82 FR 23477 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX Options Rules 301, Just and Equitable Principles of Trade; Rule 308, Exemptions From Position Limits; Rule 404, Series of Option Contracts Open for Trading; Rule 514, Priority of Quotes and Orders; Rule 1325, Telemarketing; and Rule 1400, Definitions

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 97 (May 22, 2017)

[Federal Register Volume 82, Number 97 (Monday, May 22, 2017)]
[Notices]
[Pages 23477-23479]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-10312]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80690; File No. SR-MIAX-2017-21]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend MIAX Options Rules 301, Just and 
Equitable Principles of Trade; Rule 308, Exemptions From Position 
Limits; Rule 404, Series of Option Contracts Open for Trading; Rule 
514, Priority of Quotes and Orders; Rule 1325, Telemarketing; and Rule 
1400, Definitions

May 16, 2017.
    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 May 15, 2017, Miami International Securities Exchange, LLC 
(``MIAX Options'' 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend Exchange Rule 301, Just 
and Equitable Principles of Trade; Rule 308, Exemptions from Position 
Limits; Rule 404, Series of Option Contracts Open for Trading; Rule 
514, Priority of Quotes and Orders; Rule 1325, Telemarketing; and Rule 
1400, Definitions.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.miaxoptions.com/rule-filings, at MIAX's 
principal office, and at the Commission's Public Reference Room.

[[Page 23478]]

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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Exchange Rules 301.02, 
308(a)(7)(vi), 308(b)(6),404.02(d), 514(e)(2), 1325(n)(20), and 1400(l) 
to make minor non-substantive corrective changes.
    First, the Exchange propose to amend Exchange Rule 301, Just and 
Equitable Principles of Trade, Interpretations and Policies .02, to 
convert the numerical list item identifiers to alphabetical identifiers 
to properly conform to the hierarchical heading scheme used throughout 
the Exchange's rulebook. Additionally, there are two alphabetical 
identifiers, ``A'' and ``B'', located further in the paragraph which 
must be converted to numerical identifiers ``1'' and ``2'' 
respectively, to align to the hierarchical heading scheme of the 
Exchange's Rulebook. Therefore, the Exchange proposes to replace the 
numerical identifiers with alphabetical identifiers located in the 
beginning of the paragraph, and to then in turn replace the 
alphabetical identifiers with numerical identifiers for the references 
which occur later in the paragraph.
    Second, the Exchange proposes to amend Exchange Rule 308, 
Exemptions from Position Limits, to correct an incorrect cross 
reference. Exchange Rule 308(a)(7)(vi) states that a ``Member on its 
own behalf or on behalf of a designated aggregation unit pursuant to 
Rule 308(a)(iv) shall also report . . . ''. The reference to paragraph 
(a)(iv) of Rule 308 is incorrect as 308(a)(7)(iv) is the correct 
section, which is titled Effect on Aggregation of Account Positions. 
Therefore, the Exchange proposes to replace the reference to paragraph 
(a)(iv) with (a)(7)(iv). Additionally, the Exchange proposes to amend 
paragraph (b)(6) of Rule 308 to replace the alphabetical list 
identifiers (``A'' through ``D'') with romanette identifiers ``i'' 
through ``iv'' respectively, to align to the hierarchical heading 
scheme of the Exchange's Rulebook.
    Third, the Exchange proposes to amend Exchange Rule 404, Series of 
Option Contracts Open for Trading, Interpretations and Policies .02, 
Short Term Option Series Program, to correct a typographical error in 
paragraph (d). The fourth sentence in the paragraph begins, ``Market 
makers,'' whereas ``makers'' should be capitalized. Therefore, the 
Exchange proposes to amend the rule to replace the term ``Market 
makers'' with ``Market Makers.''
    Fourth, the Exchange proposes to amend Exchange Rule 514, Priority 
of Quotes and Orders, to correct an invalid cross reference in 
paragraph (e)(2) of the Rule. Exchange Rule 514(e)(2) describes 
``Market Maker non-priority quotes, (as described in Rule 
517(b)(1)(ii)) and Market Maker orders in both assigned and non-
assigned classes.'' The reference to paragraph 517(b)(1)(ii) is 
incorrect as 517(b)(1)(ii) describes the Priority Quote Width Standard, 
whereas 517(b)(1)(iii) describes Non-Priority Quotes. Therefore, the 
Exchange proposes to replace the reference to 517(b)(1)(ii) with 
517(b)(1)(iii).
    Fifth, the Exchange proposes to amend Exchange Rule 1325, 
Telemarketing, to correct a typographical error in paragraph (n) 
subsection (20) where the word telemarketer is incorrectly spelled 
``telelmarketer.''
    Lastly, the Exchange proposes to amend Exchange Rule 1400, 
Definitions, to make a minor non-substantive correction to paragraph 
(l). Exchange Rule 1400(l) provides the definition of the OPRA Plan as, 
``the plan filed with the SEC pursuant to Section 11Aa(1)(C)(iii) of 
the Exchange Act, approved by the SEC and declared effective as of 
January 22, 1976, as from time to time amended.'' The reference to 
11Aa(1)(C)(iii) is incorrect as the correct citation format is 
11A(a)(1)(C)(iii). Therefore, the Exchange propose to replace 
11Aa(1)(C)(iii) with 11A(a)(1)(C)(iii).
2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with 
Section 6(b) of the Act \3\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act \4\ 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.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the proposed rule changes promote just and 
equitable principles of trade and removes impediments to and perfects 
the mechanism of a free and open market and a national market system 
because the proposed rule change corrects errors in the hierarchical 
heading scheme to provide uniformity in the Exchange's rulebook; 
corrects incorrect cross references; and corrects minor typographical 
errors. The Exchange notes that the proposed changes do not alter the 
application of each rule. As such, the proposed amendments would foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities and would remove impediments to and perfect 
the mechanism of a free and open market and national exchange system. 
In particular, the Exchange believes that the proposed rule changes 
will provide greater clarity to Members \5\ and the public regarding 
the Exchange's Rules. It is in the public interest for rules to be 
accurate and concise so as to eliminate the potential for confusion.
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    \5\ 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.
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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 proposed rule change 
will have no impact on competition as it is not designed to address any 
competitive issues but rather to add additional clarity to existing 
rules and to remedy minor non-substantive issues in the text of various 
rules identified in this proposal.
    The Exchange does not believe that the proposed rule changes will 
impose any burden on intermarket competition as the Rules apply equally 
to all Exchange Members.

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 23479]]

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 \6\ and Rule 19b-4(f)(6) \7\ 
thereunder.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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.
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    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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MIAX-2017-21 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-2017-21. 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-2017-21 and should be 
submitted on or before June 12, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-10312 Filed 5-19-17; 8:45 am]
 BILLING CODE 8011-01-P