Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 14196-14198 [2015-06093]

Download as PDF 14196 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74489; File No. SR–MIAX– 2015–13] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule March 12, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on February 27, 2015, Miami International Securities Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend 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. mstockstill on DSK4VPTVN1PROD with NOTICES 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 current MIAX Market Maker 3 sliding 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 ‘‘MIAX Market Maker’’ for purposes of the proposed sliding scale means any MIAX Market 2 17 VerDate Sep<11>2014 19:00 Mar 17, 2015 Jkt 235001 scale for transaction fees to: (i) Modify the volume thresholds in tiers 1, 2, 3; (ii) increase the transaction fee for volume tier 1; and (iii) increase the Priority Customer rebate incentive for tier 1. The sliding scale for MIAX Market Maker transaction fees is based on the substantially similar fees of the Chicago Board Options Exchange, Incorporated (‘‘CBOE’’).4 Specifically, the program reduces a MIAX Market Maker’s per contract transaction fee based on percentages of total national Market Maker volume of any options classes that trade on the exchange during the calendar month, based on the following scale: Tier 1 2 3 4 5 ... ... ... ... ... Percentage of national Market Maker volume 0.00%–0.05% ................... Above 0.05%–0.50% ....... Above 0.50%–0.80% ....... Above 0.80%–1.50% ....... Above 1.50% ................... Transaction fee per contract $0.25 0.17 0.12 0.07 0.05 The sliding scale would apply to all MIAX Market Makers for transactions in all products except mini-options. By amending the volume tier calculations, the sliding scale will more closely align with that of CBOE.5 A MIAX Market Maker’s initial $0.25 per contract rate will be reduced if the MIAX Market Maker reaches the volume thresholds set forth in the sliding scale in a month. As a MIAX Market Maker’s monthly volume increases, its per contract transaction fee would decrease. The Market Maker sliding scale will continue to apply to MIAX Market Maker (RMM, LMM, DLMM, PLMM, DPLMM) transaction fees in all products except mini-options. MIAX Market Makers will continue to be assessed a $0.02 per executed contract fee for transactions in mini-options. The Exchange believes the proposed sliding scale is objective in that the fee reductions are based solely on reaching stated volume thresholds. The specific volume thresholds of the tiers were set based upon business determinations and an analysis of current volume Maker including RMM, LMM, PLMM, DLMM, and DPLMM. 4 See Securities Exchange Act Release Nos. 55193 (January 30, 2007), 72 FR 5476 (February 6, 2007) (SR–CBOE–2006–111); 57191 (January 24, 2008), 73 FR 5611 (January 30, 2008); 58321 (August 6, 2008), 73 FR 46955 (SR–CBOE–2008–78). See also CBOE Fees Schedule, p. 3. 5 See Securities Exchange Act Release Nos. 55193 (January 30, 2007), 72 FR 5476 (February 6, 2007) (SR–CBOE–2006–111); 58321 (August 6, 2008), 73 FR 46955 (SR–CBOE–2008–78); 71295 (January 14, 2014), 79 FR 3443 (January 21, 2014) (SR–CBOE– 2013–129). PO 00000 Frm 00127 Fmt 4703 Sfmt 4703 levels. The specific volume thresholds and rates were set in order to encourage MIAX Market Makers to reach for higher tiers. The Exchange believes that the proposed changes to the tiered fee schedule may incent firms to display their orders on the Exchange and increase the volume of contracts traded here. As mentioned above, the Exchange notes that the proposed sliding fee scale for MIAX Market Makers structured on contract volume thresholds is based on the substantially similar fees of the CBOE.6 The Exchange also notes that a number of other exchanges have tiered fee schedules which offer different transaction fee rates depending on the monthly ADV of liquidity providing executions on their facilities.7 The Exchange also proposes to increase the rebate incentive for Priority Customer orders to correspond with the increase in the transaction fee for tier 1 of the MIAX Market Maker sliding scale. The Exchange offers MIAX Market Makers the opportunity to reduce transaction fees by $0.02 per contract in standard options if the Member or its affiliates of at least 75% common ownership between the firms as reflected on each firm’s Form BD, Schedule A, qualifies in a given month for Priority Customer Rebate Program volume tiers 3, 4, or 5 in the Fee Schedule. The Exchange proposes to amend the rebate incentive for Priority Customer orders in order to increase the rebate incentive for tier 1 to correspond with the increase in transaction fees for volume tier 1 of the MIAX Market Maker sliding scale. As proposed, any Member or its affiliates of at least 75% common ownership between the firms as reflected on each firm’s Form BD, Schedule A, that qualifies for Priority Customer Rebate Program volume tiers 3, 4, or 5 and is a MIAX Market Maker will be assessed $0.23 per contract for tier 1, $0.15 per contract for tier 2, $0.10 per contract for tier 3, $0.05 per contract for tier 4, and $0.03 per contract for tier 5 for transactions in standard options in lieu of the applicable transaction fees in the Market Maker sliding scale. The Exchange believes that these incentives will encourage MIAX Market Makers to transact a greater number of orders on the Exchange. 