83 FR 55776 - Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 515A, MIAX Price Improvement Mechanism (“PRIME”) and PRIME Solicitation Mechanism, and Rule 518, Complex Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 216 (November 7, 2018)
Federal Register Volume 83, Issue 216 (November 7, 2018)
| Page Range | 55776-55780 | |
| FR Document | 2018-24307 |
[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)] [Notices] [Pages 55776-55780] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-24307] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84519; File No. SR-MIAX-2018-27] Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 515A, MIAX Price Improvement Mechanism (``PRIME'') and PRIME Solicitation Mechanism, and Rule 518, Complex Orders November 1, 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 October 24, 2018, Miami International Securities Exchange, LLC (``MIAX Options'' or the ``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 Rule 515A, MIAX Price Improvement Mechanism (``PRIME'') and PRIME Solicitation Mechanism, and Rule 518, Complex Orders [sic] The text of the proposed rule change is available on the Exchange's website at http://www.miaxoptions.com/rule-filings/ at MIAX Options' 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 Rule 515A, MIAX Price Improvement Mechanism (``PRIME'') and PRIME Solicitation Mechanism, Interpretations and Policies .12, to clarify and organize existing rule text for ease of reference and to adopt new rule text to describe additional scenarios which cause a cPRIME Auction \3\ to terminate early. The Exchange also proposes to amend Rule 518, Interpretations and Policies .05(f), to add additional detail pertaining to the operation of the Complex MIAX Price Collar (``MPC''), specifically to adopt new rule text for the use of a Temporary MIAX Price Collar (``TMPC'') during a cPRIME Auction or Complex Auction \4\ in the limited instance when an MPC has not been assigned. The Exchange notes that its proposal does not introduce any new functionality and is designed to codify existing functionality to add additional detail and clarity to the Exchange's rules. --------------------------------------------------------------------------- \3\ Members may use PRIME to execute complex orders at a net price. ``cPRIME'' is the process by which a Member may electronically submit a cPRIME Order (as defined in Rule 518(b)(7)) it represents as agent (a ``cPRIME Agency Order'') against principal or solicited interest for execution (a ``cPRIME Auction''). See Exchange Rule 515A, Interpretations and Policies .12(a). \4\ See Exchange Rule 518(d). --------------------------------------------------------------------------- The Exchange proposes to amend Rule 515A, Interpretations and Policies .12, PRIME for Complex Orders. The current rule provides that, ``. . . the provisions of Rule 515A(a) . . . shall be applicable to the trading of complex orders (as defined in Rule 518) on PRIME. The Exchange will determine, on a class-by-class basis, the option classes in which complex orders are available for trading on PRIME on the Exchange, and will announce such classes to Members \5\ via Regulatory Circular.'' The Exchange now proposes to replace the word ``on'' which precedes ``PRIME'' with the phrase ``in the'' to more accurately describe Exchange functionality and maintain consistency with how the functionality is described in other areas of the rule.\6\ --------------------------------------------------------------------------- \5\ 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. \6\ See Exchange Rule 515A.01, 515A.03, 515A.04, and 515A.05, which references usage of ``the PRIME.'' --------------------------------------------------------------------------- The Exchange also proposes to amend Rule 515A, Interpretations and Policies .12(d), to organize the rule for clarity [[Page 55777]] and ease of reference and to codify two additional scenarios to new proposed subsections (d)(vi) and (d)(vii) describing conditions which will terminate a cPRIME Auction. Specifically, the Exchange proposes to consolidate current subsection (d)(v) and current subsection (d)(vi) into new subsection (d)(v). Current subsection (d)(v) provides that a cPRIME Auction will terminate if, ``a simple order or quote in a component of the strategy on the same side of the market as the cPRIME Agency Order locks or crosses the NBBO \7\ for such component.'' Current subsection (d)(vi) similarly provides that a cPRIME Auction will terminate if, ``a simple order or quote in a component of the strategy on the opposite side of the market as the cPRIME Agency Order: (A) locks or crosses the NBBO for such component. . . .'' --------------------------------------------------------------------------- \7\ The term ``NBBO'' means the national best bid or offer as calculated by the Exchange based on market information received by the Exchange from OPRA. See Exchange Rule 100. --------------------------------------------------------------------------- The Exchange now proposes to combine subsection (d)(v) and (d)(vi) into a single rule under new subsection (d)(v) that provides that a cPRIME Auction will terminate if, ``a simple order or quote in a component of the strategy on either side of the market as the cPRIME Agency Order locks or crosses the NBBO for such component;''. The proposed change simplifies the rule text and clarifies two similar scenarios that will terminate a cPRIME Auction when interest is received on either side of the market as the cPRIME Agency Order. The Exchange believes that the proposed changes promote the protection of investors and the public interest by improving the accuracy and precision of the Exchange's rules. Additionally, the Exchange proposes to adopt new subsections (d)(vi) and (d)(vii) to include additional scenarios that will cause a cPRIME Auction to terminate when interest is received on the same or opposite side of the market, respectively, as the cPRIME Agency Order. Specifically, proposed subsection (d)(vi) will provide that a cPRIME Auction shall conclude at the earlier of the end of the RFR period,\8\ or when, ``a simple order or quote in a component of the strategy, eligible to rest on the Simple Order Book,\9\ is received on the same side of the market as the cPRIME Agency Order and causes the icMBBO \10\ to lock or cross the best price opposite the cPRIME Agency Order;'' This provision ensures that a cPRIME Agency Order will always receive the best price \11\ on the Exchange while simultaneously preserving the integrity of the simple market by preventing orders executed in a cPRIME Auction from possibly trading through the Exchange's simple market. --------------------------------------------------------------------------- \8\ See Exchange Rule 515A.12(d)(i). \9\ The term ``Simple Order Book'' is the Exchange's regular electronic book of orders and quotes. See Exchange Rule 518(a)(15). \10\ The term ``icMBBO'' means the Implied Complex MIAX Best Bid or Offer. The icMBBO is a calculation that uses the best price from the Simple Order Book for each component of a complex strategy including displayed and non-displayed trading interest. See Exchange Rule 518(a)(11). \11\ The best price for an Agency Order to buy (sell) is the lowest offer (highest bid) on the Exchange, comprised of all available interest. --------------------------------------------------------------------------- An