82 FR 31668 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend its Fee Schedule Concerning the Options Regulatory Fee
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 129 (July 7, 2017)
Federal Register Volume 82, Issue 129 (July 7, 2017)
| Page Range | 31668-31671 | |
| FR Document | 2017-14243 |
[Federal Register Volume 82, Number 129 (Friday, July 7, 2017)] [Notices] [Pages 31668-31671] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-14243] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81063; File No. SR-MIAX-2017-31] Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend its Fee Schedule Concerning the Options Regulatory Fee June 30, 2017. 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 June 23, 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. --------------------------------------------------------------------------- \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 clarify the manner in which the Exchange assesses its Options Regulatory Fee (``ORF''), and also to align its ORF rule text to rule text recently adopted by the Exchange's affiliate, MIAX PEARL, LLC (``MIAX PEARL''), with respect to its ORF.\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release Nos. 80035 (February 14, 2017), 82 FR 11272 (February 21, 2017) (SR-PEARL-2017-09); 80035 (March 30, 2017), 82 FR 18045 (April 10, 2017) (SR-PEARL-2017-15); 80875 (June 7, 2017), 82 FR 27096 (June 13, 2017) (SR-PEARL-2017- 26). The replacement filings did not increase or decrease the amount of the ORF, but rather clarified the application of the ORF. --------------------------------------------------------------------------- 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. 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 Currently, the Exchange charges an ORF in the amount of $0.0045 per contract side. The proposed rule change does not change the amount of the ORF, but instead modifies the rule text to clarify how the ORF is assessed and collected. The proposed rule change also aligns the ORF rule text of the Exchange to rule text recently adopted by the Exchange's affiliate, MIAX PEARL, with respect to its ORF.\4\ --------------------------------------------------------------------------- \4\ Id. --------------------------------------------------------------------------- The per-contract ORF will continue to be assessed by MIAX Options to each MIAX Options Member for all options transactions, including Mini Options, cleared or ultimately cleared by the Member which are cleared by the Options Clearing Corporation (``OCC'') [[Page 31669]] in the ``customer'' range, regardless of the exchange on which the transaction occurs. The ORF will be collected by OCC on behalf of MIAX Options from either (1) a Member that was the ultimate clearing firm for the transaction or (2) a non-Member that was the ultimate clearing firm where a Member was the executing clearing firm for the transaction. The Exchange uses reports from OCC to determine the identity of the executing clearing firm and ultimate clearing firm. To illustrate how the ORF is assessed and collected, the Exchange provides the following set of examples. If the transaction is executed on the Exchange and the ORF is assessed, if there is no change to the clearing account of the original transaction, then the ORF is collected from the Member that is the executing clearing firm for the transaction. (The Exchange notes that, for purposes of the Fee Schedule, when there is no change to the clearing account of the original transaction, the executing clearing firm is deemed to be the ultimate clearing firm.) If there is a change to the clearing account of the original transaction (i.e., the executing clearing firm ``gives- up'' or ``CMTAs'' the transaction to another clearing firm), then the ORF is collected from the clearing firm that ultimately clears the transaction--the ultimate clearing firm. The ultimate clearing firm may be either a Member or non-Member of the Exchange. If the transaction is executed on an away exchange and the ORF is assessed, then the ORF is collected from the ultimate clearing firm for the transaction. Again, the ultimate clearing firm may be either a Member or non-Member of the Exchange. The Exchange notes, however, that when the transaction is executed on an away exchange, the Exchange does not assess the ORF when neither the executing clearing firm nor the ultimate clearing firm is a Member (even if a Member is ``given-up'' or ``CMTAed'' and then such Member subsequently ``gives-up'' or ``CMTAs'' the transaction to another non-Member via a CMTA reversal). Finally, the Exchange will not assess the ORF on outbound linkage trades, whether executed at the Exchange or an away exchange. ``Linkage trades'' are tagged in the Exchange's system, so the Exchange can readily tell them apart from other trades. A customer order routed to another exchange results in two customer trades, one from the originating exchange and one from the recipient exchange. Charging ORF on both trades could result in double- billing of ORF for a single customer