Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 11385-11389 [2019-05701]
Download as PDF
Federal Register / Vol. 84, No. 58 / Tuesday, March 26, 2019 / Notices
issuers consistent with the objectives of
Section 6(b)(5) of the Act.16
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe that the
proposed rule change will impose any
burden on competition because the
proposed change relates to how DMMs
communicate with their listed issuers
and proposes no change for other
market participants. In addition, the
Exchange does not believe that the
proposed changes will impose any
competitive burden because DMMs will
operate in the same manner, including
from the Floor, when communicating
with issuers.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or up to 90 days (i) as the
Commission may designate if it finds
such longer period to be appropriate
and publishes its reasons for so finding
or (ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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:
jbell on DSK30RV082PROD with NOTICES
Electronic Comments
Paper Comments
This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
Commissioner Roisman, as duty
officer, voted to consider the items
listed for the closed meeting in closed
session.
The subject matters of the closed
meeting will be:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Litigation matters; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
STATUS:
• 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–NYSE–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–NYSE–2019–09 and should
be submitted on or before April 16,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–05698 Filed 3–25–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
2:00 p.m. on Thursday,
March 28, 2019.
PLACE: The meeting will be held at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
TIME AND DATE:
Dated: March 21, 2019.
Vanessa A. Countryman,
Acting Secretary.
[FR Doc. 2019–05810 Filed 3–22–19; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85371; File No. SR–MIAX–
2019–13]
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 20, 2019.
Sunshine Act Meetings
• 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–
NYSE–2019–09 on the subject line.
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 March 8, 2019, Miami International
Securities Exchange LLC (‘‘MIAX
1 15
16 15
U.S.C. 78f(b)(5).
VerDate Sep<11>2014
17:54 Mar 25, 2019
17 17
Jkt 247001
PO 00000
CFR 200.30–3(a)(12).
Frm 00107
Fmt 4703
11385
Sfmt 4703
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\26MRN1.SGM
26MRN1
11386
Federal Register / Vol. 84, No. 58 / Tuesday, March 26, 2019 / Notices
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’’) to amend the
MIAX Options Fee Schedule (the ‘‘Fee
Schedule’’) to modify the manner in
which the Exchange assesses its Fees for
Customer Orders Routed to Another
Options Exchange (‘‘Routing Fees’’) in
order to align its Routing Fees and its
Routing Fees rule text to the Routing
Fees and Routing Fees rule text adopted
by the Exchange’s affiliate, MIAX
PEARL, LLC (‘‘MIAX PEARL’’),3 and to
make a non-substantive technical
correction.
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
1. Purpose
Currently, the Exchange assesses a
Routing Fee to market participants on
all Public Customer 4 orders routed to
and executed on an away market that is
equal to the amount charged by the
away market to which such orders were
routed and executed. The Exchange also
pays any rebate offered by an away
market. Such market participants are
also currently assessed a Fixed Fee
Surcharge of $0.10 per contract by the
Exchange, which is added to the fee
charged, or netted against the rebate
paid, by an away market. The Fixed Fee
Surcharge applies to both Mini and
Standard Option contracts.
The Exchange proposes to modify the
manner in which it assesses its Routing
Fees. Specifically, the Exchange
proposes to assess the amount of the
applicable fee, if any, based upon (i) the
origin type of the order, (ii) whether or
not it is an order for standard option
classes in the Penny Pilot Program 5
(‘‘Penny classes’’) or an order for
standard option classes which are not in
the Penny Pilot Program (‘‘Non-Penny
classes’’) (or other explicitly identified
classes), and (iii) to which away market
it is being routed. This assessment
practice is identical to the Routing Fees
assessment practice currently utilized
by the Exchange’s affiliate, MIAX
PEARL. The purpose of the proposed
rule change is to align the Routing Fees
and Routing Fees rule text of the
Exchange to the Routing Fees and
Routing Fees rule text adopted by the
Exchange’s affiliate, MIAX PEARL.6
The Exchange also proposes to assess
Routing Fees to all market participants,
not just Public Customers. The
Exchange proposes to assess Priority
Customers a lower Routing Fee than its
Public Customers. The purpose of
assessing Routing Fees to all market
participants including Priority
Customers is to recoup the costs that the
Exchange incurs as a result of all orders
which are routed away from the
Exchange, not just those incurred from
Public Customer orders.
The Exchange proposes to assess
Routing Fees to all market participants
according to the following table:
Description
Fees
jbell on DSK30RV082PROD with NOTICES
Routed, Priority Customer, Penny Pilot, to: NYSE American, BOX, Cboe, Cboe EDGX Options, Nasdaq MRX, Nasdaq PHLX (except
SPY), Nasdaq BX Options .............................................................................................................................................................................