example of this scenario is illustrated below. Example 1--A Simple Order or Quote on the Same Side as the Agency Order Causes the icMBBO to Equal the Best Price Opposite the Agency Order MIAX--LMM \12\ Mar 50 Call 5.80-6.30 (10x10) --------------------------------------------------------------------------- \12\ The term ``Lead Market Maker'' means a Member registered with the Exchange for the purposes of making markets in securities traded on the Exchange and that is vested with the rights and responsibilities specified in Chapter VI of the Exchange's Rules with respect to Lead Market Makers. See Exchange Rule 100. --------------------------------------------------------------------------- MIAX--LMM Mar 55 Call 2.90-3.30 (10x10) Strategy: Buy 1 Mar 50 Call, Sell 1 Mar 55 Call. The icMBBO is 2.50 debit bid and 3.40 credit offer. The Exchange receives a cPRIME Order with the cPRIME Agency Order representing the purchase of the Strategy at a net debit of 3.00, 500 times. (Auto-match is not enabled and there are no orders for the Strategy on the Strategy Book.) \13\ --------------------------------------------------------------------------- \13\ The term ``Strategy Book'' is the Exchange's electronic book of complex orders and complex quotes. See Exchange Rule 518(a)(17). --------------------------------------------------------------------------- Since the order price is at least $0.01 better than (inside) the icMBBO and the best net price of any order for the Strategy on the Strategy Book, a cPRIME Auction can begin. A Request for Responses (``RFR'') is broadcast to all subscribers and the RFR period is started. The following responses are received:@50 milliseconds BD1 response, cAOC Order \14\ @2.95 credit sell of 100 arrives --------------------------------------------------------------------------- \14\ A Complex Auction-or-Cancel or ``cAOC'' order is a complex limit order used to provide liquidity during a specific Complex Auction with a time in force that corresponds with that event. cAOC orders are not displayed to any market participant, and are not eligible for trading outside of the event. See Exchange Rule 518(b)(3). --------------------------------------------------------------------------- @70 milliseconds MM1 response, cAOC eQuote \15\ @2.98 credit sell of 500 arrives --------------------------------------------------------------------------- \15\ A ``Complex Auction or Cancel eQuote'' or ``cAOC eQuote,'' which is an eQuote submitted by a Market Maker that is used to provide liquidity during a specific Complex Auction with a time in force that corresponds with the duration of a Complex Auction. See Exchange Rule 518.02(c)(1). The cPRIME Auction process will continue until the Response Time Interval \16\ ends or an event eligible to cause the cPRIME Auction to end sooner occurs. --------------------------------------------------------------------------- \16\ The ``Response Time Interval'' means the period of time during which responses to the RFR may be entered. See Exchange Rule 518(d)(3). @85 milliseconds a simple order bid to pay 6.25 for 10 MAR --------------------------------------------------------------------------- 50 Calls arrives The icMBBO is now 2.95 debit bid and 3.40 credit offer. Since the bid side of the icMBBO is now equal to the best price opposite the Agency Order [BD1 response, 2.95 credit sell of 100], the cPRIME Auction is concluded prior to the end of the Response Time Interval. The cPRIME Auction process will trade the cPRIME Agency Order with the best priced responses. The cPRIME Agency order will be filled as follows: \17\ --------------------------------------------------------------------------- \17\ See Exchange Rule 515A(a)(2)(iii). The cPRIME Agency Order buys 100 from BD1 @2.95 The cPRIME Agency Order buys 400 from MM1 @2.98 Similarly, proposed subsection (d)(vii) will provide that a cPRIME Auction shall conclude at the earlier of the end of the RFR period or if, ``a simple order or quote in a component of the strategy, eligible to rest on the Simple Order Book, is received on the opposite side of the market from the cPRIME Agency Order and Order Book and causes the icMBBO to lock or cross the initiating price.'' This provision ensures that a cPRIME Agency Order will always receive the best price on the Exchange while simultaneously preserving the integrity of the simple market by preventing orders executed in a cPRIME Auction from possibly trading through the Exchange's simple market. An example of this scenario is illustrated below. Example 2--A Simple Order or Quote on the Opposite Side From the Agency Order Causes the icMBBO to Equal the Initiating Price MIAX--LMM Mar 50 Call 5.80-6.30 (10x10) MIAX--LMM Mar 55 Call 2.90-3.30 (10x10) Strategy: Buy 1 Mar 50 Call, Sell 1 Mar 55 Call. The icMBBO is 2.50 debit bid and 3.40 credit offer. The Exchange receives a cPRIME Order with the cPRIME Agency Order representing the purchase of the Strategy at a net debit of 3.00, 500 times. (Auto-match is not enabled and there are no orders for the Strategy on the Strategy Book.) Since the order price is at least $0.01 better than (inside) the icMBBO and the best net price of any order for the Strategy on the Strategy Book, a cPRIME Auction can begin. An RFR is broadcast to all subscribers and the RFR period is started. The following responses are received: @40 milliseconds BD1 response, cAOC Order @2.95 credit sell of 100 arrives [[Page 55778]] @50 milliseconds MM1 response, cAOC eQuote @2.98 credit sell of 500 arrives The cPRIME Auction process will continue until the Response Time Interval ends or an event eligible to cause the cPRIME Auction to end sooner occurs. @75 milliseconds a simple order offer to sell 10 MAR 50 Calls @5.90 arrives The icMBBO is now 2.50 debit bid and 3.00 credit offer. Since the offer side of the icMBBO is now equal to the initiating price, the cPRIME Auction is concluded prior to the end of the Response Time Interval. The cPRIME Auction process will trade the cPRIME Agency Order with the best priced responses. The cPRIME Agency order will be filled as follows: The cPRIME Agency Order buys 100 from BD1 @2.95 The cPRIME Agency Order buys 400 from MM1 @2.98 The Exchange believes that terminating a cPRIME Auction when these conditions are present ensures that the execution of the cPRIME Agency Order improves the best price on the Exchange at the time of receipt, and that there is no interference between the simple and complex markets. (The System will reject cPRIME Agency Orders submitted with an initiating price that is equal to or worse than (outside) the icMBBO or any other complex orders on the Strategy Book.) \18\ This provision ensures that a cPRIME Agency Order will always receive the best price on the Exchange while simultaneously preserving the integrity of the simple market by preventing orders executed in a cPRIME Auction from possibly trading through the Exchange's simple market. The Exchange believes that including these scenarios in the rules will provide additional detail concerning the operation of cPRIME Auctions and the conditions which will terminate a cPRIME Auction. The Exchange believes that the proposed changes will provide greater clarity to Members and the public regarding the Exchange's Rules, and it is in the public interest for rules to be accurate and concise so as to minimize the potential for