Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees for the cToM Market Data Product, 37393-37397 [2021-15031]
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Federal Register / Vol. 86, No. 133 / Thursday, July 15, 2021 / Notices
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instrument may be included in a
Creation Basket with the expectation
that the Fund will deliver it in-kind
during a redemption transaction.
7. The Funds will use the requested
basket flexibility only in circumstances
under which Applicants believe there
will be no harm to the Funds or their
shareholders, and in order to benefit the
Funds and their shareholders by
reducing costs, increasing efficiency and
improving trading.
8. Pursuant to condition A.10 herein,
each Fund will adopt and implement
written policies and procedures
regarding the construction of its
Creation Baskets in accordance with
rule 6c–11 under the Act. For purposes
of the requirement to comply with the
policies and procedures provision in
rule 6c–11, only Creation Baskets that
differ from a Fund’s Tracking Basket
will be treated as a ‘‘custom basket’’
under rule 6c–11(c)(3).
9. Furthermore, pursuant to condition
A.9 herein, each Fund will comply with
the recordkeeping requirements of rule
6c–11.10 For purposes of the
requirement to comply with the
recordkeeping provision in rule 6c–11,
only Creation Baskets different from a
Fund’s Tracking Basket will be treated
as a ‘‘custom basket’’ under rule 6c–
11(d)(2)(ii).
B. Considerations Relating to the
Requested Relief
9. Applicants represent that the
ability to utilize a Creation Basket that
includes instruments that are not
included, or are included with different
weightings, in a Fund’s Tracking Basket,
or are included in different weightings,
does not raise any new policy concerns
about reverse engineering of a Fund’s
portfolio, self-dealing or overreaching,
or selective disclosure beyond those
concerns addressed in connection with
the Prior Order.
10. Reverse Engineering. Applicants
acknowledge that, by using a Creation
Basket that includes instruments that
are not included in a Fund’s Tracking
Basket, or are included in different
percentages, and by publishing such
Creation Basket on its website, the Fund
would provide market participants with
additional information about which
instruments it adds or removes from the
Fund’s actual portfolio. However,
Applicants represent that they will
operate the Funds in a manner designed
to minimize the risk of reverse
engineering and, for the reasons set
10 Pursuant to condition A.9, each Fund will also
maintain and preserve a copy of the Tracking
Basket published on the Fund’s website for each
Business Day and a copy of each Creation Basket
made available.
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forth in the application, believe
successful front-running or free-riding is
highly unlikely.
11. Self-Dealing or Overreaching.
Applicants state that APs and other
market participants will not have the
ability to disadvantage the Funds by
manipulating or influencing the
composition of Creation Baskets,
including those that differ from the
Tracking Basket. Like the basket and
custom basket policies and procedures
required of ETFs by rule 6c–11, the
Funds will adopt and implement
written policies and procedures that
govern the construction of Creation
Baskets and the process that will be
used for the acceptance of Creation
Baskets to safeguard the best interests of
the Funds and their shareholders.11
12. Selective Disclosure. The Funds
and each person acting on behalf of the
Funds will continue to be required to
comply with Regulation Fair Disclosure
as if it applied to them (except that the
exemptions provided in rule
100(b)(2)(iii) therein shall not apply).
Applicants believe that the new
Creation Basket flexibility being sought
by the Applicants does not raise any
new concerns about selective disclosure
of non-public material information.
First, a Fund’s use of, or conversations
with APs about, Creation Baskets that
would result in such disclosure would
effectively be limited by the Funds’
obligation to comply with Regulation
Fair Disclosure. Second, as noted above,
each Business Day, before the open of
trading on the Exchange where a Fund
is listed, the Fund will publish on its
website the composition of any basket
accepted by the Fund on the previous
Business Day that differed from such
Business Day’s Tracking Basket other
than with respect to cash.
III. Requested Exemptive Relief
For the reasons stated above,
Applicants believe that the Prior Order,
as amended, continues to meet the
relevant standards for relief pursuant to
section 6(c) of the Act for an exemption
from sections 2(a)(32), 5(a)(1), 22(d), and
22(e) of the Act and rule 22c–1 under
the Act, and under sections 6(c) and
17(b) of the Act for an exemption from
sections 17(a)(1) and 17(a)(2) of the Act,
and under section 12(d)(1)(J) of the Act
for an exemption from sections
12(d)(1)(A) and 12(d)(1)(B) of the Act.12
11 See Exchange-Traded Funds, Investment
Company Act Release No. 33646 (Sept. 25, 2019)
(‘‘ETF Adopting Release’’), at 80–94 (discussion of
rule 6c–11 requirement for ETF policies and
procedures concerning basket construction and
acceptance and heightened policies and procedures
for custom baskets).
12 See supra note 4.
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37393
IV. Applicants’ Conditions
Applicants agree that the Amended
Order granting the requested relief will
be subject to all of the conditions in the
Prior Order, except that condition A.9 of
the Prior Order is deleted in its entirety
and replaced with the conditions A.9–
A.10 as follows:
9. Each Fund will comply with the
recordkeeping requirements of rule 6c–
11 under the Act, as amended, except
that for purposes of this condition, only
Creation Baskets different from the
Fund’s Tracking Basket will be treated
as a ‘‘custom basket’’ under rule 6c–
11(d)(2)(ii). In addition, each Fund will
maintain and preserve, for a period of
not less than five years, in an easily
accessible place, (i) a copy of the
Tracking Basket published on the
Fund’s website for each Business Day;
and (ii) a copy of each Creation Basket
made available.
