81 FR 83896 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 605 Market Maker Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 225 (November 22, 2016)
Federal Register Volume 81, Issue 225 (November 22, 2016)
| Page Range | 83896-83899 | |
| FR Document | 2016-28025 |
[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)] [Notices] [Pages 83896-83899] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28025] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79331; File No. SR-MIAX-2016-43] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 605 Market Maker Orders November 16, 2016. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on November 3, 2016, Miami International Securities Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') a proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend Exchange Rule 605 (Market Maker Orders). 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 purpose of the proposed rule change is to amend Exchange Rule 605 (Market Maker Orders) to (i) provide that a MIAX Market Maker \3\ may not enter good `til cancelled (``GTC'') orders \4\ in option classes to which the MIAX Market Maker is not appointed, and (ii) add a comparable provision setting forth the types of orders that an Electronic Exchange Member (``EEM'') \5\ [[Page 83897]] may enter for the proprietary account of a non-MIAX Market Maker.\6\ --------------------------------------------------------------------------- \3\ The term ``Market Maker'' refers to ``Lead Market Makers'', ``Primary Lead Market Makers'' and ``Registered Market Makers'', collectively. See Exchange Rule 100. \4\ A Good `til Cancelled or ``GTC'' order is an order to buy or sell which remains in effect until it is either executed, cancelled or the underlying option expires. See Exchange Rule 516(l). \5\ The term ``Electronic Exchange Member'' means the holder of a Trading permit who is not a Market Maker. Electronic Exchange members are deemed ``members'' under the Exchange Act. See Exchange Rule 100. \6\ The term ``non-MIAX Market Maker'' means a market participant that is market maker registered as such on another options exchange. See Exchange Fee Schedule, Section 1)a)ii), Other Market Participant Fees, in the notes table. --------------------------------------------------------------------------- Rule 605 presently governs the submission of orders by MIAX Market Makers, differentiating between orders submitted in classes to which the Market Maker is appointed and orders submitted in classes to which the Market Maker is not appointed. Paragraph (a) governs option classes to which the Market Maker is appointed. Pursuant to paragraph (a), Market Makers may not enter market orders or GTC orders in their appointed classes. Paragraph (b) governs option classes other than those to which the Market Maker is appointed. Subparagraph (b)(1) provides that Market Makers may enter all types of orders that are permitted to be entered by Non-Customer \7\ participants under the Rules, except for market orders. Subparagraphs (b)(2) and (b)(3) place limitations on the overall percentage of executions that can occur in the non-appointed classes. Specifically, subparagraph (b)(2) limits a Registered Market Maker's \8\ total number of contracts executed in non-appointed option classes to 25% of the Registered Market Maker's total number of contracts executed in its appointed option classes, and subparagraph (b)(3) limits a Lead Market Maker's \9\ total number of contracts executed in non-appointed option classes to 10% of the Lead Market Maker's total number of contracts executed in its appointed option classes. Paragraph (c) governs priority of Market Maker orders, providing that Market Maker orders will always be allocated with other Professional Interest \10\ (such as orders from broker-dealers, firms, non-Priority Customers \11\ and non-priority Market Maker quotes) and after both Priority Customer interest and priority Market Maker quotes have been satisfied. The Exchange is not proposing to amend paragraph (a), subparagraphs (b)(2) or (b)(3), or paragraph (c). --------------------------------------------------------------------------- \7\ The term ``Non-Customer'' means a person or entity that is a broker or dealer in securities. See Exchange Rule 100. \8\ The term ``Registered Market Maker'' means a Member registered with the Exchange for the purpose of making markets in securities traded on the Exchange, who is not a Lead Market Maker and is vested with the rights and responsibilities specified in Chapter VI of these Rules with respect to Registered Market Makers. See Exchange Rule 100. \9\ The term ``Lead Market Maker'' means a Member registered with the Exchange for the purpose of making markets in securities traded on the Exchange and that is vested with the rights and responsibilities specified in Chapter VI of these Rules with respect to Lead Market Makers. When a Lead Market Maker is appointed to act in the capacity of a Primary Lead Market Maker, the additional rights and responsibilities of a Primary Lead Market Maker specified in Chapter VI of these Rules will apply. See Exchange Rule 100. \10\ The term ``Professional Interest'' means (i) an order that is for the account of a person or entity that is not a Priority Customer, or (ii) an order or non-priority quote for the account of a Market Maker. See Exchange Rule 100. \11\ The term ``Priority Customer'' means an order for the account of a Priority Customer. See Exchange Rule 100. --------------------------------------------------------------------------- The Exchange is proposing to amend subparagraph (b)(1) to provide that a Market Maker may not enter GTC orders in option classes to which the Market