Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 100, Definitions, Rule 200, Trading Permits, Rule 402, Criteria for Underlying Securities, Rule 403, Withdrawal of Approval of Underlying Securities and Rule 519, MIAX Order Monitor, 20441-20445 [2019-09508]
Download as PDF
<![CDATA[
Federal Register / Vol. 84, No. 90 / Thursday, May 9, 2019 / Notices
I. Obtaining Information and
Submitting Comments
jbell on DSK3GLQ082PROD with NOTICES
A. Obtaining Information
Please refer to Docket ID NRC–2018–
0215 when contacting the NRC about
the availability of information for this
action. You may obtain publiclyavailable information related to this
action by any of the following methods:
• Federal Rulemaking Website: Go to
https://www.regulations.gov and search
for Docket ID NRC–2018–0215.
• NRC’s Agencywide Documents
Access and Management System
(ADAMS): You may obtain publicly
available documents online in the
ADAMS Public Document collection at
https://www.nrc.gov/reading-rm/
adams.html. To begin the search, select
‘‘Begin Web-based ADAMS Search.’’ For
problems with ADAMS, contact the
NRC’s Public Document Room (PDR)
reference staff at 1–800–397–4209, 301–
415–4737, or by email to pdr.resource@
nrc.gov. The supporting statement is
available in ADAMS under Accession
No. ML18353B644.
• NRC’s PDR: You may examine and
purchase copies of public documents at
the NRC’s PDR, Room O1–F21, One
White Flint North, 11555 Rockville
Pike, Rockville, Maryland 20852.
• NRC’s Clearance Officer: A copy of
the collection of information and related
instructions may be obtained without
charge by contacting NRC’s Clearance
Officer, David Cullison, Office of the
Chief Information Officer, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001; telephone: 301–415–
2084; email: INFOCOLLECTS.Resource@
NRC.GOV.
B. Submitting Comments
Please include Docket ID NRC–2018–
0215 in the subject line of your
comment submission, in order to ensure
that the NRC is able to make your
comment submission available to the
public in this docket.
The NRC cautions you not to include
identifying or contact information in
comment submissions that you do not
want to be publicly disclosed in your
comment submission. The NRC will
post all comment submissions at https://
www.regulations.gov as well as enter the
comment submissions into ADAMS,
and the NRC does not routinely edit
comment submissions to remove
identifying or contact information.
If you are requesting or aggregating
comments from other persons for
submission to the NRC, then you should
inform those persons not to include
identifying or contact information that
they do not want to be publicly
disclosed in their comment submission.
VerDate Sep<11>2014
19:39 May 08, 2019
Jkt 247001
Your request should state that the NRC
does not routinely edit comment
submissions to remove such information
before making the comment
submissions available to the public or
entering the comment into ADAMS.
II. Background
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the NRC is requesting
public comment on its intention to
request the OMB’s approval for the
information collection summarized
below.
1. The title of the information
collection: Part 30 of Title 10 of the
Code of Federal Regulations (10 CFR),
‘‘Rules of General Applicability to
Domestic Licensing of Byproduct
Material.’’
2. OMB approval number: 3150–0017.
3. Type of submission: Extension.
4. The form number, if applicable:
Not applicable.
5. How often the collection is required
or requested: Required reports are
collected and evaluated on a continuing
basis as events occur. There is a onetime submittal of information to receive
a license. Renewal applications are
submitted every 15 years. Information
submitted in previous applications may
be referenced without being
resubmitted. In addition, recordkeeping
must be performed on an on-going basis.
6. Who will be required or asked to
respond: All persons applying for or
holding a license to manufacture,
produce, transfer, receive, acquire, own,
possess, or use radioactive byproduct
material.
7. The estimated number of annual
responses: 155,164 (24,322 NRC
Licensee responses [1,272 reporting
responses + 2,800 for recordkeeping +
20,250 third-party disclosures] and
130,842 Agreement State Licensee
responses [6,973 reporting responses +
16,500 for recordkeeping + 107,369
third-party disclosures]).
8. The estimated number of annual
respondents: 19,300 (2,800 NRC
licensees and 16,500 Agreement State
licensees).
9. The estimated number of hours
needed annually to comply with the
information collection requirement or
request: 228,279 (NRC licensees 35,291
hours [16,439 hours for reporting +
16,792 hours for recordkeeping + 2,060
hours for third-party disclosures] and
Agreement State licensees 192,988
hours [90,343 hours for reporting +
91,627 hours for recordkeeping + 11,018
hours for third-party disclosures]).
10. Abstract: 10 CFR part 30
establishes requirements that are
applicable to all persons in the United
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
20441
States governing domestic licensing of
radioactive byproduct material. The
application, reporting and
recordkeeping requirements are
necessary to permit the NRC to make a
determination whether the possession,
use, and transfer of byproduct material
is in conformance with the
Commission’s regulations for protection
of the public health and safety.
III. Specific Requests for Comments
The NRC is seeking comments that
address the following questions:
1. Is the proposed collection of
information necessary for the NRC to
properly perform its functions? Does the
information have practical utility?
2. Is the estimate of the burden of the
information collection accurate?
3. Is there a way to enhance the
quality, utility, and clarity of the
information to be collected?
4. How can the burden of the
information collection on respondents
be minimized, including the use of
automated collection techniques or
other forms of information technology?
Dated at Rockville, Maryland, this 6th day
of May 2019.
For the Nuclear Regulatory Commission.
David Cullison,
NRC Clearance Officer, Office of the Chief
Information Officer.
