Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 10359-10361 [2019-05213]
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Federal Register / Vol. 84, No. 54 / Wednesday, March 20, 2019 / Notices
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 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
jbell on DSK30RV082PROD with NOTICES
• 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–
MRX–2019–05 on the subject line.
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–MRX–2019–05 and should
be submitted on or before April 10,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–05212 Filed 3–19–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85314; File No. SR–MIAX–
2019–07]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule
Paper Comments
March 14, 2019.
• 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–MRX–2019–05. 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,
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.
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
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
16 15
U.S.C. 78s(b)(3)(A)(ii).
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17:27 Mar 19, 2019
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10359
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
list of MIAX Select Symbols 3 contained
in the Priority Customer Rebate Program
(the ‘‘Program’’) 4 of the Exchange’s Fee
Schedule to delete the symbol ‘‘VXX’’
associated with iPath S&P 500 VIX
Short-Term Futures ETN (‘‘VXX ETN’’).
The Exchange initially created the list
of MIAX Select Symbols on March 1,
2014,5 and has added and removed
option classes from that list since that
time.6 Select Symbols are rebated
slightly higher in certain Program tiers
than non-Select Symbols. The Exchange
notes that the VXX ETN matured on
January 30, 2019.7 Options on the VXX
3 The term ‘‘MIAX Select Symbols’’ means
options overlying AAL, AAPL, AIG, AMAT, AMD,
AMZN, BA, BABA, BB, BIDU, BP, C, CAT, CBS,
CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE,
GILD, GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC,
IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX,
NOK, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S,
SPY, T, TSLA, USO, VALE, VXX, WBA, WFC,
WMB, WY, X, XHB, XLE, XLF, XLP, XOM and
XOP.
4 See section (1)(a)(iii) of the Fee Schedule for a
complete description of the Program.
5 See Securities Exchange Act Release No. 71700
(March 12, 2014), 79 FR 15188 (March 18, 2014)
(SR–MIAX–2014–13).
6 See Securities Exchange Act Release Nos. 8109
(June 26, 2017), 82 FR 29962 (June 30, 2017) (SR–
MIAX–2017–29); 79301 (November 14, 2016), 81 FR
81854 (November 18, 2016) (SR–MIAX–2016–42);
74291(February 18, 2015), 80 FR 9841 (February 24,
2015) (SR–MIAX–2015–09); 74288 (February 18,
2015), 80 FR 9837 (February 24, 2015) (SR–MIAX–
2015–08); 73328 (October 9, 2014), 79 FR 62230
(October 16, 2014) (SR–MIAX–2014–50); 72567
(July 8, 2014), 79 FR 40818 (July 14, 2014) (SR–
MIAX–2014–34); 72356 (June 10, 2014), 79 FR
34384 (June 16, 2014) (SR–MIAX–2014–26); 71700
(March 12, 2014), 79 FR 15188 (March 18, 2014)
(SR–MIAX–2014–13).
7 See Prospectus and Pricing Supplement for
iPath S&P 500 VIX Short-Term Futures ETN
Continued
E:\FR\FM\20MRN1.SGM
20MRN1
10360
Federal Register / Vol. 84, No. 54 / Wednesday, March 20, 2019 / Notices
ETN (‘‘VXX options’’) were authorized
to be listed for trading on the Exchange
pursuant to Rule 402, but are no longer
listed for trading since the VXX ETN
matured and VXX ETN shares are no
longer listed for trading on equity
trading venues.
Accordingly, the Exchange is
amending its Fee Schedule to delete the
symbol VXX from the list of MIAX
Select Symbols contained in the
Program. This amendment is intended
to eliminate any potential confusion and
to make it clear to market participants
that VXX will not be a MIAX Select
Symbol contained in the Program as
VXX Options are no longer listed on the
Exchange.
jbell on DSK30RV082PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal to amend the Fee Schedule is
consistent with Section 6(b) of the Act 8
in general, and furthers the objectives of
Section 6(b)(4) of the Act,9 in that it is
an equitable allocation of reasonable
fees and other charges among Exchange
members and other persons using its
facilities, and 6(b)(5) of the Act,10 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.
In particular, the proposal to delete
the symbol VXX from the list of MIAX
Select Symbols contained in the
Program is consistent with Section
6(b)(4) of the Act because the proposed
changes will allow for continued benefit
to investors by providing them an
updated list of MIAX Select Symbols
contained in the Program on the Fee
Schedule.
