Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 602, Appointment of Market Makers, 31812-31816 [2018-14545]
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Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and
subparagraph (f)(6) Rule 19b–4
thereunder.9
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative for 30 days after the
date of filing. However Rule 19b–
4(f)(6)(iii) 11 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has requested that the
Commission waive the 30-day operative
delay to permit the applicable fee
waivers to be extended on a timely basis
and without interruption and to update
its rule text to reflect the sunsetting of
the FLEX Trader Incentive Program as
scheduled. The Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest
because the proposal to extend to
December 31, 2018 temporary
incentives designed to encourage
trading in the above-discussed products
and trading sessions, and to remove
obsolete text concerning the FLEX
Trader Incentive Program, does not raise
any new or novel issues. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change operative upon
filing.12
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
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8 15
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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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
change 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–
CBOE–2018–051 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–CBOE–2018–051. 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–CBOE–2018–051 and
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should be submitted on or before July
30, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–14666 Filed 7–6–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83577; File No. SR–MIAX–
2018–13]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Exchange Rule 602,
Appointment of Market Makers
July 2, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 26,
2018, Miami International Securities
Exchange, LLC (‘‘MIAX Options’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I, II, and III below,
which Items have been prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend Rule 602, Appointment of
Market Makers, to specify the new
method by which Lead Market Makers 3
(‘‘LMMs’’) and Registered Market
Makers 4 (‘‘RMMs’’) request
appointments to one or more classes of
option contracts traded on the
Exchange.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The term ‘‘Lead Market Maker’’ means a
Member registered with the Exchange for the
purpose of making markets in securities traded on
the Exchange and that is vested with the rights and
responsibilities specified in Chapter VI of the
Exchange’s Rules with respect to Lead Market
Makers. See Exchange Rule 100.
4 The term ‘‘Registered Market Maker’’ means a
Member registered with the Exchange for the
purpose of making markets in securities traded on
the Exchange, who is not a Lead Market Maker and
is vested with the rights and responsibilities
specified in Chapter VI of the Exchange’s Rules
with respect to Registered Market Makers. See
Exchange Rule 100.
1 15
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Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/ at MIAX Options’ 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
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1. Purpose
The Exchange proposes to amend
MIAX Options Rule 602, Appointment
of Market Makers, to specify the new
method by which LMMs and RMMs
would request appointments to (and
relinquishment of appointments from)
one or more classes of option contracts
traded on the Exchange pursuant to
Rule 602(a). The Exchange believes this
proposal would improve the efficiency
of the appointment process for both the
Exchange and for these types of Market
Makers.5 Other option exchanges also
specify a method which governs the
appointment of market makers to classes
of option contracts traded on the
exchange, however, these methods,
while generally automated, differ
somewhat across exchanges.6
Once a Member 7 has qualified as
either an LMM or an RMM, such Market
Maker may request an appointment (or,
following an appointment,
relinquishment from an appointment) in
5 The term ‘‘Market Makers’’ refers to ‘‘Lead
Market Makers,’’ ‘‘Primary Lead Market Makers’’
and ‘‘Registered Market Makers’’ collectively. See
Exchange Rule 100.
6 See, e.g.., Cboe BZX Exchange, Inc. (‘‘Cboe
BZX’’) Rules 22.3(a),(b) (Market Maker
Registration); see also Nasdaq PHLX, LLC (‘‘Nasdaq
Phlx’’) Rule 3212(b) (Registration as a Market
Maker); Nasdaq Options Market (‘‘NOM’’), Chapter
VII (Market Participants), Section 3(a),(b)
(Continuing Market Maker Registration); NYSE
American, LLC (‘‘NYSE American’’), Rule 923NY
(Appointment of Market Makers).
7 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
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one or more option classes pursuant to
Rule 602. Currently, an LMM or RMM
may request such an appointment by
contacting Exchange staff, either by
phone or via email, identifying those
classes of option contracts in which the
Market Maker is seeking an
appointment. A Primary Lead Market
Maker (‘‘PLMM’’),8 however, goes
through a different, more extensive
appointment process. Accordingly, the
Exchange intentionally excluded
PLMMs from this proposal. The
Exchange believes it is appropriate to
exclude PLMMs from this new
appointment method because the Board
or designated committee appoints only
one PLMM to each options class traded
on the Exchange, as opposed to the
multiple number of LMMs and RMMs,
and because of the heightened
obligations associated with performing
the responsibilities of a PLMM.9
Because of the heightened
responsibilities of PLMMs, the
Exchange believes that it is appropriate
to have a different method for PLMMs
on the one hand, and LMMs and RMMs
on the other hand, with respect to the
method by which appointments (and
relinquishments of appointments) are
requested.
