Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 10166-10169 [2019-05085]
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10166
Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Notices
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 such
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–NYSEAMER–2019–02, and
should be submitted on or before April
9, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–05086 Filed 3–18–19; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–85301; File No. SR–MIAX–
2019–09]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule
March 13, 2019.
Pursuant to the provisions of Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on February 28, 2019, Miami
International Securities Exchange, LLC
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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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’’).
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
on March 1, 2019.
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
16 17
(‘‘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. Purpose
The Exchange proposes to amend its
Fee Schedule to (i) decrease the amount
of the per contract credit assessable to
Agency Orders (defined below) in a
cPRIME Auction (‘‘cPRIME Agency
Order Credit’’) for Members 3 in Tier 4
of the Priority Customer Rebate Program
(‘‘PCRP’’) 4 and (ii) establish an
3 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.
4 Under the PCRP, MIAX Options credits each
Member the per contract amount resulting from
each Priority Customer order transmitted by that
Member which is executed electronically on the
Exchange in all multiply-listed option classes
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alternative cPRIME Agency Order Credit
amount for cPRIME Agency Orders in
Tier 4 of the PCRP, that will apply
instead of the credit otherwise
applicable to such orders, if a certain
threshold is satisfied by the Member.
Exchange Rule 518(b)(7) defines a
cPRIME Order as a type of complex
order 5 that is submitted for
participation in a cPRIME Auction and
trading of cPRIME Orders is governed
by Rule 515A, Interpretations and
Policies .12.6 cPRIME Orders are
processed and executed in the
Exchange’s PRIME mechanism, the
same mechanism that the Exchange uses
to process and execute simple PRIME
orders, pursuant to Exchange Rule
515A.7 PRIME is a process by which a
Member may electronically submit for
execution an order it represents as agent
(an ‘‘Agency Order’’) against principal
interest and/or solicited interest. The
Member that submits the Agency Order
(‘‘Initiating Member’’) agrees to
guarantee the execution of the Agency
Order by submitting a contra-side order
representing principal interest or
solicited interest (‘‘Contra-Side Order’’).
When the Exchange receives a properly
designated Agency Order for Auction
processing, a request for response
(‘‘RFR’’) detailing the option, side, size
(excluding, in simple or complex as applicable,
QCC and cQCC Orders, mini-options, Priority
Customer-to-Priority Customer Orders, C2C and
cC2C Orders, PRIME and cPRIME AOC Responses,
PRIME and cPRIME Contra-side Orders, PRIME and
cPRIME Orders for which both the Agency and
Contra-side Order are Priority Customers, and
executions related to contracts that are routed to
one or more exchanges in connection with the
Options Order Protection and Locked/Crossed
Market Plan referenced in Exchange Rule 1400),
provided the Member meets certain percentage
thresholds in a month as described in the Priority
Customer Rebate Program table. See Fee Schedule,
Section (1)(a)(iii).
5 A ‘‘complex order’’ is any order involving the
concurrent purchase and/or sale of two or more
different options in the same underlying security
(the ‘‘legs’’ or ‘‘components’’ of the complex order),
for the same account, in a ratio that is equal to or
greater than one-to-three (.333) and less than or
equal to three-to-one (3.00) and for the purposes of
executing a particular investment strategy. A
complex order can also be a ‘‘stock-option’’ order,
which is an order to buy or sell a stated number
of units of an underlying security coupled with the
purchase or sale of options contract(s) on the
opposite side of the market, subject to certain
contingencies set forth in the proposed rules
governing complex orders. For a complete
definition of a ‘‘complex order,’’ see Exchange Rule
518(a)(5). See also Securities Exchange Act Release
No. 78620 (August 18, 2016), 81 FR 58770 (August
25, 2016) (SR–MIAX–2016–26).
6 See Securities Exchange Act Release No. 81131
(July 12, 2017), 82 FR 32900 (July 18, 2017) (SR–
MIAX–2017–19). (Order Granting Approval of a
Proposed Rule Change to Amend MIAX Options
Rules 515, Execution of Orders and Quotes; 515A,
MIAX Price Improvement Mechanism (‘‘PRIME’’)
and PRIME Solicitation Mechanism; and 518,
Complex Orders).
7 Id.
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and initiating price is broadcasted to
MIAX Options participants up to an
optional designated limit price.
