80 FR 48382 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 155 (August 12, 2015)
Federal Register Volume 80, Issue 155 (August 12, 2015)
| Page Range | 48382-48385 | |
| FR Document | 2015-19761 |
[Federal Register Volume 80, Number 155 (Wednesday, August 12, 2015)] [Notices] [Pages 48382-48385] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-19761] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75631; File No. SR-MIAX-2015-51] Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Fee Schedule August 6, 2015. Pursuant to 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 August 5, 2015, Miami International Securities Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and Exchange Commission (``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 The Exchange is filing a proposal to amend the MIAX Options Fee Schedule (the ``Fee Schedule''). 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 amend its Fee Schedule to (i) establish an additional transaction fee rebate for Priority Customer \3\ orders submitted by Members that meet certain percentage thresholds of national customer volume in multiply-listed options classes listed on MIAX; and (ii) establish new monthly volume thresholds in such option classes in the Priority Customer Rebate Program (the ``Program'').\4\ --------------------------------------------------------------------------- \3\ The term ``Priority Customer'' means a person or entity that (i) is not a broker or dealer in securities, and (ii) does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial accounts(s). See Exchange Rule 100. \4\ See Securities Exchange Act Release Nos. 74758 (April 17, 2015), 80 FR 22756 (April 23, 2015) (SR-MIAX-2015-27); 74007 (January 9 [sic], 2015), 80 FR 1537 (January 12, 2015) (SR-MIAX- 2014-69); 72799 (August 8, 2014), 79 FR 47698 (August 14, 2014) (SR- MIAX-2014-40); 72355 (June 10, 2014), 79 FR 34368 (June 16, 2014) (SR-MIAX-2014-25); 71698 (March 12, 2014), 79 FR 15185 (March 18, 2014) (SR-MIAX-2014-12); 71283 (January 10, 2014), 79 FR 2914 (January 16, 2014) (SR-MIAX-2013-63); 71009 (December 6, 2013), 78 FR 75629 (December 12, 2013) (SR-MIAX-2013-56). --------------------------------------------------------------------------- Priority Customer Rebate Program Currently, the Exchange credits each Member the per contract amount resulting from each Priority Customer order transmitted by that Member that is executed electronically on the Exchange in all multiply-listed option classes (excluding Qualified Contingent Cross Orders,\5\ mini- options,\6\ Priority Customer-to-Priority Customer Orders, PRIME Auction Or Cancel Responses, PRIME Contra-side Orders, PRIME Orders for which both the Agency and Contra-side Order are Priority Customers,\7\ and executions related to contracts that are routed to one or more exchanges in connection with the Options Order Protection and Locked/ Crossed Market Plan referenced in MIAX Rule 1400)), provided the Member meets certain tiered percentage thresholds in a month as described in the Priority Customer Rebate Program table.\8\ For each Priority Customer order transmitted by that Member which is executed electronically on the Exchange in MIAX Select Symbols, MIAX will continue to credit each member at the separate per contract rate for MIAX Select Symbols.\9\ For each Priority Customer order submitted into the PRIME Auction as a PRIME Agency Order, MIAX will continue to credit each member at the separate per contract rate for PRIME Agency Orders.\10\ The volume thresholds are calculated based on the customer volume over the course of the month. Volume will be recorded for and credits [[Page 48383]] will be delivered to the Member Firm that submits the order to the Exchange. --------------------------------------------------------------------------- \5\ A Qualified Contingent Cross Order is comprised of an originating order to buy or sell at least 1,000 contracts, or 10,000 mini-option contracts, that is identified as being part of a qualified contingent trade, as that term is defined in Interpretations and Policies .01 below, coupled with a contra-side order or orders totaling an equal number of contracts. A Qualified Contingent Cross Order is not valid during the opening rotation process described in Rule 503. See Exchange Rule 516(j). \6\ A mini-option is a series of option contracts with a 10 share deliverable on a stock, Exchange Traded Fund share, Trust Issued Receipt, or other Equity Index-Linked Security. See Exchange Rule 404, Interpretations and Policies .08. \7\ The MIAX Price Improvement Mechanism (``PRIME'') is a process by which a Member may electronically submit for execution (``Auction'') an order it represents as agent (``Agency Order'') against principal interest, and/or an Agency Order against solicited interest. For a complete description of PRIME and of PRIME order types and responses, see Exchange Rule 515A. \8\ See MIAX Fee Schedule Section (1)(a)(iii). \9\ See Securities Exchange [sic] Release Nos. 74291 (February 18, 2015), 80 FR 9841 (February 24, 2015) (SR-MIAX-2015-09); 74288 (February 18, 2015), 80 FR 9837 (February 24, 2015) (SR-MIAX-2015- 08); 71700 (March 12, 2014), 79 FR 15188 (March 18, 2014) (SR-MIAX- 2014-13); 72356 (June 10, 2014), 79 FR 34384 (June 16, 2014) (SR- MIAX-2014-26); 72567 (July 8, 2014), 79 FR 40818 (July 14, 