83 FR 42178 - Self-Regulatory Organizations: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange LLC To Amend Its Fee Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 161 (August 20, 2018)
Federal Register Volume 83, Issue 161 (August 20, 2018)
| Page Range | 42178-42183 | |
| FR Document | 2018-17849 |
[Federal Register Volume 83, Number 161 (Monday, August 20, 2018)] [Notices] [Pages 42178-42183] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-17849] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83847; File No. SR-MIAX-2018-23] Self-Regulatory Organizations: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange LLC To Amend Its Fee Schedule August 14, 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 August 7, 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 [[Page 42179]] 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 to modify certain aspects of the following fees that apply to MIAX Options Market Makers: \3\ (i) The Monthly Trading Permit fees; and (ii) the MEI Port fees. The Exchange also proposes to amend the list of MIAX Select Symbols \4\ contained in the Priority Customer Rebate Program \5\ of the Exchange's Fee Schedule to delete an obsolete reference. --------------------------------------------------------------------------- \3\ The term ``Market Makers'' refers to ``Lead Market Makers,'' ``Primary Lead Market Makers'' and ``Registered Market Makers'' collectively. See Exchange Rule 100. \4\ The term ``MIAX Select Symbols'' means options overlying AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BB, BIDU, BP, C, CAT, CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, T, TSLA, USO, VALE, VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM, and XOP. \5\ See Section 1(a)(iii) of the Fee Schedule for a complete description of the Program. --------------------------------------------------------------------------- The Exchange issues Trading Permits that confer the ability to transact on the Exchange.\6\ Currently, the Exchange assesses the following monthly fees for MIAX Options Market Maker Trading Permits: (i) $7,000 for Market Maker Assignments in up to 10 option classes or up to 20% of option classes by volume; (ii) $12,000 for Market Maker Assignments in up to 40 option classes or up to 35% of option classes by volume; (iii) $17,000 for Market Maker Assignments in up to 100 option classes or up to 50% of option classes by volume; and (iv) $22,000.00 for Market Maker Assignments in over 100 option classes or over 50% of option classes by volume up to all option classes listed on MIAX Options.\7\ For the calculation of these monthly Trading Permit fees, the number of classes is defined as the greatest number of classes the Market Maker was assigned to quote in on any given day within the calendar month and the class volume percentage is based on the total national average daily volume in classes listed on MIAX Options in the prior calendar quarter.\8\ Newly listed option classes are excluded from the calculation of the monthly Market Maker Trading Permit fee until the calendar quarter following their listing, at which time the newly listed option classes will be included in both the per class count and the percentage of total national average daily volume. --------------------------------------------------------------------------- \6\ There is no limit on the number of Trading Permits that may be issued by the Exchange; however, the Exchange has the authority to limit or decrease the number of Trading Permits it has determined to issue provided it complies with the provisions set forth in Rule 200(a) and Section 6(c)(4) of the Exchange Act. See 15 U.S.C. 78(f)(c)(4). For a complete description of MIAX Options Trading Permits, see MIAX Rule 200. \7\ See the Fee Schedule, Section 3(b). \8\ The Exchange will use the following formula to calculate the percentage of total national average daily volume that the Market Maker assignment is for purposes of the Market Maker trading permit fee for a given month: Market Maker assignment percentage of national average daily volume = [total volume during the prior calendar quarter in a class in which the Market Maker was assigned]/[total national volume in classes listed on MIAX Options in the prior calendar quarter]. --------------------------------------------------------------------------- The Exchange assesses Market Makers the monthly Trading Permit fee based on the greatest number of classes listed on MIAX Options that the Market Maker was assigned to quote on any given day within a calendar month and the applicable fee rate that is the lesser of either the per class basis or percentage of total national average daily volume measurement. Members receiving Trading Permits during the month will be assessed Trading Permit fees according to this schedule, except that the calculation of the Trading Permit fee for the first month in which the Trading Permit is issued will be pro-rated based on the number of trading days occurring after the date on which the Trading Permit was in effect during that first month divided by the total number of trading days in such month multiplied by the monthly rate. The Exchange recently modified the Trading Permit fees to provide lower fees to Market Makers that execute less volume than a certain volume threshold in certain Trading Permit Tier levels.\9\ In particular, for Market Makers that fall within the following Trading Permit fee levels, which represent the 3rd or 4th levels of the fee table: (i) Market Maker Assignments in up to 100 option classes or up to 50% of option classes by volume, or (ii) Market Maker Assignments in over 100 option classes or over 50% of option classes by volume up to all option classes listed on MIAX Options; and whose total monthly Market Maker executed volume during the relevant month is less than 0.075% of the total monthly executed volume reported by OCC in the market maker account type for MIAX-listed option classes for that month, the Exchange assesses a Trading Permit fee of $15,500 instead of the fee otherwise applicable to such level.\10\ --------------------------------------------------------------------------- \9\ See Securities Exchange Act Release No. 82868 (March 13, 2018), 83 FR 12063 (March 19, 2018) (SR-MIAX-2018-08). \10\ For example, if Market Maker 1 elects to quote the top 40 option classes which consist of 58% of the total national average daily volume in the prior calendar quarter, the Exchange would assess $12,000 to Market Maker 1 for the month which is the lesser of `up to 40 classes' and `over 50% of classes by volume up to all classes listed on MIAX.' If Market Maker 2 elects to quote the bottom 1000 option classes which consist of 10% of the total national average daily volume in the prior quarter, the Exchange would assess $7,000 to Market Maker 2 for the month which is the lesser of `over 100 classes' and `up to 20% of classes by volume.' --------------------------------------------------------------------------- The Exchange now proposes to further modify its Trading Permit fees by lowering the monthly Market Maker executed volume threshold requirement from less than 0.075% to less than 0.060% of total monthly executed volume reported by OCC in the Market Maker account type for MIAX-listed option classes for that month, and which fall within the 3rd or 4th levels of the fee table. Accordingly, the Exchange proposes for these Monthly Trading Permit Fee levels, if the Market Maker's total monthly executed volume during the relevant month is less than 0.060% of the total monthly executed volume reported by OCC in the Market Maker account type for MIAX-listed option classes for that month, then the fee will be $15,500 instead of the fee otherwise applicable to such level. This is a proposed change to the Trading Permit fees for Market Makers that fall within the 3rd or 4th levels of the fee table. The proposed adjustment to the threshold is based on an assessment of recent Market Maker volume trends on the Exchange. Specifically, the Exchange determined that, due to lower total monthly executed volume executed by certain larger-scale Market Makers, certain larger-scale Market Markers could potentially