Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX PEARL Fee Schedule, 28285-28292 [2018-12935]
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Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Pamela
Dyson, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o Candace Kenner, 100 F
Street NE, Washington, DC 20549 or
send an email to: PRA_Mailbox@
sec.gov. Comments must be submitted to
OMB within 30 days of this notice.
Dated: June 3, 2018.
Eduardo A. Aleman,
Assistant Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83419; File No. SR–
PEARL–2018–13]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX
PEARL Fee Schedule
June 12, 2018.
Pursuant to the provisions of Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on May 31, 2018, 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.
amozie on DSK3GDR082PROD with NOTICES1
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 website at
https://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’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
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
executed by the Member 5 on MIAX
PEARL in the relevant, respective origin
type (not including Excluded
Contracts) 6 expressed as a percentage of
TCV.7 In addition, the per contract
transaction rebates and fees are applied
retroactively to all eligible volume for
that origin type once the respective
threshold tier (‘‘Tier’’) has been reached
by the Member. The Exchange
aggregates the volume of Members and
their Affiliates.8 Members that place
resting liquidity, i.e., orders resting on
1. Purpose
[FR Doc. 2018–12984 Filed 6–15–18; 8:45 am]
1 15
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.
28285
The Exchange proposes to amend the
Add/Remove Tiered Rebates/Fees set
forth in Section 1(a) of the Fee Schedule
to (i) modify the volume thresholds
applicable to transactions for (A)
Priority Customers,3 (B) MIAX PEARL
Market Makers,4 and (C) Non-Priority
Customers, Firms, Broker-Dealers and
Non-MIAX PEARL Market Makers
(collectively herein ‘‘Professional
Members’’); (ii) add a new Tier 6 and
corresponding rebates and fees
applicable to transactions for Priority
Customers and Professional Members;
(iii) decrease Maker (as defined below)
rebates in certain Tiers (as defined
below) for options transactions in Penny
classes (as defined below) and NonPenny classes (as defined below) for
Priority Customers and Professional
Members; (iv) increase Taker (as defined
below) fees in all Tiers for options
transactions in Penny Classes for
Priority Customers, and increase the
Taker fees in Tier 2 applicable to
options transactions in Penny and NonPenny classes for Professional Members;
(v) provide alternative Maker rebates for
options transactions in all classes for
Professional Members, provided that the
Member meets certain volume criteria;
and (vi) create new tiered fee structures
for Taker fees in the symbols SPY, QQQ,
IWM and VXX for Priority Customers.
The Exchange also proposes to make
certain non-substantive, technical
corrections to the Fee Schedule, as
described below.
The Exchange currently assesses
transaction rebates and fees to all
market participants which are based
upon the total monthly volume
3 ‘‘Priority Customer’’ means a person or entity
that (i) is not a broker or dealer in securities, and
(ii) does not place more than 390 orders in listed
options per day on average during a calendar month
for its own beneficial account(s). See Exchange Rule
100, including Interpretations and Policies .01.
4 ‘‘Market Maker’’ means a Member registered
with the Exchange for the purpose of making
markets in options contracts traded on the
Exchange. See the Definitions Section of the Fee
Schedule and Exchange Rule 100.
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5 ‘‘Member’’ means an individual or organization
that is registered with the Exchange pursuant to
Chapter II of the Exchange Rules for purposes of
trading on the Exchange as an ‘‘Electronic Exchange
Member’’ or ‘‘Market Maker.’’ Members are deemed
‘‘members’’ under the Exchange Act. See the
Definitions Section of the Fee Schedule and
Exchange Rule 100.
6 ‘‘Excluded Contracts’’ means any contracts
routed to an away market for execution. See the
Definitions Section of the Fee Schedule.
7 ‘‘TCV’’ means total consolidated volume
calculated as the total national volume in those
classes listed on MIAX PEARL for the month for
which the fees apply, excluding consolidated
volume executed during the period time in which
the Exchange experiences an ‘‘Exchange System
Disruption’’ (solely in the option classes of the
affected Matching Engine (as defined below)). The
term Exchange System Disruption, which is defined
in the Definitions section of the Fee Schedule,
means an outage of a Matching Engine or collective
Matching Engines for a period of two consecutive
hours or more, during trading hours. The term
Matching Engine, which is also defined in the
Definitions section of the Fee Schedule, is a part of
the MIAX PEARL electronic system that processes
options orders and trades on a symbol-by-symbol
basis. Some Matching Engines will process option
classes with multiple root symbols, and other
Matching Engines may be dedicated to one single
option root symbol (for example, options on SPY
may be processed by one single Matching Engine
that is dedicated only to SPY). A particular root
symbol may only be assigned to a single designated
Matching Engine. A particular root symbol may not
be assigned to multiple Matching Engines. The
Exchange believes that it is reasonable and
appropriate to select two consecutive hours as the
amount of time necessary to constitute an Exchange
System Disruption, as two hours equates to
approximately 1.4% of available trading time per
month. The Exchange notes that the term
‘‘Exchange System Disruption’’ and its meaning
have no applicability outside of the Fee Schedule,
as it is used solely for purposes of calculating
volume for the threshold tiers in the Fee Schedule.
See the Definitions Section of the Fee Schedule.
8 ‘‘Affiliate’’ means (i) an affiliate of a Member of
at least 75% common ownership between the firms
as reflected on each firm’s Form BD, Schedule A,
or (ii) the Appointed Market Maker of an Appointed
EEM (or, conversely, the Appointed EEM of an
Appointed Market Maker). An ‘‘Appointed Market
Maker’’ is a MIAX PEARL Market Maker (who does
not otherwise have a corporate affiliation based
upon common ownership with an EEM) that has
been appointed by an EEM and an ‘‘Appointed
EEM’’ is an EEM (who does not otherwise have a
corporate affiliation based upon common
ownership with a MIAX PEARL Market Maker) that
has been appointed by a MIAX PEARL Market
Maker, pursuant to the process described in the Fee
Schedule. See the Definitions Section of the Fee
Schedule.
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the book of the MIAX PEARL System,9
are paid the specified ‘‘maker’’ rebate
(each a ‘‘Maker’’), and Members that
execute against resting liquidity are
assessed the specified ‘‘taker’’ fee (each
a ‘‘Taker’’). For opening transactions
and ABBO uncrossing transactions, per
contract transaction rebates and fees are
Origin
waived for all market participants.
Finally, Members are assessed lower
transaction fees and receive lower
rebates for order executions in standard
option classes in the Penny Pilot
Program 10 (‘‘Penny classes’’) than for
order executions in standard option
classes which are not in the Penny Pilot
Per contract rebates/fees
for penny classes
Volume criteria
(percent)
Tier
Program (‘‘Non-Penny classes’’), where
Members are assessed higher transaction
fees and receive higher rebates.
Transaction rebates and fees in Section
(1)(a) of the Fee Schedule are currently
assessed according to the following
tables:
Maker
Priority Customer ...........................................
1
2
3
4
5
0.00–0.05 ......................................................
Above 0.05–0.35 ...........................................
Above 0.35—0.50 .........................................
Above 0.50–0.75 ...........................................
Above 0.75 ....................................................
Taker *
($0.25)
(0.40)
(0.50)
(0.53)
(0.54)
$0.42
0.42
0.42
0.42
0.42
Per contract rebates/fees
for non-penny classes
Maker
($0.85)
(1.05)
(1.05)
(1.05)
(1.05)
Taker
$0.87
0.86
0.85
0.84
0.84
* For all Penny Classes other than SPY, QQQ, IWM, and VXX. For SPY, the Priority Customer Taker Fee shall be $0.38 per contract. For QQQ, IWM, and VXX,
the Priority Customer Taker Fee shall be $0.40 per contract.
Origin
Per contract rebates/fees
for penny classes
Volume criteria
(percent)
Tier
Maker
All MIAX PEARL Market Makers ...................
Origin
1
2
3
4
5
6
0.00–0.05 ......................................................
Above 0.05–0.25 ...........................................
Above 0.25–0.50 ...........................................
Above 0.50–0.75 or Above 2.0 in SPY ........
Above 0.75–1.00 ...........................................
Above 1.00 ....................................................
($0.25)
(0.40)
(0.40)
(0.47)
(0.48)
(0.48)
Maker
Non-Priority Customer, Firm, BD, and NonMIAX PEARL Market Makers.
1
2
3
4
5
$0.50
0.50
0.48
0.43
0.43
0.43
Per contract rebates/fees
for penny classes
Volume criteria
(percent)
Tier
Taker
0.00–0.10 ......................................................
Above 0.10–0.50 ...........................................
Above 0.50–0.75 ...........................................
Above 0.75–1.00 ...........................................
Above 1.00 ....................................................
Taker
($0.25)
(0.40)
(0.45)
(0.48)
(0.48)
$0.50
0.49
0.48
0.48
0.48
Per contract rebates/fees
for non-penny classes
Maker **
($0.30)
(0.30)
(0.60)
(0.65)
(0.70)
(0.85)
Taker **
$1.05
1.05
1.03
1.02
1.02
1.02
Per contract rebates/fees
for non-penny classes
Maker **
($0.30)
(0.60)
(0.65)
(0.70)
(0.85)
Taker **
$1.05
1.04
1.04
1.04
1.04
** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions in Non-Penny classes if the Member executes
more than 0.30% volume in Non-Penny classes, not including Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option classes. For purposes of
qualifying for such rates, the Exchange will aggregate the volume transacted by Members and their Affiliates in the following Origin types in Non-Penny classes: MIAX
PEARL Market Makers, and Non-Priority Customer, Firm, BD, and Non-MIAX PEARL Market Makers.
Volume Threshold Tiers
The Exchange proposes to modify the
monthly volume thresholds applicable
to (i) Priority Customers, (ii) MIAX
PEARL Market Makers, and (iii)
Professional Members.
amozie on DSK3GDR082PROD with NOTICES1
Priority Customers
Specifically, with regard to
transactions for Priority Customers, the
Exchange proposes to adjust the
calculation threshold of Tier 1’s volume
criteria from 0.00% up to 0.05% of the
total monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV, to become above 0.00% up to
0.10% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV.
9 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
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Further, the Exchange proposes to
adjust the calculation threshold of
Priority Customer Tier 2’s volume
criteria from above 0.05% up to 0.35%
of the total monthly volume executed by
the Member on MIAX PEARL, not
including Excluded Contracts, divided
by the TCV, to become above 0.10% up
to 0.35% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV. The
Exchange does not propose any
adjustment to Tier 3 or Tier 4 volume
thresholds for Priority Customer
transactions.
The Exchange further proposes to
adjust the calculation threshold of
Priority Customer Tier 5’s volume
criteria from above 0.75% of the total
monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV, to become above 0.75% up to
1.25% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV.
The Exchange proposes to add a new
Tier 6 threshold applicable to all
Priority Customer transactions and
corresponding rebates and fees. The
new Tier 6 threshold volume criteria
shall be calculated as above 1.25% of
the total monthly volume executed by
the Member on MIAX PEARL, not
including Excluded Contracts, divided
by the TCV. The new Tier 6 rebates and
fees shall be as follows:
10 See Securities Exchange Act Release No. 79778
(January 12, 2017), 82 FR 6662 (January 19, 2017)
(SR–PEARL–2016–01).
