83_FR_40262 83 FR 40106 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule

83 FR 40106 - 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 156 (August 13, 2018)

Page Range40106-40108
FR Document2018-17252

Federal Register, Volume 83 Issue 156 (Monday, August 13, 2018) 
[Federal Register Volume 83, Number 156 (Monday, August 13, 2018)]
[Notices]
[Pages 40106-40108]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-17252]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83786; File No. SR-MIAX-2018-19]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Fee Schedule

August 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 July 31, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend the MIAX Options Fee 
Schedule (the ``Fee Schedule'') to modify certain of the Exchange's 
system connectivity fees.
    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 the Fee Schedule regarding 
connectivity to the Exchange. Specifically, the Exchange proposes to 
amend Sections 5a) and b) of the Fee Schedule to increase the network 
connectivity fees for the 1 Gigabit (``Gb'') fiber connection, the 10Gb 
fiber connection, and the 10Gb ultra-low latency (``ULL'') fiber 
connection, which are charged to both Members \3\ and non-Members of 
the Exchange for connectivity to the Exchange's primary/secondary 
facility. The Exchange also proposes to increase the network 
connectivity fees for the 1Gb and 10Gb fiber connections for 
connectivity to the Exchange's disaster recovery facility.
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    \3\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associated with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
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    The Exchange currently offers various bandwidth alternatives for 
connectivity to the Exchange, consisting of a 1Gb fiber connection, a 
10Gb fiber connection, and a 10Gb ULL fiber connection. The 10Gb ULL 
offering uses an ultra-low latency switch, which provides faster 
processing of messages sent to it in comparison to the switch used for 
the other types of connectivity. The Exchange currently assesses the 
following monthly network connectivity fees to both Members and non-
Members for connectivity to the Exchange's primary/secondary facility: 
(a) $1,100 for the 1Gb connection; (b) $5,500 for the 10Gb connection; 
and (c) $8,500.00 for the 10Gb ULL connection. The Exchange also 
assesses to both Members and non-Members a monthly per connection 
network connectivity fee of $500 for each 1Gb connection to the 
disaster recovery facility and a monthly per connection network 
connectivity fee of $2,500 for each 10Gb connection to the disaster 
recovery facility.
    The Exchange's MIAX Express Network Interconnect (``MENI'') can be 
configured to provide Members and non-Members of the Exchange network 
connectivity to the trading platforms, market data systems, test 
systems, and disaster recovery facilities of both the Exchange and its 
affiliate, MIAX PEARL, LLC (``MIAX PEARL''), via a single, shared 
connection. Members and

[[Page 40107]]