receive the lower fees, which lower fees were intended only to apply to smaller-scale Market Makers. Therefore, the Exchange [[Page 42180]] believes that it is reasonable, equitable, and not unfairly discriminatory to adjust the monthly Market Maker executed volume threshold requirement from less than 0.075% to less than 0.060% of total monthly executed volume reported by OCC in the Market Maker account type for MIAX-listed option classes for that month, so that such lower fees will continue to apply to only smaller-scale Market Makers. The Exchange believes that by continuing to offer lower fees to Market Makers that execute less volume than a certain volume threshold in certain Trading Permit Tier levels, the Exchange will retain and attract smaller-scale Market Makers, which are an integral component of the option industry marketplace, but have been decreasing in number in recent years, due to industry consolidation and lower market maker profitability. Since these smaller-scale Market Makers execute less volume overall, the Exchange believes it is reasonable and appropriate to offer such Market Makers (that are willing to quote the majority or entirety of the market) lower fees. Similarly, the Exchange also proposes to modify its MEI Port fees assessable to Market Makers. Currently, MIAX Options assesses monthly MEI Port fees on Market Makers based upon the number of classes or class volume accessed by the Market Maker. Market Makers are allocated two (2) Full Service MEI Ports \11\ and two (2) Limited Service MEI Ports per matching engine \12\ to which they connect. The Exchange currently assesses the following MEI Port fees: (a) $5,000 for Market Maker Assignments in up to 5 option classes or up to 10% of option classes by volume; (b) $10,000 for Market Maker Assignments in up to 10 option classes or up to 20% of option classes by volume; (c) $14,000 for Market Maker Assignments in up to 40 option classes or up to 35% of option classes by volume; (d) $17,500 for Market Maker Assignments in up to 100 option classes or up to 50% of option classes by volume; and (e) $20,500 for Market Maker Assignments in over 100 option classes or over 50% of option classes by volume up to all option classes listed on MIAX Options.\13\ The Exchange also currently charges $100 per month for each additional Limited Service MEI Port per matching engine for Market Makers over and above the two (2) Limited Service MEI Ports per matching engine that are allocated with the Full Service MEI Ports. The Full Service MEI Ports, Limited Service MEI Ports and the additional Limited Service MEI Ports all include access to the Exchange's Primary and Secondary data centers and its Disaster Recovery center. For the calculation of the monthly MEI Port fees that apply to Market Makers, the number of classes is defined as the greatest number of classes the Market Maker was assigned to quote in on any given day within the calendar month and the class volume percentage is based on the total national average daily volume in classes listed on MIAX Options in the prior calendar quarter.\14\ Newly listed option classes are excluded from the calculation of the monthly MEI Port fee until the calendar quarter following their listing, at which time the newly listed option classes will be included in both the per class count and the percentage of total national average daily volume. --------------------------------------------------------------------------- \11\ Full Service MEI Ports provide Market Makers with the ability to send Market Maker quotes, eQuotes, and quote purge messages to the MIAX Options System. Full Service MEI Ports are also capable of receiving administrative information. Market Makers are limited to two Full Service MEI Ports per matching engine. \12\ A ``matching engine'' is a part of the MIAX Options electronic system that processes options quotes and trades on a symbol-by-symbol basis. Some matching engines will process option classes with multiple root symbols, and other matching engines will be dedicated to one single option root symbol (for example, options on SPY will 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. \13\ See the Fee Schedule, Section 5(d)(ii). \14\ The Exchange will use the following formula to calculate the percentage of total national average daily volume that the Market Maker assignment is for purposes of the MEI Port fee for a given month: Market Maker assignment percentage of national average daily volume = [total volume during the prior calendar quarter in a class in which the Market Maker was assigned]/[total national volume in classes listed on MIAX Options in the prior calendar quarter]. --------------------------------------------------------------------------- The Exchange assesses Market Makers the monthly MEI Port fees based on the greatest number of classes listed on MIAX Options that the Market Maker was assigned to quote on any given day within a calendar month and the applicable fee rate that is the lesser of either the per class basis or percentage of total national average daily volume measurement. The Exchange recently modified the MEI Port fees to provide lower fees to Market Makers that execute less volume than a certain volume threshold in certain MEI Port fee levels.\15\ In particular, for Market Makers that fall within the following MEI Port fee levels, which represent the 4th or 5th levels of the fee table: Market Makers that have (i) Assignments in up to 100 option classes or up to 50% of option classes by volume, or (ii) Assignments in over 100 option classes or over 50% of option classes by volume up to all option classes listed on MIAX Options; and whose total monthly Market Maker executed volume during the relevant month is less than 0.075% of the total monthly executed volume reported by OCC in the market maker account type for MIAX-listed option classes for that month, the Exchange assesses a fee of $14,500 instead of the fee otherwise applicable to such level.\16\ --------------------------------------------------------------------------- \15\ See supra note 9. \16\ For example, if Market Maker 1 elects to quote the top 40 option classes which consist of 58% of the total national average daily volume in the prior calendar quarter, the Exchange would assess $14,000 to Market Maker 1 for the month which is the lesser of `up to 40 classes' and `over 50% of classes by volume up to all classes listed on MIAX.' If Market Maker 2 elects to quote the bottom 1000 option classes which consist of 10% of the total national average daily volume in the prior quarter, the Exchange would assess $5,000 to Market Maker 2 for the month which is the lesser of `over 100 classes' and `up to 10% of classes by volume.' --------------------------------------------------------------------------- The Exchange now proposes to further modify its MEI Port fees by lowering the monthly volume threshold requirement from less than 0.075% to less than 0.060% of total monthly Market Maker executed volume reported by OCC in the Market Maker account type for MIAX-listed option classes for that month, and which fall within the 4th or 5th levels of the fee table. Accordingly, the Exchange proposes for these MEI Port Fee levels, if the Market Maker's total monthly executed volume during the relevant month is less than 0.060% of the total monthly executed volume reported by OCC in the Market Maker account type for MIAX-listed option classes for that month, then the fee will be $14,500 instead of the fee otherwise applicable to such level. This is a proposed change to the MEI Port fees for Market Makers that fall within the 4th or 5th levels of the fee table. The proposed adjustment to the threshold is based on an assessment of recent Market Maker volume trends on the Exchange. Specifically, the Exchange determined that, due to lower total monthly executed volume executed by certain larger-scale Market Makers, certain larger-scale Market Markers could potentially receive the lower fees, which lower fees were intended only to apply to smaller-scale Market Makers. Therefore, the Exchange believes that it is reasonable, equitable, and not unfairly discriminatory to adjust the monthly Market Maker