6 See Securities Exchange Act Release Nos. 55193 (January 30, 2007), 72 FR 5476 (February 6, 2007) (SR–CBOE–2006–111); 58321 (August 6, 2008), 73 FR 46955 (SR–CBOE–2008–78); 71295 (January 14, 2014), 79 FR 3443 (January 21, 2014) (SR–CBOE– 2013–129). 7 See, e.g., International Securities Exchange, LLC, Schedule of Fees, Section IV, C; NASDAQ Options Market, Chapter XV, Section 2. E:\FR\FM\18MRN1.SGM 18MRN1 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES Finally, the Exchange proposes to modify the name of the title of the column in the chart from ‘‘Contracts Per Month’’ to ‘‘Percentage Thresholds of National Market Maker Volume’’. The Exchange believes that the new title more clearly describes the type of threshold methodology that is being used for the fee. The proposed changes will become operative on March 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 8 in general, and furthers the objectives of Section 6(b)(4) of the Act 9 in particular, in that it is an equitable allocation of reasonable fees and other charges among Exchange members. The proposed volume based discount fee structure is not discriminatory in that all MIAX Market Makers are eligible to submit (or not submit) liquidity, and may do so at their discretion in the daily volumes they choose during the course of the billing period. All similarly situated MIAX Market Makers are subject to the same fee structure, and access to the Exchange is offered on terms that are not unfairly discriminatory. Volume based discounts have been widely adopted by options and equities markets, and are equitable because they are open to all MIAX Market Makers on an equal basis and provide discounts that are reasonably related to the value of an exchange’s market quality associated with higher volumes. The proposed fee levels and volume thresholds are reasonably designed to be comparable to those of other options exchanges employing similar fee programs, and also to attract additional liquidity and order flow to the Exchange. The Exchange’s proposal to provide MIAX Market Makers the opportunity to reduce transaction fees by $0.02 per contract in standard options, provided certain criteria are met, is reasonable because the Exchange desires to offer all such market participants an opportunity to lower their transaction fees. The Exchange’s proposal to offer MIAX Market Makers the opportunity to reduce transaction fees by $0.02 per contract in standard options, provided certain criteria are met, is equitable and not unfairly discriminatory because the Exchange offers all market participants, excluding Priority Customers, a means to reduce transaction fees by qualifying for volume tiers in the Priority Customer 8 15 9 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). VerDate Sep<11>2014 19:00 Mar 17, 2015 Rebate Program. The Exchange believes that offering all such market participants the opportunity to lower transaction fees by incentivizing them to transact Priority Customer order flow in turn benefits all market participants. Finally, the Exchange believes that the proposed to change to the name of the title of the column in the chart from ‘‘Contracts Per Month’’ to ‘‘Percentage Thresholds of National Market Maker Volume’’ is reasonable in that the new title more clearly describes the type of threshold methodology that is being used for the fee. 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 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. The Exchange believes that the proposed rule change reflects this competitive environment because it modifies the Exchange’s fees in a manner that encourages market participants to provide liquidity and to send order flow to the Exchange. 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 Jkt 235001 PO 00000 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–2015–13 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–2015–13. 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 filing also will be available for inspection and copying at the principal offices of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–MIAX– 2015–13, and should be submitted on or before April 8, 2015. U.S.C. 78s(b)(3)(A)(ii). Frm 00128 Fmt 4703 Sfmt 4703 14197 E:\FR\FM\18MRN1.SGM 18MRN1 14198 Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Brent J. Fields, Secretary. [FR Doc. 2015–06093 Filed 3–17–15; 08:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74490; File No. SR–FINRA– 2014–048] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of Amendment No. 1 to a Proposed Rule Change To Adopt FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) March 12, 2015. I. Introduction On November 14, 2014, Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule to adopt new FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) to address conflicts of interest relating to the publication and distribution of debt research reports. The proposal was published for comment in the Federal Register on November 24, 2014.3 The Commission received five comments on the proposal.4 On February 19, 2015, FINRA filed Amendment No. 1 responding to the comments received to the proposal as well as to propose amendments in response to these comments. On February 20, 2015, the Commission issued an order instituting proceedings pursuant to Section 19(b)(2)(B) of the Act 5 to determine whether to approve or disapprove the proposal. The order was published for comment in the Federal Register on February 26, 2015.6 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Exchange Act Release No. 73623 (Nov. 18, 2014); 79 FR 69905 (Nov. 24, 2014) (‘‘Notice’’). On January 6, 2015, FINRA consented to extending the time period for the Commission to either approve or disapprove the proposed rule change, or to institute proceedings to determine whether to approve or disapprove the proposed rule change, to February 20, 2015. 