Self-Regulatory Organizations: MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Pearl Fee Schedule, 21405-21410 [2021-08310]
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Federal Register / Vol. 86, No. 76 / Thursday, April 22, 2021 / Notices
Floor Brokers (in comparison to Floor
Market Makers) in order to incentivize
Floor Brokers to continue to bring
customer order flow to physical trading
floors for the benefit of all market
participants.41
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or 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 Exchange Act 42
and Rule 19b–4(f)(2) thereunder,43
because it establishes or changes a due,
or fee.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend the rule change if
it appears to the Commission that the
action is necessary or appropriate in the
public interest, for the protection of
investors, or would otherwise further
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–
BOX–2021–03 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–BOX–2021–03. 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
supra note 30.
U.S.C. 78s(b)(3)(A)(ii).
43 17 CFR 240.19b–4(f)(2).
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 such
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–BOX–2021–03, and should
be submitted on or before May 13, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.44
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 2021–08311 Filed 4–21–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91605; File No. SR–
PEARL–2021–16]
Self-Regulatory Organizations: MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX Pearl
Fee Schedule
Pursuant to the provisions of Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on April 8, 2021, MIAX PEARL, LLC
(‘‘MIAX Pearl’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change as described in
Items I, II, and III below, which Items
44 17
42 15
1 15
19:20 Apr 21, 2021
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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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 Pearl Fee Schedule
(the ‘‘Fee Schedule’’) for the Exchange’s
options market.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/pearl at MIAX Pearl’s principal
office, and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to make
several amendments to the tables for the
Add/Remove Tiered Rebates/Fees set
forth in Section (1)(a) of the Fee
Schedule that apply to the Priority
Customer 3 Origin, MIAX Pearl Market
Maker 4 Origin, and Non-Priority
Customer, Firm, BD, and Non-MIAX
Pearl Market Maker Origin (collectively,
‘‘Professional Members’’). As described
more fully below, the Exchange
proposes to: (i) Modify the volume
April 16, 2021.
41 See
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3 ‘‘Priority Customer’’ means a person or entity
that (i) is not a broker or dealer in securities, and
(ii) does not place more than 390 orders in listed
options per day on average during a calendar month
for its own beneficial accounts(s). The number of
orders shall be counted in accordance with
Interpretation and Policy .01 of Exchange Rule 100.
See the Definitions Section of the Fee Schedule and
Exchange Rule 100, including Interpretation and
Policy .01.
4 ‘‘Market Maker’’ means a Member registered
with the Exchange for the purpose of making
markets in options contracts traded on the
Exchange and that is vested with the rights and
responsibilities specified in Chapter VI of Exchange
Rules. See the Definitions Section of the Fee
Schedule.
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thresholds for standard volume criteria
in all Tiers (defined below) for all
Origin types; (ii) decrease the Maker
(defined below) rebate in Tier 4 for
options transactions in Penny Classes
(defined below) for the Priority
Customer Origin; (iii) modify the
volume threshold for the alternative
volume criteria in Tiers 3 and 4 for the
Market Maker Origin; and (iv) modify
the volume thresholds for the
alternative volume criteria for certain
Maker rebates and Taker fees for
Professional Members.
Background
The Exchange currently assesses
transaction rebates and fees to all
market participants which are based
upon the total monthly volume
executed by the Member 5 on MIAX
Pearl in the relevant, respective origin
type (not including Excluded
Contracts) 6 (as the numerator)
expressed as a percentage of (divided
by) TCV 7 (as the denominator). In
addition, the per contract transaction
rebates and fees are applied
retroactively to all eligible volume for
5 ‘‘Member’’ means an individual or organization
that is registered with the Exchange pursuant to
Chapter II of the Exchange Rules for purposes of
trading on the Exchange as an ‘‘Electronic Exchange
Member’’ or ‘‘Market Maker.’’ Members are deemed
‘‘members’’ under the Exchange Act. See the
Definitions Section of the Fee Schedule and
Exchange Rule 100.
6 ‘‘Excluded Contracts’’ means any contracts
routed to an away market for execution. See the
Definitions Section of the Fee Schedule.
7 ‘‘TCV’’ means total consolidated volume
calculated as the total national volume in those
classes listed on MIAX Pearl for the month for
which the fees apply, excluding consolidated
volume executed during the period time in which
the Exchange experiences an ‘‘Exchange System
Disruption’’ (solely in the option classes of the
affected Matching Engine (as defined below)). The
term Exchange System Disruption, which is defined
in the Definitions section of the Fee Schedule,
means an outage of a Matching Engine or collective
Matching Engines for a period of two consecutive
hours or more, during trading hours. The term
Matching Engine, which is also defined in the
Definitions section of the Fee Schedule, is a part of
the MIAX Pearl electronic system that processes
options orders and trades on a symbol-by-symbol
basis. Some Matching Engines will process option
classes with multiple root symbols, and other
Matching Engines may be dedicated to one single
option root symbol (for example, options on SPY
may be processed by one single Matching Engine
that is dedicated only to SPY). A particular root
symbol may only be assigned to a single designated
Matching Engine. A particular root symbol may not
be assigned to multiple Matching Engines. The
Exchange believes that it is reasonable and
appropriate to select two consecutive hours as the
amount of time necessary to constitute an Exchange
System Disruption, as two hours equates to
approximately 1.4% of available trading time per
month. The Exchange notes that the term
‘‘Exchange System Disruption’’ and its meaning
have no applicability outside of the Fee Schedule,
as it is used solely for purposes of calculating
volume for the threshold tiers in the Fee Schedule.
See the Definitions Section of the Fee Schedule.
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that origin type once the respective
threshold tier (‘‘Tier’’) has been reached
by the Member. The Exchange
aggregates the volume of Members and
their Affiliates.8 Members that place
resting liquidity, i.e., orders resting on
the book of the MIAX Pearl System,9 are
paid the specified ‘‘maker’’ rebate (each
a ‘‘Maker’’), and Members that execute
against resting liquidity are assessed the
specified ‘‘taker’’ fee (each a ‘‘Taker’’).
For opening transactions and ABBO 10
uncrossing transactions, per contract
transaction rebates and fees are waived
for all market participants. Finally,
Members are assessed lower transaction
fees and receive lower rebates for order
executions in standard option classes in
the Penny Interval Program 11 (‘‘Penny
Classes’’) than for order executions in
standard option classes that are not in
the Penny Interval Program (‘‘NonPenny Classes’’), where Members are
assessed higher transaction fees and
receive higher rebates.
Modifications to Standard Volume
Criteria Percentage Thresholds in all
Tiers for all Origins
The Exchange proposes to amend the
Add/Remove Tiered Rebates/Fees set
forth in Section (1)(a) of the Fee
Schedule to modify the volume
thresholds for standard volume criteria
in all Tiers for all Origins. In particular,
for the Priority Customer Origin, the
Exchange proposes to amend the
volume criteria percentage thresholds in
each Tier, as follows: (i) Tier 1 will be
amended from 0.00%–0.10% to now be
0.00%–0.15%; (ii) Tier 2 will be
amended from above 0.10%–0.35% to
now be above 0.15%–0.40%; (iii) Tier 3
8 ‘‘Affiliate’’ means (i) an affiliate of a Member of
at least 75% common ownership between the firms
as reflected on each firm’s Form BD, Schedule A,
or (ii) the Appointed Market Maker of an Appointed
EEM (or, conversely, the Appointed EEM of an
Appointed Market Maker). An ‘‘Appointed Market
Maker’’ is a MIAX Pearl Market Maker (who does
not otherwise have a corporate affiliation based
upon common ownership with an EEM) that has
been appointed by an EEM and an ‘‘Appointed
EEM’’ is an EEM (who does not otherwise have a
corporate affiliation based upon common
ownership with a MIAX Pearl Market Maker) that
has been appointed by a MIAX Pearl Market Maker,
pursuant to the process described in the Fee
Schedule. See the Definitions Section of the Fee
Schedule.