executed volume threshold requirement from less than 0.075% to less than 0.060% of total monthly executed volume reported by OCC in the Market Maker account type for MIAX-listed option classes for that month, so that such lower fees will continue to apply [[Page 42181]] to only smaller-scale Market Makers. The Exchange believes that by continuing to offer lower fees to Market Makers that execute less volume than a certain volume threshold in certain MEI Port fee levels, the Exchange will retain and attract smaller-scale Market Makers, which are an integral component of the option industry marketplace, but have been decreasing in number in recent years, due to industry consolidation and lower market maker profitability. Since these smaller-scale Market Makers execute less volume overall, the Exchange believes it is reasonable and appropriate to offer such Market Makers (that are willing to quote the majority or entirety of the market) lower fees. The Exchange also proposes to amend the list of MIAX Select Symbols contained in the Priority Customer Rebate Program of the Exchange's Fee Schedule to delete an obsolete reference. Specifically, the Exchange proposes to delete the symbol ``NQ'' associated with NQ Mobile Inc. The Exchange notes that, as a result of a recent corporate action, NQ changed its name, trading symbol, CUSIP, and business model. The company is now known as Link Motion Inc. (``LKM'').\17\ The Exchange determined not to replace NQ with LKM, for business reasons. Therefore, NQ should be removed from the list of MIAX Select Symbols. By removing NQ from the list of MIAX Select Symbols, it will help to ensure that there is no confusion amongst market participants and will clarify that LKM is not a MIAX Select Symbol. --------------------------------------------------------------------------- \17\ The change became effective on March 14, 2018. --------------------------------------------------------------------------- The Exchange initially filed the proposal on July 31, 2018 (SR- MIAX-2018-17). That filing was withdrawn and replaced with the current filing (SR-MIAX-2018-23). 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act \18\ in general, and furthers the objectives of Section 6(b)(4) and 6(b)(5) of the Act \19\ 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 \20\ 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. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78f(b). \19\ 15 U.S.C. 78f(b)(4)(5). \20\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed modification to the Trading Permit fees is consistent with Section 6(b)(4) of the Act in that it is reasonable, equitable and not unfairly discriminatory. The proposed modification to the Trading Permit fees is reasonable in that, by continuing to offer lower fees to Market Makers that execute less volume than a certain volume threshold in certain Trading Permit Tier levels, the Exchange will retain and attract smaller-scale Market Makers, which are an integral component of the option industry marketplace, but have been decreasing in number in recent years, due to industry consolidation and lower market maker profitability. Since these smaller-scale Market Makers execute less volume overall, the Exchange believes it is reasonable and appropriate to offer such Market Makers (that are willing to quote the majority or entirety of the market) lower fees. The Exchange also believes that its proposal is consistent with Section 6(b)(5) of the Act because it will be uniformly applied to all Market Makers that execute less volume on the Exchange, as determined and measured by a uniform, objective, quantitative volume amount. The Exchange notes that the proposed changes to Trading Permit fees apply only to the two highest tiers on the Fee Schedule. The Exchange believes that this is consistent with Section 6(b)(5) of the Act because it will allow for smaller-scale Market Makers, that execute less volume overall, to still be incentivized to quote the majority or entirety of the market, without paying the higher fees, which would be assessed to a Market Maker with a total monthly executed volume during the relevant month of greater than the proposed 0.060% of the total monthly executed volume reported by OCC in the market maker account type for MIAX-listed option classes for that month. The proposed Trading Permit fees are fair and equitable and not unreasonably discriminatory because they apply equally to all similarly situated Market Makers regardless of type and access to the Exchange is offered on terms that are not unfairly discriminatory. The Exchange also believes that the proposed modification to the Trading Permit fees is reasonable in that it is based on an assessment of recent Market Maker volume trends on the Exchange. Specifically, the Exchange determined that, due to lower total monthly executed volume executed by certain larger-scale Market Makers, certain larger-scale Market Markers could potentially receive the lower fees, which lower fees were intended only to apply to smaller-scale Market Makers. Therefore, the Exchange believes that it is reasonable, equitable, and not unfairly discriminatory to adjust the monthly Market Maker executed volume threshold requirement from less than 0.075% to less than 0.060% of total monthly executed volume reported by OCC in the Market Maker account type for MIAX-listed option classes for that month, so that such lower fees will continue to apply to only smaller-scale Market Makers. The Exchange believes that by continuing to offer lower fees to Market Makers that execute less volume than a certain volume threshold in certain Trading Permit Tier levels, the Exchange will retain and attract smaller-scale Market Makers, which are an integral component of the option industry marketplace, but have been decreasing in number in recent years, due to industry consolidation and lower market maker profitability. Since these smaller-scale Market Makers execute less volume overall, the Exchange believes it is reasonable and appropriate to offer such Market Makers (that are willing to quote the majority or entirety of the market) lower fees. The Exchange believes that the proposed modification to the MEI Port fees is consistent with Section 6(b)(4) of the Act in that it is reasonable, equitable and not unfairly discriminatory. The proposed modification to the MEI Port fees is reasonable in that, by continuing to offer lower fees to Market Makers that execute less volume than a certain volume threshold in certain MEI Port fee levels, the Exchange will retain and attract smaller-scale Market Makers, which are an integral component of the option industry marketplace, but have been decreasing in number in recent years, due to industry consolidation and lower market maker profitability. Since these smaller-scale Market Makers execute less volume overall, the Exchange believes it is reasonable and appropriate to offer such Market Makers (who are willing to quote the majority or entirety of the market) lower fees. The Exchange also believes that its proposal is consistent with Section 6(b)(5) of the Act because it will be uniformly applied to all Market Makers that execute less volume on the Exchange, as determined and measured by a uniform, objective, quantitative volume amount. The Exchange notes [[Page 42182]] that the proposed changes to MEI Port fees apply only to the two highest tiers of the Fee Schedule. The Exchange believes that this is consistent with Section 6(b)(5) of the Act because it will allow for smaller-scale Market Makers, that execute less volume overall, to still be incentivized to quote the majority or entirety of the market, without paying the higher fees, which would be assessed to a Market Maker with a total monthly executed volume during the relevant month of greater than the proposed 0.060% of the total monthly executed volume reported by OCC in the market maker account type for MIAX-listed option classes for that month. The proposed MEI Port fees are fair and equitable and not unreasonably discriminatory because they apply equally to all similarly situated Market Makers regardless of type and access to the Exchange is offered on terms that are not unfairly