Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 3435-3437 [2020-00802]
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Federal Register / Vol. 85, No. 13 / Tuesday, January 21, 2020 / Notices
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PSEG, ‘‘License Amendment Request for Approval of Changes to Emergency Plan Staffing Requirements,’’ dated July 8,
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PSEG, ‘‘Response to Request for Additional Information, Re: License Amendment Request for Approval of Changes to
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NRC letter to the Nuclear Energy Institute, ‘‘Alternative Guidance for Licensee Emergency Response Organizations,’’ dated
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Plans and Preparedness in Support of Nuclear Power Plants, Final Report,’’ dated December 2019 ....................................
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Dated at Rockville, Maryland, this 15th day
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For the Nuclear Regulatory Commission.
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[FR Doc. 2020–00821 Filed 1–17–20; 8:45 am]
BILLING CODE 7590–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87964; File No. SR–MIAX–
2020–01]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule
January 14, 2020.
jbell on DSKJLSW7X2PROD with NOTICES
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 January 3,
2020, Miami International Securities
Exchange LLC (‘‘MIAX Options’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend the MIAX Options Fee Schedule
(the ‘‘Fee Schedule’’).
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings, at MIAX’s principal office, and
at the Commission’s Public Reference
Room.
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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18:20 Jan 17, 2020
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II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
list of MIAX Select Symbols 3 contained
in the Priority Customer Rebate Program
(the ‘‘Program’’) 4 of the Exchange’s Fee
Schedule to delete the Select Symbols
‘‘CELG,’’ ‘‘HTZ’’ and ‘‘WY’’ from the
Select Symbols list.
The Exchange initially created the list
of MIAX Select Symbols on March 1,
2014,5 and has added and removed
option classes from that list since that
time.6 Select Symbols are rebated
3 The term ‘‘MIAX Select Symbols’’ means
options overlying AAL, AAPL, AIG, AMAT, AMD,
AMZN, BA, BABA, BB, BIDU, BP, C, CAT, CELG,
CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD,
GLD, GM, GOOGL, GPRO, HAL, HTZ, INTC, IWM,
JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, NOK,
ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY,
T, TSLA, USO, VALE, WBA, WFC, WMB, WY, X,
XHB, XLE, XLF, XLP, XOM and XOP.
4 See section 1(a)(iii) of the Fee Schedule for a
complete description of the Program.
5 See Securities Exchange Act Release No. 71700
(March 12, 2014), 79 FR 15188 (March 18, 2014)
(SR–MIAX–2014–13).
6 See Securities Exchange Act Release Nos. 87790
(December 18, 2019), 84 FR 71037 (December 26,
2019) (SR–MIAX–2019–49); 85314 (March 14,
2019), 84 FR 10359 (March 20, 2019) (SR–MIAX–
2019–07; 81998 (November 2, 2017), 82 FR 51897
(November 8, 2017) (SR–MIAX–2017–45); 81019
(June 26, 2017), 82 FR 29962 (June 30, 2017) (SR–
MIAX–2017–29); 79301 (November 14, 2016), 81 FR
PO 00000
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3435
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ML19189A316
ML19308A595
ML18022A352
ML19347D139
ML11089A021
slightly higher in certain Program tiers
than non-Select Symbols. The Exchange
notes that historically, Select Symbols
generally include a subset of classes of
options that are included in the Penny
Pilot Program, an industry-wide pilot
program that provides for the quoting
and trading of certain option classes in
penny increments (the ‘‘Penny Pilot
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. The Penny Pilot
Program was initiated at the then
existing option exchanges in January
2007 7 and currently includes more than
300 of the most active option classes.
The Exchanges notes that current
Select Symbol ‘‘CELG’’ will no longer be
included in the Penny Pilot Program
industry-wide beginning January 3,
2020 and Select Symbols ‘‘HTZ’’ and
‘‘WY’’ are no longer in the Penny Pilot
Program. Accordingly, for business and
competitive reasons, the Exchange
proposes to amend the Fee Schedule to
delete the symbols ‘‘CELG,’’ ‘‘HTZ’’ and
‘‘WY’’ from the list of MIAX Select
Symbols contained in the Program as
those Select Symbols are no longer in
the Penny Pilot Program.
