80 FR 55158 - 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 177 (September 14, 2015)
Federal Register Volume 80, Issue 177 (September 14, 2015)
| Page Range | 55158-55162 | |
| FR Document | 2015-22977 |
[Federal Register Volume 80, Number 177 (Monday, September 14, 2015)] [Notices] [Pages 55158-55162] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-22977] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75856; File No. SR-MIAX-2015-53] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule September 8, 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 August 28, 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. --------------------------------------------------------------------------- \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. [[Page 55159]] 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 increase the transaction fee rebate for Priority Customer \3\ orders submitted by Members that meet certain percentage thresholds of national customer volume in multiply-listed option classes listed on MIAX 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. 75631 (August 5 [sic], 2015), 80 FR 48382 (August 6 [sic], 2015) (SR-MIAX-2015-51); 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 and executed electronically on the Exchange, MIAX will continue to credit each member at the per contract rate for option classes that are not in MIAX Select Symbols (as defined below). For each Priority Customer order transmitted by that Member and executed electronically on the Exchange in MIAX Select Symbols (as defined below), 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 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 Fee Schedule Section (1)(a)(iii). \9\ See Securities Exchange [sic] Release Nos. 75631 (August 5 [sic], 2015), 80 FR 48382 (August 6 [sic], 2015) (SR-MIAX-2015-51); 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 above 1.75% of the national customer volume in multiply-listed options during a particular calendar month currently receives a credit of $0.17 for each Priority Customer contract (other than Select Symbols) executed during that month, even though there are lower incremental percentages for lower volume tiers leading up to the 1.75% volume threshold. In addition, all contracts (other than Select Symbols) traded in a particular month in excess of 1.75% of the national volume receive a supplemental rebate of $0.03 per contract. The current Priority Customer Rebate Program table designates the following monthly volume tiers and corresponding per contract credits: ---------------------------------------------------------------------------------------------------------------- Per contract Per contract Percentage thresholds of national customer volume in multiply- credit (non- Per contract credit for listed options classes listed on MIAX (monthly) select credit in MIAX PRIME agency symbols) select symbols order ---------------------------------------------------------------------------------------------------------------- Tier 1--0.00%-0.50%............................................. $0.00 $0.00 $0.10 Tier 2--Above 0.50%-1.00%....................................... 0.10 0.10 0.10 Tier 3--Above 1.00%-1.75%-1.75% [sic]........................... 0.15 0.20 0.10 Tier 4--Above 1.75%............................................. 0.17 0.20 0.10 ---------------------------------------------------------------------------------------------------------------- The $0.17 per contract credit described in Tier 4 is 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 is applied to contracts executed in excess of 1.75% of the monthly national volume in non- Select Symbols. Proposal The Exchange proposes to increase the per contract credit for transactions in non-Select Symbols for Tier 4. As stated above, 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 receive a credit of $0.17 per contract for qualifying Priority Customer transactions on MIAX. The Exchange [[Page 55160]] proposes to increase this per contract credit for Priority Customer transactions in non-Select Symbols in Tier 4 to $0.21. Contracts executed in non-Select Symbols in excess of 1.75% of national monthly customer volume currently receive a supplemental rebate of $0.03 per contract. The Exchange proposes to eliminate this additional $0.03 rebate per contract. The Exchange also proposes to increase the per contract credit for transactions in MIAX Select Symbols for tiers 3 and 4. Currently, the Exchange credits $0.20 per contract for qualifying Priority Customer transactions in MIAX Select Symbols in tiers 3 and 4. The Exchange proposes to increase the per contract credit for transactions in MIAX Select Symbols to $0.21 for the tier 3 and 4 volume thresholds. Specifically, the new per contract credits will be as set forth in the following table: ---------------------------------------------------------------------------------------------------------------- Per contract Per contract Percentage thresholds of national customer volume in multiply- credit (non- Per contract credit for listed options classes listed on MIAX (monthly) select credit in MIAX PRIME agency symbols) select symbols order ---------------------------------------------------------------------------------------------------------------- Tier 1--0.00%-0.50%............................................. $0.00 $0.00 $0.10 Tier 2--Above 0.50%-1.00%....................................... 