reasonable and
equitably allocated,\12\ not designed to permit unfair
discrimination,\13\ and that they not impose a burden on competition
not necessary or appropriate in furtherance of the purposes of the
Act.\14\ This rule change proposal addresses those requirements, and
the analysis and data in each of the sections that follow are designed
to clearly and comprehensively show how they are met.\15\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(1).
    \10\ 17 CFR 240.19b-4.
    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4).
    \13\ 15 U.S.C. 78f(b)(5).
    \14\ 15 U.S.C. 78f(b)(8).
    \15\ In May 2019, the Commission staff published guidance
suggesting the types of information that SROs may use to demonstrate
that their fee filings comply with the standards of the Exchange Act
(``Guidance''). While IEX understands that the Guidance does not
create new legal obligations on SROs, the Guidance is consistent
with IEX's view about the type and level of transparency that
exchanges should meet to demonstrate compliance with their existing
obligations when they seek to charge new fees. See Staff Guidance on
SRO Rule Filings Relating to Fees (May 21, 2019) available at
https://www.sec.gov/tm/staff-guidance-sro-rule-filings-fees.
---------------------------------------------------------------------------

    As noted above, IEX offers two real-time proprietary market data
feeds: TOPS and DEEP. TOPS is an uncompressed data feed that offers
aggregated top of book quotations for all displayed orders resting on
the Order Book \16\ and last sale information for executions on the
Exchange.\17\ The data available in TOPS is also available through the
securities information processor (``SIP'') feeds. DEEP is an
uncompressed data feed that provides aggregated depth of book
quotations for all displayed orders resting on the Order Book at each
price level and last sale information for executions on the
Exchange.\18\ DEEP includes all resting displayed liquidity on the
Exchange, aggregated by price level, meaning it includes the top of
book quotes contained in TOPS, and also contains any less aggressively
priced displayed quotes. The content of both TOPS and DEEP is derived
exclusively from orders that are sent by the Exchange's Members,\19\
which the Exchange formats and rebroadcasts to market participants and
to data vendors.
---------------------------------------------------------------------------

    \16\ See IEX Rule 1.160(p).
    \17\ See IEX Rule 11.330(a)(1).
    \18\ See IEX Rule 11.330(a)(3).
    \19\ See IEX Rule 1.160(s).
---------------------------------------------------------------------------

    IEX currently does not charge fees for access to IEX Data,
irrespective of whether the Data Subscriber is a Member or not, the
manner in which the data is received or used, the number of users, how
quickly the recipient is able to receive the data after it is made
available by the System,\20\ or whether the data is subject to any
delay through the redistribution process. The objective of this
approach was to eliminate any fee-based barriers to access IEX Data
when IEX launched as a national securities exchange in 2016, and it was
successful in achieving this objective in that a large number of both
Members and non-Members currently receive either TOPS, DEEP, or both.
As discussed more fully below, IEX recently calculated its annual
aggregate costs for providing IEX Data to its Data Subscribers at
approximately $2.5 million. Because IEX has to date offered IEX Data
free of charge, IEX has borne 100% of all costs for the compilation and
dissemination of IEX Data to IEX's Data Subscribers.
---------------------------------------------------------------------------

    \20\ See IEX Rule 1.160(nn).
---------------------------------------------------------------------------

    In order to establish fees that are intended to recover the
aggregate costs of providing IEX Data to its Data Subscribers and limit
the amount of potential return in excess of those costs to a reasonable
markup, the Exchange is proposing to modify its Fee Schedule, pursuant
to IEX Rules 15.110(a) and (c), to charge all Data Subscribers fees to
access IEX Data in real time. In addition, Data Subscribers that
redistribute IEX Data in real time to an external, non-affiliated \21\
third party would be subject to redistribution fees. However, Data
Subscribers that redistribute IEX Data subject to a delay of at least
fifteen milliseconds (``Delayed IEX Data'') \22\ will not be subject to
a fee for such redistribution, and the recipients of Delayed IEX Data
(``Delayed IEX Data Recipient'') will not be considered to be

Data Subscribers.\23\ Neither approach will differentiate between
redistribution to Data Subscribers that receive IEX Data in displayed
versus non-displayed format, whether in real time or delayed.
---------------------------------------------------------------------------

    \21\ The Data Subscriber Agreement defines affiliate as ``any
individual, corporation, company, partnership, limited partnership,
limited liability company, trust, association or other entity that,
directly or indirectly through one or more intermediaries, controls,
is controlled by or is under common control with such party.'' A
non-affiliated third-party is any individual, corporation, company,
partnership, limited partnership, limited liability company, trust,
association or other entity that is not an affiliate of the Data
Subscriber pursuant to such definition.
    \22\ IEX only provides real-time IEX Data and will not itself
delay the dissemination of IEX Data to Data Subscribers.
    \23\ Data Subscribers, whether they receive IEX Data directly
from the Exchange or from another Data Subscriber, will be required
to enter into a Data Subscriber Agreement with IEX, which will be
made available on IEX's website. Delayed IEX Data Recipients will
not be required to enter into a Data Subscriber Agreement with IEX.
---------------------------------------------------------------------------

    Specifically, IEX proposes to charge the following flat fees to any
Data Subscriber: $500 per month for real-time access to the TOPS feed;
$2,500 per month for real-time access to the DEEP feed; and $500 per
month to redistribute either the TOPS or DEEP feed (or both TOPS and
DEEP) in real time. As noted above, IEX is proposing that
redistribution of TOPS or DEEP after [sic] at least a fifteen-
millisecond delay will be free. Data Subscribers may therefore
redistribute IEX Data to any Delayed IEX Data Recipient without paying
any distribution fees to IEX, and without requiring the Delayed IEX
Data Recipient to become a Data Subscriber.\24\ And IEX is also not
proposing to charge a distribution fee to a Delayed IEX Data Recipient
that further redistributes Delayed IEX Data.
---------------------------------------------------------------------------

    \24\ The Delayed IEX Data Recipient may be subject to any fees
charged by the redistributor of the Delayed IEX Data, based upon the
contractual arrangement between the Delayed IEX Data Recipient and
the provider of Delayed IEX Data. Such fees would not be paid to the
Exchange.
---------------------------------------------------------------------------

    IEX's proposed market data fees are based on a cost-plus model. In
determining the appropriate fees to charge, IEX considered its costs of
providing market data, using what it believes to be a conservative
methodology (i.e., that strictly considers only those costs that are
most clearly directly related to the production and distribution of IEX
Data) to estimate such costs,\25\ as well as the relative costs of
compiling the TOPS and DEEP feeds,\26\ and set fees that are designed
to cover its costs with a limited return in excess of such costs.
However, as discussed more fully below, such fees may also result in
IEX recouping less than all of its costs of providing market data
because of the uncertainty of forecasting Data Subscriber decision-
making with respect to their IEX market data subscriptions.
---------------------------------------------------------------------------

    \25\ For example, IEX only included the costs associated with
physical assets that are directly responsible for producing and
transmitting IEX Data, and excluded from its market data cost
calculations any physical connectivity assets that are used to
provide both order entry and market data. See Cost Study at 16.
Thus, IEX notes that this methodology underestimates the total costs
of providing market data.
    \26\ DEEP is an aggregated feed that must perform additional
logic on each order-related message received from the System to
calculate the total number of displayed shares available at each
price level. TOPS requires less processing than DEEP because it only
aggregates displayed liquidity at a single price level, the top of
book.
---------------------------------------------------------------------------