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Priority customer
Per contract rebates/fees for penny classes
Tier
Volume criteria (percent)
Maker
6 ........................
Above 1.25 ........................................................................
($0.54)
Taker *
Per contract rebates/fees
for non-penny classes
SPY taker 11
QQQ, IWM,
VXX taker 12
$0.38
$0.40
$0.43
Maker
($1.05)
Taker
$0.84
* For all Penny Classes other than SPY, QQQ, IWM, and VXX.
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The Exchange believes that the
proposed modified monthly volume
thresholds, as well as the new rebates
and fees in Tier 6, will continue to
provide appropriate incentives for
Exchange Members to provide
aggressive liquidity in Priority Customer
transactions so that they can achieve
sufficient rebates and lower fees. The
Exchange believes that this amount of
volume should continue to make the
MIAX PEARL marketplace an attractive
venue where the Exchange’s Members
are incentivized to submit Priority
Customer orders, deepening and
enhancing the quality of the MIAX
PEARL marketplace. This should in turn
provide more trading opportunities and
tighter spreads for other market
participants and result in a
corresponding increase in order flow
from such other market participants.
Market Makers
The Exchange proposes to modify the
monthly volume thresholds applicable
to the Exchange’s Market Makers and to
adjust the thresholds in all Tiers.
Specifically, the Exchange proposes to
adjust the calculation threshold of Tier
1’s volume criteria from 0.00% up to
0.05% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV, to
become above 0.00% up to 0.15% of the
total monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV.
Further, the Exchange proposes to
adjust the calculation threshold of Tier
2’s volume criteria for Market Makers
from above 0.05% up to 0.25% of the
total monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV, to become above 0.15% up to
0.40% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV.
The Exchange proposes to adjust the
calculation threshold of Tier 3’s volume
criteria for Market Makers from above
0.25% up to 0.50% of the total monthly
volume executed by the Member on
11 Proposed fee change to be discussed further
below.
12 Proposed fee change to be discussed further
below.
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MIAX PEARL, not including Excluded
Contracts, divided by the TCV, to
become above 0.40% up to 0.65% of the
total monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV.
The Exchange additionally proposes
to adjust the calculation threshold of
Tier 4’s volume criteria for Market
Makers from above 0.50% up to 0.75%
of the total monthly volume executed by
the Member on MIAX PEARL, not
including Excluded Contracts, divided
by the TCV to become above 0.65% up
to 1.00% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV.
The Exchange also proposes to modify
the alternative Volume Criteria to Tier 4
based upon the total monthly volume
executed by a Market Maker solely in
SPY options on MIAX PEARL,
expressed as a percentage of total
consolidated national volume in SPY
options. Pursuant to this alternative
Volume Criteria, a Market Maker could
currently reach the Tier 4 threshold if
the Market Maker’s total executed
monthly volume in SPY options on
MIAX PEARL is above 2.0% of total
consolidated national monthly volume
in SPY options. The Exchange now
proposes that a Market Maker can reach
the Tier 4 threshold if the Market
Maker’s total executed monthly volume
in SPY options on MIAX PEARL is
above 2.25% of the total consolidated
national monthly volume in SPY
options. The Exchange believes that the
proposed modification to the alternative
Volume Criteria threshold in Tier 4 for
Market Makers in SPY options
(increasing the threshold amount from
2.0% to 2.25%) will continue to provide
a sufficient incentive to those Market
Makers that concentrate their trading
activity in limited options classes (such
as SPY options) to reach a higher tier.
The alternative Volume Criteria
threshold in Tier 4 for Market Makers in
SPY options is also discussed in the
note beneath the transaction fee tables,
which provides more explanation on the
alternative threshold. Accordingly, the
Exchange also proposes to change the
threshold amount (increasing it from
2.0% to 2.25%) in that note beneath the
tables. The Exchange also proposes to
make another non-substantive technical
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correction to that same sentence in the
note beneath the transaction fee tables
to correct an inaccurate cross-reference.
Presently, the note reads ‘‘[i]n Tier 3 for
MIAX PEARL Market Makers, the
alternative Volume Criteria . . .’’
However, the Tier referenced in that
note should be to Tier 4, not Tier 3.
Accordingly, the Exchange proposes to
change the reference to Tier 4. This
particular proposed change does not
impact any fees substantively and only
serves to identify the correct Tier.
Further, the Exchange proposes to
adjust the calculation threshold of Tier
5’s volume criteria for Market Makers
from above 0.75% up to 1.00% of the
total monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV, to become above 1.00% up to
1.40% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV.
The Exchange additionally proposes
to adjust the calculation threshold of
Tier 6’s volume criteria for Market
Makers from above 1.00% of the total
monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV, to become above 1.40% of the total
monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV.
Professional Members
The Exchange proposes to modify the
monthly volume thresholds applicable
to all Professional Members to adjust the
thresholds in all Tiers as well as to add
a new Tier 6 threshold and
corresponding Tier 6 rebates and fees.
Specifically, the Exchange proposes to
adjust the calculation threshold of Tier
1’s volume criteria for Professional
Members from 0.00% up to 0.10% of the
total monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV, to become above 0.00% up to
0.15% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV.
Further, the Exchange proposes to
adjust the calculation threshold of Tier
2’s volume criteria for Professional
Members from above 0.10% up to
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0.50% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV, to
become above 0.15% up to 0.40% of the
total monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV.
Further, the Exchange proposes to
adjust the calculation threshold of Tier
3’s volume criteria for Professional
Members from above 0.50% up to
0.75% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV, to
become above 0.40% up to 0.65% of the
total monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV.
The Exchange additionally proposes
to adjust the calculation threshold of
Tier 4’s volume criteria for Professional
Members from above 0.75% up to
1.00% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV, to
become above 0.65% up to 1.00% of the
total monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV.
The Exchange additionally proposes
to adjust the calculation threshold of
Tier 5’s volume criteria for Professional
Members from above 1.00% of the total
Non-priority customer, firm, BD, and non-MIAX PEARL market makers
monthly volume executed by the
Member on MIAX PEARL, not including
Excluded Contracts, divided by the
TCV, to become above 1.00% up to
1.40% of the total monthly volume
executed by the Member on MIAX
PEARL, not including Excluded
Contracts, divided by the TCV.
The Exchange proposes to add a new
Tier 6 threshold applicable to all MIAX
PEARL Professional Members and
corresponding rebates and fees. The
new Tier 6 threshold volume criteria
shall be calculated as above 1.40% of
the total monthly volume executed by
the Member on MIAX PEARL, not
including Excluded Contracts, divided
by the TCV. The new Tier 6 rebates and
fees shall be as follows:
Per contract rebates/fees for
penny classes
Tier
Volume criteria
(percent)
6 .....................
Above 1.40 ..........................................................................
Maker
Taker
($0.48)
$0.48
Per contract rebates/fees for
non-penny classes
Maker **
Taker **
($0.85)
$1.04
** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions in Non-Penny classes if the
Member executes more than 0.30% volume in Non-Penny classes, not including Excluded Contracts, as compared to the TCV in all MIAX
PEARL listed option classes. For purposes of qualifying for such rates, the Exchange will aggregate the volume transacted by Members and their
Affiliates in the following Origin types in Non-Penny classes: MIAX PEARL Market Makers, and Non-Priority Customer, Firm, BD, and Non-MIAX
PEARL Market Makers.
The Exchange believes that the
modified new monthly thresholds and
new rebates and fees in Tier 6 should
continue to provide sufficient incentives
for Professional Members to aggressively
provide liquidity so that they can
achieve higher rebates and fees. The
Exchange believes that this volume
should continue to make the MIAX
PEARL marketplace an attractive venue
where the Professional Members are
incentivized to submit orders,
deepening and enhancing the quality of
the MIAX PEARL marketplace. This
should in turn provide more trading
opportunities and tighter spreads for
other market participants and result in
a corresponding increase in order flow
from such other market participants.
Maker Rebates
The Exchange proposes to decrease
the Maker rebate amounts in certain
Tiers as described below for Penny and
Non-Penny classes for Priority
Customers and Professional Members.
amozie on DSK3GDR082PROD with NOTICES1
Priority Customers
Specifically, the Exchange proposes to
decrease the Maker rebates in Tiers 3, 4
and 5 for Penny classes and in Tiers 2
through 5 in Non-Penny classes for
Priority Customer transactions. For
options transactions in Penny classes,
the Exchange proposes to decrease the
Maker rebate in Tier 3 from ($0.50) to
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($0.45), in Tier 4 from ($0.53) to ($0.52)
and in Tier 5 from ($0.54) to ($0.53). For
Priority Customer options transactions
in Non-Penny classes, the Exchange
proposes to decrease the Maker rebates
in Tier 2 from ($1.05) to ($0.95), in Tier
3 from ($1.05) to ($1.00), in Tier 4 from
($1.05) to ($1.03) and in Tier 5 from
($1.05) to ($1.04).
The Exchange proposes to decrease
the Maker rebates applicable to
Professional Members in Tiers 3 and 4
in Penny classes and in Tiers 2 through
5 in Non-Penny classes. For options
transactions in Penny classes, the
Exchange proposes to decrease the
Maker rebates in Tier 3 from ($0.45) to
($0.40) and in Tier 4 from ($0.48) to
($0.47). For Professional Member
options transactions in Non-Penny
classes, the Exchange proposes to
decrease the Maker rebates in Tier 2
from ($0.60) to ($0.30), in Tier 3 from
($0.65) to ($0.60), in Tier 4 from ($0.70)
to ($0.65) and in Tier 5 from ($0.85) to
($0.70).
The purpose of decreasing the amount
of the Maker rebates is to bring the
Exchange’s rebate amounts more into
line with the rebate amounts offered at
other Exchanges.13 The Exchange
believes that the decreased amounts will
continue to provide a sufficient
incentive to Members to execute Priority
Customer orders and to Professional
Members to execute volume at the
Exchange. The Exchange believes that
this Maker volume by Members in both
Penny and Non-Penny classes will
continue to attract liquidity to the
Exchange, which in turn will benefit all
market participants.
The Exchange also proposes to
provide alternative Maker rebates for
options transactions in all classes for
Professional Members, provided that the
Member meets certain volume criteria.
Specifically, Members may qualify for
Maker rebates equal to the greater of: (A)
($0.40) for Penny Classes and ($0.65) for
Non-Penny Classes, or (B) the amount
set forth in the applicable Tier reached
by the Member in the relevant Origin, if
the Member and their Affiliates execute
at least 1.50% volume in the relevant
month, in Priority Customer Origin
type, in all options classes, not
including Excluded Contracts, as
compared to the TCV in all MIAX
PEARL listed option classes. For
example, if a Member met the monthly
volume criteria and reached Tier 1 for
Professional Members’ options
transactions but reached the Priority
13 See Cboe BZX Options Exchange Fee Schedule
under ‘‘Transaction Fees’’; see also Nasdaq Options
Market LLC (‘‘NOM’’) Chapter XV, Section 2,
‘‘Nasdaq Options Market Fees and Rebates.’’