0.10 0.10 0.10 Tier 3--Above 1.00%-1.75%....................................... 0.15 0.21 0.10 Tier 4--Above 1.75%............................................. 0.21 0.21 0.10 ---------------------------------------------------------------------------------------------------------------- The Exchange believes that the proposed new monthly credits should provide incentives for Members to direct greater Priority Customer trade volume to the Exchange. MIAX Select Symbols The proposed new monthly per contract credits will apply to MIAX Select Symbols,\11\ with the per contract credit increasing for certain monthly volume thresholds. The monthly per contract rebate will increase to $0.21 for all contracts executed in Select Symbols in tiers 3 and 4. --------------------------------------------------------------------------- \11\ 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. --------------------------------------------------------------------------- MIAX Non-Select Symbols Proposed new monthly per contract credits will apply to non-Select Symbols with the per contract credit increasing for certain monthly volume thresholds. The monthly per contract credit will increase to $0.21 for all contracts executed in non-Select Symbols in tier 4. The Exchange also proposes to eliminate the current additional rebate of $0.03 per contract for non-Select Symbol contracts executed in excess of the Tier 4 monthly volume of 1.75% 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 $0.21, and contracts executed in non-Select Symbols in excess of 1.75% of national monthly customer volume will no longer receive a supplemental rebate of $0.03 per contract. The Exchange believes that this new, increased rebate which is calculated beginning with the first executed contract at the applicable threshold per contract credit with rebate payments made at $0.21 for each contract trade or [sic] that month obviates the need for the supplemental rebate. 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 and to compete with other options exchanges that have a similar rebate.\12\ 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 in order flow from such other market participants. --------------------------------------------------------------------------- \12\ See, e.g., Securities Exchange Act Release No. 75702 (August 14, 2015), 80 FR 50685 (August 20, 2015) (SR-PHLX-2015-68). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- [[Page 55161]] 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 equitable and not unfairly 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 increase in the per contract rate 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 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-2015-53 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-2015-53. 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-2015-53, and should be submitted on or before October 5, 2015. [[Page 55162]] 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. 2015-22977 Filed 9-11-15; 8:45 am] BILLING CODE 8011-01-P
![55158 Federal Register / Vol. 80, No. 177 / Monday, September 14, 2015 / Notices
Dated: September 10, 2015. dealer per year, for a total reporting Dated: September 8, 2015.
Glenn Ellmers, burden of 180 hours per OTC Robert W. Errett,
Policy Coordinator, Office of the Secretary. derivatives dealer annually. Thus the Deputy Secretary.
[FR Doc. 2015–23173 Filed 9–10–15; 4:15 pm] staff estimates that the total industry- [FR Doc. 2015–22976 Filed 9–11–15; 8:45 am]
BILLING CODE 7590–01–P wide reporting burden to comply with BILLING CODE 8011–01–P
the requirements of Rule 17a–12 is 900
hours per year (180 × 5). Further, the
SECURITIES AND EXCHANGE Commission estimates that the total SECURITIES AND EXCHANGE
COMMISSION internal compliance cost associated COMMISSION
[SEC File No. 270–442, OMB Control No. with this requirement is approximately
3235–0498] $255,000 per year.2 The average annual [Release No. 34–75856; File No. SR–MIAX–
reporting cost per broker-dealer for an 2015–53]
Proposed Collection; Comment independent public accountant to
Request Self-Regulatory Organizations; Miami
examine the financial statements is
International Securities Exchange LLC;
Upon Written Request, Copies Available approximately $46,300 per broker-
Notice of Filing and Immediate
From: Securities and Exchange dealer. Thus, the total industry-wide
Effectiveness of a Proposed Rule
Commission, Office of FOIA Services, annual reporting cost is approximately Change To Amend Its Fee Schedule
100 F Street NE., Washington, DC $231,500 ($46,300 × 5).
20549–2736. Written comments are invited on: (a) September 8, 2015.