    Applying this pricing model, IEX is proposing to charge $500 per
month for real-time receipt of TOPS and $2,500 per month for real-time
receipt of DEEP. IEX believes that it is reasonable and appropriate to
charge a higher fee for DEEP because it contains significantly more
market data than TOPS and costs more for IEX to compile.\27\
Additionally, IEX's proposed fee structure for TOPS and DEEP is
designed to make real time access to IEX's top of book widely available
to a broad base of market participants. In order to accomplish this
goal, IEX proposes to allocate its cost plus structure so that TOPS is
materially more affordable than DEEP. IEX also notes, as described in
footnote 23 [sic], supra, that because it contains multiple price
levels, DEEP requires more processing (and related costs) for IEX to
generate than TOPS.
---------------------------------------------------------------------------

    \27\ See supra note 26.
---------------------------------------------------------------------------

    IEX is also proposing to charge a $500 per month redistribution fee
to Data Subscribers that choose to redistribute IEX market data in real
time to an external, non-affiliate third party. Enabling redistribution
in real time adds to IEX's administrative expenses related to the need
to identify and track the recipients of IEX Data. In addition, IEX
notes that if it allowed Data Subscribers to redistribute IEX Data in
real time without any additional fees, it could enable Data Subscribers
to circumvent IEX's fees for providing IEX Data, which would conflict
with IEX's objective to recover its costs of producing IEX Data.
    Finally, IEX is charging only for data that is made available in
real time, because it is the very demand for real-time, low latency
data that drives much of the costs associated with creating and
distributing IEX Data. For example, IEX must invest more in the
resiliency, capacity, and redundancy of its proprietary market data
feeds to provide real-time, low latency access to IEX Data. Moreover,
not charging IEX fees for Delayed IEX Data is also consistent with
IEX's desire to make its data broadly available to a range of market
participants including long-term investors.
    As discussed below, this total maximum cost of $3,500 per month for
a Data Subscriber to receive all IEX Data and be permitted to
redistribute it in real time, reflects an amount that at most would
lead to a reasonable markup over IEX's costs of providing IEX Data, and
may even result in only a partial recoupment of IEX's costs.
    In January 2019, IEX conducted a study of its aggregate costs to
produce market data and connectivity (the ``Cost Study'').\28\ The Cost
Study includes a detailed analysis of IEX's aggregate baseline costs,
including the methodology it used for determining such costs for three
separate segments--market data, physical connectivity (the physical
connections required to access IEX in its data center), and logical
connectivity, which concerns the cost to offer and maintain Order Entry
Ports. The Cost Study estimated IEX's aggregate annual cost to offer
IEX Data to its Data Subscribers to be approximately $1.8 million per
year, as reflected in Table 1.\29\
---------------------------------------------------------------------------

    \28\ See ``The Cost of Exchange Services--Disclosing the Cost of
Offering Market Data and Connectivity as a National Securities
Exchange'' (January 2019) available at https://iextrading.com/docs/The%20Cost%20of%20Exchange%20Services.pdf.
    \29\ See Cost Study at 15-18 for details on how IEX estimated
the costs of its market data infrastructure; see also supra note 25.

                                 Table 1
------------------------------------------------------------------------
                                                               (2019)
           Annual IEX Market Data Infrastructure            ($1,791,403)
------------------------------------------------------------------------
Top of Book Servers (TOPS) (5)............................     ($12,833)
Depth of Book Servers (DEEP) (5)..........................      (12,833)
Market Data Feeds Switches................................      (13,333)
(2 x 24 port).............................................
ITF Market Data...........................................       (7,333)
Data Center Space, Power, Security........................      (10,605)
Administrative Access.....................................      (33,333)
Monitoring................................................     (596,135)
Personnel.................................................   (1,104,998)
                                                           -------------
  Total Annual Costs......................................   (1,791,403)
------------------------------------------------------------------------

    IEX recently updated and refreshed the cost estimates contained in
the Cost Study. As further detailed below, this update reflects
somewhat lower annual hardware costs related to market data than
contained in the 2019 Study, and somewhat higher personnel costs.
Considering all factors together, the updated estimates reflect an
increase in total annual costs to produce market data from $1,791,403
to $2,483,644.
    Table 2, below, details the individual annual line-item costs
considered by IEX to be directly related to offering IEX Data to Data
Subscribers.\30\ The chart shows three cost components: (1) Direct
costs, such as servers, infrastructure, and monitoring; (2) enhancement
initiative costs (e.g., new functionality for IEX Data and increased
capacity for the proprietary market data feeds, as described below);
\31\ and (3) personnel

costs. The servers included were limited to those specifically
dedicated to IEX Data. ``Monitoring'' includes hardware and software
licenses used to monitor these servers and the health of the market
data products provided by such assets. All physical assets and
software, which also includes assets used for testing and monitoring of
market data infrastructure, were valued at cost, and depreciated over
three years. For personnel costs, IEX calculated an allocation of
employee time for employees whose functions include providing and
maintaining IEX Data and/or the proprietary market data feeds used to
transmit IEX Data,\32\ and used a blended rate of compensation
reflecting salary, stock and bonus compensation, bonuses, benefits,
payroll taxes, and 401(k) matching contributions.\33\
---------------------------------------------------------------------------

    \30\ Table 2 also shows the breakdown of the 2019 estimated
market data infrastructure costs.
    \31\ These enhancement initiative costs are a routine part of
offering proprietary market data. Some of the enhancement costs in
Table 2, such as the introduction of the snapshot functionality for
TOPS and DEEP, are one-time costs, but each year IEX expects to
incur new enhancement costs such as the costs associated with
increasing the capacity of its market data feeds and costs
associated with upgrading its market data infrastructure, as well as
any new functionality. Thus IEX believes that its annual enhancement
costs on an ongoing basis will be similar and that the enhancement
costs included in the 2021 update are not extraordinary.
    \32\ Notably, IEX did not include any costs associated with
operating the Exchange itself in calculating the costs of offering
IEX Data.
    \33\ Applying the methodology of the Cost Study, IEX determined
cost allocation for employees who perform work in support of
compiling and disseminating IEX Data to arrive at a full time
equivalent (``FTE'') of 6.15 FTEs across all the identified
personnel (the FTE at the time of the Cost Study was 4.05). IEX then
multiplied the FTE times a blended compensation rate for all
relevant IEX personnel to determine the personnel costs associated
with compiling and disseminating IEX Data.

                                 Table 2
------------------------------------------------------------------------
                                               2019            2021
  Annual IEX Market Data Infrastructure    ($1,791,403)    ($2,483,644)
------------------------------------------------------------------------
Direct Costs:
    Servers.............................       ($32,999)       ($26,696)
    Network Infrastructure & Admin              (46,666)       (152,783)
     Access.............................
    Monitoring..........................       (596,135)       (213,109)
    Data Center (Space, Power, Security)        (10,605)        (79,142)
Enhancement Initiatives Costs:
    DEEP Snapshot.......................             N/A        (95,974)
    TOPS Snapshot.......................             N/A        (95,974)
    Capacity Planning...................             N/A       (232,856)
    Monitoring Tools....................             N/A        (49,609)
Ongoing Personnel Costs.................     (1,104,998)     (1,537,500)
                                         -------------------------------
    Total Annual Costs..................     (1,791,403)     (2,483,644)
------------------------------------------------------------------------

    As noted in Table 2, IEX continues to introduce enhancement
initiatives to IEX Data. First, effective February 3, 2021, IEX
launched ``DEEP Snapshot'', which allows Data Subscribers to download
point-in-time snapshots of DEEP in order to enable Data Subscribers to
accelerate late start recovery.\34\ Second, effective September 27,
2021, IEX launched ``TOPS Snapshot'', which allows Data Subscribers to
download point-in-time snapshots of TOPS in order to enable them to
accelerate late-start recovery. Third, IEX is in the process of
expanding the capacity and monitoring tools that support the efficient
transmission of IEX Data to the IEX's proprietary market data feeds.
---------------------------------------------------------------------------

