81 FR 54911 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 517

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 159 (August 17, 2016)

Page Range		54911-54912
FR Document		2016-19578
Federal Register, Volume 81 Issue 159 (Wednesday, August 17, 2016)
[Federal Register Volume 81, Number 159 (Wednesday, August 17, 2016)]
[Notices]
[Pages 54911-54912]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19578]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78547; File No. SR-MIAX-2016-24]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Exchange Rule 517

August 11, 2016.
    Pursuant to 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 August 4, 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.
---------------------------------------------------------------------------

    \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 Exchange Rule 517, Quote 
Types Defined, to adopt new Interpretations and Policies .01 and to 
make a non-substantive technical correction to the Rule. 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 Exchange Rule 517, Quote Types 
Defined, to adopt new Interpretations and Policies .01 to clarify that 
to be considered a priority quote (as described below), a quote for a 
long-term option contract \3\ must meet the priority quote requirements 
established in Rule 517(b). The Exchange also proposes to make a non-
substantive technical correction to section 517(b)(1)(ii) to correct a 
typographical error in the Rule.
---------------------------------------------------------------------------

    \3\ The Exchange may list long-term option contracts that expire 
from twelve (12) to thirty-nine (39) months from the time they are 
listed. See Exchange Rule 406.
---------------------------------------------------------------------------

    For trade allocation purposes, quotes will be considered either 
priority quotes and trade allocation will be in accordance with Rule 
514(e)(1),\4\ or non-priority quotes and trade allocation will be in 
accordance with Rule 514(e)(2),\5\ based upon a Market Maker's quote 
width at certain times.\6\
---------------------------------------------------------------------------

    \4\ After all Priority Customer Orders (if any) at the NBBO have 
been filled, executions at that price will be first allocated to 
other remaining Market Maker priority quotes, which have not 
received a participation entitlement, and have precedence over 
Professional Interest. See Exchange Rule 514(e)(1).
    \5\ If after all Market Maker priority quotes have been filled 
in accordance with Rule 514(e)(1) and there remains interest at the 
NBBO, executions will be allocated to all Professional Interest at 
that price. Professional Interest is defined in Rule 100 and 
includes among other interest, Market Maker non-priority quotes (as 
described in Rule 517(b)(1)(iii)) and Market Maker orders in both 
assigned and non-assigned classes. See Exchange Rule 514(e)(2).
    \6\ See Exchange Rule 517(b)(1).
---------------------------------------------------------------------------

    MIAX Rule 517(b), Quote Priority, describes the requirements for 
quotes on the Exchange to be considered priority quotes for allocation 
purposes. Specifically, MIAX Rule 517(b)(1)(i) establishes the 
standards which must be met to establish a quote as a priority quote at 
the time of execution. First, the bid/ask differential of a Market 
Maker's two-sided quote pair must be valid width (no wider than the 
bid/ask differentials outlined in Rule 603(b)(4)).\7\ Second, the 
initial size of both the Market Maker's bid and the offer must be in 
compliance with the requirements of Rule 604(b)(2).\8\ Third, the bid/
ask differential of a Market Maker's two-sided quote pair must meet the 
priority quote width requirements as defined by rule \9\ for each 
option. Fourth, at the time a locking or crossing quote or order enters 
the System,\10\ the Market Maker's two-sided quote pair must be valid 
width for that option and must have been resting on the Book or,\11\ 
immediately prior to the time the Market Maker enters a new quote that 
locks or crosses the MBBO,\12\ the Market Maker must have had a valid 
width quote already existing (i.e., exclusive of the Market Maker's new 
marketable quote or update) among his two-sided quotes for that 
option.\13\
---------------------------------------------------------------------------

