Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 519, MIAX Order Monitor, 32797-32798 [2014-13107]
Download as PDF
Federal Register / Vol. 79, No. 109 / Friday, June 6, 2014 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–13152 Filed 6–5–14; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–72291; File No. SR–MIAX–
2014–20]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Exchange Rule 519,
MIAX Order Monitor
June 2, 2014.
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 May 22, 2014, 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 Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend Exchange Rule 519. 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.
wreier-aviles on DSK5TPTVN1PROD with NOTICES
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
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
13:59 Jun 05, 2014
including changing a citation in Rule
530.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
2. Statutory Basis
The Exchange proposes to amend
Rule 519, MIAX Order Monitor, to
provide details regarding order size
protections. The proposal codifies
existing functionality applicable to
orders on the Exchange.
Currently, Rule 519 only provides
details regarding the System’s order
price protections. However, in addition
to order protections based on price, the
System also employs order protections
based on size. The Exchange now
proposes to codify these existing order
size protections into Rule 519.
Specifically, the Exchange proposes to
provide that the System prevents certain
orders from executing or being placed
on the Book if the size of the order
exceeds the order size protection
designated by the Member. Members
may designate or disable the order size
protection on a firm wide basis. The
default maximum size of orders are
determined by the Exchange and
announced to Members through a
Regulatory Circular.3 The order size
protections provide market participants
the flexibility to designate the level of
protection they need to help prevent the
potential submission of erroneously
sized orders on the Exchange. The
proposed change is designed to protect
investors and the public interest by
codifying the order size protections that
apply to orders that help market
participants avoid the potential
submission of erroneously sized orders
on the Exchange. In addition, the
Exchange believes that the proposed
amendment 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
helping to eliminate potential confusion
on behalf of market participants by
clearly stating the System’s
functionality with regard to orders that
trigger order size protections.
The Exchange also proposes several
technical changes to enable the
incorporation of the order size
protections into the Rules alongside the
existing order price protections,
3 The Exchange notes that the current default
maximum size of orders is 10,000. However,
Members may designate a maximum order size on
a firm wide basis from 0 to 999,999.
12 17
VerDate Mar<15>2010
the most significant aspects of such
statements.
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
Jkt 232001
32797
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Frm 00107
Fmt 4703
Sfmt 4703
The Exchange believes that its
proposed rule change is consistent with
Section 6(b) 4 of the Act in general, and
furthers the objectives of Section
6(b)(5) 5 of the Act 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
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.
The proposed change is designed to
protect investors and the public interest
by codifying the order size protections
that apply to orders that help market
participants avoid the potential
submission of erroneously sized orders
on the Exchange. In addition, the
Exchange believes that the proposed
amendment 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
helping to eliminate potential confusion
on behalf of market participants by
clearly stating the System’s
functionality with regard to orders that
trigger order size protections.
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
order size protections.
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.
4 15
5 15
E:\FR\FM\06JNN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
06JNN1
32798
Federal Register / Vol. 79, No. 109 / Friday, June 6, 2014 / Notices
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–2014–20 on the subject line.
wreier-aviles on DSK5TPTVN1PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–MIAX–2014–20. 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
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
VerDate Mar<15>2010
13:59 Jun 05, 2014
Jkt 232001
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 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;
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–
2014–20 and should be submitted on or
before June 27, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–13107 Filed 6–5–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72292; File No. SR–EDGX–
2014–13]
Self-Regulatory Organizations; EDGX
Exchange, Inc.; Order Approving
Proposed Rule Change To Amend
Footnote 4 of the Exchange’s Fee
Schedule To Permit Members To
Designate Their Retail Orders To Be
Identified as Retail on the EDGX Book
Feed
June 2, 2014.
I. Introduction
On April 17, 2014, EDGX Exchange,
Inc. (the ‘‘Exchange’’ or ‘‘EDGX’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to permit EDGX Members 3 to
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 A Member is defined as ‘‘any registered broker
or dealer, or any person associated with a registered
1 15
PO 00000
Frm 00108
Fmt 4703
Sfmt 4703
identify their retail orders as ‘‘retail’’ on
the EDGX Book Feed (the ‘‘Proposal’’).
The Proposal was published for
comment in the Federal Register on
April 30, 2014.4 The Commission
received no comments on the Proposal.
This order approves the Proposal.
II. Description of the Proposal
Currently, EDGX Members may
submit their Orders as Non-Attributable
Orders 5 or Attributable Orders.6 If a
Member choses to submit an order as
Attributable, the Exchange includes the
Member’s market participant identifier
(‘‘MPID’’) with that Member’s published
quotations on the EDGX Book Feed.
