Self-Regulatory Organizations: Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 76716-76719 [2015-31065]
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Federal Register / Vol. 80, No. 237 / Thursday, December 10, 2015 / Notices
POSTAL SERVICE
Temporary Emergency Committee of
the Board of Governors; Sunshine Act
Meeting
December 4, 2015, at
3:00 p.m.
PLACE: Washington, DC, via
Teleconference.
STATUS: Committee Votes to Close
December 4, 2015, Meeting: By vote on
November 12, 2015, members of the
Temporary Emergency Committee of the
Board of Governors of the United States
Postal Service voted unanimously to
close to public observation a tentative
meeting to be held on December 4, 2015,
via teleconference. It was determined
that the December 4, 2015,
teleconference would be held should no
new Governors be confirmed by the
Senate in advance of the date. On
December 1, 2015, the Committee
determined that the teleconference was
needed. The Committee determined that
no earlier public notice was possible
due to the uncertainty around the need
for a meeting.
MATTERS TO BE CONSIDERED:
DATES AND TIMES:
Friday, December 4, 2015, at 3:00 p.m.
1. Strategic Issues.
GENERAL COUNSEL CERTIFICATION: The
General Counsel of the United States
Postal Service has certified that the
meeting may be closed under the
Government in the Sunshine Act.
CONTACT PERSON FOR MORE INFORMATION:
Requests for information about the
meeting should be addressed to the
Secretary of the Board, Julie S. Moore,
at 202–268–4800.
on November 30, 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 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.
[FR Doc. 2015–31322 Filed 12–8–15; 4:15 pm]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 7710–12–P
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
The Exchange proposes to amend its
Fee Schedule to modify the monthly
volume thresholds in Tiers 2 and 3 in
the Priority Customer Rebate Program
(the ‘‘Program’’).3
Julie S. Moore,
Secretary, Board of Governors.
[Release No. 34–76557; File No. SR–MIAX–
2015–65]
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Self-Regulatory Organizations: Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule
December 4, 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
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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19:33 Dec 09, 2015
Jkt 238001
3 See Securities Exchange Act Release Nos. 76098
(October 7, 2015), 80 FR 61866 (October 14, 2015)
(SR–MIAX–2015–58); 75856 (September 8, 2015),
80 FR 55158 (September 14, 2015) (SR–MIAX–
2015–53); 75631 (August 6, 2015), 80 FR 48382
(August 12, 2015) (SR–MIAX–2015–51); 74758
(April 17, 2015), 80 FR 22756 (April 23, 2015) (SR–
MIAX–2015–27); 74007 (January 9, 2015), 80 FR
1537 (January 12, 2015) (SR–MIAX–2014–69);
72799 (August 8, 2014), 79 FR 47698 (August 14,
2014) (SR–MIAX–2014–40); 72355 (June 10, 2014),
79 FR 34368 (June 16, 2014) (SR–MIAX–2014–25);
71698 (March 12, 2014), 79 FR 15185 (March 18,
2014) (SR–MIAX–2014–12); 71283 (January 10,
2014), 79 FR 2914 (January 16, 2014) (SR–MIAX–
2013–63); 71009 (December 6, 2013), 78 FR 75629
(December 12, 2013) (SR–MIAX–2013–56).
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Priority Customer Rebate Program
Currently, the Exchange credits each
Member the per contract amount
resulting from each Priority Customer 4
order transmitted by that Member that is
executed electronically on the Exchange
in all multiply-listed option classes
(excluding Qualified Contingent Cross
Orders,5 mini-options,6 Priority
Customer-to-Priority Customer Orders,
PRIME Auction Or Cancel Responses,
PRIME Contra-side Orders, PRIME
Orders for which both the Agency and
Contra-side Order are Priority
Customers,7 and executions related to
contracts that are routed to one or more
exchanges in connection with the
Options Order Protection and Locked/
Crossed Market Plan referenced in
MIAX Rule 1400), provided the Member
meets certain tiered percentage
thresholds in a month as described in
the Priority Customer Rebate Program
table.8 For each Priority Customer order
transmitted by that Member which is
executed electronically on the Exchange
in MIAX Select Symbols, MIAX will
continue to credit each member at the
separate per contract rate for MIAX
Select Symbols.9 For each Priority
Customer order submitted into the
PRIME Auction as a PRIME Agency
4 The term ‘‘Priority Customer’’ means a person
or entity that (i) is not a broker or dealer in
securities, and (ii) does not place more than 390
order in listed options per day on average during
a calendar month for its own beneficial account(s).
