80_FR_81078 80 FR 80830 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule

80 FR 80830 - 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 248 (December 28, 2015)

Page Range80830-80832
FR Document2015-32525

Federal Register, Volume 80 Issue 248 (Monday, December 28, 2015)
[Federal Register Volume 80, Number 248 (Monday, December 28, 2015)]
[Notices]
[Pages 80830-80832]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32525]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76716; File No. SR-MIAX-2015-72]


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 21, 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 11, 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) Reduce the 
transaction fee for options overlying EEM, GLD, IWM, QQQ, and SPY 
executed by non-MIAX Market Makers; and (ii) modify the transaction fee 
for options overlying EEM, GLD, IWM, QQQ and SPY assessed to non-MIAX 
Market Makers that achieve certain Priority Customer Rebate Program \3\ 
volume tiers.\4\
---------------------------------------------------------------------------

    \3\ See Fee Schedule, Section (1)(a)(ii).
    \4\ See Securities Act Release No. 73850 (December 16, 2014), 79 
FR 76424 (December 22, 2014) (SR-MIAX-2014-63).
---------------------------------------------------------------------------

    The Exchange proposes to decrease the per contract transaction fee 
for non-MIAX Market Makers for options overlying EEM, GLD, IWM, QQQ, 
and SPY from $0.55 to $0.50. The Exchange notes that the transaction 
fees for non-MIAX Market Makers in all other options classes will not 
change and thus will continue to be charged the same amount for non-
Penny Pilot options classes and Penny Pilot options classes as they do 
today.
    The Exchange proposes to continue to offer non-MIAX Market Makers 
the opportunity to reduce transaction fees by $0.02 per contract in 
standard options in EEM, GLD, IWM, QQQ, and SPY. Specifically, 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 non-
MIAX Market Maker will be assessed a reduced transaction fee of $0.48 
per contract for standard options in EEM, GLD, IWM, QQQ, and SPY. The 
Exchange believes that these incentives will encourage non-MIAX Market 
Makers to transact a greater number of orders on the Exchange.
    The Exchange believes that the proposed fee reduction for non-MIAX 
Market Makers in EEM, GLD, IWM, QQQ, and SPY will benefit these market 
participants and encourage them to send greater order flow to the 
Exchange.
    The proposed changes to the Fee Schedule will be operative as of 
January 1, 2016.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
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 is an equitable allocation of reasonable fees and other charges 
among Exchange members and issuers and other persons using its 
facilities.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange's proposed decrease in transaction fees for non-MIAX 
Market Makers in EEM, GLD, IWM, QQQ and SPY is reasonable because the 
lower fees should encourage these market participants to send 
additional order flow to the Exchange and the additional order flow 
should benefit all market participants. The instant proposal is 
equitable and not unfairly discriminatory because the fee applies 
equally to all non-MIAX Market Makers. The Exchange's continued higher 
transaction fee for non-MIAX Market Makers compared to that for MIAX 
Market Markers is equitable and not unfairly discriminatory because 
MIAX Market Markers have enhanced quoting obligations measured in both 
quantity

[[Page 80831]]

(as a percentage of time) and quality (minimum bid-ask differentials) 
that other market participants do not have.\7\ In addition, charging 
non-members higher transaction fees is a common practice amongst 
exchanges because Members are subject to other fees and dues associated 
with their membership to the Exchange that do not apply to non-members. 
The proposed differentiation between non-MIAX Market Makers and MIAX 
Market Makers recognizes the differing contributions made to the 
liquidity and trading environment on the Exchange by these market 
participants. Maintaining a lower transaction fee for MIAX Market 
Makers should encourage market participants and market makers on other 
exchanges to register as Market Makers on the Exchange, which will 
enhance the quality of quoting and should increase the volume of 
contracts traded in options listed on MIAX. Enhanced market quality and 
increased transaction volume that results from the increase in Market 
Maker activity on the Exchange will benefit all market participants and 
improve competition on the Exchange.
---------------------------------------------------------------------------

