82_FR_35398 82 FR 35254 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX Options Rules 404, 506, 806, and 1701

82 FR 35254 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX Options Rules 404, 506, 806, and 1701

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 144 (July 28, 2017)

Page Range35254-35256
FR Document2017-15906

Federal Register, Volume 82 Issue 144 (Friday, July 28, 2017)
[Federal Register Volume 82, Number 144 (Friday, July 28, 2017)]
[Notices]
[Pages 35254-35256]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-15906]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81193; File No. SR-MIAX-2017-35]


Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend MIAX Options Rules 404, 506, 806, and 
1701

July 24, 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 July 19, 2017, Miami International Securities 
Exchange, LLC (``MIAX Options'' or the ``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

[[Page 35255]]

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 make minor corrective changes 
to Exchange Rule 404, Series of Option Contracts Open for Trading; Rule 
506, Collection and Dissemination of Quotations; Rule 806, Risk 
Analysis of Market Maker Accounts; and Rule 1701, Consolidated Audit 
Trail Compliance Rule--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 Options' 
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
    The Exchange proposes to amend Exchange Rules 404, Series of Option 
Contracts Open for Trading; Rule 506, Collection and Dissemination of 
Quotations; Rule 806, Risk Analysis of Market Maker Accounts; and Rule 
1701, Consolidated Audit Trail Compliance Rule--Definitions to make 
minor non-substantive corrective changes.
    First, the Exchange proposes to amend Exchange Rule 404, Series of 
Option Contracts Open for Trading, Interpretation and Policy .08, Mini 
Option Contracts, paragraph (a), to correct typographical errors in the 
last sentence. Currently, the sentence reads, ``[m]ini-option contracts 
may currently be listed on SPDR S&P 500 (SPY), Apple, Inc. (AAPL), SPDR 
Gold Trust (GLD), Alphabet, Inc. (GOOGL) and Amazon.com Inc. (AMZN).'' 
The commas should be removed from ``Apple, Inc.'' and ``Alphabet, 
Inc.,'' and a comma should be inserted in ``Amazon.com Inc.'' 
Therefore, the Exchange proposes to amend this Rule to correctly 
reflect the names of Apple Inc., Alphabet Inc., and Amazon.com, Inc.
    Second, the Exchange proposes to amend Exchange Rule 404, Series of 
Option Contracts Open for Trading, Interpretation and Policy .08, Mini 
Option Contracts, paragraph (b), to correct typographical errors in the 
last sentence. Currently, the sentence reads, ``[f]or example, a call 
series strike price to deliver 10 shares of stock at $125 per share has 
a total deliverable value of $1250, and the strike price will be set at 
125.'' A comma should be inserted in the number ``$1250'' and a dollar 
sign should be inserted before the number ``125.'' Therefore, the 
Exchange proposes to amend this Rule to replace the number ``$1250'' 
with ``$1,250'' and replace the number ``125'' with ``$125.''
    Third, the Exchange proposes to amend Exchange Rule 506(c) to 
convert the Roman numeral list item identifiers to numerical 
identifiers to properly conform to the hierarchical heading scheme used 
throughout the Exchange's rulebook. Paragraphs (i) and (ii) are 
incorrectly numbered and should be numbered (1) and (2). Therefore, the 
Exchange proposes to amend this Rule to correctly number the paragraphs 
as (1) and (2).
    Fourth, the Exchange proposes to amend Exchange Rule 806(b)(3) to 
correct a minor typographical error in the last word of this 
subparagraph. Currently, the section reads, ``[o]ptions prices shall be 
estimated through use of recognized options pricing models such as, but 
not limited to, Black-Scholes and Cox-Reubenstein.'' The word ``Cox-
Reubenstein'' is misspelled and the Exchange proposes to amend this 
Rule to correct the spelling to ``Cox-Rubinstein.''
    Finally, the Exchange proposes to amend Exchange Rule 1701(d) to 
correct a typographical error. Currently, the section reads, ``. . . 
required to be reported under the Compliance Audit Trail . . .'' The 
word ``Compliance'' is incorrect and should be replaced with 
``Consolidated.''
2. Statutory Basis
    The Exchange 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 
they are 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.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes the proposed changes promote just and 
equitable principles of trade and remove impediments to and perfect the 
mechanism of a free and open market and a national market system 
because the proposed rule change corrects minor typographical errors 
and corrects errors in the hierarchical heading scheme to provide 
uniformity in the Exchange's rulebook. The Exchange notes that the 
proposed changes to Exchange Rule 404, Series of Option Contracts Open 
for Trading; Rule 506, Collection and Dissemination of Quotations; Rule 
806, Risk Analysis of Market Maker Accounts; and Rule 1701, 
Consolidated Audit Trail Compliance Rule--Definitions 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 a national exchange system. 
In particular, the Exchange believes that the proposed 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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    MIAX Options does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule change will 
have no impact on competition as they are not designed to address any 
competitive issues but rather are designed 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 change will 
impose any burden on intermarket competition as the Rules apply equally 
to all Exchange Members.