See Exchange Rule 100.
5 A Qualified Contingent Cross Order is
comprised of an originating order to buy or sell at
least 1,000 contracts, or 10,000 mini-option
contracts, that is identified as being part of a
qualified contingent trade, as that term is defined
in Interpretations and Policies .01 below, coupled
with a contra-side order or orders totaling an equal
number of contracts. A Qualified Contingent Cross
Order is not valid during the opening rotation
process described in Rule 503. See Exchange Rule
516(j).
6 A mini-option is a series of option contracts
with a 10 share deliverable on a stock, Exchange
Traded Fund share, Trust Issued Receipt, or other
Equity Index-Linked Security. See Exchange Rule
404, Interpretations and Policies .08.
7 The MIAX Price Improvement Mechanism
(‘‘PRIME’’) is a process by which a Member may
electronically submit for execution (‘‘Auction’’) an
order it represents as agent (‘‘Agency Order’’)
against principal interest, and/or an Agency Order
against solicited interest. For a complete
description of PRIME and of PRIME order types and
responses, see Exchange Rule 515A.
8 See MIAX Fee Schedule Section (1)(a)(iii).
9 See Securities Exchange Release Nos. 75631
(August 6, 2015), 80 FR 48382 (August 12, 2015)
(SR–MIAX–2015–51), 74291 (February 18, 2015), 80
FR 9841 (February 24, 2015) (SR–MIAX–2015–09);
74288 (February 18, 2015), 80 FR 9837 (February
24, 2015) (SR–MIAX–2015–08); 71700 (March 12,
2014), 79 FR 15188 (March 18, 2014) (SR–MIAX–
2014–13); 72356 (June 10, 2014), 79 FR 34384 (June
16, 2014) (SR–MIAX–2014–26); 72567 (July 8,
2014), 79 FR 40818 (July 14, 2014) (SR–MIAX–
2014–34); 73328 (October 9, 2014), 79 FR 62230
(October 16, 2014) (SR–MIAX–2014–50).
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Federal Register / Vol. 80, No. 237 / Thursday, December 10, 2015 / Notices
Order, MIAX will continue to credit
each member at the separate per
contract rate for PRIME Agency
Orders.10 The volume thresholds are
calculated based on the customer
volume over the course of the month.
Volume will be recorded for and credits
will be delivered to the Member Firm
that submits the order to the Exchange.
The amount of the rebate is calculated
beginning with the first executed
contract at the applicable threshold per
contract credit with rebate payments
made at the highest achieved volume
tier for each contract traded in that
month. For example, under the current
Program, a Member that executes a
number of Priority Customer contracts
above 1.75% of the national customer
volume in multiply-listed options
during a particular calendar month,
such Member will currently receive a
Percentage thresholds of national customer volume in multiply-listed
options classes listed on MIAX
(monthly)
credit of $0.21 for each Priority
Customer contract (other than Select
Symbols) executed during that month,
even though there are lower incremental
percentages for lower volume tiers
leading up to the 1.75% volume
threshold.
The current Priority Customer Rebate
Program table designates the following
monthly volume tiers and
corresponding per contract credits:
Per contract
credit
0.00–0.50% ..................................................................................................................................
Above 0.50–1.00 ..........................................................................................................................
Above 1.00–1.75 ..........................................................................................................................
Above 1.75 ...................................................................................................................................
Proposal
The Exchange proposes to amend
Section (1)(a)(iii) of its Fee Schedule to
$0.00
0.10
0.15
0.21
Per contract
credit
0.00–0.50% ..................................................................................................................................
Above 0.50–1.20 ..........................................................................................................................
Above 1.20–1.75 ..........................................................................................................................
Above 1.75 ...................................................................................................................................
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MIAX Select Symbols
The proposed new monthly volume
thresholds will apply to multiply listed
options classes, including MIAX Select
Symbols.11 The Tier 2 per contract
credit volume threshold will now
extend from above 0.50% to 1.20%. The
effect of this is that Members must still
execute [sic] 0.50% of the national
customer volume in a particular class in
order to qualify for the Tier 2 per
contract credit, and must now exceed
1.20% of the national customer volume
in the affected class in order to receive
the Tier 3 per contract credit. The Tier
3 volume threshold will now extend
from above 1.20% to 1.75%. The Tier 4
volume threshold of above 1.75% will
be unchanged.
