80_FR_18959 80 FR 18892 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule

80 FR 18892 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 67 (April 8, 2015)

Page Range18892-18894
FR Document2015-07960

Federal Register, Volume 80 Issue 67 (Wednesday, April 8, 2015)
[Federal Register Volume 80, Number 67 (Wednesday, April 8, 2015)]
[Notices]
[Pages 18892-18894]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07960]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74632; File No. SR-MIAX-2015-24]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Fee Schedule

April 2, 2015.
    Pursuant to the provisions of Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that on March 31, 2015, Miami International Securities 
Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') a 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange is filing a proposal to modify the Market Maker 
Trading Permit Fee.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at 
MIAX's principal office, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to modify its Trading Permit fees to increase 
the monthly Trading Permit fees that apply

[[Page 18893]]

to Market Makers (``MMs''). Specifically, the Exchange proposes to: (i) 
Increase the monthly Trading Permit fee that applies to MMs for MM 
Assignments in up to 250 options classes from $5,500 to $15,000; (ii) 
increase the monthly Trading Permit fee that applies to MMs for MM 
Assignments in all classes from $7,000 to $22,000; (iii) eliminate the 
Trading Permit fee that applies to MMs for MM Assignments in up to 100 
options classes; and (iv) add some clarifying language to the Fee 
Schedule regarding the fee applicable to MM Assignments above 250.
    The Exchange issues Trading Permits that confer the ability to 
transact on the Exchange.\3\ Currently, all MMs, whether they are a 
RMM, LMM or PLMM, are assessed $4,000 per month for a Trading Permit 
for an assignment in up to 100 option classes, $5,500 per month for a 
Trading Permit for an assignment in up to 250 option classes, or $7,000 
per month for a Trading Permit for an assignment in all option classes 
listed on the Exchange.\4\ The Exchange notes that the current monthly 
Trading Permit fees are in some instances substantially lower than 
monthly trading permit fees in place at other competing options 
exchanges.\5\ The Exchange established these lower rates in order to 
encourage additional market participants to become Members of the 
Exchange and register as MIAX Market Makers. Now that the Exchange has 
grown its market share and membership base, the Exchange proposes to 
modify its Trading Permit fee for MMs so that it is more aligned with 
the rates charged by competing options exchanges.
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    \3\ There is no limit on the number of Trading Permits that may 
be issued by the Exchange; however the Exchange has the authority to 
limit or decrease the number of Trading Permits it has determined to 
issue provided it complies with the provisions set forth in Rule 
200(a) and Section 6(c)(4) of the Exchange Act. See 15 U.S.C. 
78(f)(c)(4). For a complete description of MIAX Trading Permits, see 
MIAX Rule 200.
    \4\ The monthly Trading Permit Fee is in addition to the one-
time application fee for MIAX Membership. The Exchange charges a 
one-time application fee based upon the applicant's status as either 
an Electronic Exchange Member (``EEM'') or as a Market Maker. 
Applicants for MIAX Membership as an EEM are assessed a one-time 
Application Fee of $2,500.00. Applicants for MIAX Membership as a 
Market Maker are assessed a one-time Application Fee of $3,000.00. 
The difference in the fee charged to EEMs and Market Makers reflects 
the additional review and processing effort needed for Market Maker 
applications.
    \5\ See e.g., NYSE Arca Options Fees and Charges, p.1 (assessing 
market makers $6,000 for up to 100 option issues, an additional 
$5,000 for up to 250 option issues, an additional $4,000 for up to 
750 option issues, and an additional $3,000 for all option issues on 
the exchange); NYSE Amex Options Fee Schedule, p. 19 (assessing 
market makers $8,000 for up to 60 plus the bottom 45%, an additional 
$6,000 for up to 150 plus the bottom 45%, an additional $5,000 for 
up to 500 plus the bottom 45%, and additional $4,000 for up to 1,000 
[sic] plus the bottom 45%, and an additional $3,000 for all issues 
traded on the exchange).
---------------------------------------------------------------------------

