Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 29603-29606 [2016-11152]
Download as PDF
<![CDATA[
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Notices
alternative opportunity to exercise their
right to nominate directors for the
Board, consistent with the Exchange
Act.
The proposed rule changes will
require ICE to include in its Proxy
Materials information regarding a
director nominee nominated pursuant to
proposed Section 2.15 in its Proxy
Materials, including disclosures
regarding the nominee and nominating
stockholder(s), any statement in support
of the nominee provided by the
nominating stockholder(s), and any
other information that ICE or the Board
determines to include relating to the
nomination. The Commission believes
that the provision of such information
could help stockholders to assess
whether a nominee submitted pursuant
to proposed Section 2.15 possesses the
necessary qualifications and experience
to serve as a director.
The proposed rule changes limit the
availability of proxy access in certain
circumstances. For example, in order to
be eligible to submit a nomination to be
included in the Proxy Materials
pursuant to proposed Section 2.15, a
shareholder (or group of shareholders) is
required to own at least three percent of
ICE’s outstanding shares of common
stock continuously for at least three
years. Furthermore, a shareholder may
not nominate a director to be included
in the Proxy Materials pursuant to
proposed Section 2.15 if he or she is
holding ICE’s securities with the intent
of effecting a change of control of ICE.
The proposed rule changes also
generally would limit the number of
director nominees submitted pursuant
to proposed Section 2.15 that may be
included in the Proxy Materials to
twenty percent of the total number of
directors of the Board. The proposed
rule changes would allow ICE to
disregard or omit nominees submitted
pursuant to proposed Section 2.15 from
the Proxy Materials in certain
circumstances, including if the Board
determines that the nomination or
election of the nominee would result in
ICE violating or failing to be in
compliance with its governing
documents or any applicable law, rule
or regulation to which it is subject.42
The Commission notes that such
limitations on proxy access seem
designed to balance the ability of ICE
shareholders to participate more fully in
the nomination and election process
against the potential cost and practical
difficulties of requiring inclusion of
shareholder nominations in proxy
materials.
42 See,
e.g., Proposed Section 2.15(e)(i)(C).
VerDate Sep<11>2014
17:02 May 11, 2016
Jkt 238001
The Commission notes that the
proposed proxy access provisions
include safeguards to help verify that
any director nominees submitted
pursuant to proposed Section 2.15
would qualify as independent directors
and that the nominating shareholder’s
nomination of the nominee, and the
nominee’s membership on the Board, if
elected, would not violate any
applicable laws, rules or regulations of
any government entity or relevant selfregulatory organization. Specifically, the
nominating stockholder must represent
and warrant, among other things, that:
(i) The nominee’s candidacy or, if
elected, membership on the Board
would not violate applicable state or
federal law or the rules of the principal
national securities exchange on which
ICE’s securities are traded; (ii) the
nominee does not have any direct or
indirect relationship with ICE that will
cause the nominee to be deemed not
independent under the Board’s
Independence Policy; 43 and (iii) the
nominee qualifies as independent under
the rules of the principal national
securities exchange on which ICE’s
common stock is traded and meets that
exchange’s audit committee
independence requirements.44 In
addition, each nominating stockholder
is required to provide an executed
agreement, pursuant to which he or she
agrees to comply with all applicable
laws, rules and regulations in
connection with the nomination,
solicitation, and election of a nominee.
The nominee is also required to provide
an executed agreement, pursuant to
which: (i) If elected, the nominee agrees
to adhere to ICE’s Corporate Governance
Guidelines and Global Code of Business
Conduct and any other policies and
guidelines applicable to directors; and
(ii) the nominee agrees that he or she is
not and will not become party to certain
financial or voting arrangements that
may present conflicts of interest or
interfere with the nominee’s ability to
comply, if elected, with his or her
fiduciary duties under applicable law.45
The Commission notes that the
safeguards and limitations described
above should help to ensure ICE can
comply with its bylaws and any
applicable laws, rules, regulations,
43 See also id. (permitting ICE to omit from its
Proxy Materials any nominee submitted pursuant to
proposed Section 2.15 if the Board determines that
nomination or election of that nominee to the Board
would cause ICE to violate or fail to be in
compliance with its Bylaws, its certificate of
incorporation, or any applicable law, rule or
regulation, including any rules or regulations of the
principal national securities exchange on which
ICE’s common stock is traded).
