Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the MIAX Fee Schedule, 35349-35351 [2013-13897]
Download as PDF
Federal Register / Vol. 78, No. 113 / Wednesday, June 12, 2013 / Notices
doing so. Thus, broker-dealers that
participate in the Incentive Program will
need to comply with Section 11(d)(1)
unless there is another applicable
exemption.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,102 that the
proposed rule change (SR–NYSEArca2013–34), as modified by Amendment
Nos. 1 and 2 thereto, be, and it hereby
is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.103
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–13886 Filed 6–11–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69710; File No. SR–MIAX–
2013–26]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend the MIAX Fee
Schedule
June 6, 2013.
Pursuant to 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 May 30,
2013, Miami International Securities
Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
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.
mstockstill on DSK4VPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend its Fee Schedule.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/filter/
wotitle/rule_filing, at MIAX’s principal
office, and at the Commission’s Public
Reference Room.
102 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
103 17
VerDate Mar<15>2010
16:32 Jun 11, 2013
Jkt 229001
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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to waive all
transaction fees in Section 1(a)(i) of the
MIAX Options Fee Schedule that apply
to Market Makers 3 registered on the
Exchange for the period beginning June
3, 2013 and ending July 31, 2013.4
Specifically, during this period, the
Exchange will waive the following
transaction fees: (i) RMMs $0.23 per
contract for standard options or $0.023
for Mini Options; (ii) LMMs $0.20 per
contract for standard options or $0.020
for Mini Options; (iii) DLMMs and
PLMMs $0.18 per contract for standard
options or $0.018 for Mini Options; and
(iv) DPLMMs $0.16 per contract for
standard options or $0.016 for Mini
Options.5
The proposed fee waiver is designed
to both enhance the Exchange’s
competitiveness with other option
exchanges and strengthen its market
quality. The Exchange believes that the
proposed change would increase both
3 Market Makers may be registered as a Lead
Market Maker or as a Registered Market Maker. See
Exchange Rule 600(b). Market Makers registered on
the Exchange for purposes of the transaction fee
waiver and Section 1(a)(i) of the Fee Schedule
include: (i) Registered Market Maker (‘‘RMM’’); (ii)
Lead Market Maker (‘‘LMM’’); (iii) Directed Order
Lead Market Maker (‘‘DLMM’’); (iv) Primary Lead
Market Maker (‘‘PLMM’’); and Directed Order
Primary Lead Market Maker (‘‘DPLMM’’). See MIAX
Options Fee Schedule, Section 1(a)(i)—Market
Maker Transaction Fees.
4 The fee waiver will only apply to Market Maker
transaction fees in Section 1(a)(i) of the MIAX
Options Fee Schedule. See MIAX Options Fee
Schedule, Section 1(a)(i)—Market Maker
Transaction Fees. The Exchange notes that the
proposal will have no effect on other fees and dues
that may apply to Market Makers including
marketing fees, Options Regulatory Fees, market
data, and membership application fees. At the end
of the period, Market Maker Transaction Fees will
return to the prior fee rates unless the Exchange
files another 19b–4 Rule Filing to amend its fees.
5 See MIAX Options Fee Schedule, Section
1(a)(i)—Market Maker Transaction Fees.
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
35349
intermarket and intramarket
competition by incenting market
participants and market makers on other
exchanges to register as Market Makers
on the Exchange. In addition, the
Exchange believes that waiving
transaction fees for Market Makers
registered on the Exchange will promote
tighter bid-ask spreads by Market
Makers, and increase the volume of
transactions in order to allow the
Exchange to compete more effectively
with other options exchanges for such
transactions.
The Exchange notes that, while the
proposal is not based on that of another
exchange, that fee waivers are often
used by exchanges to increase their
competitiveness.6
The proposed rule change will take
effect on June 3, 2013.
Technical Change
In addition to the changes above, the
Exchange proposes a technical change
to the Fee Schedule to delete an
obsolete date. Specifically, the Exchange
proposes to delete the language
‘‘Effective April 17, 2013’’ from the
heading in Section 1 of the Fee
Schedule. The Exchange believes that
including this date in the Fee Schedule
in this location is unnecessary going
forward.
