Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 81854-81856 [2016-27741]

Download as PDF 81854 Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices mstockstill on DSK3G9T082PROD with NOTICES securities association.72 In particular, the Commission finds that the proposed rule change is consistent with Section 15A(b)(6) of the Exchange Act,73 which requires, among other things, that FINRA rules be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. The Commission notes that two commenters strongly supported the proposal, two commenters generally supported the proposal but had some recommended modifications, and one commenter did not appear to address the substance of the proposed rule change. With respect to payment of fees, the Commission recognizes the recommendations by two commenters that FINRA allow payment by personal check, either for parties for damages under $100,000 or for all parties.74 The Commission also recognizes, however, FINRA’s efforts to clarify and streamline the electronic payment process for its users, including, among other things, permitting Party Portal users to remit payment by phone if needed by providing the ABA routing number and bank account number found on the user’s personal check.75 The Commission further recognizes the ‘‘efficiencies afforded by electronic payment,’’ 76 including the ability for FINRA staff to immediately discern whether a filing is deficient for lack of payment. With respect to the protection of personal confidential information, the Commission recognizes the concerns expressed by two commenters that, under the proposal, FINRA’s exemption of the redaction requirements in current Rule 12300 for parties in Simplified Arbitrations—disputes where the amount at issue is $50,000 or less—will remain unchanged.77 The Commission recognizes the commenters’ concerns that exempting Simplified Arbitrations from FINRA’s redaction requirements, while requiring claimants to file documents electronically through the Party Portal, puts claimants in Simplified Arbitrations at greater risk of identity theft and/or other information security breaches.78 The Commission 72 In approving the proposed rule change, the Commission has also considered its impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 73 15 U.S.C. 78o–3(b)(6). 74 See IAC Letter at 2; PIABA Letter at 2. 75 See FINRA Letter at 2. 76 Id. 77 See PIABA Letter at 1; see also IAC Letter at 2–3. 78 See PIABA Letter at 1–2; see also IAC Letter at 2–3. VerDate Sep<11>2014 20:21 Nov 17, 2016 Jkt 241001 also recognizes, however, FINRA’s own concerns about identity theft, and its belief that ‘‘the Party Portal provides parties with enhanced security over other methods of document transmittal.’’ 79 The Commission further recognizes, as FINRA explained in its response to comments, that parties in Simplified Arbitrations (as well as pro se parties not using the Party Portal) are not restricted from redacting their documents should they choose to do so.80 Finally, the Commission recognizes that ‘‘FINRA has a dedicated Web page encouraging parties to take steps to protect their [personal confidential information] regardless of any exemptions in the Codes.’’ 81 With respect to the proposal’s requirement that parties file discovery correspondence through the Party Portal, the Commission recognizes one commenter’s concern that the ‘‘proposal is unclear as to how matters involving pro se parties who chose not to utilize the Portal should be handled.’’ 82 The Commission further recognizes FINRA’s clarification that, under the proposal, pro se parties would be required to file discovery correspondence by an alternate method as enumerated in Rule 12300(a)(2)(C).83 With respect to rules regarding service, the Commission recognizes that one commenter’s suggestion that FINRA issue a Notice to Members ‘‘setting forth a list of the specific filings which must be made outside of the Party Portal once the rule is implemented’’ in order to ‘‘allow practitioners an opportunity to review all the exceptions to filing via the Portal in one place.’’ 84 The Commission further recognizes FINRA’s agreement with this suggestion and its intent to ‘‘provide a list of such filings in a Regulatory Notice announcing approval of the proposed rule change as well as in guidance on the FINRA Web site.’’ 85 Finally, the Commission recognizes FINRA’s statement that of the 13,562 parties invited to use the portal as of May 11, 2016 (including customers, firms, and associated persons), ‘‘76 percent of customers, including pro se customers, have been using the Party Portal voluntarily and 82 percent of firms and associated persons, which includes firm representatives, have been using the Party Portal voluntarily (78 percent in total).’’ 86 79 See FINRA Letter at 3. 