2014) (SR-MIAX-2014-34); 73328 (October 9, 2014), 79 FR 62230 (October 16, 2014) (SR-MIAX-2014-50). \10\ See Securities Exchange [sic] Release No. 72943 (August 28, 2014), 79 FR 52785 (September 4, 2014) (SR-MIAX-2014-45). --------------------------------------------------------------------------- The amount of the rebate is calculated beginning with the first executed contract at the applicable threshold per contract credit with rebate payments made at the highest achieved volume tier for each contract traded in that month. For example, under the current Program, a Member that executes a number of Priority Customer contracts equal to 2.40% of the national customer volume in multiply-listed options during a particular calendar month, such Member will currently receive a credit of $0.17 for each Priority Customer contract executed during that month, even though there are lower incremental percentages for lower volume tiers leading up to the 2.4% volume threshold. The current Priority Customer Rebate Program table designates the following monthly volume tiers and corresponding per contract credits ---------------------------------------------------------------------------------------------------------------- Percentage thresholds of national customer volume in Per contract Per contract Per contract multiply-listed options classes listed on MIAX credit (non- credit in MIAX credit for PRIME (monthly) select symbols) select symbols agency order ---------------------------------------------------------------------------------------------------------------- 0.00%-0.40%............................................ $0.00 $0.00 $0.10 Above 0.40%-0.75%...................................... 0.10 0.10 0.10 Above 0.75%-1.75%...................................... 0.15 0.20 0.10 Above 1.75%-2.40%...................................... 0.17 0.20 0.10 Above 2.40%............................................ 0.18 0.20 0.10 ---------------------------------------------------------------------------------------------------------------- Proposal The Exchange proposes to amend Section (1)(a)(iii) of its Fee Schedule to reflect a new schedule of percentage thresholds of national customer volume, and new corresponding monthly per contract credits. Specifically, the new thresholds will be as set forth in the following table: ---------------------------------------------------------------------------------------------------------------- Percentage thresholds of national customer volume in Per contract Per contract Per contract multiply-listed options classes listed on MIAX credit (non- credit in MIAX credit for PRIME (monthly) select symbols) select symbols agency order ---------------------------------------------------------------------------------------------------------------- 0.00%-0.50%............................................ $0.00 $0.00 $0.10 Above 0.50%-1.00%...................................... 0.10 0.10 0.10 Above 1.00%-1.75%...................................... 0.15 0.20 0.10 Above 1.75%............................................ \11\ 0.17 0.20 0.10 ---------------------------------------------------------------------------------------------------------------- The Exchange believes that the proposed new monthly volume tiers and corresponding credits should provide incentives for Members to direct greater Priority Customer trade volume to the Exchange. --------------------------------------------------------------------------- \11\ The $0.17 per contract credit described in Tier 4 will be applied to each contract traded in non-Select Symbols in that month, beginning with the first contract executed in a particular month if the Tier 4 volume threshold is achieved. In addition to the $0.17 rebate, a supplemental rebate of $0.03 per contract will be applied to contracts executed in excess of 1.75% of the monthly national volume. --------------------------------------------------------------------------- MIAX Select Symbols The proposed new monthly volume thresholds and per contract credits will apply to MIAX Select Symbols,\12\ with the per contract credit increasing for certain monthly volume thresholds. The monthly per contract rebate will remain at $0.20 for all contracts executed in Select Symbols when the 1.00 percent threshold is exceeded for all applicable symbols. --------------------------------------------------------------------------- \12\ The term ``MIAX Select Symbols'' means options overlying AA, AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT, CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, SUNE, T, TSLA, USO, VALE, VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM, XOP and YHOO. See Fee Schedule, note 13. --------------------------------------------------------------------------- The Exchange also proposes to delete Tier 5 of the Priority Customer Rebate Program, which currently affords a rebate of $0.17 [sic] per contract for contracts executed when the total volume for the month exceeds of 2.4% of the national customer volume. Under the proposal, all contracts (other than Select Symbols) traded in a particular month when the Tier 4 volume threshold of 1.75% of the national monthly customer volume is exceeded will receive a credit of $0.17, and contracts executed in non-Select symbols in excess of 1.75% of national monthly customer volume will receive a supplemental