According to the Exchange’s current
practice, with respect to LMMs and
RMMs, after the LMM or RMM contacts
Exchange staff either by phone or via
email, the Exchange staff then delivers
that request to the Board or a committee
designated by the Board for its approval.
Upon the decision of the Board or
committee designated by the Board
regarding that appointment, Exchange
staff then notifies the Market Maker of
the determination, with such
notification being made the next
business day. The Exchange notes that
it is not proposing to make any changes
to timing of the notification, which will
continue to be made the next business
day.
Specifically, Rule 602(a) provides that
‘‘[t]he Board or a committee designated
by the Board shall appoint Market
Makers to one or more classes of option
contracts traded on the Exchange.’’ 10 In
addition to having the authority to
appoint one PLMM to each options
class, ‘‘[t]he Exchange will impose an
upper limit on the aggregate number of
8 A ‘‘Primary Lead Market Maker’’ is a Lead
Market Maker appointment by the Exchange to act
as the Primary Lead Market Maker for the purpose
of making markets in securities traded on the
Exchange. The Primary Lead Market Maker is
vested with the rights and responsibilities specified
in Chapter VI of these Rules with respect to Primary
Lead Market Makers. See Exchange Rule 100.
9 See, for example, Exchange Rules 603 and 604
for certain heightened obligations of PLMMs.
10 See Rule 602(a).
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31813
Market Makers that may quote in each
class of options (‘‘Class Quoting Limit’’
or ‘‘CQL’’).’’ Currently, the CQL is set at
fifty (50) Market Makers per option class
but the Exchange may ‘‘increase the
CQL for an existing or new option class
if the President determines that it would
be appropriate.’’ 11 Further, Rule
602(c)(2) provides that ‘‘Market Makers
requesting an appointment in a class of
options will be considered for the
appointment in accordance with
paragraphs (a), (b) and (f) of this Rule
602, provided the number of Market
Makers appointed in the options class
does not exceed the CQL.’’
In making appointments of Market
Makers to one or more classes of option
contracts traded on the Exchange, the
Board or designated committee shall
consider the financial resources
available to the Market Maker; the
Market Maker’s experience and
expertise in market making or options
trading; the preferences of the Market
Maker to receive appointment(s) in
specific option class(es); and the
maintenance and enhancement of
competition among Market Makers in
each class of option contracts to which
they are appointed.12 Rule 602(c)(2) also
states that, when the number of Market
Makers appointed in the options class
equals the CQL, all other Market Makers
requesting to be appointed in that
options class will be wait-listed in the
order in which they submitted their
request.13
Under the current Rule, ‘‘[t]he Board
or designated committee may suspend
or terminate any appointment of a
Market Maker under this Rule [602] and
may make additional appointments or
change the option classes included in a
Market Maker’s appointed classes
whenever, in the Board’s or designated
committee’s judgment, the interests of a
fair and orderly market are best served
by such action.’’ 14 Moreover, the
Exchange ‘‘shall periodically conduct an
evaluation of Market Makers to
determine whether they have fulfilled
performance standards relating to,
among other things, quality of markets,
competition among Market Makers,
observance of ethical standards, and
administrative factors. The Exchange
may consider any relevant information,
including but not limited to the results
of a Market Maker evaluation
questionnaire, trading data, a Market
Maker’s regulatory history and such
other factors and data as may be
11 See
Rule 602(c).
Rule 602(a).
13 See Rule 602(c)(2).
14 See Rule 602(e).
12 See
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pertinent in the circumstances.’’ 15 If the
Exchange finds that a Market Maker has
not met the performance standards, the
Exchange may take action, including
suspending, terminating or restricting a
Market Maker’s appointment or
registration.16
The Exchange proposes to amend
MIAX Options Rule 602 solely to
specify the new method by which
LMMs and RMMs would request
appointments to (or relinquishment of
appointments from) one or more classes
of option contracts traded on the
Exchange pursuant to Rule 602(a). In
particular, the Exchange proposes to
adopt Interpretations & Policies .02 to
Rule 602 to provide that, ‘‘Lead Market
Makers and Registered Market Makers
shall request appointments to (and
relinquishment of appointments from)
one or more classes of option contracts
traded on the Exchange pursuant to
Rule 602(a) via an Exchange approved
electronic interface, which request must
be submitted prior to 6:00 p.m. Eastern
Time of the business day immediately
preceding the next trading day. The
Exchange approved electronic interface
will also ensure that, before any
appointment request (or relinquishment
of an appointment) is approved, the
CQL established by Rule 602 has not
been exceeded. Appointments (and
relinquishments of appointments) shall
become effective on the day after the
request is submitted, provided that it
has been approved. Approvals and
denials of appointments (and
relinquishment of appointments) shall
be communicated by the Exchange via
the same Exchange approved electronic
interface through which the request was
made.’’