[[Page 35256]]

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

    Pursuant to Section 19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) 
\7\ thereunder, the Exchange has designated this proposal as one that 
effects a change that: (i) Does not significantly affect the protection 
of investors or the public interest; (ii) does not impose any 
significant burden on competition; and (iii) by its terms, does not 
become operative for 30 days after the date of the filing, or such 
shorter time as the Commission may designate if consistent with the 
protection of investors and the public interest.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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-2017-35 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-2017-35. 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-2017-35, and should be 
submitted on or before August 18, 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).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-15906 Filed 7-27-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                    35254                            Federal Register / Vol. 82, No. 144 / Friday, July 28, 2017 / Notices

                                                    believes that allowing non-routable                      All submissions should refer to File                  Process and avoid introducing
                                                    DAY market orders to queue for the                       Number SR–IEX–2017–11. This file                      unnecessary technical complexities. The
                                                    Opening Process may accommodate                          number should be included on the                      Commission does not believe that any of
                                                    market participants that use DAY                         subject line if email is used. To help the            the changes proposed in Amendment
                                                    market orders on other exchanges and                     Commission process and review your                    No. 3 introduce novel concepts, but
                                                    therein may help promote the orderly                     comments more efficiently, please use                 rather add detail to better reflect in the
                                                    submission of those orders to the                        only one method. The Commission will                  proposed rule text how the proposed
                                                    Exchange in advance of the Regular                       post all comments on the Commission’s                 Opening Process would work for non-
                                                    Market Session.                                          Internet Web site (http://www.sec.gov/                IEX-listed securities, and also reconciles
                                                       Further, the Commission believes that                 rules/sro.shtml). Copies of the                       the proposed Opening Process with the
                                                    the components of the proposal that are                  submission, all subsequent                            tick-size requirements of the Tick Size
                                                    designed to address what would occur                     amendments, all written statements                    Pilot. Accordingly, for the reasons noted
                                                    if a disruption prevents the execution of                with respect to the proposed rule                     above, the Commission finds good cause
                                                    the opening process,58 and what would                    change that are filed with the                        for approving the proposed rule change,
                                                    occur if a security is subject to a halt,                Commission, and all written                           as modified by Amendment No. 3, on an
                                                    suspension, or pause in trading during                   communications relating to the                        accelerated basis, pursuant to Section
                                                    the Pre-Market Session,59 set forth                      proposed rule change between the                      19(b)(2) of the Act.62
                                                    procedures that are reasonably designed                  Commission and any person, other than
                                                    to protect investors and the public                      those that may be withheld from the                   VI. Conclusion
                                                    interest, and remove impediments to                      public in accordance with the                           It is therefore ordered, pursuant to
                                                    and perfect the mechanism of a national                  provisions of 5 U.S.C. 552, will be                   Section 19(b)(2) of the Act,63 that the
                                                    market system, consistent with Section                   available for Web site viewing and                    proposed rule change (SR–IEX–2017–
                                                    6(b)(5) of the Act.60                                    printing in the Commission’s Public                   11), as modified by Amendment No. 3
                                                       Finally, the Commission notes that                    Reference Room, 100 F Street NE.,
                                                                                                                                                                   thereto, be, and hereby is, approved on
                                                    another national securities exchange                     Washington, DC 20549 on official
                                                                                                                                                                   an accelerated basis.
                                                    conducts an opening process for non-                     business days between the hours of
                                                    listed securities,61 and the Commission                  10:00 a.m. and 3:00 p.m. Copies of such                 For the Commission, by the Division of
                                                                                                             filing also will be available for                     Trading and Markets, pursuant to delegated
                                                    received no comments on the                                                                                    authority.64
                                                    Exchange’s proposed rule change.                         inspection and copying at the principal
                                                                                                             office of the Exchange. All comments                  Eduardo A. Aleman,
                                                    IV. Solicitation of Comments on                          received will be posted without change;               Assistant Secretary.
                                                    Amendment No. 3                                          the Commission does not edit personal                 [FR Doc. 2017–15908 Filed 7–27–17; 8:45 am]