non-Members utilizing the MENI to connect to the trading platforms, 
market data systems, test systems and disaster recovery facilities of 
the Exchange and MIAX PEARL via a single, shared connection are 
assessed only one monthly network connectivity fee per connection, 
regardless of the trading platforms, market data systems, test systems, 
and disaster recovery facilities accessed via such connection.
    The Exchange proposes to increase the monthly network connectivity 
fees for such connections for both Members and non-Members. The network 
connectivity fees for connectivity to the Exchange's primary/secondary 
facility will be increased as follows: (a) from $1,100 to $1,400 for 
the 1Gb connection; (b) from $5,500 to $6,100 for the 10Gb connection; 
and (c) from $8,500 to $9,300 for the 10Gb ULL connection. The network 
connectivity fees for connectivity to the Exchange's disaster recovery 
facility will be increased as follows: (a) from $500 to $550 for the 
1Gb connection; and (b) from $2,500 to $2,750 for the 10Gb connection.
    The Exchange believes that the increase in the pricing of the 
Exchange's connectivity is reflective of the continued value that it 
provides and the increasing costs to the Exchange for providing and 
maintaining the necessary hardware and other infrastructure to support 
this technology. The Exchange notes that other exchanges have similar 
connectivity alternatives for their participants, including similar 
low-latency connectivity. For example, Nasdaq PHLX LLC (``Phlx''), NYSE 
Arca, Inc. (``Arca''), NYSE American LLC (``NYSE American'') and Nasdaq 
ISE, LLC (``ISE'') all offer a 1Gb, 10Gb and 10Gb low latency ethernet 
connectivity alternatives to each of their participants.\4\ The 
Exchange further notes that Phlx, ISE, Arca and NYSE American each 
charge higher rates for such similar connectivity to primary and 
secondary facilities.\5\ Additionally, the Exchange's proposed 
connectivity fees to its disaster recovery facility are within the 
range of the fees charged by other exchanges for similar connectivity 
alternatives.\6\ The Exchange believes that it is appropriate to 
increase its fees charged for use of its connectivity to offset 
increasing costs associated with providing and maintaining the 
necessary hardware and other infrastructure to support this technology 
and also to more closely align its fees with the rates charged by 
competing options exchanges.
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    \4\ See Phlx and ISE Rules, General Equity and Options Rules, 
General 8, Section 1(b). Phlx and ISE each charge a monthly fee of 
$2,500 for each 1Gb connection, $10,000 for each 10Gb connection and 
$15,000 for each 10Gb Ultra connection, which the equivalent of the 
Exchange's 10Gb ULL connection. See also NYSE American Fee Schedule, 
Section V.B, and Arca Fees and Charges, Co-Location Fees. NYSE 
American and Arca each charge a monthly fee of $5,000 for each 1Gb 
circuit, $14,000 for each 10Gb circuit and $22,000 for each 10Gb LX 
circuit, which the equivalent of the Exchange's 10Gb ULL connection.
    \5\ Id.
    \6\ See Nasdaq ISE Schedule of Fees, IX(D) (charging $3,000 for 
disaster recovery testing & relocation services); see also Cboe 
Exchange, Inc. (``Cboe'') Fees Schedule, p. 14, Cboe Command 
Connectivity Charges (charging a monthly fee of $2,000 for a 1Gb 
disaster recovery network access port and a monthly fee of $6,000 
for a 10Gb disaster recovery network access port).
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    The Exchange proposes to implement the proposed changes to the Fee 
Schedule effective as of August 1, 2018.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act \7\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \8\ in particular, in that 
it provides for the equitable allocation of reasonable dues, fees and 
other charges among Exchange Members and issuers and other persons 
using any facility or system which the Exchange operates or controls. 
The Exchange also believes the proposal furthers the objectives of 
Section 6(b)(5) of the Act \9\ in that it is designed to promote just 
and equitable principles of trade, to remove impediments to and perfect 
the mechanism of a free and open market and a national market system, 
and, in general to protect investors and the public interest and is not 
designed to permit unfair discrimination between customer, issuers, 
brokers and dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4).
    \9\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposal is consistent with Section 
6(b)(4) of the Act because the fees assessed for connectivity allow the 
Exchange to cover the costs associated with providing and maintaining 
the necessary hardware and other infrastructure to support this 
technology. The Exchange believes that the proposal to increase the 
fees for connectivity alternatives is fair, equitable and not 
unreasonably discriminatory because the increased fees are assessed 
equally among all users of the applicable connections.
    As discussed above, Phlx and ISE each offer different connections 
with respect to latency, and Arca and NYSE American both offer similar 
connectivity alternatives.\10\ Despite this, Phlx, ISE, Arca and NYSE 
American charge a higher fee than the Exchange currently charges for 
similar connections to primary and secondary facilities.\11\ 
Furthermore, the connectivity fees for the disaster recovery facilities 
of other exchanges are within the range of the proposed fees of the 
Exchange.\12\ For these reasons, the Exchange believes the proposed 
increase in the fees for the fiber connectivity to the Exchange is 
reasonable and not unfairly discriminatory.
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    \10\ See supra note 4.
    \11\ Id.
    \12\ See supra note 6.
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    The Exchange also believes that its proposal is consistent with 
Section 6(b)(5) of the Act \13\ because all MIAX Options participants 
have the opportunity to subscribe to the Exchange's connections. There 
is also no differentiation among MIAX Options participants with regard 
to the fees charged for these services.
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    \13\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. On the contrary, the Exchange 
believes that the proposed changes should increase both intermarket and 
intramarket competition. Specifically, the Exchange believes that the 
changes will promote competition by increasing the connectivity fees to 
become more within the range of comparable fees assessed by other 
competing exchanges.\14\
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    \14\ See supra note 4.
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    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 to remain 
competitive with other exchanges. The Exchange believes that the 
proposed changes reflect this competitive environment. To the extent 
that this purpose is achieved, all the Exchange's market participants 
should benefit from the improved market liquidity.