80 Id. Taking into consideration the comments and FINRA’s response, the Commission believes that the proposal is consistent with the Exchange Act. The Commission believes that the proposal will help protect investors and the public interest by enhancing efficiencies for FINRA arbitration forum users and expediting case administration by FINRA staff by, among other things, improving the case intake process and helping ensure better data accuracy.87 The Commission further believes that FINRA’s response, as discussed in more detail above, appropriately addressed commenters’ concerns and adequately explained its reasons for declining to modify its proposal to allow for payment by personal check or to extend FINRA’s current redaction requirements to simplified proceedings. The Commission believes that the approach proposed by FINRA is appropriate and designed to protect investors and the public interest, consistent with Section 15A(b)(6) of the Exchange Act. For these reasons, the Commission finds that the proposed rule change is consistent with the Exchange Act and the rules and regulations thereunder. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act,88 that the proposed rule change (SR– FINRA–2016–029) be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.89 Brent J. Fields, Secretary. [FR Doc. 2016–27739 Filed 11–17–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–79301; File No. SR–MIAX– 2016–42] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule November 14, 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 81 Id. 82 PIABA 87 Notice, 83 See 88 15 81 FR at 54866. U.S.C. 78s(b)(2). 89 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. Letter at 2. FINRA Letter at 3. 84 PIABA Letter at 2. 85 FINRA Letter at 3–4. 86 Notice, 81 FR at 54867. PO 00000 Frm 00136 Fmt 4703 Sfmt 4703 E:\FR\FM\18NON1.SGM 18NON1 Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices on October 31, 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 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 the MIAX Select Symbols 3 section of the Priority Customer Rebate Program (the ‘‘Program’’) 4 to delete the option class 3 The term ‘‘MIAX Select Symbols’’ currently means options overlying AA, AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT, CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, SUNE, T, TSLA, USO, VALE, VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM, XOP, and YHOO. 4 See Securities Exchange Act Release Nos. 74291 (February 18, 2015), 80 FR 9841 (February 24, 2015) (SR–MIAX–2015–09); 73328 (October 9, 2014), 79 FR 62230 (October 16, 2014) (SR–MIAX–2014–50); 72567 (July 8, 2014), 79 FR 40818 (July 14, 2014) (SR–MIAX–2014–34); 72356 (June 10, 2014), 79 FR 34384 (June 16, 2014) (SR–MIAX–2014–26); 71698 (March 12, 2014), 79 FR 15185 (March 18, 2014) (SR–MIAX–2014–12); 71700 (March 12, 2014), 79 FR 15188 (March 18, 2014) (SR–MIAX–2014–13); VerDate Sep<11>2014 20:21 Nov 17, 2016 Jkt 241001 ‘‘AA’’ associated with the corporation Alcoa Inc. (‘‘Alcoa’’). Alcoa announced a corporate transaction that will result in the company’s separation into two independent publicly-traded companies, Alcoa Corporation and Arconic, Inc. (‘‘Arconic’’).5 The separation is to become effective before the opening of the market on November 1, 2016 and is structured to be effected by means of a pro rata distribution by Alcoa of 80.1% of the outstanding common stock of Alcoa Corporation. Arconic will retain 19.9% of Alcoa Corporation common stock.6 In connection with this distribution, on November 1, 2016, Alcoa will change its name to ‘‘Arconic Inc.’’ and its ticker symbol from ‘‘AA’’ to ‘‘ARNC’’ and Alcoa Corporation will trade as an independent company under the ticker symbol ‘‘AA’’.7 The Exchange has decided not to include the surviving entity Arconic in the list of MIAX Select Symbols. The Exchange now proposes to amend the Fee Schedule to delete the symbol ‘‘AA’’ in the list of MIAX Select Symbols to correspond with this change. The change is designed to ensure that there is no confusion amongst market participants and to clarify that Arconic will not become a MIAX Select Symbol. The proposed change is to become effective November 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 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 71283 (January 10, 2014), 79 FR 2914 (January 16, 2014) (SR–MIAX–2013–63); 71009 (December 6, 2013), 78 FR 75629 (December 12, 2013) (SR– MIAX–2013–56). 5 See ‘‘Alcoa Inc. Board of Directors Approves Separation of Company, Separation Date to be November 1, 2016, Distribution Ratio of Alcoa Corporation Common Stock Set’’, www.Business Wire.com, September 29, 2016, 04:40 p.m. Eastern Daylight Time; see also www.Alcoa.com under ‘‘Investor News Releases’’. 6 Id. 7 Id. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(4). 