rebate of $0.03 per contract. The Exchange believes that this new, increased rebate obviates the need for the Tier 5 threshold. The Exchange is proposing amendments to the Fee Schedule to delete references to the Tier 5 threshold throughout. All other aspects of the Program will remain unchanged. The Exchange is not proposing any change to the per contract credit for PRIME Agency Orders. Consistent with the current Fee Schedule, the Exchange will continue to aggregate the contracts resulting from Priority Customer orders transmitted and executed electronically on the Exchange from affiliated Members for purposes of the thresholds above, provided there is at least 75% common ownership between the firms as reflected on each firm's Form BD, Schedule A. In the event of a MIAX System outage or other interruption of electronic trading on MIAX, the Exchange will adjust the national customer volume in multiply-listed options for the duration of the outage. A Member may request to receive its credit under the Priority Customer Rebate Program as a separate direct payment. The purpose of the proposed rule change is to encourage Members to direct greater Priority Customer trade volume to the Exchange. The Exchange believes that increased Priority Customer volume will attract more liquidity to the Exchange, which benefits all market participants. Increased retail customer order flow should attract professional liquidity providers (Market Makers), which in turn should make the MIAX marketplace an attractive venue where Market Makers will submit narrow quotations with greater size, deepening and enhancing the quality of the MIAX marketplace. This should provide more trading opportunities and tighter spreads for other market participants and result in a corresponding increase [[Page 48384]] in order flow from such other market participants. The specific volume thresholds of the Program's tiers are set based upon business determinations and an analysis of current volume levels. The volume thresholds are intended to incentivize firms to increase the number of Priority Customer orders they send to the Exchange so that they can achieve the next threshold, and to encourage new participants to send Priority Customer orders as well. Increasing the number of orders sent to the Exchange will in turn provide tighter and more liquid markets, and therefore attract more business overall. Similarly, the different credit rates at the different tier levels are based on an analysis of current revenue and volume levels and are intended to provide increasing ``rewards'' to MIAX participants for increasing the volume of Priority Customer orders sent to, and Priority Customer contracts executed on, the Exchange. The specific amounts of the tiers and rates are set in order to encourage suppliers of Priority Customer order flow to reach for higher tiers. The credits paid out as part of the program will be drawn from the general revenues of the Exchange.\13\ The Exchange calculates volume thresholds on a monthly basis. --------------------------------------------------------------------------- \13\ Despite providing credits under the Program, the Exchange represents that it will continue to have adequate resources to fund its regulatory program and fulfill its responsibilities as a self- regulatory organization while the Program is in effect. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal to amend its fee schedule is consistent with Section 6(b) of the Act \14\ in general, and furthers the objectives of Section 6(b)(4) of the Act \15\ in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f(b). \15\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the proposal is fair, equitable and not unreasonably discriminatory. The Program and the proposed increase in the per contract rebate is reasonably designed because it will encourage providers of Priority Customer order flow to send that Priority Customer order flow to the Exchange in order to receive an increasing per contract credit with each volume tier achieved. The Exchange believes that the proposed new tier structure and supplemental rebate should improve market quality for all market participants. The proposed changes to the rebate program are fair and equitable and not unreasonably discriminatory because they apply equally to all Priority Customer orders. All similarly situated Priority Customer orders are subject to the same rebate schedule, and access to the Exchange is offered on terms that are not unfairly discriminatory. Furthermore, the proposed increase in credits for executing higher percentages of total national customer volume is equitable and not unfairly discriminatory because the proposed rates and changes encourage Members to direct increased amounts of Priority Customer contracts to the Exchange. Market participants want to trade with Priority Customer order flow. To the extent Priority Customer order flow is increased by the proposal, market participants will increasingly compete for the opportunity to trade on the Exchange including sending more orders and providing narrower and larger sized quotations in the effort to trade with such Priority Customer order flow. The resulting increased volume and liquidity will benefit all Exchange participants by providing more trading opportunities and tighter spreads. 