Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Fee Schedule To Modify the Exchange's Connectivity Fees, 67016-67019 [2016-23497]

Download as PDF 67016 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices requirements, which depend on the type of annuity payable. The requirements for obtaining the annuities are prescribed in 20 CFR 216 and 220. To collect the information needed to help determine an applicant’s entitlement to, and the amount of, an employee retirement annuity the RRB uses Forms AA–1, Application for Employee Annuity; AA–1d, Application for Determination of Employee Disability; G–204, Verification of Workers Compensation/Public Disability Benefit Information, and electronic Forms AA–1cert, Application Summary and Certification, and AA– 1sum, Application Summary. The AA–1 application process obtains information from an applicant about their marital history, work history, military service, benefits from other governmental agencies, railroad pensions and Medicare entitlement for either an age and service or disability annuity. An RRB representative interviews the applicant either at a field office, an itinerant point, or by telephone. During the interview, the RRB representative enters the information obtained into an on-line information system. Upon completion of the interview, the on-line information system generates Form AA–1cert, Application Summary and Certification, or Form AA–1sum, Application Summary, a summary of the information that was provided for the applicant to review and approve. Form AA–1cert documents approval using the traditional pen and ink ‘‘wet’’ signature, and Form AA–1sum documents approval using the alternative signature method called Attestation. When the RRB representative is unable to contact the applicant in person or by telephone, for example, the applicant lives in another country, a manual version of Form AA–1 is used. Form AA–1d, Application for Determination of Employee’s Disability, is completed by an employee who is filing for a disability annuity under the RRA, or a disability freeze under the Social Security Act for early Medicare based on a disability. Form G–204, Verification of Worker’s Compensation/ Public Disability Benefit Information, is used to obtain and verify information concerning a worker’s compensation or a public disability benefit that is or will be paid by a public agency to a disabled railroad employee. One response is requested of each respondent. Completion of the forms is required to obtain/retain a benefit. Previous Requests for Comments: The RRB has already published the initial 60-day notice (81 FR 47183 on July 20, 2016) required by 44 U.S.C. 3506(c)(2). That request elicited no comments. Title: Application for Employee Annuity Under the Railroad Retirement Act. OMB Control Number: 3220–0002. Form(s) submitted: AA–1, AA–1cert, AA–1d, AA–1sum and G–204. Type of request: Revision of a currently approved collection. Affected public: Individuals or Households. Abstract: The Railroad Retirement Act provides for payment of age, disability and supplemental annuities to qualified employees. The application and related forms obtain information about the applicant’s family work history, military service, disability benefits from other government agencies and public or private pensions. The information is used to determine entitlement to and the amount of the annuity applied for. Changes proposed: The RRB proposes the following changes to Forms AA–1 and AA–1d: • Deletion of Item 35a-d from Form AA–1, regarding the relinquishment of seniority rights; • the relocation of current Items 52– 53 from Form AA–1d to proposed Items 48a-b on Form AA–1, regarding whether an applicant had filed or expected to file a lawsuit or claim against a person or company for a personal injury that resulted in the payment of sickness benefits by the RRB, as the potential for uncollected sickness benefits can apply to both a disability applicant as well as an applicant qualified for an age and service annuity. • Comparable revisions to electronic equivalent forms (AA–1cert and AA– 1sum) are also being proposed. No other changes are proposed. The burden estimate for the ICR is as follows: Annual responses Form No. Time (minutes) Burden (hours) 100 4,620 8,000 2,600 5 20 62 30 29 60 85 15 103 2,310 3,867 2,600 7 5 Total ...................................................................................................................................... mstockstill on DSK3G9T082PROD with NOTICES AA–1 (without assistance) ........................................................................................................... AA–1cert (with assistance) .......................................................................................................... AA–1sum (with assistance) ......................................................................................................... AA–1d (with assistance) .............................................................................................................. AA–1d (without assistance) ......................................................................................................... G–204 .......................................................................................................................................... 15,345 ........................ 