Routed, Priority Customer, Penny Pilot, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, Nasdaq GEMX, Nasdaq ISE, NOM,
Nasdaq PHLX (SPY only), MIAX Emerald, MIAX PEARL ............................................................................................................................
Routed, Priority Customer, Non-Penny Pilot, to: NYSE American, BOX, Cboe, Cboe EDGX Options, Nasdaq ISE, Nasdaq MRX, Nasdaq
PHLX, Nasdaq BX Options ............................................................................................................................................................................
Routed, Priority Customer, Non-Penny Pilot, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, MIAX PEARL, MIAX Emerald,
Nasdaq GEMX, NOM .....................................................................................................................................................................................
Routed, Public Customer that is not a Priority Customer, Penny Pilot, to: NYSE American, NYSE Arca Options, Cboe BZX Options,
BOX, Cboe, Cboe C2, Cboe EDGX Options, Nasdaq GEMX, Nasdaq ISE, Nasdaq MRX, MIAX PEARL, MIAX Emerald, NOM,
Nasdaq PHLX, Nasdaq BX Options ..............................................................................................................................................................
Routed, Public Customer that is not a Priority Customer, Non-Penny Pilot, to: NYSE American, Cboe, Nasdaq PHLX, Nasdaq ISE, Cboe
EDGX Options ................................................................................................................................................................................................
Routed, Public Customer that is not a Priority Customer, Non-Penny Pilot, to: Cboe C2, BOX, Nasdaq MRX, Nasdaq BX Options, NOM,
MIAX PEARL, MIAX Emerald ........................................................................................................................................................................
Routed, Public Customer that is not a Priority Customer, Non-Penny Pilot, to: Cboe BZX Options, NYSE Arca Options, Nasdaq GEMX ..
3 See Securities Exchange Act Release Nos. 80061
(February 17, 2017), 82 FR 11676 (February 24,
2017) (SR–PEARL–2017–10); 82017 (November 6,
2017), 82 FR 52342 (November 13, 2017) (SR–
PEARL–2017–36). See also SR–PEARL–2019–06
(Proposal to amend the routing fee table, filed on
February 28, 2019).
VerDate Sep<11>2014
17:54 Mar 25, 2019
Jkt 247001
4 ‘‘Public Customer’’ refers to all Members of the
Exchange other than Priority Customers. ‘‘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. ‘‘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
PO 00000
Frm 00108
Fmt 4703
Sfmt 4703
$0.15
0.65
0.15
1.00
0.65
1.00
1.15
1.25
on average during a calendar month for its own
beneficial accounts(s). See Exchange Rule 100.
5 See Securities Exchange Act Release No. 84864
(December 19, 2018), 83 FR 66778 (December 27,
2018) (SR–MIAX–2018–38) (extending the Penny
Pilot Program from December 31, 2018 to June 30,
2019).
6 See supra note 3.
E:\FR\FM\26MRN1.SGM
26MRN1
Federal Register / Vol. 84, No. 58 / Tuesday, March 26, 2019 / Notices
jbell on DSK30RV082PROD with NOTICES
In determining its Routing Fees, the
Exchange takes into account transaction
fees and rebates assessed by the away
markets to which the Exchange routes
orders, as well as the Exchange’s
clearing costs,7 administrative,
regulatory, and technical costs
associated with routing orders to an
away market. The Exchange uses
unaffiliated routing brokers to route
orders to the away markets; the costs
associated with the use of these services
are included in the Routing Fees
specified in the Fee Schedule. This
Routing Fees structure is not only
similar to the Exchange’s affiliate, MIAX
PEARL, but is also comparable to the
structures in place at other exchanges,
such as Cboe BZX Options Exchange
(‘‘BZX Options’’).8 The BZX Options fee
schedule has exchange groupings,
whereby several exchanges are grouped
into the same category, dependent on
the order’s origin type and whether it is
a Penny or Non-Penny Pilot class. The
Exchange is proposing a similar
structure but with 8 different exchange
groupings, based on the exchange, order
type, and option class; like that of MIAX
PEARL. The Exchange believes that, by
having the same Routing Fees structure
used by MIAX PEARL, with more
groupings, it will offer the Exchange
greater precision in covering its costs
associated with routing orders to away
markets. The per-contract transaction
fee amount associated with each
grouping closely approximates the
Exchange’s all-in cost (plus an
additional, non-material amount) to
execute that corresponding contract at
that corresponding exchange. For
example, to execute a Priority Customer
order in a Penny Pilot symbol at NYSE
American costs the Exchange
approximately $0.15 a contract. Since
this is also the approximate cost to
execute that same order at BOX, the
Exchange is able to group NYSE
American and BOX together in the same
grouping. The Exchange notes that in
determining the appropriate groupings,
the Exchange considers the transaction
fees and rebates assessed by away
markets, and groups exchanges together
that assess transaction fees for routed
orders within a similar range. This same
logic and structure applies to all of the
groupings in the Routing Fees table. The
Exchange believes that the Exchange’s
7 The OCC amended its clearing fee from $0.01
per contract side to $0.02 per contract side. See
Securities Exchange Act Release No. 71769 (March
21, 2014), 79 FR 17214 (March 27, 2014) (SR–OCC–
2014–05).
