Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Exchange Rule 519C, Mass Cancellation of Trading Interest, 38751-38753 [2016-13966]
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Federal Register / Vol. 81, No. 114 / Tuesday, June 14, 2016 / Notices
primary listing market that previously
listed that security.45 For a new listing
that does not have any last-sale eligible
trades on the Exchange on its first
trading day, the Official Closing Price
would be based on a derived last sale
associated with the price of such
security before it begins trading.46 Each
Exchange states that its Amendment No.
1 is intended to provide increased
transparency in the Exchange’s rules as
to how the Exchange would determine
the Official Closing Price for such new
or transferred listings.47
Because each Amendment No. 1
responded to the comments received on
the original proposal, and provided
additional transparency to the operation
of the closing contingency procedures
for transferred and newly listed
securities, the Commission finds good
cause for approving the proposed rule
changes, as modified by the respective
Amendments No. 1, on an accelerated
basis, pursuant to section 19(b)(2) of the
Act.48
VII. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act,49 that the
proposed rule changes (SR–NYSE–
2016–18 and SR–NYSEMKT–2016–31),
as modified by their respective
Amendments No. 1, be, and hereby are,
approved on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.50
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–13964 Filed 6–13–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
srobinson on DSK5SPTVN1PROD with NOTICES
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, June 16, 2016 at 2:00 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
45 See
Amendments No. 1.
46 See id.
47 See id.
48 15 U.S.C. 78s(b)(2).
49 15 U.S.C. 78s(b)(2).
50 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014
19:36 Jun 13, 2016
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matter at the Closed Meeting.
Chair White, as duty officer, voted to
consider the items listed for the Closed
Meeting in closed session.
The subject matter of the Closed
Meeting will be:
Institution and Settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Adjudicatory matters;
Opinion; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact Brent J. Fields from the Office of
the Secretary at (202) 551–5400.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
Brent J. Fields,
Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2016–14080 Filed 6–10–16; 11:15 am]
BILLING CODE 8011–01–P
The Exchange is filing a proposal to
adopt Exchange Rule 519C, Mass
Cancellation of Trading Interest.
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.
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78023; File No. SR–MIAX–
2016–14]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Adopt Exchange Rule
519C, Mass Cancellation of Trading
Interest
June 8, 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 May 27, 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
2 17
Jkt 238001
38751
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00096
Fmt 4703
Sfmt 4703
The Exchange proposes to adopt new
Rule 519C, Mass Cancellation of
Trading Interest, to codify the
Exchange’s current practice of
cancelling quotes and/or orders upon
the receipt of a verbal or an electronic
request from a Member.3
Proposed Rule 519C would codify the
current process by which Members may
call or send an electronic message to the
Exchange’s designated staff and to direct
them to cancel all quotations and/or
orders they have in the System.4 All of
the directing Member’s quotations then
in the System will be cancelled; a
Member may submit a request to cancel
all or any subset of its orders in the
System.
Currently, Exchange Members may
cancel all quotations and/or open orders
in the System electronically or, in the
alternative, may request Exchange staff
to do so verbally by phone or via
electronic message. The proposed rule
would codify the current process of
3 The term ‘‘Member’’ means an individual or
organization approved to exercise trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Act. See Exchange
Rule 100.
4 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
E:\FR\FM\14JNN1.SGM
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38752
Federal Register / Vol. 81, No. 114 / Tuesday, June 14, 2016 / Notices
requesting cancellations verbally or via
electronic message. Specifically,
proposed Rule 519C states that a
Member may cancel all of its quotations
and/or orders in the System by
requesting the Exchange staff to effect
such cancellations. The form of such a
request includes but is not limited to
email or a phone call from authorized
individuals. The cancellation of quotes
and orders as described herein does not
disconnect Members from the
Exchange’s System.
