Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Pricing Schedule Section II, Entitled Multiply Listed Options Fees, 52340-52342 [2017-24439]
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52340
Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Notices
5. Applicants also request an
exemption from section 22(d) of the Act
and rule 22c–1 under the Act as
secondary market trading in shares will
take place at negotiated prices, not at a
current offering price described in a
Fund’s prospectus, and not at a price
based on NAV. Applicants state that (a)
secondary market trading in shares does
not involve a Fund as a party and will
not result in dilution of an investment
in shares, and (b) to the extent different
prices exist during a given trading day,
or from day to day, such variances occur
as a result of third-party market forces,
such as supply and demand. Therefore,
applicants assert that secondary market
transactions in shares will not lead to
discrimination or preferential treatment
among purchasers. Finally, applicants
represent that share market prices will
be disciplined by arbitrage
opportunities, which should prevent
shares from trading at a material
discount or premium from NAV.
6. With respect to Funds that hold
non-U.S. Portfolio Instruments and that
effect creations and redemptions of
Creation Units in kind, applicants
request relief from the requirement
imposed by section 22(e) in order to
allow such Funds to pay redemption
proceeds within fifteen calendar days
following the tender of Creation Units
for redemption. Applicants assert that
the requested relief would not be
inconsistent with the spirit and intent of
section 22(e) to prevent unreasonable,
undisclosed or unforeseen delays in the
actual payment of redemption proceeds.
7. Applicants request an exemption to
permit Funds of Funds to acquire Fund
shares beyond the limits of section
12(d)(1)(A) of the Act; and the Funds,
and any principal underwriter for the
Funds, and/or any broker or dealer
registered under the Exchange Act, to
sell shares to Funds of Funds beyond
the limits of section 12(d)(1)(B) of the
Act. The application’s terms and
conditions are designed to, among other
things, help prevent any potential (i)
undue influence over a Fund through
control or voting power, or in
connection with certain services,
transactions, and underwritings, (ii)
excessive layering of fees, and (iii)
overly complex fund structures, which
are the concerns underlying the limits
in sections 12(d)(1)(A) and (B) of the
Act.
8. Applicants request an exemption
from sections 17(a)(1) and 17(a)(2) of the
Act to permit persons that are affiliated
persons, or second-tier affiliates, of the
Funds, solely by virtue of certain
ownership interests, to effectuate
purchases and redemptions in-kind. The
deposit procedures for in-kind
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purchases of Creation Units and the
redemption procedures for in-kind
redemptions of Creation Units will be
the same for all purchases and
redemptions and Deposit Instruments
and Redemption Instruments will be
valued in the same manner as those
Portfolio Instruments currently held by
the Funds. Applicants also seek relief
from the prohibitions on affiliated
transactions in section 17(a) to permit a
Fund to sell its shares to and redeem its
shares from a Fund of Funds, and to
engage in the accompanying in-kind
transactions with the Fund of Funds.2
The purchase of Creation Units by a
Fund of Funds directly from a Fund will
be accomplished in accordance with the
policies of the Fund of Funds and will
be based on the NAVs of the Funds.
9. Applicants also request relief to
permit a Feeder Fund to acquire shares
of another registered investment
company managed by the Adviser
having substantially the same
investment objectives as the Feeder
Fund (‘‘Master Fund’’) beyond the
limitations in section 12(d)(1)(A) and
permit the Master Fund, and any
principal underwriter for the Master
Fund, to sell shares of the Master Fund
to the Feeder Fund beyond the
limitations in section 12(d)(1)(B).
10. Section 6(c) of the Act permits the
Commission to exempt any persons or
transactions from any provision of the
Act if such exemption is necessary or
appropriate in the public interest and
consistent with the protection of
investors and the purposes fairly
intended by the policy and provisions of
the Act. Section 12(d)(1)(J) of the Act
provides that the Commission may
exempt any person, security, or
transaction, or any class or classes of
persons, securities, or transactions, from
any provision of section 12(d)(1) if the
exemption is consistent with the public
interest and the protection of investors.