Extension: Rule 17a–12/Form X–17A–5 Part Whether the proposed collection of Pursuant to the provisions of Section
IIB. information is necessary for the proper 19(b)(1) of the Securities Exchange Act
Notice is hereby given that pursuant performance of the functions of the of 1934 (‘‘Act’’),1 and Rule 19b–4
to the Paperwork Reduction Act of 1995 Commission, including whether the thereunder,2 notice is hereby given that
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the information shall have practical utility; on August 28, 2015, Miami International
Securities and Exchange Commission (b) the accuracy of the Commission’s Securities Exchange LLC (‘‘MIAX’’ or
(‘‘Commission’’) is soliciting comments estimate of the burden of the proposed ‘‘Exchange’’) filed with the Securities
on the existing collection of information collection of information; (c) ways to and Exchange Commission
provided for in Rule 17a–12 (17 CFR enhance the quality, utility, and clarity (‘‘Commission’’) a proposed rule change
240.17a–12) and Part IIB of Form X– of the information to be collected; and as described in Items I, II, and III below,
17A–5 (17 CFR 249.617) under the (d) ways to minimize the burden of the which Items have been prepared by the
Securities Exchange Act of 1934 (15 Exchange. The Commission is
collection of information on
U.S.C. 78a et seq.). The Commission publishing this notice to solicit
respondents, including through the use
plans to submit this existing collection comments on the proposed rule change
of information to the Office of of automated collection techniques or
from interested persons.
Management and Budget (‘‘OMB’’) for other forms of information technology.
extension and approval. Consideration will be given to I. Self-Regulatory Organization’s
Rule 17a–12 is the reporting rule comments and suggestions submitted in Statement of the Terms of Substance of
tailored specifically for over-the-counter writing within 60 days of this the Proposed Rule Change
(‘‘OTC’’) derivatives dealers registered publication. The Exchange is filing a proposal to
with the Commission, and Part IIB of An agency may not conduct or amend the MIAX Options Fee Schedule
Form X–17A–5, the Financial and sponsor, and a person is not required to (the ‘‘Fee Schedule’’).
Operational Combined Uniform Single respond to, a collection of information The text of the proposed rule change
(‘‘FOCUS’’) Report, is the basic under the PRA unless it displays a is available on the Exchange’s Web site
document for reporting the financial currently valid OMB control number. at http://www.miaxoptions.com/filter/
and operational condition of OTC wotitle/rule_filing, at MIAX’s principal
derivatives dealers. Rule 17a–12 Please direct your written comments
to: Pamela Dyson, Director/Chief office, and at the Commission’s Public
requires registered OTC derivatives Reference Room.
dealers to file Part IIB of the FOCUS Information Officer, Securities and
Report quarterly. Rule 17a–12 also Exchange Commission, c/o Remi Pavlik- II. Self-Regulatory Organization’s
requires that OTC derivatives dealers Simon, 100 F Street NE., Washington, Statement of the Purpose of, and
file audited financial statements DC 20549, or send an email to: PRA_ Statutory Basis for, the Proposed Rule
annually. Mailbox@sec.gov. Change
There are currently four registered
In its filing with the Commission, the
OTC derivatives dealers. The staff 2 Based on staff experience, an OTC derivatives
dealer likely would have a Compliance Manager Exchange included statements
expects that one additional firm will
gather the necessary information and prepare and concerning the purpose of and basis for
register as an OTC derivatives dealer file the quarterly reports and annual audit report the proposed rule change and discussed
within the next three years. The staff and supporting schedules. According to the
any comments it received on the
estimates that the average amount of Securities Industry and Financial Markets
Association Report on Management and proposed rule change. The text of these
time necessary to prepare and file the
Professional Earnings in the Securities Industry statements may be examined at the
quarterly reports required by the rule is dated October 2013, which provides base salary and places specified in Item IV below. The
eighty hours per OTC derivatives bonus information for middle-management and
tkelley on DSK3SPTVN1PROD with NOTICES
Exchange has prepared summaries, set
dealer 1 and that the average amount of professional positions within the securities
industry, the hourly cost of a compliance manager, forth in sections A, B, and C below, of
time to prepare and file the annual audit
which the Commission staff has modified to the most significant aspects of such
report is 100 hours per OTC derivatives account for an 1800-hour work year and multiplied statements.