    \7\ See MIAX Rules 603, 604, 605.
---------------------------------------------------------------------------

    The Exchange's proposal to continue to offer non-MIAX Market Makers 
the opportunity to reduce transaction fees by $0.02 per contract in 
standard options in EEM, GLD, IWM, QQQ, and SPY, provided certain 
criteria are met, is reasonable because the Exchange desires to offer 
all such market participants an opportunity to lower their transaction 
fees. This proposal is equitable and not unfairly discriminatory 
because the Exchange will offer this opportunity to all non-MIAX Market 
Makers in EEM, GLD, IWM, QQQ, and SPY.
    The Exchange believes that establishing different pricing for EEM, 
GLD, IWM, and SPY options is reasonable, equitable, and not unfairly 
discriminatory because EEM, GLD, IWM, QQQ, and SPY options are more 
liquid options as compared to others and the Exchange wants to 
encourage market participants to become members and register as MIAX 
Market Makers.

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 the proposal is consistent with robust competition by 
increasing the intermarket competition for order flow from market 
participants. The Exchange believes that charging non-members higher 
transaction fees is appropriate and is a common practice amongst 
exchanges, because Members are subject to other fees and dues 
associated with their Exchange that do not apply to non-members. The 
proposed differentiation as between non-MIAX Market Makers and MIAX 
Market Makers recognizes the differing contributions made to the 
liquidity and trading environment on the Exchange by these market 
participants. Maintaining a lower transaction fee for MIAX Market 
Makers should encourage market participants and market makers on other 
exchanges to register as MIAX Market Makers, which will enhance the 
quality of quoting and increase the volume of contracts traded in 
options listed on MIAX. Enhanced market quality and increased 
transaction volume that results from the anticipated increase in order 
flow submitted 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,\8\ and Rule 19b-4(f)(2) \9\ 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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 Comments

     Use 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-2015-72 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.

All submissions should refer to File Number SR-MIAX-2015-72. 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 Section, 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 will also 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-2015-72 and should be 
submitted on or before January 19, 2016.


[[Page 80832]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-32525 Filed 12-24-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                  80830                        Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices

                                                  Commission, 100 F Street NE.,                             thereunder,2 notice is hereby given that              SPY from $0.55 to $0.50. The Exchange
                                                  Washington, DC 20549–1090.                                on December 11, 2015, Miami                           notes that the transaction fees for non-
                                                  All submissions should refer to File                      International Securities Exchange LLC                 MIAX Market Makers in all other
                                                  Number SR–BATS–2015–115. This file                        (‘‘MIAX’’ or ‘‘Exchange’’) filed with the             options classes will not change and thus
                                                  number should be included on the                          Securities and Exchange Commission                    will continue to be charged the same
                                                  subject line if email is used. To help the                (‘‘Commission’’) a proposed rule change               amount for non-Penny Pilot options
                                                  Commission process and review your                        as described in Items I, II, and III below,           classes and Penny Pilot options classes
                                                  comments more efficiently, please use                     which Items have been prepared by the                 as they do today.
                                                  only one method. The Commission will                      Exchange. The Commission is                              The Exchange proposes to continue to
                                                  post all comments on the Commission’s                     publishing this notice to solicit                     offer non-MIAX Market Makers the
                                                  Internet Web site (http://www.sec.gov/                    comments on the proposed rule change                  opportunity to reduce transaction fees
                                                  rules/sro.shtml). Copies of the                           from interested persons.                              by $0.02 per contract in standard
                                                  submission, all subsequent                                                                                      options in EEM, GLD, IWM, QQQ, and
                                                                                                            I. Self-Regulatory Organization’s                     SPY. Specifically, any Member or its
                                                  amendments, all written statements                        Statement of the Terms of Substance of
                                                  with respect to the proposed rule                                                                               affiliates of at least 75% common
                                                                                                            the Proposed Rule Change                              ownership between the firms as
                                                  change that are filed with the
                                                  Commission, and all written                                  The Exchange is filing a proposal to               reflected on each firm’s Form BD,
                                                  communications relating to the                            amend the MIAX Options Fee Schedule                   Schedule A, that qualifies for Priority
                                                  proposed rule change between the                          (the ‘‘Fee Schedule’’).                               Customer Rebate Program volume tiers
                                                  Commission and any person, other than                        The text of the proposed rule change               3 or 4 and is a non-MIAX Market Maker
                                                  those that may be withheld from the                       is available on the Exchange’s Web site               will be assessed a reduced transaction
                                                  public in accordance with the                             at http://www.miaxoptions.com/filter/                 fee of $0.48 per contract for standard
                                                  provisions of 5 U.S.C. 552, will be                       wotitle/rule_filing, at MIAX’s principal              options in EEM, GLD, IWM, QQQ, and
                                                  available for Web site viewing and                        office, and at the Commission’s Public                SPY. The Exchange believes that these
                                                  printing in the Commission’s Public                       Reference Room.                                       incentives will encourage non-MIAX
                                                  Reference Room, 100 F Street NE.,                                                                               Market Makers to transact a greater
                                                                                                            II. Self-Regulatory Organization’s
                                                  Washington, DC 20549, on official                                                                               number of orders on the Exchange.
                                                                                                            Statement of the Purpose of, and                         The Exchange believes that the
                                                  business days between the hours of                        Statutory Basis for, the Proposed Rule                proposed fee reduction for non-MIAX
                                                  10:00 a.m. and 3:00 p.m. Copies of the                    Change                                                Market Makers in EEM, GLD, IWM,
                                                  filing also will be available for                            In its filing with the Commission, the             QQQ, and SPY will benefit these market
                                                  inspection and copying at the principal                   Exchange included statements                          participants and encourage them to send
                                                  office of the Exchange. All comments                      concerning the purpose of and basis for               greater order flow to the Exchange.
                                                  received will be posted without change;                   the proposed rule change and discussed                   The proposed changes to the Fee
                                                  the Commission does not edit personal                     any comments it received on the                       Schedule will be operative as of January
                                                  identifying information from                              proposed rule change. The text of these               1, 2016.
                                                  submissions. You should submit only                       statements may be examined at the
                                                  information that you wish to make                                                                               2. Statutory Basis