The purpose of the proposed rule
change is to codify this current practice
in the Exchange’s rules. The Exchange
has a number of other rules covering
related risk management processes
available to Members 5 and it believes
that this clarification will enhance
transparency in the Exchange’s rules.
srobinson on DSK5SPTVN1PROD with NOTICES
2. Statutory Basis
MIAX believes that its proposed rule
change is consistent with Section 6(b) of
the Act 6 in general, and furthers the
objectives of Section 6(b)(5) of the Act 7
in particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The proposed rule codifies existing
risk protections that are currently
available to Members and provides that
the Exchange may take action on their
behalf. The proposed rule protects
investors and the public interest by
clarifying, in the Exchange’s rules, the
risk protection tools and other
mechanisms and processes available on
the Exchange. The Exchange notes that
similar rules are currently operative on
other exchanges.8
The Exchange notes that the proposed
rule change will not relieve Exchange
Market Makers of their continuous
quoting obligations under Exchange
Rule 604 and under Reg NMS Rule 602.9
Specifically, any interest that is
executable against a Member’s quotes
and orders that is received by the
Exchange prior to the time the
5 See, e.g., Exchange Rules 519, MIAX Order
Monitor, and 612, Aggregate Risk Manager (ARM).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
8 See BATS BZX Exchange, Inc. (‘‘BZX’’) Rule
22.11, NASDAQ Options Market (‘‘NOM’’) Rules,
Chapter VII, Section 11, and NASDAQ BX, Inc.
(‘‘BX’’) Rules, Chapter VII, Section 11.
9 17 CFR 242.602.
VerDate Sep<11>2014
19:36 Jun 13, 2016
Jkt 238001
cancellation is received by the System
will automatically execute at the price
up to the Member’s size. Market Makers
that request a mass cancellation of their
trading interest will not be relieved of
the obligation to provide continuous
two-sided quotes on a daily basis, nor
will it prohibit the Exchange from
taking disciplinary action against a
Market Maker for failing to meet their
continuous quoting obligation each
trading day. Cancel messages entered
into the System by Exchange staff are
accepted upon receipt by the System,
and will be processed in that order such
that cancel messages and other interest
already accepted into the System will be
processed prior to the receipt by the
System of the mass cancel message.
The codification of the existing
process of requesting the removal of
quotes and orders is intended to remove
impediments to and perfect the
mechanisms of a free and open market
by adding precision and ease of
reference to the Exchange’s rules, thus
promoting transparency and clarity for
Exchange Members.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
The Exchange believes the proposed
rule change will not impose any burden
on intra-market competition because
every Member of the Exchange has the
opportunity to benefit from the
procedure described in the proposed
rule. The proposed rule is meant to
provide all Members with the same
protection in the event the Member is
experiencing an issue that would
require the Member to withdraw its
quotes and/or orders from the market in
order to ensure a fair and orderly market
on the Exchange.
The Exchange believes the proposed
rule change will not impose any burden
on inter-market competition because the
process of cancellation of quotations
and orders on the Exchange is
substantially similar to processes
currently operative on other
exchanges.10
For all the reasons stated, the
Exchange does not believe that the
proposed rule change will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act.
10 See
PO 00000
supra note 8.
Frm 00097
Fmt 4703
Sfmt 4703
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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 11 and Rule 19b–4(f)(6) 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
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 rulecomments@sec.gov. Please include File
Number SR–MIAX–2016–14 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–2016–14. This file
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
12 17
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Federal Register / Vol. 81, No. 114 / Tuesday, June 14, 2016 / Notices
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–
2016–14, and should be submitted on or
before July 5, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–13966 Filed 6–13–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78012; File No. SR–C2–
2016–007]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to the Penny Pilot
Program
srobinson on DSK5SPTVN1PROD with NOTICES
June 8, 2016.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 1,
2016, C2 Options Exchange,
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to section 19(b)(3)(A)(iii) of the
Act 3 and Rule 19b–4(f)(6) thereunder.4
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
operation of Penny Pilot Program
through December 31, 2016. The text of
the proposed rule change is provided
below. (additions are in italics;
deletions are [bracketed])
*
*
*
*
*
C2 Options Exchange, Incorporated
Rules
*
*
*
*
*
Rule 6.4. Minimum Increments for Bids
and Offers
The Board of Directors may establish
minimum quoting increments for
options traded on the Exchange. When
the Board of Directors determines to
change the minimum increments, the
Exchange will designate such change as
a stated policy, practice, or
interpretation with respect to the
administration of this Rule within the
meaning of subparagraph (3)(A) of
subsection 19(b) of the Exchange Act
and will file a rule change for
effectiveness upon filing with the
Commission. Until such time as the
Board of Directors makes a change to the
minimum increments, the following
minimum increments shall apply to
options traded on the Exchange:
(1) No change.