by 5.35 to account for bonuses, firm size, employee
1 Based upon an average of 4 responses per year benefits, and overhead, is approximately $283/hour.
1 15 U.S.C. 78s(b)(1).
and an average of 20 hours spent preparing each $283/hour times 900 hours = $254,700, rounded to
response. $255,000. 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 177 / Monday, September 14, 2015 / Notices 55159
A. Self-Regulatory Organization’s contracts that are routed to one or more credits will be delivered to the Member
Statement of the Purpose of, and exchanges in connection with the Firm that submits the order to the
Statutory Basis for, the Proposed Rule Options Order Protection and Locked/ Exchange.
Change Crossed Market Plan referenced in The amount of the rebate is calculated
MIAX Rule 1400), provided the Member beginning with the first executed
1. Purpose
meets certain tiered percentage contract at the applicable threshold per
The Exchange proposes to amend its thresholds in a month as described in contract credit with rebate payments
Fee Schedule to increase the transaction the Priority Customer Rebate Program made at the highest achieved volume
fee rebate for Priority Customer 3 orders table.8 For each Priority Customer order tier for each contract traded in that
submitted by Members that meet certain transmitted by that Member and month. For example, under the current
percentage thresholds of national executed electronically on the Program, a Member that executes a
customer volume in multiply-listed Exchange, MIAX will continue to credit number of Priority Customer contracts
option classes listed on MIAX in the each member at the per contract rate for above 1.75% of the national customer
Priority Customer Rebate Program (the option classes that are not in MIAX volume in multiply-listed options
‘‘Program’’).4 Select Symbols (as defined below). For during a particular calendar month
each Priority Customer order currently receives a credit of $0.17 for
Priority Customer Rebate Program
transmitted by that Member and each Priority Customer contract (other
Currently, the Exchange credits each executed electronically on the Exchange than Select Symbols) executed during
Member the per contract amount in MIAX Select Symbols (as defined that month, even though there are lower
resulting from each Priority Customer below), MIAX will continue to credit incremental percentages for lower
order transmitted by that Member that is each Member at the separate per volume tiers leading up to the 1.75%
executed electronically on the Exchange contract rate for MIAX Select Symbols.9 volume threshold. In addition, all
in all multiply-listed option classes For each Priority Customer order contracts (other than Select Symbols)
(excluding Qualified Contingent Cross submitted into the PRIME Auction as a traded in a particular month in excess
Orders,5 mini-options,6 Priority PRIME Agency Order, MIAX will of 1.75% of the national volume receive
Customer-to-Priority Customer Orders, continue to credit each member at the a supplemental rebate of $0.03 per
PRIME Auction Or Cancel Responses, separate per contract rate for PRIME contract.
