Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Options Fee Schedule To Establish a Policy Relating to Billing Errors, 59833-59835 [2021-23437]
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Federal Register / Vol. 86, No. 206 / Thursday, October 28, 2021 / Notices
orders that do not trade during GTH will
be eligible to trade during the RTH
trading sessions in the same manner as
all other orders submitted during RTH,
the proposed rule change will have no
effect on the national best prices or
trading during RTH. The Exchange also
believes the proposed rule change could
further increase its competitive position
outside of the United States by
providing investors with an additional
investment vehicle with respect to their
global trading strategies during times
that better correspond with parts of
regular trading hours outside of the
United States.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not:
A. Significantly affect the protection
of investors or the public interest;
B. impose any significant burden on
competition; and
C. become operative for 30 days from
the date on which it was filed, or such
shorter time as the Commission may
designate, it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 52 and Rule 19b–4(f)(6) 53
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 will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
jspears on DSK121TN23PROD with NOTICES1
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:
52 15
53 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
VerDate Sep<11>2014
17:34 Oct 27, 2021
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–
CBOE–2021–061 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–CBOE–2021–061. 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–CBOE–2021–061 and
should be submitted on or before
November 18, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.54
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–23436 Filed 10–27–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93404; File No. SR–MIAX–
2021–51]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend the MIAX Options
Fee Schedule To Establish a Policy
Relating to Billing Errors
October 22, 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 October
14, 2021, Miami International Securities
Exchange, LLC (‘‘MIAX Options’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I and II below,
which Items have been prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to establish a
policy relating to billing errors.
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/ at MIAX Options’ principal
office, and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend MIAX’s Fee
1 15
54 17
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CFR 200.30–3(a)(12).
Frm 00140
Fmt 4703
Sfmt 4703
59833
2 17
E:\FR\FM\28OCN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
28OCN1
59834
Federal Register / Vol. 86, No. 206 / Thursday, October 28, 2021 / Notices
jspears on DSK121TN23PROD with NOTICES1
Schedule to establish a policy relating to
billing errors. More specifically, the
Exchange proposes to amend the footer
on the Title page of its Fee Schedule to
adopt language that would provide that
all fees and rebates assessed prior to the
three full calendar months before the
month in which the Exchange becomes
aware of a billing error shall be
considered final. Particularly, the
Exchange will resolve an error by
crediting or debiting Members 3 and
non-Members based on the fees or
rebates that should have been applied in
the three full calendar months
preceding the month in which the
Exchange became aware of the error,
which includes all impacted
transactions that occurred during those
months.4 The Exchange will apply the
three month look back regardless of
whether the error was discovered by the
Exchange or by a Member or nonMember that submitted a fee dispute to
the Exchange.5
The purpose of the proposed change
is to encourage Members and nonMembers to promptly review their
Exchange invoices so that any disputed
charges can be addressed in a timely
manner. The Exchange notes that it
provides Members with both daily and
monthly fee reports and thus believes
they should be aware of any potential
billing errors within three months.
Further, any fees assessed on nonMembers are sent as monthly invoices,
and thus these firms will likewise
receive sufficient notice of any potential
billing errors. The requirement that
Members and non-Members submit
disputes in writing and provide
supporting documentation in a timely
manner while the information and data
underlying those charges (e.g.,
applicable fees and order information) is
still easily and readily available is not
changing under this proposal.
The proposed rule change to provide
all fees and rebates assessed prior to the
three full calendar months before the
3 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
4 For example, if the Exchange becomes aware of
a transaction fee billing error on October 1, 2021,
the Exchange will resolve the error by crediting or
debiting Members and non-Members based on the
fees or rebates that should have been applied to any
impacted transactions during July, August and
September 2021. The Exchange notes that because
it bills in arrears, the Exchange would be able to
correct the error in advance of issuing the October
2021 invoice and therefore, transactions impacted
through the date of discovery (in this example,
October 1, 2021) and thereafter, would be billed
correctly.
5 The Exchange notes that the current policy
which states that all fee disputes must be submitted
no later than sixty (60) days after receipt of a billing
invoice will remain in place.
VerDate Sep<11>2014
18:55 Oct 27, 2021
Jkt 256001
month in which the Exchange becomes
aware of a billing error shall be
considered final provides both the
Exchange and Members and nonMembers finality and the ability to close
their books after a known period of
time. The proposed change encourages
Members and non-Members to provide
a timely review of their billing invoices.
The Exchange notes that it routinely
conducts audits of its Members and
non-Members to ensure that each is
complying with the terms and
conditions of the subscriber agreement
they have signed. The audit process is
independent of the billing process. The
audit function is administered by the
Exchange’s Member Services Group and
the billing function is administered by
the Exchange’s Trading Operations
Group. Each group is charged with
distinct responsibilities that do not
overlap. The proposed billing fee
finality provision is not intended to
circumvent the audit process in any
manner and the adoption of the three
month look back period, beyond which
billing errors would be considered final,
would not affect a Member or nonMember’s ability to take a position with
respect to billing charges identified
through the audit process.