8,892 Additional Information or Comments: Copies of the forms and supporting documents can be obtained from Dana Hickman at (312) 751–4981 or Dana.Hickman@RRB.GOV. Comments regarding the information collection should be addressed to Charles Mierzwa, Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois, 60611–1275 or Charles.Mierzwa@RRB.GOV and to the OMB Desk Officer for the RRB, Fax: 202–395–6974, Email address: OIRA_ Submission@omb.eop.gov. SECURITIES AND EXCHANGE COMMISSION Charles Mierzwa, Associate Chief Information Officer for Policy and Compliance. [Release No. 34–78919; File No. SR–MIAX– 2016–32] [FR Doc. 2016–23526 Filed 9–28–16; 8:45 am] BILLING CODE 7905–01–P Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Fee Schedule To Modify the Exchange’s Connectivity Fees September 23, 2016. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 E:\FR\FM\29SEN1.SGM 29SEN1 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on September 12, 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’’) to modify the Exchange’s connectivity fees. The text of the proposed rule change is available on the Exchange’s Web site at http://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 mstockstill on DSK3G9T082PROD with NOTICES 1. Purpose The Exchange proposes to amend its Fee Schedule regarding connectivity to the Exchange. Specifically, the Exchange proposes to amend Section 4 of the Fee Schedule, Testing and Certification Fees, to state that Member and Non-Member Network Connectivity Testing and Certification Fees will not be assessed for testing and certification of connectivity to the Exchange’s disaster recovery systems (for purposes of the Fee Schedule, the ‘‘Disaster Recovery Facility’’).3 The Exchange also 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Exchange Rule 321. See also, Securities Exchange Act Release No. 76303 (October 29, 2015), 2 17 VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 proposes to amend Section 5 of the Fee Schedule, System Connectivity Fees, to establish a new connectivity fee for 1 Gigabit (‘‘Gb’’) and 10 Gb fiber connections to the Exchange’s Disaster Recovery Facility. Testing and Certification Fees The Exchange currently offers various bandwidth alternatives for connectivity to the Exchange’s System,4 including a 10 Gb fiber connection, a 1 Gb fiber connection and a 10 Gb ultra-low latency (‘‘ULL’’) fiber connection. The Exchange currently assesses a Member Network Connectivity Testing and Certification Fee of $1,000 for each 1 Gb connection, and $4,000 for each 10 Gb or 10 Gb ULL connection.5 NonMembers are assessed a Non-Member Network Connectivity Testing and Certification Fee of $1,200 for each 1 Gb connection, and $4,200 for each 10 Gb or 10 Gb ULL connection.6 The Exchange proposes to amend Sections 4(c) and 4(d) of the Fee Schedule to state that these Member and NonMember Network Connectivity Testing and Certification Fees will not be assessed for testing and certification of connectivity to the Exchange’s Disaster Recovery Facility. The purpose of the Exchange’s proposal not to charge Member and Non-Member network connectivity testing and certification fees for testing required in order to connect to the Disaster Recovery Facility is to eliminate any potential impediment to Members and Non-Members in testing and certifying for connectivity to the Disaster Recovery Facility, and to encourage Members and Non-Members to set up the connections to such Facility for disaster recovery purposes. System Connectivity Fees The Exchange currently assesses Monthly Member Network Connectivity fees for the applicable connectivity in any month when a Member or NonMember is credentialed to use any of the MIAX APIs or Market Data feeds in the production environment. The Exchange proposes to amend the table in Section 5 of the Fee Schedule to explicitly reflect the monthly Member and Non-Member Network connectivity fees as they apply to the Exchange’s primary and secondary facilities, and to the Exchange’s Disaster Recovery Facility. Under the proposal, fees for 80 FR 68373 (November 4, 2015) (SR–MIAX–2015– 61). 4 The term ‘‘System’’ means the automated trading system used by the Exchange for the trading of securities. See Exchange Rule 100. 5 See Fee Schedule Section 4(c). 6 See Fee Schedule Section 4(d). PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 67017 connectivity to the Exchange’s primary and secondary (i.e., backup) facilities will remain unchanged. The Exchange is proposing to amend the table in Section 5 to reflect the current per connection fees for connectivity with the primary and secondary facilities by labelling the heading of the columns reflecting such fees as ‘‘Primary/ Secondary Facility’’ for a 1 Gb, 10 Gb and 10 Gb ULL connection, respectively. The Exchange is proposing to add new columns to the table in Section 5 with the heading ‘‘Disaster Recovery Facility’’ to set forth the monthly per connection fees for a 1 Gb and 10 Gb connection to the Disaster Recovery Facility. Specifically, the Exchange proposes a monthly per connection Network Connectivity Fee of $500 for each 1 Gb connection to the Disaster Recovery Facility and a monthly per connection Network Connectivity Fee of $2,500 for each 10 Gb connection to the Disaster Recovery Facility for both Members and Non-Members. The Exchange does not propose to offer a 10 Gb ULL connection to the Disaster Recovery Facility at this time; the 10 Gb ULL fees will therefore remain unchanged. The Exchange proposes to amend the tables in Sections 5(a) and (b) to