44 See supra notes 12–19 and accompanying text.
45 See supra notes 20–21 and accompanying text.
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
29603
including, among others, the Board’s
Independence Policy and exchange
listing standards on independent
directors and audit committees,
consistent with Section 6(b)(5) of the
Act. Based on the foregoing, the
Commission finds that the proposed
rule changes filed by the Exchanges are
consistent with the Act.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,46 that the
proposed rule changes (SR–NYSE–
2016–14, SR–NYSEArca–2016–25, SR–
NYSEMKT–20), be, and hereby are,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.47
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–11178 Filed 5–11–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77777; File No. SR–MIAX–
2016–09]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule
May 6, 2016.
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 April 26, 2016, 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
46 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
47 17
E:\FR\FM\12MYN1.SGM
12MYN1
29604
Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Notices
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
asabaliauskas on DSK3SPTVN1PROD with NOTICES
The Exchange proposes to amend its
Fee Schedule to: (i) Offer to each
Qualifying Member (as defined below) a
rebate of $0.03 per contract executed
within Tier 1 of the Priority Customer
Rebate Program (the ‘‘PCRP’’),3 and (ii)
amend the definition of ‘‘Baseline
Percentage’’ under the Professional
Rebate Program. The Exchange is also
proposing a technical clarifying
amendment to the Fee Schedule, as
described below.
The Exchange proposes to amend
Section (1)(a)(iii) of the Fee Schedule to
offer a $0.03 rebate per contract
executed within Tier 1 of the PCRP to
each ‘‘Qualifying Member,’’ as defined
below. Tier 1 of the PRCP [sic] currently
offers no per contract credits to
Members that execute a number of
Priority Customer 4 contracts as a
percentage of national customer volume
in multiply-listed options classes (with
certain exclusions detailed in the Fee
3 Under the PRCP [sic], MIAX credits each
Member the per contract amount resulting from
each Priority Customer order transmitted by that
Member which is executed electronically on the
Exchange in all multiply-listed option classes
(excluding QCC Orders, mini-options, Priority
Customer-to-Priority Customer Orders, PRIME AOC
Responses, PRIME Contra-side Orders, PRIME
Orders for which both the Agency and Contra-side
Order are Priority Customers, 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 percentage thresholds in a
month as described in the Priority Customer Rebate
Program table. See Fee Schedule, Section (1)(a)(iii).
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
orders in listed options per day on average during
a calendar month for its own beneficial account(s).
VerDate Sep<11>2014
17:02 May 11, 2016
Jkt 238001
schedule) 5 listed on MIAX of 0.00% to
0.50% in a given month, unless the
Priority Customer contracts executed in
Tier 1 are the result of a PRIME 6
Agency Order, which receive a rebate of
$0.10 per contract.
In order to provide incentive for order
flow providers to increase the volume of
Professional 7 orders they submit to the
Exchange, and to send additional
Priority Customer order flow as well,
the Exchange proposes to offer the $0.03
per contract credit for Priority Customer
contracts executed in Tier 1 of the PRCP
[sic] program to Members that achieve
certain volume increases in the
Professional Rebate Program.
Specifically, the Exchange proposes to
provide a rebate of $0.03 per Priority
Customer contract executed in Tier 1 of
the PRCP [sic] in a given month to
Members that execute a certain number
of contracts in that month for the
account(s) of a Professional and which
qualify for the Professional Rebate
Program described in Section (1)(a)(iv)
of the Fee Schedule.
In order to qualify for the proposed
monthly PRCP [sic] Tier 1 rebate, a
Member must execute an increased
percentage of contracts on MIAX in that
same month for the account(s) of a
Professional (not including minioptions, Non-Priority Customer-to-NonPriority Customer Orders, QCC Orders,
PRIME Orders, PRIME AOC Responses,
PRIME Contra-side Orders, 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
(collectively, for purposes of the
Professional Rebate Program, ‘‘Excluded
Contracts’’)) by greater than 0.065% of
the number of contracts executed by the
Member for the account(s) of a
Professional during the fourth quarter of
2015 as a percentage of the total volume
reported by the Options Clearing
Corporation (‘‘OCC’’) in MIAX classes
during the fourth quarter of 2015 (the
‘‘Baseline Percentage’’). For the purpose
of establishing a Baseline Percentage for
any Member for whom no fourth quarter
2015 Baseline Percentage exists, MIAX
5 See
supra note 3.