Maker is not appointed. Thus, as amended, pursuant to subparagraph (b)(1), a Market Maker may enter all order types permitted to be entered by Non-Customer participants under the Rules, except for market orders and GTC orders, in classes of options to which the Market Maker is not appointed. The purpose of this amendment is to make the permissible order types for Market Makers in non-appointed option classes consistent with the permissible order types in their appointed option classes. Accordingly, in both appointed and non-appointed option classes, Market Makers may enter all order types, except for market orders and GTC orders. The Exchange believes that making the permissible order types for Market Makers consistent in both appointed and non-appointed options classes simplifies order types across the Exchange for such participants. The Exchange also believes that GTC orders offer no advantage to Market Makers over day limit orders (which are a permissible order type for Market Makers in both appointed and non-appointed option classes) under the Exchange's market structure, including, but not limited to, under the priority and trade allocation rules (Exchange Rule 514) and various risk protection mechanism rules applicable to Market Makers (such as, for example, Exchange Rule 612, Aggregate Risk Manager). When the Exchange initially adopted Exchange Rule 605, the Exchange determined to permit Market Makers to enter GTC orders in non-appointed option classes. However, since adoption, the Exchange has observed that Market Makers generally have not entered GTC orders in their non-appointed option classes. Accordingly, since this is an unused order type for Market Makers and in order to promote consistency across the Exchange of available order types for Market Makers, the Exchange now proposes that Market Makers may not enter GTC orders in non-appointed option classes so that the permissible order types for Market Makers in non-appointed option classes are the same as those for Market Makers in appointed option classes. The Exchange is also proposing to add new paragraph (d) to Rule 605 to establish the permissible order types that an EEM may enter for the proprietary account of a non-MIAX Market Maker. Pursuant to proposed paragraph (d), the permissible order types that an EEM may enter for the proprietary account of a non-MIAX Market Maker includes all order types permitted to be entered under the Rules by Members, except for market orders and GTC orders. Accordingly, the Exchange is proposing to make the permissible order types for non-MIAX Market Makers consistent with the permissible order types for MIAX Market Makers. The Exchange believes that making the permissible order types for the accounts of non-MIAX Market Makers consistent with the permissible order types for MIAX Market Makers simplifies order types across the Exchange for such participants. As discussed above, the Exchange also believes that GTC orders offer no advantage to non-MIAX Market Makers over day limit orders (which are a permissible order type for non-MIAX Market Makers) under the Exchange's market structure, including, but not limited to, under the priority and trade allocation rules (Exchange Rule 514) and various risk protection mechanism rules applicable to EEMs (such as, for example, Exchange Rule 519, MIAX Order Monitor, and Exchange Rule 519A, Risk Protection Monitor). The Exchange further believes that non- MIAX Market Makers (and, for that matter, MIAX Market Makers) are sophisticated professionals and thus generally do not use market orders. When the Exchange initially adopted Exchange Rule 605, the Exchange did not place any limitation on the types of orders that could be entered by an EEM for the proprietary account of a non-MIAX Market Maker. However, since adoption, the Exchange has observed that EEMs generally have not entered GTC orders or market orders for the proprietary account of non-MIAX Market Makers. Accordingly, since these are unused order types for non-MIAX Market Makers and in order to promote consistency across the Exchange of available order types for both non-MIAX Market Makers and Market Makers, the Exchange now proposes that EEMs may not enter GTC orders or market orders for the proprietary accounts of non-MIAX Market Makers so that the [[Page 83898]] permissible order types available to non-MIAX Market Makers are the same as those for Market Makers. The Exchange believes that its proposal to define the permissible order types that an EEM may enter for the proprietary account of a non- MIAX Market Maker to include all order types permitted to be entered under the Rules by Members, except for market orders and GTC orders, is reasonable, equitable and not unfairly discriminatory because the same rule applies identically to MIAX Market Makers. Thus, the Exchange is treating all market makers (both MIAX Market Makers and non-MIAX Market Makers) the same, with respect to permissible order types for such market participants. The Exchange notes that there is no uniform treatment of permissible order types for market makers among the various options exchanges. Some exchanges place no limitation on the types of orders that can be entered by market makers, such as NYSE Arca, Inc. (``NYSE Arca'') and NYSE MKT LLC (``NYSE MKT'').\12\ Both such exchanges permit a market maker to enter all order types permitted to be entered by users under the rules, in both appointed and non-appointed option classes. Other exchanges do place certain limitations on permissible order types, with varying degree. Some differentiate between appointed and non-appointed options classes, and some don't. For example, International Securities Exchange, LLC (``ISE'') permits opening only orders, IOC orders, market orders, fill-or-kill orders, sweep orders, complex orders, and block-size orders in appointed classes.