8 This is similar to the methodologies utilized by
BZX Options in assessing Routing Fees. See Cboe
BZX Options Exchange Fee Schedule under ‘‘Fee
Codes and Associated Fees’’.
VerDate Sep<11>2014
17:54 Mar 25, 2019
Jkt 247001
current structure of simply passing on
the actual charge plus a mark-up can be
administratively burdensome,
particularly when multiple, third-party,
unaffiliated routing broker-dealers are
used to route and execute the orders at
the away market. This is because the
routing broker-dealers have different
billing policies and practices, and it
often can take several hours per month
reconciling trades and bills at the end of
each month. By utilizing the structure
proposed by the Exchange which is
currently used by MIAX PEARL, the
Exchange will know immediately the
cost of the execution and it can
eliminate the administratively
burdensome month end reconciliation
process, as well as provide more
certainty and transparency for execution
costs to its Members for the execution
of orders that are routed to away
markets. Further, those Members which
are Members of both the Exchange and
MIAX PEARL will be assessed Routing
Fees in the same manner, which the
Exchange believes will minimize any
confusion as to the method of assessing
Routing Fees between the two
exchanges for those Members.
Additionally, the Exchange proposes
to amend the title of Section (1)(c) of the
Fee Schedule to remove the words ‘‘and
Rebate’’ from the title. The Exchange
notes that the title of the Section
currently reads ‘‘Fees and Rebates for
Customer Orders Routed to Another
Options Exchange.’’ The routing fee
table as proposed does not contain any
net rebates, therefore, as amended, the
Exchange proposes for the title of the
Section to now read ‘‘Fees for Customer
Orders Routed to Another Options
Exchange.’’ The Exchange believes this
will add clarity and precision with
respect to the structure of its Fee
Schedule.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 9
in general, and furthers the objectives of
Section 6(b)(4) of the Act 10 in
particular, in that it is an equitable
allocation of reasonable dues, fees, and
other charges among its 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 11 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
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
11 15 U.S.C. 78f(b)(5).
10 15
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
11387
and a national market system, and, in
general to protect investors and the
public interest and is not designed to
permit unfair discrimination between
customers, issuers, brokers and dealers.
The Exchange believes the proposed
modifications in the Fee Schedule to the
Routing Fees furthers the objectives of
Section 6(b)(4) of the Act and are
equitable and reasonable and not
unfairly discriminatory because they
will apply the same manner to all
Members that are subject to Routing
Fees. The Exchange believes the
proposed Routing Fees are equitable and
reasonable since they align the
Exchange’s manner of assessing its
Routing Fees with that of its affiliate,
MIAX PEARL, and those Members
which are Members of both the
Exchange and MIAX PEARL will be
assessed Routing Fees in the same
manner, which the Exchange believes
will minimize any confusion as to the
method of assessing Routing Fees
between the two exchanges for those
Members.
The Exchange believes that the
proposed Routing Fees furthers the
objectives of Section 6(b)(5) of the Act
and are designed to promote just and
equitable principles of trade and are not
unfairly discriminatory because they
seek to recoup costs that are incurred by
the Exchange when routing orders to
away markets on behalf of Members.
Each destination market’s transaction
charge varies and there is a cost
incurred by the Exchange when routing
orders to away markets. The costs to the
Exchange primarily include transaction
fees assessed by the away markets to
which the Exchange routes orders, in
addition to the Exchange’s clearing
costs, administrative, regulatory and
technical costs associated with routing
options. The Exchange believes that the
proposed Routing Fees would better
enable the Exchange to recover the costs
it incurs to route orders to away markets
in addition to transaction fees assessed
to market participants for the execution
of orders by the away market. The
Exchange believes the proposed changes
are 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
Exchange believes that the proposed
changes will provide greater clarity to
Members and the public regarding the
Exchange’s Rules. It is in the public
E:\FR\FM\26MRN1.SGM
26MRN1
jbell on DSK30RV082PROD with NOTICES
11388
Federal Register / Vol. 84, No. 58 / Tuesday, March 26, 2019 / Notices
interest for rules to be accurate and
concise so as to eliminate the potential
for confusion. By utilizing the structure
proposed by the Exchange, the
Exchange will know immediately the
cost of the execution and it can
eliminate the administratively
burdensome month end reconciliation
process, as well as provide more
certainty and transparency for execution
costs to its Members for the execution
of orders that are routed to away
markets. Further, those Members which
are Members of both the Exchange and
MIAX PEARL will be assessed Routing
Fees in the same manner which the
Exchange believes will minimize any
confusion as to the method of assessing
Routing Fees between the two
exchanges for those Members.
