80 FR 70856 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX Rule 521
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 220 (November 16, 2015)
Federal Register Volume 80, Issue 220 (November 16, 2015)
| Page Range | 70856-70857 | |
| FR Document | 2015-28861 |
[Federal Register Volume 80, Number 220 (Monday, November 16, 2015)] [Notices] [Pages 70856-70857] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28861] [[Page 70856]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76392; File No. SR-MIAX-2015-62] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX Rule 521 November 9, 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 November 4, 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 Rule 521, Nullification and Adjustment of Options Transactions Including Obvious Errors, to modify the amount to be charged to Members that appeal an Official ruling when the ruling is sustained and not overturned or modified, and to pass through other market center charges associated with obvious error determinations. 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 On May 7, 2015 the Exchange filed a proposed rule change to replace Exchange Rule 521 entitled ``Obvious and Catastrophic Errors'' with new Exchange Rule 521 entitled ``Nullification and Adjustment of Options Transactions Including Obvious Errors.'' Rule 521 became operative on May 8, 2015.\3\ Rule 521 was amended in conjunction with amendments made by all U.S. options exchanges in order to harmonize their respective rules related to the adjustment and nullification of erroneous options transactions. The Exchange believes that Rule 521, together with comparable harmonized rules of the other U.S. options exchanges,\4\ provides transparency and finality with respect to the adjustment and nullification of erroneous options transactions, achieving consistent results for participants across the options exchanges while maintaining a fair and orderly market, protecting investors and protecting the public interest. --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 74918 (May 8, 2015), 80 FR 27781 (May 14, 2015) (SR-MIAX-2015-35). \4\ See, e.g., NASDAQ OMX PHLX LLC (``PHLX'') Rule 1092(l) and BATS Exchange, Inc. (``BATS'') Rule 20.6. See also, e.g., Securities Exchange Act Release Nos. 74556 (March 20, 2015), 80 FR 16031 (March 26, 2015) (SR-BATS-2014-067), and 75488 (July 20, 2015), 80 FR 44164 (July 24, 2015) (SR-Phlx-2015-65). --------------------------------------------------------------------------- The purpose of the proposed rule change is to further harmonize Rule 521 with the rules of other exchanges by modifying the amount to be charged to Members that appeal an Official ruling under Rule 521 if such ruling is sustained and not overturned or modified, and to permit the Exchange to pass along charges assessed by another market center in connection with Obvious Error and Catastrophic Error determination requests presented to that market center by the Exchange on a Member's behalf. The Exchange proposes to amend Section (l)(2) of the Rule to charge $500.00 to MIAX Members that appeal an Official ruling when such ruling is sustained and not overturned or modified, and to add new language to permit the Exchange to pass along charges assessed by another market center in connection with Obvious Error and Catastrophic Error determination requests presented to that market center by the Exchange on a Member's behalf. Currently, the Exchange charges Members $250.00 in this circumstance. The Exchange proposes to increase this charge from $250.00 to $500.00. 2. Statutory Basis The Exchange believes that its proposal to amend Rule 521 is consistent with Section 6(b) of the Act \5\ in general, and furthers the objectives of Section 6(b)(4) of the Act \6\ in particular, in that it provides for an equitable allocation of reasonable fees and other charges among Exchange members. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The $500.00 charge and the provision to pass through charges from other market centers proposed herein is just and equitable and not unfairly discriminatory because it would apply equally to all MIAX Members seeking review on appeal of Official rulings pursuant to Rule 521(l), and will not be assessed if the ruling giving rise to the appeal is modified or reversed. The $500.00 charge is consistent with the amount charged by other U.S. options exchanges for unsuccessful appeals under their obvious error rules.\7\ --------------------------------------------------------------------------- \7\ See supra note 4. --------------------------------------------------------------------------- The provision to pass through charges from other market centers proposed herein is just and equitable and not unfairly discriminatory because it would apply equally to all MIAX Members requesting Obvious Error or Catastrophic Error determinations from other market centers through the Exchange. The pass through charge is also consistent with pass through charges charged by other U.S. options exchanges under their obvious error rules.\8\ The Exchange believes that it will prevent fraudulent and manipulative practices, promote just and equitable principles of trade, and remove impediments to and perfect the mechanisms of a free and open market and a national market system by discouraging frivolous appeals of Official rulings made under Rule 521. Further, it will allow the Exchange to recoup its administrative costs associated with Rule 521 appeals, and provide additional resources to the Exchange to administer its regulatory functions, including appeals of Official rulings under Rule 521(l). --------------------------------------------------------------------------- \8\ See supra note 4. --------------------------------------------------------------------------- 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 does not believe that the proposal will have any impact on [[Page 70857]] competition in that the $500.00 charge and the provision of pass through charges from other market centers proposed herein will apply equally to all MIAX Members submitting appeals pursuant to Rule 521(l). 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,\9\ and Rule 19b-4(f)(2) \10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A)(ii). \10\ 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 rule-comments@sec.gov. Please include File Number SR-MIAX-2015-62 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-2015-62. 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-2015-62, and should be submitted on or before December 7, 2015. --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-28861 Filed 11-13-15; 8:45 am] BILLING CODE 8011-01-P
![70856 Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s The Exchange proposes to increase this
COMMISSION Statement of the Purpose of, and charge from $250.00 to $500.00.
