Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Options Fee Schedule, 64642-64644 [2014-25780]

Download as PDF 64642 Federal Register / Vol. 79, No. 210 / Thursday, October 30, 2014 / Notices Program. The proposed rule change allows for an extension of the Program for the benefit of market participants. Additionally, the Exchange believes that there is demand for the expirations offered under the Program and believes that that EOWs and EOMs will continue to provide the investing public and other market participants increased opportunities to better manage their risk exposure. B. Self-Regulatory Organization’s Statement on Burden on Competition CBOE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Specifically, the Exchange believes that, by extending the expiration of the Program, the proposed rule change will allow for further analysis of the Program and a determination of how the Program shall be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. tkelley on DSK3SPTVN1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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 from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 9 and Rule 19b–4(f)(6)(iii) thereunder.10 The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6)(iii). As required under Rule 19b–4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of 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. 10 17 VerDate Sep<11>2014 17:40 Oct 29, 2014 Jkt 235001 waiving the 30-day operative delay is consistent with the protection of investors and the public interest, as it will allow the pilot program to continue uninterrupted, thereby avoiding investor confusion that could result from a temporary interruption in the pilot program. For this reason, the Commission designates the proposed rule change to be operative upon filing.11 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– CBOE–2014–079 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–CBOE–2014–079. 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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be 11 For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 available for Web site viewing and printing in the Commission’s Public Reference Room at 100 F Street NE., Washington, DC 20549–1090 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CBOE– 2014–079 and should be submitted on or before November 20, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–25779 Filed 10–29–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73425; File No. SR–MIAX– 2014–55] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Options Fee Schedule October 24, 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 October 16, 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 the MIAX Options Fee Schedule (the ‘‘Fee Schedule’’). The text of the proposed rule change is available on the Exchange’s Web site at http://www.miaxoptions.com/filter/ 12 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\30OCN1.SGM 30OCN1 Federal Register / Vol. 79, No. 210 / Thursday, October 30, 2014 / Notices 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 tkelley on DSK3SPTVN1PROD with NOTICES 1. Purpose The Exchange proposes to amend its marketing fee.3 The marketing fee is assessed on certain transactions of all Market Makers.4 The funds collected via this marketing fee are then put into pools controlled by Primary Lead Market Makers (‘‘PLMMs’’) and LMMs. The PLMM or LMM controlling a certain pool of funds can then determine the Electronic Exchange Member(s) (‘‘EEM’’) to which the funds should be directed in order to encourage such EEM(s) to send orders to the Exchange. In accordance with Exchange Rule 514, an EEM can designate an order (‘‘Directed Order’’) to a specific LMM. Currently, Section (1)(b) of the Fee Schedule, provides that to qualify for a marketing fee allocation for an applicable month, an LMM must either: (i) Have an appointment in the relevant option class at the time of being directed the order; or (ii) for the month preceding the applicable month (the ‘‘qualifying month’’) have an appointment as an LMM for at least ten (10) trading days in a minimum of fifty percent (50%) of the option classes listed on the Exchange for the entire qualifying month. For non-directed orders and orders directed to non-qualifying LMMs, applicable Marketing Fees are allocated to the PLMM’s Marketing Fee ‘‘pool.’’ All Market Makers that participated in 3 The proposal is based on a substantially similar filing by the Chicago Board Options Exchange, Incorporated. See Securities Exchange Act Release No. 68131 (November 1, 2012), 77 FR 67032 (November 8, 2012) (SR–CBOE–2012–101). 4 See MIAX Options Fee Schedule, Section (1)(b), entitled Marketing Fee for more detail regarding the marketing fee. VerDate Sep<11>2014 17:40 Oct 29, 2014 Jkt 235001 such transactions will pay the applicable Marketing Fee to the Exchange, which will allocate such funds to the Member that controls the distribution of the Marketing Fee ‘‘pool.’’ Each month the Member will submit written instructions to MIAX describing how MIAX is to distribute the Marketing Fees in the ‘‘pool’’ to Electronic Exchange Members identified by the Member. However, other options exchanges allow an LMM (or similar position) to have access to the marketing fee funds generated from a Directed Order (or similar order type) regardless of whether the LMM has an appointment in a class in which the Directed Order is received and executed without the additional requirement for an LMM to have at least ten (10) trading days in a minimum of fifty percent (50%) of the option classes listed on the Exchange for the entire qualifying month.5 The Exchange now proposes to remove this additional requirement so that its marketing fee program operates in a manner more similar to that of competing options exchanges that offer similar programs. The Exchange proposes amending the Fee Schedule to allow LMMs to receive an allocation of marketing fees generated by Directed Orders sent to the LMM without any additional requirements. Specifically, the Exchange proposes to remove the requirements that provide that an LLM, in order to qualify to be allocated Marketing Fees for Directed Orders for an applicable month, must either: (i) Have an appointment in the relevant option class at the time of being directed the order; or (ii) for the month preceding the applicable month (the ‘‘qualifying month’’) have an appointment as an LMM for at least ten (10) trading days in a minimum of fifty percent (50%) of the option classes listed on the Exchange for the entire qualifying month. The proposed changes will more closely align the Exchange’s marketing fee program with the requirements of other competing exchanges that offer similar programs.6 Permitting LMMs to be allocated marketing fees generated from a 5 See CBOE Fees Schedule, fn. 6; NASDAQ OMX Phlx, LLC (‘‘Phlx’’) Pricing Schedule, section on Payment for Order Flow Fee; NYSE Amex Options Fee Schedule, fn. 10; International Securities Exchange, LLC (‘‘ISE’’) Schedule of Fees, Section IV(D)[sic]. None of which contain requirements that a PLMM or LMM (or similar position) have an appointment in the class in which a Directed Order (or similar order type) is received and executed nor the additional requirement of a minimum number of options class appointments in order to have access to the marketing fee funds generated from that Preferred order. 