(2) No change.
(3) The decimal increments for bids
and offers for all series of the option
classes participating in the Penny Pilot
Program are: $0.01 for all option series
quoted below $3 (including LEAPS),
and $0.05 for all option series $3 and
above (including LEAPS). For QQQQs,
IWM, and SPY, the minimum increment
is $0.01 for all option series. The
Exchange may replace any option class
participating in the Penny Pilot Program
that has been delisted with the next
most actively-traded, multiply-listed
option class, based on national average
daily volume in the preceding six
13 17
1 15
VerDate Sep<11>2014
19:36 Jun 13, 2016
3 15
4 17
Jkt 238001
PO 00000
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
Frm 00098
Fmt 4703
Sfmt 4703
38753
calendar months, that is not yet
included in the Pilot Program. Any
replacement class would be added on
the second trading day following [July 1,
2015 and January 1, 2016]July 1, 2016.
The Penny Pilot shall expire on [June
30, 2016]December 31, 2016. Also, for
so long as SPDR options (SPY) and
options on Diamonds (DIA) participate
in the Penny Pilot Program, the
minimum increments for Mini-SPX
Index Options (XSP) and options on the
Dow Jones Industrial Average (DJX),
respectively, may be $0.01 for all option
series quoting less than $3 (including
LEAPS), and $0.05 for all option series
quoting at $3 or higher (including
LEAPS).
(4) No change.
*
*
*
*
*
The text of the proposed rule change
is also available on the Exchange’s Web
site (https://www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
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 Penny Pilot Program (the ‘‘Pilot
Program’’) is scheduled to expire on
June 30, 2016. C2 proposes to extend the
Pilot Program until December 31, 2016.
C2 believes that extending the Pilot
Program will allow for further analysis
of the Pilot Program and a
determination of how the Pilot Program
should be structured in the future.
During this extension of the Pilot
Program, C2 proposes that it may
replace any option class that is currently
included in the Pilot Program and that
has been delisted with the next most
actively traded, multiply listed option
class that is not yet participating in the
Pilot Program (‘‘replacement class’’).
Any replacement class would be
E:\FR\FM\14JNN1.SGM
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]]>Agencies
[Federal Register Volume 81, Number 114 (Tuesday, June 14, 2016)]
[Notices]
[Pages 38751-38753]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13966]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78023; File No. SR-MIAX-2016-14]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Adopt Exchange Rule 519C, Mass Cancellation of
Trading Interest
June 8, 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 May 27, 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 the
Substance of the Proposed Rule Change
The Exchange is filing a proposal to adopt Exchange Rule 519C, Mass
Cancellation of Trading Interest.
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 adopt new Rule 519C, Mass Cancellation of
Trading Interest, to codify the Exchange's current practice of
cancelling quotes and/or orders upon the receipt of a verbal or an
electronic request from a Member.\3\
---------------------------------------------------------------------------
\3\ The term ``Member'' means an individual or organization
approved to exercise trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Act. See Exchange
Rule 100.
---------------------------------------------------------------------------
Proposed Rule 519C would codify the current process by which
Members may call or send an electronic message to the Exchange's
designated staff and to direct them to cancel all quotations and/or
orders they have in the System.\4\ All of the directing Member's
quotations then in the System will be cancelled; a Member may submit a
request to cancel all or any subset of its orders in the System.
---------------------------------------------------------------------------
\4\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
---------------------------------------------------------------------------
Currently, Exchange Members may cancel all quotations and/or open
orders in the System electronically or, in the alternative, may request
Exchange staff to do so verbally by phone or via electronic message.