order, thus the Exchange will not assess ORF on outbound linkage trades in a linkage scenario. This assessment practice is identical to the assessment practice currently utilized by the Exchange's affiliate, MIAX PEARL. As a practical matter, when a transaction that is subject to the ORF is not executed on the Exchange, the Exchange lacks the information necessary to identify the order entering member for that transaction. There are countless order entering market participants, and each day such participants can and often do drop their connection to one market center and establish themselves as participants on another. For these reasons, it is not possible for the Exchange to identify, and thus assess fees such as an ORF, on order entering participants on away markets on a given trading day. Clearing members, however, are distinguished from order entering participants because they remain identified to the Exchange on information the Exchange receives from OCC regardless of the identity of the order entering participant, their location, and the market center on which they execute transactions. Therefore, the Exchange believes it is more efficient for the operation of the Exchange and for the marketplace as a whole to collect the ORF from clearing members. As discussed below, the Exchange believes it is appropriate to charge the ORF only to transactions that clear as customer at the OCC. The Exchange believes that its broad regulatory responsibilities with respect to a Member's activities supports applying the ORF to transactions cleared but not executed by a Member. The Exchange's regulatory responsibilities are the same regardless of whether a Member enters a transaction or clears a transaction executed on its behalf. The Exchange regularly reviews all such activities, including performing surveillance for position limit violations, manipulation, front-running, contrary exercise advice violations and insider trading. These activities span across multiple exchanges. The ORF is designed to recover a material portion of the costs to the Exchange of the supervision and regulation of Members' customer options business, including performing routine surveillances and investigations, as well as policy, rulemaking, interpretive and enforcement activities. The Exchange believes that revenue generated from the ORF, when combined with all of the Exchange's other regulatory fees and fines, will cover a material portion, but not all, of the Exchange's regulatory costs. The Exchange notes that its regulatory responsibilities with respect to Member compliance with options sales practice rules have been allocated to the Financial Industry Regulatory Authority (``FINRA'') under a 17d-2 Agreement. The ORF is not designed to cover the cost of options sales practice regulation. The Exchange will continue to monitor the amount of revenue collected from the ORF to ensure that it, in combination with its other regulatory fees and fines, does not exceed the Exchange's total regulatory costs. The Exchange will continue to monitor MIAX Options regulatory costs and revenues at a minimum on a semi-annual basis. If the Exchange determines regulatory revenues exceed or are insufficient to cover a material portion of its regulatory costs, the Exchange will adjust the ORF by submitting a fee change filing to the Commission. The Exchange will notify Members of adjustments to the ORF via regulatory circular at least 30 days prior to the effective date of the change. The Exchange believes it is reasonable and appropriate for the Exchange to charge the ORF for options transactions regardless of the exchange on which the transactions occur. The Exchange has a statutory obligation to enforce compliance by Members and their associated persons under the Act and the rules of the Exchange and to surveil for other manipulative conduct by market participants (including non- Members) trading on the Exchange. The Exchange cannot effectively surveil for such conduct without looking at and evaluating activity across all options markets. Many of the Exchange's market surveillance programs require the Exchange to look at and evaluate activity across all options markets, such as surveillance for position limit violations, manipulation, front-running and contrary exercise advice violations/expiring exercise declarations. While much of this activity relates to the execution of orders, the ORF is assessed on and collected from clearing firms. The Exchange, because it lacks access to information on the identity of the entering firm for executions that occur on away markets, believes it is appropriate to assess the ORF on its Members' clearing activity, based on information the Exchange receives from OCC, including for away market activity. Among other reasons, doing so better and more accurately captures activity that occurs away from the Exchange over which the Exchange has a degree of regulatory responsibility. In so doing, the Exchange believes that assessing ORF on Member clearing firms equitably distributes the collection of ORF in a fair and reasonable manner. [[Page 