Professional Members
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Penny classes in Tier 2 from $0.49 to
$0.50 and in Non-Penny classes in Tier
2 from $1.04 to $1.05.
The purpose of increasing the
specified Taker fees and decreasing
Maker rebates is for business and
competitive reasons. As a new
exchange, in order to attract order flow,
the Exchange initially set its Maker
rebates and Taker fees so that they were
meaningfully higher/lower than other
options exchanges that operate
comparable maker/taker pricing
models.14 The Exchange now believes
that it is appropriate to adjust these
Maker rebates and Taker fees so that
they are more in line with other
exchanges, but will still remain highly
competitive such that they should
enable the Exchange to continue to
attract order flow and grow market
share.15
Customer monthly threshold of over
1.50% of TCV, the Member would
receive a rebate of ($0.40) per contract
in Penny Classes (instead of ($0.25) per
contract) and ($0.65) per contract in
Non-Penny Classes (instead of ($0.30)
per contract). The member would
receive the Taker rates associated with
the Tier, $0.50 for Penny and $1.05 for
Non-Penny. Also, for purposes of
qualifying for such rates, the Exchange
will aggregate the Priority Customer
volume transacted by Members and
their Affiliates. The purpose of
providing alternative Maker rebate rates
for options transactions in all classes for
Professional Members (if the Member
meets certain volume criteria) is to
encourage Members to execute
additional Priority Customer and
Professional Member volume on the
Exchange. The Exchange believes that
additional Priority Customer and
Professional Member volume executed
on the Exchange will attract further
liquidity to the Exchange, which in turn
will benefit all market participants.
SPY Taker Fees
The Exchange proposes to amend the
Priority Customer table to establish a
separate tiered structure of Taker fees
for options on SPY. The Exchange
currently charges a Taker fee of $0.38
for all transactions on behalf of Priority
Customers in SPY options. The
Exchange proposes instead to assess the
following Taker fees for Priority
Customer orders for SPY options
corresponding to the Tiers and volume
thresholds which are applicable to
Priority Customer orders:
Taker Fees
The Exchange proposes to: (i) Increase
the Taker fees in all Tiers for options
transactions in all Penny classes (other
than SPY, QQQ, IWM, and VXX) with
respect to Priority Customer orders; and
(ii) increase the Taker fee for
Professional Members in Tier 2 for
options transactions in Penny and NonPenny classes.
Specifically, the Exchange proposes to
increase the Taker fees for Priority
Customer orders in options in Penny
Classes in Tier 1 from $0.42 to $0.48, in
Tier 2 from $0.42 to $0.46, in Tier 3
from $0.42 to $0.44, in Tier 4 from $0.42
to $0.44 and in Tier 5 from $0.42 to
$0.44.
The Exchange also proposes to
increase the Taker fee for Professional
Members for options transactions in
Tier
Tier
Tier
Tier
Tier
Tier
1
2
3
4
5
6
....................................
....................................
....................................
....................................
....................................
....................................
$0.44
0.43
0.42
0.41
0.40
0.38
Further, in order to provide a clearer
explanation of the requirements for
achieving the specified Volume Criteria
thresholds in SPY, the Exchange
proposes to add a new column setting
forth the SPY Taker fees in Section 1(a)
of the Fee Schedule under ‘‘Per Contract
Rebates/Fees for Penny Classes’’.
QQQ, IWM and VXX Taker Fees
The Exchange further proposes to
amend the Priority Customer table to
establish a separate tiered structure of
Taker fees for options transactions in
QQQ, IWM and VXX. The Exchange
currently charges a Taker fee of $0.40
for all transactions on behalf of Priority
Customers in QQQ, IWM and VXX
options. The Exchange proposes instead
to assess the following Taker fees for
Priority Customer orders for QQQ, IWM
and VXX options corresponding to the
Tiers and volume thresholds which are
applicable to Priority Customer orders:
Tier
Tier
Tier
Tier
Tier
Tier
1
2
3
4
5
6
....................................
....................................
....................................
....................................
....................................
....................................
Further, in order to provide a clearer
explanation of the requirements for
achieving the specified Volume Criteria
thresholds in in the symbols QQQ, IWM
and VXX, the Exchange proposes to add
a new column setting forth the Taker
fees for such symbols in Section 1(a) of
the Fee Schedule under ‘‘Per Contract
Rebates/Fees for Penny Classes’’.
Since the Exchange is adding the new
columns to Section 1(a) of the Fee
Schedule for SPY and QQQ, IWM, VXX
Taker Fees for Priority Customer orders,
the Exchange proposes to delete the last
sentence in the asterisked footnote
below the Priority Customer table which
contained the Taker fees for those
symbols.
With all proposed changes, Section
1(a) of the Fee Schedule shall be the
following:
Per contract rebates/fees for penny classes
Origin
Volume criteria
(percent)
Tier
Priority Customer ...................
1
2
3
4
5
6
Maker
0.00–0.10 ..............................
Above 0.10–0.35 ...................
Above 0.35–0.50 ...................
Above 0.50–0.75 ...................
Above 0.75–1.25 ...................
Above 1.25 ............................
($0.25)
(0.40)
(0.45)
(0.52)
(0.53)
(0.54)
Taker *
$0.48
0.46
0.44
0.44
0.44
0.43
$0.47
0.46
0.44
0.43
0.42
0.40
Per contract rebates/fees
for non-penny classes
QQQ, IWM,
VXX taker
SPY taker
$0.44
0.43
0.42
0.41
0.40
0.38
$0.47
0.46
0.44
0.43
0.42
0.40
Maker
($0.85)
(0.95)
(1.00)
(1.03)
(1.04)
(1.05)
Taker
$0.87
0.86
0.85
0.84
0.84
0.84
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* For all Penny Classes other than SPY, QQQ, IWM, and VXX.
Origin
Per contract rebates/fees
for penny classes
Volume criteria
(percent)
Tier
Maker
All MIAX PEARL Market Makers ...................
1
2
14 See Securities Exchange Act Release Nos.
80915 (June 13, 2017), 82 FR 27912 (June 19, 2017)
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0.00–0.15 ......................................................
Above 0.15–0.40 ...........................................
(SR–PEARL–2017–29); 80914 (June 13, 2017), 82 FR
27910 (June 19, 2017) (SR–PEARL–2017–30).
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Taker
($0.25)
(0.40)
15 See
E:\FR\FM\18JNN1.SGM
$0.50
0.50
supra note 13.
18JNN1
Per contract rebates/fees
for non-penny classes
Maker **
($0.30)
(0.30)
Taker **
$1.05
1.05
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Origin
Per contract rebates/fees
for penny classes
Volume criteria
(percent)
Tier
Maker
3
4
5
6
Above
Above
Above
Above
0.40–0.65 ...........................................
0.65–1.00 or Above 2.25 in SPY ......
1.00–1.40 ...........................................
1.40 ....................................................
Origin
Volume criteria
(percent)
Tier
Non-Priority Customer, Firm, BD, and Non-MIAX PEARL Market Makers
1
2
3
4
5
6
0.00–0.15 ........
Above 0.15–
0.40.
Above 0.40–
0.65.
Above 0.65–
1.00.
Above 1.00–
1.40.
Above 1.40 ......
Taker
(0.40)
(0.47)
(0.48)
(0.48)
0.48
0.43
0.43
0.43
Per contract rebates/fees
for penny classes
Maker ∧
Taker
Per contract rebates/fees
for non-penny classes
Maker **
(0.60)
(0.65)
(0.70)
(0.85)
Taker **
1.03
1.02
1.02
1.02
Per contract rebates/fees
for non-penny classes
Maker ** ∧
Taker **
($0.25)
(0.40)
$0.50
0.50
($0.30)
(0.30)
$1.05
1.05
(0.40)
0.48
(0.60)
1.04
(0.47)
0.48
(0.65)
1.04
(0.48)
0.48
(0.70)
1.04
(0.48)
0.48
(0.85)
1.04
** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions in Non-Penny classes if the Member executes
more than 0.30% volume in Non-Penny classes, not including Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option classes. For purposes of
qualifying for such rates, the Exchange will aggregate the volume transacted by Members and their Affiliates in the following Origin types in Non-Penny classes: MIAX
PEARL Market Makers, and Non-Priority Customer, Firm, BD, and Non-MIAX PEARL Market Makers.
∧ Members may qualify for Maker Rebates equal to the greater of: (A) ($0.40) for Penny Classes and ($0.65) for Non-Penny Classes, or (B) the amount set forth in
the applicable Tier reached by the Member in the relevant Origin, if the Member and their Affiliates execute at least 1.50% volume in the relevant month, in Priority
Customer Origin type, in all options classes, not including Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option classes.
amozie on DSK3GDR082PROD with NOTICES1
Except as otherwise set forth herein,
the Volume Criteria is calculated based
on the total monthly volume executed
by the Member in all options classes on
MIAX PEARL in the relevant Origin
type, not including Excluded Contracts,
(as the numerator) expressed as a
percentage of (divided by) TCV (as the
denominator). In Tier 4 for MIAX
PEARL Market Makers, the alternative
Volume Criteria (above 2.25% in SPY)
is calculated based on the total monthly
volume executed by the Market Maker
solely in SPY options on MIAX PEARL
in the relevant Origin type, not
including Excluded Contracts, (as the
numerator) expressed as a percentage of
(divided by) SPY TCV (as the
denominator). The per contract
transaction rebates and fees shall be
applied retroactively to all eligible
volume once the threshold has been
reached by Member. The Exchange
aggregates the volume of Members and
their Affiliates in the Add/Remove
Tiered Fees. The per contract
transaction rebates and fees shall be
waived for transactions executed during
the opening and for transactions that
uncross the ABBO.
The proposed changes are scheduled
to become operative June 1, 2018.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 16
in general, and furthers the objectives of
Section 6(b)(4) of the Act,17 in that it is
an equitable allocation of reasonable
dues, fees and other charges among
Exchange members and issuers and
other persons using its facilities, and
6(b)(5) of the Act,18 in that it is designed
to prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The Exchange believes that the
proposed new Tier structures applicable
to Priority Customers, Market Makers
and Professional Members are
consistent with Section 6(b)(4) of the
Act in that they are fair, equitable and
not unreasonably discriminatory and
should continue to improve the market
quality for the Exchange’s Members and
consequently all market participants.
The proposed changes to the MIAX
PEARL Tier structures and rebates and
fees are fair and equitable and not
unreasonably discriminatory because
they apply equally to all MIAX PEARL
orders for the applicable origin type. All
similarly situated MIAX PEARL orders
are subject to the same rebate and fee
schedule, and access to the Exchange is
offered on terms that are not unfairly
discriminatory.