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.

[[Page 40108]]

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.
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    \15\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \16\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MIAX-2018-19 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-2018-19. 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-2018-19 and should be submitted on 
or before September 4, 2018.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-17252 Filed 8-10-18; 8:45 am]
 BILLING CODE 8011-01-P

40106 Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices SECURITIES AND EXCHANGE For the Commission, by the Division of forth in sections A, B, and C below, of COMMISSION Trading and Markets, pursuant to delegated the most significant aspects of such authority.9 statements. [Release No. 34–83784; File No. SR– Eduardo A. Aleman, CboeBZX–2017–006] Assistant Secretary. A. Self-Regulatory Organization’s Statement of the Purpose of, and [FR Doc. 2018–17250 Filed 8–10–18; 8:45 am] Self-Regulatory Organizations; Cboe Statutory Basis for, the Proposed Rule BILLING CODE 8011–01–P BZX Exchange, Inc.; Notice of Change Withdrawal of a Proposed Rule 1. Purpose Change, as Modified by Amendment SECURITIES AND EXCHANGE The Exchange proposes to amend the No. 1, To List and Trade Shares of COMMISSION Fee Schedule regarding connectivity to Twelve Monthly Series of the Cboe [Release No. 34–83786; File No. SR–MIAX– the Exchange. Specifically, the Vest S&P 500 Enhanced Growth 2018–19] Exchange proposes to amend Sections Strategy ETF Under the ETF Series 5a) and b) of the Fee Schedule to Solutions Trust Under Rule 14.11(c)(3), Self-Regulatory Organizations; Miami increase the network connectivity fees Index Fund Shares International Securities Exchange LLC; for the 1 Gigabit (‘‘Gb’’) fiber August 7, 2018. Notice of Filing and Immediate connection, the 10Gb fiber connection, On November 21, 2017, Cboe BZX Effectiveness of a Proposed Rule and the 10Gb ultra-low latency (‘‘ULL’’) Exchange, Inc. (‘‘Exchange’’) filed with Change To Amend Its Fee Schedule fiber connection, which are charged to the Securities and Exchange both Members 3 and non-Members of the August 7, 2018. Commission (‘‘Commission’’), pursuant Exchange for connectivity to the Pursuant to the provisions of Section to Section 19(b)(1) of the Securities Exchange’s primary/secondary facility. 19(b)(1) of the Securities Exchange Act Exchange Act of 1934 (‘‘Act’’) 1 and Rule The Exchange also proposes to increase of 1934 (‘‘Act’’) 1 and Rule 19b–4 19b–4 thereunder,2 a proposed rule the network connectivity fees for the thereunder,2 notice is hereby given that change to list and trade, under BZX 1Gb and 10Gb fiber connections for on July 31, 2018, Miami International Rule 14.11(c)(3), shares of twelve connectivity to the Exchange’s disaster Securities Exchange LLC (‘‘MIAX monthly series of the Cboe Vest S&P recovery facility. Options’’ or ‘‘Exchange’’) filed with the The Exchange currently offers various 500® Enhanced Growth Strategy ETF Securities and Exchange Commission under the ETF Series Solutions Trust. bandwidth alternatives for connectivity (‘‘Commission’’) a proposed rule change to the Exchange, consisting of a 1Gb The proposed rule change was as described in Items I, II, and III below, published for comment in the Federal fiber connection, a 10Gb fiber which Items have been prepared by the connection, and a 10Gb ULL fiber Register on December 11, 2017.3 On Exchange. The Commission is January 22, 2018, the Commission connection. The 10Gb ULL offering uses publishing this notice to solicit an ultra-low latency switch, which extended the time period