Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 518, Complex Orders, 37719-37721 [2020-13430]

Download as PDF Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / Notices 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: jbell on DSKJLSW7X2PROD with NOTICES 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– C2–2020–007 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–C2–2020–007. 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 VerDate Sep<11>2014 17:17 Jun 22, 2020 Jkt 250001 to make available publicly. All submissions should refer to File Number SR–C2–2020–007 and should be submitted on or before July 14, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.22 J. Matthew DeLesDernier. Assistant Secretary. [FR Doc. 2020–13432 Filed 6–22–20; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–89085; File No. SR–MIAX– 2020–16] Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 518, Complex Orders June 17, 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 June 12, 2020, Miami International Securities Exchange, LLC (‘‘MIAX’’ 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 Exchange Rule 518, Complex Orders. The text of the proposed rule change is available on the Exchange’s website at https://www.miaxoptions.com/rulefilings/ at MIAX’s principal office, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these 22 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 Frm 00098 Fmt 4703 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 SECURITIES AND EXCHANGE COMMISSION PO 00000 37719 Sfmt 4703 The Exchange proposes to amend Exchange Rule 518, Complex Orders, to adopt a new order type, Complex Attributable Order. Currently, the Exchange offers an Attributable Order 3 in its simple market.4 Current Exchange Rule 516(e) states that an Attributable Order is a market 5 or limit order 6 which displays the user firm ID for purposes of trading on the Exchange. Use of Attributable Orders is voluntary. Attributable Orders entered into the Exchange System 7 will be available for execution but may not display the user firm ID for all Exchange processes. The Exchange will issue a Regulatory Circular specifying the Exchange processes and the class(es) of securities for which the Attributable Order type shall be available.8 Currently, an Attributable Order in the simple market will display the Executing Broker MPID 9 when it triggers either a liquidity refresh pause,10 or a Route Timer.11 Attributable Orders were made available on the Exchange on June 17, 2013, for the aforementioned liquidity seeking events.12 The Attributable Order type is available for all option classes and can be activated on an order-by-order basis with the default set to off.13 3 See Exchange Rule 516(e). Exchange has a Simple Order Book, which is the Exchange’s regular electronic book of orders and quotes. See Exchange Rule 518(a)(15). The Exchange also has a Strategy Order book, which is the Exchange’s electronic book of complex orders and complex quotes. See Exchange Rule 518(A)(17). 5 A market order is an order to buy or sell a stated number of option contracts at the best price available at the time of execution. See Exchange Rule 516(a). 6 A limit order is an order to buy or sell a stated number of option contracts at a specified price or better. See Exchange Rule 516(b). 7 The term ‘‘System’’ means the automated trading system used by the Exchange for the trading of securities. See Exchange Rule 100. 8 See Exchange Rule 516(e). 9 An MPID is a Market Participant Identifier used by the Exchange. 10 See Exchange Rule 515(c)(3). 11 See Exchange Rule 529(b)(2). 12 See MIAX Options Regulatory Circular 2013– 33, Attributable Order (June 13, 2013) available at https://www.miaxoptions.com/sites/default/files/ circular-files/MIAX_RC_2013_33.pdf. 13 Id. 4 The E:\FR\FM\23JNN1.SGM 23JNN1 37720 Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / Notices The Exchange now proposes to adopt new subparagraph (8) to Exchange Rule 518(b) which will similarly provide that a Complex Attributable Order is a market or limit order which displays the user firm ID for purposes of trading on the Exchange. Use of Complex Attributable Orders is voluntary. Complex Attributable Orders entered into the Exchange System will be available for execution but may not display the user firm ID for all Exchange processes. Complex Attributable Orders will be used similarly for liquidity seeking events that occur on the Exchange’s Strategy Book, such as Complex Auctions. If enabled, the MPID will be displayed on the MIAX Order Feed (‘‘MOR’’) and the MIAX Administrator Information Subscriber (‘‘AIS’’) Feed. The Exchange will issue a Regulatory Circular specifying the Exchange processes and the class(es) of securities for which the Complex Attributable Order type shall be available.14 The Exchange will announce the implementation date of the proposed rule change by Regulatory Circular to be published no later than 90 days following the operative date of the proposed rule. The implementation date will be no later than 90 days following the