83 FR 12836 - Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 57 (March 23, 2018)
Federal Register Volume 83, Issue 57 (March 23, 2018)
| Page Range | 12836-12838 | |
| FR Document | 2018-05901 |
[Federal Register Volume 83, Number 57 (Friday, March 23, 2018)] [Notices] [Pages 12836-12838] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-05901] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82900; File No. SR-PEARL-2018-09] Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule March 19, 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 8, 2018, MIAX PEARL, LLC (``MIAX PEARL'' 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 PEARL Fee Schedule (the ``Fee Schedule''). The Exchange initially filed the proposal on February 28, 2018 (SR-PEARL-2018-06). That filing was withdrawn and replaced with the current filing (SR-PEARL-2018-09). The text of the proposed rule change is available on the Exchange's website at http://www.miaxoptions.com/rule-filings/pearl at MIAX PEARL'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 the Add/Remove Tiered Rebates/Fees set forth in Section (1)(a) of the Fee Schedule to decrease the ``Taker'' fees in Tiers 4, 5 and 6 assessable to all orders submitted by a Market Maker \3\ for options in Penny classes (as defined below). --------------------------------------------------------------------------- \3\ ``Market Maker'' means a Member registered with the Exchange for the purpose of making markets in options contracts traded on the Exchange and that is vested with the rights and responsibilities specified in Chapter VI of Exchange Rules. See the Definitions Section of the Fee Schedule and Exchange Rule 100. --------------------------------------------------------------------------- The Exchange currently assesses tiered transaction rebates and fees to all market participants which are based upon the total monthly volume executed by the Member \4\ on MIAX PEARL in the relevant, respective origin type (not including Excluded Contracts \5\) expressed as a percentage of TCV.\6\ In addition, the per contract [[Page 12837]] transaction rebates and fees are applied retroactively to all eligible volume for that origin type once the respective threshold tier (``Tier'') has been reached by the Member. The Exchange aggregates the volume of Members and their Affiliates.\7\ Members that place resting liquidity, i.e., orders resting on the book of the MIAX PEARL System,\8\ are paid the specified ``maker'' rebate (each a ``Maker''), and Members that execute against resting liquidity are assessed the specified ``taker'' fee (each a ``Taker''). For opening transactions and ABBO uncrossing transactions, per contract transaction rebates and fees are waived for all market participants. Finally, Members are generally assessed lower transaction fees and receive lower rebates for order executions in standard option classes in the Penny Pilot Program \9\ (``Penny classes'') than for order executions in standard option classes which are not in the Penny Pilot Program (``Non-Penny classes''), where Members are assessed higher transaction fees and receive higher rebates. --------------------------------------------------------------------------- \4\ ``Member'' means an individual or organization that is registered with the Exchange pursuant to Chapter II of the Exchange Rules for purposes of trading on the Exchange as an ``Electronic Exchange Member'' or ``Market Maker.'' Members are deemed ``members'' under the Exchange Act. See the Definitions Section of the Fee Schedule and Exchange Rule 100. \5\ ``Excluded Contracts'' means any contracts routed to an away market for execution. See the Definitions Section of the Fee Schedule. \6\ ``TCV'' means total consolidated volume calculated as the total national volume in those classes listed on MIAX PEARL for the month for which the fees apply, excluding consolidated volume executed during the period time in which the Exchange experiences an ``Exchange System Disruption'' (solely in the option classes of the affected Matching Engine (as defined below)). The term Exchange System Disruption, which is defined in the Definitions section of the Fee Schedule, means an outage of a Matching Engine or collective Matching Engines for a period of two consecutive hours or more, during trading hours. The term Matching Engine, which is also defined in the Definitions section of the Fee Schedule, is a part of the MIAX PEARL electronic system that processes options orders and trades on a symbol-by-symbol basis. Some Matching Engines will process option classes with multiple root symbols, and other Matching Engines may be dedicated to one single option root symbol (for example, options on SPY may be processed by one single Matching Engine that is dedicated only to SPY). A particular root symbol may only be assigned to a single designated