80 FR 74167 - Self-Regulatory Organizations: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange LLC To Amend Exchange Rule 519

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 228 (November 27, 2015)

Page Range		74167-74168
FR Document		2015-30081
Federal Register, Volume 80 Issue 228 (Friday, November 27, 2015)
[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)]
[Notices]
[Pages 74167-74168]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-30081]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76491; File No. SR-MIAX-2015-64]


Self-Regulatory Organizations: Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by Miami International 
Securities Exchange LLC To Amend Exchange Rule 519

November 20, 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 13, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend Exchange Rule 519, MIAX Order 
Monitor (``MOM'') to codify the Open Order and Open Contract Protection 
features included in MOM.
    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 Rule 519, MIAX Order Monitor, to 
provide details regarding Open Order and Open Contract protections. The 
proposal codifies existing functionality applicable to orders on the 
Exchange. The Exchange is also proposing a clarifying amendment to 
current Rule 519(b) to provide consistency in that Rule with the 
proposed new rules.
    The MOM is a risk management feature of the Exchange's System \3\ 
that prevents certain orders from executing or being placed on the Book 
at prices outside pre-set standard limits \4\ and if the size of the 
order exceeds the order size protection designated by the Member 
submitting the order.\5\
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    \3\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \4\ See Exchange Rule 519(a).
    \5\ See Exchange Rule 519(b).
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    Additionally, the System currently rejects any orders that exceed 
the maximum number of open orders held in the System on behalf of a 
particular Member (the ``Open Order Protection''). The System also 
currently rejects any orders that cause the number of open contracts 
represented by orders held in the System on behalf of a particular 
Member (the ``Open Contract Protection'') to exceed a specified maximum 
number of contracts. For each of these protections, the maximum number 
(of open orders and open contracts) is designated (or may be disabled) 
by the Member. The Exchange is proposing to codify the Open Order and 
Open Contract Protections in Rule 519.
    Currently, Rule 519 only provides details regarding the System's 
Order Price Protections and Order Size Protections. However, in 
addition to order protections based on price and order size, the System 
also employs order protections based on the number of open orders held 
in the System and on the number of contracts represented by open orders 
held in the System. The Exchange now proposes to codify these existing 
order protections into Rule 519.
    Members may designate or disable the Open Order and/or the Open 
Contract Protections on a firm wide basis. If the maximum number of 
open orders or contracts is not designated by the Member, the Exchange 
will set a maximum number of open orders or contracts on behalf of the 
Member by default. The default maximum number of open orders and open 
contracts are determined by the Exchange and announced to Members 
through a Regulatory Circular.\6\ The Open Order and Open Contract 
Protections provide market participants the flexibility to designate 
the level of protection they need to help prevent the potential 
submission of a number of orders and/or a number of contracts to the 
Exchange that would cause them to be at unintended risk levels.
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    \6\ The Exchange notes that the current default maximum number 
of open orders is 30,000 and the default number of open contracts is 
1,000,000.
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    The Exchange is also proposing a clarifying amendment to current 
Rule 519(b), Order Size Protections, to state that if the maximum size 
of orders is not designated by the Member, the Exchange will set a 
maximum size of orders on behalf of the Member by default. This is 
consistent with proposed new Rules 519(c) and (d), and

[[Page 74168]]

is intended to provide clarity, consistency and ease of reference 
regarding MOM protections available to users of the System.
    The proposed rule change is designed to protect investors and the 
public interest by codifying the protections that apply to orders that 
help market participants avoid the potential submission of orders that 
would place them at unwanted risk on the Exchange. In addition, the 
Exchange believes that the proposed rule change removes impediments to 
and perfects the mechanisms of a free and open market and a national 
market system and, in general, protects investors and the public 
interest by helping to eliminate potential confusion on behalf of 
market participants by clearly stating the System's functionality with 
regard to orders that trigger Open Order and Open Contract Protections.
2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with 
Section 6(b) of the Act \7\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act \8\ in particular, in that it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanisms of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    The proposed rule change is designed to protect investors and the 
public interest by codifying the Open Order and Open Contract 
Protections that help market participants avoid the potential 
submission of a number of orders and/or a number of contracts to the 
Exchange that would cause them to be at unintended risk levels.
    In addition, the Exchange believes that the proposed amendment 
removes impediments to and perfects the mechanisms of a free and open 
market and a national market system and, in general, protects investors 
and the public interest by helping to eliminate potential confusion on 
behalf of market participants by clearly stating the System's 
functionality with regard to Open Order and Open Contract Protections.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. Specifically, the Exchange 
believes the proposed changes will not impose any burden on intra-
market competition because it applies to all MIAX participants equally. 
In addition, the Exchange does not believe the proposal will impose any 
burden on inter-market competition as the proposal is intended to 
protect investors by providing further transparency regarding the MOM 
feature.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) \10\ 
thereunder.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MIAX-2015-64 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-MIAX-2015-64. 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-2015-64, and should be 
submitted on or before December 18, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-30081 Filed 11-25-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices 74167

