82_FR_52557 82 FR 52340 - Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Pricing Schedule Section II, Entitled Multiply Listed Options Fees

82 FR 52340 - Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Pricing Schedule Section II, Entitled Multiply Listed Options Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 217 (November 13, 2017)

Page Range52340-52342
FR Document2017-24439

Federal Register, Volume 82 Issue 217 (Monday, November 13, 2017)
[Federal Register Volume 82, Number 217 (Monday, November 13, 2017)]
[Notices]
[Pages 52340-52342]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24439]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82019; File No. SR-Phlx-2017-91]


Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Pricing 
Schedule Section II, Entitled Multiply Listed Options Fees

November 6, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on November 1, 2017, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III, below, which 
Items have been prepared by the Exchange. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
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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 proposes to amend the Pricing Schedule, Section II, 
entitled ``Multiply Listed Options Fees,'' \3\ as further discussed 
below.
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    \3\ This includes options overlying equities, ETFs, ETNs and 
indexes which are multiply listed.
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    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqphlx.cchwallstreet.com/, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these

[[Page 52341]]

statements may be examined at the places specified in Item IV below. 
The Exchange has prepared summaries, set forth in sections A, B, and C 
below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend Section II of 
the Exchange's Pricing Schedule to increase the assessment for select 
Firm \4\ electronic simple orders.
---------------------------------------------------------------------------

    \4\ The term ``Firm'' applies to any transaction that is 
identified by a member or member organization for clearing in the 
Firm range at OCC.
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    As set forth in Section II of the Pricing Schedule, the Exchange 
currently charges a Penny Pilot Options Transaction Charge for 
electronic simple orders that is $0.48 per contract for 
Professional,\5\ Broker-Dealer \6\ and Firm orders, $0.22 per contract 
for Specialist \7\ and Market Maker \8\ orders, and $0.00 for Customer 
\9\ orders. In addition, the Exchange charges a reduced Penny Pilot 
Options Transaction Charge for Firm electronic simple orders in AAPL, 
BAC, EEM, FB, FXI, IWM, QQQ, TWTR, VXX and XLF (hereinafter, ``Select 
Symbols'') that is $0.37 per contract (reduced from $0.48 per 
contract).\10\ The reduced fee for Firm electronic simple orders in 
Select Symbols (such reduced fee, the ``Select Firm Fee'') is to 
incentivize Firms to transact more volume in Select Symbols, thereby 
attracting more order flow to the Exchange.
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    \5\ The term ``Professional'' applies to transactions for the 
accounts of Professionals, as defined in Exchange Rule 1000(b)(14) 
means any person or entity that (i) is not a broker or dealer in 
securities, and (ii) places more than 390 orders in listed options 
per day on average during a calendar month for its own beneficial 
account(s). See Pricing Schedule, Preface.
    \6\ The term ``Broker-Dealer'' applies to any transaction which 
is not subject to any of the other transaction fees applicable 
within a particular category. See Pricing Schedule, Preface.
    \7\ The term ``Specialist'' applies to transactions for the 
account of a Specialist (as defined in Exchange Rule 1020(a)). A 
Specialist is an Exchange member who is registered as an options 
specialist pursuant to Rule 1020(a). An options Specialist includes 
a Remote Specialist which is defined as an options specialist in one 
or more classes that does not have a physical presence on an 
Exchange floor and is approved by the Exchange pursuant to Rule 501. 
See Pricing Schedule, Preface.
    \8\ For purposes of the Pricing Schedule, the term ``Market 
Maker'' will be utilized to describe the fees and rebates applicable 
to Registered Options Traders (as defined in Exchange Rule 1014(b)), 
Streaming Quote Traders (as defined in Exchange Rule 1014(b)(ii)(A)) 
and Remote Streaming Quote Traders (as defined in Exchange Rule 
1014(b)(ii)(B)). See Pricing Schedule, Preface.
    \9\ The term ``Customer'' applies to any transaction that is 
identified by a member or member organization for clearing in the 
Customer range at The Options Clearing Corporation (``OCC'') which 
is not for the account of a broker or dealer or for the account of a 
``Professional'' (as that term is defined in Rule 1000(b)(14)). See 
Pricing Schedule, Preface.
    \10\ See note 1 in Section II of the Pricing Schedule. Select 
symbols represent high volume Penny Pilot options listed on the 
Exchange.
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    The Exchange now proposes to increase the $0.37 per contract Select 
Firm Fee to raise revenue for the Exchange and help defray costs. As 
proposed, note 1 in Section II of the Pricing Schedule will read, 
``Firm electronic simple orders in AAPL, BAC, EEM, FB, FXI, IWM, QQQ, 
TWTR, VXX and XLF will be assessed $0.45 per contract.''