2. Statutory Basis
The Exchange believes that its
proposal to amend its fee schedule is
consistent with Section 6(b) of the Act 7
in general, and furthers the objectives of
Section 6(b)(4) of the Act 8 in particular,
in that it is an equitable allocation of
reasonable fees and other charges among
Exchange members.
The Exchange believes that the
proposed fee waiver is fair, equitable
and not unreasonably discriminatory.
The proposed fee waiver is reasonable
because it waives transaction fees for a
limited period in order to enable the
Exchange to improve its overall
competitiveness and strengthen its
market quality for all market
participants. The proposed fee waiver is
fair and equitable and not unreasonably
discriminatory because it will apply
equally to all Market Makers. All
similarly situated Market Makers are
subject to the same fee waiver, and
access to the Exchange is offered on
6 See e.g., Securities Exchange Act Release Nos.
66427 (February 21, 2012), 77 FR 11608 (February
27, 2012) (SR–BATS–2012–011); 65007 (August 2,
2011), 76 FR 48190 (August 8, 2011) (SR–CBOE–
2011–071); 56862 (November 29, 2007), 72 FR
68918 (December 6, 2007) (SR–CBOE–2007–135);
55833 (May 31, 2007), 72 FR 31358 (June 6, 2007)
(SR–ISE–2007–28).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4).
E:\FR\FM\12JNN1.SGM
12JNN1
mstockstill on DSK4VPTVN1PROD with NOTICES
35350
Federal Register / Vol. 78, No. 113 / Wednesday, June 12, 2013 / Notices
terms that are not unfairly
discriminatory. The registration as an
Exchange Market Maker is equally
available to all market participants and
Electronic Exchange Members (‘‘EEMs’’)
that satisfy the requirements of Rule
600. Any market participant may choose
to satisfy the additional requirements
and obligations of being a Market Maker
in order to qualify for the transaction fee
waiver.
The proposal to waive the transaction
fees for Market Makers, and no other
market participants, is equitable and not
unfairly discriminatory because Market
Markers on the Exchange have
enhanced quoting obligations measured
in both quantity (% time) and quality
(minimum bid-ask differentials) that
other market participants do not have.9
The proposal is reasonably designed to
enhance the quality of quoting and
volume transactions by limiting the
proposal to those market participants
that have these enhanced obligations to
deliver quality markets. Waiving fees
during this period should incent market
participants and market makers on other
exchanges to register as Market Makers
on the Exchange, which will enhance
the quality of quoting and increase the
volume of contracts traded here. To the
extent that this purpose is achieved, all
the Exchange’s market participants
should benefit from the improved
market liquidity. Enhanced market
quality and increased transaction
volume that results from the anticipated
increase in Market Maker activity on the
Exchange will benefit all market
participants and improve competition
on the Exchange.
The Exchange believes that an
increase in the number of Market
Makers, and an increase in the
execution volume from Market Makers,
will result in increased revenue from
other fees and dues that may apply to
Market Makers that may potentially
offset a portion of the fee waiver.10
While the Exchange believes that an
increase in the number of Market
Makers, and an increase in the
execution volume from Market Makers,
may potentially result in increased
trading activity of other market
participants, the Exchange does not
believe that the fee waiver will result in
other market participants subsidizing
the activity of Market Makers during the
fee waiver period since the Exchange is
not proposing any changes to increase
the existing fees of other market
9 See
MIAX Rules 603, 604, 605.
Exchange notes that the proposal will have
no effect on other fees and dues that may apply to
Market Makers including marketing fees, Options
Regulatory Fees, market data, and membership
application fees.
10 The
VerDate Mar<15>2010
16:32 Jun 11, 2013
Jkt 229001
participants in order to compensate for
the temporary transaction fee waiver.