9 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
10 ‘‘ABBO’’ means the best bid(s) or offer(s)
disseminated by other Eligible Exchanges (defined
in Exchange Rule 1400(g) and calculated by the
Exchange based on market information received by
the Exchange from OPRA. See the Definitions
Section of the Fee Schedule and Exchange Rule
100.
11 See Securities Exchange Act Release No. 88992
(June 2, 2020), 85 FR 35142 (June 8, 2020) (SR–
PEARL–2020–06).
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will be amended from above 0.35%–
0.50% to now be above 0.40%–0.85%;
(iv) Tier 4 will be amended from above
0.50%–0.75% to now be above 0.85%–
1.25%; (v) Tier 5 will be amended from
above 0.75%–1.25% to now be above
1.25%–2.25%; and (vi) Tier 6 will be
amended from above 1.25% to now be
above 2.25%.
Next, the Exchange proposes to
modify the volume thresholds for
standard volume criteria in all Tiers for
the MIAX Pearl Market Maker Origin.12
For the MIAX Pearl Market Maker
Origin, the Exchange proposes to amend
the standard volume criteria percentage
thresholds in each Tier, as follows: (i)
Tier 1 will be amended from 0.00%–
0.15% to now be 0.00%–0.20%; (ii) Tier
2 will be amended from above 0.15%–
0.40% to now be above 0.20%–0.50%;
(iii) Tier 3 will be amended from above
0.40%–0.65% to now be above 0.50%–
0.85%; (iv) Tier 4 will be amended from
above 0.65%–1.00% to now be above
0.85%–1.25%; (v) Tier 5 will be
amended from above 1.00%–1.40% to
now be above 1.25%–1.50%; and (vi)
Tier 6 will be amended from above
1.40% to now be above 1.50%.
Next, the Exchange proposes to
modify the volume thresholds for
volume criteria in all Tiers for the
Professional Members Origin. For the
Professional Members Origin, the
Exchange proposes to amend the
volume criteria percentage thresholds in
each Tier, as follows: (i) Tier 1 will be
amended from 0.00%–0.15% to now be
0.00%–0.20%; (ii) Tier 2 will be
amended from above 0.15%–0.40% to
now be above 0.20%–0.50%; (iii) Tier 3
will be amended from above 0.40%–
0.65% to now be above 0.50%–0.85%;
(iv) Tier 4 will be amended from above
0.65%–1.00% to now be above 0.85%–
1.25%; (v) Tier 5 will be amended from
above 1.00%–1.40% to now be above
1.25%–1.50%; and (vi) Tier 6 will be
amended from above 1.40% to now be
above 1.50%.
The purpose of adjusting the
percentage thresholds for standard
volume criteria in all Tiers for all
Origins is for business and competitive
reasons. In order to attract order flow,
the Exchange initially set its volume
thresholds so that they were
meaningfully lower than other options
exchanges that operate comparable
maker/taker pricing models. The
Exchange now believes that it is
appropriate to adjust the volume
12 The Exchange notes that it also proposes to
amend the alternative volume criteria in Tiers 3 and
4 for the Market Maker Origin, described below.
The Exchange does not propose to amend the
alternative volume criteria in Tier 2 for the Market
Maker Origin at this time.
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thresholds so that they are more in line
with other exchanges, but will still
remain highly competitive such that it
should enable the Exchange to continue
to attract order flow and maintain
market share.
Decrease to Priority Customer Origin
Tier 4 Rebate
The Exchange proposes to amend the
Maker rebate in Tier 4 for options
transactions in Penny Classes for the
Priority Customer Origin. Currently, the
Exchange offers a Maker rebate of
($0.51) in Tier 4 for options transactions
in Penny Classes for the Priority
Customer Origin. The Exchange now
proposes to decrease the Maker rebate in
Tier 4 for options transactions in Penny
Classes for the Priority Customer Origin
from ($0.51) to ($0.49).
The purpose of adjusting the specified
Maker rebate is for business and
competitive reasons. In order to attract
order flow, the Exchange initially set its
Maker rebates and Taker fees so that
they were meaningfully higher/lower
than other options exchanges that
operate comparable maker/taker pricing
models. The Exchange now believes that
it is appropriate to further adjust this
specified Maker rebate so that it is more
in line with other exchanges, but will
still remain highly competitive such
that it should enable the Exchange to
continue to attract order flow and
maintain market share.
Modification to Alternative Volume
Criteria for Market Maker Origin Tier 3
The Market Maker Origin set forth in
Section (1)(a) of the Fee Schedule
currently provides an alternative
volume criteria in Tier 3.13 The
alternative volume criteria in Tier 3 is
based upon the total monthly volume
executed in SPY options on MIAX Pearl
by a MIAX Pearl Market Maker when
adding liquidity. Pursuant to this
alternative volume criteria, Market
Makers qualify for: (i) Maker rebates of
($0.44) in SPY, QQQ and IWM options
for their Market Maker Origin when
trading against Origins not Priority
Customer, and (ii) Maker rebates of
($0.42) in SPY, QQQ and IWM options
for their Market Maker Origin when
trading against Priority Customer
Origins, if the Market Maker executes at
least 1.10% in SPY options when
adding liquidity. The Tier 3 alternative
Volume Criteria (above 1.10% in SPY
when Adding Liquidity) is calculated
based on the total monthly volume that
added liquidity executed by the Market
13 See Securities Exchange Act Release No. 90906
(January 12, 2021), 86 FR 5296 (January 19, 2021)
(SR–PEARL–2020–38).
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Maker solely in SPY options on MIAX
Pearl, not including Excluded Contracts,
(as the numerator) expressed as a
percentage of (divided by) SPY TCV 14
(as the denominator). The Exchange
notes that Market Makers that achieve
the standard Tier 3 volume percentage
but do not qualify for the proposed
alternative Volume Criteria in that Tier,
receive the Tier 3 rates in the Market
Maker Origin table in Penny Classes and
Non-Penny Classes. Members receive
the highest tier based on the thresholds
achieved. Other Penny classes and NonPenny classes receive the Tier 3 rates in
the Market Maker Origin table.
The Exchange now proposes to amend
the Tier 3 alternative volume criteria
percentage threshold from above 1.10%
to now be above 1.20% in SPY when
adding liquidity. With the proposed
change, Market Makers will qualify for:
(i) Maker rebates of ($0.44) in SPY, QQQ
and IWM options for their Market Maker
Origin when trading against Origins not
Priority Customer, and (ii) Maker
rebates of ($0.42) in SPY, QQQ and
IWM options for their Market Maker
Origin when trading against Priority
Customer Origins, if the Market Maker
executes at least 1.20% in SPY options
when adding liquidity. Other Penny
Classes and Non-Penny Classes receive
the Tier 3 rates in the Market Maker
Origin table. The Exchange does not
propose to modify the calculation
method for a Market Maker to reach the
alternative Volume Criteria in Tier 3,
only the threshold percentage. The
Exchange proposes to make the
corresponding changes to the volume
threshold percentages described in the
explanatory paragraph in footnote ‘‘✦’’
for the alternative volume criteria for
Tier 3 that is below the fee/rebate tables
in Section 1)a) of the Fee Schedule. The
purpose of this proposed change is for
business and competitive reasons.