Matching Engine. A particular root symbol may not be assigned to multiple Matching Engines. The Exchange notes that the term ``Exchange System Disruption'' and its meaning have no applicability outside of the Fee Schedule, as it is used solely for purposes of calculating volume for the threshold tiers in the Fee Schedule. See the Definitions Section of the Fee Schedule. \7\ ``Affiliate'' means (i) an affiliate of a Member of at least 75% common ownership between the firms as reflected on each firm's Form BD, Schedule A, or (ii) the Appointed Market Maker of an Appointed EEM (or, conversely, the Appointed EEM of an Appointed Market Maker). An ``Appointed Market Maker'' is a MIAX PEARL Market Maker (who does not otherwise have a corporate affiliation based upon common ownership with an EEM) that has been appointed by an EEM and an ``Appointed EEM'' is an EEM (who does not otherwise have a corporate affiliation based upon common ownership with a MIAX PEARL Market Maker) that has been appointed by a MIAX PEARL Market Maker, pursuant to the process described in the Fee Schedule. See the Definitions Section of the Fee Schedule. \8\ The term ``System'' means the automated trading system used by the Exchange for the trading of securities. See Exchange Rule 100. \9\ See Securities Exchange Act Release No. 79778 (January 12, 2017), 82 FR 6662 (January 19, 2017) (SR-PEARL-2016-01). --------------------------------------------------------------------------- Transaction rebates and fees applicable to orders submitted by a Market Maker are currently assessed according to the following table: -------------------------------------------------------------------------------------------------------------------------------------------------------- Per contract rebates/fees for Per contract rebates/fees for penny classes non-penny classes Origin Tier Volume criteria --------------------------------------------------------------- Maker Taker Maker Taker -------------------------------------------------------------------------------------------------------------------------------------------------------- All MIAX PEARL Market Makers.............. 1 0.00%-0.05%................. ($0.25) $0.50 ($0.30) $1.05 2 Above 0.05%-0.25%........... (0.40) 0.50 (0.30) 1.05 3 Above 0.25%-0.50%........... (0.40) 0.48 (0.60) 1.03 4 Above 0.50%-0.75% or Above (0.47) 0.47 (0.65) 1.02 2.0% in SPY. 5 Above 0.75%-1.00%........... (0.48) 0.47 (0.70) 1.02 6 Above 1.00%................. (0.48) 0.47 (0.85) 1.02 -------------------------------------------------------------------------------------------------------------------------------------------------------- The Exchange proposes to decrease the Taker fees for Market Maker orders for options in Penny classes in Tiers 4, 5 and 6 from $0.47 to $0.43. The purpose of decreasing the Taker fees for Market Maker orders for options in Penny classes to $0.43 in those Tiers is for business and competitive reasons to encourage Market Makers to execute greater volume on the Exchange, by offering lower rates in the higher Tiers. The Exchange believes that reducing the Taker fees for Market Maker orders for options in Penny classes to $0.43 per contract fee in those Tiers will incentivize Market Makers to execute more volume on the Exchange due to favorable pricing for this liquidity type in the higher Tiers. There are no other changes proposed to the fee table. 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act \10\ in general, and furthers the objectives of Section 6(b)(4) of the Act,\11\ in that it is an equitable allocation of reasonable dues, fees and other charges among Exchange members and issuers and other persons using its facilities, and 6(b)(5) of the Act,\12\ 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(4). \12\ 15 U.S.C. 78f(b)(1) and (b)(5). --------------------------------------------------------------------------- The proposed Taker fee decreases in Penny classes applicable to orders submitted by a Market Maker are reasonable, equitable and not unfairly discriminatory because all Market Maker orders are subject to the same Taker fees and access to the Exchange is offered on terms that are not unfairly discriminatory. The Exchange initially set its Taker fees at the various volume levels based upon business determinations and an analysis of current Taker fees and volume levels at other exchanges. For competitive and business reasons, the Exchange believes that lower Taker fees assessable to Market Maker transactions in Penny classes in Tiers 4, 5 and 6 will encourage Market Makers to execute more volume in Penny classes in order to achieve the higher Tiers since they will be assessed reduced fees in Tiers 4, 5 and 6 for orders in options in Penny classes which remove liquidity. The Exchange believes for these reasons that offering the reduced Taker fees for Market Maker