MIAX Price Improvement Mechanism
(‘‘PRIME’’) is a price improvement auction under
which the Initiating Member electronically submits
an order that it represents as agent (an ‘‘Agency
Order’’) into a PRIME Auction (‘‘Auction’’), which
the Initiating Member is willing to match as
principal, the price and size of responses in the
Auction at a single price or up to an optional
designated limit price. See Exchange Rule 515A.
7 A ‘‘Professional’’ is a (i) Public Customer that is
not a Priority Customer; (ii) Non-MIAX Market
Maker; (iii) Non-Member Broker-Dealer; or (iv)
Firm. See Fee Schedule, Section (1)(a)(iv).
6 The
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
will use 0.03% as that Member’s
Baseline Percentage, as described below.
A Member that qualifies to receive the
proposed PRCP [sic] Tier 1 rebate will
be known as a ‘‘Qualifying Member,’’
which is a Member or its affiliates of at
least 75% common ownership between
the firms as reflected on each firm’s
Form BD, Schedule A, that qualifies for
the Professional Rebate Program and
achieves a volume increase in excess of
0.065% over the applicable Baseline
Percentage for Professional orders
transmitted by that Member which are
executed electronically on the Exchange
in all multiply-listed option classes for
the account(s) of a Professional and
which qualify for the Professional
Rebate Program during a particular
month, relative to the appropriate
Baseline Percentage (described below).
The Exchange will aggregate the
contracts resulting from orders of a
Qualifying Member transmitted and
executed electronically on the Exchange
from affiliated Members of the
Qualifying Member, provided there is at
least 75% common ownership between
the firms as reflected on each firm’s
Form BD, Schedule A.
The Exchange also proposes to
establish a new ‘‘Baseline Percentage’’
for Members who did not execute
contracts for the account(s) of a
Professional during the fourth quarter of
2015 in order to permit such Members
to benefit from all of the rebates offered
under the Professional Rebate Program.
Currently, the Professional Rebate
Program affords a per contract credit
based upon the increase in the total
volume submitted by a Member and
executed for the account(s) of a
Professional on MIAX (not including
Excluded Contracts) during a particular
month as a percentage of the total
volume reported by (OCC) in MIAX
classes during the same month (the
‘‘Current Percentage’’), less the total
volume submitted by that Member and
executed for the account(s) of a
Professional on MIAX (not including
Excluded Contracts) during the fourth
quarter of 2015 as a percentage of the
total volume reported by OCC in MIAX
classes during the fourth quarter of 2015
(the ‘‘Baseline Percentage’’). The
Exchange proposes to define a Baseline
Percentage for Members who did not
execute contracts for the account(s) of a
Professional during the fourth quarter of
2015. For such Members (with respect
to all available rebates in the
Professional Rebate Program), the
‘‘Baseline Percentage’’ will be .03%.
The purpose of the proposed rule
change is to encourage Members to
direct an increased level of Professional
contract volume to the Exchange by
E:\FR\FM\12MYN1.SGM
12MYN1
Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Notices
asabaliauskas on DSK3SPTVN1PROD with NOTICES
offering to provide such Members with
an additional, concurrent incentive to
direct Priority Customer order flow to
the Exchange. The Exchange believes
that increased Professional and Priority
Customer volume will attract more
liquidity to the Exchange, which
benefits all market participants.
Increased Professional and Priority
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 Exchange is also proposing a
minor technical amendment to Section
(1)(a)(iii) of the Fee Schedule to refer
specifically to ‘‘The Priority Customer
rebate’’ payment instead of stating
‘‘This’’ payment in the third paragraph
under the PRCP [sic] table. This is
intended for clarity and ease of
reference.
The credits paid out as part of the
PCRP will be drawn from the general
revenues of the Exchange.8 The
Exchange calculates volume thresholds
on a monthly basis. The proposed rule
changes are to take effect May 1, 2016.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 9
in general, and furthers the objectives of
Section 6(b)(4) of the Act 10 in
particular, in that it is an equitable
allocation of reasonable fees and other
charges among Exchange members, and
issuers and other persons using its
facilities.
