80 FR 9837 - 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 36 (February 24, 2015)
Federal Register Volume 80, Issue 36 (February 24, 2015)
| Page Range | 9837-9839 | |
| FR Document | 2015-03659 |
[Federal Register Volume 80, Number 36 (Tuesday, February 24, 2015)] [Notices] [Pages 9837-9839] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-03659] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74288; File No. SR-MIAX-2015-08] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule February 18, 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 February 5, 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 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 the Priority Customer Rebate Program (the ``Program'') \3\ to amend the option classes that qualify for the enhanced per contract credit for transactions in MIAX Select Symbols.\4\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release Nos. 73328 (October 9, 2014), 79 FR 62230 (October 16, 2014) (SR-MIAX-2014-50); 72567 (July 8, 2014), 79 FR 40818 (July 14, 2014) (SR-MIAX-2014-34); 72356 (June 10, 2014), 79 FR 34384 (June 16, 2014) (SR-MIAX-2014-26); 71698 (March 12, 2014), 79 FR 15185 (March 18, 2014) (SR-MIAX-2014-12); 71700 (March 12, 2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-2014- 13); 71283 (January 10, 2014), 79 FR 2914 (January 16, 2014) (SR- MIAX-2013-63); 71009 (December 6, 2013), 78 FR 75629 (December 12, 2013) (SR-MIAX-2013-56). \4\ The term ``MIAX Select Symbols'' currently means options overlying AA, AAL, AAPL, AIG, AMZN, AZN, BABA, BP, C, CBS, CLF, CMCSA, EBAY, EEM, EFA, EWJ, FB, FCX, FXI, GE, GILD, GLD, GM, GOOG, GOOGL, HTZ, INTC, IWM, IYR, JCP, JPM, KO, MO, MRK, NFLX, NOK, NQ, PBR, PCLN, PFE, PG, QCOM, QQQ, S, SIRI, SPY, SUNE, T, TSLA, USO, VALE, WAG, WFC, WMB, WY, XHB, XLE, XLF, XLP, XLU and XOM. --------------------------------------------------------------------------- Under the Program, the Exchange credits each Member the per contract amount set forth in the Fee Schedule resulting from each Priority Customer \5\ order transmitted by that Member which is executed on the Exchange in all multiply-listed option classes (excluding mini-options, Priority Customer-to-Priority Customer Orders, PRIME AOC Responses, PRIME Contra-side Orders, PRIME Orders for which both the Agency and Contra-side Order are Priority Customers, and executions related to contracts that are routed to one or more exchanges in connection with the Options Order Protection and Locked/ Crossed Market Plan referenced in MIAX Rule 1400), provided the Member meets certain volume thresholds in a month. For each Priority Customer order submitted into the PRIME Auction as a PRIME Agency Order, MIAX shall credit each member at the separate per contract rate for PRIME Agency Orders; however, no rebates will be paid if the PRIME Agency Order executes against a Contra-side Order which is also a Priority Customer. The volume thresholds are calculated based on the customer average daily volume over the course of the month. Volume is recorded for and credits are delivered to the Member Firm that submits the order to the Exchange. The Exchange aggregates the contracts resulting from Priority Customer orders transmitted and executed electronically on the Exchange from affiliated Members for purposes of the thresholds above, provided there is at least 75% common ownership between the firms as reflected on each firm's Form BD, Schedule A. In the event of a MIAX System outage or other interruption of electronic trading on MIAX, the Exchange adjusts the national customer volume in multiply-listed options for the duration of the outage. A Member may request to receive its credit under the Program as a separate direct payment. --------------------------------------------------------------------------- \5\ The term ``Priority Customer'' means a person or entity that (i) is not a broker or dealer in securities, and (ii) does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial accounts(s). See MIAX Rule 100. --------------------------------------------------------------------------- The Exchange proposes modifying the Program to amend the option classes that qualify for a per contract credit for transactions in MIAX Select Symbols. MIAX Select Symbols currently include options overlying