10. Each Fund will adopt and
implement written policies and
procedures that govern the construction
of Creation Baskets, as required under
rule 6c–11(c)(3) under the Act, as
amended, except that for purposes of
this condition, only Creation Baskets
different from the Fund’s Tracking
Basket will be treated as a ‘‘Custom
Basket’’. The Fund’s basket policies and
procedures will be covered by the
Fund’s compliance program and other
requirements under rule 38a–1 under
the Act, as amended.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–15015 Filed 7–14–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92359; File No. SR–MIAX–
2021–28]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Establish Fees for the
cToM Market Data Product
July 9, 2021.
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 30,
2021, Miami International Securities
Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’)
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 86, No. 133 / Thursday, July 15, 2021 / Notices
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend the MIAX Options Fee Schedule
(the ‘‘Fee Schedule’’) to establish fees
for the market data product known as
MIAX Complex Top of Market
(‘‘cToM’’).
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
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
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1. Purpose
The Exchange proposes to amend
Section 6(a) of the Fee Schedule to
establish fees for the cToM market data
product.
The Exchange previously adopted
rules governing the trading of Complex
Orders 3 on the MIAX System 4 in 2016.5
At that time, the Exchange also adopted
the market data product cToM and
expressly waived fees for cToM to
provide an incentive to prospective
3 See Exchange Rule 518(a)(5) for the definition of
Complex Orders.
4 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
5 See Securities Exchange Act Release No. 79072
(October 7, 2016), 81 FR 71131 (October 14, 2016)
(SR–MIAX–2016–26) (Order Approving a Proposed
Rule Change to Adopt New Rules to Govern the
Trading of Complex Orders).
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market participants to subscribe to that
market data feed.6 The Exchange has not
charged fees to cToM subscribers in the
nearly five years since it was first
available for subscription.
In summary, cToM provides
subscribers with the same information
as the MIAX Top of Market (‘‘ToM’’)
data product as it relates to the Strategy
Book,7 i.e., the Exchange’s best bid and
offer for a complex strategy, with
aggregate size, based on displayable
order and quoting interest in the
complex strategy on the Exchange.
However, cToM provides subscribers
with the following additional
information that is not included in ToM:
(i) The identification of the complex
strategies currently trading on the
Exchange; (ii) complex strategy last sale
information; and (iii) the status of
securities underlying the complex
strategy (e.g., halted, open, or resumed).
cToM is a distinct market data product
from ToM. ToM subscribers are not
required to subscribe to cToM, and
cToM subscribers are not required to
subscribe to ToM.8
The Exchange now proposes to amend
Section 6(a) of the Fee Schedule to
charge monthly fees to Distributors 9 of
cToM. Specifically, the Exchange
proposes to assess Internal Distributors
$1,250 per month and External
Distributors $1,750 per month for the
cToM data feed.10 The Exchange notes
that the proposed monthly cToM fees
for Internal and External Distributor are
the same prices that the Exchange
charges for its ToM data product, and
are similar to other options exchanges’
data feed prices for their comparable
complex order data feed products.11
6 See Securities Exchange Act Release No. 79146
(October 24, 2016), 81 FR 75171 (October 28, 2016)
(SR–MIAX–2016–36) (providing a complete
description of the cToM data feed).
7 The ‘‘Strategy Book’’ is the Exchange’s
electronic book of complex orders and complex
quotes. See Exchange Rule 518(a)(17).
8 See supra note 6.
9 A ‘‘Distributor’’ of MIAX data is any entity that
receives a feed or file of data either directly from
MIAX or indirectly through another entity and then
distributes it either internally (within that entity) or
externally (outside that entity). All Distributors are
required to execute a MIAX Distributor Agreement.
See Section 6(a) of the Fee Schedule.
10 The Exchange also proposes to make a minor
related change to remove ‘‘(as applicable)’’ from the
explanatory paragraph in Section 6(a) as it will not
change [sic] fees for both the ToM and cToM data
feeds.
11 See NYSE American Options Proprietary
Market Data Fees, American Options Complex Fees
($1,500 per month Access Fee and $1,000 per
month Redistribution Fee), at https://
www.nyse.com/publicdocs/nyse/data/NYSE_
American_Options_Market_Data_Fee_
Schedule.pdf; see also NYSE Arca Options
Proprietary Market Data Fees, Arca Options
Complex Fees ($1,500 per month Access Fee and
$1,000 per month Redistribution Fee), at https://
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Like it does today for ToM, MIAX
proposes to assess cToM fees on Internal
and External Distributors in each month
the Distributor is credentialed to use
cToM in the production environment.
Also, like the Exchange does today for
ToM, market data fees for cToM will be
reduced for new Distributors for the first
month during which they subscribe to
cToM, based on the number of trading
days that have been held during the
month prior to the date on which that
subscriber has been credentialed to use
cToM in the production environment.
Such new Distributors will be assessed
a pro-rata percentage of the fees in the
table in Section 6(a) of the Fee
Schedule, which is the percentage of the
number of trading days remaining in the
affected calendar month as of the date
on which they have been credentialed to
use cToM in the production
environment, divided by the total
number of trading days in the affected
calendar month.
