Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 503, 61416-61418 [2013-24161]
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61416
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
At any time within 60 days of the
filing of such 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
under Section 19(b)(2)(B) 15 of the Act to
determine whether the proposed rule
change 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:
tkelley on DSK3SPTVN1PROD with NOTICES
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 Number SR–
CHX–2013–18 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
Number SR–CHX–2013–18. 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 on official business
days between the hours of 10:00 a.m.
and 3:00 p.m. Copies of such filing also
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
15 15 U.S.C. 78s(b)(2)(B).
VerDate Mar<15>2010
18:29 Oct 02, 2013
Jkt 232001
will be available for inspection and
copying at the principal offices 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 Number SR–CHX–
2013–18, and should be submitted on or
before October 24, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24164 Filed 10–2–13; 8:45 am]
BILLING CODE 8011–01–P
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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70543; File No. SR–MIAX–
2013–45]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Exchange Rule 503
September 27, 2013.
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 September 19, 2013, Miami
International Securities Exchange LLC
(‘‘MIAX’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I, II, and III below,
which Items have been prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange is filing a proposal to
amend Rule 503.
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.
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Sfmt 4703
The Exchange proposes to amend
Rule 503 to provide details regarding
the treatment of market orders to sell in
two specific scenarios during the
Exchange’s Opening Process—when
market sell interest outweighs buy
interests and (i) the highest quote bid is
either zero or the lowest Minimum
Trading Increment or (ii) the Expanded
Quote Range has been calculated as
zero. The proposal codifies existing
functionality during the Exchange’s
Opening Process. Specifically, the
Exchange proposes adding the following
to Rule 503(f)(3):
In series where the highest quote bid is
either zero or the lowest Minimum Trading
Increment and market order sell interest has
a quantity greater than all of the buy interest,
the System will treat the market order(s) like
a limit order to sell at the lowest Minimum
Trading Increment and the Opening Process
will be satisfied with an opening price at the
lowest Minimum Increment with any
remaining balance of the sell order(s) being
placed on the Book in time priority and made
available for execution following the
Opening Process.
The Exchange believes that this
amendment will prevent any confusion
on the part of its members on how such
orders will be treated during the
Exchange’s Opening Process. For
instance, in the absence of the proposed
amendment to Rule 503(f)(3), a member
could believe that a market order to sell
could be priced at zero in a no bid
series. However, the Exchange System
avoids this theoretical outcome by
converting the sell market order to a
limit order with a limit price of the
lowest Minimum Trading Increment.
This is very similar to how the MIAX
Order Monitor, which applies after the
Opening Process, converts market
orders to sell in certain circumstances to
E:\FR\FM\03OCN1.SGM
03OCN1
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
limit orders to sell with a limit price of
one Minimum Trading Increment
pursuant to Rule 519.3
Additionally, the Exchange proposes
adding the following to Rule
503(f)(8)(ii)(E):
However, in a series where the EQR has
been calculated to be zero on the bid side and
market order sell interest has a quantity
greater than all of the buy interest, the
System will treat the market order(s) like a
limit order(s) to sell at the lowest Minimum
Trading Increment and the Opening Process
will be satisfied with an opening price at the
lowest Minimum Increment with any
remaining balance of the sell order(s) being
placed on the Book in time priority and made
available for execution following the
Opening Process.
tkelley on DSK3SPTVN1PROD with NOTICES
The Exchange believes that this
amendment, similar to the amendment
to Rule 503(f)(3) discussed above, will
prevent any confusion on the part of its
members on how such orders will be
treated during the Exchange’s Opening
Process. For instance, in the absence of
the proposed amendment to Rule
503(f)(8)(ii)(E), a member could believe
that a market order to sell could be
priced at zero in a series where the
Expanded Quote Range has been
calculated to be zero on the bid side.
However, the Exchange System avoids
this theoretical outcome by converting
the sell market order to a limit order
with a limit price of the lowest
Minimum Trading Increment. This is
also very similar to how the MIAX
Order Monitor, which applies after the
Opening Process, converts market
orders to sell in certain circumstances to
limit orders to sell with a limit price of
one Minimum Trading Increment
pursuant to Rule 519.