[FR Doc. 2019–09585 Filed 5–8–19; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85770; File No. SR–MIAX–
2019–21]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Exchange Rule 100,
Definitions, Rule 200, Trading Permits,
Rule 402, Criteria for Underlying
Securities, Rule 403, Withdrawal of
Approval of Underlying Securities and
Rule 519, MIAX Order Monitor
May 3, 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 April 24, 2019, Miami International
Securities Exchange, LLC (‘‘MIAX
Options’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change as described in
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\09MYN1.SGM
09MYN1
20442
Federal Register / Vol. 84, No. 90 / Thursday, May 9, 2019 / Notices
consistency and clarity within MIAX’s
rulebook. With the proposed change, the
definition for Electronic Exchange
Member would be as follows:
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
make a number of minor, nonsubstantive edits to Exchange Rule 100,
Definitions, Rule 200, Trading Permits,
Rule 402, Criteria for Underlying
Securities, Rule 403, Withdrawal of
Approval of Underlying Securities and
Rule 519, MIAX Order Monitor, for
purposes of clarification and uniformity.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/ at MIAX Options’ principal
office, and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Exchange Rule 100, Definitions, to make
a minor non-substantive edit to the
definition for Electronic Exchange
Member in order to provide consistency
and clarity within the rule text.
Currently, Exchange Rule 100 defines
Electronic Exchange Member as follows:
jbell on DSK3GLQ082PROD with NOTICES
The term ‘‘Electronic Exchange Member’’
means the holder of a Trading Permit who is
not a Market Maker. Electronic Exchange
Members are deemed ‘‘members’’ under the
Exchange Act.3
The Exchange proposes to amend the
definition for Electronic Exchange
Member in Exchange Rule 100 to insert
the abbreviation for Electronic Exchange
Member as ‘‘EEM’’ to provide
3 See
Exchange Rule 100.
VerDate Sep<11>2014
19:39 May 08, 2019
Jkt 247001
The term ‘‘Electronic Exchange Member’’
or ‘‘EEM’’ means the holder of a Trading
Permit who is not a Market Maker. Electronic
Exchange Members are deemed ‘‘members’’
under the Exchange Act.
The proposed change would align the
rule text for the definition of an
Electronic Exchange Member with the
rulebook for MIAX, which uses the EEM
abbreviation for an Electronic Exchange
Member in other Exchange rules.
The Exchange also proposes to amend
Exchange Rule 100, Definitions, to make
minor non-substantive edits to
harmonize the rule text to that of the
Exchange’s affiliate, MIAX Emerald,
LLC (‘‘MIAX Emerald’’). Currently,
Exchange Rule 100 does not include
definitions for the Exchange’s affiliates,
MIAX Emerald and MIAX PEARL, LLC
(‘‘MIAX PEARL’’). In order to ensure
conformity, the Exchange proposes to
amend Exchange Rule 100 to adopt
definitions for MIAX Emerald and
MIAX PEARL that are nearly identical
to rule text found in MIAX Emerald
Rule 100.
MIAX proposes to adopt the following
definition for MIAX Emerald to be
included in Exchange Rule 100: ‘‘The
term ‘MIAX Emerald’ means MIAX
Emerald, LLC.’’ MIAX proposes to adopt
the following definition for MIAX
PEARL to be included in Exchange Rule
100: ‘‘The term ‘MIAX PEARL’ means
MIAX PEARL, LLC.’’ The Exchange
believes that adopting the definitions of
the Exchange’s affiliates, MIAX Emerald
and MIAX PEARL, in Exchange Rule
100 creates consistency among MIAX,
MIAX Emerald and MIAX PEARL.
Next, the Exchange proposes to
amend Exchange Rule 100 to clarify the
definition for the term ‘‘MIAX.’’
Exchange Rule 100 currently defines
MIAX as follows: ‘‘The term ‘MIAX’
means the Miami International
Securities Exchange, LLC.’’ The
Exchange proposes to insert the phrase
‘‘or the Exchange’’ following the period
in the current definition for the term
MIAX in Exchange Rule 100 to clarify
and align the rule text with the
definition for the term the ‘‘Exchange’’
in Exchange Rule 100. Exchange Rule
100 currently defines Exchange as
follows: ‘‘The term ‘Exchange’ means
the national securities exchange known
as Miami International Securities
Exchange or MIAX.’’ The Exchange’s
proposal to clarify the definition for the
term ‘‘MIAX’’ would be as follows: ‘‘The
term ‘MIAX’ means the Miami
International Securities Exchange, LLC,
PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
or the Exchange.’’ The proposal is
nearly identical to rule text in MIAX
Emerald Rule 100.4 The Exchange
believes that its affiliate, MIAX PEARL,
would also make a nearly identical
change to MIAX PEARL Rule 100.5
The Exchange also proposes to amend
Exchange Rule 100 to make minor nonsubstantive edit to the definition for
‘‘Exchange’’ in order to provide
consistency and clarity within the rule
text. Currently, Exchange Rule 100
defines Exchange as follows: ‘‘The term
‘Exchange’ means the national securities
exchange known as Miami International
Securities Exchange or MIAX.’’ The
definition for Exchange in MIAX Rule
100 should include a comma and the
abbreviation ‘‘LLC’’ following the whole
name for MIAX. Accordingly, the
Exchange proposes to amend the
definition for Exchange as follows: ‘‘The
term ‘Exchange’ means the national
securities exchange known as Miami
International Securities Exchange, LLC
or MIAX.’’
Next, the Exchange proposes to
amend Exchange Rule 200, Trading
Permits, to conform to MIAX Emerald
Rule 200 by adopting language to
differentiate the MIAX trading permit
application process for holders of MIAX
Emerald or MIAX PEARL trading
permits and applicants not holding
MIAX Emerald or MIAX PEARL trading
permits. Currently, Exchange Rule
200(c), Application Process, describes
the application process for a person or
entity seeking to hold a MIAX Trading
Permit as follows:
All persons or entities seeking to hold a
Trading Permit (‘‘Applicant’’) must submit an
application to the Exchange in accordance
with such procedures as shall be established
by the Exchange via Regulatory Circular
including submission deadlines and payment
of any applicable application fees. In
addition, the following shall apply: 6
The current application process under
Exchange Rule 200 for a MIAX trading
permit was established prior to the
Exchange’s affiliates, MIAX Emerald
and MIAX PEARL, commencing
operations.