    \34\ See Trading Alert No. 2021-003, available at https://iextrading.com/alerts/#/135.
---------------------------------------------------------------------------

    IEX also notes that it has made recent changes to its system
functionality and architecture which improve the content and speed of
IEX's proprietary market data feeds, but that have no impact on IEX's
estimated costs of providing IEX Data. For example, effective February
16, 2021, IEX removed its outbound 350 microsecond latency
``speedbump'' while retaining its inbound 350 microsecond latency
``speedbump.'' \35\ Prior to that date, IEX disseminated its top of
book data and last sale data to the SIPs free of any artificial delays,
but all other outbound messages, including IEX Data transmitted through
IEX's proprietary market data feeds, were subjected to a 350-
microsecond latency.\36\ Additionally, on April 1, 2021, IEX began to
display odd lot sized orders, which are aggregated by price on DEEP,
and can aggregate to form the top of book quote on TOPS.\37\ And on
October 13, 2021, IEX began disseminating a ``Retail Liquidity
Indicator'' on both TOPS and DEEP, which tells market participants when
IEX has at least one round of Retail Liquidity Provider order \38\
interest available for a particular security, which is resting at the
Midpoint Price \39\ and priced at least $0.001 better than the NBB \40\
or NBO.\41\ The Retail Liquidity Indicator reflects the symbol and side
of the resting interest, but does not include the price or size.\42\
---------------------------------------------------------------------------

    \35\ See Trading Alert 2021-006, available at https://iextrading.com/alerts/#/138.
    \36\ See Securities Exchange Act Release No. 91016, January 29,
2021, 86 FR 8238 (February 4, 2021) (SR-IEX-2020-18).
    \37\ See Trading Alert 2021-010, available at https://iextrading.com/alerts/#/142; see also, See Securities Exchange Act
Release No. 90933, January 15, 2021, 86 FR 6687 (January 22, 2021)
(SR-IEX-2021-01).
    \38\ See IEX Rule 11.190(b)(14).
    \39\ The term ``Midpoint Price'' means the midpoint of the NBBO.
See IEX Rule 1.160(t). The term ``NBBO'' means the national best bid
or offer, as set forth in Rule 600(b) of Regulation NMS under the
Act, determined as set forth in IEX Rule 11.410(b).
    \40\ See IEX Rule 1.160(u).
    \41\ Id.
    \42\ See Trading Alert 2021-036, available at https://iextrading.com/alerts/#/169; see also, Securities Exchange Act
Release No. 92398 (July 13, 2021), 86 FR 38166 (July 19, 2021) (SR-
IEX-2021-06).
---------------------------------------------------------------------------

    IEX now proposes a fee structure designed to recoup its costs and
limit any revenue in excess of cost to an amount that represents no
more than what IEX believes is a reasonable rate of return over such
costs.\43\ If all of IEX's current Data Subscribers continue to receive
and, as applicable, redistribute, real-time IEX Data, IEX estimates it
would earn at most an approximately 95% markup over its costs (a total
of $4,878,000 annually). IEX believes that such a scenario is unlikely
(as discussed more fully below), so that any return in excess of its
costs is likely to be significantly lower (IEX is targeting a return of
25% over its costs).\44\ IEX believes that this cost-plus pricing model
would allow IEX to recoup its annualized costs and continuing

investments in its market data infrastructure, while introducing a
straightforward pricing framework that would not be unwieldy or onerous
for even the heaviest users of IEX Data, which would pay at most $3,500
per month for access to both TOPS and DEEP and the right to
redistribute IEX Data in real time.
---------------------------------------------------------------------------

    \43\ IEX notes that it is not only being transparent about its
costs associated with producing IEX Data, but is also being
transparent about what it thinks the appropriate markup over costs
should be.
    \44\ If the revenue IEX receives from the proposed fees
materially deviates from IEX's projections described herein, IEX
will assess whether it is appropriate to make a rule filing pursuant
to Section 19(b) of the Act to increase or decrease the fees
accordingly.
---------------------------------------------------------------------------

    As described in the Statutory Basis section, IEX does not believe
that exchange market data fees are constrained by competitive market
forces, and therefore does not believe this fee proposal should be
based on a comparative analysis of IEX's proposed fees for IEX Data and
the fees charged by IEX's competitors for the equivalent data.
Furthermore, IEX does not have visibility into other equities
exchanges' costs to provide market data or their fee markup over those
costs, and therefore cannot use other exchange's market data fees as a
benchmark to determine a reasonable markup over the costs of providing
market data. Nevertheless, IEX believes the other exchange's market
data fees are a useful example of alternative approaches to providing
and charging for market data. To that end, IEX notes that its proposed
fees are materially lower than what competing equities exchanges charge
IEX for similar market data products.\45\ Specifically, during 2021 to
date, IEX paid an aggregate of $101,024 to the 11 other equities
exchanges \46\ that charge for their market data \47\ to obtain top of
book, depth of book and last sale market data on a monthly basis. By
comparison, to obtain the equivalent market data from IEX (as proposed)
the aggregate monthly cost for those 11 equity exchanges would be
$3,000 per exchange family.\48\ Thus the 11 competing exchanges would
be subject to aggregate monthly fees of $9,000 or approximately one-
eleventh of the aggregate fees that IEX pays to those 11 exchanges.
Additionally, as noted in the Cost Study, the actual costs IEX incurs
to obtain market data from other exchanges often involve aggregating
several different kinds of fees, making it difficult to ascertain the
actual costs to a market participant of obtaining equivalent market
data from other exchanges.\49\ For example, several other exchanges
charge separate fees depending on whether exchange data is
redistributed internally \50\ or externally,\51\ is used for non-
display or other forms of use,\52\ or is calculated on a per user
basis, with different fees for non-professional \53\ and professional
\54\ users of the data feeds.\55\ By contrast, IEX's fee proposal is
much simpler--charging a flat fee for any entity to access one or both
of the IEX Data feeds ($500 month for TOPS/$2,500 for DEEP), and a flat
fee of $500 for any entity that wishes to redistribute TOPS, DEEP, or
both TOPS and DEEP in real time (regardless of the number of recipients
that the entity redistributes to). This simple fee structure means the
cost burden for subscribing to receive IEX Data would be relatively
flat regardless of the size of the Data Subscriber's firm. At the same
time, IEX believes that the fees are set at a level that will not
represent a significant cost to any Data Subscriber. For example,
because IEX will not be charging any variable per user fees, Data
Subscribers will not need to expend resources on monthly reporting of
market data usage that can be required when subscribing to other
exchange data feeds with pricing that differs based on the various
factors noted above. Furthermore, because IEX will not be charging
different usage fees (such as for ``display'' vs. ``non-display''
usage) or charging based on ``controlled'' and ``uncontrolled''
products, the Data Subscribers will not need to expend resources on
managing different methods of receiving and distributing IEX Data or
different types of application usage. Furthermore, IEX understands that
the above administrative concerns can result in contentious audits or
even litigation between data subscribers and providers of proprietary
market data, all of which can result in substantial costs to the
subscribers of other exchanges' market data feeds.
---------------------------------------------------------------------------