Alternative Volume Criteria for Market
Maker Origin Tier 4
The Market Maker Origin set forth in
Section 1)a) of the Fee Schedule
currently provides alternative volume
criteria in Tier 4.15 In Tier 4 for MIAX
Pearl Market Makers, the alternative
volume criteria (above 2.25% in SPY) is
calculated based on the total monthly
volume executed by the Market Maker
14 ‘‘SPY TCV’’ means total consolidated volume
in SPY calculated as the total national volume in
SPY for the month for which the fees apply,
excluding consolidated volume executed during the
period of time in which the Exchange experiences
an Exchange System Disruption (solely in SPY
options). See the Definitions Section of the Fee
Schedule.
15 See Securities Exchange Act Release no. 83419
(June 12, 2018), 83 FR 28285 (June 18, 2018) (SR–
PEARL–2018–13).
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21407
solely in SPY options on MIAX Pearl in
the relevant Origin type, not including
Excluded Contracts, (as the numerator)
expressed as a percentage of (divided
by) SPY TCV (as the denominator).
Pursuant to this alternative volume
criteria, a Market Maker could currently
reach the Tier 4 threshold if the Market
Maker’s total executed monthly volume
in SPY options on MIAX Pearl is above
2.25% of total consolidated national
monthly volume in SPY options.
The Exchange proposes to amend the
threshold percentage for the alternative
volume criteria such that a Market
Maker can reach the Tier 4 threshold if
the Market Maker’s total executed
monthly volume in SPY options on
MIAX Pearl is above 2.50% of the total
consolidated national monthly volume
in SPY options. The alternative volume
criteria threshold in Tier 4 for Market
Makers in SPY options is also discussed
in the note beneath the transaction fee
tables, which provides more
explanation on the alternative
threshold. Accordingly, the Exchange
also proposes to change the threshold
amount (increasing it from 2.25% to
2.50%) in that note beneath the tables.
The Exchange notes that it does not
propose to amend the volume threshold
for the alternative criteria in Tier 2 for
the Market Maker Origin (above 0.75%
in SPY/QQQ/IWM) for business reasons.
The Exchange notes that it does not
propose to amend the volume threshold
for the alternative criteria in Tier 2 for
the Market Maker Origin (above 0.75%
in SPY/QQQ/IWM) for business reasons.
Modification to Volume Thresholds for
Alternative Volume Criteria for Certain
Maker Rebates and Taker Fees for
Professional Members
The Exchange also proposes to amend
footnote ‘‘∧’’ below the tables in the
Add/Remove Tiered Rebates/Fees set
forth in Section (1)(a) of the Fee
Schedule to increase the Priority
Customer threshold in which Members
may qualify for alternative Maker
rebates for options transactions in all
classes for Professional Members,
provided that the Member meets certain
volume criteria. Currently, Members
may qualify for Maker rebates equal to
the greater of: (A) ($0.40) for Penny
Classes and ($0.65) for Non-Penny
Classes, or (B) the amount set forth in
the applicable Tier reached by the
Member in the relevant Origin, if the
Member and their Affiliates execute at
least 2.00% volume in the relevant
month, in Priority Customer Origin
type, in all options classes, not
including Excluded Contracts, as
compared to the TCV in all MIAX Pearl
listed option classes.
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The Exchange proposes to increase
the Priority Customer threshold
percentage amount in footnote ‘‘∧’’ from
at least 2.00% to at least 2.25% of
volume in the relevant month, in
Priority Customer Origin type, in all
options classes, not including Excluded
Contracts, as compared to the TCV in all
MIAX Pearl listed option classes, in
order to qualify for the alternative
Maker rebates. For purposes of
qualifying for such rates, the Exchange
will continue to aggregate the Priority
Customer volume transacted by
Members and their Affiliates. As the
amount and type of volume that is
executed on the Exchange has shifted
since it first established the alternative
Maker rebates for options transactions
in all classes for Professional Members,
provided that the Member meets certain
volume criteria,16 the Exchange has
determined to level-set this threshold
amount so that it is more reflective of
the current operating conditions and the
current type and amount of volume
executed on the Exchange.
The Exchange also proposes to amend
footnote ‘‘✧’’ below the tables in the
Add/Remove Tiered Rebates/Fees set
forth in Section (1)(a) of the Fee
Schedule to increase the Priority
Customer threshold in which Members
may qualify for alternative Taker fees for
options transactions in Penny Classes
for Professional Members, provided that
the Member meets certain volume
criteria. Currently, Members may
qualify for Taker fees of $0.48 for Penny
Classes for their Firm Origin when
trading against Origins not Priority
Customer if the Member and their
Affiliates execute at least 2.00% of TCV
in the relevant month in the Priority
Customer Origin type, in all options
classes, not including Excluded
Contracts, as compared to TCV in all
MIAX Pearl listed option classes.
The Exchange proposes to increase
the Priority Customer threshold
percentage amount in footnote ‘‘✧’’ from
at least 2.00% to at least 2.25% of
volume in the relevant month, in
Priority Customer Origin type, in all
options classes, not including Excluded
Contracts, as compared to the TCV in all
MIAX Pearl listed option classes, in
order to qualify for the alternative Taker
fees. For purposes of qualifying for such
rates, the Exchange will continue to
aggregate the Priority Customer volume
transacted by Members and their
Affiliates. As the amount and type of
volume that is executed on the
16 See Securities Exchange Act Release Nos.
83419 (June 12, 2018), 83 FR 28285 (June 18, 2018)
(SR–PEARL–2018–13); 85608 (April 11, 2019), 84
FR 16073 (April 17, 2019) (SR–PEARL–2019–13).
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Exchange has shifted since it first
established the alternative Taker fees for
options transactions in all classes for
Professional Members, provided that the
Member meets certain volume criteria,17
the Exchange has determined to levelset this threshold amount so that it is
more reflective of the current operating
conditions and the current type and
amount of volume executed on the
Exchange.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 18
in general, and furthers the objectives of
Section 6(b)(4) of the Act,19 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,20 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.
The Exchange believes its proposal
provides for the equitable allocation of
reasonable dues and fees and is not
unfairly discriminatory for the following
reasons. The Exchange operates in a
highly competitive market. The
Commission has repeatedly expressed
its preference for competition over
regulatory intervention in determining
prices, products, and services in the
securities markets. In Regulation NMS,
the Commission highlighted the
importance of market forces in
determining prices and SRO revenues
and, also, recognized that current
regulation of the market system ‘‘has
been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 21
There are currently 16 registered
options exchanges competing for order
flow. Based on publicly-available
information, and excluding index-based
options, no single exchange has more
than approximately 14–15% of the
17 See Securities Exchange Act Release Nos.
85608 (April 11, 2019), 84 FR 16073 (April 17,
2019) (SR–PEARL–2019–13); 85807 (May 8, 2019),
84 FR 21368 (May 14, 2019) (SR–PEARL–2019–15).
18 15 U.S.C. 78f(b).
19 15 U.S.C. 78f(b)(4).
20 15 U.S.C. 78f(b)(1) and (b)(5).
21 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005).
PO 00000
Frm 00141
Fmt 4703
Sfmt 4703
market share of executed volume of
multiply-listed equity and ETF options
trades as of March 25, 2021, for the
month of March 2021.22 Therefore, no
exchange possesses significant pricing
power in the execution of multiplylisted equity and ETF options order
flow. More specifically, as of March 25,
2021, the Exchange had a market share
of approximately 5.87% of executed
volume of multiply-listed equity and
ETF options for the month of March
2021.23
The Exchange believes that the evershifting market shares among the
exchanges from month to month
demonstrates that market participants
can shift order flow, or discontinue or
reduce use of certain categories of
products, in response to transaction
and/or non-transaction fee changes. For
example, on February 28, 2019, the
Exchange filed with the Commission a
proposal to increase Taker fees in
certain Tiers for options transactions in
certain Penny classes for Priority
Customers and decrease Maker rebates
in certain Tiers for options transactions
in Penny classes for Priority Customers
(which fee was to be effective March 1,
2019).24 The Exchange experienced a
decrease in total market share between
the months of February and March of
2019, after the fees were in effect.
