Self-Regulatory Organizations: Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange LLC To Establish a Billing Dispute Practice, 35605-35607 [2014-14542]
Download as PDF
Federal Register / Vol. 79, No. 120 / Monday, June 23, 2014 / Notices
participants to engage in trading activity
relating to the German power market.
ICE Clear Europe does not believe the
adoption of related Delivery Procedures
amendments would adversely affect
access to clearing for clearing members
or their customers, or otherwise
adversely affect competition in clearing
services.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments relating to the
proposed changes to the rules have not
been solicited or received. ICE Clear
Europe will notify the Commission of
any written comments received by ICE
Clear Europe.
emcdonald on DSK67QTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A) 7 of the Act and Rule 19b–
4(f) 8 thereunder because it effects a
change in an existing service of a
registered clearing agency that primarily
affects the clearing operations of the
clearing agency with respect to products
that are not securities, including futures
that are not security futures, swaps that
are not security-based swaps or mixed
swaps, and forwards that are not
security forwards, and does not
significantly affect any securities
clearing operations of the clearing
agency or any rights or obligations of the
clearing agency with respect to
securities clearing or persons using such
securities-clearing service. 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.
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
7 15
8 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Mar<15>2010
17:33 Jun 20, 2014
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICEEU–2014–08 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–ICEEU–2014–08. 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
filings will also be available for
inspection and copying at the principal
office of ICE Clear Europe and on ICE
Clear Europe’s Web site at https://
www.theice.com/notices/
Notices.shtml?regulatoryFilings.
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–ICEEU–2014–08 and
should be submitted on or before July
14, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–14538 Filed 6–20–14; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72410; File No. SR–MIAX–
2014–27]
Self-Regulatory Organizations: Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change by Miami
International Securities Exchange LLC
To Establish a Billing Dispute Practice
June 17, 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 June 9, 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 various Exchange Rules related
to fees and the cover page of the MIAX
Options 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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rules 200(e), 208, and 1203. The
BILLING CODE 8011–01–P
1 15
9 17
Jkt 232001
PO 00000
CFR 200.30–3(a)(12).
Frm 00094
Fmt 4703
35605
2 17
Sfmt 4703
E:\FR\FM\23JNN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
23JNN1
35606
Federal Register / Vol. 79, No. 120 / Monday, June 23, 2014 / Notices
emcdonald on DSK67QTVN1PROD with NOTICES
Exchange also proposes to amend the
Fee Schedule to add language regarding
fee disputes.
First, the Exchange proposes to
amend Rule 200(e) to eliminate the
description of when the Trading Permit
fee is due and payable each month.
Currently, Rule 200(e) states that the
Trading Permit fee is due and payable
in full on or before the first day on
which the Trading Permit is effective.
However, as the Exchange’s Fee
Schedule indicates, the monthly
Trading Permit fees are calculated for
certain Members 3 based upon the
greatest number of assigned classes on
any given day within a particular
calendar month. The Exchange proposes
to amend Rule 200(e) to eliminate the
statement indicating that the entire
Trading Permit fee shall be due and
payable on or before the first day on
which the Trading Permit is effective
because the Exchange does not actually
calculate and invoice the Trading
Permit fee until the month is completed.
Second, the Exchange proposes to
amend Rule 208 to provide that the
monthly Exchange invoices are to be
paid in full on a timely basis. Rule 208
describes the MIAX Billing System and
the requirement to designate a Clearing
Member for the payment of Exchange
invoices. Rule 208 currently requires the
designated Clearing Member to pay on
a timely basis ‘‘any amount that is not
disputed’’ by the Member rather than
the full amount of the Exchange invoice.
The Exchange proposes to amend Rule
208 to provide that the designated
Clearing Member shall pay to the
Exchange on a timely basis the full
amount of each monthly Exchange
invoice because, as discussed in detail
below, the Exchange proposes to handle
fee disputes in Proposed Rule 1203(e).
In accordance with the Proposed Rule
1203(e), the Exchange expects all
invoices to be paid in full including any
disputed amount. If the dispute is
resolved in the Member’s favor, any
disputed amount will be subsequently
credited to the Clearing Member on
behalf of that Member’s account. The
Exchange believes that this change will
avoid confusion because it will be
consistent with Proposed Rule 1203(e).
In addition, the Exchange proposes
replacing the term ‘‘designated’’ in the
first sentence of Rule 208 with the term
3 The amount of the monthly Trading Permit fee
for a Lead Market Maker (‘‘LMM’’) or a Registered
Market Maker (‘‘RMM’’) is calculated based on the
number of their assigned classes. The amount of the
monthly Trading Permit fee for an Electronic
Exchange Member (‘‘EEM’’) is a flat rate and not
dependent upon the number of classes traded or
any other such measure. Nevertheless, the
Exchange, for consistency purposes, invoices
Trading Permit fees in arrears for all Members.
