Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 18892-18894 [2015-07960]
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18892
Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 14 and Rule
19b–4(f)(6) thereunder.15 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 16 and Rule 19b–4(f)(6)(iii)
thereunder.17 The Exchange represents
that this proposed rule change will be
implemented during the Second Quarter
of 2015 subject to the issuance of an
Equity Trader Alert that will provide at
least 30 days of notice prior to the
operative date for the respective
amendments to Rule 4751(h).
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BX–2015–016 on the subject line.
• 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–BX–2015–016. 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–BX–
2015–016, and should be submitted on
or before April 29, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Brent J. Fields,
Secretary.
[FR Doc. 2015–07966 Filed 4–7–15; 8:45 am]
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74632; File No. SR–MIAX–
2015–24]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule
April 2, 2015.
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 March 31, 2015, 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 the Substance
of the Proposed Rule Change
The Exchange is filing a proposal to
modify the Market Maker Trading
Permit Fee.
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
14 15
asabaliauskas on DSK5VPTVN1PROD with NOTICES
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
16 15 U.S.C. 78s(b)(3)(A).
17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and 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. The Exchange
has satisfied this requirement.
Paper Comments
1. Purpose
The Exchange proposes to modify its
Trading Permit fees to increase the
monthly Trading Permit fees that apply
1 15
18 17
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CFR 200.30–3(a)(12).
Frm 00087
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2 17
E:\FR\FM\08APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
08APN1
Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
to Market Makers (‘‘MMs’’). Specifically,
the Exchange proposes to: (i) Increase
the monthly Trading Permit fee that
applies to MMs for MM Assignments in
up to 250 options classes from $5,500 to
$15,000; (ii) increase the monthly
Trading Permit fee that applies to MMs
for MM Assignments in all classes from
$7,000 to $22,000; (iii) eliminate the
Trading Permit fee that applies to MMs
for MM Assignments in up to 100
options classes; and (iv) add some
clarifying language to the Fee Schedule
regarding the fee applicable to MM
Assignments above 250.
The Exchange issues Trading Permits
that confer the ability to transact on the
Exchange.3 Currently, all MMs, whether
they are a RMM, LMM or PLMM, are
assessed $4,000 per month for a Trading
Permit for an assignment in up to 100
option classes, $5,500 per month for a
Trading Permit for an assignment in up
to 250 option classes, or $7,000 per
month for a Trading Permit for an
assignment in all option classes listed
on the Exchange.4 The Exchange notes
that the current monthly Trading Permit
fees are in some instances substantially
lower than monthly trading permit fees
in place at other competing options
exchanges.5 The Exchange established
these lower rates in order to encourage
additional market participants to
become Members of the Exchange and
register as MIAX Market Makers. Now
that the Exchange has grown its market
share and membership base, the
Exchange proposes to modify its
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 onetime 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.
5 See e.g., NYSE Arca Options Fees and Charges,
p.1 (assessing market makers $6,000 for up to 100
option issues, an additional $5,000 for up to 250
option issues, an additional $4,000 for up to 750
option issues, and an additional $3,000 for all
option issues on the exchange); NYSE Amex
Options Fee Schedule, p. 19 (assessing market
makers $8,000 for up to 60 plus the bottom 45%,
an additional $6,000 for up to 150 plus the bottom
45%, an additional $5,000 for up to 500 plus the
bottom 45%, and additional $4,000 for up to 1,000
[sic] plus the bottom 45%, and an additional $3,000
for all issues traded on the exchange).
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17:55 Apr 07, 2015
Jkt 235001
Trading Permit fee for MMs so that it is
more aligned with the rates charged by
competing options exchanges.
The Exchange proposes to modify its
MM Trading Permit fee to increase the
monthly Trading Permit fee that applies
to MMs. Specifically, the Exchange
proposes to: (i) Increase the monthly
Trading Permit fee that applies to MMs
for MM Assignments in up to 250
options classes from $5,500 to $15,000;
(ii) increase the monthly Trading Permit
fee that applies to MMs for MM
Assignments in all classes from $7,000
to $22,000; and (iii) eliminate the
Trading Permit fee that applies to MMs
for MM Assignments in up to 100
options classes.
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
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.
Finally, the Exchange proposes to add
some clarifying language to the Fee
Schedule in order to specify that the
$22,000 Trading Permit Fee applies to
MMs Assignments over 250 up to all
options classes listed on MIAX. The
Exchange believes that the proposed
change will help avoid the potential for
confusion on behalf of MMs as to which
fee level applies to MMs Assignments
over 250 options classes.
The Exchange proposes to implement
the Trading Permit fees beginning April
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 6
in general, and furthers the objectives of
Section 6(b)(4) of the Act 7 in particular,
in that it is an equitable allocation of
reasonable fees and other charges among
Exchange members.
The Exchange believes that the
proposed Trading Permit fee is
reasonable, equitable and not unfairly
discriminatory. The proposed Trading
Permit fees are reasonable in that they
are within the range of comparable fees
at other competing options exchanges.8
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 See supra note 5. NYSE Arca Options charges
$11,000 for up to 250 option issues and $18,000 for
all options issues on the exchange. NYSE Amex
Options charges $26,000 for all option issues on the
exchange.
7 15
PO 00000
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18893
As such, the proposal is reasonably
designed to continue to compete with
other options exchange by incentivizing
market participants to register as Market
Makers 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 it applies
equally to all Market Makers regardless
of type. All similarly situated Market
Makers, with the same number of
assignments, 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 increasing
Trading Permit fees for Market Makers
on the Exchange in a manner that allows
all Market Makers to be subject to the
same fee based on the number of
assignments regardless of type and yet
still be in the range of 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 Market
Makers 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
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18894
Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices
19(b)(3)(A)(ii) of the Act.9 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.
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–
2015–24, and should be submitted on or
before April 29, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Brent J. Fields,
Secretary.
[FR Doc. 2015–07960 Filed 4–7–15; 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–2015–24 on the subject line.
asabaliauskas on DSK5VPTVN1PROD 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; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–MIAX–2015–24. 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
office of the Exchange. All comments
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74633; File No. SR–MIAX–
2015–25]
April 2, 2015.
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 March 31, 2015, 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 the 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 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
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
9 15
U.S.C. 78s(b)(3)(A)(ii).
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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 the
MIAX Options Fee Schedule (the ‘‘Fee
Schedule’’) to increase the fees for MEI
Ports to Market Makers. Specifically, the
Exchange proposes to: (i) Increase the
MEI Port Fee for the first matching
engine used, from $1,000 to $2,500 per
month; (ii) increase the MEI Port Fee for
each of matching engines 2 through 5,
from $500 to $1,200 per month; (iii)
increase the MEI Port Fee for each of
matching engines 6 and above, from
$250 to $700 per month; and (iv)
increase the fee for additional Limited
Service MEI Ports from $10 to $50 per
month.
Currently, MIAX assesses monthly
MEI Port Fees on Market Makers based
upon the number of MIAX matching
engines 3 used by the Market Maker.
MEI Port users are allocated two Full
Service MEI Ports 4 and two Limited
Service MEI Ports 5 per matching engine
to which they connect. The Exchange
currently assesses a fee of $1,000 per
month on Market Makers for the first
matching engine they use; $500 per
month for each of matching engines 2
through 5; and $250 per month for each
of matching engines 6 and above. For
3 A ‘‘matching engine’’ is a part of the MIAX
electronic system that processes options quotes and
trades on a symbol-by-symbol basis. Some matching
engines will process option classes with multiple
root symbols, and other matching engines will be
dedicated to one single option root symbol (for
example, options on SPY will be processed by one
single matching engine that is dedicated only to
SPY). A particular root symbol may only be
assigned to a single designated matching engine. A
particular root symbol may not be assigned to
multiple matching engines.
4 Full Service MEI Ports provide Market Makers
with the ability to send Market Maker quotes,
eQuotes, and quote purge messages to the MIAX
System. Full Service MEI Ports are also capable of
receiving administrative information. Market
Makers are limited to two Full Service MEI Ports
per matching engine.
5 Limited Service MEI Ports provide Market
Makers with the ability to send eQuotes and quote
purge messages only, but not Market Maker Quotes,
to the MIAX System. Limited Service MEI Ports are
also capable of receiving administrative
information. Market Makers initially receive two
Limited Service MEI Ports per matching engine.
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Agencies
[Federal Register Volume 80, Number 67 (Wednesday, April 8, 2015)]
[Notices]
[Pages 18892-18894]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07960]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74632; File No. SR-MIAX-2015-24]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
April 2, 2015.
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 March 31, 2015, 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 the
Substance of the Proposed Rule Change
The Exchange is filing a proposal to modify the Market Maker
Trading Permit Fee.
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 modify its Trading Permit fees to increase
the monthly Trading Permit fees that apply
[[Page 18893]]
to Market Makers (``MMs''). Specifically, the Exchange proposes to: (i)
Increase the monthly Trading Permit fee that applies to MMs for MM
Assignments in up to 250 options classes from $5,500 to $15,000; (ii)
increase the monthly Trading Permit fee that applies to MMs for MM
Assignments in all classes from $7,000 to $22,000; (iii) eliminate the
Trading Permit fee that applies to MMs for MM Assignments in up to 100
options classes; and (iv) add some clarifying language to the Fee
Schedule regarding the fee applicable to MM Assignments above 250.
The Exchange issues Trading Permits that confer the ability to
transact on the Exchange.\3\ Currently, all MMs, whether they are a
RMM, LMM or PLMM, are assessed $4,000 per month for a Trading Permit
for an assignment in up to 100 option classes, $5,500 per month for a
Trading Permit for an assignment in up to 250 option classes, or $7,000
per month for a Trading Permit for an assignment in all option classes
listed on the Exchange.\4\ The Exchange notes that the current monthly
Trading Permit fees are in some instances substantially lower than
monthly trading permit fees in place at other competing options
exchanges.\5\ The Exchange established these lower rates in order to
encourage additional market participants to become Members of the
Exchange and register as MIAX Market Makers. Now that the Exchange has
grown its market share and membership base, the Exchange proposes to
modify its Trading Permit fee for MMs so that it is more aligned with
the rates charged by competing options exchanges.
---------------------------------------------------------------------------
\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.
\5\ See e.g., NYSE Arca Options Fees and Charges, p.1 (assessing
market makers $6,000 for up to 100 option issues, an additional
$5,000 for up to 250 option issues, an additional $4,000 for up to
750 option issues, and an additional $3,000 for all option issues on
the exchange); NYSE Amex Options Fee Schedule, p. 19 (assessing
market makers $8,000 for up to 60 plus the bottom 45%, an additional
$6,000 for up to 150 plus the bottom 45%, an additional $5,000 for
up to 500 plus the bottom 45%, and additional $4,000 for up to 1,000
[sic] plus the bottom 45%, and an additional $3,000 for all issues
traded on the exchange).
---------------------------------------------------------------------------
The Exchange proposes to modify its MM Trading Permit fee to
increase the monthly Trading Permit fee that applies to MMs.
Specifically, the Exchange proposes to: (i) Increase the monthly
Trading Permit fee that applies to MMs for MM Assignments in up to 250
options classes from $5,500 to $15,000; (ii) increase the monthly
Trading Permit fee that applies to MMs for MM Assignments in all
classes from $7,000 to $22,000; and (iii) eliminate the Trading Permit
fee that applies to MMs for MM Assignments in up to 100 options
classes.
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 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.
Finally, the Exchange proposes to add some clarifying language to
the Fee Schedule in order to specify that the $22,000 Trading Permit
Fee applies to MMs Assignments over 250 up to all options classes
listed on MIAX. The Exchange believes that the proposed change will
help avoid the potential for confusion on behalf of MMs as to which fee
level applies to MMs Assignments over 250 options classes.
The Exchange proposes to implement the Trading Permit fees
beginning April 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 \6\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \7\ in particular, in that
it is an equitable allocation of reasonable fees and other charges
among Exchange members.
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\6\ 15 U.S.C. 78f(b).
\7\ 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 proposed
Trading Permit fees are reasonable in that they are within the range of
comparable fees at other competing options exchanges.\8\ As such, the
proposal is reasonably designed to continue to compete with other
options exchange by incentivizing market participants to register as
Market Makers 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 it applies equally to all
Market Makers regardless of type. All similarly situated Market Makers,
with the same number of assignments, will be subject to the same
Trading Permit fee, and access to the Exchange is offered on terms that
are not unfairly discriminatory.
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\8\ See supra note 5. NYSE Arca Options charges $11,000 for up
to 250 option issues and $18,000 for all options issues on the
exchange. NYSE Amex Options charges $26,000 for all option issues on
the exchange.
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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
increasing Trading Permit fees for Market Makers on the Exchange in a
manner that allows all Market Makers to be subject to the same fee
based on the number of assignments regardless of type and yet still be
in the range of 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 Market Makers 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
[[Page 18894]]
19(b)(3)(A)(ii) of the Act.\9\ 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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\9\ 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-2015-24 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 20549-1090.
All submissions should refer to File Number SR-MIAX-2015-24. 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 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-2015-24, and should be
submitted on or before April 29, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-07960 Filed 4-7-15; 8:45 am]
BILLING CODE 8011-01-P