Further, the Exchange believes that
modifying the manner in which it
assesses its Routing Fees by grouping
exchanges together that assess
transaction fees and rebates for routed
orders within a similar range is
reasonable and not unfairly
discriminatory. Specifically, the
Exchange believes that the Exchange’s
current structure of assessing a Fixed
Fee Surcharge of $0.10 per contract by
the Exchange, which is added to the fee
charged, or netted against the rebate
paid, by an away market can be
administratively burdensome,
particularly when multiple, third-party,
unaffiliated routing broker-dealers are
used to route and execute the orders at
the away market. This is because the
routing broker-dealers have different
billing policies and practices, and it
often can take several hours per month
reconciling trades and bills at the end of
each month. By utilizing the structure
proposed by the Exchange which is
currently used by MIAX PEARL, the
Exchange will know immediately the
cost of the execution and it can
eliminate the administratively
burdensome month end reconciliation
process, as well as provide more
certainty and transparency for execution
costs to its Members for the execution
of orders that are routed to away
markets. The Exchange believes it is
reasonable, equitable, and not unfairly
discriminatory to eliminate passing
through any rebate amount (that is,
netting the rebate against the Exchange’s
$0.10 charge), as the amount of any such
rebate was negligible. The Exchange
notes that because the amount of
volume that the Exchange routes to
away markets is de minimis, the
Exchange does not receive the higher
rebate amounts offered in the higher
tiers of the away markets. Therefore,
eliminating that rebate is reasonable
VerDate Sep<11>2014
17:54 Mar 25, 2019
Jkt 247001
because the amount was immaterial.
Further, those Members which are
Members of both the Exchange and
MIAX PEARL will be assessed Routing
Fees in the same manner, which the
Exchange believes will minimize any
confusion as to the method of assessing
Routing Fees between the two
exchanges for those Members.
Additionally, the Exchange notes that it
will continue to monitor the transaction
fees and rebates assessed by the away
market to determine the appropriate
exchange groupings within which to
group the away markets.
In addition, the Exchange believes
that it is equitable and not unfairly
discriminatory to assess lower routing
fees to Priority Customer orders than to
Public Customer orders. A Priority
Customer is by definition not a broker
or dealer in securities, and does not
place more than 390 orders in listed
options per day on average during a
calendar month for its own beneficial
account(s). The routing fees for Priority
Customer orders are based on the fees
charged by the away market for the
execution of such orders, therefore it is
reasonable and appropriate for the
routing fees to be lower than the routing
fees for Public Customer orders, as this
is the fee construct at the away markets.
Lastly, the Exchange believes that the
proposed non-substantive, technical
correction furthers the objectives of
Section 6(b)(4) of the Act and 6(b)(5) of
the Act in that the change is equitable
and reasonable and not unfairly
discriminatory because this proposal is
intended only as a technical correction
to update to the title of Section (1)(c) of
the Fee Schedule to accurately reflect
that this Section is a fee and not a
rebate, which does not have any
substantive impact on the Routing Fees.
The Exchange believes making this
technical correction promotes just and
equitable principles of trade, fosters
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and protects
investors and the public interest,
because it would eliminate any
potential confusion as a result of
wording that is no longer applicable. It
is in the public interest for rules to be
accurate and concise so as to eliminate
the potential for confusion.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
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
Exchange’s proposed Routing Fees are
similar in structure to those assessed by
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
its affiliate, MIAX PEARL, and are
similar in structure and are comparable
to routing fees charged by other options
exchanges.12 The Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing venues if they
deem fee levels at a particular venue to
be excessive. In such an environment,
the Exchange must continually adjust its
rebates and fees to remain competitive
with other exchanges and to attract
order flow. The Exchange believes that
the proposed rule change reflects this
competitive environment because it
modifies the Exchange’s fees in a
manner that encourages market
participants to continue to provide
liquidity and to send order flow to the
Exchange. Further, the Exchange does
not believe that the technical correction
to the routing fee table will impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act because the
proposal is intended to eliminate any
potential confusion as a result of
wording that is no longer applicable. In
doing so, the proposed rule change will
also serve to promote clarity and
consistency in the Exchange’s Fee
Schedule.
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,13 and Rule
19b–4(f)(2) 14 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,
12 See
supra note 8.
U.S.C. 78s(b)(3)(A)(ii).
14 17 CFR 240.19b–4(f)(2).
13 15
E:\FR\FM\26MRN1.SGM
26MRN1
Federal Register / Vol. 84, No. 58 / Tuesday, March 26, 2019 / Notices
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
SMALL BUSINESS ADMINISTRATION
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–2019–13 on the subject line.
