Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 510, Minimum Price Variations and Minimum Trading Increments To Extend the Penny Pilot Program, 27385-27387 [2019-12335]
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Federal Register / Vol. 84, No. 113 / Wednesday, June 12, 2019 / Notices
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Commission expects the total labor cost
per respondent will be approximately
$666.67 8 when annualized over three
years.
b. Representations regarding U.S.person status
Pursuant to Rule 3a71–3(a)(4)(iv),
persons may rely on representations
from a counterparty that the
counterparty does not satisfy the criteria
defining U.S. person set forth in Rule
3a71–3(a)(4)(i), unless such person
knows or has reason to know that the
representation is not accurate.
Commission staff has estimated, based
on its understanding of OTC derivatives
markets, including the domiciles of
counterparties that are active in the
market, that up to 2,400 entities will
provide representations that they do not
meet the criteria necessary to be U.S.
persons.
As with representations regarding
whether a transaction is conducted
through a foreign branch, the
Commission estimates the maximum
total third-party disclosure burden
associated with developing new
representations will be, for each
counterparty that will make such
representations, no more than five hours
and up to $2,000 for the services of
outside professionals, for a maximum of
approximately 12,000 hours or 4,000
hours per year when annualized over
three years, across all security-based
swap counterparties that will make such
representations. This estimate assumes
little or no reliance on standardized
disclosure language.
The Commission expects that the
majority of the burden associated with
the new disclosure requirements will be
experienced during the first year as
language is developed and trading
documentation is amended. After the
new representations are developed and
incorporated into trading
documentation, the Commission
believes that the annual third-party
disclosure burden associated with this
requirement will be no more than
approximately 10 hours per
counterparty for verifying
representations with existing
counterparties and onboarding new
counterparties, for a maximum of
approximately 24,000 hours 9 across all
applicable security-based swap
counterparties.
The Commission believes that some of
the entities that will have to comply
8 $33,333 (total labor cost to seek outside counsel
per year) ÷ 50 (estimated number of entities that
will seek outside counsel to help them develop new
representations contemplated by Rule 3a71–
3(a)(3)(ii)) = $666.67.
9 2,400 (total number of entities) * 10 hours =
24,000 hours
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17:00 Jun 11, 2019
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with Rule 3a71–3 will seek outside
counsel to help them develop new
representations contemplated by Rule
3a71–3. For PRA purposes, the
Commission assumes that all 2,400
respondents will seek outside legal for
the first year only and will, on average,
consult with outside counsel for a cost
of up to $2,000. The Commission also
assumes that none of the 2,400
respondents will seek outside legal
services for year two or year three. Thus,
the Commission expects the cost over
the three-year period will be
$4,800,000 10 or $1,600,000 11 per year
when annualized over three years,
across all security-based swap
counterparties that will make such
representations. The Commission
expects the total labor cost per
respondent will be approximately
$666.67 12 when annualized over three
years.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: June 7, 2019.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–12423 Filed 6–11–19; 8:45 am]
BILLING CODE 8011–01–P
10 2,400 (total number of entities) * $2,000 =
$4,800,000.
11 $4,800,000 (total cost over three years) ÷ 3 years
= $1,600,000.
12 $1,600,000 (total labor cost to seek outside
counsel per year) ÷ 2,400 (estimated number of
entities that will seek outside counsel to help them
develop new representations contemplated by Rule
3a71–3(4)(iv)) = $666.67.
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27385
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86054; File No. SR–MIAX–
2019–27]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Rule 510, Minimum
Price Variations and Minimum Trading
Increments To Extend the Penny Pilot
Program
June 6, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 30,
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 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 Rule 510, Minimum Price
Variations and Minimum Trading
Increments, Interpretation and Policy
.01 to extend the pilot program for the
quoting and trading of certain options in
pennies.
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.