Further, the Exchange notes that the
proposed change is similar to a policy
currently in place at another exchange.6
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act.7
Specifically, the Exchange believes the
proposed rule change is consistent with
Section 6(b)(5) 8 requirements that the
rules of an exchange be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and facilitating transactions
in securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 9 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that
establishing a policy that all fees and
6 See Securities Exchange Act Release No. 91836
(May 11, 2021), 86 FR 26765 (May 17, 2021) (SR–
BOX–2021–08).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
9 Id.
PO 00000
Frm 00141
Fmt 4703
Sfmt 4703
rebates are final after three months (i.e.,
resolving billing errors only for the three
full calendar months preceding the
month in which the Exchange became
aware of the error), is reasonable as both
the Exchange and Members and nonMembers have an interest in knowing
when its fee assessments are final and
when reliance can be placed upon those
assessments. Indeed, without some
deadline on billing errors, the Exchange
and Members and non-Members would
never be able to close their books with
any confidence. Furthermore, as noted
above, another exchange similarly
considers its fees final after a similar
period of time. The proposed change is
also equitable, and not unfairly
discriminatory because it will apply
equally to all Members (and nonMembers that pay Exchange fees) and
apply in cases where either the Member
(or non-Member) discovers the error or
the Exchange discovers the error.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change would establish a
policy that provides clarity regarding
billing errors that would apply equally
to all Members. Additionally, the
proposed rule change is similar to the
rules of another exchange.10 The
Exchange does not believe such
proposed changes would impair the
ability of Members or competing order
execution venues to maintain their
competitive standing in the financial
markets. Moreover, because the
proposed changes would apply equally
to all Members, the proposal does not
impose any burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days after the date of
the filing, or such shorter time as the
10 Supra
E:\FR\FM\28OCN1.SGM
note 6.
28OCN1
Federal Register / Vol. 86, No. 206 / Thursday, October 28, 2021 / Notices
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 11 and Rule 19b–4(f)(6) 12
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 13 normally does not
become operative for 30 days after the
date of its filing. However, Rule
19b–4(f)(6)(iii) 14 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay. The Exchange states
that waiver of the operative delay is
consistent with the protection of
investors and the public interest
because such a waiver would allow
Members and non-Members to
immediately benefit from having a
clearly stated policy regarding fee
finality for billing disputes and provide
certainty and finality to current and
prospective billing errors. In addition,
the Exchange states that the proposed
rule change is comparable to other
policies and practices that are already
established at another exchange.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because it will allow the Exchange to
modify its Fee Schedule to immediately
adopt a policy relating to billing errors
that is designed to provide clarity and
certainty with respect to when Exchange
fees and rebates may be considered
final. Further, the proposed rule change
is substantially similar to provisions
currently in effect on other national
securities exchanges 15 and therefore
does not raise any new or novel
regulatory issues. Accordingly, the
Commission waives the operative delay
and designates the proposed rule change
operative upon filing.16
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
11 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule
19b–4(f)(6)(iii) requires a self-regulatory
organization to give the Commission written notice
of its intent to file the proposed rule change, along
with a brief description and text of the proposed
rule change, at least five business days prior to the
date of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
15 See, e.g., supra note 6.
16 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
jspears on DSK121TN23PROD with NOTICES1
12 17
VerDate Sep<11>2014
17:34 Oct 27, 2021
Jkt 256001
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
change 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–2021–51 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–2021–51. 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
PO 00000
Frm 00142
Fmt 4703
Sfmt 9990
59835
submissions should refer to File
Number SR–MIAX–2021–51 and should
be submitted on or before November 18,
2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–23437 Filed 10–27–21; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 11573]
Notice of Public Meeting of the U.S.
President’s Emergency Plan for AIDS
Relief (PEPFAR) Scientific Advisory
Board; Correction
ACTION:
Notice; correction.
The Department of State
published a document in the Federal
Register of October 6, 2021, concerning
the notice of a public meeting of the
U.S. President’s Emergency Plan for
AIDS Relief (PEPFAR) Scientific
Advisory Board. The notice was missing
the registration hyperlink.
FOR FURTHER INFORMATION CONTACT: Dr.
Sara Klucking, Designated Federal
Officer for the SAB, Office of the U.S.
Global AIDS Coordinator and Health
Diplomacy at KluckingSR@state.gov or
(202) 615–4350.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Correction
In the Federal Register of October 6,
2021, in FR Vol. 86, No. 191, Doc. 2021–
21799, on page 55678, in the first
column, correct the ADDRESSES section
to read:
ADDRESSES: The meeting will be held
virtually via an online platform.
Individuals are asked to pre-register at
https://docs.google.com/forms/d/e/
1FAIpQLSeRxxRe4wjbSNmlhelXDRINWASbknPAFWwkjTUJ8zUDbb7FA/
viewform. The agenda will be sent to all
registrants and will also be posted on
the PEPFAR SAB web page at
www.state.gov/scientific-advisoryboard-pepfar one week in advance of
the meeting, along with instructions on
how to access the meeting.
Sara Klucking,
Director, Office of Research and Science,
Office of the U.S. Global AIDS Coordinator
and Health Diplomacy, Office of the Secretary
of State.