confusion. --------------------------------------------------------------------------- \18\ See Exchange Rule 515 A, Interpretations and Policies .12(a)(i). --------------------------------------------------------------------------- The Exchange also proposes to amend Rule 518, Interpretations and Policies .05, to add additional detail to the rule regarding the establishment of the MIAX Price Collar (``MPC'') under various circumstances. The MPC is a price protection feature designed to help maintain a fair and orderly market by helping to mitigate the potential risk of executions at prices that are extreme and potentially erroneous. The MPC prevents complex orders from automatically executing at potentially erroneous prices by establishing a price range outside of which a complex order will not be executed. The Exchange now proposes to amend Rule 518, Interpretations and Policies .05, by removing current subsection (f)(3) and replacing it with new proposed subsections (f)(3), (f)(4) and (f)(5), current subsection (f)(4) will remain intact and become new subsection (f)(6), and current subsection (f)(5) will remain intact and become new subsection (f)(7). New subsection (f)(3) will provide that, ``[t]he MPC Price is established: (i) Upon receipt of the complex order or eQuote during free trading, or (ii) if the complex order or eQuote is not received during free trading, at the opening (or reopening following a halt) of trading in the complex strategy; or (iii) upon evaluation of the Strategy Book by the System when a wide market condition, as described in Interpretations and Policies .05(e)(1) of this Rule, no longer exists.'' \19\ --------------------------------------------------------------------------- \19\ The Exchange notes that if wide market conditions exist (any individual option component of a complex strategy has a displayed MBBO quote width that is wider than the permissible simple market quote width) when an order is received, an MPC will not be calculated until the wide market conditions are resolved. See Exchange Rule 518.05(e)(1). --------------------------------------------------------------------------- New subsection (f)(5) will provide that, ``[a] Temporary MPC Price (`TMPC Price') is established solely for use during a Complex Auction (as defined in Rule 518(d)) or a cPRIME Auction (as defined in Rule 515A, Interpretations and Policies .12) for (i) any complex order resting on the Strategy Book that does not have an MPC assigned and is eligible to participate in a Complex Auction or a cPRIME Auction in that strategy; or (ii) any complex order or eQuote received during a cPRIME Auction \20\ if a wide market condition existed in a component of the strategy at the start of the cPRIME Auction. The TMPC Price shall be the auction start price \21\ (the auction start price of a cPRIME Agency Order for a cPRIME Auction is defined in Rule 515A.12(a)(i) and the auction start price for a Complex Auction is defined in Rule 518(d)(1)) plus (minus) the MPC Setting \22\ if the order is a buy (sell). If the complex order or eQuote eligible to participate in the Complex Auction or cPRIME Auction is priced more aggressively than the TMPC Price (i.e., the complex order or eQuote price is greater than the TMPC Price for a buy order, or the complex order or eQuote price is lower than the TMPC Price for a sell order) the complex order or eQuote may participate in the auction but will not trade through its TMPC Price.'' The minimum MPC Setting is $0.00 and the maximum MPC Setting is $1.00, as determined by the Exchange and communicated to Members via Regulatory Circular.\23\ A TMPC Price will be calculated for use during the length of the auction for any complex order resting on the Strategy Book that does not have an MPC assigned and is eligible to participate in a Complex Auction or cPRIME Auction in that strategy, or any complex order or eQuote received during a cPRIME Auction if a wide market condition existed in a component of the strategy at the start of the cPRIME Auction. --------------------------------------------------------------------------- \20\ The Exchange notes that if a wide market condition exists for a component of a complex strategy, trading in the strategy will be suspended, except as otherwise set forth in Exchange Rule 518.05(e)(1)(iii), which states that a wide market condition shall have no impact on the trading of cPRIME Orders and processing of cPRIME Auctions (including the processing of cPRIME Auction responses) pursuant to Rule 515A, Interpretations and Policies .12. See Exchange Rule 518.05(e)(1)(i). \21\ The auction start price for a cPRIME Auction is the initiating price of a cPRIME Agency Order as described in Exchange Rule 515A.12(a)(i). The auction start price for a Complex Auction is the initiating order's limit price as described in Exchange Rule 518(d)(1). \22\ See Exchange Rule 518.05(f). \23\ See Exchange Rule 518.05(f)(2). The Exchange notes the current setting is $.25. --------------------------------------------------------------------------- An example of the TMPC Price being established and used is provided below. Example 3--A TMPC Price Is Established for an Order or eQuote Received During a cPRIME Auction MIAX--LMM Mar 50 Call 1.00-6.50 (10x10) (Wide Market) MIAX--LMM Mar 55 Call 2.90-3.30 (10x10) ABBO--Mar 50 Call 6.00-6.30 (10x10) ABBO--Mar 55 Call 3.00-3.30 (10x10) NBBO--Mar 50 Call 6.00-6.30 (10x10) NBBO--Mar 55 Call 3.00-3.30 (10x20) Strategy: Buy 1 Mar 50 Call, Sell 1 Mar 55 Call The cNBBO is 2.70 debit bid and 3.30 credit offer The MPC Setting is $.25. The Exchange receives a cPRIME Order with the cPRIME Agency Order representing the purchase of the Strategy at a net debit of 3.00, 500 times. Auto-match is not enabled and there are no orders for the Strategy on the Strategy Book. A TMPC Price will be calculated for use during the length of the auction for any complex order or eQuote received during a cPRIME Auction if a wide market condition existed in a component of the strategy at the start of the cPRIME Auction. The TMPC Price will be the cPRIME auction start price +/- the MPC Setting. In this example the auction start price is $3.00. The TMPC Price is $2.75 ($3.00- $.25) for sell orders, and $3.25 ($3.00 + $.25) for buy orders. An RFR is broadcast to all subscribers and the RFR period is started. The following responses are received: [[Page 55779]] @ 20 milliseconds BD1 response, cAOC Order @ 2.95 credit sell of 200 arrives @ 30 milliseconds MM1 response, cAOC eQuote @ 2.90 credit sell of 200 arrives @ 50 milliseconds C1 response, cAOC Order @ 2.70 credit sell of 100 arrives The cPRIME Auction process will continue until the Response Time Interval ends. When the 100 millisecond Response Time Interval ends, the cPRIME Auction process will trade the Agency Order with the best priced responses. The Agency Order will be filled as follows: The cPRIME Agency Order buys 100 from C1 @ 2.75 The cPRIME Agency Order buys 200 from MM1 @ 2.90 The cPRIME Agency Order buys 200 from BD1 @ 2.95 Note that C1 is prevented from selling at 2.70 by the cPRIME Auction TMPC Price limit of 2.75. The Exchange believes that amending the rule to codify the use of a TMPC Price, which is applicable only in the limited circumstance when an MPC has not been assigned, and exists only for the duration of a Complex Auction or cPRIME Auction, adds additional detail to the Exchange's rules and provides greater transparency of Exchange functionality. The use of a TMPC Price provides protection for orders that participate in either a Complex Auction or a cPRIME Auction when the order does not have an assigned MPC Price as described above. This price protection ensures that orders are not executed at potentially erroneous prices during the auction. The Exchange believes that the proposed changes promote the protection of investors and the public interest by providing greater clarity and specificity of Exchange functionality, and it is in the public interest for the Exchange's rules to be accurate and concise so as to minimize the potential for confusion. 