The Exchange notes that neither the
proposed language of Rule 519(f)(3) or
519(f)(8)(E) supersedes the functionality
of the Opening (‘‘OPG’’) Order as
defined in Rule 516(h). Therefore, the
remaining balance of any OPG market
order to sell that has been converted to
a limit order to sell at the Minimum
Trading Increment shall be cancelled
rather than placed on the Book
following the Opening Process.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,4 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,5 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
3 See
Exchange Rule 519(a)(1).
U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
4 15
VerDate Mar<15>2010
18:29 Oct 02, 2013
Jkt 232001
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system and, in general, to protect
investors and the public interest.
The proposed amendments to
Exchange Rule 503 removes
impediments to and perfects the
mechanisms of a free and open market
and a national market system and, in
general, protects investors and the
public interest by providing additional
details to the mechanics of the
Exchange’s Opening Process in order to
align the Rule text to existing
functionality. Such additional details
provide further clarity and transparency
around the Opening Process, which, in
turn, benefits members by allowing
them to better understand how the
Exchange System will treat market
orders to sell in two specific
situations—when market sell interest
outweighs buy interests and (i) the
highest quote bid is either zero or the
lowest Minimum Trading Increment or
(ii) the Expanded Quote Range has been
calculated as zero. With this
information, members can better choose
the type of order, such as a market or
limit order, to send during the Opening
Process.
Additionally, the underlying design of
the Exchange System to prevent trades
from occurring at a price of zero protects
investors and the public interest and
promotes just and equitable principles
by avoiding trades from occurring at a
potentially harmful price, especially for
investors entering market orders to sell
who would most likely not want to sell
a position for no value.
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. Specifically,
the Exchange believes the proposed
changes will not impose any burden on
intra-market competition because it
applies to all MIAX participants
equally. In addition, the Exchange does
not believe the proposal will impose
any burden on inter-market competition
as the proposal is intended to protect
investors by providing further
transparency regarding the Exchange’s
Opening Process. The proposed
amendment will place the investing
public in a better position when
selecting which of the various option
exchanges to send an order to be
including during the respective opening
transaction.
PO 00000
Frm 00097
Fmt 4703
Sfmt 4703
61417
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 6 and Rule 19b–4(f)(6) 7
thereunder.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
MIAX–2013–45 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
Number SR–MIAX–2013–45. This file
6 15
U.S.C. 78s(b)(3)(A).
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.
7 17
E:\FR\FM\03OCN1.SGM
03OCN1
61418
Federal Register / Vol. 78, No. 192 / Thursday, October 3, 2013 / Notices
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
offices 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 Number SR–MIAX–
2013–45, and should be submitted on or
before October 24, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–24161 Filed 10–2–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–70539; File No. SR–BX–
2013–052]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Pricing for Certain Options Symbols
September 27, 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
September 23, 2013, NASDAQ OMX
BX, Inc. (‘‘BX’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend BX
Options Rules, Chapter XV, Section 2
entitled ‘‘BX Options Market—Fees and
Rebates’’ to amend fees and rebates for
various options.
While the changes proposed herein
are effective upon filing, the Exchange
has designated these changes to be
operative on October 1, 2013.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxbx.cchwallstreet.com, at the
principal office of the Exchange, on the
Commission’s Web site at https://
www.sec.gov, 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
BX proposes to amend certain rebates
and fees in Chapter XV, Section 2(1)
pertaining to Penny Pilot 3 Options
overlying the following stocks: Bank of
America Corporation (‘‘BAC’’), iShares
Russell 2000 Index (‘‘IWM’’),
PowerShares QQQ (‘‘QQQ’’), SPDR S&P
500 (‘‘SPY’’), and iPath S&P 500 VIX St
Futures ETN (‘‘VXX’’) (collectively the
‘‘Specified Penny Pilot Options’’).
