81 FR 62939 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 903 and Rule 900.2NY(50)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 177 (September 13, 2016)

Page Range		62939-62942
FR Document		2016-21912
Federal Register, Volume 81 Issue 177 (Tuesday, September 13, 2016)
[Federal Register Volume 81, Number 177 (Tuesday, September 13, 2016)]
[Notices]
[Pages 62939-62942]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-21912]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78780; File No. SR-NYSEMKT-2016-87]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change To Amend Rule 903 and 
Rule 900.2NY(50)

September 7, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on September 6, 2016, NYSE MKT LLC (the ``Exchange'' or 
``NYSE MKT'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. 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\ 15 U.S.C. 78a.
    \3\ 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 proposes to amend Rule 903 and Rule 900.2NY(50). The 
proposed rule change is available on the Exchange's Web site at 
www.nyse.com, at the principal office of the Exchange,

[[Page 62940]]

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 self-regulatory organization 
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 those 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 parts 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 purpose of the filing is to amend Rule 903 and Rule 
900.2NY(50), so as to allow the listing and trading of options with 
Wednesday expirations.
    Currently, under the Short Term Option Series Program, the Exchange 
may open for trading on any Thursday or Friday that is a business day 
series of options on that class that expire on each of the next five 
Fridays, provided that such Friday is not a Friday in which monthly 
options series or Quarterly Options Series expire (``Short Term Option 
Series''). The Exchange is now proposing to amend its rule to permit 
the listing of options expiring on Wednesdays. Specifically, the 
Exchange is proposing that it may open for trading on any Tuesday or 
Wednesday that is a business day, series of options on the SPDR S&P 500 
ETF Trust (SPY) to expire on any Wednesday of the month that is a 
business day and is not a Wednesday in which Quarterly Options Series 
expire (``Wednesday SPY Expirations''). The proposed Wednesday SPY 
Expiration series will be similar to the current Short Term Option 
Series, with certain exceptions, as explained in greater detail below. 
The Exchange notes that having Wednesday expirations is not a novel 
proposal. Specifically, the Chicago Board Options Exchange, 
Incorporated (``CBOE'') recently received approval to list Wednesday 
expirations for broad-based indexes.\4\ The Commission also recently 
approved a proposal by the BOX Options Exchange LLC (``BOX'') to list 
Wednesday expirations for SPY Options.\5\
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    \4\ See Securities Exchange Act Release No. 76909 (January 14, 
2016), 81 FR 3512 (January 21, 2016) (Order Approving SR-CBOE-2015-
106).
    \5\ See Securities Exchange Act Release No. 78668 (August 24, 
2016), 81 FR 59696 (August 30, 2016) (Order Approving SR-BOX-2016-
28).
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    In regards to Wednesday SPY Expirations, the Exchange is proposing 
to remove the current restriction preventing the Exchange from listing 
Short Term Option Series that expire in the same week in which monthly 
option series in the same class expire. Specifically, the Exchange will 
be allowed to list Wednesday SPY Expirations in the same week in which 
monthly option series in SPY expire. The current restriction to 
prohibit the expiration of monthly and Short Term Option Series from 
expiring on the same trading day is reasonable to avoid investor 
confusion. This confusion will not apply with Wednesday SPY Expirations 
and standard monthly options because they will not expire on the same 
trading day, as standard monthly options do not expire on Wednesdays. 
Additionally, it would lead to investor confusion if Wednesday SPY 
Expirations were not listed for one week every month because there was 
a monthly SPY expiration on the Friday of that week.
    Under the proposed Wednesday SPY Expirations, the Exchange may list 
up to five consecutive Wednesday SPY Expirations at one time. The 
Exchange may have no more than a total of five Wednesday SPY 
Expirations listed. This is the same listing procedure as Short Term 
Option Series that expire on Fridays. The Exchange is also proposing to 
clarify that the five expiration limit in the current Short Term Option 
Series Program Rule will not include any Wednesday SPY Expirations. 
This means, under the proposal, the Exchange would be allowed to list 
five Short Term Option Series expirations for SPY expiring on Friday 
under the current rule and five Wednesday SPY Expirations. The interval 
between strike prices for the proposed Wednesday SPY Expirations will 
be the same as those for the current Short Term Option Series. 
Specifically, the Wednesday SPY Expirations will have $0.50 strike 
intervals.
    Currently, for each Short Term Option Expiration Date,\6\ the 