Members may submit responses to the
RFR, which can be either an Auction or
Cancel (‘‘AOC’’) order or an AOC
eQuote. A cPRIME Auction is the priceimprovement mechanism of the
Exchange’s System pursuant to which
an Initiating Member electronically
submits a complex Agency Order into a
cPRIME Auction. The Initiating
Member, in submitting an Agency
Order, must be willing to either (i) cross
the Agency Order at a single price
against principal or solicited interest, or
(ii) automatically match against
principal or solicited interest, the price
and size of a RFR that is broadcast to
MIAX Options participants up to an
optional designated limit price. Such
responses are defined as cPRIME AOC
Responses or cPRIME eQuotes.
cPRIME Agency Order Fees
In the PCRP, the Exchange assesses an
Agency Order Credit for cPRIME
Agency Orders. The Exchange currently
credits each Member $0.10 per contract
per leg for each Priority Customer 8
complex order submitted into the
cPRIME Auction as a cPRIME Agency
Order in Tiers 1, 2 and 3. The Exchange
currently credits each Member $0.22 per
contract per leg for each Priority
Customer complex order submitted into
the cPRIME Auction as a cPRIME
Agency Order in Tier 4. However, no
credit is assessed if the cPRIME Agency
Order executes against a Contra-Side
Order which is also from another a
Priority Customer. Further, the per
contract credit for cPRIME Agency
Orders will continue to be assessable to
the first 1,000 contracts per leg for each
cPRIME Agency Order, which applies to
all Tiers of the PCRP. The Exchange
proposes to decrease the cPRIME
Agency Order Credit for Members who
are in Tier 4 of the PCRP from $0.22 to
$0.10. The purpose of such decrease in
Tier 4 is to align the credit offered for
cPRIME Agency Orders in all Tiers to
now be $0.10. The Exchange previously
increased the cPRIME Agency Order
Credit for Members who are in Tier 4 of
the PCRP from $0.10 to $0.22 in order
to encourage market participants to
submit more Priority Customer cPRIME
Agency Orders and therefore increase
8 ‘‘Priority Customer’’ means a person or entity
that (i) is not a broker or dealer in securities, and
(ii) does not place more than 390 orders in listed
options per day on average during a calendar month
for its own beneficial accounts(s). A ‘‘Priority
Customer Order’’ means an order for the account of
a Priority Customer. See Exchange Rule 100.
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Priority Customer order flow.9 The
Exchange now believes, that it is
appropriate to adjust this credit to be
consistent with the other PCRP Tiers.
Alternative Credit for cPRIME Agency
Orders
The Exchange additionally proposes
to establish an alternative cPRIME
Agency Order Credit amount for
cPRIME Agency Orders in Tier 4 of the
PCRP that will apply instead of the
credit otherwise applicable to such
orders, if a certain threshold is satisfied
by the Member. Specifically, the
Exchange proposes the following
additional threshold: If any Member or
its Affiliate 10 that qualifies for PCRP
Tier 4 executes Priority Customer
standard, non-paired complex volume at
least equal to or greater than their
Priority Customer cPRIME Agency
Order volume, on a monthly basis, then
the Member will receive a credit of
$0.22 per contract for cPRIME Agency
Orders instead of the credit otherwise
applicable to such orders in Tier 4. The
Exchange believes that establishing this
additional threshold will encourage
market participants to submit more
complex orders and therefore increase
Priority Customer order flow.
9 See Securities Exchange Act Release No. 81372
(August 10, 2017), 82 FR 157 (August 16, 2017)
(SR–MIAX–2017–40).
10 For purposes of the MIAX Options Fee
Schedule, the term ‘‘Affiliate’’ means (i) an affiliate
of a Member of at least 75% common ownership
between the firms as reflected on each firm’s Form
BD, Schedule A, (‘‘Affiliate’’), or (ii) the Appointed
Market Maker of an Appointed EEM (or, conversely,
the Appointed EEM of an Appointed Market
Maker). An ‘‘Appointed Market Maker’’ is a MIAX
Market Maker (who does not otherwise have a
corporate affiliation based upon common
ownership with an EEM) that has been appointed
by an EEM and an ‘‘Appointed EEM’’ is an EEM
(who does not otherwise have a corporate affiliation
based upon common ownership with a MIAX
Market Maker) that has been appointed by a MIAX
Market Maker, pursuant to the following process. A
MIAX Market Maker appoints an EEM and an EEM
appoints a MIAX Market Maker, for the purposes
of the Fee Schedule, by each completing and
sending an executed Volume Aggregation Request
Form by email to membership@miaxoptions.com no
later than 2 business days prior to the first business
day of the month in which the designation is to
become effective. Transmittal of a validly
completed and executed form to the Exchange along
with the Exchange’s acknowledgement of the
effective designation to each of the Market Maker
and EEM will be viewed as acceptance of the
appointment. The Exchange will only recognize one
designation per Member. A Member may make a
designation not more than once every 12 months
(from the date of its most recent designation), which
designation shall remain in effect unless or until the
Exchange receives written notice submitted 2
business days prior to the first business day of the
month from either Member indicating that the
appointment has been terminated. Designations will
become operative on the first business day of the
effective month and may not be terminated prior to
the end of the month. Execution data and reports
will be provided to both parties.