31670]] Also, the Exchange and the other options exchanges are required to populate a consolidated options audit trail (``COATS'') \5\ system in order to surveil a Member's activities across markets. --------------------------------------------------------------------------- \5\ COATS effectively enhances intermarket options surveillance by enabling the options exchanges to reconstruct the market promptly to effectively surveil certain rules. --------------------------------------------------------------------------- In addition to its own surveillance programs, the Exchange works with other SROs and exchanges on intermarket surveillance related issues. Through its participation in the Intermarket Surveillance Group (``ISG''),\6\ the Exchange shares information and coordinates inquiries and investigations with other exchanges designed to address potential intermarket manipulation and trading abuses. The Exchange's participation in ISG helps it to satisfy the requirement that it has coordinated surveillance with markets on which security futures are traded and markets on which any security underlying security futures are traded to detect manipulation and insider trading.\7\ --------------------------------------------------------------------------- \6\ ISG is an industry organization formed in 1983 to coordinate intermarket surveillance among the SROs by co-operatively sharing regulatory information pursuant to a written agreement between the parties. The goal of the ISG's information sharing is to coordinate regulatory efforts to address potential intermarket trading abuses and manipulations. \7\ See Section 6(h)(3)(I) of the Act. --------------------------------------------------------------------------- The Exchange believes that charging the ORF across markets will avoid having Members direct their trades to other markets in order to avoid the fee and to thereby avoid paying for their fair share for regulation. If the ORF did not apply to activity across markets then a Member would send their orders to the least cost, least regulated exchange. Other exchanges do impose a similar fee on their member's activity,\8\ including the activity of those members on MIAX PEARL.\9\ --------------------------------------------------------------------------- \8\ Similar regulatory fees have been instituted by Nasdaq PHLX (See Securities Exchange Act Release No. 61133 (December 9, 2009), 74 FR 66715 (December 16, 2009) (SR-Phlx-2009-100)); Nasdaq ISE (See Securities Exchange Act Release No. 61154 (December 11, 2009), 74 FR 67278 (December 18, 2009) (SR-ISE-2009-105)); and Nasdaq GEMX (See Securities Exchange Act Release No. 70200 (August 14, 2013) 78 FR 51242 (August 20, 2013) (SR-Topaz-2013-01)). \9\ See supra note 3. --------------------------------------------------------------------------- The Exchange notes that there is established precedent for an SRO charging a fee across markets, namely, FINRAs Trading Activity Fee \10\ and the NYSE MKT, NYSE Arca, CBOE, Nasdaq PHLX, Nasdaq ISE, Nasdaq GEMX and BOX ORF. While the Exchange does not have all the same regulatory responsibilities as FINRA, the Exchange believes that, like other exchanges that have adopted an ORF, its broad regulatory responsibilities with respect to a Member's activities, irrespective of where their transactions take place, supports a regulatory fee applicable to transactions on other markets. Unlike FINRA's Trading Activity Fee, the ORF would apply only to a Member's customer options transactions. --------------------------------------------------------------------------- \10\ See Securities Exchange Act Release No. 47946 (May 30, 2003), 68 FR 34021 (June 6, 2003) (SR-NASD-2002-148). --------------------------------------------------------------------------- Additionally, the Exchange specifies in the Fee Schedule that the Exchange may only increase or decrease the ORF semi-annually, and any such fee change will be effective on the first business day of February or August. In addition to submitting a proposed rule change to the Commission as required by the Act to increase or decrease the ORF, the Exchange will notify participants via a Regulatory Circular of any anticipated change in the amount of the fee at least 30 calendar days prior to the effective date of the change. The Exchange believes that by providing guidance on the timing of any changes to the ORF, the Exchange would make it easier for participants to ensure their systems are configured to properly account for the ORF. 2. Statutory Basis The Exchange believes that its proposal to amend its fee schedule is consistent with Section 6(b) of the Act \11\ in general, and furthers the objectives of Section 6(b)(4) of the Act \12\ in particular, in that it is an equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities. The Exchange also believes the proposal furthers the objectives of Section 6(b)(5) of the Act \13\ 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. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b). \12\ 15 U.S.C. 78f(b)(4). \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the proposed clarifications in the Fee Schedule to the ORF furthers the objectives of Section 6(b)(4) of the Act and are equitable and reasonable since they expressly describe the Exchange's existing practices regarding the manner in which the Exchange assesses its ORF. The Exchange believes the ORF is equitable and not unfairly discriminatory because it is objectively allocated to Members in that it is charged to all Members on all their transactions that clear as customer at the OCC. Moreover, the Exchange believes the ORF ensures fairness by assessing fees to those Members that are directly based on the amount of customer options business they conduct. Regulating customer trading activity is much more labor intensive and requires greater expenditure of human and technical resources than regulating non-customer trading activity, which tends to be more automated and less labor-intensive. As a result, the costs associated with administering the customer component of the Exchange's overall regulatory program are materially higher than the costs associated with administering the non-customer component (e.g., Member proprietary transactions) of its regulatory program. The ORF is designed to recover a material portion of the costs of supervising and regulating Members' customer options business including performing routine surveillances, investigations, examinations, financial monitoring, and policy, rulemaking, interpretive, and enforcement activities. The Exchange will monitor, on at least a semi- annual basis the amount of revenue collected from the ORF to ensure that it, in combination with its other regulatory fees and fines, does not exceed the Exchange's total regulatory costs. The Exchange has designed the ORF to generate revenues that, when combined with all of the Exchange's other regulatory fees, will be less than or equal to the Exchange's regulatory costs, which is consistent with the Commission's view that regulatory fees be used for regulatory purposes and not to support the Exchange's business side. In this regard, the Exchange believes that the current amount of the fee is reasonable. The Exchange believes that limiting changes to the ORF to twice a year on specific dates with advance notice is reasonable because it will give participants certainty on the timing of changes, if any, and better enable them to properly account for ORF charges among their customers. The Exchange believes that the proposed change is equitable and not unfairly discriminatory because it will apply in the same manner to all Members that are subject to the ORF and provide them with additional advance notice of changes to that fee. The Exchange believes that collecting the ORF from non-Members when such non-Members ultimately clear the transaction (that is, when the non- [[Page 31671]] Member is the ``ultimate clearing firm'' for a transaction in which a Member was assessed the ORF) is an equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities. The Exchange notes that there is a material distinction between ``assessing'' the ORF and ``collecting'' the ORF. The ORF is only assessed to a Member with respect to a particular transaction in which it is either the executing clearing firm or ultimate clearing firm. The Exchange does not assess the ORF to non-Members. Once, however, the ORF is assessed to a Member for a particular transaction, the ORF may be collected from the Member or a non-Member, depending on how the transaction is cleared at OCC. If there was no change to the clearing account of the original transaction, the ORF would be collected from the Member. If there was a change to the clearing account of the original transaction and a non- Member becomes the ultimate clearing firm for that transaction, then the ORF will be collected from that non-Member. The Exchange believes that this collection practice is reasonable and appropriate, and was originally instituted for the benefit of clearing firms that desired to have the ORF be collected from the clearing firm that ultimately clears the transaction. 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 ORF is not intended to have any impact on competition. Rather, it is designed to enable the Exchange to recover a material portion of the Exchange's cost related to its regulatory activities. The Exchange is obligated to ensure that the amount of regulatory revenue collected from the ORF, in combination with its other regulatory fees and fines, does not exceed regulatory costs. Unilateral action by MIAX Options in establishing fees for services provided to its Members and others using its facilities will not have an impact on competition. In the highly competitive environment for equity options trading, MIAX Options does not have the market power necessary to set prices for services that are unreasonable or unfairly discriminatory in violation of the Act. The Exchange's ORF, as described herein, is comparable to fees charged by other options exchanges for the same or similar services. The Exchange believes that limiting the changes to the ORF to twice a year on specific dates with advance notice is not intended to address a competitive issue but rather to provide Members with better notice of any change that the Exchange may make to the ORF. 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,\14\ and Rule 19b-4(f)(2) \15\ 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. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A)(ii). \15\ 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 No. SR-MIAX-2017-31 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 No. SR-MIAX-2017-31. 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 No. SR-MIAX-2017-31, and should be submitted on or before July 28, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2017-14243 Filed 7-6-17; 8:45 am] BILLING CODE 8011-01-P