reflect this. The Exchange believes that the proposed pricing for connectivity to the Disaster Recovery Facility is reflective of the value it will provide to users of the Exchange. The Exchange further believes that the assessment of connectivity fees to the Disaster Recovery Facility will assist the Exchange in recouping some of the costs to the Exchange associated with developing and maintaining this facility for disaster recovery use. Not charging users a testing and certification fee for testing required in order to connect to the Disaster Recovery Facility should encourage Members and Non-Members to connect to such facility. The Exchange notes that other exchanges charge fees for connection to their Disaster Recovery facilities by their market participants.7 The Exchange proposes to implement the proposed changes to the Fee Schedule effective as of September 16, 2016. 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is 7 See Chicago Board Options Exchange, Incorporated (‘‘CBOE’’) Fees Schedule, p. 13; see also NASDAQ PHLX LLC (‘‘Phlx’’) Pricing Schedule, Section XI [sic]. E:\FR\FM\29SEN1.SGM 29SEN1 mstockstill on DSK3G9T082PROD with NOTICES 67018 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / Notices consistent with Section 6(b) of the Act 8 in general, and furthers the objectives of Section 6(b)(4) of the Act 9 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which the Exchange operates or controls. The Exchange also believes the proposal furthers the objectives of Section 6(b)(5) of the Act 10 in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest and is not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange believes that its proposal is consistent with Section 6(b)(4) of the Act because the fees assessed for the connectivity to the Disaster Recovery Facility will allow the Exchange to cover certain of the costs associated with maintaining these Facility for disaster recovery use by users of the Exchange. The Exchange believes that the proposal to establish fees for the Disaster Recovery Facility connectivity is fair, equitable and not unreasonably discriminatory because the fees are assessed equally among all users according to the bandwidth that such user determines is the best suited for its purposes, i.e., either 1 Gb or 10 Gb, and how many connections such Users require. The Exchange believes that the Exchange’s decision not to charge Member and Non-Member network connectivity testing and certification fees for testing required in order to connect to the Disaster Recovery Facility is consistent with Section 6(b)(4) of the Act because it will encourage Members and Non-Members to set up the connections to such Facility for disaster recovery purposes. Therefore, the Exchange believes that it is reasonable not to charge Members and Non-Members for testing and certification in relation to connecting to the Disaster Recovery Facility. The Exchange also believes the proposed Disaster Recovery Facility connectivity fees are equitably allocated in that all Members and Non-Members will be charged the same amount to cover the connection costs depending on the speed of the connection as well as the number of connections selected by such user. All Members and NonMembers may subscribe to this 8 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 10 15 U.S.C. 78f(b)(5). connectivity to the Disaster Recovery Facility, and the Exchange is not eliminating any existing connectivity. The Exchange also believes that its proposal is consistent with the objectives of Section 6(b)(5) of the Act 11 because the Disaster Recovery Facility connectivity will be beneficial to all MIAX participants. The Exchange anticipates that providing the opportunity to connect to the Disaster Recovery Facility to all users of the Exchange will further enhance the Exchange’s support of risk management in the form of disaster recovery on behalf of its Member and Non-Member users. The Exchange also believes that providing connectivity testing and certification at no cost for the Disaster Recovery Facility is consistent with Section 6(b)(5) of the Act because it is being offered to all MIAX participants at no cost. There is no differentiation among MIAX participants with regard to the testing and certification required to receive the disaster recovery services through the Disaster Recovery Facility. 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. On the contrary, the Exchange believes that the proposed changes should increase both intermarket and intramarket competition. Specifically, the Exchange believes that the changes will promote competition by offering MIAX participants more flexibility in their choice of disaster recovery services, which will in turn enhance their trading operations and ultimately bring greater efficiency to trading in the marketplace. As to inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges. The Exchange believes that the proposed changes reflect this competitive environment and may result in enhanced services to a market participant. Given the robust competition among options markets for the services that they each offer to market participants, expanding and thereby enhancing the services available on MIAX is consistent with the goals of the Act. 9 15 VerDate Sep<11>2014 18:51 Sep 28, 2016 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,12 and Rule 19b–4(f)(2) 13 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– MIAX–2016–32 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–2016–32. 