2. Statutory Basis The Exchange believes that its proposed rule change is consistent with Section 6(b) of the Act \24\ in general, and furthers the objectives of Section 6(b)(5) of the Act \25\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \24\ 15 U.S.C. 78f(b). \25\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the proposed changes promote just and equitable principles of trade and remove impediments to and perfect the mechanism of a free and open market and a national market system because they seek to add additional detail to, and improve the accuracy of, the Exchange's rules. In particular, the Exchange believes that the proposed rule changes will provide clarity and transparency of the Exchange's rules to Members and the public, and it is in the public interest for rules to be accurate and concise so as to minimize the potential for confusion. Additionally, the Exchange believes that including additional scenarios which will terminate a cPRIME Auction promotes just and equitable principles of trade and removes impediments to a free and open market by providing greater transparency concerning the operation of Exchange functionality. This provision ensures that a cPRIME Agency Order will always receive the best price on the Exchange while simultaneously preserving the integrity of the simple market. Further, the Exchange believes that providing a TMPC Price during a Complex Auction or a cPRIME Auction protects investors against executions at potentially erroneous prices. Additionally, the Exchange believes that adding additional detail to the Exchange's rules regarding the operation of MIAX Options Price Collars, and including the method of calculating a TMPC Price for the limited circumstances when one is used, promotes just and equitable principles of trade and removes impediments to a free and open market by providing greater transparency concerning the operation of Exchange functionality. B. Self-Regulatory Organization's Statement on Burden on Competition MIAX Options does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange's proposal is not designed to address any competitive issues. As discussed above the proposal is designed to make minor non substantive corrections to the rule text and to organize rule text in a fashion that makes it easier to read and understand. The changes to the Exchange rules concerning the use of a TMPC Price, and the addition of new scenarios which will terminate a cPRIME Auction, are designed to add additional detail to the rules to further clarify the operation of Exchange functionality and to minimize the potential for confusion. Additionally, the Exchange does not believe the proposed rule change will impose any burden on intra-market competition as the Rules apply equally to all Members of the Exchange. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to 19(b)(3)(A) of the Act \26\ and Rule 19b-4(f)(6) \27\ thereunder. --------------------------------------------------------------------------- \26\ 15 U.S.C. 78s(b)(3)(A). \27\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- 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. 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-2018-27 on the subject line. [[Page 55780]] Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-MIAX-2018-27. 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-2018-27 and should be submitted on or before November 28, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\28\ --------------------------------------------------------------------------- \28\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-24307 Filed 11-6-18; 8:45 am] BILLING CODE 8011-01-P
![55776 Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Notices
• Send an email to rule-comments@ SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
sec.gov. Please include File Number SR– COMMISSION Statement of the Purpose of, and
NYSEArca–2018–54 on the subject line. Statutory Basis for, the Proposed Rule
[Release No. 34–84519; File No. SR–MIAX– Change
Paper Comments
2018–27] 1. Purpose
• Send paper comments in triplicate The Exchange proposes to amend
to Secretary, Securities and Exchange Self-Regulatory Organizations; Miami
International Securities Exchange, Rule 515A, MIAX Price Improvement
Commission, 100 F Street NE, Mechanism (‘‘PRIME’’) and PRIME
LLC; Notice of Filing and Immediate
Washington, DC 20549–1090. Solicitation Mechanism, Interpretations
Effectiveness of a Proposed Rule
All submissions should refer to File Change To Amend Exchange Rule and Policies .12, to clarify and organize
Number SR–NYSEArca–2018–54. This 515A, MIAX Price Improvement existing rule text for ease of reference
file number should be included on the Mechanism (‘‘PRIME’’) and PRIME and to adopt new rule text to describe
subject line if email is used. To help the Solicitation Mechanism, and Rule 518, additional scenarios which cause a
Complex Orders cPRIME Auction 3 to terminate early.
Commission process and review your
The Exchange also proposes to amend
comments more efficiently, please use November 1, 2018. Rule 518, Interpretations and Policies
only one method. The Commission will .05(f), to add additional detail
post all comments on the Commission’s Pursuant to the provisions of Section
19(b)(1) of the Securities Exchange Act pertaining to the operation of the
internet website (http://www.sec.gov/ Complex MIAX Price Collar (‘‘MPC’’),
rules/sro.shtml). Copies of the of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that specifically to adopt new rule text for
submission, all subsequent the use of a Temporary MIAX Price
on October 24, 2018, Miami
amendments, all written statements Collar (‘‘TMPC’’) during a cPRIME
International Securities Exchange, LLC
with respect to the proposed rule Auction or Complex Auction 4 in the
(‘‘MIAX Options’’ or the ‘‘Exchange’’)
change that are filed with the filed with the Securities and Exchange limited instance when an MPC has not
Commission, and all written Commission (‘‘Commission’’) a been assigned. The Exchange notes that
communications relating to the proposed rule change as described in its proposal does not introduce any new
proposed rule change between the Items I, II, and III below, which Items functionality and is designed to codify
Commission and any person, other than have been prepared by the Exchange. existing functionality to add additional
those that may be withheld from the The Commission is publishing this detail and clarity to the Exchange’s
public in accordance with the notice to solicit comments on the rules.
provisions of 5 U.S.C. 552, will be The Exchange proposes to amend
proposed rule change from interested
available for website viewing and Rule 515A, Interpretations and Policies
persons.