    The Exchange proposes to modify its MM Trading Permit fee to 
increase the monthly Trading Permit fee that applies to MMs. 
Specifically, the Exchange proposes to: (i) Increase the monthly 
Trading Permit fee that applies to MMs for MM Assignments in up to 250 
options classes from $5,500 to $15,000; (ii) increase the monthly 
Trading Permit fee that applies to MMs for MM Assignments in all 
classes from $7,000 to $22,000; and (iii) eliminate the Trading Permit 
fee that applies to MMs for MM Assignments in up to 100 options 
classes.
    Members receiving Trading Permits during the month will be assessed 
Trading Permit Fees according to the above schedule, except that the 
calculation of the Trading Permit fee for the first month in which the 
Trading Permit is issued will be pro-rated based on the number of 
trading days occurring after the date on which the Trading Permit was 
in effect during that first month divided by the total number of 
trading days in such month multiplied by the monthly rate.
    Finally, the Exchange proposes to add some clarifying language to 
the Fee Schedule in order to specify that the $22,000 Trading Permit 
Fee applies to MMs Assignments over 250 up to all options classes 
listed on MIAX. The Exchange believes that the proposed change will 
help avoid the potential for confusion on behalf of MMs as to which fee 
level applies to MMs Assignments over 250 options classes.
    The Exchange proposes to implement the Trading Permit fees 
beginning April 1, 2015.
2. Statutory Basis
    The Exchange believes that its proposal to amend its fee schedule 
is consistent with Section 6(b) of the Act \6\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \7\ in particular, in that 
it is an equitable allocation of reasonable fees and other charges 
among Exchange members.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed Trading Permit fee is 
reasonable, equitable and not unfairly discriminatory. The proposed 
Trading Permit fees are reasonable in that they are within the range of 
comparable fees at other competing options exchanges.\8\ As such, the 
proposal is reasonably designed to continue to compete with other 
options exchange by incentivizing market participants to register as 
Market Makers on the Exchange in a manner that enables the Exchange to 
improve its overall competitiveness and strengthen its market quality 
for all market participants. The proposed fee is fair and equitable and 
not unreasonably discriminatory because it applies equally to all 
Market Makers regardless of type. All similarly situated Market Makers, 
with the same number of assignments, will be subject to the same 
Trading Permit fee, and access to the Exchange is offered on terms that 
are not unfairly discriminatory.
---------------------------------------------------------------------------

    \8\ See supra note 5. NYSE Arca Options charges $11,000 for up 
to 250 option issues and $18,000 for all options issues on the 
exchange. NYSE Amex Options charges $26,000 for all option issues on 
the exchange.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes that the 
proposal increases both intermarket and intramarket competition by 
increasing Trading Permit fees for Market Makers on the Exchange in a 
manner that allows all Market Makers to be subject to the same fee 
based on the number of assignments regardless of type and yet still be 
in the range of comparable fees on other exchanges. The Exchange notes 
that it operates in a highly competitive market in which market 
participants can readily favor competing venues if they deem fee levels 
at a particular venue to be excessive. In such an environment, the 
Exchange must continually adjust its fees to remain competitive with 
other exchanges and to attract order flow to the Exchange. The Exchange 
believes that the proposal reflects this competitive environment 
because it increases the Exchange's fees in a manner that continues to 
encourage market participants to register as Market Makers on the 
Exchange, to provide liquidity, and to attract order flow. To the 
extent that this purpose is achieved, all the Exchange's market 
participants should benefit from the improved market liquidity.