VerDate Mar<15>2010
17:33 Jun 20, 2014
Jkt 232001
‘‘assessed’’ to more accurately reflect the
action being taken by the Exchange.
The Exchange proposes to create Rule
1203(e) to establish a billing practice to
prevent Members from contesting their
bills long after they have been sent an
invoice. In accordance with Proposed
Rule 1203(e), all disputes concerning
fees, dues or charges assessed by the
Exchange must be submitted to the
Exchange in writing and must be
accompanied by supporting
documentation. All disputes related to
fees, dues or other charges must be
submitted to the Exchange no later than
sixty (60) days after the date of the
monthly invoice. All Exchange invoices
are due in full on a timely basis and
payable in accordance with Rule 208.
Any disputed amount resolved in the
Member’s favor will be subsequently
credited to the Clearing Member’s
account at the Clearing Corporation. The
Exchange provides Members with both
daily and monthly fee reports and thus
believes Members should be aware of
any potential billing errors within sixty
calendar days of issuance of an invoice.
Requiring that Members dispute an
invoice within this time period will
encourage them to promptly review
their invoices so that any disputed
charges can be addressed in a timely
manner while the information and data
underlying those charges (e.g.,
applicable fees and order information) is
still easily and readily available. This
practice will avoid issues that may arise
when Members do not dispute an
invoice in a timely manner, and will
conserve Exchange resources that would
have to be expended to resolve untimely
billing disputes. The Exchange notes
that this type of provision is common
among other exchanges.4 In addition,
the Exchange proposes to state that all
billing disputes must be submitted to
the Exchange in writing,5 and must be
accompanied by supporting
documentation. The Exchange believes
that this requirement, which is also
similar to requirements of other
exchanges,6 will further streamline the
billing dispute process. In addition, in
order for Members to be fully aware of
this rule regarding fee disputes, the
Exchange proposes to place a statement
on the cover of the MIAX Options Fee
Schedule and at the bottom of each
4 See e.g., Securities Exchange Act Release Nos.
62661 (August 6, 2010), 75 FR 49544 (August 13,
2010) (SR–Phlx–2010–110); 71297 (January 14,
2014), 79 FR 3442 (January 21, 2014) (SR–ISE–
2014–02).
5 The Exchange invoice specifies contact
information for billing inquiries.
6 See supra note 4.
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
invoice regarding the handling of billing
disputes.
2. Statutory Basis
The Exchange believes that its
proposed rule change is consistent with
Section 6(b) 7 of the Act in general, and
furthers the objectives of Section
6(b)(4) 8 of the Act in particular, in that
it is designed to provide for an equitable
allocation of reasonable dues, fees and
other charges among Exchange Members
and other persons using its facilities. In
addition, the Exchange believes the
proposed rule change also furthers the
objectives of Section 6(b)(5) of the Act 9
in particular, in that it is designed to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and, in general, to protect investors and
the public interest, and it is not
designed to permit unfair
discrimination among customers,
brokers, or dealers. The Exchange’s
proposal relates to how fees are
invoiced and collected and will protect
investors and the public interest by
eliminating potential confusion that
could be caused by the existing
language used to describe the
Exchange’s billing practices. The
Exchange’s proposal provides for the
equitable allocation of fees, dues and
other charges because it applies equally
to all Members and any persons using
the facilities or services of the Exchange.
Additionally, the Exchange believes
the requirement that all invoices be paid
in full and billing disputes be submitted
within 60 days after the date of the
invoice is reasonable because the
Exchange provides ample tools to
properly and swiftly monitor and
account for various charges incurred in
a given month. Also, the proposal is
equitable because it equally applies to
all Members. The Exchange’s
administrative costs will be lowered as
a result of this policy. The proposed
provision regarding fee disputes
promotes the protection of investors and
the public interest by providing a clear
and concise mechanism in the Exchange
Rules for Members to dispute fees and
the Exchange to review such disputes in
a timely manner. In addition, the
proposed 60 day limitation is fair and
equitable since it will be implemented
prospectively on all Members, only
applying to invoices issued after the
proposed rule change becomes
operative.
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
9 15 U.S.C. 78f(b)(5).