![31668 Federal Register / Vol. 82, No. 129 / Friday, July 7, 2017 / Notices
All submissions should refer to any of: VII. Conclusion I. Self-Regulatory Organization’s
File Nos. SR–BatsBYX–2017–11; SR– Statement of the Terms of Substance of
BatsBZX–2017–38; SR–BatsEDGA– It is therefore ordered, pursuant to the Proposed Rule Change
2017–13; SR–BatsEDGX–2017–22; SR– Section 19(b)(3)(C) of the Act,204 that
The Exchange is filing a proposal to
BOX–2017–16; SR–BX–2017–023; SR– File Nos. SR–BatsBYX–2017–11; SR–
amend the MIAX Options Fee Schedule
C2–2017–017; SR–CBOE–2017–040; BatsBZX–2017–38; SR–BatsEDGA– (the ‘‘Fee Schedule’’) to clarify the
SR–CHX–2017–08; SR–FINRA–2017– 2017–13; SR–BatsEDGX–2017–22; SR– manner in which the Exchange assesses
011; SR–GEMX–2017–17; SR–IEX– BOX–2017–16; SR–BX–2017–023; SR– its Options Regulatory Fee (‘‘ORF’’), and
2017–16; SR–ISE–2017–45; SR–MIAX– C2–2017–017; SR–CBOE–2017–040; also to align its ORF rule text to rule text
2017–18; SR–MRX–2017–04; SR– SR–CHX–2017–08; SR–FINRA–2017– recently adopted by the Exchange’s
NASDAQ–2017–046; SR–NYSE–2017– 011; SR–GEMX–2017–17; SR–IEX– affiliate, MIAX PEARL, LLC (‘‘MIAX
22; SR–NYSEArca–2017–52; SR– 2017–16; SR–ISE–2017–45; SR–MIAX– PEARL’’), with respect to its ORF.3
NYSEMKT–2017–26; SR–PEARL–2017– 2017–18; SR–MRX–2017–04; SR– The text of the proposed rule change
20; or SR–PHLX–2017–37. The file NASDAQ–2017–046; SR–NYSE–2017– is available on the Exchange’s Web site
numbers should be included on the 22; SR–NYSEArca–2017–52; SR– at http://www.miaxoptions.com/rule-
NYSEMKT–2017–26; SR–PEARL–2017– filings, at MIAX’s principal office, and
subject line if email is used. To help the
20; and SR–PHLX–2017–37 be and at the Commission’s Public Reference
Commission process and review your Room.
comments more efficiently, please use hereby are, temporarily suspended. In
only one method. The Commission will addition, the Commission is instituting II. Self-Regulatory Organization’s
post all comments on the Commission’s proceedings to determine whether the Statement of the Purpose of, and
Internet Web site (http://www.sec.gov/ proposed rule changes should be Statutory Basis for, the Proposed Rule
rules/sro.shtml). Copies of the approved or disapproved. Change
submission, all subsequent For the Commission, by the Division of In its filing with the Commission, the
amendments, all written statements Trading and Markets, pursuant to delegated Exchange included statements
with respect to the proposed rule authority.205 concerning the purpose of and basis for
changes that are filed with the Brent J. Fields, the proposed rule change and discussed
Commission, and all written Secretary. any comments it received on the
communications relating to the proposed rule change. The text of these
[FR Doc. 2017–14245 Filed 7–6–17; 8:45 am]
proposed rule changess between the statements may be examined at the
BILLING CODE 8011–01–P
Commission and any person, other than places specified in Item IV below. The
those that may be withheld from the Exchange has prepared summaries, set
forth in sections A, B, and C below, of
public in accordance with the SECURITIES AND EXCHANGE the most significant aspects of such
provisions of 5 U.S.C. 552, will be COMMISSION statements.
available for Web site viewing and
printing in the Commission’s Public [Release No. 34–81063; File No. SR–MIAX–
A. Self-Regulatory Organization’s
Reference Room, 100 F Street NE., 2017–31]
Statement of the Purpose of, and the
Washington, DC 20549, on official Statutory Basis for, the Proposed Rule
business days between the hours of Self-Regulatory Organizations; Miami Change
10:00 a.m. and 3:00 p.m. Copies of such International Securities Exchange, 1. Purpose
filing also will be available for LLC; Notice of Filing and Immediate Currently, the Exchange charges an
inspection and copying at the principal Effectiveness of a Proposed Rule ORF in the amount of $0.0045 per
office of the Participants. All comments Change To Amend its Fee Schedule contract side. The proposed rule change
received will be posted without change; Concerning the Options Regulatory does not change the amount of the ORF,
the Commission does not edit personal Fee but instead modifies the rule text to
identifying information from clarify how the ORF is assessed and
submissions. You should submit only June 30, 2017.