Specifically, the Exchange proposes to
amend the BX Options Market Maker 4
Rebate to Add Liquidity and the Fee to
Add Liquidity in the Specified Penny
Pilot Options.
The Exchange proposes to decrease
the BX Options Market Maker Rebate to
Add Liquidity in the Specified Penny
Pilot Options from $0.20 to $0.00 per
contract.5 The Exchange also proposes
to decrease the BX Options Market
Maker Fee to Add Liquidity in the
Specified Penny Pilot Options from
$0.10 to $0.00 per contract.6 The fee
schedule after the proposed rule change
will reflect the fees and rebates as
follows:
FEES AND REBATES
[Per executed contract]
Customer
BAC, IWM, QQQ and SPY:
Rebate to Add Liquidity ........................................................................................................
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The Penny Pilot on BX Options was established
in June 2012, and was expanded and extended
through December 31, 2013. See Securities
Exchange Act Release Nos. 67256 (June 26, 2012),
77 FR 39277 (July 2, 2012) (SR–BX–2012–030)
(order approving BX Options rules and establishing
Penny Pilot); 67342 (July 3, 2012), 77 FR 40666
(July 10, 2012) (SR–BX–2012–046) (notice of filing
tkelley on DSK3SPTVN1PROD with NOTICES
1 15
VerDate Mar<15>2010
18:29 Oct 02, 2013
Jkt 232001
and immediate effectiveness expanding and
extending Penny Pilot); 68518 (December 21, 2012),
77 FR 77152 (December 31, 2012) (SR–BX–2012–
076) (notice of filing and immediate effectiveness
expanding and extending Penny Pilot); 69784 (June
18, 2013), 78 FR 37873 (June 24, 2013) (SR–BX–
2013–039).
4 A BX Options Market Maker must be registered
as such pursuant to Chapter VII, Section 2 of the
BX Options Rules, and must also remain in good
standing pursuant to Chapter VII, Section 4.
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Frm 00098
Fmt 4703
Sfmt 4703
$0.00
BX options
market maker
$0.00
Noncustomer 1
N/A
5 The Rebate to Add Liquidity is paid to a BX
Options Market Maker only when the BX Options
Market Maker is contra to a Non-Customer or BX
Options Market Maker. A Non-Customer includes a
Professional, Firm, Broker-Dealer and Non-BX
Options Market Maker.
6 The Fee to Add Liquidity is assessed to a BX
Options the BX Options Market Maker is contra to
a Customer.
E:\FR\FM\03OCN1.SGM
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Agencies
[Federal Register Volume 78, Number 192 (Thursday, October 3, 2013)]
[Notices]
[Pages 61416-61418]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24161]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70543; File No. SR-MIAX-2013-45]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Exchange Rule 503
September 27, 2013.
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 September 19, 2013, Miami International
Securities Exchange LLC (``MIAX'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') a proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by the Exchange. The Commission is publishing this notice
to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange is filing a proposal to amend Rule 503.
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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 503 to provide details
regarding the treatment of market orders to sell in two specific
scenarios during the Exchange's Opening Process--when market sell
interest outweighs buy interests and (i) the highest quote bid is
either zero or the lowest Minimum Trading Increment or (ii) the
Expanded Quote Range has been calculated as zero. The proposal codifies
existing functionality during the Exchange's Opening Process.
Specifically, the Exchange proposes adding the following to Rule
503(f)(3):
In series where the highest quote bid is either zero or the
lowest Minimum Trading Increment and market order sell interest has
a quantity greater than all of the buy interest, the System will
treat the market order(s) like a limit order to sell at the lowest
Minimum Trading Increment and the Opening Process will be satisfied
with an opening price at the lowest Minimum Increment with any
remaining balance of the sell order(s) being placed on the Book in
time priority and made available for execution following the Opening
Process.
The Exchange believes that this amendment will prevent any
confusion on the part of its members on how such orders will be treated
during the Exchange's Opening Process. For instance, in the absence of
the proposed amendment to Rule 503(f)(3), a member could believe that a
market order to sell could be priced at zero in a no bid series.