PRIME Contra-side Orders, PRIME Agency Orders.10 The volume The current Priority Customer Rebate
Orders for which both the Agency and thresholds are calculated based on the Program table designates the following
Contra-side Order are Priority customer volume over the course of the monthly volume tiers and
Customers,7 and executions related to month. Volume will be recorded for and corresponding per contract credits:
Per contract Per contract Per contract
Percentage thresholds of national customer volume in multiply-listed options classes credit credit in credit for
listed on MIAX (non-select MIAX select PRIME
(monthly) symbols) symbols agency order
Tier 1—0.00%–0.50% .................................................................................................................. $0.00 $0.00 $0.10
Tier 2—Above 0.50%–1.00% ...................................................................................................... 0.10 0.10 0.10
Tier 3—Above 1.00%–1.75%–1.75% [sic] .................................................................................. 0.15 0.20 0.10
Tier 4—Above 1.75% .................................................................................................................. 0.17 0.20 0.10
The $0.17 per contract credit per contract is applied to contracts stated above, all contracts (other than
described in Tier 4 is applied to each executed in excess of 1.75% of the Select Symbols) traded in a particular
contract traded in non-Select Symbols monthly national volume in non-Select month when the Tier 4 volume
in that month, beginning with the first Symbols. threshold of 1.75% of the national
contract executed in a particular month Proposal monthly customer volume is exceeded
if the Tier 4 volume threshold is receive a credit of $0.17 per contract for
The Exchange proposes to increase
achieved. In addition to the $0.17 qualifying Priority Customer
the per contract credit for transactions
rebate, a supplemental rebate of $0.03 transactions on MIAX. The Exchange
in non-Select Symbols for Tier 4. As
3 The term ‘‘Priority Customer’’ means a person 5 A Qualified Contingent Cross Order is against principal interest, and/or an Agency Order
or entity that (i) is not a broker or dealer in comprised of an originating order to buy or sell at against solicited interest. For a complete
securities, and (ii) does not place more than 390 least 1,000 contracts, or 10,000 mini-option description of PRIME and of PRIME order types and
orders in listed options per day on average during contracts, that is identified as being part of a responses, see Exchange Rule 515A.
a calendar month for its own beneficial accounts(s). qualified contingent trade, as that term is defined 8 See Fee Schedule Section (1)(a)(iii).
See Exchange Rule 100. in Interpretations and Policies .01 below, coupled 9 See Securities Exchange [sic] Release Nos.
4 See Securities Exchange Act Release Nos. 75631 with a contra-side order or orders totaling an equal 75631 (August 5 [sic], 2015), 80 FR 48382 (August
(August 5 [sic], 2015), 80 FR 48382 (August 6 [sic], number of contracts. A Qualified Contingent Cross 6 [sic], 2015) (SR–MIAX–2015–51); 74291 (February
2015) (SR–MIAX–2015–51); 74758 (April 17, 2015), Order is not valid during the opening rotation 18, 2015), 80 FR 9841 (February 24, 2015) (SR–
80 FR 22756 (April 23, 2015) (SR–MIAX–2015–27); process described in Rule 503. See Exchange Rule MIAX–2015–09); 74288 (February 18, 2015), 80 FR
74007 (January 9 [sic], 2015), 80 FR 1537 (January 516(j). 9837 (February 24, 2015) (SR–MIAX–2015–08);
12, 2015) (SR–MIAX–2014–69); 72799 (August 8, 6 A mini-option is a series of option contracts 71700 (March 12, 2014), 79 FR 15188 (March 18,
tkelley on DSK3SPTVN1PROD with NOTICES
2014), 79 FR 47698 (August 14, 2014) (SR–MIAX– with a 10 share deliverable on a stock, Exchange 2014) (SR–MIAX–2014–13); 72356 (June 10, 2014),
2014–40); 72355 (June 10, 2014), 79 FR 34368 (June Traded Fund share, Trust Issued Receipt, or other 79 FR 34384 (June 16, 2014) (SR–MIAX–2014–26);
16, 2014) (SR–MIAX–2014–25); 71698 (March 12, Equity Index-Linked Security. See Exchange Rule 72567 (July 8, 2014), 79 FR 40818 (July 14, 2014)
2014), 79 FR 15185 (March 18, 2014) (SR–MIAX– 404, Interpretations and Policies .08. (SR–MIAX–2014–34); 73328 (October 9, 2014), 79
2014–12); 71283 (January 10, 2014), 79 FR 2914 7 The MIAX Price Improvement Mechanism FR 62230 (October 16, 2014) (SR–MIAX–2014–50).
(January 16, 2014) (SR–MIAX–2013–63); 71009 (‘‘PRIME’’) is a process by which a Member may 10 See Securities Exchange [sic] Release No.
(December 6, 2013), 78 FR 75629 (December 12, electronically submit for execution (‘‘Auction’’) an 72943 (August 28, 2014), 79 FR 52785 (September
2013) (SR–MIAX–2013–56). order it represents as agent (‘‘Agency Order’’) 4, 2014) (SR–MIAX–2014–45).