collected. The proposed rule change
information that you wish to make Pursuant to the provisions of Section also aligns the ORF rule text of the
publicly available. All submissions 19(b)(1) of the Securities Exchange Act Exchange to rule text recently adopted
should refer to any of: File Nos. SR– of 1934 (‘‘Act’’) 1 and Rule 19b–4 by the Exchange’s affiliate, MIAX
BatsBYX–2017–11; SR–BatsBZX–2017– thereunder,2 notice is hereby given that PEARL, with respect to its ORF.4
38; SR–BatsEDGA–2017–13; SR– on June 23, 2017, Miami International The per-contract ORF will continue to
BatsEDGX–2017–22; SR–BOX–2017–16; Securities Exchange LLC (‘‘MIAX be assessed by MIAX Options to each
SR–BX–2017–023; SR–C2–2017–017; Options’’ or ‘‘Exchange’’) filed with the MIAX Options Member for all options
SR–CBOE–2017–040; SR–CHX–2017– Securities and Exchange Commission transactions, including Mini Options,
08; SR–FINRA–2017–011; SR–GEMX– (‘‘Commission’’) a proposed rule change cleared or ultimately cleared by the
2017–17; SR–IEX–2017–16; SR–ISE– as described in Items I, II, and III below, Member which are cleared by the
2017–45; SR–MIAX–2017–18; SR– which Items have been prepared by the Options Clearing Corporation (‘‘OCC’’)
asabaliauskas on DSKBBXCHB2PROD with NOTICES
MRX–2017–04; SR–NASDAQ–2017– Exchange. The Commission is 3 See Securities Exchange Act Release Nos. 80035
046; SR–NYSE–2017–22; SR– publishing this notice to solicit (February 14, 2017), 82 FR 11272 (February 21,
NYSEArca–2017–52; SR–NYSEMKT– comments on the proposed rule change 2017) (SR–PEARL–2017–09); 80035 (March 30,
2017–26; SR–PEARL–2017–20; or SR– from interested persons. 2017), 82 FR 18045 (April 10, 2017) (SR–PEARL–
2017–15); 80875 (June 7, 2017), 82 FR 27096 (June
PHLX–2017–37 and should be 13, 2017) (SR–PEARL–2017–26). The replacement
submitted on or before July 28, 2017. 204 15U.S.C. 78s(b)(3)(C). filings did not increase or decrease the amount of
205 17CFR 200.30–3(a)(57) and (58).
Rebuttal comments should be submitted the ORF, but rather clarified the application of the
1 15 U.S.C. 78s(b)(1). ORF.
by August 11, 2017. 2 17 CFR 240.19b–4. 4 Id.
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![Federal Register / Vol. 82, No. 129 / Friday, July 7, 2017 / Notices 31671
Member is the ‘‘ultimate clearing firm’’ twice a year on specific dates with submission, all subsequent
for a transaction in which a Member advance notice is not intended to amendments, all written statements
was assessed the ORF) is an equitable address a competitive issue but rather to with respect to the proposed rule
allocation of reasonable dues, fees, and provide Members with better notice of change that are filed with the
other charges among its members and any change that the Exchange may make Commission, and all written
issuers and other persons using its to the ORF. communications relating to the
facilities. The Exchange notes that there proposed rule change between the
is a material distinction between C. Self-Regulatory Organization’s
Commission and any person, other than
‘‘assessing’’ the ORF and ‘‘collecting’’ Statement on Comments on the
those that may be withheld from the
the ORF. The ORF is only assessed to Proposed Rule Change Received From
public in accordance with the
a Member with respect to a particular Members, Participants, or Others
provisions of 5 U.S.C. 552, will be
transaction in which it is either the Written comments were neither available for Web site viewing and
executing clearing firm or ultimate solicited nor received. printing in the Commission’s Public
clearing firm. The Exchange does not III. Date of Effectiveness of the Reference Room, 100 F Street NE.,
assess the ORF to non-Members. Once, Proposed Rule Change and Timing for Washington, DC 20549, on official
however, the ORF is assessed to a Commission Action business days between the hours of
Member for a particular transaction, the The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
ORF may be collected from the Member effective pursuant to Section filing also will be available for
or a non-Member, depending on how 19(b)(3)(A)(ii) of the Act,14 and Rule inspection and copying at the principal
the transaction is cleared at OCC. If 19b–4(f)(2) 15 thereunder. At any time office of the Exchange. All comments
there was no change to the clearing within 60 days of the filing of the received will be posted without change;
account of the original transaction, the proposed rule change, the Commission the Commission does not edit personal
ORF would be collected from the summarily may temporarily suspend identifying information from
Member. If there was a change to the such rule change if it appears to the submissions. You should submit only
clearing account of the original Commission that such action is information that you wish to make
transaction and a non-Member becomes necessary or appropriate in the public available publicly. All submissions
the ultimate clearing firm for that interest, for the protection of investors, should refer to File No. SR–MIAX–
transaction, then the ORF will be or otherwise in furtherance of the 2017–31, and should be submitted on or
collected from that non-Member. The purposes of the Act. If the Commission before July 28, 2017.