AA, AAL, AAPL, AIG, AMZN, AZN, BABA, BP, C, CBS, CLF, CMCSA, EBAY, EEM, EFA, EWJ, FB, FCX, FXI, GE, GILD, GLD, GM, GOOG, GOOGL, HTZ, INTC, IWM, IYR, JCP, JPM, KO, MO, MRK, NFLX, NOK, NQ, PBR, PCLN, PFE, PG, QCOM, QQQ, S, SIRI, SPY, SUNE, T, TSLA, USO, VALE, WAG, WFC, WMB, WY, XHB, XLE, XLF, XLP, XLU and XOM. The Exchange proposes to modify the MIAX Select Symbols to add AMAT, AMD, BA, BBRY, BIDU, CAT, CELG, CVX, DAL, GPRO, HAL, JNJ, KMI, ORCL, RIG, VXX, X, XOP, and YHOO. The Exchange also proposes to modify the MIAX Select Symbols to remove AZN, CMCSA, EFA, EWJ, FXI, GOOG, IYR, PCLN, SIRI, and XLU. Thus, the Exchange will credit each Member the per contract rate set forth in the table located in the Fee Schedule resulting from each Priority Customer order transmitted by that Member executed on Exchange in AA, AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT, CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, SUNE, T, TSLA, USO, VALE, VXX, WAG, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM, XOP, and YHOO. The per contract credit would be in lieu of the applicable credit that would otherwise apply to the transaction based on the volume thresholds. The Exchange notes that all the other aspects of the Program would continue to apply to the credits (e.g., the aggregation of volume of affiliates, exclusion of contracts that are routed to away [[Page 9838]] exchanges, exclusion of mini-options . . . etc.).\6\ --------------------------------------------------------------------------- \6\ See MIAX Options Fee Schedule, p. 3. See also Securities Exchange Act Release Nos. 72798 (August 8, 2014), 79 FR 47695 (August 14, 2014) (SR-MIAX-2014-41); 72567 (July 8, 2014), 79 FR 40818 (July 14, 2014) (SR-MIAX-2014-34); 72356 (June 10, 2014), 79 FR 34384 (June 16, 2014) (SR-MIAX-2014-26); 71698 (March 12, 2014), 79 FR 15185 (March 18, 2014) (SR-MIAX-2014-12); 71700 (March 12, 2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13); 71283 (January 10, 2014), 79 FR 2914 (January 16, 2014) (SR-MIAX-2013-63); 71009 (December 6, 2013), 78 FR 75629 (December 12, 2013) (SR-MIAX- 2013-56). --------------------------------------------------------------------------- For example, if Member Firm ABC, Inc. (``ABC'') has enough Priority Customer contracts to achieve 0.5% of the national customer volume in multiply-listed option contracts during the month of October, ABC will receive a credit of $0.15 for each Priority Customer contract executed in the month of October. However, any qualifying Priority Customer transactions during such month that occurred in AA, AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT, CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, SUNE, T, TSLA, USO, VALE, VXX, WAG, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM, XOP, and YHOO would be credited at the $0.20 per contact rate versus the standard credit of $0.15. Similarly, if Member Firm XYZ, Inc. (``XYZ'') has enough Priority Customer contracts to achieve 2.5% of the national customer volume in multiply-listed option contracts during the month of October, XYZ will receive a credit of $0.18 for each Priority Customer contract executed in the month of October. However, any qualifying Priority Customer transactions during such month that occurred in AA, AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT, CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, SUNE, T, TSLA, USO, VALE, VXX, WAG, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM, XOP, and YHOO would be credited at the $0.20 per contact rate versus the standard credit of $0.18. The purpose of the amendment to the Program is to further encourage Members to direct greater Priority Customer trade volume to the Exchange in these high volume symbols. Increased Priority Customer volume will provide for greater liquidity, which benefits all market participants on the Exchange. The practice of incentivizing increased retail customer order flow in order to attract professional liquidity providers (Market-Makers) is, and has been, commonly practiced in the options markets. As such, marketing fee programs,\7\ and customer posting incentive programs,\8\ are based on attracting public customer order flow. The practice of providing additional incentives to increase order flow in high volume symbols is, and has been, commonly practiced in the options markets.