4 See infra note 10. 5 15 U.S.C. 78s(b)(2)(B). 6 Exchange Act Release No. 74340 (Feb. 20, 2015); 80 FR 10538 (Feb. 26, 2015). The comment period closes on March 19, 2015. mstockstill on DSK4VPTVN1PROD with NOTICES 1 15 VerDate Sep<11>2014 19:00 Mar 17, 2015 Jkt 235001 The proposed rule change, as modified by Amendment No. 1, is described in Items II and III below, which Items have been substantially prepared by FINRA.7 The Commission is publishing this notice to solicit comments from interested persons on the proposal as amended by Amendment No. 1. II. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change FINRA is proposing Amendment No. 1 to SR–FINRA–2014–048, a proposed rule change to adopt FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) to address conflicts of interest relating to the publication and distribution of debt research reports. The text of the proposed rule change is available on FINRA’s Web site at https://www.finra.org, at the principal office of FINRA and at the Commission’s Public Reference Room. III. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FINRA 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 V below. FINRA 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 Rule Filing History On November 14, 2014, FINRA filed with the Securities and Exchange Commission (‘‘Commission’’) SR– FINRA–2014–048,8 a proposed rule change to adopt in the consolidated FINRA rulebook (‘‘Consolidated FINRA Rulebook’’) 9 Rule 2242 (Debt Research 7 For a comparison of the changes of the rule text between the proposal as originally noticed and the proposal as amended by Amendment No. 1, see Exhibit 4 to SR–FINRA–2014–048. 8 See Securities Exchange Act Release No. 73623 (November 18, 2014), 79 FR 69905 (November 24, 2014) (Notice of Filing File No. SR–FINRA–2014– 048) (‘‘Proposing Release’’). The comment period closed on December 15, 2014. 9 The current FINRA rulebook includes, in addition to FINRA Rules, (1) NASD Rules and (2) rules incorporated from NYSE (‘‘Incorporated NYSE Rules’’) (together, the NASD Rules and Incorporated NYSE Rules are referred to as the ‘‘Transitional Rulebook’’). While the NASD Rules generally apply PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 Analysts and Debt Research Reports) to address conflicts of interest relating to the publication and distribution of debt research reports. The Commission published the proposed rule change for public comment in the Federal Register on November 24, 2014. The Commission received five comment letters directed to the filing.10 Based on comments received, FINRA is filing this Amendment No. 1 to respond to the comments and to propose amendments, where appropriate. The Amendment also includes a few technical, nonsubstantive changes. Proposal As described in greater detail in the Proposing Release, the proposed rule change would adopt a tiered approach that, in general, would provide retail debt research recipients with extensive protections similar to those provided to recipients of equity research under current and proposed FINRA rules, with modifications to reflect the different nature and trading of debt securities,11 while exempting from many of the provisions debt research distributed solely to eligible institutional investors. Definitions Most of the defined terms closely follow the defined terms for equity research in NASD Rule 2711, as amended by the equity research filing, with minor changes to reflect their application to debt research. The proposed definitions are set forth below. to all FINRA members, the Incorporated NYSE Rules apply only to those members of FINRA that are also members of the NYSE (‘‘Dual Members’’). For more information about the rulebook consolidation process, see Information Notice, March 12, 2008 (Rulebook Consolidation Process). 10 See Letter from Hugh D. Berkson, Executive Vice President and President-Elect, Public Investors Arbitration Bar Association, to Brent J. Fields, Secretary, SEC, dated December 15, 2014 (‘‘PIABA Debt’’); Letter from Kevin Zambrowicz, Associate General Counsel and Managing Director, and Sean Davy, Managing Director, Securities Industry and Financial Markets Association, to Brent J. Fields, Secretary, SEC, dated December 15, 2014 (‘‘SIFMA’’); Letter from Yoon-Young Lee, Wilmer Cutler Pickering Hale and Dorr LLP, to Brent J. Fields, Secretary, SEC, dated December 16, 2014 (‘‘WilmerHale Debt’’); Letter from William Beatty, President, North American Securities Administrators Association, Inc., Brent J. Fields, Secretary, SEC, dated December 19, 2014 (‘‘NASAA Debt’’); and Letter from Kurt N. Schacht, Managing Director, Standards and Financial Market Integrity, and Linda L. Rittenhouse, Director, Capital Markets Policy, CFA Institute, to Brent J. Fields, Secretary, SEC, dated February 9, 2015 (‘‘CFA Institute’’). 11 The proposed rule change reflects proposed amendments to FINRA’s equity research rules set forth in a companion filing to the proposed rule change (the ‘‘equity research filing’’). See Securities Exchange Act Release No. 73622 (November 18, 2014), 79 FR 69939 (November 24, 2014) (Notice of Filing File No. SR–FINRA–2014–047). See also Amendment No. 1 to SR–FINRA–2014–047. E:\FR\FM\18MRN1.SGM 18MRN1