    \7\ A Market Maker is expected to price option contracts fairly 
by, among other things, bidding and offering so as to create 
differences of no more than $5 between the bid and offer (``bid/ask 
differentials'') following the opening rotation in an equity option 
contract. See Exchange Rule 603(b)(4).
    \8\ The initial size of a Market Maker incoming Standard Quote, 
Day eQuote and all other types of eQuotes must be for the minimum 
number of contracts, which minimum number shall be at least one (1) 
contract. The minimum number of contracts will be determined by the 
Exchange on a class-by-class basis and announced to the Members 
through a Regulatory Circular. See Exchange Rule 604(b)(2).
    \9\ The priority quote width standard established by the 
Exchange can have bid/ask differentials as narrow as one MPV, as 
wide but never wider than the bid/ask differentials outlined in Rule 
603(b)(4), or somewhere in between. See Exchange Rule 517(b)(1)(ii).
    \10\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \11\ See Exchange Rule 517(b)(1)(i)(D)(1).
    \12\ The term ``MBBO'' means the bid or offer on the Exchange. 
See Exchange Rule 100.
    \13\ See Exchange Rule 517(b)(1)(i)(D)(2).
---------------------------------------------------------------------------

    The Exchange notes that strike price interval, bid/ask differential 
and continuous quoting requirements do not apply to long-term options 
series until the time to expiration is less than nine (9) months.\14\ 
Notwithstanding these exceptions, any quote (including a quote in a 
long term option) must comply with Rule 517(b) to be considered a 
priority quote. Accordingly, the Exchange proposes to adopt 
Interpretations and Policies .01 to Rule 517 which will expressly state 
that a quote on a long-term option contract must satisfy the 
requirements outlined in Rule 517(b) to be considered a priority quote 
on the Exchange. The Exchange believes that adding proposed 
Interpretations and Policies .01 will clarify the requirements for 
establishing priority quotes for long-term option contracts on the 
Exchange. Further, the Exchange believes that providing additional 
information on how priority quotes are established for options with a 
time to expiration greater than nine (9) months will provide

[[Page 54912]]

additional clarity of Exchange rules regarding priority quotes and 
allocations.
---------------------------------------------------------------------------

    \14\ See Exchange Rule 406.
---------------------------------------------------------------------------

    The Exchange is also proposing to make a technical amendment to 
current Exchange Rule 517(b)(ii) by deleting the repetitive words 
``than the'' from the Rule, which are stated twice consecutively.
2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with 
section 6(b) of the Act \15\ in general, and furthers the objectives of 
section 6(b)(5) of the Act \16\ in particular, in that it is designed 
to prevent fraudulent and manipulative acts and practices, to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanisms of a 
free and open market and a national market system and, in general, to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The proposed rule change is designed to promote just and equitable 
principles of trade by clarifying the operation of Exchange rules to 
ensure that Market Makers have complete information as to how priority 
quotes are established on the Exchange. Further, the proposed rule 
change is designed to remove impediments to and perfect the mechanisms 
of a free and open market and a national market system and, in general, 
to protect investors and the public interest, by providing enhanced 
guidance to Market Makers on establishing priority quotes on options 
with a time to expiration greater than nine (9) months. The Exchange 
believes that the priority quote status afforded to Market Makers 
quoting in long-term options should result in more liquidity and 
tighter spreads in these options. Clarity in the Exchange's rules 
regarding the establishment of priority quote status in long-term 
options benefits and protects the public interest by explicitly stating 
that Market Makers submitting quotes in long-term options can establish 
priority quote status by submitting such quotes with the required bid/
ask differential. This should encourage more Market Makers to submit 
quotes on long-term options to the Exchange, and should thus result in 
better prices and increased liquidity in long-term options.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. Specifically, the Exchange 
believes the proposed changes will not impose any burden on intra-
market competition because it applies to all MIAX participants equally. 
In addition, the Exchange does not believe the proposal will impose any 
burden on inter-market competition as the proposal is intended to 
clarify the operation of existing Exchange rules.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 19(b)(3)(A) of the Act \17\ and Rule 19b-4(f)(6) \18\ 
thereunder.
---------------------------------------------------------------------------

    \17\ 15 U.S.C. 78s(b)(3)(A).
    \18\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-MIAX-2016-24 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-2016-24. 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-2016-24 and should be 
submitted on or before September 7, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
---------------------------------------------------------------------------