Section 17(b) of the Act authorizes the
Commission to grant an order
permitting a transaction otherwise
prohibited by section 17(a) if it finds
that (a) the terms of the proposed
transaction are fair and reasonable and
do not involve overreaching on the part
of any person concerned; (b) the
proposed transaction is consistent with
the policies of each registered
2 The requested relief would apply to direct sales
of shares in Creation Units by a Fund to a Fund of
Funds and redemptions of those shares. Applicants,
moreover, are not seeking relief from section 17(a)
for, and the requested relief will not apply to,
transactions where a Fund could be deemed an
Affiliated Person, or a Second-Tier Affiliate, of a
Fund of Funds because an Adviser or an entity
controlling, controlled by or under common control
with an Adviser provides investment advisory
services to that Fund of Funds.
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investment company involved; and (c)
the proposed transaction is consistent
with the general purposes of the Act.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–24487 Filed 11–9–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82019; File No. SR–Phlx–
2017–91]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Pricing
Schedule Section II, Entitled Multiply
Listed Options Fees
November 6, 2017.
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 November
1, 2017, Nasdaq PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘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
Pricing Schedule, Section II, entitled
‘‘Multiply Listed Options Fees,’’ 3 as
further discussed below.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaqphlx.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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 This includes options overlying equities, ETFs,
ETNs and indexes which are multiply listed.
2 17
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Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Notices
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
asabaliauskas on DSKBBXCHB2PROD with NOTICES
The purpose of the proposed rule
change is to amend Section II of the
Exchange’s Pricing Schedule to increase
the assessment for select Firm 4
electronic simple orders.
As set forth in Section II of the Pricing
Schedule, the Exchange currently
charges a Penny Pilot Options
Transaction Charge for electronic simple
orders that is $0.48 per contract for
Professional,5 Broker-Dealer 6 and Firm
orders, $0.22 per contract for Specialist 7
and Market Maker 8 orders, and $0.00
for Customer 9 orders. In addition, the
Exchange charges a reduced Penny Pilot
Options Transaction Charge for Firm
electronic simple orders in AAPL, BAC,
EEM, FB, FXI, IWM, QQQ, TWTR, VXX
and XLF (hereinafter, ‘‘Select Symbols’’)
that is $0.37 per contract (reduced from
4 The term ‘‘Firm’’ applies to any transaction that
is identified by a member or member organization
for clearing in the Firm range at OCC.
5 The term ‘‘Professional’’ applies to transactions
for the accounts of Professionals, as defined in
Exchange Rule 1000(b)(14) means any person or
entity that (i) is not a broker or dealer in securities,
and (ii) places more than 390 orders in listed
options per day on average during a calendar month
for its own beneficial account(s). See Pricing
Schedule, Preface.
6 The term ‘‘Broker-Dealer’’ applies to any
transaction which is not subject to any of the other
transaction fees applicable within a particular
category. See Pricing Schedule, Preface.
7 The term ‘‘Specialist’’ applies to transactions for
the account of a Specialist (as defined in Exchange
Rule 1020(a)). A Specialist is an Exchange member
who is registered as an options specialist pursuant
to Rule 1020(a). An options Specialist includes a
Remote Specialist which is defined as an options
specialist in one or more classes that does not have
a physical presence on an Exchange floor and is
approved by the Exchange pursuant to Rule 501.
See Pricing Schedule, Preface.
8 For purposes of the Pricing Schedule, the term
‘‘Market Maker’’ will be utilized to describe the fees
and rebates applicable to Registered Options
Traders (as defined in Exchange Rule 1014(b)),
Streaming Quote Traders (as defined in Exchange
Rule 1014(b)(ii)(A)) and Remote Streaming Quote
Traders (as defined in Exchange Rule
1014(b)(ii)(B)). See Pricing Schedule, Preface.
9 The term ‘‘Customer’’ applies to any transaction
that is identified by a member or member
organization for clearing in the Customer range at
The Options Clearing Corporation (‘‘OCC’’) which
is not for the account of a broker or dealer or for
the account of a ‘‘Professional’’ (as that term is
defined in Rule 1000(b)(14)). See Pricing Schedule,
Preface.
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$0.48 per contract).10 The reduced fee
for Firm electronic simple orders in
Select Symbols (such reduced fee, the
‘‘Select Firm Fee’’) is to incentivize
Firms to transact more volume in Select
Symbols, thereby attracting more order
flow to the Exchange.