The Exchange believes that the
proposal to offer the rebate under the
PCRP to Qualifying Members is fair,
equitable and not unreasonably
discriminatory, because it applies
equally to all Qualifying Members. The
proposed per contract rebate for Priority
Customer orders is reasonably designed
because it will encourage providers of
Professional order flow to send
increased Professional order flow to the
8 Despite providing credits under the PCRP and
the Professional Rebate 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 each of the PCRP and the Professional Rebate
Program is in effect.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
VerDate Sep<11>2014
17:02 May 11, 2016
Jkt 238001
Exchange in order to receive the per
contract credit for achieving Tier 1
volume in contracts executed for
Priority Customers. The Exchange thus
believes that the proposed new rebate
should improve market quality for all
market participants by providing more
execution opportunities. All Qualifying
Members will receive the same rebate
for Priority Customer contracts executed
in PRCP [sic] Tier 1.
The Exchange believes that the
proposal to amend the definition of
Baseline Percentage is fair, equitable
and not unreasonably discriminatory.
The Exchange believes that the
proposed definition of Baseline
Percentage should provide an equal
opportunity, and a beginning measuring
percentage, for all Members that did not
have a Baseline Percentage for the
fourth quarter of 2015 to submit
Professional order flow and thus
become Qualifying Members for the Tier
1 Priority Customer contract rebate. This
should in turn increase order flow,
trading opportunities and improve the
overall depth, liquidity and quality of
the market for all MIAX participants.
Additionally, the proposed amended
definition of Baseline Percentage is
equitable and not unfairly
discriminatory because it will benefit
Members who did not execute orders for
the account(s) of a Professional in the
fourth quarter of 2015 and such
Members will now be on an equal
playing field with respect to the
calculation of their potential increase in
percentage of Professional contracts
executed for purposes of becoming a
Qualifying Member.
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
changes would increase both
intermarket and intramarket
competition by encouraging Members to
direct their Professional and Priority
Customer orders to the Exchange, which
should enhance the quality of quoting
and increase the volume of contracts
traded on MIAX. The Exchange believes
that the changes to each of the PCRP
and the Professional 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, who will be able to
compete for such opportunities. This
should benefit all market participants
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
29605
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 adds new
rebates and thus encourages market
participants to direct both their
Professional and Priority Customer
order flow to the Exchange. Given the
robust competition for volume among
options markets, many of which offer
the same products, enhancing the
existing volume-based PCRP and
Professional Rebate Programs 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 amendments to
the PCRP and Professional 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,11 and Rule
19b–4(f)(2) 12 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
11 15
12 17
E:\FR\FM\12MYN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
12MYN1
29606
Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Notices
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–2016–09 on the subject line.
Paper Comments
asabaliauskas on DSK3SPTVN1PROD with NOTICES
• 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–2016–09. 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–
2016–09, and should be submitted on or
before June 2, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–11152 Filed 5–11–16; 8:45 am]
BILLING CODE 8011–01–P
13 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:02 May 11, 2016
Jkt 238001
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA 2015–0060]
Privacy Act of 1974, as Amended;
Computer Matching Program (SSA/
Department of the Treasury, the
Bureau of the Fiscal Service (Fiscal
Service)—Match Number 1038
AGENCY:
Social Security Administration
(SSA).
Notice of a renewal of an
existing computer matching program
that will expire on June 25, 2016.
ACTION:
In accordance with the
provisions of the Privacy Act, as
amended, this notice announces a
renewal of an existing computer
matching program that we are currently
conducting with Fiscal Service.
DATES: We will file a report of the
subject matching program with the
Committee on Homeland Security and
Governmental Affairs of the Senate; the
Committee on Oversight and
Government Reform of the House of
Representatives; and the Office of
Information and Regulatory Affairs,
Office of Management and Budget
(OMB). The matching program will be
effective as indicated below.
ADDRESSES: Interested parties may
comment on this notice by either
telefaxing to (410) 966–0869 or writing
to the Executive Director, Office of
Privacy and Disclosure, Office of the
General Counsel, Social Security
Administration, 617 Altmeyer Building,
6401 Security Boulevard, Baltimore, MD
21235–6401. All comments received
will be available for public inspection at
this address.
