83 FR 10935 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 49 (March 13, 2018)
Federal Register Volume 83, Issue 49 (March 13, 2018)
| Page Range | 10935-10936 | |
| FR Document | 2018-04964 |
[Federal Register Volume 83, Number 49 (Tuesday, March 13, 2018)] [Notices] [Pages 10935-10936] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-04964] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82823; File No. SR-MIAX-2018-09] Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule March 7, 2018. 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 March 1, 2018, Miami International Securities Exchange LLC (``MIAX Options'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') a proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend the MIAX Options Fee Schedule (the ``Fee Schedule''). The text of the proposed rule change is available on the Exchange's website at http://www.miaxoptions.com/rule-filings, at MIAX's principal office, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fee Schedule to introduce a cap on the amount of Member Participant Identifier (``MPID'') \3\ fees that are assessed by the Exchange on an Electronic Exchange Member (``EEM'') \4\ per month. The Exchange is not proposing any new fees; the Exchange is simply proposing to introduce a monthly cap on certain existing fees. --------------------------------------------------------------------------- \3\ An MPID is a code used in the MIAX Options system to identify the participant to MIAX Options and to the participant's Clearing Member respecting trades executed on MIAX Options. Participants may use more than one MPID. \4\ The term ``Electronic Exchange Member'' or ``EEM'' means the holder of a Trading Permit who is a Member representing as agent Public Customer Orders or Non-Customer Orders on the Exchange and those non-Market Maker Members conducting proprietary trading. See Exchange Rule 100. --------------------------------------------------------------------------- The amount of MPID fees assessed by the Exchange on a particular EEM in a particular month is based on the number of MPIDs assigned to the particular EEM in the System \5\ in a given month, for each month the Member \6\ is credentialed to use such MPID in the production environment.\7\ EEMs request MPID assignments from the Exchange. EEMs are assessed a monthly MPID fee of $200.00 for the first MPID assigned, $100.00 each for the second through fifth MPID assigned, and $50.00 each for the sixth MPID and any additional MPIDs assigned. The Exchange assesses MPID fees in order to cover the administrative costs it incurs in assigning and managing these identifiers for each EEM. --------------------------------------------------------------------------- \5\ The term ``System'' means the automated trading system used by the Exchange for the trading of securities. See Exchange Rule 100. \6\ 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. \7\ See Securities Exchange Act Release No. 68645 (January 14, 2013), 78 FR 4175 (January 18, 2013) (SR-MIAX-2012-05). --------------------------------------------------------------------------- The Exchange now proposes to cap MPID fees at $1,000.00 per month per EEM, regardless the actual number of MPIDs assigned to such EEM. As a practical matter, using the current fee table in Section 5e) of the Fee Schedule, the 14th MPID assigned to an EEM and each MPID thereafter would not incur an additional MPID fee, as the EEM would reach the cap of $1,000.00 after assignment of the 13th MPID for that month. The Exchange believes that establishing a monthly cap on MPID fees will give Members greater flexibility to accommodate their varying business models and customer configurations, as many Members often request multiple MPIDs from the Exchange, and the Exchange does not want MPID costs to serve as a barrier for requesting multiple MPIDs. The Exchange notes that several other [[Page 10936]] exchanges offer fee caps on certain non-transaction fees as well.\8\ --------------------------------------------------------------------------- \8\ See the Nasdaq Phlx LLC Pricing Schedule, Section VI(D), Remote Specialist Fee (fee cap of $4,500 per month). See also the Nasdaq ISE, LLC Schedule of Fees, Section V(D), INET Port Fees (fee cap of $4,000 per month for OTTO Port Fee). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) \9\ of the Act in general, and furthers the objectives of Section 6(b)(4) \10\ of the Act, in that it is designed to provide for an equitable allocation of reasonable dues, fees and other charges among Exchange Members and issuers and other persons using its facilities, because it applies equally to all Members and any persons using the facilities or services of the Exchange. The Exchange also believes that the proposal furthers the objectives of Section 6(b)(5) \11\ of the Act in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest, and it is not designed to permit unfair discrimination among customers, brokers, or dealers. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(4). \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed amendment to establish a fee cap on MPID fees is reasonable, equitable, and not unfairly discriminatory. The proposal to cap the total amount of MPID fees that can be assessed upon an EEM to a maximum of $1,000.00 per month is designed to promote just and equitable principles of trade by encouraging Members to configure their MPID assignments with greater granularity and for MPID costs to not serve as a barrier for requesting multiple MPIDs. Because any EEM is eligible to take advantage of the fee cap, the Exchange believes the fee cap is fair and equitable and not unreasonably discriminatory because it applies equally to all Members, and access to such fee cap is offered on terms that are not unfairly discriminatory. 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. The Exchange believes that the proposed rule change would promote transparency by providing Members with more flexibility to configure their MPIDs with greater granularity by offering a reasonably designed fee structure and fee cap. Additionally, respecting intra-market competition, the fee cap on MPID assignments is available to all Members, thus providing all Members with an even playing field with respect to amount of fees that can be assessed by the Exchange for MPID assignments. 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. In such an environment, the Exchange must continually adjust its fees and fee waivers to remain competitive with other exchanges and to attract order flow to the Exchange. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act,\12\ and Rule 19b-4(f)(2) \13\ thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A)(ii). \13\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-MIAX-2018-09 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-2018-09. 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 website (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 website 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-MIAX-2018-09 and should be submitted on or before April 3, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-04964 Filed 3-12-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 49 / Tuesday, March 13, 2018 / Notices 10935
Exchange also proposed to list and trade SECURITIES AND EXCHANGE (‘‘MPID’’) 3 fees that are assessed by the
shares of Royce Pennsylvania ETF, COMMISSION Exchange on an Electronic Exchange
Royce Premier ETF, and Royce Total Member (‘‘EEM’’) 4 per month. The
[Release No. 34–82823; File No. SR–MIAX–
Return ETF under proposed NYSE Arca 2018–09]
Exchange is not proposing any new fees;
Rule 8.900–E. The proposed rule change the Exchange is simply proposing to
was published for comment in the Self-Regulatory Organizations; Miami introduce a monthly cap on certain
Federal Register on January 26, 2018.3 International Securities Exchange, existing fees.
The Commission has received five LLC; Notice of Filing and Immediate The amount of MPID fees assessed by
comment letters on the proposed rule Effectiveness of a Proposed Rule the Exchange on a particular EEM in a
change.4 Change To Amend Its Fee Schedule particular month is based on the
number of MPIDs assigned to the
Section 19(b)(2) of the Act 5 provides March 7, 2018. particular EEM in the System 5 in a
that, within 45 days of the publication Pursuant to the provisions of Section given month, for each month the
of notice of the filing of a proposed rule 19(b)(1) of the Securities Exchange Act Member 6 is credentialed to use such
change, or within such longer period up of 1934 (‘‘Act’’),1 and Rule 19b–4 MPID in the production environment.7
to 90 days as the Commission may thereunder,2 notice is hereby given that EEMs request MPID assignments from
designate if it finds such longer period on March 1, 2018, Miami International the Exchange. EEMs are assessed a
to be appropriate and publishes its Securities Exchange LLC (‘‘MIAX monthly MPID fee of $200.00 for the
reasons for so finding or as to which the Options’’ or ‘‘Exchange’’) filed with the first MPID assigned, $100.00 each for
self-regulatory organization consents, Securities and Exchange Commission the second through fifth MPID assigned,
the Commission shall either approve the (‘‘Commission’’) a proposed rule change and $50.00 each for the sixth MPID and
proposed rule change, disapprove the as described in Items I, II, and III below, any additional MPIDs assigned. The
proposed rule change, or institute which Items have been prepared by the Exchange assesses MPID fees in order to
proceedings to determine whether the Exchange. The Commission is cover the administrative costs it incurs
proposed rule change should be publishing this notice to solicit in assigning and managing these
comments on the proposed rule change identifiers for each EEM.
disapproved. The 45th day after
from interested persons. The Exchange now proposes to cap
publication of the notice for this
proposed rule change is March 12, 2018. I. Self-Regulatory Organization’s MPID fees at $1,000.00 per month per
The Commission is extending this 45- Statement of the Terms of Substance of EEM, regardless the actual number of
day time period. the Proposed Rule Change MPIDs assigned to such EEM. As a
The Exchange is filing a proposal to practical matter, using the current fee
The Commission finds that it is
amend the MIAX Options Fee Schedule table in Section 5e) of the Fee Schedule,
appropriate to designate a longer period the 14th MPID assigned to an EEM and
within which to take action on the (the ‘‘Fee Schedule’’).