17 15
16 15
U.S.C. 78f(b).
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U.S.C. 78f(b)(1) and (b)(5).
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The Exchange believes that the
proposed new Tier structures applicable
to Priority Customers, Market Makers
and Professional Members are
consistent with Section 6(b)(5) of the
Act in that they promote equitable
access to the Exchange for all market
participants. To the extent that MIAX
PEARL Member volume is increased by
the proposal, market participants will
increasingly compete for the
opportunity to trade on the Exchange
including sending more orders to the
Exchange. The resulting increased
volume and liquidity will benefit all
Exchange participants by providing
more trading opportunities and tighter
spreads.
The specific volume thresholds of the
Tiers for Priority Customers, Market
Makers and Professional Members as
well as the rebates and fees are set based
upon business determinations and an
analysis of current volume levels. The
Exchange believes that the proposed
new Maker rebates and Taker fees are
generally within the range of rebates
and fees at other exchanges that have a
Maker-Taker fee structure.19 The
volume thresholds are intended to
continue to incentivize MIAX PEARL
Members to increase the number of
orders they send to the Exchange so that
they can achieve the next threshold, and
to encourage all market participants to
send more orders as well. Increasing the
number of orders sent to the Exchange
will in turn provide tighter and more
liquid markets, and therefore attract
19 See
E:\FR\FM\18JNN1.SGM
supra note 13.
18JNN1
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Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices
more business overall. Similarly, the
different rebate rates at the different Tier
levels are based on an analysis of
current revenue and volume levels and
are intended to provide continued
incentives to MIAX PEARL market
participants to increase the volume of
orders sent to, and contracts executed
on, the Exchange. The specific volume
thresholds of the Tiers and rates are set
in order to encourage MIAX PEARL
market participants to continue to reach
for higher tiers.
The proposed Maker rebate decrease
in Penny and Non-Penny Classes
applicable to Priority Customers and
Professional Members in the specified
Tiers is reasonable, equitable and not
unfairly discriminatory because all
similarly situated market participants
are subject to the same tiered rebates
and fees and access to the Exchange is
offered on terms that are not unfairly
discriminatory. For competitive and
business reasons, the Exchange initially
set its Maker rebates for Priority
Customer and Professional Member
orders higher than certain other options
exchanges that operate comparable
maker/taker pricing models.20 The
Exchange now believes that it is
appropriate to decrease those Maker
rebates so that they are more in line
with other exchanges, and will still
remain highly competitive such that
they should enable the Exchange to
continue to attract order flow and grow
market share.
The proposal to provide alternative
Maker rebates for options transactions
in all classes for Professional Members,
provided that the Member meets certain
volume criteria (the Member and their
Affiliates execute at least 1.50% volume
in the relevant month, in Priority
Customer Origin type, in all options
classes, not including Excluded
Contracts, as compared to the TCV in all
MIAX PEARL listed option classes), is
reasonable, equitable and not unfairly
discriminatory because all similarly
situated market participants are subject
to the same tiered rebates and fees and
access to the Exchange is offered on
terms that are not unfairly
discriminatory. The Exchange believes
that providing alternative Maker rebates
for options transactions in all classes for
Professional Members (if the Member
meets certain volume criteria relating to
Priority Customer volume) will
encourage Members to execute
additional Priority Customer and
Professional Member volume on the
Exchange. The Exchange believes that
additional Priority Customer and
Professional Member volume executed
on the Exchange will attract further
liquidity to the Exchange, which in turn
will benefit all market participants.
The Exchange’s proposal to modify
the Alternative Volume Criteria for Tier
4 based on SPY volume executed on the
Exchange is reasonable, equitable, and
not unfairly discriminatory, since it is
intended to incentivize order flow in
increased volume levels to be sent to the
Exchange for execution in an actively
traded options class. SPY options are
the most actively traded class. The
Exchange therefore believes that
incentivizing Members that concentrate
their trading activity in SPY options
will consequently increase order flow
sent to the Exchange, which will benefit
all market participants through
increased liquidity, tighter markets and
order interaction.
The proposed Taker fee increases
applicable to orders submitted by a
Member for the account of Priority
Customers and Professional Members
are reasonable, equitable and not
unfairly discriminatory because all
option orders of the same origin type are
subject to the same tiered Taker fees and
access to the Exchange is offered on
terms that are not unfairly
discriminatory. The Exchange initially
set its Taker fees at the various levels
based upon business determinations
and an analysis of current Taker fees
and volume levels at other exchanges.
For competitive and business reasons,
the Exchange initially set its Taker fees
for Priority Customer and Professional
Member orders lower than certain other
options exchanges that operate
comparable maker/taker pricing
models.21 The Exchange now believes
that it is appropriate to increase those
Taker fees so that they are more in line
with other exchanges, and will still
remain highly competitive such that
they should enable the Exchange to
continue to attract order flow and grow
market share. The Exchange notes that,
even as amended, its Taker fees for
Priority Customers and Professional
Members are generally lower than
certain other options exchanges
operating competing models.22 The
Exchange believes for these reasons that
increasing certain Taker fees for Priority
Customer and Professional Member
transactions in the specified Tiers is
equitable, reasonable and not unfairly
discriminatory, and thus consistent with
the Act.
Furthermore, the proposed increases
to the Taker fees for Priority Customer
transactions promotes just and equitable
principles of trade, fosters cooperation
21 Id.
20 See
supra note 14.
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22 Id.
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28291
and coordination with persons engaged
in facilitating transactions in securities,
and protects investors and the public
interest, because even with the
increases, the Exchange’s proposed
Taker fees for Priority Customer and
Professional Member orders still remain
highly competitive with certain other
options exchanges offering comparable
pricing models, and should enable the
Exchange to continue to attract order
flow and grow market share. The
Exchange believes that the amount of
such fees, as proposed to be increased,
will continue to encourage Members to
send Priority Customer and Professional
Member orders to the Exchange. To the
extent that order flow is increased by
the proposal, market participants will
increasingly compete for the
opportunity to trade on the Exchange,
including sending more orders which
will have the potential to be assessed
lower fees and higher rebates than
certain other competing options
exchanges. The resulting increased
volume and liquidity will benefit all
Exchange participants by providing
more trading opportunities and tighter
spreads.
The Exchange believes that its
proposal to offer tiered Taker fees
assessable to transactions solely in SPY,
QQQ, IWM, and VXX options is
consistent with other options markets
that also assess different transaction fees
for select option classes (including SPY,
QQQ, IWM, and VXX) as compared to
other option classes. The Exchange
believes that establishing separate tiered
pricing for these select products for
Priority Customers is reasonable,
equitable, and not unfairly
discriminatory because these select
products are generally more liquid than
other option classes. Additionally,
certain other competing options
exchanges differentiate pricing in a
similar manner.23
The Exchange believes that the
proposed non-substantive, technical
corrections to the note beneath the
transaction fee tables will promote just
and equitable principles of trade,
remove impediments to and perfect the
mechanism of a free and open market
and a national market system because it
will improve the readability of the Fee
Schedule. The proposed changes do not
alter the substantive application of fees
or rebates. As such, the proposed
change is intended to foster cooperation
and coordination with persons engaged
in facilitating transactions in securities
23 See Nasdaq ISE Schedule of Fees, Section I,
Regular Order Fees and Rebates; see also Nasdaq
Options Market LLC (‘‘NOM’’) Chapter XV, Section
2, ‘‘Nasdaq Options Market Fees and Rebates.’’
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18JNN1
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and would remove impediments to and
perfect the mechanism of a free and
open market and a national market
system. In particular, the Exchange
believes that the proposed rule change
will provide greater clarity to Members
and the public regarding the Exchange’s
Fee Schedule, and it is in the public
interest for rules to be accurate and
concise so as to eliminate the potential
for confusion.
amozie on DSK3GDR082PROD with NOTICES1
B. Self-Regulatory Organization’s
Statement on Burden on Competition
MIAX PEARL does not believe that
the proposed rule changes will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
changes in the Tier structure for the
market participants should continue to
encourage the provision of liquidity that
enhances the quality of the Exchange’s
markets and increases the number of
trading opportunities on MIAX PEARL
for all participants who will be able to
compete for such opportunities. The
proposed rule change should enable the
Exchange to continue to attract and
compete for order flow with other
exchanges. However, this competition
does not create an undue burden on
competition but rather offers all market
participants the opportunity to receive
the benefit of competitive pricing.
The proposed Maker rebate decreases,
alternative Maker rebates, and Taker fee
increases as well as the tiered Taker fees
for SPY, QQQ, IWM and VXX options,
are intended to keep the Exchange’s fees
highly competitive with those of other
exchanges, and to encourage liquidity
and should enable the Exchange to
continue to attract and compete for
order flow with other exchanges which
offer comparable Maker rebates and
Taker fees and enhanced pricing on
transactions in select symbols.
Further, the Exchange believes that
the proposed modification to the
alternative Volume Criteria threshold in
Tier 4 based on SPY options volume
applicable to Market Makers will
continue to provide incentives to those
Market Makers that concentrate their
trading activity in SPY options to send
additional SPY orders and creates
additional opportunity for additional
liquidity to the market.
The Exchange does not believe that
the proposed rule change to make
technical corrections to its rules will
impose any burden on competition not
necessary or appropriate in furtherance
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18:00 Jun 15, 2018
Jkt 244001
of the purposes of the Act. This aspect
of the proposed rule change is not
designed to address any competitive
issues but rather is designed to add
additional clarity and to remedy minor,
non-substantive issues in the text of the
Fee Schedule.
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
rebates and fees to remain competitive
with other exchanges and to attract
order flow. The Exchange believes that
the proposed rule changes reflect this
competitive environment because they
modify the Exchange’s fees in a manner
that encourages market participants to
continue to provide liquidity and to
send order flow to the Exchange.
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,24 and Rule
19b–4(f)(2) 25 thereunder. At any time
within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
PEARL–2018–13 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–PEARL–2018–13. 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 website (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 website 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–PEARL–2018–13 and
should be submitted on or before July 9,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–12935 Filed 6–15–18; 8:45 am]
BILLING CODE 8011–01–P
24 15
U.S.C. 78s(b)(3)(A)(ii).
25 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00111
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E:\FR\FM\18JNN1.SGM
CFR 200.30–3(a)(12).
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]]>Agencies
[Federal Register Volume 83, Number 117 (Monday, June 18, 2018)]
[Notices]
[Pages 28285-28292]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12935]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83419; File No. SR-PEARL-2018-13]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX
PEARL Fee Schedule
June 12, 2018.
Pursuant to the provisions of Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on May 31, 2018, 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.
---------------------------------------------------------------------------
\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 PEARL Fee
Schedule (the ``Fee Schedule'').