within which comments on the proposed rule change to approve the proposed rule change, provides faster processing of messages from interested persons. sent to it in comparison to the switch disapprove the proposed rule change, or institute proceedings to determine I. Self-Regulatory Organization’s used for the other types of connectivity. whether to approve or disapprove the Statement of the Terms of Substance of The Exchange currently assesses the proposed rule change to March 11, the Proposed Rule Change following monthly network connectivity 2018.4 On March 9, 2018, the fees to both Members and non-Members The Exchange is filing a proposal to Commission instituted proceedings for connectivity to the Exchange’s amend the MIAX Options Fee Schedule under Section 19(b)(2)(B) of the Act 5 to primary/secondary facility: (a) $1,100 (the ‘‘Fee Schedule’’) to modify certain determine whether to approve or for the 1Gb connection; (b) $5,500 for of the Exchange’s system connectivity disapprove the proposed rule change.6 the 10Gb connection; and (c) $8,500.00 fees. On April 13, 2018, the Exchange filed for the 10Gb ULL connection. The The text of the proposed rule change Amendment No. 1 to the proposed rule Exchange also assesses to both Members is available on the Exchange’s website at change.7 On June 6, 2018, the and non-Members a monthly per http://www.miaxoptions.com/rule- Commission designated a longer period connection network connectivity fee of filings, at MIAX’s principal office, and for Commission action on the proposed $500 for each 1Gb connection to the at the Commission’s Public Reference rule change.8 The Commission received disaster recovery facility and a monthly Room. no comments on the proposed rule per connection network connectivity fee change. On July 31, 2018, the Exchange II. Self-Regulatory Organization’s of $2,500 for each 10Gb connection to withdrew the proposed rule change. Statement of the Purpose of, and the disaster recovery facility. Statutory Basis for, the Proposed Rule The Exchange’s MIAX Express 1 15 U.S.C. 78s(b)(1). Change Network Interconnect (‘‘MENI’’) can be 2 17 CFR 240.19b–4. In its filing with the Commission, the configured to provide Members and 3 See Securities Exchange Act Release No. 82216 Exchange included statements non-Members of the Exchange network (December 5, 2017), 82 FR 58235. concerning the purpose of and basis for connectivity to the trading platforms, 4 See Securities Exchange Act Release No. 82552, the proposed rule change and discussed market data systems, test systems, and 83 FR 3819 (January 26, 2018). disaster recovery facilities of both the 5 15 U.S.C. 78s(b)(2)(B). any comments it received on the Exchange and its affiliate, MIAX sradovich on DSK3GMQ082PROD with NOTICES 6 See Securities Exchange Act Release No. 82843, proposed rule change. The text of these 83 FR 11264 (March 14, 2018). statements may be examined at the PEARL, LLC (‘‘MIAX PEARL’’), via a 7 Amendment No. 1, which amended and places specified in Item IV below. The single, shared connection. Members and replaced the proposed rule change in its entirety, is available at: https://www.sec.gov/comments/sr- Exchange has prepared summaries, set 3 The term ‘‘Member’’ means an individual or cboebzx-2017-006/cboebzx2017006-3458512- organization approved to exercise the trading rights 9 17 CFR 200.30–3(a)(12). 162202.pdf. associated with a Trading Permit. Members are 8 See Securities Exchange Act Release No. 83388, 1 15 U.S.C. 78s(b)(1). deemed ‘‘members’’ under the Exchange Act. See 83 FR 27356 (June 12, 2018). 2 17 CFR 240.19b–4. Exchange Rule 100. VerDate Sep<11>2014 20:42 Aug 10, 2018 Jkt 244001 PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 E:\FR\FM\13AUN1.SGM 13AUN1

Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices 40107 non-Members utilizing the MENI to alternatives.6 The Exchange believes charge a higher fee than the Exchange connect to the trading platforms, market that it is appropriate to increase its fees currently charges for similar data systems, test systems and disaster charged for use of its connectivity to connections to primary and secondary recovery facilities of the Exchange and offset increasing costs associated with facilities.11 Furthermore, the MIAX PEARL via a single, shared providing and maintaining the connectivity fees for the disaster connection are assessed only one necessary hardware and other recovery facilities of other exchanges are monthly network connectivity fee per infrastructure to support this technology within the range of the proposed fees of connection, regardless of the trading and also to more closely align its fees the Exchange.12 For these reasons, the platforms, market data systems, test with the rates charged by competing Exchange believes the proposed systems, and disaster recovery facilities options exchanges. increase in the fees for the fiber accessed via such connection. The Exchange proposes to implement connectivity to the Exchange is The Exchange proposes to increase the proposed changes to the Fee reasonable and not unfairly the monthly network connectivity fees Schedule effective as of August 1, 2018. discriminatory. for such connections for both Members 2. Statutory Basis The Exchange also believes that its and non-Members. The network connectivity fees for connectivity to the The Exchange believes that its proposal is consistent with Section Exchange’s primary/secondary facility proposal to amend its Fee Schedule is 6(b)(5) of the Act 13 because all MIAX will be increased as follows: (a) from consistent with Section 6(b) of the Act 7 Options participants have the $1,100 to $1,400 for the 1Gb connection; in general, and furthers the objectives of opportunity to subscribe to the (b) from $5,500 to $6,100 for the 10Gb Section 6(b)(4) of the Act 8 in particular, Exchange’s connections. There is also connection; and (c) from $8,500 to in that it provides for the equitable no differentiation among MIAX Options $9,300 for the 10Gb ULL connection. allocation of reasonable dues, fees and participants with regard to the fees The network connectivity fees for other charges among Exchange Members charged for these services. connectivity to the Exchange’s disaster and issuers and other persons using any recovery facility will be increased as facility or system which the Exchange B. Self-Regulatory Organization’s follows: (a) from $500 to $550 for the operates or controls. The Exchange also Statement on Burden on Competition 1Gb connection; and (b) from $2,500 to believes the proposal furthers the objectives of Section 6(b)(5) of the Act 9 The Exchange does not believe that $2,750 for the 10Gb connection. the proposed rule changes will impose The Exchange believes that the in that it is designed to promote just and equitable principles of trade, to remove any burden on competition not increase in the pricing of the Exchange’s impediments to and perfect the necessary or appropriate in furtherance connectivity is reflective of the mechanism of a free and open market of the purposes of the Act. On the continued value that it provides and the and a national market system, and, in contrary, the Exchange believes that the increasing costs to the Exchange for general to protect investors and the proposed changes should increase both providing and maintaining the public interest and is not designed to intermarket and intramarket necessary hardware and other infrastructure to support this permit unfair discrimination