81 FR 37219 - 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 81, Issue 111 (June 9, 2016)

Page Range		37219-37220
FR Document		2016-13612
Federal Register, Volume 81 Issue 111 (Thursday, June 9, 2016)
[Federal Register Volume 81, Number 111 (Thursday, June 9, 2016)]
[Notices]
[Pages 37219-37220]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-13612]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77989; File No. SR-MIAX-2016-13]


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

June 3, 2016.
    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 June 1, 2016, Miami International Securities 
Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') a proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the Exchange. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Fee Schedule to offer a 
Technical Support Request Fee to both Members and Non-Members.
    The Exchange has an infrastructure comprised of low latency and 
ultra-low latency proximity solutions in several offsite data center 
locales offering universal access to all Exchange services via a single 
common connection across a variety of high speed network interfaces.
    The Exchange offers connectivity in and between its data center 
facilities and supports direct attachment of all network equipment or 
direct attached host systems of both Member and Non-Member users of the 
Exchange. Member and Non-Member users of the Exchange are strongly 
encouraged to establish connectivity to at least two data centers to 
minimize the possibility of service disruption.
    The Exchange proposes to add new Section (5)(f) to the Fee Schedule 
to establish a Member and Non-Member Technical Support Request Fee. 
Specifically, the Exchange proposes to charge Members and Non-Members 
an hourly fee in the event that such Member or Non-Member requests the 
Exchange to use the Exchange's on-site data center personnel to provide 
technical support at any of the Exchange's data centers. The Exchange 
proposes to assess Members and Non-Members that request MIAX technical 
support at any of the MIAX data centers a fee of $200 per hour for such 
technical support.
    The purpose of the proposed rule change is to make the Exchange's 
on-site data center personnel available, for a fee, to Members and Non-
Members when assisting with troubleshooting that requires a physical 
on-site presence.
    The proposed Technical Support Request fee is scheduled to become 
effective June 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 \3\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \4\ 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.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposed new service is consistent 
with Section 6(b)(5) of the Act \5\ in that it is fair, equitable and 
not unreasonably discriminatory, because it is available to all Members 
and Non-Members for the

[[Page 37220]]

same fee. Moreover, the proposed fee is reasonable because other 
exchanges charge for similar services at their data centers.\6\
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    \5\ 15 U.S.C. 78f(b)(5).
    \6\ See Chicago Board Options Exchange, Incorporated (``CBOE'') 
Fees Schedule, p. 9. CBOE charges $100 per hour for technical 
support outside normal hours and for after-hours technician services 
with a four hour minimum required. See also NYSE Amex Options 
(``Amex'') Fee Schedule, Section V(B) and NYSE Arca Options 
(``Arca'') Fees and Charges, p. 18. Both Amex and Arca charge $100 
per half hour for ``Hot Hands Services,'' which consists of allowing 
Amex and Arca Users to use Amex or Arca on-site data center 
personnel to maintain User equipment, support network 
troubleshooting, rack and stack, power recycling and install and 
document cable. See also NASDAQ PHLX LLC (``Phlx'') Pricing 
Schedule, Section X(d). Phlx charges $150 per hour for ``Remote 
Hands Service'' and $250 per hour plus materials if necessary for 
``Power Consulting Services.''
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    Additionally, Members and Non-Members are not required to use the 
service but instead it is offered as a convenience to all Members and 
Non-Members. The proposed fee is reasonably designed because it will 
permit both Members and Non-Members to request the use of the 
Exchange's on-site data center personnel as technical support and as a 
convenience that is equally available to them.

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 proposed 
enhancement of services by the Exchange provided to its Members and 
others using its facilities will not have an impact on competition. In 
fact, MIAX's proposed technical support services at a Member or Non-
Member's request will benefit all who use such services. As stated 
above, other exchanges charge for similar services at their data 
centers.\7\ The Exchange's hourly rate for such services is within the 
range of prices for similar services offered by other exchanges, and 
therefore the Exchange believes that the proposed hourly rate for 
technical support does not impose a burden on competition.\8\
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    \7\ Id.
    \8\ See id.
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    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 and rebates 
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 the hourly rate is 
competitive with the rates offered by other exchanges for similar 
services.\9\
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    \9\ See supra note 6.
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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,\10\ and Rule 19b-4(f)(2) \11\ 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.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MIAX-2016-13 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-MIAX-2016-13. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-MIAX-2016-13, and should be 
submitted on or beforeJune 30, 2016 June 30, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-13612 Filed 6-8-16; 8:45 am]
 BILLING CODE 8011-01-P
37220 Federal Register / Vol. 81, No. 111 / Thursday, June 9, 2016 / Notices