All submissions should refer to File on November 13, 2015, Miami the size of the order exceeds the order
Number SR–BX–2015–073. This file International Securities Exchange LLC size protection designated by the
number should be included on the (‘‘MIAX’’ or ‘‘Exchange’’) filed with the Member submitting the order.5
subject line if email is used. To help the Securities and Exchange Commission Additionally, the System currently
Commission process and review your (‘‘Commission’’) a proposed rule change rejects any orders that exceed the
comments more efficiently, please use as described in Items I, II, and III below, maximum number of open orders held
only one method. The Commission will which Items have been prepared by the in the System on behalf of a particular
post all comments on the Commission’s Exchange. The Commission is Member (the ‘‘Open Order Protection’’).
Internet Web site (http://www.sec.gov/ publishing this notice to solicit The System also currently rejects any
rules/sro.shtml). Copies of the comments on the proposed rule change orders that cause the number of open
submission, all subsequent from interested persons. contracts represented by orders held in
amendments, all written statements the System on behalf of a particular
with respect to the proposed rule I. Self-Regulatory Organization’s
Member (the ‘‘Open Contract
change that are filed with the Statement of the Terms of the Substance
Protection’’) to exceed a specified
Commission, and all written of the Proposed Rule Change
maximum number of contracts. For each
communications relating to the The Exchange proposes to amend of these protections, the maximum
proposed rule change between the Exchange Rule 519, MIAX Order number (of open orders and open
Commission and any person, other than Monitor (‘‘MOM’’) to codify the Open contracts) is designated (or may be
those that may be withheld from the Order and Open Contract Protection disabled) by the Member. The Exchange
public in accordance with the features included in MOM. is proposing to codify the Open Order
provisions of 5 U.S.C. 552, will be The text of the proposed rule change and Open Contract Protections in Rule
available for Web site viewing and is available on the Exchange’s Web site 519.
printing in the Commission’s Public at http://www.miaxoptions.com/filter/ Currently, Rule 519 only provides
Reference Room, 100 F Street NE., wotitle/rule_filing, at MIAX’s principal details regarding the System’s Order
Washington, DC 20549, on official office, and at the Commission’s Public Price Protections and Order Size
business days between the hours of Reference Room. Protections. However, in addition to
10:00 a.m. and 3:00 p.m. Copies of the order protections based on price and
II. Self-Regulatory Organization’s
filing also will be available for order size, the System also employs
Statement of the Purpose of, and
inspection and copying at the principal order protections based on the number
Statutory Basis for, the Proposed Rule
office of the Exchange. All comments of open orders held in the System and
Change
received will be posted without change; on the number of contracts represented
the Commission does not edit personal In its filing with the Commission, the by open orders held in the System. The
identifying information from Exchange included statements Exchange now proposes to codify these
submissions. You should submit only concerning the purpose of and basis for existing order protections into Rule 519.
information that you wish to make the proposed rule change and discussed Members may designate or disable the
available publicly. All submissions any comments it received on the Open Order and/or the Open Contract
should refer to File Number SR–BX– proposed rule change. The text of these Protections on a firm wide basis. If the
2015–073 and should be submitted on statements may be examined at the maximum number of open orders or
or before December 18, 2015. places specified in Item IV below. The contracts is not designated by the
Exchange has prepared summaries, set Member, the Exchange will set a
For the Commission, by the Division of forth in sections A, B, and C below, of maximum number of open orders or
Trading and Markets, pursuant to delegated the most significant aspects of such contracts on behalf of the Member by
authority.20 statements. default. The default maximum number
Robert W. Errett, A. Self-Regulatory Organization’s of open orders and open contracts are
Deputy Secretary. Statement of the Purpose of, and determined by the Exchange and
[FR Doc. 2015–30076 Filed 11–25–15; 8:45 am] Statutory Basis for, the Proposed Rule announced to Members through a
BILLING CODE 8011–01–P Change Regulatory Circular.6 The Open Order
and Open Contract Protections provide
1. Purpose market participants the flexibility to
SECURITIES AND EXCHANGE The Exchange proposes to amend designate the level of protection they
COMMISSION Rule 519, MIAX Order Monitor, to need to help prevent the potential
[Release No. 34–76491; File No. SR–MIAX– provide details regarding Open Order submission of a number of orders and/
2015–64] and Open Contract protections. The or a number of contracts to the
proposal codifies existing functionality Exchange that would cause them to be
Self-Regulatory Organizations: Notice applicable to orders on the Exchange. at unintended risk levels.
of Filing and Immediate Effectiveness The Exchange is also proposing a The Exchange is also proposing a
of a Proposed Rule Change by Miami clarifying amendment to current Rule clarifying amendment to current Rule
International Securities Exchange LLC 519(b) to provide consistency in that 519(b), Order Size Protections, to state
To Amend Exchange Rule 519 Rule with the proposed new rules. that if the maximum size of orders is not
The MOM is a risk management designated by the Member, the
November 20, 2015. feature of the Exchange’s System 3 that Exchange will set a maximum size of
mstockstill on DSK4VPTVN1PROD with NOTICES