The Exchange believes that requiring
LMMs and RMMs to use an Exchange
approved electronic interface to request
appointments to one or more classes of
option contracts would enable LMMs
and RMMs to streamline the process by
which they request appointments (and
relinquishment of appointments) and
get notified of approvals or denials
related to such requests, which, in turn,
would reduce the time and resources
expended by such Market Makers and
the Exchange on the appointment
process.
The Exchange also believes this
proposal would provide LMMs and
RMMs with more efficient access to the
securities in which they want to make
markets and disseminate competitive
quotations, which would provide
additional liquidity and enhance
competition in those securities. The
15 See
16 See
Rule 602(f).
id.
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Exchange would retain the ability to
suspend or terminate any appointment
of a Market Maker if necessary to
maintain a fair and orderly market.17
The Exchange also notes that the
proposed changes to Rule 602 are
similar in some respects to the rules of
other exchanges 18 and therefore raises
no new or novel issues. Furthermore,
the Exchange notes that it is only
proposing to specify the new method by
which LMMs and RMMs would request
appointments to (and relinquishment of
appointments from) one or more classes
of option contracts traded on the
Exchange pursuant to Rule 602(a), and
would not change the substantive
provisions of the rules including the
CQL, quoting requirements, or the
Exchange’s ability to make additional
appointments or change the option
classes included in a Market Maker’s
requested appointment whenever, in the
Board’s or designated committee’s
judgment, the interests of a fair and
orderly market are best served by such
action.
2. Statutory Basis
The Exchange believes that its
proposed rule change is consistent with
Section 6(b) of the Act 19 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 20 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, to
remove impediments to and perfect the
mechanisms of a free and open market
and a national market system.
The Exchange believes that the
proposed rule change removes
Rule 602(e).
e.g., Phlx Rule 3212(b) (‘‘A PSX Market
Maker may become registered in an issue by
entering a registration request via an Exchange
approved electronic interface with PSX’s systems or
by contacting PSX Market Operations. Registration
shall become effective on the day the registration
request is entered’’); Phlx Rule 3220(a) (‘‘A market
maker may voluntarily terminate its registration in
a security by withdrawing its two-sided quotation
from PSX. A PSX Market Maker that voluntarily
terminates its registration in a security may not reregister as a market maker for one (1) business
day.’’). See also BZX Options Rules 22.3(b) (‘‘An
Options Market Maker may become registered in a
series by entering a registration request via an
Exchange approved electronic interface with the
Exchange’s systems by 9:00 a.m. Eastern time.
Registration shall become effective on the day the
registration request is entered’’); NOM, Chapter VII,
Section 3(b) (‘‘An Options Market Maker may
become registered in an option by entering a
registration request via a Nasdaq approved
electronic interface with Nasdaq’s systems.
Registration shall become effective on the day the
registration request is entered.’’).
19 15 U.S.C. 78f(b).
20 15 U.S.C. 78f(b)(5).
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17 See
18 See
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impediments to a free and open market
because it would streamline the process
by which LMMs and RMMs request
appointments to (and relinquishment of
appointments from) one or more classes
of option contracts traded on the
Exchange and offer LMMs and RMMs
the ability to manage their appointments
in a more efficient manner, through use
of an automated tool. The Exchange
believes the proposed change would
reduce the burden on both LMMs and
RMMs, and Exchange staff, which
would result in a fair and reasonable use
of resources to the benefit of all market
participants. In particular, the proposal
to require LMMs and RMMs to use an
Exchange approved electronic interface
to request to be appointed to a class, and
to make changes thereto, is consistent
with Act because it would provide
LMMs and RMMs with more efficient
access to the securities in which they
want to make markets. The Exchange
also believes that allowing LMMs and
RMMs to request relinquishment from
appointments using the same process
used by LMMs and RMMs to request
appointments, would serve to promote
just and equitable principles of trade
and benefit investors and the public
interest by establishing a more
systematic way for LMMs and RMMs to
manage their appointments and provide
more clarity with respect to the process.
In addition, the Exchange believes
that improving the efficiency of the
process by which LMMs and RMMs
request appointments and
relinquishment of appointments on an
automated basis without having to
manually contact Exchange staff is
likewise consistent with the Act. First,
the Board or a designated committee
will continue to have responsibility for
approving the appointments requested
by LMMs and RMMs in one or more
classes of options contracts traded on
the Exchange. The Board or a designated
committee would continue to consider
the relevant factors and conduct an
evaluation of Market Makers prior to
their appointment. 21 In addition, as
noted above, the Exchange would
continue to have authority to suspend or
terminate any Market Maker
appointment in the interest of a fair and
orderly market, including, if necessary
to prevent fraudulent and manipulative
acts and practices and protect investors,
or if a Market Maker does not satisfy its
obligations with respect to an
appointment.22 Furthermore, the
21 See
supra notes 10–14.