19:33 Dec 09, 2015
Jkt 238001
$0.00
0.10
0.20
0.24
$0.10
0.10
0.10
0.10
Per contract
credit in MIAX
select symbols
Per contract
credit for
prime agency
order
$0.00
0.10
0.15
0.21
$0.00
0.10
0.20
0.24
$0.10
0.10
0.10
0.10
All other aspects of the Program will
remain unchanged. The Exchange is not
proposing any change to the per
contract credit for PRIME Agency
Orders. Consistent with the current Fee
Schedule, the Exchange will continue to
aggregate the contracts resulting from
Priority Customer orders transmitted
and executed electronically on the
Exchange from affiliated Members for
purposes of the thresholds above,
provided there is at least 75% common
ownership between the firms as
reflected on each firm’s Form BD,
Schedule A. In the event of a MIAX
System outage or other interruption of
electronic trading on MIAX, the
Exchange will adjust the national
customer volume in multiply-listed
options for the duration of the outage.
A Member may request to receive its
credit under the Priority Customer
Rebate Program as a separate direct
payment.
The purpose of the proposed rule
change is to encourage Members to
direct greater Priority Customer trade
volume to the Exchange. The Exchange
believes that increased Priority
Customer volume will attract more
liquidity to the Exchange, which
benefits all market participants.
Increased retail customer order flow
should attract professional liquidity
providers (Market Makers), which in
turn should make the MIAX
marketplace an attractive venue where
Market Makers will submit narrow
quotations with greater size, deepening
and enhancing the quality of the MIAX
marketplace. This should provide more
trading opportunities and tighter
spreads for other market participants
and result in a corresponding increase
in order flow from such other market
participants.
The specific volume thresholds of the
Program’s tiers are set based upon
business determinations and an analysis
11 The term ‘‘MIAX Select Symbols’’ means
options overlying AA, AAL, AAPL, AIG, AMAT,
AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT,
CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX,
GE, GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ,
INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK,
The Exchange believes that the
proposed new monthly volume tiers
should provide incentives for Members
to direct greater Priority Customer trade
volume to the Exchange.
VerDate Sep<11>2014
Per contract
credit for
prime agency
order
reflect a new schedule of percentage
thresholds of national customer volume.
Specifically, the new thresholds will be
as set forth in the following table:
Percentage thresholds of national customer volume in multiply-listed
options classes listed on MIAX
(monthly)
10 See Securities Exchange Release Nos. 75408
(July 9, 2015) 80 Fr 41530 (July 15, 2015) (SR–
MIAX–2015–45); 72943 (August 28, 2014), 79 FR
52785 (September 4, 2014) (SR–MIAX–2014–45).
Per contract
credit in MIAX
select symbols
NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM,
QQQ, RIG, S, SPY, SUNE, T, TSLA, USO, VALE,
VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF,
XLP, XOM, XOP and YHOO. See Fee Schedule,
note 13.
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Federal Register / Vol. 80, No. 237 / Thursday, December 10, 2015 / Notices
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of current volume levels. The volume
thresholds are intended to incentivize
firms to increase the number of Priority
Customer orders they send to the
Exchange so that they can achieve the
next threshold, and to encourage new
participants to send Priority Customer
orders as well. Increasing the number of
orders sent to the Exchange will in turn
provide tighter and more liquid markets,
and therefore attract more business
overall. Similarly, the different credit
rates at the different tier levels are based
on an analysis of current revenue and
volume levels and are intended to
provide increasing ‘‘rewards’’ to MIAX
participants for increasing the volume of
Priority Customer orders sent to, and
Priority Customer contracts executed
on, the Exchange. The specific amounts
of the tiers and rates are set in order to
encourage suppliers of Priority
Customer order flow to reach for higher
tiers.
The credits paid out as part of the
program will be drawn from the general
revenues of the Exchange.12 The
Exchange calculates volume thresholds
on a monthly basis. The proposed
changes to the Fee Schedule will be
operative as of December 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 13
in general, and furthers the objectives of
Section 6(b)(4) of the Act 14 in
particular, in that it is an equitable
allocation of reasonable fees and other
charges among Exchange members.