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![55160 Federal Register / Vol. 80, No. 177 / Monday, September 14, 2015 / Notices
proposes to increase this per contract eliminate this additional $0.03 rebate Select Symbols in tiers 3 and 4. The
credit for Priority Customer transactions per contract. Exchange proposes to increase the per
in non-Select Symbols in Tier 4 to The Exchange also proposes to contract credit for transactions in MIAX
$0.21. Contracts executed in non-Select increase the per contract credit for Select Symbols to $0.21 for the tier 3
Symbols in excess of 1.75% of national transactions in MIAX Select Symbols for and 4 volume thresholds.
monthly customer volume currently tiers 3 and 4. Currently, the Exchange Specifically, the new per contract
receive a supplemental rebate of $0.03 credits $0.20 per contract for qualifying credits will be as set forth in the
per contract. The Exchange proposes to Priority Customer transactions in MIAX following table:
Per contract Per contract Per contract
Percentage thresholds of national customer volume in multiply-listed options classes credit credit in credit for
listed on MIAX (non-select MIAX select PRIME
(monthly) symbols) symbols agency order
Tier 1—0.00%–0.50% .................................................................................................................. $0.00 $0.00 $0.10
Tier 2—Above 0.50%–1.00% ...................................................................................................... 0.10 0.10 0.10
Tier 3—Above 1.00%–1.75% ...................................................................................................... 0.15 0.21 0.10
Tier 4—Above 1.75% .................................................................................................................. 0.21 0.21 0.10
The Exchange believes that the $0.03 per contract. The Exchange turn should make the MIAX
proposed new monthly credits should believes that this new, increased rebate marketplace an attractive venue where
provide incentives for Members to which is calculated beginning with the Market Makers will submit narrow
direct greater Priority Customer trade first executed contract at the applicable quotations with greater size, deepening
volume to the Exchange. threshold per contract credit with rebate and enhancing the quality of the MIAX
payments made at $0.21 for each marketplace. This should provide more
MIAX Select Symbols
contract trade or [sic] that month trading opportunities and tighter
The proposed new monthly per obviates the need for the supplemental spreads for other market participants
contract credits will apply to MIAX rebate. and result in a corresponding increase
Select Symbols,11 with the per contract All other aspects of the Program will in order flow from such other market
credit increasing for certain monthly remain unchanged. The Exchange is not participants.
volume thresholds. The monthly per proposing any change to the per The specific volume thresholds of the
contract rebate will increase to $0.21 for contract credit for PRIME Agency Program’s tiers are set based upon
all contracts executed in Select Symbols Orders. Consistent with the current Fee business determinations and an analysis
in tiers 3 and 4. Schedule, the Exchange will continue to of current volume levels. The volume
MIAX Non-Select Symbols aggregate the contracts resulting from thresholds are intended to incentivize
Priority Customer orders transmitted firms to increase the number of Priority
Proposed new monthly per contract and executed electronically on the
credits will apply to non-Select Symbols Customer orders they send to the
Exchange from affiliated Members for Exchange so that they can achieve the
with the per contract credit increasing purposes of the thresholds above,
for certain monthly volume thresholds. next threshold, and to encourage new
provided there is at least 75% common participants to send Priority Customer
The monthly per contract credit will ownership between the firms as
increase to $0.21 for all contracts orders as well. Increasing the number of
reflected on each firm’s Form BD, orders sent to the Exchange will in turn
executed in non-Select Symbols in tier Schedule A. In the event of a MIAX
4. The Exchange also proposes to provide tighter and more liquid markets,
System outage or other interruption of and therefore attract more business
eliminate the current additional rebate electronic trading on MIAX, the
of $0.03 per contract for non-Select overall. Similarly, the different credit
Exchange will adjust the national rates at the different tier levels are based
Symbol contracts executed in excess of customer volume in multiply-listed
the Tier 4 monthly volume of 1.75% of on an analysis of current revenue and
options for the duration of the outage. volume levels and are intended to
the national customer volume. Under A Member may request to receive its
the proposal, all contracts (other than provide increasing ‘‘rewards’’ to MIAX
credit under the Priority Customer participants for increasing the volume of
Select Symbols) traded in a particular Rebate Program as a separate direct
month when the Tier 4 volume Priority Customer orders sent to, and
payment. Priority Customer contracts executed
threshold of 1.75% of the national The purpose of the proposed rule
monthly customer volume is exceeded on, the Exchange. The specific amounts
change is to encourage Members to of the tiers and rates are set in order to
will receive a credit of $0.21, and direct greater Priority Customer trade
contracts executed in non-Select encourage suppliers of Priority
volume to the Exchange and to compete Customer order flow to reach for higher
Symbols in excess of 1.75% of national with other options exchanges that have
monthly customer volume will no tiers.