Accordingly, the Exchange believes that
the March 1, 2019 fee change may have
contributed to the decrease in the
Exchange’s market share and, as such,
the Exchange believes competitive
forces constrain options exchange
transaction fees and market participants
can shift order flow based on fee
changes instituted by the exchanges.
The Exchange believes its proposal to
modify the volume thresholds for
standard volume criteria and certain
alternative volume criteria is reasonable,
equitably allocated and not unfairly
discriminatory because these changes
are for business and competitive
reasons. In order to attract order flow,
the Exchange initially set its volume
thresholds for standard and alternative
volume criteria at meaningful low
levels. The Exchange now believes that
it is appropriate to adjust these volume
thresholds so that they are more
reflective of the current operating
conditions and the current type and
amount of volume executed on the
Exchange. The Exchange believes that
the proposed volume thresholds will
still allow the Exchange to remain
22 See https://www.cboe.com/us/options/market_
statistics/.
23 See id.
24 See Securities Exchange Act Release No. 85304
(March 13, 2019), 84 FR 10144 (March 19, 2019)
(SR–PEARL–2019–07).
E:\FR\FM\22APN1.SGM
22APN1
Federal Register / Vol. 86, No. 76 / Thursday, April 22, 2021 / Notices
highly competitive such that the
thresholds should enable the Exchange
to continue to attract order flow and
maintain market share.
The Exchange also believes that its
proposal is not unfairly discriminatory
as all Market Makers can qualify for the
alternative volume criteria in Tiers 3
and 4 of the MIAX Pearl Market Maker
Origin by meeting the requirements that
are designed to incentivize Market
Makers to maintain quality markets. In
addition, the Exchange continues to
believe that it is not unfairly
discriminatory to offer certain rebates
pursuant to this proposal to only Market
Makers because Market Makers add
value by adding liquidity and are
subject to additional requirements and
obligations that other market
participants are not.
The Exchange believes its proposal to
decrease the Maker rebate in Tier 4 for
options transactions in Penny Classes
for Priority Customers is reasonable,
equitable and not unfairly
discriminatory because all similarly
situated market participants in the same
Origin type are subject to the same
tiered Maker rebates and Taker fees and
access to the Exchange is offered on
terms that are not unfairly
discriminatory. The Exchange believes
it is equitable and not unfairly
discriminatory to reduce the Maker
rebate to Priority Customer orders in
Penny Classes for business and
competitive reasons because the
Exchange initially set its Maker rebates
for such orders higher than certain other
options exchanges that operate
comparable maker/taker pricing models.
The Exchange now believes that it is
appropriate to further decrease the
specified Maker rebate so that it is more
in line with other exchanges,25 and will
still remain highly competitive such
that they should enable the Exchange to
continue to attract order flow and
maintain market share.
The Exchange believes its proposal to
increase the Priority Customer threshold
for alternative Maker rebates for options
transactions in all classes for
Professional Members, provided that the
Member meets certain volume criteria
(the Member and their Affiliates execute
at least 2.25% (instead of 2.00%) of
volume in the relevant month, in
Priority Customer Origin type, in all
options classes, not including Excluded
Contracts, as compared to the TCV in all
25 See Cboe BZX Exchange, Inc. Options Fee
Schedule (standard Customer Add rates for Penny
Program securities ranging from ($0.25) to ($0.53));
see also Nasdaq GEMX, LLC, Options 7, Pricing
Schedule, Section 3 (Priority Customer Maker
Rebates for Penny Symbol securities ranging from
($0.25) to ($0.53)).
VerDate Sep<11>2014
19:20 Apr 21, 2021
Jkt 253001
MIAX Pearl listed option classes), is
reasonable, equitable and not unfairly
discriminatory because all similarly
situated market participants are subject
to the same tiered rebates and fees and
access to the Exchange is offered on
terms that are not unfairly
discriminatory. The Exchange believes
that providing alternative Maker rebates
for options transactions in all classes for
Professional Members (if the Member
meets certain volume criteria relating to
Priority Customer volume), and
adjusting the threshold requirements so
that they are reflective of current
operating conditions and the current
type and amount of volume executed on
the Exchange, will encourage Members
to execute additional Priority Customer
and Professional Member volume on the
Exchange. The Exchange believes that
additional Priority Customer and
Professional Member volume executed
on the Exchange will attract further
liquidity to the Exchange, which in turn
will benefit all market participants.
The Exchange believes its proposal to
modify the volume thresholds for the
alternative volume criteria for certain
Taker fees for Professional Members is
consistent with Section 6(b)(4) of the
Act 26 because the proposed change
applies equally to all Members for their
Firm Origin with similar order flow.
The Exchange believes that the
proposed alternative threshold by which
any Member may qualify for the lower
Taker fee of $0.48 for Penny Classes for
their Firm Origin when trading against
Origins other than Priority Customer
instead of the Taker fee otherwise
applicable to such orders is fair,
equitable, and not unreasonably
discriminatory because it will encourage
Members to submit both Firm and
Priority Customer orders, which will
increase liquidity to the benefit all
market participants by providing more
trading opportunities and tighter
spreads. The alternative Taker fee is
reasonable because it will incentivize
providers of Priority Customer order
flow to send that Priority Customer
order flow to the Exchange in order to
obtain the highest volume threshold and
receive a Taker fee in a manner that
enables the Exchange to improve its
overall competitiveness and strengthen
its market quality for all market
participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
The Exchange believes its proposal
will not impose any burden on intramarket competition because the
Exchange believes that its proposal will
not place any category of Exchange
market participant at a competitive
disadvantage. The proposal to modify
the volume thresholds for standard and
alternative volume criteria is intended
to improve market quality. The
Exchange believes that its proposal will
continue to encourage additional
Priority Customer and Professional
Member volume be executed on the
Exchange, which will attract further
liquidity to the Exchange and benefit all
market participants. Accordingly, the
Exchange believes that the proposed
changes will continue to attract order
flow to the Exchange, thereby
encouraging additional volume and
liquidity to the benefit of all market
participants.
The Exchange believes its proposal
will not impose any burden on intermarket competition because 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, or rebate opportunities
available at other venues to be more
favorable. There are currently 16
registered options exchanges competing
for order flow. Based on publiclyavailable information, and excluding
index-based options, no single exchange
has more than approximately 14–15% of
the market share of executed volume of
multiply-listed equity and ETF options
trades as of March 25, 2021, for the
month of March 2021.27 Therefore, no
exchange possesses significant pricing
power in the execution of multiplylisted equity and ETF options order
flow. More specifically, as of March 25,
2021, the Exchange had a market share
of approximately 5.87% of executed
volume of multiply-listed equity and
ETF options for the month of March
2021.28 In such an environment, the
Exchange must continually adjust its
fees to remain competitive with other
options exchanges. Because competitors
are free to modify their own fees in
response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. The Exchange believes that the
proposed rule changes reflect this
27 See
26 15
PO 00000
U.S.C. 78f(b)(4).
Frm 00142
Fmt 4703
28 See
Sfmt 4703
21409
E:\FR\FM\22APN1.SGM
supra note 22.
id.