\9\ The Program similarly intends to attract Priority Customer order flow, which will increase liquidity, thereby providing greater trading opportunities and tighter spreads for other market participants and causing a corresponding increase in order flow from such other market participants in these select symbols. Increasing the number of orders sent to the Exchange will in turn provide tighter and more liquid markets, and therefore attract more business overall. --------------------------------------------------------------------------- \7\ See MIAX Fee Schedule, Section 1(b). \8\ See NYSE Arca, Inc. Fees Schedule, page 4 (section titled ``Customer Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues''). \9\ See International Securities Exchange, LLC, Schedule of Fees, p. 6 (providing reduced fee rates for order flow in Select Symbols); NASDAQ OMX PHLX, Pricing Schedule, Section I (providing a rebate for adding liquidity in SPY); NYSE Arca, Inc. Fees Schedule, page 4 (section titled ``Customer Monthly Posting Credit Tiers and Qualifications for Executions in Penny Pilot Issues''). --------------------------------------------------------------------------- The credits paid out as part of the program will be drawn from the general revenues of the Exchange.\10\ The Exchange calculates volume thresholds on a monthly basis. --------------------------------------------------------------------------- \10\ Despite providing credits under the Program, the Exchange represents that it will continue to have adequate resources to fund its regulatory program and fulfill its responsibilities as a self- regulatory organization while the Program will be in effect. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposed rule change is consistent with Section 6(b) of the Act \11\ in general, and furthers the objectives of Section 6(b)(4) of the Act \12\ in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b). \12\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the proposal to modify the Program to expand the number of option classes that qualify for the credit for transactions in MIAX Select Symbols is fair, equitable and not unreasonably discriminatory. The credit for transactions in the select symbols is reasonably designed because it will incent providers of Priority Customer order flow to send that Priority Customer order flow to the Exchange in order to receive a credit in a manner that enables the Exchange to improve its overall competitiveness and strengthen its market quality for all market participants. The Program which provides increased incentives in high volume select symbols is also reasonably designed to increase the competitiveness of the Exchange with other options exchanges that also offer increased incentives to higher volume symbols. The proposed changes to the rebate Program are fair and equitable and not unreasonably discriminatory because it will apply equally to all Priority Customer orders in the select symbols. All similarly situated Priority Customer orders in the select symbols are subject to the same rebate schedule, and access to the Exchange is offered on terms that are not unfairly discriminatory. In addition, the Program is equitable and not unfairly discriminatory because, while only Priority Customer order flow qualifies for the Program, an increase in Priority Customer order flow will bring greater volume and liquidity, which benefit all market participants by providing more trading opportunities and tighter spreads. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes that the proposed change would increase both intermarket and intramarket competition by incenting Members to direct their Priority Customer orders in the select symbols to the Exchange, which will enhance the quality of quoting and increase the volume of contracts traded here in those symbols. To the extent that there is additional competitive burden on non-Priority Customers or trading in non-select symbols, the Exchange believes that this is appropriate because the proposed changes to the rebate program should incent Members to direct additional order flow to the Exchange and thus provide additional liquidity that enhances the quality of its markets and increases the volume of contracts traded here in those symbols. To the extent that this purpose is achieved, all the Exchange's market participants should benefit from the improved market liquidity in such select symbols. Enhanced market [[Page 9839]] 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 in such select symbols. 