Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 16044-16046 [2015-06889]

Download as PDF 16044 Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Notices reports since the period ending September 30, 2008, or any reports since June 2011. The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of Winsonic. Therefore, it is ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading in the securities of Winsonic is suspended for the period from 9:30 a.m. EDT on March 24, 2015, through 11:59 p.m. EDT on April 7, 2015. By the Commission. Jill M. Peterson, Assistant Secretary. [FR Doc. 2015–07040 Filed 3–24–15; 4:15 pm] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION mstockstill on DSK4VPTVN1PROD with NOTICES Sunshine Act Meeting Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold an Open Meeting on March 30, 2015, at 10:30 a.m., in Room 10800 at the Commission’s headquarters building, to hear oral argument in cross-appeals by Francis V. Lorenzo and the Division of Enforcement from an initial decision of an administrative law judge. On December 31, 2013, the law judge found that Lorenzo violated the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b–5 when he sent two potential investors emails containing false and misleading information about his firm’s client. The law judge ordered Lorenzo to cease and desist from violations of the antifraud provisions, barred him from the securities industry, and ordered him to pay a civil money penalty of $15,000. The issues likely to be considered at oral argument include whether Lorenzo violated the antifraud provisions as alleged and, if so, the extent to which he should be sanctioned for those violations. The duty officer determined that no earlier notice thereof was possible. For further information, please contact the Office of the Secretary at (202) 551– 5400. Dated: March 24, 2015. Brent J. Fields. Secretary. BILLING CODE 8011–01–P 18:55 Mar 25, 2015 [Release No. 34–74555; File No. SR–MIAX– 2015–20] 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 20, 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 March 11, 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. 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 [FR Doc. 2015–07048 Filed 3–24–15; 4:15 pm] VerDate Sep<11>2014 SECURITIES AND EXCHANGE COMMISSION Jkt 235001 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 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 scale for transaction fees to: (i) Adopt transaction fees for non-Penny Pilot options classes; and (ii) provide for additional incentives for achieving certain Priority Customer Rebate Program volume tiers. 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 Currently, 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 Exchange proposes to amend its current MIAX Market Maker sliding scale for transactions to adopt transaction fees for non-Penny Pilot options classes. Specifically, the Exchange proposes to reduce 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% ............. Non-Penny Pilot classes transaction fee per contract $0.29 0.21 0.16 0.11 0.09 The proposed sliding scale would apply to all MIAX Market Makers for transactions in all non-Penny Pilot options classes except mini-options. A MIAX Market Maker’s initial $0.29 per contract rate will be reduced if the MIAX Market Maker reaches the volume thresholds set forth in the sliding scale 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. The Exchange notes that CBOE does not charge market makers a differentiated transaction fee for non-Penny Pilot option classes. E:\FR\FM\26MRN1.SGM 26MRN1 Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES 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 nonPenny Pilot options classes except minioptions. MIAX Market Makers will continue to be assessed a $0.02 per executed contract fee for transactions in mini-options. The Exchange notes that MIAX Market Makers will continue to be assessed transactions fees for Penny Pilot options classes pursuant to the current Market Maker sliding scale.5 The Exchange believes the proposed sliding scale for non-Penny Pilot options classes 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 in order to qualify for lower fee rates in the higher tiers. 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 proposes to offer MIAX Market Makers the opportunity to reduce transaction fees by $0.02 per contract in standard options in nonPenny Pilot options classes in the same manner as Penny Pilot options classes. 5 See MIAX Options Fee Schedule, Section 1(a)(i). Specifically, MIAX Market Makers will be assessed $0.25 per contract for tier 1, $0.17 per contract for tier 2, $0.12 per contract for tier 3, $0.07 per contract for tier 4, and $0.05 per contract for tier 5 for transactions in standard options in Penny Pilot options classes as currently provided in the Market Maker sliding scale. 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). The Exchange notes that CBOE does not charge market makers a differentiated transaction fee for non-Penny Pilot option classes. 7 See, e.g., International Securities Exchange, LLC, Schedule of Fees, Section IV, C; NASDAQ Options Market, Chapter XV, Section 2. VerDate Sep<11>2014 18:55 Mar 25, 2015 Jkt 235001 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 $0.27 per contract for tier 1, $0.19 per contract for tier 2, $0.14 per contract for tier 3, $0.09 per contract for tier 4, and $0.07 per contract for tier 5 for transactions in standard options in non-Penny Pilot options classes 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. 