discriminatory. The Exchange also believes that the proposed modification to the MEI Port fees is reasonable in that it is based on an assessment of recent Market Maker volume trends on the Exchange. Specifically, the Exchange determined that, due to lower total monthly executed volume executed by certain larger-scale Market Makers, certain larger-scale Market Markers could potentially receive the lower fees, which lower fees were intended only to apply to smaller-scale Market Makers. Therefore, the Exchange believes that it is reasonable, equitable, and not unfairly discriminatory to adjust the monthly Market Maker executed volume threshold requirement from less than 0.075% to less than 0.060% of total monthly executed volume reported by OCC in the Market Maker account type for MIAX-listed option classes for that month, so that such lower fees will continue to apply to only smaller-scale Market Makers. The Exchange believes that by continuing to offer lower fees to Market Makers that execute less volume than a certain volume threshold in certain MEI Port fee levels, the Exchange will retain and attract smaller-scale Market Makers, which are an integral component of the option industry marketplace, but have been decreasing in number in recent years, due to industry consolidation and lower market maker profitability. Since these smaller-scale Market Makers execute less volume overall, the Exchange believes it is reasonable and appropriate to offer such Market Makers (that are willing to quote the majority or entirety of the market) lower fees. Furthermore, the proposal to delete the symbol NQ from the list of MIAX Select Symbols contained in the Priority Customer Rebate Program is consistent with Section 6(b)(4) of the Act because the proposed change will benefit investors by providing them an accurate, up-to-date list of MIAX Select Symbols contained in the Priority Customer Rebate Program on the Fee Schedule. The Exchange believes that the credit for transactions in the select symbols is reasonably designed because it continues to incentivize providers of Priority Customer order flow to send that Priority Customer order flow to the Exchange in order to receive a credit in a manner that enables the Exchange to improve its overall competitiveness and strengthen its market quality for all market participants. Additionally, the Exchange believes that its decision not to list the symbol LKM, which replaced NQ, is reasonably designed to increase the competitiveness of the Exchange with other options exchange in that the Exchange does not believe the symbol LKM should be included as a higher volume symbol in the MAIX Select Symbol program. The Exchange also believes that its proposal is consistent with Section 6(b)(5) of the Act because it will apply equally to all Priority Customer orders in the select symbols. All similarly situated Priority Customer orders in the select symbols are subject to the same rebate schedule, and access to the Exchange is offered on terms that are not unfairly discriminatory. In addition, the Program is equitable and not unfairly discriminatory because, while only Priority Customer order flow qualifies for the Program, an increase in Priority Customer order flow will bring greater volume and liquidity, which benefit all market participants by providing more trading opportunities and tighter spreads. 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 changes will increase both intermarket and intramarket competition by continuing to enable smaller-scale Market Makers that are willing to quote the entire marketplace (or a substantial amount of the entire marketplace) access to the Exchange at a lower fee. By continuing to offer lower fees to Market Makers that execute less volume than a certain volume threshold at certain fee levels, the Exchange believes that it will retain and attract smaller-scale Market Makers, which are an integral component of the option industry marketplace, but have been decreasing in number in recent years, due to industry consolidation and lower market maker profitability. Since these smaller-scale Market Makers execute less volume overall, the Exchange believes it is reasonable and appropriate to offer such Market Makers lower fees. The Exchange also believes that removing the symbol NQ from the MIAX Select Symbols and not replacing it with symbol LKM will not 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 will increase both intermarket and intramarket competition by providing investors an accurate, up-to-date list of MIAX Select Symbols contained in the Priority Customer Rebate Program on the Fee Schedule and by continuing to provide increased incentives only for higher volume symbols that the Exchange believes will increase the competitiveness of the Exchange with other options exchange that also offer increased incentives to higher volume symbols. 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 and to attract order flow to the Exchange. The Exchange believes that the proposed rule changes reflect this competitive environment because they modify the Exchange's fees in a manner that continues to encourage market participants to register as Market Makers on the Exchange, to provide liquidity and to attract order flow. 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. 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,\21\ and Rule 19b-4(f)(2) \22\ thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission [[Page 42183]] 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. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78s(b)(3)(A)(ii). \22\ 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 rule-comments@sec.gov. Please include File Number SR-MIAX-2018-23 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-2018-23. 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-2018-23, and should be submitted on or before September 10, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\23\ --------------------------------------------------------------------------- \23\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jill M. Peterson, Assistant Secretary. [FR Doc. 2018-17849 Filed 8-17-18; 8:45 am] BILLING CODE 8011-01-P
![42178 Federal Register / Vol. 83, No. 161 / Monday, August 20, 2018 / Notices
Exchange has not received any written Reference Room, 100 F Street NE, proposed rule change, disapprove the
comments from members or other Washington, DC 20549, on official proposed rule change, or institute
interested parties. business days between the hours of proceedings to determine whether the
10:00 a.m. and 3:00 p.m. Copies of the proposed rule change should be
III. Date of Effectiveness of the
filing also will be available for disapproved. The Commission is
Proposed Rule Change and Timing for
inspection and copying at the principal extending this 45-day time period. The
Commission Action
office of the Exchange. All comments Commission finds that it is appropriate
The foregoing rule change has become received will be posted without change. to designate a longer period within
effective pursuant to Section 19(b)(3)(A) Persons submitting comments are which to take action on the proposed
of the Act 17 and paragraph (f) of Rule cautioned that we do not redact or edit rule change so that it has sufficient time
19b–4 thereunder.18 At any time within personal identifying information from to consider the proposed rule change.
60 days of the filing of the proposed rule comment submissions. You should Accordingly, the Commission,
change, the Commission summarily may submit only information that you wish pursuant to Section 19(b)(2) of the Act,5
temporarily suspend such rule change if to make available publicly. All designates October 1, 2018, as the date
it appears to the Commission that such submissions should refer to File by which the Commission shall either
action is necessary or appropriate in the Number SR–CboeEDGX–2018–032 and approve or disapprove, or institute
public interest, for the protection of should be submitted on or before proceedings to determine whether to
investors, or otherwise in furtherance of September 10, 2018. disapprove, the proposed rule change
the purposes of the Act. (File No. SR–NYSEArca–2018–40).