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 proposed change would increase both intermarket and intramarket competition by encouraging Members to direct their Priority Customer orders to the Exchange, which should enhance the quality of quoting and increase the volume of contracts traded on MIAX. Respecting the competitive position of non-Priority Customers, the Exchange believes that this rebate program should provide additional liquidity that enhances the quality of its markets and increases the number of trading opportunities on MIAX for all participants, including non-Priority Customers, who will be able to compete for such opportunities. This should benefit all market participants and improve competition on the Exchange. 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 and rebates to remain competitive with other exchanges and to attract order flow to the Exchange. The Exchange believes that the proposed rule change reflects this competitive environment because it increases rebates and thus encourages market participants to direct their customer order flow, to provide liquidity, and to attract additional transaction volume to the Exchange. Given the robust competition for volume among options markets, many of which offer the same products, enhancing the existing volume based customer rebate program to attract order flow is consistent with the goals of the Act. The Exchange believes that the proposal will enhance competition, because market participants will have another additional pricing consideration in determining where to execute orders and post liquidity if they factor the benefits of the proposed rebate program into the determination. 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) of the Act.\16\ 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. --------------------------------------------------------------------------- \16\ 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 CommentsUse 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-2015-51 on the subject line. [[Page 48385]] 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-2015-51. 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-2015-51, and should be submitted on or before September 2, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-19761 Filed 8-11-15; 8:45 am] BILLING CODE 8011-01-P
![48382 Federal Register / Vol. 80, No. 155 / Wednesday, August 12, 2015 / Notices
members and persons associated with I. Self-Regulatory Organization’s executed electronically on the Exchange
members by providing the parties more Statement of the Terms of Substance of in all multiply-listed option classes
information about the allegations at the the Proposed Rule Change (excluding Qualified Contingent Cross
outset of the proceeding. The Exchange is filing a proposal to Orders,5 mini-options,6 Priority
Requiring a member firm that is the amend the MIAX Options Fee Schedule Customer-to-Priority Customer Orders,
subject of a TCDO to provide a copy of (the ‘‘Fee Schedule’’). PRIME Auction Or Cancel Responses,
the order to its associated persons The text of the proposed rule change PRIME Contra-side Orders, PRIME
should help prevent fraudulent and is available on the Exchange’s Web site Orders for which both the Agency and
manipulative acts and practices by at http://www.miaxoptions.com/filter/ Contra-side Order are Priority
ensuring that the persons who may act wotitle/rule_filing, at MIAX’s principal Customers,7 and executions related to
on behalf of the member firm are made office, and at the Commission’s Public contracts that are routed to one or more
aware of the contents of a TCDO Reference Room. exchanges in connection with the
imposed against the member firm. Options Order Protection and Locked/
II. Self-Regulatory Organization’s
For the reasons discussed above, the Statement of the Purpose of, and Crossed Market Plan referenced in
Commission finds that the proposed Statutory Basis for, the Proposed Rule MIAX Rule 1400)), provided the
rule change is consistent with the Change Member meets certain tiered percentage
Section 15A of the Act and the rules and thresholds in a month as described in
regulations thereunder. In its filing with the Commission, the the Priority Customer Rebate Program
Exchange included statements table.8 For each Priority Customer order
IV. Conclusion concerning the purpose of and basis for
transmitted by that Member which is
the proposed rule change and discussed
It is therefore ordered, pursuant to executed electronically on the Exchange
any comments it received on the
Section 19(b)(2) of the Act,25 that the in MIAX Select Symbols, MIAX will
proposed rule change. The text of these
proposed rule change (SR–FINRA– statements may be examined at the continue to credit each member at the
2015–019) be, and it hereby is, places specified in Item IV below. The separate per contract rate for MIAX
approved. Exchange has prepared summaries, set Select Symbols.9 For each Priority
For the Commission, by the Division of forth in sections A, B, and C below, of Customer order submitted into the
Trading and Markets, pursuant to delegated the most significant aspects of such PRIME Auction as a PRIME Agency
authority.26 statements. Order, MIAX will continue to credit
Robert W. Errett, each member at the separate per
A. Self-Regulatory Organization’s contract rate for PRIME Agency
Deputy Secretary.