2. Statutory Basis

    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\11\ in general, and furthers the objectives of 
Sections 6(b)(4) and 6(b)(5) of the Act,\12\ in particular, in that it 
provides for the equitable allocation of reasonable dues, fees and 
other charges among members and issuers and other persons using any 
facility, and is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes its proposal to increase the Select Firm Fee 
from $0.37 to $0.45 per contract is reasonable because the proposed 
increase will help defray costs, and remains lower than the $0.48 per 
contract Penny Pilot Options Transaction Charge assessed to all other 
Firm electronic simple orders.\13\ Furthermore, the Exchange notes that 
the proposed fee remains competitive with the fees of another options 
market.\14\ Accordingly, the Exchange believes that the proposed $0.45 
per contract fee for Firm electronic simple orders in Select Symbols, 
which represent high volume Penny Pilot options listed on the Exchange, 
will continue to be competitive and attract order flow to the Exchange, 
to the benefit of all market participants.
---------------------------------------------------------------------------

    \13\ See Pricing Schedule, Section II.
    \14\ See, e.g., MIAX Options Fee Schedule at: https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_10112017.pdf.
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    In addition, the Exchange believes the proposed $0.45 per contract 
Select Firm Fee is equitable and not unfairly discriminatory because 
the Exchange will apply the same fee to all similarly situated members. 
For the reasons discussed above, the proposed fee provides an incentive 
for Firms to transact order flow on the Exchange, which order flow 
brings increased liquidity to the Exchange for the benefit of all 
Exchange participants. To the extent the purpose of the proposed Select 
Firm Fee is achieved, all market participants should benefit from the 
improved market liquidity.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. As discussed above, the 
Exchange believes that the proposed Select Firm Fee remains competitive 
and will continue to attract order flow to the Exchange. The Exchange 
notes that it operates in a highly competitive market in which market 
participants can readily favor competing venues if they deem fee levels 
at a particular venue to be excessive, or rebate opportunities 
available at other venues to be more favorable. In such an environment, 
the Exchange must continually adjust its fees to remain competitive 
with other exchanges. For the reasons described above, the Exchange 
believes that the proposed fee changes reflect this competitive 
environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or 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.\15\
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    \15\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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

[[Page 52342]]

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-Phlx-2017-91 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2017-91. 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. Persons submitting 
comments are cautioned that we do not redact or edit personal 
identifying information from comment submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-Phlx-2017-91 and should be 
submitted on or before December 4, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24439 Filed 11-9-17; 8:45 am]
BILLING CODE 8011-01-P



                                                    52340                      Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Notices