For the Commission, by the Division of
IV. Solicitation of Comments Trading and Markets, pursuant to delegated For the Commission, by the Division of
authority.19 Trading and Markets, pursuant to delegated
Interested persons are invited to authority.6
Robert W. Errett,
submit written data, views, and Robert W. Errett,
Deputy Secretary.
arguments concerning the foregoing,
[FR Doc. 2018–17833 Filed 8–17–18; 8:45 am] Deputy Secretary.
including whether the proposed rule
BILLING CODE 8011–01–P [FR Doc. 2018–17831 Filed 8–17–18; 8:45 am]
change is consistent with the Act.
BILLING CODE 8011–01–P
Comments may be submitted by any of
the following methods:
SECURITIES AND EXCHANGE
Electronic Comments COMMISSION SECURITIES AND EXCHANGE
• Use the Commission’s internet COMMISSION
[Release No. 34–83844; File No. SR–
comment form (http://www.sec.gov/ NYSEArca–2018–40] [Release No. 34–83847; File No. SR–MIAX–
rules/sro.shtml); or 2018–23]
• Send an email to rule-comments@ Self-Regulatory Organizations; NYSE
sec.gov. Please include File Number SR– Arca, Inc.; Notice of Designation of a Self-Regulatory Organizations: Notice
CboeEDGX–2018–032 on the subject Longer Period for Commission Action of Filing and Immediate Effectiveness
line. on a Proposed Rule Change Regarding of a Proposed Rule Change by Miami
Investments of the REX BKCM ETF International Securities Exchange LLC
Paper Comments To Amend Its Fee Schedule
• Send paper comments in triplicate August 14, 2018.
On June 26, 2018, NYSE Arca, Inc. August 14, 2018.
to Secretary, Securities and Exchange
Commission, 100 F Street NE, (‘‘NYSE Arca’’) filed with the Securities Pursuant to the provisions of Section
Washington, DC 20549–1090. and Exchange Commission 19(b)(1) of the Securities Exchange Act
(‘‘Commission’’), pursuant to Section of 1934 (‘‘Act’’) 1 and Rule 19b–4
All submissions should refer to File thereunder,2 notice is hereby given that
19(b)(1) of the Securities Exchange Act
Number SR–CboeEDGX–2018–032. This on August 7, 2018, Miami International
of 1934 (‘‘Act’’) 1 and Rule 19b–4
file number should be included on the Securities Exchange LLC (‘‘MIAX
thereunder,2 a proposed rule change
subject line if email is used. To help the Options’’ or ‘‘Exchange’’) filed with the
relating to investments of the REX
Commission process and review your Securities and Exchange Commission
BKCM ETF. The proposed rule change
comments more efficiently, please use (‘‘Commission’’) a proposed rule change
was published for comment in the
only one method. The Commission will as described in Items I, II, and III below,
Federal Register on July 3, 2018.3 The
post all comments on the Commission’s which Items have been prepared by the
Commission has received no comments
internet website (http://www.sec.gov/ Exchange. The Commission is
on the proposed rule change.
rules/sro.shtml). Section 19(b)(2) of the Act 4 provides publishing this notice to solicit
Copies of the submission, all
that within 45 days of the publication of comments on the proposed rule change
subsequent amendments, all written
notice of the filing of a proposed rule from interested persons.
statements with respect to the proposed
change, or within such longer period up
rule change that are filed with the I. Self-Regulatory Organization’s
to 90 days as the Commission may
Commission, and all written Statement of the Terms of Substance of
designate if it finds such longer period
communications relating to the the Proposed Rule Change
to be appropriate and publishes its
proposed rule change between the The Exchange is filing a proposal to
reasons for so finding or as to which the
Commission and any person, other than amend the MIAX Options Fee Schedule
self-regulatory organization consents,
those that may be withheld from the (the ‘‘Fee Schedule’’).
daltland on DSKBBV9HB2PROD with NOTICES
the Commission shall either approve the
public in accordance with the The text of the proposed rule change
provisions of 5 U.S.C. 552, will be 19 17 CFR 200.30–3(a)(12). is available on the Exchange’s website at
available for website viewing and 1 15 U.S.C. 78s(b)(1).
printing in the Commission’s Public 2 17 CFR 240.19b–4. 5 Id.
3 See Securities Exchange Act Release No. 83546 6 17 CFR 200.30–3(a)(31).
17 15 U.S.C. 78s(b)(3)(A). (June 28, 2018), 83 FR 31214 (July 3, 2018). 1 15 U.S.C. 78s(b)(1).