6 See id. PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 64643 Directed Order without these additional requirements would allow LMMs to encourage greater order flow to be sent to the Exchange. This increased order flow would benefit all market participants on the Exchange, such as customers with resting orders on the Exchange and LMMs that have an appointment and quote in the relevant option. Allowing LMMs to be allocated marketing fees generated from a Directed Order in the manner that is proposed would provide LMMs with an incentive to encourage the routing of order flow into classes in which the LMM otherwise would not. Further, the proposal will also provide LMMs with more flexibility to determine which classes that they choose to be appointed in and still receive payment for order flow without the restrictive criteria; as they will not have to be concerned with whether or not they have met the minimum class appointment threshold prior to making arrangements to paying for order flow in a specific class. The proposed fee changes are to take effect on November 1, 2014. 2. Statutory Basis MIAX believes that its proposed rule change is consistent with Section 6(b) of the Act 7 in general, and furthers the objectives of Section 6(b)(5) of the Act 8 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 Exchange believes that this proposal to remove a requirement that other exchanges do not share, perfects the mechanism for a free and open market and a national market system by allowing the Exchange’s marketing fee program to operate in a manner similar to competing options exchanges. In addition, the proposal promotes just and equitable principles of trade by encouraging greater order flow to be sent to the Exchange through Directed Orders in a manner that will benefit all market participants on the Exchange. The Exchange also believes that the proposed changes to the marketing fee is consistent with Section 6(b)(4) of the Act 9 which provides that Exchange 7 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 9 15 U.S.C. 78f(b)(4). 8 15 E:\FR\FM\30OCN1.SGM 30OCN1 64644 Federal Register / Vol. 79, No. 210 / Thursday, October 30, 2014 / Notices 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– 2014–55 and should be submitted on or before November 20, 2014. rules may provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. The proposed change is reasonable because it will allow LMMs greater access to marketing fee funds. The proposed change is equitable and not unfairly discriminatory because it is designed to allow LMMs to encourage greater order flow to be sent to the Exchange. A LMM could be able to amass a greater pool of funds with which to use to incent order flow providers to send order flow to the Exchange. This increased order flow would benefit all market participants on the Exchange. Further, allowing additional LMMs to access marketing fee funds generated from a Directed Order would provide LMMs with an incentive to encourage the routing of order flow into classes in which the LMM otherwise would not. 19(b)(3)(A)(ii) of the Act.10 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: [FR Doc. 2014–25780 Filed 10–29–14; 8:45 am] B. Self-Regulatory Organization’s Statement on Burden on Competition Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– MIAX–2014–55 on the subject line. AGENCY: 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 change would place the Exchange on equal footing as other exchanges that allow their LMM equivalents to be allocated marketing fees generated by Directed Orders. The Exchange believes that such an even playing field will promote competition among options exchanges. The Exchange notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues who offer similar fee structures. Many competing venues offer similar fee structures to market participants. To this end, the Exchange is proposing a market enhancement to encourage market participants to trade on the Exchange. The Exchange believes the proposed rule change is procompetitive because it would enable the Exchange to provide member organizations with a fee structure that is similar to that of other exchanges. tkelley on DSK3SPTVN1PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section VerDate Sep<11>2014 17:40 Oct 29, 2014 Jkt 235001 Paper Comments • Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549. All submissions should refer to File Number SR–MIAX–2014–55. 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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments 10 15 PO 00000 U.S.C. 78s(b)(3)(A)(ii). Frm 00082 Fmt 4703 Sfmt 4703 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Kevin M. O’Neill, Deputy Secretary. BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION Reporting and Recordkeeping Requirements Under OMB Review ACTION: Small Business Administration. 30-Day notice. The Small Business Administration (SBA) is publishing this notice to comply with requirements of the Paperwork Reduction Act (PRA) (44 U.S.C. Chapter 35), which requires agencies to submit proposed reporting and recordkeeping requirements to OMB for review and approval, and to publish a notice in the Federal Register notifying the public that the agency has made such a submission. This notice also allows an additional 30 days for public comments. DATES: Submit comments on or before December 1, 2014. ADDRESSES: Comments should refer to the information collection by name and/ or OMB Control Number and should be sent to: Agency Clearance Officer, Curtis Rich, Small Business Administration, 409 3rd Street SW., 5th Floor, Washington, DC 20416; and SBA Desk Officer, Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Washington, DC 20503. FOR FURTHER INFORMATION CONTACT: Curtis Rich, Agency Clearance Officer, (202) 205–7030 curtis.rich@sba.gov Copies: A copy of the Form OMB 83– 1, supporting statement, and other documents submitted to OMB for review may be obtained from the Agency Clearance Officer. SUPPLEMENTARY INFORMATION: The Small Business Investment Act authorizes SBA to guarantee a debenture issued by a Certified Development Company (CDC). The proceeds from each SUMMARY: 11 17 E:\FR\FM\30OCN1.SGM CFR 200.30–3(a)(12). 30OCN1