                                                                                                            places specified in Item IV below. The
                                                  available publicly. All submissions                       Exchange has prepared summaries, set                     The Exchange believes that its
                                                  should refer o File Number SR–BATS–                       forth in sections A, B, and C below, of               proposal to amend its Fee Schedule is
                                                  2015–115, and should be submitted on                      the most significant aspects of such                  consistent with Section 6(b) of the Act 5
                                                  or before January 19, 2016.                               statements.                                           in general, and furthers the objectives of
                                                    For the Commission, by the Division of                                                                        Section 6(b)(4) of the Act 6 in particular,
                                                  Trading and Markets, pursuant to delegated                A. Self-Regulatory Organization’s                     in that it is an equitable allocation of
                                                  authority.25                                              Statement of the Purpose of, and                      reasonable fees and other charges among
                                                  Brent J. Fields,                                          Statutory Basis for, the Proposed Rule                Exchange members and issuers and
                                                  Secretary.
                                                                                                            Change                                                other persons using its facilities.
                                                  [FR Doc. 2015–32537 Filed 12–24–15; 8:45 am]              1. Purpose                                               The Exchange’s proposed decrease in
                                                                                                                                                                  transaction fees for non-MIAX Market
                                                  BILLING CODE 8011–01–P                                       The Exchange proposes to amend its                 Makers in EEM, GLD, IWM, QQQ and
                                                                                                            Fee Schedule to: (i) Reduce the                       SPY is reasonable because the lower
                                                                                                            transaction fee for options overlying                 fees should encourage these market
                                                  SECURITIES AND EXCHANGE                                   EEM, GLD, IWM, QQQ, and SPY
                                                  COMMISSION                                                                                                      participants to send additional order
                                                                                                            executed by non-MIAX Market Makers;                   flow to the Exchange and the additional
                                                  [Release No. 34–76716; File No. SR–MIAX–                  and (ii) modify the transaction fee for               order flow should benefit all market
                                                  2015–72]                                                  options overlying EEM, GLD, IWM,                      participants. The instant proposal is
                                                                                                            QQQ and SPY assessed to non-MIAX                      equitable and not unfairly
                                                  Self-Regulatory Organizations; Miami                      Market Makers that achieve certain
                                                  International Securities Exchange LLC;                                                                          discriminatory because the fee applies
                                                                                                            Priority Customer Rebate Program 3                    equally to all non-MIAX Market Makers.
                                                  Notice of Filing and Immediate                            volume tiers.4
                                                  Effectiveness of a Proposed Rule                                                                                The Exchange’s continued higher
                                                                                                               The Exchange proposes to decrease
                                                  Change To Amend Its Fee Schedule                                                                                transaction fee for non-MIAX Market
                                                                                                            the per contract transaction fee for non-
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                                                                                                                                  Makers compared to that for MIAX
                                                  December 21, 2015.
                                                                                                            MIAX Market Makers for options
                                                                                                                                                                  Market Markers is equitable and not
                                                                                                            overlying EEM, GLD, IWM, QQQ, and
                                                    Pursuant to the provisions of Section                                                                         unfairly discriminatory because MIAX
                                                  19(b)(1) of the Securities Exchange Act                     2 17 CFR 240.19b–4.
                                                                                                                                                                  Market Markers have enhanced quoting
                                                  of 1934 (‘‘Act’’) 1 and Rule 19b-4                          3 See Fee Schedule, Section (1)(a)(ii).             obligations measured in both quantity
                                                                                                              4 See Securities Act Release No. 73850 (December
                                                    25 17   CFR 200.30–3(a)(12).                                                                                    5 15   U.S.C. 78f(b).
                                                                                                            16, 2014), 79 FR 76424 (December 22, 2014) (SR–
                                                    1 15   U.S.C. 78s(b)(1).                                MIAX–2014–63).                                          6 15   U.S.C. 78f(b)(4).