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings/pearl at MIAX
PEARL'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 Add/Remove Tiered Rebates/Fees
set forth in Section 1(a) of the Fee Schedule to (i) modify the volume
thresholds applicable to transactions for (A) Priority Customers,\3\
(B) MIAX PEARL Market Makers,\4\ and (C) Non-Priority Customers, Firms,
Broker-Dealers and Non-MIAX PEARL Market Makers (collectively herein
``Professional Members''); (ii) add a new Tier 6 and corresponding
rebates and fees applicable to transactions for Priority Customers and
Professional Members; (iii) decrease Maker (as defined below) rebates
in certain Tiers (as defined below) for options transactions in Penny
classes (as defined below) and Non-Penny classes (as defined below) for
Priority Customers and Professional Members; (iv) increase Taker (as
defined below) fees in all Tiers for options transactions in Penny
Classes for Priority Customers, and increase the Taker fees in Tier 2
applicable to options transactions in Penny and Non-Penny classes for
Professional Members; (v) provide alternative Maker rebates for options
transactions in all classes for Professional Members, provided that the
Member meets certain volume criteria; and (vi) create new tiered fee
structures for Taker fees in the symbols SPY, QQQ, IWM and VXX for
Priority Customers. The Exchange also proposes to make certain non-
substantive, technical corrections to the Fee Schedule, as described
below.
---------------------------------------------------------------------------
\3\ ``Priority Customer'' means a person or entity that (i) is
not a broker or dealer in securities, and (ii) does not place more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). See Exchange Rule
100, including Interpretations and Policies .01.
\4\ ``Market Maker'' means a Member registered with the Exchange
for the purpose of making markets in options contracts traded on the
Exchange. See the Definitions Section of the Fee Schedule and
Exchange Rule 100.
---------------------------------------------------------------------------
The Exchange currently assesses transaction rebates and fees to all
market participants which are based upon the total monthly volume
executed by the Member \5\ on MIAX PEARL in the relevant, respective
origin type (not including Excluded Contracts) \6\ expressed as a
percentage of TCV.\7\ In addition, the per contract transaction rebates
and fees are applied retroactively to all eligible volume for that
origin type once the respective threshold tier (``Tier'') has been
reached by the Member. The Exchange aggregates the volume of Members
and their Affiliates.\8\ Members that place resting liquidity, i.e.,
orders resting on
[[Page 28286]]
the book of the MIAX PEARL System,\9\ are paid the specified ``maker''
rebate (each a ``Maker''), and Members that execute against resting
liquidity are assessed the specified ``taker'' fee (each a ``Taker'').
For opening transactions and ABBO uncrossing transactions, per contract
transaction rebates and fees are waived for all market participants.
Finally, Members are assessed lower transaction fees and receive lower
rebates for order executions in standard option classes in the Penny
Pilot Program \10\ (``Penny classes'') than for order executions in
standard option classes which are not in the Penny Pilot Program
(``Non-Penny classes''), where Members are assessed higher transaction
fees and receive higher rebates. Transaction rebates and fees in
Section (1)(a) of the Fee Schedule are currently assessed according to
the following tables:
---------------------------------------------------------------------------
\5\ ``Member'' means an individual or organization that is
registered with the Exchange pursuant to Chapter II of the Exchange
Rules for purposes of trading on the Exchange as an ``Electronic
Exchange Member'' or ``Market Maker.'' Members are deemed
``members'' under the Exchange Act. See the Definitions Section of
the Fee Schedule and Exchange Rule 100.
\6\ ``Excluded Contracts'' means any contracts routed to an away
market for execution. See the Definitions Section of the Fee
Schedule.
\7\ ``TCV'' means total consolidated volume calculated as the
total national volume in those classes listed on MIAX PEARL for the
month for which the fees apply, excluding consolidated volume
executed during the period time in which the Exchange experiences an
``Exchange System Disruption'' (solely in the option classes of the
affected Matching Engine (as defined below)). The term Exchange
System Disruption, which is defined in the Definitions section of
the Fee Schedule, means an outage of a Matching Engine or collective
Matching Engines for a period of two consecutive hours or more,
during trading hours. The term Matching Engine, which is also
defined in the Definitions section of the Fee Schedule, is a part of
the MIAX PEARL electronic system that processes options orders and
trades on a symbol-by-symbol basis. Some Matching Engines will
process option classes with multiple root symbols, and other
Matching Engines may be dedicated to one single option root symbol
(for example, options on SPY may be processed by one single Matching
Engine that is dedicated only to SPY). A particular root symbol may
only be assigned to a single designated Matching Engine. A
particular root symbol may not be assigned to multiple Matching
Engines. The Exchange believes that it is reasonable and appropriate
to select two consecutive hours as the amount of time necessary to
constitute an Exchange System Disruption, as two hours equates to
approximately 1.4% of available trading time per month. The Exchange
notes that the term ``Exchange System Disruption'' and its meaning
have no applicability outside of the Fee Schedule, as it is used
solely for purposes of calculating volume for the threshold tiers in
the Fee Schedule. See the Definitions Section of the Fee Schedule.
\8\ ``Affiliate'' means (i) an affiliate of a Member of at least
75% common ownership between the firms as reflected on each firm's
Form BD, Schedule A, or (ii) the Appointed Market Maker of an
Appointed EEM (or, conversely, the Appointed EEM of an Appointed
Market Maker). An ``Appointed Market Maker'' is a MIAX PEARL Market
Maker (who does not otherwise have a corporate affiliation based
upon common ownership with an EEM) that has been appointed by an EEM
and an ``Appointed EEM'' is an EEM (who does not otherwise have a
corporate affiliation based upon common ownership with a MIAX PEARL
Market Maker) that has been appointed by a MIAX PEARL Market Maker,
pursuant to the process described in the Fee Schedule. See the
Definitions Section of the Fee Schedule.
\9\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
\10\ See Securities Exchange Act Release No. 79778 (January 12,
2017), 82 FR 6662 (January 19, 2017) (SR-PEARL-2016-01).
----------------------------------------------------------------------------------------------------------------
Per contract rebates/ Per contract rebates/
fees for penny classes fees for non-penny
Origin Tier Volume criteria -------------------------- classes
(percent) -------------------------
Maker Taker * Maker Taker
----------------------------------------------------------------------------------------------------------------
Priority Customer............ 1 0.00-0.05....... ($0.25) $0.42 ($0.85) $0.87
2 Above 0.05-0.35. (0.40) 0.42 (1.05) 0.86
3 Above 0.35--0.50 (0.50) 0.42 (1.05) 0.85
4 Above 0.50-0.75. (0.53) 0.42 (1.05) 0.84
5 Above 0.75...... (0.54) 0.42 (1.05) 0.84
----------------------------------------------------------------------------------------------------------------
* For all Penny Classes other than SPY, QQQ, IWM, and VXX. For SPY, the Priority Customer Taker Fee shall be
$0.38 per contract. For QQQ, IWM, and VXX, the Priority Customer Taker Fee shall be $0.40 per contract.
----------------------------------------------------------------------------------------------------------------
Per contract rebates/ Per contract rebates/
fees for penny classes fees for non-penny
Origin Tier Volume criteria -------------------------- classes
(percent) -------------------------
Maker Taker Maker ** Taker **
----------------------------------------------------------------------------------------------------------------
All MIAX PEARL Market Makers. 1 0.00-0.05....... ($0.25) $0.50 ($0.30) $1.05
2 Above 0.05-0.25. (0.40) 0.50 (0.30) 1.05
3 Above 0.25-0.50. (0.40) 0.48 (0.60) 1.03
4 Above 0.50-0.75 (0.47) 0.43 (0.65) 1.02
or Above 2.0 in
SPY.
5 Above 0.75-1.00. (0.48) 0.43 (0.70) 1.02
6 Above 1.00...... (0.48) 0.43 (0.85) 1.02
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Per contract rebates/ Per contract rebates/
fees for penny classes fees for non-penny
Origin Tier Volume criteria -------------------------- classes
(percent) -------------------------
Maker Taker Maker ** Taker **
----------------------------------------------------------------------------------------------------------------
Non-Priority Customer, Firm, 1 0.00-0.10....... ($0.25) $0.50 ($0.30) $1.05
BD, and Non-MIAX PEARL 2 Above 0.10-0.50. (0.40) 0.49 (0.60) 1.04
Market Makers.
3 Above 0.50-0.75. (0.45) 0.48 (0.65) 1.04
4 Above 0.75-1.00. (0.48) 0.48 (0.70) 1.04
5 Above 1.00...... (0.48) 0.48 (0.85) 1.04
----------------------------------------------------------------------------------------------------------------
** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions
in Non-Penny classes if the Member executes more than 0.30% volume in Non-Penny classes, not including
Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option classes. For purposes of qualifying
for such rates, the Exchange will aggregate the volume transacted by Members and their Affiliates in the
following Origin types in Non-Penny classes: MIAX PEARL Market Makers, and Non-Priority Customer, Firm, BD,
and Non-MIAX PEARL Market Makers.
Volume Threshold Tiers
The Exchange proposes to modify the monthly volume thresholds
applicable to (i) Priority Customers, (ii) MIAX PEARL Market Makers,
and (iii) Professional Members.
Priority Customers
Specifically, with regard to transactions for Priority Customers,
the Exchange proposes to adjust the calculation threshold of Tier 1's
volume criteria from 0.00% up to 0.05% of the total monthly volume
executed by the Member on MIAX PEARL, not including Excluded Contracts,
divided by the TCV, to become above 0.00% up to 0.10% of the total
monthly volume executed by the Member on MIAX PEARL, not including
Excluded Contracts, divided by the TCV.
Further, the Exchange proposes to adjust the calculation threshold
of Priority Customer Tier 2's volume criteria from above 0.05% up to
0.35% of the total monthly volume executed by the Member on MIAX PEARL,
not including Excluded Contracts, divided by the TCV, to become above
0.10% up to 0.35% of the total monthly volume executed by the Member on
MIAX PEARL, not including Excluded Contracts, divided by the TCV. The
Exchange does not propose any adjustment to Tier 3 or Tier 4 volume
thresholds for Priority Customer transactions.
The Exchange further proposes to adjust the calculation threshold
of Priority Customer Tier 5's volume criteria from above 0.75% of the
total monthly volume executed by the Member on MIAX PEARL, not
including Excluded Contracts, divided by the TCV, to become above 0.75%
up to 1.25% of the total monthly volume executed by the Member on MIAX
PEARL, not including Excluded Contracts, divided by the TCV.
The Exchange proposes to add a new Tier 6 threshold applicable to
all Priority Customer transactions and corresponding rebates and fees.
The new Tier 6 threshold volume criteria shall be calculated as above
1.25% of the total monthly volume executed by the Member on MIAX PEARL,
not including Excluded Contracts, divided by the TCV. The new Tier 6
rebates and fees shall be as follows:
[[Page 28287]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Priority customer Per contract rebates/fees for penny classes Per contract rebates/
------------------------------------------------------------------------------------------------------------------------------- fees for non-penny
QQQ, IWM, classes
Tier Volume criteria (percent) Maker Taker * SPY taker VXX taker -------------------------
11 12 Maker Taker
--------------------------------------------------------------------------------------------------------------------------------------------------------
6..................................... Above 1.25........................ ($0.54) $0.43 $0.38 $0.40 ($1.05) $0.84
--------------------------------------------------------------------------------------------------------------------------------------------------------
* For all Penny Classes other than SPY, QQQ, IWM, and VXX.
