81 FR 67016 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Fee Schedule To Modify the Exchange's Connectivity Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 189 (September 29, 2016)
Federal Register Volume 81, Issue 189 (September 29, 2016)
| Page Range | 67016-67019 | |
| FR Document | 2016-23497 |
[Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)] [Notices] [Pages 67016-67019] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-23497] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78919; File No. SR-MIAX-2016-32] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Fee Schedule To Modify the Exchange's Connectivity Fees September 23, 2016. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act [[Page 67017]] of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on September 12, 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 the MIAX Options Fee Schedule (the ``Fee Schedule'') to modify the Exchange's connectivity fees. The text of the proposed rule change is available on the Exchange's Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at MIAX's principal office, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fee Schedule regarding connectivity to the Exchange. Specifically, the Exchange proposes to amend Section 4 of the Fee Schedule, Testing and Certification Fees, to state that Member and Non-Member Network Connectivity Testing and Certification Fees will not be assessed for testing and certification of connectivity to the Exchange's disaster recovery systems (for purposes of the Fee Schedule, the ``Disaster Recovery Facility'').\3\ The Exchange also proposes to amend Section 5 of the Fee Schedule, System Connectivity Fees, to establish a new connectivity fee for 1 Gigabit (``Gb'') and 10 Gb fiber connections to the Exchange's Disaster Recovery Facility. --------------------------------------------------------------------------- \3\ See Exchange Rule 321. See also, Securities Exchange Act Release No. 76303 (October 29, 2015), 80 FR 68373 (November 4, 2015) (SR-MIAX-2015-61). --------------------------------------------------------------------------- Testing and Certification Fees The Exchange currently offers various bandwidth alternatives for connectivity to the Exchange's System,\4\ including a 10 Gb fiber connection, a 1 Gb fiber connection and a 10 Gb ultra-low latency (``ULL'') fiber connection. The Exchange currently assesses a Member Network Connectivity Testing and Certification Fee of $1,000 for each 1 Gb connection, and $4,000 for each 10 Gb or 10 Gb ULL connection.\5\ Non-Members are assessed a Non-Member Network Connectivity Testing and Certification Fee of $1,200 for each 1 Gb connection, and $4,200 for each 10 Gb or 10 Gb ULL connection.\6\ The Exchange proposes to amend Sections 4(c) and 4(d) of the Fee Schedule to state that these Member and Non-Member Network Connectivity Testing and Certification Fees will not be assessed for testing and certification of connectivity to the Exchange's Disaster Recovery Facility. --------------------------------------------------------------------------- \4\ The term ``System'' means the automated trading system used by the Exchange for the trading of securities. See Exchange Rule 100. \5\ See Fee Schedule Section 4(c). \6\ See Fee Schedule Section 4(d). --------------------------------------------------------------------------- The purpose of the Exchange's proposal not to charge Member and Non-Member network connectivity testing and certification fees for testing required in order to connect to the Disaster Recovery Facility is to eliminate any potential impediment to Members and Non-Members in testing and certifying for connectivity to the Disaster Recovery Facility, and to encourage Members and Non-Members to set up the connections to such Facility for disaster recovery purposes. System Connectivity Fees The Exchange currently assesses Monthly Member Network Connectivity fees for the applicable connectivity in any month when a Member or Non- Member is credentialed to use any of the MIAX APIs or Market Data feeds in the production environment. The Exchange proposes to amend the table in Section 5 of the Fee Schedule to explicitly reflect the monthly Member and Non-Member Network connectivity fees as they apply to the Exchange's primary and secondary facilities, and to the Exchange's Disaster Recovery Facility. Under the proposal, fees for connectivity to the Exchange's primary and secondary (i.e., backup) facilities will remain unchanged. The Exchange is proposing to amend the table in Section 5 to reflect the current per connection fees for connectivity with the primary and secondary facilities by labelling the heading of the columns reflecting such fees as ``Primary/Secondary Facility'' for a 1 Gb, 10 Gb and 10 Gb ULL connection, respectively. The Exchange is proposing to add new columns to the table in Section 5 with the heading ``Disaster Recovery Facility'' to set forth the monthly per connection fees for a 1 Gb and 10 Gb connection to the Disaster Recovery Facility. Specifically, the Exchange proposes a monthly per connection Network