22APN1
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Federal Register / Vol. 86, No. 76 / Thursday, April 22, 2021 / Notices
competitive environment because they
modify the Exchange’s fees in a manner
that encourages market participants to
continue to provide liquidity and to
send order flow 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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act,29 and Rule
19b–4(f)(2) 30 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–
PEARL–2021–16 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–PEARL–2021–16. 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–PEARL–2021–16, and
should be submitted on or before May
13, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 2021–08310 Filed 4–21–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91601; File No. SR–
NYSECHX–2021–07)
Self-Regulatory Organizations; NYSE
Chicago, Inc.; Notice of Filing of
Proposed Rule Change To Amend the
Schedule of Wireless, Circuits, and
Non-Colocation Connectivity Services
Available at the Mahwah Data Center
April 16, 2021.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that on April 9,
2021, the NYSE Chicago, Inc. (‘‘NYSE
Chicago’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
31 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
29 15
30 17
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
19:20 Apr 21, 2021
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Frm 00143
Fmt 4703
Sfmt 4703
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 proposes to amend the
schedule of wireless, circuits, and noncolocation connectivity services
available at the Mahwah data center (the
‘‘Fee Schedule’’) to add services
available to customers in the meet me
rooms in the Mahwah data center and
procedures for the allocation of cabinets
and power to such customers. The
proposed change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, 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
self-regulatory organization 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 those 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 parts 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
Fee Schedule to add services available
to customers in the two meet me rooms
on the north and south sides of the
Mahwah data center (‘‘MMRs’’) and
procedures for the allocation of cabinets
and power to MMR customers.
The Exchange makes the current
proposal solely as a result of its
determination that the Commission’s
recent interpretations of the Act’s
definitions of the terms ‘‘exchange’’ and
‘‘facility,’’ as expressed in the Wireless
Approval Order,4 apply to the
connectivity services described herein
that are offered by entities other than
the Exchange. The Exchange disagrees
4 See Securities Exchange Act Release No. 90209
(October 15, 2020), 85 FR 67044 (October 21, 2020)
(SR–NYSE–2020–05, SR–NYSEAMER–2020–05,
SR–NYSEArca–2020–08, SR–NYSECHX–2020–02,
SR–NYSENAT–2020–03, SR–NYSE–2020–11, SR–
NYSEAMER–2020–10, SR–NYSEArca–2020–15,
SR–NYSECHX–2020–05, SR–NYSENAT–2020–08)
(‘‘Wireless Approval Order’’).
E:\FR\FM\22APN1.SGM
22APN1
]]>Agencies
[Federal Register Volume 86, Number 76 (Thursday, April 22, 2021)]
[Notices]
[Pages 21405-21410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08310]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91605; File No. SR-PEARL-2021-16]
Self-Regulatory Organizations: MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX
Pearl Fee Schedule
April 16, 2021.
Pursuant to the provisions of Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on April 8, 2021, MIAX PEARL, LLC (``MIAX Pearl''
or ``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend the MIAX Pearl Fee
Schedule (the ``Fee Schedule'') for the Exchange's options market.
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings/pearl at MIAX
Pearl's principal office, and at the Commission's Public Reference
Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to make several amendments to the tables for
the Add/Remove Tiered Rebates/Fees set forth in Section (1)(a) of the
Fee Schedule that apply to the Priority Customer \3\ Origin, MIAX Pearl
Market Maker \4\ Origin, and Non-Priority Customer, Firm, BD, and Non-
MIAX Pearl Market Maker Origin (collectively, ``Professional
Members''). As described more fully below, the Exchange proposes to:
(i) Modify the volume
[[Page 21406]]
thresholds for standard volume criteria in all Tiers (defined below)
for all Origin types; (ii) decrease the Maker (defined below) rebate in
Tier 4 for options transactions in Penny Classes (defined below) for
the Priority Customer Origin; (iii) modify the volume threshold for the
alternative volume criteria in Tiers 3 and 4 for the Market Maker
Origin; and (iv) modify the volume thresholds for the alternative
volume criteria for certain Maker rebates and Taker fees for
Professional Members.
---------------------------------------------------------------------------
\3\ ``Priority Customer'' means a person or entity that (i) is
not a broker or dealer in securities, and (ii) does not place more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial accounts(s). The number of
orders shall be counted in accordance with Interpretation and Policy
.01 of Exchange Rule 100. See the Definitions Section of the Fee
Schedule and Exchange Rule 100, including Interpretation and Policy
.01.
\4\ ``Market Maker'' means a Member registered with the Exchange
for the purpose of making markets in options contracts traded on the
Exchange and that is vested with the rights and responsibilities
specified in Chapter VI of Exchange Rules. See the Definitions
Section of the Fee Schedule.
---------------------------------------------------------------------------
Background
The Exchange currently assesses transaction rebates and fees to all
market participants which are based upon the total monthly volume
executed by the Member \5\ on MIAX Pearl in the relevant, respective
origin type (not including Excluded Contracts) \6\ (as the numerator)
expressed as a percentage of (divided by) TCV \7\ (as the denominator).
In addition, the per contract transaction rebates and fees are applied
retroactively to all eligible volume for that origin type once the
respective threshold tier (``Tier'') has been reached by the Member.
The Exchange aggregates the volume of Members and their Affiliates.\8\
Members that place resting liquidity, i.e., orders resting on the book
of the MIAX Pearl System,\9\ are paid the specified ``maker'' rebate
(each a ``Maker''), and Members that execute against resting liquidity
are assessed the specified ``taker'' fee (each a ``Taker''). For
opening transactions and ABBO \10\ uncrossing transactions, per
contract transaction rebates and fees are waived for all market
participants. Finally, Members are assessed lower transaction fees and
receive lower rebates for order executions in standard option classes
in the Penny Interval Program \11\ (``Penny Classes'') than for order
executions in standard option classes that are not in the Penny
Interval Program (``Non-Penny Classes''), where Members are assessed
higher transaction fees and receive higher rebates.
---------------------------------------------------------------------------
\5\ ``Member'' means an individual or organization that is
registered with the Exchange pursuant to Chapter II of the Exchange
Rules for purposes of trading on the Exchange as an ``Electronic
Exchange Member'' or ``Market Maker.'' Members are deemed
``members'' under the Exchange Act. See the Definitions Section of
the Fee Schedule and Exchange Rule 100.
\6\ ``Excluded Contracts'' means any contracts routed to an away
market for execution. See the Definitions Section of the Fee
Schedule.
\7\ ``TCV'' means total consolidated volume calculated as the
total national volume in those classes listed on MIAX Pearl for the
month for which the fees apply, excluding consolidated volume
executed during the period time in which the Exchange experiences an
``Exchange System Disruption'' (solely in the option classes of the
affected Matching Engine (as defined below)). The term Exchange
System Disruption, which is defined in the Definitions section of
the Fee Schedule, means an outage of a Matching Engine or collective
Matching Engines for a period of two consecutive hours or more,
during trading hours. The term Matching Engine, which is also
defined in the Definitions section of the Fee Schedule, is a part of
the MIAX Pearl electronic system that processes options orders and
trades on a symbol-by-symbol basis. Some Matching Engines will
process option classes with multiple root symbols, and other
Matching Engines may be dedicated to one single option root symbol
(for example, options on SPY may be processed by one single Matching
Engine that is dedicated only to SPY). A particular root symbol may
only be assigned to a single designated Matching Engine. A
particular root symbol may not be assigned to multiple Matching
Engines. The Exchange believes that it is reasonable and appropriate
to select two consecutive hours as the amount of time necessary to
constitute an Exchange System Disruption, as two hours equates to
approximately 1.4% of available trading time per month. The Exchange
notes that the term ``Exchange System Disruption'' and its meaning
have no applicability outside of the Fee Schedule, as it is used
solely for purposes of calculating volume for the threshold tiers in
the Fee Schedule. See the Definitions Section of the Fee Schedule.
\8\ ``Affiliate'' means (i) an affiliate of a Member of at least
75% common ownership between the firms as reflected on each firm's
Form BD, Schedule A, or (ii) the Appointed Market Maker of an
Appointed EEM (or, conversely, the Appointed EEM of an Appointed
Market Maker). An ``Appointed Market Maker'' is a MIAX Pearl Market
Maker (who does not otherwise have a corporate affiliation based
upon common ownership with an EEM) that has been appointed by an EEM
and an ``Appointed EEM'' is an EEM (who does not otherwise have a
corporate affiliation based upon common ownership with a MIAX Pearl
Market Maker) that has been appointed by a MIAX Pearl Market Maker,
pursuant to the process described in the Fee Schedule. See the
Definitions Section of the Fee Schedule.