Administrative Declaration of a
Disaster for the State of Georgia
jbell on DSK30RV082PROD with NOTICES
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–2019–13. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–MIAX–2019–13 and should
be submitted on or before April 16,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–05701 Filed 3–25–19; 8:45 am]
BILLING CODE 8011–01–P
15 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:54 Mar 25, 2019
Jkt 247001
[Disaster Declaration #15892 and #15893;
Georgia Disaster Number GA–00111]
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
SUMMARY: This is a notice of an
Administrative declaration of a disaster
for the State of Georgia dated 03/18/
2019.
Incident: Severe Weather System.
Incident Period: 03/03/2019.
DATES: Issued on 03/18/2019.
Physical Loan Application Deadline
Date: 05/17/2019.
Economic Injury (EIDL) Loan
Application Deadline Date: 12/18/2019.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Grady, Talbot.
Contiguous Counties:
Georgia: Chattahoochee, Decatur,
Harris, Marion, Meriwether,
Mitchell, Muscogee, Taylor,
Thomas, Upson.
Florida: Gadsden, Leon.
The Interest Rates are:
For Physical Damage:
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses
without
Credit
Available Elsewhere ..............
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
11389
Percent
Non-Profit Organizations without Credit Available Elsewhere .....................................
2.750
The number assigned to this disaster
for physical damage is 15892 B and for
economic injury is 15893 0.
The States which received an EIDL
Declaration # are Georgia, Florida.
(Catalog of Federal Domestic Assistance
Number 59008)
Dated: March 18, 2019.
Linda E. McMahon,
Administrator.
[FR Doc. 2019–05762 Filed 3–25–19; 8:45 am]
BILLING CODE 8025–01–P
DEPARTMENT OF STATE
[Public Notice 10702]
30-Day Notice of Proposed Information
Collection: Affidavit of Identifying
Witness
Notice of request for public
comment and submission to OMB of
proposed collection of information.
ACTION:
SUMMARY: The Department of State has
submitted the information collection
described below to the Office of
Management and Budget (OMB) for
approval. In accordance with the
Paperwork Reduction Act of 1995 we
are requesting comments on this
collection from all interested
individuals and organizations. The
purpose of this Notice is to allow 30
days for public comment.
DATES: Submit comments directly to the
Office of Management and Budget
(OMB) up to April 25, 2019.
ADDRESSES: Direct comments to the
Department of State Desk Officer in the
Office of Information and Regulatory
Affairs at the Office of Management and
Budget (OMB). You may submit
Percent
comments by the following methods:
• Email: oira_submission@
omb.eop.gov. You must include the DS
4.125 form number, information collection
title, and the OMB control number in
2.063
the subject line of your message.
• Fax: 202–395–5806. Attention: Desk
8.000
Officer for Department of State.
4.000 SUPPLEMENTARY INFORMATION:
• Title of Information Collection:
2.750 Affidavit of Identifying Witness.
• OMB Control Number: 1405–0088.
• Type of Request: Revision of a
2.750
Currently Approved Collection.
• Originating Office: Bureau of
Consular Affairs, Passport Services (CA/
4.000 PPT).
E:\FR\FM\26MRN1.SGM
26MRN1
Agencies
[Federal Register Volume 84, Number 58 (Tuesday, March 26, 2019)]
[Notices]
[Pages 11385-11389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05701]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85371; File No. SR-MIAX-2019-13]
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 20, 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 March 8, 2019, Miami International Securities
Exchange LLC (``MIAX
[[Page 11386]]
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'') to amend the MIAX Options Fee Schedule
(the ``Fee Schedule'') to modify the manner in which the Exchange
assesses its Fees for Customer Orders Routed to Another Options
Exchange (``Routing Fees'') in order to align its Routing Fees and its
Routing Fees rule text to the Routing Fees and Routing Fees rule text
adopted by the Exchange's affiliate, MIAX PEARL, LLC (``MIAX
PEARL''),\3\ and to make a non-substantive technical correction.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release Nos. 80061 (February 17,
2017), 82 FR 11676 (February 24, 2017) (SR-PEARL-2017-10); 82017
(November 6, 2017), 82 FR 52342 (November 13, 2017) (SR-PEARL-2017-
36). See also SR-PEARL-2019-06 (Proposal to amend the routing fee
table, filed on February 28, 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
Currently, the Exchange assesses a Routing Fee to market
participants on all Public Customer \4\ orders routed to and executed
on an away market that is equal to the amount charged by the away
market to which such orders were routed and executed. The Exchange also
pays any rebate offered by an away market. Such market participants are
also currently assessed a Fixed Fee Surcharge of $0.10 per contract by
the Exchange, which is added to the fee charged, or netted against the
rebate paid, by an away market. The Fixed Fee Surcharge applies to both
Mini and Standard Option contracts.
