80 FR 61866 - 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 198 (October 14, 2015)
Federal Register Volume 80, Issue 198 (October 14, 2015)
| Page Range | 61866-61869 | |
| FR Document | 2015-26027 |
[Federal Register Volume 80, Number 198 (Wednesday, October 14, 2015)] [Notices] [Pages 61866-61869] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-26027] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76098; File No. SR-MIAX-2015-58] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Its Fee Schedule October 7, 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 September 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. 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 change the transaction [[Page 61867]] fee rebates 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. 75856 (September 8, 2015), 80 FR 55158 (September 14, 2015)(SR-MIAX 2015-53); 75631 (August 5, 2015), 80 FR 48382 (August 6, 2015) (SR-MIAX-2015-51); 74758 (April 17, 2015), 80 FR 22756 (April 23, 2015)(SR-MIAX-2015- 27); 74007 (January 9, 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 Release Nos. 75856 (September 8, 2015), 80 FR 55158 (September 14, 2015)(SR-MIAX 2015-53); 75631 (August 5, 2015), 80 FR 48382 (August 6, 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 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 $0.21 for each Priority Customer contract in both non-Select Symbols and 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. 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%........................................ $0.15 $0.21 $0.10 Tier 4 Above 1.75%.............................................. $0.21 $0.21 $0.10 ---------------------------------------------------------------------------------------------------------------- The $0.21 per contract credit described in Tier 4 is applied to each contract traded in both non-Select Symbols and Select Symbols in that month, beginning with the first contract executed in a particular month if the Tier 4 volume threshold is achieved. Proposal The Exchange proposes to decrease the per contract credit for transactions in MIAX Select Symbols for tier 3. Currently, the Exchange credits $0.21 per contract for qualifying Priority Customer transactions in MIAX Select Symbols in tier 3. The Exchange proposes to decrease the per contract credit for transactions in MIAX Select Symbols to $0.20 for the tier 3 volume threshold. The Exchange also proposes to increase the per contract credit for transactions in MIAX Select Symbols for tier 4. Currently, the Exchange credits $0.21 per contract for qualifying Priority Customer transactions in MIAX Select Symbols in tier 4. The Exchange proposes to increase the per contract credit for transactions in MIAX Select Symbols to $0.24 for the tier 4 volume threshold. Specifically, the new per contract credits will be as set forth in the following table: [[Page 61868]] ---------------------------------------------------------------------------------------------------------------- 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 $0.20 $0.10 Tier 4 Above 1.75%.............................................. $0.21 $0.24 $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 in Select Symbols at the highest volume threshold. 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 decrease to $0.20 for all contracts executed in Select Symbols in tier 3 in order to incentivize Members to trade such number of contracts per month in Select Symbols which will earn them the proposed higher rebate in tier 4. Accordingly, the monthly per contract rebate will increase to $0.24 for all contracts executed in Select Symbols in tier 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. --------------------------------------------------------------------------- All other aspects of the Program will remain unchanged. The Exchange is not proposing any change to the per contract credit for non-Select Symbols or 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 in Select Symbols at the highest volume threshold and to compete with other options exchanges that have similar rebates.\12\ The Exchange believes that increased Priority Customer volume in Select Symbols at the highest volume threshold 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. --------------------------------------------------------------------------- The Exchange proposes to implement the proposed changes to the Fee Schedule effective as of October 1, 2015. 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act \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. --------------------------------------------------------------------------- \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 decrease in the per contract rebate for all contracts executed in Select Symbols in tier 3 is reasonably designed because it will encourage Members to send increased volume of Priority Customer order flow in Select Symbols in order to reach the highest volume threshold, thereby receiving the greater per contract credit. The proposed increase in the per contract rebate for all contracts executed in Select Symbols in tier 4 is reasonably designed because it will reward those providers of higher volume Priority Customer order flow in Select Symbols to the Exchange with the greater per contract credit for achieving volume tier 4. The Exchange believes that the proposed changes in the per contract rate for Select Symbols 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 in Select Symbols. 