transactions in Penny classes in Tiers 4, 5 and 6 is equitable, reasonable and not unfairly discriminatory, and thus consistent with the Act. The Exchange believes that its proposal to reduce Taker fees assessable to transactions in options in Penny classes and not to reduce Taker fees for transactions in options in Non-Penny classes is consistent with other options markets that also assess different transaction fees for options in Non-Penny classes as compared to Penny classes. The Exchange believes that establishing different pricing for options in Non-Penny classes and Penny classes is reasonable, equitable, and not unfairly discriminatory because options in Penny classes are generally more liquid as compared to Non-Penny classes. Additionally, other competing options exchanges differentiate pricing in a similar manner today.\13\ --------------------------------------------------------------------------- \13\ See NASDAQ PHLX LLC Pricing Schedule, Section II; NYSE American Options Fee Schedule, p. 7; Cboe Exchange, Inc. Fee Schedule, p. 1. See also Securities Exchange Act Release No. 68556 (January 2, 2013), 78 FR 1293 (January 8, 2013) (SR-BX-2012-074). --------------------------------------------------------------------------- Further, the Exchange believes that it is equitable and not unfairly discriminatory to assess lower fees to Market Maker orders than to orders submitted by all other market participants who are not Priority [[Page 12838]] Customers. Market Makers are assessed lower transaction fees as compared to Non-MIAX Market Makers, Non-Member Broker-Dealers, and Firms because they have market-making obligations and regulatory requirements, which normally do not apply to those market participants that are not Market Makers.\14\ Market Makers additionally have obligations to make continuous markets, engage in a course of dealings reasonably calculated to contribute to the maintenance of a fair and orderly market, and not make bids or offers or enter into transactions that are inconsistent with a course of dealings. --------------------------------------------------------------------------- \14\ See Exchange Rules 603 and 604. --------------------------------------------------------------------------- Furthermore, the proposed decrease to the Taker fees in Penny classes for Market Makers in Tiers 4, 5 and 6 promotes just and equitable principles of trade, fosters cooperation and coordination with persons engaged in facilitating transactions in securities, and protects investors and the public interest because the proposed decrease in the fees will encourage Market Makers to send more orders to the Exchange since they will be assessed a reduced Taker fee in Tiers 4, 5 and 6. To the extent that Market Maker order flow in Penny classes is increased by the proposal, market participants will increasingly compete for the opportunity to trade on the Exchange, including sending more orders which will have the potential to be assessed lower fees and higher rebates. The resulting increased volume and liquidity will benefit all Exchange participants by providing more trading opportunities and tighter spreads. B. Self-Regulatory Organization's Statement on Burden on Competition MIAX PEARL does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed Taker fee decreases are intended to encourage executing more volume on the Exchange. The decrease in the Taker fee for Market Makers should enable the Exchange to attract and compete for order flow with other exchanges which assess higher Taker fees thereby adding liquidity. 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 rebates and fees to remain competitive with other exchanges and to attract order flow. The Exchange believes that the proposed rule change reflects this competitive environment because it modifies the Exchange's fees in a manner that encourages market participants to send 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,\15\ and Rule 19b-4(f)(2) \16\ 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. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(ii). \16\ 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-PEARL-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-PEARL-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-PEARL-2018-09 and should be submitted on or before April 13, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-05901 Filed 3-22-18; 8:45 am] BILLING CODE 8011-01-P
![12836 Federal Register / Vol. 83, No. 57 / Friday, March 23, 2018 / Notices
submission must file that rebuttal on or For the Commission, by the Division of Exchange has prepared summaries, set
before April 27, 2018. Comments may Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of
be submitted by any of the following authority.63 the most significant aspects of such
methods: Eduardo A. Aleman, statements.
Assistant Secretary.