Statement of the Purpose of, and Orders.10 The volume thresholds are
[FR Doc. 2015–19759 Filed 8–11–15; 8:45 am]
Statutory Basis for, the Proposed Rule calculated based on the customer
BILLING CODE 8011–01–P Change volume over the course of the month.
1. Purpose Volume will be recorded for and credits
SECURITIES AND EXCHANGE The Exchange proposes to amend its
COMMISSION Fee Schedule to (i) establish an
5 A Qualified Contingent Cross Order is
comprised of an originating order to buy or sell at
additional transaction fee rebate for least 1,000 contracts, or 10,000 mini-option
[Release No. 34–75631; File No. SR–MIAX– Priority Customer 3 orders submitted by contracts, that is identified as being part of a
2015–51] Members that meet certain percentage qualified contingent trade, as that term is defined
in Interpretations and Policies .01 below, coupled
thresholds of national customer volume with a contra-side order or orders totaling an equal
Self-Regulatory Organizations; Miami in multiply-listed options classes listed number of contracts. A Qualified Contingent Cross
International Securities Exchange, on MIAX; and (ii) establish new Order is not valid during the opening rotation
LLC; Notice of Filing and Immediate monthly volume thresholds in such process described in Rule 503. See Exchange Rule
Effectiveness of Proposed Rule option classes in the Priority Customer 516(j).
6 A mini-option is a series of option contracts
Change to Amend Fee Schedule Rebate Program (the ‘‘Program’’).4 with a 10 share deliverable on a stock, Exchange
August 6, 2015. Traded Fund share, Trust Issued Receipt, or other
Priority Customer Rebate Program Equity Index-Linked Security. See Exchange Rule
Pursuant to Section 19(b)(1) of the Currently, the Exchange credits each 404, Interpretations and Policies .08.
Securities Exchange Act of 1934 Member the per contract amount
7 The MIAX Price Improvement Mechanism
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 (‘‘PRIME’’) is a process by which a Member may
resulting from each Priority Customer electronically submit for execution (‘‘Auction’’) an
notice is hereby given that on August 5, order transmitted by that Member that is order it represents as agent (‘‘Agency Order’’)
2015, Miami International Securities against principal interest, and/or an Agency Order
Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’) 3 The term ‘‘Priority Customer’’ means a person against solicited interest. For a complete
filed with the Securities and Exchange or entity that (i) is not a broker or dealer in description of PRIME and of PRIME order types and
securities, and (ii) does not place more than 390 responses, see Exchange Rule 515A.
Commission (‘‘Commission’’) the 8 See MIAX Fee Schedule Section (1)(a)(iii).
orders in listed options per day on average during
proposed rule change as described in a calendar month for its own beneficial accounts(s). 9 See Securities Exchange [sic] Release Nos.
Items I, II, and III below, which Items See Exchange Rule 100. 74291 (February 18, 2015), 80 FR 9841 (February
have been prepared by the Exchange. 4 See Securities Exchange Act Release Nos. 74758 24, 2015) (SR–MIAX–2015–09); 74288 (February 18,
The Commission is publishing this (April 17, 2015), 80 FR 22756 (April 23, 2015) (SR– 2015), 80 FR 9837 (February 24, 2015) (SR–MIAX–
MIAX–2015–27); 74007 (January 9 [sic], 2015), 80 2015–08); 71700 (March 12, 2014), 79 FR 15188
mstockstill on DSK4VPTVN1PROD with NOTICES
notice to solicit comments on the FR 1537 (January 12, 2015) (SR–MIAX–2014–69); (March 18, 2014) (SR–MIAX–2014–13); 72356 (June
proposed rule change from interested 72799 (August 8, 2014), 79 FR 47698 (August 14, 10, 2014), 79 FR 34384 (June 16, 2014) (SR–MIAX–
persons. 2014) (SR–MIAX–2014–40); 72355 (June 10, 2014), 2014–26); 72567 (July 8, 2014), 79 FR 40818 (July
79 FR 34368 (June 16, 2014) (SR–MIAX–2014–25); 14, 2014) (SR–MIAX–2014–34); 73328 (October 9,
71698 (March 12, 2014), 79 FR 15185 (March 18, 2014), 79 FR 62230 (October 16, 2014) (SR–MIAX–
25 15 U.S.C. 78s(b)(2). 2014) (SR–MIAX–2014–12); 71283 (January 10, 2014–50).