Connectivity Fee of $500 for each 1 Gb connection to the Disaster Recovery Facility and a monthly per connection Network Connectivity Fee of $2,500 for each 10 Gb connection to the Disaster Recovery Facility for both Members and Non-Members. The Exchange does not propose to offer a 10 Gb ULL connection to the Disaster Recovery Facility at this time; the 10 Gb ULL fees will therefore remain unchanged. The Exchange proposes to amend the tables in Sections 5(a) and (b) to reflect this. The Exchange believes that the proposed pricing for connectivity to the Disaster Recovery Facility is reflective of the value it will provide to users of the Exchange. The Exchange further believes that the assessment of connectivity fees to the Disaster Recovery Facility will assist the Exchange in recouping some of the costs to the Exchange associated with developing and maintaining this facility for disaster recovery use. Not charging users a testing and certification fee for testing required in order to connect to the Disaster Recovery Facility should encourage Members and Non-Members to connect to such facility. The Exchange notes that other exchanges charge fees for connection to their Disaster Recovery facilities by their market participants.\7\ --------------------------------------------------------------------------- \7\ See Chicago Board Options Exchange, Incorporated (``CBOE'') Fees Schedule, p. 13; see also NASDAQ PHLX LLC (``Phlx'') Pricing Schedule, Section XI [sic]. --------------------------------------------------------------------------- The Exchange proposes to implement the proposed changes to the Fee Schedule effective as of September 16, 2016. 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is [[Page 67018]] consistent with Section 6(b) of the Act \8\ in general, and furthers the objectives of Section 6(b)(4) of the Act \9\ in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which the Exchange operates or controls. The Exchange also believes the proposal furthers the objectives of Section 6(b)(5) of the Act \10\ in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest and is not designed to permit unfair discrimination between customers, issuers, brokers and dealers. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78f(b). \9\ 15 U.S.C. 78f(b)(4). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that its proposal is consistent with Section 6(b)(4) of the Act because the fees assessed for the connectivity to the Disaster Recovery Facility will allow the Exchange to cover certain of the costs associated with maintaining these Facility for disaster recovery use by users of the Exchange. The Exchange believes that the proposal to establish fees for the Disaster Recovery Facility connectivity is fair, equitable and not unreasonably discriminatory because the fees are assessed equally among all users according to the bandwidth that such user determines is the best suited for its purposes, i.e., either 1 Gb or 10 Gb, and how many connections such Users require. The Exchange believes that the Exchange's decision not to charge Member and Non-Member network connectivity testing and certification fees for testing required in order to connect to the Disaster Recovery Facility is consistent with Section 6(b)(4) of the Act because it will encourage Members and Non-Members to set up the connections to such Facility for disaster recovery purposes. Therefore, the Exchange believes that it is reasonable not to charge Members and Non-Members for testing and certification in relation to connecting to the Disaster Recovery Facility. The Exchange also believes the proposed Disaster Recovery Facility connectivity fees are equitably allocated in that all Members and Non- Members will be charged the same amount to cover the connection costs depending on the speed of the connection as well as the number of connections selected by such user. All Members and Non-Members may subscribe to this connectivity to the Disaster Recovery Facility, and the Exchange is not eliminating any existing connectivity. The Exchange also believes that its proposal is consistent with the objectives of Section 6(b)(5) of the Act \11\ because the Disaster Recovery Facility connectivity will be beneficial to all MIAX participants. The Exchange anticipates that providing the opportunity to connect to the Disaster Recovery Facility to all users of the Exchange will further enhance the Exchange's support of risk management in the form of disaster recovery on behalf of its Member and Non-Member users. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange also believes that providing connectivity testing and certification at no cost for the Disaster Recovery Facility is consistent with Section 6(b)(5) of the Act because it is being offered to all MIAX participants at no cost. There is no differentiation among MIAX participants with regard to the testing and certification required to receive the disaster recovery services through the Disaster Recovery Facility. 