same fee. Moreover, the proposed fee is rule change reflects this competitive submission, all subsequent
reasonable because other exchanges environment because the hourly rate is amendments, all written statements
charge for similar services at their data competitive with the rates offered by with respect to the proposed rule
centers.6 other exchanges for similar services.9 change that are filed with the
Additionally, Members and Non- Commission, and all written
C. Self-Regulatory Organization’s
Members are not required to use the communications relating to the
Statement on Comments on the
service but instead it is offered as a proposed rule change between the
Proposed Rule Change Received From
convenience to all Members and Non- Commission and any person, other than
Members, Participants, or Others
Members. The proposed fee is those that may be withheld from the
reasonably designed because it will Written comments were neither public in accordance with the
permit both Members and Non-Members solicited nor received. provisions of 5 U.S.C. 552, will be
to request the use of the Exchange’s on- III. Date of Effectiveness of the available for Web site viewing and
site data center personnel as technical Proposed Rule Change and Timing for printing in the Commission’s Public
support and as a convenience that is Commission Action Reference Room, 100 F Street NE.,
equally available to them. Washington, DC 20549, on official
The foregoing rule change has become business days between the hours of
B. Self-Regulatory Organization’s effective pursuant to Section 10:00 a.m. and 3:00 p.m. Copies of the
Statement on Burden on Competition 19(b)(3)(A)(ii) of the Act,10 and Rule filing also will be available for
The Exchange does not believe that 19b–4(f)(2) 11 thereunder. At any time inspection and copying at the principal
the proposed rule change will result in within 60 days of the filing of the office of the Exchange. All comments
any burden on competition that is not proposed rule change, the Commission received will be posted without change;
necessary or appropriate in furtherance summarily may temporarily suspend the Commission does not edit personal
of the purposes of the Act. The such rule change if it appears to the identifying information from
proposed enhancement of services by Commission that such action is submissions. You should submit only
the Exchange provided to its Members necessary or appropriate in the public information that you wish to make
and others using its facilities will not interest, for the protection of investors, available publicly. All submissions
have an impact on competition. In fact, or otherwise in furtherance of the should refer to File Number SR–MIAX–
MIAX’s proposed technical support purposes of the Act. If the Commission 2016–13, and should be submitted on or
services at a Member or Non-Member’s takes such action, the Commission shall beforeJune 30, 2016 June 30, 2016.
request will benefit all who use such institute proceedings to determine
For the Commission, by the Division of
services. As stated above, other whether the proposed rule should be Trading and Markets, pursuant to delegated
exchanges charge for similar services at approved or disapproved. authority.12
their data centers.7 The Exchange’s IV. Solicitation of Comments Brent J. Fields,
hourly rate for such services is within Secretary.
the range of prices for similar services Interested persons are invited to
submit written data, views, and [FR Doc. 2016–13612 Filed 6–8–16; 8:45 am]
offered by other exchanges, and
therefore the Exchange believes that the arguments concerning the foregoing, BILLING CODE 8011–01–P

proposed hourly rate for technical including whether the proposed rule
support does not impose a burden on change is consistent with the Act.
Comments may be submitted by any of SECURITIES AND EXCHANGE
competition.8 COMMISSION
The Exchange notes that it operates in the following methods:
a highly competitive market in which [Release No. 34–77988; File No. SR–FICC–
Electronic Comments
market participants can readily favor 2016–001]
• Use the Commission’s Internet
competing venues if they deem fee Self-Regulatory Organizations; Fixed
comment form (http://www.sec.gov/
levels at a particular venue to be Income Clearing Corporation; Order
rules/sro.shtml); or
excessive. In such an environment, the
• Send an email to rule-comments@ Approving Proposed Rule Change
Exchange must continually adjust its Relating to the GCF Repo® Service
sec.gov. Please include File Number SR–
fees and rebates to remain competitive
MIAX–2016–13 on the subject line.
with other exchanges and to attract June 3, 2016.
order flow to the Exchange. The Paper Comments On April 19, 2016, the Fixed Income
Exchange believes that the proposed • Send paper comments in triplicate Clearing Corporation (‘‘FICC’’ or the
to Secretary, Securities and Exchange ‘‘Corporation’’) filed with the Securities
6 See Chicago Board Options Exchange,
Commission, 100 F Street NE., and Exchange Commission
Incorporated (‘‘CBOE’’) Fees Schedule, p. 9. CBOE
charges $100 per hour for technical support outside Washington, DC 20549–1090. (‘‘Commission’’) proposed rule change
normal hours and for after-hours technician SR–FICC–2016–001 pursuant to Section
All submissions should refer to File
services with a four hour minimum required. See 19(b)(1) of the Securities Exchange Act
also NYSE Amex Options (‘‘Amex’’) Fee Schedule, Number SR–MIAX–2016–13. This file
of 1934 (‘‘Act’’) 1 and Rule 19b–4
Section V(B) and NYSE Arca Options (‘‘Arca’’) Fees number should be included on the
thereunder.2 The proposed rule change
and Charges, p. 18. Both Amex and Arca charge subject line if email is used. To help the
$100 per half hour for ‘‘Hot Hands Services,’’ which was published for comment in the
Commission process and review your
consists of allowing Amex and Arca Users to use Federal Register on April 27, 2016.3
Amex or Arca on-site data center personnel to comments more efficiently, please use
The Commission received no comments
sradovich on DSK3TPTVN1PROD with NOTICES

maintain User equipment, support network only one method. The Commission will
on the proposed rule change. For the
troubleshooting, rack and stack, power recycling post all comments on the Commission’s
and install and document cable. See also NASDAQ Internet Web site (http://www.sec.gov/ 12 17 CFR 200.30–3(a)(12).
PHLX LLC (‘‘Phlx’’) Pricing Schedule, Section X(d).
Phlx charges $150 per hour for ‘‘Remote Hands rules/sro.shtml). Copies of the 1 15 U.S.C. 78s(b)(1).
Service’’ and $250 per hour plus materials if 2 17 CFR 240.19b–4.
necessary for ‘‘Power Consulting Services.’’ 9 See supra note 6. 3 Securities Exchange Act Release No. 34–77675
7 Id. 10 15 U.S.C. 78s(b)(3)(A)(ii). (April 21, 2016), 81 FR 24922 (April 27, 2016) (SR–
8 See id. 11 17 CFR 240.19b–4(f)(2). FICC–2016–001).

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Document Created: 2018-02-08 07:33:51
Document Modified: 2018-02-08 07:33:51
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		81 FR 37219