Agencies

[Federal Register Volume 79, Number 210 (Thursday, October 30, 2014)]
[Notices]
[Pages 64642-64644]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-25780]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73425; File No. SR-MIAX-2014-55]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the MIAX Options Fee Schedule

October 24, 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 October 16, 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 the MIAX Options Fee 
Schedule (the ``Fee Schedule'').
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.miaxoptions.com/filter/

[[Page 64643]]

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 its marketing fee.\3\ The marketing 
fee is assessed on certain transactions of all Market Makers.\4\ The 
funds collected via this marketing fee are then put into pools 
controlled by Primary Lead Market Makers (``PLMMs'') and LMMs. The PLMM 
or LMM controlling a certain pool of funds can then determine the 
Electronic Exchange Member(s) (``EEM'') to which the funds should be 
directed in order to encourage such EEM(s) to send orders to the 
Exchange. In accordance with Exchange Rule 514, an EEM can designate an 
order (``Directed Order'') to a specific LMM.
---------------------------------------------------------------------------

    \3\ The proposal is based on a substantially similar filing by 
the Chicago Board Options Exchange, Incorporated. See Securities 
Exchange Act Release No. 68131 (November 1, 2012), 77 FR 67032 
(November 8, 2012) (SR-CBOE-2012-101).
    \4\ See MIAX Options Fee Schedule, Section (1)(b), entitled 
Marketing Fee for more detail regarding the marketing fee.
---------------------------------------------------------------------------

    Currently, Section (1)(b) of the Fee Schedule, provides that to 
qualify for a marketing fee allocation for an applicable month, an LMM 
must either: (i) Have an appointment in the relevant option class at 
the time of being directed the order; or (ii) for the month preceding 
the applicable month (the ``qualifying month'') have an appointment as 
an LMM for at least ten (10) trading days in a minimum of fifty percent 
(50%) of the option classes listed on the Exchange for the entire 
qualifying month. For non-directed orders and orders directed to non-
qualifying LMMs, applicable Marketing Fees are allocated to the PLMM's 
Marketing Fee ``pool.'' All Market Makers that participated in such 
transactions will pay the applicable Marketing Fee to the Exchange, 
which will allocate such funds to the Member that controls the 
distribution of the Marketing Fee ``pool.'' Each month the Member will 
submit written instructions to MIAX describing how MIAX is to 
distribute the Marketing Fees in the ``pool'' to Electronic Exchange 
Members identified by the Member.
    However, other options exchanges allow an LMM (or similar position) 
to have access to the marketing fee funds generated from a Directed 
Order (or similar order type) regardless of whether the LMM has an 
appointment in a class in which the Directed Order is received and 
executed without the additional requirement for an LMM to have at least 
ten (10) trading days in a minimum of fifty percent (50%) of the option 
classes listed on the Exchange for the entire qualifying month.\5\ The 
Exchange now proposes to remove this additional requirement so that its 
marketing fee program operates in a manner more similar to that of 
competing options exchanges that offer similar programs.
---------------------------------------------------------------------------

