81 FR 96133 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule To Modify the Exchange's Connectivity Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 250 (December 29, 2016)
Federal Register Volume 81, Issue 250 (December 29, 2016)
| Page Range | 96133-96136 | |
| FR Document | 2016-31481 |
[Federal Register Volume 81, Number 250 (Thursday, December 29, 2016)] [Notices] [Pages 96133-96136] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31481] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79666; File No. SR-MIAX-2016-47] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule To Modify the Exchange's Connectivity Fees December 22, 2016 Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that, on December 13, 2016, Miami International Securities Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the 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 [[Page 96134]] 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 Fee Schedule regarding connectivity to the Exchange. Network Connectivity Fees First, the Exchange proposes to amend Section 5(a) and (b) of the Fee Schedule to increase the connectivity fee for the 1 Gigabit (``Gb'') fiber connection, the 10 Gb fiber connection, and the 10 Gb ultra-low latency (``ULL'') fiber connection, which are charged to both Members \3\ and Non-Members of the Exchange. --------------------------------------------------------------------------- \3\ The term ``Member'' means an individual or organization approved to exercise the trading rights associated with a Trading Permit. Members are deemed ``members'' under the Exchange Act. See Exchange Rule 100. --------------------------------------------------------------------------- The Exchange currently offers various bandwidth alternatives for connectivity to the Exchange, consisting of a 10Gb ULL fiber connection, a 10Gb fiber connection and a 1Gb fiber connection. The 10Gb ULL offering uses a new ultra-low latency switch, which provides faster processing of messages sent to it in comparison to the switch used for the other types of connectivity. The Exchange currently assesses the following monthly network connectivity fees to both Members and non-Members for connectivity to the Exchange's Primary and Secondary Facility: (a) $1,000 for the 1Gb connection; (b) $5,000 for the 10 Gb connection; and (c) $7,500.00 for the 10Gb ULL connection. The Exchange proposes to increase the monthly network connectivity fees for such connections for both Members and non-Members as follows: (a) From $1,000 to $1,100 for the 1Gb connection; (b) from $5,000 to $5,500 for the 10Gb connection; and (c) from $7,500 to $8,500 for the 10Gb ULL connection. All of the foregoing network connectivity fees will continue to be pro-rated based on the number of trading days that the Member or non-Member has been credentialed to utilize any of the Exchange APIs in a production environment through the applicable connection, divided by the total number of trading days in such month multiplied by the monthly rate. The 1Gb and 10Gb connectivity fees to the Disaster Recovery Facility assessable to both Members and non- Members shall remain unchanged. The Exchange believes that the increase in the pricing of the Exchange's connectivity is reflective of the continued value that it provides and the increasing costs to the Exchange for providing and maintaining the necessary hardware and other infrastructure to support this technology. The Exchange notes that other exchanges have similar connectivity alternatives for their participants, including similar low-latency connectivity. For example, NASDAQ PHLX LLC (``PHLX''), NYSE Arca, Inc. (``Arca''), NYSE MKT LLC (``Amex'') and the International Securities Exchange, LLC (``ISE'') all offer a 1Gb, 10Gb and 10Gb low latency Ethernet connectivity alternative to each of their participants.\4\ The Exchange further notes that PHLX, Arca and Amex each charge higher rates for such similar connectivity and that the Exchange's proposed connectivity fees are within the range of the fees charged by the ISE for similar connectivity alternatives.\5\ The Exchange believes that it is appropriate to increase its fees charged for use of its connectivity to offset increasing costs associated with providing and maintaining the necessary hardware and other infrastructure to support this technology and also to more closely align its fees with the rates charged by competing options exchanges. --------------------------------------------------------------------------- \4\ See NASDAQ PHLX LLC (``PHLX'') Pricing Schedule, Section X(b); see also NYSE Amex Options (``Amex'') Fee Schedule, Section V.B, and NYSE Arca Options (``Arca'') Fees and Charges, p. 16; see further International Securities Exchange, LLC (``ISE'') Schedule of Fees, Section VI.B. \5\ Id. --------------------------------------------------------------------------- Port Fees Second, the Exchange proposes to amend Section (5)(d)(i) of the Fee Schedule to increase the Financial Information Exchange (``FIX'') Port fees assessable to Members. A FIX Port is an interface with MIAX systems that enables the Port user to submit simple and complex orders electronically to MIAX. Currently, MIAX assesses monthly FIX Port fees on Members based upon the number of FIX Ports used by the Member submitting orders to the Exchange. The Exchange currently assesses a fee of $500 per month for the first FIX Port, $300 per month for each FIX Port 2 through 5; and $100 per month for each additional FIX Port over 5. The FIX Ports include access to MIAX's primary and secondary data centers and its disaster recovery center. Accordingly, the Exchange proposes to increase the fees charged to Members for use of FIX Ports. Specifically, the Exchange proposes to: (i) Increase the fee for the first FIX Port, from $500 to $550 per month; (ii) increase the fee for each FIX Port 2 through 5, from $300 to $350 per month; and (iii) increase the fee for each FIX Port over 5, from $100 to $150 per month. The Exchange notes that a competing exchange charges more for the use of similar ports.