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

[[Page 18894]]

19(b)(3)(A)(ii) of the Act.\9\ 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 to determine whether the proposed rule should be 
approved or disapproved.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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 Number SR-MIAX-2015-24 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-MIAX-2015-24. 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 such 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-MIAX-2015-24, and should be 
submitted on or before April 29, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-07960 Filed 4-7-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                    18892                          Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices

                                                    III. Date of Effectiveness of the                         Paper Comments                                        SECURITIES AND EXCHANGE
                                                    Proposed Rule Change and Timing for                                                                             COMMISSION
                                                    Commission Action                                           • Send paper comments in triplicate
                                                                                                              to Secretary, Securities and Exchange                 [Release No. 34–74632; File No. SR–MIAX–
                                                       The Exchange has filed the proposed                                                                          2015–24]
                                                                                                              Commission, 100 F Street NE.,
                                                    rule change pursuant to Section
                                                    19(b)(3)(A)(iii) of the Act 14 and Rule                   Washington, DC 20549–1090.                            Self-Regulatory Organizations; Miami
                                                    19b–4(f)(6) thereunder.15 Because the                     All submissions should refer to File                  International Securities Exchange LLC;
                                                    proposed rule change does not: (i)                        Number SR–BX–2015–016. This file                      Notice of Filing and Immediate
                                                    Significantly affect the protection of                    number should be included on the                      Effectiveness of a Proposed Rule
                                                    investors or the public interest; (ii)                    subject line if email is used. To help the            Change To Amend Its Fee Schedule
                                                    impose any significant burden on                          Commission process and review your                    April 2, 2015.
                                                    competition; and (iii) become operative                   comments more efficiently, please use                    Pursuant to the provisions of Section
                                                    for 30 days from the date on which it                     only one method. The Commission will                  19(b)(1) of the Securities Exchange Act
                                                    was filed, or such shorter time as the                    post all comments on the Commission’s                 of 1934 (‘‘Act’’),1 and Rule 19b–4
                                                    Commission may designate, if
                                                                                                              Internet Web site (http://www.sec.gov/                thereunder,2 notice is hereby given that
                                                    consistent with the protection of
                                                                                                              rules/sro.shtml). Copies of the                       on March 31, 2015, Miami International
                                                    investors and the public interest, the
                                                                                                              submission, all subsequent                            Securities Exchange LLC (‘‘MIAX’’ or
                                                    proposed rule change has become
                                                                                                              amendments, all written statements                    ‘‘Exchange’’) filed with the Securities
                                                    effective pursuant to Section 19(b)(3)(A)
                                                                                                              with respect to the proposed rule                     and Exchange Commission
                                                    of the Act 16 and Rule 19b–4(f)(6)(iii)
                                                                                                              change that are filed with the                        (‘‘Commission’’) a proposed rule change
                                                    thereunder.17 The Exchange represents
                                                                                                              Commission, and all written                           as described in Items I, II, and III below,
                                                    that this proposed rule change will be
                                                                                                              communications relating to the                        which Items have been prepared by the
                                                    implemented during the Second Quarter
                                                                                                              proposed rule change between the                      Exchange. The Commission is
                                                    of 2015 subject to the issuance of an
                                                                                                              Commission and any person, other than                 publishing this notice to solicit
                                                    Equity Trader Alert that will provide at
                                                                                                                                                                    comments on the proposed rule change
                                                    least 30 days of notice prior to the                      those that may be withheld from the
                                                                                                                                                                    from interested persons.
                                                    operative date for the respective                         public in accordance with the
                                                    amendments to Rule 4751(h).                               provisions of 5 U.S.C. 552, will be                   I. Self-Regulatory Organization’s
                                                       At any time within 60 days of the                      available for Web site viewing and                    Statement of the Terms of the Substance
                                                    filing of the proposed rule change, the                   printing in the Commission’s Public                   of the Proposed Rule Change
                                                    Commission summarily may                                  Reference Room, 100 F Street NE.,                        The Exchange is filing a proposal to
                                                    temporarily suspend such rule change if                   Washington, DC 20549 on official                      modify the Market Maker Trading