                                             VerDate Sep<11>2014     13:31 Dec 24, 2015   Jkt 238001   PO 00000   Frm 00086   Fmt 4703   Sfmt 4703   E:\FR\FM\28DEN1.SGM     28DEN1


                                                                               Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices                                               80831

                                                  (as a percentage of time) and quality                     The Exchange believes that charging                      IV. Solicitation of Comments
                                                  (minimum bid-ask differentials) that                      non-members higher transaction fees is
                                                  other market participants do not have.7                   appropriate and is a common practice                       Interested persons are invited to
                                                  In addition, charging non-members                         amongst exchanges, because Members                       submit written data, views, and
                                                  higher transaction fees is a common                       are subject to other fees and dues                       arguments concerning the foregoing,
                                                  practice amongst exchanges because                        associated with their Exchange that do                   including whether the proposed rule
                                                  Members are subject to other fees and                     not apply to non-members. The                            change is consistent with the Act.
                                                  dues associated with their membership                     proposed differentiation as between                      Comments may be submitted by any of
                                                  to the Exchange that do not apply to                      non-MIAX Market Makers and MIAX                          the following methods:
                                                  non-members. The proposed                                 Market Makers recognizes the differing
                                                  differentiation between non-MIAX                                                                                   Electronic Comments
                                                                                                            contributions made to the liquidity and
                                                  Market Makers and MIAX Market                             trading environment on the Exchange by                     • Use the Commission’s Internet
                                                  Makers recognizes the differing                           these market participants. Maintaining a                 comment form (http://www.sec.gov/
                                                  contributions made to the liquidity and                   lower transaction fee for MIAX Market                    rules/sro.shtml); or
                                                  trading environment on the Exchange by                    Makers should encourage market
                                                  these market participants. Maintaining a                  participants and market makers on other                    • Send an email to rule-comments@
                                                  lower transaction fee for MIAX Market                     exchanges to register as MIAX Market                     sec.gov. Please include File Number SR–
                                                  Makers should encourage market                            Makers, which will enhance the quality                   MIAX–2015–72 on the subject line.
                                                  participants and market makers on other                   of quoting and increase the volume of                    Paper Comments
                                                  exchanges to register as Market Makers                    contracts traded in options listed on
                                                  on the Exchange, which will enhance                       MIAX. Enhanced market quality and                          • Send paper comments in triplicate
                                                  the quality of quoting and should                         increased transaction volume that                        to Brent J. Fields, Secretary, Securities
                                                  increase the volume of contracts traded                   results from the anticipated increase in                 and Exchange Commission, 100 F Street
                                                  in options listed on MIAX. Enhanced                       order flow submitted to the Exchange                     NE., Washington, DC 20549.
                                                  market quality and increased                              will benefit all market participants and
                                                  transaction volume that results from the                  improve competition on the Exchange.                     All submissions should refer to File
                                                  increase in Market Maker activity on the                  The Exchange notes that it operates in                   Number SR–MIAX–2015–72. This file
                                                  Exchange will benefit all market                          a highly competitive market in which                     number should be included on the
                                                  participants and improve competition                      market participants can readily favor                    subject line if email is used. To help the
                                                  on the Exchange.                                          competing venues if they deem fee                        Commission process and review your
                                                     The Exchange’s proposal to continue                    levels at a particular venue to be                       comments more efficiently, please use
                                                  to offer non-MIAX Market Makers the                       excessive. In such an environment, the                   only one method. The Commission will
                                                  opportunity to reduce transaction fees                    Exchange must continually adjust its                     post all comments on the Commission’s
                                                  by $0.02 per contract in standard                         fees to remain competitive with other                    Internet Web site (http://www.sec.gov/
                                                  options in EEM, GLD, IWM, QQQ, and                        exchanges and to attract order flow. The                 rules/sro.shtml). Copies of the