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Specifically, the Exchange believes that
by encouraging market participants to
execute Priority Customer standard,
non-paired complex volume at least
equal to or greater than their Priority
Customer cPRIME Agency Order
volume in order to receive a credit of
$0.22 per contract for cPRIME Agency
Orders instead of the credit otherwise
applicable to such orders in Tier 4 of the
PCRP will increase volume of Priority
Customer standard, non-paired complex
order and of Priority Customer complex
orders, which will result in increased
liquidity which benefits all Exchange
participants by providing more trading
opportunities and tighter spreads.
The proposed rule change is
scheduled to become operative March 1,
2019.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 11
in general, and furthers the objectives of
Section 6(b)(4) of the Act,12 in that it is
an equitable allocation of reasonable
dues, fees and other charges among
Exchange members and issuers and
other persons using its facilities, and
6(b)(5) of the Act,13 in that it is designed
to prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The Exchange’s proposal to decrease
the cPRIME Agency Order Credit
assessable to Priority Customer cPRIME
Agency Orders by Members in Tier 4 of
the PCRP is consistent with Section
6(b)(4) of the Act 14 because it applies
equally to all participants with similar
order flow in that tier. The Exchange
believes that the proposed PCRP rebate
decrease in Tier 4 for Priority Customer
orders submitted into cPRIME Auctions
is fair, equitable, and not unreasonably
discriminatory. The PCRP is reasonably
designed because it will incentivize
providers of Priority Customer order
flow to send that Priority Customer
order flow to the Exchange in order to
obtain the highest volume threshold and
receive credits in a manner that enables
the Exchange to improve its overall
competitiveness and strengthen its
11 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
13 15 U.S.C. 78f(b)(1) and (b)(5).
14 15 U.S.C. 78f(b)(4).
12 15
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Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Notices
market quality for all market
participants. Additionally, the Exchange
believes that for competitive and
business reasons, it is now appropriate
to decrease the cPRIME Agency Order
Credit in PCRP Tier 4 to be aligned with
existing cPRIME Agency Order Credits
in PRCP Tiers 1, 2 and 3.
In addition, the proposal is also
consistent with Section 6(b)(5) of the
Act 15 because it perfects the
mechanisms of a free and open market
and a national market system and
protects investors and the public
interest because, by aligning the credit
offered to Members in Tier 4 to the
credits offered for the same types of
orders in Tiers 1, 2 and 3, Priority
Customer order flow will be increased
and an increase in Priority Customer
order flow will bring greater volume and
liquidity, which benefit all market
participants by providing more trading
opportunities and tighter spreads. To
the extent Priority Customer order flow
is increased by the proposal, market
participants will increasingly compete
for the opportunity to trade on the
Exchange including sending more
orders and providing narrower and
larger-sized quotations in the effort to
trade with such Priority Customer order
flow.
The Exchange’s proposal to establish
an alternative cPRIME Agency Order
Credit amount for cPRIME Agency
Orders in Tier 4 of the PCRP that will
apply instead of the credit otherwise
applicable to such orders, if a certain
threshold is satisfied by the Member is
consistent with Section 6(b)(4) of the
Act 16 because it applies equally to all
participants with similar order flow in
that tier. The Exchange believes that the
proposed alternative threshold by which
any Member or its Affiliate that qualifies
for PCRP volume Tier 4 and executes
Priority Customer standard, non-paired
complex volume at least equal to or
greater than their Priority Customer
cPRIME Agency Order volume, on a
monthly basis, receives a credit of $0.22
per contract for cPRIME Agency Orders
instead of the credit otherwise
applicable to such orders in Tier 4 is
fair, equitable, and not unreasonably
discriminatory because it will encourage
Members to submit both Priority
Customer standard, non-paired complex
orders and Priority Customer complex
orders, which will increase liquidity,
which benefit all market participants by
providing more trading opportunities
and tighter spreads. The PCRP is
reasonably designed because it will
incentivize providers of Priority
15 15
16 15
U.S.C. 78f(b)(1) and (b)(5).
U.S.C. 78f(b)(4).
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17:54 Mar 18, 2019
Customer order flow to send that
Priority Customer order flow to the
Exchange in order to obtain the highest
volume threshold and receive a credit in
a manner that enables the Exchange to
improve its overall competitiveness and
strengthen its market quality for all
market participants.