                                                    it appears to the Commission that such                    business days between the hours of                    Permit Fee.
                                                    action is necessary or appropriate in the                                                                          The text of the proposed rule change
                                                                                                              10:00 a.m. and 3:00 p.m. Copies of such
                                                    public interest, for the protection of                                                                          is available on the Exchange’s Web site
                                                                                                              filing also will be available for
                                                    investors, or otherwise in furtherance of                                                                       at http://www.miaxoptions.com/filter/
                                                    the purposes of the Act. If the                           inspection and copying at the principal
                                                                                                              offices of the Exchange. All comments                 wotitle/rule_filing, at MIAX’s principal
                                                    Commission takes such action, the                                                                               office, and at the Commission’s Public
                                                    Commission shall institute proceedings                    received will be posted without change;
                                                                                                              the Commission does not edit personal                 Reference Room.
                                                    to determine whether the proposed rule
                                                    should be approved or disapproved.                        identifying information from                          II. Self-Regulatory Organization’s
                                                                                                              submissions. You should submit only                   Statement of the Purpose of, and
                                                    IV. Solicitation of Comments                              information that you wish to make                     Statutory Basis for, the Proposed Rule
                                                      Interested persons are invited to                       available publicly. All submissions                   Change
                                                    submit written data, views, and                           should refer to File Number SR–BX–                       In its filing with the Commission, the
                                                    arguments concerning the foregoing,                       2015–016, and should be submitted on                  Exchange included statements
                                                    including whether the proposed rule                       or before April 29, 2015.                             concerning the purpose of and basis for
                                                    change is consistent with the Act.                                                                              the proposed rule change and discussed
                                                    Comments may be submitted by any of                         For the Commission, by the Division of
                                                                                                              Trading and Markets, pursuant to delegated            any comments it received on the
                                                    the following methods:
                                                                                                              authority.18                                          proposed rule change. The text of these
                                                    Electronic Comments                                       Brent J. Fields,                                      statements may be examined at the
                                                      • Use the Commission’s Internet                                                                               places specified in Item IV below. The
                                                                                                              Secretary.
                                                    comment form (http://www.sec.gov/                                                                               Exchange has prepared summaries, set
                                                                                                              [FR Doc. 2015–07966 Filed 4–7–15; 8:45 am]
                                                    rules/sro.shtml); or                                                                                            forth in sections A, B, and C below, of
                                                      • Send an email to rule-comments@                       BILLING CODE 8011–01–P                                the most significant aspects of such
                                                    sec.gov. Please include File Number SR–                                                                         statements.
                                                    BX–2015–016 on the subject line.                                                                                A. Self-Regulatory Organization’s
                                                                                                                                                                    Statement of the Purpose of, and
                                                      14 15  U.S.C. 78s(b)(3)(A)(iii).
                                                      15 17
                                                                                                                                                                    Statutory Basis for, the Proposed Rule
                                                             CFR 240.19b–4(f)(6).
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                       16 15 U.S.C. 78s(b)(3)(A).
                                                                                                                                                                    Change
                                                       17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                                                                                                                                                    1. Purpose
                                                    4(f)(6)(iii) requires the Exchange to give the
                                                    Commission written notice of the Exchange’s intent                                                                 The Exchange proposes to modify its
                                                    to file the proposed rule change, along with a brief                                                            Trading Permit fees to increase the
                                                    description and text of the proposed rule change,                                                               monthly Trading Permit fees that apply
                                                    at least five business days prior to the date of filing
                                                    of the proposed rule change, or such shorter time
                                                                                                                                                                      1 15   U.S.C. 78s(b)(1).
                                                    as designated by the Commission. The Exchange
                                                    has satisfied this requirement.                             18 17   CFR 200.30–3(a)(12).                          2 17   CFR 240.19b–4.