The proposed rule would codify the current process of
[[Page 38752]]
requesting cancellations verbally or via electronic message.
Specifically, proposed Rule 519C states that a Member may cancel all of
its quotations and/or orders in the System by requesting the Exchange
staff to effect such cancellations. The form of such a request includes
but is not limited to email or a phone call from authorized
individuals. The cancellation of quotes and orders as described herein
does not disconnect Members from the Exchange's System.
The purpose of the proposed rule change is to codify this current
practice in the Exchange's rules. The Exchange has a number of other
rules covering related risk management processes available to Members
\5\ and it believes that this clarification will enhance transparency
in the Exchange's rules.
---------------------------------------------------------------------------
\5\ See, e.g., Exchange Rules 519, MIAX Order Monitor, and 612,
Aggregate Risk Manager (ARM).
---------------------------------------------------------------------------
2. Statutory Basis
MIAX believes that its proposed rule change is consistent with
Section 6(b) of the Act \6\ in general, and furthers the objectives of
Section 6(b)(5) of the Act \7\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanisms of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The proposed rule codifies existing risk protections that are
currently available to Members and provides that the Exchange may take
action on their behalf. The proposed rule protects investors and the
public interest by clarifying, in the Exchange's rules, the risk
protection tools and other mechanisms and processes available on the
Exchange. The Exchange notes that similar rules are currently operative
on other exchanges.\8\
---------------------------------------------------------------------------
\8\ See BATS BZX Exchange, Inc. (``BZX'') Rule 22.11, NASDAQ
Options Market (``NOM'') Rules, Chapter VII, Section 11, and NASDAQ
BX, Inc. (``BX'') Rules, Chapter VII, Section 11.
---------------------------------------------------------------------------
The Exchange notes that the proposed rule change will not relieve
Exchange Market Makers of their continuous quoting obligations under
Exchange Rule 604 and under Reg NMS Rule 602.\9\ Specifically, any
interest that is executable against a Member's quotes and orders that
is received by the Exchange prior to the time the cancellation is
received by the System will automatically execute at the price up to
the Member's size. Market Makers that request a mass cancellation of
their trading interest will not be relieved of the obligation to
provide continuous two-sided quotes on a daily basis, nor will it
prohibit the Exchange from taking disciplinary action against a Market
Maker for failing to meet their continuous quoting obligation each
trading day. Cancel messages entered into the System by Exchange staff
are accepted upon receipt by the System, and will be processed in that
order such that cancel messages and other interest already accepted
into the System will be processed prior to the receipt by the System of
the mass cancel message.
---------------------------------------------------------------------------
\9\ 17 CFR 242.602.
---------------------------------------------------------------------------
The codification of the existing process of requesting the removal
of quotes and orders is intended to remove impediments to and perfect
the mechanisms of a free and open market by adding precision and ease
of reference to the Exchange's rules, thus promoting transparency and
clarity for Exchange Members.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
The Exchange believes the proposed rule change will not impose any
burden on intra-market competition because every Member of the Exchange
has the opportunity to benefit from the procedure described in the
proposed rule. The proposed rule is meant to provide all Members with
the same protection in the event the Member is experiencing an issue
that would require the Member to withdraw its quotes and/or orders from
the market in order to ensure a fair and orderly market on the
Exchange.
The Exchange believes the proposed rule change will not impose any
burden on inter-market competition because the process of cancellation
of quotations and orders on the Exchange is substantially similar to
processes currently operative on other exchanges.\10\
---------------------------------------------------------------------------
\10\ See supra note 8.
---------------------------------------------------------------------------
For all the reasons stated, the Exchange does not believe that the
proposed rule change will impose any burden on competition not
necessary or appropriate in furtherance of the purposes of the Act.
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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) \12\
thereunder.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-MIAX-2016-14 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-2016-14. This file
[[Page 38753]]
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-2016-14, and should be
submitted on or before July 5, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-13966 Filed 6-13-16; 8:45 am]
BILLING CODE 8011-01-P