The Exchange believes that the
proposal is fair, equitable and not
unreasonably discriminatory. The
Program and the proposed new tier
structure should improve market quality
for all market participants. The
proposed changes to the Program are
fair and equitable and not unreasonably
discriminatory because they apply
equally to all Priority Customer orders.
All similarly situated Priority Customer
orders are subject to the same rebate
schedule, and access to the Exchange is
offered on terms that are not unfairly
discriminatory. Market participants
want to trade with Priority Customer
order flow. To the extent Priority
Customer order flow is increased by the
proposal, market participants will
increasingly compete for the
12 Despite providing credits under the Program,
the Exchange represents that it will continue to
have adequate resources to fund its regulatory
program and fulfill its responsibilities as a selfregulatory organization while the Program is in
effect.
13 15 U.S.C. 78f(b).
14 15 U.S.C. 78f(b)(4).
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19:33 Dec 09, 2015
Jkt 238001
opportunity to trade on the Exchange
including sending more orders and
providing narrower and larger sized
quotations in the effort to trade with
such Priority Customer order flow. The
resulting increased volume and
liquidity will benefit all Exchange
participants by providing more trading
opportunities and tighter spreads.
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. The
Exchange believes that the proposed
change would increase both intermarket
and intramarket competition by
encouraging Members to direct their
Priority Customer orders to the
Exchange, which should enhance the
quality of quoting and increase the
volume of contracts traded on MIAX.
Respecting the competitive position of
non-Priority Customers, the Exchange
believes that this rebate program should
provide additional liquidity that
enhances the quality of its markets and
increases the number of trading
opportunities on MIAX for all
participants, including non-Priority
Customers, who will be able to compete
for such opportunities. This should
benefit all market participants and
improve competition on the 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 and rebates to remain competitive
with other exchanges and to attract
order flow to the Exchange. The
Exchange believes that the proposed
rule change reflects this competitive
environment because it encourages
market participants to direct their
customer order flow, to provide
liquidity, and to attract additional
transaction volume to the Exchange.
Given the robust competition for
volume among options markets, many of
which offer the same products,
enhancing the existing volume based
customer rebate program to attract order
flow is consistent with the goals of the
Act. The Exchange believes that the
proposal will enhance competition,
because market participants will have
another additional pricing consideration
in determining where to execute orders
and post liquidity if they factor the
benefits of the proposed rebate program
into the determination.
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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,15 and Rule
19b–4(f)(2) 16 thereunder. 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 SRMIAX–2015–65 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–2015–65. 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
15 15
16 17
E:\FR\FM\10DEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10DEN1
Federal Register / Vol. 80, No. 237 / Thursday, December 10, 2015 / Notices
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–MIAX–
2015–65 and should be submitted on or
before December 31, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–31065 Filed 12–9–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IC–31927; File No. 812–14374]
Alcentra Capital Corporation, et al.;
Notice of Application
December 4, 2015.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of application for an
order under sections 17(d) and 57(i) of
the Investment Company Act of 1940
(the ‘‘Act’’) and rule 17d–1 under the
Act to permit certain joint transactions
otherwise prohibited by sections 17(d)
and 57(a)(4) of the Act and rule 17d–1
under the Act.
AGENCY:
Applicants request an order to
permit business development
companies (‘‘BDCs’’) and certain closedend management investment companies
to co-invest in portfolio companies with
each other and with affiliated
investment funds.
Applicants: Alcentra Capital
Corporation (the ‘‘Company’’); BNY
Mellon Alcentra Multi-Strategy Credit
Fund, Inc. (‘‘BAMSCF,’’ and together
with the Company, the ‘‘Existing
Regulated Funds’’); Alcentra BDC
Equity Holdings, LLC (the
‘‘Subsidiary’’); Alcentra Middle Market
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SUMMARY:
17 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
19:33 Dec 09, 2015
Jkt 238001
Fund IV, L.P. (the ‘‘Existing CoInvestment Affiliate’’); Alcentra NY,
LLC (‘‘Alcentra NY’’); Alcentra Limited
(together with Alcentra NY, the
‘‘Alcentra Advisers’’), and The Dreyfus
Corporation (‘‘Dreyfus’’).
DATES: Filing Dates: The application was
filed on October 16, 2014 and amended
on April 2, 2015 and August 6, 2015.