Statutory Basis for, the Proposed Rule
2. Statutory Basis
[Release No. 34–76392; File No. SR–MIAX– Change
2015–62]
The Exchange believes that its
1. Purpose proposal to amend Rule 521 is
Self-Regulatory Organizations; Miami On May 7, 2015 the Exchange filed a consistent with Section 6(b) of the Act 5
International Securities Exchange LLC; proposed rule change to replace in general, and furthers the objectives of
Notice of Filing and Immediate Exchange Rule 521 entitled ‘‘Obvious Section 6(b)(4) of the Act 6 in particular,
Effectiveness of a Proposed Rule and Catastrophic Errors’’ with new in that it provides for an equitable
Change To Amend MIAX Rule 521 Exchange Rule 521 entitled allocation of reasonable fees and other
‘‘Nullification and Adjustment of charges among Exchange members.
November 9, 2015. Options Transactions Including Obvious The $500.00 charge and the provision
Pursuant to the provisions of Section Errors.’’ Rule 521 became operative on to pass through charges from other
19(b)(1) of the Securities Exchange Act May 8, 2015.3 Rule 521 was amended in market centers proposed herein is just
of 1934 (‘‘Act’’),1 and Rule 19b–4 conjunction with amendments made by and equitable and not unfairly
thereunder,2 notice is hereby given that all U.S. options exchanges in order to discriminatory because it would apply
on November 4, 2015, Miami harmonize their respective rules related equally to all MIAX Members seeking
International Securities Exchange LLC to the adjustment and nullification of review on appeal of Official rulings
(‘‘MIAX’’ or ‘‘Exchange’’) filed with the erroneous options transactions. The pursuant to Rule 521(l), and will not be
Securities and Exchange Commission Exchange believes that Rule 521, assessed if the ruling giving rise to the
(‘‘Commission’’) a proposed rule change together with comparable harmonized appeal is modified or reversed. The
as described in Items I, II, and III below, rules of the other U.S. options $500.00 charge is consistent with the
which Items have been prepared by the exchanges,4 provides transparency and amount charged by other U.S. options
Exchange. The Commission is finality with respect to the adjustment exchanges for unsuccessful appeals
publishing this notice to solicit and nullification of erroneous options under their obvious error rules.7
comments on the proposed rule change transactions, achieving consistent The provision to pass through charges
from interested persons. results for participants across the from other market centers proposed
options exchanges while maintaining a herein is just and equitable and not
I. Self-Regulatory Organization’s fair and orderly market, protecting unfairly discriminatory because it
Statement of the Terms of Substance of investors and protecting the public would apply equally to all MIAX
the Proposed Rule Change interest. Members requesting Obvious Error or
The purpose of the proposed rule Catastrophic Error determinations from
The Exchange is filing a proposal to
change is to further harmonize Rule 521 other market centers through the
amend Rule 521, Nullification and with the rules of other exchanges by
Adjustment of Options Transactions Exchange. The pass through charge is
modifying the amount to be charged to also consistent with pass through
Including Obvious Errors, to modify the Members that appeal an Official ruling
amount to be charged to Members that charges charged by other U.S. options
under Rule 521 if such ruling is exchanges under their obvious error
appeal an Official ruling when the sustained and not overturned or
ruling is sustained and not overturned rules.8 The Exchange believes that it
modified, and to permit the Exchange to will prevent fraudulent and
or modified, and to pass through other pass along charges assessed by another
market center charges associated with manipulative practices, promote just
market center in connection with and equitable principles of trade, and
obvious error determinations. Obvious Error and Catastrophic Error
The text of the proposed rule change remove impediments to and perfect the
determination requests presented to that mechanisms of a free and open market
is available on the Exchange’s Web site market center by the Exchange on a
at http://www.miaxoptions.com/filter/ and a national market system by
Member’s behalf. discouraging frivolous appeals of
wotitle/rule_filing, at MIAX’s principal The Exchange proposes to amend
office, and at the Commission’s Public Official rulings made under Rule 521.