In addition, the proposal is also
consistent with Section 6(b)(5) of the
Act 17 because it perfects the
mechanisms of a free and open market
and a national market system and
protects investors and the public
interest because, while only certain
Priority Customer order flow qualifies
for the rebate program under the PCRP
and specifically only order flow by
Members in Tier 4 of the PCRP that
meet the additional threshold will
receive the greater rebate, an increase in
Priority Customer order flow will bring
greater volume and liquidity, which
benefit all market participants by
providing more trading opportunities
and tighter spreads. To the extent
Priority Customer order flow is
increased by the proposal, market
participants will increasingly compete
for the opportunity to trade on the
Exchange including sending more
orders and providing narrower and
larger-sized quotations in the effort to
trade with such Priority Customer order
flow.
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 not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
decrease to the cPRIME Agency Order
Credit assessable to cPRIME Agency
Orders by Members in Tier 4 of the
PCRP is intended to promote
consistency across all cPRIME Agency
Order tiers of the PCRP. The Exchange
believes that aligning the cPRIME
credits assessable to cPRIME Agency
Orders in all tiers will not impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act because it will
continue to encourage Priority Customer
order flow and an increase in Priority
Customer order flow will bring greater
volume and liquidity, which benefit all
market participants by providing more
trading opportunities and tighter
spreads. The Exchange further believes
that its proposal to establish an
alternative cPRIME Agency Order Credit
amount for cPRIME Agency Orders in
Tier 4 of the PCRP that will apply
17 15
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U.S.C. 78f(b)(1) and (b)(5).
Frm 00149
Fmt 4703
Sfmt 4703
instead of the credit otherwise
applicable to such orders, if a certain
threshold is satisfied by the Member
will not have an impact on intra-market
competition. Specifically, the Exchange
believes that the proposal to establish an
additional threshold by which any
Member or its Affiliate that qualifies for
PCRP Tier 4 and executes Priority
Customer standard, non-paired complex
volume at least equal to or greater than
their Priority Customer cPRIME Agency
Order volume, on a monthly basis,
receives a credit of $0.22 per contract
for cPRIME Agency Orders instead of
the credit otherwise applicable to such
orders in Tier 4, will encourage
Members to submit both Priority
Customer standard, non-paired complex
orders and Priority Customer complex
orders, which will increase liquidity,
which benefits all market participants
by providing more trading opportunities
and tighter spreads. Because the
proposal offers an additional threshold
by which a Member can receive a higher
credit for cPRIME Agency Orders
instead of the credit otherwise
applicable to such orders in Tier 4, and
aligns the credits otherwise offered for
such orders in all tiers, the Exchange
believes that the proposed rule change
will not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act.
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. The
Exchange believes that the proposed
rule change reflects this competitive
environment because they modify the
Exchange’s fees in a manner that
encourages market participants to
provide liquidity and to send order flow
to the Exchange.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act,18 and Rule
18 15
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U.S.C. 78s(b)(3)(A)(ii).
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Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Notices
19b–4(f)(2) 19 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–2019–09 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–2019–09. 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
19 17
CFR 240.19b-4(f)(2).
VerDate Sep<11>2014
17:54 Mar 18, 2019
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–2019–09 and should
be submitted on or before April 9, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–05085 Filed 3–18–19; 8:45 am]
BILLING CODE 8011–01–P
[Public Notice: 10711]
U.S. Advisory Commission on Public
Diplomacy; Notice of Meeting
The U.S. Advisory Commission on
Public Diplomacy will hold a public
meeting from 10:30 a.m. until 12:00
p.m., Thursday, April 11, 2019, at the
U.S. Capitol Visitor Center in Room
SVC–209–208 (First St. NE, Washington,
DC 20515). The focus of the meeting
will be the Department of State’s multiyear Public Diplomacy modernization
effort.
This meeting is open to the public,
including the media and members and
staff of governmental and nongovernmental organizations. Any
requests for a reasonable
accommodation for a disability should
be sent by email to Michelle Bowen at
BowenMC1@state.gov by 5:00 p.m. on
Thursday, April 4, 2019. Attendees
should plan to arrive for the meeting by
10:15 a.m. to allow for a prompt start.
The U.S. Advisory Commission on
Public Diplomacy appraises U.S.
government activities intended to
understand, inform, and influence
foreign publics. The Advisory
Commission may conduct studies,
inquiries, and meetings, as it deems
necessary. It may assemble and
disseminate information and issue
reports and other publications, subject
to the approval of the Chairperson, in
consultation with the Executive
Director. The Advisory Commission
may undertake foreign travel in pursuit
of its studies and coordinate, sponsor, or
oversee projects, studies, events, or
other activities that it deems desirable
and necessary in fulfilling its functions.
For more information on the U.S.
Advisory Commission on Public
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Diplomacy, please visit www.state.gov/
pdcommission. For more information on
the upcoming public meeting, contact
the Commission’s Designated Federal
Official, Jeff Daigle, at DaigleJJ@
state.gov.