10 15 U.S.C. 78f(b)(5). PO 00000 Frm 00137 Fmt 4703 Sfmt 4703 81855 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. In particular, the proposal to delete the ‘‘AA’’ symbol from the list of MIAX Select Symbols is consistent with Section 6(b)(4) of the Act because the proposed change will allow for continued benefit to investors by providing them an updated list of Select Symbols in the Fee Schedule. The Exchange believes that the proposal to amend an option class that qualifies for the credit for transactions in MIAX Select Symbols is fair, equitable and not unreasonably discriminatory. The credit for transactions in the select symbols is reasonably designed because it will incent providers of Priority Customer order flow to send that Priority Customer order flow to the Exchange in order to receive a credit in a manner that enables the Exchange to improve its overall competitiveness and strengthen its market quality for all market participants. The Program which provides increased incentives in high volume select symbols is also reasonably designed to increase the competitiveness of the Exchange with other options exchanges that also offer increased incentives to higher volume symbols. The Exchange also believes that its proposal is consistent with Section 6(b)(5) of the Act because it will apply equally to all Priority Customer orders in the select symbols. All similarly situated Priority Customer orders in the select symbols are subject to the same rebate schedule, and access to the Exchange is offered on terms that are not unfairly discriminatory. In addition, the Program is equitable and not unfairly discriminatory because, while only Priority Customer order flow qualifies for the Program, an increase in Priority Customer order flow will bring greater volume and liquidity, which benefit all market participants by providing more trading opportunities and tighter spreads. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule change is a not a competitive filing but rather is designed to update the list of Select Symbols in order to avoid potential confusion on the part of market participants. E:\FR\FM\18NON1.SGM 18NON1 81856 Federal Register / Vol. 81, No. 223 / Friday, November 18, 2016 / Notices 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 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: mstockstill on DSK3G9T082PROD with NOTICES 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–2016–42 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–2016–42. 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 11 15 12 17 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). VerDate Sep<11>2014 20:21 Nov 17, 2016 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– 2016–42 and should be submitted on or before December 9, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Brent J. Fields, Secretary. [FR Doc. 2016–27741 Filed 11–17–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. Extension: Rule 18f–1 and Form N–18f–1, SEC File No. 270–187, OMB Control No. 3235– 0211 Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3520), the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. Rule 18f–1 (17 CFR 270.18f–1) enables a registered open-end management investment company (‘‘fund’’) that may redeem its securities in-kind, by making a one-time election, to commit to make cash redemptions pursuant to certain requirements without violating section 18(f) of the Investment Company Act of 1940 (15 13 17 Jkt 241001 PO 00000 CFR 200.30–3(a)(12). Frm 00138 Fmt 4703 Sfmt 4703 U.S.C. 80a–18(f)). A fund relying on the rule must file Form N–18F–1 (17 CFR 274.51) to notify the Commission of this election. The Commission staff estimates that 38 funds file Form N– 18F–1 annually, and that each response takes one hour. Based on these estimates, the total annual burden hours associated with the rule is estimated to be 38 hours. The estimate of average burden hours is made solely for the purposes of the Paperwork Reduction Act, and is not derived from a comprehensive or even a representative survey or study of the costs of Commission rules. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. Written comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the Commission, including whether the information has practical utility; (b) the accuracy of the Commission’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Please direct your written comments to Pamela Dyson, Director/Chief Information Officer, Securities and Exchange Commission, C/O Remi Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email to: PRA_Mailbox@sec.gov. Dated: November 14, 2016. Brent J. Fields, Secretary. [FR Doc. 2016–27750 Filed 11–17–16; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #14970 and #14971] North Carolina Disaster #NC–00086 U.S. Small Business Administration. ACTION: Notice. AGENCY: This is a Notice of the Presidential declaration of a major disaster for Public Assistance Only for the State of North Carolina (FEMA– 4285–DR), dated 11/10/2016. SUMMARY: E:\FR\FM\18NON1.SGM 18NON1