18 17 CFR 240.19b–4(f). 4 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 83, No. 161 / Monday, August 20, 2018 / Notices 42179
http://www.miaxoptions.com/rule- Assignments in up to 40 option classes particular, for Market Makers that fall
filings, at MIAX’s principal office, and or up to 35% of option classes by within the following Trading Permit fee
at the Commission’s Public Reference volume; (iii) $17,000 for Market Maker levels, which represent the 3rd or 4th
Room. Assignments in up to 100 option classes levels of the fee table: (i) Market Maker
or up to 50% of option classes by Assignments in up to 100 option classes
II. Self-Regulatory Organization’s
volume; and (iv) $22,000.00 for Market or up to 50% of option classes by
Statement of the Purpose of, and
Maker Assignments in over 100 option volume, or (ii) Market Maker
Statutory Basis for, the Proposed Rule
classes or over 50% of option classes by Assignments in over 100 option classes
Change
volume up to all option classes listed on or over 50% of option classes by volume
In its filing with the Commission, the MIAX Options.7 For the calculation of up to all option classes listed on MIAX
Exchange included statements these monthly Trading Permit fees, the Options; and whose total monthly
concerning the purpose of and basis for number of classes is defined as the Market Maker executed volume during
the proposed rule change and discussed greatest number of classes the Market the relevant month is less than 0.075%
any comments it received on the Maker was assigned to quote in on any of the total monthly executed volume
proposed rule change. The text of these given day within the calendar month reported by OCC in the market maker
statements may be examined at the and the class volume percentage is account type for MIAX–listed option
places specified in Item IV below. The based on the total national average daily classes for that month, the Exchange
Exchange has prepared summaries, set volume in classes listed on MIAX assesses a Trading Permit fee of $15,500
forth in sections A, B, and C below, of Options in the prior calendar quarter.8 instead of the fee otherwise applicable
the most significant aspects of such Newly listed option classes are to such level.10
statements. excluded from the calculation of the The Exchange now proposes to
A. Self-Regulatory Organization’s monthly Market Maker Trading Permit further modify its Trading Permit fees
Statement of the Purpose of, and fee until the calendar quarter following by lowering the monthly Market Maker
Statutory Basis for, the Proposed Rule their listing, at which time the newly executed volume threshold requirement
Change listed option classes will be included in from less than 0.075% to less than
both the per class count and the 0.060% of total monthly executed
1. Purpose percentage of total national average volume reported by OCC in the Market
The Exchange proposes to amend the daily volume. Maker account type for MIAX–listed
Fee Schedule to modify certain aspects The Exchange assesses Market Makers option classes for that month, and
of the following fees that apply to MIAX the monthly Trading Permit fee based which fall within the 3rd or 4th levels
Options Market Makers: 3 (i) The on the greatest number of classes listed of the fee table. Accordingly, the
Monthly Trading Permit fees; and (ii) on MIAX Options that the Market Maker Exchange proposes for these Monthly
the MEI Port fees. The Exchange also was assigned to quote on any given day Trading Permit Fee levels, if the Market
proposes to amend the list of MIAX within a calendar month and the Maker’s total monthly executed volume
Select Symbols 4 contained in the applicable fee rate that is the lesser of during the relevant month is less than
Priority Customer Rebate Program 5 of either the per class basis or percentage 0.060% of the total monthly executed
the Exchange’s Fee Schedule to delete of total national average daily volume volume reported by OCC in the Market
an obsolete reference. measurement. Members receiving Maker account type for MIAX–listed
The Exchange issues Trading Permits Trading Permits during the month will option classes for that month, then the
that confer the ability to transact on the be assessed Trading Permit fees fee will be $15,500 instead of the fee
Exchange.6 Currently, the Exchange according to this schedule, except that otherwise applicable to such level. This
assesses the following monthly fees for the calculation of the Trading Permit fee is a proposed change to the Trading
MIAX Options Market Maker Trading for the first month in which the Trading Permit fees for Market Makers that fall
Permits: (i) $7,000 for Market Maker Permit is issued will be pro-rated based within the 3rd or 4th levels of the fee
Assignments in up to 10 option classes on the number of trading days occurring table.
or up to 20% of option classes by after the date on which the Trading The proposed adjustment to the
volume; (ii) $12,000 for Market Maker Permit was in effect during that first threshold is based on an assessment of
month divided by the total number of recent Market Maker volume trends on
3 The term ‘‘Market Makers’’ refers to ‘‘Lead
trading days in such month multiplied the Exchange. Specifically, the
Market Makers,’’ ‘‘Primary Lead Market Makers’’ by the monthly rate. Exchange determined that, due to lower
and ‘‘Registered Market Makers’’ collectively. See
Exchange Rule 100. The Exchange recently modified the total monthly executed volume
4 The term ‘‘MIAX Select Symbols’’ means Trading Permit fees to provide lower executed by certain larger-scale Market
options overlying AAL, AAPL, AIG, AMAT, AMD, fees to Market Makers that execute less Makers, certain larger-scale Market
AMZN, BA, BABA, BB, BIDU, BP, C, CAT, CBS, volume than a certain volume threshold Markers could potentially receive the
CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, lower fees, which lower fees were
GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC,
in certain Trading Permit Tier levels.9 In
IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, intended only to apply to smaller-scale
NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, 7 See the Fee Schedule, Section 3(b). Market Makers. Therefore, the Exchange
S, SPY, T, TSLA, USO, VALE, VXX, WBA, WFC, 8 The Exchange will use the following formula to
WMB, WY, X, XHB, XLE, XLF, XLP, XOM, and calculate the percentage of total national average 10 For example, if Market Maker 1 elects to quote
XOP. daily volume that the Market Maker assignment is the top 40 option classes which consist of 58% of
5 See Section 1(a)(iii) of the Fee Schedule for a for purposes of the Market Maker trading permit fee the total national average daily volume in the prior
complete description of the Program. for a given month: calendar quarter, the Exchange would assess
daltland on DSKBBV9HB2PROD with NOTICES
6 There is no limit on the number of Trading Market Maker assignment percentage of national $12,000 to Market Maker 1 for the month which is
Permits that may be issued by the Exchange; average daily volume = [total volume during the the lesser of ‘up to 40 classes’ and ‘over 50% of
however, the Exchange has the authority to limit or prior calendar quarter in a class in which the classes by volume up to all classes listed on MIAX.’
decrease the number of Trading Permits it has Market Maker was assigned]/[total national volume If Market Maker 2 elects to quote the bottom 1000
determined to issue provided it complies with the in classes listed on MIAX Options in the prior option classes which consist of 10% of the total
provisions set forth in Rule 200(a) and Section calendar quarter]. national average daily volume in the prior quarter,
6(c)(4) of the Exchange Act. See 15 U.S.C. 9 See Securities Exchange Act Release No. 82868 the Exchange would assess $7,000 to Market Maker
78(f)(c)(4). For a complete description of MIAX (March 13, 2018), 83 FR 12063 (March 19, 2018) 2 for the month which is the lesser of ‘over 100
Options Trading Permits, see MIAX Rule 200. (SR–MIAX–2018–08). classes’ and ‘up to 20% of classes by volume.’
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![42180 Federal Register / Vol. 83, No. 161 / Monday, August 20, 2018 / Notices
believes that it is reasonable, equitable, option classes or up to 50% of option 100 option classes or over 50% of
and not unfairly discriminatory to classes by volume; and (e) $20,500 for option classes by volume up to all
adjust the monthly Market Maker Market Maker Assignments in over 100 option classes listed on MIAX Options;
executed volume threshold requirement option classes or over 50% of option and whose total monthly Market Maker
from less than 0.075% to less than classes by volume up to all option executed volume during the relevant
0.060% of total monthly executed classes listed on MIAX Options.13 The month is less than 0.075% of the total
volume reported by OCC in the Market Exchange also currently charges $100 monthly executed volume reported by
Maker account type for MIAX–listed per month for each additional Limited OCC in the market maker account type
option classes for that month, so that Service MEI Port per matching engine for MIAX-listed option classes for that
such lower fees will continue to apply for Market Makers over and above the month, the Exchange assesses a fee of
to only smaller-scale Market Makers. two (2) Limited Service MEI Ports per $14,500 instead of the fee otherwise
The Exchange believes that by matching engine that are allocated with applicable to such level.16
continuing to offer lower fees to Market the Full Service MEI Ports. The Full The Exchange now proposes to
Makers that execute less volume than a Service MEI Ports, Limited Service MEI further modify its MEI Port fees by
certain volume threshold in certain Ports and the additional Limited Service lowering the monthly volume threshold
Trading Permit Tier levels, the MEI Ports all include access to the requirement from less than 0.075% to
Exchange will retain and attract smaller- Exchange’s Primary and Secondary data less than 0.060% of total monthly
scale Market Makers, which are an centers and its Disaster Recovery center. Market Maker executed volume reported
integral component of the option For the calculation of the monthly MEI by OCC in the Market Maker account
industry marketplace, but have been Port fees that apply to Market Makers, type for MIAX-listed option classes for
decreasing in number in recent years, the number of classes is defined as the that month, and which fall within the
due to industry consolidation and lower greatest number of classes the Market 4th or 5th levels of the fee table.