FOR FURTHER INFORMATION CONTACT: The
Executive Director, Office of Privacy
and Disclosure, Office of the General
Counsel, as shown above.
SUPPLEMENTARY INFORMATION:
SUMMARY:
A. General
The Computer Matching and Privacy
Protection Act of 1988 (Pub. L. 100–
503), amended the Privacy Act (5 U.S.C.
552a) by describing the conditions
under which computer matching
involving the Federal government could
be performed and adding certain
protections for persons applying for,
and receiving, Federal benefits. Section
7201 of the Omnibus Budget
Reconciliation Act of 1990 (Pub. L. 101–
508) further amended the Privacy Act
regarding protections for such persons.
The Privacy Act, as amended,
regulates the use of computer matching
by Federal agencies when records in a
system of records are matched with
other Federal, State, or local government
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
records. It requires Federal agencies
involved in computer matching
programs to:
(1) Negotiate written agreements with
the other agency or agencies
participating in the matching programs;
(2) Obtain approval of the matching
agreement by the Data Integrity Boards
of the participating Federal agencies;
(3) Publish notice of the computer
matching program in the Federal
Register;
(4) Furnish detailed reports about
matching programs to Congress and
OMB;
(5) Notify applicants and beneficiaries
that their records are subject to
matching; and
(6) Verify match findings before
reducing, suspending, terminating, or
denying a person’s benefits or
payments.
B. SSA Computer Matches Subject to
the Privacy Act
We have taken action to ensure that
all of our computer matching programs
comply with the requirements of the
Privacy Act, as amended.
Glenn Sklar,
Acting Executive Director, Office of Privacy
and Disclosure, Office of the General Counsel.
Notice of Computer Matching Program,
SSA With the Department of the
Treasury, the Bureau of the Fiscal
Service (Fiscal Service)
A. Participating Agencies
SSA and Fiscal Service.
B. Purpose of the Matching Program
The purpose of this matching program
sets forth the terms, conditions,
safeguards, and procedures under which
Fiscal Service will disclose savings
security data to us. We will use the data
to determine continued eligibility for
Supplemental Security Income (SSI)
applicants and recipients, or the correct
benefit amount for recipients and
deemors who did not report or
incorrectly reported ownership of
savings securities.
C. Authority for Conducting the
Matching Program
The legal authority for this matching
program is executed under the Privacy
Act of 1974, 5 United States Code
(U.S.C.) 552a, as amended by the
Computer Matching and Privacy
Protection Act of 1988, as amended, and
the regulations and guidance
promulgated thereunder.
The legal authority for us to conduct
this matching program is contained in
1631(e)(1)(B), and 1631(f) of the Social
Security Act (Act), (42 U.S.C.
1383(e)(1)(B), and 1383(f)).
E:\FR\FM\12MYN1.SGM
12MYN1
]]>Agencies
[Federal Register Volume 81, Number 92 (Thursday, May 12, 2016)]
[Notices]
[Pages 29603-29606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11152]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77777; File No. SR-MIAX-2016-09]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
May 6, 2016.
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 April 26, 2016, 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 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
[[Page 29604]]
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: (i) Offer to
each Qualifying Member (as defined below) a rebate of $0.03 per
contract executed within Tier 1 of the Priority Customer Rebate Program
(the ``PCRP''),\3\ and (ii) amend the definition of ``Baseline
Percentage'' under the Professional Rebate Program. The Exchange is
also proposing a technical clarifying amendment to the Fee Schedule, as
described below.
---------------------------------------------------------------------------
\3\ Under the PRCP [sic], MIAX credits each Member the per
contract amount resulting from each Priority Customer order
transmitted by that Member which is executed electronically on the
Exchange in all multiply-listed option classes (excluding QCC
Orders, mini-options, Priority Customer-to-Priority Customer Orders,
PRIME AOC Responses, PRIME Contra-side Orders, PRIME Orders for
which both the Agency and Contra-side Order are Priority Customers,
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 percentage thresholds in a month as
described in the Priority Customer Rebate Program table. See Fee
Schedule, Section (1)(a)(iii).