\13\ It permits all order types permissible for non-customers in non-appointed classes.\14\ NASDAQ PHLX LLC (``PHLX'') permits limit on opening, IOC, sweep, and day limit in appointed classes; and limit on opening, IOC, sweep, day limit, and GTC in non-appointed classes.\15\ Accordingly, the Exchange believes that each options exchange generally determines permissible order types for market makers in its trading environment based on the exchange's individual business policy, objectives, and trading system. The Exchange's proposal reflects its policy and objectives, and it treats all market makers uniformly with respect to permissible order types. Therefore, the Exchange believes that the structure that it is proposing is reasonable, equitable, and not unfairly discriminatory. --------------------------------------------------------------------------- \12\ See NYSE Arca Rule 6.37C and NYSE Mkt Rule 925.2NY. \13\ See ISE Rule 805. \14\ Id. \15\ See PHLX Rule 1080(b). --------------------------------------------------------------------------- The Exchange will announce the implementation date of the proposed rule change by Regulatory Circular to be published no later than 60 days following the operative date of the proposed rule. The implementation date will be no later than 60 days following the issuance of the Regulatory Circular. 2. Statutory Basis MIAX believes that its proposed rule change is consistent with Section 6(b) of the Act \16\ in general, and furthers the objectives of Section 6(b)(5) of the Act \17\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78f(b). \17\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the Exchange believes this proposed rule change promotes just and equitable principles of trade because it simplifies order types across the Exchange for Market Makers. It eliminates order types that generally have not been entered by Market Makers and non- MIAX Market Makers. It makes consistent the types of orders than can be entered for both Market Makers and non-MIAX Market Makers. It makes the permissible order types for Market Makers in non-appointed option classes consistent with the permissible order types in their appointed option classes. The Exchange believes that making the permissible order types for Market Makers consistent in both appointed and non-appointed options classes simplifies order types across the Exchange for such participants. The Exchange also believes that GTC orders offer no advantage to Market Makers over day limit orders (which are a permissible order type for Market Makers in both appointed and non- appointed option classes) under the Exchange's market structure, including, but not limited to, under the priority and trade allocation rules (Exchange Rule 514) and various risk protection mechanism rules applicable to Market Makers (such as, for example, Exchange Rule 612, Aggregate Risk Manager). The Exchange has observed that Market Makers generally have not entered GTC orders in their non-appointed option classes. Accordingly, since this is an unused order type for Market Makers and in order to promote consistency across the Exchange of available order types for Market Makers, the Exchange believes that its proposed rule change to provide that Market Makers may not enter GTC orders in non-appointed option classes so that the permissible order types for Market Makers in non-appointed option classes are the same as those for Market Makers in appointed option classes promotes just and equitable principles of trade. The Exchange believes that its proposal to define the permissible order types that an EEM may enter for the proprietary account of a non- MIAX market maker to include all order types permitted to be entered under the Rules by Members, except for market orders and GTC orders, is reasonable, equitable and not unfairly discriminatory because the same rule applies identically to MIAX Market Makers. Thus, the Exchange is treating all market makers (both MIAX Market Makers and non-MIAX market makers) the same, with respect to permissible order types for such market participants. The Exchange also believes that GTC orders offer no advantage to non-MIAX Market Makers over day limit orders (which are a permissible order type for non-MIAX Market Makers) under the Exchange's market structure, including, but not limited to, under the priority and trade allocation rules (Exchange Rule 514) and various risk protection mechanism rules applicable to EEMs (such as, for example, Exchange Rule 519, MIAX Order Monitor, and Exchange Rule 519A, Risk Protection Monitor). The Exchange further believes that non-MIAX Market Makers (and, for that matter, MIAX Market Makers) are sophisticated professionals and thus generally do not use market orders. The Exchange has observed that EEMs generally have not entered GTC orders or market orders for the proprietary account of non-MIAX Market Makers. Accordingly, since these are unused order types for non- MIAX Market Makers and in order to promote consistency across the Exchange of available order types for both non-MIAX Market Makers and Market Makers, the Exchange believes that its proposal that EEMs may not enter GTC orders or market orders for the proprietary accounts of non-MIAX Market Makers so that the permissible order types available to non-MIAX Market Makers are the same as those for Market Makers promotes just and equitable principles of trade. [[Page 83899]] B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange operates in a highly competitive market comprised of fourteen U.S. options exchanges in which sophisticated and knowledgeable market participants can, and do, send order flow to competing exchanges if they deem trading practices at a particular exchange to be onerous or cumbersome. The proposed rule change allows the Exchange to make consistent across the Exchange the permissible order types available for both MIAX Market Makers and non-MIAX market makers. This consistency places all such market participants on an equal footing, and, as a consequence, will not impose any burden on competition. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to 19(b)(3)(A) of the Act \18\ and Rule 19b-4(f)(6) \19\ thereunder. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(A). \19\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-2016-43 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-MIAX-2016-43. 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-2016-43 and should be submitted on or before December 13, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-28025 Filed 11-21-16; 8:45 am] BILLING CODE 8011-01-P
![83896 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices
LOP implementation date. The waiver All submissions should refer to File thereunder,2 notice is hereby given that
would also permit the Exchange to Number SR–NASDAQ–2016–155. This on November 3, 2016, Miami
immediately clarify the application of file number should be included on the International Securities Exchange LLC
the LOP to modified orders. Moreover, subject line if email is used. To help the (‘‘MIAX’’ or ‘‘Exchange’’) filed with the
the waiver would allow the Exchange to Commission process and review your Securities and Exchange Commission
immediately exclude from the LOP comments more efficiently, please use (‘‘Commission’’) a proposed rule change
Market Pegging Orders, Primary Pegging only one method. The Commission will as described in Items I, II, and III below,
Orders, and Midpoint Pegging Orders post all comments on the Commission’s which Items have been prepared by the
that have a discretion price. As noted Internet Web site (http://www.sec.gov/ Exchange. The Commission is
above, the Exchange proposes to rules/sro.shtml). publishing this notice to solicit
exclude these Orders because these Copies of the submission, all comments on the proposed rule change
Orders may be intended to be aggressive subsequent amendments, all written from interested persons.
or to set the bid or offer on the market. statements with respect to the proposed
I. Self-Regulatory Organization’s
Moreover, as noted above, Market and rule change that are filed with the
Statement of the Terms of Substance of
Primary Pegging Orders are currently Commission, and all written
the Proposed Rule Change
subject to collars. Lastly, the waiver communications relating to the
would allow the Exchange’s rules to proposed rule change between the The Exchange is filing a proposal to
immediately and accurately reflect the Commission and any person, other than amend Exchange Rule 605 (Market
current collars for Market and Primary those that may be withheld from the Maker Orders).
Pegging Orders, which were removed public in accordance with the The text of the proposed rule change
inadvertently. Accordingly, the provisions of 5 U.S.C. 552, will be is available on the Exchange’s Web site
Commission finds that waiving the 30- available for Web site viewing and at http://www.miaxoptions.com/filter/
day operative delay is consistent with printing in the Commission’s Public wotitle/rule_filing, at MIAX’s principal
the protection of investors and the Reference Room, 100 F Street NE., office, and at the Commission’s Public
public interest and designates the Washington, DC 20549, on official Reference Room.
proposal operative upon filing.28 business days between the hours of II. Self-Regulatory Organization’s
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the Statement of the Purpose of, and
filing of such proposed rule change, the filing also will be available for Statutory Basis for, the Proposed Rule
Commission summarily may inspection and copying at the principal Change
temporarily suspend such rule change if office of the Exchange. All comments
it appears to the Commission that such received will be posted without change; In its filing with the Commission, the
action is necessary or appropriate in the the Commission does not edit personal Exchange included statements
public interest, for the protection of identifying information from concerning the purpose of and basis for
investors, or otherwise in furtherance of submissions. You should submit only the proposed rule change and discussed
the purposes of the Act. If the information that you wish to make any comments it received on the
Commission takes such action, the available publicly. All submissions proposed rule change. The text of these
Commission shall institute proceedings should refer to File Number SR– statements may be examined at the
to determine whether the proposed rule NASDAQ–2016–155 and should be places specified in Item IV below. The
change should be approved or submitted on or before December 13, Exchange has prepared summaries, set
disapproved. 2016. forth in sections A, B, and C below, of
the most significant aspects of such
IV. Solicitation of Comments For the Commission, by the Division of statements.
Trading and Markets, pursuant to delegated
Interested persons are invited to authority.29 A. Self-Regulatory Organization’s
submit written data, views, and Brent J. Fields, Statement of the Purpose of, and
arguments concerning the foregoing, Secretary. Statutory Basis for, the Proposed Rule
including whether the proposed rule Change
[FR Doc. 2016–28037 Filed 11–21–16; 8:45 am]
change is consistent with the Act.