a similar rebate.12 The Exchange The credits paid out as part of the
longer receive a supplemental rebate of believes that increased Priority program will be drawn from the general
11 The term ‘‘MIAX Select Symbols’’ means
Customer volume will attract more revenues of the Exchange.13 The
liquidity to the Exchange, which
options overlying AA, AAL, AAPL, AIG, AMAT, Exchange calculates volume thresholds
AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT, benefits all market participants.
tkelley on DSK3SPTVN1PROD with NOTICES
on a monthly basis.
CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, Increased retail customer order flow
GE, GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, should attract professional liquidity
INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, 13 Despite providing credits under the Program,
NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, providers (Market Makers), which in the Exchange represents that it will continue to
QQQ, RIG, S, SPY, SUNE, T, TSLA, USO, VALE, have adequate resources to fund its regulatory
VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF, 12 See, e.g., Securities Exchange Act Release No. program and fulfill its responsibilities as a self-
XLP, XOM, XOP and YHOO. See Fee Schedule, 75702 (August 14, 2015), 80 FR 50685 (August 20, regulatory organization while the Program is in
note 13. 2015) (SR–PHLX–2015–68). effect.
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![55162 Federal Register / Vol. 80, No. 177 / Monday, September 14, 2015 / Notices
For the Commission, by the Division of Reduction Act of 1995, we are • Evaluate whether the proposed
Trading and Markets, pursuant to delegated requesting comments on this collection information collection is necessary for
authority.17 from all interested individuals and the proper functions of the Department.
Robert W. Errett, organizations. The purpose of this • Evaluate the accuracy of our
Deputy Secretary. notice is to allow 60 days for public estimate of the time and cost burden for
[FR Doc. 2015–22977 Filed 9–11–15; 8:45 am] comment preceding submission of the this proposed collection, including the
BILLING CODE 8011–01–P collection to OMB. validity of the methodology and
DATES: The Department will accept assumptions used.
comments from the public up to • Enhance the quality, utility, and
SMALL BUSINESS ADMINISTRATION November 13, 2015. clarity of the requests for information to
ADDRESSES: You may submit comments be collected.
Regulatory Fairness Hearing; Region by any of the following methods: • Minimize the reporting burden on
IX—Springerville, Arizona; • Web: Persons with access to the those who are to respond, including the
Cancellation Internet may comment on this notice by use of automated collection techniques
going to www.Regulations.gov. You can or other forms of information
AGENCY: U.S. Small Business
search for the document by entering technology.
Administration (SBA).
Docket Number: DOS–2015–0035 in the Please note that comments submitted
ACTION: Notice of open hearing of in response to this Notice are public
Region IX Small Business Owners and search field. Then click the ‘‘Comment
Now’’ button and complete the record. Before including any detailed
Business Leaders in Springerville, personal information, you should be
Arizona, cancellation. comment form.
• Email: mailto:Shawkm@state.gov. aware that your comments as submitted,
Federal Register Citation of Previous • Regular Mail: Send written including your personal information,
Announcement: 80 FR 49296, August comments to: U.S. Department of State, will be available for public review.