Agencies

[Federal Register Volume 80, Number 52 (Wednesday, March 18, 2015)]
[Notices]
[Pages 14196-14198]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-06093]



[[Page 14196]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74489; File No. SR-MIAX-2015-13]


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

March 12, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on February 27, 2015, Miami International Securities Exchange LLC 
(``MIAX'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``SEC'' or ``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the Exchange. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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 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 its current MIAX Market Maker \3\ 
sliding scale for transaction fees to: (i) Modify the volume thresholds 
in tiers 1, 2, 3; (ii) increase the transaction fee for volume tier 1; 
and (iii) increase the Priority Customer rebate incentive for tier 1.
---------------------------------------------------------------------------

    \3\ ``MIAX Market Maker'' for purposes of the proposed sliding 
scale means any MIAX Market Maker including RMM, LMM, PLMM, DLMM, 
and DPLMM.
---------------------------------------------------------------------------

    The sliding scale for MIAX Market Maker transaction fees is based 
on the substantially similar fees of the Chicago Board Options 
Exchange, Incorporated (``CBOE'').\4\ Specifically, the program reduces 
a MIAX Market Maker's per contract transaction fee based on percentages 
of total national Market Maker volume of any options classes that trade 
on the exchange during the calendar month, based on the following 
scale:
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release Nos. 55193 (January 30, 
2007), 72 FR 5476 (February 6, 2007) (SR-CBOE-2006-111); 57191 
(January 24, 2008), 73 FR 5611 (January 30, 2008); 58321 (August 6, 
2008), 73 FR 46955 (SR-CBOE-2008-78). See also CBOE Fees Schedule, 
p. 3.