Exchange is limited to opening thirty (30) series for each expiration 
date for the specific class. The thirty (30) series restriction does 
not include series that are open by other securities exchanges under 
their respective short term option rules; NYSE Amex may list these 
additional series that are listed by other exchanges. The thirty (30) 
series restriction shall apply to Wednesday SPY Expiration series as 
well. In addition, the Exchange will be able to list series that are 
listed by other exchanges, assuming they file similar rules with the 
Commission to list SPY options expiring on Wednesdays.
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    \6\ The Exchange may open for trading on any Thursday or Friday 
that is a business day series of options on that class that expire 
on each of the next five Fridays that are business days and are not 
Fridays in which monthly options series or Quarterly Options Series 
expire (``Short Term Option Expiration Dates''). See Rule 903(h).
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    As is the case with current Short Term Option Series, the Wednesday 
SPY Expiration series will be P.M.-settled. The Exchange does not 
believe that any market disruptions will be encountered with the 
introduction of P.M.-settled Wednesday SPY Expirations. The Exchange 
currently trades P.M.-settled Short Term Option Series that expire 
almost every Friday, which provide market participants a tool to hedge 
special events and to reduce the premium cost of buying protection. The 
Exchange seeks to introduce Wednesday SPY Expirations to, among other 
things, expand hedging tools available to market participants and to 
continue the reduction of the premium cost of buying protection. The 
Exchange believes that Wednesday expirations, similar to Friday 
expirations, would allow market participants to purchase an option 
based on their timing as needed and allow them to tailor their 
investment and hedging needs more effectively.
    The Exchange is also amending the definition of Short Term Option 
Series to make clear that it includes Wednesday expirations. 
Specifically, the Exchange is amending the definition to expand Short 
Term Option Series to those listed on any Tuesday or Wednesday and that 
expire on the Wednesday of the next business week. If a Tuesday or 
Wednesday is not a business day, the series may be opened (or shall 
expire) on the first business day immediately prior to that Tuesday or 
Wednesday. The Exchange is also revising portions of the definition 
that have not been updated to reflect changes in the Short Term Options 
rules. Specifically, the Exchange proposes to rename One Week options 
as Short Term options so that reference to the product is consistent 
across Rule 900.2NY(50). The Exchange also proposes to amend Rule 
900.2NY(50) to clarify that Short Term Options may be opened and may 
expire on a Tuesday, Wednesday and Thursday, in addition to Friday 
which was already a part of the rule. The proposed changes are non-
substantive and are intended to add clarity to Exchange rules.

[[Page 62941]]

    The Exchange believes that the introduction of Wednesday SPY 
Expirations will provide investors with a flexible and valuable tool to 
manage risk exposure, minimize capital outlays, and be more responsive 
to the timing of events affecting the industry.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \7\ of the 
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers 
the objectives of Section 6(b)(5),\8\ 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, and to remove impediments to and perfect the mechanisms of 
a free and open market and a national market system.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    In particular, the Exchange believes the Short Term Option Series 
Program has been successful to date and that Wednesday SPY Expirations 
simply expand the ability of investors to hedge risk against market 
movements stemming from economic releases or market events that occur 
throughout the month in the same way that the Short Term Option Series 
Program has expanded the landscape of hedging. Similarly, the Exchange 
believes Wednesday SPY Expirations should create greater trading and 
hedging opportunities and flexibility, and provide customers with the 
ability to more closely tailor their investment objectives. The 
Exchange believes that allowing Wednesday SPY Expirations and monthly 
SPY expirations in the same week will benefit investors and minimize 
investor confusion by providing Wednesday SPY Expirations in a 
continuous and uniform manner.
    The Exchange believes that the proposed non-substantive changes to 
Rule 900.2NY(50) would remove impediments to and perfect the mechanism 
of a free and open market and national market system by providing 
greater clarity to the rule text regarding the listing and trading of 
Short Term Options on the Exchange.
    Finally, the Exchange represents that it has an adequate 
surveillance program in place to detect manipulative trading in 
Wednesday SPY Expirations in the same way it monitors trading in the 
current Short Term Option Series. The Exchange also represents that it 
has the necessary systems capacity to support the new options series.