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 to the Exchange. The Exchange believes that the proposed rule change reflects this competitive environment because it reduces the Exchange's fees in a manner that encourages market participants to direct their customer order flow, to provide liquidity, and to attract additional transaction volume to the Exchange. Given the robust competition for volume among options markets, many of which offer the same products, implementing a volume based customer rebate program to attract order flow like the one being proposed in this filing is consistent with the above-mentioned goals of the Act. This is especially true for the smaller options markets, such as MIAX, which is competing for volume with much larger exchanges that dominate the options trading industry. MIAX has a nominal percentage of the average daily trading volume in options, so it is unlikely that the customer rebate program could cause any competitive harm to the options market or to market participants. Rather, the customer rebate program is a modest attempt by a small options market to attract order volume away from larger competitors by adopting an innovative pricing strategy. The Exchange notes that if the rebate program resulted in a modest percentage increase in the average daily trading volume in options executing on MIAX, while such percentage would represent a large volume increase for MIAX, it would represent a minimal reduction in volume of its larger competitors in the industry. The Exchange believes that the proposal will help further competition, because market participants will have yet another additional option in determining where to execute orders and post liquidity if they factor the benefits of a customer rebate program into the determination. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\13\ 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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-2015-08 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-2015-08. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-MIAX-2015-08 and should be submitted on or before March 17, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-03659 Filed 2-23-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices 9837
A. Self-Regulatory Organization’s Exchange. The Exchange aggregates the
Brent J. Fields, Statement of the Purpose of, and contracts resulting from Priority
Secretary. Statutory Basis for, the Proposed Rule Customer orders transmitted and
[FR Doc. 2015–03656 Filed 2–23–15; 8:45 am]
Change executed electronically on the Exchange
BILLING CODE 8011–01–P 1. Purpose from affiliated Members for purposes of
the thresholds above, provided there is
The Exchange proposes to amend the at least 75% common ownership
Priority Customer Rebate Program (the
SECURITIES AND EXCHANGE between the firms as reflected on each
‘‘Program’’) 3 to amend the option
COMMISSION firm’s Form BD, Schedule A. In the
classes that qualify for the enhanced per
event of a MIAX System outage or other
contract credit for transactions in MIAX
[Release No. 34–74288; File No. SR–MIAX– Select Symbols.4 interruption of electronic trading on
2015–08] Under the Program, the Exchange MIAX, the Exchange adjusts the
credits each Member the per contract national customer volume in multiply-
Self-Regulatory Organizations; Miami amount set forth in the Fee Schedule listed options for the duration of the
International Securities Exchange LLC; resulting from each Priority Customer 5 outage. A Member may request to
Notice of Filing and Immediate order transmitted by that Member which receive its credit under the Program as
Effectiveness of a Proposed Rule is executed on the Exchange in all a separate direct payment.
Change To Amend Its Fee Schedule multiply-listed option classes The Exchange proposes modifying the
(excluding mini-options, Priority Program to amend the option classes
February 18, 2015. Customer-to-Priority Customer Orders, that qualify for a per contract credit for
Pursuant to the provisions of Section PRIME AOC Responses, PRIME Contra- transactions in MIAX Select Symbols.