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                                                                                  Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices                                           18893

                                                    to Market Makers (‘‘MMs’’). Specifically,               Trading Permit fee for MMs so that it is               As such, the proposal is reasonably
                                                    the Exchange proposes to: (i) Increase                  more aligned with the rates charged by                 designed to continue to compete with
                                                    the monthly Trading Permit fee that                     competing options exchanges.                           other options exchange by incentivizing
                                                    applies to MMs for MM Assignments in                       The Exchange proposes to modify its                 market participants to register as Market
                                                    up to 250 options classes from $5,500 to                MM Trading Permit fee to increase the                  Makers on the Exchange in a manner
                                                    $15,000; (ii) increase the monthly                      monthly Trading Permit fee that applies                that enables the Exchange to improve its
                                                    Trading Permit fee that applies to MMs                  to MMs. Specifically, the Exchange                     overall competitiveness and strengthen
                                                    for MM Assignments in all classes from                  proposes to: (i) Increase the monthly                  its market quality for all market
                                                    $7,000 to $22,000; (iii) eliminate the                  Trading Permit fee that applies to MMs                 participants. The proposed fee is fair
                                                    Trading Permit fee that applies to MMs                  for MM Assignments in up to 250                        and equitable and not unreasonably
                                                    for MM Assignments in up to 100                         options classes from $5,500 to $15,000;                discriminatory because it applies
                                                    options classes; and (iv) add some                      (ii) increase the monthly Trading Permit               equally to all Market Makers regardless
                                                    clarifying language to the Fee Schedule                 fee that applies to MMs for MM                         of type. All similarly situated Market
                                                    regarding the fee applicable to MM                      Assignments in all classes from $7,000                 Makers, with the same number of
                                                    Assignments above 250.                                  to $22,000; and (iii) eliminate the                    assignments, will be subject to the same
                                                      The Exchange issues Trading Permits                   Trading Permit fee that applies to MMs                 Trading Permit fee, and access to the
                                                    that confer the ability to transact on the              for MM Assignments in up to 100                        Exchange is offered on terms that are
                                                    Exchange.3 Currently, all MMs, whether                  options classes.                                       not unfairly discriminatory.
                                                    they are a RMM, LMM or PLMM, are                           Members receiving Trading Permits
                                                                                                            during the month will be assessed                      B. Self-Regulatory Organization’s
                                                    assessed $4,000 per month for a Trading
                                                                                                            Trading Permit Fees according to the                   Statement on Burden on Competition
                                                    Permit for an assignment in up to 100
                                                    option classes, $5,500 per month for a                  above schedule, except that the                           The Exchange does not believe that
                                                    Trading Permit for an assignment in up                  calculation of the Trading Permit fee for              the proposed rule change will impose
                                                    to 250 option classes, or $7,000 per                    the first month in which the Trading                   any burden on competition not
                                                    month for a Trading Permit for an                       Permit is issued will be pro-rated based               necessary or appropriate in furtherance
                                                    assignment in all option classes listed                 on the number of trading days occurring                of the purposes of the Act. The
                                                    on the Exchange.4 The Exchange notes                    after the date on which the Trading                    Exchange believes that the proposal
                                                    that the current monthly Trading Permit                 Permit was in effect during that first                 increases both intermarket and
                                                    fees are in some instances substantially                month divided by the total number of                   intramarket competition by increasing
                                                    lower than monthly trading permit fees                  trading days in such month multiplied                  Trading Permit fees for Market Makers
                                                    in place at other competing options                     by the monthly rate.                                   on the Exchange in a manner that allows
                                                    exchanges.5 The Exchange established                       Finally, the Exchange proposes to add               all Market Makers to be subject to the
                                                    these lower rates in order to encourage                 some clarifying language to the Fee                    same fee based on the number of
                                                    additional market participants to                       Schedule in order to specify that the                  assignments regardless of type and yet
                                                    become Members of the Exchange and                      $22,000 Trading Permit Fee applies to                  still be in the range of comparable fees
                                                    register as MIAX Market Makers. Now                     MMs Assignments over 250 up to all                     on other exchanges. The Exchange notes
                                                    that the Exchange has grown its market                  options classes listed on MIAX. The                    that it operates in a highly competitive