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 changes in [[Page 61869]] credits for all contracts executed in Select Symbols in tiers 3 and 4 are equitable and not unfairly discriminatory because the proposed rates and changes encourage Members to direct increased amounts of Priority Customer contracts in Select Symbols to the Exchange in order to achieve the highest volume threshold thereby receiving the largest per contract credit. 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 result in any burden on competition that is 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 in Select Symbols 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 encourages market participants to direct an increased volume of customer order flow, to provide liquidity, and as a result 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 a higher volume of 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\ and Rule 19b-4(f)(2) \17\ thereunder. 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). \17\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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-2015-58 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-2015-58. 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 the 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-2015-58 and should be submitted on or before November 4, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-26027 Filed 10-13-15; 8:45 am] BILLING CODE 8011-01-P
![61866 Federal Register / Vol. 80, No. 198 / Wednesday, October 14, 2015 / Notices
III. Date of Effectiveness of the Comments may be submitted by any of SECURITIES AND EXCHANGE
Proposed Rule Change and Timing for the following methods: COMMISSION
Commission Action
Electronic Comments [Release No. 34–76098; File No. SR–MIAX–
Because the proposed rule change 2015–58]
does not (i) significantly affect the • Use the Commission’s Internet
protection of investors or the public comment form (http://www.sec.gov/ Self-Regulatory Organizations; Miami
interest; (ii) impose any significant rules/sro.shtml); or International Securities Exchange LLC;
burden on competition; and (iii) become • Send an email to rule-comments@ Notice of Filing and Immediate
operative for 30 days from the date on sec.gov. Please include File Number SR– Effectiveness of a Proposed Rule
which it was filed, or such shorter time NYSEArca–2015–90 on the subject line. Change to Amend Its Fee Schedule
as the Commission may designate if
Paper Comments October 7, 2015.
consistent with the protection of
investors and the public interest, the Pursuant to the provisions of Section
proposed rule change has become • Send paper comments in triplicate 19(b)(1) of the Securities Exchange Act
effective pursuant to Section 19(b)(3)(A) to Brent J. Fields, Secretary, Securities of 1934 (‘‘Act’’) 1 and Rule 19b–4
of the Act 10 and Rule 19b–4(f)(6) and Exchange Commission, 100 F Street thereunder,2 notice is hereby given that
thereunder.11 NE., Washington, DC 20549–1090. on September 28, 2015, Miami
The Exchange has asked the International Securities Exchange LLC
All submissions should refer to File
Commission to waive the 30-day (‘‘MIAX’’ or ‘‘Exchange’’) filed with the
Number SR–NYSEArca–2015–90. This
operative delay so that the proposal may Securities and Exchange Commission
file number should be included on the
become operative immediately upon (‘‘Commission’’) a proposed rule change
subject line if email is used. To help the as described in Items I, II, and III below,
filing. The Exchange stated that waiver Commission process and review your
of the operative delay will permit the which Items have been prepared by the
comments more efficiently, please use Exchange. The Commission is
Exchange to correct outmoded only one method. The Commission will
references without delay, thereby publishing this notice to solicit
post all comments on the Commission’s comments on the proposed rule change
promoting clarity in the Exchange rules Internet Web site (http://www.sec.gov/
and reducing potential investor from interested persons.
rules/sro.shtml). Copies of the
confusion. The Commission believes submission, all subsequent I. Self-Regulatory Organization’s
that waiving the 30-day operative delay amendments, all written statements Statement of the Terms of Substance of
is consistent with the protection of with respect to the proposed rule the Proposed Rule Change
investors and the public interest. change that are filed with the The Exchange is filing a proposal to
Therefore, the Commission hereby Commission, and all written amend the MIAX Options Fee Schedule
waives the operative delay and communications relating to the (the ‘‘Fee Schedule’’). The text of the
designates the proposed rule change proposed rule change between the proposed rule change is available on the
operative upon filing.12 Commission and any person, other than Exchange’s Web site at http://
At any time within 60 days of the those that may be withheld from the www.miaxoptions.com/filter/wotitle/
filing of the proposed rule change, the public in accordance with the rule_filing, at MIAX’s principal office,
Commission summarily may provisions of 5 U.S.C. 552, will be and at the Commission’s Public
temporarily suspend such rule change if available for Web site viewing and Reference Room.
