Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 40110-40112 [2018-17253]

Download as PDF 40110 Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices sradovich on DSK3GMQ082PROD with NOTICES The Exchange believes that amending the ORF from $0.0010 to $0.0020 as of August 1, 2018 is equitable and not unfairly discriminatory because assessing the ORF to each Member for options transactions cleared by OCC in the customer range where the execution occurs on another exchange and is cleared by a GEMX Member is an equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities. The ORF is collected by OCC on behalf of GEMX from Exchange clearing members for all customer transactions they clear or from non-members for all customer transactions they clear that were executed on GEMX. The Exchange believes the ORF ensures fairness by assessing fees to Members based on the amount of customer options business they conduct. Regulating customer trading activity is much more labor intensive and requires greater expenditure of human and technical resources than regulating non-customer trading activity, which tends to be more automated and less labor-intensive. As a result, the costs associated with administering the customer component of the Exchange’s overall regulatory program are materially higher than the costs associated with administering the non-customer component (e.g., Member proprietary transactions) of its regulatory program. The ORF is designed to recover a material portion of the costs of supervising and regulating Members’ customer options business including performing routine surveillances, investigations, examinations, financial monitoring, and policy, rulemaking, interpretive, and enforcement activities. The Exchange will monitor the amount of revenue collected from the ORF to ensure that it, in combination with its other regulatory fees and fines, does not exceed the Exchange’s total regulatory costs. The Exchange has designed the ORF to generate revenues that, when combined with all of the Exchange’s other regulatory fees, will be less than or equal to the Exchange’s regulatory costs, which is consistent with the Commission’s view that regulatory fees be used for regulatory purposes and not to support the Exchange’s business side. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. This proposal does not create an unnecessary or inappropriate intra-market burden on VerDate Sep<11>2014 20:42 Aug 10, 2018 Jkt 244001 competition because the ORF applies to all customer activity, thereby raising regulatory revenue to offset regulatory expenses. It also supplements the regulatory revenue derived from noncustomer activity. This proposal does not create an unnecessary or inappropriate inter-market burden on competition because it is a regulatory fee that supports regulation in furtherance of the purposes of the Act. The Exchange is obligated to ensure that the amount of regulatory revenue collected from the ORF, in combination with its other regulatory fees and fines, does not exceed regulatory costs. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.9 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule 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 No. SR– GEMX–2018–27 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 No. SR–GEMX–2018–27. 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 No. SR–GEMX–2018–27, and should be submitted on or before September 4, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–17254 Filed 8–10–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–83788; File No. SR–MIAX– 2018–18] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule August 7, 2018. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 10 17 9 15 PO 00000 U.S.C. 78s(b)(3)(A)(ii). Frm 00130 Fmt 4703 Sfmt 4703 1 15 E:\FR\FM\13AUN1.SGM CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 13AUN1 Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices thereunder,2 notice is hereby given that on July 31, 2018, Miami International Securities Exchange LLC (‘‘MIAX Options’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend the MIAX Options Fee Schedule (the ‘‘Fee Schedule’’). The text of the proposed rule change is available on the Exchange’s website at https://www.miaxoptions.com/rulefilings, at MIAX’s principal office, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. sradovich on DSK3GMQ082PROD with NOTICES 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 Fee Schedule to adopt a stock handling fee for stock-option orders (including stock-option eQuotes) executed against other stock-option orders in the complex order book, which the Exchange must route to an outside venue. The Exchange recently amended Exchange Rule 518, Complex Orders, to update its rule text regarding stockoption orders, in connection with the upcoming launch of such orders on the Exchange.3 Complex orders began trading on the Exchange on October 24, 2 17 CFR 240.19b–4. Securities Exchange Act Release No. 83726 (July 27, 2018) (SR–MIAX–2018–16) Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Exchange Rule 518, Complex Orders. 3 See VerDate Sep<11>2014 20:42 Aug 10, 2018 Jkt 244001 2016.4 In its rule filing to establish the trading of complex orders, the Exchange adopted rules for handling stock-option orders.5 The Exchange also indicated that it would determine when stockoption orders would be made available for trading in the System 6 and would communicate such determination to Members 7 via Regulatory Circular.8 The Exchange made certain changes to its rule text, in connection with the upcoming launch of such orders on the Exchange, which is scheduled for Q3 2018. The Exchange proposes to adopt a stock handling fee applicable to stockoption orders (including stock-option eQuotes) executed against other stockoption orders in the complex order book, which the Exchange must route to an outside venue. Specifically, the Exchange proposes to adopt a stock handling fee of $0.0010 per share for the stock leg of stock-option orders executed against other stock-option orders in the complex order book, which are routed to an outside venue. This stock handling fee to be assessed by the Exchange will cover all fees charged by the outside venue that prints the trade, and it is also intended to compensate the Exchange for matching these stock-option orders against other stock-option orders on the complex order book. A maximum of $50 per order, per day, will be assessed under this fee. The cap is intended to give market participants assurance that they will not pay more than the capped amount for the execution of the stock leg of their stock-option orders. The Exchange believes that by limiting this fee to a maximum of $50 per order, per day, the Exchange addresses the possibility that a GTC order could be executed over multiple days. For example, if such an order was partiallyexecuted on a Monday, and then the remainder was fully-executed on a Tuesday, the total maximum fee charged to the market participant would be $100 ($50 per day). In addition to the Exchange’s fee, the Exchange will also pass through to the Member any fees assessed by the routing broker-dealer utilized by the Exchange with respect to 4 See MIAX Regulatory Circular 2016–43, October 20, 2016. 