The Exchange believes that the
proposal to amend an option class that
qualifies for the credit for transactions
in MIAX Select Symbols is fair,
equitable and not unreasonably
discriminatory. The Exchange believes
that the Program itself is reasonably
designed because it incentivizes
providers of Priority Customer 11 order
available at https://www.ipathetn.com/US/16/en/
documentation.app?instrumentId=259118&
documentId=6204338.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
10 15 U.S.C. 78f(b)(1) and (b)(5).
11 The term ‘‘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
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17:27 Mar 19, 2019
Jkt 247001
flow to send that Priority Customer
order flow to the Exchange in order to
receive a credit in a manner that enables
the Exchange to improve its overall
competitiveness and strengthen its
market quality for all market
participants. The Program, which
provides increased incentives in certain
tiers in high volume select symbols, is
also reasonably designed to increase the
competitiveness of the Exchange with
other options exchanges that also offer
increased incentives to higher volume
symbols.
The Exchange also believes that its
proposal is consistent with Section
6(b)(5) of the Act because it will apply
equally to all Priority Customer orders
in MIAX Select Symbols in the Program.
All similarly situated Priority Customer
orders in MIAX Select Symbols are
subject to the same rebate schedule, and
access to the Exchange is offered on
terms that are not unfairly
discriminatory.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is a not a
competitive filing but rather is designed
to update the list of MIAX Select
Symbols contained in the Program in
order to avoid potential confusion on
the part of market participants.
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,12 and Rule
19b–4(f)(2) 13 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
a calendar month for its own beneficial account(s).
See Exchange Rule 100.
12 15 U.S.C. 78s(b)(3)(A)(ii).
13 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
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–2019–07 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–2019–07. 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–2019–07 and should
be submitted on or before April 10,
2019.
14 17
E:\FR\FM\20MRN1.SGM
CFR 200.30–3(a)(12).
20MRN1
Federal Register / Vol. 84, No. 54 / Wednesday, March 20, 2019 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–05213 Filed 3–19–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85320; File No. SR–
CboeBZX–2019–014]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Relating To
Amend the Fee Schedule Applicable to
Members and Non-Members of the
Exchange Pursuant to BZX Rules
15.1(a) and (c)
March 14, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 1,
2019, Cboe BZX Exchange, Inc.
(‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
jbell on DSK30RV082PROD with NOTICES
Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
to amend the fee schedule applicable to
Members and non-Members 3 of the
Exchange pursuant to BZX Rules 15.1(a)
and (c). The text of the proposed rule
change is attached as Exhibit 5 [sic].
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/bzx/), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 A Member is defined as ‘‘any registered broker
or dealer that has been admitted to membership in
the Exchange.’’ See Exchange Rule 1.5(n).
2 17
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17:27 Mar 19, 2019
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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 applicable to its equities
trading platform (‘‘BZX Equities’’) to (1)
add a fourth Step-Up Tier under
footnote 2, and (2) amend the second
Single MPID Investor Tier under
footnote 4.
Step-Up Tier 4
The Exchange currently offers three
Step-Up Tiers that provide Members
with additional ways to qualify for an
enhanced rebate where they increase
their relative liquidity each month over
a predetermined baseline. Under the
current Step-Up Tiers, a Member
receives a rebate of $0.0030 (Tier 1) or
$0.0031 (Tier 2 and Tier 3) per share for
qualifying orders which yield fee codes
B,4 V,5 or Y 6 if the corresponding
required criteria per tier is met.
The Exchange now proposes to amend
footnote 2 to add a fourth Step-Up Tier.
Under the proposed Step-Up Tier 4, a
Member would receive a rebate of
$0.0032 per share for their qualifying
orders which yield fee codes B, V, or Y
where the Member has a Step-Up Add
TCV from December 2018 greater or
equal to 0.50%. As currently defined in
the BZX Equities fee schedule, Step-Up
Add TCV means ADAV 7 as a percentage
of TCV 8 in the relevant baseline month
4 Fee code B is appended to displayed orders
which add liquidity to Tape B and is provided a
rebate of $0.0025 per share.
5 Fee code V is appended to displayed orders
which add liquidity to Tape A and is provided a
rebate of $0.0020 per share.