                                                    share and membership base, the                          Exchange believes that the proposed                    market in which market participants can
                                                    Exchange proposes to modify its                         change will help avoid the potential for               readily favor competing venues if they
                                                                                                            confusion on behalf of MMs as to which                 deem fee levels at a particular venue to
                                                       3 There is no limit on the number of Trading         fee level applies to MMs Assignments                   be excessive. In such an environment,
                                                    Permits that may be issued by the Exchange;             over 250 options classes.                              the Exchange must continually adjust its
                                                    however the Exchange has the authority to limit or         The Exchange proposes to implement                  fees to remain competitive with other
                                                    decrease the number of Trading Permits it has           the Trading Permit fees beginning April
                                                    determined to issue provided it complies with the
                                                                                                                                                                   exchanges and to attract order flow to
                                                    provisions set forth in Rule 200(a) and Section         1, 2015.                                               the Exchange. The Exchange believes
                                                    6(c)(4) of the Exchange Act. See 15 U.S.C.
                                                                                                            2. Statutory Basis                                     that the proposal reflects this
                                                    78(f)(c)(4). For a complete description of MIAX                                                                competitive environment because it
                                                    Trading Permits, see MIAX Rule 200.                        The Exchange believes that its                      increases the Exchange’s fees in a
                                                       4 The monthly Trading Permit Fee is in addition
                                                                                                            proposal to amend its fee schedule is                  manner that continues to encourage
                                                    to the one-time application fee for MIAX
                                                    Membership. The Exchange charges a one-time
                                                                                                            consistent with Section 6(b) of the Act 6              market participants to register as Market
                                                    application fee based upon the applicant’s status as    in general, and furthers the objectives of             Makers on the Exchange, to provide
                                                    either an Electronic Exchange Member (‘‘EEM’’) or       Section 6(b)(4) of the Act 7 in particular,            liquidity, and to attract order flow. To
                                                    as a Market Maker. Applicants for MIAX                  in that it is an equitable allocation of
                                                    Membership as an EEM are assessed a one-time                                                                   the extent that this purpose is achieved,
                                                    Application Fee of $2,500.00. Applicants for MIAX
                                                                                                            reasonable fees and other charges among                all the Exchange’s market participants
                                                    Membership as a Market Maker are assessed a one-        Exchange members.                                      should benefit from the improved
                                                    time Application Fee of $3,000.00. The difference          The Exchange believes that the                      market liquidity.
                                                    in the fee charged to EEMs and Market Makers            proposed Trading Permit fee is
                                                    reflects the additional review and processing effort                                                           C. Self-Regulatory Organization’s
                                                    needed for Market Maker applications.
                                                                                                            reasonable, equitable and not unfairly
                                                       5 See e.g., NYSE Arca Options Fees and Charges,      discriminatory. The proposed Trading                   Statement on Comments on the
                                                    p.1 (assessing market makers $6,000 for up to 100       Permit fees are reasonable in that they                Proposed Rule Change Received From
                                                                                                            are within the range of comparable fees                Members, Participants, or Others
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    option issues, an additional $5,000 for up to 250
                                                    option issues, an additional $4,000 for up to 750       at other competing options exchanges.8
                                                    option issues, and an additional $3,000 for all
                                                                                                                                                                     Written comments were neither
                                                    option issues on the exchange); NYSE Amex                                                                      solicited nor received.
                                                                                                              6 15  U.S.C. 78f(b).
                                                    Options Fee Schedule, p. 19 (assessing market
                                                    makers $8,000 for up to 60 plus the bottom 45%,           7 15  U.S.C. 78f(b)(4).                              III. Date of Effectiveness of the
                                                    an additional $6,000 for up to 150 plus the bottom         8 See supra note 5. NYSE Arca Options charges       Proposed Rule Change and Timing for
                                                    45%, an additional $5,000 for up to 500 plus the        $11,000 for up to 250 option issues and $18,000 for    Commission Action
                                                    bottom 45%, and additional $4,000 for up to 1,000       all options issues on the exchange. NYSE Amex
                                                    [sic] plus the bottom 45%, and an additional $3,000     Options charges $26,000 for all option issues on the      The foregoing rule change has become
                                                    for all issues traded on the exchange).                 exchange.                                              effective pursuant to Section