---------------------------------------------------------------------------
\4\ ``Public Customer'' refers to all Members of the Exchange
other than Priority Customers. ``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. ``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).
See Exchange Rule 100.
---------------------------------------------------------------------------
The Exchange proposes to modify the manner in which it assesses its
Routing Fees. Specifically, the Exchange proposes to assess the amount
of the applicable fee, if any, based upon (i) the origin type of the
order, (ii) whether or not it is an order for standard option classes
in the Penny Pilot Program \5\ (``Penny classes'') or an order for
standard option classes which are not in the Penny Pilot Program
(``Non-Penny classes'') (or other explicitly identified classes), and
(iii) to which away market it is being routed. This assessment practice
is identical to the Routing Fees assessment practice currently utilized
by the Exchange's affiliate, MIAX PEARL. The purpose of the proposed
rule change is to align the Routing Fees and Routing Fees rule text of
the Exchange to the Routing Fees and Routing Fees rule text adopted by
the Exchange's affiliate, MIAX PEARL.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 84864 (December 19,
2018), 83 FR 66778 (December 27, 2018) (SR-MIAX-2018-38) (extending
the Penny Pilot Program from December 31, 2018 to June 30, 2019).
\6\ See supra note 3.
---------------------------------------------------------------------------
The Exchange also proposes to assess Routing Fees to all market
participants, not just Public Customers. The Exchange proposes to
assess Priority Customers a lower Routing Fee than its Public
Customers. The purpose of assessing Routing Fees to all market
participants including Priority Customers is to recoup the costs that
the Exchange incurs as a result of all orders which are routed away
from the Exchange, not just those incurred from Public Customer orders.
The Exchange proposes to assess Routing Fees to all market
participants according to the following table:
------------------------------------------------------------------------
Description Fees
------------------------------------------------------------------------
Routed, Priority Customer, Penny Pilot, to: NYSE American, BOX, $0.15
Cboe, Cboe EDGX Options, Nasdaq MRX, Nasdaq PHLX (except SPY),
Nasdaq BX Options..............................................
Routed, Priority Customer, Penny Pilot, to: NYSE Arca Options, 0.65
Cboe BZX Options, Cboe C2, Nasdaq GEMX, Nasdaq ISE, NOM, Nasdaq
PHLX (SPY only), MIAX Emerald, MIAX PEARL......................
Routed, Priority Customer, Non-Penny Pilot, to: NYSE American, 0.15
BOX, Cboe, Cboe EDGX Options, Nasdaq ISE, Nasdaq MRX, Nasdaq
PHLX, Nasdaq BX Options........................................
Routed, Priority Customer, Non-Penny Pilot, to: NYSE Arca 1.00
Options, Cboe BZX Options, Cboe C2, MIAX PEARL, MIAX Emerald,
Nasdaq GEMX, NOM...............................................
Routed, Public Customer that is not a Priority Customer, Penny 0.65
Pilot, to: NYSE American, NYSE Arca Options, Cboe BZX Options,
BOX, Cboe, Cboe C2, Cboe EDGX Options, Nasdaq GEMX, Nasdaq ISE,
Nasdaq MRX, MIAX PEARL, MIAX Emerald, NOM, Nasdaq PHLX, Nasdaq
BX Options.....................................................
Routed, Public Customer that is not a Priority Customer, Non- 1.00
Penny Pilot, to: NYSE American, Cboe, Nasdaq PHLX, Nasdaq ISE,
Cboe EDGX Options..............................................
Routed, Public Customer that is not a Priority Customer, Non- 1.15
Penny Pilot, to: Cboe C2, BOX, Nasdaq MRX, Nasdaq BX Options,
NOM, MIAX PEARL, MIAX Emerald..................................
Routed, Public Customer that is not a Priority Customer, Non- 1.25
Penny Pilot, to: Cboe BZX Options, NYSE Arca Options, Nasdaq
GEMX...........................................................