26 17 CFR 200.30–3(a)(12). 2014), 79 FR 2914 (January 16, 2014) (SR–MIAX– 10 See Securities Exchange [sic] Release No.
1 15 U.S.C. 78s(b)(1).
2013–63); 71009 (December 6, 2013), 78 FR 75629 72943 (August 28, 2014), 79 FR 52785 (September
2 17 CFR 240.19b–4. (December 12, 2013) (SR–MIAX–2013–56). 4, 2014) (SR–MIAX–2014–45).
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![Federal Register / Vol. 80, No. 155 / Wednesday, August 12, 2015 / Notices 48383
will be delivered to the Member Firm Program, a Member that executes a month, even though there are lower
that submits the order to the Exchange. number of Priority Customer contracts incremental percentages for lower
The amount of the rebate is calculated equal to 2.40% of the national customer volume tiers leading up to the 2.4%
beginning with the first executed volume in multiply-listed options volume threshold.
contract at the applicable threshold per during a particular calendar month, The current Priority Customer Rebate
contract credit with rebate payments such Member will currently receive a
made at the highest achieved volume Program table designates the following
credit of $0.17 for each Priority monthly volume tiers and
tier for each contract traded in that Customer contract executed during that
month. For example, under the current corresponding per contract credits
Percentage thresholds of national customer volume in multiply-listed options Per contract credit Per contract credit Per contract credit
classes listed on MIAX (non-select in MIAX select for PRIME agency
(monthly) symbols) symbols order
0.00%–0.40% ............................................................................................................. $0.00 $0.00 $0.10
Above 0.40%–0.75% ................................................................................................. 0.10 0.10 0.10
Above 0.75%–1.75% ................................................................................................. 0.15 0.20 0.10
Above 1.75%–2.40% ................................................................................................. 0.17 0.20 0.10
Above 2.40% ............................................................................................................. 0.18 0.20 0.10
Proposal reflect a new schedule of percentage contract credits. Specifically, the new
The Exchange proposes to amend thresholds of national customer volume, thresholds will be as set forth in the
Section (1)(a)(iii) of its Fee Schedule to and new corresponding monthly per following table:
Percentage thresholds of national customer volume in multiply-listed options Per contract credit Per contract credit Per contract credit
classes listed on MIAX (non-select in MIAX select for PRIME agency
(monthly) symbols) symbols order
0.00%–0.50% ............................................................................................................. $0.00 $0.00 $0.10
Above 0.50%–1.00% ................................................................................................. 0.10 0.10 0.10
Above 1.00%–1.75% ................................................................................................. 0.15 0.20 0.10
Above 1.75% ............................................................................................................. 11 0.17 0.20 0.10
The Exchange believes that the The Exchange also proposes to delete provided there is at least 75% common
proposed new monthly volume tiers and Tier 5 of the Priority Customer Rebate ownership between the firms as
corresponding credits should provide Program, which currently affords a reflected on each firm’s Form BD,
incentives for Members to direct greater rebate of $0.17 [sic] per contract for Schedule A. In the event of a MIAX
Priority Customer trade volume to the contracts executed when the total System outage or other interruption of
Exchange. volume for the month exceeds of 2.4% electronic trading on MIAX, the
MIAX Select Symbols of the national customer volume. Under Exchange will adjust the national
the proposal, all contracts (other than customer volume in multiply-listed
The proposed new monthly volume Select Symbols) traded in a particular options for the duration of the outage.
thresholds and per contract credits will month when the Tier 4 volume A Member may request to receive its
apply to MIAX Select Symbols,12 with threshold of 1.75% of the national credit under the Priority Customer
the per contract credit increasing for monthly customer volume is exceeded Rebate Program as a separate direct
certain monthly volume thresholds. The will receive a credit of $0.17, and payment.