    \19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-19578 Filed 8-16-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 159 / Wednesday, August 17, 2016 / Notices 54911

relieved of those regulatory any comments it received on the both the Market Maker’s bid and the
responsibilities allocated to the common proposed rule change. The text of these offer must be in compliance with the
member’s DREA under the amended statements may be examined at the requirements of Rule 604(b)(2).8 Third,
Plan to the extent of such allocation. places specified in Item IV below. The the bid/ask differential of a Market
For the Commission, by the Division of Exchange has prepared summaries, set Maker’s two-sided quote pair must meet
Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of the priority quote width requirements as
authority.20 the most significant aspects of such defined by rule 9 for each option.
Robert W. Errett, statements. Fourth, at the time a locking or crossing
Deputy Secretary. quote or order enters the System,10 the
A. Self-Regulatory Organization’s Market Maker’s two-sided quote pair
[FR Doc. 2016–19582 Filed 8–16–16; 8:45 am] Statement of the Purpose of, and must be valid width for that option and
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule must have been resting on the Book or,11
Change immediately prior to the time the
SECURITIES AND EXCHANGE 1. Purpose Market Maker enters a new quote that
COMMISSION locks or crosses the MBBO,12 the Market
The Exchange proposes to amend
Maker must have had a valid width
[Release No. 34–78547; File No. SR–MIAX– Exchange Rule 517, Quote Types
quote already existing (i.e., exclusive of
2016–24] Defined, to adopt new Interpretations
the Market Maker’s new marketable
and Policies .01 to clarify that to be
Self-Regulatory Organizations; Miami quote or update) among his two-sided
considered a priority quote (as
International Securities Exchange LLC; quotes for that option.13
described below), a quote for a long- The Exchange notes that strike price
Notice of Filing and Immediate term option contract 3 must meet the interval, bid/ask differential and
Effectiveness of a Proposed Rule priority quote requirements established continuous quoting requirements do not
Change To Amend Exchange Rule 517 in Rule 517(b). The Exchange also apply to long-term options series until
proposes to make a non-substantive the time to expiration is less than nine
August 11, 2016.
technical correction to section (9) months.14 Notwithstanding these
Pursuant to section 19(b)(1) of the
517(b)(1)(ii) to correct a typographical exceptions, any quote (including a quote
Securities Exchange Act of 1934
error in the Rule. in a long term option) must comply with
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
For trade allocation purposes, quotes Rule 517(b) to be considered a priority
notice is hereby given that on August 4,
will be considered either priority quotes quote. Accordingly, the Exchange
2016, Miami International Securities
and trade allocation will be in proposes to adopt Interpretations and
Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’)
accordance with Rule 514(e)(1),4 or non- Policies .01 to Rule 517 which will
filed with the Securities and Exchange
priority quotes and trade allocation will expressly state that a quote on a long-
Commission (‘‘Commission’’) a
be in accordance with Rule 514(e)(2),5 term option contract must satisfy the
proposed rule change as described in
based upon a Market Maker’s quote requirements outlined in Rule 517(b) to
Items I, II, and III below, which Items
width at certain times.6 be considered a priority quote on the
have been prepared by the Exchange.
MIAX Rule 517(b), Quote Priority, Exchange. The Exchange believes that
The Commission is publishing this
describes the requirements for quotes on adding proposed Interpretations and
notice to solicit comments on the
the Exchange to be considered priority Policies .01 will clarify the requirements
proposed rule change from interested
quotes for allocation purposes. for establishing priority quotes for long-
persons.
Specifically, MIAX Rule 517(b)(1)(i) term option contracts on the Exchange.
I. Self-Regulatory Organization’s establishes the standards which must be Further, the Exchange believes that
Statement of the Terms of Substance of met to establish a quote as a priority providing additional information on
the Proposed Rule Change quote at the time of execution. First, the how priority quotes are established for
The Exchange is filing a proposal to bid/ask differential of a Market Maker’s options with a time to expiration greater
amend Exchange Rule 517, Quote Types two-sided quote pair must be valid than nine (9) months will provide
Defined, to adopt new Interpretations width (no wider than the bid/ask
and Policies .01 and to make a non- differentials outlined in Rule $5 between the bid and offer (‘‘bid/ask
substantive technical correction to the 603(b)(4)).7 Second, the initial size of differentials’’) following the opening rotation in an
equity option contract. See Exchange Rule
Rule. The text of the proposed rule 3 The Exchange may list long-term option 603(b)(4).
change is available on the Exchange’s contracts that expire from twelve (12) to thirty-nine
8 The initial size of a Market Maker incoming