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 proposed change
would increase both intermarket and
intramarket competition by incenting
market participants and market makers
on other exchanges to register as Market
Makers on the Exchange, which will
enhance the quality of quoting and
increase the volume of contracts traded
here. To the extent that there is addition
[sic] competitive burden on non-Market
Makers, the Exchange believes that this
is appropriate because Market Markers
registered on the Exchange have
enhanced quoting obligations measured
in both quantity (% time) and quality
(minimum bid-ask differentials) that
other market participants do not have.
Waiving fees during this period should
incent market participants and market
makers on other exchanges to register as
Market Makers on the Exchange, which
will enhance the quality of quoting and
increase the volume of contracts traded
here. To the extent that this purpose is
achieved, all the Exchange’s market
participants should benefit from the
improved market liquidity. Enhanced
market quality and increased
transaction volume that results from the
anticipated increase in Market Maker
activity on the Exchange will benefit all
market participants and improve
competition on the Exchange. 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. The
Exchange believes that the proposed
rule change reflects this competitive
environment because it reduces the
Exchange’s fees in a manner that
encourages market participants to
register as Market Makers, to provide
liquidity, and to attract order flow to the
Exchange. Given the robust competition
for volume among options markets,
many of which offer the same products,
implementing a fee waiver program to
attract Market Maker volume like the
one being proposed in this filing is
consistent with the above-mentioned
goals of the Act. This is especially true
for the smaller options markets, such as
MIAX, which is competing for volume
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
with much larger exchanges that
dominate the options trading industry.
As a new exchange, MIAX has a
nominal percentage of the average daily
trading volume in options, so it is
unlikely that the fee waiver could cause
any competitive harm to the options
market or to market participants. Rather,
the fee waiver is a modest attempt by a
small options market to attract order
volume away from larger competitors by
adopting an innovative pricing strategy.
The Exchange notes that if the fee
waiver resulted in a modest percentage
increase in the average daily trading
volume in options executing on MIAX,
while such percentage would represent
a large volume increase for MIAX, it
would represent a minimal reduction in
volume of its larger competitors in the
industry. The Exchange believes that the
proposal will help further competition,
because market participants will have
yet another additional option in
determining where to execute orders
and post liquidity if they factor the
benefits of Market Maker transaction
fees into the determination.
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.11 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:
11 15
E:\FR\FM\12JNN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
12JNN1
Federal Register / Vol. 78, No. 113 / Wednesday, June 12, 2013 / Notices
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
No. SR–MIAX–2013–26 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
mstockstill on DSK4VPTVN1PROD with NOTICES
All submissions should refer to File No.
SR–MIAX–2013–26. 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 Web site (https://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 Web site 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 such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–MIAX–
2013–26 and should be submitted on or
before July 3, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–13897 Filed 6–11–13; 8:45 am]
BILLING CODE 8011–01–P
12 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:32 Jun 11, 2013
Jkt 229001
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
Polar Petroleum Corp.; Order of
Suspension of Trading
June 10, 2013.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Polar
Petroleum Corp. (‘‘Polar’’) because of
questions regarding the adequacy and
accuracy of assertions by Polar, and by
others, to investors in press releases and
promotional material concerning,
among other things, the company’s
assets, operations, and financial
condition. Polar is a Nevada corporation
based in Anchorage, Alaska; it is dually
quoted on the OTCBB and OTC Link
under the symbol POLR.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
company.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed company is
suspended for the period from 9:30 a.m.
EDT on June 10, 2013 through 11:59
p.m. EDT on June 21, 2013.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2013–14027 Filed 6–10–13; 11:15 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 8352]
Persons on Whom Sanctions Have
Been Imposed Pursuant to the Iran
Sanctions Act of 1996, as Amended,
and Executive Order 13622
Department of State.
Notice.
AGENCY:
ACTION:
SUMMARY: The Secretary of State has
determined, pursuant to authority
delegated by the (the ‘‘Delegation
Memorandum’’)(see 77 FR 62139,
October 12, 2012), that the following
person has engaged in sanctionable
activity described in section 5(a)(8) of
the Iran Sanctions Act of 1996 (Pub. L.
104–172) (50 U.S.C. 1701 note) (‘‘ISA’’),
as amended, and that certain sanctions
are imposed as a result: Ferland
Company Limited.