monthly per contract rebate will remain contracts executed in non-Select
at $0.20 for all contracts executed in symbols in excess of 1.75% of national The purpose of the proposed rule
Select Symbols when the 1.00 percent monthly customer volume will receive a change is to encourage Members to
threshold is exceeded for all applicable supplemental rebate of $0.03 per direct greater Priority Customer trade
symbols. contract. The Exchange believes that volume to the Exchange. The Exchange
this new, increased rebate obviates the believes that increased Priority
11 The $0.17 per contract credit described in Tier
need for the Tier 5 threshold. The Customer volume will attract more
4 will be applied to each contract traded in non- Exchange is proposing amendments to liquidity to the Exchange, which
Select Symbols in that month, beginning with the
first contract executed in a particular month if the the Fee Schedule to delete references to benefits all market participants.
Tier 4 volume threshold is achieved. In addition to the Tier 5 threshold throughout. Increased retail customer order flow
the $0.17 rebate, a supplemental rebate of $0.03 per
All other aspects of the Program will should attract professional liquidity
contract will be applied to contracts executed in
excess of 1.75% of the monthly national volume. remain unchanged. The Exchange is not providers (Market Makers), which in
12 The term ‘‘MIAX Select Symbols’’ means proposing any change to the per turn should make the MIAX
options overlying AA, AAL, AAPL, AIG, AMAT, marketplace an attractive venue where
mstockstill on DSK4VPTVN1PROD with NOTICES
contract credit for PRIME Agency
AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT, Market Makers will submit narrow
CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX,
Orders. Consistent with the current Fee
GE, GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, Schedule, the Exchange will continue to quotations with greater size, deepening
INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, aggregate the contracts resulting from and enhancing the quality of the MIAX
NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, Priority Customer orders transmitted marketplace. This should provide more
QQQ, RIG, S, SPY, SUNE, T, TSLA, USO, VALE, trading opportunities and tighter
VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF,
and executed electronically on the
XLP, XOM, XOP and YHOO. See Fee Schedule, Exchange from affiliated Members for spreads for other market participants
note 13. purposes of the thresholds above, and result in a corresponding increase
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![Federal Register / Vol. 80, No. 155 / Wednesday, August 12, 2015 / Notices 48385
Paper Comments SECURITIES AND EXCHANGE Rules 511 and 512 to reflect the new
COMMISSION defined term. ICC also proposes
• Send paper comments in triplicate clarifying language to specify that such
to Brent J. Fields, Secretary, Securities [Release No. 34–75634; File No. SR–ICC–
2015–012]
Independent ICE Subcommittee
and Exchange Commission, 100 F Managers are appointed by the ICC
Street, NE., Washington, DC 20549– Self-Regulatory Organizations; ICE Board. Finally, ICC proposes revising
1090. Clear Credit, LLC; Order Approving Rule 512 to clarify that for purposes of
Proposed Rule Change To Correct Rule 507(a), which sets forth meeting
All submissions should refer to File
Inconsistent Provisions Regarding the frequency requirements, the Risk
Number SR–MIAX–2015–51. This file
Risk Management Subcommittee Management Subcommittee shall meet
number should be included on the when deemed necessary or desirable by
subject line if email is used. To help the August 6, 2015. the Risk Management Subcommittee or
Commission process and review your its chairperson.
