80 FR 79986 - 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 246 (December 23, 2015)
Federal Register Volume 80, Issue 246 (December 23, 2015)
| Page Range | 79986-79989 | |
| FR Document | 2015-32188 |
[Federal Register Volume 80, Number 246 (Wednesday, December 23, 2015)] [Notices] [Pages 79986-79989] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-32188] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76674; File No. SR-MIAX-2015-70] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule December 17, 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 December 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 the MIAX Options Fee Schedule (the ``Fee Schedule''). The text of the proposed rule change is available on the Exchange's Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at MIAX's principal office, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fee Schedule to: (i) Increase the transaction fees for transactions in standard options in non-Penny Pilot classes for Public Customers \3\ that are not a Priority Customer,\4\ Non-MIAX Market Makers, Non-Member Broker-Dealers, and Firms,\5\ and (ii) increase the transaction fees for transactions in standard options in Penny Pilot classes for Firms. The Exchange also proposes to modify the transaction fees for transactions for Public Customers that are not a Priority Customer, Non-MIAX Market Makers, Non-Member Broker-Dealers and Firms that achieve certain Priority Customer Rebate Program \6\ volume tiers. The proposed changes are based on the similar fees of other competing options exchanges.\7\ --------------------------------------------------------------------------- \3\ The term ``Public Customer'' means a person that is not a broker or dealer in securities. See Exchange Rule 100. \4\ 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). \5\ This fee is assessed to an Electronic Exchange Member (``EEM'') that enters an order that is executed for an account identified by the EEM for clearing in the OCC ``Firm'' range. See Fee Schedule, Section 1)a)ii). The term ``Electronic Exchange Member'' means the holder of a Trading Permit who is not a Market Maker. Electronic Exchange Members are deemed ``members'' under the Exchange Act. See Exchange Rule 100. \6\ See Fee Schedule, Section 1)a)iii). \7\ See NASDAQ OMX PHLX LLC Pricing Schedule, Section II; and Chicago Board Options Exchange, Incorporated, Fees Schedule, p. 1. --------------------------------------------------------------------------- The Exchange is also proposing proportional fee changes applicable to Mini-Options in non-Penny Pilot classes, except that such fees applicable to Firms will be increased from $0.04 to $0.07 per contract, as described below. The Mini-Options transaction fee in [[Page 79987]] Penny Pilot classes will remain unchanged. Specifically, the Exchange proposes to assess a $0.75 per contract fee for transactions in standard options in non-Penny Pilot classes by Public Customers that are not a Priority Customer. The Exchange also proposes to assess a $0.75 per contract fee for transactions in standard options in non-Penny Pilot classes by Non-MIAX Market Makers. Additionally, the Exchange proposes to assess a $0.75 per contract fee for transactions in standard options in non-Penny Pilot classes by Non- Member Broker-Dealers. The Exchange believes that these proposed fees are reasonable, equitable and not unfairly discriminatory because they are the same for all participants other than Priority Customers, who are not assessed transaction fees. Finally, the Exchange proposes to assess a $0.75 per contract fee for transactions in standard options in non-Penny Pilot classes by Firms. The Exchange believes that this proposed fee increase for Firms in non-Penny Pilot classes is equitable and not unfairly discriminatory. While Firms are currently charged significantly less (i.e., 20 cents per contract) than Public Customers that are not Priority Customers, non-MIAX Market Makers, and non-Member Broker- Dealers, the Exchange is simply proposing to place market participants in all of these categories on equal footing by increasing the transaction fees in non-Penny Pilot classes for such participants, including Firms, to an equal amount of $0.75 per contract. This fee is intended to balance the costs incurred by the Exchange for the execution of such orders, and to encourage the submission and execution of Priority Customer orders on the Exchange at no charge. The Exchange also proposes to increase the transaction fees assessed for transactions in standard options in Penny Pilot classes for Firms from $0.37 to $0.45 per contract. The Exchange believes that this proposed fee increase is reasonable, equitable and not unfairly discriminatory because it creates a more even playing field among Public Customers that are not Priority Customers, non-MIAX Market Makers, non-Member Broker-Dealers, and Firms. The Exchange initially established the transaction fees for Firms at a significantly lower rate than the other named categories of participants as a competitive measure to attract order flow from Firms. The Exchange believes that a variety of incentives, including but not limited to transaction fees, now achieve this goal. Accordingly, the Exchange believes that it is reasonable, equitable and not unfairly discriminatory to increase the transaction fees in standard options for Firms in Penny Pilot classes to $0.45 per contract. This is still $0.02 less than the Penny Pilot class transaction fees for the other named categories of participants and the Exchange believes that it is still beneficial for competitive reasons to offer this fee to Firms. The Exchange proposes to continue to offer Public Customers that are not a Priority Customer, Non-MIAX Market Makers, Non-Member Broker- Dealers and Firms the opportunity to reduce these transaction fees by $0.02 per contract in standard options.