5 See Securities Exchange Act Release No. 79072 (October 7, 2014), 81 FR 71131 (October 14, 2016) (SR–MIAX–2016–26). 6 The term ‘‘System’’ means the automated trading system used by the Exchange for the trading of securities. See Exchange Rule 100. 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 See supra note 3. PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 40111 the execution of the stock leg of any such order (with such fees to be passed through at cost). For example, the Exchange anticipates that the routing broker-dealer will bill the Exchange for Section 31 fees and FINRA Trading Activity Fees with respect to the execution of the stock leg of any such order. The Exchange will pass such fees through to the Member, at cost (that is, without any additional mark-up). Separately, the Exchange also notes that it currently charges fees to Members who subscribe to an Exchange-provided data feed that contains real-time clearing trade updates, which includes trades in its complex order book. Specifically, through the Exchange’s Clearing Trade Drop (‘‘CTD’’) port, it provides updates, including the Member’s clearing trade messages, on a low latency, real-time basis.9 With respect to stock-option orders, the Exchange notes that while such CTD port will now include information relating to the execution of both the option leg(s) and the stock leg(s) of a stock-option order, the Exchange will not charge an additional CTD fee for the stock leg(s) of a stock-option order. The proposed rule change is scheduled to become operative on August 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 10 in general, and furthers the objectives of Section 6(b)(4) of the Act 11 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among Exchange Members and issuers and other persons using its facilities The Exchange also believes the proposal furthers the objectives of Section 6(b)(5) of the Act 12 in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest and is not designed to permit unfair discrimination between customer, issuers, brokers and dealers. The Exchange believes that the proposed stock handling fee for stockoption orders (including stock-option eQuotes) is consistent with Section 6(b)(4) of the Act in that it is reasonable, equitable and not unfairly discriminatory. The Exchange believes the proposed stock handling fee for 9 See Fee Schedule 5)d)iii). U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(4). 12 15 U.S.C. 78f(b)(5). 10 15 E:\FR\FM\13AUN1.SGM 13AUN1 40112 Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices stock-option orders is reasonable and equitable as the proposed fee will cover the costs of developing and maintaining the systems that allow for the matching and processing of the stock legs of stockoption orders executed in the complex order book, as well as all fees charged by the outside venue that prints the trade. The Exchange also believes it is reasonable and equitable to pass through to the Member any fees assessed by the routing broker-dealer utilized by the Exchange with respect to the execution of the stock leg of any such order (with such fees to be passed through at cost). The Exchange notes that another exchange has a comparable fee for the handling of the stock leg of stock-option orders. Specifically, Nasdaq ISE (‘‘ISE’’) charges a stock handling fee of $0.0010 per share which is capped at $50 per order.13 The Exchange also believes that its proposal is consistent with Section 6(b)(5) of the Act 14 because it will be uniformly applied to all Members that execute stock-option orders in the complex order book on the Exchange. 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,16 and Rule 19b–4(f)(2)17 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. B. Self-Regulatory Organization’s Statement on Burden on Competition 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–2018–18 on the subject line. The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed fee is similar to and within the range of fees charged by the Exchange’s competitor.15 The Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges and to attract order flow to the Exchange. For the reasons stated above, the Exchange believes that the proposed rule change reflects this competitive environment. sradovich on DSK3GMQ082PROD with NOTICES C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. 13 See ISE Schedule of Fees, Section II; see also Securities Exchange Act Release No. 74117 (January 22, 2015), 80 FR 4600 (January 28, 2015) (SR–ISE– 2015–03). 14 15 U.S.C. 78f(b)(5). 15 See supra note 13. VerDate Sep<11>2014 20:42 Aug 10, 2018 Jkt 244001 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: 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–2018–18. 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 16 15 17 17 PO 00000 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). Frm 00132 Fmt 4703 Sfmt 4703 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–2018–18 and should be submitted on or before September 4, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–17253 Filed 8–10–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–83792; File No. SR– CboeBZX–2018–040] Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To List and Trade Shares of SolidX Bitcoin Shares Issued by the VanEck SolidX Bitcoin Trust August 7, 2018. On June 20, 2018, Cboe BZX Exchange, Inc. (‘‘BZX’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to list and trade shares of SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust, under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares. The proposed rule change was published for comment in the Federal Register on July 2, 2018.3 As of August 6, 2018, the Commission has received more than 1,300 comments on the proposed rule change.4 18 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 83520 (June 26, 2018), 83 FR 31014 (July 2, 2018). 4 All comments on the proposed rule change are available on the Commission’s website at: https:// www.sec.gov/comments/sr-cboebzx-2018-040/ cboebzx2018040.htm. 1 15 E:\FR\FM\13AUN1.SGM 13AUN1