\9\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
\10\ ``ABBO'' means the best bid(s) or offer(s) disseminated by
other Eligible Exchanges (defined in Exchange Rule 1400(g) and
calculated by the Exchange based on market information received by
the Exchange from OPRA. See the Definitions Section of the Fee
Schedule and Exchange Rule 100.
\11\ See Securities Exchange Act Release No. 88992 (June 2,
2020), 85 FR 35142 (June 8, 2020) (SR-PEARL-2020-06).
---------------------------------------------------------------------------
Modifications to Standard Volume Criteria Percentage Thresholds in all
Tiers for all Origins
The Exchange proposes to amend the Add/Remove Tiered Rebates/Fees
set forth in Section (1)(a) of the Fee Schedule to modify the volume
thresholds for standard volume criteria in all Tiers for all Origins.
In particular, for the Priority Customer Origin, the Exchange proposes
to amend the volume criteria percentage thresholds in each Tier, as
follows: (i) Tier 1 will be amended from 0.00%-0.10% to now be 0.00%-
0.15%; (ii) Tier 2 will be amended from above 0.10%-0.35% to now be
above 0.15%-0.40%; (iii) Tier 3 will be amended from above 0.35%-0.50%
to now be above 0.40%-0.85%; (iv) Tier 4 will be amended from above
0.50%-0.75% to now be above 0.85%-1.25%; (v) Tier 5 will be amended
from above 0.75%-1.25% to now be above 1.25%-2.25%; and (vi) Tier 6
will be amended from above 1.25% to now be above 2.25%.
Next, the Exchange proposes to modify the volume thresholds for
standard volume criteria in all Tiers for the MIAX Pearl Market Maker
Origin.\12\ For the MIAX Pearl Market Maker Origin, the Exchange
proposes to amend the standard volume criteria percentage thresholds in
each Tier, as follows: (i) Tier 1 will be amended from 0.00%-0.15% to
now be 0.00%-0.20%; (ii) Tier 2 will be amended from above 0.15%-0.40%
to now be above 0.20%-0.50%; (iii) Tier 3 will be amended from above
0.40%-0.65% to now be above 0.50%-0.85%; (iv) Tier 4 will be amended
from above 0.65%-1.00% to now be above 0.85%-1.25%; (v) Tier 5 will be
amended from above 1.00%-1.40% to now be above 1.25%-1.50%; and (vi)
Tier 6 will be amended from above 1.40% to now be above 1.50%.
---------------------------------------------------------------------------
\12\ The Exchange notes that it also proposes to amend the
alternative volume criteria in Tiers 3 and 4 for the Market Maker
Origin, described below. The Exchange does not propose to amend the
alternative volume criteria in Tier 2 for the Market Maker Origin at
this time.
---------------------------------------------------------------------------
Next, the Exchange proposes to modify the volume thresholds for
volume criteria in all Tiers for the Professional Members Origin. For
the Professional Members Origin, the Exchange proposes to amend the
volume criteria percentage thresholds in each Tier, as follows: (i)
Tier 1 will be amended from 0.00%-0.15% to now be 0.00%-0.20%; (ii)
Tier 2 will be amended from above 0.15%-0.40% to now be above 0.20%-
0.50%; (iii) Tier 3 will be amended from above 0.40%-0.65% to now be
above 0.50%-0.85%; (iv) Tier 4 will be amended from above 0.65%-1.00%
to now be above 0.85%-1.25%; (v) Tier 5 will be amended from above
1.00%-1.40% to now be above 1.25%-1.50%; and (vi) Tier 6 will be
amended from above 1.40% to now be above 1.50%.
The purpose of adjusting the percentage thresholds for standard
volume criteria in all Tiers for all Origins is for business and
competitive reasons. In order to attract order flow, the Exchange
initially set its volume thresholds so that they were meaningfully
lower than other options exchanges that operate comparable maker/taker
pricing models. The Exchange now believes that it is appropriate to
adjust the volume
[[Page 21407]]
thresholds so that they are more in line with other exchanges, but will
still remain highly competitive such that it should enable the Exchange
to continue to attract order flow and maintain market share.
Decrease to Priority Customer Origin Tier 4 Rebate
The Exchange proposes to amend the Maker rebate in Tier 4 for
options transactions in Penny Classes for the Priority Customer Origin.
Currently, the Exchange offers a Maker rebate of ($0.51) in Tier 4 for
options transactions in Penny Classes for the Priority Customer Origin.
The Exchange now proposes to decrease the Maker rebate in Tier 4 for
options transactions in Penny Classes for the Priority Customer Origin
from ($0.51) to ($0.49).
The purpose of adjusting the specified Maker rebate is for business
and competitive reasons. In order to attract order flow, the Exchange
initially set its Maker rebates and Taker fees so that they were
meaningfully higher/lower than other options exchanges that operate
comparable maker/taker pricing models. The Exchange now believes that
it is appropriate to further adjust this specified Maker rebate so that
it is more in line with other exchanges, but will still remain highly
competitive such that it should enable the Exchange to continue to
attract order flow and maintain market share.
Modification to Alternative Volume Criteria for Market Maker Origin
Tier 3
The Market Maker Origin set forth in Section (1)(a) of the Fee
Schedule currently provides an alternative volume criteria in Tier
3.\13\ The alternative volume criteria in Tier 3 is based upon the
total monthly volume executed in SPY options on MIAX Pearl by a MIAX
Pearl Market Maker when adding liquidity. Pursuant to this alternative
volume criteria, Market Makers qualify for: (i) Maker rebates of
($0.44) in SPY, QQQ and IWM options for their Market Maker Origin when
trading against Origins not Priority Customer, and (ii) Maker rebates
of ($0.42) in SPY, QQQ and IWM options for their Market Maker Origin
when trading against Priority Customer Origins, if the Market Maker
executes at least 1.10% in SPY options when adding liquidity. The Tier
3 alternative Volume Criteria (above 1.10% in SPY when Adding
Liquidity) is calculated based on the total monthly volume that added
liquidity executed by the Market Maker solely in SPY options on MIAX
Pearl, not including Excluded Contracts, (as the numerator) expressed
as a percentage of (divided by) SPY TCV \14\ (as the denominator). The
Exchange notes that Market Makers that achieve the standard Tier 3
volume percentage but do not qualify for the proposed alternative
Volume Criteria in that Tier, receive the Tier 3 rates in the Market
Maker Origin table in Penny Classes and Non-Penny Classes. Members
receive the highest tier based on the thresholds achieved. Other Penny
classes and Non-Penny classes receive the Tier 3 rates in the Market
Maker Origin table.
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\13\ See Securities Exchange Act Release No. 90906 (January 12,
2021), 86 FR 5296 (January 19, 2021) (SR-PEARL-2020-38).
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The Exchange now proposes to amend the Tier 3 alternative volume
criteria percentage threshold from above 1.10% to now be above 1.20% in
SPY when adding liquidity. With the proposed change, Market Makers will
qualify for: (i) Maker rebates of ($0.44) in SPY, QQQ and IWM options
for their Market Maker Origin when trading against Origins not Priority
Customer, and (ii) Maker rebates of ($0.42) in SPY, QQQ and IWM options
for their Market Maker Origin when trading against Priority Customer
Origins, if the Market Maker executes at least 1.20% in SPY options
when adding liquidity. Other Penny Classes and Non-Penny Classes
receive the Tier 3 rates in the Market Maker Origin table. The Exchange
does not propose to modify the calculation method for a Market Maker to
reach the alternative Volume Criteria in Tier 3, only the threshold
percentage. The Exchange proposes to make the corresponding changes to
the volume threshold percentages described in the explanatory paragraph
in footnote ``[lozf]'' for the alternative volume criteria for Tier 3
that is below the fee/rebate tables in Section 1)a) of the Fee
Schedule. The purpose of this proposed change is for business and
competitive reasons.