\6\ --------------------------------------------------------------------------- \6\ See NASDAQ PHLX LLC (``PHLX'') Pricing Schedule, Section VII and The NASDAQ Options Market (``NOM'') Pricing Schedule, Chapter XV, Section 3. Both PHLX and NOM assess members monthly an Order Entry Port Fee of $650 per month per mnemonic. --------------------------------------------------------------------------- Finally, the Exchange proposes to amend Section 5(d)(ii) of the Fee Schedule to increase the fees for MIAX Express Interface (``MEI'') Ports to Market Makers assessed for additional Limited Service Ports.\7\ The MEI is a connection to MIAX systems that enables Market Makers to submit simple and complex electronic quotes to MIAX. --------------------------------------------------------------------------- \7\ Limited Service MEI Ports provide Market Makers with the ability to send eQuotes and quote purge messages only, but not Market Maker Quotes, to the MIAX System. Limited Service MEI Ports are also capable of receiving administrative information. Market Makers initially receive two Limited Service MEI Ports per matching engine (as defined herein). --------------------------------------------------------------------------- Currently, MIAX assesses monthly MEI Port Fees on Market Makers based upon the number of MIAX matching engines \8\ used by the Market Maker. Market Makers are allocated two (2) Full Service MEI Ports \9\ and two (2) Limited Service MEI Ports per matching engine to which they connect. The Exchange currently assesses the following MEI Port fees: (i) $5,000 for Market Maker Assignments in up to 5 option classes or up to 10% of option classes by volume; (ii) $10,000 for Market Maker Assignments in up to 10 option classes or up to 20% of option classes by volume; (iii) $14,000 for Market Maker Assignments in up to 40 option classes or up to 35% of option classes by volume; (iv) $17,500 for Market Maker Assignments in up to 100 option classes [[Page 96135]] or up to 50% of option classes by volume; and (v) $20,500.00 for Market Maker Assignments in over 100 option classes or over 50% of option classes by volume up to all option classes listed on MIAX.\10\ The Exchange also currently charges $50 per month for each additional Limited Service MEI Port per matching engine for Market Makers over and above the two (2) Limited Service MEI Ports per matching engine that are allocated with the Full Service MEI Ports. The Full Service MEI Ports, Limited Service MEI Ports and the additional Limited Service MEI Ports all include access to MIAX's primary and secondary data centers and its disaster recovery center. --------------------------------------------------------------------------- \8\ A ``matching engine'' is a part of the MIAX electronic system that processes options quotes and trades on a symbol-by- symbol basis. Some matching engines will process option classes with multiple root symbols, and other matching engines will be dedicated to one single option root symbol (for example, options on SPY will be processed by one single matching engine that is dedicated only to SPY). A particular root symbol may only be assigned to a single designated matching engine. A particular root symbol may not be assigned to multiple matching engines. \9\ Full Service MEI Ports provide Market Makers with the ability to send Market Maker quotes, eQuotes, and quote purge messages to the MIAX System. Full Service MEI Ports are also capable of receiving administrative information. Market Makers are limited to two Full Service MEI Ports per matching engine. \10\ See MIAX Fee Schedule, Section 5(d)(ii). --------------------------------------------------------------------------- Accordingly, the Exchange proposes to increase the fees charged to Market Makers for use of additional Limited Service MEI Ports. Specifically, the Exchange proposes to increase the fee for additional Limited Service MEI Ports from $50 to $100 per month. The Exchange notes that a competing exchange charges more for the use of similar ports.\11\ --------------------------------------------------------------------------- \11\ See PHLX Pricing Schedule, Section VII. PHLX assesses specialists and market makers an Active SQF Port Fee of $1,250 per month, with such total port fees capped at $42,000 per month. See also NOM Pricing Schedule, Chapter XV, Section 3. NOM assesses Market Makers a monthly SQF Port Fee per port of $500 for the use of 21 Ports or more. --------------------------------------------------------------------------- The Exchange proposes to implement the proposed changes to the Fee Schedule effective as of January 1, 2017. 