Agencies

[Federal Register Volume 83, Number 156 (Monday, August 13, 2018)]
[Notices]
[Pages 40110-40112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17253]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83788; File No. SR-MIAX-2018-18]


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

August 7, 2018.
    Pursuant to the provisions of Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4

[[Page 40111]]

thereunder,\2\ notice is hereby given that on July 31, 2018, Miami 
International Securities Exchange LLC (``MIAX Options'' 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend the MIAX Options Fee 
Schedule (the ``Fee Schedule'').
    The text of the proposed rule change is available on the Exchange's 
website at https://www.miaxoptions.com/rule-filings, at MIAX's principal 
office, and at the Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend the Fee Schedule to adopt a stock 
handling fee for stock-option orders (including stock-option eQuotes) 
executed against other stock-option orders in the complex order book, 
which the Exchange must route to an outside venue.
    The Exchange recently amended Exchange Rule 518, Complex Orders, to 
update its rule text regarding stock-option orders, in connection with 
the upcoming launch of such orders on the Exchange.\3\ Complex orders 
began trading on the Exchange on October 24, 2016.\4\ In its rule 
filing to establish the trading of complex orders, the Exchange adopted 
rules for handling stock-option orders.\5\ The Exchange also indicated 
that it would determine when stock-option orders would be made 
available for trading in the System \6\ and would communicate such 
determination to Members \7\ via Regulatory Circular.\8\ The Exchange 
made certain changes to its rule text, in connection with the upcoming 
launch of such orders on the Exchange, which is scheduled for Q3 2018.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 83726 (July 27, 
2018) (SR-MIAX-2018-16) Notice of Filing and Immediate Effectiveness 
of a Proposed Rule Change to Amend Exchange Rule 518, Complex 
Orders.
    \4\ See MIAX Regulatory Circular 2016-43, October 20, 2016.
    \5\ See Securities Exchange Act Release No. 79072 (October 7, 
2014), 81 FR 71131 (October 14, 2016) (SR-MIAX-2016-26).
    \6\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \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\ See supra note 3.
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    The Exchange proposes to adopt a stock handling fee applicable to 
stock-option orders (including stock-option eQuotes) executed against 
other stock-option orders in the complex order book, which the Exchange 
must route to an outside venue. Specifically, the Exchange proposes to 
adopt a stock handling fee of $0.0010 per share for the stock leg of 
stock-option orders executed against other stock-option orders in the 
complex order book, which are routed to an outside venue. This stock 
handling fee to be assessed by the Exchange will cover all fees charged 
by the outside venue that prints the trade, and it is also intended to 
compensate the Exchange for matching these stock-option orders against 
other stock-option orders on the complex order book. A maximum of $50 
per order, per day, will be assessed under this fee. The cap is 
intended to give market participants assurance that they will not pay 
more than the capped amount for the execution of the stock leg of their 
stock-option orders. The Exchange believes that by limiting this fee to 
a maximum of $50 per order, per day, the Exchange addresses the 
possibility that a GTC order could be executed over multiple days. For 
example, if such an order was partially-executed on a Monday, and then 
the remainder was fully-executed on a Tuesday, the total maximum fee 
charged to the market participant would be $100 ($50 per day). In 
addition to the Exchange's fee, the Exchange will also pass through to 
the Member any fees assessed by the routing broker-dealer utilized by 
the Exchange with respect to the execution of the stock leg of any such 
order (with such fees to be passed through at cost). For example, the 
Exchange anticipates that the routing broker-dealer will bill the 
Exchange for Section 31 fees and FINRA Trading Activity Fees with 
respect to the execution of the stock leg of any such order. The 
Exchange will pass such fees through to the Member, at cost (that is, 
without any additional mark-up).
    Separately, the Exchange also notes that it currently charges fees 
to Members who subscribe to an Exchange-provided data feed that 
contains real-time clearing trade updates, which includes trades in its 
complex order book. Specifically, through the Exchange's Clearing Trade 
Drop (``CTD'') port, it provides updates, including the Member's 
clearing trade messages, on a low latency, real-time basis.\9\ With 
respect to stock-option orders, the Exchange notes that while such CTD 
port will now include information relating to the execution of both the 
option leg(s) and the stock leg(s) of a stock-option order, the 
Exchange will not charge an additional CTD fee for the stock leg(s) of 
a stock-option order.
---------------------------------------------------------------------------