---------------------------------------------------------------------------
The Exchange proposes to amend Section (1)(a)(iii) of the Fee
Schedule to offer a $0.03 rebate per contract executed within Tier 1 of
the PCRP to each ``Qualifying Member,'' as defined below. Tier 1 of the
PRCP [sic] currently offers no per contract credits to Members that
execute a number of Priority Customer \4\ contracts as a percentage of
national customer volume in multiply-listed options classes (with
certain exclusions detailed in the Fee schedule) \5\ listed on MIAX of
0.00% to 0.50% in a given month, unless the Priority Customer contracts
executed in Tier 1 are the result of a PRIME \6\ Agency Order, which
receive a rebate of $0.10 per contract.
---------------------------------------------------------------------------
\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 orders in listed options per day on average during a
calendar month for its own beneficial account(s).
\5\ See supra note 3.
\6\ The MIAX Price Improvement Mechanism (``PRIME'') is a price
improvement auction under which the Initiating Member electronically
submits an order that it represents as agent (an ``Agency Order'')
into a PRIME Auction (``Auction''), which the Initiating Member is
willing to match as principal, the price and size of responses in
the Auction at a single price or up to an optional designated limit
price. See Exchange Rule 515A.
---------------------------------------------------------------------------
In order to provide incentive for order flow providers to increase
the volume of Professional \7\ orders they submit to the Exchange, and
to send additional Priority Customer order flow as well, the Exchange
proposes to offer the $0.03 per contract credit for Priority Customer
contracts executed in Tier 1 of the PRCP [sic] program to Members that
achieve certain volume increases in the Professional Rebate Program.
Specifically, the Exchange proposes to provide a rebate of $0.03 per
Priority Customer contract executed in Tier 1 of the PRCP [sic] in a
given month to Members that execute a certain number of contracts in
that month for the account(s) of a Professional and which qualify for
the Professional Rebate Program described in Section (1)(a)(iv) of the
Fee Schedule.
---------------------------------------------------------------------------
\7\ A ``Professional'' is a (i) Public Customer that is not a
Priority Customer; (ii) Non-MIAX Market Maker; (iii) Non-Member
Broker-Dealer; or (iv) Firm. See Fee Schedule, Section (1)(a)(iv).
---------------------------------------------------------------------------
In order to qualify for the proposed monthly PRCP [sic] Tier 1
rebate, a Member must execute an increased percentage of contracts on
MIAX in that same month for the account(s) of a Professional (not
including mini-options, Non-Priority Customer-to-Non-Priority Customer
Orders, QCC Orders, PRIME Orders, PRIME AOC Responses, PRIME Contra-
side Orders, 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 (collectively,
for purposes of the Professional Rebate Program, ``Excluded
Contracts'')) by greater than 0.065% of the number of contracts
executed by the Member for the account(s) of a Professional during the
fourth quarter of 2015 as a percentage of the total volume reported by
the Options Clearing Corporation (``OCC'') in MIAX classes during the
fourth quarter of 2015 (the ``Baseline Percentage''). For the purpose
of establishing a Baseline Percentage for any Member for whom no fourth
quarter 2015 Baseline Percentage exists, MIAX will use 0.03% as that
Member's Baseline Percentage, as described below.
A Member that qualifies to receive the proposed PRCP [sic] Tier 1
rebate will be known as a ``Qualifying Member,'' which is a Member or
its affiliates of at least 75% common ownership between the firms as
reflected on each firm's Form BD, Schedule A, that qualifies for the
Professional Rebate Program and achieves a volume increase in excess of
0.065% over the applicable Baseline Percentage for Professional orders
transmitted by that Member which are executed electronically on the
Exchange in all multiply-listed option classes for the account(s) of a
Professional and which qualify for the Professional Rebate Program
during a particular month, relative to the appropriate Baseline
Percentage (described below). The Exchange will aggregate the contracts
resulting from orders of a Qualifying Member transmitted and executed
electronically on the Exchange from affiliated Members of the
Qualifying Member, provided there is at least 75% common ownership
between the firms as reflected on each firm's Form BD, Schedule A.