.12, PRIME for Complex Orders. The
printing in the Commission’s Public
I. Self-Regulatory Organization’s current rule provides that, ‘‘. . . the
Reference Room, 100 F Street NE,
Statement of the Terms of Substance of provisions of Rule 515A(a) . . . shall be
Washington, DC 20549 on official applicable to the trading of complex
the Proposed Rule Change
business days between the hours of orders (as defined in Rule 518) on
10:00 a.m. and 3:00 p.m. Copies of the The Exchange is filing a proposal to PRIME. The Exchange will determine,
filing also will be available for amend Rule 515A, MIAX Price on a class-by-class basis, the option
inspection and copying at the principal Improvement Mechanism (‘‘PRIME’’) classes in which complex orders are
office of the Exchange. All comments and PRIME Solicitation Mechanism, and available for trading on PRIME on the
received will be posted without change. Rule 518, Complex Orders [sic] The text Exchange, and will announce such
Persons submitting comments are of the proposed rule change is available classes to Members 5 via Regulatory
cautioned that we do not redact or edit on the Exchange’s website at http:// Circular.’’ The Exchange now proposes
personal identifying information from www.miaxoptions.com/rule-filings/ at to replace the word ‘‘on’’ which
comment submissions. You should MIAX Options’ principal office, and at precedes ‘‘PRIME’’ with the phrase ‘‘in
submit only information that you wish the Commission’s Public Reference the’’ to more accurately describe
to make available publicly. All Room. Exchange functionality and maintain
submissions should refer to File II. Self-Regulatory Organization’s consistency with how the functionality
Number SR–NYSEArca–2018–54 and Statement of the Purpose of, and is described in other areas of the rule.6
should be submitted by November 28, Statutory Basis for, the Proposed Rule The Exchange also proposes to amend
Change Rule 515A, Interpretations and Policies
2018. Rebuttal comments should be
.12(d), to organize the rule for clarity
submitted by December 12, 2018.
In its filing with the Commission, the
For the Commission, by the Division of Exchange included statements 3 Members may use PRIME to execute complex
Trading and Markets, pursuant to delegated concerning the purpose of and basis for orders at a net price. ‘‘cPRIME’’ is the process by
authority.31 which a Member may electronically submit a
the proposed rule change and discussed cPRIME Order (as defined in Rule 518(b)(7)) it
Eduardo A. Aleman, any comments it received on the represents as agent (a ‘‘cPRIME Agency Order’’)
Assistant Secretary. proposed rule change. The text of these against principal or solicited interest for execution
statements may be examined at the (a ‘‘cPRIME Auction’’). See Exchange Rule 515A,
[FR Doc. 2018–24305 Filed 11–6–18; 8:45 am] Interpretations and Policies .12(a).
places specified in Item IV below. The
amozie on DSK3GDR082PROD with NOTICES1
4 See Exchange Rule 518(d).
BILLING CODE 8011–01–P
Exchange has prepared summaries, set 5 The term ‘‘Member’’ means an individual or
forth in sections A, B, and C below, of organization approved to exercise the trading rights
the most significant aspects of such associated with a Trading Permit. Members are
statements. deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
6 See Exchange Rule 515A.01, 515A.03, 515A.04,
1 15 U.S.C. 78s(b)(1). and 515A.05, which references usage of ‘‘the
31 17 CFR 200.30–3(a)(57). 2 17 CFR 240.19b–4. PRIME.’’
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![Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Notices 55777
and ease of reference and to codify two to lock or cross the best price opposite The cPRIME Auction process will continue
additional scenarios to new proposed the cPRIME Agency Order;’’ This until the Response Time Interval 16 ends or
subsections (d)(vi) and (d)(vii) provision ensures that a cPRIME Agency an event eligible to cause the cPRIME
Auction to end sooner occurs.
describing conditions which will Order will always receive the best
terminate a cPRIME Auction. price 11 on the Exchange while • @85 milliseconds a simple order bid to pay
6.25 for 10 MAR 50 Calls arrives
Specifically, the Exchange proposes to simultaneously preserving the integrity
consolidate current subsection (d)(v) The icMBBO is now 2.95 debit bid and
of the simple market by preventing
3.40 credit offer. Since the bid side of the
and current subsection (d)(vi) into new orders executed in a cPRIME Auction icMBBO is now equal to the best price
subsection (d)(v). Current subsection from possibly trading through the opposite the Agency Order [BD1 response,
(d)(v) provides that a cPRIME Auction Exchange’s simple market. 2.95 credit sell of 100], the cPRIME Auction
will terminate if, ‘‘a simple order or An example of this scenario is is concluded prior to the end of the Response
quote in a component of the strategy on illustrated below. Time Interval.
the same side of the market as the The cPRIME Auction process will trade the
cPRIME Agency Order locks or crosses Example 1—A Simple Order or Quote cPRIME Agency Order with the best priced
the NBBO 7 for such component.’’ on the Same Side as the Agency Order responses. The cPRIME Agency order will be
Current subsection (d)(vi) similarly Causes the icMBBO to Equal the Best filled as follows: 17
provides that a cPRIME Auction will Price Opposite the Agency Order • The cPRIME Agency Order buys 100 from
terminate if, ‘‘a simple order or quote in BD1 @2.95
MIAX—LMM 12 Mar 50 Call 5.80–6.30 • The cPRIME Agency Order buys 400 from
a component of the strategy on the (10x10) MM1 @2.98
opposite side of the market as the MIAX—LMM Mar 55 Call 2.90–3.30 (10x10)
cPRIME Agency Order: (A) locks or Similarly, proposed subsection
Strategy: Buy 1 Mar 50 Call, Sell 1 Mar 55 (d)(vii) will provide that a cPRIME
crosses the NBBO for such component. Call.