Hearing or Notification of Hearing: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on December 29, 2015, and
should be accompanied by proof of
service on applicants, in the form of an
affidavit or, for lawyers, a certificate of
service. Hearing requests should state
the nature of the writer’s interest, the
reason for the request, and the issues
contested. Persons who wish to be
notified of a hearing may request
notification by writing to the
Commission’s Secretary.
ADDRESSES: Secretary, U.S. Securities
and Exchange Commission, 100 F St.
NE., Washington, DC 20549–1090.
Applicants: Alcentra Capital
Corporation, 200 Park Avenue, 7th
Floor, New York, NY 10166.
FOR FURTHER INFORMATION CONTACT:
Vanessa M. Meeks, Senior Counsel, or
Melissa R. Harke, Branch Chief, at (202)
551–6825 (Chief Counsel’s Office,
Division of Investment Management).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
Web site by searching for the file
number, or for an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
Applicants’ Representations
1. The Existing Regulated Funds were
each organized as a corporation under
the General Corporate Laws of the State
of Maryland. The Company operates as
an externally-managed, non-diversified,
closed-end management investment
company that has elected to be
regulated as a business development
company (‘‘BDC’’) under the Act.1
BAMSCF is a non-diversified, closed1 Section 2(a)(48) defines a BDC to be any closedend investment company that operates for the
purpose of making investments in securities
described in sections 55(a)(1) through 55(a)(3) of the
Act and makes available significant managerial
assistance with respect to the issuers of such
securities.
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76719
end management investment company
registered under the Act. The
Company’s investment objective is to
generate both current income and
capital appreciation primarily by
making direct investments in lower
middle-market companies in the form of
subordinated debt and, to a lesser
extent, senior debt and minority equity
investments. BAMSCF’s investment
objective is to seek total return
consisting of capital appreciation and
income. A majority of the board of
directors (‘‘Board’’) 2 of the Company are
persons who are not ‘‘interested
persons,’’ as defined in section 2(a)(19)
of the Act (the ‘‘Independent
Directors’’). It is anticipated that the
BAMSCF Board will be comprised
entirely of Independent Directors.
2. The Subsidiary is a Wholly-Owned
Investment Sub (as defined below), the
sole business purpose of which is to
hold one or more investments on behalf
of the Company. The Subsidiary is a
Delaware entity.
3. The Existing Co-Investment
Affiliate is a Delaware limited
partnership. In reliance on the exclusion
from the definition of ‘‘investment
company’’ provided by section 3(c)(1) or
3(c)(7) of the Act, none of the CoInvestment Affiliates (as defined below)
will be registered under the Act.
4. Alcentra NY is a Delaware limited
liable company that is registered as an
investment adviser under the
Investment Advisers Act of 1940 (the
‘‘Advisers Act’’). Alcentra NY serves as
investment adviser to the Company
pursuant to an investment advisory
agreement and also serves as investment
adviser to the Existing Co-Investment
Affiliate. Alcentra Limited is
incorporated in the United Kingdom
and Wales and is registered as an
investment adviser under the Advisers
Act. Alcentra Limited is proposed to
serve as a sub-adviser to BAMSCF.
Dreyfus is a corporation organized
under the laws of the State of New York
that is registered as an investment
adviser under the Advisers Act. Dreyfus
is proposed to serve as investment
manager to BAMSCF.
5. Applicants seek an order (‘‘Order’’)
to permit a Regulated Fund 3 (or a
2 ‘‘Board’’ refers to the board of directors of any
Regulated Fund (as defined below).