\8\ In order to accomplish this reduction in transaction fees, any Member or its affiliates of at least 75% common ownership between the firms as reflected on each firm's Form BD, Schedule A, that qualifies for Priority Customer Rebate Program volume tiers 3 or 4, and is: A Public Customer that is not a Priority Customer; a Non-MIAX Market Maker; a Non-Member Broker-Dealer; or a Firm will be assessed a reduced transaction fee of $0.73 per contract for standard options in non-Penny Pilot option classes. Any Member or its affiliates of at least 75% common ownership between the firms as reflected on each firm's Form BD, Schedule A, that qualifies for Priority Customer Rebate Program volume tiers 3 or 4 and is a Firm will be assessed a reduced transaction fee of $0.43 per contract in Penny Pilot classes and $0.73 per contract in non-Penny Pilot classes. The Exchange believes that these incentives will encourage these market participants to transact a greater number of orders on the Exchange. --------------------------------------------------------------------------- \8\ See Securities Exchange Release Nos. 72988 (September 4, 2014), 79 FR 53808 (September 10, 2014) (SR-MIAX-2014-46); 72989 (September 4, 2014), 79 FR 53792 (September 10, 2014) (SR-MIAX-2014- 47). --------------------------------------------------------------------------- The Exchange is also proposing to increase the transaction fees for Mini-Options in non-Penny classes from $0.06 to $0.07 for Public Customers that are not Priority Customers, Non-MIAX Market Makers and Non-Member Broker-Dealers. This represents a proportional increase in the applicable transaction fees for standard options in non-Penny Pilot classes. The Exchange is also proposing to increase the Mini-Option fee in non-Penny Pilot classes for Firms from its current $0.04 per contract to $0.07 per contract. This also represents a proportional increase relative to the proposed fees for non-Penny Pilot classes in standard options, placing Firms on an even playing field with other non-Priority Customer participants in Mini-Options. 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act \9\ in general, and furthers the objectives of Section 6(b)(4) of the Act \10\ in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members and issuers and other persons using its facilities. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange's proposal to increase the transaction fees is reasonable because the Exchange's fees will remain competitive with fees at other options exchanges.\11\ The Exchange's proposal to increase the transaction fees for these market participants is equitable and not unfairly discriminatory because the increase applies equally to all of the participants in each category of market participant. The Exchange does not assess transactions fees on Priority Customers because Priority Customer order flow enhances liquidity on the Exchange for the benefit of all market participants by providing more trading opportunities, which attracts Market Makers and other market participants. An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow from other market participants. MIAX Market Makers are assessed lower transaction fees as compared to Public Customers that are not a Priority Customer, Non-MIAX Market Makers, Non-Member Broker-Dealers, and Firms because they have market-making obligations and regulatory requirements, which normally do not apply to market participants that are not MIAX Market Makers.\12\ MIAX Market Makers have obligations to make continuous markets, engage in a course of dealings reasonably calculated to contribute to the maintenance of a fair and orderly market, and not make bids or offers or enter into transactions that are inconsistent with a course of dealings. In addition, Members are subject to other fees and dues associated with their membership to the Exchange that do not apply to non-Members, and the instant proposal recognizes the differing contributions made to the liquidity and trading environment on the Exchange by these market participants. The $0.75 per contract fee for transactions in standard options in non-Penny Pilot classes by [[Page 79988]] Public Customers that are not a Priority Customer, Non-MIAX Market Makers, Non-Member Broker-Dealers and Firms are reasonable, equitable and not unfairly discriminatory because they are the same for all market participants other than Priority Customers, who are not assessed transaction fees. --------------------------------------------------------------------------- \11\ See NASDAQ OMX PHLX LLC Pricing Schedule, Section II; and Chicago Board Options Exchange, Incorporated, Fees Schedule, p. 1. \12\ See Exchange Rules 603 and 604. --------------------------------------------------------------------------- The Exchange believes that the proposed fee increase for standard options in Penny Pilot classes for Firms is reasonable, equitable and not unfairly discriminatory because it creates a more even playing field among Public Customers that are not Priority Customers, non-MIAX Market Makers, non-Member Broker-Dealers, and Firms. The Exchange further believes that the proposed increase in transaction fees in Mini-Options in non-Penny Pilot classes for Firms from its current $0.04 per contract to $0.07 per contract is reasonable. equitable, and not unfairly discriminatory because it simply represents a proportional increase relative to the proposed fees for non-Penny Pilot classes in standard options, placing Firms on an even playing field with other non-Priority Customer participants in Mini-Options. The Exchange's proposal to offer Public Customers that are not a Priority Customer, Non-MIAX Market Makers, Non-Member Broker-Dealers and Firms the continued opportunity to reduce transaction fees by $0.02 per contract in standard options is reasonable because the Exchange desires to offer all such market participants an opportunity to lower their transaction fees. The Exchange's proposal to offer such market participants the continued opportunity to reduce transaction fees by $0.02 per contract in standard options, provided certain criteria are met, is equitable and not unfairly discriminatory because the Exchange will offer all market participants