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                                                    18894                               Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices

                                                    19(b)(3)(A)(ii) of the Act.9 At any time                   received will be posted without change;               concerning the purpose of and basis for
                                                    within 60 days of the filing of the                        the Commission does not edit personal                 the proposed rule change and discussed
                                                    proposed rule change, the Commission                       identifying information from                          any comments it received on the
                                                    summarily may temporarily suspend                          submissions. You should submit only                   proposed rule change. The text of these
                                                    such rule change if it appears to the                      information that you wish to make                     statements may be examined at the
                                                    Commission that such action is                             available publicly. All submissions                   places specified in Item IV below. The
                                                    necessary or appropriate in the public                     should refer to File Number SR–MIAX–                  Exchange has prepared summaries, set
                                                    interest, for the protection of investors,                 2015–24, and should be submitted on or                forth in sections A, B, and C below, of
                                                    or otherwise in furtherance of the                         before April 29, 2015.                                the most significant aspects of such
                                                    purposes of the Act. If the Commission                       For the Commission, by the Division of              statements.
                                                    takes such action, the Commission shall                    Trading and Markets, pursuant to delegated            A. Self-Regulatory Organization’s
                                                    institute proceedings to determine                         authority.10                                          Statement of the Purpose of, and
                                                    whether the proposed rule should be                        Brent J. Fields,                                      Statutory Basis for, the Proposed Rule
                                                    approved or disapproved.                                   Secretary.                                            Change
                                                    IV. Solicitation of Comments                               [FR Doc. 2015–07960 Filed 4–7–15; 8:45 am]
                                                                                                                                                                     1. Purpose
                                                      Interested persons are invited to                        BILLING CODE 8011–01–P
                                                                                                                                                                        The Exchange proposes to amend the
                                                    submit written data, views, and
                                                                                                                                                                     MIAX Options Fee Schedule (the ‘‘Fee
                                                    arguments concerning the foregoing,
                                                                                                               SECURITIES AND EXCHANGE                               Schedule’’) to increase the fees for MEI
                                                    including whether the proposed rule
                                                                                                               COMMISSION                                            Ports to Market Makers. Specifically, the
                                                    change is consistent with the Act.
                                                                                                                                                                     Exchange proposes to: (i) Increase the
                                                    Comments may be submitted by any of                        [Release No. 34–74633; File No. SR–MIAX–
                                                                                                               2015–25]                                              MEI Port Fee for the first matching
                                                    the following methods:
                                                                                                                                                                     engine used, from $1,000 to $2,500 per
                                                    Electronic Comments                                        Self-Regulatory Organizations; Miami                  month; (ii) increase the MEI Port Fee for
                                                      • Use the Commission’s Internet                          International Securities Exchange LLC;                each of matching engines 2 through 5,
                                                    comment form (http://www.sec.gov/                          Notice of Filing and Immediate                        from $500 to $1,200 per month; (iii)
                                                    rules/sro.shtml); or                                       Effectiveness of a Proposed Rule                      increase the MEI Port Fee for each of
                                                      • Send an email to rule-comments@                        Change To Amend Its Fee Schedule                      matching engines 6 and above, from
                                                    sec.gov. Please include File Number SR–                                                                          $250 to $700 per month; and (iv)
                                                                                                               April 2, 2015.                                        increase the fee for additional Limited
                                                    MIAX–2015–24 on the subject line.
                                                                                                                  Pursuant to the provisions of Section              Service MEI Ports from $10 to $50 per
                                                    Paper Comments                                             19(b)(1) of the Securities Exchange Act               month.
                                                       • Send paper comments in triplicate                     of 1934 (‘‘Act’’),1 and Rule 19b–4                       Currently, MIAX assesses monthly
                                                    to Brent J. Fields, Secretary, Securities                  thereunder,2 notice is hereby given that              MEI Port Fees on Market Makers based
                                                    and Exchange Commission, 100 F Street                      on March 31, 2015, Miami International                upon the number of MIAX matching
                                                    NE., Washington, DC 20549–1090.                            Securities Exchange LLC (‘‘MIAX’’ or                  engines 3 used by the Market Maker.