    \45\ For examples of other exchange's market data fees, see
https://www.nyse.com/publicdocs/nyse/data/NYSE_Market_Data_Fee_Schedule.pdf; https://nasdaqtrader.com/Trader.aspx?id=DPUSdata; and https://www.cboe.com/us/equities/membership/fee_schedule/bzx/.
    \46\ Currently, IEX pays for market data from four NYSE
exchanges (New York Stock Exchange LLC, NYSE American LLC, and NYSE
Arca, Inc.), three Nasdaq exchanges (Nasdaq Stock Market LLC, Nasdaq
BX, Inc., and Nasdaq PHLX LLC) and four Cboe exchanges (Cboe BYX
Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc.,
and Cboe EDGX Exchange, Inc.).
    \47\ Long-Term Stock Exchange Inc.; MEMX LLC; MIAX PEARL, LLC;
and NYSE Chicago, Inc. currently do not charge for their market
data.
    \48\ As described below, IEX is proposing to only charge the
$500 Distribution Fee to external, non-affiliate third parties of
the Data Subscriber.
    \49\ See Cost Study at 18.
    \50\ Internal distribution is receiving market data from an
exchange and distributing it within the same entity that received
the data.
    \51\ External distribution is receiving market data from an
exchange and distributing it to a third party outside of the entity
that received the data.
    \52\ Non-display usage means any method of accessing a market
data product that involves access or use by a machine or automated
device without access or use of a display by a natural person.
    \53\ Non-professional users are natural persons who use data for
personal, not commercial, purposes, and are not a registered
financial services professional.
    \54\ Anyone who is not a non-professional user is considered a
professional user.
    \55\ See supra note 45.
---------------------------------------------------------------------------

    IEX acknowledges that there are trade-offs between the benefits of
a relatively simple fee structure and a fee structure that is more
graduated based on the extent and variety of uses of IEX Data. IEX
believes it has struck an appropriate balance of these interests by
creating a fee model that is simple, easy to understand and administer,
and set at a level that is affordable for all firms that need real-time
data, while imposing no charge on recipients of Delayed IEX Data that
do not need real-time data.
    IEX proposes to allow Data Subscribers to provide Delayed IEX Data
free of charge in order to minimize barriers to access IEX Data. IEX's
business model seeks to generate revenue from trading rather than from
data and connectivity fees, so an essential part of the proposed fee
structure is to enable all market participants to be able to obtain IEX
Data while it is still timely and useful to most of them without
incurring any IEX fees.
    As noted above, this fee proposal would result in IEX receiving at
most an amount equal to approximately 95% over its estimated costs of
providing market data, only if all current Data Subscribers and their
customers (i.e., recipients of redistributed IEX Data from a Data
Subscriber) elect to make no changes to their current subscriptions and
continue to receive IEX market data in real time.\56\ However, IEX
expects to recoup far less than that amount because market participants
that do not need real-time data will have the option to receive Delayed
IEX Data (at a minimal delay of only 15 milliseconds) in lieu of real-
time data, without paying a fee to IEX. For example, and as described
more fully below, IEX believes that Data Subscribers that are not
engaged in high speed, low latency trading may not choose to pay for
real-time IEX Data. As noted above, this aspect of the proposal allows
Data Subscribers to provide Delayed IEX Data to market participants who
do not require (or quite possibly even have the

necessary technology tools to use) near instantaneous access to IEX
Data.\57\ These Delayed IEX Data Recipient that elect to receive
Delayed IEX Data from a Data Subscriber of IEX Data will not incur any
IEX fees.\58\ Conversely, a market participant that values near
instantaneous market data (e.g., algorithmic traders or other equities
venues that use proprietary market data feeds to calculate the NBBO for
each security) will have the option of paying $3,000 per month to
receive TOPS and DEEP. IEX also notes that any consumers can continue
to obtain all the data in TOPS and DEEP free of charge on a T+1 basis
from IEX's ``HIST'' \59\ data product.\60\
---------------------------------------------------------------------------

    \56\ IEX notes that the proposed fee filing introduces a new
subscription model, and IEX will notify all current Data Subscribers
that before January 3, 2022, they will need to enter into a new Data
Subscriber Agreement with IEX if they wish to continue receiving IEX
Data in real time (either directly from IEX or via a third party).
Furthermore, anyone who elects to receive Delayed IEX Data from a
third party would no longer need to enter into a Data Subscriber
Agreement with IEX, as required under IEX's current market data
policies.
    \57\ As noted above, IEX will only provide real-time IEX Data
and will not itself delay the dissemination of IEX Data to Data
Subscribers.
    \58\ The Delayed IEX Data Recipient may be subject to any fees
charged by the redistributor of the Delayed IEX Data, based upon the
contractual arrangement between the Delayed IEX Data Recipient and
the provider of Delayed IEX Data. Such fees would not be paid to the
Exchange.
    \59\ See IEX Rule 11.330(a)(5).
    \60\ HIST data is available for download at https://iextrading.com/trading/market-data/#hist-download.
---------------------------------------------------------------------------

    IEX currently has 70 Data Subscribers who it believes are
individuals \61\ and expects that most, if not all, of the individual
Data Subscribers will terminate their subscriptions for IEX Data and,
if they choose to continue to receive IEX Data, can opt to receive
Delayed IEX Data from a third-party vendor or through HIST. The
remaining, non-individual, Data Subscribers are made up of
approximately one-third IEX Members, one-third professional market
participants that are not IEX Members (e.g., hedge funds and broker-
dealers), and one-third data vendors. Based on IEX's general
understanding of many of its current Data Subscribers' business models,
IEX projects at least half of the data vendors will retain all of their
existing subscriptions for IEX Data while the others may cancel their
real-time data subscriptions,\62\ and also anticipates that several
Members and non-Members will cancel their real-time data subscriptions
for either TOPS, DEEP, or both. Based on this analysis, IEX set its
proposed fees at a range that it anticipates will, in the most likely
scenario, result in revenue of approximately 25% above cost. IEX's
analysis and projections are based on the expertise and industry
knowledge of relevant IEX personnel with respect to the broker-dealer
community as well as market participants' sensitivity to market data
costs. Having never charged for market data, IEX has no experience
pricing market data. Furthermore, no equities exchange provides free
redistribution of near real-time market data (that is delayed at least
15 milliseconds). Acknowledging the number of variables that could
impact how much IEX recovers of its costs of providing IEX Data, the
Exchange determined that a target return of 25% over costs is a
reasonable goal for its market data fee model. If our projections are
incorrect, revenues could range from ``break even'' (or even below
aggregate costs) to an aggregate markup of at most approximately
95%.\63\ However, the actual revenue will be determined by decisions
made by each Data Subscriber based on the meaningful choices IEX
proposes to offer for the receipt of market data.
---------------------------------------------------------------------------

    \61\ IEX's belief in this regard is based on an assessment that
the Data Subscriber has a natural person name (i.e., fist name--last
name), rather than an entity name.
    \62\ IEX notes that not all Data Subscribers classified as
vendors by IEX are established professional market data vendors.
Some appear to redistribute IEX market data on a less sophisticated
basis (e.g., startups redistributing data to a small number of
customers).
    \63\ As discussed above, IEX believes it is unrealistic and
unlikely that all current Data Subscribers will maintain their
current subscriptions (including the 70 individual current Data
Subscribers, all of whom IEX estimates will not maintain their
current subscriptions), and therefore does not expect the markup
over its costs of providing IEX Data to be anywhere near 95%.
---------------------------------------------------------------------------

    IEX notes that other equities exchanges also offer delayed market
data free of charge, but they define ``delayed data'' as data that is
disseminated at least fifteen minutes after the same data is
disseminated in real time.\64\ These delayed data feeds are often used
by brokerage firms \65\ or online distributors of market data \66\ to
provide stock quote information free of charge, even if it is 15
minutes old.
---------------------------------------------------------------------------