17, 2015. CA/OCS/PMO, SA–17, 10th Floor, Abstract of proposed collection: The
Previously Announced Time and Date Washington, DC 20036. Application Under the Hague
of The Meeting: Wednesday, September • Fax: 202–736–9111. Convention on the Civil Aspects of
9, 2015, 8:30 a.m.–5:00 p.m. (MST). • Hand Delivery or Courier: U.S. International Child Abduction (DS–3013
Changes in the Meeting: Hearing Department of State, CA/OCS/PMO, 600 and DS 3013–s) is used by parents or
Canceled: Due to budgetary constraints 19th St. NW., 10th Floor, Washington, legal guardians who are requesting the
and logistical issues, the hearing on DC 20036. State Department’s assistance in seeking
Wednesday, September 9, 2015, in You must include the DS form the return of, or access to, a child or
Springerville, AZ from 8:30 a.m. to 5:00 number (if applicable), information children alleged to have been
p.m. (MST) must be postponed to a later collection title, and the OMB control wrongfully removed from or retained
date. number in any correspondence. outside of the child’s habitual residence
Contact Person for More Information: and currently located in another country
FOR FURTHER INFORMATION CONTACT:
José Méndez, Case Management that is also party to the Hague
Direct requests for additional Convention on the Civil Aspects of
Specialist, Office of the National information regarding the collection
Ombudsman, 409 3rd Street SW., Suite International Child Abduction (the
listed in this notice, including requests Convention). The application requests
7125, Washington, DC 20416, by fax for copies of the proposed collection
(202) 481–5719, by email at information regarding the identities of
instrument and supporting documents, the applicant, the child or children, and
ombudsman-events@sba.gov, by phone to Kaye Shaw, Bureau of Consular
(202) 205–6178. the person alleged to have wrongfully
Affairs, Overseas Citizens Services (CA/ removed or retained the child or
Dated: September 3, 2015. OCS/PMO), U.S. Department of State, children. In addition, the application
Miguel J. L’Heureux, SA–17, 10th Floor, Washington, DC requires that the applicant provide the
SBA Committee Management Officer. 20036 or at mailto:shawkm@state.gov. circumstances of the alleged wrongful
[FR Doc. 2015–22981 Filed 9–11–15; 8:45 am] SUPPLEMENTARY INFORMATION: removal or retention and the legal
BILLING CODE P • Title of Information Collection: justification for the request for return or
Application Under the Hague access. The State Department, as the
Convention on the Civil Aspects of U.S. Central Authority for the
DEPARTMENT OF STATE International Child Abduction. Convention, uses this information to
• OMB Control Number: 1405–0076. establish, if possible, the applicants’
[Public Notice 9267] • Type of Request: Extension. claims under the Convention; to inform
• Originating Office: CA/OCS/L. applicants about available remedies
60-Day Notice of Proposed Information • Form Number: DS–3013, 3013–s. under the Convention; and to provide
Collection: Application Under the • Respondents: Person seeking return the information necessary to the foreign
Hague Convention on the Civil Aspects of or access to child. Central Authority in its efforts to locate
of International Child Abduction • Estimated Number of Respondents: the child or children, and to facilitate
Notice of request for public
ACTION:
565. return of or access to the child or
comment. • Estimated Number of Responses: children pursuant to the Convention. 42
565. U.S.C. 11608 is the legal authority that
• Average Time per Response: 1 hour.
tkelley on DSK3SPTVN1PROD with NOTICES
SUMMARY: The Department of State is permits the Department to gather this
seeking Office of Management and • Total Estimated Burden Time: 565 information.
Budget (OMB) approval for the hours. Methodology: The completed form
information collection described below. • Frequency: On Occasion. DS–3013 and DS 3013–s may be
In accordance with the Paperwork • Obligation to Respond: Voluntary. submitted to the Office of Children’s
We are soliciting public comments to Issues by mail, by fax, or electronically
17 17 CFR 200.30–3(a)(12). permit the Department to: accessed through www.travel.state.gov.
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Document Created: 2018-02-26 10:15:10
Document Modified: 2018-02-26 10:15:10
| 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 55158 |
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