that are charged transaction fees a means to reduce such transaction fees by reaching volume tiers in the Priority Customer Rebate Program. The Exchange believes that the opportunity to lower transaction fees through incentives to transact Priority Customer order flow benefits all market participants. The Exchange believes that the proposal to allow the aggregation of trading activity of Members and their affiliates for purposes of the fee reduction is fair, equitable and not unreasonably discriminatory. The Exchange believes the proposed rule change is reasonable because it would allow aggregation of the trading activity of qualified affiliates only in very narrow circumstances, namely, where the affiliate meets the definition of an ``affiliate'' as stated in the Fee Schedule. Furthermore, other exchanges and MIAX have rules that permit the aggregation of the trading activity of affiliated entities for the purposes of calculating and assessing certain fees.\13\ The Exchange believes that the opportunity for all such market participants to lower transaction fees by transacting greater Priority Customer order flow in turn benefits all market participants. --------------------------------------------------------------------------- \13\ See, e.g., NASDAQ OMX PHLX LLC Pricing Schedule Preface; and Chicago Board Options Exchange, Incorporated, Fees Schedule, Footnote 10. --------------------------------------------------------------------------- The Exchange believes that its proposal to assess transaction fees in non-Penny Pilot options classes, which differs from Penny Pilot options classes, is consistent with other options markets that also assess different transaction fees for non-Penny Pilot options classes as compared to Penny Pilot options classes. The Exchange believes that establishing different pricing for non-Penny Pilot options and Penny Pilot options is reasonable, equitable, and not unfairly discriminatory because Penny Pilot options are more liquid options as compared to non- Penny Pilot options. Additionally, other competing options exchanges differentiate pricing in a similar manner.\14\ --------------------------------------------------------------------------- \14\ See NASDAQ OMX PHLX LLC Pricing Schedule, Section II; NYSE Amex Options Fee Schedule, p. 6; Chicago Board Options Exchange, Incorporated, Fees Schedule, p. 1; NASDAQ OMX BX Options Pricing Schedule, Section 2. --------------------------------------------------------------------------- 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 proposal is similar to the transaction fees found on other options exchanges; therefore, the Exchange believes the proposal is consistent with robust competition by increasing the intermarket competition for order flow from market participants. The proposal more closely aligns the fees for Public Customers that are not a Priority Customer, Non-MIAX Market Makers, Non-Member Broker-dealers and Firms on the Exchange to those of other exchanges for the same market participants. To the extent that there is additional competitive burden on non-Member market participants, the Exchange believes that this is appropriate because charging non-Members higher transaction fees is a common practice amongst exchanges, and because Members are subject to other fees and dues associated with their membership to the Exchange that do not apply to non-Members. Enhanced market quality and increased transaction volume that results from the anticipated increase in order flow directed to the Exchange will 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 to remain competitive with other exchanges and to attract order flow. The Exchange believes that the proposal reflects this competitive environment. 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,\15\ and Rule 19b-4(f)(2) \16\ 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. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(ii). \16\ 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-2015-70 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange [[Page 79989]] Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-MIAX-2015-70. 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-2015-70 and should be submitted on or before January 13, 2016. --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-32188 Filed 12-22-15; 8:45 am] BILLING CODE 8011-01-P
![79986 Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Notices
III. Date of Effectiveness of the Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s
Proposed Rule Change and Timing for Washington, DC 20549, on official Statement of the Purpose of, and
Commission Action business days between the hours of Statutory Basis for, the Proposed Rule
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the Change
effective pursuant to Section 19(b)(3)(A) filing also will be available for In its filing with the Commission, the
of the Act 12 and paragraph (f) of Rule inspection and copying at the principal Exchange included statements
19b–4 13 thereunder. At any time within office of the Exchange. All comments
concerning the purpose of and basis for
60 days of the filing of the proposed rule received will be posted without change;
the proposed rule change and discussed
change, the Commission summarily may the Commission does not edit personal
any comments it received on the
temporarily suspend such rule change if identifying information from
proposed rule change. The text of these
it appears to the Commission that such submissions. You should submit only
statements may be examined at the
action is necessary or appropriate in the information that you wish to make
places specified in Item IV below. The
public interest, for the protection of available publicly. All submissions
Exchange has prepared summaries, set
investors, or otherwise in furtherance of should refer to File Number SR–CBOE–
forth in sections A, B, and C below, of
the purposes of the Act. If the 2015–113 and should be submitted on
the most significant aspects of such
Commission takes such action, the or before January 13, 2016.