John J. Daigle,
Designated Federal Official, Advisory
Commission on Public Diplomacy,
Department of State.
[FR Doc. 2019–05041 Filed 3–18–19; 8:45 am]
BILLING CODE 4710–45–P
SURFACE TRANSPORTATION BOARD
[Docket No. AB 1270]
Port of Benton, Wash.—Adverse
Discontinuance of Rail Service—TriCity Railroad Company, LLC
DEPARTMENT OF STATE
20 17
10169
On February 27, 2019, the Port of
Benton, Wash. (the Port), filed an
application under 49 U.S.C. 10903
requesting that the Surface
Transportation Board (the Board)
authorize the third-party, or ‘‘adverse,’’
discontinuance of operating authority
held by Tri-City Railroad Company, LLC
(Tri-City), a Class III carrier, over
approximately 10.89 miles of main line
track (16 miles including sidings and
connecting spur tracks), from MP 18.84
at Richland Junction to MP 29.73 at
Horn Rapids Road in Richland, Wash.
(the Line). The Line traverses U.S.
Postal Service Zip Codes 99336, 99352,
and 99354, and includes the stations of:
(1) Richland Junction (MP 18.84); (2)
Steptoe Street (MP 19.63); (3) Irrigation
Canal Bridge (MP 19.74); (4) Columbia
Park Trail Overpass (MP 19.96); (5)
Yakima River Bridge (MP 21.0); (6)
Pedestrian Bike Path (MP 21.14); (7)
City Dock (MP 21.51); (8) Jadwin
Avenue (MP 22.03); (9) Berry’s Overpass
Bridge (MP 22.64); (10) Duportail Street
(MP 23.60); (11) Cemetery Road (MP
24.47); (12) Van Giesen Street (MP
25.45); (13) Airport Way (MP 26.04);
(14) Lamb Weston (MP 26.46); (15)
ConAgra (no milepost); (16) Saint Street
(MP 26.92); (17) State Highway 240 (MP
26.97); (18) Tri-City Yard (MP 27.40);
(19) N. Ladder (MP 28.59); (20) City
Track (MP W28.9); (21) Battelle Blvd.
(MP 29.22); and (22) Horn Rapids Road
(MP 29.73).
According to the Port, it acquired the
Line in 1998, with BNSF Railway
Company (BNSF) and Union Pacific
Railroad Company (UP) as operators on
the Line. The Port states that, pursuant
to a 2002 lease, Tri-City began operating
over and maintaining the Line. The Port
now seeks Board authority through an
adverse discontinuance proceeding to
terminate Tri-City’s regulatory authority
E:\FR\FM\19MRN1.SGM
19MRN1
Agencies
[Federal Register Volume 84, Number 53 (Tuesday, March 19, 2019)]
[Notices]
[Pages 10166-10169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05085]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85301; File No. SR-MIAX-2019-09]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
March 13, 2019.
Pursuant to the provisions of Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on February 28, 2019, 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.
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\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'').
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on March 1, 2019.
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 its Fee Schedule to (i) decrease the
amount of the per contract credit assessable to Agency Orders (defined
below) in a cPRIME Auction (``cPRIME Agency Order Credit'') for Members
\3\ in Tier 4 of the Priority Customer Rebate Program (``PCRP'') \4\
and (ii) establish an alternative cPRIME Agency Order Credit amount for
cPRIME Agency Orders in Tier 4 of the PCRP, that will apply instead of
the credit otherwise applicable to such orders, if a certain threshold
is satisfied by the Member.
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\3\ 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.
\4\ Under the PCRP, MIAX Options credits each Member the per
contract amount resulting from each Priority Customer order
transmitted by that Member which is executed electronically on the
Exchange in all multiply-listed option classes (excluding, in simple
or complex as applicable, QCC and cQCC Orders, mini-options,
Priority Customer-to-Priority Customer Orders, C2C and cC2C Orders,
PRIME and cPRIME AOC Responses, PRIME and cPRIME Contra-side Orders,
PRIME and cPRIME Orders for which both the Agency and Contra-side
Order are Priority Customers, and executions related to contracts
that are routed to one or more exchanges in connection with the
Options Order Protection and Locked/Crossed Market Plan referenced
in Exchange Rule 1400), provided the Member meets certain percentage
thresholds in a month as described in the Priority Customer Rebate
Program table. See Fee Schedule, Section (1)(a)(iii).