                                                      Interested persons are invited to                      identifying information from                          BILLING CODE 8011–01–P
                                                    submit written data, views, and                          submissions. You should submit only
                                                    arguments concerning whether                             information that you wish to make
                                                    Amendment No. 3 is consistent with the                   available publicly. All submissions                   SECURITIES AND EXCHANGE
                                                    Act. Comments may be submitted by                        should refer to File Number SR–IEX–                   COMMISSION
                                                    any of the following methods:                            2017–11, and should be submitted on or
                                                                                                             before August 18, 2017.                               [Release No. 34–81193; File No. SR–MIAX–
                                                    Electronic Comments                                                                                            2017–35]
                                                                                                             V. Accelerated Approval of Proposed
                                                      • Use the Commission’s Internet
                                                                                                             Rule Change, as Modified by                           Self-Regulatory Organizations; Miami
                                                    comment form (http://www.sec.gov/                        Amendment No. 3
                                                    rules/sro.shtml); or                                                                                           International Securities Exchange,
                                                      • Send an email to rule-comments@                        The Commission finds good cause to                  LLC; Notice of Filing and Immediate
                                                    sec.gov. Please include File Number SR–                  approve the proposed rule change, as                  Effectiveness of a Proposed Rule
                                                    IEX–2017–11 on the subject line.                         modified by Amendment No. 3, prior to                 Change To Amend MIAX Options Rules
                                                                                                             the thirtieth day after the date of                   404, 506, 806, and 1701
                                                    Paper Comments                                           publication of the notice of Amendment
                                                      • Send paper comments in triplicate                    No. 3 in the Federal Register. The                    July 24, 2017.
                                                    to Brent J. Fields, Secretary, Securities                Commission believes that the proposed                    Pursuant to the provisions of Section
                                                    and Exchange Commission, 100 F Street                    changes to the description of the process             19(b)(1) of the Securities Exchange Act
                                                    NE., Washington, DC 20549–1090.                          for determining the Opening Match                     of 1934 (‘‘Act’’) 1 and Rule 19b–4
                                                                                                             Price that were included in Amendment                 thereunder,2 notice is hereby given that
                                                    Regular Market Session, and are rejected if              No. 3 add clarity to the price                        on July 19, 2017, Miami International
                                                    submitted during the Pre-Market (or Post-Market)         determination process without                         Securities Exchange, LLC (‘‘MIAX
                                                    Session. See Notice, supra note 3, at 19763.             materially changing the proposal from
                                                      58 See proposed Rule 11.231(d).                                                                              Options’’ or the ‘‘Exchange’’) filed with
                                                      59 See proposed Rule 11.231(e).
                                                                                                             what the Exchange originally filed.                   the Securities and Exchange
                                                      60 The Commission believes that the other
                                                                                                             Additionally, the Commission believes                 Commission (‘‘Commission’’) a
                                                    components of the proposal, including proposed           that the proposed addition of a rounding              proposed rule change as described in
                                                    Rule 11.231(f) and the minor conforming change to        process for the Cross Tie Breaker to                  Items I, II, and III below, which Items
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    the language used to reference LULD Price Bands          prevent certain Tick Size Pilot securities            have been prepared by the Exchange.
                                                    in Rule 11.190(a)(2), are consistent with the Act.       from trading in an impermissible
                                                      61 See, e.g., BZX Rule 11.24. The Commission                                                                 The Commission is publishing this
                                                    notes that the BZX opening process for non-listed
                                                                                                             increment eliminates a potential conflict             notice to solicit comments on the
                                                    securities is largely similar to what the Exchange       between the Tick Size Pilot and the
                                                    has proposed, but differs in that it is designed to      Opening Process. Moreover, the                          62 15    U.S.C. 78s(b)(2).
                                                    match eligible orders at the midpoint of the NBBO        Commission believes that applying the                   63 Id.
                                                    whereas the Exchange’s proposed Opening Match,
                                                    while bound by the Away Protected NBBO, could
                                                                                                             rounding process to all non-IEX-listed                  64 17 CFR 200.30–3(a)(12).
                                                    occur at a price other than the midpoint of the          securities will allow for consistent                    1 15 U.S.C. 78s(b)(1).
                                                    Away Protected NBBO.                                     handling of securities in the Opening                   2 17 CFR 240.19b–4.