Comments may be submitted by any of BILLING CODE 8011–01–P 1. Purpose
the following methods: The purpose of the proposed rule
Electronic Comments SECURITIES AND EXCHANGE change is to amend Exchange Rule 605
COMMISSION (Market Maker Orders) to (i) provide
• Use the Commission’s Internet that a MIAX Market Maker 3 may not
comment form (http://www.sec.gov/ [Release No. 34–79331; File No. SR–MIAX– enter good ‘til cancelled (‘‘GTC’’)
rules/sro.shtml); or 2016–43] orders 4 in option classes to which the
• Send an email to rule- MIAX Market Maker is not appointed,
comments@sec.gov. Please include File Self-Regulatory Organizations; Miami and (ii) add a comparable provision
Number SR–NASDAQ–2016–155 on the International Securities Exchange LLC; setting forth the types of orders that an
subject line. Notice of Filing and Immediate Electronic Exchange Member (‘‘EEM’’) 5
Effectiveness of a Proposed Rule
Paper Comments Change To Amend Exchange Rule 605 2 17 CFR 240.19b–4.
• Send paper comments in triplicate Market Maker Orders 3 The term ‘‘Market Maker’’ refers to ‘‘Lead
sradovich on DSK3GMQ082PROD with NOTICES
to Brent J. Fields, Secretary, Securities Market Makers’’, ‘‘Primary Lead Market Makers’’
November 16, 2016. and ‘‘Registered Market Makers’’, collectively. See
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090. Pursuant to the provisions of Section Exchange Rule 100.
4 A Good ‘til Cancelled or ‘‘GTC’’ order is an order
19(b)(1) of the Securities Exchange Act
to buy or sell which remains in effect until it is
28 For purposes only of waiving the 30-day
of 1934 (‘‘Act’’) 1 and Rule 19b–4 either executed, cancelled or the underlying option
operative delay, the Commission has considered the expires. See Exchange Rule 516(l).
29 17 CFR 200.30–3(a)(12).
proposed rule’s impact on efficiency, competition, 5 The term ‘‘Electronic Exchange Member’’ means
and capital formation. 15 U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1). the holder of a Trading permit who is not a Market
VerDate Sep<11>2014 16:52 Nov 21, 2016 Jkt 241001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\22NON1.SGM 22NON1](https://thefederalregister.org/doc/81_FR_84121/page/1.svg)
![Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices 83899
B. Self-Regulatory Organization’s IV. Solicitation of Comments For the Commission, by the Division of
Statement on Burden on Competition Trading and Markets, pursuant to delegated
Interested persons are invited to authority.20
The Exchange does not believe that submit written data, views, and Brent J. Fields,
the proposed rule change will impose arguments concerning the foregoing, Secretary.
any burden on competition that is not including whether the proposed rule [FR Doc. 2016–28025 Filed 11–21–16; 8:45 am]
necessary or appropriate in furtherance change is consistent with the Act. BILLING CODE 8011–01–P
of the purposes of the Act. The Comments may be submitted by any of
Exchange operates in a highly
the following methods:
competitive market comprised of SECURITIES AND EXCHANGE
fourteen U.S. options exchanges in Electronic Comments COMMISSION
which sophisticated and knowledgeable
market participants can, and do, send • Use the Commission’s Internet [Investment Company Act Release No.
order flow to competing exchanges if comment form (http://www.sec.gov/ 32360; File No. 812–14547]
they deem trading practices at a rules/sro.shtml); or
Legg Mason ETF Equity Trust, et al.;
particular exchange to be onerous or • Send an email to rule-comments@ Notice of Application
cumbersome. The proposed rule change sec.gov. Please include File Number SR–
allows the Exchange to make consistent MIAX–2016–43 on the subject line. November 16, 2016.
across the Exchange the permissible AGENCY: Securities and Exchange
order types available for both MIAX Paper Comments Commission (‘‘Commission’’).