The Exchange believes that the proposed modified monthly volume
thresholds, as well as the new rebates and fees in Tier 6, will
continue to provide appropriate incentives for Exchange Members to
provide aggressive liquidity in Priority Customer transactions so that
they can achieve sufficient rebates and lower fees. The Exchange
believes that this amount of volume should continue to make the MIAX
PEARL marketplace an attractive venue where the Exchange's Members are
incentivized to submit Priority Customer orders, deepening and
enhancing the quality of the MIAX PEARL marketplace. This should in
turn provide more trading opportunities and tighter spreads for other
market participants and result in a corresponding increase in order
flow from such other market participants.
---------------------------------------------------------------------------
\11\ Proposed fee change to be discussed further below.
\12\ Proposed fee change to be discussed further below.
---------------------------------------------------------------------------
Market Makers
The Exchange proposes to modify the monthly volume thresholds
applicable to the Exchange's Market Makers and to adjust the thresholds
in all Tiers. Specifically, the Exchange proposes to adjust the
calculation threshold of Tier 1's volume criteria from 0.00% up to
0.05% of the total monthly volume executed by the Member on MIAX PEARL,
not including Excluded Contracts, divided by the TCV, to become above
0.00% up to 0.15% of the total monthly volume executed by the Member on
MIAX PEARL, not including Excluded Contracts, divided by the TCV.
Further, the Exchange proposes to adjust the calculation threshold
of Tier 2's volume criteria for Market Makers from above 0.05% up to
0.25% of the total monthly volume executed by the Member on MIAX PEARL,
not including Excluded Contracts, divided by the TCV, to become above
0.15% up to 0.40% of the total monthly volume executed by the Member on
MIAX PEARL, not including Excluded Contracts, divided by the TCV.
The Exchange proposes to adjust the calculation threshold of Tier
3's volume criteria for Market Makers from above 0.25% up to 0.50% of
the total monthly volume executed by the Member on MIAX PEARL, not
including Excluded Contracts, divided by the TCV, to become above 0.40%
up to 0.65% of the total monthly volume executed by the Member on MIAX
PEARL, not including Excluded Contracts, divided by the TCV.
The Exchange additionally proposes to adjust the calculation
threshold of Tier 4's volume criteria for Market Makers from above
0.50% up to 0.75% of the total monthly volume executed by the Member on
MIAX PEARL, not including Excluded Contracts, divided by the TCV to
become above 0.65% up to 1.00% of the total monthly volume executed by
the Member on MIAX PEARL, not including Excluded Contracts, divided by
the TCV.
The Exchange also proposes to modify the alternative Volume
Criteria to Tier 4 based upon the total monthly volume executed by a
Market Maker solely in SPY options on MIAX PEARL, expressed as a
percentage of total consolidated national volume in SPY options.
Pursuant to this alternative Volume Criteria, a Market Maker could
currently reach the Tier 4 threshold if the Market Maker's total
executed monthly volume in SPY options on MIAX PEARL is above 2.0% of
total consolidated national monthly volume in SPY options. The Exchange
now proposes that a Market Maker can reach the Tier 4 threshold if the
Market Maker's total executed monthly volume in SPY options on MIAX
PEARL is above 2.25% of the total consolidated national monthly volume
in SPY options. The Exchange believes that the proposed modification to
the alternative Volume Criteria threshold in Tier 4 for Market Makers
in SPY options (increasing the threshold amount from 2.0% to 2.25%)
will continue to provide a sufficient incentive to those Market Makers
that concentrate their trading activity in limited options classes
(such as SPY options) to reach a higher tier. The alternative Volume
Criteria threshold in Tier 4 for Market Makers in SPY options is also
discussed in the note beneath the transaction fee tables, which
provides more explanation on the alternative threshold. Accordingly,
the Exchange also proposes to change the threshold amount (increasing
it from 2.0% to 2.25%) in that note beneath the tables. The Exchange
also proposes to make another non-substantive technical correction to
that same sentence in the note beneath the transaction fee tables to
correct an inaccurate cross-reference. Presently, the note reads ``[i]n
Tier 3 for MIAX PEARL Market Makers, the alternative Volume Criteria .
. .'' However, the Tier referenced in that note should be to Tier 4,
not Tier 3. Accordingly, the Exchange proposes to change the reference
to Tier 4. This particular proposed change does not impact any fees
substantively and only serves to identify the correct Tier.
Further, the Exchange proposes to adjust the calculation threshold
of Tier 5's volume criteria for Market Makers from above 0.75% up to
1.00% of the total monthly volume executed by the Member on MIAX PEARL,
not including Excluded Contracts, divided by the TCV, to become above
1.00% up to 1.40% of the total monthly volume executed by the Member on
MIAX PEARL, not including Excluded Contracts, divided by the TCV.
The Exchange additionally proposes to adjust the calculation
threshold of Tier 6's volume criteria for Market Makers from above
1.00% of the total monthly volume executed by the Member on MIAX PEARL,
not including Excluded Contracts, divided by the TCV, to become above
1.40% of the total monthly volume executed by the Member on MIAX PEARL,
not including Excluded Contracts, divided by the TCV.
Professional Members
The Exchange proposes to modify the monthly volume thresholds
applicable to all Professional Members to adjust the thresholds in all
Tiers as well as to add a new Tier 6 threshold and corresponding Tier 6
rebates and fees. Specifically, the Exchange proposes to adjust the
calculation threshold of Tier 1's volume criteria for Professional
Members from 0.00% up to 0.10% of the total monthly volume executed by
the Member on MIAX PEARL, not including Excluded Contracts, divided by
the TCV, to become above 0.00% up to 0.15% of the total monthly volume
executed by the Member on MIAX PEARL, not including Excluded Contracts,
divided by the TCV.
Further, the Exchange proposes to adjust the calculation threshold
of Tier 2's volume criteria for Professional Members from above 0.10%
up to
[[Page 28288]]
0.50% of the total monthly volume executed by the Member on MIAX PEARL,
not including Excluded Contracts, divided by the TCV, to become above
0.15% up to 0.40% of the total monthly volume executed by the Member on
MIAX PEARL, not including Excluded Contracts, divided by the TCV.
Further, the Exchange proposes to adjust the calculation threshold
of Tier 3's volume criteria for Professional Members from above 0.50%
up to 0.75% of the total monthly volume executed by the Member on MIAX
PEARL, not including Excluded Contracts, divided by the TCV, to become
above 0.40% up to 0.65% of the total monthly volume executed by the
Member on MIAX PEARL, not including Excluded Contracts, divided by the
TCV.
The Exchange additionally proposes to adjust the calculation
threshold of Tier 4's volume criteria for Professional Members from
above 0.75% up to 1.00% of the total monthly volume executed by the
Member on MIAX PEARL, not including Excluded Contracts, divided by the
TCV, to become above 0.65% up to 1.00% of the total monthly volume
executed by the Member on MIAX PEARL, not including Excluded Contracts,
divided by the TCV.
The Exchange additionally proposes to adjust the calculation
threshold of Tier 5's volume criteria for Professional Members from
above 1.00% of the total monthly volume executed by the Member on MIAX
PEARL, not including Excluded Contracts, divided by the TCV, to become
above 1.00% up to 1.40% of the total monthly volume executed by the
Member on MIAX PEARL, not including Excluded Contracts, divided by the
TCV.
The Exchange proposes to add a new Tier 6 threshold applicable to
all MIAX PEARL Professional Members and corresponding rebates and fees.
The new Tier 6 threshold volume criteria shall be calculated as above
1.40% of the total monthly volume executed by the Member on MIAX PEARL,
not including Excluded Contracts, divided by the TCV. The new Tier 6
rebates and fees shall be as follows:
----------------------------------------------------------------------------------------------------------------
Non-priority customer, firm, BD, and non-MIAX Per contract rebates/fees for Per contract rebates/fees for
PEARL market makers penny classes non-penny classes
----------------------------------------------------------------------------------------------------------------
Volume criteria
Tier (percent) Maker Taker Maker ** Taker **
----------------------------------------------------------------------------------------------------------------
6........................ Above 1.40........... ($0.48) $0.48 ($0.85) $1.04
----------------------------------------------------------------------------------------------------------------
** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions
in Non-Penny classes if the Member executes more than 0.30% volume in Non-Penny classes, not including
Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option classes. For purposes of qualifying
for such rates, the Exchange will aggregate the volume transacted by Members and their Affiliates in the
following Origin types in Non-Penny classes: MIAX PEARL Market Makers, and Non-Priority Customer, Firm, BD,
and Non-MIAX PEARL Market Makers.
The Exchange believes that the modified new monthly thresholds and
new rebates and fees in Tier 6 should continue to provide sufficient
incentives for Professional Members to aggressively provide liquidity
so that they can achieve higher rebates and fees. The Exchange believes
that this volume should continue to make the MIAX PEARL marketplace an
attractive venue where the Professional Members are incentivized to
submit orders, deepening and enhancing the quality of the MIAX PEARL
marketplace. This should in turn provide more trading opportunities and
tighter spreads for other market participants and result in a
corresponding increase in order flow from such other market
participants.
Maker Rebates
The Exchange proposes to decrease the Maker rebate amounts in
certain Tiers as described below for Penny and Non-Penny classes for
Priority Customers and Professional Members.
Priority Customers
Specifically, the Exchange proposes to decrease the Maker rebates
in Tiers 3, 4 and 5 for Penny classes and in Tiers 2 through 5 in Non-
Penny classes for Priority Customer transactions. For options
transactions in Penny classes, the Exchange proposes to decrease the
Maker rebate in Tier 3 from ($0.50) to ($0.45), in Tier 4 from ($0.53)
to ($0.52) and in Tier 5 from ($0.54) to ($0.53). For Priority Customer
options transactions in Non-Penny classes, the Exchange proposes to
decrease the Maker rebates in Tier 2 from ($1.05) to ($0.95), in Tier 3
from ($1.05) to ($1.00), in Tier 4 from ($1.05) to ($1.03) and in Tier
5 from ($1.05) to ($1.04).
Professional Members
The Exchange proposes to decrease the Maker rebates applicable to
Professional Members in Tiers 3 and 4 in Penny classes and in Tiers 2
through 5 in Non-Penny classes. For options transactions in Penny
classes, the Exchange proposes to decrease the Maker rebates in Tier 3
from ($0.45) to ($0.40) and in Tier 4 from ($0.48) to ($0.47). For
Professional Member options transactions in Non-Penny classes, the
Exchange proposes to decrease the Maker rebates in Tier 2 from ($0.60)
to ($0.30), in Tier 3 from ($0.65) to ($0.60), in Tier 4 from ($0.70)
to ($0.65) and in Tier 5 from ($0.85) to ($0.70).