it appears to the Commission that such printing in the Commission’s Public
action is necessary or appropriate in the II. Self-Regulatory Organization’s
Reference Room, 100 F Street NE.,
public interest, for the protection of Statement of the Purpose of, and
Washington, DC 20549 on official
investors, or otherwise in furtherance of Statutory Basis for, the Proposed Rule
business days between the hours of
the purposes of the Act. If the Change
10:00 a.m. and 3:00 p.m. Copies of such
Commission takes such action, the filing also will be available for In its filing with the Commission, the
Commission shall institute proceedings Exchange included statements
inspection and copying at the principal
to determine whether the proposed rule concerning the purpose of and basis for
office of the Exchange. All comments
should be approved or disapproved. the proposed rule change and discussed
received will be posted without change;
IV. Solicitation of Comments the Commission does not edit personal any comments it received on the
identifying information from proposed rule change. The text of these
Interested persons are invited to statements may be examined at the
submissions. You should submit only
submit written data, views, and places specified in Item IV below. The
arguments concerning the foregoing, information that you wish to make
available publicly. All submissions Exchange has prepared summaries, set
including whether the proposed rule forth in sections A, B, and C below, of
change is consistent with the Act. should refer to File Number SR–
NYSEArca–2015–90, and should be the most significant aspects of such
submitted on or before November 4, statements.
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6). As required under Rule
2015. A. Self-Regulatory Organization’s
19b–4(f)(6)(iii), the Exchange provided the For the Commission, by the Division of Statement of the Purpose of, and
Commission with written notice of its intent to file Statutory Basis for, the Proposed Rule
Trading and Markets, pursuant to delegated
the proposed rule change, along with a brief
description and the text of the proposed rule authority.13 Change
tkelley on DSK3SPTVN1PROD with NOTICES
change, at least five business days prior to the date Robert W. Errett,
of filing of the proposed rule change, or such
1. Purpose
shorter time as designated by the Commission. Deputy Secretary.
The Exchange proposes to amend its
12 For purposes only of waiving the 30-day [FR Doc. 2015–26035 Filed 10–13–15; 8:45 am]
Fee Schedule to change the transaction
operative delay, the Commission has also BILLING CODE 8011–01–P
considered the proposed rule’s impact on
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 198 / Wednesday, October 14, 2015 / Notices 61869
credits for all contracts executed in volume to the Exchange. Given the All submissions should refer to File
Select Symbols in tiers 3 and 4 are robust competition for volume among Number SR–MIAX–2015–58. This file
equitable and not unfairly options markets, many of which offer number should be included on the
discriminatory because the proposed the same products, enhancing the subject line if email is used. To help the
rates and changes encourage Members existing volume based customer rebate Commission process and review your
to direct increased amounts of Priority program to attract a higher volume of comments more efficiently, please use
Customer contracts in Select Symbols to order flow is consistent with the goals only one method. The Commission will
the Exchange in order to achieve the of the Act. The Exchange believes that post all comments on the Commission’s
highest volume threshold thereby the proposal will enhance competition, Internet Web site (http://www.sec.gov/
receiving the largest per contract credit. because market participants will have rules/sro.shtml). Copies of the
Market participants want to trade with another additional pricing consideration submission, all subsequent
Priority Customer order flow. To the in determining where to execute orders amendments, all written statements
extent Priority Customer order flow is and post liquidity if they factor the with respect to the proposed rule
increased by the proposal, market benefits of the proposed rebate program change that are filed with the
participants will increasingly compete into the determination. Commission, and all written
for the opportunity to trade on the communications relating to the
Exchange including sending more C. Self-Regulatory Organization’s
proposed rule change between the
orders and providing narrower and Statement on Comments on the
Commission and any person, other than
larger sized quotations in the effort to Proposed Rule Change Received From
those that may be withheld from the
trade with such Priority Customer order Members, Participants, or Others
public in accordance with the
flow. The resulting increased volume Written comments were neither provisions of 5 U.S.C. 552, will be
