80 FR 22749 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish the MIAX Order Feed

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 78 (April 23, 2015)

[Federal Register Volume 80, Number 78 (Thursday, April 23, 2015)]
[Notices]
[Pages 22749-22751]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-09427]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74759; File No. SR-MIAX-2015-28]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Establish the MIAX Order Feed

April 17, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 22750]]

(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on April 7, 2015, Miami International Securities Exchange LLC (``MIAX'' 
or ``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``Commission'') the proposed rule change as described in 
Items I and II 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 Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to establish the MIAX Order Feed 
(``MOR'').
    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 establish the MIAX Order Feed (``MOR'') 
data product. MOR is a real-time full order book data feed that 
provides information for orders on the MIAX order book. The proposed 
data feed is based on the substantially similar market data feed of 
another options exchange.\3\
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    \3\ See Securities Exchange Act Release No. 66993 (May 15, 
2012), 77 FR 30043 (May 21, 2012) (SR-PHLX-2012-63).
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    MOR will provide real-time information to enable users to keep 
track of the simple order book for all symbols listed on MIAX. MOR will 
provide real-time data including the limit price, origin, and size of 
each order for the entire order book to its users. It is a compilation 
of data for orders residing on the Exchange's order book for options 
traded on the Exchange that the Exchange provides through a real-time 
data feed. The Exchange updates the information upon receipt of each 
order or change in status to any order resting on the book (e.g., 
routing, trading, or cancelling of the order).
    The Exchange believes that some users do not wish or need to 
subscribe to the full MIAX Top of Market Options (``ToM'') data 
product; \4\ the MOR data product is being offered to those users that 
want the order book information but don't have the need for the entire 
ToM data product. Accordingly, the Exchange proposes to make available 
the MOR data product for any user that needs or wants only order book 
information.
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    \4\ See Securities Exchange Act Release Nos. 73395 (October 21, 
2014), 79 FR 63979 (October 27, 2014) (SR-MIAX-2014-53); 69007 
(February 28, 2013), 78 FR 14617 (March 6, 2013) (SR-MIAX-2013-05).
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    The Exchange represents that it will make MOR equally available to 
any market participant that wishes to subscribe to it. The Exchange 
will establish monthly fees for the MOR data product by way of a 
separate proposed rule change, which the Exchange will submit after the 
MOR product is established.
    MOR will provide subscribers with specific order book data that 
should enhance their ability to analyze market conditions, and to 
create and test trading models and analytical strategies. The Exchange 
believes that MOR is a valuable tool that subscribers can use to gain 
comprehensive insight into the limit order book in a particular option.
2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with 
Section 6(b) of the Act \5\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act \6\ in particular, in that it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanisms of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The MOR market data product is designed to promote just and 
equitable principles of trade by providing all subscribers with limit 
order book data that should enable them to make informed decisions on 
trading in MIAX options by using the MOR data to assess current market 
conditions that directly affect such decisions. The proposed market 
data product facilitates transactions in securities, removes 
impediments to and perfect the mechanisms of a free and open market and 
a national market system by enhancing the subscribers' ability to make 
decisions on trading strategy, and by providing data that should help 
bring about such decisions in a timely manner to the protection of 
investors and the public interest. The market data provided by MOR 
removes impediments to, and is designed to further perfect, the 
mechanisms of a free and open market and a national market system by 
making the MIAX market more transparent and accessible to market 
participants making routing decisions concerning their options orders. 
The MOR market data product is also designed to protect investors and 
the public interest by providing data to subscribers that is already 
currently available on other exchanges and will enable MIAX to compete 
with such other exchanges, thereby offering market participants with 
additional data in order to seek the market center with the best price 
and the most liquidity on which to execute their transactions, all to 
the benefit of investors and the public interest, and to the 
marketplace as a whole.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. On the contrary, the 
Exchange believes that the new market data product will enhance 
competition in the U.S. options markets by providing subscribers on 
MIAX a market data product that is similar to that which is currently 
provided on other options exchange.\7\
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    \7\ See Securities Exchange Act Release No. 66993 (May 15, 
2012), 77 FR 30043 (May 21, 2012) (SR-PHLX-2012-63).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

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

    The Exchange has filed the proposed rule change pursuant to Section

[[Page 22751]]

19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\ Because 
the proposed rule change does not: (i) Significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6) thereunder.\11\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6)\12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposed 
rule change may become operative immediately upon filing. The 
Commission believes that waiver of the operative delay is consistent 
with investor protection and the public interest because the proposal 
will provide market participants with additional data in order to seek 
the market center with the best price and most liquidity on which to 
execute their transactions, and is substantially similar to that of 
another exchange.\14\ Further, waiver of the operative delay would 
provide access to this additional data without delay. Accordingly, the 
Commission hereby waives the 30-day operative delay and designates the 
proposal operative upon filing.\15\
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ See supra note 3.
    \15\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MIAX-2015-28 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-MIAX-2015-28. 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 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal offices 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-2015-28, and should be 
submitted on or before May 14, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12), (59).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-09427 Filed 4-22-15; 8:45 am]
BILLING CODE 8011-01-P