Web site at http:// (39) months from the time they are listed. See Standard Quote, Day eQuote and all other types of
www.miaxoptions.com/filter/wotitle/ Exchange Rule 406. eQuotes must be for the minimum number of
4 After all Priority Customer Orders (if any) at the contracts, which minimum number shall be at least
rule_filing, at MIAX’s principal office, one (1) contract. The minimum number of contracts
NBBO have been filled, executions at that price will
and at the Commission’s Public be first allocated to other remaining Market Maker will be determined by the Exchange on a class-by-
Reference Room. priority quotes, which have not received a class basis and announced to the Members through
participation entitlement, and have precedence over a Regulatory Circular. See Exchange Rule 604(b)(2).
II. Self-Regulatory Organization’s Professional Interest. See Exchange Rule 514(e)(1).
9 The priority quote width standard established

Statement of the Purpose of, and 5 If after all Market Maker priority quotes have by the Exchange can have bid/ask differentials as
Statutory Basis for, the Proposed Rule been filled in accordance with Rule 514(e)(1) and narrow as one MPV, as wide but never wider than
the bid/ask differentials outlined in Rule 603(b)(4),
Change there remains interest at the NBBO, executions will
or somewhere in between. See Exchange Rule
be allocated to all Professional Interest at that price.
mstockstill on DSK3G9T082PROD with NOTICES

In its filing with the Commission, the Professional Interest is defined in Rule 100 and 517(b)(1)(ii).
10 The term ‘‘System’’ means the automated
Exchange included statements includes among other interest, Market Maker non-
priority quotes (as described in Rule 517(b)(1)(iii)) trading system used by the Exchange for the trading
concerning the purpose of and basis for of securities. See Exchange Rule 100.
and Market Maker orders in both assigned and non-
the proposed rule change and discussed assigned classes. See Exchange Rule 514(e)(2). 11 See Exchange Rule 517(b)(1)(i)(D)(1).

6 See Exchange Rule 517(b)(1). 12 The term ‘‘MBBO’’ means the bid or offer on
20 17 CFR 200.30–3(a)(34). 7 A Market Maker is expected to price option the Exchange. See Exchange Rule 100.
1 15 U.S.C. 78s(b)(1). 13 See Exchange Rule 517(b)(1)(i)(D)(2).
contracts fairly by, among other things, bidding and
2 17 CFR 240.19b–4. offering so as to create differences of no more than 14 See Exchange Rule 406.

VerDate Sep<11>2014 16:39 Aug 16, 2016 Jkt 238001 PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 E:\FR\FM\17AUN1.SGM 17AUN1
54912 Federal Register / Vol. 81, No. 159 / Wednesday, August 17, 2016 / Notices