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Exchange Rule 518(b)(7) defines a cPRIME Order as a type of complex
order \5\ that is submitted for participation in a cPRIME Auction and
trading of cPRIME Orders is governed by Rule 515A, Interpretations and
Policies .12.\6\ cPRIME Orders are processed and executed in the
Exchange's PRIME mechanism, the same mechanism that the Exchange uses
to process and execute simple PRIME orders, pursuant to Exchange Rule
515A.\7\ PRIME is a process by which a Member may electronically submit
for execution an order it represents as agent (an ``Agency Order'')
against principal interest and/or solicited interest. The Member that
submits the Agency Order (``Initiating Member'') agrees to guarantee
the execution of the Agency Order by submitting a contra-side order
representing principal interest or solicited interest (``Contra-Side
Order''). When the Exchange receives a properly designated Agency Order
for Auction processing, a request for response (``RFR'') detailing the
option, side, size
[[Page 10167]]
and initiating price is broadcasted to MIAX Options participants up to
an optional designated limit price. Members may submit responses to the
RFR, which can be either an Auction or Cancel (``AOC'') order or an AOC
eQuote. A cPRIME Auction is the price-improvement mechanism of the
Exchange's System pursuant to which an Initiating Member electronically
submits a complex Agency Order into a cPRIME Auction. The Initiating
Member, in submitting an Agency Order, must be willing to either (i)
cross the Agency Order at a single price against principal or solicited
interest, or (ii) automatically match against principal or solicited
interest, the price and size of a RFR that is broadcast to MIAX Options
participants up to an optional designated limit price. Such responses
are defined as cPRIME AOC Responses or cPRIME eQuotes.
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\5\ A ``complex order'' is any order involving the concurrent
purchase and/or sale of two or more different options in the same
underlying security (the ``legs'' or ``components'' of the complex
order), for the same account, in a ratio that is equal to or greater
than one-to-three (.333) and less than or equal to three-to-one
(3.00) and for the purposes of executing a particular investment
strategy. A complex order can also be a ``stock-option'' order,
which is an order to buy or sell a stated number of units of an
underlying security coupled with the purchase or sale of options
contract(s) on the opposite side of the market, subject to certain
contingencies set forth in the proposed rules governing complex
orders. For a complete definition of a ``complex order,'' see
Exchange Rule 518(a)(5). See also Securities Exchange Act Release
No. 78620 (August 18, 2016), 81 FR 58770 (August 25, 2016) (SR-MIAX-
2016-26).
\6\ See Securities Exchange Act Release No. 81131 (July 12,
2017), 82 FR 32900 (July 18, 2017) (SR-MIAX-2017-19). (Order
Granting Approval of a Proposed Rule Change to Amend MIAX Options
Rules 515, Execution of Orders and Quotes; 515A, MIAX Price
Improvement Mechanism (``PRIME'') and PRIME Solicitation Mechanism;
and 518, Complex Orders).
\7\ Id.
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cPRIME Agency Order Fees
In the PCRP, the Exchange assesses an Agency Order Credit for
cPRIME Agency Orders. The Exchange currently credits each Member $0.10
per contract per leg for each Priority Customer \8\ complex order
submitted into the cPRIME Auction as a cPRIME Agency Order in Tiers 1,
2 and 3. The Exchange currently credits each Member $0.22 per contract
per leg for each Priority Customer complex order submitted into the
cPRIME Auction as a cPRIME Agency Order in Tier 4. However, no credit
is assessed if the cPRIME Agency Order executes against a Contra-Side
Order which is also from another a Priority Customer. Further, the per
contract credit for cPRIME Agency Orders will continue to be assessable
to the first 1,000 contracts per leg for each cPRIME Agency Order,
which applies to all Tiers of the PCRP. The Exchange proposes to
decrease the cPRIME Agency Order Credit for Members who are in Tier 4
of the PCRP from $0.22 to $0.10. The purpose of such decrease in Tier 4
is to align the credit offered for cPRIME Agency Orders in all Tiers to
now be $0.10. The Exchange previously increased the cPRIME Agency Order
Credit for Members who are in Tier 4 of the PCRP from $0.10 to $0.22 in
order to encourage market participants to submit more Priority Customer
cPRIME Agency Orders and therefore increase Priority Customer order
flow.\9\ The Exchange now believes, that it is appropriate to adjust
this credit to be consistent with the other PCRP Tiers.
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\8\ ``Priority Customer'' means a person or entity that (i) is
not a broker or dealer in securities, and (ii) does not place more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial accounts(s). A ``Priority
Customer Order'' means an order for the account of a Priority
Customer. See Exchange Rule 100.
\9\ See Securities Exchange Act Release No. 81372 (August 10,
2017), 82 FR 157 (August 16, 2017) (SR-MIAX-2017-40).
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Alternative Credit for cPRIME Agency Orders
The Exchange additionally proposes to establish an alternative
cPRIME Agency Order Credit amount for cPRIME Agency Orders in Tier 4 of
the PCRP that will apply instead of the credit otherwise applicable to
such orders, if a certain threshold is satisfied by the Member.