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. On the contrary, the Exchange believes that the proposed changes should increase both intermarket and intramarket competition. Specifically, the Exchange believes that the changes will promote competition by offering MIAX participants more flexibility in their choice of disaster recovery services, which will in turn enhance their trading operations and ultimately bring greater efficiency to trading in the marketplace. As to inter-market competition, 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. The Exchange believes that the proposed changes reflect this competitive environment and may result in enhanced services to a market participant. Given the robust competition among options markets for the services that they each offer to market participants, expanding and thereby enhancing the services available on MIAX is consistent with the goals of the Act. 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,\12\ and Rule 19b-4(f)(2) \13\ 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. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A)(ii). \13\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-2016-32 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-2016-32. 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 [[Page 67019]] 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-2016-32 and should be submitted on or before October 20, 2016. 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. 2016-23497 Filed 9-28-16; 8:45 am] BILLING CODE 8011-01-P
![67016 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices
requirements, which depend on the type traditional pen and ink ‘‘wet’’ signature, Affected public: Individuals or
of annuity payable. The requirements and Form AA–1sum documents Households.
for obtaining the annuities are approval using the alternative signature Abstract: The Railroad Retirement Act
prescribed in 20 CFR 216 and 220. method called Attestation. When the provides for payment of age, disability
To collect the information needed to RRB representative is unable to contact and supplemental annuities to qualified
help determine an applicant’s the applicant in person or by telephone, employees. The application and related
entitlement to, and the amount of, an for example, the applicant lives in forms obtain information about the
employee retirement annuity the RRB another country, a manual version of applicant’s family work history, military
uses Forms AA–1, Application for Form AA–1 is used. service, disability benefits from other
Employee Annuity; AA–1d, Application Form AA–1d, Application for government agencies and public or
for Determination of Employee Determination of Employee’s Disability, private pensions. The information is
Disability; G–204, Verification of is completed by an employee who is used to determine entitlement to and
Workers Compensation/Public filing for a disability annuity under the the amount of the annuity applied for.
Disability Benefit Information, and RRA, or a disability freeze under the
electronic Forms AA–1cert, Application Changes proposed: The RRB proposes
Social Security Act for early Medicare
Summary and Certification, and AA– the following changes to Forms AA–1
based on a disability. Form G–204,
1sum, Application Summary. and AA–1d:
Verification of Worker’s Compensation/
The AA–1 application process obtains Public Disability Benefit Information, is • Deletion of Item 35a-d from Form
information from an applicant about used to obtain and verify information AA–1, regarding the relinquishment of
their marital history, work history, concerning a worker’s compensation or seniority rights;
military service, benefits from other a public disability benefit that is or will • the relocation of current Items 52–
governmental agencies, railroad be paid by a public agency to a disabled 53 from Form AA–1d to proposed Items
pensions and Medicare entitlement for railroad employee. 48a-b on Form AA–1, regarding whether
either an age and service or disability One response is requested of each an applicant had filed or expected to file
annuity. An RRB representative respondent. Completion of the forms is a lawsuit or claim against a person or
interviews the applicant either at a field required to obtain/retain a benefit. company for a personal injury that
office, an itinerant point, or by Previous Requests for Comments: The resulted in the payment of sickness
telephone. During the interview, the RRB has already published the initial benefits by the RRB, as the potential for
RRB representative enters the 60-day notice (81 FR 47183 on July 20, uncollected sickness benefits can apply
information obtained into an on-line 2016) required by 44 U.S.C. 3506(c)(2). to both a disability applicant as well as
information system. Upon completion of That request elicited no comments. an applicant qualified for an age and
the interview, the on-line information Title: Application for Employee service annuity.
system generates Form AA–1cert, Annuity Under the Railroad Retirement
Application Summary and Certification, • Comparable revisions to electronic
Act. equivalent forms (AA–1cert and AA–
or Form AA–1sum, Application OMB Control Number: 3220–0002.
Summary, a summary of the information 1sum) are also being proposed.
Form(s) submitted: AA–1, AA–1cert,
that was provided for the applicant to AA–1d, AA–1sum and G–204. No other changes are proposed.
review and approve. Form AA–1cert Type of request: Revision of a The burden estimate for the ICR is as
documents approval using the currently approved collection. follows:
Annual Time Burden
Form No. responses (minutes) (hours)
AA–1 (without assistance) ........................................................................................................... 100 62 103
AA–1cert (with assistance) .......................................................................................................... 4,620 30 2,310
AA–1sum (with assistance) ......................................................................................................... 8,000 29 3,867
AA–1d (with assistance) .............................................................................................................. 2,600 60 2,600
AA–1d (without assistance) ......................................................................................................... 5 85 7
G–204 .......................................................................................................................................... 20 15 5
Total ...................................................................................................................................... 15,345 ........................ 8,892
Additional Information or Comments: 202–395–6974, Email address: OIRA_ SECURITIES AND EXCHANGE
Copies of the forms and supporting Submission@omb.eop.gov. COMMISSION
documents can be obtained from Dana
Charles Mierzwa,
Hickman at (312) 751–4981 or [Release No. 34–78919; File No. SR–MIAX–
Dana.Hickman@RRB.GOV. Associate Chief Information Officer for Policy 2016–32]
and Compliance.
Comments regarding the information [FR Doc. 2016–23526 Filed 9–28–16; 8:45 am] Self-Regulatory Organizations; Miami
collection should be addressed to International Securities Exchange LLC;
BILLING CODE 7905–01–P
Charles Mierzwa, Railroad Retirement Notice of Filing and Immediate
Board, 844 North Rush Street, Chicago,
mstockstill on DSK3G9T082PROD with NOTICES
Effectiveness of Proposed Rule
Illinois, 60611–1275 or Change To Amend Its Fee Schedule To
Charles.Mierzwa@RRB.GOV and to the Modify the Exchange’s Connectivity
OMB Desk Officer for the RRB, Fax: Fees
September 23, 2016.
Pursuant to the provisions of Section
19(b)(1) of the Securities Exchange Act
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![Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices 67017
of 1934 (‘‘Act’’) 1 and Rule 19b–4 proposes to amend Section 5 of the Fee connectivity to the Exchange’s primary
thereunder,2 notice is hereby given that Schedule, System Connectivity Fees, to and secondary (i.e., backup) facilities
on September 12, 2016, Miami establish a new connectivity fee for 1 will remain unchanged. The Exchange
International Securities Exchange LLC Gigabit (‘‘Gb’’) and 10 Gb fiber is proposing to amend the table in
(‘‘MIAX’’ or ‘‘Exchange’’) filed with the connections to the Exchange’s Disaster Section 5 to reflect the current per
Securities and Exchange Commission Recovery Facility. connection fees for connectivity with
(‘‘Commission’’) a proposed rule change Testing and Certification Fees the primary and secondary facilities by
as described in Items I, II, and III below, labelling the heading of the columns
which Items have been prepared by the The Exchange currently offers various reflecting such fees as ‘‘Primary/
Exchange. The Commission is bandwidth alternatives for connectivity Secondary Facility’’ for a 1 Gb, 10 Gb
publishing this notice to solicit to the Exchange’s System,4 including a and 10 Gb ULL connection,
comments on the proposed rule change 10 Gb fiber connection, a 1 Gb fiber respectively.
from interested persons. connection and a 10 Gb ultra-low
The Exchange is proposing to add
latency (‘‘ULL’’) fiber connection. The
I. Self-Regulatory Organization’s new columns to the table in Section 5
Exchange currently assesses a Member
Statement of the Terms of Substance of with the heading ‘‘Disaster Recovery
Network Connectivity Testing and
the Proposed Rule Change Facility’’ to set forth the monthly per
Certification Fee of $1,000 for each 1 Gb
connection fees for a 1 Gb and 10 Gb
The Exchange is filing a proposal to connection, and $4,000 for each 10 Gb
connection to the Disaster Recovery
amend the MIAX Options Fee Schedule or 10 Gb ULL connection.5 Non-
Members are assessed a Non-Member Facility. Specifically, the Exchange
(the ‘‘Fee Schedule’’) to modify the proposes a monthly per connection
Exchange’s connectivity fees. Network Connectivity Testing and
Certification Fee of $1,200 for each 1 Gb Network Connectivity Fee of $500 for
The text of the proposed rule change each 1 Gb connection to the Disaster
connection, and $4,200 for each 10 Gb
is available on the Exchange’s Web site or 10 Gb ULL connection.6 The Recovery Facility and a monthly per
at http://www.miaxoptions.com/filter/ Exchange proposes to amend Sections connection Network Connectivity Fee of
wotitle/rule_filing, at MIAX’s principal 4(c) and 4(d) of the Fee Schedule to $2,500 for each 10 Gb connection to the
office, and at the Commission’s Public state that these Member and Non- Disaster Recovery Facility for both
Reference Room. Member Network Connectivity Testing Members and Non-Members. The
and Certification Fees will not be Exchange does not propose to offer a 10
II. Self-Regulatory Organization’s
assessed for testing and certification of Gb ULL connection to the Disaster
Statement of the Purpose of, and
connectivity to the Exchange’s Disaster Recovery Facility at this time; the 10 Gb
Statutory Basis for, the Proposed Rule
Recovery Facility. ULL fees will therefore remain
Change
The purpose of the Exchange’s unchanged. The Exchange proposes to
In its filing with the Commission, the proposal not to charge Member and amend the tables in Sections 5(a) and (b)
Exchange included statements Non-Member network connectivity to reflect this.
concerning the purpose of and basis for testing and certification fees for testing The Exchange believes that the
the proposed rule change and discussed required in order to connect to the proposed pricing for connectivity to the
any comments it received on the Disaster Recovery Facility is to Disaster Recovery Facility is reflective
proposed rule change. The text of these eliminate any potential impediment to of the value it will provide to users of
statements may be examined at the Members and Non-Members in testing the Exchange. The Exchange further
places specified in Item IV below. The and certifying for connectivity to the believes that the assessment of
Exchange has prepared summaries, set Disaster Recovery Facility, and to connectivity fees to the Disaster
forth in sections A, B, and C below, of encourage Members and Non-Members Recovery Facility will assist the
the most significant aspects of such to set up the connections to such Exchange in recouping some of the costs
statements. Facility for disaster recovery purposes. to the Exchange associated with
A. Self-Regulatory Organization’s developing and maintaining this facility
System Connectivity Fees
Statement of the Purpose of, and for disaster recovery use. Not charging
Statutory Basis for, the Proposed Rule The Exchange currently assesses users a testing and certification fee for
Change Monthly Member Network Connectivity testing required in order to connect to
fees for the applicable connectivity in the Disaster Recovery Facility should
1. Purpose any month when a Member or Non- encourage Members and Non-Members
Member is credentialed to use any of the to connect to such facility. The
The Exchange proposes to amend its
MIAX APIs or Market Data feeds in the Exchange notes that other exchanges
Fee Schedule regarding connectivity to
production environment. charge fees for connection to their
the Exchange. Specifically, the The Exchange proposes to amend the
Exchange proposes to amend Section 4 Disaster Recovery facilities by their
table in Section 5 of the Fee Schedule market participants.7
of the Fee Schedule, Testing and to explicitly reflect the monthly Member
Certification Fees, to state that Member The Exchange proposes to implement
and Non-Member Network connectivity
and Non-Member Network Connectivity the proposed changes to the Fee
fees as they apply to the Exchange’s
Testing and Certification Fees will not Schedule effective as of September 16,
primary and secondary facilities, and to
be assessed for testing and certification 2016.
the Exchange’s Disaster Recovery
of connectivity to the Exchange’s Facility. Under the proposal, fees for 2. Statutory Basis
mstockstill on DSK3G9T082PROD with NOTICES
disaster recovery systems (for purposes
of the Fee Schedule, the ‘‘Disaster 80 FR 68373 (November 4, 2015) (SR–MIAX–2015–
The Exchange believes that its
Recovery Facility’’).3 The Exchange also 61). proposal to amend its Fee Schedule is
4 The term ‘‘System’’ means the automated
1 15 U.S.C. 78s(b)(1). trading system used by the Exchange for the trading 7 See Chicago Board Options Exchange,
2 17 CFR 240.19b–4. of securities. See Exchange Rule 100. Incorporated (‘‘CBOE’’) Fees Schedule, p. 13; see
3 See Exchange Rule 321. See also, Securities 5 See Fee Schedule Section 4(c).
also NASDAQ PHLX LLC (‘‘Phlx’’) Pricing
Exchange Act Release No. 76303 (October 29, 2015), 6 See Fee Schedule Section 4(d). Schedule, Section XI [sic].
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![Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices 67019
proposed rule change between the Change the criteria required to receive An LMM is a registered Nasdaq
Commission and any person, other than the rebates provided by the Lead Market market maker for a Qualified Security
those that may be withheld from the Maker (‘‘LMM’’) Program; (ii) change the that has committed to maintain
public in accordance with the rebates offered by the LMM Program; minimum performance standards. An
provisions of 5 U.S.C. 552, will be and (iii) rename the program the LMM is selected by Nasdaq based on
available for Web site viewing and Designated Liquidity Provider (‘‘DLP’’) several factors including, but not
printing in the Commission’s Public Program, as described further below. limited to, experience with making
Reference Room, 100 F Street NE., While these amendments are effective markets in exchange-traded funds and
Washington, DC 20549 on official upon filing, the Exchange has index-linked securities, adequacy of
business days between the hours of designated the proposed amendments to capital, willingness to promote Nasdaq
10:00 a.m. and 3:00 p.m. Copies of the be operative on October 3, 2016. as a marketplace, issuer preference,
filing also will be available for The text of the proposed rule change operational capacity, support personnel,
inspection and copying at the principal is available on the Exchange’s Web site and history of adherence to Nasdaq
office of the Exchange. All comments at http://nasdaq.cchwallstreet.com, at rules and securities laws. Nasdaq may
received will be posted without change; the principal office of the Exchange, and limit the number of LMMs in a security,
the Commission does not edit personal at the Commission’s Public Reference or modify a previously established limit,
identifying information from Room. upon prior written notice to members.
submissions. You should submit only Rule 7014(f)(4) sets forth the criteria
information that you wish to make II. Self-Regulatory Organization’s required, and the rebates and reduced
available publicly. All submissions Statement of the Purpose of, and fees provided, by the LMM Program.
should refer to File Number SR–MIAX– Statutory Basis for, the Proposed Rule Currently, there are three tiers based on
2016–32 and should be submitted on or Change the amount of time an LMM is at the
before October 20, 2016. national best bid and offer (‘‘NBBO’’).
In its filing with the Commission, the
For the Commission, by the Division of Exchange included statements Specifically, if an LMM is above 15% to
Trading and Markets, pursuant to delegated
concerning the purpose of and basis for 20% at the NBBO, it qualifies for: (i) A
authority.14 Displayed Liquidity Rebate (for
the proposed rule change and discussed
Brent J. Fields,
any comments it received on the executions $1 per share and above) of
Secretary. proposed rule change. The text of these $0.0040 per executed share; (ii) a
[FR Doc. 2016–23497 Filed 9–28–16; 8:45 am] statements may be examined at the Displayed Liquidity Rebate (for
BILLING CODE 8011–01–P places specified in Item IV below. The executions less than $1 per share) of
Exchange has prepared summaries, set $0.0000 per executed share; and (iii) a
forth in sections A, B, and C below, of maximum fee of $0.0005 per executed
SECURITIES AND EXCHANGE the most significant aspects of such share for participation in the Halt,
COMMISSION statements. Opening, and Closing Crosses.3 If an
LMM is above 20% to 50% at the
[Release No. 34–78912; File No. SR–
NASDAQ–2016–130]
A. Self-Regulatory Organization’s NBBO, it qualifies for: (i) A Displayed
Statement of the Purpose of, and Liquidity Rebate (for executions $1 per
Self-Regulatory Organizations; The Statutory Basis for, the Proposed Rule share and above) of $0.0043 per
NASDAQ Stock Market LLC; Notice of Change executed share; (ii) a Displayed
Filing and Immediate Effectiveness of 1. Purpose Liquidity Rebate (for executions less
Proposed Rule Change To Amend than $1 per share) of $0.0000 per
Nasdaq’s Fees at Rule 7014(f) The purpose of the proposed rule executed share; and (iii) a maximum fee
change is to: (i) Change the criteria of $0.0000 per executed share for
September 23, 2016. required to receive the rebates provided participation in the Halt, Opening, and
Pursuant to Section 19(b)(1) of the by the LMM Program; (ii) change the Closing Crosses. Last, if an LMM is
Securities Exchange Act of 1934 rebates offered by the LMM Program; above 50% at the NBBO, it qualifies for:
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 and (iii) rename the program the (i) A Displayed Liquidity Rebate (for
notice is hereby given that on Designated Liquidity Provider Program. executions $1 per share and above) of
September 16, 2016, The NASDAQ $0.0046 per executed share; (ii) a
The LMM Program is designed to
Stock Market LLC (‘‘Nasdaq’’ or Displayed Liquidity Rebate (for
provide incentives to market makers to
‘‘Exchange’’) filed with the Securities executions less than $1 per share) of
make markets in certain exchange-
and Exchange Commission (‘‘SEC’’ or $0.0000 per executed share; and (iii) a
traded products (‘‘ETPs’’). To achieve
‘‘Commission’’) the proposed rule maximum fee of $0.0000 per executed
this goal, Nasdaq provides credits to a
change as described in Items I, II, and share for participation in the Halt,
designated LMM for execution of a
III, below, which Items have been Opening, and Closing Crosses.
Qualified Security. Under Rule
prepared by the Exchange. The The Exchange is proposing to amend
7014(f)(1), a Qualified Security is
Commission is publishing this notice to the rebates and criteria under the
defined as an exchange-traded fund or
solicit comments on the proposed rule program to also take into consideration
index-linked security listed on Nasdaq
change from interested persons. certain characteristics of the individual
pursuant to Nasdaq Rules 5705
I. Self-Regulatory Organization’s (Exchange Traded Funds: Portfolio ETP.
Statement of the Terms of Substance of Depository Receipts and Index Fund
mstockstill on DSK3G9T082PROD with NOTICES
3 A member participating in the Halt Cross would
the Proposed Rule Change Shares), 5710 (Securities Linked to the otherwise be assessed a fee of $0.0010 per share
The Exchange proposes to amend the Performance of Indexes and executed (see Rule 7018(f)). A member participating
Exchange’s fees at Rule 7014(f) to: (i) Commodities, Including Currencies), in the Opening Cross would otherwise be assessed
5720 (Trust Issued Receipts), 5735 a fee of no less than $0.0008 per share executed (see
Rule 7018(e)). A member participating in the
14 17 CFR 200.30–3(a)(12). (Managed Fund Shares), or 5745 Closing Cross would otherwise be assessed a fee of
1 15 U.S.C. 78s(b)(1). (NextShares), and it must have at least no less than $0.0008 per share executed (see Rule
2 17 CFR 240.19b–4. one LMM. 7018(d)).
VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\29SEN1.SGM 29SEN1](https://thefederalregister.org/doc/81_FR_67205/page/4.svg)
Document Created: 2016-09-29 04:14:59
Document Modified: 2016-09-29 04:14:59
| 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 67016 |
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