The Secretary of State also has
determined that the following persons
have engaged in sanctionable activity
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
35351
described in section 2(a)(ii) of Executive
Order 13622—Authorizing Additional
Sanctions With Respect to Iran, and that
certain sanctions are imposed as a
result: Jam Petrochemical Company and
Niksima Food and Beverage JLT.
DATES: Effective Date: The sanctions on
Ferland Company Limited, Jam
Petrochemical Company, and Niksima
Food and Beverage JLT are effective
May 31, 2013.
FOR FURTHER INFORMATION CONTACT: On
general issues: Office of Sanctions
Policy and Implementation, Department
of State, Telephone: (202) 647–7489.
SUPPLEMENTARY INFORMATION: Pursuant
to section 5(a)(8) of the ISA and the
Delegation Memorandum, the Secretary
determined that the following sanctions
as described in section 6 of the ISA are
to be imposed on Ferland Company
Limited:
1. Banking transactions. Any transfers
of credit or payments between financial
institutions or by, through, or to any
financial institution, to the extent that
such transfers or payments are subject to
the jurisdiction of the United States and
involve any interest of Ferland
Company Limited, shall be prohibited.
2. Property transactions. It shall be
prohibited to:
a. Acquire, hold, withhold, use,
transfer, withdraw, transport, import, or
export any property that is subject to the
jurisdiction of the United States and
with respect to which Ferland Company
Limited has any interest;
b. Deal in or exercise any right,
power, or privilege with respect to such
property; or
c. Conduct any transactions involving
such property.
3. Foreign Exchange. Any transactions
in foreign exchange that are subject to
the jurisdiction of the United States and
which involve any interest of Ferland
Company Limited shall be prohibited.
4. Loans from United States Financial
Institutions. Loans or provision of
credits to Ferland Company Limited
totaling more than $10,000,000 over a
12-month period from any United States
Financial Institution shall be prohibited.
5. Exclusion of corporate officers. The
Secretary of State shall deny a visa to,
and the Secretary of Homeland Security
shall exclude from the United States,
the following corporate officers of
Ferland Company Limited:
a. Vitaly Sokolenko.
Pursuant to Executive Order (E.O.)
13622, the Secretary determined that the
following sanctions as described in
section 4 of E.O. 13622 are to be
imposed on Jam Petrochemical
Company:
1. Banking transactions. Any transfers
of credit or payments between financial
E:\FR\FM\12JNN1.SGM
12JNN1
Agencies
[Federal Register Volume 78, Number 113 (Wednesday, June 12, 2013)]
[Notices]
[Pages 35349-35351]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-13897]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69710; File No. SR-MIAX-2013-26]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend the MIAX Fee Schedule
June 6, 2013.
Pursuant to 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 May 30, 2013, Miami International Securities Exchange LLC
(``MIAX'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the 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 its Fee Schedule.
The text of the proposed rule change is available on the Exchange's
Web site at https://www.miaxoptions.com/filter/wotitle/rule_filing, 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to waive all transaction fees in Section
1(a)(i) of the MIAX Options Fee Schedule that apply to Market Makers
\3\ registered on the Exchange for the period beginning June 3, 2013
and ending July 31, 2013.\4\ Specifically, during this period, the
Exchange will waive the following transaction fees: (i) RMMs $0.23 per
contract for standard options or $0.023 for Mini Options; (ii) LMMs
$0.20 per contract for standard options or $0.020 for Mini Options;
(iii) DLMMs and PLMMs $0.18 per contract for standard options or $0.018
for Mini Options; and (iv) DPLMMs $0.16 per contract for standard
options or $0.016 for Mini Options.\5\
---------------------------------------------------------------------------
\3\ Market Makers may be registered as a Lead Market Maker or as
a Registered Market Maker. See Exchange Rule 600(b). Market Makers
registered on the Exchange for purposes of the transaction fee
waiver and Section 1(a)(i) of the Fee Schedule include: (i)
Registered Market Maker (``RMM''); (ii) Lead Market Maker (``LMM'');
(iii) Directed Order Lead Market Maker (``DLMM''); (iv) Primary Lead
Market Maker (``PLMM''); and Directed Order Primary Lead Market
Maker (``DPLMM''). See MIAX Options Fee Schedule, Section 1(a)(i)--
Market Maker Transaction Fees.