Rule 602(e). See also Rule 600(c) (regarding
the Exchange’s ability to suspend or terminate a
Market Maker’s registration based on ‘‘a
determination that such Member has failed to
properly perform as a Market Maker.’’).
22 See
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Exchange approved electronic interface
utilized by LMMs and RMMs to request
an appointment will ensure that, before
any additions to a Market Maker’s
appointment are approved, the CQL
established by Rule 602 has not been
exceeded. Accordingly, the Exchange
believes this proposal is consistent with
Section 6(b) of the Exchange Act.23
The proposed rule change would not
result in unfair discrimination, as it
applies to all LMMs and RMMs equally.
As noted above, the Exchange
intentionally excluded PLMMs from
this proposal. The Exchange believes it
isn’t unfairly discriminatory to exclude
PLMMs from this new appointment
method because the Board or designated
committee appoints only one PLMM to
each options class traded on the
Exchange, as opposed to the multiple
number of LMMs and RMMs, and
because of the heightened obligations
associated with performing the
responsibilities of a PLMM.24 Because of
these heightened responsibilities of
PLMMs, the Exchange believes that it is
not unfairly discriminatory to treat
PLMMs differently from LMMs and
RMMs with respect to the method by
which appointments (and
relinquishments of appointments) are
requested.
Further, the proposed rule change
would reduce the burden on LMMs and
RMMs to manage their appointments,
and thus provide greater liquidity to the
Exchange while reducing the time and
resources expended by such Market
Makers and the Exchange on the
appointment process. Nevertheless,
Market Makers would still be required
to comply with certain obligations to
maintain their status as a Market Maker,
including that they provide continuous,
two-sided quotations in their appointed
securities.25
Finally, as noted above, specifying the
method of the appointment process
would also align the rules of the
Exchange with the rules of other options
exchanges, where Market Makers
presently have the ability to select and
make changes to their appointments and
registrations via an exchange-approved
electronic interface.26 The Exchange
believes this consistency across
exchanges would remove impediments
to and perfect the mechanism of a free
and open market by ensuring that
members, regulators and the public can
more easily navigate the Exchange’s
23 15
U.S.C. 78f(b).
supra note 9.
25 See Rule 604.
26 See supra notes 6 and 18.
24 See
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rulebook and better understand the
appointment process.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
MIAX Options does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because it
provides the same enhancement to a
group of similarly situated market
participants—LMMs and RMMs. The
proposed rule change would reduce the
burden on these Market Makers to
manage their appointments and thus
provide greater liquidity to the
Exchange while reducing the time and
resources expended by such Market
Makers and the Exchange on the
appointment process.
The Exchange does not believe the
proposed rule change would help these
Market Makers to the detriment of
market participants on other exchanges,
particularly because the proposed
appointment process for LMMs and
RMMs is meant to simply create a more
efficient process by which such Market
Makers can request an appointment, and
it is similar to the appointment and
registration processes for market makers
already in place on other exchanges.27
LMMs and RMMs would still be subject
to the same obligations with respect to
its appointment; however, the proposed
rule change would make the
appointment process more efficient for
such Market Makers. The Exchange
believes that the proposed rule change
would relieve any burden on, or
otherwise promote, competition, as it
would enable LMMs and RMMs to
streamline the process by which they
request appointments (and
relinquishment of appointments) and
get notified of approvals or denials
related to such requests, which, in turn,
would reduce the time and resources
expended by such Market Makers and
the Exchange on the appointment
process.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
27 Id.
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31815
burden on competition; and (iii) become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 28 and Rule 19b–4(f)(6) 29
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–
MIAX–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–MIAX–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
28 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
29 17
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Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Notices
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–MIAX–2018–13 and should
be submitted on or before July 30, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–14545 Filed 7–6–18; 8:45 am]
BILLING CODE P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
sradovich on DSK3GMQ082PROD with NOTICES
Extension:
Form 12b–25, SEC File No. 270–071, OMB
Control No. 3235–0058
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
The purpose of Form 12b–25 (17 CFR
240.12b–25) is to provide notice to the
Commission and the marketplace that a
registrant will be unable to timely file a
required periodic report or transition
report pursuant to the Securities
Exchange Act of 1934 (15 U.S.C 78a et
seq.) or the Investment Company Act of
1940 (15 U.S.C. 80a et seq.). If all the
filing conditions of the form are
satisfied, the registrant is granted an
automatic filing extension.
Approximately 3,432 registrants file
Form 12b–25 and it takes approximately
2.5 hours per response for a total of
8,580 burden hours.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Please direct your written comment to
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.
Dated: July 3, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–14652 Filed 7–6–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83579; File No. SR–IEX–
2018–13]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to the IPO
Auction Processes for Trading in an
IEX-Listed Security That Is the Subject
of an Initial Public Offering
July 2, 2018.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on June 22,
2018, Investors Exchange LLC (‘‘IEX’’ or
the ‘‘Exchange’’) filed with the
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
30 17
CFR 200.30–3(a)(12).