                                                       5. Applicants also request an                        purchases of Creation Units and the                     investment company involved; and (c)
                                                    exemption from section 22(d) of the Act                 redemption procedures for in-kind                       the proposed transaction is consistent
                                                    and rule 22c–1 under the Act as                         redemptions of Creation Units will be                   with the general purposes of the Act.
                                                    secondary market trading in shares will                 the same for all purchases and                            For the Commission, by the Division of
                                                    take place at negotiated prices, not at a               redemptions and Deposit Instruments                     Investment Management, under delegated
                                                    current offering price described in a                   and Redemption Instruments will be                      authority.
                                                    Fund’s prospectus, and not at a price                   valued in the same manner as those                      Eduardo A. Aleman,
                                                    based on NAV. Applicants state that (a)                 Portfolio Instruments currently held by                 Assistant Secretary.
                                                    secondary market trading in shares does                 the Funds. Applicants also seek relief
                                                                                                                                                                    [FR Doc. 2017–24487 Filed 11–9–17; 8:45 am]
                                                    not involve a Fund as a party and will                  from the prohibitions on affiliated
                                                                                                                                                                    BILLING CODE 8011–01–P
                                                    not result in dilution of an investment                 transactions in section 17(a) to permit a
                                                    in shares, and (b) to the extent different              Fund to sell its shares to and redeem its
                                                    prices exist during a given trading day,                shares from a Fund of Funds, and to
                                                                                                                                                                    SECURITIES AND EXCHANGE
                                                    or from day to day, such variances occur                engage in the accompanying in-kind
                                                                                                                                                                    COMMISSION
                                                    as a result of third-party market forces,               transactions with the Fund of Funds.2
                                                    such as supply and demand. Therefore,                   The purchase of Creation Units by a                     [Release No. 34–82019; File No. SR–Phlx–
                                                    applicants assert that secondary market                 Fund of Funds directly from a Fund will                 2017–91]
                                                    transactions in shares will not lead to                 be accomplished in accordance with the
                                                    discrimination or preferential treatment                policies of the Fund of Funds and will                  Self-Regulatory Organizations; Nasdaq
                                                    among purchasers. Finally, applicants                   be based on the NAVs of the Funds.                      PHLX LLC; Notice of Filing and
                                                    represent that share market prices will                    9. Applicants also request relief to                 Immediate Effectiveness of Proposed
                                                    be disciplined by arbitrage                             permit a Feeder Fund to acquire shares                  Rule Change To Amend Pricing
                                                    opportunities, which should prevent                     of another registered investment                        Schedule Section II, Entitled Multiply
                                                    shares from trading at a material                       company managed by the Adviser                          Listed Options Fees
                                                    discount or premium from NAV.                           having substantially the same                           November 6, 2017.
                                                       6. With respect to Funds that hold                   investment objectives as the Feeder                        Pursuant to Section 19(b)(1) of the
                                                    non-U.S. Portfolio Instruments and that                 Fund (‘‘Master Fund’’) beyond the                       Securities Exchange Act of 1934
                                                    effect creations and redemptions of                     limitations in section 12(d)(1)(A) and                  (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                    Creation Units in kind, applicants                      permit the Master Fund, and any                         notice is hereby given that on November
                                                    request relief from the requirement                     principal underwriter for the Master                    1, 2017, Nasdaq PHLX LLC (‘‘Phlx’’ or
                                                    imposed by section 22(e) in order to                    Fund, to sell shares of the Master Fund
                                                                                                                                                                    ‘‘Exchange’’) filed with the Securities
                                                    allow such Funds to pay redemption                      to the Feeder Fund beyond the
                                                                                                                                                                    and Exchange Commission
                                                    proceeds within fifteen calendar days                   limitations in section 12(d)(1)(B).
                                                                                                               10. Section 6(c) of the Act permits the              (‘‘Commission’’) the proposed rule
                                                    following the tender of Creation Units
                                                                                                            Commission to exempt any persons or                     change as described in Items I, II, and
                                                    for redemption. Applicants assert that
                                                                                                            transactions from any provision of the                  III, below, which Items have been
                                                    the requested relief would not be
                                                                                                            Act if such exemption is necessary or                   prepared by the Exchange. The
                                                    inconsistent with the spirit and intent of