3 ‘‘Regulated Funds’’ means the Existing
Regulated Funds and any future closed-end
investment companies that (a) are registered under
the Act or have elected to be regulated as a BDC
under the Act, (b) will be advised by an Adviser,
and (c) that intend to participate in the CoInvestment Program. ‘‘Adviser’’ means (a) Alcentra
NY, Alcentra Limited, or Dreyfus or (b) any other
existing or future investment adviser that controls,
is controlled by or is under common control with
E:\FR\FM\10DEN1.SGM
Continued
10DEN1
]]>Agencies
[Federal Register Volume 80, Number 237 (Thursday, December 10, 2015)]
[Notices]
[Pages 76716-76719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31065]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76557; File No. SR-MIAX-2015-65]
Self-Regulatory Organizations: Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
December 4, 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 November 30, 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to 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 its Fee Schedule to modify the
monthly volume thresholds in Tiers 2 and 3 in the Priority Customer
Rebate Program (the ``Program'').\3\
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\3\ See Securities Exchange Act Release Nos. 76098 (October 7,
2015), 80 FR 61866 (October 14, 2015) (SR-MIAX-2015-58); 75856
(September 8, 2015), 80 FR 55158 (September 14, 2015) (SR-MIAX-2015-
53); 75631 (August 6, 2015), 80 FR 48382 (August 12, 2015) (SR-MIAX-
2015-51); 74758 (April 17, 2015), 80 FR 22756 (April 23, 2015) (SR-
MIAX-2015-27); 74007 (January 9, 2015), 80 FR 1537 (January 12,
2015) (SR-MIAX-2014-69); 72799 (August 8, 2014), 79 FR 47698 (August
14, 2014) (SR-MIAX-2014-40); 72355 (June 10, 2014), 79 FR 34368
(June 16, 2014) (SR-MIAX-2014-25); 71698 (March 12, 2014), 79 FR
15185 (March 18, 2014) (SR-MIAX-2014-12); 71283 (January 10, 2014),
79 FR 2914 (January 16, 2014) (SR-MIAX-2013-63); 71009 (December 6,
2013), 78 FR 75629 (December 12, 2013) (SR-MIAX-2013-56).
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Priority Customer Rebate Program
Currently, the Exchange credits each Member the per contract amount
resulting from each Priority Customer \4\ order transmitted by that
Member that is executed electronically on the Exchange in all multiply-
listed option classes (excluding Qualified Contingent Cross Orders,\5\
mini-options,\6\ Priority Customer-to-Priority Customer Orders, PRIME
Auction Or Cancel Responses, PRIME Contra-side Orders, PRIME Orders for
which both the Agency and Contra-side Order are Priority Customers,\7\
and executions related to contracts that are routed to one or more
exchanges in connection with the Options Order Protection and Locked/
Crossed Market Plan referenced in MIAX Rule 1400), provided the Member
meets certain tiered percentage thresholds in a month as described in
the Priority Customer Rebate Program table.\8\ For each Priority
Customer order transmitted by that Member which is executed
electronically on the Exchange in MIAX Select Symbols, MIAX will
continue to credit each member at the separate per contract rate for
MIAX Select Symbols.\9\ For each Priority Customer order submitted into
the PRIME Auction as a PRIME Agency
[[Page 76717]]
Order, MIAX will continue to credit each member at the separate per
contract rate for PRIME Agency Orders.\10\ The volume thresholds are
calculated based on the customer volume over the course of the month.
Volume will be recorded for and credits will be delivered to the Member
Firm that submits the order to the Exchange.
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\4\ The term ``Priority Customer'' means a person or entity that
(i) is not a broker or dealer in securities, and (ii) does not place
more than 390 order in listed options per day on average during a
calendar month for its own beneficial account(s). See Exchange Rule
100.
\5\ A Qualified Contingent Cross Order is comprised of an
originating order to buy or sell at least 1,000 contracts, or 10,000
mini-option contracts, that is identified as being part of a
qualified contingent trade, as that term is defined in
Interpretations and Policies .01 below, coupled with a contra-side
order or orders totaling an equal number of contracts. A Qualified
Contingent Cross Order is not valid during the opening rotation
process described in Rule 503. See Exchange Rule 516(j).
\6\ A mini-option is a series of option contracts with a 10
share deliverable on a stock, Exchange Traded Fund share, Trust
Issued Receipt, or other Equity Index-Linked Security. See Exchange
Rule 404, Interpretations and Policies .08.
\7\ The MIAX Price Improvement Mechanism (``PRIME'') is a
process by which a Member may electronically submit for execution
(``Auction'') an order it represents as agent (``Agency Order'')
against principal interest, and/or an Agency Order against solicited
interest. For a complete description of PRIME and of PRIME order
types and responses, see Exchange Rule 515A.
\8\ See MIAX Fee Schedule Section (1)(a)(iii).
\9\ See Securities Exchange Release Nos. 75631 (August 6, 2015),
80 FR 48382 (August 12, 2015) (SR-MIAX-2015-51), 74291 (February 18,
2015), 80 FR 9841 (February 24, 2015) (SR-MIAX-2015-09); 74288
(February 18, 2015), 80 FR 9837 (February 24, 2015) (SR-MIAX-2015-
08); 71700 (March 12, 2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-
2014-13); 72356 (June 10, 2014), 79 FR 34384 (June 16, 2014) (SR-
MIAX-2014-26); 72567 (July 8, 2014), 79 FR 40818 (July 14, 2014)
(SR-MIAX-2014-34); 73328 (October 9, 2014), 79 FR 62230 (October 16,
2014) (SR-MIAX-2014-50).