81854 (November 18, 2016) (SR–MIAX–2016–42);
74291 (February 18, 2015), 80 FR 9841 (February
24, 2015) (SR–MIAX–2015–09); 74288 (February 18,
2015), 80 FR 9837 (February 24, 2015) (SR–MIAX–
2015–08); 73328 (October 9, 2014), 79 FR 62230
(October 16, 2014) (SR–MIAX–2014–50); 72567
(July 8, 2014), 79 FR 40818 (July 14, 2014) (SR–
MIAX–2014–34); 72356 (June 10, 2014), 79 FR
34384 (June 16, 2014) (SR–MIAX–2014–26); 71700
(March 12, 2014), 79 FR 15188 (March 18, 2014)
(SR–MIAX–2014–13).
7 See 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). See also Exchange Rule 510,
Interpretation and Policy .01.
E:\FR\FM\21JAN1.SGM
21JAN1
3436
Federal Register / Vol. 85, No. 13 / Tuesday, January 21, 2020 / Notices
2. Statutory Basis
The Exchange believes that its
proposal to amend the Fee Schedule is
consistent with Section 6(b) of the Act 8
in general, and furthers the objectives of
Section 6(b)(4) of the Act,9 in that it is
an equitable allocation of reasonable
dues, fees and other charges among
Exchange members and issuers and
other persons using its facilities, and
6(b)(5) of the Act,10 in that it is designed
to promote just and equitable principles
of trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest and is
not designed to permit unfair
discrimination between customers,
issuers, brokers and dealers.
In particular, the proposal to delete
the symbols ‘‘CELG,’’ ‘‘HTZ’’ and ‘‘WY’’
from the list of MIAX Select Symbols
contained in the Program is consistent
with Section 6(b)(4) of the Act because
the proposed changes will allow for
continued benefit to investors by
providing them an updated list of MIAX
Select Symbols contained in the
Program on the Fee Schedule.
The Exchange believes that the
proposal to amend an option class that
qualifies for the credit for transactions
in MIAX Select Symbols is fair,
equitable and not unreasonably
discriminatory. The Exchange believes
that the Program itself is reasonably
designed because it incentivizes
providers of Priority Customer 11 order
flow to send that Priority Customer
order flow to the Exchange in order to
receive a credit in a manner that enables
the Exchange to improve its overall
competitiveness and strengthen its
market quality for all market
participants. The Program, which
provides increased incentives in certain
tiers in high volume select symbols, is
also reasonably designed to increase the
competitiveness of the Exchange with
other options exchanges that also offer
increased incentives to higher volume
symbols.
The Exchange also believes that its
proposal is consistent with Section
6(b)(5) of the Act because it will apply
equally to all Priority Customer orders
in MIAX Select Symbols in the Program.
All similarly situated Priority Customer
orders in MIAX Select Symbols are
jbell on DSKJLSW7X2PROD with NOTICES
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
10 15 U.S.C. 78f(b)(1) and (b)(5).
11 The term ‘‘Priority Customer’’ means a person
or entity that (i) is not a broker or dealer in
securities, and (ii) does not place more than 390
orders in listed options per day on average during
a calendar month for its own beneficial account(s).
See Exchange Rule 100.
9 15
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18:20 Jan 17, 2020
Jkt 250001
subject to the same rebate schedule, and
access to the Exchange is offered on
terms that are not unfairly
discriminatory.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change should enable the
Exchange to continue to attract and
compete for order flow with other
exchanges. Notwithstanding the
removal of the symbols CELG, HTZ and
WY from the Select Symbols list, the
Exchange’s rebates remain highly
competitive with those of other
exchanges, and therefore should enable
the Exchange to continue to attract and
compete for order flow with other
exchanges which offer comparable
rebates for particular symbols. The
Exchange notes that it operates in a
highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
excessive. In such an environment, the
Exchange must continually adjust its
fees and rebates to remain competitive
with other exchanges and to attract
order flow.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act,12 and Rule
19b–4(f)(2) 13 thereunder. At any time
within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
12 15
13 17
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00102
Fmt 4703
Sfmt 4703
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–2020–01 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–2020–01. 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–2020–01, and
should be submitted on or before
February 11, 2020.