------------------------------------------------------------------------
                                                             Transaction
          Tier              Percentage of  national Market     fee per
                                     Maker volume              contract
------------------------------------------------------------------------
1.......................  0.00%-0.05%......................        $0.25
2.......................  Above 0.05%-0.50%................         0.17
3.......................  Above 0.50%-0.80%................         0.12
4.......................  Above 0.80%-1.50%................         0.07
5.......................  Above 1.50%......................         0.05
------------------------------------------------------------------------

    The sliding scale would apply to all MIAX Market Makers for 
transactions in all products except mini-options. By amending the 
volume tier calculations, the sliding scale will more closely align 
with that of CBOE.\5\ A MIAX Market Maker's initial $0.25 per contract 
rate will be reduced if the MIAX Market Maker reaches the volume 
thresholds set forth in the sliding scale in a month. As a MIAX Market 
Maker's monthly volume increases, its per contract transaction fee 
would decrease. The Market Maker sliding scale will continue to apply 
to MIAX Market Maker (RMM, LMM, DLMM, PLMM, DPLMM) transaction fees in 
all products except mini-options. MIAX Market Makers will continue to 
be assessed a $0.02 per executed contract fee for transactions in mini-
options.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release Nos. 55193 (January 30, 
2007), 72 FR 5476 (February 6, 2007) (SR-CBOE-2006-111); 58321 
(August 6, 2008), 73 FR 46955 (SR-CBOE-2008-78); 71295 (January 14, 
2014), 79 FR 3443 (January 21, 2014) (SR-CBOE-2013-129).
---------------------------------------------------------------------------

    The Exchange believes the proposed sliding scale is objective in 
that the fee reductions are based solely on reaching stated volume 
thresholds. The specific volume thresholds of the tiers were set based 
upon business determinations and an analysis of current volume levels. 
The specific volume thresholds and rates were set in order to encourage 
MIAX Market Makers to reach for higher tiers. The Exchange believes 
that the proposed changes to the tiered fee schedule may incent firms 
to display their orders on the Exchange and increase the volume of 
contracts traded here.
    As mentioned above, the Exchange notes that the proposed sliding 
fee scale for MIAX Market Makers structured on contract volume 
thresholds is based on the substantially similar fees of the CBOE.\6\ 
The Exchange also notes that a number of other exchanges have tiered 
fee schedules which offer different transaction fee rates depending on 
the monthly ADV of liquidity providing executions on their 
facilities.\7\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release Nos. 55193 (January 30, 
2007), 72 FR 5476 (February 6, 2007) (SR-CBOE-2006-111); 58321 
(August 6, 2008), 73 FR 46955 (SR-CBOE-2008-78); 71295 (January 14, 
2014), 79 FR 3443 (January 21, 2014) (SR-CBOE-2013-129).
    \7\ See, e.g., International Securities Exchange, LLC, Schedule 
of Fees, Section IV, C; NASDAQ Options Market, Chapter XV, Section 
2.
---------------------------------------------------------------------------