\10\ See Securities Exchange Release Nos. 75408 (July 9, 2015)
80 Fr 41530 (July 15, 2015) (SR-MIAX-2015-45); 72943 (August 28,
2014), 79 FR 52785 (September 4, 2014) (SR-MIAX-2014-45).
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The amount of the rebate is calculated beginning with the first
executed contract at the applicable threshold per contract credit with
rebate payments made at the highest achieved volume tier for each
contract traded in that month. For example, under the current Program,
a Member that executes a number of Priority Customer contracts above
1.75% of the national customer volume in multiply-listed options during
a particular calendar month, such Member will currently receive a
credit of $0.21 for each Priority Customer contract (other than Select
Symbols) executed during that month, even though there are lower
incremental percentages for lower volume tiers leading up to the 1.75%
volume threshold.
The current Priority Customer Rebate Program table designates the
following monthly volume tiers and corresponding per contract credits:
----------------------------------------------------------------------------------------------------------------
Per contract
Percentage thresholds of national customer volume in multiply- Per contract Per contract credit for
listed options classes listed on MIAX (monthly) credit credit in MIAX prime agency
select symbols order
----------------------------------------------------------------------------------------------------------------
0.00-0.50%...................................................... $0.00 $0.00 $0.10
Above 0.50-1.00................................................. 0.10 0.10 0.10
Above 1.00-1.75................................................. 0.15 0.20 0.10
Above 1.75...................................................... 0.21 0.24 0.10
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Proposal
The Exchange proposes to amend Section (1)(a)(iii) of its Fee
Schedule to reflect a new schedule of percentage thresholds of national
customer volume. Specifically, the new thresholds will be as set forth
in the following table:
----------------------------------------------------------------------------------------------------------------
Per contract
Percentage thresholds of national customer volume Per contract Per contract credit for
in multiply-listed options classes listed on MIAX credit credit in MIAX prime agency
(monthly) select symbols order
--------------------------------------------------------------------------------------------------
0.00-0.50%........................................ $0.00 $0.00 $0.10
Above 0.50-1.20................................... 0.10 0.10 0.10
Above 1.20-1.75................................... 0.15 0.20 0.10
Above 1.75........................................ 0.21 0.24 0.10
----------------------------------------------------------------------------------------------------------------
The Exchange believes that the proposed new monthly volume tiers
should provide incentives for Members to direct greater Priority
Customer trade volume to the Exchange.
MIAX Select Symbols
The proposed new monthly volume thresholds will apply to multiply
listed options classes, including MIAX Select Symbols.\11\ The Tier 2
per contract credit volume threshold will now extend from above 0.50%
to 1.20%. The effect of this is that Members must still execute [sic]
0.50% of the national customer volume in a particular class in order to
qualify for the Tier 2 per contract credit, and must now exceed 1.20%
of the national customer volume in the affected class in order to
receive the Tier 3 per contract credit. The Tier 3 volume threshold
will now extend from above 1.20% to 1.75%. The Tier 4 volume threshold
of above 1.75% will be unchanged.
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\11\ The term ``MIAX Select Symbols'' means options overlying
AA, AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C,
CAT, CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD,
GM, GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO,
MRK, NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY,
SUNE, T, TSLA, USO, VALE, VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF,
XLP, XOM, XOP and YHOO. See Fee Schedule, note 13.
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All other aspects of the Program will remain unchanged. The
Exchange is not proposing any change to the per contract credit for
PRIME Agency Orders. Consistent with the current Fee Schedule, the
Exchange will continue to aggregate the contracts resulting from
Priority Customer orders transmitted and executed electronically on the
Exchange from affiliated Members for purposes of the thresholds above,
provided there is at least 75% common ownership between the firms as
reflected on each firm's Form BD, Schedule A. In the event of a MIAX
System outage or other interruption of electronic trading on MIAX, the
Exchange will adjust the national customer volume in multiply-listed
options for the duration of the outage. A Member may request to receive
its credit under the Priority Customer Rebate Program as a separate
direct payment.