E:\FR\FM\21JAN1.SGM
21JAN1
Federal Register / Vol. 85, No. 13 / Tuesday, January 21, 2020 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
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.
constrain the Exchange’s transaction
fees, and market participants can readily
trade on competing venues if they deem
pricing levels at those other venues to
be more favorable.
[FR Doc. 2020–00802 Filed 1–17–20; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Proposed Change To Replace NonDisplayed Liquidity Incentives With
Step-Up Tiers
In response to the competitive
environment, the Exchange offers tiered
pricing which provides Members
opportunities to qualify for higher
rebates or reduced fees where certain
volume criteria and thresholds are met.
Tiered pricing provides incremental
incentives for Members to strive for
higher or different tier levels by offering
increasingly higher discounts or
enhanced benefits for satisfying
increasingly more stringent criteria or
different criteria. For example, pursuant
to footnote 2 of the Fee Schedule, the
Exchange currently offers a Mid-Point
Peg Tier that provides Members with a
reduced fee of $0.0005 for liquidity
adding orders that yield fee code ‘‘MM’’,
which generally has a fee of $0.0010. To
qualify for the Mid-Point Peg Tier, a
Member must have an ADAV 5 of greater
than or equal to 0.30% of the TCV.6
Also pursuant to footnote 2 of the Fee
Schedule, the Exchange offers a NonDisplayed Volume Tier that provides
Members with a reduced fee of $0.0004
for liquidity adding orders that yield fee
code ‘‘HA’’,7 which generally has a fee
of $0.00240, or ‘‘MM’’, which as noted
above generally has a fee of $0.0010. To
qualify for the Non-Displayed Volume
Tier, a Member must have an ADAV of
greater than or equal to 0.075% of the
TCV as Non-Displayed Orders that yield
fee codes ‘‘HA’’, ‘‘HI’’,8 or ‘‘MM’’. The
aforementioned Non-Displayed
Liquidity Incentives are designed to
encourage Members that provide nondisplayed liquidity adding orders on the
Exchange to increase their order flow,
thereby contributing to a deeper and
more liquid market to the benefit of all
market participants.
The Exchange now proposes to
remove the existing tiers related to NonDisplayed Liquidity Incentives on the
Exchange, and to instead offer ‘‘Step-Up
Tiers’’. Specifically, the Exchange
proposes to remove the Mid-Point Peg
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87960; File No. SR–
CboeBYX–2020–001]
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Fee Schedule
January 14, 2020.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on January
2, 2020, Cboe BYX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
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
Cboe BYX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
to amend its fee schedule. The text of
the proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/byx/), at
the Exchange’s Office of the Secretary,
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
jbell on DSKJLSW7X2PROD with NOTICES
3437
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
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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1. Purpose
The Exchange proposes to amend its
fee schedule to amend the rate for
liquidity adding orders that yield fee
code ‘‘MM’’.3 Additionally, the
Exchange proposes to remove NonDisplayed Liquidity Incentives and
replace them with Step-Up Tiers.
The Exchange first notes that it
operates in a highly-competitive market
in which market participants can
readily direct order flow to competing
venues if they deem fee levels at a
particular venue to be excessive or
incentives to be insufficient. More
specifically, the Exchange is only one of
13 registered equities exchanges, as well
as a number of alternative trading
systems and other off-exchange venues
that do not have similar self-regulatory
responsibilities under the Exchange Act,
to which market participants may direct
their order flow. Based on publicly
available information,4 no single
registered equities exchange has more
than 16% of the market share. Thus, in
such a low-concentrated and highly
competitive market, no single equities
exchange possesses significant pricing
power in the execution of order flow.
The Exchange in particular operates a
‘‘Taker-Maker’’ model whereby it pays
credits to Members that remove
liquidity and assesses fees to those that
add liquidity. The Exchange’s Fee
Schedule sets forth the standard rebates
and rates applied per share for orders
that remove and provide liquidity,
respectively. Particularly, for securities
at or above $1.00, the Exchange
provides a standard rebate of $0.0005
per share for orders that remove
liquidity and assesses a fee of $0.0019
per share for orders that add liquidity.
The Exchange believes that the evershifting market share among the
exchanges from month to month
demonstrates that market participants
can shift order flow, or discontinue to
reduce use of certain categories of
products, in response to fee changes.
Accordingly, competitive forces
3 ‘‘MM’’ is appended to non-displayed orders that
add liquidity using Mid-Point Peg.
4 See Cboe Global Markets, U.S. Equities Market
Volume Summary (December 26, 2019), available at
https://markets.cboe.com/us/equities/market_
statistics/.
PO 00000
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Fmt 4703
Sfmt 4703
5 ADAV means average daily volume calculated
as the number of shares added per day. ADAV is
calculated on a monthly basis.
6 TCV means total consolidated volume
calculated as the volume reported by all exchanges
and trade reporting facilities to a consolidated
transaction reporting plan for the month for which
the fees apply.
7 ‘‘HA’’ is appended to non-displayed orders that
add liquidity.
8 ‘‘HI’’ is appended to non-displayed orders that
receive price improvement and add liquidity.
E:\FR\FM\21JAN1.SGM
21JAN1
]]>Agencies
[Federal Register Volume 85, Number 13 (Tuesday, January 21, 2020)]
[Notices]
[Pages 3435-3437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00802]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87964; File No. SR-MIAX-2020-01]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
January 14, 2020.
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 January 3, 2020, Miami International Securities Exchange LLC (``MIAX
Options'' or ``Exchange'') filed with the Securities and Exchange
Commission (``SEC'' or ``Commission'') the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
by the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend the MIAX Options Fee
Schedule (the ``Fee Schedule'').
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings, at MIAX's principal
office, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the list of MIAX Select Symbols \3\
contained in the Priority Customer Rebate Program (the ``Program'') \4\
of the Exchange's Fee Schedule to delete the Select Symbols ``CELG,''
``HTZ'' and ``WY'' from the Select Symbols list.
---------------------------------------------------------------------------
\3\ The term ``MIAX Select Symbols'' means options overlying
AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BB, BIDU, BP, C, CAT,
CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, GOOGL,
GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX,
NOK, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, T, TSLA, USO, VALE,
WBA, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM and XOP.
\4\ See section 1(a)(iii) of the Fee Schedule for a complete
description of the Program.
---------------------------------------------------------------------------
The Exchange initially created the list of MIAX Select Symbols on
March 1, 2014,\5\ and has added and removed option classes from that
list since that time.\6\ Select Symbols are rebated slightly higher in
certain Program tiers than non-Select Symbols. The Exchange notes that
historically, Select Symbols generally include a subset of classes of
options that are included in the Penny Pilot Program, an industry-wide
pilot program that provides for the quoting and trading of certain
option classes in penny increments (the ``Penny Pilot 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. The Penny Pilot Program was initiated at the then existing
option exchanges in January 2007 \7\ and currently includes more than
300 of the most active option classes.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 71700 (March 12,
2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
\6\ See Securities Exchange Act Release Nos. 87790 (December 18,
2019), 84 FR 71037 (December 26, 2019) (SR-MIAX-2019-49); 85314
(March 14, 2019), 84 FR 10359 (March 20, 2019) (SR-MIAX-2019-07;
81998 (November 2, 2017), 82 FR 51897 (November 8, 2017) (SR-MIAX-
2017-45); 81019 (June 26, 2017), 82 FR 29962 (June 30, 2017) (SR-
MIAX-2017-29); 79301 (November 14, 2016), 81 FR 81854 (November 18,
2016) (SR-MIAX-2016-42); 74291 (February 18, 2015), 80 FR 9841
(February 24, 2015) (SR-MIAX-2015-09); 74288 (February 18, 2015), 80
FR 9837 (February 24, 2015) (SR-MIAX-2015-08); 73328 (October 9,
2014), 79 FR 62230 (October 16, 2014) (SR-MIAX-2014-50); 72567 (July
8, 2014), 79 FR 40818 (July 14, 2014) (SR-MIAX-2014-34); 72356 (June
10, 2014), 79 FR 34384 (June 16, 2014) (SR-MIAX-2014-26); 71700
(March 12, 2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
\7\ See 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). See also Exchange Rule 510,
Interpretation and Policy .01.
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The Exchanges notes that current Select Symbol ``CELG'' will no
longer be included in the Penny Pilot Program industry-wide beginning
January 3, 2020 and Select Symbols ``HTZ'' and ``WY'' are no longer in
the Penny Pilot Program. Accordingly, for business and competitive
reasons, the Exchange proposes to amend the Fee Schedule to delete the
symbols ``CELG,'' ``HTZ'' and ``WY'' from the list of MIAX Select
Symbols contained in the Program as those Select Symbols are no longer
in the Penny Pilot Program.XYZ
[[Page 3436]]
2. Statutory Basis
The Exchange believes that its proposal to amend the Fee Schedule
is consistent with Section 6(b) of the Act \8\ in general, and furthers
the objectives of Section 6(b)(4) of the Act,\9\ in that it is an
equitable allocation of reasonable dues, fees and other charges among
Exchange members and issuers and other persons using its facilities,
and 6(b)(5) of the Act,\10\ in that it is designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general to protect investors and the public interest and is not
designed to permit unfair discrimination between customers, issuers,
brokers and dealers.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
\10\ 15 U.S.C. 78f(b)(1) and (b)(5).
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In particular, the proposal to delete the symbols ``CELG,'' ``HTZ''
and ``WY'' from the list of MIAX Select Symbols contained in the
Program is consistent with Section 6(b)(4) of the Act because the
proposed changes will allow for continued benefit to investors by
providing them an updated list of MIAX Select Symbols contained in the
Program on the Fee Schedule.
The Exchange believes that the proposal to amend an option class
that qualifies for the credit for transactions in MIAX Select Symbols
is fair, equitable and not unreasonably discriminatory. The Exchange
believes that the Program itself is reasonably designed because it
incentivizes providers of Priority Customer \11\ order flow to send
that Priority Customer order flow to the Exchange in order to receive a
credit in a manner that enables the Exchange to improve its overall
competitiveness and strengthen its market quality for all market
participants. The Program, which provides increased incentives in
certain tiers in high volume select symbols, is also reasonably
designed to increase the competitiveness of the Exchange with other
options exchanges that also offer increased incentives to higher volume
symbols.
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\11\ The term ``Priority Customer'' means a person or entity
that (i) is not a broker or dealer in securities, and (ii) does not
place more than 390 orders in listed options per day on average
during a calendar month for its own beneficial account(s). See
Exchange Rule 100.
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The Exchange also believes that its proposal is consistent with
Section 6(b)(5) of the Act because it will apply equally to all
Priority Customer orders in MIAX Select Symbols in the Program. All
similarly situated Priority Customer orders in MIAX Select Symbols are
subject to the same rebate schedule, and access to the Exchange is
offered on terms that are not unfairly discriminatory.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
rule change should enable the Exchange to continue to attract and
compete for order flow with other exchanges. Notwithstanding the
removal of the symbols CELG, HTZ and WY from the Select Symbols list,
the Exchange's rebates remain highly competitive with those of other
exchanges, and therefore should enable the Exchange to continue to
attract and compete for order flow with other exchanges which offer
comparable rebates for particular symbols. The Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive. In such an environment, the Exchange
must continually adjust its fees and rebates to remain competitive with
other exchanges and to attract order flow.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\12\ and Rule 19b-4(f)(2) \13\ thereunder.
At any time within 60 days of the filing of the proposed rule change,
the Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-MIAX-2020-01 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-2020-01. 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-2020-01, and should be submitted on
or before February 11, 2020.
[[Page 3437]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-00802 Filed 1-17-20; 8:45 am]
BILLING CODE 8011-01-P