The Exchange proposes to adopt the
waive-in application process for a MIAX
trading permit that is currently in place
on MIAX Emerald. MIAX Emerald Rule
200 provides that a holder of a MIAX or
MIAX PEARL trading permit in good
standing is eligible to receive one MIAX
Emerald Trading Permit in the same
Membership category to trade on MIAX
4 See
MIAX Emerald Rule 100.
SR–PEARL–2019–16.
6 See Exchange Rule 200.
5 See
E:\FR\FM\09MYN1.SGM
09MYN1
Federal Register / Vol. 84, No. 90 / Thursday, May 9, 2019 / Notices
Emerald.7 Member 8 applicants of MIAX
and MIAX PEARL are not required to
submit a full application for
membership on MIAX Emerald, but
rather only need to complete selected
MIAX Emerald forms concerning their
election to trade on MIAX Emerald,
consent to MIAX Emerald’s jurisdiction,
and other operational matters.9 This
waive-in application process is similar
to arrangements in place at other
exchanges.10
MIAX proposes to adopt the waive-in
application process to conform to MIAX
Emerald by adopting a new paragraph in
Exchange Rule 200, that will be
numbered (c)(1). Currently, subparagraph (c)(1) under Exchange Rule
200 provides as follows:
Each Applicant shall promptly update the
application materials submitted to the
Exchange if any of the information provided
in these materials becomes inaccurate or
incomplete after the date of submission of the
application to the Exchange and prior to any
approval of the application.
Pursuant to this proposal, the
Exchange proposes to adopt the
following sub-paragraph, which will be
numbered as (c)(1) under Exchange Rule
200:
Holders of MIAX Emerald or MIAX PEARL
Trading Permits. A holder of a MIAX
Emerald or MIAX PEARL trading permit in
good standing is eligible to receive one MIAX
Trading Permit in the same Membership
category to trade on MIAX (i.e., a MIAX
Emerald Primary Lead Market Maker Member
is eligible to become a MIAX Primary Lead
Market Maker Member, a MIAX Emerald
Lead Market Maker Member is eligible to
become a MIAX Lead Market Maker Member,
a MIAX Emerald Registered Market Maker
Member is eligible to become a MIAX
Registered Market Maker Member, a MIAX
Emerald Electronic Exchange Member is
eligible to become a MIAX Electronic
Exchange Member, a MIAX PEARL Market
Maker is eligible to become a MIAX
Registered Market Maker and a MIAX PEARL
Electronic Exchange Member is eligible to
become a MIAX Electronic Exchange
Member). A holder of a MIAX Emerald or
MIAX PEARL trading permit who wishes to
apply to the Exchange is not required to
complete and submit an Exchange
7 See
MIAX Emerald Rule 100.
term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
9 See MIAX Emerald Rule 100.
10 See, e.g., Nasdaq MRX, LLC Rule 302(a)
(containing similar expedited waive-in membership
process for members of the Nasdaq ISE, LLC and
Nasdaq GEMX, LLC); MIAX PEARL Rule 200(c)(1)
(containing similar expedited waive-in membership
process for members of MIAX); and Cboe C2
Exchange, Inc. Rule 3.1(c)(1) (containing similar
expedited waive-in membership process for
members of Cboe).
jbell on DSK3GLQ082PROD with NOTICES
8 The
VerDate Sep<11>2014
19:39 May 08, 2019
Jkt 247001
application. Instead only Exchange forms
concerning election to trade on the Exchange,
submitting to Exchange jurisdiction, and
operational matters need be completed and
tendered.
The Exchange proposes to amend the
rule text of Exchange Rule 200 to adopt
a new sub-paragraph in Exchange Rule
200, that would be numbered (c)(2) for
trading permit applicants not holding a
MIAX Emerald or MIAX PEARL trading
permit already. Currently, Exchange
Rule 200(c)(2) provides as follows:
The Exchange shall investigate each
Applicant applying to be a Member (with the
exception of any Applicant that was a
Member within 9 months prior to the date of
receipt of that Applicant’s application by the
Exchange, and any Applicant that was
investigated by the Exchange within 9
months prior to the date of receipt of that
Applicant’s application by the Exchange).
The Exchange may investigate any Applicant
that is not required to be investigated
pursuant to this paragraph. In connection
with an investigation conducted pursuant to
this paragraph, the Exchange may (i) conduct
a fingerprint based criminal records check of
the Applicant and its Responsible Person; or
(ii) utilize the results of a fingerprint based
criminal records check of the Applicant and
its Responsible Person conducted by the
Exchange or another self-regulatory
organization within the prior year.
Pursuant to this proposal, the
Exchange proposes to adopt the
following sub-paragraph, which will be
numbered as (c)(2) under Exchange Rule
200:
Applicants Not Holding MIAX Emerald or
MIAX PEARL Trading Permits. An applicant
not holding a MIAX Emerald or MIAX
PEARL trading permit seeking to hold a
MIAX Trading Permit (‘‘Applicant’’) must
submit an application to the Exchange in
accordance with such procedures as shall be
established by the Exchange. In addition, the
following shall apply:
The Exchange also proposes to make
corrective changes to the numerical and
alphabetical list item identifiers to
account for the Exchange’s proposal to
adopt new rule text for sub-paragraphs
(c)(1) and (c)(2), as described above,
which replaced the current subparagraphs identified as (c)(1) and (c)(2).
The Exchange proposes that the subparagraphs in Exchange Rule 200(c)(1)
through (c)(7), as well as paragraphs (d)
through (f), would be changed to
conform to the hierarchical heading
scheme used throughout the Exchange’s
rulebook as well as to account for the
new language adopted in new subparagraphs (c)(1) and (c)(2).