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Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
(a) Pursuant to the provisions of
Section 19(b)(1) under the Securities
Exchange Act of 1934 (‘‘Act’’),4 and
Rule 19b–4 thereunder,5 Investors
Exchange LLC (‘‘IEX’’ or ‘‘Exchange’’) is
filing with the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change to modify Rules
11.280(h)(8) and 11.350(e), which
collectively govern the IPO Auction
processes for trading in an IEX-listed
security that is the subject of an initial
public offering (‘‘IPO’’).6 The Exchange
is also proposing to modify certain
definitions in Rule 11.350(a) regarding
IPO Auction market data that is
disseminated in IEX Auction
Information.7 The Exchange has
designated this rule change as ‘‘noncontroversial’’ under Section 19(b)(3)(A)
of the Act 8 and provided the
Commission with the notice required by
Rule 19b–4(f)(6) thereunder.9
The text of the proposed rule change
is available at the Exchange’s website at
www.iextrading.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization 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 statement may be examined at
the places specified in Item IV below.
4 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
6 Pursuant to section 12(f)(1)(G)(i)–(ii) of the
Securities Exchange Act, a security is the subject of
an initial public offering if the offering of the
subject security is registered under the Securities
Act of 1933, the issuer of the security, immediately
prior to filing the registration statement with
respect to the offering, was not subject to the
reporting requirements of the Act, and the initial
public offering of such security commences at the
opening of trading on the day on which such
security commences trading on the national
securities exchange with which such security is
registered. See 15 U.S.C. 78l(f)(1)(G).
7 See Rule 11.350(a)(9).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4.
5 17
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]]>Agencies
[Federal Register Volume 83, Number 131 (Monday, July 9, 2018)]
[Notices]
[Pages 31812-31816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14545]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83577; File No. SR-MIAX-2018-13]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Exchange Rule 602, Appointment of Market
Makers
July 2, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 26, 2018, Miami International Securities Exchange, LLC (``MIAX
Options'' or the ``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 Rule 602, Appointment of
Market Makers, to specify the new method by which Lead Market Makers
\3\ (``LMMs'') and Registered Market Makers \4\ (``RMMs'') request
appointments to one or more classes of option contracts traded on the
Exchange.
---------------------------------------------------------------------------
\3\ The term ``Lead Market Maker'' means a Member registered
with the Exchange for the purpose of making markets in securities
traded on the Exchange and that is vested with the rights and
responsibilities specified in Chapter VI of the Exchange's Rules
with respect to Lead Market Makers. See Exchange Rule 100.
\4\ The term ``Registered Market Maker'' means a Member
registered with the Exchange for the purpose of making markets in
securities traded on the Exchange, who is not a Lead Market Maker
and is vested with the rights and responsibilities specified in
Chapter VI of the Exchange's Rules with respect to Registered Market
Makers. See Exchange Rule 100.
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[[Page 31813]]
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings/ at MIAX Options'
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 MIAX Options Rule 602, Appointment
of Market Makers, to specify the new method by which LMMs and RMMs
would request appointments to (and relinquishment of appointments from)
one or more classes of option contracts traded on the Exchange pursuant
to Rule 602(a). The Exchange believes this proposal would improve the
efficiency of the appointment process for both the Exchange and for
these types of Market Makers.\5\ Other option exchanges also specify a
method which governs the appointment of market makers to classes of
option contracts traded on the exchange, however, these methods, while
generally automated, differ somewhat across exchanges.\6\
---------------------------------------------------------------------------
\5\ The term ``Market Makers'' refers to ``Lead Market Makers,''
``Primary Lead Market Makers'' and ``Registered Market Makers''
collectively. See Exchange Rule 100.
\6\ See, e.g.., Cboe BZX Exchange, Inc. (``Cboe BZX'') Rules
22.3(a),(b) (Market Maker Registration); see also Nasdaq PHLX, LLC
(``Nasdaq Phlx'') Rule 3212(b) (Registration as a Market Maker);
Nasdaq Options Market (``NOM''), Chapter VII (Market Participants),
Section 3(a),(b) (Continuing Market Maker Registration); NYSE
American, LLC (``NYSE American''), Rule 923NY (Appointment of Market
Makers).
---------------------------------------------------------------------------
Once a Member \7\ has qualified as either an LMM or an RMM, such
Market Maker may request an appointment (or, following an appointment,
relinquishment from an appointment) in one or more option classes
pursuant to Rule 602. Currently, an LMM or RMM may request such an
appointment by contacting Exchange staff, either by phone or via email,
identifying those classes of option contracts in which the Market Maker
is seeking an appointment. A Primary Lead Market Maker (``PLMM''),\8\
however, goes through a different, more extensive appointment process.