6 Fee code Y is appended to displayed orders
which add liquidity to Tape C and is provided a
rebate of $0.0020 per share.
7 ‘‘ADAV’’ means average daily volume calculated
as the number of shares added per day. ADAV is
calculated on a monthly basis.
8 ‘‘TCV’’ means total consolidated volume
calculated as the volume reported by all exchanges
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Sfmt 4703
10361
subtracted from current ADAV as a
percentage of TCV.9 Members that
achieve the proposed Step-Up Tier 4
must therefore increase the amount of
liquidity that they provide on BZX by
.50% relative to their ADAV as a
percentage of TCV in December 2018,
thereby contributing to a deeper and
more liquid market.
Single MPID Investor Tier 2
The Exchange currently offers two
Single MPID Investor Tier under
Footnote 4 of the fee schedule that
provides Members with an additional
way to qualify for an enhanced rebate
for orders yielding fee codes B,10 V,11 or
Y.12 The distinction between the Single
MPID Investor Tiers and other tiers
offered by the Exchange, is that the
volume measured to determine whether
a Member qualifies is performed on a
Member Participant Identifier (‘‘MPID’’)
basis. Currently, a Member receives a
$0.0031 (Tier 1) or $0.0036 (Tier 2) per
share rebate for qualifying orders per
MPID which yield the applicable fee
codes if the corresponding required
criteria per tier is met. Specifically, the
current Tier 2 provides Members an
opportunity to receive an enhanced
rebate of $0.0036 per share where the
Member’s MPID has an ADAV 13 as a
percentage of TCV 14 greater than or
equal to 2.25% on orders yielding the
applicable fee codes.
The Exchange now proposes to amend
Tier 2 of the Single MPID Investor Tiers
so that a Member would receive a rebate
of $0.0032 per share for qualifying
orders on an MPID basis which yield fee
codes B, V, or Y where the MPID has an
ADAV as a percentage of TCV greater or
equal to .75% on orders yielding the
applicable fee codes, and where the
MPID has an ADAV as a percentage of
ADV 15 greater than or equal to 80% on
and trade reporting facilities to a consolidated
transaction reporting plan for the month for which
the fees apply.
9 The following demonstrates how Step-Up Add
TCV is calculated: In December 2018, Member A
had an ADAV of 12,947,242 shares and average
daily TCV was 9,248,029,751, resulting in an ADAV
as a percentage of TCV of 0.14%; In February 2019,
Member A had an ADAV of 46,826,572 and average
daily TCV was 7,093,306,325, resulting in an ADAV
as a percentage of TCV of 0.66%. Member A’s StepUp Add TCV from December 2018 was therefore
0.52% which makes Member A eligible for the Tier
3 rebate. (i.e., 0.66% (Feb 2019) ¥ 0.14% (Dec
2018), which is greater than 0.50% as required by
Tier 3).
10 See supra note 5.
11 See supra note 6.
12 See supra note 7.
13 See supra note 8.
14 See supra note 9.
15 ‘‘ADV’’ means average daily volume calculated
as the number of shares added or removed,
E:\FR\FM\20MRN1.SGM
Continued
20MRN1
]]>Agencies
[Federal Register Volume 84, Number 54 (Wednesday, March 20, 2019)]
[Notices]
[Pages 10359-10361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05213]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85314; File No. SR-MIAX-2019-07]
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 14, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend the MIAX 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 list of MIAX Select Symbols \3\
contained in the Priority Customer Rebate Program (the ``Program'') \4\
of the Exchange's Fee Schedule to delete the symbol ``VXX'' associated
with iPath S&P 500 VIX Short-Term Futures ETN (``VXX ETN'').
---------------------------------------------------------------------------
\3\ The term ``MIAX Select Symbols'' means options overlying
AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BB, BIDU, BP, C, CAT,
CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM,
GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK,
NFLX, NOK, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, T, TSLA, USO,
VALE, VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM and XOP.
\4\ See section (1)(a)(iii) of the Fee Schedule for a complete
description of the Program.