    \64\ See, e.g., NYSE Comprehensive Market Data Policies, Section
7 (Delayed Data Policy), available at https://www.nyse.com/publicdocs/data/Policy-ComprehensivPackage_PDP.pdf; Cboe Global
Markets North American Data Policies, Section 5 (Delayed Data),
available at https://cdn.batstrading.com/resources/membership/Market_Data_Policies.pdf; Nasdaq Delayed Data Policy, available at
http://www.nasdaqtrader.com/content/administrationsupport/policy/delayeddatapolicy.pdf.
    \65\ See, e.g., Interactive Brokers Delayed and Streaming Market
Data, available at https://www.interactivebrokers.com/en/software/webtrader/webtrader/marketdata/delayedandstreamingmarketdata.htm
(``Delayed market data is available for instruments for which you do
not currently hold market data subscriptions.'').
    \66\ See, e.g., MarketWatch Market Data Terms of Use, available
at https://www.marketwatch.com/site/investing-terms-of-use
(``comprehensive quotes and volume reflect trading in all markets
and are delayed at least 15 minutes.'').
---------------------------------------------------------------------------

    In determining the appropriate delay interval, IEX sought to strike
a balance between offering IEX Data at a reasonable and transparent
price to market participants who require real-time data, while also
offering market participants a commercially viable option for the
receipt of free IEX Data within a time period in which the data will
remain useful to market participants who do not require near
instantaneous real-time market data for trading purposes. Knowing there
is no ``exact science'' to the determination of how long to delay data
before allowing it to be retransmitted free of charge, IEX sought
informal feedback from Members and other Data Subscribers. Based upon
that informal feedback, IEX believes that most, if not all, non-
electronic trading desks would be able to continue to use IEX Data if
it was received subject to at least a fifteen-millisecond delay. Also
based on that informal feedback, IEX believes that there will be some
current Data Subscribers--e.g., algorithmic traders, data vendors, and
any electronic trading platform that we believe typically use real-time
data to calculate the NBBO--that will continue to pay for real-time IEX
Data.
    The proposed fees will not apply differently based upon the size or
type of the market participant, but rather based upon the speed with
which the Data Subscriber wishes to obtain IEX Data, based upon factors
deemed relevant by each Data Subscriber, such as the cost to access and
process IEX Data as well as business models.
    Finally, IEX notes that this simple, transparent market data fee
proposal will simplify IEX audits for compliance with applicable market
data policies. Any Data Subscriber receiving real-time IEX Data will
enter into a Data Subscriber Agreement with IEX, even if the Data
Subscriber obtains their data through a third-party vendor. And any
Delayed IEX Data Recipient does not need to enter into a Data
Subscriber Agreement with IEX. Therefore, to assess compliance with
applicable market data policies, IEX would simply audit whether any
redistribution of IEX Data to any external, non-affiliate third party
Data Subscribers is occurring, and if so, whether such redistribution
is in real time or subject to at least a fifteen-millisecond delay.
    In order to effectuate the proposed fee changes, IEX is proposing
to make the following changes to the definitions in the ``Market Data
Fees'' part of its Fee Schedule:
     Remove the definitions for ``Internal Distribution Fee''
and ``External Distribution Fee'' because IEX is not proposing to
charge different fees for internal or external distribution and
introduce the term ``Distribution Fee'' which IEX proposes to define as
``the fee charged to any Data Subscriber that receives IEX market data
directly from

the Exchange or indirectly through another Data Subscriber and then
redistributes that data to an external, non-affiliate third party.''
     Define the term ``Real-Time'' as ``IEX market data that is
accessed, used, or distributed less than fifteen (15) milliseconds
after it was made available by the Exchange. IEX provides only Real-
Time IEX market data to Data Subscribers. A Data Subscriber may
redistribute Real-Time IEX market data that it receives from the
Exchange on a Real-Time basis to a natural person or entity.**''
     Define the term ``Delayed'' as ``IEX market data that is
accessed, used, or distributed at least fifteen (15) milliseconds after
it was made available by the Exchange. A Data Subscriber may
redistribute Real-Time IEX market data that it receives from the
Exchange on a Delayed basis to a natural person or entity. In addition,
a recipient of Delayed IEX market data may further redistribute such
Delayed IEX market data to a natural person or entity.**''
     Define the term ``Data Subscriber'' as ``any natural
person or entity that receives Real-Time IEX market data either
directly from the Exchange or from another Data Subscriber. A Data
Subscriber must enter into a Data Subscriber Agreement with IEX in
order to receive Real-Time IEX market data.''
     Remove the definition of ``Usage Fee'' because IEX is not
proposing to charge any usage fees for its market data.
     Add the following words before the ``Service/Fee'' table:
``The following fees are assessed by IEX on market data recipients:''
    IEX is also proposing to the make the following changes to the
``Service/Fee'' table in the Market Data Fees section of the Fee
Schedule:
     Delete the references to the Internal Distribution,
External Distribution, and Usage Fees.
     Add the following entries to the table:

------------------------------------------------------------------------
                Service                                Fee
------------------------------------------------------------------------
DEEP Feed (Real-Time)..................  $2,500 per month.*
TOPS Feed (Real-Time)..................  $500 per month.*
Distribution Fee (Real-Time)...........  $500 per month.*
DEEP Feed (Delayed)....................  FREE.
TOPS Feed (Delayed)....................  FREE.
Distribution Fee (Delayed).............  FREE.
------------------------------------------------------------------------

     Define the asterisk to say ``These fees will be operative
beginning January 3, 2022.''
     Define the double asterisk to say ``The fees set forth
above include only fees charged by IEX. Receipt of Real-Time IEX market
data from a Data Subscriber or Delayed IEX market data from a Data
Subscriber or other person may be subject to fees agreed to between the
Data Subscriber and recipient of such IEX market data.''
    As noted above, the proposed rule change is effective on filing and
the fees proposed herein will become operative on January 3, 2022.\67\
Delayed implementation will provide an opportunity for current Data
Subscribers to modify the manner in which they receive IEX Data, if
they choose to do so, allowing them to obtain IEX Data without
incurring any charge from IEX if they receive it subject to at least a
fifteen-millisecond delay,\68\ before the first month in which IEX will
charge for access to IEX Data.
---------------------------------------------------------------------------

    \67\ January 3, 2022 is the first trading day of the new year.
    \68\ The Delayed IEX Data Recipient may be subject to any fees
charged by the redistributor of the Delayed IEX Data, based upon the
contractual arrangement between the Delayed IEX Data Recipient and
the provider of Delayed IEX Data. Such fees would not be paid to the
Exchange.
---------------------------------------------------------------------------

2. Statutory Basis
    IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \69\ of the Act in general and furthers the
objectives of Section 6(b)(4) \70\ 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 also believes that the proposed fee change
promotes just and equitable principles of trade and will not be
unfairly discriminatory, consistent with the objectives of Section
6(b)(5) \71\ of the Act.
---------------------------------------------------------------------------

    \69\ 15 U.S.C. 78f(b).
    \70\ 15 U.S.C. 78f(b)(4).
    \71\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

Reasonableness
    With regard to reasonableness, the Exchange understands that the
Commission has traditionally taken a market-based approach to examine
whether the SRO making the fee proposal was subject to significant
competitive forces in setting the terms of the proposal. IEX
understands that in general the analysis considers whether the SRO has
demonstrated in its filing that (i) there are reasonable substitutes
for the product or service; (ii) ``platform'' competition constrains
the ability to set the fee; and/or (iii) revenue and cost analysis
shows the fee would not result in the SRO taking supracompetitive
profits. If the SRO demonstrates that the fee is subject to significant
competitive forces, IEX understands that in general the analysis will
next consider whether there is any substantial countervailing basis to
suggest the fee's terms fail to meet one or more standards under the
Exchange Act. IEX further understands that if the filing fails to
demonstrate that the fee is constrained by competitive forces, the SRO
must provide a substantial basis, other than competition, to show that
it is consistent with the Exchange Act, which may include production of
relevant revenue and cost data pertaining to the product or service.
    As detailed in the Cost Study, IEX's experience as an exchange
strongly supports its belief that the fees each equities exchange
charges for its proprietary market data are not subject to competitive
forces.\72\ As noted in the Purpose section, each exchange has a
monopoly over its own market data, particularly its depth of book data
which is not available on the SIPs. IEX believes that this monopoly
over proprietary market data, coupled with the need of many market
participants for real-time data in order to compete in a market system
in which trading outcomes can depend on time differences measured in
millionths of a second, allows exchanges to set their fees for
proprietary market data without competitive constraints. As also noted
in the Cost Study, the extreme differences between IEX's aggregate cost
to produce market data (as well as physical and logical connectivity
products) and the prices charged by other exchanges for similar
products and services clearly suggests that the pricing for market data
is not constrained by competition.\73\
---------------------------------------------------------------------------