comments more efficiently, please use I. Introduction
only one method. The Commission will On June 10, 2015, ICE Clear Credit III. Discussion and Commission
post all comments on the Commission’s LLC (‘‘ICC’’) filed with the Securities Findings
Internet Web site (http://www.sec.gov/ and Exchange Commission Section 19(b)(2)(C) of the Act 4 directs
rules/sro.shtml). Copies of the (‘‘Commission’’), pursuant to Section the Commission to approve a proposed
submission, all subsequent 19(b)(1) of the Securities Exchange Act rule change of a self-regulatory
amendments, all written statements of 1934 (‘‘Act’’) 1 and Rule 19b–4 organization if the Commission finds
with respect to the proposed rule thereunder,2 a proposed rule change to that such proposed rule change is
amend the ICC Clearing Rules (‘‘Rules’’) consistent with the requirements of the
change that are filed with the
to correct inconsistent provisions Act and the rules and regulations
Commission, and all written
regarding the Risk Management thereunder applicable to such self-
communications relating to the Subcommittee (SR–ICC–2015–012). The
proposed rule change between the regulatory organization. Section
proposed rule change was published for 17A(b)(3)(F) of the Act 5 requires, among
Commission and any person, other than comment in the Federal Register on
those that may be withheld from the other things, that the rules of a clearing
June 22, 2015.3 The Commission did not agency are designed to protect investors
public in accordance with the receive comments on the proposed rule and the public interest. Rule 17Ad–
provisions of 5 U.S.C. 552, will be change. For the reasons discussed 22(d)(8) 6 further requires a registered
available for Web site viewing and below, the Commission is granting clearing agency that performs central
printing in the Commission’s Public approval of the proposed rule change. counterparty services to establish,
Reference Room, 100 F Street NE., implement, maintain and enforce
II. Description of the Proposed Rule
Washington, DC 20549 on official written policies and procedures
Change
business days between the hours of reasonably designed to, among other
10:00 a.m. and 3:00 p.m. Copies of such ICC has stated that the proposed rule
change is intended to correct things, have governance arrangements
filing also will be available for that are clear and transparent to fulfill
inspection and copying at the principal inconsistent provisions regarding the
Risk Management Subcommittee, the public interest requirements in
office of the Exchange. All comments Section 17A of the Act 7 applicable to
described in detail as follows. ICC has
received will be posted without change; clearing agencies and to promote the
stated that, in describing the
the Commission does not edit personal independence requirements for certain effectiveness of the clearing agency’s
identifying information from Risk Management Subcommittee risk management procedures.
submissions. You should submit only members in Rule 511(a)(iii), the rule Currently, the independence
information that you wish to make mistakenly referred to U.S. Commodity requirements in ICC Rule 511 for certain
available publicly. All submissions Futures Trading Commission (‘‘CFTC’’) Risk Management Subcommittee
should refer to File Number SR–MIAX– Regulation 1.3(ccc), a proposed members incorrectly reference a CFTC
2015–51, and should be submitted on or regulation that, to date, the CFTC has regulation that has not been adopted.
before September 2, 2015. not adopted. ICC proposes revising Rule The proposed rule change would
511(a)(iii) to remove the improper replace the incorrect CFTC rule citation
For the Commission, by the Division of with the requirement that certain
Trading and Markets, pursuant to delegated reference to CFTC Regulation 1.3(ccc)
and replace the rule cite with a members of the Risk Management
authority.17 Subcommittee meet ICC’s Independence
reference to ICC’s Independence
Robert W. Errett, Requirements as defined in ICC Rule
Requirements, which are defined in
Deputy Secretary. Rule 503. 503 8 (the Independent ICE
[FR Doc. 2015–19761 Filed 8–11–15; 8:45 am] Additionally, Independent Risk Subcommittee Managers). Additionally,
BILLING CODE 8011–01–P Management Subcommittee managers the proposed rule change would clarify
were previously defined as that the Independent ICE Subcommittee
‘‘Independent Public Directors’’ in Rules Managers are appointed by the ICC
511 and 512. ICC proposes re-defining Board. Finally, the proposed rule
such independent Risk Management
4 15 U.S.C. 78s(b)(2)(C).
Subcommittee managers to
mstockstill on DSK4VPTVN1PROD with NOTICES
5 15 U.S.C. 78q–1(b)(3)(F).
‘‘Independent ICE Subcommittee 6 17 CFR 240.17Ad–22(d)(8).
Managers’’ and updating references in 7 15 U.S.C. 78q–1.
8 ICC Rule 503 defines the ICC ‘‘Independence
1 15 U.S.C. 78s(b)(1). Requirements’’ to include the requirements of each
2 17 CFR 240.19b–4. of the New York Stock Exchange listing standards,
3 Securities Exchange Act Release No. 34–75179 the U.S. Securities Exchange Act of 1934, as
(Jun. 16, 2015), 80 FR 35689 (Jun. 22, 2015) (SR– amended, and Intercontinental Exchange, Inc.’s
17 17 CFR 200.30–3(a)(12). ICC–2015–012). Board of Director Governance Principles.
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Document Created: 2016-09-27 22:27:27
Document Modified: 2016-09-27 22:27:27
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 48382 |
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