Pursuant to the provisions of Section prevents certain orders from executing orders on behalf of the Member by
19(b)(1) of the Securities Exchange Act or being placed on the Book at prices default. This is consistent with
of 1934 (‘‘Act’’) 1 and Rule 19b–4 outside pre-set standard limits 4 and if proposed new Rules 519(c) and (d), and
thereunder,2 notice is hereby given that
3 The term ‘‘System’’ means the automated 5 See Exchange Rule 519(b).
20 17 CFR 200.30–3(a)(12), (59). trading system used by the Exchange for the trading 6 The Exchange notes that the current default
1 15 U.S.C. 78s(b)(1). of securities. See Exchange Rule 100. maximum number of open orders is 30,000 and the
2 17 CFR 240.19b–4. 4 See Exchange Rule 519(a). default number of open contracts is 1,000,000.

VerDate Sep<11>2014 19:01 Nov 25, 2015 Jkt 238001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 E:\FR\FM\27NON1.SGM 27NON1
74168 Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices

is intended to provide clarity, B. Self-Regulatory Organization’s Comments may be submitted by any of
consistency and ease of reference Statement on Burden on Competition the following methods:
regarding MOM protections available to The Exchange does not believe that Electronic Comments
users of the System. the proposed rule change will impose
The proposed rule change is designed any burden on competition that is not • Use the Commission’s Internet
to protect investors and the public necessary or appropriate in furtherance comment form (http://www.sec.gov/
interest by codifying the protections that of the purposes of the Act. Specifically, rules/sro.shtml); or
apply to orders that help market the Exchange believes the proposed • Send an email to rule-comments@
participants avoid the potential changes will not impose any burden on
sec.gov. Please include File Number SR–
submission of orders that would place intra-market competition because it
MIAX–2015–64 on the subject line.
them at unwanted risk on the Exchange. applies to all MIAX participants
In addition, the Exchange believes that equally. In addition, the Exchange does Paper Comments
the proposed rule change removes not believe the proposal will impose
any burden on inter-market competition • Send paper comments in triplicate
impediments to and perfects the to Secretary, Securities and Exchange
as the proposal is intended to protect
mechanisms of a free and open market Commission, 100 F Street NE.,
investors by providing further
and a national market system and, in transparency regarding the MOM Washington, DC 20549–1090.
general, protects investors and the feature.
public interest by helping to eliminate All submissions should refer to File
potential confusion on behalf of market C. Self-Regulatory Organization’s Number SR–MIAX–2015–64. This file
participants by clearly stating the Statement on Comments on the number should be included on the
System’s functionality with regard to Proposed Rule Change Received From subject line if email is used. To help the
orders that trigger Open Order and Open Members, Participants, or Others Commission process and review your
Contract Protections. Written comments were neither comments more efficiently, please use
solicited nor received. only one method. The Commission will
2. Statutory Basis post all comments on the Commission’s
III. Date of Effectiveness of the Internet Web site (http://www.sec.gov/
MIAX believes that its proposed rule Proposed Rule Change and Timing for rules/sro.shtml). Copies of the
change is consistent with Section 6(b) of Commission Action submission, all subsequent
the Act 7 in general, and furthers the Because the foregoing proposed rule amendments, all written statements
objectives of Section 6(b)(5) of the Act 8 change does not: (i) Significantly affect with respect to the proposed rule
in particular, in that it is designed to the protection of investors or the public change that are filed with the