Specifically, the Exchange proposes the following additional threshold:
If any Member or its Affiliate \10\ that qualifies for PCRP Tier 4
executes Priority Customer standard, non-paired complex volume at least
equal to or greater than their Priority Customer cPRIME Agency Order
volume, on a monthly basis, then the Member will receive a credit of
$0.22 per contract for cPRIME Agency Orders instead of the credit
otherwise applicable to such orders in Tier 4. The Exchange believes
that establishing this additional threshold will encourage market
participants to submit more complex orders and therefore increase
Priority Customer order flow. Specifically, the Exchange believes that
by encouraging market participants to execute Priority Customer
standard, non-paired complex volume at least equal to or greater than
their Priority Customer cPRIME Agency Order volume in order to receive
a credit of $0.22 per contract for cPRIME Agency Orders instead of the
credit otherwise applicable to such orders in Tier 4 of the PCRP will
increase volume of Priority Customer standard, non-paired complex order
and of Priority Customer complex orders, which will result in increased
liquidity which benefits all Exchange participants by providing more
trading opportunities and tighter spreads.
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\10\ For purposes of the MIAX Options Fee Schedule, the term
``Affiliate'' means (i) an affiliate of a Member of at least 75%
common ownership between the firms as reflected on each firm's Form
BD, Schedule A, (``Affiliate''), or (ii) the Appointed Market Maker
of an Appointed EEM (or, conversely, the Appointed EEM of an
Appointed Market Maker). An ``Appointed Market Maker'' is a MIAX
Market Maker (who does not otherwise have a corporate affiliation
based upon common ownership with an EEM) that has been appointed by
an EEM and an ``Appointed EEM'' is an EEM (who does not otherwise
have a corporate affiliation based upon common ownership with a MIAX
Market Maker) that has been appointed by a MIAX Market Maker,
pursuant to the following process. A MIAX Market Maker appoints an
EEM and an EEM appoints a MIAX Market Maker, for the purposes of the
Fee Schedule, by each completing and sending an executed Volume
Aggregation Request Form by email to membership@miaxoptions.com no
later than 2 business days prior to the first business day of the
month in which the designation is to become effective. Transmittal
of a validly completed and executed form to the Exchange along with
the Exchange's acknowledgement of the effective designation to each
of the Market Maker and EEM will be viewed as acceptance of the
appointment. The Exchange will only recognize one designation per
Member. A Member may make a designation not more than once every 12
months (from the date of its most recent designation), which
designation shall remain in effect unless or until the Exchange
receives written notice submitted 2 business days prior to the first
business day of the month from either Member indicating that the
appointment has been terminated. Designations will become operative
on the first business day of the effective month and may not be
terminated prior to the end of the month. Execution data and reports
will be provided to both parties.
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The proposed rule change is scheduled to become operative March 1,
2019.
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \11\ in general, and
furthers the objectives of Section 6(b)(4) of the Act,\12\ in that it
is an equitable allocation of reasonable dues, fees and other charges
among Exchange members and issuers and other persons using its
facilities, and 6(b)(5) of the Act,\13\ in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanisms of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(4).
\13\ 15 U.S.C. 78f(b)(1) and (b)(5).
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The Exchange's proposal to decrease the cPRIME Agency Order Credit
assessable to Priority Customer cPRIME Agency Orders by Members in Tier
4 of the PCRP is consistent with Section 6(b)(4) of the Act \14\
because it applies equally to all participants with similar order flow
in that tier. The Exchange believes that the proposed PCRP rebate
decrease in Tier 4 for Priority Customer orders submitted into cPRIME
Auctions is fair, equitable, and not unreasonably discriminatory. The
PCRP is reasonably designed because it will incentivize providers of
Priority Customer order flow to send that Priority Customer order flow
to the Exchange in order to obtain the highest volume threshold and
receive credits in a manner that enables the Exchange to improve its
overall competitiveness and strengthen its
[[Page 10168]]
market quality for all market participants. Additionally, the Exchange
believes that for competitive and business reasons, it is now
appropriate to decrease the cPRIME Agency Order Credit in PCRP Tier 4
to be aligned with existing cPRIME Agency Order Credits in PRCP Tiers
1, 2 and 3.
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\14\ 15 U.S.C. 78f(b)(4).
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In addition, the proposal is also consistent with Section 6(b)(5)
of the Act \15\ because it perfects the mechanisms of a free and open
market and a national market system and protects investors and the
public interest because, by aligning the credit offered to Members in
Tier 4 to the credits offered for the same types of orders in Tiers 1,
2 and 3, Priority Customer order flow will be increased and an increase
in Priority Customer order flow will bring greater volume and
liquidity, which benefit all market participants by providing more
trading opportunities and tighter spreads. To the extent Priority
Customer order flow is increased by the proposal, market participants
will increasingly compete for the opportunity to trade on the Exchange
including sending more orders and providing narrower and larger-sized
quotations in the effort to trade with such Priority Customer order
flow.