8 15
E:\FR\FM\23JNN1.SGM
23JNN1
Federal Register / Vol. 79, No. 120 / Monday, June 23, 2014 / Notices
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
proposed rule changes to revise
Exchange Rules related to fees and to
add a new provision regarding fee
disputes should reduce possible
confusion regarding the procedures for
establishing, invoicing and collecting
fees, dues and other charges. Since the
Exchange proposes no substantive
changes regarding fees applicable to
Members, the proposal does not impose
any burden on competition.
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 10 and Rule 19b–4(f)(6) 11
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.
emcdonald on DSK67QTVN1PROD with NOTICES
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.
10 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.
11 17
VerDate Mar<15>2010
17:33 Jun 20, 2014
Jkt 232001
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–2014–27 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–2014–27. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet 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–
2014–27 and should be submitted on or
before July 14, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–14542 Filed 6–20–14; 8:45 am]
BILLING CODE 8011–01–P
12 17
PO 00000
Frm 00096
Fmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72413; File No. SR–CME–
2014–22]
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Physical Delivery
of CLS-Eligible Foreign Currencies
June 17, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule
19b–4 thereunder,2 notice is hereby
given that on June 9, 2014, Chicago
Mercantile Exchange Inc. (‘‘CME’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change described in Items
I and II below, which Items have been
prepared primarily by CME. CME filed
the proposal pursuant to Section
19(b)(3)(A) of the Act,3 and Rule 19b–
4(f)(4)(ii) 4 thereunder, so that the
proposal was effective upon filing with
the Commission. 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
CME is filing the proposed rule
change that is limited to its business as
a derivatives clearing organization.
More specifically, the proposed rule
change would make amendments to its
current procedures for facilitating
physical delivery of CLS-eligible foreign
currencies.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CME included statements concerning
the purpose 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. CME has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4)(ii).
2 17
CFR 200.30–3(a)(12).
Sfmt 4703
35607
E:\FR\FM\23JNN1.SGM
23JNN1
Agencies
[Federal Register Volume 79, Number 120 (Monday, June 23, 2014)]
[Notices]
[Pages 35605-35607]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14542]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72410; File No. SR-MIAX-2014-27]
Self-Regulatory Organizations: Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change by Miami International
Securities Exchange LLC To Establish a Billing Dispute Practice
June 17, 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 June 9, 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 various Exchange Rules
related to fees and the cover page of the MIAX Options 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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rules 200(e), 208, and 1203. The
[[Page 35606]]
Exchange also proposes to amend the Fee Schedule to add language
regarding fee disputes.
First, the Exchange proposes to amend Rule 200(e) to eliminate the
description of when the Trading Permit fee is due and payable each
month. Currently, Rule 200(e) states that the Trading Permit fee is due
and payable in full on or before the first day on which the Trading
Permit is effective. However, as the Exchange's Fee Schedule indicates,
the monthly Trading Permit fees are calculated for certain Members \3\
based upon the greatest number of assigned classes on any given day
within a particular calendar month. The Exchange proposes to amend Rule
200(e) to eliminate the statement indicating that the entire Trading
Permit fee shall be due and payable on or before the first day on which
the Trading Permit is effective because the Exchange does not actually
calculate and invoice the Trading Permit fee until the month is
completed.
---------------------------------------------------------------------------
\3\ The amount of the monthly Trading Permit fee for a Lead
Market Maker (``LMM'') or a Registered Market Maker (``RMM'') is
calculated based on the number of their assigned classes. The amount
of the monthly Trading Permit fee for an Electronic Exchange Member
(``EEM'') is a flat rate and not dependent upon the number of
classes traded or any other such measure. Nevertheless, the
Exchange, for consistency purposes, invoices Trading Permit fees in
arrears for all Members.
---------------------------------------------------------------------------
Second, the Exchange proposes to amend Rule 208 to provide that the
monthly Exchange invoices are to be paid in full on a timely basis.
Rule 208 describes the MIAX Billing System and the requirement to
designate a Clearing Member for the payment of Exchange invoices. Rule
208 currently requires the designated Clearing Member to pay on a
timely basis ``any amount that is not disputed'' by the Member rather
than the full amount of the Exchange invoice. The Exchange proposes to
amend Rule 208 to provide that the designated Clearing Member shall pay
to the Exchange on a timely basis the full amount of each monthly
Exchange invoice because, as discussed in detail below, the Exchange
proposes to handle fee disputes in Proposed Rule 1203(e). In accordance
with the Proposed Rule 1203(e), the Exchange expects all invoices to be
paid in full including any disputed amount. If the dispute is resolved
in the Member's favor, any disputed amount will be subsequently
credited to the Clearing Member on behalf of that Member's account. The
Exchange believes that this change will avoid confusion because it will
be consistent with Proposed Rule 1203(e). In addition, the Exchange
proposes replacing the term ``designated'' in the first sentence of
Rule 208 with the term ``assessed'' to more accurately reflect the
action being taken by the Exchange.