In the Proposal, the Exchange
proposes to amend Footnote 4 of its Fee
Schedule to permit Members to
designate that their Attributable Retail
Orders be identified as ‘‘Retail’’ 7 on the
EDGX Book Feed, rather than by their
MPID.8 Under the Proposal, a Member
may elect that their Retail Orders be
identified as Retail on an order-by-order
basis or instruct the Exchange to
identify all of the Member’s Retail
Orders as Retail on a port-by-port basis
where that port is also designated as a
Retail Order Port.9 The Exchange will
broker or dealer, that has been admitted to
membership in the Exchange. A Member will have
the status of a ‘‘member’’ of the Exchange as that
term is defined in Section 3(a)(3) of the Act.’’ See
EDGX Rule 1.5(n).
4 See Securities Exchange Act Release No. 72016
(April 24, 2014), 79 FR 24463 (‘‘Notice’’).
5 A Non-Attributable Order is defined as ‘‘[a]n
order that is designated for display (price and size)
on an anonymous basis by the Exchange. See EDGX
Rule 11.5(c)(19).
6 An Attributable Order is defined as, ‘‘[a]n order
that is designated for display (price and size)
including the Member’s market participant
identifier (‘MPID’).’’ See EDGX Rule 11.5(c)(18).
7 Footnote 4 of the Exchange’s Fee Schedule
defines a ‘‘Retail Order’’ as (i) an agency order or
riskless principal order that meets the criteria of
FINRA Rule 5320.03 that originates from a natural
person; (ii) is submitted to EDGX by a Member,
provided that no change is made to the terms of the
order; and (iii) the order does not originate from a
trading algorithm or any other computerized
methodology. Footnote 4 of the Exchange’s Fee
Schedule also provides that Members may
designate orders as Retail Orders on an order-byorder basis or a port level basis by designating
particular FIX ports as Retail Order Ports. Members
must submit a signed written attestation, in a form
prescribed by the Exchange, that they have
implemented policies and procedures that are
reasonably designed to ensure that substantially all
orders designated by the Member as a ‘‘Retail
Order’’ comply with the above requirements. See
Footnote 4 of the Exchange’s Fee Schedule available
at https://www.directedge.com/Trading/
EDGXFeeSchedule.aspx.
8 If a Member instructs the Exchange to identify
all its orders on a Retail Order Port as Retail, the
Member will not be able to designate any Retail
Order from that port instead as an Attributable
Order or as a Non-Attributable Order. See Notice,
79 FR at 24464.
9 A Member’s decision on whether to identify
their Retail Order as Retail under the proposed rule
E:\FR\FM\06JNN1.SGM
06JNN1
Agencies
[Federal Register Volume 79, Number 109 (Friday, June 6, 2014)]
[Notices]
[Pages 32797-32798]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13107]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72291; File No. SR-MIAX-2014-20]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Exchange Rule 519, MIAX Order Monitor
June 2, 2014.
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 May 22, 2014, 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 Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend Exchange Rule 519. 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 519, MIAX Order Monitor, to
provide details regarding order size protections. The proposal codifies
existing functionality applicable to orders on the Exchange.
Currently, Rule 519 only provides details regarding the System's
order price protections. However, in addition to order protections
based on price, the System also employs order protections based on
size. The Exchange now proposes to codify these existing order size
protections into Rule 519. Specifically, the Exchange proposes to
provide that the System prevents certain orders from executing or being
placed on the Book if the size of the order exceeds the order size
protection designated by the Member. Members may designate or disable
the order size protection on a firm wide basis. The default maximum
size of orders are determined by the Exchange and announced to Members
through a Regulatory Circular.\3\ The order size protections provide
market participants the flexibility to designate the level of
protection they need to help prevent the potential submission of
erroneously sized orders on the Exchange. The proposed change is
designed to protect investors and the public interest by codifying the
order size protections that apply to orders that help market
participants avoid the potential submission of erroneously sized orders
on the Exchange. In addition, the Exchange believes that the proposed
amendment 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 helping to eliminate potential
confusion on behalf of market participants by clearly stating the
System's functionality with regard to orders that trigger order size
protections.
---------------------------------------------------------------------------
\3\ The Exchange notes that the current default maximum size of
orders is 10,000. However, Members may designate a maximum order
size on a firm wide basis from 0 to 999,999.
---------------------------------------------------------------------------
The Exchange also proposes several technical changes to enable the
incorporation of the order size protections into the Rules alongside
the existing order price protections, including changing a citation in
Rule 530.
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) \4\ of the Act in general, and furthers the
objectives of Section 6(b)(5) \5\ of the Act 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 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The proposed change is designed to protect investors and the public
interest by codifying the order size protections that apply to orders
that help market participants avoid the potential submission of
erroneously sized orders on the Exchange. In addition, the Exchange
believes that the proposed amendment 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
helping to eliminate potential confusion on behalf of market
participants by clearly stating the System's functionality with regard
to orders that trigger order size protections.
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 order size protections.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
[[Page 32798]]
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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-2014-20 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-MIAX-2014-20. 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 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; 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-2014-20 and should be
submitted on or before June 27, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13107 Filed 6-5-14; 8:45 am]
BILLING CODE 8011-01-P