Market Makers and non-MIAX market ACTION: Notice of an application for an
• Send paper comments in triplicate
makers. This consistency places all such order under section 6(c) of the
market participants on an equal footing, to Brent J. Fields, Secretary, Securities
Investment Company Act of 1940 (the
and, as a consequence, will not impose and Exchange Commission, 100 F Street
‘‘Act’’) for an exemption from sections
any burden on competition. NE., Washington, DC 20549–1090.
2(a)(32), 5(a)(1), 22(d), and 22(e) of the
C. Self-Regulatory Organization’s All submissions should refer to File Act and rule 22c–1 under the Act, under
Statement on Comments on the Number SR–MIAX–2016–43. This file sections 6(c) and 17(b) of the Act for an
Proposed Rule Change Received From number should be included on the exemption from sections 17(a)(1) and
Members, Participants, or Others subject line if email is used. To help the 17(a)(2) of the Act, and under section
Commission process and review your 12(d)(1)(J) for an exemption from
Written comments were neither comments more efficiently, please use sections 12(d)(1)(A) and 12(d)(1)(B) of
solicited nor received. only one method. The Commission will the Act. The requested order would
III. Date of Effectiveness of the post all comments on the Commission’s permit (a) actively-managed series of
Proposed Rule Change and Timing for Internet Web site (http://www.sec.gov/ certain open-end management
Commission Action rules/sro.shtml). Copies of the investment companies (‘‘Funds’’) to
issue shares redeemable in large
Because the foregoing proposed rule submission, all subsequent
aggregations only (‘‘Creation Units’’); (b)
change does not: (i) Significantly affect amendments, all written statements
secondary market transactions in Fund
the protection of investors or the public with respect to the proposed rule shares to occur at negotiated market
interest; (ii) impose any significant change that are filed with the prices rather than at net asset value
burden on competition; and (iii) become Commission, and all written (‘‘NAV’’); (c) certain Funds to pay
operative for 30 days after the date of communications relating to the redemption proceeds, under certain
the filing, or such shorter time as the proposed rule change between the circumstances, more than seven days
Commission may designate, it has Commission and any person, other than after the tender of shares for
become effective pursuant to 19(b)(3)(A) those that may be withheld from the redemption; (d) certain affiliated
of the Act 18 and Rule 19b–4(f)(6) 19 public in accordance with the persons of a Fund to deposit securities
thereunder. provisions of 5 U.S.C. 552, will be into, and receive securities from, the
At any time within 60 days of the available for Web site viewing and Fund in connection with the purchase
filing of the proposed rule change, the printing in the Commission’s Public and redemption of Creation Units; (e)
Commission summarily may Reference Room, 100 F Street NE., certain registered management
temporarily suspend such rule change if Washington, DC 20549, on official investment companies and unit
it appears to the Commission that such business days between the hours of investment trusts outside of the same
action is necessary or appropriate in the 10:00 a.m. and 3:00 p.m. Copies of the group of investment companies as the
public interest, for the protection of filing also will be available for Funds (‘‘Funds of Funds’’) to acquire
investors, or otherwise in furtherance of inspection and copying at the principal shares of the Funds; and (f) certain
the purposes of the Act. If the office of the Exchange. All comments Funds (‘‘Feeder Funds’’) to create and
Commission takes such action, the received will be posted without change; redeem Creation Units in-kind in a
Commission shall institute proceedings the Commission does not edit personal master-feeder structure.
to determine whether the proposed rule identifying information from
should be approved or disapproved. Applicants: Legg Mason Partners
submissions. You should submit only Fund Advisor, LLC (‘‘Initial Adviser’’),
information that you wish to make
sradovich on DSK3GMQ082PROD with NOTICES
18 15 U.S.C. 78s(b)(3)(A).
a Delaware limited liability company
19 17
available publicly. All submissions registered as an investment adviser
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give should refer to File Number SR–MIAX– under the Investment Advisers Act of
the Commission written notice of its intent to file 2016–43 and should be submitted on or 1940, Legg Mason ETF Equity Trust and
the proposed rule change at least five business days before December 13, 2016. Legg Mason ETF Trust (each a ‘‘Trust,’’
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the and together, the ‘‘Trusts’’), each a
Commission. The Exchange has satisfied this
requirement. 20 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 16:52 Nov 21, 2016 Jkt 241001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 E:\FR\FM\22NON1.SGM 22NON1](https://thefederalregister.org/doc/81_FR_84121/page/4.svg)
Document Created: 2018-02-14 08:29:36
Document Modified: 2018-02-14 08:29:36
| 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 83896 |
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