Accordingly, the Exchange intentionally excluded PLMMs from this
proposal. The Exchange believes it is appropriate to exclude PLMMs from
this new appointment method because the Board or designated committee
appoints only one PLMM to each options class traded on the Exchange, as
opposed to the multiple number of LMMs and RMMs, and because of the
heightened obligations associated with performing the responsibilities
of a PLMM.\9\ Because of the heightened responsibilities of PLMMs, the
Exchange believes that it is appropriate to have a different method for
PLMMs on the one hand, and LMMs and RMMs on the other hand, with
respect to the method by which appointments (and relinquishments of
appointments) are requested.
---------------------------------------------------------------------------
\7\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
\8\ A ``Primary Lead Market Maker'' is a Lead Market Maker
appointment by the Exchange to act as the Primary Lead Market Maker
for the purpose of making markets in securities traded on the
Exchange. The Primary Lead Market Maker is vested with the rights
and responsibilities specified in Chapter VI of these Rules with
respect to Primary Lead Market Makers. See Exchange Rule 100.
\9\ See, for example, Exchange Rules 603 and 604 for certain
heightened obligations of PLMMs.
---------------------------------------------------------------------------
According to the Exchange's current practice, with respect to LMMs
and RMMs, after the LMM or RMM contacts Exchange staff either by phone
or via email, the Exchange staff then delivers that request to the
Board or a committee designated by the Board for its approval. Upon the
decision of the Board or committee designated by the Board regarding
that appointment, Exchange staff then notifies the Market Maker of the
determination, with such notification being made the next business day.
The Exchange notes that it is not proposing to make any changes to
timing of the notification, which will continue to be made the next
business day.
Specifically, Rule 602(a) provides that ``[t]he Board or a
committee designated by the Board shall appoint Market Makers to one or
more classes of option contracts traded on the Exchange.'' \10\ In
addition to having the authority to appoint one PLMM to each options
class, ``[t]he Exchange will impose an upper limit on the aggregate
number of Market Makers that may quote in each class of options
(``Class Quoting Limit'' or ``CQL'').'' Currently, the CQL is set at
fifty (50) Market Makers per option class but the Exchange may
``increase the CQL for an existing or new option class if the President
determines that it would be appropriate.'' \11\ Further, Rule 602(c)(2)
provides that ``Market Makers requesting an appointment in a class of
options will be considered for the appointment in accordance with
paragraphs (a), (b) and (f) of this Rule 602, provided the number of
Market Makers appointed in the options class does not exceed the CQL.''
---------------------------------------------------------------------------
\10\ See Rule 602(a).
\11\ See Rule 602(c).
---------------------------------------------------------------------------
In making appointments of Market Makers to one or more classes of
option contracts traded on the Exchange, the Board or designated
committee shall consider the financial resources available to the
Market Maker; the Market Maker's experience and expertise in market
making or options trading; the preferences of the Market Maker to
receive appointment(s) in specific option class(es); and the
maintenance and enhancement of competition among Market Makers in each
class of option contracts to which they are appointed.\12\ Rule
602(c)(2) also states that, when the number of Market Makers appointed
in the options class equals the CQL, all other Market Makers requesting
to be appointed in that options class will be wait-listed in the order
in which they submitted their request.\13\
---------------------------------------------------------------------------
\12\ See Rule 602(a).
\13\ See Rule 602(c)(2).
---------------------------------------------------------------------------
Under the current Rule, ``[t]he Board or designated committee may
suspend or terminate any appointment of a Market Maker under this Rule
[602] and may make additional appointments or change the option classes
included in a Market Maker's appointed classes whenever, in the Board's
or designated committee's judgment, the interests of a fair and orderly
market are best served by such action.'' \14\ Moreover, the Exchange
``shall periodically conduct an evaluation of Market Makers to
determine whether they have fulfilled performance standards relating
to, among other things, quality of markets, competition among Market
Makers, observance of ethical standards, and administrative factors.
The Exchange may consider any relevant information, including but not
limited to the results of a Market Maker evaluation questionnaire,
trading data, a Market Maker's regulatory history and such other
factors and data as may be
[[Page 31814]]
pertinent in the circumstances.'' \15\ If the Exchange finds that a
Market Maker has not met the performance standards, the Exchange may
take action, including suspending, terminating or restricting a Market
Maker's appointment or registration.\16\
---------------------------------------------------------------------------
\14\ See Rule 602(e).
\15\ See Rule 602(f).
\16\ See id.