    \9\ See Fee Schedule 5)d)iii).
---------------------------------------------------------------------------

    The proposed rule change is scheduled to become operative on August 
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 \10\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \11\ in 
particular, in that it provides for the equitable allocation of 
reasonable dues, fees and other charges among Exchange Members and 
issuers and other persons using its facilities The Exchange also 
believes the proposal furthers the objectives of Section 6(b)(5) of the 
Act \12\ in that it is designed to promote just and equitable 
principles of trade, to remove impediments to and perfect the mechanism 
of a free and open market and a national market system, and, in general 
to protect investors and the public interest and is not designed to 
permit unfair discrimination between customer, issuers, brokers and 
dealers.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed stock handling fee for 
stock-option orders (including stock-option eQuotes) is consistent with 
Section 6(b)(4) of the Act in that it is reasonable, equitable and not 
unfairly discriminatory. The Exchange believes the proposed stock 
handling fee for

[[Page 40112]]

stock-option orders is reasonable and equitable as the proposed fee 
will cover the costs of developing and maintaining the systems that 
allow for the matching and processing of the stock legs of stock-option 
orders executed in the complex order book, as well as all fees charged 
by the outside venue that prints the trade. The Exchange also believes 
it is reasonable and equitable to pass through to the Member any fees 
assessed by the routing broker-dealer utilized by the Exchange with 
respect to the execution of the stock leg of any such order (with such 
fees to be passed through at cost). The Exchange notes that another 
exchange has a comparable fee for the handling of the stock leg of 
stock-option orders. Specifically, Nasdaq ISE (``ISE'') charges a stock 
handling fee of $0.0010 per share which is capped at $50 per order.\13\ 
The Exchange also believes that its proposal is consistent with Section 
6(b)(5) of the Act \14\ because it will be uniformly applied to all 
Members that execute stock-option orders in the complex order book on 
the Exchange.
---------------------------------------------------------------------------

    \13\ See ISE Schedule of Fees, Section II; see also Securities 
Exchange Act Release No. 74117 (January 22, 2015), 80 FR 4600 
(January 28, 2015) (SR-ISE-2015-03).
    \14\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed fee is similar to 
and within the range of fees charged by the Exchange's competitor.\15\ 
The Exchange notes that it operates in a highly competitive market in 
which market participants can readily favor competing venues if they 
deem fee levels at a particular venue to be excessive. In such an 
environment, the Exchange must continually adjust its fees to remain 
competitive with other exchanges and to attract order flow to the 
Exchange. For the reasons stated above, the Exchange believes that the 
proposed rule change reflects this competitive environment.
---------------------------------------------------------------------------

    \15\ See supra note 13.
---------------------------------------------------------------------------

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,\16\ and Rule 19b-4(f)(2)\17\ 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.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \17\ 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-MIAX-2018-18 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-2018-18. 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-MIAX-2018-18 and should be submitted on 
or before September 4, 2018.
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    \18\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-17253 Filed 8-10-18; 8:45 am]
 BILLING CODE 8011-01-P
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