    \5\ See CBOE Fees Schedule, fn. 6; NASDAQ OMX Phlx, LLC 
(``Phlx'') Pricing Schedule, section on Payment for Order Flow Fee; 
NYSE Amex Options Fee Schedule, fn. 10; International Securities 
Exchange, LLC (``ISE'') Schedule of Fees, Section IV(D)[sic]. None 
of which contain requirements that a PLMM or LMM (or similar 
position) have an appointment in the class in which a Directed Order 
(or similar order type) is received and executed nor the additional 
requirement of a minimum number of options class appointments in 
order to have access to the marketing fee funds generated from that 
Preferred order.
---------------------------------------------------------------------------

    The Exchange proposes amending the Fee Schedule to allow LMMs to 
receive an allocation of marketing fees generated by Directed Orders 
sent to the LMM without any additional requirements. Specifically, the 
Exchange proposes to remove the requirements that provide that an LLM, 
in order to qualify to be allocated Marketing Fees for Directed Orders 
for an applicable month, must either: (i) Have an appointment in the 
relevant option class at the time of being directed the order; or (ii) 
for the month preceding the applicable month (the ``qualifying month'') 
have an appointment as an LMM for at least ten (10) trading days in a 
minimum of fifty percent (50%) of the option classes listed on the 
Exchange for the entire qualifying month. The proposed changes will 
more closely align the Exchange's marketing fee program with the 
requirements of other competing exchanges that offer similar 
programs.\6\
---------------------------------------------------------------------------

    \6\ See id.
---------------------------------------------------------------------------

    Permitting LMMs to be allocated marketing fees generated from a 
Directed Order without these additional requirements would allow LMMs 
to encourage greater order flow to be sent to the Exchange. This 
increased order flow would benefit all market participants on the 
Exchange, such as customers with resting orders on the Exchange and 
LMMs that have an appointment and quote in the relevant option. 
Allowing LMMs to be allocated marketing fees generated from a Directed 
Order in the manner that is proposed would provide LMMs with an 
incentive to encourage the routing of order flow into classes in which 
the LMM otherwise would not. Further, the proposal will also provide 
LMMs with more flexibility to determine which classes that they choose 
to be appointed in and still receive payment for order flow without the 
restrictive criteria; as they will not have to be concerned with 
whether or not they have met the minimum class appointment threshold 
prior to making arrangements to paying for order flow in a specific 
class.
    The proposed fee changes are to take effect on November 1, 2014.
2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with 
Section 6(b) of the Act \7\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act \8\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that this proposal to remove a requirement 
that other exchanges do not share, perfects the mechanism for a free 
and open market and a national market system by allowing the Exchange's 
marketing fee program to operate in a manner similar to competing 
options exchanges. In addition, the proposal promotes just and 
equitable principles of trade by encouraging greater order flow to be 
sent to the Exchange through Directed Orders in a manner that will 
benefit all market participants on the Exchange.
    The Exchange also believes that the proposed changes to the 
marketing fee is consistent with Section 6(b)(4) of the Act \9\ which 
provides that Exchange

[[Page 64644]]

rules may provide for the equitable allocation of reasonable dues, 
fees, and other charges among its members and other persons using its 
facilities. The proposed change is reasonable because it will allow 
LMMs greater access to marketing fee funds. The proposed change is 
equitable and not unfairly discriminatory because it is designed to 
allow LMMs to encourage greater order flow to be sent to the Exchange. 
A LMM could be able to amass a greater pool of funds with which to use 
to incent order flow providers to send order flow to the Exchange. This 
increased order flow would benefit all market participants on the 
Exchange. Further, allowing additional LMMs to access marketing fee 
funds generated from a Directed Order would provide LMMs with an 
incentive to encourage the routing of order flow into classes in which 
the LMM otherwise would not.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

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 change would 
place the Exchange on equal footing as other exchanges that allow their 
LMM equivalents to be allocated marketing fees generated by Directed 
Orders. The Exchange believes that such an even playing field will 
promote competition among options exchanges. The Exchange notes that it 
operates in a highly competitive market in which market participants 
can readily direct order flow to competing venues who offer similar fee 
structures. Many competing venues offer similar fee structures to 
market participants. To this end, the Exchange is proposing a market 
enhancement to encourage market participants to trade on the Exchange. 
The Exchange believes the proposed rule change is procompetitive 
because it would enable the Exchange to provide member organizations 
with a fee structure that is similar to that of other exchanges.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act.\10\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-MIAX-2014-55 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549.
All submissions should refer to File Number SR-MIAX-2014-55. 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 (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-MIAX-2014-55 and should be 
submitted on or before November 20, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-25780 Filed 10-29-14; 8:45 am]
BILLING CODE 8011-01-P