                                                                                                            appropriate in the public interest and                  Commission is publishing this notice to
                                                    section 22(e) to prevent unreasonable,
                                                                                                            consistent with the protection of                       solicit comments on the proposed rule
                                                    undisclosed or unforeseen delays in the
                                                                                                            investors and the purposes fairly                       change from interested persons.
                                                    actual payment of redemption proceeds.
                                                       7. Applicants request an exemption to                intended by the policy and provisions of                I. Self-Regulatory Organization’s
                                                    permit Funds of Funds to acquire Fund                   the Act. Section 12(d)(1)(J) of the Act                 Statement of the Terms of Substance of
                                                    shares beyond the limits of section                     provides that the Commission may                        the Proposed Rule Change
                                                    12(d)(1)(A) of the Act; and the Funds,                  exempt any person, security, or
                                                                                                                                                                       The Exchange proposes to amend the
                                                    and any principal underwriter for the                   transaction, or any class or classes of
                                                                                                                                                                    Pricing Schedule, Section II, entitled
                                                    Funds, and/or any broker or dealer                      persons, securities, or transactions, from
                                                                                                                                                                    ‘‘Multiply Listed Options Fees,’’ 3 as
                                                    registered under the Exchange Act, to                   any provision of section 12(d)(1) if the
                                                                                                                                                                    further discussed below.
                                                    sell shares to Funds of Funds beyond                    exemption is consistent with the public                    The text of the proposed rule change
                                                    the limits of section 12(d)(1)(B) of the                interest and the protection of investors.               is available on the Exchange’s Web site
                                                    Act. The application’s terms and                        Section 17(b) of the Act authorizes the
                                                                                                                                                                    at http://nasdaqphlx.cchwallstreet
                                                    conditions are designed to, among other                 Commission to grant an order
                                                                                                                                                                    .com/, at the principal office of the
                                                    things, help prevent any potential (i)                  permitting a transaction otherwise
                                                                                                                                                                    Exchange, and at the Commission’s
                                                    undue influence over a Fund through                     prohibited by section 17(a) if it finds
                                                                                                                                                                    Public Reference Room.
                                                    control or voting power, or in                          that (a) the terms of the proposed
                                                    connection with certain services,                       transaction are fair and reasonable and                 II. Self-Regulatory Organization’s
                                                    transactions, and underwritings, (ii)                   do not involve overreaching on the part                 Statement of the Purpose of, and
                                                    excessive layering of fees, and (iii)                   of any person concerned; (b) the                        Statutory Basis for, the Proposed Rule
                                                    overly complex fund structures, which                   proposed transaction is consistent with                 Change
                                                    are the concerns underlying the limits                  the policies of each registered                            In its filing with the Commission, the
                                                    in sections 12(d)(1)(A) and (B) of the                                                                          Exchange included statements
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    Act.                                                       2 The requested relief would apply to direct sales
                                                                                                                                                                    concerning the purpose of and basis for
                                                       8. Applicants request an exemption                   of shares in Creation Units by a Fund to a Fund of
                                                                                                            Funds and redemptions of those shares. Applicants,      the proposed rule change and discussed
                                                    from sections 17(a)(1) and 17(a)(2) of the              moreover, are not seeking relief from section 17(a)     any comments it received on the
                                                    Act to permit persons that are affiliated               for, and the requested relief will not apply to,        proposed rule change. The text of these
                                                    persons, or second-tier affiliates, of the              transactions where a Fund could be deemed an
                                                    Funds, solely by virtue of certain                      Affiliated Person, or a Second-Tier Affiliate, of a
                                                                                                                                                                      1 15U.S.C. 78s(b)(1).
                                                                                                            Fund of Funds because an Adviser or an entity
                                                    ownership interests, to effectuate                      controlling, controlled by or under common control        2 17CFR 240.19b–4.
                                                    purchases and redemptions in-kind. The                  with an Adviser provides investment advisory              3 This includes options overlying equities, ETFs,