Electronic Comments A. Self-Regulatory Organization’s
[FR Doc. 2018–05902 Filed 3–22–18; 8:45 am]
Statement of the Purpose of, and
• Use the Commission’s internet BILLING CODE 8011–01–P
Statutory Basis for, the Proposed Rule
comment form (http://www.sec.gov/ Change
rules/sro.shtml); or
• Send an email to rule-comments@ SECURITIES AND EXCHANGE 1. Purpose
sec.gov. Please include File Number SR– COMMISSION The Exchange proposes to amend the
LCH SA–2017–012 and SR–LCH SA– [Release No. 34–82900; File No. SR– Add/Remove Tiered Rebates/Fees set
2017–013 on the subject line. PEARL–2018–09] forth in Section (1)(a) of the Fee
Schedule to decrease the ‘‘Taker’’ fees in
Paper Comments Self-Regulatory Organizations; MIAX Tiers 4, 5 and 6 assessable to all orders
• Send paper comments in triplicate PEARL, LLC; Notice of Filing and submitted by a Market Maker 3 for
to Secretary, Securities and Exchange Immediate Effectiveness of a Proposed options in Penny classes (as defined
Commission, 100 F Street NE, Rule Change To Amend the Fee below).
Washington, DC 20549. Schedule The Exchange currently assesses
tiered transaction rebates and fees to all
All submissions should refer to SR–LCH March 19, 2018. market participants which are based
SA–2017–012 and SR–LCH SA–2017– Pursuant to the provisions of Section upon the total monthly volume
013. These file numbers should be 19(b)(1) of the Securities Exchange Act executed by the Member 4 on MIAX
included on the subject line if email is of 1934 (‘‘Act’’),1 and Rule 19b–4 PEARL in the relevant, respective origin
used. To help the Commission process thereunder,2 notice is hereby given that type (not including Excluded
and review your comments more on March 8, 2018, MIAX PEARL, LLC Contracts 5) expressed as a percentage of
efficiently, please use only one method. (‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed TCV.6 In addition, the per contract
The Commission will post all comments with the Securities and Exchange
on the Commission’s internet website Commission (‘‘Commission’’) a 3 ‘‘Market Maker’’ means a Member registered
(http://www.sec.gov/rules/sro.shtml). proposed rule change as described in with the Exchange for the purpose of making
Items I, II, and III below, which Items markets in options contracts traded on the
Copies of the submissions, all Exchange and that is vested with the rights and
subsequent amendments, all written have been prepared by the Exchange. responsibilities specified in Chapter VI of Exchange
statements with respect to the proposed The Commission is publishing this Rules. See the Definitions Section of the Fee
rule changes that are filed with the notice to solicit comments on the Schedule and Exchange Rule 100.
Commission, and all written proposed rule change from interested 4 ‘‘Member’’ means an individual or organization
that is registered with the Exchange pursuant to
communications relating to the persons. Chapter II of the Exchange Rules for purposes of
proposed rule changes between the I. Self-Regulatory Organization’s trading on the Exchange as an ‘‘Electronic Exchange
Commission and any person, other than Member’’ or ‘‘Market Maker.’’ Members are deemed
Statement of the Terms of Substance of ‘‘members’’ under the Exchange Act. See the
those that may be withheld from the the Proposed Rule Change Definitions Section of the Fee Schedule and
public in accordance with the Exchange Rule 100.
provisions of 5 U.S.C. 552, will be The Exchange is filing a proposal to 5 ‘‘Excluded Contracts’’ means any contracts
available for website viewing and amend the MIAX PEARL Fee Schedule routed to an away market for execution. See the
printing in the Commission’s Public (the ‘‘Fee Schedule’’). The Exchange Definitions Section of the Fee Schedule.