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 Exchange believes that its proposal to assess transaction fees in non-Penny Pilot options classes, which differs from Penny Pilot options classes, is consistent with other options markets that also assess different transaction fees for non-Penny Pilot options classes as compared to Penny Pilot options classes. The Exchange believes that establishing different pricing for nonPenny Pilot options and Penny Pilot options is reasonable, equitable, and not unfairly discriminatory because Penny Pilot options are more liquid options as compared to non-Penny Pilot options. Additionally, other competing options exchanges differentiate pricing in a similar manner today in other types of transaction fees.10 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 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 10 See NASDAQ OMX PHLX LLC Pricing Schedule, Section II (assessing differentiated transaction fees for Penny Pilot and non-Penny Pilot options classes); NYSE Amex Options Fee Schedule, p. 6 (assessing differentiated transaction fees for Penny Pilot and non-Penny Pilot options classes); Chicago Board Options Exchange, Incorporated, Fee Schedule, p. 1 (assessing differentiated transaction fees for Penny Pilot and non-Penny Pilot options classes). See also Securities Exchange Act Release No. 68556 (January 2, 2013), 78 FR 1293 (January 8, 2013) (SR–BX– 2012–074). Please note that neither of these exchanges currently has differentiated pricing for non-Penny Pilot options classes in a tiered volume scale for market makers. 9 15 PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 16045 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 in nonPenny Pilot option classes, 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 in nonPenny Pilot option classes, 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. 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 E:\FR\FM\26MRN1.SGM 26MRN1 16046 Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Notices 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.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. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. 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– 2015–20, and should be submitted on or before April 16, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Brent J. Fields, Secretary. [FR Doc. 2015–06889 Filed 3–25–15; 8:45 am] 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–2015–20 on the subject line. mstockstill on DSK4VPTVN1PROD 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. Comments may be submitted by any of the following methods: Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Order Approving a Proposed Rule Change To Amend Rules 6.41 and 24.8 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–2015–20. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the 11 15 U.S.C. 78s(b)(3)(A)(ii). VerDate Sep<11>2014 18:55 Mar 25, 2015 Jkt 235001 BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–74551; File No. SR–CBOE– 2015–010] March 20, 2015. On January 22, 2015, the Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 proposed rules to describe the process of establishing final leg execution prices when a broker receives from a customer a complex order for open-outcry handling at a total cash price for the order. The proposal was published for comment in the Federal Register on February 10, 2015.3 The Commission received no comments regarding the 12 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 74200 (February 4, 2015), 80 FR 7515 (‘‘Notice’’). PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 proposal. This order approves the proposed rule change. Currently Exchange Rules 6.41 (with respect to equities) and 24.8 (with respect to indexes), provide that bids and offers must be expressed in terms of dollars per unit of the underlying security or index, as applicable. However, the Exchange explains that sometimes a customer will request an execution in a complex order at a total cash price for the order (rather than at a price per contract for each leg) and the total number of contracts of each leg.4 In this situation, a broker may represent the order to the trading crowd at the total order price, and Trading Permit Holders may respond to trade with the order at that total order price.5 The Exchange notes that in some instances, due to the complexity of the order and the price and number of contracts involved, the complex order may not break down into a per-unit price for each leg based on the existing market for the leg that corresponds to the total order price.6 Accordingly, the Exchange proposes to adopt Interpretation and Policy .01 to each of Exchange Rules 6.41 and 24.8. The Interpretations will impose requirements requiring how brokers must determine final leg execution prices when a broker receives from a customer a complex order for openoutcry handling at a total cash price, and the complex order does not break down into a per-unit price for each leg based on the existing market for the leg that corresponds to the total price.7 Specifically, the Interpretations will provide that when the complex order does not break down into a per-unit price for each leg, the broker must resolve any difference in a manner that provides price improvement to the customer (i.e. the broker must determine leg prices that correspond to a total purchase (sale) price that is less (greater) than the total order price).8 After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.9 In particular, the Commission finds that the proposed rule change is consistent with Section 4 Id. at 7516. 5 Id. 6 Id. 7 Id. 8 See Notice, supra note 3, at 7516. In the notice, the Exchange provided examples of how this occurs. Id. at 7516–7. 9 In approving this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). E:\FR\FM\26MRN1.SGM 26MRN1

Agencies

[Federal Register Volume 80, Number 58 (Thursday, March 26, 2015)]
[Notices]
[Pages 16044-16046]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-06889]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74555; File No. SR-MIAX-2015-20]


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 20, 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 March 11, 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.
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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 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) Adopt transaction fees for 
non-Penny Pilot options classes; and (ii) provide for additional 
incentives for achieving certain Priority Customer Rebate Program 
volume tiers.
---------------------------------------------------------------------------

    \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\ Currently, 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. The Exchange notes that CBOE does not charge market makers a 
differentiated transaction fee for non-Penny Pilot option classes.

------------------------------------------------------------------------
                                                             Transaction
             Tier                  Percentage of national      fee per
                                    Market 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 Exchange proposes to amend its current MIAX Market Maker 
sliding scale for transactions to adopt transaction fees for non-Penny 
Pilot options classes. Specifically, the Exchange proposes to reduce 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:

------------------------------------------------------------------------
                                                              Non-Penny
                                                                Pilot
                                   Percentage of national      classes
             Tier                   Market Maker volume      transaction
                                                               fee per
                                                               contract
------------------------------------------------------------------------
1.............................  0.00%-0.05%................        $0.29
2.............................  Above 0.05%-0.50%..........         0.21
3.............................  Above 0.50%-0.80%..........         0.16
4.............................  Above 0.80%-1.50%..........         0.11
5.............................  Above 1.50%................         0.09
------------------------------------------------------------------------

    The proposed sliding scale would apply to all MIAX Market Makers 
for transactions in all non-Penny Pilot options classes except mini-
options. A MIAX Market Maker's initial $0.29 per contract rate will be 
reduced if the MIAX Market Maker reaches the volume thresholds set 
forth in the sliding scale

[[Page 16045]]

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 non-Penny Pilot options classes 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 notes that MIAX Market Makers will continue to be assessed 
transactions fees for Penny Pilot options classes pursuant to the 
current Market Maker sliding scale.\5\
---------------------------------------------------------------------------

    \5\ See MIAX Options Fee Schedule, Section 1(a)(i). 
Specifically, MIAX Market Makers will be assessed $0.25 per contract 
for tier 1, $0.17 per contract for tier 2, $0.12 per contract for 
tier 3, $0.07 per contract for tier 4, and $0.05 per contract for 
tier 5 for transactions in standard options in Penny Pilot options 
classes as currently provided in the Market Maker sliding scale.
---------------------------------------------------------------------------

    The Exchange believes the proposed sliding scale for non-Penny 
Pilot options classes 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 in order to 
qualify for lower fee rates in the higher tiers.
    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). The 
Exchange notes that CBOE does not charge market makers a 
differentiated transaction fee for non-Penny Pilot option classes.
    \7\ See, e.g., International Securities Exchange, LLC, Schedule 
of Fees, Section IV, C; NASDAQ Options Market, Chapter XV, Section 
2.
---------------------------------------------------------------------------

    The Exchange proposes to offer MIAX Market Makers the opportunity 
to reduce transaction fees by $0.02 per contract in standard options in 
non-Penny Pilot options classes in the same manner as Penny Pilot 
options classes. 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 
$0.27 per contract for tier 1, $0.19 per contract for tier 2, $0.14 per 
contract for tier 3, $0.09 per contract for tier 4, and $0.07 per 
contract for tier 5 for transactions in standard options in non-Penny 
Pilot options classes 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.
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 Exchange believes that its proposal to assess transaction fees 
in non-Penny Pilot options classes, which differs from Penny Pilot 
options classes, is consistent with other options markets that also 
assess different transaction fees for non-Penny Pilot options classes 
as compared to Penny Pilot options classes. The Exchange believes that 
establishing different pricing for non-Penny Pilot options and Penny 
Pilot options is reasonable, equitable, and not unfairly discriminatory 
because Penny Pilot options are more liquid options as compared to non-
Penny Pilot options. Additionally, other competing options exchanges 
differentiate pricing in a similar manner today in other types of 
transaction fees.\10\
---------------------------------------------------------------------------

    \10\ See NASDAQ OMX PHLX LLC Pricing Schedule, Section II 
(assessing differentiated transaction fees for Penny Pilot and non-
Penny Pilot options classes); NYSE Amex Options Fee Schedule, p. 6 
(assessing differentiated transaction fees for Penny Pilot and non-
Penny Pilot options classes); Chicago Board Options Exchange, 
Incorporated, Fee Schedule, p. 1 (assessing differentiated 
transaction fees for Penny Pilot and non-Penny Pilot options 
classes). See also Securities Exchange Act Release No. 68556 
(January 2, 2013), 78 FR 1293 (January 8, 2013) (SR-BX-2012-074). 
Please note that neither of these exchanges currently has 
differentiated pricing for non-Penny Pilot options classes in a 
tiered volume scale for market makers.
---------------------------------------------------------------------------

    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 in non-Penny Pilot option classes, 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 in non-Penny Pilot option classes, 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.

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

[[Page 16046]]

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.\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. 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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    \11\ 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-2015-20 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-MIAX-2015-20. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of 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-2015-20, 
and should be submitted on or before April 16, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-06889 Filed 3-25-15; 8:45 am]
 BILLING CODE 8011-01-P
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