Accordingly, under Exchange Rule 200,
the text in paragraph (c) would be
deleted, leaving only the heading
‘‘Application Process’’ in bold font as a
heading for the entire section identified
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
20443
as paragraph (c). The Exchange proposes
to adopt new sub-paragraph (c)(1) and
(c)(2), as described above. Current subparagraph (c)(1) through (c)(7) will be
renumbered as (c)(2)(i) through
(c)(2)(vi), and current sub-paragraph
(c)(7) will become its own paragraph
identified as paragraph (d); current
paragraphs (d) through (f) will be
renumbered as (e) through (g); current
sub-paragraphs (c)(2)(i) through (c)(2)(ii)
will be renumbered as (c)(2)(ii)(A)
through (c)(2)(ii)(B); and the reference in
current sub-paragraph (c)(3) to
‘‘paragraph (2)’’ will be corrected such
that sub-paragraph (c)(3) will be
renumbered as sub-paragraph (c)(2)(iii)
and will reference ‘‘paragraph (ii).’’
Next, the Exchange proposes to
amend Exchange Rule 402, Criteria for
Underlying Securities, to make minor
corrective changes to the numerical and
alphabetical list item identifiers to
properly conform to the hierarchical
heading scheme used throughout the
Exchange’s rulebook. Currently,
Exchange Rule 402(i) provides as
follows:
Securities deemed appropriate for options
trading shall include shares or other
securities (‘‘Exchange-Traded Fund Shares’’)
that are traded on a national securities
exchange and are defined as an ‘‘NMS stock’’
under Rule 600 of Regulation NMS, and that:
The Exchange proposes that the subparagraphs that follow would be
changed to conform to the hierarchical
heading scheme used throughout the
Exchange’s rulebook. Accordingly,
under Exchange Rule 402(i), subparagraphs (A) through (E) will be
renumbered as (1) through (5); subparagraphs (E)(1) through (E)(2) will be
renumbered as (5)(i) through (5)(ii); subparagraphs (E)(1)(i) through (E)(1)(iii)
will be renumbered as (5)(i)(A) through
(5)(i)(C); sub-paragraph (E)(2) will be
renumbered as (5)(ii); sub-paragraphs
(E)(2)(i) through (E)(2)(ii) will be
renumbered as (5)(ii)(A) through
(5)(ii)(B); and sub-paragraphs
(E)(2)(ii)(A) through (E)(2)(ii)(D) will be
renumbered as (5)(ii)(B)(1) through
(5)(ii)(B)(4).
Next, the Exchange proposes to
amend Exchange Rule 403, Withdrawal
of Approval of Underlying Securities, to
conform references to Exchange Rule
402(i) sub-paragraphs that are in
Exchange Rule 403. Exchange Rule
403(g)(1) and (g)(2) currently reference
Exchange Rule 402(i)(E)(1)(i) and
402(i)(E)(1)(ii). The Exchange proposes
to amend these reference to conform to
the other proposed changes to Exchange
Rule 402 and the proposed changes
would be references to Exchange Rule
402(i)(5)(i)(A) and 402(i)(5)(i)(B).
E:\FR\FM\09MYN1.SGM
09MYN1
20444
Federal Register / Vol. 84, No. 90 / Thursday, May 9, 2019 / Notices
jbell on DSK3GLQ082PROD with NOTICES
Next, the Exchange proposes to
amend Exchange Rule 519, MIAX Order
Monitor, to amend sub-paragraph
(a)(3)(i) to delete Roman numeral (i) in
that sub-paragraph that immediately
precedes the sentence ‘‘The following
examples illustrate those situations
where lower priced limit orders are
rejected because they cross the NBBO by
at least 50%:’’ The Exchange proposes
to separate sub-paragraph (a)(3)(i) into
sub-paragraphs (a)(3)(i)(A) and
(a)(3)(i)(B). The Exchange also proposes
to amend sub-paragraph (a)(3)(i) to
separate Roman numeral (ii) into its
own sub-paragraph that will become
sub-paragraph (a)(3)(ii), with subparagraphs (a)(3)(ii)(A) and (a)(3)(ii)(B)
separated into their own sub-paragraphs
as well. The Exchange also proposes to
make a minor corrective change to the
current Roman numeral identifier for
sub-paragraph (a)(3)(ii) that is directly
below sub-paragraph (a)(3)(i) to properly
conform to the hierarchical heading
scheme used throughout the Exchange’s
rulebook following the other proposed
changes to Rule 519, sub-paragraph
(a)(3). Accordingly, the current subparagraph (a)(3)(ii) will be renumbered
as sub-paragraph (a)(3)(iii).
2. Statutory Basis
The Exchange believes that its
proposed rule change is consistent with
Section 6(b) of the Act 11 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 12 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The Exchange believes the proposed
changes promote just and equitable
principles of trade and remove
impediments to and perfect the
mechanism of a free and open market
and a national market system because
the proposed rule changes correct errors
in the hierarchical heading scheme to
provide uniformity in the Exchange’s
rulebook. The Exchange notes that the
proposed changes to Exchange Rule 100,
Rule 402, Rule 403 and Rule 519 do not
alter the application of each rule. As
such, the proposed amendments would
foster cooperation and coordination
11 15
U.S.C. 78f(b).
12 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
19:39 May 08, 2019
Jkt 247001
with persons engaged in facilitating
transactions in securities and would
remove impediments to and perfect the
mechanism of a free and open market
and a national exchange system. 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 interest for rules to be
accurate and concise so as to eliminate
the potential for confusion.
The Exchange believes the proposed
changes to Exchange Rule 200 promotes
just and equitable principles of trade
and removes impediments to and
perfects the mechanism of a free and
open market and a national market
system because the proposed changes
will align MIAX Rule 200 with MIAX
Emerald Rule 200 regarding trading
permits. The Exchange believes this
consistency across exchanges would
remove impediments to and perfect the
mechanism of a free and open market by
ensuring that members, regulators and
the public can more easily navigate the
Exchange’s rulebook and better
understand the application process for
trading permits. The Exchange also
believes that although MIAX Emerald
rules may, in certain instances,
intentionally differ from MIAX rules,
the proposed changes will promote
uniformity with MIAX with respect to
rules that are intended to be identical.
The Exchange believes that this
proposal will reduce the potential for
confusion by its Members that are also
Members of MIAX Emerald if the only
differences between MIAX Emerald
rules and MIAX rules are those are
specific to each exchange.