and liquidity will benefit all Exchange solicited nor received. available for Web site viewing and
participants by providing more trading printing in the Commission’s Public
opportunities and tighter spreads. III. Date of Effectiveness of the
Proposed Rule Change and Timing for Reference Room, 100 F Street NE.,
B. Self-Regulatory Organization’s Commission Action Washington, DC 20549, on official
Statement on Burden on Competition business days between the hours of
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
The Exchange does not believe that effective pursuant to Section filing also will be available for
the proposed rule change will result in 19(b)(3)(A)(ii) of the Act,16 and Rule inspection and copying at the principal
any burden on competition that is not 19b–4(f)(2) 17 thereunder. At any time office of the Exchange. All comments
necessary or appropriate in furtherance within 60 days of the filing of the received will be posted without change;
of the purposes of the Act. The proposed rule change, the Commission the Commission does not edit personal
Exchange believes that the proposed summarily may temporarily suspend identifying information from
change would increase both intermarket such rule change if it appears to the submissions. You should submit only
and intramarket competition by Commission that such action is information that you wish to make
encouraging Members to direct their necessary or appropriate in the public available publicly. All submissions
Priority Customer orders in Select interest, for the protection of investors, should refer to File Number SR–MIAX–
Symbols to the Exchange, which should or otherwise in furtherance of the 2015–58 and should be submitted on or
enhance the quality of quoting and purposes of the Act. If the Commission
increase the volume of contracts traded before November 4, 2015.
takes such action, the Commission shall
on MIAX. Respecting the competitive For the Commission, by the Division of
institute proceedings to determine
position of non-Priority Customers, the Trading and Markets, pursuant to delegated
whether the proposed rule should be authority.18
Exchange believes that this rebate approved or disapproved.
program should provide additional Robert W. Errett,
liquidity that enhances the quality of its IV. Solicitation of Comments Deputy Secretary.
markets and increases the number of Interested persons are invited to [FR Doc. 2015–26027 Filed 10–13–15; 8:45 am]
trading opportunities on MIAX for all submit written data, views, and BILLING CODE 8011–01–P
participants, including non-Priority arguments concerning the foregoing,
Customers, who will be able to compete including whether the proposed rule
for such opportunities. This should change is consistent with the Act. SECURITIES AND EXCHANGE
benefit all market participants and Comments may be submitted by any of COMMISSION
improve competition on the Exchange. the following methods: [Investment Company Act Release No.
The Exchange notes that it operates in IC–31864; File No. 812–14479]
a highly competitive market in which Electronic Comments
market participants can readily favor • Use the Commission’s Internet ARK ETF Trust, et al.; Notice of
competing venues if they deem fee comment form (http://www.sec.gov/ Application
levels at a particular venue to be rules/sro.shtml); or
excessive. In such an environment, the • Send an email to rule-comments@ October 7, 2015.
Exchange must continually adjust its sec.gov. Please include File Number SR– AGENCY: Securities and Exchange
fees and rebates to remain competitive MIAX–2015–58 on the subject line. Commission (‘‘Commission’’).
with other exchanges and to attract ACTION: Notice of an application for an
order flow to the Exchange. The Paper Comments order under section 6(c) of the
tkelley on DSK3SPTVN1PROD with NOTICES
Exchange believes that the proposed • Send paper comments in triplicate Investment Company Act of 1940 (the
rule change reflects this competitive to Brent J. Fields, Secretary, Securities ‘‘Act’’) for an exemption from sections
environment because it encourages and Exchange Commission, 100 F Street 2(a)(32), 5(a)(1), 22(d), and 22(e) of the
market participants to direct an NE., Washington, DC 20549–1090. Act and rule 22c–1 under the Act, under
increased volume of customer order sections 6(c) and 17(b) of the Act for an
flow, to provide liquidity, and as a 16 15 U.S.C. 78s(b)(3)(A)(ii).
result to attract additional transaction 17 17 CFR 240.19b–4(f)(2). 18 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 16:39 Oct 13, 2015 Jkt 238001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\14OCN1.SGM 14OCN1](https://thefederalregister.org/doc/80_FR_62064/page/4.svg)
Document Created: 2018-02-27 08:50:12
Document Modified: 2018-02-27 08:50:12
| 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 61866 |
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