                                                    deposit procedures for in-kind                          services to that Fund of Funds.                         ETNs and indexes which are multiply listed.



                                               VerDate Sep<11>2014   19:39 Nov 09, 2017   Jkt 244001   PO 00000   Frm 00077   Fmt 4703   Sfmt 4703   E:\FR\FM\13NON1.SGM     13NON1


                                                                                 Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Notices                                                  52341

                                                    statements may be examined at the                          $0.48 per contract).10 The reduced fee                   transact order flow on the Exchange,
                                                    places specified in Item IV below. The                     for Firm electronic simple orders in                     which order flow brings increased
                                                    Exchange has prepared summaries, set                       Select Symbols (such reduced fee, the                    liquidity to the Exchange for the benefit
                                                    forth in sections A, B, and C below, of                    ‘‘Select Firm Fee’’) is to incentivize                   of all Exchange participants. To the
                                                    the most significant aspects of such                       Firms to transact more volume in Select                  extent the purpose of the proposed
                                                    statements.                                                Symbols, thereby attracting more order                   Select Firm Fee is achieved, all market
                                                                                                               flow to the Exchange.                                    participants should benefit from the
                                                    A. Self-Regulatory Organization’s                             The Exchange now proposes to                          improved market liquidity.
                                                    Statement of the Purpose of, and                           increase the $0.37 per contract Select
                                                    Statutory Basis for, the Proposed Rule                     Firm Fee to raise revenue for the                        B. Self-Regulatory Organization’s
                                                    Change                                                     Exchange and help defray costs. As                       Statement on Burden on Competition
                                                                                                               proposed, note 1 in Section II of the                      The Exchange does not believe that
                                                    1. Purpose
                                                                                                               Pricing Schedule will read, ‘‘Firm                       the proposed rule change will impose
                                                      The purpose of the proposed rule                         electronic simple orders in AAPL, BAC,                   any burden on competition not
                                                    change is to amend Section II of the                       EEM, FB, FXI, IWM, QQQ, TWTR, VXX                        necessary or appropriate in furtherance
                                                    Exchange’s Pricing Schedule to increase                    and XLF will be assessed $0.45 per                       of the purposes of the Act. As discussed
                                                    the assessment for select Firm 4                           contract.’’                                              above, the Exchange believes that the
                                                    electronic simple orders.                                                                                           proposed Select Firm Fee remains
                                                                                                               2. Statutory Basis                                       competitive and will continue to attract
                                                      As set forth in Section II of the Pricing                   The Exchange believes that its                        order flow to the Exchange. The
                                                    Schedule, the Exchange currently                           proposal is consistent with Section 6(b)                 Exchange notes that it operates in a
                                                    charges a Penny Pilot Options                              of the Act,11 in general, and furthers the               highly competitive market in which
                                                    Transaction Charge for electronic simple                   objectives of Sections 6(b)(4) and 6(b)(5)               market participants can readily favor
                                                    orders that is $0.48 per contract for                      of the Act,12 in particular, in that it                  competing venues if they deem fee
                                                    Professional,5 Broker-Dealer 6 and Firm                    provides for the equitable allocation of                 levels at a particular venue to be
                                                    orders, $0.22 per contract for Specialist 7                reasonable dues, fees and other charges                  excessive, or rebate opportunities
                                                    and Market Maker 8 orders, and $0.00                       among members and issuers and other                      available at other venues to be more
                                                    for Customer 9 orders. In addition, the                    persons using any facility, and is not                   favorable. In such an environment, the
                                                    Exchange charges a reduced Penny Pilot                     designed to permit unfair                                Exchange must continually adjust its
                                                    Options Transaction Charge for Firm                        discrimination between customers,                        fees to remain competitive with other
                                                    electronic simple orders in AAPL, BAC,                     issuers, brokers, or dealers.                            exchanges. For the reasons described
                                                    EEM, FB, FXI, IWM, QQQ, TWTR, VXX                             The Exchange believes its proposal to                 above, the Exchange believes that the
                                                    and XLF (hereinafter, ‘‘Select Symbols’’)                  increase the Select Firm Fee from $0.37                  proposed fee changes reflect this
                                                    that is $0.37 per contract (reduced from                   to $0.45 per contract is reasonable                      competitive environment.
                                                                                                               because the proposed increase will help
                                                       4 The term ‘‘Firm’’ applies to any transaction that     defray costs, and remains lower than the                 C. Self-Regulatory Organization’s