issuance of the Regulatory Circular. jbell on DSKJLSW7X2PROD with NOTICES 2. Statutory Basis MIAX believes that its proposed rule change is consistent with Section 6(b) of the Act 15 in general, and furthers the objectives of Section 6(b)(5) of the Act 16 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 14 The ability to display information pertaining to a single order depends upon the Exchange’s ability to broadcast that information to its members. This is currently accomplished through the Exchange’s market data products, which for example includes the Administrative Information Subscriber Feed (‘‘AIS’’). Thus, the functionality of a Complex Attributable Order is linked to what is technologically feasible through the Exchange’s market data products. The definition of a Complex Attributable Order will acknowledge this relationship and allow the functionality of the Complex Attributable Order type to develop and be deployed correspondingly with technical advances related to its market data products. In its definition of a Complex Attributable Order the Exchange proposes to state that, ‘‘Complex Attributable Orders entered into the Exchange System will be available for execution but may not display the user firm ID for all Exchange processes.’’ This will serve to put MIAX members on notice that the functionality of a Complex Attributable Order to display the user firm ID, as it continually develops, may not be available during all Exchange processes. 15 15 U.S.C. 78f(b). 16 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 17:17 Jun 22, 2020 Jkt 250001 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 its proposal to adopt a Complex Attributable Order promotes just and equitable principles of trade, and removes impediments to and perfects the mechanisms of a free and open market system and, in general, protects investors and the public interest by introducing an order type for use on the complex market that is currently available for use on the Exchange’s simple market. Use of Complex Attributable Orders is voluntary and provides Members 17 of the Exchange similar order types for use on both the simple market and the complex market for use during liquidity seeking events to facilitate executions. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change to adopt a Complex Attributable Order will impose any burden on inter-market competition but rather may increase competition among exchanges.18 The Exchange notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues who offer similar functionality. The Exchange believes the proposed rule change will enhance competition among the various markets for complex order execution, potentially resulting in more active complex order trading on all exchanges. The Exchange does not believe that the proposed rule change to adopt a Complex Attributable Order will impose any burden on intra-market competition as use of a Complex Attributable Order is voluntary and all Members of the Exchange have the option to use a Complex Attributable Order when submitting a complex order to the Exchange. 17 The term ‘‘Member’’ means an individual or organization approved to exercise the trading rights associate with a Trading Permit. Members are deemed ‘‘members’’ under the Exchange Act. See Exchange Rule 100. 18 The Nasdaq ISE Exchange and Nasdaq MRX Exchange currently offer Attributable Complex Orders. See Nasdaq ISE Exchange, Options 3, Section 14, Complex Orders (b)(4); and Nasdaq MRX Exchange, Options 3, Section 14, Complex Orders (b)(4). PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 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 19 and Rule 19b–4(f)(6) 20 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, 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–2020–16 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–2020–16. This file number should be included on the 19 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. 20 17 E:\FR\FM\23JNN1.SGM 23JNN1 Federal Register / Vol. 85, No. 121 / Tuesday, June 23, 2020 / Notices 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–2020–16 and should be submitted on or before July 14, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–13430 Filed 6–22–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–616, OMB Control No. 3235–0671] Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736. jbell on DSKJLSW7X2PROD with NOTICES Extension: Rule 613 of Regulation NMS Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the 21 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:17 Jun 22, 2020 Jkt 250001 Office of Management and Budget (‘‘OMB’’) a request for approval of extension of the previously approved collection of information provided for in connection with a National Market System (NMS) Plan filed with the Commission under Rule 613 (17 CFR 242.613), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). Rule 613 of Regulation NMS (17 CFR part 242) required national securities exchanges and national securities associations (‘‘Participants’’) to jointly submit to the Commission a