------------------------------------------------------------------------
[[Page 11387]]
In determining its Routing Fees, the Exchange takes into account
transaction fees and rebates assessed by the away markets to which the
Exchange routes orders, as well as the Exchange's clearing costs,\7\
administrative, regulatory, and technical costs associated with routing
orders to an away market. The Exchange uses unaffiliated routing
brokers to route orders to the away markets; the costs associated with
the use of these services are included in the Routing Fees specified in
the Fee Schedule. This Routing Fees structure is not only similar to
the Exchange's affiliate, MIAX PEARL, but is also comparable to the
structures in place at other exchanges, such as Cboe BZX Options
Exchange (``BZX Options'').\8\ The BZX Options fee schedule has
exchange groupings, whereby several exchanges are grouped into the same
category, dependent on the order's origin type and whether it is a
Penny or Non-Penny Pilot class. The Exchange is proposing a similar
structure but with 8 different exchange groupings, based on the
exchange, order type, and option class; like that of MIAX PEARL. The
Exchange believes that, by having the same Routing Fees structure used
by MIAX PEARL, with more groupings, it will offer the Exchange greater
precision in covering its costs associated with routing orders to away
markets. The per-contract transaction fee amount associated with each
grouping closely approximates the Exchange's all-in cost (plus an
additional, non-material amount) to execute that corresponding contract
at that corresponding exchange. For example, to execute a Priority
Customer order in a Penny Pilot symbol at NYSE American costs the
Exchange approximately $0.15 a contract. Since this is also the
approximate cost to execute that same order at BOX, the Exchange is
able to group NYSE American and BOX together in the same grouping. The
Exchange notes that in determining the appropriate groupings, the
Exchange considers the transaction fees and rebates assessed by away
markets, and groups exchanges together that assess transaction fees for
routed orders within a similar range. This same logic and structure
applies to all of the groupings in the Routing Fees table. The Exchange
believes that the Exchange's current structure of simply passing on the
actual charge plus a mark-up can be administratively burdensome,
particularly when multiple, third-party, unaffiliated routing broker-
dealers are used to route and execute the orders at the away market.
This is because the routing broker-dealers have different billing
policies and practices, and it often can take several hours per month
reconciling trades and bills at the end of each month. By utilizing the
structure proposed by the Exchange which is currently used by MIAX
PEARL, the Exchange will know immediately the cost of the execution and
it can eliminate the administratively burdensome month end
reconciliation process, as well as provide more certainty and
transparency for execution costs to its Members for the execution of
orders that are routed to away markets. Further, those Members which
are Members of both the Exchange and MIAX PEARL will be assessed
Routing Fees in the same manner, which the Exchange believes will
minimize any confusion as to the method of assessing Routing Fees
between the two exchanges for those Members.
---------------------------------------------------------------------------
\7\ The OCC amended its clearing fee from $0.01 per contract
side to $0.02 per contract side. See Securities Exchange Act Release
No. 71769 (March 21, 2014), 79 FR 17214 (March 27, 2014) (SR-OCC-
2014-05).
\8\ This is similar to the methodologies utilized by BZX Options
in assessing Routing Fees. See Cboe BZX Options Exchange Fee
Schedule under ``Fee Codes and Associated Fees''.
---------------------------------------------------------------------------
Additionally, the Exchange proposes to amend the title of Section
(1)(c) of the Fee Schedule to remove the words ``and Rebate'' from the
title. The Exchange notes that the title of the Section currently reads
``Fees and Rebates for Customer Orders Routed to Another Options
Exchange.'' The routing fee table as proposed does not contain any net
rebates, therefore, as amended, the Exchange proposes for the title of
the Section to now read ``Fees for Customer Orders Routed to Another
Options Exchange.'' The Exchange believes this will add clarity and
precision with respect to the structure of its Fee Schedule.
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \9\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \10\ in particular, in
that it is an equitable allocation of reasonable dues, fees, and other
charges among its 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 \11\ 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
customers, issuers, brokers and dealers.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes the proposed modifications in the Fee
Schedule to the Routing Fees furthers the objectives of Section 6(b)(4)
of the Act and are equitable and reasonable and not unfairly
discriminatory because they will apply the same manner to all Members
that are subject to Routing Fees. The Exchange believes the proposed
Routing Fees are equitable and reasonable since they align the
Exchange's manner of assessing its Routing Fees with that of its
affiliate, MIAX PEARL, and those Members which are Members of both the
Exchange and MIAX PEARL will be assessed Routing Fees in the same
manner, which the Exchange believes will minimize any confusion as to
the method of assessing Routing Fees between the two exchanges for
those Members.
The Exchange believes that the proposed Routing Fees furthers the
objectives of Section 6(b)(5) of the Act and are designed to promote
just and equitable principles of trade and are not unfairly
discriminatory because they seek to recoup costs that are incurred by
the Exchange when routing orders to away markets on behalf of Members.
Each destination market's transaction charge varies and there is a cost
incurred by the Exchange when routing orders to away markets. The costs
to the Exchange primarily include transaction fees assessed by the away
markets to which the Exchange routes orders, in addition to the
Exchange's clearing costs, administrative, regulatory and technical
costs associated with routing options. The Exchange believes that the
proposed Routing Fees would better enable the Exchange to recover the
costs it incurs to route orders to away markets in addition to
transaction fees assessed to market participants for the execution of
orders by the away market. The Exchange believes the proposed changes
are 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 Exchange believes that the proposed changes will
provide greater clarity to Members and the public regarding the
Exchange's Rules. It is in the public
[[Page 11388]]
interest for rules to be accurate and concise so as to eliminate the
potential for confusion. By utilizing the structure proposed by the
Exchange, the Exchange will know immediately the cost of the execution
and it can eliminate the administratively burdensome month end
reconciliation process, as well as provide more certainty and
transparency for execution costs to its Members for the execution of
orders that are routed to away markets. Further, those Members which
are Members of both the Exchange and MIAX PEARL will be assessed
Routing Fees in the same manner which the Exchange believes will
minimize any confusion as to the method of assessing Routing Fees
between the two exchanges for those Members.