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 (http://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 12 15 11 15 Jkt 238001 PO 00000 U.S.C. 78f(b)(5). Frm 00100 Fmt 4703 13 17 Sfmt 4703 E:\FR\FM\29SEN1.SGM U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 29SEN1 Federal Register / Vol. 81, No. 189 / Thursday, September 29, 2016 / 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– 2016–32 and should be submitted on or before October 20, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Brent J. Fields, Secretary. [FR Doc. 2016–23497 Filed 9–28–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78912; File No. SR– NASDAQ–2016–130] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Nasdaq’s Fees at Rule 7014(f) September 23, 2016. mstockstill on DSK3G9T082PROD with NOTICES Pursuant to 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 September 16, 2016, The NASDAQ Stock Market LLC (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the 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 proposes to amend the Exchange’s fees at Rule 7014(f) to: (i) 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 18:51 Sep 28, 2016 Jkt 238001 Change the criteria required to receive the rebates provided by the Lead Market Maker (‘‘LMM’’) Program; (ii) change the rebates offered by the LMM Program; and (iii) rename the program the Designated Liquidity Provider (‘‘DLP’’) Program, as described further below. While these amendments are effective upon filing, the Exchange has designated the proposed amendments to be operative on October 3, 2016. The text of the proposed rule change is available on the Exchange’s Web site at http://nasdaq.cchwallstreet.com, at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the 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 purpose of the proposed rule change is to: (i) Change the criteria required to receive the rebates provided by the LMM Program; (ii) change the rebates offered by the LMM Program; and (iii) rename the program the Designated Liquidity Provider Program. The LMM Program is designed to provide incentives to market makers to make markets in certain exchangetraded products (‘‘ETPs’’). To achieve this goal, Nasdaq provides credits to a designated LMM for execution of a Qualified Security. Under Rule 7014(f)(1), a Qualified Security is defined as an exchange-traded fund or index-linked security listed on Nasdaq pursuant to Nasdaq Rules 5705 (Exchange Traded Funds: Portfolio Depository Receipts and Index Fund Shares), 5710 (Securities Linked to the Performance of Indexes and Commodities, Including Currencies), 5720 (Trust Issued Receipts), 5735 (Managed Fund Shares), or 5745 (NextShares), and it must have at least one LMM. PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 67019 An LMM is a registered Nasdaq market maker for a Qualified Security that has committed to maintain minimum performance standards. An LMM is selected by Nasdaq based on several factors including, but not limited to, experience with making markets in exchange-traded funds and index-linked securities, adequacy of capital, willingness to promote Nasdaq as a marketplace, issuer preference, operational capacity, support personnel, and history of adherence to Nasdaq rules and securities laws. Nasdaq may limit the number of LMMs in a security, or modify a previously established limit, upon prior written notice to members. Rule 7014(f)(4) sets forth the criteria required, and the rebates and reduced fees provided, by the LMM Program. Currently, there are three tiers based on the amount of time an LMM is at the national best bid and offer (‘‘NBBO’’). Specifically, if an LMM is above 15% to 20% at the NBBO, it qualifies for: (i) A Displayed Liquidity Rebate (for executions $1 per share and above) of $0.0040 per executed share; (ii) a Displayed Liquidity Rebate (for executions less than $1 per share) of $0.0000 per executed share; and (iii) a maximum fee of $0.0005 per executed share for participation in the Halt, Opening, and Closing Crosses.3 If an LMM is above 20% to 50% at the NBBO, it qualifies for: (i) A Displayed Liquidity Rebate (for executions $1 per share and above) of $0.0043 per executed share; (ii) a Displayed Liquidity Rebate (for executions less than $1 per share) of $0.0000 per executed share; and (iii) a maximum fee of $0.0000 per executed share for participation in the Halt, Opening, and Closing Crosses. Last, if an LMM is above 50% at the NBBO, it qualifies for: (i) A Displayed Liquidity Rebate (for executions $1 per share and above) of $0.0046 per executed share; (ii) a Displayed Liquidity Rebate (for executions less than $1 per share) of $0.0000 per executed share; and (iii) a maximum fee of $0.0000 per executed share for participation in the Halt, Opening, and Closing Crosses. The Exchange is proposing to amend the rebates and criteria under the program to also take into consideration certain characteristics of the individual ETP. 3 A member participating in the Halt Cross would otherwise be assessed a fee of $0.0010 per share executed (see Rule 7018(f)). A member participating in the Opening Cross would otherwise be assessed a fee of no less than $0.0008 per share executed (see Rule 7018(e)). A member participating in the Closing Cross would otherwise be assessed a fee of no less than $0.0008 per share executed (see Rule 7018(d)). E:\FR\FM\29SEN1.SGM 29SEN1