additional clarity of Exchange rules B. Self-Regulatory Organization’s Electronic Comments
regarding priority quotes and Statement on Burden on Competition
allocations. • Use the Commission’s Internet
The Exchange does not believe that comment form (http://www.sec.gov/
The Exchange is also proposing to the proposed rule change will impose rules/sro.shtml); or
make a technical amendment to current any burden on competition that is not
Exchange Rule 517(b)(ii) by deleting the necessary or appropriate in furtherance • Send an email to rule-comments@
repetitive words ‘‘than the’’ from the of the purposes of the Act. Specifically, sec.gov. Please include File No. SR–
Rule, which are stated twice the Exchange believes the proposed MIAX–2016–24 on the subject line.
consecutively. changes will not impose any burden on Paper Comments
intra-market competition because it
2. Statutory Basis applies to all MIAX participants • Send paper comments in triplicate
equally. In addition, the Exchange does to Secretary, Securities and Exchange
MIAX believes that its proposed rule not believe the proposal will impose
change is consistent with section 6(b) of Commission, 100 F Street NE.,
any burden on inter-market competition Washington, DC 20549–1090.
the Act 15 in general, and furthers the as the proposal is intended to clarify the
objectives of section 6(b)(5) of the Act 16 operation of existing Exchange rules. All submissions should refer to File
in particular, in that it is designed to Number SR–MIAX–2016–24. This file
prevent fraudulent and manipulative C. Self-Regulatory Organization’s number should be included on the
acts and practices, to promote just and Statement on Comments on the subject line if email is used. To help the
equitable principles of trade, to foster Proposed Rule Change Received From
Commission process and review your
cooperation and coordination with Members, Participants, or Others
comments more efficiently, please use
persons engaged in facilitating Written comments were neither only one method. The Commission will
transactions in securities, to remove solicited nor received. post all comments on the Commission’s
impediments to and perfect the III. Date of Effectiveness of the Internet Web site (http://www.sec.gov/
mechanisms of a free and open market Proposed Rule Change and Timing for rules/sro.shtml). Copies of the
and a national market system and, in Commission Action submission, all subsequent
general, to protect investors and the amendments, all written statements
Because the foregoing proposed rule
public interest. with respect to the proposed rule
change does not: (i) Significantly affect
The proposed rule change is designed the protection of investors or the public change that are filed with the
to promote just and equitable principles interest; (ii) impose any significant Commission, and all written
of trade by clarifying the operation of burden on competition; and (iii) become communications relating to the
Exchange rules to ensure that Market operative for 30 days after the date of proposed rule change between the
Makers have complete information as to the filing, or such shorter time as the Commission and any person, other than
how priority quotes are established on Commission may designate, it has those that may be withheld from the
the Exchange. Further, the proposed become effective pursuant to 19(b)(3)(A) public in accordance with the
rule change is designed to remove of the Act 17 and Rule 19b–4(f)(6) 18 provisions of 5 U.S.C. 552, will be
impediments to and perfect the thereunder. available for Web site viewing and
mechanisms of a free and open market At any time within 60 days of the printing in the Commission’s Public
and a national market system and, in filing of the proposed rule change, the Reference Room, 100 F Street NE.,
general, to protect investors and the Commission summarily may Washington, DC 20549, on official
public interest, by providing enhanced temporarily suspend such rule change if business days between the hours of
guidance to Market Makers on it appears to the Commission that such 10:00 a.m. and 3:00 p.m. Copies of the
action is necessary or appropriate in the filing also will be available for
establishing priority quotes on options
public interest, for the protection of inspection and copying at the principal
with a time to expiration greater than
investors, or otherwise in furtherance of office of the Exchange. All comments
nine (9) months. The Exchange believes the purposes of the Act. If the
that the priority quote status afforded to received will be posted without change;
Commission takes such action, the
Market Makers quoting in long-term the Commission does not edit personal
Commission shall institute proceedings
options should result in more liquidity identifying information from
to determine whether the proposed rule
and tighter spreads in these options. should be approved or disapproved. submissions. You should submit only
Clarity in the Exchange’s rules regarding information that you wish to make
the establishment of priority quote IV. Solicitation of Comments available publicly. All submissions
status in long-term options benefits and Interested persons are invited to should refer to File Number SR–MIAX–
protects the public interest by explicitly submit written data, views, and 2016–24 and should be submitted on or
stating that Market Makers submitting arguments concerning the foregoing, before September 7, 2016.
quotes in long-term options can including whether the proposed rule For the Commission, by the Division of
establish priority quote status by change is consistent with the Act. Trading and Markets, pursuant to delegated
submitting such quotes with the Comments may be submitted by any of authority.19
required bid/ask differential. This the following methods: Robert W. Errett,
should encourage more Market Makers
mstockstill on DSK3G9T082PROD with NOTICES

17 15 U.S.C. 78s(b)(3)(A). Deputy Secretary.
to submit quotes on long-term options to 18 17 [FR Doc. 2016–19578 Filed 8–16–16; 8:45 am]
CFR 240.19b–4(f)(6). In addition, Rule 19b–
the Exchange, and should thus result in 4(f)(6) requires a self-regulatory organization to give BILLING CODE 8011–01–P
better prices and increased liquidity in the Commission written notice of its intent to file
long-term options. the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
15 15 U.S.C. 78f(b). Commission. The Exchange has satisfied this
16 15 U.S.C. 78f(b)(5). requirement. 19 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 16:39 Aug 16, 2016 Jkt 238001 PO 00000 Frm 00127 Fmt 4703 Sfmt 9990 E:\FR\FM\17AUN1.SGM 17AUN1
Document Created: 2018-02-09 11:35:19
Document Modified: 2018-02-09 11:35:19
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 54911