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act \12\ in general, and furthers the objectives of Section 6(b)(4) of the Act \13\ 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 \14\ 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. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b). \13\ 15 U.S.C. 78f(b)(4). \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Network Connectivity Fees The Exchange believes that its proposal is consistent with Section 6(b)(4) of the Act because the fees assessed for connectivity allow the Exchange to cover the costs associated with providing and maintaining the necessary hardware and other infrastructure to support this technology. The Exchange believes that the proposal to increase the fees for connectivity alternatives is fair, equitable and not unreasonably discriminatory because the increased fees are assessed equally among all users of the applicable connections. As discussed above, PHLX and ISE each offer different connections with respect to latency, and NYSE Arca, Inc. and NYSE Amex both offer similar connectivity alternatives.\15\ Despite this, PHLX, Arca and Amex charge a higher fee than the Exchange currently charges for similar connections and ISE's fees are within the range of that of the proposed fees of the Exchange.\16\ For these reasons, the Exchange believes the proposed increase in the fees for the fiber connectivity to the Exchange is reasonable and not unfairly discriminatory. --------------------------------------------------------------------------- \15\ See supra note 4. \16\ Id. --------------------------------------------------------------------------- The Exchange also believes that its proposal is consistent with Section 6(b)(5) of the Act \17\ because all MIAX participants have the opportunity to subscribe to the Exchange's connections. There is also no differentiation among MIAX participants with regard to the fees charged for these services. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Port Fees The Exchange believes that its proposal to increase the FIX Port fees is consistent with Section 6(b)(4) of the Act and is reasonable, equitable and not unfairly discriminatory because Members are free to add or remove FIX Ports and will only be charged for the amount of FIX Ports that are utilized. The proposed fee is fair and equitable and not unreasonably discriminatory because it applies equally to all Members regardless of type. The Exchange also believes that its proposal is consistent with Section 6(b)(5) of the Act \18\ because all similarly situated Members, with the same number of FIX Ports, will be subject to the same fee, and access to the Exchange is offered on terms that are not unfairly discriminatory. The Exchange believes that the proposed fees are reasonable in that the rates are within the range of those charged by competing options exchanges. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that its proposal to increase the fee for additional Limited Service MEI Ports is consistent with Section 6(b)(4) of the Act and is reasonable, equitable and not unfairly discriminatory because Market Makers are free to add or remove additional Limited Service MEI Ports and will only be charged for the number of additional Limited Service MEI Ports that are utilized. The Exchange also believes that its proposal is consistent with Section 6(b)(5) of the Act \19\ because it will be uniformly applied to all Market Makers. All similarly situated Market Makers, with the same number of additional Limited Service MEI Ports, will be subject to the same fee, and access to the Exchange is offered on terms that are not unfairly discriminatory. The Exchange believes that the proposed fees are reasonable in that the rates are within the range of those charged by other competing options exchanges. --------------------------------------------------------------------------- \19\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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 increasing the connectivity fees to become more within the range of comparable fees assessed by other competing exchanges.\20\ --------------------------------------------------------------------------- \20\ See supra notes 4, 6 and 11. --------------------------------------------------------------------------- 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. To the extent that this purpose is achieved, all the Exchange's market participants should benefit from the improved market liquidity. 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. [[Page 96136]] 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,\21\ and Rule 19b-4(f)(2) \22\ 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. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78s(b)(3)(A)(ii). \22\ 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-2016-47 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-2016-47. 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 such 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-2016-47, and should be submitted on or before January 19, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-31481 Filed 12-28-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Notices 96133
coordination with persons engaged in the self-regulatory organization NYSEMKT–2016–122 and should be
regulating, clearing, settling, processing consents, the Commission will: submitted on or before January 19, 2017.