Agencies

[Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)]
[Notices]
[Pages 67016-67019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23497]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78919; File No. SR-MIAX-2016-32]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Amend Its Fee Schedule To Modify the Exchange's 
Connectivity Fees

September 23, 2016.
    Pursuant to the provisions of Section 19(b)(1) of the Securities 
Exchange Act

[[Page 67017]]

of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby 
given that on September 12, 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'') to modify the Exchange's connectivity 
fees.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://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 regarding 
connectivity to the Exchange. Specifically, the Exchange proposes to 
amend Section 4 of the Fee Schedule, Testing and Certification Fees, to 
state that Member and Non-Member Network Connectivity Testing and 
Certification Fees will not be assessed for testing and certification 
of connectivity to the Exchange's disaster recovery systems (for 
purposes of the Fee Schedule, the ``Disaster Recovery Facility'').\3\ 
The Exchange also proposes to amend Section 5 of the Fee Schedule, 
System Connectivity Fees, to establish a new connectivity fee for 1 
Gigabit (``Gb'') and 10 Gb fiber connections to the Exchange's Disaster 
Recovery Facility.
---------------------------------------------------------------------------

    \3\ See Exchange Rule 321. See also, Securities Exchange Act 
Release No. 76303 (October 29, 2015), 80 FR 68373 (November 4, 2015) 
(SR-MIAX-2015-61).
---------------------------------------------------------------------------