The purpose of decreasing the amount of the Maker rebates is to
bring the Exchange's rebate amounts more into line with the rebate
amounts offered at other Exchanges.\13\ The Exchange believes that the
decreased amounts will continue to provide a sufficient incentive to
Members to execute Priority Customer orders and to Professional Members
to execute volume at the Exchange. The Exchange believes that this
Maker volume by Members in both Penny and Non-Penny classes will
continue to attract liquidity to the Exchange, which in turn will
benefit all market participants.
---------------------------------------------------------------------------
\13\ See Cboe BZX Options Exchange Fee Schedule under
``Transaction Fees''; see also Nasdaq Options Market LLC (``NOM'')
Chapter XV, Section 2, ``Nasdaq Options Market Fees and Rebates.''
---------------------------------------------------------------------------
The Exchange also proposes to provide alternative Maker rebates for
options transactions in all classes for Professional Members, provided
that the Member meets certain volume criteria. Specifically, Members
may qualify for Maker rebates equal to the greater of: (A) ($0.40) for
Penny Classes and ($0.65) for Non-Penny Classes, or (B) the amount set
forth in the applicable Tier reached by the Member in the relevant
Origin, if the Member and their Affiliates execute at least 1.50%
volume in the relevant month, in Priority Customer Origin type, in all
options classes, not including Excluded Contracts, as compared to the
TCV in all MIAX PEARL listed option classes. For example, if a Member
met the monthly volume criteria and reached Tier 1 for Professional
Members' options transactions but reached the Priority
[[Page 28289]]
Customer monthly threshold of over 1.50% of TCV, the Member would
receive a rebate of ($0.40) per contract in Penny Classes (instead of
($0.25) per contract) and ($0.65) per contract in Non-Penny Classes
(instead of ($0.30) per contract). The member would receive the Taker
rates associated with the Tier, $0.50 for Penny and $1.05 for Non-
Penny. Also, for purposes of qualifying for such rates, the Exchange
will aggregate the Priority Customer volume transacted by Members and
their Affiliates. The purpose of providing alternative Maker rebate
rates for options transactions in all classes for Professional Members
(if the Member meets certain volume criteria) is to encourage Members
to execute additional Priority Customer and Professional Member volume
on the Exchange. The Exchange believes that additional Priority
Customer and Professional Member volume executed on the Exchange will
attract further liquidity to the Exchange, which in turn will benefit
all market participants.
Taker Fees
The Exchange proposes to: (i) Increase the Taker fees in all Tiers
for options transactions in all Penny classes (other than SPY, QQQ,
IWM, and VXX) with respect to Priority Customer orders; and (ii)
increase the Taker fee for Professional Members in Tier 2 for options
transactions in Penny and Non-Penny classes.
Specifically, the Exchange proposes to increase the Taker fees for
Priority Customer orders in options in Penny Classes in Tier 1 from
$0.42 to $0.48, in Tier 2 from $0.42 to $0.46, in Tier 3 from $0.42 to
$0.44, in Tier 4 from $0.42 to $0.44 and in Tier 5 from $0.42 to $0.44.
The Exchange also proposes to increase the Taker fee for
Professional Members for options transactions in Penny classes in Tier
2 from $0.49 to $0.50 and in Non-Penny classes in Tier 2 from $1.04 to
$1.05.
The purpose of increasing the specified Taker fees and decreasing
Maker rebates is for business and competitive reasons. As a new
exchange, in order to attract order flow, the Exchange initially set
its Maker rebates and Taker fees so that they were meaningfully higher/
lower than other options exchanges that operate comparable maker/taker
pricing models.\14\ The Exchange now believes that it is appropriate to
adjust these Maker rebates and Taker fees so that they are more in line
with other exchanges, but will still remain highly competitive such
that they should enable the Exchange to continue to attract order flow
and grow market share.\15\
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\14\ See Securities Exchange Act Release Nos. 80915 (June 13,
2017), 82 FR 27912 (June 19, 2017) (SR-PEARL-2017-29); 80914 (June
13, 2017), 82 FR 27910 (June 19, 2017) (SR-PEARL-2017-30).
\15\ See supra note 13.
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SPY Taker Fees
The Exchange proposes to amend the Priority Customer table to
establish a separate tiered structure of Taker fees for options on SPY.
The Exchange currently charges a Taker fee of $0.38 for all
transactions on behalf of Priority Customers in SPY options. The
Exchange proposes instead to assess the following Taker fees for
Priority Customer orders for SPY options corresponding to the Tiers and
volume thresholds which are applicable to Priority Customer orders:
------------------------------------------------------------------------
------------------------------------------------------------------------
Tier 1.................................................. $0.44
Tier 2.................................................. 0.43
Tier 3.................................................. 0.42
Tier 4.................................................. 0.41
Tier 5.................................................. 0.40
Tier 6.................................................. 0.38
------------------------------------------------------------------------
Further, in order to provide a clearer explanation of the requirements
for achieving the specified Volume Criteria thresholds in SPY, the
Exchange proposes to add a new column setting forth the SPY Taker fees
in Section 1(a) of the Fee Schedule under ``Per Contract Rebates/Fees
for Penny Classes''.
QQQ, IWM and VXX Taker Fees
The Exchange further proposes to amend the Priority Customer table
to establish a separate tiered structure of Taker fees for options
transactions in QQQ, IWM and VXX. The Exchange currently charges a
Taker fee of $0.40 for all transactions on behalf of Priority Customers
in QQQ, IWM and VXX options. The Exchange proposes instead to assess
the following Taker fees for Priority Customer orders for QQQ, IWM and
VXX options corresponding to the Tiers and volume thresholds which are
applicable to Priority Customer orders:
------------------------------------------------------------------------
------------------------------------------------------------------------
Tier 1.................................................. $0.47
Tier 2.................................................. 0.46
Tier 3.................................................. 0.44
Tier 4.................................................. 0.43
Tier 5.................................................. 0.42
Tier 6.................................................. 0.40
------------------------------------------------------------------------
Further, in order to provide a clearer explanation of the requirements
for achieving the specified Volume Criteria thresholds in in the
symbols QQQ, IWM and VXX, the Exchange proposes to add a new column
setting forth the Taker fees for such symbols in Section 1(a) of the
Fee Schedule under ``Per Contract Rebates/Fees for Penny Classes''.
Since the Exchange is adding the new columns to Section 1(a) of the
Fee Schedule for SPY and QQQ, IWM, VXX Taker Fees for Priority Customer
orders, the Exchange proposes to delete the last sentence in the
asterisked footnote below the Priority Customer table which contained
the Taker fees for those symbols.
With all proposed changes, Section 1(a) of the Fee Schedule shall
be the following:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Per contract rebates/fees for penny classes Per contract rebates/
---------------------------------------------------- fees for non-penny
Origin Tier Volume criteria classes
(percent) Maker Taker * SPY taker QQQ, IWM, -------------------------
VXX taker Maker Taker
--------------------------------------------------------------------------------------------------------------------------------------------------------
Priority Customer................... 1 0.00-0.10.............. ($0.25) $0.48 $0.44 $0.47 ($0.85) $0.87
2 Above 0.10-0.35........ (0.40) 0.46 0.43 0.46 (0.95) 0.86
3 Above 0.35-0.50........ (0.45) 0.44 0.42 0.44 (1.00) 0.85
4 Above 0.50-0.75........ (0.52) 0.44 0.41 0.43 (1.03) 0.84
5 Above 0.75-1.25........ (0.53) 0.44 0.40 0.42 (1.04) 0.84
6 Above 1.25............. (0.54) 0.43 0.38 0.40 (1.05) 0.84
--------------------------------------------------------------------------------------------------------------------------------------------------------
* For all Penny Classes other than SPY, QQQ, IWM, and VXX.
----------------------------------------------------------------------------------------------------------------
Per contract rebates/ Per contract rebates/
fees for penny classes fees for non-penny
Origin Tier Volume criteria -------------------------- classes
(percent) -------------------------
Maker Taker Maker ** Taker **
----------------------------------------------------------------------------------------------------------------
All MIAX PEARL Market Makers. 1 0.00-0.15....... ($0.25) $0.50 ($0.30) $1.05
2 Above 0.15-0.40. (0.40) 0.50 (0.30) 1.05
[[Page 28290]]
3 Above 0.40-0.65. (0.40) 0.48 (0.60) 1.03
4 Above 0.65-1.00 (0.47) 0.43 (0.65) 1.02
or Above 2.25
in SPY.
5 Above 1.00-1.40. (0.48) 0.43 (0.70) 1.02
6 Above 1.40...... (0.48) 0.43 (0.85) 1.02
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Per contract rebates/ Per contract rebates/
fees for penny classes fees for non-penny
Volume criteria -------------------------- classes
Origin Tier (percent) -------------------------
Maker Taker Maker **
[supcaret] [supcaret] Taker **
----------------------------------------------------------------------------------------------------------------
Non-Priority Customer, Firm, 1 0.00-0.15....... ($0.25) $0.50 ($0.30) $1.05
BD, and Non-MIAX PEARL
Market Makers.
2 Above 0.15-0.40. (0.40) 0.50 (0.30) 1.05
3 Above 0.40-0.65. (0.40) 0.48 (0.60) 1.04
4 Above 0.65-1.00. (0.47) 0.48 (0.65) 1.04
5 Above 1.00-1.40. (0.48) 0.48 (0.70) 1.04
6 Above 1.40...... (0.48) 0.48 (0.85) 1.04
----------------------------------------------------------------------------------------------------------------
** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions
in Non-Penny classes if the Member executes more than 0.30% volume in Non-Penny classes, not including
Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option classes. For purposes of qualifying
for such rates, the Exchange will aggregate the volume transacted by Members and their Affiliates in the
following Origin types in Non-Penny classes: MIAX PEARL Market Makers, and Non-Priority Customer, Firm, BD,
and Non-MIAX PEARL Market Makers.
[supcaret] Members may qualify for Maker Rebates equal to the greater of: (A) ($0.40) for Penny Classes and
($0.65) for Non-Penny Classes, or (B) the amount set forth in the applicable Tier reached by the Member in the
relevant Origin, if the Member and their Affiliates execute at least 1.50% volume in the relevant month, in
Priority Customer Origin type, in all options classes, not including Excluded Contracts, as compared to the
TCV in all MIAX PEARL listed option classes.
Except as otherwise set forth herein, the Volume Criteria is
calculated based on the total monthly volume executed by the Member in
all options classes on MIAX PEARL in the relevant Origin type, not
including Excluded Contracts, (as the numerator) expressed as a
percentage of (divided by) TCV (as the denominator). In Tier 4 for MIAX
PEARL Market Makers, the alternative Volume Criteria (above 2.25% in
SPY) is calculated based on the total monthly volume executed by the
Market Maker solely in SPY options on MIAX PEARL in the relevant Origin
type, not including Excluded Contracts, (as the numerator) expressed as
a percentage of (divided by) SPY TCV (as the denominator). The per
contract transaction rebates and fees shall be applied retroactively to
all eligible volume once the threshold has been reached by Member. The
Exchange aggregates the volume of Members and their Affiliates in the
Add/Remove Tiered Fees. The per contract transaction rebates and fees
shall be waived for transactions executed during the opening and for
transactions that uncross the ABBO.