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 notes that having 
Wednesday expirations is not a novel proposal.\9\ The Exchange does not 
believe the proposal will impose any burden on intramarket competition, 
as all market participants will be treated in the same manner. 
Additionally, the Exchange does not believe the proposal will impose 
any burden on intermarket competition, as nothing prevents the other 
options exchanges from proposing similar rules to those that the 
Exchange is currently proposing.
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    \9\ See supra, notes 4 and 5.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

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 from the date on which it was filed, or 
such shorter time as the Commission may designate, the proposed rule 
change has become effective pursuant to Section 19(b)(3)(A) of the Act 
\10\ and Rule 19b-4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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 intention 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days from the date of filing. However, Rule 
19b-4(f)(6)(iii) \12\ permits the Commission to designate a shorter 
time if such action is consistent with the protection of investors and 
the public interest. The Exchange has asked the Commission to waive the 
30-day operative delay so that the proposal may become operative 
immediately upon filing. The Commission notes that it recently approved 
BOX's substantially similar proposal to list and trade Wednesday SPY 
Expirations.\13\ The Exchange has stated that waiver of the operative 
delay will allow the Exchange to list and trade Wednesday SPY 
Expirations as soon as possible, and therefore, promote competition 
among the option exchanges. For these reasons, the Commission believes 
that the proposed rule change presents no novel issues and that waiver 
of the 30-day operative delay is consistent with the protection of 
investors and the public interest, and will allow the Exchange to 
remain competitive with other exchanges. Therefore, the Commission 
hereby waives the 30-day operative delay and designates the proposal 
effective upon filing.\14\ 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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    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ See supra note 5.
    \14\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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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-NYSEMKT-2016-87 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-NYSEMKT-2016-87. 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/

[[Page 62942]]

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-
NYSEMKT-2016-87 and should be submitted on or before October 4, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-21912 Filed 9-12-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 177 / Tuesday, September 13, 2016 / Notices 62939