The Exchange now proposes to
increase the $0.37 per contract Select
Firm Fee to raise revenue for the
Exchange and help defray costs. As
proposed, note 1 in Section II of the
Pricing Schedule will read, ‘‘Firm
electronic simple orders in AAPL, BAC,
EEM, FB, FXI, IWM, QQQ, TWTR, VXX
and XLF will be assessed $0.45 per
contract.’’
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,11 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,12 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, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange believes its proposal to
increase the Select Firm Fee from $0.37
to $0.45 per contract is reasonable
because the proposed increase will help
defray costs, and remains lower than the
$0.48 per contract Penny Pilot Options
Transaction Charge assessed to all other
Firm electronic simple orders.13
Furthermore, the Exchange notes that
the proposed fee remains competitive
with the fees of another options
market.14 Accordingly, the Exchange
believes that the proposed $0.45 per
contract fee for Firm electronic simple
orders in Select Symbols, which
represent high volume Penny Pilot
options listed on the Exchange, will
continue to be competitive and attract
order flow to the Exchange, to the
benefit of all market participants.
In addition, the Exchange believes the
proposed $0.45 per contract Select Firm
Fee is equitable and not unfairly
discriminatory because the Exchange
will apply the same fee to all similarly
situated members. For the reasons
discussed above, the proposed fee
provides an incentive for Firms to
10 See note 1 in Section II of the Pricing Schedule.
Select symbols represent high volume Penny Pilot
options listed on the Exchange.
11 15 U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(4) and (5).
13 See Pricing Schedule, Section II.
14 See, e.g., MIAX Options Fee Schedule at:
https://www.miaxoptions.com/sites/default/files/
fee_schedule-files/MIAX_Options_Fee_Schedule_
10112017.pdf.
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Fmt 4703
Sfmt 4703
52341
transact order flow on the Exchange,
which order flow brings increased
liquidity to the Exchange for the benefit
of all Exchange participants. To the
extent the purpose of the proposed
Select Firm Fee is achieved, all market
participants should benefit from the
improved market liquidity.
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 not
necessary or appropriate in furtherance
of the purposes of the Act. As discussed
above, the Exchange believes that the
proposed Select Firm Fee remains
competitive and will continue to attract
order flow to the Exchange. The
Exchange notes that it operates in a
highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
excessive, or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
fees to remain competitive with other
exchanges. For the reasons described
above, the Exchange believes that the
proposed fee changes reflect this
competitive environment.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act.15
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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
15 15
E:\FR\FM\13NON1.SGM
U.S.C. 78s(b)(3)(A)(ii).
13NON1
52342
Federal Register / Vol. 82, No. 217 / Monday, November 13, 2017 / Notices
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–
Phlx–2017–91 on the subject line.
submissions should refer to File
Number SR–Phlx–2017–91 and should
be submitted on or before December 4,
2017.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
[FR Doc. 2017–24439 Filed 11–9–17; 8:45 am]
BILLING CODE 8011–01–P
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–Phlx–2017–91. 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82017; File No. SR–
PEARL–2017–36]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX
PEARL Fee Schedule
November 6, 2017.
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 November
2, 2017, MIAX PEARL, LLC (‘‘MIAX
PEARL’’ 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 PEARL 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/rulefilings/pearl at MIAX PEARL’s principal
office, and at the Commission’s Public
Reference Room.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to make a
number of non-substantive, technical
corrections to its routing fee table set
forth in Section 1(b) of the Fee Schedule
to reflect recent corporate name changes
to some of the options exchanges listed
in the table.
As a result of recent exchange
consolidation and corporate rebranding, some options exchanges have
changed their names. The names of all
options exchanges are set forth in the
Exchange’s routing fee table set forth in
Section 1(b) of the Fee Schedule, which
sets forth the fees for customer orders
that are routed to those options
exchanges for execution. Accordingly,
the Exchange proposes to update its
routing fee table set forth in Section 1(b)
of the Fee Schedule to reflect those
recent exchange name changes. No other
changes are proposed to the routing fee
table. Accordingly, as amended, the
routing fee table shall be as follows:
(b) Fees and Rebates for Customer
Orders Routed to Another Options
Exchange MIAX PEARL will assess a
Routing Fee to market participants on
all orders routed to and executed on an
away market as set forth in the table
below.