Agencies

[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)]
[Notices]
[Pages 81854-81856]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27741]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79301; File No. SR-MIAX-2016-42]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Fee Schedule

November 14, 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

[[Page 81855]]

on October 31, 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 office, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the MIAX Select Symbols \3\ section 
of the Priority Customer Rebate Program (the ``Program'') \4\ to delete 
the option class ``AA'' associated with the corporation Alcoa Inc. 
(``Alcoa''). Alcoa announced a corporate transaction that will result 
in the company's separation into two independent publicly-traded 
companies, Alcoa Corporation and Arconic, Inc. (``Arconic'').\5\ The 
separation is to become effective before the opening of the market on 
November 1, 2016 and is structured to be effected by means of a pro 
rata distribution by Alcoa of 80.1% of the outstanding common stock of 
Alcoa Corporation. Arconic will retain 19.9% of Alcoa Corporation 
common stock.\6\ In connection with this distribution, on November 1, 
2016, Alcoa will change its name to ``Arconic Inc.'' and its ticker 
symbol from ``AA'' to ``ARNC'' and Alcoa Corporation will trade as an 
independent company under the ticker symbol ``AA''.\7\ The Exchange has 
decided not to include the surviving entity Arconic in the list of MIAX 
Select Symbols. The Exchange now proposes to amend the Fee Schedule to 
delete the symbol ``AA'' in the list of MIAX Select Symbols to 
correspond with this change. The change is designed to ensure that 
there is no confusion amongst market participants and to clarify that 
Arconic will not become a MIAX Select Symbol. The proposed change is to 
become effective November 1, 2016.
---------------------------------------------------------------------------

    \3\ The term ``MIAX Select Symbols'' currently means options 
overlying AA, AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BBRY, BIDU, 
BP, C, CAT, CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, 
GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, 
MO, MRK, NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, 
SUNE, T, TSLA, USO, VALE, VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF, 
XLP, XOM, XOP, and YHOO.
    \4\ See Securities Exchange Act Release Nos. 74291 (February 18, 
2015), 80 FR 9841 (February 24, 2015) (SR-MIAX-2015-09); 73328 
(October 9, 2014), 79 FR 62230 (October 16, 2014) (SR-MIAX-2014-50); 
72567 (July 8, 2014), 79 FR 40818 (July 14, 2014) (SR-MIAX-2014-34); 
72356 (June 10, 2014), 79 FR 34384 (June 16, 2014) (SR-MIAX-2014-
26); 71698 (March 12, 2014), 79 FR 15185 (March 18, 2014) (SR-MIAX-
2014-12); 71700 (March 12, 2014), 79 FR 15188 (March 18, 2014) (SR-
MIAX-2014-13); 71283 (January 10, 2014), 79 FR 2914 (January 16, 
2014) (SR-MIAX-2013-63); 71009 (December 6, 2013), 78 FR 75629 
(December 12, 2013) (SR-MIAX-2013-56).
    \5\ See ``Alcoa Inc. Board of Directors Approves Separation of 
Company, Separation Date to be November 1, 2016, Distribution Ratio 
of Alcoa Corporation Common Stock Set'', www.Business Wire.com, 
September 29, 2016, 04:40 p.m. Eastern Daylight Time; see also 
www.Alcoa.com under ``Investor News Releases''.
    \6\ Id.
    \7\ Id.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the proposal to delete the ``AA'' symbol from the 
list of MIAX Select Symbols is consistent with Section 6(b)(4) of the 
Act because the proposed change will allow for continued benefit to 
investors by providing them an updated list of Select Symbols in the 
Fee Schedule.
    The Exchange believes that the proposal to amend an option class 
that qualifies for the credit for transactions in MIAX Select Symbols 
is fair, equitable and not unreasonably discriminatory. The credit for 
transactions in the select symbols is reasonably designed because it 
will incent providers of Priority Customer order flow to send that 
Priority Customer order flow to the Exchange in order to receive a 
credit in a manner that enables the Exchange to improve its overall 
competitiveness and strengthen its market quality for all market 
participants. The Program which provides increased incentives in high 
volume select symbols is also reasonably designed to increase the 
competitiveness of the Exchange with other options exchanges that also 
offer increased incentives to higher volume symbols.
    The Exchange also believes that its proposal is consistent with 
Section 6(b)(5) of the Act because it will apply equally to all 
Priority Customer orders in the select symbols. All similarly situated 
Priority Customer orders in the select symbols are subject to the same 
rebate schedule, and access to the Exchange is offered on terms that 
are not unfairly discriminatory. In addition, the Program is equitable 
and not unfairly discriminatory because, while only Priority Customer 
order flow qualifies for the Program, an increase in Priority Customer 
order flow will bring greater volume and liquidity, which benefit all 
market participants by providing more trading opportunities and tighter 
spreads.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
rule change is a not a competitive filing but rather is designed to 
update the list of Select Symbols in order to avoid potential confusion 
on the part of market participants.

[[Page 81856]]

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 
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-2016-42 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-2016-42. 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 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-2016-42 and should be 
submitted on or before December 9, 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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Brent J. Fields,
Secretary.
[FR Doc. 2016-27741 Filed 11-17-16; 8:45 am]
 BILLING CODE 8011-01-P
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