1 15
2 17
E:\FR\FM\12JNN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
12JNN1
27386
Federal Register / Vol. 84, No. 113 / Wednesday, June 12, 2019 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is a participant in an
industry-wide pilot program that
provides for the quoting and trading of
certain option classes in penny
increments (the ‘‘Penny Pilot Program’’
or ‘‘Program’’). The Penny Pilot Program
allows the quoting and trading of certain
option classes in minimum increments
of $0.01 for all series in such option
classes with a price of less than $3.00;
and in minimum increments of $0.05 for
all series in such option classes with a
price of $3.00 or higher. Options
overlying the PowerShares QQQTM
(‘‘QQQ’’), SPDR® S&P 500® ETF
(‘‘SPY’’), and iShares® Russell 2000 ETF
(‘‘IWM’’), however, are quoted and
traded in minimum increments of $0.01
for all series regardless of the price. The
Penny Pilot Program was initiated at the
then existing option exchanges in
January 2007 3 and currently includes
more than 300 of the most active option
classes. The Penny Pilot Program is
currently scheduled to expire on June
30, 2019.4 The purpose of the proposed
rule change is to extend the Penny Pilot
Program in its current format through
December 31, 2019.
2. Statutory Basis
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The Exchange believes that its
proposed rule change is consistent with
Section 6(b) of the Act 5 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 6 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
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.
3 See Securities Exchange Act Release Nos. 55154
(January 23, 2007), 72 FR 4743 (February 1, 2007)
(SR–CBOE–2006–92); 55161 (January 24, 2007), 72
FR 4754 (February 1, 2007) (SR–ISE–2006–62);
54886 (December 6, 2006), 71 FR 74979 (December
13, 2006) (SR–Phlx–2006–74); 54590 (October 12,
2006), 71 FR 61525 (October 18, 2006) (SR–
NYSEArca–2006–73); and 54741 (November 9,
2006), 71 FR 67176 (November 20, 2006) (SR–
Amex–2006–106).
4 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).
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
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In particular, the proposed rule
change, which extends the Penny Pilot
Program for six months, allows the
Exchange to continue to participate in a
program that has been viewed as
beneficial to traders, investors and
public customers and viewed as
successful by the other options
exchanges participating in it.
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. Specifically,
the Exchange believes that, by extending
the expiration of the Pilot Program, the
proposed rule change will allow for
further analysis of the Penny Pilot
Program and a determination of how the
Program should be structured in the
future. In doing so, the proposed rule
change will also serve to promote
regulatory clarity and consistency,
thereby reducing burdens on the
marketplace, facilitating investor
protection, and fostering a competitive
environment. In addition, consistent
with previous practices, the Exchange
believes the other options exchanges
will be filing similar extensions of the
Penny Pilot Program.
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 7 and Rule 19b–4(f)(6) 8
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
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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.
8 17
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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–2019–27 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–MIAX–2019–27. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
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Federal Register / Vol. 84, No. 113 / Wednesday, June 12, 2019 / Notices
Number SR–MIAX–2019–27 and should
be submitted on or before July 3, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–12335 Filed 6–11–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86051; File No. SR–BX–
2019–002]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing of
Amendment No. 1 and Order Granting
Accelerated Approval of a Proposed
Rule Change, as Modified by
Amendment No. 1, To Reassign
Certain Investigation and Enforcement
Functions Under the Exchange’s
Authority and Supervision
June 6, 2019.
I. Introduction
On April 5, 2019, Nasdaq BX, Inc.
(‘‘Exchange’’ or ‘‘BX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
assume operational responsibility for
certain investigation and enforcement
functions currently performed by the
Financial Industry Regulatory Authority
(‘‘FINRA’’) under the Exchange’s
authority and supervision. The
proposed rule change was published for
comment in the Federal Register on
April 24, 2019.3 On May 2, 2019, the
Exchange filed Amendment No. 1 to the
proposed rule change, which amended
and replaced the proposed rule change
as originally filed.4 The Commission did
not receive any comment letters on the
proposed rule change. The Commission
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 85691
(April 18, 2019), 84 FR 17219.
4 In Amendment No. 1, the Exchange: (1) Clarified
that the staff performing surveillance work on
behalf of BX’s options and equities markets is the
same that performs surveillance work on behalf of
all The Nasdaq Stock Market LLC (‘‘Nasdaq’’)affiliated equities and options markets; (2) clarified
the equities surveillance patterns and related
review functions that were previously reallocated
from FINRA to the Exchange; (3) clarified that the
Exchange bears the ultimate responsibility for selfregulatory conduct and primary liability for selfregulatory failures; and (4) made other technical,
clarifying, and conforming changes. Amendment
No. 1 is available at https://www.sec.gov/comments/
sr-bx-2019-002/srbx2019002-5442622-184831.pdf.