The text of the proposed rule change each MPID thereafter would not incur
proposed rule change so that it has an additional MPID fee, as the EEM
sufficient time to consider the proposed is available on the Exchange’s website at
http://www.miaxoptions.com/rule- would reach the cap of $1,000.00 after
rule change and the comment letters. assignment of the 13th MPID for that
Accordingly, the Commission, pursuant filings, at MIAX’s principal office, and
at the Commission’s Public Reference month.
to Section 19(b)(2) of the Act,6 The Exchange believes that
Room.
designates April 26, 2018, as the date by establishing a monthly cap on MPID
which the Commission shall either II. Self-Regulatory Organization’s fees will give Members greater
approve or disapprove, or institute Statement of the Purpose of, and flexibility to accommodate their varying
proceedings to determine whether to Statutory Basis for, the Proposed Rule business models and customer
disapprove, the proposed rule change Change configurations, as many Members often
(File Number SR–NYSEArca–2018–04). In its filing with the Commission, the request multiple MPIDs from the
For the Commission, by the Division of Exchange included statements Exchange, and the Exchange does not
Trading and Markets, pursuant to delegated concerning the purpose of and basis for want MPID costs to serve as a barrier for
authority.7 the proposed rule change and discussed requesting multiple MPIDs. The
Eduardo A. Aleman, any comments it received on the Exchange notes that several other
proposed rule change. The text of these
Assistant Secretary.
statements may be examined at the 3 An MPID is a code used in the MIAX Options
[FR Doc. 2018–04965 Filed 3–12–18; 8:45 am] places specified in Item IV below. The system to identify the participant to MIAX Options
and to the participant’s Clearing Member respecting
BILLING CODE 8011–01–P Exchange has prepared summaries, set trades executed on MIAX Options. Participants may
forth in sections A, B, and C below, of use more than one MPID.
3 See Securities Exchange Act Release No. 82549
the most significant aspects of such 4 The term ‘‘Electronic Exchange Member’’ or
(January 19, 2018), 83 FR 3846. statements. ‘‘EEM’’ means the holder of a Trading Permit who
4 See letters from: (1) Terence W. Norman, is a Member representing as agent Public Customer
Founder, Blue Tractor Group, LLC, dated February A. Self-Regulatory Organization’s Orders or Non-Customer Orders on the Exchange
6, 2018; (2) Simon P. Goulet, Co-Founder, Blue Statement of the Purpose of, and and those non-Market Maker Members conducting
Tractor Group, LLC, dated February 13, 2018; (3) proprietary trading. See Exchange Rule 100.
Todd J. Broms, Chief Executive Officer, Broms & Statutory Basis for, the Proposed Rule 5 The term ‘‘System’’ means the automated
Company LLC, dated February 16, 2018; (4) Kevin Change trading system used by the Exchange for the trading
S. Haeberle, Associate Professor of Law, William & of securities. See Exchange Rule 100.
amozie on DSK30RV082PROD with NOTICES
Mary Law School, dated February 16, 2018; and (5) 1. Purpose 6 The term ‘‘Member’’ means an individual or
Gary L. Gastineau, President, ETF Consultants.com, The Exchange proposes to amend its organization approved to exercise the trading rights
Inc., dated March 6, 2018. The comment letters are associated with a Trading Permit. Members are
available at https://www.sec.gov/comments/sr- Fee Schedule to introduce a cap on the
deemed ‘‘members’’ under the Exchange Act. See
nysearca-2018-04/nysearca201804.htm. amount of Member Participant Identifier Exchange Rule 100.
5 15 U.S.C. 78s(b)(2). 7 See Securities Exchange Act Release No. 68645
6 Id. 1 15 U.S.C. 78s(b)(1). (January 14, 2013), 78 FR 4175 (January 18, 2013)
7 17 CFR 200.30–3(a)(31). 2 17 CFR 240.19b–4. (SR–MIAX–2012–05).
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![10936 Federal Register / Vol. 83, No. 49 / Tuesday, March 13, 2018 / Notices
exchanges offer fee caps on certain non- necessary or appropriate in furtherance Electronic Comments
transaction fees as well.8 of the purposes of the Act. The
Exchange believes that the proposed • Use the Commission’s internet
2. Statutory Basis comment form (http://www.sec.gov/
rule change would promote
The Exchange believes that its transparency by providing Members rules/sro.shtml); or
proposal to amend its Fee Schedule is with more flexibility to configure their • Send an email to rule-comments@
consistent with Section 6(b) 9 of the Act MPIDs with greater granularity by sec.gov. Please include File Number SR–
in general, and furthers the objectives of offering a reasonably designed fee MIAX–2018–09 on the subject line.