Reference Room, 100 F Street NE, initially filed the proposal on February 6 ‘‘TCV’’ means total consolidated volume
28, 2018 (SR–PEARL–2018–06). That calculated as the total national volume in those
Washington, DC 20549, on official classes listed on MIAX PEARL for the month for
business days between the hours of filing was withdrawn and replaced with which the fees apply, excluding consolidated
10:00 a.m. and 3:00 p.m. Copies of the the current filing (SR–PEARL–2018–09). volume executed during the period time in which
filings also will be available for The text of the proposed rule change the Exchange experiences an ‘‘Exchange System
is available on the Exchange’s website at Disruption’’ (solely in the option classes of the
inspection and copying at the principal affected Matching Engine (as defined below)). The
office of LCH SA and on LCH SA’s http://www.miaxoptions.com/rule- term Exchange System Disruption, which is defined
website at http://www.lch.com/asset- filings/pearl at MIAX PEARL’s principal in the Definitions section of the Fee Schedule,
classes/cdsclear. All comments received office, and at the Commission’s Public means an outage of a Matching Engine or collective
Reference Room. Matching Engines for a period of two consecutive
will be posted without change. Persons hours or more, during trading hours. The term
submitting comments are cautioned that II. Self-Regulatory Organization’s Matching Engine, which is also defined in the
we do not redact or edit personal Definitions section of the Fee Schedule, is a part of
Statement of the Purpose of, and the MIAX PEARL electronic system that processes
identifying information from comment Statutory Basis for, the Proposed Rule options orders and trades on a symbol-by-symbol
submissions. You should submit only Change basis. Some Matching Engines will process option
information that you wish to make classes with multiple root symbols, and other
In its filing with the Commission, the Matching Engines may be dedicated to one single
available publicly.
Exchange included statements option root symbol (for example, options on SPY
All submissions should refer to File concerning the purpose of and basis for may be processed by one single Matching Engine
Number SR–LCH SA–2017–012 and SR– the proposed rule change and discussed that is dedicated only to SPY). A particular root
symbol may only be assigned to a single designated
amozie on DSK30RV082PROD with NOTICES
LCH SA–2017–013 and should be any comments it received on the Matching Engine. A particular root symbol may not
submitted on or before April 13, 2018. proposed rule change. The text of these be assigned to multiple Matching Engines. The
If comments are received, any rebuttal statements may be examined at the Exchange notes that the term ‘‘Exchange System
comments should be submitted on or places specified in Item IV below. The Disruption’’ and its meaning have no applicability
before April 27, 2018. outside of the Fee Schedule, as it is used solely for
purposes of calculating volume for the threshold
1 15 U.S.C. 78s(b)(1). tiers in the Fee Schedule. See the Definitions
63 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. Section of the Fee Schedule.
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![12838 Federal Register / Vol. 83, No. 57 / Friday, March 23, 2018 / Notices
Customers. Market Makers are assessed Exchange believes that the proposed rules/sro.shtml). Copies of the
lower transaction fees as compared to rule change reflects this competitive submission, all subsequent
Non-MIAX Market Makers, Non- environment because it modifies the amendments, all written statements
Member Broker-Dealers, and Firms Exchange’s fees in a manner that with respect to the proposed rule
because they have market-making encourages market participants to send change that are filed with the
obligations and regulatory requirements, order flow to the Exchange. Commission, and all written
which normally do not apply to those communications relating to the
market participants that are not Market C. Self-Regulatory Organization’s
proposed rule change between the
Makers.14 Market Makers additionally Statement on Comments on the
Commission and any person, other than
have obligations to make continuous Proposed Rule Change Received From
those that may be withheld from the
markets, engage in a course of dealings Members, Participants, or Others
public in accordance with the
reasonably calculated to contribute to Written comments were neither provisions of 5 U.S.C. 552, will be
the maintenance of a fair and orderly solicited nor received. available for website viewing and
market, and not make bids or offers or printing in the Commission’s Public
III. Date of Effectiveness of the
enter into transactions that are Reference Room, 100 F Street NE,
Proposed Rule Change and Timing for
inconsistent with a course of dealings. Washington, DC 20549, on official
Furthermore, the proposed decrease Commission Action
business days between the hours of
to the Taker fees in Penny classes for The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
Market Makers in Tiers 4, 5 and 6 effective pursuant to Section filing also will be available for
promotes just and equitable principles 19(b)(3)(A)(ii) of the Act,15 and Rule inspection and copying at the principal
of trade, fosters cooperation and 19b–4(f)(2) 16 thereunder. At any time office of the Exchange. All comments
coordination with persons engaged in within 60 days of the filing of the received will be posted without change.