they meet the Business Combination C. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be
Condition, the Exchange believes it is Statement on Comments on the available for Web site viewing and
reasonable to shift the time when SPACs Proposed Rule Change Received From printing in the Commission’s Public
are eligible for the services available to Members, Participants, or Others Reference Room, 100 F Street NE.,
Eligible New Listings to the period No written comments were solicited Washington, DC 20549 on official
immediately after meeting the Business business days between the hours of
or received with respect to the proposed
Combination Condition. 10:00 a.m. and 3:00 p.m. Copies of the
rule change.
The Exchange believes that it is not filing also will be available for
unfairly discriminatory to provide III. Date of Effectiveness of the inspection and copying at the principal
SPACs with the applicable services only Proposed Rule Change and Timing for office of the Exchange. All comments
if and when they meet the Business Commission Action received will be posted without change;
Combination Condition. The Exchange Within 45 days of the date of the Commission does not edit personal
recognizes that not all SPACs will meet publication of this notice in the Federal identifying information from
the Business Combination Condition Register or up to 90 days (i) as the submissions. You should submit only
and that some listed SPACs will Commission may designate if it finds information that you wish to make
therefore never become eligible for the such longer period to be appropriate available publicly. All submissions
services that would be provided to an and publishes its reasons for so finding should refer to File Number SR–NYSE–
otherwise similarly qualified operating or (ii) as to which the self-regulatory 2016–58 and should be submitted on or
company. However, given the specific organization consents, the Commission before October 4, 2016.
characteristics of the SPAC structure, will: For the Commission, by the Division of
these services are generally not of any (A) By order approve or disapprove Trading and Markets, pursuant to delegated
particular value to a SPAC prior to the proposed rule change, or authority.9
meeting the Business Combination (B) institute proceedings to determine Brent J. Fields,
Condition and the Exchange therefore whether the proposed rule change Secretary.
believes that those SPACs that never should be disapproved. [FR Doc. 2016–21914 Filed 9–12–16; 8:45 am]
qualify for the services will not suffer BILLING CODE 8011–01–P
any meaningful detriment as a IV. Solicitation of Comments
consequence. Interested persons are invited to
Allowing SPACs up to 30 days after submit written data, views, and SECURITIES AND EXCHANGE
meeting the Business Combination arguments concerning the foregoing, COMMISSION
Condition to start using the including whether the proposed rule [Release No. 34–78780; File No. SR–
complimentary products and services is change is consistent with the Act. NYSEMKT–2016–87]
a reflection of the Exchange’s Comments may be submitted by any of
experience that it can take companies a the following methods: Self-Regulatory Organizations; NYSE
period of time to review and complete MKT LLC; Notice of Filing and
Electronic Comments
necessary contracts and training for Immediate Effectiveness of Proposed
services following their becoming • Use the Commission’s Internet Rule Change To Amend Rule 903 and
eligible for those services. Allowing this comment form (http://www.sec.gov/ Rule 900.2NY(50)
modest 30 day period, if the company rules/sro.shtml); or
• Send an email to rule-comments@ September 7, 2016.
needs it, helps ensure that the company
will have the benefit of the full period sec.gov. Please include File Number SR– Pursuant to Section 19(b)(1) 1 of the
permitted under the rule to actually use NYSE–2016–58 on the subject line. Securities Exchange Act of 1934 (the
the services, thus giving companies the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
Paper Comments notice is hereby given that on
full intended benefit.
• Send paper comments in triplicate September 6, 2016, NYSE MKT LLC (the
B. Self-Regulatory Organization’s to Brent J. Fields, Secretary, Securities ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
Statement on Burden on Competition and Exchange Commission, 100 F Street the Securities and Exchange
The Exchange does not believe that NE., Washington, DC 20549–1090. Commission (the ‘‘Commission’’) the
the proposed rule change will impose All submissions should refer to File proposed rule change as described in
any burden on competition that is not Number SR–NYSE–2016–58. This file Items I and II below, which Items have
necessary or appropriate in furtherance number should be included on the been prepared by the self-regulatory
of the purposes of the Act. In many subject line if email is used. To help the organization. The Commission is
cases, SPACs will consider transferring Commission process and review your publishing this notice to solicit
to a new listing venue at the time they comments more efficiently, please use comments on the proposed rule change
meet the Business Combination only one method. The Commission will from interested persons.
Condition. The proposed rule change post all comments on the Commission’s I. Self-Regulatory Organization’s
enables the Exchange to compete for the Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of
retention of these companies by offering rules/sro.shtml). Copies of the the Proposed Rule Change
them a package of complimentary submission, all subsequent The Exchange proposes to amend
products and services that assist their amendments, all written statements Rule 903 and Rule 900.2NY(50). The
transition to being a publicly listed with respect to the proposed rule proposed rule change is available on the
Lhorne on DSK30JT082PROD with NOTICES

operating company for the first time. All change that are filed with the Exchange’s Web site at www.nyse.com,
similarly situated companies are eligible Commission, and all written at the principal office of the Exchange,
for the same package of services. communications relating to the
Therefore, the proposed amendment to proposed rule change between the 9 17 CFR 200.30–3(a)(12).
Section 907.00 will increase Commission and any person, other than 1 15 U.S.C. 78s(b)(1).
competition by enabling the Exchange those that may be withheld from the 2 15 U.S.C. 78a.

to more effectively compete for listings. public in accordance with the 3 17 CFR 240.19b–4.