\4\ The fee waiver will only apply to Market Maker transaction
fees in Section 1(a)(i) of the MIAX Options Fee Schedule. See MIAX
Options Fee Schedule, Section 1(a)(i)--Market Maker Transaction
Fees. The Exchange notes that the proposal will have no effect on
other fees and dues that may apply to Market Makers including
marketing fees, Options Regulatory Fees, market data, and membership
application fees. At the end of the period, Market Maker Transaction
Fees will return to the prior fee rates unless the Exchange files
another 19b-4 Rule Filing to amend its fees.
\5\ See MIAX Options Fee Schedule, Section 1(a)(i)--Market Maker
Transaction Fees.
---------------------------------------------------------------------------
The proposed fee waiver is designed to both enhance the Exchange's
competitiveness with other option exchanges and strengthen its market
quality. The Exchange believes that the proposed change would increase
both intermarket and intramarket competition by incenting market
participants and market makers on other exchanges to register as Market
Makers on the Exchange. In addition, the Exchange believes that waiving
transaction fees for Market Makers registered on the Exchange will
promote tighter bid-ask spreads by Market Makers, and increase the
volume of transactions in order to allow the Exchange to compete more
effectively with other options exchanges for such transactions.
The Exchange notes that, while the proposal is not based on that of
another exchange, that fee waivers are often used by exchanges to
increase their competitiveness.\6\
---------------------------------------------------------------------------
\6\ See e.g., Securities Exchange Act Release Nos. 66427
(February 21, 2012), 77 FR 11608 (February 27, 2012) (SR-BATS-2012-
011); 65007 (August 2, 2011), 76 FR 48190 (August 8, 2011) (SR-CBOE-
2011-071); 56862 (November 29, 2007), 72 FR 68918 (December 6, 2007)
(SR-CBOE-2007-135); 55833 (May 31, 2007), 72 FR 31358 (June 6, 2007)
(SR-ISE-2007-28).
---------------------------------------------------------------------------
The proposed rule change will take effect on June 3, 2013.
Technical Change
In addition to the changes above, the Exchange proposes a technical
change to the Fee Schedule to delete an obsolete date. Specifically,
the Exchange proposes to delete the language ``Effective April 17,
2013'' from the heading in Section 1 of the Fee Schedule. The Exchange
believes that including this date in the Fee Schedule in this location
is unnecessary going forward.
2. Statutory Basis
The Exchange believes that its proposal to amend its fee schedule
is consistent with Section 6(b) of the Act \7\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \8\ in particular, in that
it is an equitable allocation of reasonable fees and other charges
among Exchange members.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed fee waiver is fair,
equitable and not unreasonably discriminatory. The proposed fee waiver
is reasonable because it waives transaction fees for a limited period
in order to enable the Exchange to improve its overall competitiveness
and strengthen its market quality for all market participants. The
proposed fee waiver is fair and equitable and not unreasonably
discriminatory because it will apply equally to all Market Makers. All
similarly situated Market Makers are subject to the same fee waiver,
and access to the Exchange is offered on
[[Page 35350]]
terms that are not unfairly discriminatory. The registration as an
Exchange Market Maker is equally available to all market participants
and Electronic Exchange Members (``EEMs'') that satisfy the
requirements of Rule 600. Any market participant may choose to satisfy
the additional requirements and obligations of being a Market Maker in
order to qualify for the transaction fee waiver.