Implementation Date
The proposed fee changes will
become effective on July 1, 2021.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 12
in general, and furthers the objectives of
Section 6(b)(4) of the Act 13 in
particular, in that it is an equitable
allocation of reasonable dues, fees and
other charges among its members and
issuers and other persons using its
facilities. The Exchange also believes
the proposal furthers the objectives of
Section 6(b)(5) of the Act in that it is
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general to protect investors and the
public interest and is not designed to
permit unfair discrimination between
customers, issuers, brokers and dealers.
In adopting Regulation NMS, the
Commission granted self-regulatory
organizations (‘‘SROs’’) and brokerdealers increased authority and
flexibility to offer new and unique
market data to the public. It was
believed that this authority would
expand the amount of data available to
www.nyse.com/publicdocs/nyse/data/NYSE_Arca_
Options_Proprietary_Data_Fee_Schedule.pdf;
Nasdaq PHLX LLC Price List—U.S. Derivatives
Data, PHLX Orders Fees (Internal Distributor fee of
$3,000 per month and External Distributor fee of
$3,500 per month), at https://
www.nasdaqtrader.com/
Trader.aspx?id=DPPriceListOptions#PHLX.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(4) and (5).
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Federal Register / Vol. 86, No. 133 / Thursday, July 15, 2021 / Notices
consumers, and also spur innovation
and competition for the provision of
market data. Particularly, cToM further
broadens the availability of U.S. option
market data to investors consistent with
the principles of Regulation NMS. The
data product also promotes increased
transparency through the dissemination
of cToM. Particularly, cToM provides
subscribers with the same information
as ToM, but includes the following
additional information: (i) The
identification of the complex strategies
currently trading on the Exchange; (ii)
complex strategy last sale information;
and (iii) the status of securities
underlying the complex strategy (e.g.,
halted, open, or resumed). The
Exchange believes cToM provides a
valuable tool that subscribers can use to
gain substantial insight into the trading
activity in Complex Orders, but also
emphasizes such data is not necessary
for trading. Moreover, other exchanges
offer similar data products.14
The Exchange operates in a highly
competitive environment. Indeed, there
are currently 16 registered options
exchanges that trade options. Based on
publicly available information, no single
options exchange has more than 15% of
the market share and currently the
Exchange represents only approximately
6.75% of the market share.15 The
Commission has repeatedly expressed
its preference for competition over
regulatory intervention in determining
prices, products, and services in the
securities markets. Particularly, 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.’’ 16
Making similar data products available
to market participants fosters
competition in the marketplace, and
constrains the ability of exchanges to
charge supra-competitive fees. In the
event that a market participant views
one exchange’s data product as more or
less attractive than the competition, that
market participant can and may switch
between similar products. The proposed
fees are a result of the competitive
environment, as the Exchange seeks to
adopt fees to attract purchasers of cToM.
14 See
supra note 11.
MIAX’s ‘‘The Market at a Glance’’,
available at https://www.miaxoptions.com/ (last
visited June 29, 2021).
16 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
15 See
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No market participant is required by
any rule or regulation to utilize the
Exchange’s Complex Order functionality
or subscribe to the cToM data feed.
Further, unlike orders on the Exchange’s
Simple Order Book, Complex Orders are
not protected and will never trade
through Priority Customer 17 orders,
thus protecting the priority that is
established in the Simple Order Book.18
Additionally, unlike the continuous
quoting requirements of Market Makers
in the simple order market, there are no
continuous quoting requirements
respecting Complex Orders. It is a
business decision whether market
participants utilize Complex Order
strategies on the Exchange and whether
to purchase cToM data to help effect
those strategies.
The Exchange believes the proposed
fees are reasonable as the proposed fees
are both modest and similar to, or even
lower than, the fees assessed by other
exchanges that provide similar data
products.19 Indeed, proposing fees that
are excessively higher than established
fees for similar data products would
simply serve to reduce demand for the
Exchange’s data product, which as
noted, is entirely optional. Like the
Exchange’s cToM data product, other
exchanges offer similar data products
and complex order functionality. As
such, if a market participant views
another exchange’s complex order
functionality and related data feed(s) as
more attractive than what is offered by
the Exchange, then such market
participant can merely choose not to
utilize the Exchange’s Complex Order
functionality or purchase cToM.
Instead, that market participant can
utilize similar complex functionality
elsewhere and purchase another
exchange’s complex data product,
which likely offers similar data points,
albeit based on that other market’s
complex order trading activity.
Selling market data, such as cToM, is
also a means by which exchanges
compete to attract business. If the
market deems the proposed fees to be
unfair or inequitable, firms can
diminish or discontinue their use of the
data and/or avail themselves of similar
products offered by other exchanges.20
17 The term ‘‘Priority Customer’’ means a person
or entity that (i) is not a broker or dealer in
securities and (ii) does not place more than 390
orders in listed options per day on average during
a calendar month for its own beneficial accounts(s).
The term ‘‘Priority Customer Order’’ means an order
for the account of a Priority Customer. See
Exchange Rule 100.
18 The ‘‘Simple Order Book’’ is the Exchange’s
regular electronic book of orders and quotes. See
Exchange Rule 100. See supra note 5.
19 See supra note 11.
20 See id.
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37395
The Exchange therefore believes that the
proposed fees for cToM reflect the
competitive environment and would be
properly assessed on Member or nonMember users. The Exchange also
believes the proposed fees are equitable
and not unfairly discriminatory as the
fees would apply equally to all users
who choose to purchase such data. The
Exchange’s proposed fees would not
differentiate between subscribers that
purchase cToM and are set at a modest
level that would allow any interested
Member or non-Member to purchase
such data based on their business needs.