The Exchange also believes the
proposed changes to Exchange Rule 200
promotes just and equitable principles
of trade and removes impediments to
and perfects the mechanism of a free
and open market and a national market
system because MIAX and its affiliates,
MIAX Emerald and MIAX PEARL, have
substantially the same Members, and by
adopting the waive-in application
process for those Members already
holding trading permits on MIAX
Emerald and/or MIAX PEARL, promotes
the more effective utilization of time
and resources of the Exchange.
Furthermore, because MIAX Emerald
and MIAX PEARL trading permit
holders have already been vetted, the
Exchange’s proposal to adopt the waivein application process in Exchange Rule
200 aligns the trading permit
application process with that of the
Exchange’s affiliates, MIAX Emerald
and MIAX PEARL, preventing
unnecessary regulatory burdens and
PO 00000
Frm 00123
Fmt 4703
Sfmt 4703
promoting the efficient administration
of the Exchange’s rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule changes will have no
impact on competition as they are not
designed to address any competitive
issues but rather are designed to add
additional clarity to existing rules and
to remedy minor non-substantive issues
in the text of various rules identified in
this proposal.
The Exchange does not believe that
the proposed rule changes to Exchange
Rule 200 will impose any burden on
intermarket competition not necessary
or appropriate in furtherance of the
purposes of the Act because MIAX and
its affiliates, MIAX Emerald and MIAX
PEARL, have substantially the same
Members, and by adopting the waive-in
application process for those Members
already holding trading permits on
MIAX Emerald and/or MIAX PEARL
promotes the more effective utilization
of time and resources of the Exchange.
Furthermore, because MIAX PEARL and
MIAX Emerald trading permit holders
have already been vetted, the
Exchange’s proposal to amend the
waive-in application process in
Exchange Rule 200 aligns the trading
permit application process with that of
the Exchange’s affiliate, MIAX Emerald,
preventing unnecessary regulatory
burdens and promoting the efficient
administration of the Exchange’s rules.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 13 and Rule 19b–4(f)(6) 14
thereunder.
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
14 17
E:\FR\FM\09MYN1.SGM
09MYN1
Federal Register / Vol. 84, No. 90 / Thursday, May 9, 2019 / Notices
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
MIAX–2019–21 on the subject line.
jbell on DSK3GLQ082PROD 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–2019–21. 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
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
VerDate Sep<11>2014
19:39 May 08, 2019
Jkt 247001
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–2019–21, and
should be submitted on or before May
30, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–09508 Filed 5–8–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85771; File No. SR–
PEARL–2019–16]
Self-Regulatory Organizations; Miami
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Exchange
Rule 100, Definitions, Rule 200,
Trading Permits, Chapter III, Business
Conduct, Rule 506, Collection and
Dissemination of Quotations, Chapter
VII, Exercises and Deliveries, Chapter
VIII, Records, Reports and Audits,
Chapter IX, Summary Suspension,
Chapter XI, Hearings, Review and
Arbitration, Chapter XIII, Doing
Business With The Public, Chapter
XIV, Order Protection, Locked and
Crossed Markets, Chapter XV, Margins,
Chapter XVI, Net Capital Requirements,
Chapter XVII, Consolidated Audit Trail
Compliance Rule and Chapter XVIII,
Index Options
May 3, 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 April 24, 2019, Miami PEARL, LLC
(‘‘MIAX PEARL’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00124
Fmt 4703
Sfmt 4703
20445
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
make a number of minor, nonsubstantive edits to Exchange Rule 100,
Definitions, Rule 200, Trading Permits,
Chapter III, Business Conduct, Rule 506,
Collection and Dissemination of
Quotations, Chapter VII, Exercises and
Deliveries, Chapter VIII, Records,
Reports and Audits, Chapter IX,
Summary Suspension, Chapter XI,
Hearings, Review and Arbitration,
Chapter XIII, Doing Business With The
Public, Chapter XIV, Order Protection,
Locked and Crossed Markets, Chapter
XV, Margins, Chapter XVI, Net Capital
Requirements, Chapter XVII,
Consolidated Audit Trail Compliance
Rule and Chapter XVIII, Index Options
for purposes of clarification and
uniformity.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/pearl at MIAX PEARL’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
Exchange Rule 100, Definitions, to make
minor non-substantive edits to
harmonize the rule text to that of the
Exchange’s affiliate, MIAX Emerald,
LLC (‘‘MIAX Emerald’’). Currently,
Exchange Rule 100 does not include a
definition for the Exchange’s affiliate,
MIAX Emerald. In order to ensure
conformity, the Exchange proposes to
amend Exchange Rule 100 to adopt the
definition for MIAX Emerald that is
nearly identical to rule text found in
E:\FR\FM\09MYN1.SGM
09MYN1
]]>Agencies
[Federal Register Volume 84, Number 90 (Thursday, May 9, 2019)]
[Notices]
[Pages 20441-20445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09508]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85770; File No. SR-MIAX-2019-21]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Exchange Rule 100, Definitions, Rule 200,
Trading Permits, Rule 402, Criteria for Underlying Securities, Rule
403, Withdrawal of Approval of Underlying Securities and Rule 519, MIAX
Order Monitor
May 3, 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 April 24, 2019, Miami International Securities
Exchange, LLC (``MIAX Options'' or the ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') a proposed rule
change as described in
[[Page 20442]]
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 make a number of minor, non-
substantive edits to Exchange Rule 100, Definitions, Rule 200, Trading
Permits, Rule 402, Criteria for Underlying Securities, Rule 403,
Withdrawal of Approval of Underlying Securities and Rule 519, MIAX
Order Monitor, for purposes of clarification and uniformity.
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings/ at MIAX Options'
principal office, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Exchange Rule 100, Definitions, to
make a minor non-substantive edit to the definition for Electronic
Exchange Member in order to provide consistency and clarity within the
rule text. Currently, Exchange Rule 100 defines Electronic Exchange
Member as follows:
The term ``Electronic Exchange Member'' means the holder of a
Trading Permit who is not a Market Maker. Electronic Exchange
Members are deemed ``members'' under the Exchange Act.\3\
---------------------------------------------------------------------------
\3\ See Exchange Rule 100.
