Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 593-594 [2014-30891]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 80, Number 3 (Tuesday, January 6, 2015)]
[Notices]
[Pages 593-594]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-30891]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73957; File No. SR-MIAX-2014-068]


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

December 30, 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 December 19, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to modify the Trading Permit Fee 
for EEMs.
    The text of the proposed rule change is available on the Exchange's 
Web site at https://www.miaxoptions.com/filter/wotitle/rule_filing, at 
MIAX's principal office, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to modify its Monthly Trading Permit fee to 
increase the monthly Trading Permit fee that applies to Electronic 
Exchange Members (``EEMs''). Specifically, the Exchange proposes to 
increase the monthly Trading Permit fee that applies to EEMs to $1,500, 
from the current level of $1,000.
    The Exchange issues Trading Permits that confer the ability to 
transact on the Exchange.\3\ The Exchange assesses monthly fees for 
Trading Permits depending upon the category of Member that is issued a 
particular trading permit.\4\ EEMs are assessed a monthly fee of $1,000 
for a Trading Permit. All Market Makers, whether they are a Registered 
Market Makers (``RMMs''), Lead Market Makers (``LMMs''), or Primary 
Lead Market Makers (``PLMMs''), are assessed $4,000.00 per month for a 
Trading Permit for an assignment in up to 100 option classes, $5,500.00 
per month for a Trading Permit for an assignment in up to 250 option 
classes, or $7,000.00 per month for a Trading Permit for an assignment 
in all option classes listed on the Exchange.
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    \3\ There is no limit on the number of Trading Permits that may 
be issued by the Exchange; however the Exchange has the authority to 
limit or decrease the number of Trading Permits it has determined to 
issue provided it complies with the provisions set forth in Rule 
200(a) and Section 6(c)(4) of the Exchange Act. See 15 U.S.C. 
78(f)(c)(4). For a complete description of MIAX Trading Permits, see 
MIAX Rule 200.
    \4\ The monthly Trading Permit Fee is in addition to the one-
time application fee for MIAX Membership. The Exchange charges a 
one-time application fee based upon the applicant's status as either 
an Electronic Exchange Member (``EEM'') or as a Market Maker. 
Applicants for MIAX Membership as an EEM are assessed a one-time 
Application Fee of $2,500.00. Applicants for MIAX Membership as a 
Market Maker are assessed a one-time Application Fee of $3,000.00. 
The difference in the fee charged to EEMs and Market Makers reflects 
the additional review and processing effort needed for Market Maker 
applications.
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    The Exchange proposes to increase the monthly Trading Permit fee 
that applies to EEMs to $1,500, in order to increase the Exchange's 
non-transaction fee revenues. The Exchange notes that the proposed 
monthly Trading Permit fees are generally lower than monthly trading 
permit fees in place at CBOE and the NASDAQ OMX PHLX LLC (``PHLX''). 
The $1,500 monthly Trading Permit fee to be assessed to EEMs is lower 
than the CBOE's monthly electronic access trading permit fee ($1,600) 
and the PHLX's monthly permit fee for members ($2,150).
    Members receiving Trading Permits during the month will be assessed 
Trading Permit Fees according to the above schedule, except that the 
calculation of the Trading Permit fee for the first month in which the 
Trading Permit is issued will be pro-rated based on the number of 
trading days occurring

[[Page 594]]

after the date on which the Trading Permit was in effect during that 
first month divided by the total number of trading days in such month 
multiplied by the monthly rate.
    The Exchange proposes to implement the Trading Permit fees 
beginning January 1, 2015.
2. Statutory Basis
    The Exchange believes that its proposal to amend its fee schedule 
is consistent with Section 6(b) of the Act \5\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \6\ in particular, in that 
it is an equitable allocation of reasonable fees and other charges 
among Exchange members.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposed Trading Permit fee is 
reasonable, equitable and not unfairly discriminatory. The Exchange 
notes that the Trading Permit fees are lower than comparable fees at 
other exchanges as described in the Purpose section above. As such, the 
proposal is reasonably designed because it will incent market 
participants to register as EEMs on the Exchange in a manner that 
enables the Exchange to improve its overall competitiveness and 
strengthen its market quality for all market participants. The proposed 
fee is fair and equitable and not unreasonably discriminatory because 
the Trading Permit fee applies equally to all Members who choose to 
register as an EEM. All similarly situated EEMs will be subject to the 
same Trading Permit fee, and access to the Exchange is offered on terms 
that are not unfairly discriminatory.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange believes that the 
proposal increases both intermarket and intramarket competition by 
marginally increasing Trading Permit fees for EEMs on the Exchange in a 
manner that still remains lower than comparable fees on other 
exchanges. The Exchange notes that it operates in a highly competitive 
market in which market participants can readily favor competing venues 
if they deem fee levels at a particular venue to be excessive. In such 
an environment, the Exchange must continually adjust its fees to remain 
competitive with other exchanges and to attract order flow to the 
Exchange. The Exchange believes that the proposal reflects this 
competitive environment because it increases the Exchange's fees in a 
manner that continues to encourage market participants to register as 
EEMs on the Exchange, to provide liquidity, and to attract order flow. 
To the extent that this purpose is achieved, all the Exchange's market 
participants should benefit from the improved market liquidity.

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.\7\ 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-2014-068 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-2014-068. 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-2014-068 and should be 
submitted on or before January 27, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2014-30891 Filed 1-5-15; 8:45 am]
BILLING CODE 8011-01-P