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Description
Fees
Routed, Priority Customer, Penny Pilot, to: NYSE American, BOX, Cboe, Cboe EDGX Options , Nasdaq MRX, MIAX OPTIONS,
Nasdaq PHLX (except SPY), Nasdaq BX Options ..........................................................................................................................
Routed, Priority Customer, Penny Pilot, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, Nasdaq GEMX, Nasdaq ISE,
NOM, Nasdaq PHLX (SPY only) .....................................................................................................................................................
Routed, Priority Customer, Non-Penny Pilot, to: NYSE American, BOX, Cboe, Cboe EDGX Options, Nasdaq ISE, Nasdaq MRX,
MIAX OPTIONS, Nasdaq PHLX, Nasdaq BX Options ....................................................................................................................
Routed, Priority Customer, Non-Penny Pilot, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, Nasdaq GEMX, NOM .........
Routed, Public Customer that is not a Priority Customer, Penny Pilot, to: NYSE American, NYSE Arca Options, Cboe BZX Options, BOX, Cboe, Cboe C2, Cboe EDGX Options, Nasdaq GEMX, Nasdaq ISE, Nasdaq MRX, MIAX OPTIONS, NOM,
Nasdaq PHLX, Nasdaq BX Options ................................................................................................................................................
16 17
CFR 200.30–3(a)(12).
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18:38 Nov 09, 2017
1 15
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PO 00000
U.S.C. 78s(b)(1).
Frm 00079
Fmt 4703
2 17
Sfmt 4703
CFR 240.19b–4.
E:\FR\FM\13NON1.SGM
13NON1
$0.15
0.65
0.15
0.97
0.65
]]>Agencies
[Federal Register Volume 82, Number 217 (Monday, November 13, 2017)]
[Notices]
[Pages 52340-52342]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24439]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82019; File No. SR-Phlx-2017-91]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Pricing
Schedule Section II, Entitled Multiply Listed Options Fees
November 6, 2017.
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 November 1, 2017, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'') filed
with the Securities and Exchange Commission (``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.
---------------------------------------------------------------------------
\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 proposes to amend the Pricing Schedule, Section II,
entitled ``Multiply Listed Options Fees,'' \3\ as further discussed
below.
---------------------------------------------------------------------------
\3\ This includes options overlying equities, ETFs, ETNs and
indexes which are multiply listed.
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaqphlx.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
[[Page 52341]]
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 amend Section II of
the Exchange's Pricing Schedule to increase the assessment for select
Firm \4\ electronic simple orders.
---------------------------------------------------------------------------
\4\ The term ``Firm'' applies to any transaction that is
identified by a member or member organization for clearing in the
Firm range at OCC.
---------------------------------------------------------------------------
As set forth in Section II of the Pricing Schedule, the Exchange
currently charges a Penny Pilot Options Transaction Charge for
electronic simple orders that is $0.48 per contract for
Professional,\5\ Broker-Dealer \6\ and Firm orders, $0.22 per contract
for Specialist \7\ and Market Maker \8\ orders, and $0.00 for Customer
\9\ orders. In addition, the Exchange charges a reduced Penny Pilot
Options Transaction Charge for Firm electronic simple orders in AAPL,
BAC, EEM, FB, FXI, IWM, QQQ, TWTR, VXX and XLF (hereinafter, ``Select
Symbols'') that is $0.37 per contract (reduced from $0.48 per
contract).\10\ The reduced fee for Firm electronic simple orders in
Select Symbols (such reduced fee, the ``Select Firm Fee'') is to
incentivize Firms to transact more volume in Select Symbols, thereby
attracting more order flow to the Exchange.
---------------------------------------------------------------------------
\5\ The term ``Professional'' applies to transactions for the
accounts of Professionals, as defined in Exchange Rule 1000(b)(14)
means any person or entity that (i) is not a broker or dealer in
securities, and (ii) places more than 390 orders in listed options
per day on average during a calendar month for its own beneficial
account(s). See Pricing Schedule, Preface.