The Exchange proposes to create Rule 1203(e) to establish a billing
practice to prevent Members from contesting their bills long after they
have been sent an invoice. In accordance with Proposed Rule 1203(e),
all disputes concerning fees, dues or charges assessed by the Exchange
must be submitted to the Exchange in writing and must be accompanied by
supporting documentation. All disputes related to fees, dues or other
charges must be submitted to the Exchange no later than sixty (60) days
after the date of the monthly invoice. All Exchange invoices are due in
full on a timely basis and payable in accordance with Rule 208. Any
disputed amount resolved in the Member's favor will be subsequently
credited to the Clearing Member's account at the Clearing Corporation.
The Exchange provides Members with both daily and monthly fee reports
and thus believes Members should be aware of any potential billing
errors within sixty calendar days of issuance of an invoice. Requiring
that Members dispute an invoice within this time period will encourage
them to promptly review their invoices so that any disputed charges can
be addressed in a timely manner while the information and data
underlying those charges (e.g., applicable fees and order information)
is still easily and readily available. This practice will avoid issues
that may arise when Members do not dispute an invoice in a timely
manner, and will conserve Exchange resources that would have to be
expended to resolve untimely billing disputes. The Exchange notes that
this type of provision is common among other exchanges.\4\ In addition,
the Exchange proposes to state that all billing disputes must be
submitted to the Exchange in writing,\5\ and must be accompanied by
supporting documentation. The Exchange believes that this requirement,
which is also similar to requirements of other exchanges,\6\ will
further streamline the billing dispute process. In addition, in order
for Members to be fully aware of this rule regarding fee disputes, the
Exchange proposes to place a statement on the cover of the MIAX Options
Fee Schedule and at the bottom of each invoice regarding the handling
of billing disputes.
---------------------------------------------------------------------------
\4\ See e.g., Securities Exchange Act Release Nos. 62661 (August
6, 2010), 75 FR 49544 (August 13, 2010) (SR-Phlx-2010-110); 71297
(January 14, 2014), 79 FR 3442 (January 21, 2014) (SR-ISE-2014-02).
\5\ The Exchange invoice specifies contact information for
billing inquiries.
\6\ See supra note 4.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) \7\ of the Act in general, and furthers the
objectives of Section 6(b)(4) \8\ of the Act in particular, in that it
is designed to provide for an equitable allocation of reasonable dues,
fees and other charges among Exchange Members and other persons using
its facilities. In addition, the Exchange believes the proposed rule
change also furthers the objectives of Section 6(b)(5) of the Act \9\
in particular, in that it is designed to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and, in
general, to protect investors and the public interest, and it is not
designed to permit unfair discrimination among customers, brokers, or
dealers. The Exchange's proposal relates to how fees are invoiced and
collected and will protect investors and the public interest by
eliminating potential confusion that could be caused by the existing
language used to describe the Exchange's billing practices. The
Exchange's proposal provides for the equitable allocation of fees, dues
and other charges because it applies equally to all Members and any
persons using the facilities or services of the Exchange.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Additionally, the Exchange believes the requirement that all
invoices be paid in full and billing disputes be submitted within 60
days after the date of the invoice is reasonable because the Exchange
provides ample tools to properly and swiftly monitor and account for
various charges incurred in a given month. Also, the proposal is
equitable because it equally applies to all Members. The Exchange's
administrative costs will be lowered as a result of this policy. The
proposed provision regarding fee disputes promotes the protection of
investors and the public interest by providing a clear and concise
mechanism in the Exchange Rules for Members to dispute fees and the
Exchange to review such disputes in a timely manner. In addition, the
proposed 60 day limitation is fair and equitable since it will be
implemented prospectively on all Members, only applying to invoices
issued after the proposed rule change becomes operative.
[[Page 35607]]
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 proposed rule changes to
revise Exchange Rules related to fees and to add a new provision
regarding fee disputes should reduce possible confusion regarding the
procedures for establishing, invoicing and collecting fees, dues and
other charges. Since the Exchange proposes no substantive changes
regarding fees applicable to Members, the proposal does not impose any
burden on competition.
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 \10\ and Rule 19b-4(f)(6) \11\
thereunder.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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-2014-27 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-2014-27. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet 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-2014-27 and should be
submitted on or before July 14, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-14542 Filed 6-20-14; 8:45 am]
BILLING CODE 8011-01-P