The Exchange proposes to amend the definition for Electronic
Exchange Member in Exchange Rule 100 to insert the abbreviation for
Electronic Exchange Member as ``EEM'' to provide consistency and
clarity within MIAX's rulebook. With the proposed change, the
---------------------------------------------------------------------------
definition for Electronic Exchange Member would be as follows:
The term ``Electronic Exchange Member'' or ``EEM'' means the
holder of a Trading Permit who is not a Market Maker. Electronic
Exchange Members are deemed ``members'' under the Exchange Act.
The proposed change would align the rule text for the definition of
an Electronic Exchange Member with the rulebook for MIAX, which uses
the EEM abbreviation for an Electronic Exchange Member in other
Exchange rules.
The Exchange also proposes to amend Exchange Rule 100, Definitions,
to make minor non-substantive edits to harmonize the rule text to that
of the Exchange's affiliate, MIAX Emerald, LLC (``MIAX Emerald'').
Currently, Exchange Rule 100 does not include definitions for the
Exchange's affiliates, MIAX Emerald and MIAX PEARL, LLC (``MIAX
PEARL''). In order to ensure conformity, the Exchange proposes to amend
Exchange Rule 100 to adopt definitions for MIAX Emerald and MIAX PEARL
that are nearly identical to rule text found in MIAX Emerald Rule 100.
MIAX proposes to adopt the following definition for MIAX Emerald to
be included in Exchange Rule 100: ``The term `MIAX Emerald' means MIAX
Emerald, LLC.'' MIAX proposes to adopt the following definition for
MIAX PEARL to be included in Exchange Rule 100: ``The term `MIAX PEARL'
means MIAX PEARL, LLC.'' The Exchange believes that adopting the
definitions of the Exchange's affiliates, MIAX Emerald and MIAX PEARL,
in Exchange Rule 100 creates consistency among MIAX, MIAX Emerald and
MIAX PEARL.
Next, the Exchange proposes to amend Exchange Rule 100 to clarify
the definition for the term ``MIAX.'' Exchange Rule 100 currently
defines MIAX as follows: ``The term `MIAX' means the Miami
International Securities Exchange, LLC.'' The Exchange proposes to
insert the phrase ``or the Exchange'' following the period in the
current definition for the term MIAX in Exchange Rule 100 to clarify
and align the rule text with the definition for the term the
``Exchange'' in Exchange Rule 100. Exchange Rule 100 currently defines
Exchange as follows: ``The term `Exchange' means the national
securities exchange known as Miami International Securities Exchange or
MIAX.'' The Exchange's proposal to clarify the definition for the term
``MIAX'' would be as follows: ``The term `MIAX' means the Miami
International Securities Exchange, LLC, or the Exchange.'' The proposal
is nearly identical to rule text in MIAX Emerald Rule 100.\4\ The
Exchange believes that its affiliate, MIAX PEARL, would also make a
nearly identical change to MIAX PEARL Rule 100.\5\
---------------------------------------------------------------------------
\4\ See MIAX Emerald Rule 100.
\5\ See SR-PEARL-2019-16.
---------------------------------------------------------------------------
The Exchange also proposes to amend Exchange Rule 100 to make minor
non-substantive edit to the definition for ``Exchange'' in order to
provide consistency and clarity within the rule text. Currently,
Exchange Rule 100 defines Exchange as follows: ``The term `Exchange'
means the national securities exchange known as Miami International
Securities Exchange or MIAX.'' The definition for Exchange in MIAX Rule
100 should include a comma and the abbreviation ``LLC'' following the
whole name for MIAX. Accordingly, the Exchange proposes to amend the
definition for Exchange as follows: ``The term `Exchange' means the
national securities exchange known as Miami International Securities
Exchange, LLC or MIAX.''
Next, the Exchange proposes to amend Exchange Rule 200, Trading
Permits, to conform to MIAX Emerald Rule 200 by adopting language to
differentiate the MIAX trading permit application process for holders
of MIAX Emerald or MIAX PEARL trading permits and applicants not
holding MIAX Emerald or MIAX PEARL trading permits. Currently, Exchange
Rule 200(c), Application Process, describes the application process for
a person or entity seeking to hold a MIAX Trading Permit as follows:
All persons or entities seeking to hold a Trading Permit
(``Applicant'') must submit an application to the Exchange in
accordance with such procedures as shall be established by the
Exchange via Regulatory Circular including submission deadlines and
payment of any applicable application fees. In addition, the
following shall apply: \6\
---------------------------------------------------------------------------
\6\ See Exchange Rule 200.
The current application process under Exchange Rule 200 for a MIAX
trading permit was established prior to the Exchange's affiliates, MIAX
Emerald and MIAX PEARL, commencing operations.
The Exchange proposes to adopt the waive-in application process for
a MIAX trading permit that is currently in place on MIAX Emerald. MIAX
Emerald Rule 200 provides that a holder of a MIAX or MIAX PEARL trading
permit in good standing is eligible to receive one MIAX Emerald Trading
Permit in the same Membership category to trade on MIAX
[[Page 20443]]
Emerald.\7\ Member \8\ applicants of MIAX and MIAX PEARL are not
required to submit a full application for membership on MIAX Emerald,
but rather only need to complete selected MIAX Emerald forms concerning
their election to trade on MIAX Emerald, consent to MIAX Emerald's
jurisdiction, and other operational matters.\9\ This waive-in
application process is similar to arrangements in place at other
exchanges.\10\
---------------------------------------------------------------------------
\7\ See MIAX Emerald Rule 100.
\8\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
\9\ See MIAX Emerald Rule 100.
\10\ See, e.g., Nasdaq MRX, LLC Rule 302(a) (containing similar
expedited waive-in membership process for members of the Nasdaq ISE,
LLC and Nasdaq GEMX, LLC); MIAX PEARL Rule 200(c)(1) (containing
similar expedited waive-in membership process for members of MIAX);
and Cboe C2 Exchange, Inc. Rule 3.1(c)(1) (containing similar
expedited waive-in membership process for members of Cboe).
---------------------------------------------------------------------------
MIAX proposes to adopt the waive-in application process to conform
to MIAX Emerald by adopting a new paragraph in Exchange Rule 200, that
will be numbered (c)(1). Currently, sub-paragraph (c)(1) under Exchange
Rule 200 provides as follows:
Each Applicant shall promptly update the application materials
submitted to the Exchange if any of the information provided in
these materials becomes inaccurate or incomplete after the date of
submission of the application to the Exchange and prior to any
approval of the application.
Pursuant to this proposal, the Exchange proposes to adopt the
following sub-paragraph, which will be numbered as (c)(1) under
Exchange Rule 200:
Holders of MIAX Emerald or MIAX PEARL Trading Permits. A holder
of a MIAX Emerald or MIAX PEARL trading permit in good standing is
eligible to receive one MIAX Trading Permit in the same Membership
category to trade on MIAX (i.e., a MIAX Emerald Primary Lead Market
Maker Member is eligible to become a MIAX Primary Lead Market Maker
Member, a MIAX Emerald Lead Market Maker Member is eligible to
become a MIAX Lead Market Maker Member, a MIAX Emerald Registered
Market Maker Member is eligible to become a MIAX Registered Market
Maker Member, a MIAX Emerald Electronic Exchange Member is eligible
to become a MIAX Electronic Exchange Member, a MIAX PEARL Market
Maker is eligible to become a MIAX Registered Market Maker and a
MIAX PEARL Electronic Exchange Member is eligible to become a MIAX
Electronic Exchange Member). A holder of a MIAX Emerald or MIAX
PEARL trading permit who wishes to apply to the Exchange is not
required to complete and submit an Exchange application. Instead
only Exchange forms concerning election to trade on the Exchange,
submitting to Exchange jurisdiction, and operational matters need be
completed and tendered.
The Exchange proposes to amend the rule text of Exchange Rule 200
to adopt a new sub-paragraph in Exchange Rule 200, that would be
numbered (c)(2) for trading permit applicants not holding a MIAX
Emerald or MIAX PEARL trading permit already. Currently, Exchange Rule
200(c)(2) provides as follows:
The Exchange shall investigate each Applicant applying to be a
Member (with the exception of any Applicant that was a Member within
9 months prior to the date of receipt of that Applicant's
application by the Exchange, and any Applicant that was investigated
by the Exchange within 9 months prior to the date of receipt of that
Applicant's application by the Exchange). The Exchange may
investigate any Applicant that is not required to be investigated
pursuant to this paragraph. In connection with an investigation
conducted pursuant to this paragraph, the Exchange may (i) conduct a
fingerprint based criminal records check of the Applicant and its
Responsible Person; or (ii) utilize the results of a fingerprint
based criminal records check of the Applicant and its Responsible
Person conducted by the Exchange or another self-regulatory
organization within the prior year.
Pursuant to this proposal, the Exchange proposes to adopt the
following sub-paragraph, which will be numbered as (c)(2) under
Exchange Rule 200:
Applicants Not Holding MIAX Emerald or MIAX PEARL Trading
Permits. An applicant not holding a MIAX Emerald or MIAX PEARL
trading permit seeking to hold a MIAX Trading Permit (``Applicant'')
must submit an application to the Exchange in accordance with such
procedures as shall be established by the Exchange. In addition, the
following shall apply:
The Exchange also proposes to make corrective changes to the
numerical and alphabetical list item identifiers to account for the
Exchange's proposal to adopt new rule text for sub-paragraphs (c)(1)
and (c)(2), as described above, which replaced the current sub-
paragraphs identified as (c)(1) and (c)(2). The Exchange proposes that
the sub-paragraphs in Exchange Rule 200(c)(1) through (c)(7), as well
as paragraphs (d) through (f), would be changed to conform to the
hierarchical heading scheme used throughout the Exchange's rulebook as
well as to account for the new language adopted in new sub-paragraphs
(c)(1) and (c)(2). Accordingly, under Exchange Rule 200, the text in
paragraph (c) would be deleted, leaving only the heading ``Application
Process'' in bold font as a heading for the entire section identified
as paragraph (c). The Exchange proposes to adopt new sub-paragraph
(c)(1) and (c)(2), as described above. Current sub-paragraph (c)(1)
through (c)(7) will be renumbered as (c)(2)(i) through (c)(2)(vi), and
current sub-paragraph (c)(7) will become its own paragraph identified
as paragraph (d); current paragraphs (d) through (f) will be renumbered
as (e) through (g); current sub-paragraphs (c)(2)(i) through (c)(2)(ii)
will be renumbered as (c)(2)(ii)(A) through (c)(2)(ii)(B); and the
reference in current sub-paragraph (c)(3) to ``paragraph (2)'' will be
corrected such that sub-paragraph (c)(3) will be renumbered as sub-
paragraph (c)(2)(iii) and will reference ``paragraph (ii).''
Next, the Exchange proposes to amend Exchange Rule 402, Criteria
for Underlying Securities, to make minor corrective changes to the
numerical and alphabetical list item identifiers to properly conform to
the hierarchical heading scheme used throughout the Exchange's
rulebook. Currently, Exchange Rule 402(i) provides as follows:
Securities deemed appropriate for options trading shall include
shares or other securities (``Exchange-Traded Fund Shares'') that
are traded on a national securities exchange and are defined as an
``NMS stock'' under Rule 600 of Regulation NMS, and that:
The Exchange proposes that the sub-paragraphs that follow would be
changed to conform to the hierarchical heading scheme used throughout
the Exchange's rulebook. Accordingly, under Exchange Rule 402(i), sub-
paragraphs (A) through (E) will be renumbered as (1) through (5); sub-
paragraphs (E)(1) through (E)(2) will be renumbered as (5)(i) through
(5)(ii); sub-paragraphs (E)(1)(i) through (E)(1)(iii) will be
renumbered as (5)(i)(A) through (5)(i)(C); sub-paragraph (E)(2) will be
renumbered as (5)(ii); sub-paragraphs (E)(2)(i) through (E)(2)(ii) will
be renumbered as (5)(ii)(A) through (5)(ii)(B); and sub-paragraphs
(E)(2)(ii)(A) through (E)(2)(ii)(D) will be renumbered as (5)(ii)(B)(1)
through (5)(ii)(B)(4).
Next, the Exchange proposes to amend Exchange Rule 403, Withdrawal
of Approval of Underlying Securities, to conform references to Exchange
Rule 402(i) sub-paragraphs that are in Exchange Rule 403. Exchange Rule
403(g)(1) and (g)(2) currently reference Exchange Rule 402(i)(E)(1)(i)
and 402(i)(E)(1)(ii). The Exchange proposes to amend these reference to
conform to the other proposed changes to Exchange Rule 402 and the
proposed changes would be references to Exchange Rule 402(i)(5)(i)(A)
and 402(i)(5)(i)(B).
[[Page 20444]]
Next, the Exchange proposes to amend Exchange Rule 519, MIAX Order
Monitor, to amend sub-paragraph (a)(3)(i) to delete Roman numeral (i)
in that sub-paragraph that immediately precedes the sentence ``The
following examples illustrate those situations where lower priced limit
orders are rejected because they cross the NBBO by at least 50%:'' The
Exchange proposes to separate sub-paragraph (a)(3)(i) into sub-
paragraphs (a)(3)(i)(A) and (a)(3)(i)(B). The Exchange also proposes to
amend sub-paragraph (a)(3)(i) to separate Roman numeral (ii) into its
own sub-paragraph that will become sub-paragraph (a)(3)(ii), with sub-
paragraphs (a)(3)(ii)(A) and (a)(3)(ii)(B) separated into their own
sub-paragraphs as well. The Exchange also proposes to make a minor
corrective change to the current Roman numeral identifier for sub-
paragraph (a)(3)(ii) that is directly below sub-paragraph (a)(3)(i) to
properly conform to the hierarchical heading scheme used throughout the
Exchange's rulebook following the other proposed changes to Rule 519,
sub-paragraph (a)(3). Accordingly, the current sub-paragraph (a)(3)(ii)
will be renumbered as sub-paragraph (a)(3)(iii).
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \11\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \12\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes the proposed changes promote just and
equitable principles of trade and remove impediments to and perfect the
mechanism of a free and open market and a national market system
because the proposed rule changes correct errors in the hierarchical
heading scheme to provide uniformity in the Exchange's rulebook. The
Exchange notes that the proposed changes to Exchange Rule 100, Rule
402, Rule 403 and Rule 519 do not alter the application of each rule.
As such, the proposed amendments would foster cooperation and
coordination with persons engaged in facilitating transactions in
securities and would remove impediments to and perfect the mechanism of
a free and open market and a national exchange system. 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 interest for rules to be accurate and concise so as to
eliminate the potential for confusion.
The Exchange believes the proposed changes to Exchange Rule 200
promotes just and equitable principles of trade and removes impediments
to and perfects the mechanism of a free and open market and a national
market system because the proposed changes will align MIAX Rule 200
with MIAX Emerald Rule 200 regarding trading permits. The Exchange
believes this consistency across exchanges would remove impediments to
and perfect the mechanism of a free and open market by ensuring that
members, regulators and the public can more easily navigate the
Exchange's rulebook and better understand the application process for
trading permits. The Exchange also believes that although MIAX Emerald
rules may, in certain instances, intentionally differ from MIAX rules,
the proposed changes will promote uniformity with MIAX with respect to
rules that are intended to be identical. The Exchange believes that
this proposal will reduce the potential for confusion by its Members
that are also Members of MIAX Emerald if the only differences between
MIAX Emerald rules and MIAX rules are those are specific to each
exchange.
The Exchange also believes the proposed changes to Exchange Rule
200 promotes just and equitable principles of trade and removes
impediments to and perfects the mechanism of a free and open market and
a national market system because MIAX and its affiliates, MIAX Emerald
and MIAX PEARL, have substantially the same Members, and by adopting
the waive-in application process for those Members already holding
trading permits on MIAX Emerald and/or MIAX PEARL, promotes the more
effective utilization of time and resources of the Exchange.
Furthermore, because MIAX Emerald and MIAX PEARL trading permit holders
have already been vetted, the Exchange's proposal to adopt the waive-in
application process in Exchange Rule 200 aligns the trading permit
application process with that of the Exchange's affiliates, MIAX
Emerald and MIAX PEARL, preventing unnecessary regulatory burdens and
promoting the efficient administration of the Exchange's rules.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule changes will
have no impact on competition as they are not designed to address any
competitive issues but rather are designed to add additional clarity to
existing rules and to remedy minor non-substantive issues in the text
of various rules identified in this proposal.
The Exchange does not believe that the proposed rule changes to
Exchange Rule 200 will impose any burden on intermarket competition not
necessary or appropriate in furtherance of the purposes of the Act
because MIAX and its affiliates, MIAX Emerald and MIAX PEARL, have
substantially the same Members, and by adopting the waive-in
application process for those Members already holding trading permits
on MIAX Emerald and/or MIAX PEARL promotes the more effective
utilization of time and resources of the Exchange. Furthermore, because
MIAX PEARL and MIAX Emerald trading permit holders have already been
vetted, the Exchange's proposal to amend the waive-in application
process in Exchange Rule 200 aligns the trading permit application
process with that of the Exchange's affiliate, MIAX Emerald, preventing
unnecessary regulatory burdens and promoting the efficient
administration of the Exchange's rules.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6) \14\
thereunder.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
[[Page 20445]]
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-MIAX-2019-21 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-2019-21. 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-2019-21, and should be submitted on
or before May 30, 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. 2019-09508 Filed 5-8-19; 8:45 am]
BILLING CODE 8011-01-P