market maker profitability. Since these Maker was assigned to quote in on any Accordingly, the Exchange proposes for
smaller-scale Market Makers execute given day within the calendar month these MEI Port Fee levels, if the Market
less volume overall, the Exchange and the class volume percentage is Maker’s total monthly executed volume
believes it is reasonable and appropriate based on the total national average daily during the relevant month is less than
to offer such Market Makers (that are volume in classes listed on MIAX 0.060% of the total monthly executed
willing to quote the majority or entirety Options in the prior calendar quarter.14 volume reported by OCC in the Market
of the market) lower fees. Newly listed option classes are Maker account type for MIAX-listed
Similarly, the Exchange also proposes excluded from the calculation of the option classes for that month, then the
to modify its MEI Port fees assessable to monthly MEI Port fee until the calendar fee will be $14,500 instead of the fee
Market Makers. Currently, MIAX quarter following their listing, at which otherwise applicable to such level. This
Options assesses monthly MEI Port fees time the newly listed option classes will is a proposed change to the MEI Port
on Market Makers based upon the be included in both the per class count fees for Market Makers that fall within
number of classes or class volume and the percentage of total national the 4th or 5th levels of the fee table.
accessed by the Market Maker. Market average daily volume. The proposed adjustment to the
Makers are allocated two (2) Full The Exchange assesses Market Makers threshold is based on an assessment of
Service MEI Ports 11 and two (2) Limited the monthly MEI Port fees based on the recent Market Maker volume trends on
Service MEI Ports per matching greatest number of classes listed on the Exchange. Specifically, the
engine 12 to which they connect. The MIAX Options that the Market Maker Exchange determined that, due to lower
Exchange currently assesses the was assigned to quote on any given day total monthly executed volume
following MEI Port fees: (a) $5,000 for within a calendar month and the executed by certain larger-scale Market
Market Maker Assignments in up to 5 applicable fee rate that is the lesser of Makers, certain larger-scale Market
option classes or up to 10% of option either the per class basis or percentage Markers could potentially receive the
classes by volume; (b) $10,000 for of total national average daily volume lower fees, which lower fees were
Market Maker Assignments in up to 10 measurement. intended only to apply to smaller-scale
option classes or up to 20% of option The Exchange recently modified the Market Makers. Therefore, the Exchange
classes by volume; (c) $14,000 for MEI Port fees to provide lower fees to believes that it is reasonable, equitable,
Market Maker Assignments in up to 40 Market Makers that execute less volume and not unfairly discriminatory to
option classes or up to 35% of option than a certain volume threshold in adjust the monthly Market Maker
classes by volume; (d) $17,500 for certain MEI Port fee levels.15 In executed volume threshold requirement
Market Maker Assignments in up to 100 particular, for Market Makers that fall from less than 0.075% to less than
within the following MEI Port fee levels, 0.060% of total monthly executed
11 Full Service MEI Ports provide Market Makers which represent the 4th or 5th levels of volume reported by OCC in the Market
with the ability to send Market Maker quotes, the fee table: Market Makers that have Maker account type for MIAX-listed
eQuotes, and quote purge messages to the MIAX (i) Assignments in up to 100 option option classes for that month, so that
Options System. Full Service MEI Ports are also classes or up to 50% of option classes
capable of receiving administrative information. such lower fees will continue to apply
Market Makers are limited to two Full Service MEI
by volume, or (ii) Assignments in over
Ports per matching engine. 16 For example, if Market Maker 1 elects to quote
12 A ‘‘matching engine’’ is a part of the MIAX 13 See the Fee Schedule, Section 5(d)(ii). the top 40 option classes which consist of 58% of
14 The Exchange will use the following formula to
Options electronic system that processes options the total national average daily volume in the prior
quotes and trades on a symbol-by-symbol basis. calculate the percentage of total national average calendar quarter, the Exchange would assess
daltland on DSKBBV9HB2PROD with NOTICES
Some matching engines will process option classes daily volume that the Market Maker assignment is $14,000 to Market Maker 1 for the month which is
with multiple root symbols, and other matching for purposes of the MEI Port fee for a given month: the lesser of ‘up to 40 classes’ and ‘over 50% of
engines will be dedicated to one single option root Market Maker assignment percentage of national classes by volume up to all classes listed on MIAX.’
symbol (for example, options on SPY will be average daily volume = [total volume during the If Market Maker 2 elects to quote the bottom 1000
processed by one single matching engine that is prior calendar quarter in a class in which the option classes which consist of 10% of the total
dedicated only to SPY). A particular root symbol Market Maker was assigned]/[total national volume national average daily volume in the prior quarter,
may only be assigned to a single designated in classes listed on MIAX Options in the prior the Exchange would assess $5,000 to Market Maker
matching engine. A particular root symbol may not calendar quarter]. 2 for the month which is the lesser of ‘over 100
be assigned to multiple matching engines. 15 See supra note 9. classes’ and ‘up to 10% of classes by volume.’