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                                                                                     Federal Register / Vol. 82, No. 144 / Friday, July 28, 2017 / Notices                                                         35255

                                                    proposed rule change from interested                     ‘‘Amazon.com Inc.’’ Therefore, the                         trade, to foster cooperation and
                                                    persons.                                                 Exchange proposes to amend this Rule                       coordination with persons engaged in
                                                                                                             to correctly reflect the names of Apple                    facilitating transactions in securities, to
                                                    I. Self-Regulatory Organization’s
                                                                                                             Inc., Alphabet Inc., and Amazon.com,                       remove impediments to and perfect the
                                                    Statement of the Terms of Substance of
                                                                                                             Inc.                                                       mechanisms of a free and open market
                                                    the Proposed Rule Change                                    Second, the Exchange proposes to                        and a national market system and, in
                                                       The Exchange is filing a proposal to                  amend Exchange Rule 404, Series of                         general, to protect investors and the
                                                    make minor corrective changes to                         Option Contracts Open for Trading,                         public interest.
                                                    Exchange Rule 404, Series of Option                      Interpretation and Policy .08, Mini
                                                                                                                                                                           The Exchange believes the proposed
                                                    Contracts Open for Trading; Rule 506,                    Option Contracts, paragraph (b), to
                                                                                                                                                                        changes promote just and equitable
                                                    Collection and Dissemination of                          correct typographical errors in the last
                                                                                                                                                                        principles of trade and remove
                                                    Quotations; Rule 806, Risk Analysis of                   sentence. Currently, the sentence reads,
                                                                                                                                                                        impediments to and perfect the
                                                    Market Maker Accounts; and Rule 1701,                    ‘‘[f]or example, a call series strike price
                                                                                                                                                                        mechanism of a free and open market
                                                    Consolidated Audit Trail Compliance                      to deliver 10 shares of stock at $125 per
                                                                                                                                                                        and a national market system because
                                                    Rule—Definitions.                                        share has a total deliverable value of
                                                                                                                                                                        the proposed rule change corrects minor
                                                       The text of the proposed rule change                  $1250, and the strike price will be set
                                                                                                                                                                        typographical errors and corrects errors
                                                    is available on the Exchange’s Web site                  at 125.’’ A comma should be inserted in
                                                                                                                                                                        in the hierarchical heading scheme to
                                                    at http://www.miaxoptions.com/rule-                      the number ‘‘$1250’’ and a dollar sign
                                                                                                                                                                        provide uniformity in the Exchange’s
                                                    filings/ at MIAX Options’ principal                      should be inserted before the number
                                                                                                                                                                        rulebook. The Exchange notes that the
                                                    office, and at the Commission’s Public                   ‘‘125.’’ Therefore, the Exchange
                                                                                                                                                                        proposed changes to Exchange Rule 404,
                                                    Reference Room.                                          proposes to amend this Rule to replace
                                                                                                                                                                        Series of Option Contracts Open for
                                                                                                             the number ‘‘$1250’’ with ‘‘$1,250’’ and
                                                    II. Self-Regulatory Organization’s                                                                                  Trading; Rule 506, Collection and
                                                                                                             replace the number ‘‘125’’ with ‘‘$125.’’
                                                    Statement of the Purpose of, and                            Third, the Exchange proposes to                         Dissemination of Quotations; Rule 806,
                                                    Statutory Basis for, the Proposed Rule                   amend Exchange Rule 506(c) to convert                      Risk Analysis of Market Maker
                                                    Change                                                   the Roman numeral list item identifiers                    Accounts; and Rule 1701, Consolidated
                                                                                                             to numerical identifiers to properly                       Audit Trail Compliance Rule—
                                                      In its filing with the Commission, the
                                                                                                             conform to the hierarchical heading                        Definitions do not alter the application
                                                    Exchange included statements
                                                                                                             scheme used throughout the Exchange’s                      of each rule. As such, the proposed
                                                    concerning the purpose of and basis for
                                                                                                             rulebook. Paragraphs (i) and (ii) are                      amendments would foster cooperation
                                                    the proposed rule change and discussed
                                                                                                             incorrectly numbered and should be                         and coordination with persons engaged
                                                    any comments it received on the