The purpose of the proposed rule change is to encourage Members to
direct greater Priority Customer trade volume to the Exchange. The
Exchange believes that increased Priority Customer volume will attract
more liquidity to the Exchange, which benefits all market participants.
Increased retail customer order flow should attract professional
liquidity providers (Market Makers), which in turn should make the MIAX
marketplace an attractive venue where Market Makers will submit narrow
quotations with greater size, deepening and enhancing the quality of
the MIAX marketplace. This should provide more trading opportunities
and tighter spreads for other market participants and result in a
corresponding increase in order flow from such other market
participants.
The specific volume thresholds of the Program's tiers are set based
upon business determinations and an analysis
[[Page 76718]]
of current volume levels. The volume thresholds are intended to
incentivize firms to increase the number of Priority Customer orders
they send to the Exchange so that they can achieve the next threshold,
and to encourage new participants to send Priority Customer orders as
well. Increasing the number of orders sent to the Exchange will in turn
provide tighter and more liquid markets, and therefore attract more
business overall. Similarly, the different credit rates at the
different tier levels are based on an analysis of current revenue and
volume levels and are intended to provide increasing ``rewards'' to
MIAX participants for increasing the volume of Priority Customer orders
sent to, and Priority Customer contracts executed on, the Exchange. The
specific amounts of the tiers and rates are set in order to encourage
suppliers of Priority Customer order flow to reach for higher tiers.
The credits paid out as part of the program will be drawn from the
general revenues of the Exchange.\12\ The Exchange calculates volume
thresholds on a monthly basis. The proposed changes to the Fee Schedule
will be operative as of December 1, 2015.
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\12\ Despite providing credits under the Program, the Exchange
represents that it will continue to have adequate resources to fund
its regulatory program and fulfill its responsibilities as a self-
regulatory organization while the Program is in effect.
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2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \13\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \14\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among Exchange members.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposal is fair, equitable and not
unreasonably discriminatory. The Program and the proposed new tier
structure should improve market quality for all market participants.
The proposed changes to the Program are fair and equitable and not
unreasonably discriminatory because they apply equally to all Priority
Customer orders. All similarly situated Priority Customer orders are
subject to the same rebate schedule, and access to the Exchange is
offered on terms that are not unfairly discriminatory. Market
participants want to trade with Priority Customer order flow. To the
extent Priority Customer order flow is increased by the proposal,
market participants will increasingly compete for the opportunity to
trade on the Exchange including sending more orders and providing
narrower and larger sized quotations in the effort to trade with such
Priority Customer order flow. The resulting increased volume and
liquidity will benefit all Exchange participants by providing more
trading opportunities and tighter spreads.
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. The Exchange
believes that the proposed change would increase both intermarket and
intramarket competition by encouraging Members to direct their Priority
Customer orders to the Exchange, which should enhance the quality of
quoting and increase the volume of contracts traded on MIAX. Respecting
the competitive position of non-Priority Customers, the Exchange
believes that this rebate program should provide additional liquidity
that enhances the quality of its markets and increases the number of
trading opportunities on MIAX for all participants, including non-
Priority Customers, who will be able to compete for such opportunities.
This should benefit all market participants and improve competition on
the 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 and rebates
to remain competitive with other exchanges and to attract order flow to
the Exchange. The Exchange believes that the proposed rule change
reflects this competitive environment because it encourages market
participants to direct their customer order flow, to provide liquidity,
and to attract additional transaction volume to the Exchange. Given the
robust competition for volume among options markets, many of which
offer the same products, enhancing the existing volume based customer
rebate program to attract order flow is consistent with the goals of
the Act. The Exchange believes that the proposal will enhance
competition, because market participants will have another additional
pricing consideration in determining where to execute orders and post
liquidity if they factor the benefits of the proposed rebate program
into the determination.
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,\15\ and Rule 19b-4(f)(2) \16\ thereunder.
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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\15\ 15 U.S.C. 78s(b)(3)(A)(ii).
\16\ 17 CFR 240.19b-4(f)(2).
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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-2015-65 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-2015-65. 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
[[Page 76719]]
proposed rule change between the Commission and any person, other than
those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-MIAX-2015-65 and should be
submitted on or before December 31, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-31065 Filed 12-9-15; 8:45 am]
BILLING CODE 8011-01-P