19(b)(1) of the Securities Exchange Act side Orders, PRIME Orders for which MIAX Select Symbols currently include
of 1934 (‘‘Act’’) 1 and Rule 19b–4 both the Agency and Contra-side Order options overlying AA, AAL, AAPL, AIG,
thereunder,2 notice is hereby given that are Priority Customers, and executions
AMZN, AZN, BABA, BP, C, CBS, CLF,
on February 5, 2015, Miami related to contracts that are routed to
CMCSA, EBAY, EEM, EFA, EWJ, FB,
International Securities Exchange LLC one or more exchanges in connection
FCX, FXI, GE, GILD, GLD, GM, GOOG,
(‘‘MIAX’’ or ‘‘Exchange’’) filed with the with the Options Order Protection and
Locked/Crossed Market Plan referenced GOOGL, HTZ, INTC, IWM, IYR, JCP,
Securities and Exchange Commission
in MIAX Rule 1400), provided the JPM, KO, MO, MRK, NFLX, NOK, NQ,
(‘‘Commission’’) a proposed rule change
Member meets certain volume PBR, PCLN, PFE, PG, QCOM, QQQ, S,
as described in Items I, II, and III below,
thresholds in a month. For each Priority SIRI, SPY, SUNE, T, TSLA, USO, VALE,
which Items have been prepared by the
Exchange. The Commission is Customer order submitted into the WAG, WFC, WMB, WY, XHB, XLE,
publishing this notice to solicit PRIME Auction as a PRIME Agency XLF, XLP, XLU and XOM. The
comments on the proposed rule change Order, MIAX shall credit each member Exchange proposes to modify the MIAX
from interested persons. at the separate per contract rate for Select Symbols to add AMAT, AMD,
PRIME Agency Orders; however, no BA, BBRY, BIDU, CAT, CELG, CVX,
I. Self-Regulatory Organization’s rebates will be paid if the PRIME DAL, GPRO, HAL, JNJ, KMI, ORCL, RIG,
Statement of the Terms of Substance of Agency Order executes against a Contra- VXX, X, XOP, and YHOO. The
the Proposed Rule Change side Order which is also a Priority Exchange also proposes to modify the
Customer. The volume thresholds are MIAX Select Symbols to remove AZN,
The Exchange is filing a proposal to calculated based on the customer CMCSA, EFA, EWJ, FXI, GOOG, IYR,
amend the MIAX Options Fee Schedule. average daily volume over the course of
The text of the proposed rule change is PCLN, SIRI, and XLU. Thus, the
the month. Volume is recorded for and Exchange will credit each Member the
available on the Exchange’s Web site at credits are delivered to the Member
http://www.miaxoptions.com/filter/ per contract rate set forth in the table
Firm that submits the order to the located in the Fee Schedule resulting
wotitle/rule_filing, at MIAX’s principal
office, and at the Commission’s Public from each Priority Customer order
3 See Securities Exchange Act Release Nos. 73328
Reference Room. transmitted by that Member executed on
(October 9, 2014), 79 FR 62230 (October 16, 2014)
(SR–MIAX–2014–50); 72567 (July 8, 2014), 79 FR Exchange in AA, AAL, AAPL, AIG,
II. Self-Regulatory Organization’s 40818 (July 14, 2014) (SR–MIAX–2014–34); 72356 AMAT, AMD, AMZN, BA, BABA,
Statement of the Purpose of, and (June 10, 2014), 79 FR 34384 (June 16, 2014) (SR– BBRY, BIDU, BP, C, CAT, CBS, CELG,
Statutory Basis for, the Proposed Rule MIAX–2014–26); 71698 (March 12, 2014), 79 FR
15185 (March 18, 2014) (SR–MIAX–2014–12); CLF, CVX, DAL, EBAY, EEM, FB, FCX,
Change 71700 (March 12, 2014), 79 FR 15188 (March 18, GE, GILD, GLD, GM, GOOGL, GPRO,
2014) (SR–MIAX–2014–13); 71283 (January 10, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM,
In its filing with the Commission, the 2014), 79 FR 2914 (January 16, 2014) (SR–MIAX– KMI, KO, MO, MRK, NFLX, NOK, NQ,
Exchange included statements 2013–63); 71009 (December 6, 2013), 78 FR 75629
(December 12, 2013) (SR–MIAX–2013–56). ORCL, PBR, PFE, PG, QCOM, QQQ, RIG,
concerning the purpose of and basis for
the proposed rule change and discussed
4 The term ‘‘MIAX Select Symbols’’ currently S, SPY, SUNE, T, TSLA, USO, VALE,
any comments it received on the
means options overlying AA, AAL, AAPL, AIG, VXX, WAG, WFC, WMB, WY, X, XHB,
AMZN, AZN, BABA, BP, C, CBS, CLF, CMCSA, XLE, XLF, XLP, XOM, XOP, and YHOO.