VerDate Sep<11>2014 15:27 Sep 12, 2016 Jkt 238001 PO 00000 Frm 00086 Fmt 4703 Sfmt 4703 E:\FR\FM\13SEN1.SGM 13SEN1
62942 Federal Register / Vol. 81, No. 177 / Tuesday, September 13, 2016 / Notices

rules/sro.shtml). Copies of the comments on the proposed rule change date of this proposed rule change, and
submission, all subsequent from interested persons. to continue to assess the Posted
amendments, all written statements Liquidity Marketing Fee and the non-
I. Self-Regulatory Organization’s
with respect to the proposed rule MIAX market maker transaction fees for
Statement of the Terms of Substance of
change that are filed with the the remaining symbols for transactions
the Proposed Rule Change occurring on or after September 1, 2016
Commission, and all written
communications relating to the The Exchange is filing a proposal to and extending through October 31,
proposed rule change between the amend the MIAX Options Fee Schedule 2016.3
Commission and any person, other than (the ‘‘Fee Schedule’’).
Posted Liquidity Marketing Fee
those that may be withheld from the The text of the proposed rule change
public in accordance with the is available on the Exchange’s Web site Marketing Fees are currently assessed
provisions of 5 U.S.C. 552, will be at http://www.miaxoptions.com/filter/ on certain transactions of all MIAX
available for Web site viewing and wotitle/rule_filing, at MIAX’s principal Market Makers.4 Currently, Section
printing in the Commission’s Public office, and at the Commission’s Public (1)(b) of the Fee Schedule provides that
Reference Room, 100 F Street NE., Reference Room. the Exchange will assess a Marketing
Washington, DC 20549, on official Fee to all Market Makers for contracts,
II. Self-Regulatory Organization’s including mini options, they execute in
business days between the hours of Statement of the Purpose of, and
10:00 a.m. and 3:00 p.m. Copies of the their assigned classes when the contra-
Statutory Basis for, the Proposed Rule party to the execution is a Priority
filing also will be available for Change
inspection and copying at the principal Customer. MIAX does not assess a
office of the Exchange. All comments In its filing with the Commission, the Marketing Fee to Market Makers for
received will be posted without change; Exchange included statements contracts executed as a PRIME Agency
the Commission does not edit personal concerning the purpose of and basis for Order, Contra-side Order, Qualified
identifying information from the proposed rule change and discussed Contingent Cross Order, PRIME
submissions. You should submit only any comments it received on the Participating Quote or Order, or a
information that you wish to make proposed rule change. The text of these PRIME AOC Response in the PRIME
available publicly. All submissions statements may be examined at the Auction, unless it executes against an
should refer to File Number SR– places specified in Item IV below. The unrelated order.
Exchange has prepared summaries, set The Exchange assesses an additional
NYSEMKT–2016–87 and should be
forth in sections A, B, and C below, of $0.12 per contract Posted Liquidity
submitted on or before October 4, 2016.
the most significant aspects of such Marketing Fee to all Market Makers for
For the Commission, by the Division of any standard options overlying the
Trading and Markets, pursuant to delegated
statements.
designated symbols that Market Makers
authority.15 A. Self-Regulatory Organization’s execute in their assigned class when the
Brent J. Fields, Statement of the Purpose of, and contra-party to the execution is a
Secretary. Statutory Basis for, the Proposed Rule Priority Customer and the Priority
[FR Doc. 2016–21912 Filed 9–12–16; 8:45 am] Change Customer order was posted on the
BILLING CODE 8011–01–P 1. Purpose MIAX Book at the time of the
execution.5 The Posted Liquidity
The Exchange is proposing to modify Marketing Fee is assessed in addition to
SECURITIES AND EXCHANGE the current list of options for which the the current Marketing Fee of $0.25 per
COMMISSION Exchange assesses the $0.12 per contract contract for standard options overlying
Posted Liquidity Marketing Fee the designated symbols that Market
[Release No. 34–78781; File No. SR–MIAX– (described below), which applies to Makers execute in their assigned class
2016–30] options overlying DIA, EEM, FB, GDX, when the contra-party to the execution
Self-Regulatory Organizations; Miami GLD, IWM, QQQ, SLV, SPY, USO, is a Priority Customer.6
International Securities Exchange LLC; UVXY, and VXX (the ‘‘designated
Notice of Filing and Immediate symbols’’), as listed in the Fee Schedule. 3 The Commission notes that in August 2016, the