facilitating transactions in securities, proposed rule change, the Commission Persons submitting comments are
and protects investors and the public summarily may temporarily suspend cautioned that we do not redact or edit
interest because the proposed decrease such rule change if it appears to the personal identifying information from
in the fees will encourage Market Commission that such action is comment submissions. You should
Makers to send more orders to the necessary or appropriate in the public submit only information that you wish
Exchange since they will be assessed a interest, for the protection of investors, to make available publicly. All
reduced Taker fee in Tiers 4, 5 and 6. or otherwise in furtherance of the submissions should refer to File
To the extent that Market Maker order purposes of the Act. If the Commission Number SR–PEARL–2018–09 and
flow in Penny classes is increased by takes such action, the Commission shall should be submitted on or before April
the proposal, market participants will institute proceedings to determine 13, 2018.
increasingly compete for the whether the proposed rule should be
opportunity to trade on the Exchange, For the Commission, by the Division of
approved or disapproved.
Trading and Markets, pursuant to delegated
including sending more orders which
IV. Solicitation of Comments authority.17
will have the potential to be assessed
lower fees and higher rebates. The Interested persons are invited to Eduardo A. Aleman,
resulting increased volume and submit written data, views, and Assistant Secretary.
liquidity will benefit all Exchange arguments concerning the foregoing, [FR Doc. 2018–05901 Filed 3–22–18; 8:45 am]
participants by providing more trading including whether the proposed rule BILLING CODE 8011–01–P
opportunities and tighter spreads. change is consistent with the Act.
Comments may be submitted by any of
B. Self-Regulatory Organization’s
the following methods: DEPARTMENT OF STATE
Statement on Burden on Competition
MIAX PEARL does not believe that Electronic Comments [Public Notice: 10366]
the proposed rule change will impose • Use the Commission’s internet E.O. 13224 Designation of Joe
any burden on competition not comment form (http://www.sec.gov/ Asperman, as a Specially Designated
necessary or appropriate in furtherance rules/sro.shtml); or Global Terrorist
of the purposes of the Act. The • Send an email to rule-comments@
proposed Taker fee decreases are sec.gov. Please include File Number SR– Acting under the authority of and in
intended to encourage executing more PEARL–2018–09 on the subject line. accordance with section 1(b) of
volume on the Exchange. The decrease Executive Order 13224 of September 23,
Paper Comments
in the Taker fee for Market Makers 2001, as amended by Executive Order
should enable the Exchange to attract • Send paper comments in triplicate 13268 of July 2, 2002, and Executive
and compete for order flow with other to Secretary, Securities and Exchange Order 13284 of January 23, 2003, I
exchanges which assess higher Taker Commission, 100 F Street NE, hereby determine that the person known
fees thereby adding liquidity. The Washington, DC 20549–1090. as Joe Asperman, committed, or poses a
Exchange notes that it operates in a All submissions should refer to File significant risk of committing, acts of
highly competitive market in which Number SR–PEARL–2018–09. This file terrorism that threaten the security of
market participants can readily favor number should be included on the U.S. nationals or the national security,
competing venues if they deem fee subject line if email is used. To help the foreign policy, or economy of the United
levels at a particular venue to be Commission process and review your States.
amozie on DSK30RV082PROD with NOTICES
excessive. comments more efficiently, please use Consistent with the determination in
In such an environment, the Exchange only one method. The Commission will section 10 of Executive Order 13224 that
must continually adjust its rebates and post all comments on the Commission’s prior notice to persons determined to be
fees to remain competitive with other internet website (http://www.sec.gov/ subject to the Order who might have a
exchanges and to attract order flow. The constitutional presence in the United
15 15 U.S.C. 78s(b)(3)(A)(ii).
14 See Exchange Rules 603 and 604. 16 17 CFR 240.19b–4(f)(2). 17 17 CFR 200.30–3(a)(12).
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Document Created: 2018-11-01 08:54:01
Document Modified: 2018-11-01 08:54:01
| 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 12836 |
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