The Exchange also believes the
proposed cToM fees are reasonable and
not unfairly discriminatory because
since the Exchange initially established
the cToM data product in 2016, all
Exchange Members have had the ability
to receive the Exchange’s cToM data
free of charge for the past five years.21
The Exchange believes that it is
reasonable, equitable and not unfairly
discriminatory to assess Internal
Distributors fees that are less than the
fees assessed for External Distributors
for subscriptions to the cToM data feed
because Internal Distributors have
limited, restricted usage rights to the
market data, as compared to External
Distributors, which have more
expansive usage rights. All Members
and non-Members that determine to
receive any market data feed of the
Exchange (or its affiliates, MIAX
PEARL, LLC and MIAX Emerald, LLC),
must first execute, among other things,
the MIAX Exchange Group Exchange
Data Agreement (the ‘‘Exchange Data
Agreement’’).22 Pursuant to the
Exchange Data Agreement, Internal
Distributors are restricted to the
‘‘internal use’’ of any market data they
receive. This means that Internal
Distributors may only distribute the
Exchange’s market data to the
recipient’s officers and employees and
its affiliates.23 External Distributors may
distribute the Exchange’s market data to
persons who are not officers, employees
or affiliates of the External Distributor,24
and may charge their own fees for the
distribution of such market data.
Accordingly, the Exchange believes it is
fair, reasonable and not unfairly
discriminatory to assess External
Distributors a higher fee for the
Exchange’s market data products as
External Distributors have greater usage
rights to commercialize such market
21 See
supra note 6.
Exchange Data Agreement, available at
https://miaxweb2.pairsite.com/sites/default/files/
page-files/MIAX_Exchange_Group_Data_
Agreement_09032020.pdf.
23 See id.
24 See id.
22 See
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data. The Exchange also utilizes more
resources to support External
Distributors versus Internal Distributors,
as External Distributors have reporting
and monitoring obligations that Internal
Distributors do not have, thus requiring
additional time and effort of Exchange
staff. The Exchange believes the
proposed cToM fees are equitable and
not unfairly discriminatory because the
fee level results in a reasonable and
equitable allocation of fees amongst
subscribers for similar services,
depending on whether the subscribers is
an Internal or External Distributor.
Moreover, the decision as to whether or
not to purchase market data is entirely
optional to all market participants.
Potential purchasers are not required to
purchase the market data, and the
Exchange is not required to make the
market data available. Purchasers may
request the data at any time or may
decline to purchase such data. The
allocation of fees among users is fair and
reasonable because, if market
participants deem the proposed fees to
be unfair or inequitable, firms can
discontinue their use of the cToM data.
Further, the Exchange no longer
believes it is necessary to provide cToM
data for free to attract market
participants since the Exchange’s
Strategy Book is now established and
the Exchange no longer needs to rely on
such waivers to attract market
participants to its Complex Order
market or cToM subscribers. The
Exchange believes that the proposal is
equitable and not unfairly
discriminatory because the proposed
cToM fees will apply to all market
participants of the Exchange on a
uniform basis. The Exchange also notes
that the proposed monthly cToM fees
for Internal and External Distributors are
the same prices that the Exchange
charges for its ToM data product, and
are generally lower than other options
exchanges’ data feed prices for their
comparable data feed products.25
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Rather, the
Exchange believes that the proposal will
promote competition by permitting the
Exchange to sell a data product similar
to those offered by other competitor
options exchanges.26 The Exchange
made Complex Order functionality and
cToM available in order to keep pace
25 See
with changes in the U.S. options
industry and evolving customer needs,
and believes the data product will
continue to contribute to robust
competition among national securities
exchanges. Other U.S. options
exchanges offer complex order
functionality and market data products
that are substantially similar to that
offered by the Exchange. As a result, the
Exchange believes this proposed rule
change permits fair competition among
national securities exchanges.
Furthermore, the Exchange operates
in a highly competitive environment,
and its ability to price cToM is
constrained by competition among
exchanges that offer similar data
products and complex order
functionality to their customers. As
discussed, there are currently a number
of similar products available to market
participants and investors. Other U.S.
options exchanges offer market data
products that are substantially similar to
cToM, which the Exchange must
consider in its pricing discipline in
order to compete for the market data.27
For example, proposing fees that are
excessively higher than established fees
for similar data products would simply
serve to reduce demand for the
Exchange’s data product, which as
discussed, market participants are under
no obligation to utilize. In this
competitive environment, potential
purchasers are free to choose which, if
any, similar product to purchase to
satisfy their need for market
information. As a result, the Exchange
believes this proposed rule change
permits fair competition among national
securities exchanges.
The Exchange also does not believe
the proposed fees would cause any
unnecessary or in appropriate [sic]
burden on intermarket competition as
other exchanges are free to introduce
their own comparable data product and
lower their prices to better compete
with the Exchange’s offering. The
Exchange does not believe the proposed
rule change would cause any
unnecessary or inappropriate burden on
intramarket competition. Particularly,
the proposed product and fees apply
uniformly to any purchaser, in that it
does not differentiate between
subscribers that purchase cToM. The
proposed fees are set at a modest level
that would allow any interested Member
or non-Member to purchase such data
based on their business needs.
supra note 11.