The proposed changes are scheduled to become operative June 1,
2018.
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \16\ in general, and
furthers the objectives of Section 6(b)(4) of the Act,\17\ in that it
is an equitable allocation of reasonable dues, fees and other charges
among Exchange members and issuers and other persons using its
facilities, and 6(b)(5) of the Act,\18\ in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanisms of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78f(b).
\17\ 15 U.S.C. 78f(b)(4).
\18\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed new Tier structures
applicable to Priority Customers, Market Makers and Professional
Members are consistent with Section 6(b)(4) of the Act in that they are
fair, equitable and not unreasonably discriminatory and should continue
to improve the market quality for the Exchange's Members and
consequently all market participants. The proposed changes to the MIAX
PEARL Tier structures and rebates and fees are fair and equitable and
not unreasonably discriminatory because they apply equally to all MIAX
PEARL orders for the applicable origin type. All similarly situated
MIAX PEARL orders are subject to the same rebate and fee schedule, and
access to the Exchange is offered on terms that are not unfairly
discriminatory.
The Exchange believes that the proposed new Tier structures
applicable to Priority Customers, Market Makers and Professional
Members are consistent with Section 6(b)(5) of the Act in that they
promote equitable access to the Exchange for all market participants.
To the extent that MIAX PEARL Member volume is increased by the
proposal, market participants will increasingly compete for the
opportunity to trade on the Exchange including sending more orders to
the Exchange. The resulting increased volume and liquidity will benefit
all Exchange participants by providing more trading opportunities and
tighter spreads.
The specific volume thresholds of the Tiers for Priority Customers,
Market Makers and Professional Members as well as the rebates and fees
are set based upon business determinations and an analysis of current
volume levels. The Exchange believes that the proposed new Maker
rebates and Taker fees are generally within the range of rebates and
fees at other exchanges that have a Maker-Taker fee structure.\19\ The
volume thresholds are intended to continue to incentivize MIAX PEARL
Members to increase the number of orders they send to the Exchange so
that they can achieve the next threshold, and to encourage all market
participants to send more orders as well. Increasing the number of
orders sent to the Exchange will in turn provide tighter and more
liquid markets, and therefore attract
[[Page 28291]]
more business overall. Similarly, the different rebate rates at the
different Tier levels are based on an analysis of current revenue and
volume levels and are intended to provide continued incentives to MIAX
PEARL market participants to increase the volume of orders sent to, and
contracts executed on, the Exchange. The specific volume thresholds of
the Tiers and rates are set in order to encourage MIAX PEARL market
participants to continue to reach for higher tiers.
---------------------------------------------------------------------------
\19\ See supra note 13.
---------------------------------------------------------------------------
The proposed Maker rebate decrease in Penny and Non-Penny Classes
applicable to Priority Customers and Professional Members in the
specified Tiers is reasonable, equitable and not unfairly
discriminatory because all similarly situated market participants are
subject to the same tiered rebates and fees and access to the Exchange
is offered on terms that are not unfairly discriminatory. For
competitive and business reasons, the Exchange initially set its Maker
rebates for Priority Customer and Professional Member orders higher
than certain other options exchanges that operate comparable maker/
taker pricing models.\20\ The Exchange now believes that it is
appropriate to decrease those Maker rebates so that they are more in
line with other exchanges, and will still remain highly competitive
such that they should enable the Exchange to continue to attract order
flow and grow market share.
---------------------------------------------------------------------------
\20\ See supra note 14.
---------------------------------------------------------------------------
The proposal to provide alternative Maker rebates for options
transactions in all classes for Professional Members, provided that the
Member meets certain volume criteria (the Member and their Affiliates
execute at least 1.50% volume in the relevant month, in Priority
Customer Origin type, in all options classes, not including Excluded
Contracts, as compared to the TCV in all MIAX PEARL listed option
classes), is reasonable, equitable and not unfairly discriminatory
because all similarly situated market participants are subject to the
same tiered rebates and fees and access to the Exchange is offered on
terms that are not unfairly discriminatory. The Exchange believes that
providing alternative Maker rebates for options transactions in all
classes for Professional Members (if the Member meets certain volume
criteria relating to Priority Customer volume) will encourage Members
to execute additional Priority Customer and Professional Member volume
on the Exchange. The Exchange believes that additional Priority
Customer and Professional Member volume executed on the Exchange will
attract further liquidity to the Exchange, which in turn will benefit
all market participants.
The Exchange's proposal to modify the Alternative Volume Criteria
for Tier 4 based on SPY volume executed on the Exchange is reasonable,
equitable, and not unfairly discriminatory, since it is intended to
incentivize order flow in increased volume levels to be sent to the
Exchange for execution in an actively traded options class. SPY options
are the most actively traded class. The Exchange therefore believes
that incentivizing Members that concentrate their trading activity in
SPY options will consequently increase order flow sent to the Exchange,
which will benefit all market participants through increased liquidity,
tighter markets and order interaction.
The proposed Taker fee increases applicable to orders submitted by
a Member for the account of Priority Customers and Professional Members
are reasonable, equitable and not unfairly discriminatory because all
option orders of the same origin type are subject to the same tiered
Taker fees and access to the Exchange is offered on terms that are not
unfairly discriminatory. The Exchange initially set its Taker fees at
the various levels based upon business determinations and an analysis
of current Taker fees and volume levels at other exchanges. For
competitive and business reasons, the Exchange initially set its Taker
fees for Priority Customer and Professional Member orders lower than
certain other options exchanges that operate comparable maker/taker
pricing models.\21\ The Exchange now believes that it is appropriate to
increase those Taker fees so that they are more in line with other
exchanges, and will still remain highly competitive such that they
should enable the Exchange to continue to attract order flow and grow
market share. The Exchange notes that, even as amended, its Taker fees
for Priority Customers and Professional Members are generally lower
than certain other options exchanges operating competing models.\22\
The Exchange believes for these reasons that increasing certain Taker
fees for Priority Customer and Professional Member transactions in the
specified Tiers is equitable, reasonable and not unfairly
discriminatory, and thus consistent with the Act.
---------------------------------------------------------------------------
\21\ Id.
\22\ Id.
---------------------------------------------------------------------------
Furthermore, the proposed increases to the Taker fees for Priority
Customer transactions promotes just and equitable principles of trade,
fosters cooperation and coordination with persons engaged in
facilitating transactions in securities, and protects investors and the
public interest, because even with the increases, the Exchange's
proposed Taker fees for Priority Customer and Professional Member
orders still remain highly competitive with certain other options
exchanges offering comparable pricing models, and should enable the
Exchange to continue to attract order flow and grow market share. The
Exchange believes that the amount of such fees, as proposed to be
increased, will continue to encourage Members to send Priority Customer
and Professional Member orders to the Exchange. To the extent that
order flow is increased by the proposal, market participants will
increasingly compete for the opportunity to trade on the Exchange,
including sending more orders which will have the potential to be
assessed lower fees and higher rebates than certain other competing
options exchanges. The resulting increased volume and liquidity will
benefit all Exchange participants by providing more trading
opportunities and tighter spreads.
The Exchange believes that its proposal to offer tiered Taker fees
assessable to transactions solely in SPY, QQQ, IWM, and VXX options is
consistent with other options markets that also assess different
transaction fees for select option classes (including SPY, QQQ, IWM,
and VXX) as compared to other option classes. The Exchange believes
that establishing separate tiered pricing for these select products for
Priority Customers is reasonable, equitable, and not unfairly
discriminatory because these select products are generally more liquid
than other option classes. Additionally, certain other competing
options exchanges differentiate pricing in a similar manner.\23\
---------------------------------------------------------------------------
\23\ See Nasdaq ISE Schedule of Fees, Section I, Regular Order
Fees and Rebates; see also Nasdaq Options Market LLC (``NOM'')
Chapter XV, Section 2, ``Nasdaq Options Market Fees and Rebates.''
---------------------------------------------------------------------------
The Exchange believes that the proposed non-substantive, technical
corrections to the note beneath the transaction fee tables will promote
just and equitable principles of trade, remove impediments to and
perfect the mechanism of a free and open market and a national market
system because it will improve the readability of the Fee Schedule. The
proposed changes do not alter the substantive application of fees or
rebates. As such, the proposed change is intended to foster cooperation
and coordination with persons engaged in facilitating transactions in
securities
[[Page 28292]]
and would remove impediments to and perfect the mechanism of a free and
open market and a national market system. In particular, the Exchange
believes that the proposed rule change will provide greater clarity to
Members and the public regarding the Exchange's Fee Schedule, and it is
in the public interest for rules to be accurate and concise so as to
eliminate the potential for confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
MIAX PEARL does not believe that the proposed rule changes will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes that the
proposed changes in the Tier structure for the market participants
should continue to encourage the provision of liquidity that enhances
the quality of the Exchange's markets and increases the number of
trading opportunities on MIAX PEARL for all participants who will be
able to compete for such opportunities. The proposed rule change should
enable the Exchange to continue to attract and compete for order flow
with other exchanges. However, this competition does not create an
undue burden on competition but rather offers all market participants
the opportunity to receive the benefit of competitive pricing.
The proposed Maker rebate decreases, alternative Maker rebates, and
Taker fee increases as well as the tiered Taker fees for SPY, QQQ, IWM
and VXX options, are intended to keep the Exchange's fees highly
competitive with those of other exchanges, and to encourage liquidity
and should enable the Exchange to continue to attract and compete for
order flow with other exchanges which offer comparable Maker rebates
and Taker fees and enhanced pricing on transactions in select symbols.
Further, the Exchange believes that the proposed modification to
the alternative Volume Criteria threshold in Tier 4 based on SPY
options volume applicable to Market Makers will continue to provide
incentives to those Market Makers that concentrate their trading
activity in SPY options to send additional SPY orders and creates
additional opportunity for additional liquidity to the market.
The Exchange does not believe that the proposed rule change to make
technical corrections to its rules will impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of the Act. This aspect of the proposed rule change is not designed to
address any competitive issues but rather is designed to add additional
clarity and to remedy minor, non-substantive issues in the text of the
Fee Schedule.
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 rebates and fees
to remain competitive with other exchanges and to attract order flow.
The Exchange believes that the proposed rule changes reflect this
competitive environment because they modify the Exchange's fees in a
manner that encourages market participants to continue to provide
liquidity and to send order flow to the Exchange.
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,\24\ and Rule 19b-4(f)(2) \25\ 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.
---------------------------------------------------------------------------
\24\ 15 U.S.C. 78s(b)(3)(A)(ii).
\25\ 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 [email protected]. Please include
File Number SR-PEARL-2018-13 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-PEARL-2018-13. 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 website (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 website 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-PEARL-2018-13 and should be submitted on
or before July 9, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
---------------------------------------------------------------------------
\26\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12935 Filed 6-15-18; 8:45 am]
BILLING CODE 8011-01-P