    \72\ See Cost Study at 34.
    \73\ See Cost Study at 18-19, 24-25, and 31-32, respectively.
---------------------------------------------------------------------------

    Further, IEX is not aware of and does not believe that there is any
evidentiary support for the proposition that competition at the
``platform level'' constrains market data fees of the type proposed in
this filing.
    Because IEX believes that market data is not constrained by
competition, IEX is not relying on an argument that the fees proposed
in this filing are justified based on market competition. Instead, IEX
believes the proposed fees are fair and reasonable as a form of cost
recovery plus the possibility of a reasonable return for IEX's
aggregate costs of offering IEX Data to its Data Subscribers.
    As discussed in the Purpose section, IEX believes that charging
$500 per month for TOPS, $2,500 per month for DEEP, and $500 per month
for real-time redistribution of TOPS, DEEP, or both, is reasonable
because it is based both on the relative costs to IEX to generate TOPS
and DEEP, as well as IEX's objective to make TOPS broadly

available to a range of market participants including long-term
investors. Specifically, DEEP contains more data than TOPS, and is more
resource intensive to produce and maintain because it aggregates
displayed liquidity at multiple price levels. Therefore, IEX believes
that it is reasonable to charge a higher fee for DEEP than for TOPS.
Similarly, as discussed in the Purpose section, IEX believes that
charging $500 per month to any real-time redistributors of IEX Data is
reasonable both because of the administrative and other costs IEX
incurs in supporting the redistribution of IEX Data and to prevent the
possible circumvention of IEX's market data fees by any redistributors
of IEX Data.
    IEX also believes the proposed fees are reasonable because they are
designed to generate annual revenue of approximately $3.1 million
(reflecting a 25% markup over costs). As described in the Purpose
section, IEX expects many of its current Data Subscribers to terminate
their subscriptions for real-time data, instead opting to pay IEX no
fee and to receive Delayed IEX Data through a redistribution agreement
with a Data Subscriber. Accordingly, IEX believes that this fee
methodology is reasonable because it both allows IEX to recoup some or
all of its expenses for providing market data (with any additional
revenue representing no more than what IEX believes to be a reasonable
rate of return), while continuing to allow market participants to
access IEX Data free of charge if they can wait at least fifteen
milliseconds to receive it.
    Additionally, IEX believes the proposed fees are reasonable because
IEX is only charging Data Subscribers who use IEX Data in real time,
and as described in the Purpose section, these Data Subscribers are the
very ones creating the demand for real-time data, thereby causing IEX
to incur the costs described above to produce real-time market data
feeds.
    IEX also believes that the proposed fees are reasonable because
they are significantly less than the fees charged by competing equities
exchanges, notwithstanding that the competing exchanges may have
different system architectures that may result in different cost
structures for the provision of market data. As described above, the
three large exchange families charge significantly more than IEX's
proposed fees for real-time access to their proprietary market data.
Significantly, they charge these fees without offering an option to
receive delayed market data within a time frame that is usable for most
trading purposes. The delayed data offered by other exchanges is also
offered free of charge, but only fifteen minutes after it is first
disseminated, which IEX believes generally makes the data stale for any
subscribers using the data to make trading decisions.
    Finally, as described in the Purpose section above, IEX believes
that this fee proposal is reasonable because it will not impose onerous
audit requirements on Data Subscribers, because there will be no need
to substantiate the number of users of IEX Data or the manner in which
it is being used, but rather only whether it is being redistributed in
real time or subject to at least a fifteen-millisecond delay.
Equitable Allocation and Non-Discrimination
    IEX believes that its proposed fees are reasonable, fair, and
equitable, and not unfairly discriminatory because they are designed to
align fees with services provided, will apply equally to all Data
Subscribers that require real-time data, and will minimize barriers to
entry by providing IEX Data for free after [sic] at least fifteen
milliseconds, thereby allowing all but the most latency sensitive
market participants access to IEX Data within a time frame that is
usable for most trading purposes.
    The Exchange believes that providing Delayed IEX Data without
charging any fees and charging as much as $3,500 per month to Data
Subscribers who require real-time data and/or wish to redistribute the
same data is fair and equitable, and not unfairly discriminatory
because it will enable all market participants to access Delayed IEX
Data without paying any fees to IEX \74\ and will charge only the users
who require the fastest market data feeds available (which, as
discussed in the Purpose section, drives much of the costs associated
with creating and distributing IEX Data because it increases the
resiliency, capacity and redundancy costs associated with IEX's
proprietary market data feeds) for access to IEX Data. Additionally, as
noted in the Purpose section, anyone can obtain TOPS and DEEP data free
of charge on a T+1 basis through IEX's HIST data product. IEX believes
this approach to market data fees will equitably distribute the costs
of IEX Data among market participants whose business models require the
highest speed market data available.
---------------------------------------------------------------------------

    \74\ Although IEX will not charge any distribution fees to a
redistributor of Delayed IEX Data, the distributor may still charge
fees to any Delayed IEX Data Recipients.
---------------------------------------------------------------------------

    Furthermore, IEX believes that charging $500 per month for TOPS,
$2,500 per month for DEEP, and $500 per month for real-time
redistribution of TOPS, DEEP, or both, is fair and equitable because it
is based both on the relative costs to IEX to generate TOPS and DEEP,
as well as IEX's objective to make TOPS broadly available to a range of
market participants including long-term investors. As described in the
Purpose section, DEEP contains more data than TOPS, and is more
resource intensive to produce and maintain because it aggregates
displayed liquidity at multiple price levels. Therefore, IEX believes
that it is fair and equitable to charge a higher fee for DEEP than for
TOPS. Similarly, as discussed in the Purpose section, IEX believes that
charging $500 per month to any real-time redistributors of IEX Data is
fair and equitable both because of the administrative and other costs
IEX incurs in supporting the redistribution of IEX Data and to prevent
the possible circumvention of IEX's market data fees by any
redistributors of IEX Data.
    The Exchange further believes that the proposed fees are
reasonable, fair, and equitable, and non-discriminatory because they
will apply to all Data Subscribers in the same manner based on the type
of market data needed. All similarly situated market participants are
subject to the same fees. The fees also do not depend on any
distinctions between Members, customers, broker-dealers, or any other
entity, because they are solely determined by the individual Data
Subscriber's business needs. For example, as discussed in the Purpose
section, if the Data Subscriber is a market data vendor that resells
IEX Data, IEX believes that Data Subscriber is likely to continue to
subscribe for real-time IEX Data and pay the distribution fee because
it is commercially beneficial to that Data Subscriber. By contrast, a
non-Member Data Subscriber is far more likely to not require IEX Data
in real time, and is therefore more likely to unsubscribe from one or
both of IEX's real-time IEX Data and instead elect to receive Delayed
IEX Data from a vendor or via HIST.
    Finally, the Exchange believes that the proposed fee is consistent
with Section 11A of the Exchange Act in that it is designed to
facilitate the economically efficient execution of securities
transactions, fair competition among brokers and dealers, exchange
markets and markets other than exchange markets, and the practicability
of brokers executing investors' orders in the best market.
Specifically, the proposed low, cost-based fee, with the option of
receiving free data from a third party on at least a fifteen-
millisecond

delay \75\ or for absolutely no cost on a T+1 basis using HIST, will
enable a broad range of market participants to continue to receive IEX
Data, thereby facilitating the economically efficient execution of
securities transactions on IEX, fair competition between and among such
Members, and the practicability of Members that are brokers executing
investors' orders on IEX when it is the best market.
---------------------------------------------------------------------------

    \75\ Distributors of Delayed IEX Data may charge a fee for the
data, but that fee is not payable to IEX.
---------------------------------------------------------------------------

    For the foregoing reasons, the Exchange believes that the proposed
fee is reasonable, equitably allocated, and not unfairly
discriminatory.