27 Id.
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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,28 and Rule
19b–4(f)(2) 29 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–2021–28 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–2021–28. 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
28 15
26 Id.
VerDate Sep<11>2014
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.
Jkt 253001
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Frm 00123
29 17
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E:\FR\FM\15JYN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
15JYN1
Federal Register / Vol. 86, No. 133 / Thursday, July 15, 2021 / Notices
37397
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–2021–28, and
should be submitted on or before
August 5, 2021.
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of Mississippi,
dated 5/04/2021, is hereby amended to
include the counties listed below.
Please contact the SBA disaster
customer service center by email at
disastercustomerservice@sba.gov or by
phone at 1–800–659–2955 to request an
application. Applications for physical
damages may be filed until 09/07/2021
and applications for economic injury
may be file until 04/07/2022.
Primary Counties: Clay, Holmes,
Quitman, Webster, Wilkinson.
All other information in the original
declaration remains unchanged.
the instructions on providing
comments.
• Fax: 202–493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W 12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590.
• Hand Delivery: Deliver to mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
Interested persons may inspect the
request and supporting documents by
contacting the FAA at the address listed
under FOR FURTHER INFORMATION
CONTACT.
FOR FURTHER INFORMATION CONTACT: Mr.
Jorge E. Panteli, Compliance and Land
Use Specialist, Federal Aviation
Administration New England Region
Airports Division, 1200 District Avenue,
Burlington, Massachusetts 01803.
Telephone: 781–238–7618.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
J. Matthew DeLesDernier,
Assistant Secretary.
(Catalog of Federal Domestic Assistance
Number 59008)
Issued in Burlington, Massachusetts on
July 12, 2021.
Julie Seltsam-Wilps,
Deputy Director, ANE–600.
[FR Doc. 2021–15031 Filed 7–14–21; 8:45 am]
James Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2021–15061 Filed 7–14–21; 8:45 am]
BILLING CODE 8011–01–P
Authority: 49 U.S.C. 47107(h)(2).
[FR Doc. 2021–15064 Filed 7–14–21; 8:45 am]
BILLING CODE 4910–13–P
BILLING CODE 8026–03–P
DEPARTMENT OF TRANSPORTATION
SMALL BUSINESS ADMINISTRATION
Federal Motor Carrier Safety
Administration
Federal Aviation Administration
Presidential Declaration Amendment of
a Major Disaster for Public Assistance
Only for the State of Mississippi
Notice of Intent To Rule on Request for
Disposal of 14.1 Acres of Land at
Auburn-Lewiston Airport, Auburn, ME
[Docket No. FMCSA–2008–0355; FMCSA–
2011–0089; FMCSA–2014–0381; FMCSA–
2014–0382; FMCSA–2017–0253; FMCSA–
2018–0057; FMCSA–2019–0028; FMCSA–
2019–0029]
Federal Aviation
Administration (FAA), Transportation
(DOT).
ACTION: Request for public comments.
Qualification of Drivers; Exemption
Applications; Epilepsy and Seizure
Disorders
AGENCY:
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Mississippi (FEMA–4598–
DR), dated 5/04/2021.
Incident: Severe Winter Storms.
Incident Period: 02/11/2021 through 02/
19/2021.
DATES: Issued on 07/07/2021.
Physical Loan Application Deadline
Date: Filing Period for counties listed
below ends on 09/07/2021.
Economic Injury (EIDL) Loan
Application Deadline Date: Filing
Period for counties listed below ends on
04/07/2022.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
SUMMARY:
khammond on DSKJM1Z7X2PROD with NOTICES
DEPARTMENT OF TRANSPORTATION
[Disaster Declaration #16955 and #16956;
Mississippi Disaster Number MS–00135]
30 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
20:16 Jul 14, 2021
Jkt 253001
Notice is being given that the
FAA is considering a request from the
Cities of Auburn and Lewiston, ME to
dispose of 14.1 acres of land at AuburnLewiston Airport, Auburn, ME. The
land is not required for aeronautical use.
Given its location, the disposal of land
will not affect existing or future aviation
development needs at the airport. An
avigation easement will be placed on
the property to ensure conformance
with airport airspace requirements. The
proceeds of the land sale will be placed
in the airport’s operating and
maintenance account.
DATES: Comments must be received on
or before August 16, 2021.
ADDRESSES: You may send comments
using any of the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov, and follow
SUMMARY:
PO 00000
Frm 00124
Fmt 4703
Sfmt 4703
Federal Motor Carrier Safety
Administration (FMCSA), Department
of Transportation (DOT).
ACTION: Notice of renewal of
exemptions; request for comments.
AGENCY:
FMCSA announces its
decision to renew exemptions for 13
individuals from the requirement in the
Federal Motor Carrier Safety
Regulations (FMCSRs) that interstate
commercial motor vehicle (CMV)
drivers have ‘‘no established medical
history or clinical diagnosis of epilepsy
or any other condition which is likely
to cause loss of consciousness or any
loss of ability to control a CMV.’’ The
exemptions enable these individuals
who have had one or more seizures and
are taking anti-seizure medication to
continue to operate CMVs in interstate
commerce.
SUMMARY:
E:\FR\FM\15JYN1.SGM
15JYN1
]]>Agencies
[Federal Register Volume 86, Number 133 (Thursday, July 15, 2021)]
[Notices]
[Pages 37393-37397]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15031]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92359; File No. SR-MIAX-2021-28]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Establish Fees for the cToM Market Data Product
July 9, 2021.