. . .’’ Auction shall conclude at the earlier of
The icMBBO is 2.50 debit bid and 3.40
The Exchange now proposes to the end of the RFR period or if, ‘‘a
credit offer.
combine subsection (d)(v) and (d)(vi) simple order or quote in a component of
The Exchange receives a cPRIME Order
into a single rule under new subsection with the cPRIME Agency Order representing
the strategy, eligible to rest on the
(d)(v) that provides that a cPRIME the purchase of the Strategy at a net debit of Simple Order Book, is received on the
Auction will terminate if, ‘‘a simple 3.00, 500 times. (Auto-match is not enabled opposite side of the market from the
order or quote in a component of the and there are no orders for the Strategy on cPRIME Agency Order and Order Book
strategy on either side of the market as the Strategy Book.) 13 and causes the icMBBO to lock or cross
the cPRIME Agency Order locks or Since the order price is at least $0.01 better the initiating price.’’ This provision
crosses the NBBO for such than (inside) the icMBBO and the best net ensures that a cPRIME Agency Order
component;’’. The proposed change price of any order for the Strategy on the will always receive the best price on the
simplifies the rule text and clarifies two Strategy Book, a cPRIME Auction can begin. Exchange while simultaneously
similar scenarios that will terminate a A Request for Responses (‘‘RFR’’) is preserving the integrity of the simple
cPRIME Auction when interest is broadcast to all subscribers and the RFR market by preventing orders executed in
received on either side of the market as period is started. a cPRIME Auction from possibly trading
the cPRIME Agency Order. The The following responses are received: through the Exchange’s simple market.
Exchange believes that the proposed • @50 milliseconds BD1 response, cAOC An example of this scenario is
changes promote the protection of Order 14 @2.95 credit sell of 100 arrives illustrated below.
investors and the public interest by • @70 milliseconds MM1 response, cAOC
eQuote 15 @2.98 credit sell of 500 arrives
Example 2—A Simple Order or Quote
improving the accuracy and precision of on the Opposite Side From the Agency
the Exchange’s rules. Order Causes the icMBBO to Equal the
Additionally, the Exchange proposes a calculation that uses the best price from the
Initiating Price
to adopt new subsections (d)(vi) and Simple Order Book for each component of a
complex strategy including displayed and non- MIAX—LMM Mar 50 Call 5.80–6.30 (10x10)
(d)(vii) to include additional scenarios displayed trading interest. See Exchange Rule
that will cause a cPRIME Auction to MIAX—LMM Mar 55 Call 2.90–3.30 (10x10)
518(a)(11).
terminate when interest is received on 11 The best price for an Agency Order to buy (sell) Strategy: Buy 1 Mar 50 Call, Sell 1 Mar 55
the same or opposite side of the market, is the lowest offer (highest bid) on the Exchange, Call.
comprised of all available interest. The icMBBO is 2.50 debit bid and 3.40
respectively, as the cPRIME Agency 12 The term ‘‘Lead Market Maker’’ means a credit offer.
Order. Specifically, proposed subsection Member registered with the Exchange for the The Exchange receives a cPRIME Order
(d)(vi) will provide that a cPRIME purposes of making markets in securities traded on with the cPRIME Agency Order representing
Auction shall conclude at the earlier of the Exchange and that is vested with the rights and the purchase of the Strategy at a net debit of
the end of the RFR period,8 or when, ‘‘a responsibilities specified in Chapter VI of the 3.00, 500 times. (Auto-match is not enabled
Exchange’s Rules with respect to Lead Market
simple order or quote in a component of and there are no orders for the Strategy on
Makers. See Exchange Rule 100.
the strategy, eligible to rest on the 13 The term ‘‘Strategy Book’’ is the Exchange’s
the Strategy Book.)
Simple Order Book,9 is received on the electronic book of complex orders and complex
Since the order price is at least $0.01 better
quotes. See Exchange Rule 518(a)(17). than (inside) the icMBBO and the best net
same side of the market as the cPRIME price of any order for the Strategy on the
14 A Complex Auction-or-Cancel or ‘‘cAOC’’ order
Agency Order and causes the icMBBO 10 Strategy Book, a cPRIME Auction can begin.
is a complex limit order used to provide liquidity
during a specific Complex Auction with a time in An RFR is broadcast to all subscribers and
7 The term ‘‘NBBO’’ means the national best bid
force that corresponds with that event. cAOC orders the RFR period is started.
amozie on DSK3GDR082PROD with NOTICES1
or offer as calculated by the Exchange based on are not displayed to any market participant, and are The following responses are received:
market information received by the Exchange from not eligible for trading outside of the event. See
OPRA. See Exchange Rule 100. • @40 milliseconds BD1 response, cAOC
Exchange Rule 518(b)(3).
8 See Exchange Rule 515A.12(d)(i). 15 A ‘‘Complex Auction or Cancel eQuote’’ or
Order @2.95 credit sell of 100 arrives
9 The term ‘‘Simple Order Book’’ is the
‘‘cAOC eQuote,’’ which is an eQuote submitted by
Exchange’s regular electronic book of orders and a Market Maker that is used to provide liquidity 16 The ‘‘Response Time Interval’’ means the
quotes. See Exchange Rule 518(a)(15). during a specific Complex Auction with a time in period of time during which responses to the RFR
10 The term ‘‘icMBBO’’ means the Implied force that corresponds with the duration of a may be entered. See Exchange Rule 518(d)(3).
Complex MIAX Best Bid or Offer. The icMBBO is Complex Auction. See Exchange Rule 518.02(c)(1). 17 See Exchange Rule 515A(a)(2)(iii).