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 intramarket or intermarket 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 intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
fees are a cost-based fee, that are designed to enable the Exchange to
recoup its applicable costs with the possibility of a reasonable profit
on its investment as described in the Purpose and Statutory Basis
sections. Competing equities exchanges are free to adopt comparable fee
structures subject to the SEC rule filing process.
    The Exchange also does not believe that the proposed fees will
impose any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because all
market participants are entitled to receive IEX Data free of charge
after [sic] at least a fifteen-millisecond delay. Providing a
commercially viable free data feed to Data Subscribers is designed to
avoid creating barriers to entry for smaller Members, thereby promoting
intramarket competition. In addition, even Members [sic] subject to
relatively higher fees, because they are paying up to $3,500 per month
for IEX Data, will still be subject to a relatively low aggregate fee
(and significantly less than the fees charged by competing exchanges,
as described above) and IEX thus believes that the proposed fee will
not operate as a barrier to entry for such Members [sic] or impose a
significant business cost burden on such Members [sic] relative to
their levels of business activity. Finally, as noted in the Purpose and
Statutory Basis sections, IEX believes that not requiring any onerous
audits for Data Subscribers will be of equal benefit to all Data
Subscribers.

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) \76\ of the Act.
---------------------------------------------------------------------------

    \76\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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) \77\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \77\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

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 [email protected]. Please include
File No. SR-IEX-2021-14 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 No. SR-IEX-2021-14. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange 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 No. SR-IEX-
2021-14, and should be submitted on or before December 8, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\78\
---------------------------------------------------------------------------

    \78\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-25021 Filed 11-16-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 107 (Wednesday, June 4, 2014)]
[Notices]
[Pages 32288-32290]
[FR Doc No: 2014-12922]

-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OPP-2009-1017; FRL-9910-97]

Notice of Receipt of Requests to Voluntarily Cancel Certain
Pesticide Registrations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In accordance with the Federal Insecticide, Fungicide, and
Rodenticide Act (FIFRA), EPA is issuing a notice of receipt of requests
by registrants to voluntarily cancel certain pesticide registrations.
EPA intends to grant these requests at the close of the comment period
for this announcement unless the Agency receives substantive comments
within the comment period that would merit its further review of the
requests, or unless the registrants withdraw their requests. If these
requests are granted, any sale, distribution, or use of products listed
in this notice will be permitted after the registration has been
cancelled only if such sale, distribution, or use is consistent with
the terms as described in the final order.

DATES: Comments must be received on or before July 7, 2014.

ADDRESSES: Submit your comments, identified by docket identification
(ID) number EPA-HQ-OPP-2009-1017, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the online instructions for submitting comments. Do not submit
electronically any information you consider to be Confidential Business
Information (CBI) or other information whose disclosure is restricted
by statute.
     Mail: OPP Docket, Environmental Protection Agency Docket
Center (EPA/DC), (28221T), 1200 Pennsylvania Ave. NW., Washington, DC
20460-0001.
    Submit written withdrawal request by mail to: Pesticide Re-
Evaluation Division (7508P), Office of Pesticide Programs,
Environmental Protection Agency, 1200 Pennsylvania Ave. NW.,
Washington, DC 20460-0001. ATTN: John W. Pates, Jr.
     Hand Delivery: To make special arrangements for hand
delivery or delivery of boxed information, please follow the
instructions at http://www.epa.gov/dockets/contacts.html.
    Additional instructions on commenting or visiting the docket, along
with more information about dockets generally, is available at http://www.epa.gov/dockets.

FOR FURTHER INFORMATION CONTACT: John W. Pates, Jr., Pesticide Re-
Evaluation Division (7508P), Office of Pesticide Programs,
Environmental Protection Agency, 1200 Pennsylvania Ave. NW.,
Washington, DC 20460-0001; telephone number:<PHONE_NUMBER>; email
address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this action apply to me?

    This action is directed to the public in general, and may be of
interest to a wide range of stakeholders including environmental, human
health, and agricultural advocates; the chemical industry; pesticide
users; and members of the public interested in the sale, distribution,
or use of pesticides.

B. What should I consider as I prepare my comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through
regulations.gov or email. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in a disk or
CD-ROM that you mail to EPA, mark the outside of the disk or CD-ROM as
CBI and then identify electronically within the disk or CD-ROM the
specific information that is claimed as CBI. In addition to one
complete version of the comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2.
    2. Tips for preparing your comments. When submitting comments,
remember to:
    i. Identify the document by docket ID number and other identifying
information (subject heading, Federal Register date and page number).
    ii. Follow directions. The Agency may ask you to respond to
specific questions or organize comments by referencing a Code of
Federal Regulations (CFR) part or section number.
    iii. Explain why you agree or disagree; suggest alternatives and
substitute language for your requested changes.

    iv. Describe any assumptions and provide any technical information
and/or data that you used.
    v. If you estimate potential costs or burdens, explain how you
arrived at your estimate in sufficient detail to allow for it to be
reproduced.
    vi. Provide specific examples to illustrate your concerns and
suggest alternatives.
    vii. Explain your views as clearly as possible, avoiding the use of
profanity or personal threats.
    viii. Make sure to submit your comments by the comment period
deadline identified.

II. What action is the Agency taking?

    This notice announces receipt by the Agency of requests from
registrants to cancel 18 pesticide products registered under FIFRA
section 3 or 24(c). These registrations are listed in sequence by
registration number (or company number and 24(c) number) in Table 1 of
this unit.
    Unless the Agency determines that there are substantive comments
that warrant further review of the requests or the registrants withdraw
their requests, EPA intends to issue an order in the Federal Register
canceling all of the affected registrations.

      Table 1--Registrations With Pending Requests for Cancellation
------------------------------------------------------------------------
        Registration No.             Product name        Chemical name
------------------------------------------------------------------------
000100-00867....................  Barricade F         Prodiamine.
                                   Herbicide.
000100-00879....................  Barricade G         Prodiamine.
                                   Herbicide.
000432-00799....................  AquaPy............  Piperonyl butoxide
                                                       and Pyrethrins
                                                       (NO INERT USE).
000464-00664....................  Bioban CS-40L       4,4-
                                   Preservative.       Dimethyloxazolidi
                                                       ne.
001448-00371....................  Busan 1020L.......  Metam-sodium.
004713-00004....................  Kenya Pyrethrum     Pyrethrins (NO
                                   Extract Crude       INERT USE).
                                   Concentrate A.
007969-00057....................  Ronilan             Vinclozolin.
                                   Manufacturer's
                                   Concentrate.
007969-00085....................  Ronilan EG          Vinclozolin.
                                   Fungicide.
007969-00224....................  Curalan EG          Vinclozolin.
                                   Fungicide.
011603-00035....................  Bromotril           Bromoxynil
                                   Technical.          octanoate.
011603-00036....................  Agan Bromoxynil     Bromoxynil
                                   Technical.          octanoate.
011603-00048....................  Nicosulfuron        Nicosulfuron.
                                   Technical.
019713-00299....................  Drexel Sanitizit..  Phosphoric acid
                                                       and
                                                       Dodecylbenzenesul
                                                       fonic acid.
040849-00056....................  Enforcer Flea       MGK 264,
                                   Fogger XX.          Pyrethrins (NO
                                                       INERT USE),
                                                       Pyriproxyfen, and
                                                       Permethrin.
046386-00002....................  Prometrex           Prometryn.
                                   Technical.
053883-00241....................  CSI Wipe & Spray    Stabilene,
                                   Insecticide.        Pyrethrins (NO
                                                       INERT USE), and
                                                       Piperonyl
                                                       butoxide.
072159-00002....................  ImidaPro 2SC        Imidacloprid.
                                   Systemic
                                   Insecticide.
073801-00002....................  Permethrin          Permethrin.
                                   Technical.
------------------------------------------------------------------------