information with respect to, and (A) By order approve or disapprove For the Commission, by the Division of
facilitating transactions in securities, to such proposed rule change, or Trading and Markets, pursuant to delegated
remove impediments to, and perfect the (B) institute proceedings to determine authority.21
mechanism of a free and open market whether the proposed rule change Eduardo A. Aleman,
and a national market system and, in should be disapproved. Assistant Secretary.
general, to protect investors and the [FR Doc. 2016–31487 Filed 12–28–16; 8:45 am]
public interest. As discussed above, the IV. Solicitation of Comments
BILLING CODE 8011–01–P
proposed updates to the corporate Interested persons are invited to
documents and replacement of outdated submit written data, views and
or obsolete references removes arguments concerning the foregoing, SECURITIES AND EXCHANGE
impediments to and perfects the including whether the proposed rule COMMISSION
mechanism of a free and open market by change is consistent with the Act.
removing confusion that may result [Release No. 34–79666; File No. SR–MIAX–
Comments may be submitted by any of
from having these references in the 2016–47]
the following methods:
governing documents following the
Electronic Comments Self-Regulatory Organizations; Miami
Acquisition. The Exchange further
International Securities Exchange LLC;
believes that the proposal removes • Use the Commission’s Internet Notice of Filing and Immediate
impediments to and perfects the comment form (http://www.sec.gov/ Effectiveness of a Proposed Rule
mechanism of a free and open market by rules/sro.shtml); or Change To Amend Its Fee Schedule To
ensuring that persons subject to the • Send an email to rule-comments@ Modify the Exchange’s Connectivity
Exchange’s jurisdiction, regulators, and sec.gov. Please include File Number SR– Fees
the investing public can more easily NYSEMKT–2016–122 on the subject
navigate and understand the governing line. December 22, 2016
documents. The Exchange further Pursuant to Section 19(b)(1) of the
believes that eliminating an obsolete Paper Comments Securities Exchange Act of 1934
reference would not be inconsistent • Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2
with the public interest and the to Secretary, Securities and Exchange notice is hereby given that, on December
protection of investors because investors Commission, 100 F Street NE., 13, 2016, Miami International Securities
will not be harmed and in fact would Washington, DC 20549–1090. Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’)
benefit from increased transparency, All submissions should refer to File filed with the Securities and Exchange
thereby reducing potential confusion. Number SR–NYSEMKT–2016–122. This Commission (‘‘SEC’’ or ‘‘Commission’’)
Removing such obsolete references will file number should be included on the the proposed rule change as described
also further the goal of transparency and subject line if email is used. To help the in Items I, II, and III below, which Items
add clarity to the Exchange’s rules. Commission process and review your have been prepared by the Exchange.
B. Self-Regulatory Organization’s comments more efficiently, please use The Commission is publishing this
Statement on Burden on Competition only one method. The Commission will notice to solicit comments on the
post all comments on the Commission’s proposed rule change from interested
The Exchange does not believe that persons.
the proposed rule change will impose Internet Web site (http://www.sec.gov/
any burden on competition that is not rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s
necessary or appropriate in furtherance submission, all subsequent Statement of the Terms of Substance of
of the purposes of the Exchange Act. amendments, all written statements the Proposed Rule Change
The proposed rule change is not with respect to the proposed rule
The Exchange is filing a proposal to
intended to address competitive issues change that are filed with the
amend the MIAX Options Fee Schedule
but rather is concerned solely with Commission, and all written
(the ‘‘Fee Schedule’’) to modify the
updating the Exchange’s rules to reflect communications relating to the
Exchange’s connectivity fees.