The Exchange is also proposing to Exchange expanded the Posted Liquidity Marketing
Effectiveness of a Proposed Rule Fee to include 7 additional symbols. See File No.
Change To Amend Its Fee Schedule modify the current list of designated SR–MIAX–2016–22 (withdrawn) and Securities
symbols for which the Exchange Exchange Act Release No. 78681 (August 25, 2016),
September 7, 2016. assesses the $0.50 per contract 81 FR 60077 (August 31, 2016) (SR–MIAX–2016–
Pursuant to the provisions of Section transaction fee applicable to orders 28). In the present filing, MIAX has removed those
seven additional symbols effective September 1,
19(b)(1) of the Securities Exchange Act executed for the account of non-MIAX 2016. Further, the Exchange has proposed to
of 1934 (‘‘Act’’),1 and Rule 19b–4 market makers in options overlying the remove the five original symbols after October 31,
thereunder,2 notice is hereby given that designated symbols, and the discounted 2016, which will result in no symbols being subject
$0.48 per contract transaction fee with to the additional $0.12 per contract Posted
on August 25, 2016, Miami International Liquidity Marketing Fee. With this change, the
Securities Exchange LLC (‘‘MIAX’’ or respect to the designated symbols Commission notes that net transaction fees for
‘‘Exchange’’) filed with the Securities applicable to any Member or its Affiliate removing liquidity on MIAX that are assessed on
and Exchange Commission that qualifies for Priority Customer market makers (i.e., the transaction fee together
Rebate Program volume tiers 3 or with the marketing fee and Posted Liquidity
(‘‘Commission’’) a proposed rule change Marketing Fee) will no longer exceed $0.50 per
as described in Items I, II, and III below, higher, as discussed below. The contract in classes in the Penny Pilot Program.
Lhorne on DSK30JT082PROD with NOTICES

which Items have been prepared by the Exchange proposes to remove some of 4 See MIAX Fee Schedule, Section (1)(b), entitled

Exchange. The Commission is the current designated symbols from ‘‘Marketing Fee’’ for more detail regarding the
publishing this notice to solicit both the Posted Liquidity Marketing Fee Marketing Fee.
5 For a complete description of the Posted
and the non-MIAX market maker
Liquidity Marketing Fee, see Securities Exchange
15 17 CFR 200.30–3(a)(12). transaction fees beginning with Act Release No. 73848 (December 16, 2014), 79 FR
1 15 U.S.C. 78s(b)(1). transactions occurring on or after the 76421 (December 22, 2014) (SR–MIAX–2014–62).
2 17 CFR 240.19b–4. proposed September 1, 2016 effective 6 See id.

VerDate Sep<11>2014 15:27 Sep 12, 2016 Jkt 238001 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 E:\FR\FM\13SEN1.SGM 13SEN1
Document Created: 2018-02-09 13:16:56
Document Modified: 2018-02-09 13:16:56
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 62939