    The Exchange also proposes to increase the rebate incentive for 
Priority Customer orders to correspond with the increase in the 
transaction fee for tier 1 of the MIAX Market Maker sliding scale. The 
Exchange offers MIAX Market Makers the opportunity to reduce 
transaction fees by $0.02 per contract in standard options if the 
Member or its affiliates of at least 75% common ownership between the 
firms as reflected on each firm's Form BD, Schedule A, qualifies in a 
given month for Priority Customer Rebate Program volume tiers 3, 4, or 
5 in the Fee Schedule. The Exchange proposes to amend the rebate 
incentive for Priority Customer orders in order to increase the rebate 
incentive for tier 1 to correspond with the increase in transaction 
fees for volume tier 1 of the MIAX Market Maker sliding scale. As 
proposed, any Member or its affiliates of at least 75% common ownership 
between the firms as reflected on each firm's Form BD, Schedule A, that 
qualifies for Priority Customer Rebate Program volume tiers 3, 4, or 5 
and is a MIAX Market Maker will be assessed $0.23 per contract for tier 
1, $0.15 per contract for tier 2, $0.10 per contract for tier 3, $0.05 
per contract for tier 4, and $0.03 per contract for tier 5 for 
transactions in standard options in lieu of the applicable transaction 
fees in the Market Maker sliding scale.
    The Exchange believes that these incentives will encourage MIAX 
Market Makers to transact a greater number of orders on the Exchange.

[[Page 14197]]

    Finally, the Exchange proposes to modify the name of the title of 
the column in the chart from ``Contracts Per Month'' to ``Percentage 
Thresholds of National Market Maker Volume''. The Exchange believes 
that the new title more clearly describes the type of threshold 
methodology that is being used for the fee.
    The proposed changes will become operative on March 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 \8\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \9\ in particular, in that 
it is an equitable allocation of reasonable fees and other charges 
among Exchange members.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The proposed volume based discount fee structure is not 
discriminatory in that all MIAX Market Makers are eligible to submit 
(or not submit) liquidity, and may do so at their discretion in the 
daily volumes they choose during the course of the billing period. All 
similarly situated MIAX Market Makers are subject to the same fee 
structure, and access to the Exchange is offered on terms that are not 
unfairly discriminatory. Volume based discounts have been widely 
adopted by options and equities markets, and are equitable because they 
are open to all MIAX Market Makers on an equal basis and provide 
discounts that are reasonably related to the value of an exchange's 
market quality associated with higher volumes. The proposed fee levels 
and volume thresholds are reasonably designed to be comparable to those 
of other options exchanges employing similar fee programs, and also to 
attract additional liquidity and order flow to the Exchange.
    The Exchange's proposal to provide MIAX Market Makers the 
opportunity to reduce transaction fees by $0.02 per contract in 
standard options, provided certain criteria are met, is reasonable 
because the Exchange desires to offer all such market participants an 
opportunity to lower their transaction fees. The Exchange's proposal to 
offer MIAX Market Makers the opportunity to reduce transaction fees by 
$0.02 per contract in standard options, provided certain criteria are 
met, is equitable and not unfairly discriminatory because the Exchange 
offers all market participants, excluding Priority Customers, a means 
to reduce transaction fees by qualifying for volume tiers in the 
Priority Customer Rebate Program. The Exchange believes that offering 
all such market participants the opportunity to lower transaction fees 
by incentivizing them to transact Priority Customer order flow in turn 
benefits all market participants.
    Finally, the Exchange believes that the proposed to change to the 
name of the title of the column in the chart from ``Contracts Per 
Month'' to ``Percentage Thresholds of National Market Maker Volume'' is 
reasonable in that the new title more clearly describes the type of 
threshold methodology that is being used for the fee.

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 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. The Exchange believes that the 
proposed rule change reflects this competitive environment because it 
modifies the Exchange's fees in a manner that encourages market 
participants to provide liquidity and to send order flow to the 
Exchange.

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.
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    \10\ 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-2015-13 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-2015-13. 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 filing also will be available 
for inspection and copying at the principal offices of the Exchange. 
All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-MIAX-2015-13, 
and should be submitted on or before April 8, 2015.


[[Page 14198]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-06093 Filed 3-17-15; 08:45 am]
 BILLING CODE 8011-01-P
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