the Acquisition and to remove obsolete proposed rule change between the The text of the proposed rule change
references. Commission and any person, other than is available on the Exchange’s Web site
those that may be withheld from the at http://www.miaxoptions.com/filter/
C. Self-Regulatory Organization’s public in accordance with the
Statement on Comments on the wotitle/rule_filing, at MIAX’s principal
provisions of 5 U.S.C. 552, will be office, and at the Commission’s Public
Proposed Rule Change Received From available for Web site viewing and
Members, Participants, or Others Reference Room.
printing in the Commission’s Public
No written comments were solicited Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s
or received with respect to the proposed Washington, DC 20549, on official Statement of the Purpose of, and
rule change. business days between the hours of Statutory Basis for, the Proposed Rule
10:00 a.m. and 3:00 p.m. Copies of the Change
III. Date of Effectiveness of the filing also will be available for
Proposed Rule Change and Timing for In its filing with the Commission, the
inspection and copying at the principal
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Commission Action Exchange included statements
office of the Exchange. All comments concerning the purpose of and basis for
Within 45 days of the date of received will be posted without change; the proposed rule change and discussed
publication of this notice in the Federal the Commission does not edit personal any comments it received on the
Register or within such longer period identifying information from proposed rule change. The text of these
up to 90 days (i) as the Commission may submissions. You should submit only
designate if it finds such longer period information that you wish to make 21 17 CFR 200.30–3(a)(12).
to be appropriate and publishes its available publicly. All submissions 1 15 U.S.C. 78s(b)(1).
reasons for so finding or (ii) as to which should refer to File Number SR– 2 17 CFR 240.19b–4.
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![96136 Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Notices
III. Date of Effectiveness of the Reference Room, 100 F Street NE., is described in Items I, II, and III below,
Proposed Rule Change and Timing for Washington, DC 20549 on official which Items have been prepared by the
Commission Action business days between the hours of Exchange. The Commission is
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of such publishing this notice to solicit
effective pursuant to Section filing also will be available for comments on the proposed rule change,
19(b)(3)(A)(ii) of the Act,21 and Rule inspection and copying at the principal as modified by Amendment Nos. 1 and
19b–4(f)(2) 22 thereunder. At any time office of the Exchange. All comments 2, from interested persons.
within 60 days of the filing of the received will be posted without change;
the Commission does not edit personal I. Self-Regulatory Organization’s
proposed rule change, the Commission Statement of the Terms of Substance of
summarily may temporarily suspend identifying information from
submissions. You should submit only the Proposed Rule Change
such rule change if it appears to the
Commission that such action is information that you wish to make The Exchange proposes to (1) permit
necessary or appropriate in the public available publicly. All submissions the Exchange to receive inbound orders
interest, for the protection of investors, should refer to File Number SR–MIAX– in options routed through Nasdaq
or otherwise in furtherance of the 2016–47, and should be submitted on or Execution Services, LLC (‘‘NES’’) from
purposes of the Act. If the Commission before January 19, 2017. certain affiliated exchanges, as
takes such action, the Commission shall For the Commission, by the Division of described in detail below, by
institute proceedings to determine Trading and Markets, pursuant to delegated establishing procedures designed to
whether the proposed rule should be authority.23 prevent potential informational
approved or disapproved. Eduardo A. Aleman, advantages resulting from the affiliation
Assistant Secretary. with NES; and (2) grant the Exchange an
IV. Solicitation of Comments
[FR Doc. 2016–31481 Filed 12–28–16; 8:45 am] exemption to permit NES, an affiliate of
Interested persons are invited to BILLING CODE 8011–01–P the Exchange, to become a Member of
submit written data, views, and the Exchange in order to perform certain
arguments concerning the foregoing, routing an [sic] other functions on
including whether the proposed rule SECURITIES AND EXCHANGE behalf of the Exchange.