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![55778 Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Notices
• @50 milliseconds MM1 response, cAOC erroneous prices by establishing a price 518(d)(1)) plus (minus) the MPC
eQuote @2.98 credit sell of 500 arrives range outside of which a complex order Setting 22 if the order is a buy (sell). If
The cPRIME Auction process will continue will not be executed. the complex order or eQuote eligible to
until the Response Time Interval ends or an The Exchange now proposes to amend participate in the Complex Auction or
event eligible to cause the cPRIME Auction Rule 518, Interpretations and Policies cPRIME Auction is priced more
to end sooner occurs. .05, by removing current subsection aggressively than the TMPC Price (i.e.,
• @75 milliseconds a simple order offer to (f)(3) and replacing it with new the complex order or eQuote price is
sell 10 MAR 50 Calls @5.90 arrives proposed subsections (f)(3), (f)(4) and greater than the TMPC Price for a buy
The icMBBO is now 2.50 debit bid and (f)(5), current subsection (f)(4) will
3.00 credit offer. Since the offer side of the
order, or the complex order or eQuote
remain intact and become new price is lower than the TMPC Price for
icMBBO is now equal to the initiating price,
the cPRIME Auction is concluded prior to the subsection (f)(6), and current subsection a sell order) the complex order or
end of the Response Time Interval. (f)(5) will remain intact and become eQuote may participate in the auction
The cPRIME Auction process will trade the new subsection (f)(7). New subsection but will not trade through its TMPC
cPRIME Agency Order with the best priced (f)(3) will provide that, ‘‘[t]he MPC Price Price.’’ The minimum MPC Setting is
responses. The cPRIME Agency order will be is established: (i) Upon receipt of the $0.00 and the maximum MPC Setting is
filled as follows: complex order or eQuote during free $1.00, as determined by the Exchange
• The cPRIME Agency Order buys 100 from trading, or (ii) if the complex order or and communicated to Members via
BD1 @2.95 eQuote is not received during free
• The cPRIME Agency Order buys 400 from
Regulatory Circular.23 A TMPC Price
trading, at the opening (or reopening will be calculated for use during the
MM1 @2.98
following a halt) of trading in the length of the auction for any complex
The Exchange believes that complex strategy; or (iii) upon order resting on the Strategy Book that
terminating a cPRIME Auction when evaluation of the Strategy Book by the does not have an MPC assigned and is
these conditions are present ensures System when a wide market condition, eligible to participate in a Complex
that the execution of the cPRIME as described in Interpretations and Auction or cPRIME Auction in that
Agency Order improves the best price Policies .05(e)(1) of this Rule, no longer strategy, or any complex order or
on the Exchange at the time of receipt, exists.’’ 19 eQuote received during a cPRIME
and that there is no interference New subsection (f)(5) will provide Auction if a wide market condition
between the simple and complex that, ‘‘[a] Temporary MPC Price (‘TMPC existed in a component of the strategy
markets. (The System will reject Price’) is established solely for use at the start of the cPRIME Auction.
cPRIME Agency Orders submitted with during a Complex Auction (as defined An example of the TMPC Price being
an initiating price that is equal to or in Rule 518(d)) or a cPRIME Auction (as established and used is provided below.
worse than (outside) the icMBBO or any defined in Rule 515A, Interpretations
other complex orders on the Strategy and Policies .12) for (i) any complex Example 3—A TMPC Price Is
Book.) 18 This provision ensures that a order resting on the Strategy Book that Established for an Order or eQuote
cPRIME Agency Order will always does not have an MPC assigned and is Received During a cPRIME Auction
receive the best price on the Exchange eligible to participate in a Complex
while simultaneously preserving the MIAX—LMM Mar 50 Call 1.00–6.50
Auction or a cPRIME Auction in that (10x10) (Wide Market)
integrity of the simple market by strategy; or (ii) any complex order or MIAX—LMM Mar 55 Call 2.90–3.30
preventing orders executed in a cPRIME eQuote received during a cPRIME (10x10)
Auction from possibly trading through Auction 20 if a wide market condition ABBO—Mar 50 Call 6.00–6.30 (10x10)
the Exchange’s simple market. The existed in a component of the strategy ABBO—Mar 55 Call 3.00–3.30 (10x10)
Exchange believes that including these at the start of the cPRIME Auction. The NBBO—Mar 50 Call 6.00–6.30 (10x10)
scenarios in the rules will provide TMPC Price shall be the auction start NBBO—Mar 55 Call 3.00–3.30 (10x20)
additional detail concerning the price 21 (the auction start price of a Strategy: Buy 1 Mar 50 Call, Sell 1 Mar 55
operation of cPRIME Auctions and the cPRIME Agency Order for a cPRIME Call
conditions which will terminate a The cNBBO is 2.70 debit bid and 3.30
Auction is defined in Rule 515A.12(a)(i) credit offer
cPRIME Auction. The Exchange believes and the auction start price for a The MPC Setting is $.25.
that the proposed changes will provide Complex Auction is defined in Rule The Exchange receives a cPRIME Order
greater clarity to Members and the with the cPRIME Agency Order representing
public regarding the Exchange’s Rules, 19 The Exchange notes that if wide market the purchase of the Strategy at a net debit of
and it is in the public interest for rules conditions exist (any individual option component 3.00, 500 times. Auto-match is not enabled
to be accurate and concise so as to of a complex strategy has a displayed MBBO quote and there are no orders for the Strategy on
width that is wider than the permissible simple the Strategy Book.
minimize the potential for confusion. market quote width) when an order is received, an
The Exchange also proposes to amend A TMPC Price will be calculated for use
MPC will not be calculated until the wide market
during the length of the auction for any
Rule 518, Interpretations and Policies conditions are resolved. See Exchange Rule
complex order or eQuote received during a
.05, to add additional detail to the rule 518.05(e)(1).
20 The Exchange notes that if a wide market cPRIME Auction if a wide market condition
regarding the establishment of the MIAX condition exists for a component of a complex existed in a component of the strategy at the
Price Collar (‘‘MPC’’) under various strategy, trading in the strategy will be suspended, start of the cPRIME Auction. The TMPC Price
circumstances. The MPC is a price except as otherwise set forth in Exchange Rule will be the cPRIME auction start price +/¥
protection feature designed to help 518.05(e)(1)(iii), which states that a wide market the MPC Setting. In this example the auction
maintain a fair and orderly market by condition shall have no impact on the trading of start price is $3.00. The TMPC Price is $2.75
cPRIME Orders and processing of cPRIME Auctions ($3.00¥$.25) for sell orders, and $3.25 ($3.00
helping to mitigate the potential risk of
amozie on DSK3GDR082PROD with NOTICES1
(including the processing of cPRIME Auction + $.25) for buy orders.
executions at prices that are extreme responses) pursuant to Rule 515A, Interpretations An RFR is broadcast to all subscribers and
and potentially erroneous. The MPC and Policies .12. See Exchange Rule 518.05(e)(1)(i).
21 The auction start price for a cPRIME Auction
the RFR period is started.
prevents complex orders from The following responses are received:
is the initiating price of a cPRIME Agency Order as
automatically executing at potentially described in Exchange Rule 515A.12(a)(i). The
22 See Exchange Rule 518.05(f).
auction start price for a Complex Auction is the
18 See Exchange Rule 515 A, Interpretations and initiating order’s limit price as described in 23 See Exchange Rule 518.05(f)(2). The Exchange
Policies .12(a)(i). Exchange Rule 518(d)(1). notes the current setting is $.25.