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\14\ ``SPY TCV'' means total consolidated volume in SPY
calculated as the total national volume in SPY for the month for
which the fees apply, excluding consolidated volume executed during
the period of time in which the Exchange experiences an Exchange
System Disruption (solely in SPY options). See the Definitions
Section of the Fee Schedule.
---------------------------------------------------------------------------
Alternative Volume Criteria for Market Maker Origin Tier 4
The Market Maker Origin set forth in Section 1)a) of the Fee
Schedule currently provides alternative volume criteria in Tier 4.\15\
In Tier 4 for MIAX Pearl Market Makers, the alternative volume criteria
(above 2.25% in SPY) is calculated based on the total monthly volume
executed by the Market Maker solely in SPY options on MIAX Pearl in the
relevant Origin type, not including Excluded Contracts, (as the
numerator) expressed as a percentage of (divided by) SPY TCV (as the
denominator). Pursuant to this alternative volume criteria, a Market
Maker could currently reach the Tier 4 threshold if the Market Maker's
total executed monthly volume in SPY options on MIAX Pearl is above
2.25% of total consolidated national monthly volume in SPY options.
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\15\ See Securities Exchange Act Release no. 83419 (June 12,
2018), 83 FR 28285 (June 18, 2018) (SR-PEARL-2018-13).
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The Exchange proposes to amend the threshold percentage for the
alternative volume criteria such that a Market Maker can reach the Tier
4 threshold if the Market Maker's total executed monthly volume in SPY
options on MIAX Pearl is above 2.50% of the total consolidated national
monthly volume in SPY options. The alternative volume criteria
threshold in Tier 4 for Market Makers in SPY options is also discussed
in the note beneath the transaction fee tables, which provides more
explanation on the alternative threshold. Accordingly, the Exchange
also proposes to change the threshold amount (increasing it from 2.25%
to 2.50%) in that note beneath the tables.
The Exchange notes that it does not propose to amend the volume
threshold for the alternative criteria in Tier 2 for the Market Maker
Origin (above 0.75% in SPY/QQQ/IWM) for business reasons.
The Exchange notes that it does not propose to amend the volume
threshold for the alternative criteria in Tier 2 for the Market Maker
Origin (above 0.75% in SPY/QQQ/IWM) for business reasons.
Modification to Volume Thresholds for Alternative Volume Criteria for
Certain Maker Rebates and Taker Fees for Professional Members
The Exchange also proposes to amend footnote ``[caret]'' below the
tables in the Add/Remove Tiered Rebates/Fees set forth in Section
(1)(a) of the Fee Schedule to increase the Priority Customer threshold
in which Members may qualify for alternative Maker rebates for options
transactions in all classes for Professional Members, provided that the
Member meets certain volume criteria. Currently, Members may qualify
for Maker rebates equal to the greater of: (A) ($0.40) for Penny
Classes and ($0.65) for Non-Penny Classes, or (B) the amount set forth
in the applicable Tier reached by the Member in the relevant Origin, if
the Member and their Affiliates execute at least 2.00% volume in the
relevant month, in Priority Customer Origin type, in all options
classes, not including Excluded Contracts, as compared to the TCV in
all MIAX Pearl listed option classes.
[[Page 21408]]
The Exchange proposes to increase the Priority Customer threshold
percentage amount in footnote ``[caret]'' from at least 2.00% to at
least 2.25% of volume in the relevant month, in Priority Customer
Origin type, in all options classes, not including Excluded Contracts,
as compared to the TCV in all MIAX Pearl listed option classes, in
order to qualify for the alternative Maker rebates. For purposes of
qualifying for such rates, the Exchange will continue to aggregate the
Priority Customer volume transacted by Members and their Affiliates. As
the amount and type of volume that is executed on the Exchange has
shifted since it first established the alternative Maker rebates for
options transactions in all classes for Professional Members, provided
that the Member meets certain volume criteria,\16\ the Exchange has
determined to level-set this threshold amount so that it is more
reflective of the current operating conditions and the current type and
amount of volume executed on the Exchange.
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\16\ See Securities Exchange Act Release Nos. 83419 (June 12,
2018), 83 FR 28285 (June 18, 2018) (SR-PEARL-2018-13); 85608 (April
11, 2019), 84 FR 16073 (April 17, 2019) (SR-PEARL-2019-13).
---------------------------------------------------------------------------
The Exchange also proposes to amend footnote ``[loz]'' below the
tables in the Add/Remove Tiered Rebates/Fees set forth in Section
(1)(a) of the Fee Schedule to increase the Priority Customer threshold
in which Members may qualify for alternative Taker fees for options
transactions in Penny Classes for Professional Members, provided that
the Member meets certain volume criteria. Currently, Members may
qualify for Taker fees of $0.48 for Penny Classes for their Firm Origin
when trading against Origins not Priority Customer if the Member and
their Affiliates execute at least 2.00% of TCV in the relevant month in
the Priority Customer Origin type, in all options classes, not
including Excluded Contracts, as compared to TCV in all MIAX Pearl
listed option classes.
The Exchange proposes to increase the Priority Customer threshold
percentage amount in footnote ``[loz]'' from at least 2.00% to at least
2.25% of volume in the relevant month, in Priority Customer Origin
type, in all options classes, not including Excluded Contracts, as
compared to the TCV in all MIAX Pearl listed option classes, in order
to qualify for the alternative Taker fees. For purposes of qualifying
for such rates, the Exchange will continue to aggregate the Priority
Customer volume transacted by Members and their Affiliates. As the
amount and type of volume that is executed on the Exchange has shifted
since it first established the alternative Taker fees for options
transactions in all classes for Professional Members, provided that the
Member meets certain volume criteria,\17\ the Exchange has determined
to level-set this threshold amount so that it is more reflective of the
current operating conditions and the current type and amount of volume
executed on the Exchange.
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\17\ See Securities Exchange Act Release Nos. 85608 (April 11,
2019), 84 FR 16073 (April 17, 2019) (SR-PEARL-2019-13); 85807 (May
8, 2019), 84 FR 21368 (May 14, 2019) (SR-PEARL-2019-15).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \18\ in general, and
furthers the objectives of Section 6(b)(4) of the Act,\19\ 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,\20\ 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.
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\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(4).
\20\ 15 U.S.C. 78f(b)(1) and (b)(5).
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The Exchange believes its proposal provides for the equitable
allocation of reasonable dues and fees and is not unfairly
discriminatory for the following reasons. The Exchange operates in a
highly competitive market. The Commission has repeatedly expressed its
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \21\ There are currently
16 registered options exchanges competing for order flow. Based on
publicly-available information, and excluding index-based options, no
single exchange has more than approximately 14-15% of the market share
of executed volume of multiply-listed equity and ETF options trades as
of March 25, 2021, for the month of March 2021.\22\ Therefore, no
exchange possesses significant pricing power in the execution of
multiply-listed equity and ETF options order flow. More specifically,
as of March 25, 2021, the Exchange had a market share of approximately
5.87% of executed volume of multiply-listed equity and ETF options for
the month of March 2021.\23\
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\21\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005).
\22\ See https://www.cboe.com/us/options/market_statistics/.
\23\ See id.