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 30, 2021, Miami International Securities Exchange LLC (``MIAX''
or ``Exchange'')
[[Page 37394]]
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend the MIAX Options Fee
Schedule (the ``Fee Schedule'') to establish fees for the market data
product known as MIAX Complex Top of Market (``cToM'').
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 Section 6(a) of the Fee Schedule to
establish fees for the cToM market data product.
The Exchange previously adopted rules governing the trading of
Complex Orders \3\ on the MIAX System \4\ in 2016.\5\ At that time, the
Exchange also adopted the market data product cToM and expressly waived
fees for cToM to provide an incentive to prospective market
participants to subscribe to that market data feed.\6\ The Exchange has
not charged fees to cToM subscribers in the nearly five years since it
was first available for subscription.
---------------------------------------------------------------------------
\3\ See Exchange Rule 518(a)(5) for the definition of Complex
Orders.
\4\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
\5\ See Securities Exchange Act Release No. 79072 (October 7,
2016), 81 FR 71131 (October 14, 2016) (SR-MIAX-2016-26) (Order
Approving a Proposed Rule Change to Adopt New Rules to Govern the
Trading of Complex Orders).
\6\ See Securities Exchange Act Release No. 79146 (October 24,
2016), 81 FR 75171 (October 28, 2016) (SR-MIAX-2016-36) (providing a
complete description of the cToM data feed).
---------------------------------------------------------------------------
In summary, cToM provides subscribers with the same information as
the MIAX Top of Market (``ToM'') data product as it relates to the
Strategy Book,\7\ i.e., the Exchange's best bid and offer for a complex
strategy, with aggregate size, based on displayable order and quoting
interest in the complex strategy on the Exchange. However, cToM
provides subscribers with the following additional information that is
not included in ToM: (i) The identification of the complex strategies
currently trading on the Exchange; (ii) complex strategy last sale
information; and (iii) the status of securities underlying the complex
strategy (e.g., halted, open, or resumed). cToM is a distinct market
data product from ToM. ToM subscribers are not required to subscribe to
cToM, and cToM subscribers are not required to subscribe to ToM.\8\
---------------------------------------------------------------------------
\7\ The ``Strategy Book'' is the Exchange's electronic book of
complex orders and complex quotes. See Exchange Rule 518(a)(17).
\8\ See supra note 6.
---------------------------------------------------------------------------
The Exchange now proposes to amend Section 6(a) of the Fee Schedule
to charge monthly fees to Distributors \9\ of cToM. Specifically, the
Exchange proposes to assess Internal Distributors $1,250 per month and
External Distributors $1,750 per month for the cToM data feed.\10\ The
Exchange notes that the proposed monthly cToM fees for Internal and
External Distributor are the same prices that the Exchange charges for
its ToM data product, and are similar to other options exchanges' data
feed prices for their comparable complex order data feed products.\11\
---------------------------------------------------------------------------
\9\ A ``Distributor'' of MIAX data is any entity that receives a
feed or file of data either directly from MIAX or indirectly through
another entity and then distributes it either internally (within
that entity) or externally (outside that entity). All Distributors
are required to execute a MIAX Distributor Agreement. See Section
6(a) of the Fee Schedule.
\10\ The Exchange also proposes to make a minor related change
to remove ``(as applicable)'' from the explanatory paragraph in
Section 6(a) as it will not change [sic] fees for both the ToM and
cToM data feeds.
\11\ See NYSE American Options Proprietary Market Data Fees,
American Options Complex Fees ($1,500 per month Access Fee and
$1,000 per month Redistribution Fee), at https://www.nyse.com/publicdocs/nyse/data/NYSE_American_Options_Market_Data_Fee_Schedule.pdf; see also NYSE
Arca Options Proprietary Market Data Fees, Arca Options Complex Fees
($1,500 per month Access Fee and $1,000 per month Redistribution
Fee), at https://www.nyse.com/publicdocs/nyse/data/NYSE_Arca_Options_Proprietary_Data_Fee_Schedule.pdf; Nasdaq PHLX LLC
Price List--U.S. Derivatives Data, PHLX Orders Fees (Internal
Distributor fee of $3,000 per month and External Distributor fee of
$3,500 per month), at https://www.nasdaqtrader.com/Trader.aspx?id=DPPriceListOptions#PHLX.
---------------------------------------------------------------------------
Like it does today for ToM, MIAX proposes to assess cToM fees on
Internal and External Distributors in each month the Distributor is
credentialed to use cToM in the production environment. Also, like the
Exchange does today for ToM, market data fees for cToM will be reduced
for new Distributors for the first month during which they subscribe to
cToM, based on the number of trading days that have been held during
the month prior to the date on which that subscriber has been
credentialed to use cToM in the production environment. Such new
Distributors will be assessed a pro-rata percentage of the fees in the
table in Section 6(a) of the Fee Schedule, which is the percentage of
the number of trading days remaining in the affected calendar month as
of the date on which they have been credentialed to use cToM in the
production environment, divided by the total number of trading days in
the affected calendar month.
Implementation Date
The proposed fee changes will become effective on July 1, 2021.