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\15\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------
The Exchange's proposal to establish an alternative cPRIME Agency
Order Credit amount for cPRIME Agency Orders in Tier 4 of the PCRP that
will apply instead of the credit otherwise applicable to such orders,
if a certain threshold is satisfied by the Member is consistent with
Section 6(b)(4) of the Act \16\ because it applies equally to all
participants with similar order flow in that tier. The Exchange
believes that the proposed alternative threshold by which any Member or
its Affiliate that qualifies for PCRP volume Tier 4 and executes
Priority Customer standard, non-paired complex volume at least equal to
or greater than their Priority Customer cPRIME Agency Order volume, on
a monthly basis, receives a credit of $0.22 per contract for cPRIME
Agency Orders instead of the credit otherwise applicable to such orders
in Tier 4 is fair, equitable, and not unreasonably discriminatory
because it will encourage Members to submit both Priority Customer
standard, non-paired complex orders and Priority Customer complex
orders, which will increase liquidity, which benefit all market
participants by providing more trading opportunities and tighter
spreads. The PCRP is reasonably designed because it will incentivize
providers of Priority Customer order flow to send that Priority
Customer order flow to the Exchange in order to obtain the highest
volume threshold and receive a credit in a manner that enables the
Exchange to improve its overall competitiveness and strengthen its
market quality for all market participants.
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\16\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
In addition, the proposal is also consistent with Section 6(b)(5)
of the Act \17\ because it perfects the mechanisms of a free and open
market and a national market system and protects investors and the
public interest because, while only certain Priority Customer order
flow qualifies for the rebate program under the PCRP and specifically
only order flow by Members in Tier 4 of the PCRP that meet the
additional threshold will receive the greater rebate, an increase in
Priority Customer order flow will bring greater volume and liquidity,
which benefit all market participants by providing more trading
opportunities and tighter spreads. To the extent Priority Customer
order flow is increased by the proposal, market participants will
increasingly compete for the opportunity to trade on the Exchange
including sending more orders and providing narrower and larger-sized
quotations in the effort to trade with such Priority Customer order
flow.
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\17\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------
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 not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes that the
proposed decrease to the cPRIME Agency Order Credit assessable to
cPRIME Agency Orders by Members in Tier 4 of the PCRP is intended to
promote consistency across all cPRIME Agency Order tiers of the PCRP.
The Exchange believes that aligning the cPRIME credits assessable to
cPRIME Agency Orders in all tiers will not impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of the Act because it will continue to encourage Priority Customer
order flow and an increase in Priority Customer order flow will bring
greater volume and liquidity, which benefit all market participants by
providing more trading opportunities and tighter spreads. The Exchange
further believes that its proposal to establish an alternative cPRIME
Agency Order Credit amount for cPRIME Agency Orders in Tier 4 of the
PCRP that will apply instead of the credit otherwise applicable to such
orders, if a certain threshold is satisfied by the Member will not have
an impact on intra-market competition. Specifically, the Exchange
believes that the proposal to establish an additional threshold by
which any Member or its Affiliate that qualifies for PCRP Tier 4 and
executes Priority Customer standard, non-paired complex volume at least
equal to or greater than their Priority Customer cPRIME Agency Order
volume, on a monthly basis, receives a credit of $0.22 per contract for
cPRIME Agency Orders instead of the credit otherwise applicable to such
orders in Tier 4, will encourage Members to submit both Priority
Customer standard, non-paired complex orders and Priority Customer
complex orders, which will increase liquidity, which benefits all
market participants by providing more trading opportunities and tighter
spreads. Because the proposal offers an additional threshold by which a
Member can receive a higher credit for cPRIME Agency Orders instead of
the credit otherwise applicable to such orders in Tier 4, and aligns
the credits otherwise offered for such orders in all tiers, the
Exchange believes that the proposed rule change will not impose any
burden on competition not necessary or appropriate in furtherance of
the purposes of the Act.
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. The
Exchange believes that the proposed rule change reflects this
competitive environment because they modify the Exchange's fees in a
manner that encourages market participants to provide liquidity and to
send order flow to the Exchange.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\18\ and Rule
[[Page 10169]]
19b-4(f)(2) \19\ 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.
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\18\ 15 U.S.C. 78s(b)(3)(A)(ii).
\19\ 17 CFR 240.19b-4(f)(2).
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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-2019-09 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-2019-09. 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-2019-09 and should be submitted on
or before April 9, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-05085 Filed 3-18-19; 8:45 am]
BILLING CODE 8011-01-P