                                                    is identified by a member or member organization           $0.48 per contract Penny Pilot Options                   Statement on Comments on the
                                                    for clearing in the Firm range at OCC.
                                                                                                               Transaction Charge assessed to all other                 Proposed Rule Change Received From
                                                       5 The term ‘‘Professional’’ applies to transactions
                                                                                                               Firm electronic simple orders.13                         Members, Participants, or Others
                                                    for the accounts of Professionals, as defined in
                                                    Exchange Rule 1000(b)(14) means any person or              Furthermore, the Exchange notes that                       No written comments were either
                                                    entity that (i) is not a broker or dealer in securities,   the proposed fee remains competitive                     solicited or received.
                                                    and (ii) places more than 390 orders in listed             with the fees of another options
                                                    options per day on average during a calendar month                                                                  III. Date of Effectiveness of the
                                                    for its own beneficial account(s). See Pricing             market.14 Accordingly, the Exchange                      Proposed Rule Change and Timing for
                                                    Schedule, Preface.                                         believes that the proposed $0.45 per                     Commission Action
                                                       6 The term ‘‘Broker-Dealer’’ applies to any             contract fee for Firm electronic simple
                                                    transaction which is not subject to any of the other       orders in Select Symbols, which                             The foregoing rule change has become
                                                    transaction fees applicable within a particular                                                                     effective pursuant to Section
                                                    category. See Pricing Schedule, Preface.
                                                                                                               represent high volume Penny Pilot
                                                       7 The term ‘‘Specialist’’ applies to transactions for   options listed on the Exchange, will                     19(b)(3)(A)(ii) of the Act.15
                                                    the account of a Specialist (as defined in Exchange        continue to be competitive and attract                      At any time within 60 days of the
                                                    Rule 1020(a)). A Specialist is an Exchange member          order flow to the Exchange, to the                       filing of the proposed rule change, the
                                                    who is registered as an options specialist pursuant        benefit of all market participants.                      Commission summarily may
                                                    to Rule 1020(a). An options Specialist includes a                                                                   temporarily suspend such rule change if
                                                    Remote Specialist which is defined as an options              In addition, the Exchange believes the
                                                    specialist in one or more classes that does not have       proposed $0.45 per contract Select Firm                  it appears to the Commission that such
                                                    a physical presence on an Exchange floor and is            Fee is equitable and not unfairly                        action is: (i) Necessary or appropriate in
                                                    approved by the Exchange pursuant to Rule 501.             discriminatory because the Exchange                      the public interest; (ii) for the protection
                                                    See Pricing Schedule, Preface.                                                                                      of investors; or (iii) otherwise in
                                                       8 For purposes of the Pricing Schedule, the term
                                                                                                               will apply the same fee to all similarly
                                                                                                               situated members. For the reasons                        furtherance of the purposes of the Act.
                                                    ‘‘Market Maker’’ will be utilized to describe the fees
                                                    and rebates applicable to Registered Options               discussed above, the proposed fee                        If the Commission takes such action, the
                                                    Traders (as defined in Exchange Rule 1014(b)),             provides an incentive for Firms to                       Commission shall institute proceedings
                                                    Streaming Quote Traders (as defined in Exchange                                                                     to determine whether the proposed rule
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                    Rule 1014(b)(ii)(A)) and Remote Streaming Quote              10 See note 1 in Section II of the Pricing Schedule.   should be approved or disapproved.
                                                    Traders (as defined in Exchange Rule
                                                    1014(b)(ii)(B)). See Pricing Schedule, Preface.            Select symbols represent high volume Penny Pilot
                                                                                                               options listed on the Exchange.                          IV. Solicitation of Comments
                                                       9 The term ‘‘Customer’’ applies to any transaction
                                                                                                                 11 15 U.S.C. 78f(b).
                                                    that is identified by a member or member                                                                              Interested persons are invited to
                                                                                                                 12 15 U.S.C. 78f(b)(4) and (5).
                                                    organization for clearing in the Customer range at                                                                  submit written data, views, and
                                                                                                                 13 See Pricing Schedule, Section II.
                                                    The Options Clearing Corporation (‘‘OCC’’) which                                                                    arguments concerning the foregoing,
                                                    is not for the account of a broker or dealer or for          14 See, e.g., MIAX Options Fee Schedule at:

                                                    the account of a ‘‘Professional’’ (as that term is         https://www.miaxoptions.com/sites/default/files/         including whether the proposed rule
                                                    defined in Rule 1000(b)(14)). See Pricing Schedule,        fee_schedule-files/MIAX_Options_Fee_Schedule_
                                                    Preface.                                                   10112017.pdf.                                             15 15   U.S.C. 78s(b)(3)(A)(ii).



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                                                    52342                            Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Notices

                                                    change is consistent with the Act.                                  submissions should refer to File                                     II. Self-Regulatory Organization’s
                                                    Comments may be submitted by any of                                 Number SR–Phlx–2017–91 and should                                    Statement of the Purpose of, and
                                                    the following methods:                                              be submitted on or before December 4,                                Statutory Basis for, the Proposed Rule
                                                                                                                        2017.                                                                Change
                                                    Electronic Comments
                                                                                                                          For the Commission, by the Division of                               In its filing with the Commission, the
                                                      • Use the Commission’s Internet                                   Trading and Markets, pursuant to delegated
                                                    comment form (http://www.sec.gov/                                                                                                        Exchange included statements
                                                                                                                        authority.16                                                         concerning the purpose of and basis for
                                                    rules/sro.shtml); or                                                Eduardo A. Aleman,
                                                      • Send an email to rule-comments@                                                                                                      the proposed rule change and discussed
                                                                                                                        Assistant Secretary.                                                 any comments it received on the
                                                    sec.gov. Please include File Number SR–
                                                    Phlx–2017–91 on the subject line.                                   [FR Doc. 2017–24439 Filed 11–9–17; 8:45 am]                          proposed rule change. The text of these
                                                                                                                        BILLING CODE 8011–01–P                                               statements may be examined at the
                                                    Paper Comments                                                                                                                           places specified in Item IV below. The
                                                       • Send paper comments in triplicate                                                                                                   Exchange has prepared summaries, set
                                                    to Brent J. Fields, Secretary, Securities                           SECURITIES AND EXCHANGE                                              forth in sections A, B, and C below, of
                                                    and Exchange Commission, 100 F Street                               COMMISSION                                                           the most significant aspects of such
                                                    NE., Washington, DC 20549–1090.                                                                                                          statements.
                                                    All submissions should refer to File                                [Release No. 34–82017; File No. SR–                                  A. Self-Regulatory Organization’s
                                                    Number SR–Phlx–2017–91. This file                                   PEARL–2017–36]
                                                                                                                                                                                             Statement of the Purpose of, and
                                                    number should be included on the                                    Self-Regulatory Organizations; MIAX                                  Statutory Basis for, the Proposed Rule
                                                    subject line if email is used. To help the                          PEARL, LLC; Notice of Filing and                                     Change
                                                    Commission process and review your                                  Immediate Effectiveness of a Proposed
                                                    comments more efficiently, please use                                                                                                    1. Purpose
                                                                                                                        Rule Change To Amend the MIAX
                                                    only one method. The Commission will                                                                                                        The Exchange proposes to make a
                                                                                                                        PEARL Fee Schedule
                                                    post all comments on the Commission’s                                                                                                    number of non-substantive, technical
                                                    Internet Web site (http://www.sec.gov/                              November 6, 2017.                                                    corrections to its routing fee table set
                                                    rules/sro.shtml). Copies of the                                                                                                          forth in Section 1(b) of the Fee Schedule
                                                                                                                           Pursuant to Section 19(b)(1) of the
                                                    submission, all subsequent                                                                                                               to reflect recent corporate name changes
                                                                                                                        Securities Exchange Act of 1934
                                                    amendments, all written statements                                                                                                       to some of the options exchanges listed
                                                                                                                        (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                    with respect to the proposed rule                                                                                                        in the table.
                                                                                                                        notice is hereby given that on November
                                                    change that are filed with the                                                                                                              As a result of recent exchange
                                                                                                                        2, 2017, MIAX PEARL, LLC (‘‘MIAX
                                                    Commission, and all written                                                                                                              consolidation and corporate re-
                                                                                                                        PEARL’’ or ‘‘Exchange’’) filed with the
                                                    communications relating to the                                                                                                           branding, some options exchanges have
                                                                                                                        Securities and Exchange Commission
                                                    proposed rule change between the                                                                                                         changed their names. The names of all
                                                                                                                        (‘‘Commission’’) a proposed rule change
                                                    Commission and any person, other than                                                                                                    options exchanges are set forth in the
                                                                                                                        as described in Items I, II, and III below,
                                                    those that may be withheld from the                                                                                                      Exchange’s routing fee table set forth in
                                                                                                                        which Items have been prepared by the
                                                    public in accordance with the                                                                                                            Section 1(b) of the Fee Schedule, which
                                                                                                                        Exchange. The Commission is
                                                    provisions of 5 U.S.C. 552, will be                                                                                                      sets forth the fees for customer orders
                                                                                                                        publishing this notice to solicit
                                                    available for Web site viewing and                                                                                                       that are routed to those options
                                                                                                                        comments on the proposed rule change
                                                    printing in the Commission’s Public                                                                                                      exchanges for execution. Accordingly,
                                                                                                                        from interested persons.
                                                    Reference Room, 100 F Street NE.,                                                                                                        the Exchange proposes to update its
                                                    Washington, DC 20549, on official                                   I. Self-Regulatory Organization’s                                    routing fee table set forth in Section 1(b)
                                                    business days between the hours of                                  Statement of the Terms of Substance of                               of the Fee Schedule to reflect those
                                                    10:00 a.m. and 3:00 p.m. Copies of the                              the Proposed Rule Change                                             recent exchange name changes. No other
                                                    filing also will be available for                                                                                                        changes are proposed to the routing fee
                                                    inspection and copying at the principal                                The Exchange is filing a proposal to                              table. Accordingly, as amended, the
                                                    office of the Exchange. All comments                                amend the MIAX PEARL Fee Schedule                                    routing fee table shall be as follows:
                                                    received will be posted without change.                             (the ‘‘Fee Schedule’’).                                                 (b) Fees and Rebates for Customer
                                                    Persons submitting comments are                                        The text of the proposed rule change                              Orders Routed to Another Options
                                                    cautioned that we do not redact or edit                             is available on the Exchange’s Web site                              Exchange MIAX PEARL will assess a
                                                    personal identifying information from                               at http://www.miaxoptions.com/rule-                                  Routing Fee to market participants on
                                                    comment submissions. You should                                     filings/pearl at MIAX PEARL’s principal                              all orders routed to and executed on an
                                                    submit only information that you wish                               office, and at the Commission’s Public                               away market as set forth in the table
                                                    to make available publicly. All                                     Reference Room.                                                      below.