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![Federal Register / Vol. 83, No. 161 / Monday, August 20, 2018 / Notices 42183
summarily may temporarily suspend submit only information that you wish the places specified in Item IV below.
such rule change if it appears to the to make available publicly. All The Exchange has prepared summaries,
Commission that such action is submissions should refer to File set forth in sections A, B, and C below,
necessary or appropriate in the public Number SR–MIAX–2018–23, and of the most significant parts of such
interest, for the protection of investors, should be submitted on or before statements.
or otherwise in furtherance of the September 10, 2018. A. Self-Regulatory Organization’s
purposes of the Act. If the Commission For the Commission, by the Division of Statement of the Purpose of, and the
takes such action, the Commission shall Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
institute proceedings to determine authority.23 Change
whether the proposed rule should be Jill M. Peterson,
approved or disapproved. Assistant Secretary. 1. Purpose
IV. Solicitation of Comments [FR Doc. 2018–17849 Filed 8–17–18; 8:45 am] The purpose of this filing is to amend
BILLING CODE 8011–01–P Rules 6.4–O (Series of Options Open for
Interested persons are invited to
Trading) and 6.4A–O (Select Provisions
submit written data, views, and
of the Options Listing Procedures
arguments concerning the foregoing,
SECURITIES AND EXCHANGE Plan)—or OLPP—to conform to recently
including whether the proposed rule
COMMISSION approved changes to the OLPP.4
change is consistent with the Act. The Exchange, which is one of the
Comments may be submitted by any of [Release No. 34–83837; File No. SR–
Participant Exchanges 5 to the OLPP,
the following methods: NYSEArca–2018–59]
currently has rules that are designed to
Electronic Comments Self-Regulatory Organizations; NYSE incorporate the requirements of the
• Use the Commission’s internet Arca, Inc.; Notice of Filing and OLPP. All Participant Exchanges have
comment form (http://www.sec.gov/ Immediate Effectiveness of Proposed similar such (essentially uniform) rules
rules/sro.shtml); or Rule Change To Amend Rules 6.4–O to ensure consistency and compliance
• Send an email to rule-comments@ and 6.4A–O with the OLPP. The Exchange proposes
sec.gov. Please include File Number SR– to modify such rules to reflect the recent
August 14, 2018. updates as described below.
MIAX–2018–23 on the subject line.
Pursuant to Section 19(b)(1) 1 of the
Paper Comments Addition of Long-Term Equity Options
Securities Exchange Act of 1934
(‘‘LEAPS’’)
• Send paper comments in triplicate (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
to Secretary, Securities and Exchange notice is hereby given that, on August First, the OLPP has been amended to
Commission, 100 F Street NE, 3, 2018, NYSE Arca, Inc. (‘‘Exchange’’ or change the earliest date on which new
Washington, DC 20549–1090. ‘‘NYSE Arca’’) filed with the Securities January LEAPS on equity options,
and Exchange Commission options on Exchange Traded Funds
All submissions should refer to File
(‘‘Commission’’) the proposed rule (‘‘ETF’’), or options on Trust Issued
Number SR–MIAX–2018–23. This file
change as described in Items I and II Receipts (‘‘TIR’’) may be added to a
number should be included on the
below, which Items have been prepared single date (from three separate
subject line if email is used. To help the
by the self-regulatory organization. The months).6 As noted in the OLPP Notice,
Commission process and review your
Commission is publishing this notice to in the past there were operational
comments more efficiently, please use
solicit comments on the proposed rule concerns related to adding new January
only one method. The Commission will
change from interested persons. LEAPs series for all options classes on
post all comments on the Commission’s
which LEAPs were listed on a single
internet website (http://www.sec.gov/ I. Self-Regulatory Organization’s trading day.7 And, the addition of new
rules/sro.shtml). Copies of the Statement of the Terms of Substance of series in a pre-electronic trading
submission, all subsequent the Proposed Rule Change environment was a manual process. To
amendments, all written statements
The Exchange proposes to amend
with respect to the proposed rule 4 See Securities Exchange Act Release Nos. 82235
Rules 6.4–O and 6.4A–O. The proposed
change that are filed with the (December 7, 2017), 82 FR 58668 (December 13,
rule change is available on the
Commission, and all written 2017) (order approving the Fourth Amendment to
Exchange’s website at www.nyse.com, at the OLPP); 81893 (October 18, 2017), 82 FR 49249
communications relating to the
the principal office of the Exchange, and (‘‘OLPP Notice’’).
proposed rule change between the
at the Commission’s Public Reference 5 In addition to the Exchange, the ‘‘Participant
Commission and any person, other than Exchanges’’ are: Chicago Board Options Exchange,
Room.
those that may be withheld from the Incorporated (now known as Cboe Exchange, Inc.),
public in accordance with the II. Self-Regulatory Organization’s on behalf of the BATS Exchange, Inc. (now known
as Cboe BZX Exchange, Inc.); Box Options
provisions of 5 U.S.C. 552, will be Statement of the Purpose of, and Exchange, LLC; C2 Exchange, Incorporated (now
available for website viewing and Statutory Basis for, the Proposed Rule known as Cboe C2 Exchange, Inc.); EDGX Exchange,
printing in the Commission’s Public Change Inc. (now known as Cboe EDGX Exchange, Inc.);
Reference Room, 100 F Street NE, Miami International Securities Exchange, LLC;
In its filing with the Commission, the MIAX PEARL, LLC; Nasdaq BX, Inc.; Nasdaq
Washington, DC 20549 on official self-regulatory organization included GEMX, LLC; Nasdaq ISE, LLC; Nasdaq MRX, LLC;
business days between the hours of statements concerning the purpose of, Nasdaq Options Market, LLC; Nasdaq PHLX, LLC;
10:00 a.m. and 3:00 p.m. Copies of the and basis for, the proposed rule change
and NYSE American, LLC.
6 The Exchange proposes to modify Rule 6.4–O(d)
filing also will be available for and discussed any comments it received
daltland on DSKBBV9HB2PROD with NOTICES
to include the title Long-Term Equity Option Series
inspection and copying at the principal on the proposed rule change. The text (LEAPS), to consolidate LEAPS requirements into
office of the Exchange. All comments of those statements may be examined at one paragraph, and to delete extraneous references
received will be posted without change. to LEAPS in current paragraphs (d) and (e) to Rule
Persons submitting comments are 6.4–O. See proposed Rule 6.4–O(d). Consistent with
23 17 CFR 200.30–3(a)(12). this change, the Exchange also proposes to retitle
cautioned that we do not redact or edit 1 15 U.S.C. 78s(b)(1). current paragraph (f) as (e). See proposed Rule 6.4–
personal identifying information from 2 15 U.S.C. 78a. O(f).
comment submissions. You should 3 17 CFR 240.19b–4. 7 See supra n. 4, 82 FR 49249, at 49249.
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Document Created: 2018-08-18 01:28:31
Document Modified: 2018-08-18 01:28:31
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 42178 |
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