Testing and Certification Fees
    The Exchange currently offers various bandwidth alternatives for 
connectivity to the Exchange's System,\4\ including a 10 Gb fiber 
connection, a 1 Gb fiber connection and a 10 Gb ultra-low latency 
(``ULL'') fiber connection. The Exchange currently assesses a Member 
Network Connectivity Testing and Certification Fee of $1,000 for each 1 
Gb connection, and $4,000 for each 10 Gb or 10 Gb ULL connection.\5\ 
Non-Members are assessed a Non-Member Network Connectivity Testing and 
Certification Fee of $1,200 for each 1 Gb connection, and $4,200 for 
each 10 Gb or 10 Gb ULL connection.\6\ The Exchange proposes to amend 
Sections 4(c) and 4(d) of the Fee Schedule to state that these Member 
and Non-Member Network Connectivity Testing and Certification Fees will 
not be assessed for testing and certification of connectivity to the 
Exchange's Disaster Recovery Facility.
---------------------------------------------------------------------------

    \4\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \5\ See Fee Schedule Section 4(c).
    \6\ See Fee Schedule Section 4(d).
---------------------------------------------------------------------------

    The purpose of the Exchange's proposal not to charge Member and 
Non-Member network connectivity testing and certification fees for 
testing required in order to connect to the Disaster Recovery Facility 
is to eliminate any potential impediment to Members and Non-Members in 
testing and certifying for connectivity to the Disaster Recovery 
Facility, and to encourage Members and Non-Members to set up the 
connections to such Facility for disaster recovery purposes.
System Connectivity Fees
    The Exchange currently assesses Monthly Member Network Connectivity 
fees for the applicable connectivity in any month when a Member or Non-
Member is credentialed to use any of the MIAX APIs or Market Data feeds 
in the production environment.
    The Exchange proposes to amend the table in Section 5 of the Fee 
Schedule to explicitly reflect the monthly Member and Non-Member 
Network connectivity fees as they apply to the Exchange's primary and 
secondary facilities, and to the Exchange's Disaster Recovery Facility. 
Under the proposal, fees for connectivity to the Exchange's primary and 
secondary (i.e., backup) facilities will remain unchanged. The Exchange 
is proposing to amend the table in Section 5 to reflect the current per 
connection fees for connectivity with the primary and secondary 
facilities by labelling the heading of the columns reflecting such fees 
as ``Primary/Secondary Facility'' for a 1 Gb, 10 Gb and 10 Gb ULL 
connection, respectively.
    The Exchange is proposing to add new columns to the table in 
Section 5 with the heading ``Disaster Recovery Facility'' to set forth 
the monthly per connection fees for a 1 Gb and 10 Gb connection to the 
Disaster Recovery Facility. Specifically, the Exchange proposes a 
monthly per connection Network Connectivity Fee of $500 for each 1 Gb 
connection to the Disaster Recovery Facility and a monthly per 
connection Network Connectivity Fee of $2,500 for each 10 Gb connection 
to the Disaster Recovery Facility for both Members and Non-Members. The 
Exchange does not propose to offer a 10 Gb ULL connection to the 
Disaster Recovery Facility at this time; the 10 Gb ULL fees will 
therefore remain unchanged. The Exchange proposes to amend the tables 
in Sections 5(a) and (b) to reflect this.
    The Exchange believes that the proposed pricing for connectivity to 
the Disaster Recovery Facility is reflective of the value it will 
provide to users of the Exchange. The Exchange further believes that 
the assessment of connectivity fees to the Disaster Recovery Facility 
will assist the Exchange in recouping some of the costs to the Exchange 
associated with developing and maintaining this facility for disaster 
recovery use. Not charging users a testing and certification fee for 
testing required in order to connect to the Disaster Recovery Facility 
should encourage Members and Non-Members to connect to such facility. 
The Exchange notes that other exchanges charge fees for connection to 
their Disaster Recovery facilities by their market participants.\7\
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    \7\ See Chicago Board Options Exchange, Incorporated (``CBOE'') 
Fees Schedule, p. 13; see also NASDAQ PHLX LLC (``Phlx'') Pricing 
Schedule, Section XI [sic].
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    The Exchange proposes to implement the proposed changes to the Fee 
Schedule effective as of September 16, 2016.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is