                                                                                                             numbered (1) and (2). Therefore, the                       in facilitating transactions in securities
                                                    proposed rule change. The text of these
                                                                                                             Exchange proposes to amend this Rule                       and would remove impediments to and
                                                    statements may be examined at the
                                                                                                             to correctly number the paragraphs as                      perfect the mechanism of a free and
                                                    places specified in Item IV below. The
                                                                                                             (1) and (2).                                               open market and a national exchange
                                                    Exchange has prepared summaries, set
                                                                                                                Fourth, the Exchange proposes to                        system. In particular, the Exchange
                                                    forth in sections A, B, and C below, of
                                                                                                             amend Exchange Rule 806(b)(3) to                           believes that the proposed changes will
                                                    the most significant aspects of such
                                                                                                             correct a minor typographical error in                     provide greater clarity to Members 5 and
                                                    statements.
                                                                                                             the last word of this subparagraph.                        the public regarding the Exchange’s
                                                    A. Self-Regulatory Organization’s                        Currently, the section reads, ‘‘[o]ptions                  Rules. It is in the public interest for
                                                    Statement of the Purpose of, and the                     prices shall be estimated through use of                   rules to be accurate and concise so as to
                                                    Statutory Basis for, the Proposed Rule                   recognized options pricing models such                     eliminate the potential for confusion.
                                                    Change                                                   as, but not limited to, Black-Scholes and                  B. Self-Regulatory Organization’s
                                                    1. Purpose                                               Cox-Reubenstein.’’ The word ‘‘Cox-                         Statement on Burden on Competition
                                                                                                             Reubenstein’’ is misspelled and the
                                                       The Exchange proposes to amend                        Exchange proposes to amend this Rule                          MIAX Options does not believe that
                                                    Exchange Rules 404, Series of Option                     to correct the spelling to ‘‘Cox-                          the proposed rule change will impose
                                                    Contracts Open for Trading; Rule 506,                    Rubinstein.’’                                              any burden on competition not
                                                    Collection and Dissemination of                             Finally, the Exchange proposes to                       necessary or appropriate in furtherance
                                                    Quotations; Rule 806, Risk Analysis of                   amend Exchange Rule 1701(d) to correct                     of the purposes of the Act. The
                                                    Market Maker Accounts; and Rule 1701,                    a typographical error. Currently, the                      proposed rule change will have no
                                                    Consolidated Audit Trail Compliance                      section reads, ‘‘. . . required to be                      impact on competition as they are not
                                                    Rule—Definitions to make minor non-                      reported under the Compliance Audit                        designed to address any competitive
                                                    substantive corrective changes.                          Trail . . .’’ The word ‘‘Compliance’’ is                   issues but rather are designed to add
                                                       First, the Exchange proposes to                       incorrect and should be replaced with                      additional clarity to existing rules and
                                                    amend Exchange Rule 404, Series of                       ‘‘Consolidated.’’                                          to remedy minor non-substantive issues
                                                    Option Contracts Open for Trading,                                                                                  in the text of various rules identified in
                                                    Interpretation and Policy .08, Mini                      2. Statutory Basis
                                                                                                                                                                        this proposal.
                                                    Option Contracts, paragraph (a), to                         The Exchange believes that its
                                                    correct typographical errors in the last                 proposed rule change is consistent with                       The Exchange does not believe that
                                                                                                                                                                        the proposed rule change will impose
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    sentence. Currently, the sentence reads,                 Section 6(b) of the Act 3 in general, and
                                                    ‘‘[m]ini-option contracts may currently                                                                             any burden on intermarket competition
                                                                                                             furthers the objectives of Section 6(b)(5)
                                                    be listed on SPDR S&P 500 (SPY),                                                                                    as the Rules apply equally to all
                                                                                                             of the Act 4 in particular, in that they are
                                                    Apple, Inc. (AAPL), SPDR Gold Trust                                                                                 Exchange Members.
                                                                                                             designed to prevent fraudulent and
                                                    (GLD), Alphabet, Inc. (GOOGL) and                        manipulative acts and practices, to
                                                                                                                                                                          5 The term ‘‘Member’’ means an individual or
                                                    Amazon.com Inc. (AMZN).’’ The                            promote just and equitable principles of                   organization approved to exercise the trading rights
                                                    commas should be removed from                                                                                       associated with a Trading Permit. Members are
                                                    ‘‘Apple, Inc.’’ and ‘‘Alphabet, Inc.,’’ and                   3 15   U.S.C. 78f(b).                                 deemed ‘‘members’’ under the Exchange Act. See
                                                    a comma should be inserted in                                 4 15   U.S.C. 78f(b)(5).                              Exchange Rule 100.



