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)

[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]


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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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to 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.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the proposed 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.
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    \5\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associated with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    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.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MIAX-2017-35 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).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-15906 Filed 7-27-17; 8:45 am]
 BILLING CODE 8011-01-P