between competition. Specifically, the Exchange technology. The Exchange notes that customer, issuers, brokers and dealers. believes that the changes will promote other exchanges have similar The Exchange believes that its competition by increasing the connectivity alternatives for their proposal is consistent with Section connectivity fees to become more within participants, including similar low- 6(b)(4) of the Act because the fees the range of comparable fees assessed by assessed for connectivity allow the other competing exchanges.14 latency connectivity. For example, Exchange to cover the costs associated Nasdaq PHLX LLC (‘‘Phlx’’), NYSE The Exchange notes that it operates in with providing and maintaining the Arca, Inc. (‘‘Arca’’), NYSE American a highly competitive market in which necessary hardware and other LLC (‘‘NYSE American’’) and Nasdaq market participants can readily favor infrastructure to support this ISE, LLC (‘‘ISE’’) all offer a 1Gb, 10Gb competing venues if they deem fee technology. The Exchange believes that and 10Gb low latency ethernet levels at a particular venue to be the proposal to increase the fees for connectivity alternatives to each of their excessive. In such an environment, the connectivity alternatives is fair, participants.4 The Exchange further Exchange must continually adjust its equitable and not unreasonably notes that Phlx, ISE, Arca and NYSE discriminatory because the increased fees to remain competitive with other American each charge higher rates for fees are assessed equally among all exchanges. The Exchange believes that such similar connectivity to primary users of the applicable connections. the proposed changes reflect this and secondary facilities.5 Additionally, As discussed above, Phlx and ISE competitive environment. To the extent the Exchange’s proposed connectivity each offer different connections with that this purpose is achieved, all the fees to its disaster recovery facility are respect to latency, and Arca and NYSE Exchange’s market participants should within the range of the fees charged by American both offer similar benefit from the improved market other exchanges for similar connectivity connectivity alternatives.10 Despite this, liquidity. Phlx, ISE, Arca and NYSE American 4 See Phlx and ISE Rules, General Equity and C. Self-Regulatory Organization’s Options Rules, General 8, Section 1(b). Phlx and ISE 6 See Nasdaq ISE Schedule of Fees, IX(D) Statement on Comments on the each charge a monthly fee of $2,500 for each 1Gb Proposed Rule Change Received From connection, $10,000 for each 10Gb connection and (charging $3,000 for disaster recovery testing & $15,000 for each 10Gb Ultra connection, which the relocation services); see also Cboe Exchange, Inc. Members, Participants, or Others sradovich on DSK3GMQ082PROD with NOTICES equivalent of the Exchange’s 10Gb ULL connection. (‘‘Cboe’’) Fees Schedule, p. 14, Cboe Command See also NYSE American Fee Schedule, Section Connectivity Charges (charging a monthly fee of Written comments were neither $2,000 for a 1Gb disaster recovery network access V.B, and Arca Fees and Charges, Co-Location Fees. port and a monthly fee of $6,000 for a 10Gb disaster solicited nor received. NYSE American and Arca each charge a monthly fee of $5,000 for each 1Gb circuit, $14,000 for each recovery network access port). 7 15 U.S.C. 78f(b). 11 Id. 10Gb circuit and $22,000 for each 10Gb LX circuit, 8 15 U.S.C. 78f(b)(4). 12 See supra note 6. which the equivalent of the Exchange’s 10Gb ULL connection. 9 15 U.S.C. 78f(b)(5). 13 15 U.S.C. 78f(b)(5). 5 Id. 10 See supra note 4. 14 See supra note 4. VerDate Sep<11>2014 20:42 Aug 10, 2018 Jkt 244001 PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 E:\FR\FM\13AUN1.SGM 13AUN1