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1 15
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Jkt 247001
is publishing this notice to solicit
comments on Amendment No. 1 from
interested persons, and is approving the
proposed rule change, as modified by
Amendment No. 1, on an accelerated
basis.
II. Description of the Proposal
Since its acquisition by The NASDAQ
OMX Group, Inc., the Exchange has
contracted with FINRA through various
regulatory services agreements to
perform certain regulatory functions on
its behalf.5 At the same time, the
Exchange has retained operational
responsibility for a number of regulatory
functions, including real-time
surveillance and most surveillance
related to its affiliated options markets.6
The Exchange now proposes to
reallocate operational responsibility
from FINRA to the Exchange’s
Regulation Department 7 for certain
investigation and enforcement activities,
specifically: (1) Investigation and
enforcement responsibilities for conduct
occurring on The BX Options Market,8
and (2) investigation and enforcement
responsibilities for conduct occurring
on BX’s equity market only (i.e., not also
on non-Nasdaq-affiliated equities
markets).9 The Exchange states that it
anticipates a phased transition whereby
it would assume increasing
investigation and enforcement
responsibility throughout 2019 and into
2020.10 The Exchange also anticipates
transitioning certain matters currently
pending with FINRA to the Exchange’s
Enforcement Department if the
Exchange’s Enforcement Department
believes doing so is consistent with
ensuring prompt resolution of
regulatory matters.11
Amendment No. 1, supra note 4 at 4.
id. at 4–5.
7 The Exchange’s Regulation Department includes
the Exchange’s Enforcement Department. See id. at
6 n.7. The Exchange states that the staff that
comprises the Exchange’s Regulation Department is
the same that comprises the Nasdaq Regulation
Department. See id.
8 The Exchange states that, as appropriate, the
Exchange’s Regulation Department will coordinate
with other self-regulatory organizations to the
extent it is investigating activity occurring on nonNasdaq-affiliated options markets to ensure no
regulatory duplication occurs. See id. at 6 n.8.
9 See id. at 5–6. The Exchange believes its
expertise in its own market structure, coupled with
its expertise in surveillance activities, would enable
it to conduct investigation and enforcement
responsibilities for the Exchange effectively,
efficiently, and with immediacy. See id. at 7. The
Exchange also states that Commission approval of
the proposal would allow it to better leverage its
surveillance, investigation, and enforcement teams,
to deliver increased efficiencies in the regulation of
its market, and to act promptly and provide more
effective regulation. See id. at 10.
10 See id. at 9.
11 See id.
27387
The Exchange states that FINRA will
continue to perform certain functions,
including, among other things: (1) The
investigation and enforcement of
conduct occurring on the BX equity
market that also relates to cross market
activity on non-Nasdaq-affiliated
exchanges; (2) the handling of contested
disciplinary proceedings arising out of
BX Regulation-led investigation and
enforcement activities; 12 and (3) matters
covered by agreements to allocate
regulatory responsibility under Rule
17d–2 of the Act.13
III. Discussion and Commission
Findings
After careful review, the Commission
finds that the proposed rule change, as
modified by Amendment No. 1, is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange 14 and, in particular,
with Sections 6(b)(5) and 6(b)(7) of the
Act.15 As noted above, since its
acquisition by The NASDAQ OMX
Group, Inc., the Exchange has
contracted with FINRA through various
regulatory services agreements to
perform certain regulatory functions on
its behalf.16 BX Rule 0150 requires that,
unless BX obtains prior Commission
approval, the regulatory functions
subject to the regulatory services
agreement in effect at the time when BX
executed the agreement in 2008 must at
all times continue to be performed by
FINRA or an affiliate thereof or by
another independent self-regulatory
organization. The Exchange now
proposes to reallocate operational
responsibility for the specific
investigation and enforcement activities
discussed above from FINRA to the
5 See
6 See
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12 The Exchange states that, for example, pursuant
to Rule 9216, if at the conclusion of a BX
Regulation-led investigation, BX Regulation has
reason to believe that a violation occurred but the
Respondent disputes the violation and therefore
does not execute an Acceptance, Waiver, and
Consent (‘‘AWC’’) letter, or if the Respondent
executes the AWC letter but the Exchange Review
Council, Review Subcommittee, or FINRA’s Office
of Disciplinary Affairs does not accept the executed
letter, the Exchange may decide to pursue formal
disciplinary proceedings. In such a case, the
Exchange would refer the matter to FINRA to
handle the formal disciplinary proceedings on its
behalf. FINRA’s Office of Hearing Officers will
continue to be responsible for the administration of
the hearing process. See id. at 8 n.15.
13 See id. at 8. The Exchange represents that, as
with all investigation and enforcement work, all
tasks delegated to FINRA are subject to BX’s
supervision and ultimate responsibility. See id.
14 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
15 15 U.S.C. 78f(b)(5), (7).
16 See supra note 5 and accompanying text.
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]]>Agencies
[Federal Register Volume 84, Number 113 (Wednesday, June 12, 2019)]
[Notices]
[Pages 27385-27387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12335]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86054; File No. SR-MIAX-2019-27]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule 510, Minimum Price Variations and
Minimum Trading Increments To Extend the Penny Pilot Program
June 6, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 30, 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
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 Rule 510, Minimum Price
Variations and Minimum Trading Increments, Interpretation and Policy
.01 to extend the pilot program for the quoting and trading of certain
options in pennies.
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.
[[Page 27386]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange is a participant in an industry-wide pilot program
that provides for the quoting and trading of certain option classes in
penny increments (the ``Penny Pilot Program'' or ``Program''). The
Penny Pilot Program allows the quoting and trading of certain option
classes in minimum increments of $0.01 for all series in such option
classes with a price of less than $3.00; and in minimum increments of
$0.05 for all series in such option classes with a price of $3.00 or
higher. Options overlying the PowerShares QQQTM (``QQQ''),
SPDR[supreg] S&P 500[supreg] ETF (``SPY''), and iShares[supreg] Russell
2000 ETF (``IWM''), however, are quoted and traded in minimum
increments of $0.01 for all series regardless of the price. The Penny
Pilot Program was initiated at the then existing option exchanges in
January 2007 \3\ and currently includes more than 300 of the most
active option classes. The Penny Pilot Program is currently scheduled
to expire on June 30, 2019.\4\ The purpose of the proposed rule change
is to extend the Penny Pilot Program in its current format through
December 31, 2019.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release Nos. 55154 (January 23,
2007), 72 FR 4743 (February 1, 2007) (SR-CBOE-2006-92); 55161
(January 24, 2007), 72 FR 4754 (February 1, 2007) (SR-ISE-2006-62);
54886 (December 6, 2006), 71 FR 74979 (December 13, 2006) (SR-Phlx-
2006-74); 54590 (October 12, 2006), 71 FR 61525 (October 18, 2006)
(SR-NYSEArca-2006-73); and 54741 (November 9, 2006), 71 FR 67176
(November 20, 2006) (SR-Amex-2006-106).
\4\ 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).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \6\ 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 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the proposed rule change, which extends the Penny
Pilot Program for six months, allows the Exchange to continue to
participate in a program that has been viewed as beneficial to traders,
investors and public customers and viewed as successful by the other
options exchanges participating in it.
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. Specifically, the Exchange
believes that, by extending the expiration of the Pilot Program, the
proposed rule change will allow for further analysis of the Penny Pilot
Program and a determination of how the Program should be structured in
the future. In doing so, the proposed rule change will also serve to
promote regulatory clarity and consistency, thereby reducing burdens on
the marketplace, facilitating investor protection, and fostering a
competitive environment. In addition, consistent with previous
practices, the Exchange believes the other options exchanges will be
filing similar extensions of the Penny Pilot Program.
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 \7\ and Rule 19b-4(f)(6) \8\
thereunder.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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.
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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-2019-27 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-MIAX-2019-27. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File
[[Page 27387]]
Number SR-MIAX-2019-27 and should be submitted on or before July 3,
2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-12335 Filed 6-11-19; 8:45 am]
BILLING CODE 8011-01-P