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The Exchange believes that the ever-shifting market shares among
the exchanges from month to month demonstrates that market participants
can shift order flow, or discontinue or reduce use of certain
categories of products, in response to transaction and/or non-
transaction fee changes. For example, on February 28, 2019, the
Exchange filed with the Commission a proposal to increase Taker fees in
certain Tiers for options transactions in certain Penny classes for
Priority Customers and decrease Maker rebates in certain Tiers for
options transactions in Penny classes for Priority Customers (which fee
was to be effective March 1, 2019).\24\ The Exchange experienced a
decrease in total market share between the months of February and March
of 2019, after the fees were in effect. Accordingly, the Exchange
believes that the March 1, 2019 fee change may have contributed to the
decrease in the Exchange's market share and, as such, the Exchange
believes competitive forces constrain options exchange transaction fees
and market participants can shift order flow based on fee changes
instituted by the exchanges.
---------------------------------------------------------------------------
\24\ See Securities Exchange Act Release No. 85304 (March 13,
2019), 84 FR 10144 (March 19, 2019) (SR-PEARL-2019-07).
---------------------------------------------------------------------------
The Exchange believes its proposal to modify the volume thresholds
for standard volume criteria and certain alternative volume criteria is
reasonable, equitably allocated and not unfairly discriminatory because
these changes are for business and competitive reasons. In order to
attract order flow, the Exchange initially set its volume thresholds
for standard and alternative volume criteria at meaningful low levels.
The Exchange now believes that it is appropriate to adjust these volume
thresholds so that they are more reflective of the current operating
conditions and the current type and amount of volume executed on the
Exchange. The Exchange believes that the proposed volume thresholds
will still allow the Exchange to remain
[[Page 21409]]
highly competitive such that the thresholds should enable the Exchange
to continue to attract order flow and maintain market share.
The Exchange also believes that its proposal is not unfairly
discriminatory as all Market Makers can qualify for the alternative
volume criteria in Tiers 3 and 4 of the MIAX Pearl Market Maker Origin
by meeting the requirements that are designed to incentivize Market
Makers to maintain quality markets. In addition, the Exchange continues
to believe that it is not unfairly discriminatory to offer certain
rebates pursuant to this proposal to only Market Makers because Market
Makers add value by adding liquidity and are subject to additional
requirements and obligations that other market participants are not.
The Exchange believes its proposal to decrease the Maker rebate in
Tier 4 for options transactions in Penny Classes for Priority Customers
is reasonable, equitable and not unfairly discriminatory because all
similarly situated market participants in the same Origin type are
subject to the same tiered Maker rebates and Taker fees and access to
the Exchange is offered on terms that are not unfairly discriminatory.
The Exchange believes it is equitable and not unfairly discriminatory
to reduce the Maker rebate to Priority Customer orders in Penny Classes
for business and competitive reasons because the Exchange initially set
its Maker rebates for such orders higher than certain other options
exchanges that operate comparable maker/taker pricing models. The
Exchange now believes that it is appropriate to further decrease the
specified Maker rebate so that it is more in line with other
exchanges,\25\ and will still remain highly competitive such that they
should enable the Exchange to continue to attract order flow and
maintain market share.
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\25\ See Cboe BZX Exchange, Inc. Options Fee Schedule (standard
Customer Add rates for Penny Program securities ranging from ($0.25)
to ($0.53)); see also Nasdaq GEMX, LLC, Options 7, Pricing Schedule,
Section 3 (Priority Customer Maker Rebates for Penny Symbol
securities ranging from ($0.25) to ($0.53)).
---------------------------------------------------------------------------
The Exchange believes its proposal to increase the Priority
Customer threshold for alternative Maker rebates for options
transactions in all classes for Professional Members, provided that the
Member meets certain volume criteria (the Member and their Affiliates
execute at least 2.25% (instead of 2.00%) of volume in the relevant
month, in Priority Customer Origin type, in all options classes, not
including Excluded Contracts, as compared to the TCV in all MIAX Pearl
listed option classes), is reasonable, equitable and not unfairly
discriminatory because all similarly situated market participants are
subject to the same tiered rebates and fees and access to the Exchange
is offered on terms that are not unfairly discriminatory. The Exchange
believes that providing alternative Maker rebates for options
transactions in all classes for Professional Members (if the Member
meets certain volume criteria relating to Priority Customer volume),
and adjusting the threshold requirements so that they are reflective of
current operating conditions and the current type and amount of volume
executed on the Exchange, will encourage Members to execute additional
Priority Customer and Professional Member volume on the Exchange. The
Exchange believes that additional Priority Customer and Professional
Member volume executed on the Exchange will attract further liquidity
to the Exchange, which in turn will benefit all market participants.
The Exchange believes its proposal to modify the volume thresholds
for the alternative volume criteria for certain Taker fees for
Professional Members is consistent with Section 6(b)(4) of the Act \26\
because the proposed change applies equally to all Members for their
Firm Origin with similar order flow. The Exchange believes that the
proposed alternative threshold by which any Member may qualify for the
lower Taker fee of $0.48 for Penny Classes for their Firm Origin when
trading against Origins other than Priority Customer instead of the
Taker fee otherwise applicable to such orders is fair, equitable, and
not unreasonably discriminatory because it will encourage Members to
submit both Firm and Priority Customer orders, which will increase
liquidity to the benefit all market participants by providing more
trading opportunities and tighter spreads. The alternative Taker fee is
reasonable because it will incentivize providers of Priority Customer
order flow to send that Priority Customer order flow to the Exchange in
order to obtain the highest volume threshold and receive a Taker fee in
a manner that enables the Exchange to improve its overall
competitiveness and strengthen its market quality for all market
participants.
---------------------------------------------------------------------------
\26\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange believes its proposal will not impose any burden on
intra-market competition because the Exchange believes that its
proposal will not place any category of Exchange market participant at
a competitive disadvantage. The proposal to modify the volume
thresholds for standard and alternative volume criteria is intended to
improve market quality. The Exchange believes that its proposal will
continue to encourage additional Priority Customer and Professional
Member volume be executed on the Exchange, which will attract further
liquidity to the Exchange and benefit all market participants.
Accordingly, the Exchange believes that the proposed changes will
continue to attract order flow to the Exchange, thereby encouraging
additional volume and liquidity to the benefit of all market
participants.
The Exchange believes its proposal will not impose any burden on
inter-market competition because 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, or rebate opportunities available at other venues to be
more favorable. There are currently 16 registered options exchanges
competing for order flow. Based on publicly-available information, and
excluding index-based options, no single exchange has more than
approximately 14-15% of the market share of executed volume of
multiply-listed equity and ETF options trades as of March 25, 2021, for
the month of March 2021.\27\ Therefore, no exchange possesses
significant pricing power in the execution of multiply-listed equity
and ETF options order flow. More specifically, as of March 25, 2021,
the Exchange had a market share of approximately 5.87% of executed
volume of multiply-listed equity and ETF options for the month of March
2021.\28\ In such an environment, the Exchange must continually adjust
its fees to remain competitive with other options exchanges. Because
competitors are free to modify their own fees in response, and because
market participants may readily adjust their order routing practices,
the Exchange believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited. The
Exchange believes that the proposed rule changes reflect this
[[Page 21410]]
competitive environment because they modify the Exchange's fees in a
manner that encourages market participants to continue to provide
liquidity and to send order flow to the Exchange.
---------------------------------------------------------------------------
\27\ See supra note 22.
\28\ See id.
---------------------------------------------------------------------------
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,\29\ and Rule 19b-4(f)(2) \30\ 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.
---------------------------------------------------------------------------
\29\ 15 U.S.C. 78s(b)(3)(A)(ii).
\30\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, 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-PEARL-2021-16 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-PEARL-2021-16. 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-PEARL-2021-16, and should be submitted
on or before May 13, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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\31\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 2021-08310 Filed 4-21-21; 8:45 am]
BILLING CODE 8011-01-P