                                                  SPY, provided certain criteria are met,                   Exchange believes that the proposal                      submission, all subsequent
                                                  is reasonable because the Exchange                        reflects this competitive environment.
                                                  desires to offer all such market                                                                                   amendments, all written statements
                                                  participants an opportunity to lower                      C. Self-Regulatory Organization’s                        with respect to the proposed rule
                                                  their transaction fees. This proposal is                  Statement on Comments on the                             change that are filed with the
                                                  equitable and not unfairly                                Proposed Rule Change Received From                       Commission, and all written
                                                  discriminatory because the Exchange                       Members, Participants, or Others                         communications relating to the
                                                  will offer this opportunity to all non-                                                                            proposed rule change between the
                                                  MIAX Market Makers in EEM, GLD,                             Written comments were neither                          Commission and any person, other than
                                                  IWM, QQQ, and SPY.                                        solicited nor received.                                  those that may be withheld from the
                                                     The Exchange believes that                             III. Date of Effectiveness of the                        public in accordance with the
                                                  establishing different pricing for EEM,                   Proposed Rule Change and Timing for                      provisions of 5 U.S.C. 552, will be
                                                  GLD, IWM, and SPY options is                              Commission Action                                        available for Web site viewing and
                                                  reasonable, equitable, and not unfairly                                                                            printing in the Commission’s Public
                                                  discriminatory because EEM, GLD,                             The foregoing rule change has become                  Reference Section, 100 F Street NE.,
                                                  IWM, QQQ, and SPY options are more                        effective pursuant to Section
                                                                                                                                                                     Washington, DC 20549 on official
                                                  liquid options as compared to others                      19(b)(3)(A)(ii) of the Act,8 and Rule
                                                                                                                                                                     business days between the hours of
                                                  and the Exchange wants to encourage                       19b–4(f)(2) 9 thereunder. At any time
                                                                                                                                                                     10:00 a.m. and 3:00 p.m. Copies of the
                                                  market participants to become members                     within 60 days of the filing of the
                                                                                                            proposed rule change, the Commission                     filing will also be available for
                                                  and register as MIAX Market Makers.                                                                                inspection and copying at the principal
                                                                                                            summarily may temporarily suspend
                                                  B. Self-Regulatory Organization’s                         such rule change if it appears to the                    office of the Exchange. All comments
                                                  Statement on Burden on Competition                        Commission that such action is                           received will be posted without change;
                                                    The Exchange does not believe that                      necessary or appropriate in the public                   the Commission does not edit personal
                                                  the proposed rule change will result in                   interest, for the protection of investors,               identifying information from
                                                  any burden on competition that is not                     or otherwise in furtherance of the                       submissions. You should submit only
                                                                                                                                                                     information that you wish to make
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  necessary or appropriate in furtherance                   purposes of the Act. If the Commission
                                                  of the purposes of the Act. The                           takes such action, the Commission shall                  available publicly. All submissions
                                                  Exchange believes the proposal is                         institute proceedings to determine                       should refer to File Number SR–MIAX–
                                                  consistent with robust competition by                     whether the proposed rule should be                      2015–72 and should be submitted on or
                                                  increasing the intermarket competition                    approved or disapproved.                                 before January 19, 2016.
                                                  for order flow from market participants.
                                                                                                              8 15   U.S.C. 78s(b)(3)(A)(ii).
                                                    7 See   MIAX Rules 603, 604, 605.                         9 17   CFR 240.19b–4(f)(2).                              10 17   CFR 200.30–3(a)(12).