The proposal to waive the transaction fees for Market Makers, and
no other market participants, is equitable and not unfairly
discriminatory because Market Markers on the Exchange have enhanced
quoting obligations measured in both quantity (% time) and quality
(minimum bid-ask differentials) that other market participants do not
have.\9\ The proposal is reasonably designed to enhance the quality of
quoting and volume transactions by limiting the proposal to those
market participants that have these enhanced obligations to deliver
quality markets. Waiving fees during this period should incent market
participants and market makers on other exchanges to register as Market
Makers on the Exchange, which will enhance the quality of quoting and
increase the volume of contracts traded here. To the extent that this
purpose is achieved, all the Exchange's market participants should
benefit from the improved market liquidity. Enhanced market quality and
increased transaction volume that results from the anticipated increase
in Market Maker activity on the Exchange will benefit all market
participants and improve competition on the Exchange.
---------------------------------------------------------------------------
\9\ See MIAX Rules 603, 604, 605.
---------------------------------------------------------------------------
The Exchange believes that an increase in the number of Market
Makers, and an increase in the execution volume from Market Makers,
will result in increased revenue from other fees and dues that may
apply to Market Makers that may potentially offset a portion of the fee
waiver.\10\ While the Exchange believes that an increase in the number
of Market Makers, and an increase in the execution volume from Market
Makers, may potentially result in increased trading activity of other
market participants, the Exchange does not believe that the fee waiver
will result in other market participants subsidizing the activity of
Market Makers during the fee waiver period since the Exchange is not
proposing any changes to increase the existing fees of other market
participants in order to compensate for the temporary transaction fee
waiver.
---------------------------------------------------------------------------
\10\ The Exchange notes that the proposal will have no effect on
other fees and dues that may apply to Market Makers including
marketing fees, Options Regulatory Fees, market data, and membership
application fees.
---------------------------------------------------------------------------
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
proposed change would increase both intermarket and intramarket
competition by incenting market participants and market makers on other
exchanges to register as Market Makers on the Exchange, which will
enhance the quality of quoting and increase the volume of contracts
traded here. To the extent that there is addition [sic] competitive
burden on non-Market Makers, the Exchange believes that this is
appropriate because Market Markers registered on the Exchange have
enhanced quoting obligations measured in both quantity (% time) and
quality (minimum bid-ask differentials) that other market participants
do not have. Waiving fees during this period should incent market
participants and market makers on other exchanges to register as Market
Makers on the Exchange, which will enhance the quality of quoting and
increase the volume of contracts traded here. To the extent that this
purpose is achieved, all the Exchange's market participants should
benefit from the improved market liquidity. Enhanced market quality and
increased transaction volume that results from the anticipated increase
in Market Maker activity on the Exchange will benefit all market
participants and improve competition on the Exchange. 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. The Exchange believes that
the proposed rule change reflects this competitive environment because
it reduces the Exchange's fees in a manner that encourages market
participants to register as Market Makers, to provide liquidity, and to
attract order flow to the Exchange. Given the robust competition for
volume among options markets, many of which offer the same products,
implementing a fee waiver program to attract Market Maker volume like
the one being proposed in this filing is consistent with the above-
mentioned goals of the Act. This is especially true for the smaller
options markets, such as MIAX, which is competing for volume with much
larger exchanges that dominate the options trading industry. As a new
exchange, MIAX has a nominal percentage of the average daily trading
volume in options, so it is unlikely that the fee waiver could cause
any competitive harm to the options market or to market participants.
Rather, the fee waiver is a modest attempt by a small options market to
attract order volume away from larger competitors by adopting an
innovative pricing strategy. The Exchange notes that if the fee waiver
resulted in a modest percentage increase in the average daily trading
volume in options executing on MIAX, while such percentage would
represent a large volume increase for MIAX, it would represent a
minimal reduction in volume of its larger competitors in the industry.
The Exchange believes that the proposal will help further competition,
because market participants will have yet another additional option in
determining where to execute orders and post liquidity if they factor
the benefits of Market Maker transaction fees into the determination.
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.\11\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
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:
[[Page 35351]]
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File No. SR-MIAX-2013-26 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-MIAX-2013-26. 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 Web site (https://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 Web site 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 such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-MIAX-2013-26 and should be
submitted on or before July 3, 2013.
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-13897 Filed 6-11-13; 8:45 am]
BILLING CODE 8011-01-P