                                                    All submissions should refer to File                       ‘‘Exchange’’) filed with the Securities               MEI Port users are allocated two Full
                                                    Number SR–MIAX–2015–24. This file                          and Exchange Commission                               Service MEI Ports 4 and two Limited
                                                    number should be included on the                           (‘‘Commission’’) a proposed rule change               Service MEI Ports 5 per matching engine
                                                    subject line if email is used. To help the                 as described in Items I, II, and III below,           to which they connect. The Exchange
                                                    Commission process and review your                         which Items have been prepared by the                 currently assesses a fee of $1,000 per
                                                    comments more efficiently, please use                      Exchange. The Commission is                           month on Market Makers for the first
                                                    only one method. The Commission will                       publishing this notice to solicit                     matching engine they use; $500 per
                                                    post all comments on the Commission’s                      comments on the proposed rule change                  month for each of matching engines 2
                                                    Internet Web site (http://www.sec.gov/                     from interested persons.                              through 5; and $250 per month for each
                                                    rules/sro.shtml). Copies of the                            I. Self-Regulatory Organization’s                     of matching engines 6 and above. For
                                                    submission, all subsequent                                 Statement of the Terms of the Substance                  3 A ‘‘matching engine’’ is a part of the MIAX
                                                    amendments, all written statements                         of the Proposed Rule Change                           electronic system that processes options quotes and
                                                    with respect to the proposed rule
                                                                                                                  The Exchange is filing a proposal to               trades on a symbol-by-symbol basis. Some matching
                                                    change that are filed with the                                                                                   engines will process option classes with multiple
                                                                                                               amend the MIAX Options Fee Schedule
                                                    Commission, and all written                                                                                      root symbols, and other matching engines will be
                                                                                                               (the ‘‘Fee Schedule’’).                               dedicated to one single option root symbol (for
                                                    communications relating to the                                The text of the proposed rule change               example, options on SPY will be processed by one
                                                    proposed rule change between the                           is available on the Exchange’s Web site               single matching engine that is dedicated only to
                                                    Commission and any person, other than                      at http://www.miaxoptions.com/filter/                 SPY). A particular root symbol may only be
                                                    those that may be withheld from the                        wotitle/rule_filing, at MIAX’s principal              assigned to a single designated matching engine. A
                                                    public in accordance with the                                                                                    particular root symbol may not be assigned to
                                                                                                               office, and at the Commission’s Public                multiple matching engines.
                                                    provisions of 5 U.S.C. 552, will be                        Reference Room.                                          4 Full Service MEI Ports provide Market Makers
                                                    available for Web site viewing and                                                                               with the ability to send Market Maker quotes,
                                                    printing in the Commission’s Public                        II. Self-Regulatory Organization’s                    eQuotes, and quote purge messages to the MIAX
                                                    Reference Room, 100 F Street NE.,                          Statement of the Purpose of, and                      System. Full Service MEI Ports are also capable of
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                               Statutory Basis for, the Proposed Rule                receiving administrative information. Market
                                                    Washington, DC 20549 on official                                                                                 Makers are limited to two Full Service MEI Ports
                                                    business days between the hours of                         Change                                                per matching engine.
                                                    10:00 a.m. and 3:00 p.m. Copies of such                       In its filing with the Commission, the                5 Limited Service MEI Ports provide Market

                                                    filing also will be available for                          Exchange included statements                          Makers with the ability to send eQuotes and quote
                                                    inspection and copying at the principal                                                                          purge messages only, but not Market Maker Quotes,
                                                                                                                                                                     to the MIAX System. Limited Service MEI Ports are
                                                    office of the Exchange. All comments                         10 17 CFR 200.30–3(a)(12).                          also capable of receiving administrative
                                                                                                                 1 15 U.S.C. 78s(b)(1).                              information. Market Makers initially receive two
                                                      9 15   U.S.C. 78s(b)(3)(A)(ii).                            2 17 CFR 240.19b–4.                                 Limited Service MEI Ports per matching engine.



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Document Created: 2018-02-21 10:07:13
Document Modified: 2018-02-21 10:07:13
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 18892 

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