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \12\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \13\ in
particular, in that it is an equitable allocation of reasonable dues,
fees and other charges among its members and issuers and other persons
using its facilities. The Exchange also believes the proposal furthers
the objectives of Section 6(b)(5) of the Act in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest and is not designed to permit unfair discrimination between
customers, issuers, brokers and dealers.
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') and broker-dealers increased authority and
flexibility to offer new and unique market data to the public. It was
believed that this authority would expand the amount of data available
to
[[Page 37395]]
consumers, and also spur innovation and competition for the provision
of market data. Particularly, cToM further broadens the availability of
U.S. option market data to investors consistent with the principles of
Regulation NMS. The data product also promotes increased transparency
through the dissemination of cToM. Particularly, cToM provides
subscribers with the same information as ToM, but includes the
following additional information: (i) The identification of the complex
strategies currently trading on the Exchange; (ii) complex strategy
last sale information; and (iii) the status of securities underlying
the complex strategy (e.g., halted, open, or resumed). The Exchange
believes cToM provides a valuable tool that subscribers can use to gain
substantial insight into the trading activity in Complex Orders, but
also emphasizes such data is not necessary for trading. Moreover, other
exchanges offer similar data products.\14\
---------------------------------------------------------------------------
\14\ See supra note 11.
---------------------------------------------------------------------------
The Exchange operates in a highly competitive environment. Indeed,
there are currently 16 registered options exchanges that trade options.
Based on publicly available information, no single options exchange has
more than 15% of the market share and currently the Exchange represents
only approximately 6.75% of the market share.\15\ The Commission has
repeatedly expressed its preference for competition over regulatory
intervention in determining prices, products, and services in the
securities markets. Particularly, 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.'' \16\ Making similar data products available to
market participants fosters competition in the marketplace, and
constrains the ability of exchanges to charge supra-competitive fees.
In the event that a market participant views one exchange's data
product as more or less attractive than the competition, that market
participant can and may switch between similar products. The proposed
fees are a result of the competitive environment, as the Exchange seeks
to adopt fees to attract purchasers of cToM.
---------------------------------------------------------------------------
\15\ See MIAX's ``The Market at a Glance'', available at https://www.miaxoptions.com/ (last visited June 29, 2021).
\16\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------
No market participant is required by any rule or regulation to
utilize the Exchange's Complex Order functionality or subscribe to the
cToM data feed. Further, unlike orders on the Exchange's Simple Order
Book, Complex Orders are not protected and will never trade through
Priority Customer \17\ orders, thus protecting the priority that is
established in the Simple Order Book.\18\ Additionally, unlike the
continuous quoting requirements of Market Makers in the simple order
market, there are no continuous quoting requirements respecting Complex
Orders. It is a business decision whether market participants utilize
Complex Order strategies on the Exchange and whether to purchase cToM
data to help effect those strategies.
---------------------------------------------------------------------------
\17\ The term ``Priority Customer'' means a person or entity
that (i) is not a broker or dealer in securities and (ii) does not
place more than 390 orders in listed options per day on average
during a calendar month for its own beneficial accounts(s). The term
``Priority Customer Order'' means an order for the account of a
Priority Customer. See Exchange Rule 100.
\18\ The ``Simple Order Book'' is the Exchange's regular
electronic book of orders and quotes. See Exchange Rule 100. See
supra note 5.
---------------------------------------------------------------------------
The Exchange believes the proposed fees are reasonable as the
proposed fees are both modest and similar to, or even lower than, the
fees assessed by other exchanges that provide similar data
products.\19\ Indeed, proposing fees that are excessively higher than
established fees for similar data products would simply serve to reduce
demand for the Exchange's data product, which as noted, is entirely
optional. Like the Exchange's cToM data product, other exchanges offer
similar data products and complex order functionality. As such, if a
market participant views another exchange's complex order functionality
and related data feed(s) as more attractive than what is offered by the
Exchange, then such market participant can merely choose not to utilize
the Exchange's Complex Order functionality or purchase cToM. Instead,
that market participant can utilize similar complex functionality
elsewhere and purchase another exchange's complex data product, which
likely offers similar data points, albeit based on that other market's
complex order trading activity.
---------------------------------------------------------------------------
\19\ See supra note 11.
---------------------------------------------------------------------------
Selling market data, such as cToM, is also a means by which
exchanges compete to attract business. If the market deems the proposed
fees to be unfair or inequitable, firms can diminish or discontinue
their use of the data and/or avail themselves of similar products
offered by other exchanges.\20\ The Exchange therefore believes that
the proposed fees for cToM reflect the competitive environment and
would be properly assessed on Member or non-Member users. The Exchange
also believes the proposed fees are equitable and not unfairly
discriminatory as the fees would apply equally to all users who choose
to purchase such data. The Exchange's proposed fees would not
differentiate between subscribers that purchase cToM and are set at a
modest level that would allow any interested Member or non-Member to
purchase such data based on their business needs.
---------------------------------------------------------------------------
\20\ See id.
---------------------------------------------------------------------------
The Exchange also believes the proposed cToM fees are reasonable
and not unfairly discriminatory because since the Exchange initially
established the cToM data product in 2016, all Exchange Members have
had the ability to receive the Exchange's cToM data free of charge for
the past five years.\21\
---------------------------------------------------------------------------
\21\ See supra note 6.