                                             VerDate Sep<11>2014     13:31 Dec 24, 2015   Jkt 238001   PO 00000   Frm 00087     Fmt 4703    Sfmt 4703   E:\FR\FM\28DEN1.SGM     28DEN1


                                                  80832                      Federal Register / Vol. 80, No. 248 / Monday, December 28, 2015 / Notices

                                                    For the Commission, by the Division of                II. Self-Regulatory Organization’s                        (‘‘BOX’’) which yield fee code OC are
                                                  Trading and Markets, pursuant to delegated              Statement of the Purpose of, and                          charged no fee; (viii) Non-Customer
                                                  authority.10                                            Statutory Basis for, the Proposed Rule                    orders routed to BOX which yield fee
                                                  Brent J. Fields,                                        Change                                                    code OF are charged $0.99 per contract;
                                                  Secretary.                                                 In its filing with the Commission, the                 (ix) Non-Customer orders routed to
                                                  [FR Doc. 2015–32525 Filed 12–24–15; 8:45 am]            Exchange included statements                              NOM in Penny Pilot Securities which
                                                                                                          concerning the purpose of and basis for                   yield fee code QF are charged $0.65 per
                                                  BILLING CODE 8011–01–P
                                                                                                          the proposed rule change and discussed                    contract; (x) Non-Customer orders
                                                                                                          any comments it received on the                           routed to NOM in non-Penny Pilot
                                                  SECURITIES AND EXCHANGE                                 proposed rule change. The text of these                   Securities which yield fee code QG are
                                                  COMMISSION                                              statements may be examined at the                         charged $0.95 per contract; and (xi)
                                                                                                          places specified in Item IV below. The                    Customer orders routed to NYSE MKT
                                                                                                          Exchange has prepared summaries, set                      LLC (‘‘NYSE MKT’’ f/k/a AMEX) which
                                                  [Release No. 34–76708; File No. SR–EDGX–                                                                          yield fee code XC are charged $0.12 per
                                                  2015–63]                                                forth in Sections A, B, and C below, of
                                                                                                          the most significant parts of such                        contract.
                                                                                                          statements.                                                  In an effort to continue to offer
                                                  Self-Regulatory Organizations; EDGX                                                                               routing services to its Members at prices
                                                  Exchange, Inc.; Notice of Filing and                    (A) Self-Regulatory Organization’s                        that approximate the cost to the
                                                  Immediate Effectiveness of a Proposed                   Statement of the Purpose of, and                          Exchange, the Exchange is proposing to
                                                  Rule Change Related to Fees for EDGX                    Statutory Basis for, the Proposed Rule                    amend those rates as follows: (i) the fee
                                                  Options                                                 Change                                                    for Customer orders routed to ISE in
                                                  December 21, 2015.                                      1. Purpose                                                non-Penny Pilot Securities and any
                                                                                                                                                                    Customer orders routed to MIAX, BOX
                                                     Pursuant to Section 19(b)(1) of the                     The Exchange proposes to modify the                    or NYSE MKT (fee codes ID, MC, OC
                                                  Securities Exchange Act of 1934 (the                    ‘‘Options Pricing’’ section of its fee                    and XC, respectively) would be
                                                  ‘‘Act’’),1 and Rule 19b–4 thereunder,2                  schedule effective immediately, to                        increased to $0.15 per contract; (ii) the
                                                  notice is hereby given that on December                 modify pricing for orders routed away                     fee for Non-Customer Orders in non-
                                                  10, 2015, EDGX Exchange, Inc. (the                      from the Exchange and executed at                         Penny Pilot Securities routed to Arca
                                                  ‘‘Exchange’’ or ‘‘EDGX’’) filed with the                various away options exchanges. The                       would be increased to $1.15 per contract
                                                  Securities and Exchange Commission                      Exchange currently charges the                            (fee code AG); (iii) the fee for ISOs
                                                  (‘‘Commission’’) the proposed rule                      following rates for orders routed to                      directed to NOM, Arca, or ISE Gemini
                                                  change as described in Items I, II and III              certain other options exchanges: (i) Non-                 would be increased to $1.25 per contract
                                                  below, which Items have been prepared                   Customer 6 orders in non-Penny Pilot                      for Non-Penny Pilot Securities (fee code
                                                  by the Exchange. The Exchange has                       Securities.7 routed to NYSE Arca, Inc.                    D1); (iv) the fee for ISOs directed to
                                                  designated the proposed rule change as                  (‘‘Arca’’), which yield fee code AG, are                  other options exchanges would be
                                                  one establishing or changing a member                   charged $0.95 per contract; (ii)                          increased to $0.75 per contract (fee code
                                                  due, fee, or other charge imposed by the                Intermarket Sweep Orders (‘‘ISOs’’) in                    D4); 9 (v) the fee for Non-Customer
                                                  Exchange under Section 19(b)(3)(A)(ii)                  non-Penny Pilot Securities that are                       orders routed to MIAX would be