Section 6(b)(4) 10 of the Act, in that it is structure and fee cap. Additionally,
designed to provide for an equitable Paper Comments
respecting intra-market competition, the
allocation of reasonable dues, fees and
fee cap on MPID assignments is • Send paper comments in triplicate
other charges among Exchange Members
available to all Members, thus providing to Secretary, Securities and Exchange
and issuers and other persons using its
facilities, because it applies equally to all Members with an even playing field Commission, 100 F Street NE,
all Members and any persons using the with respect to amount of fees that can Washington, DC 20549–1090.
facilities or services of the Exchange. be assessed by the Exchange for MPID
The Exchange also believes that the assignments. The Exchange notes that it All submissions should refer to File
proposal furthers the objectives of operates in a highly competitive market Number SR–MIAX–2018–09. This file
Section 6(b)(5) 11 of the Act in in which market participants can number should be included on the
particular, in that it is designed to readily favor competing venues if they subject line if email is used. To help the
prevent fraudulent and manipulative deem fee levels at a particular venue to Commission process and review your
acts and practices, to promote just and be excessive. In such an environment, comments more efficiently, please use
equitable principles of trade, to foster the Exchange must continually adjust its only one method. The Commission will
cooperation and coordination with fees and fee waivers to remain post all comments on the Commission’s
persons engaged in facilitating competitive with other exchanges and to internet website (http://www.sec.gov/
transactions in securities, to remove attract order flow to the Exchange. rules/sro.shtml). Copies of the
impediments to and perfect the submission, all subsequent
C. Self-Regulatory Organization’s
mechanisms of a free and open market amendments, all written statements
and a national market system and, in Statement on Comments on the
with respect to the proposed rule
general, to protect investors and the Proposed Rule Change Received From
change that are filed with the
public interest, and it is not designed to Members, Participants, or Others
Commission, and all written
permit unfair discrimination among Written comments were neither communications relating to the
customers, brokers, or dealers. solicited nor received. proposed rule change between the
The Exchange believes that the Commission and any person, other than
proposed amendment to establish a fee III. Date of Effectiveness of the those that may be withheld from the
cap on MPID fees is reasonable, Proposed Rule Change and Timing for public in accordance with the
equitable, and not unfairly Commission Action provisions of 5 U.S.C. 552, will be
discriminatory. The proposal to cap the
The foregoing rule change has become available for website viewing and
total amount of MPID fees that can be
effective pursuant to Section printing in the Commission’s Public
assessed upon an EEM to a maximum of
$1,000.00 per month is designed to 19(b)(3)(A)(ii) of the Act,12 and Rule Reference Room, 100 F Street NE,
promote just and equitable principles of 19b–4(f)(2) 13 thereunder. At any time Washington, DC 20549, on official
trade by encouraging Members to within 60 days of the filing of the business days between the hours of
configure their MPID assignments with proposed rule change, the Commission 10:00 a.m. and 3:00 p.m. Copies of the
greater granularity and for MPID costs to summarily may temporarily suspend filing also will be available for
not serve as a barrier for requesting such rule change if it appears to the inspection and copying at the principal
multiple MPIDs. Because any EEM is Commission that such action is office of the Exchange. All comments
eligible to take advantage of the fee cap, necessary or appropriate in the public received will be posted without change.
the Exchange believes the fee cap is fair interest, for the protection of investors, Persons submitting comments are
and equitable and not unreasonably or otherwise in furtherance of the cautioned that we do not redact or edit
discriminatory because it applies purposes of the Act. If the Commission personal identifying information from
equally to all Members, and access to takes such action, the Commission shall comment submissions. You should
such fee cap is offered on terms that are institute proceedings to determine submit only information that you wish
not unfairly discriminatory. whether the proposed rule should be to make available publicly. All
B. Self-Regulatory Organization’s approved or disapproved. submissions should refer to File
Statement on Burden on Competition Number SR–MIAX–2018–09 and should
IV. Solicitation of Comments be submitted on or before April 3, 2018.
The Exchange does not believe that
the proposed rule change will impose Interested persons are invited to For the Commission, by the Division of
any burden on competition not submit written data, views, and Trading and Markets, pursuant to delegated
arguments concerning the foregoing, authority.14
amozie on DSK30RV082PROD with NOTICES
8 See the Nasdaq Phlx LLC Pricing Schedule, including whether the proposed rule Eduardo A. Aleman,
Section VI(D), Remote Specialist Fee (fee cap of change is consistent with the Act. Assistant Secretary.
$4,500 per month). See also the Nasdaq ISE, LLC
Comments may be submitted by any of [FR Doc. 2018–04964 Filed 3–12–18; 8:45 am]
Schedule of Fees, Section V(D), INET Port Fees (fee
cap of $4,000 per month for OTTO Port Fee). the following methods: BILLING CODE 8011–01–P
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4). 12 15 U.S.C. 78s(b)(3)(A)(ii).
11 15 U.S.C. 78f(b)(5). 13 17 14 17 CFR 200.30–3(a)(12).
CFR 240.19b–4(f)(2).
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Document Created: 2018-03-13 01:57:02
Document Modified: 2018-03-13 01:57:02
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 10935 |
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