prevent fraudulent and manipulative interest; (ii) impose any significant Commission, and all written
acts and practices, to promote just and burden on competition; and (iii) become communications relating to the
equitable principles of trade, to foster operative for 30 days after the date of proposed rule change between the
cooperation and coordination with the filing, or such shorter time as the Commission and any person, other than
persons engaged in facilitating Commission may designate, it has those that may be withheld from the
transactions in securities, to remove become effective pursuant to 19(b)(3)(A) public in accordance with the
impediments to and perfect the of the Act 9 and Rule 19b–4(f)(6) 10 provisions of 5 U.S.C. 552, will be
mechanisms of a free and open market thereunder. available for Web site viewing and
and a national market system and, in At any time within 60 days of the
printing in the Commission’s Public
general, to protect investors and the filing of the proposed rule change, the
Commission summarily may Reference Room, 100 F Street NE.,
public interest.
temporarily suspend such rule change if Washington, DC 20549 on official
The proposed rule change is designed business days between the hours of
to protect investors and the public it appears to the Commission that such
action is necessary or appropriate in the 10:00 a.m. and 3:00 p.m. Copies of such
interest by codifying the Open Order filing also will be available for
public interest, for the protection of
and Open Contract Protections that help inspection and copying at the principal
investors, or otherwise in furtherance of
market participants avoid the potential office of the Exchange. All comments
the purposes of the Act. If the
submission of a number of orders and/ received will be posted without change;
Commission takes such action, the
or a number of contracts to the Commission shall institute proceedings the Commission does not edit personal
Exchange that would cause them to be to determine whether the proposed rule identifying information from
at unintended risk levels. should be approved or disapproved. submissions. You should submit only
In addition, the Exchange believes information that you wish to make
IV. Solicitation of Comments
that the proposed amendment removes available publicly. All submissions
impediments to and perfects the Interested persons are invited to should refer to File Number SR–MIAX–
mechanisms of a free and open market submit written data, views, and 2015–64, and should be submitted on or
and a national market system and, in arguments concerning the foregoing, before December 18, 2015.
general, protects investors and the including whether the proposed rule
change is consistent with the Act. For the Commission, by the Division of
public interest by helping to eliminate Trading and Markets, pursuant to delegated
potential confusion on behalf of market
mstockstill on DSK4VPTVN1PROD with NOTICES

9 15 U.S.C. 78s(b)(3)(A). authority.11
participants by clearly stating the 10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Robert W. Errett,
System’s functionality with regard to 4(f)(6) requires a self-regulatory organization to give
Open Order and Open Contract Deputy Secretary.
the Commission written notice of its intent to file
Protections. the proposed rule change at least five business days [FR Doc. 2015–30081 Filed 11–25–15; 8:45 am]
prior to the date of filing of the proposed rule BILLING CODE 8011–01–P
change, or such shorter time as designated by the
7 15 U.S.C. 78f(b). Commission. The Exchange has satisfied this
8 15 U.S.C. 78f(b)(5). requirement. 11 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 19:01 Nov 25, 2015 Jkt 238001 PO 00000 Frm 00098 Fmt 4703 Sfmt 9990 E:\FR\FM\27NON1.SGM 27NON1
Document Created: 2015-12-14 14:05:20
Document Modified: 2015-12-14 14:05:20
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 74167