national market system (‘‘NMS’’) plan to govern the creation, implementation, and maintenance of a consolidated audit trail (‘‘CAT’’) and Central Repository for the collection of information for NMS securities. On February 27, 2015, the Participants submitted the CAT NMS Plan to the Commission.1 On April 27, 2016, the Commission published a notice soliciting comments from the public (‘‘CAT NMS Plan Notice’’).2 On November 15, 2016, the Commission approved the CAT NMS Plan (‘‘CAT NMS Plan Order’’), including the information collections proposed in the CAT NMS Plan Notice and certain additional information collections.3 Since November 15, 2016, the Commission believes that three information collection requirements have been completed, specifically: (1) A document outlining how the Participants could incorporate into the consolidated audit trail information regarding certain products that are not 1 See Letter from Participants to Brent J. Fields, Secretary, Commission, dated February 27, 2015. The Participants filed the CAT NMS Plan on September 30, 2014. See Letter from the Participants, to Brent J. Fields, Secretary, Commission, dated September 30, 2014. The CAT NMS Plan filed on February 27, 2015, was an amendment to and replacement of the Initial CAT NMS Plan (the ‘‘Amended and Restated CAT NMS Plan’’). On December 24, 2015, the Participants submitted an Amendment to the Amended and Restated CAT NMS Plan. See Letter from Participants to Brent J. Fields, Secretary, Commission, dated December 23, 2015 (the ‘‘Amendment’’). On February 9, 2016, the Participants filed with the Commission an identical, but unmarked, version of the Amended and Restated CAT NMS Plan, dated February 27, 2015, as modified by the Amendment, as well as a copy of the request for proposal issued by the Participants to solicit Bids from parties interested in serving as the Plan Processor for the consolidated audit trail. Unless the context otherwise requires, the ‘‘CAT NMS Plan’’ shall refer to the Amended and Restated CAT NMS Plan, as modified by the Amendment. 2 See Securities Exchange Act Release No. 77724 (April 27, 2016), 81 FR 30613 (May 17, 2016). The burdens associated with the CAT NMS Plan Notice were submitted under OMB number 3235–0671 which relates to the NMS Plan required to be filed under Rule 613. 3 See Securities Exchange Act Release No. 79318 (November 15, 2016), 81 FR 84696 (November 23, 2016), available at https://www.sec.gov/rules/sro/ nms/2016/34-79318.pdf (‘‘CAT NMS Plan Order’’). PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 37721 NMS securities; 4 (2) a one-time assessment of the clock synchronization standards in the Plan before reporting begins for Industry Members, which assessment shall take into account the diversity of CAT Reporters and systems; 5 and (3) a one-time report that discusses the Participants’ assessment of implementing coordinated surveillance.6 This Notice addresses the remaining information collection requirements noticed in the CAT NMS Plan Notice and certain additional information collection requirements of the CAT NMS Plan Order, which are: (1) Development of a Central Repository tasked with the receipt, consolidation, and retention of reported order and execution information submitted by Participants and their members; 7 (2) the requirement that each Participant, and any member of such Participant, record and electronically report to the Central Repository details for each order and Reportable Event documenting the life of an order through the process of original receipt or origination, routing, modification, cancellation, and execution (in whole or in part) for each NMS security; 8 (3) the requirement that the CAT NMS Plan require the Central Repository to collect and retain on a current and continuous basis NBBO information for each NMS security, transaction reports reported pursuant to an effective transaction reporting plan, and Last Sale Reports reported pursuant to the Options Price Reporting Authority Plan; 9 (4) the requirement that the CAT NMS Plan must require that every national securities exchange and national securities association develop and implement a surveillance system, or enhance existing surveillance systems, reasonably designed to make use of the consolidated information contained in the consolidated audit trail; 10 (5) a one-time independent audit of the fees, costs, and expenses incurred by the Participants on behalf of CAT NMS, LLC prior to the Effective Date 11 of the Plan; 12 (6) a one-time report from 4 See 17 CFR 242.613(i). See also ‘‘One-Time Written Assessments,’’ Consolidated Audit Trail, LLC at: https://www.catnmsplan.com/one-timewritten-assessments/. 5 See CAT NMS Plan Order, supra note 3, at 84940. 6 Id. at 84940–84941. 7 See 17 CFR 242.613. 8 See 17 CFR 242.613(c)(1), (c)(5), (c)(6), (c)(7). 9 See 17 CFR 242.613(e)(7). 10 See 17 CFR 242.613(f). 11 The ‘‘Effective Date’’ is the date the Commission approved the CAT NMS Plan, which is November 15, 2016. See id. 12 See CAT NMS Plan Order, supra note 3, at 84940. E:\FR\FM\23JNN1.SGM 23JNN1

Agencies

[Federal Register Volume 85, Number 121 (Tuesday, June 23, 2020)]
[Notices]
[Pages 37719-37721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13430]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89085; File No. SR-MIAX-2020-16]


Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Exchange Rule 518, Complex Orders

June 17, 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 June 12, 2020, Miami International Securities Exchange, LLC 
(``MIAX'' 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 Exchange Rule 518, 
Complex Orders.
    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 Exchange Rule 518, Complex Orders, 
to adopt a new order type, Complex Attributable Order.
    Currently, the Exchange offers an Attributable Order \3\ in its 
simple market.\4\ Current Exchange Rule 516(e) states that an 
Attributable Order is a market \5\ or limit order \6\ which displays 
the user firm ID for purposes of trading on the Exchange. Use of 
Attributable Orders is voluntary. Attributable Orders entered into the 
Exchange System \7\ will be available for execution but may not display 
the user firm ID for all Exchange processes. The Exchange will issue a 
Regulatory Circular specifying the Exchange processes and the class(es) 
of securities for which the Attributable Order type shall be 
available.\8\ Currently, an Attributable Order in the simple market 
will display the Executing Broker MPID \9\ when it triggers either a 
liquidity refresh pause,\10\ or a Route Timer.\11\ Attributable Orders 
were made available on the Exchange on June 17, 2013, for the 
aforementioned liquidity seeking events.\12\ The Attributable Order 
type is available for all option classes and can be activated on an 
order-by-order basis with the default set to off.\13\
---------------------------------------------------------------------------

    \3\ See Exchange Rule 516(e).
    \4\ The Exchange has a Simple Order Book, which is the 
Exchange's regular electronic book of orders and quotes. See 
Exchange Rule 518(a)(15). The Exchange also has a Strategy Order 
book, which is the Exchange's electronic book of complex orders and 
complex quotes. See Exchange Rule 518(A)(17).
    \5\ A market order is an order to buy or sell a stated number of 
option contracts at the best price available at the time of 
execution. See Exchange Rule 516(a).
    \6\ A limit order is an order to buy or sell a stated number of 
option contracts at a specified price or better. See Exchange Rule 
516(b).
    \7\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \8\ See Exchange Rule 516(e).
    \9\ An MPID is a Market Participant Identifier used by the 
Exchange.
    \10\ See Exchange Rule 515(c)(3).
    \11\ See Exchange Rule 529(b)(2).
    \12\ See MIAX Options Regulatory Circular 2013-33, Attributable 
Order (June 13, 2013) available at https://www.miaxoptions.com/sites/default/files/circular-files/MIAX_RC_2013_33.pdf.
    \13\ Id.

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[[Page 37720]]

    The Exchange now proposes to adopt new subparagraph (8) to Exchange 
Rule 518(b) which will similarly provide that a Complex Attributable 
Order is a market or limit order which displays the user firm ID for 
purposes of trading on the Exchange. Use of Complex Attributable Orders 
is voluntary. Complex Attributable Orders entered into the Exchange 
System will be available for execution but may not display the user 
firm ID for all Exchange processes. Complex Attributable Orders will be 
used similarly for liquidity seeking events that occur on the 
Exchange's Strategy Book, such as Complex Auctions. If enabled, the 
MPID will be displayed on the MIAX Order Feed (``MOR'') and the MIAX 
Administrator Information Subscriber (``AIS'') Feed. The Exchange will 
issue a Regulatory Circular specifying the Exchange processes and the 
class(es) of securities for which the Complex Attributable Order type 
shall be available.\14\
---------------------------------------------------------------------------

    \14\ The ability to display information pertaining to a single 
order depends upon the Exchange's ability to broadcast that 
information to its members. This is currently accomplished through 
the Exchange's market data products, which for example includes the 
Administrative Information Subscriber Feed (``AIS''). Thus, the 
functionality of a Complex Attributable Order is linked to what is 
technologically feasible through the Exchange's market data 
products. The definition of a Complex Attributable Order will 
acknowledge this relationship and allow the functionality of the 
Complex Attributable Order type to develop and be deployed 
correspondingly with technical advances related to its market data 
products. In its definition of a Complex Attributable Order the 
Exchange proposes to state that, ``Complex Attributable Orders 
entered into the Exchange System will be available for execution but 
may not display the user firm ID for all Exchange processes.'' This 
will serve to put MIAX members on notice that the functionality of a 
Complex Attributable Order to display the user firm ID, as it 
continually develops, may not be available during all Exchange 
processes.
---------------------------------------------------------------------------

    The Exchange will announce the implementation date of the proposed 
rule change by Regulatory Circular to be published no later than 90 
days following the operative date of the proposed rule. The 
implementation date will be no later than 90 days following the 
issuance of the Regulatory Circular.
2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with 
Section 6(b) of the Act \15\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act \16\ 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.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes its proposal to adopt a Complex Attributable 
Order promotes just and equitable principles of trade, and removes 
impediments to and perfects the mechanisms of a free and open market 
system and, in general, protects investors and the public interest by 
introducing an order type for use on the complex market that is 
currently available for use on the Exchange's simple market. Use of 
Complex Attributable Orders is voluntary and provides Members \17\ of 
the Exchange similar order types for use on both the simple market and 
the complex market for use during liquidity seeking events to 
facilitate executions.
---------------------------------------------------------------------------

    \17\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associate with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.
    The Exchange does not believe that the proposed rule change to 
adopt a Complex Attributable Order will impose any burden on inter-
market competition but rather may increase competition among 
exchanges.\18\ The Exchange notes that it operates in a highly 
competitive market in which market participants can readily direct 
order flow to competing venues who offer similar functionality. The 
Exchange believes the proposed rule change will enhance competition 
among the various markets for complex order execution, potentially 
resulting in more active complex order trading on all exchanges.
---------------------------------------------------------------------------

    \18\ The Nasdaq ISE Exchange and Nasdaq MRX Exchange currently 
offer Attributable Complex Orders. See Nasdaq ISE Exchange, Options 
3, Section 14, Complex Orders (b)(4); and Nasdaq MRX Exchange, 
Options 3, Section 14, Complex Orders (b)(4).
---------------------------------------------------------------------------

    The Exchange does not believe that the proposed rule change to 
adopt a Complex Attributable Order will impose any burden on intra-
market competition as use of a Complex Attributable Order is voluntary 
and all Members of the Exchange have the option to use a Complex 
Attributable Order when submitting a complex order to the Exchange.

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 \19\ and Rule 19b-4(f)(6) \20\ 
thereunder.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(3)(A).
    \20\ 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.
---------------------------------------------------------------------------

    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-2020-16 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-2020-16. This file 
number should be included on the

[[Page 37721]]

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-2020-16 and should be submitted on or before July 14, 2020.
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    \21\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-13430 Filed 6-22-20; 8:45 am]
BILLING CODE 8011-01-P
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