proposed rule change. The text of these EBAY, EEM, EFA, EWJ, FB, FCX, FXI, GE, GILD,
statements may be examined at the GLD, GM, GOOG, GOOGL, HTZ, INTC, IWM, IYR, The per contract credit would be in lieu
places specified in Item IV below. The JCP, JPM, KO, MO, MRK, NFLX, NOK, NQ, PBR, of the applicable credit that would
PCLN, PFE, PG, QCOM, QQQ, S, SIRI, SPY, SUNE, otherwise apply to the transaction based
tkelley on DSK3SPTVN1PROD with NOTICES
Exchange has prepared summaries, set T, TSLA, USO, VALE, WAG, WFC, WMB, WY,
forth in sections A, B, and C below, of XHB, XLE, XLF, XLP, XLU and XOM.
on the volume thresholds. The
the most significant aspects of such 5 The term ‘‘Priority Customer’’ means a person Exchange notes that all the other aspects
statements. or entity that (i) is not a broker or dealer in of the Program would continue to apply
securities, and (ii) does not place more than 390 to the credits (e.g., the aggregation of
orders in listed options per day on average during
1 15 U.S.C. 78s(b)(1). a calendar month for its own beneficial accounts(s).
volume of affiliates, exclusion of
2 17 CFR 240.19b–4. See MIAX Rule 100. contracts that are routed to away
VerDate Sep<11>2014 17:31 Feb 23, 2015 Jkt 235001 PO 00000 Frm 00150 Fmt 4703 Sfmt 4703 E:\FR\FM\24FEN1.SGM 24FEN1](https://thefederalregister.org/doc/80_FR_9873/page/1.svg)
![Federal Register / Vol. 80, No. 36 / Tuesday, February 24, 2015 / Notices 9839
quality and increased transaction III. Date of Effectiveness of the Washington, DC 20549, on official
volume that results from the anticipated Proposed Rule Change and Timing for business days between the hours of
increase in order flow directed to the Commission Action 10:00 a.m. and 3:00 p.m. Copies of such
Exchange will benefit all market The foregoing rule change has become filing also will be available for
participants and improve competition effective pursuant to Section inspection and copying at the principal
on the Exchange in such select symbols. 19(b)(3)(A)(ii) of the Act.13 At any time office of the Exchange. All comments
The Exchange notes that it operates in within 60 days of the filing of the received will be posted without change;
a highly competitive market in which proposed rule change, the Commission the Commission does not edit personal
market participants can readily favor summarily may temporarily suspend identifying information from
competing venues if they deem fee such rule change if it appears to the submissions. You should submit only
levels at a particular venue to be Commission that such action is information that you wish to make
excessive. In such an environment, the necessary or appropriate in the public available publicly. All submissions
Exchange must continually adjust its interest, for the protection of investors, should refer to File Number SR–MIAX–
fees to remain competitive with other or otherwise in furtherance of the 2015–08 and should be submitted on or
exchanges and to attract order flow to purposes of the Act. If the Commission before March 17, 2015.
the Exchange. The Exchange believes takes such action, the Commission shall For the Commission, by the Division of
that the proposed rule change reflects institute proceedings to determine Trading and Markets, pursuant to delegated
this competitive environment because it whether the proposed rule should be authority.14
reduces the Exchange’s fees in a manner approved or disapproved. Brent J. Fields,
that encourages market participants to Secretary.
direct their customer order flow, to IV. Solicitation of Comments [FR Doc. 2015–03659 Filed 2–23–15; 8:45 am]
provide liquidity, and to attract Interested persons are invited to BILLING CODE 8011–01–P
additional transaction volume to the submit written data, views and
Exchange. Given the robust competition arguments concerning the foregoing,
for volume among options markets, including whether the proposed rule SECURITIES AND EXCHANGE
many of which offer the same products, change is consistent with the Act. COMMISSION
implementing a volume based customer Comments may be submitted by any of [Release No. 34–74296; File No. SR–EDGX–
rebate program to attract order flow like the following methods: 2015–10]
the one being proposed in this filing is
consistent with the above-mentioned Electronic Comments
Self-Regulatory Organizations; EDGX
goals of the Act. This is especially true • Use the Commission’s Internet Exchange, Inc.; Notice of Filing and
for the smaller options markets, such as comment form (http://www.sec.gov/ Immediate Effectiveness of a Proposed
MIAX, which is competing for volume rules/sro.shtml); or Rule Change To Amend Rule 8.15
with much larger exchanges that • Send an email to rule-comments@ Entitled ‘‘Imposition of Fines for Minor
dominate the options trading industry. sec.gov. Please include File Number SR– Violation(s) of Rules’’
MIAX has a nominal percentage of the MIAX–2015–08 on the subject line.