change is consistent with the Act. COMMISSION
Comments may be submitted by any of II. Self-Regulatory Organization’s
[Release No. 34–79664; File No. SR– Statement of the Purpose of, and
the following methods:
ISEGemini–2016–16] Statutory Basis for, the Proposed Rule
Electronic Comments Change
Self-Regulatory Organizations; ISE
• Use the Commission’s Internet Gemini, LLC; Notice of Filing of
comment form (http://www.sec.gov/ In its filing with the Commission, the
Proposed Rule Change, as Modified by Exchange included statements
rules/sro.shtml); or Amendment Nos. 1 and 2, To Permit
• Send an email to rule-comments@ concerning the purpose of and basis for
Nasdaq Execution Services, LLC To the proposed rule change and discussed
sec.gov. Please include File Number SR–
Become an Affiliated Member of the any comments it received on the
MIAX–2016–47 on the subject line.
Exchange To Perform Certain Routing proposed rule change. The text of these
Paper Comments and Other Functions statements may be examined at the
• Send paper comments in triplicate December 22, 2016. places specified in Item IV below. The
to Brent J. Fields, Secretary, Securities Pursuant to Section 19(b)(1) of the Exchange has prepared summaries, set
and Exchange Commission, 100 F Street Securities Exchange Act of 1934 forth in sections A, B, and C below, of
NE., Washington, DC 20549–1090. (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 the most significant aspects of such
All submissions should refer to File notice is hereby given that on December statements.
Number SR–MIAX–2016–47. This file 9, 2016, ISE Gemini, LLC (‘‘ISE Gemini’’ A. Self-Regulatory Organization’s
number should be included on the or ‘‘Exchange’’) filed with the Securities Statement of the Purpose of, and the
subject line if email is used. To help the and Exchange Commission Statutory Basis for, the Proposed Rule
Commission process and review your (‘‘Commission’’) the proposed rule Change
comments more efficiently, please use change. On December 20, 2016, the
only one method. The Commission will Exchange filed Amendment No. 1 to the 1. Purpose
post all comments on the Commission’s proposed rule change, which amended
Internet Web site (http://www.sec.gov/ The purpose of the filing is to permit
and replaced the Form 19b–4, and ISE Gemini to receive inbound orders in
rules/sro.shtml). Copies of the Exhibit 1 thereto, in their entirety. On
submission, all subsequent options routed through Nasdaq
December 20, 2016, the Exchange filed
amendments, all written statements Execution Services, LLC (‘‘NES’’) from
Amendment No. 2 to the proposed rule
with respect to the proposed rule certain affiliated exchanges, as
change.3 The proposed rule change, as
change that are filed with the described herein and establish
modified by Amendment Nos. 1 and 2,
Commission, and all written procedures designed to prevent
communications relating to the 23 17 CFR 200.30–3(a)(12).
potential informational advantages
proposed rule change between the 1 15 U.S.C. 78s(b)(1). resulting from the affiliation between
ISE Gemini and NES. The Exchange
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Commission and any person, other than 2 17 CFR 240.19b–4.
those that may be withheld from the 3 Amendment No. 2 amended the description of requests approval to permit NES, an
public in accordance with the
one of the inbound routing conditions that would affiliate of the Exchange, to become a
apply. Specifically, the Exchange modified the third Member of the Exchange in order to
provisions of 5 U.S.C. 552, will be condition to specify that the report that FINRA will
available for Web site viewing and provided to the Exchange’s chief regulatory officer perform inbound routing on behalf of
printing in the Commission’s Public on a quarterly basis will quantify all alerts, of which the Exchange. The Exchange is also
the Exchange or FINRA (rather than solely FINRA) filing to permit ISE Gemini to route
are aware, that identify Nasdaq Execution Services,
21 15 U.S.C. 78s(b)(3)(A)(ii). LLC as a participant that has potentially violated
outbound orders through NES either
22 17 CFR 240.19b–4(f)(2). Commission or Exchange rules. directly or indirectly through a third
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Document Created: 2016-12-29 01:58:26
Document Modified: 2016-12-29 01:58:26
| 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 96133 |
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