---------------------------------------------------------------------------
The Exchange believes that it is reasonable, equitable and not
unfairly discriminatory to assess Internal Distributors fees that are
less than the fees assessed for External Distributors for subscriptions
to the cToM data feed because Internal Distributors have limited,
restricted usage rights to the market data, as compared to External
Distributors, which have more expansive usage rights. All Members and
non-Members that determine to receive any market data feed of the
Exchange (or its affiliates, MIAX PEARL, LLC and MIAX Emerald, LLC),
must first execute, among other things, the MIAX Exchange Group
Exchange Data Agreement (the ``Exchange Data Agreement'').\22\ Pursuant
to the Exchange Data Agreement, Internal Distributors are restricted to
the ``internal use'' of any market data they receive. This means that
Internal Distributors may only distribute the Exchange's market data to
the recipient's officers and employees and its affiliates.\23\ External
Distributors may distribute the Exchange's market data to persons who
are not officers, employees or affiliates of the External
Distributor,\24\ and may charge their own fees for the distribution of
such market data. Accordingly, the Exchange believes it is fair,
reasonable and not unfairly discriminatory to assess External
Distributors a higher fee for the Exchange's market data products as
External Distributors have greater usage rights to commercialize such
market
[[Page 37396]]
data. The Exchange also utilizes more resources to support External
Distributors versus Internal Distributors, as External Distributors
have reporting and monitoring obligations that Internal Distributors do
not have, thus requiring additional time and effort of Exchange staff.
The Exchange believes the proposed cToM fees are equitable and not
unfairly discriminatory because the fee level results in a reasonable
and equitable allocation of fees amongst subscribers for similar
services, depending on whether the subscribers is an Internal or
External Distributor. Moreover, the decision as to whether or not to
purchase market data is entirely optional to all market participants.
Potential purchasers are not required to purchase the market data, and
the Exchange is not required to make the market data available.
Purchasers may request the data at any time or may decline to purchase
such data. The allocation of fees among users is fair and reasonable
because, if market participants deem the proposed fees to be unfair or
inequitable, firms can discontinue their use of the cToM data.
---------------------------------------------------------------------------
\22\ See Exchange Data Agreement, available at https://miaxweb2.pairsite.com/sites/default/files/page-files/MIAX_Exchange_Group_Data_Agreement_09032020.pdf.
\23\ See id.
\24\ See id.
---------------------------------------------------------------------------
Further, the Exchange no longer believes it is necessary to provide
cToM data for free to attract market participants since the Exchange's
Strategy Book is now established and the Exchange no longer needs to
rely on such waivers to attract market participants to its Complex
Order market or cToM subscribers. The Exchange believes that the
proposal is equitable and not unfairly discriminatory because the
proposed cToM fees will apply to all market participants of the
Exchange on a uniform basis. The Exchange also notes that the proposed
monthly cToM fees for Internal and External Distributors are the same
prices that the Exchange charges for its ToM data product, and are
generally lower than other options exchanges' data feed prices for
their comparable data feed products.\25\
---------------------------------------------------------------------------
\25\ See supra note 11.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Rather, the
Exchange believes that the proposal will promote competition by
permitting the Exchange to sell a data product similar to those offered
by other competitor options exchanges.\26\ The Exchange made Complex
Order functionality and cToM available in order to keep pace with
changes in the U.S. options industry and evolving customer needs, and
believes the data product will continue to contribute to robust
competition among national securities exchanges. Other U.S. options
exchanges offer complex order functionality and market data products
that are substantially similar to that offered by the Exchange. As a
result, the Exchange believes this proposed rule change permits fair
competition among national securities exchanges.
---------------------------------------------------------------------------
\26\ Id.
---------------------------------------------------------------------------
Furthermore, the Exchange operates in a highly competitive
environment, and its ability to price cToM is constrained by
competition among exchanges that offer similar data products and
complex order functionality to their customers. As discussed, there are
currently a number of similar products available to market participants
and investors. Other U.S. options exchanges offer market data products
that are substantially similar to cToM, which the Exchange must
consider in its pricing discipline in order to compete for the market
data.\27\ For example, proposing fees that are excessively higher than
established fees for similar data products would simply serve to reduce
demand for the Exchange's data product, which as discussed, market
participants are under no obligation to utilize. In this competitive
environment, potential purchasers are free to choose which, if any,
similar product to purchase to satisfy their need for market
information. As a result, the Exchange believes this proposed rule
change permits fair competition among national securities exchanges.
---------------------------------------------------------------------------
\27\ Id.
---------------------------------------------------------------------------
The Exchange also does not believe the proposed fees would cause
any unnecessary or in appropriate [sic] burden on intermarket
competition as other exchanges are free to introduce their own
comparable data product and lower their prices to better compete with
the Exchange's offering. The Exchange does not believe the proposed
rule change would cause any unnecessary or inappropriate burden on
intramarket competition. Particularly, the proposed product and fees
apply uniformly to any purchaser, in that it does not differentiate
between subscribers that purchase cToM. The proposed fees are set at a
modest level that would allow any interested Member or non-Member to
purchase such data based on their business needs.
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,\28\ and Rule 19b-4(f)(2) \29\ 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.
---------------------------------------------------------------------------
\28\ 15 U.S.C. 78s(b)(3)(A)(ii).
\29\ 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-MIAX-2021-28 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-2021-28. 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
[[Page 37397]]
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-2021-28, and should be
submitted on or before August 5, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\30\
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\30\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-15031 Filed 7-14-21; 8:45 am]
BILLING CODE 8011-01-P