Section (l)(2) of the Rule to charge
Reference Room. Further, it will allow the Exchange to
$500.00 to MIAX Members that appeal
recoup its administrative costs
II. Self-Regulatory Organization’s an Official ruling when such ruling is
associated with Rule 521 appeals, and
Statement of the Purpose of, and sustained and not overturned or
provide additional resources to the
modified, and to add new language to
Statutory Basis for, the Proposed Rule Exchange to administer its regulatory
permit the Exchange to pass along
Change functions, including appeals of Official
charges assessed by another market
center in connection with Obvious Error rulings under Rule 521(l).
In its filing with the Commission, the
Exchange included statements and Catastrophic Error determination B. Self-Regulatory Organization’s
concerning the purpose of and basis for requests presented to that market center Statement on Burden on Competition
the proposed rule change and discussed by the Exchange on a Member’s behalf. The Exchange does not believe that
any comments it received on the Currently, the Exchange charges the proposed rule change will result in
proposed rule change. The text of these Members $250.00 in this circumstance. any burden on competition that is not
statements may be examined at the necessary or appropriate in furtherance
3 See Securities Exchange Act Release No. 74918
places specified in Item IV below. The of the purposes of the Act. The
(May 8, 2015), 80 FR 27781 (May 14, 2015) (SR–
tkelley on DSK3SPTVN1PROD with NOTICES
Exchange has prepared summaries, set MIAX–2015–35). Exchange does not believe that the
forth in sections A, B, and C below, of 4 See, e.g., NASDAQ OMX PHLX LLC (‘‘PHLX’’)
proposal will have any impact on
the most significant aspects of such Rule 1092(l) and BATS Exchange, Inc. (‘‘BATS’’)
statements. Rule 20.6. See also, e.g., Securities Exchange Act 5 15
Release Nos. 74556 (March 20, 2015), 80 FR 16031 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4).
(March 26, 2015) (SR–BATS–2014–067), and 75488
1 15 U.S.C. 78s(b)(1). 7 See supra note 4.
(July 20, 2015), 80 FR 44164 (July 24, 2015) (SR–
2 17 CFR 240.19b–4. Phlx–2015–65). 8 See supra note 4.
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![Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Notices 70857
competition in that the $500.00 charge rules/sro.shtml). Copies of the thereunder,3 a proposed rule change to
and the provision of pass through submission, all subsequent list and trade shares (‘‘Shares’’) of the
charges from other market centers amendments, all written statements ProShares Managed Futures Strategy
proposed herein will apply equally to with respect to the proposed rule ETF (‘‘Fund’’) of the ProShares Trust
all MIAX Members submitting appeals change that are filed with the (‘‘Trust’’) under BATS Rule 14.11(i).
pursuant to Rule 521(l). Commission, and all written The proposed rule change was
communications relating to the published for comment in the Federal
C. Self-Regulatory Organization’s Register on August 17, 2015.4 On
proposed rule change between the
Statement on Comments on the August 19, 2015, the Exchange filed
Commission and any person, other than
Proposed Rule Change Received From Amendment No. 1 to the proposed rule
those that may be withheld from the
Members, Participants, or Others change, which replaced the proposed
public in accordance with the
Written comments were neither provisions of 5 U.S.C. 552, will be rule change in its entirety.5 On
solicited nor received. available for Web site viewing and September 4, 2015, the Exchange filed
printing in the Commission’s Public Amendment No. 2 to the proposed rule
III. Date of Effectiveness of the
Reference Room, 100 F Street NE., change, which replaced the proposed
Proposed Rule Change and Timing for
Washington, DC 20549 on official rule change in its entirety.6 The
Commission Action
business days between the hours of Commission received no comments on
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of such the proposed rule change. The
effective pursuant to Section filing also will be available for Commission is publishing this notice to
19(b)(3)(A)(ii) of the Act,9 and Rule inspection and copying at the principal solicit comments on Amendments Nos.