40108 Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices III. Date of Effectiveness of the Reference Room, 100 F Street NE, At times, changes in Commission Proposed Rule Change and Timing for Washington, DC 20549, on official priorities require alterations in the Commission Action business days between the hours of scheduling of meeting items. The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the CONTACT PERSON FOR MORE INFORMATION: effective pursuant to Section filing also will be available for For further information and to ascertain 19(b)(3)(A)(ii) of the Act,15 and Rule inspection and copying at the principal what, if any, matters have been added, 19b–4(f)(2) 16 thereunder. At any time office of the Exchange. All comments deleted or postponed; please contact within 60 days of the filing of the received will be posted without change. Brent J. Fields from the Office of the proposed rule change, the Commission Persons submitting comments are Secretary at (202) 551–5400. summarily may temporarily suspend cautioned that we do not redact or edit Dated: July 26, 2018. such rule change if it appears to the personal identifying information from Brent J. Fields, Commission that such action is comment submissions. You should Secretary. necessary or appropriate in the public submit only information that you wish [FR Doc. 2018–17391 Filed 8–9–18; 11:15 am] interest, for the protection of investors, to make available publicly. All BILLING CODE 8011–01–P or otherwise in furtherance of the submissions should refer to File purposes of the Act. If the Commission Number SR–MIAX–2018–19 and should takes such action, the Commission shall be submitted on or before September 4, SECURITIES AND EXCHANGE institute proceedings to determine 2018. COMMISSION whether the proposed rule should be For the Commission, by the Division of approved or disapproved. Trading and Markets, pursuant to delegated [Release No. 34–83789; File No. SR–GEMX– authority.17 2018–27] IV. Solicitation of Comments Eduardo A. Aleman, Self-Regulatory Organizations; Nasdaq Interested persons are invited to Assistant Secretary. submit written data, views, and GEMX, LLC; Notice of Filing and [FR Doc. 2018–17252 Filed 8–10–18; 8:45 am] Immediate Effectiveness of a Proposed arguments concerning the foregoing, including whether the proposed rule BILLING CODE 8011–01–P Rule Change To Amend the Options change is consistent with the Act. Regulatory Fee Comments may be submitted by any of SECURITIES AND EXCHANGE August 7, 2018. the following methods: COMMISSION Pursuant to Section 19(b)(1) of the Electronic Comments Securities Exchange Act of 1934 Sunshine Act Meetings (‘‘Act’’),1 and Rule 19b–4 thereunder,2 • Use the Commission’s internet notice is hereby given that on July 27, comment form (http://www.sec.gov/ TIME AND DATE: 2:00 p.m. on Thursday, 2018, Nasdaq GEMX, LLC (‘‘GEMX’’ or rules/sro.shtml); or August 2, 2018. ‘‘Exchange’’) filed with the Securities • Send an email to rule-comments@ PLACE: Closed Commission Hearing and Exchange Commission (the sec.gov. Please include File Number SR– Room 10800. ‘‘Commission’’) the proposed rule MIAX–2018–19 on the subject line. STATUS: This meeting will be closed to change as described in Items I, II, and Paper Comments the public. III below, which Items have been • Send paper comments in triplicate MATTERS TO BE CONSIDERED: prepared by the Exchange. The to Secretary, Securities and Exchange Commissioners, Counsel to the Commission is publishing this notice to Commission, 100 F Street NE, Commissioners, the Secretary to the solicit comments on the proposed rule Washington, DC 20549–1090. Commission, and recording secretaries change from interested persons. All submissions should refer to File will attend the closed meeting. Certain I. Self-Regulatory Organization’s Number SR–MIAX–2018–19. This file staff members who have an interest in Statement of the Terms of Substance of number should be included on the the matters also may be present. the Proposed Rule Change subject line if email is used. To help the The General Counsel of the The Exchange proposes to revise Commission process and review your Commission, or his designee, has GEMX’s Schedule of Fees to amend its comments more efficiently, please use certified that, in his opinion, one or Options Regulatory Fee or ‘‘ORF’’. only one method. The Commission will more of the exemptions set forth in 5 While the changes proposed herein post all comments on the Commission’s U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) are effective upon filing, the Exchange internet website (http://www.sec.gov/ and (10) and 17 CFR 200.402(a)(3), has designated the amendments become rules/sro.shtml). Copies of the (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and operative on August 1, 2018. submission, all subsequent (a)(10), permit consideration of the The text of the proposed rule change amendments, all written statements scheduled matters at the closed meeting. is available on the Exchange’s website at with respect to the proposed rule Commissioner Peirce, as duty officer, http://nasdaqgemx.cchwallstreet.com/, change that are filed with the voted to consider the items listed for the at the principal office of the Exchange, Commission, and all written closed meeting in closed session. and at the Commission’s Public communications relating to the The subject matters of the closed Reference Room. proposed rule change between the meeting will be: Commission and any person, other than Institution and settlement of II. Self-Regulatory Organization’s Statement of the Purpose of, and sradovich on DSK3GMQ082PROD with NOTICES those that may be withheld from the injunctive actions; public in accordance with the Institution and settlement of Statutory Basis for, the Proposed Rule provisions of 5 U.S.C. 552, will be administrative proceedings; Change available for website viewing and Resolution of litigation claims; and In its filing with the Commission, the printing in the Commission’s Public Other matters relating to enforcement Exchange included statements proceedings. 15 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1). 16 17 CFR 240.19b–4(f)(2). 17 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 20:42 Aug 10, 2018 Jkt 244001 PO 00000 Frm 00128 Fmt 4703 Sfmt 4703 E:\FR\FM\13AUN1.SGM 13AUN1


Document Created: 2018-08-11 00:26:55
Document Modified: 2018-08-11 00:26:55
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 40106 
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