                                                  of the Act 3 and Rule 19b–4(f)(2)                       directed to Nasdaq Options Market LLC                     increased to $0.85 per contract (fee code
                                                  thereunder,4 which renders the                          (‘‘NOM’’), Arca, or ISE Gemini, LLC                       MF); (vi) the fee for Non-Customer
                                                  proposed rule change effective upon                     (‘‘ISE Gemini’’) are charged $0.95 per                    orders routed to BOX would be
                                                  filing with the Commission. The                         contract; (iii) ISOs directed to other                    increased to $1.20 (fee code OF); (vii)
                                                  Commission is publishing this notice to                 options exchanges are charged $0.65 per                   the fee for Non-Customer orders routed
                                                  solicit comments on the proposed rule                   contract; 8 (iv) Customer orders routed                   to NOM in Penny Pilot Securities would
                                                  change from interested persons.                         to the International Securities Exchange,                 be increased to $0.70 (fee code QF); and
                                                                                                          LLC (‘‘ISE’’) in non-Penny Pilot                          (viii) the fee for Non-Customer orders
                                                  I. Self-Regulatory Organization’s                       Securities which yield fee code ID and                    routed to NOM in non-Penny Pilot
                                                  Statement of the Terms of Substance of                  are charged $0.12 per contract; (v)                       Securities would be increased to $1.25
                                                  the Proposed Rule Change                                Customer orders routed to the Miami                       (fee code QG).
                                                                                                          International Securities Exchange LLC                        As noted previously and as set forth
                                                     The Exchange filed a proposal to                     (‘‘MIAX’’) which yield fee code MC are
                                                  amend the fee schedule applicable to                                                                              above, the Exchange’s current approach
                                                                                                          charged $0.12 per contract; (vi) Non-                     to routing fees is to set forth in a simple
                                                  Members 5 and non-members of the                        Customer orders routed to MIAX which
                                                  Exchange pursuant to EDGX Rules                                                                                   manner certain sub-categories of fees
                                                                                                          yield fee code MF are charged $0.65 per                   that approximate the cost of routing to
                                                  15.1(a) and (c).                                        contract; (vii) Customer orders routed to                 other options exchanges based on the
                                                     The text of the proposed rule change                 the BOX Options Exchange LLC                              cost of transaction fees assessed by each
                                                  is available at the Exchange’s Web site                                                                           venue as well as costs to the Exchange
                                                  at www.batstrading.com, at the                             6 ‘‘Non-Customer’’ applies to any transaction that
                                                                                                                                                                    for routing (i.e., clearing fees,
                                                  principal office of the Exchange, and at                is not a Customer Order. ‘‘Customer’’ applies to any
                                                                                                          transaction identified by a Member for clearing in        connectivity and other infrastructure
                                                  the Commission’s Public Reference                       the Customer range at the OCC, excluding any              costs, membership fees, etc.)
                                                  Room.                                                   transaction for a Broker Dealer or a ‘‘Professional’’     (collectively, ‘‘Routing Costs’’). The
                                                                                                          as defined in Exchange Rule 16.1.
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                                                                             7 ‘‘Penny Pilot Securities’’ are those issues quoted
                                                                                                                                                                    Exchange then monitors the fees
                                                    1 15 U.S.C. 78s(b)(1).
                                                                                                          pursuant to Exchange Rule 21.5, Interpretation and
                                                                                                                                                                    charged as compared to the costs of its
                                                    2 17 CFR 240.19b–4.                                   Policy .01.                                               routing services and adjusts its routing
                                                    3 15 U.S.C. 78s(b)(3)(A)(ii).
                                                                                                             8 ISOs directed to Nasdaq OMX BX LLC (‘‘Nasdaq
                                                    4 17 CFR 240.19b–4(f)(2).
                                                                                                          BX’’) in non-Penny Pilot Securities which yield fee         9 The Exchange does not propose to amend the
                                                    5 The term ‘‘Member’’ is defined as ‘‘any             code D2 and ISOs directed to the C2 Options               fees charged for ISOs directed to Nasdaq BX in non-
                                                  registered broker or dealer that has been admitted      Exchange, Inc. (‘‘C2’’) and Nasdaq OMX PHLX LLC           Penny Pilot Securities which yield fee code D2 and
                                                  to membership in the Exchange.’’ See Exchange           (‘‘Nasdaq PHLX’’) which yield fee code D3 are             ISOs directed to the C2 and Nasdaq PHLX which
                                                  Rule 1.5(n).                                            charged $0.95 per contract.                               yield fee code D3.



                                             VerDate Sep<11>2014   13:31 Dec 24, 2015   Jkt 238001   PO 00000   Frm 00088   Fmt 4703   Sfmt 4703   E:\FR\FM\28DEN1.SGM      28DEN1



Document Created: 2018-03-02 09:23:55
Document Modified: 2018-03-02 09:23:55
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 80830 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR