Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 18894-18896 [2015-07961]
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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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17:55 Apr 07, 2015
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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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08APN1
Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
example, a Market Maker that wishes to
make markets in just one symbol would
require the two MEI Ports in a single
matching engine; a Market Maker
wishing to make markets in all symbols
traded on MIAX would require the two
MEI Ports in each of the Exchange’s
matching engines. The Exchange also
currently charges $10 per month for
each additional Limited Service MEI
Port per matching engine for Market
Makers in addition to the two Limited
Service MEI Ports per matching engine
that are allocated with the Full Service
MEI Ports. The Full Service MEI Ports,
Limited Service MEI Ports and the
additional Limited Service MEI Ports all
include access to MIAX’s primary and
secondary data centers and its disaster
recovery center.
The Exchange notes that another
competing exchange charges
substantially more for the use of similar
ports.6 The Exchange established the
current lower rates in order to
encourage additional market
participants to become Members of the
Exchange and register as Market Makers
and use the service. Now that the
Exchange has grown its market share
and membership base, the Exchange
proposes to modify its fees charged to
Market Makers for use of MEI Ports in
an effort to increase the Exchange’s
revenues from non-transaction fee
sources and also more closely align the
fees with the rates charged by another
competing options exchange.
Accordingly, the Exchange proposes to
increase the fees charged to Market
Makers for use of MEI Ports.
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.
The Exchange proposes to implement
the fee changes 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 7
in general, and furthers the objectives of
6 See NASDAQ OMX PHLX LLC (‘‘PHLX’’)
Pricing Schedule, Section VII. PHLX assesses
specialists and market makers Active SQF Port Fee
of $2,500 per month for the first port, $4,000 per
month for ports 2–6, and $15,000 per month for
ports 7 and over. Active SQF Port Fees are capped
at $42,000 per month.
7 15 U.S.C. 78f(b).
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17:55 Apr 07, 2015
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Section 6(b)(4) of the Act 8 in particular,
in that it is an equitable allocation of
reasonable fees and other charges.
The Exchange believes that the
proposal is reasonable and not unfairly
discriminatory because Market Makers
are free to add and remove MEI Ports
and will only be charged for the amount
of MEI Ports that they desire to use. 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 MEI Ports, will be subject to
the same fee, and access to the Exchange
is offered on terms that are not unfairly
discriminatory. The Exchange believes
that the proposed fees are reasonable in
that the rates are within the range of that
charged by another competing options
exchange.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act, as amended.
The Exchange believes that the proposal
increases both intermarket and
intramarket competition by increasing
MEI Port fees for Market Makers on the
Exchange in the range of comparable
fees on another exchange. 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
in order to attract market participants to
use its services. 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.
8 15
PO 00000
U.S.C. 78f(b)(4).
Frm 00090
Fmt 4703
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.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.
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–2015–25 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–2015–25. 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.,
9 15
Sfmt 4703
18895
E:\FR\FM\08APN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
08APN1
18896
Federal Register / Vol. 80, No. 67 / Wednesday, April 8, 2015 / Notices
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–
2015–25, 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. 2015–07961 Filed 4–7–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74641; File No. SR–
NYSEMKT–2015–20]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Its Price List
To Specify That a Member
Organization May Request That the
Exchange Aggregate Its Eligible
Activity With Activity of the Member
Organization’s Affiliates for Purposes
of Charges or Credits Based on
Volume
April 2, 2015.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on March 25,
2015, NYSE MKT LLC (‘‘NYSE MKT’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. 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 proposes to amend its
Price List to specify that a member
organization may request that the
Exchange aggregate its eligible activity
10 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
17:55 Apr 07, 2015
Jkt 235001
with activity of the member
organization’s affiliates for purposes of
charges or credits based on volume. The
text of the proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, 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
self-regulatory organization 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 those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Price List to specify that member
organizations may request that the
Exchange aggregate their eligible
activity with activity of member
organization’s affiliates for purposes of
charges or credits based on volume. The
proposed rule change is based on
NASDAQ Stock Market LLC
(‘‘NASDAQ’’) Rule 7027, NASDAQ
Options Market LLC (‘‘NOM’’) Rules at
Chapter XV, and the NASDAQ OMX
PHLX LLC (‘‘PHLX’’) Pricing Schedule.4
As proposed, for purposes of applying
any provision of the Exchange’s Price
List where the charge assessed, or credit
provided, by the Exchange depends on
the volume of a member organization’s
activity, a member organization may
request that the Exchange aggregate its
eligible activity with activity of such
member organization’s affiliates. The
Exchange further proposes that a
member organization requesting
4 Effective December 1, 2014, NASDAQ amended
Rule 7027 to harmonize the treatment of aggregation
of affiliate activity of affiliated members to be
consistent with the rules governing NOM and
PHLX. See Securities Exchange Act Release No.
72966 (Sept. 3, 2014), 79 FR 53473 (Sept. 9, 2014)
(SR–NASDAQ–2014–083). NOM and PHLX also
amended their respective rules to harmonize the
process by which it collects information from its
members for purposes of aggregating member
activity between its equity and options markets. See
Securities Exchange Act Release Nos. 72967 (Sept.
2, 2014), 79 FR 53471 (Sept. 9, 2014) (SR–
NASDAQ–2014–082) and 72969 (Sept. 3, 2014), 79
FR 53485 (Sept. 9, 2014) (SR–PHLX–2014–56).
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
aggregation of eligible affiliate activity
would be required to (1) certify to the
Exchange the affiliate status of member
organizations whose activity it seeks to
aggregate prior to receiving approval for
aggregation, and (2) inform the
Exchange immediately of any event that
causes an entity to cease being an
affiliate. The Exchange would review
available information regarding the
entities and reserves the right to request
additional information to verify the
affiliate status of an entity. As further
proposed, the Exchange would approve
a request, unless it determines that the
certificate is not accurate.5
The Exchange also proposes that if
two or more member organizations
become affiliated on or prior to the
sixteenth day of a month, and submit
the required request for aggregation on
or prior to the twenty-second day of the
month, an approval of the request
would be deemed to be effective as of
the first day of that month. If two or
more member organizations become
affiliated after the sixteenth day of a
month, or submit a request for
aggregation after the twenty second day
of the month, an approval of the request
would be deemed to be effective as of
the first day of the next calendar
month.6 The Exchange believes that this
requirement, which is also similar to
requirements of other exchanges,7
would be a fair and objective way to
apply the aggregation rule to fees and
streamline the billing process.
The Exchange further proposes to
provide that for purposes of applying
any provision of the Price List where the
charge assessed, or credit provided, by
the Exchange depends upon the volume
of a member organization’s activity,
references to an entity would be deemed
to include the entity and its affiliates
that have been approved for
aggregation.8 The Exchange notes that
its designated market makers (‘‘DMM’’)
are subject to specified pricing on the
Price List. For purposes of the Price List,
a DMM may not aggregate its volume
either with other units within the same
member organization or affiliates of the
member organization operating the
DMM unit. In addition, the Exchange
proposes to provide that member
organizations may not aggregate volume
where the Price List specifies that
aggregation is not permitted.9
5 See
NASDAQ Rule 7027(a)(1).
NASDAQ Rule 7027(a)(2).
7 See supra note 4.
8 See supra note 5.
9 For example, the Price List specifies whether
quoting and trading activity relating to
Supplemental Liquidity Provider activity may be
aggregated.
6 See
E:\FR\FM\08APN1.SGM
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Agencies
[Federal Register Volume 80, Number 67 (Wednesday, April 8, 2015)]
[Notices]
[Pages 18894-18896]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07961]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74633; File No. SR-MIAX-2015-25]
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 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
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
[[Page 18895]]
example, a Market Maker that wishes to make markets in just one symbol
would require the two MEI Ports in a single matching engine; a Market
Maker wishing to make markets in all symbols traded on MIAX would
require the two MEI Ports in each of the Exchange's matching engines.
The Exchange also currently charges $10 per month for each additional
Limited Service MEI Port per matching engine for Market Makers in
addition to the two Limited Service MEI Ports per matching engine that
are allocated with the Full Service MEI Ports. The Full Service MEI
Ports, Limited Service MEI Ports and the additional Limited Service MEI
Ports all include access to MIAX's primary and secondary data centers
and its disaster recovery center.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
The Exchange notes that another competing exchange charges
substantially more for the use of similar ports.\6\ The Exchange
established the current lower rates in order to encourage additional
market participants to become Members of the Exchange and register as
Market Makers and use the service. Now that the Exchange has grown its
market share and membership base, the Exchange proposes to modify its
fees charged to Market Makers for use of MEI Ports in an effort to
increase the Exchange's revenues from non-transaction fee sources and
also more closely align the fees with the rates charged by another
competing options exchange. Accordingly, the Exchange proposes to
increase the fees charged to Market Makers for use of MEI Ports.
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.
---------------------------------------------------------------------------
\6\ See NASDAQ OMX PHLX LLC (``PHLX'') Pricing Schedule, Section
VII. PHLX assesses specialists and market makers Active SQF Port Fee
of $2,500 per month for the first port, $4,000 per month for ports
2-6, and $15,000 per month for ports 7 and over. Active SQF Port
Fees are capped at $42,000 per month.
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The Exchange proposes to implement the fee changes 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 \7\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \8\ in particular, in that
it is an equitable allocation of reasonable fees and other charges.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposal is reasonable and not
unfairly discriminatory because Market Makers are free to add and
remove MEI Ports and will only be charged for the amount of MEI Ports
that they desire to use. 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 MEI Ports, will be subject to the same fee, and
access to the Exchange is offered on terms that are not unfairly
discriminatory. The Exchange believes that the proposed fees are
reasonable in that the rates are within the range of that charged by
another competing options exchange.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended. The
Exchange believes that the proposal increases both intermarket and
intramarket competition by increasing MEI Port fees for Market Makers
on the Exchange in the range of comparable fees on another exchange.
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 in order to attract market
participants to use its services. 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
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-2015-25 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-2015-25. 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.,
[[Page 18896]]
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-2015-25, 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. 2015-07961 Filed 4-7-15; 8:45 am]
BILLING CODE 8011-01-P