average daily trading volume in options, February 18, 2015.
so it is unlikely that the customer rebate Paper Comments Pursuant to Section 19(b)(1) of the
program could cause any competitive • Send paper comments in triplicate Securities Exchange Act of 1934 (the
harm to the options market or to market to Brent J. Fields, Secretary, Securities ‘‘Act’’),1 and Rule 19b–4 thereunder,2
participants. Rather, the customer rebate and Exchange Commission, 100 F Street notice is hereby given that on February
program is a modest attempt by a small NE., Washington, DC 20549. 5, 2015, EDGX Exchange, Inc. (the
options market to attract order volume All submissions should refer to File ‘‘Exchange’’ or ‘‘EDGX’’) filed with the
away from larger competitors by Number SR–MIAX–2015–08. This file Securities and Exchange Commission
adopting an innovative pricing strategy. number should be included on the (‘‘Commission’’) the proposed rule
The Exchange notes that if the rebate subject line if email is used. To help the change as described in Items I and II
program resulted in a modest percentage Commission process and review your below, which Items have been prepared
increase in the average daily trading comments more efficiently, please use by the Exchange. The Exchange has
volume in options executing on MIAX, only one method. The Commission will designated this proposal as a ‘‘non-
while such percentage would represent post all comments on the Commission’s controversial’’ proposed rule change
a large volume increase for MIAX, it Internet Web site (http://www.sec.gov/ pursuant to Section 19(b)(3)(A) of the
would represent a minimal reduction in rules/sro.shtml). Copies of the Act 3 and Rule 19b–4(f)(6)(iii)
volume of its larger competitors in the submission, all subsequent thereunder,4 which renders it effective
industry. The Exchange believes that the amendments, all written statements upon filing with the Commission. The
proposal will help further competition, with respect to the proposed rule Commission is publishing this notice to
because market participants will have change that are filed with the solicit comments on the proposed rule
yet another additional option in Commission, and all written change from interested persons.
determining where to execute orders communications relating to the I. Self-Regulatory Organization’s
and post liquidity if they factor the proposed rule change between the Statement of the Terms of Substance of
benefits of a customer rebate program Commission and any person, other than the Proposed Rule Change
into the determination. those that may be withheld from the The Exchange filed a proposal to
tkelley on DSK3SPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s public in accordance with the amend Rule 8.15 entitled ‘‘Imposition of
Statement on Comments on the provisions of 5 U.S.C. 552, will be
Proposed Rule Change Received From available for Web site viewing and 14 17 CFR 200.30–3(a)(12).
Members, Participants or Others printing in the Commission’s Public 1 15 U.S.C. 78s(b)(1).
Reference Room, 100 F Street NE., 2 17 CFR 240.19b–4.
Written comments were neither 3 15 U.S.C. 78s(b)(3)(A).
solicited nor received. 13 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(6)(iii).
VerDate Sep<11>2014 17:31 Feb 23, 2015 Jkt 235001 PO 00000 Frm 00152 Fmt 4703 Sfmt 4703 E:\FR\FM\24FEN1.SGM 24FEN1](https://thefederalregister.org/doc/80_FR_9873/page/3.svg)
Document Created: 2015-12-18 13:23:37
Document Modified: 2015-12-18 13:23:37
| 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 9837 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR