81 FR 81854 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 223 (November 18, 2016)
Federal Register Volume 81, Issue 223 (November 18, 2016)
| Page Range | 81854-81856 | |
| FR Document | 2016-27741 |
[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)] [Notices] [Pages 81854-81856] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-27741] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79301; File No. SR-MIAX-2016-42] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule November 14, 2016. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that [[Page 81855]] on October 31, 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''). The text of the proposed rule change is available on the Exchange's Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at MIAX's principal office, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the MIAX Select Symbols \3\ section of the Priority Customer Rebate Program (the ``Program'') \4\ to delete the option class ``AA'' associated with the corporation Alcoa Inc. (``Alcoa''). Alcoa announced a corporate transaction that will result in the company's separation into two independent publicly-traded companies, Alcoa Corporation and Arconic, Inc. (``Arconic'').\5\ The separation is to become effective before the opening of the market on November 1, 2016 and is structured to be effected by means of a pro rata distribution by Alcoa of 80.1% of the outstanding common stock of Alcoa Corporation. Arconic will retain 19.9% of Alcoa Corporation common stock.\6\ In connection with this distribution, on November 1, 2016, Alcoa will change its name to ``Arconic Inc.'' and its ticker symbol from ``AA'' to ``ARNC'' and Alcoa Corporation will trade as an independent company under the ticker symbol ``AA''.\7\ The Exchange has decided not to include the surviving entity Arconic in the list of MIAX Select Symbols. The Exchange now proposes to amend the Fee Schedule to delete the symbol ``AA'' in the list of MIAX Select Symbols to correspond with this change. The change is designed to ensure that there is no confusion amongst market participants and to clarify that Arconic will not become a MIAX Select Symbol. The proposed change is to become effective November 1, 2016. --------------------------------------------------------------------------- \3\ The term ``MIAX Select Symbols'' currently means options overlying AA, AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT, CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, SUNE, T, TSLA, USO, VALE, VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM, XOP, and YHOO. \4\ See Securities Exchange Act Release Nos. 74291 (February 18, 2015), 80 FR 9841 (February 24, 2015) (SR-MIAX-2015-09); 73328 (October 9, 2014), 79 FR 62230 (October 16, 2014) (SR-MIAX-2014-50); 72567 (July 8, 2014), 79 FR 40818 (July 14, 2014) (SR-MIAX-2014-34); 72356 (June 10, 2014), 79 FR 34384 (June 16, 2014) (SR-MIAX-2014- 26); 71698 (March 12, 2014), 79 FR 15185 (March 18, 2014) (SR-MIAX- 2014-12); 71700 (March 12, 2014), 79 FR 15188 (March 18, 2014) (SR- MIAX-2014-13); 71283 (January 10, 2014), 79 FR 2914 (January 16, 2014) (SR-MIAX-2013-63); 71009 (December 6, 2013), 78 FR 75629 (December 12, 2013) (SR-MIAX-2013-56). \5\ See ``Alcoa Inc. Board of Directors Approves Separation of Company, Separation Date to be November 1, 2016, Distribution Ratio of Alcoa Corporation Common Stock Set'', www.Business Wire.com, September 29, 2016, 04:40 p.m. Eastern Daylight Time; see also www.Alcoa.com under ``Investor News Releases''. \6\ Id. \7\ Id. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is 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). --------------------------------------------------------------------------- In particular, the proposal to delete the ``AA'' symbol from the list of MIAX Select Symbols is consistent with Section 6(b)(4) of the Act because the proposed change will allow for continued benefit to investors by providing them an updated list of Select Symbols in the Fee Schedule. The Exchange believes that the proposal to amend an option class that qualifies for the credit for transactions in MIAX Select Symbols is fair, equitable and not unreasonably discriminatory. The credit for transactions in the select symbols is reasonably designed because it will incent providers of Priority Customer order flow to send that Priority Customer order flow to the Exchange in order to receive a credit in a manner that enables the Exchange to improve its overall competitiveness and strengthen its market quality for all market participants. The Program which provides increased incentives in high volume select symbols is also reasonably designed to increase the competitiveness of the Exchange with other options exchanges that also offer increased incentives to higher volume symbols. The Exchange also believes that its proposal is consistent with Section 6(b)(5) of the Act because it will apply equally to all Priority Customer orders in the select symbols. All similarly situated Priority Customer orders in the select symbols are subject to the same rebate schedule, and access to the Exchange is offered on terms that are not unfairly discriminatory. In addition, the Program is equitable and not unfairly discriminatory because, while only Priority Customer order flow qualifies for the Program, an increase in Priority Customer order flow will bring greater volume and liquidity, which benefit all market participants by providing more trading opportunities and tighter spreads. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is a not a competitive filing but rather is designed to update the list of Select Symbols in order to avoid potential confusion on the part of market participants. [[Page 81856]] 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,\11\ and Rule 19b-4(f)(2) \12\ 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. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A)(ii). \12\ 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-2016-42 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-2016-42. 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-2016-42 and should be submitted on or before December 9, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-27741 Filed 11-17-16; 8:45 am] BILLING CODE 8011-01-P
![81854 Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices
securities association.72 In particular, also recognizes, however, FINRA’s own Taking into consideration the
the Commission finds that the proposed concerns about identity theft, and its comments and FINRA’s response, the
rule change is consistent with Section belief that ‘‘the Party Portal provides Commission believes that the proposal
15A(b)(6) of the Exchange Act,73 which parties with enhanced security over is consistent with the Exchange Act.
requires, among other things, that other methods of document The Commission believes that the
FINRA rules be designed to prevent transmittal.’’ 79 The Commission further proposal will help protect investors and
fraudulent and manipulative acts and recognizes, as FINRA explained in its the public interest by enhancing
practices, to promote just and equitable response to comments, that parties in efficiencies for FINRA arbitration forum
principles of trade, and, in general, to Simplified Arbitrations (as well as pro users and expediting case
protect investors and the public interest. se parties not using the Party Portal) are administration by FINRA staff by,
The Commission notes that two not restricted from redacting their among other things, improving the case
commenters strongly supported the documents should they choose to do intake process and helping ensure better
proposal, two commenters generally so.80 Finally, the Commission data accuracy.87 The Commission
supported the proposal but had some recognizes that ‘‘FINRA has a dedicated further believes that FINRA’s response,
recommended modifications, and one Web page encouraging parties to take as discussed in more detail above,
commenter did not appear to address steps to protect their [personal appropriately addressed commenters’
the substance of the proposed rule confidential information] regardless of concerns and adequately explained its
change. With respect to payment of fees, any exemptions in the Codes.’’ 81 reasons for declining to modify its
the Commission recognizes the With respect to the proposal’s proposal to allow for payment by
recommendations by two commenters requirement that parties file discovery personal check or to extend FINRA’s
that FINRA allow payment by personal correspondence through the Party current redaction requirements to
check, either for parties for damages Portal, the Commission recognizes one simplified proceedings. The
under $100,000 or for all parties.74 The commenter’s concern that the ‘‘proposal Commission believes that the approach
Commission also recognizes, however, is unclear as to how matters involving proposed by FINRA is appropriate and
FINRA’s efforts to clarify and streamline pro se parties who chose not to utilize designed to protect investors and the
the electronic payment process for its the Portal should be handled.’’ 82 The public interest, consistent with Section
users, including, among other things, Commission further recognizes FINRA’s 15A(b)(6) of the Exchange Act. For these
permitting Party Portal users to remit clarification that, under the proposal, reasons, the Commission finds that the
payment by phone if needed by pro se parties would be required to file proposed rule change is consistent with
providing the ABA routing number and discovery correspondence by an the Exchange Act and the rules and
bank account number found on the alternate method as enumerated in Rule regulations thereunder.
user’s personal check.75 The 12300(a)(2)(C).83
With respect to rules regarding V. Conclusion
Commission further recognizes the
‘‘efficiencies afforded by electronic service, the Commission recognizes that It is therefore ordered, pursuant to
payment,’’ 76 including the ability for one commenter’s suggestion that FINRA Section 19(b)(2) of the Exchange Act,88
FINRA staff to immediately discern issue a Notice to Members ‘‘setting forth that the proposed rule change (SR–
whether a filing is deficient for lack of a list of the specific filings which must FINRA–2016–029) be, and hereby is,
payment. be made outside of the Party Portal once approved.
With respect to the protection of the rule is implemented’’ in order to
For the Commission, by the Division of
personal confidential information, the ‘‘allow practitioners an opportunity to
Trading and Markets, pursuant to delegated
Commission recognizes the concerns review all the exceptions to filing via authority.89
expressed by two commenters that, the Portal in one place.’’ 84 The Brent J. Fields,
under the proposal, FINRA’s exemption Commission further recognizes FINRA’s
Secretary.
of the redaction requirements in current agreement with this suggestion and its
[FR Doc. 2016–27739 Filed 11–17–16; 8:45 am]
Rule 12300 for parties in Simplified intent to ‘‘provide a list of such filings
in a Regulatory Notice announcing BILLING CODE 8011–01–P
Arbitrations—disputes where the
amount at issue is $50,000 or less—will approval of the proposed rule change as
well as in guidance on the FINRA Web
remain unchanged.77 The Commission SECURITIES AND EXCHANGE
site.’’ 85
recognizes the commenters’ concerns Finally, the Commission recognizes COMMISSION
that exempting Simplified Arbitrations FINRA’s statement that of the 13,562 [Release No. 34–79301; File No. SR–MIAX–
from FINRA’s redaction requirements, parties invited to use the portal as of 2016–42]
while requiring claimants to file May 11, 2016 (including customers,
documents electronically through the firms, and associated persons), ‘‘76 Self-Regulatory Organizations; Miami
Party Portal, puts claimants in percent of customers, including pro se International Securities Exchange LLC;
Simplified Arbitrations at greater risk of customers, have been using the Party Notice of Filing and Immediate
identity theft and/or other information Portal voluntarily and 82 percent of Effectiveness of a Proposed Rule
security breaches.78 The Commission firms and associated persons, which Change To Amend Its Fee Schedule
72 In approving the proposed rule change, the
includes firm representatives, have been November 14, 2016.
using the Party Portal voluntarily (78
Commission has also considered its impact on Pursuant to the provisions of Section
efficiency, competition, and capital formation. See percent in total).’’ 86
19(b)(1) of the Securities Exchange Act
mstockstill on DSK3G9T082PROD with NOTICES
15 U.S.C. 78c(f).
73 15 U.S.C. 78o–3(b)(6). 79 See FINRA Letter at 3.
of 1934 (‘‘Act’’) 1 and Rule 19b–4
74 See IAC Letter at 2; PIABA Letter at 2. 80 Id. thereunder,2 notice is hereby given that
75 See FINRA Letter at 2. 81 Id.
82 PIABA 87 Notice,81 FR at 54866.
76 Id. Letter at 2.
83 See 88 15 U.S.C. 78s(b)(2).
77 See PIABA Letter at 1; see also IAC Letter at FINRA Letter at 3.
84 PIABA Letter at 2. 89 17 CFR 200.30–3(a)(12).
2–3.
78 See PIABA Letter at 1–2; see also IAC Letter at 85 FINRA Letter at 3–4. 1 15 U.S.C. 78s(b)(1).
2–3. 86 Notice, 81 FR at 54867. 2 17 CFR 240.19b–4.
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![81856 Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices
C. Self-Regulatory Organization’s proposed rule change between the U.S.C. 80a–18(f)). A fund relying on the
Statement on Comments on the Commission and any person, other than rule must file Form N–18F–1 (17 CFR
Proposed Rule Change Received From those that may be withheld from the 274.51) to notify the Commission of this
Members, Participants, or Others public in accordance with the election. The Commission staff
Written comments were neither provisions of 5 U.S.C. 552, will be estimates that 38 funds file Form N–
solicited nor received. available for Web site viewing and 18F–1 annually, and that each response
printing in the Commission’s Public takes one hour. Based on these
III. Date of Effectiveness of the Reference Room, 100 F Street NE., estimates, the total annual burden hours
Proposed Rule Change and Timing for Washington, DC 20549, on official associated with the rule is estimated to
Commission Action business days between the hours of be 38 hours.
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the The estimate of average burden hours
effective pursuant to Section filing also will be available for is made solely for the purposes of the
19(b)(3)(A)(ii) of the Act,11 and Rule inspection and copying at the principal Paperwork Reduction Act, and is not
19b–4(f)(2) 12 thereunder. At any time office of the Exchange. All comments derived from a comprehensive or even
within 60 days of the filing of the received will be posted without change; a representative survey or study of the
proposed rule change, the Commission the Commission does not edit personal costs of Commission rules. An agency
summarily may temporarily suspend identifying information from may not conduct or sponsor, and a
such rule change if it appears to the submissions. You should submit only person is not required to respond to, a
Commission that such action is information that you wish to make collection of information unless it
necessary or appropriate in the public available publicly. All submissions displays a currently valid OMB control
interest, for the protection of investors, should refer to File Number SR–MIAX– number.
or otherwise in furtherance of the 2016–42 and should be submitted on or Written comments are invited on: (a)
purposes of the Act. If the Commission before December 9, 2016. Whether the collection of information is
takes such action, the Commission shall For the Commission, by the Division of necessary for the proper performance of
institute proceedings to determine Trading and Markets, pursuant to delegated the functions of the Commission,
whether the proposed rule should be authority.13 including whether the information has
approved or disapproved. Brent J. Fields, practical utility; (b) the accuracy of the
Secretary. Commission’s estimate of the burden of
IV. Solicitation of Comments
[FR Doc. 2016–27741 Filed 11–17–16; 8:45 am] the collection of information; (c) ways to
Interested persons are invited to enhance the quality, utility, and clarity
BILLING CODE 8011–01–P
submit written data, views, and of the information collected; and (d)
arguments concerning the foregoing, ways to minimize the burden of the
including whether the proposed rule SECURITIES AND EXCHANGE collection of information on
change is consistent with the Act. COMMISSION respondents, including through the use
Comments may be submitted by any of of automated collection techniques or
the following methods: Proposed Collection; Comment other forms of information technology.
Request Consideration will be given to
Electronic Comments
Upon Written Request, Copies Available comments and suggestions submitted in
• Use the Commission’s Internet writing within 60 days of this
comment form (http://www.sec.gov/ From: Securities and Exchange
Commission, Office of Investor publication.
rules/sro.shtml); or Please direct your written comments
• Send an email to rule-comments@ Education and Advocacy,
to Pamela Dyson, Director/Chief
sec.gov. Please include File Number SR– Washington, DC 20549–0213.
Information Officer, Securities and
MIAX–2016–42 on the subject line. Extension: Exchange Commission, C/O Remi
Rule 18f–1 and Form N–18f–1, SEC File
Paper Comments No. 270–187, OMB Control No. 3235–
Pavlik-Simon, 100 F Street NE.,
• Send paper comments in triplicate 0211 Washington, DC 20549; or send an email
to Secretary, Securities and Exchange to: PRA_Mailbox@sec.gov.
Notice is hereby given that, pursuant
Commission, 100 F Street NE., to the Paperwork Reduction Act of 1995 Dated: November 14, 2016.
Washington, DC 20549–1090. (44 U.S.C. 3501–3520), the Securities Brent J. Fields,
All submissions should refer to File and Exchange Commission Secretary.
Number SR–MIAX–2016–42. This file (‘‘Commission’’) is soliciting comments [FR Doc. 2016–27750 Filed 11–17–16; 8:45 am]
number should be included on the on the collection of information BILLING CODE 8011–01–P
subject line if email is used. To help the summarized below. The Commission
Commission process and review your plans to submit this existing collection
comments more efficiently, please use of information to the Office of SMALL BUSINESS ADMINISTRATION
only one method. The Commission will Management and Budget for extension
post all comments on the Commission’s and approval. [Disaster Declaration #14970 and #14971]
Internet Web site (http://www.sec.gov/ Rule 18f–1 (17 CFR 270.18f–1)
enables a registered open-end North Carolina Disaster #NC–00086
rules/sro.shtml). Copies of the
submission, all subsequent management investment company AGENCY: U.S. Small Business
(‘‘fund’’) that may redeem its securities
mstockstill on DSK3G9T082PROD with NOTICES
amendments, all written statements Administration.
with respect to the proposed rule in-kind, by making a one-time election, ACTION: Notice.
change that are filed with the to commit to make cash redemptions
Commission, and all written pursuant to certain requirements SUMMARY: This is a Notice of the
communications relating to the without violating section 18(f) of the Presidential declaration of a major
Investment Company Act of 1940 (15 disaster for Public Assistance Only for
11 15 U.S.C. 78s(b)(3)(A)(ii). the State of North Carolina (FEMA–
12 17 CFR 240.19b–4(f)(2). 13 17 CFR 200.30–3(a)(12). 4285–DR), dated 11/10/2016.
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Document Created: 2018-02-14 08:32:04
Document Modified: 2018-02-14 08:32:04
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 81854 |
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