    Table 2 of this unit includes the names and addresses of record for
all registrants of the products in Table 1 of this unit, in sequence by
EPA company number. This number corresponds to the first part of the
EPA registration numbers of the products listed in this unit.

                             Table 2--Registrants Requesting Voluntary Cancellation
----------------------------------------------------------------------------------------------------------------
              EPA  Company  No.                                    Company name and address
----------------------------------------------------------------------------------------------------------------
100.........................................  Syngenta Crop Protection, LLC, 410 Swing Road, P.O. Box 18300,
                                               Greensboro, NC 27419-8300.
432.........................................  Bayer Environmental Science, A Division of Bayer, CropScience LP,
                                               2 T.W. Alexander Drive, P.O. Box 12014, Research Triangle Park,
                                               NC 27709.
464.........................................  The Dow Chemical Co., Agent: The Dow Chemical Company, 100 Larkin
                                               Center, 1650 Joseph Dr., Midland, MI 48674.
1448........................................  Buckman Laboratories Inc., 1256 North McLean Blvd., Memphis, TN
                                               38108.
4713........................................  Pyrethrum Board of Kenya, Agent: Regwest Company, LLC, 8203 West
                                               20th Street, Suite A, Greeley, CO 80634-4696.
7969........................................  BASF Corporation, Agricultural Products, 26 Davis Drive,, P.O. Box
                                               13528, Research Triangle Park, NC 27709-3528.
11603.......................................  Agan Chemical Manufacturing, LTD, Agent: Makhteshim-Agan of North
                                               America Inc., 3120 Highwoods Blvd., Suite 100, Raleigh, NC 27604.
19713.......................................  Drexel Chemical Company, P.O. Box 13327, Memphis, TN 38113-0327.
40849.......................................  ZEP Commercial Sales & Service, A Unit of Zep, Inc., Agent:
                                               Compliance Services, 1259 Seaboard Industrial Blvd. NW., Atlanta,
                                               GA 30318.
46386.......................................  Verolit Chemical Manufacturers LTD., Agent: Makhteshim-Agan of
                                               North America Inc., 3120 Highwoods Blvd., Suite 100, Raleigh, NC
                                               27604.
53883.......................................  Control Solutions, Inc., 5903 Genoa-Red Bluff Road, Pasadena, TX
                                               77507-1041.
72159.......................................  Agrisel USA, Inc., Agent: Biologic, Inc., 115 Obtuse Hill Road,
                                               Brookfield, CT 06804.
73801.......................................  Tagros Chemicals India LTD., Agent: Biologic, Inc., 115 Obtuse
                                               Hill Road, Brookfield, CT 06804.
----------------------------------------------------------------------------------------------------------------

III. What is the Agency's authority for taking this action?

    Section 6(f)(1) of FIFRA provides that a registrant of a pesticide
product may at any time request that any of its pesticide registrations
be canceled. FIFRA further provides that, before acting on the request,
EPA must publish a notice of receipt of any such request in the Federal
Register.
    Section 6(f)(1)(B) of FIFRA requires that before acting on a
request for voluntary cancellation, EPA must provide a 30-day public
comment period on the request for voluntary cancellation or use
termination. In addition, FIFRA section 6(f)(1)(C) requires that EPA
provide a 180-day comment period on a request for voluntary
cancellation or termination of any minor agricultural use before
granting the request, unless:
    1. The registrants request a waiver of the comment period, or
    2. The EPA Administrator determines that continued use of the
pesticide would pose an unreasonable adverse effect on the environment.
    The registrants in Table 2 of Unit II. have requested that EPA
waive the 180-day comment period. Accordingly, EPA will provide a 30-
day comment period on the proposed requests.

IV. Procedures for Withdrawal of Request

    Registrants who choose to withdraw a request for cancellation
should submit such withdrawal in writing to the person listed under FOR
FURTHER INFORMATION CONTACT. If the products have been subject to a
previous cancellation action, the effective date of cancellation and
all other provisions of any earlier cancellation action are
controlling.

V. Provisions for Disposition of Existing Stocks

    Existing stocks are those stocks of registered pesticide products
that are currently in the United States and that were packaged,
labeled, and released for shipment prior to the effective date of the
cancellation action.

A. For Products<PHONE_NUMBER>4,<PHONE_NUMBER>8 and<PHONE_NUMBER>1)

    The registrants have indicated to the Agency via written response
that there is no existing stocks of technical or end use products.
Therefore, no existing stocks date is necessary. Registrants will be
prohibited from selling or distributing the pesticides identified in
Table 1 of Unit II., except for export consistent with FIFRA section 17
or for proper disposal. Persons other than registrants will generally
be allowed to sell, distribute, or use existing stocks until such
stocks are exhausted, provided that such sale, distribution, or use is
consistent with the terms of the previously approved labeling on, or
that accompanied, the canceled product.

B. For Products<PHONE_NUMBER>7,<PHONE_NUMBER>5 and<PHONE_NUMBER>4)

    The registrant has indicated to the Agency via letter and verbal
communication, that all registrations for the active ingredient
vinclozolin will be phased out. Because the Agency has identified no
significant potential risk concerns associated with these pesticide
products, EPA anticipates allowing registrants to sell and distribute
existing stocks of these products until December 31, 2016. Thereafter,
registrants, and persons other than registrants, are prohibited from
selling or distributing existing stocks of products containing
vinclozolin identified in Table 1 of Unit II., except for export
consistent with FIFRA section 17 or for proper disposal. Existing
stocks of products containing vinclozolin already in the hands of users
can be used legally until such stocks are exhausted, provided that the
use is consistent with the terms of the previously approved labeling
on, or that accompanied, the cancelled products.

C. For All Other Products identified in Table 1 of Unit II

    Because the Agency has identified no significant potential risk
concerns associated with these pesticide products, upon cancellation of
the products identified in Table 1 of Unit II., EPA anticipates
allowing registrants to sell and distribute existing stocks of these
products for 1 year after publication of the Cancellation Order in the
Federal Register. Thereafter, registrants will be prohibited from
selling or distributing the pesticides identified in Table 1 of Unit
II., except for export consistent with FIFRA section 17 or for proper
disposal. Persons other than registrants will generally be allowed to
sell, distribute, or use existing stocks until such stocks are
exhausted, provided that such sale, distribution, or use is consistent
with the terms of the previously approved labeling on, or that
accompanied, the canceled products.

List of Subjects

    Environmental protection, Pesticides and pests.

    Dated: May 27, 2014.
Richard P. Keigwin, Jr.,
Director, Pesticide Re-Evaluation Division, Office of Pesticide
Programs.
[FR Doc. 2014-12922 Filed 6-3-14; 8:45 am]
BILLING CODE 6560-50-P