Exchange believes that this collection takes such action, the Commission shall
For the Commission, by the Division of
practice is reasonable and appropriate, institute proceedings to determine
Trading and Markets, pursuant to delegated
and was originally instituted for the whether the proposed rule should be authority.16
benefit of clearing firms that desired to approved or disapproved.
Brent J. Fields,
have the ORF be collected from the
clearing firm that ultimately clears the IV. Solicitation of Comments Secretary.
transaction. Interested persons are invited to [FR Doc. 2017–14243 Filed 7–6–17; 8:45 am]
submit written data, views, and BILLING CODE 8011–01–P
B. Self-Regulatory Organization’s arguments concerning the foregoing,
Statement on Burden on Competition including whether the proposed rule
The Exchange does not believe that change is consistent with the Act. SMALL BUSINESS ADMINISTRATION
the proposed rule change will result in Comments may be submitted by any of
any burden on competition that is not the following methods: [Disaster Declaration #15191 and #15192;
necessary or appropriate in furtherance COLORADO Disaster #CO–00077]
of the purposes of the Act. The ORF is Electronic Comments
not intended to have any impact on • Use the Commission’s Internet Administrative Declaration of a
competition. Rather, it is designed to comment form (http://www.sec.gov/ Disaster for the State of Colorado
enable the Exchange to recover a rules/sro.shtml); or AGENCY: U.S. Small Business
material portion of the Exchange’s cost • Send an email to rule-comments@ Administration.
related to its regulatory activities. The sec.gov. Please include File No. SR–
Exchange is obligated to ensure that the ACTION: Notice.
MIAX–2017–31 on the subject line.
amount of regulatory revenue collected SUMMARY: This is a notice of an
Paper Comments
from the ORF, in combination with its Administrative declaration of a disaster
other regulatory fees and fines, does not • Send paper comments in triplicate
for the State of Colorado dated 06/30/
exceed regulatory costs. Unilateral to Secretary, Securities and Exchange
2017.
action by MIAX Options in establishing Commission, 100 F Street NE.,
Incident: Hailstorm.
fees for services provided to its Washington, DC 20549–1090.
Incident Period: 05/08/2017.
Members and others using its facilities All submissions should refer to File No.
will not have an impact on competition. DATES: Effective 06/30/2017.
SR–MIAX–2017–31. This file number
In the highly competitive environment should be included on the subject line Physical Loan Application Deadline
for equity options trading, MIAX if email is used. To help the Date: 08/29/2017.
Economic Injury (Eidl) Loan
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Options does not have the market power Commission process and review your
necessary to set prices for services that comments more efficiently, please use Application Deadline Date: 03/30/2018.
are unreasonable or unfairly only one method. The Commission will ADDRESSES: Submit completed loan
discriminatory in violation of the Act. post all comments on the Commission’s applications to: U.S. Small Business
The Exchange’s ORF, as described Internet Web site (http://www.sec.gov/ Administration, Processing and
herein, is comparable to fees charged by rules/sro.shtml). Copies of the Disbursement Center, 14925 Kingsport
other options exchanges for the same or Road, Fort Worth, TX 76155.
similar services. The Exchange believes 14 15 U.S.C. 78s(b)(3)(A)(ii).
that limiting the changes to the ORF to 15 17 CFR 240.19b–4(f)(2). 16 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 20:56 Jul 06, 2017 Jkt 241001 PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 E:\FR\FM\07JYN1.SGM 07JYN1](https://thefederalregister.org/doc/82_FR_31797/page/4.svg)
Document Created: 2017-07-07 02:19:42
Document Modified: 2017-07-07 02:19:42
| 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 | 82 FR 31668 |
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