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                                                    35256                            Federal Register / Vol. 82, No. 144 / Friday, July 28, 2017 / Notices

                                                    C. Self-Regulatory Organization’s                        only one method. The Commission will                    below, which Items have been prepared
                                                    Statement on Comments on the                             post all comments on the Commission’s                   by the Exchange. The Commission is
                                                    Proposed Rule Change Received From                       Internet Web site (http://www.sec.gov/                  publishing this notice to solicit
                                                    Members, Participants, or Others                         rules/sro.shtml). Copies of the                         comments on the proposed rule change
                                                      Written comments were neither                          submission, all subsequent                              from interested persons.
                                                    solicited nor received.                                  amendments, all written statements
                                                                                                             with respect to the proposed rule                       I. Self-Regulatory Organization’s
                                                    III. Date of Effectiveness of the                        change that are filed with the                          Statement of the Terms of Substance of
                                                    Proposed Rule Change and Timing for                      Commission, and all written                             the Proposed Rule Change
                                                    Commission Action                                        communications relating to the                             The Exchange filed a proposal to list
                                                       Pursuant to Section 19(b)(3)(A) of the                proposed rule change between the                        and trade shares of the Aptus Fortified
                                                    Act 6 and Rule 19b–4(f)(6) 7 thereunder,                 Commission and any person, other than                   Value ETF (the ‘‘Fund’’), a series of ETF
                                                    the Exchange has designated this                         those that may be withheld from the                     Series Solutions (the ‘‘Trust’’), under
                                                    proposal as one that effects a change                    public in accordance with the                           Rule 14.11(c) (‘‘Index Fund Shares’’).
                                                    that: (i) Does not significantly affect the              provisions of 5 U.S.C. 552, will be                        The text of the proposed rule change
                                                    protection of investors or the public                    available for Web site viewing and                      is available at the Exchange’s Web site
                                                    interest; (ii) does not impose any                       printing in the Commission’s Public                     at www.bats.com, at the principal office
                                                    significant burden on competition; and                   Reference Room, 100 F Street NE.,                       of the Exchange, and at the
                                                    (iii) by its terms, does not become                      Washington, DC 20549, on official                       Commission’s Public Reference Room.
                                                    operative for 30 days after the date of                  business days between the hours of
                                                                                                                                                                     II. Self-Regulatory Organization’s
                                                    the filing, or such shorter time as the                  10:00 a.m. and 3:00 p.m. Copies of the
                                                                                                                                                                     Statement of the Purpose of, and
                                                    Commission may designate if consistent                   filing also will be available for
                                                                                                                                                                     Statutory Basis for, the Proposed Rule
                                                    with the protection of investors and the                 inspection and copying at the principal
                                                                                                                                                                     Change
                                                    public interest.                                         office of the Exchange. All comments
                                                       At any time within 60 days of the                     received will be posted without change;                    In its filing with the Commission, the
                                                    filing of the proposed rule change, the                  the Commission does not edit personal                   Exchange included statements
                                                    Commission summarily may                                 identifying information from                            concerning the purpose of and basis for
                                                    temporarily suspend such rule change if                  submissions. You should submit only                     the proposed rule change and discussed
                                                    it appears to the Commission that such                   information that you wish to make                       any comments it received on the
                                                    action is necessary or appropriate in the                available publicly. All submissions                     proposed rule change. The text of these
                                                    public interest, for the protection of                   should refer to File Number SR–MIAX–                    statements may be examined at the
                                                    investors, or otherwise in furtherance of                2017–35, and should be submitted on or                  places specified in Item IV below. The
                                                    the purposes of the Act. If the                          before August 18, 2017.                                 Exchange has prepared summaries, set
                                                    Commission takes such action, the                          For the Commission, by the Division of                forth in Sections A, B, and C below, of
                                                    Commission shall institute proceedings                   Trading and Markets, pursuant to delegated              the most significant parts of such
                                                    to determine whether the proposed rule                   authority.8                                             statements.
                                                    should be approved or disapproved.                       Eduardo A. Aleman,                                      (A) Self-Regulatory Organization’s