statements.
Commission will institute proceedings For the Commission, by the Division of
to determine whether the proposed rule Trading and Markets, pursuant to delegated A. Self-Regulatory Organization’s
change should be approved or authority.14 Statement of the Purpose of, and
disapproved. Robert W. Errett, Statutory Basis for, the Proposed Rule
Deputy Secretary. Change
IV. Solicitation of Comments
[FR Doc. 2015–32186 Filed 12–22–15; 8:45 am] 1. Purpose
Interested persons are invited to BILLING CODE 8011–01–P
submit written data, views and The Exchange proposes to amend its
arguments concerning the foregoing, Fee Schedule to: (i) Increase the
including whether the proposed rule SECURITIES AND EXCHANGE transaction fees for transactions in
change is consistent with the Act. COMMISSION standard options in non-Penny Pilot
Comments may be submitted by any of classes for Public Customers 3 that are
[Release No. 34–76674; File No. SR–MIAX– not a Priority Customer,4 Non-MIAX
the following methods:
2015–70]
Market Makers, Non-Member Broker-
Electronic Comments Dealers, and Firms,5 and (ii) increase
Self-Regulatory Organizations; Miami
• Use the Commission’s Internet the transaction fees for transactions in
International Securities Exchange LLC;
comment form (http://www.sec.gov/ standard options in Penny Pilot classes
Notice of Filing and Immediate
rules/sro.shtml); or for Firms. The Exchange also proposes
• Send an email to rule-comments@ Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule to modify the transaction fees for
sec.gov. Please include File Number SR– transactions for Public Customers that
CBOE–2015–113 on the subject line. December 17, 2015. are not a Priority Customer, Non-MIAX
Paper Comments Pursuant to the provisions of Section Market Makers, Non-Member Broker-
19(b)(1) of the Securities Exchange Act Dealers and Firms that achieve certain
• Send paper comments in triplicate of 1934 (‘‘Act’’) 1 and Rule 19b–4 Priority Customer Rebate Program 6
to Secretary, Securities and Exchange thereunder,2 notice is hereby given that volume tiers. The proposed changes are
Commission, 100 F Street NE., on December 4, 2015, Miami based on the similar fees of other
Washington, DC 20549–1090. International Securities Exchange LLC competing options exchanges.7
All submissions should refer to File (‘‘MIAX’’ or ‘‘Exchange’’) filed with the The Exchange is also proposing
Number SR–CBOE–2015–113. This file Securities and Exchange Commission proportional fee changes applicable to
number should be included on the (‘‘Commission’’) a proposed rule change Mini-Options in non-Penny Pilot
subject line if email is used. To help the as described in Items I, II, and III below, classes, except that such fees applicable
Commission process and review your which Items have been prepared by the to Firms will be increased from $0.04 to
comments more efficiently, please use Exchange. The Commission is $0.07 per contract, as described below.
only one method. The Commission will publishing this notice to solicit The Mini-Options transaction fee in
post all comments on the Commission’s comments on the proposed rule change
Internet Web site (http://www.sec.gov/ from interested persons. 3 The term ‘‘Public Customer’’ means a person
rules/sro.shtml). Copies of the that is not a broker or dealer in securities. See
submission, all subsequent I. Self-Regulatory Organization’s Exchange Rule 100.