However, the Exchange System avoids this theoretical outcome by
converting the sell market order to a limit order with a limit price of
the lowest Minimum Trading Increment. This is very similar to how the
MIAX Order Monitor, which applies after the Opening Process, converts
market orders to sell in certain circumstances to
[[Page 61417]]
limit orders to sell with a limit price of one Minimum Trading
Increment pursuant to Rule 519.\3\
---------------------------------------------------------------------------
\3\ See Exchange Rule 519(a)(1).
---------------------------------------------------------------------------
Additionally, the Exchange proposes adding the following to Rule
503(f)(8)(ii)(E):
However, in a series where the EQR has been calculated to be
zero on the bid side and market order sell interest has a quantity
greater than all of the buy interest, the System will treat the
market order(s) like a limit order(s) to sell at the lowest Minimum
Trading Increment and the Opening Process will be satisfied with an
opening price at the lowest Minimum Increment with any remaining
balance of the sell order(s) being placed on the Book in time
priority and made available for execution following the Opening
Process.
The Exchange believes that this amendment, similar to the amendment
to Rule 503(f)(3) discussed above, will prevent any confusion on the
part of its members on how such orders will be treated during the
Exchange's Opening Process. For instance, in the absence of the
proposed amendment to Rule 503(f)(8)(ii)(E), a member could believe
that a market order to sell could be priced at zero in a series where
the Expanded Quote Range has been calculated to be zero on the bid
side. However, the Exchange System avoids this theoretical outcome by
converting the sell market order to a limit order with a limit price of
the lowest Minimum Trading Increment. This is also very similar to how
the MIAX Order Monitor, which applies after the Opening Process,
converts market orders to sell in certain circumstances to limit orders
to sell with a limit price of one Minimum Trading Increment pursuant to
Rule 519.
The Exchange notes that neither the proposed language of Rule
519(f)(3) or 519(f)(8)(E) supersedes the functionality of the Opening
(``OPG'') Order as defined in Rule 516(h). Therefore, the remaining
balance of any OPG market order to sell that has been converted to a
limit order to sell at the Minimum Trading Increment shall be cancelled
rather than placed on the Book following the Opening Process.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\4\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\5\ in particular, because it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, and to remove impediments to and perfect
the mechanism of a free and open market and a national market system
and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The proposed amendments to Exchange Rule 503 removes impediments to
and perfects the mechanisms of a free and open market and a national
market system and, in general, protects investors and the public
interest by providing additional details to the mechanics of the
Exchange's Opening Process in order to align the Rule text to existing
functionality. Such additional details provide further clarity and
transparency around the Opening Process, which, in turn, benefits
members by allowing them to better understand how the Exchange System
will treat market orders to sell in two specific situations--when
market sell interest outweighs buy interests and (i) the highest quote
bid is either zero or the lowest Minimum Trading Increment or (ii) the
Expanded Quote Range has been calculated as zero. With this
information, members can better choose the type of order, such as a
market or limit order, to send during the Opening Process.
Additionally, the underlying design of the Exchange System to
prevent trades from occurring at a price of zero protects investors and
the public interest and promotes just and equitable principles by
avoiding trades from occurring at a potentially harmful price,
especially for investors entering market orders to sell who would most
likely not want to sell a position for no value.
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. Specifically, the Exchange
believes the proposed changes will not impose any burden on intra-
market competition because it applies to all MIAX participants equally.
In addition, the Exchange does not believe the proposal will impose any
burden on inter-market competition as the proposal is intended to
protect investors by providing further transparency regarding the
Exchange's Opening Process. The proposed amendment will place the
investing public in a better position when selecting which of the
various option exchanges to send an order to be including during the
respective opening transaction.
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 \6\ and Rule 19b-4(f)(6) \7\
thereunder.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 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.
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-MIAX-2013-45 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 Number SR-MIAX-2013-45. This file
[[Page 61418]]
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 offices 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 Number SR-MIAX-2013-45,
and should be submitted on or before October 24, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24161 Filed 10-2-13; 8:45 am]
BILLING CODE 8011-01-P