19b–4(f)(2) 10 thereunder. At any time office of the Exchange. All comments 1 and 2 from interested persons, and is
within 60 days of the filing of the received will be posted without change; approving the proposed rule change, as
proposed rule change, the Commission the Commission does not edit personal modified by Amendments Nos. 1 and 2,
summarily may temporarily suspend identifying information from on an accelerated basis.
such rule change if it appears to the submissions. You should submit only
Commission that such action is II. Description of the Proposal
information that you wish to make
necessary or appropriate in the public available publicly. All submissions The Exchange proposes to list and
interest, for the protection of investors, should refer to File Number SR–MIAX– trade the Shares under BATS Rule
or otherwise in furtherance of the 2015–62, and should be submitted on or 14.11(i), which governs the listing and
purposes of the Act. If the Commission trading of Managed Fund Shares on the
before December 7, 2015.
takes such action, the Commission shall Exchange. The Exchange deems the
institute proceedings to determine For the Commission, by the Division of Shares to be equity securities, thus
Trading and Markets, pursuant to delegated rendering trading in the Shares subject
whether the proposed rule should be authority.11
approved or disapproved. to the Exchange’s existing rules
Robert W. Errett, governing the trading of equity
IV. Solicitation of Comments Deputy Secretary. securities.
Interested persons are invited to [FR Doc. 2015–28861 Filed 11–13–15; 8:45 am] The Shares will be offered by the
submit written data, views, and BILLING CODE 8011–01–P Trust, which is established as a
arguments concerning the foregoing, Delaware statutory trust. The Trust is
including whether the proposed rule registered with the Commission as an
change is consistent with the Act. SECURITIES AND EXCHANGE open-end investment company and has
Comments may be submitted by any of COMMISSION filed a registration statement on behalf
the following methods: of the Fund on Form N–1A
[Release No. 34–76394; File No. SR–BATS– (‘‘Registration Statement’’) with the
Electronic Comments 2015–56]
Commission.7 ProShare Advisors LLC is
• Use the Commission’s Internet Self-Regulatory Organizations; BATS the investment adviser (‘‘Adviser’’) to
comment form (http://www.sec.gov/ Exchange, Inc.; Notice of Filing of the Fund. JPMorgan Chase Bank,
rules/sro.shtml); or Amendments Nos. 1 and 2 and Order National Association is the
• Send an email to rule-comments@
Granting Accelerated Approval of a
sec.gov. Please include File Number SR– 3 17 CFR 240.19b–4.
Proposed Rule Change to List and
MIAX–2015–62 on the subject line. 4 See Securities Exchange Act Release No. 75664
Trade Shares of the ProShares (August 11, 2015), 80 FR 49288.
Paper Comments Managed Futures Strategy ETF of the 5 In Amendment No. 1, the Exchange
• Send paper comments in triplicate ProShares Trust Under BATS Rule supplemented the information that will be included
14.11 on BATS Exchange, Inc. in the Fund’s Disclosed Portfolio, clarified the
to Brent J. Fields, Secretary, Securities investments that the Fund may hold, clarified how
and Exchange Commission, 100 F Street November 9, 2015. certain of the Fund’s assets will be valued in
NE., Washington, DC 20549–1090. calculating the Fund’s net asset value (‘‘NAV’’), and
All submissions should refer to File I. Introduction provided additional information regarding the
availability of price information for the assets that
Number SR–MIAX–2015–62. This file On July 30, 2015, BATS Exchange, the Fund may hold. All amendments to the
number should be included on the Inc. (‘‘Exchange’’ or ‘‘BATS’’) filed with proposed rule change are available at: http://
the Securities and Exchange www.sec.gov/comments/sr-bats-2015–56/
subject line if email is used. To help the bats201556–1.pdf.
Commission process and review your Commission (‘‘Commission’’), pursuant 6 In Amendment No. 2, the Exchange modified
tkelley on DSK3SPTVN1PROD with NOTICES
comments more efficiently, please use to Section 19(b)(1) 1 of the Securities the description of the swaps that the Fund may
only one method. The Commission will Exchange Act of 1934 (‘‘Act’’ or hold and the availability of intraday price
post all comments on the Commission’s ‘‘Exchange Act’’) 2 and Rule 19b–4 information for assets that the Fund may hold.
7 See Registration Statement on Form N–1A for
Internet Web site (http://www.sec.gov/ the Trust, dated May 31, 2013 (File Nos. 333–98922
11 17 CFR 200.30–3(a)(12). and 811–21114). See also Investment Company Act
9 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1). Release No. 30562 (June 18, 2013) (File No. 812–
10 17 CFR 240.19b–4(f)(2). 2 15 U.S.C. 78a. 14041).
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Document Created: 2015-12-14 14:13:26
Document Modified: 2015-12-14 14:13:26
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 70856 |
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