                                                                                                                                     Description                                                                                          Fees

                                                    Routed, Priority Customer, Penny Pilot, to: NYSE American, BOX, Cboe, Cboe EDGX Options , Nasdaq MRX, MIAX OPTIONS,
                                                      Nasdaq PHLX (except SPY), Nasdaq BX Options ..........................................................................................................................                 $0.15
                                                    Routed, Priority Customer, Penny Pilot, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, Nasdaq GEMX, Nasdaq ISE,
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                      NOM, Nasdaq PHLX (SPY only) .....................................................................................................................................................          0.65
                                                    Routed, Priority Customer, Non-Penny Pilot, to: NYSE American, BOX, Cboe, Cboe EDGX Options, Nasdaq ISE, Nasdaq MRX,
                                                      MIAX OPTIONS, Nasdaq PHLX, Nasdaq BX Options ....................................................................................................................                          0.15
                                                    Routed, Priority Customer, Non-Penny Pilot, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, Nasdaq GEMX, NOM .........                                                                     0.97
                                                    Routed, Public Customer that is not a Priority Customer, Penny Pilot, to: NYSE American, NYSE Arca Options, Cboe BZX Op-
                                                      tions, BOX, Cboe, Cboe C2, Cboe EDGX Options, Nasdaq GEMX, Nasdaq ISE, Nasdaq MRX, MIAX OPTIONS, NOM,
                                                      Nasdaq PHLX, Nasdaq BX Options ................................................................................................................................................            0.65

                                                      16 17   CFR 200.30–3(a)(12).                                         1 15   U.S.C. 78s(b)(1).                                             2 17   CFR 240.19b–4.



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Document Created: 2017-11-10 01:18:24
Document Modified: 2017-11-10 01:18:24
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 52340 

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