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![55780 Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Notices
Paper Comments SECURITIES AND EXCHANGE notice of filing of the proposed rule
COMMISSION change. The Commission may extend
• Send paper comments in triplicate the period for issuing an order
to Brent J. Fields, Secretary, Securities [Release No. 34–84523; File No. SR–
approving or disapproving the proposed
and Exchange Commission, 100 F Street CboeBZX–2018–018]
rule change, however, by not more than
NE, Washington, DC 20549–1090. Self-Regulatory Organizations; Cboe 60 days if the Commission determines
All submissions should refer to File BZX Exchange, Inc.; Notice of that a longer period is appropriate and
Number SR–MIAX–2018–27. This file Designation of a Longer Period for publishes the reasons for such
number should be included on the Commission Action on Proceedings To determination. The proposed rule
Determine Whether To Approve or change was published for notice and
subject line if email is used. To help the
Disapprove a Proposed Rule Change comment in the Federal Register on
Commission process and review your
To List and Trade Shares of the May 8, 2018. November 4, 2018, is 180
comments more efficiently, please use days from that date, and January 3,
only one method. The Commission will Principal Morley Short Duration Index
ETF Under Rule 14.11(c)(4) 2019, is 240 days from that date.
post all comments on the Commission’s
internet website (http://www.sec.gov/ The Commission finds it appropriate
November 1, 2018.
rules/sro.shtml). Copies of the to designate a longer period within
On April 23, 2018, Cboe BZX which to issue an order approving or
submission, all subsequent Exchange, Inc. (‘‘Exchange’’) filed with disapproving the proposed rule change
amendments, all written statements the Securities and Exchange so that it has sufficient time to consider
with respect to the proposed rule Commission (‘‘Commission’’), pursuant this proposed rule change. Accordingly,
change that are filed with the to Section 19(b)(1) of the Securities the Commission, pursuant to Section
Commission, and all written Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19(b)(2) of the Act,9 designates January
communications relating to the 19b–4 thereunder,2 a proposed rule 3, 2019, as the date by which the
proposed rule change between the change to list and trade shares of the Commission shall either approve or
Commission and any person, other than Principal Morley Short Duration Index disapprove the proposed rule change
those that may be withheld from the ETF. The proposed rule change was (File No. SR–CboeBZX–2018–018).
public in accordance with the published for comment in the Federal
Register on May 8, 2018.3 On June 20, For the Commission, by the Division of
provisions of 5 U.S.C. 552, will be Trading and Markets, pursuant to delegated
available for website viewing and 2018, the Commission designated
authority.10
printing in the Commission’s Public August 6, 2018 as the date by which to
Eduardo A. Aleman,
Reference Room, 100 F Street NE, approve the proposed rule change,
disapprove the proposed rule change, or Assistant Secretary.
Washington, DC 20549, on official [FR Doc. 2018–24311 Filed 11–6–18; 8:45 am]
business days between the hours of institute proceedings to determine
whether to approve or disapprove the BILLING CODE 8011–01–P
10:00 a.m. and 3:00 p.m. Copies of the
proposed rule change.4 On August 3,
filing also will be available for
2018, the Commission instituted
inspection and copying at the principal SECURITIES AND EXCHANGE
proceedings under Section 19(b)(2)(B) of
office of the Exchange. All comments the Act 5 to determine whether to COMMISSION
received will be posted without change. approve or disapprove the proposed
Persons submitting comments are Sunshine Act Meetings
rule change.6 The Commission has
cautioned that we do not redact or edit received one comment letter on the
personal identifying information from FEDERAL REGISTER CITATION OF PREVIOUS
proposed rule change.7
comment submissions. You should ANNOUNCEMENT: 83 FR 55210,
Section 19(b)(2) of the Act 8 provides
submit only information that you wish that, after initiating disapproval November 2, 2018.
to make available publicly. All proceedings, the Commission shall issue PREVIOUSLY ANNOUNCED TIME AND DATE OF
submissions should refer to File an order approving or disapproving the THE MEETING: Tuesday, November 6,
Number SR–MIAX–2018–27 and should proposed rule change not later than 180 2018.
be submitted on or before November 28, days after the date of publication of
CHANGES IN THE MEETING: The following
2018.
1 15 U.S.C. 78s(b)(1).
matter will also be considered during
For the Commission, by the Division of 2 17 CFR 240.19b–4. the 1:30 p.m. Closed Meeting scheduled
Trading and Markets, pursuant to delegated 3 See Securities Exchange Act Release No. 83152 for Tuesday, November 6, 2018:
authority.28 (May 2, 2018), 83 FR 20892.
4 See Securities Exchange Act Release No. 83479, Report on an examination
Eduardo A. Aleman,
83 FR 29838 (June 26, 2018). CONTACT PERSON FOR MORE INFORMATION:
Assistant Secretary. 5 15 U.S.C. 78s(b)(2)(B).
[FR Doc. 2018–24307 Filed 11–6–18; 8:45 am] 6 See Securities Exchange Act Release No. 83775,
For further information and to ascertain
BILLING CODE 8011–01–P 83 FR 39486 (August 9, 2018). The Commission what, if any, matters have been added,
instituted proceedings to allow for additional deleted or postponed, please contact the
analysis of the proposed rule change’s consistency Office of the Secretary at (202) 551–
with Section 6(b)(5) of the Act, which requires, 5400.
among other things, that the rules of a national
securities exchange be ‘‘designed to prevent Dated: November 2, 2018.
amozie on DSK3GDR082PROD with NOTICES1
fraudulent and manipulative acts and practices, to Brent J. Fields,
promote just and equitable principles of trade,’’ and
‘‘to protect investors and the public interest.’’ See Secretary.
id. at 39487. [FR Doc. 2018–24404 Filed 11–5–18; 11:15 am]
7 See letter from Kyle Murray, Assistant General
BILLING CODE 8011–01–P
Counsel, Cboe Global Markets (September 13,
2018), available at: https://www.sec.gov/comments/
sr-cboebzx-2018-018/srcboebzx2018018.htm. 9 Id.
28 17 CFR 200.30–3(a)(12). 8 15 U.S.C. 78s(b)(2). 10 17 CFR 200.30–3(a)(57).
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Document Created: 2018-11-07 00:04:26
Document Modified: 2018-11-07 00:04:26
| 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 55776 |
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