                                                                                                             Assistant Secretary.                                    Statement of the Purpose of, and
                                                    IV. Solicitation of Comments
                                                                                                             [FR Doc. 2017–15906 Filed 7–27–17; 8:45 am]             Statutory Basis for, the Proposed Rule
                                                      Interested persons are invited to                      BILLING CODE 8011–01–P                                  Change
                                                    submit written data, views, and
                                                    arguments concerning the foregoing,                                                                              1. Purpose
                                                    including whether the proposed rule                      SECURITIES AND EXCHANGE                                    The Exchange proposes to list and
                                                    change is consistent with the Act.                       COMMISSION                                              trade the Shares under Rule 14.11(c)(3),
                                                    Comments may be submitted by any of                                                                              which governs the listing and trading of
                                                                                                             [Release No. 34–81191; File No. SR–
                                                    the following methods:                                                                                           Index Fund Shares on the Exchange.3
                                                                                                             BatsBZX–2017–46]
                                                    Electronic Comments                                                                                              The Fund will be an index-based
                                                                                                             Self-Regulatory Organizations; Bats                     exchange traded fund (‘‘ETF’’). The
                                                      • Use the Commission’s Internet                        BZX Exchange, Inc.; Notice of Filing of                 Exchange is submitting this proposed
                                                    comment form (http://www.sec.gov/                        a Proposed Rule Change to Rule                          rule change because the Index, as
                                                    rules/sro.shtml); or                                     14.11(c), Index Fund Shares, To List                    defined below, does not meet all of the
                                                      • Send an email to rule-comments@
                                                                                                             and Trade Shares of the Aptus                           ‘‘generic’’ listing requirements of Rule
                                                    sec.gov. Please include File Number SR–
                                                                                                             Fortified Value ETF, a Series of ETF                    14.11(c)(3)(A)(i), applicable to the
                                                    MIAX–2017–35 on the subject line.
                                                                                                             Series Solutions                                        listing of Index Fund Shares based upon
                                                    Paper Comments                                                                                                   an index of ‘‘U.S. Component Stocks.’’ 4
                                                                                                             July 24, 2017.
                                                      • Send paper comments in triplicate                                                                            Specifically, Rule 14.11(c)(3)(A)(i) sets
                                                                                                                Pursuant to Section 19(b)(1) of the                  forth the requirements to be met by
                                                    to Secretary, Securities and Exchange                    Securities Exchange Act of 1934
                                                    Commission, 100 F Street NE.,                                                                                    components of an index or portfolio of
                                                                                                             (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                    Washington, DC 20549–1090.                                                                                       U.S. Component Stocks. Because the
                                                                                                             notice is hereby given that on July 10,
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    All submissions should refer to File                     2017, Bats BZX Exchange, Inc.                              3 The Commission originally approved BZX Rule
                                                    Number SR–MIAX–2017–35. This file                        (‘‘Exchange’’ or ‘‘BZX’’) filed with the                14.11(c) in Securities Exchange Act Release No.
                                                    number should be included on the                         Securities and Exchange Commission                      65225 (August 30, 2011), 76 FR 55148 (September
                                                    subject line if email is used. To help the               (‘‘Commission’’) the proposed rule                      6, 2011) (SR–BATS–2011–018).
                                                                                                                                                                        4 As defined in Rule 14.11(c)(1)(D), the term ‘‘U.S.
                                                    Commission process and review your                       change as described in Items I and II
                                                                                                                                                                     Component Stock’’ shall mean an equity security
                                                    comments more efficiently, please use                                                                            that is registered under Sections 12(b) or 12(g) of
                                                                                                                  8 17 CFR 200.30–3(a)(12).                          the Act, or an American Depositary receipt, the
                                                      6 15 U.S.C. 78s(b)(3)(A).                                   1 15 U.S.C. 78s(b)(1).                             underlying equity security of which is registered
                                                      7 17 CFR 240.19b–4(f)(6).                                   2 17 CFR 240.19b–4.                                under Sections 12(b) or 12(g) of the Act.



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Document Created: 2017-07-28 03:09:55
Document Modified: 2017-07-28 03:09:55
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 35254 

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