The Exchange also proposes to establish a new ``Baseline
Percentage'' for Members who did not execute contracts for the
account(s) of a Professional during the fourth quarter of 2015 in order
to permit such Members to benefit from all of the rebates offered under
the Professional Rebate Program. Currently, the Professional Rebate
Program affords a per contract credit based upon the increase in the
total volume submitted by a Member and executed for the account(s) of a
Professional on MIAX (not including Excluded Contracts) during a
particular month as a percentage of the total volume reported by (OCC)
in MIAX classes during the same month (the ``Current Percentage''),
less the total volume submitted by that Member and executed for the
account(s) of a Professional on MIAX (not including Excluded Contracts)
during the fourth quarter of 2015 as a percentage of the total volume
reported by OCC in MIAX classes during the fourth quarter of 2015 (the
``Baseline Percentage''). The Exchange proposes to define a Baseline
Percentage for Members who did not execute contracts for the account(s)
of a Professional during the fourth quarter of 2015. For such Members
(with respect to all available rebates in the Professional Rebate
Program), the ``Baseline Percentage'' will be .03%.
The purpose of the proposed rule change is to encourage Members to
direct an increased level of Professional contract volume to the
Exchange by
[[Page 29605]]
offering to provide such Members with an additional, concurrent
incentive to direct Priority Customer order flow to the Exchange. The
Exchange believes that increased Professional and Priority Customer
volume will attract more liquidity to the Exchange, which benefits all
market participants. Increased Professional and Priority 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 Exchange is also proposing a minor technical amendment to
Section (1)(a)(iii) of the Fee Schedule to refer specifically to ``The
Priority Customer rebate'' payment instead of stating ``This'' payment
in the third paragraph under the PRCP [sic] table. This is intended for
clarity and ease of reference.
The credits paid out as part of the PCRP will be drawn from the
general revenues of the Exchange.\8\ The Exchange calculates volume
thresholds on a monthly basis. The proposed rule changes are to take
effect May 1, 2016.
---------------------------------------------------------------------------
\8\ Despite providing credits under the PCRP and the
Professional Rebate 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 each of the PCRP and the Professional Rebate Program is in
effect.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \9\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \10\ in particular, in
that it is an equitable allocation of reasonable fees and other charges
among Exchange members, and issuers and other persons using its
facilities.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposal to offer the rebate under
the PCRP to Qualifying Members is fair, equitable and not unreasonably
discriminatory, because it applies equally to all Qualifying Members.
The proposed per contract rebate for Priority Customer orders is
reasonably designed because it will encourage providers of Professional
order flow to send increased Professional order flow to the Exchange in
order to receive the per contract credit for achieving Tier 1 volume in
contracts executed for Priority Customers. The Exchange thus believes
that the proposed new rebate should improve market quality for all
market participants by providing more execution opportunities. All
Qualifying Members will receive the same rebate for Priority Customer
contracts executed in PRCP [sic] Tier 1.
The Exchange believes that the proposal to amend the definition of
Baseline Percentage is fair, equitable and not unreasonably
discriminatory. The Exchange believes that the proposed definition of
Baseline Percentage should provide an equal opportunity, and a
beginning measuring percentage, for all Members that did not have a
Baseline Percentage for the fourth quarter of 2015 to submit
Professional order flow and thus become Qualifying Members for the Tier
1 Priority Customer contract rebate. This should in turn increase order
flow, trading opportunities and improve the overall depth, liquidity
and quality of the market for all MIAX participants.
Additionally, the proposed amended definition of Baseline
Percentage is equitable and not unfairly discriminatory because it will
benefit Members who did not execute orders for the account(s) of a
Professional in the fourth quarter of 2015 and such Members will now be
on an equal playing field with respect to the calculation of their
potential increase in percentage of Professional contracts executed for
purposes of becoming a Qualifying Member.
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 changes would increase both intermarket and
intramarket competition by encouraging Members to direct their
Professional and Priority Customer orders to the Exchange, which should
enhance the quality of quoting and increase the volume of contracts
traded on MIAX. The Exchange believes that the changes to each of the
PCRP and the Professional 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, 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 adds new rebates and
thus encourages market participants to direct both their Professional
and Priority Customer order flow to the Exchange. Given the robust
competition for volume among options markets, many of which offer the
same products, enhancing the existing volume-based PCRP and
Professional Rebate Programs 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
amendments to the PCRP and Professional 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,\11\ and Rule 19b-4(f)(2) \12\ 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
[[Page 29606]]
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-2016-09 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-2016-09. 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-2016-09, and should be
submitted on or before June 2, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-11152 Filed 5-11-16; 8:45 am]
BILLING CODE 8011-01-P