---------------------------------------------------------------------------
The Exchange initially created the list of MIAX Select Symbols on
March 1, 2014,\5\ and has added and removed option classes from that
list since that time.\6\ Select Symbols are rebated slightly higher in
certain Program tiers than non-Select Symbols. The Exchange notes that
the VXX ETN matured on January 30, 2019.\7\ Options on the VXX
[[Page 10360]]
ETN (``VXX options'') were authorized to be listed for trading on the
Exchange pursuant to Rule 402, but are no longer listed for trading
since the VXX ETN matured and VXX ETN shares are no longer listed for
trading on equity trading venues.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 71700 (March 12,
2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
\6\ See Securities Exchange Act Release Nos. 8109 (June 26,
2017), 82 FR 29962 (June 30, 2017) (SR-MIAX-2017-29); 79301
(November 14, 2016), 81 FR 81854 (November 18, 2016) (SR-MIAX-2016-
42); 74291(February 18, 2015), 80 FR 9841 (February 24, 2015) (SR-
MIAX-2015-09); 74288 (February 18, 2015), 80 FR 9837 (February 24,
2015) (SR-MIAX-2015-08); 73328 (October 9, 2014), 79 FR 62230
(October 16, 2014) (SR-MIAX-2014-50); 72567 (July 8, 2014), 79 FR
40818 (July 14, 2014) (SR-MIAX-2014-34); 72356 (June 10, 2014), 79
FR 34384 (June 16, 2014) (SR-MIAX-2014-26); 71700 (March 12, 2014),
79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
\7\ See Prospectus and Pricing Supplement for iPath S&P 500 VIX
Short-Term Futures ETN available at https://www.ipathetn.com/US/16/en/documentation.app?instrumentId=259118&documentId=6204338.
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Accordingly, the Exchange is amending its Fee Schedule to delete
the symbol VXX from the list of MIAX Select Symbols contained in the
Program. This amendment is intended to eliminate any potential
confusion and to make it clear to market participants that VXX will not
be a MIAX Select Symbol contained in the Program as VXX Options are no
longer listed on the Exchange.
2. Statutory Basis
The Exchange believes that its proposal to amend the Fee Schedule
is consistent with Section 6(b) of the Act \8\ in general, and furthers
the objectives of Section 6(b)(4) of the Act,\9\ in that it is an
equitable allocation of reasonable fees and other charges among
Exchange members and other persons using its facilities, and 6(b)(5) of
the Act,\10\ 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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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
\10\ 15 U.S.C. 78f(b)(1) and (b)(5).
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In particular, the proposal to delete the symbol VXX from the list
of MIAX Select Symbols contained in the Program is consistent with
Section 6(b)(4) of the Act because the proposed changes will allow for
continued benefit to investors by providing them an updated list of
MIAX Select Symbols contained in the Program on the Fee Schedule.
The Exchange believes that the proposal to amend an option class
that qualifies for the credit for transactions in MIAX Select Symbols
is fair, equitable and not unreasonably discriminatory. The Exchange
believes that the Program itself is reasonably designed because it
incentivizes providers of Priority Customer \11\ order flow to send
that Priority Customer order flow to the Exchange in order to receive a
credit in a manner that enables the Exchange to improve its overall
competitiveness and strengthen its market quality for all market
participants. The Program, which provides increased incentives in
certain tiers in high volume select symbols, is also reasonably
designed to increase the competitiveness of the Exchange with other
options exchanges that also offer increased incentives to higher volume
symbols.
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\11\ The term ``Priority Customer'' means a person or entity
that (i) is not a broker or dealer in securities, and (ii) does not
place more than 390 orders in listed options per day on average
during a calendar month for its own beneficial account(s). See
Exchange Rule 100.
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The Exchange also believes that its proposal is consistent with
Section 6(b)(5) of the Act because it will apply equally to all
Priority Customer orders in MIAX Select Symbols in the Program. All
similarly situated Priority Customer orders in MIAX Select Symbols are
subject to the same rebate schedule, and access to the Exchange is
offered on terms that are not unfairly discriminatory.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
rule change is a not a competitive filing but rather is designed to
update the list of MIAX Select Symbols contained in the Program in
order to avoid potential confusion on the part of market participants.
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,\12\ and Rule 19b-4(f)(2) \13\ 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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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 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-2019-07 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-2019-07. 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-2019-07 and should be submitted on
or before April 10, 2019.
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\14\ 17 CFR 200.30-3(a)(12).
[[Page 10361]]
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-05213 Filed 3-19-19; 8:45 am]
BILLING CODE 8011-01-P