---------------------------------------------------------------------------
The Exchange proposes to amend MIAX Options Rule 602 solely to
specify the new method by which LMMs and RMMs would request
appointments to (or relinquishment of appointments from) one or more
classes of option contracts traded on the Exchange pursuant to Rule
602(a). In particular, the Exchange proposes to adopt Interpretations &
Policies .02 to Rule 602 to provide that, ``Lead Market Makers and
Registered Market Makers shall request appointments to (and
relinquishment of appointments from) one or more classes of option
contracts traded on the Exchange pursuant to Rule 602(a) via an
Exchange approved electronic interface, which request must be submitted
prior to 6:00 p.m. Eastern Time of the business day immediately
preceding the next trading day. The Exchange approved electronic
interface will also ensure that, before any appointment request (or
relinquishment of an appointment) is approved, the CQL established by
Rule 602 has not been exceeded. Appointments (and relinquishments of
appointments) shall become effective on the day after the request is
submitted, provided that it has been approved. Approvals and denials of
appointments (and relinquishment of appointments) shall be communicated
by the Exchange via the same Exchange approved electronic interface
through which the request was made.''
The Exchange believes that requiring LMMs and RMMs to use an
Exchange approved electronic interface to request appointments to one
or more classes of option contracts would enable LMMs and RMMs to
streamline the process by which they request appointments (and
relinquishment of appointments) and get notified of approvals or
denials related to such requests, which, in turn, would reduce the time
and resources expended by such Market Makers and the Exchange on the
appointment process.
The Exchange also believes this proposal would provide LMMs and
RMMs with more efficient access to the securities in which they want to
make markets and disseminate competitive quotations, which would
provide additional liquidity and enhance competition in those
securities. The Exchange would retain the ability to suspend or
terminate any appointment of a Market Maker if necessary to maintain a
fair and orderly market.\17\ The Exchange also notes that the proposed
changes to Rule 602 are similar in some respects to the rules of other
exchanges \18\ and therefore raises no new or novel issues.
Furthermore, the Exchange notes that it is only proposing to specify
the new method by which LMMs and RMMs would request appointments to
(and relinquishment of appointments from) one or more classes of option
contracts traded on the Exchange pursuant to Rule 602(a), and would not
change the substantive provisions of the rules including the CQL,
quoting requirements, or the Exchange's ability to make additional
appointments or change the option classes included in a Market Maker's
requested appointment whenever, in the Board's or designated
committee's judgment, the interests of a fair and orderly market are
best served by such action.
---------------------------------------------------------------------------
\17\ See Rule 602(e).
\18\ See e.g., Phlx Rule 3212(b) (``A PSX Market Maker may
become registered in an issue by entering a registration request via
an Exchange approved electronic interface with PSX's systems or by
contacting PSX Market Operations. Registration shall become
effective on the day the registration request is entered''); Phlx
Rule 3220(a) (``A market maker may voluntarily terminate its
registration in a security by withdrawing its two-sided quotation
from PSX. A PSX Market Maker that voluntarily terminates its
registration in a security may not re-register as a market maker for
one (1) business day.''). See also BZX Options Rules 22.3(b) (``An
Options Market Maker may become registered in a series by entering a
registration request via an Exchange approved electronic interface
with the Exchange's systems by 9:00 a.m. Eastern time. Registration
shall become effective on the day the registration request is
entered''); NOM, Chapter VII, Section 3(b) (``An Options Market
Maker may become registered in an option by entering a registration
request via a Nasdaq approved electronic interface with Nasdaq's
systems. Registration shall become effective on the day the
registration request is entered.'').
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \19\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \20\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in facilitating
transactions in securities, to remove impediments to and perfect the
mechanisms of a free and open market and a national market system.
---------------------------------------------------------------------------
\19\ 15 U.S.C. 78f(b).
\20\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule change removes
impediments to a free and open market because it would streamline the
process by which LMMs and RMMs request appointments to (and
relinquishment of appointments from) one or more classes of option
contracts traded on the Exchange and offer LMMs and RMMs the ability to
manage their appointments in a more efficient manner, through use of an
automated tool. The Exchange believes the proposed change would reduce
the burden on both LMMs and RMMs, and Exchange staff, which would
result in a fair and reasonable use of resources to the benefit of all
market participants. In particular, the proposal to require LMMs and
RMMs to use an Exchange approved electronic interface to request to be
appointed to a class, and to make changes thereto, is consistent with
Act because it would provide LMMs and RMMs with more efficient access
to the securities in which they want to make markets. The Exchange also
believes that allowing LMMs and RMMs to request relinquishment from
appointments using the same process used by LMMs and RMMs to request
appointments, would serve to promote just and equitable principles of
trade and benefit investors and the public interest by establishing a
more systematic way for LMMs and RMMs to manage their appointments and
provide more clarity with respect to the process.
In addition, the Exchange believes that improving the efficiency of
the process by which LMMs and RMMs request appointments and
relinquishment of appointments on an automated basis without having to
manually contact Exchange staff is likewise consistent with the Act.