amendments, all written statements Statement of the Terms of Substance of 4 The term ‘‘Priority Customer’’ means a person
with respect to the proposed rule the Proposed Rule Change or entity that (i) is not a broker or dealer in
securities, and (ii) does not place more than 390
change that are filed with the The Exchange is filing a proposal to orders in listed options per day on average during
Commission, and all written amend the MIAX Options Fee Schedule a calendar month for its own beneficial accounts(s).
communications relating to the (the ‘‘Fee Schedule’’). 5 This fee is assessed to an Electronic Exchange
proposed rule change between the The text of the proposed rule change Member (‘‘EEM’’) that enters an order that is
executed for an account identified by the EEM for
Commission and any person, other than is available on the Exchange’s Web site clearing in the OCC ‘‘Firm’’ range. See Fee
those that may be withheld from the at http://www.miaxoptions.com/filter/ Schedule, Section 1)a)ii). The term ‘‘Electronic
tkelley on DSK3SPTVN1PROD with NOTICES
public in accordance with the wotitle/rule_filing, at MIAX’s principal Exchange Member’’ means the holder of a Trading
provisions of 5 U.S.C. 552, will be office, and at the Commission’s Public Permit who is not a Market Maker. Electronic
Exchange Members are deemed ‘‘members’’ under
available for Web site viewing and Reference Room. the Exchange Act. See Exchange Rule 100.
printing in the Commission’s Public 6 See Fee Schedule, Section 1)a)iii).
14 17 CFR 200.30–3(a)(12). 7 See NASDAQ OMX PHLX LLC Pricing
12 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1). Schedule, Section II; and Chicago Board Options
13 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. Exchange, Incorporated, Fees Schedule, p. 1.
VerDate Sep<11>2014 18:05 Dec 22, 2015 Jkt 238001 PO 00000 Frm 00170 Fmt 4703 Sfmt 4703 E:\FR\FM\23DEN1.SGM 23DEN1](https://thefederalregister.org/doc/80_FR_80232/page/1.svg)
![Federal Register / Vol. 80, No. 246 / Wednesday, December 23, 2015 / Notices 79989
Commission, 100 F Street NE., section 17(d) of the Act and rule 17d– The Fund currently serves as the master
Washington, DC 20549–1090. 1 under the Act. fund in a master-feeder structure with
All submissions should refer to File one feeder fund.1 If the requested relief
Number SR–MIAX–2015–70. This file Summary of Application: Applicants is granted, the feeder fund will be
number should be included on the request an order to permit certain dissolved promptly and the Fund will
subject line if email is used. To help the registered closed-end management no longer operate within a master-feeder
Commission process and review your investment companies to issue multiple structure. The Fund operates as a ‘‘fund
comments more efficiently, please use classes of shares of beneficial interest of funds’’ that intends to invest in
only one method. The Commission will (‘‘Shares’’) and to impose asset-based private equity funds (‘‘Investment
post all comments on the Commission’s service and/or distribution fees and Funds’’) and in co-investment
Internet Web site (http://www.sec.gov/ contingent deferred sales loads opportunities in operating companies
rules/sro.shtml). Copies of the (‘‘CDSCs’’). that are presented by one or more
submission, all subsequent Applicants: Altegris KKR Commitments Investment Funds (‘‘Co-Investment
amendments, all written statements Master Fund (the ‘‘Fund’’), Altegris Opportunities’’). In particular, the Fund
with respect to the proposed rule Advisors, L.L.C. (the ‘‘Adviser’’) and intends to invest significantly in
change that are filed with the Altegris Investments, L.L.C. (the Investment Funds that are sponsored or
Commission, and all written ‘‘Distributor’’). advised by Kohlberg Kravis Roberts &
communications relating to the Filing Dates: The application was filed Co. L.P. or an affiliate (collectively,
proposed rule change between the on January 12, 2015, and amended on ‘‘KKR’’) and Co-Investment
Commission and any person, other than August 26, 2015. Opportunities presented by such KKR-
those that may be withheld from the Hearing or Notification of Hearing: An advised Investment Funds.