[[Page 67018]]

consistent with Section 6(b) of the Act \8\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \9\ in particular, in that 
it provides for the equitable allocation of reasonable dues, fees and 
other charges among members and issuers and other persons using any 
facility or system which the Exchange operates or controls. The 
Exchange also believes the proposal furthers the objectives of Section 
6(b)(5) of the Act \10\ in that it is designed to promote just and 
equitable principles of trade, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general to protect investors and the public interest and is not 
designed to permit unfair discrimination between customers, issuers, 
brokers and dealers.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that its proposal is consistent with Section 
6(b)(4) of the Act because the fees assessed for the connectivity to 
the Disaster Recovery Facility will allow the Exchange to cover certain 
of the costs associated with maintaining these Facility for disaster 
recovery use by users of the Exchange. The Exchange believes that the 
proposal to establish fees for the Disaster Recovery Facility 
connectivity is fair, equitable and not unreasonably discriminatory 
because the fees are assessed equally among all users according to the 
bandwidth that such user determines is the best suited for its 
purposes, i.e., either 1 Gb or 10 Gb, and how many connections such 
Users require.
    The Exchange believes that the Exchange's decision not to charge 
Member and Non-Member network connectivity testing and certification 
fees for testing required in order to connect to the Disaster Recovery 
Facility is consistent with Section 6(b)(4) of the Act because it will 
encourage Members and Non-Members to set up the connections to such 
Facility for disaster recovery purposes. Therefore, the Exchange 
believes that it is reasonable not to charge Members and Non-Members 
for testing and certification in relation to connecting to the Disaster 
Recovery Facility.
    The Exchange also believes the proposed Disaster Recovery Facility 
connectivity fees are equitably allocated in that all Members and Non-
Members will be charged the same amount to cover the connection costs 
depending on the speed of the connection as well as the number of 
connections selected by such user. All Members and Non-Members may 
subscribe to this connectivity to the Disaster Recovery Facility, and 
the Exchange is not eliminating any existing connectivity.
    The Exchange also believes that its proposal is consistent with the 
objectives of Section 6(b)(5) of the Act \11\ because the Disaster 
Recovery Facility connectivity will be beneficial to all MIAX 
participants. The Exchange anticipates that providing the opportunity 
to connect to the Disaster Recovery Facility to all users of the 
Exchange will further enhance the Exchange's support of risk management 
in the form of disaster recovery on behalf of its Member and Non-Member 
users.
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    \11\ 15 U.S.C. 78f(b)(5).
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    The Exchange also believes that providing connectivity testing and 
certification at no cost for the Disaster Recovery Facility is 
consistent with Section 6(b)(5) of the Act because it is being offered 
to all MIAX participants at no cost. There is no differentiation among 
MIAX participants with regard to the testing and certification required 
to receive the disaster recovery services through the Disaster Recovery 
Facility.

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. On the contrary, 
the Exchange believes that the proposed changes should increase both 
intermarket and intramarket competition. Specifically, the Exchange 
believes that the changes will promote competition by offering MIAX 
participants more flexibility in their choice of disaster recovery 
services, which will in turn enhance their trading operations and 
ultimately bring greater efficiency to trading in the marketplace.
    As to inter-market competition, the Exchange notes that it operates 
in a highly competitive market in which market participants can readily 
favor competing venues if they deem fee levels at a particular venue to 
be excessive. In such an environment, the Exchange must continually 
adjust its fees to remain competitive with other exchanges. The 
Exchange believes that the proposed changes reflect this competitive 
environment and may result in enhanced services to a market 
participant. Given the robust competition among options markets for the 
services that they each offer to market participants, expanding and 
thereby enhancing the services available on MIAX is consistent with the 
goals 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act,\12\ and Rule 19b-4(f)(2) \13\ 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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    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-MIAX-2016-32 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-2016-32. 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 (http://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 67019]]

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-2016-32 and should be 
submitted on or before October 20, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-23497 Filed 9-28-16; 8:45 am]
 BILLING CODE 8011-01-P