First, the Board or a designated committee will continue to have
responsibility for approving the appointments requested by LMMs and
RMMs in one or more classes of options contracts traded on the
Exchange. The Board or a designated committee would continue to
consider the relevant factors and conduct an evaluation of Market
Makers prior to their appointment. \21\ In addition, as noted above,
the Exchange would continue to have authority to suspend or terminate
any Market Maker appointment in the interest of a fair and orderly
market, including, if necessary to prevent fraudulent and manipulative
acts and practices and protect investors, or if a Market Maker does not
satisfy its obligations with respect to an appointment.\22\
Furthermore, the
[[Page 31815]]
Exchange approved electronic interface utilized by LMMs and RMMs to
request an appointment will ensure that, before any additions to a
Market Maker's appointment are approved, the CQL established by Rule
602 has not been exceeded. Accordingly, the Exchange believes this
proposal is consistent with Section 6(b) of the Exchange Act.\23\
---------------------------------------------------------------------------
\21\ See supra notes 10-14.
\22\ See Rule 602(e). See also Rule 600(c) (regarding the
Exchange's ability to suspend or terminate a Market Maker's
registration based on ``a determination that such Member has failed
to properly perform as a Market Maker.'').
\23\ 15 U.S.C. 78f(b).
---------------------------------------------------------------------------
The proposed rule change would not result in unfair discrimination,
as it applies to all LMMs and RMMs equally. As noted above, the
Exchange intentionally excluded PLMMs from this proposal. The Exchange
believes it isn't unfairly discriminatory to exclude PLMMs from this
new appointment method because the Board or designated committee
appoints only one PLMM to each options class traded on the Exchange, as
opposed to the multiple number of LMMs and RMMs, and because of the
heightened obligations associated with performing the responsibilities
of a PLMM.\24\ Because of these heightened responsibilities of PLMMs,
the Exchange believes that it is not unfairly discriminatory to treat
PLMMs differently from LMMs and RMMs with respect to the method by
which appointments (and relinquishments of appointments) are requested.
---------------------------------------------------------------------------
\24\ See supra note 9.
---------------------------------------------------------------------------
Further, the proposed rule change would reduce the burden on LMMs
and RMMs to manage their appointments, and thus provide greater
liquidity to the Exchange while reducing the time and resources
expended by such Market Makers and the Exchange on the appointment
process. Nevertheless, Market Makers would still be required to comply
with certain obligations to maintain their status as a Market Maker,
including that they provide continuous, two-sided quotations in their
appointed securities.\25\
---------------------------------------------------------------------------
\25\ See Rule 604.
---------------------------------------------------------------------------
Finally, as noted above, specifying the method of the appointment
process would also align the rules of the Exchange with the rules of
other options exchanges, where Market Makers presently have the ability
to select and make changes to their appointments and registrations via
an exchange-approved electronic interface.\26\ The Exchange believes
this consistency across exchanges would remove impediments to and
perfect the mechanism of a free and open market by ensuring that
members, regulators and the public can more easily navigate the
Exchange's rulebook and better understand the appointment process.
---------------------------------------------------------------------------
\26\ See supra notes 6 and 18.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
MIAX Options does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act because it provides the same
enhancement to a group of similarly situated market participants--LMMs
and RMMs. The proposed rule change would reduce the burden on these
Market Makers to manage their appointments and thus provide greater
liquidity to the Exchange while reducing the time and resources
expended by such Market Makers and the Exchange on the appointment
process.
The Exchange does not believe the proposed rule change would help
these Market Makers to the detriment of market participants on other
exchanges, particularly because the proposed appointment process for
LMMs and RMMs is meant to simply create a more efficient process by
which such Market Makers can request an appointment, and it is similar
to the appointment and registration processes for market makers already
in place on other exchanges.\27\ LMMs and RMMs would still be subject
to the same obligations with respect to its appointment; however, the
proposed rule change would make the appointment process more efficient
for such Market Makers. The Exchange believes that the proposed rule
change would relieve any burden on, or otherwise promote, competition,
as it would enable LMMs and RMMs to streamline the process by which
they request appointments (and relinquishment of appointments) and get
notified of approvals or denials related to such requests, which, in
turn, would reduce the time and resources expended by such Market
Makers and the Exchange on the appointment process.
---------------------------------------------------------------------------
\27\ Id.
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received from Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \28\ and Rule 19b-4(f)(6) \29\
thereunder.
---------------------------------------------------------------------------
\28\ 15 U.S.C. 78s(b)(3)(A).
\29\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
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 r[email protected]. Please include
File Number SR-MIAX-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-MIAX-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
[[Page 31816]]
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-
MIAX-2018-13 and should be submitted on or before July 30, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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\30\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14545 Filed 7-6-18; 8:45 am]
BILLING CODE P