public in accordance with the order granting the requested relief will 2. The Adviser, a Delaware limited
provisions of 5 U.S.C. 552, will be be issued unless the Commission orders liability company, is registered as an
available for Web site viewing and a hearing. Interested persons may investment adviser under the
printing in the Commission’s Public request a hearing by writing to the Investment Advisers Act of 1940. The
Reference Room, 100 F Street NE., Commission’s Secretary and serving Adviser serves as investment adviser to
Washington, DC 20549, on official applicants with a copy of the request, the Fund. The Distributor, a broker-
business days between the hours of personally or by mail. Hearing requests dealer registered under the Securities
10:00 a.m. and 3:00 p.m. Copies of the should be received by the Commission Exchange Act of 1934 (‘‘1934 Act’’), acts
filing also will be available for by 5:30 p.m. on January 11, 2016, and as the distributor of the Fund. The
inspection and copying at the principal should be accompanied by proof of Distributor is under common control
office of the Exchange. All comments service on applicants, in the form of an with the Adviser and is an affiliated
received will be posted without change; affidavit or, for lawyers, a certificate of person, as defined in section 2(a)(3) of
the Commission does not edit personal service. Pursuant to rule 0–5 under the the Act, of the Adviser.
identifying information from Act, hearing requests should state the 3. The Fund continuously offers its
submissions. You should submit only nature of the writer’s interest, any facts Shares 2 to persons who are ‘‘accredited
information that you wish to make bearing upon the desirability of a investors,’’ as defined in Regulation D
available publicly. All submissions hearing on the matter, the reason for the under the Securities Act of 1933, as
should refer to File Number SR–MIAX– request, and the issues contested. amended (the ‘‘Securities Act’’). Shares
2015–70 and should be submitted on or Persons who wish to be notified of a of the Fund are not listed on any
before January 13, 2016. hearing may request notification by securities exchange and do not trade on
For the Commission, by the Division of writing to the Commission’s Secretary. an over-the-counter system such as
Trading and Markets, pursuant to delegated ADDRESSES: Secretary, U.S. Securities NASDAQ. Applicants do not expect that
authority.17 and Exchange Commission, 100 F Street any secondary market will develop for
Robert W. Errett, NE., Washington, DC 20549–1090; the Shares.
Deputy Secretary. Applicants, 1200 Prospect Street, Suite 4. The Fund currently offers a single
400, La Jolla, CA 92037. class of Shares (the ‘‘Initial Class’’) at
[FR Doc. 2015–32188 Filed 12–22–15; 8:45 am]
FOR FURTHER INFORMATION CONTACT: net asset value per share without a sales
BILLING CODE 8011–01–P
Kieran G. Brown, Senior Counsel, at load and without an annual asset-based
(202) 551–6773 or Daniele Marchesani, service and/or distribution fee. The
SECURITIES AND EXCHANGE Branch Chief, at (202) 551–6821 Fund proposes to issue multiple classes
COMMISSION (Division of Investment Management, of Shares and specifically proposes to
Chief Counsel’s Office). offer a new Share class (the ‘‘New
[Investment Company Act Release No. Class’’) at net asset value that may (but
31944; 812–14415] SUPPLEMENTARY INFORMATION: The
following is a summary of the would not necessarily) be subject to a
application. The complete application front-end sales load and an annual
Altegris KKR Commitments Master
may be obtained via the Commission’s asset-based service and/or distribution
Fund, et al.; Notice of Application
Web site by searching for the file fee. The Fund intends to continue to
December 17, 2015. number, or an applicant using the offer Initial Class Shares, without a sales
AGENCY: Securities and Exchange Company name box, at http:// load and without a service and/or
Commission (‘‘Commission’’). www.sec.gov/search/search.htm or by distribution fee.
5. In order to provide a limited degree
tkelley on DSK3SPTVN1PROD with NOTICES
ACTION: Notice of an application under calling (202) 551–8090.
section 6(c) of the Investment Company of liquidity to shareholders, the Fund
Act of 1940 (the ‘‘Act’’) for an Applicants’ Representations
1 The feeder fund is Altegris KKR Commitments
exemption from sections 18(c) and 18(i) 1. The Fund is a continuously offered
Fund.
of the Act and for an order pursuant to closed-end management investment 2 ‘‘Shares’’ includes any other equivalent
company registered under the Act and designation of a proportionate ownership interest of
17 17 CFR 200.30–3(a)(12). organized as a Delaware statutory trust. the Fund.
VerDate Sep<11>2014 18:05 Dec 22, 2015 Jkt 238001 PO 00000 Frm 00173 Fmt 4703 Sfmt 4703 E:\FR\FM\23DEN1.SGM 23DEN1](https://thefederalregister.org/doc/80_FR_80232/page/4.svg)
Document Created: 2018-03-02 09:21:12
Document Modified: 2018-03-02 09:21:12
| 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 79986 |
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