\6\ The term ``Broker-Dealer'' applies to any transaction which
is not subject to any of the other transaction fees applicable
within a particular category. See Pricing Schedule, Preface.
\7\ The term ``Specialist'' applies to transactions for the
account of a Specialist (as defined in Exchange Rule 1020(a)). A
Specialist is an Exchange member who is registered as an options
specialist pursuant to Rule 1020(a). An options Specialist includes
a Remote Specialist which is defined as an options specialist in one
or more classes that does not have a physical presence on an
Exchange floor and is approved by the Exchange pursuant to Rule 501.
See Pricing Schedule, Preface.
\8\ For purposes of the Pricing Schedule, the term ``Market
Maker'' will be utilized to describe the fees and rebates applicable
to Registered Options Traders (as defined in Exchange Rule 1014(b)),
Streaming Quote Traders (as defined in Exchange Rule 1014(b)(ii)(A))
and Remote Streaming Quote Traders (as defined in Exchange Rule
1014(b)(ii)(B)). See Pricing Schedule, Preface.
\9\ The term ``Customer'' applies to any transaction that is
identified by a member or member organization for clearing in the
Customer range at The Options Clearing Corporation (``OCC'') which
is not for the account of a broker or dealer or for the account of a
``Professional'' (as that term is defined in Rule 1000(b)(14)). See
Pricing Schedule, Preface.
\10\ See note 1 in Section II of the Pricing Schedule. Select
symbols represent high volume Penny Pilot options listed on the
Exchange.
---------------------------------------------------------------------------
The Exchange now proposes to increase the $0.37 per contract Select
Firm Fee to raise revenue for the Exchange and help defray costs. As
proposed, note 1 in Section II of the Pricing Schedule will read,
``Firm electronic simple orders in AAPL, BAC, EEM, FB, FXI, IWM, QQQ,
TWTR, VXX and XLF will be assessed $0.45 per contract.''
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\11\ in general, and furthers the objectives of
Sections 6(b)(4) and 6(b)(5) of the Act,\12\ 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, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes its proposal to increase the Select Firm Fee
from $0.37 to $0.45 per contract is reasonable because the proposed
increase will help defray costs, and remains lower than the $0.48 per
contract Penny Pilot Options Transaction Charge assessed to all other
Firm electronic simple orders.\13\ Furthermore, the Exchange notes that
the proposed fee remains competitive with the fees of another options
market.\14\ Accordingly, the Exchange believes that the proposed $0.45
per contract fee for Firm electronic simple orders in Select Symbols,
which represent high volume Penny Pilot options listed on the Exchange,
will continue to be competitive and attract order flow to the Exchange,
to the benefit of all market participants.
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\13\ See Pricing Schedule, Section II.
\14\ See, e.g., MIAX Options Fee Schedule at: https://www.miaxoptions.com/sites/default/files/fee_schedule-files/MIAX_Options_Fee_Schedule_10112017.pdf.
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In addition, the Exchange believes the proposed $0.45 per contract
Select Firm Fee is equitable and not unfairly discriminatory because
the Exchange will apply the same fee to all similarly situated members.
For the reasons discussed above, the proposed fee provides an incentive
for Firms to transact order flow on the Exchange, which order flow
brings increased liquidity to the Exchange for the benefit of all
Exchange participants. To the extent the purpose of the proposed Select
Firm Fee is achieved, all market participants should benefit from the
improved market liquidity.
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 not necessary or appropriate in
furtherance of the purposes of the Act. As discussed above, the
Exchange believes that the proposed Select Firm Fee remains competitive
and will continue to attract order flow to the Exchange. The Exchange
notes that it operates in a highly competitive market in which market
participants can readily favor competing venues if they deem fee levels
at a particular venue to be excessive, or rebate opportunities
available at other venues to be more favorable. In such an environment,
the Exchange must continually adjust its fees to remain competitive
with other exchanges. For the reasons described above, the Exchange
believes that the proposed fee changes reflect this competitive
environment.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\15\
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\15\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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
[[Page 52342]]
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-Phlx-2017-91 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-Phlx-2017-91. 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. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-Phlx-2017-91 and should be
submitted on or before December 4, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24439 Filed 11-9-17; 8:45 am]
BILLING CODE 8011-01-P