Further, the Exchange believes that modifying the manner in which
it assesses its Routing Fees by grouping exchanges together that assess
transaction fees and rebates for routed orders within a similar range
is reasonable and not unfairly discriminatory. Specifically, the
Exchange believes that the Exchange's current structure of assessing a
Fixed Fee Surcharge of $0.10 per contract by the Exchange, which is
added to the fee charged, or netted against the rebate paid, by an away
market can be administratively burdensome, particularly when multiple,
third-party, unaffiliated routing broker-dealers are used to route and
execute the orders at the away market. This is because the routing
broker-dealers have different billing policies and practices, and it
often can take several hours per month reconciling trades and bills at
the end of each month. By utilizing the structure proposed by the
Exchange which is currently used by MIAX PEARL, the Exchange will know
immediately the cost of the execution and it can eliminate the
administratively burdensome month end reconciliation process, as well
as provide more certainty and transparency for execution costs to its
Members for the execution of orders that are routed to away markets.
The Exchange believes it is reasonable, equitable, and not unfairly
discriminatory to eliminate passing through any rebate amount (that is,
netting the rebate against the Exchange's $0.10 charge), as the amount
of any such rebate was negligible. The Exchange notes that because the
amount of volume that the Exchange routes to away markets is de
minimis, the Exchange does not receive the higher rebate amounts
offered in the higher tiers of the away markets. Therefore, eliminating
that rebate is reasonable because the amount was immaterial. Further,
those Members which are Members of both the Exchange and MIAX PEARL
will be assessed Routing Fees in the same manner, which the Exchange
believes will minimize any confusion as to the method of assessing
Routing Fees between the two exchanges for those Members. Additionally,
the Exchange notes that it will continue to monitor the transaction
fees and rebates assessed by the away market to determine the
appropriate exchange groupings within which to group the away markets.
In addition, the Exchange believes that it is equitable and not
unfairly discriminatory to assess lower routing fees to Priority
Customer orders than to Public Customer orders. A Priority Customer is
by definition not a broker or dealer in securities, and does not place
more than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). The routing fees for
Priority Customer orders are based on the fees charged by the away
market for the execution of such orders, therefore it is reasonable and
appropriate for the routing fees to be lower than the routing fees for
Public Customer orders, as this is the fee construct at the away
markets.
Lastly, the Exchange believes that the proposed non-substantive,
technical correction furthers the objectives of Section 6(b)(4) of the
Act and 6(b)(5) of the Act in that the change is equitable and
reasonable and not unfairly discriminatory because this proposal is
intended only as a technical correction to update to the title of
Section (1)(c) of the Fee Schedule to accurately reflect that this
Section is a fee and not a rebate, which does not have any substantive
impact on the Routing Fees. The Exchange believes making this technical
correction promotes just and equitable principles of trade, fosters
cooperation and coordination with persons engaged in facilitating
transactions in securities, and protects investors and the public
interest, because it would eliminate any potential confusion as a
result of wording that is no longer applicable. It is in the public
interest for rules to be accurate and concise so as to eliminate the
potential for confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
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 Exchange's proposed Routing
Fees are similar in structure to those assessed by its affiliate, MIAX
PEARL, and are similar in structure and are comparable to routing fees
charged by other options exchanges.\12\ The Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive. In such an environment, the Exchange
must continually adjust its rebates and fees to remain competitive with
other exchanges and to attract order flow. The Exchange believes that
the proposed rule change reflects this competitive environment because
it modifies the Exchange's fees in a manner that encourages market
participants to continue to provide liquidity and to send order flow to
the Exchange. Further, the Exchange does not believe that the technical
correction to the routing fee table will impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of the Act because the proposal is intended to eliminate any potential
confusion as a result of wording that is no longer applicable. In doing
so, the proposed rule change will also serve to promote clarity and
consistency in the Exchange's Fee Schedule.
---------------------------------------------------------------------------
\12\ See supra note 8.
---------------------------------------------------------------------------
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,\13\ and Rule 19b-4(f)(2) \14\ 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.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 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,
[[Page 11389]]
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-2019-13 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-MIAX-2019-13. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-MIAX-2019-13 and should be submitted on
or before April 16, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-05701 Filed 3-25-19; 8:45 am]
BILLING CODE 8011-01-P