[FR Doc. 2021–23455 Filed 10–27–21; 8:45 am]
BILLING CODE 4710–10–P
17 17
E:\FR\FM\28OCN1.SGM
CFR 200.30–3(a)(12).
28OCN1
]]>Agencies
[Federal Register Volume 86, Number 206 (Thursday, October 28, 2021)]
[Notices]
[Pages 59833-59835]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-23437]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93404; File No. SR-MIAX-2021-51]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the MIAX Options Fee Schedule To
Establish a Policy Relating to Billing Errors
October 22, 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 October 14, 2021, Miami International Securities Exchange, LLC
(``MIAX Options'' or the ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') a proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\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 proposes to establish a policy relating to billing
errors.
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxoptions.com/rule-filings/ at MIAX Options'
principal office, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend MIAX's Fee
[[Page 59834]]
Schedule to establish a policy relating to billing errors. More
specifically, the Exchange proposes to amend the footer on the Title
page of its Fee Schedule to adopt language that would provide that all
fees and rebates assessed prior to the three full calendar months
before the month in which the Exchange becomes aware of a billing error
shall be considered final. Particularly, the Exchange will resolve an
error by crediting or debiting Members \3\ and non-Members based on the
fees or rebates that should have been applied in the three full
calendar months preceding the month in which the Exchange became aware
of the error, which includes all impacted transactions that occurred
during those months.\4\ The Exchange will apply the three month look
back regardless of whether the error was discovered by the Exchange or
by a Member or non-Member that submitted a fee dispute to the
Exchange.\5\
---------------------------------------------------------------------------
\3\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
\4\ For example, if the Exchange becomes aware of a transaction
fee billing error on October 1, 2021, the Exchange will resolve the
error by crediting or debiting Members and non-Members based on the
fees or rebates that should have been applied to any impacted
transactions during July, August and September 2021. The Exchange
notes that because it bills in arrears, the Exchange would be able
to correct the error in advance of issuing the October 2021 invoice
and therefore, transactions impacted through the date of discovery
(in this example, October 1, 2021) and thereafter, would be billed
correctly.
\5\ The Exchange notes that the current policy which states that
all fee disputes must be submitted no later than sixty (60) days
after receipt of a billing invoice will remain in place.
---------------------------------------------------------------------------
The purpose of the proposed change is to encourage Members and non-
Members to promptly review their Exchange invoices so that any disputed
charges can be addressed in a timely manner. The Exchange notes that it
provides Members with both daily and monthly fee reports and thus
believes they should be aware of any potential billing errors within
three months. Further, any fees assessed on non-Members are sent as
monthly invoices, and thus these firms will likewise receive sufficient
notice of any potential billing errors. The requirement that Members
and non-Members submit disputes in writing and provide supporting
documentation in a timely manner while the information and data
underlying those charges (e.g., applicable fees and order information)
is still easily and readily available is not changing under this
proposal.
The proposed rule change to provide all fees and rebates assessed
prior to the three full calendar months before the month in which the
Exchange becomes aware of a billing error shall be considered final
provides both the Exchange and Members and non-Members finality and the
ability to close their books after a known period of time. The proposed
change encourages Members and non-Members to provide a timely review of
their billing invoices.
The Exchange notes that it routinely conducts audits of its Members
and non-Members to ensure that each is complying with the terms and
conditions of the subscriber agreement they have signed. The audit
process is independent of the billing process. The audit function is
administered by the Exchange's Member Services Group and the billing
function is administered by the Exchange's Trading Operations Group.
Each group is charged with distinct responsibilities that do not
overlap. The proposed billing fee finality provision is not intended to
circumvent the audit process in any manner and the adoption of the
three month look back period, beyond which billing errors would be
considered final, would not affect a Member or non-Member's ability to
take a position with respect to billing charges identified through the
audit process.
Further, the Exchange notes that the proposed change is similar to
a policy currently in place at another exchange.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release No. 91836 (May 11,
2021), 86 FR 26765 (May 17, 2021) (SR-BOX-2021-08).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act.\7\ Specifically, the
Exchange believes the proposed rule change is consistent with Section
6(b)(5) \8\ requirements that the rules of an exchange be designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) \9\ requirement that the rules of an exchange not be designed
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ Id.
---------------------------------------------------------------------------
The Exchange believes that establishing a policy that all fees and
rebates are final after three months (i.e., resolving billing errors
only for the three full calendar months preceding the month in which
the Exchange became aware of the error), is reasonable as both the
Exchange and Members and non-Members have an interest in knowing when
its fee assessments are final and when reliance can be placed upon
those assessments. Indeed, without some deadline on billing errors, the
Exchange and Members and non-Members would never be able to close their
books with any confidence. Furthermore, as noted above, another
exchange similarly considers its fees final after a similar period of
time. The proposed change is also equitable, and not unfairly
discriminatory because it will apply equally to all Members (and non-
Members that pay Exchange fees) and apply in cases where either the
Member (or non-Member) discovers the error or the Exchange discovers
the error.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change would
establish a policy that provides clarity regarding billing errors that
would apply equally to all Members. Additionally, the proposed rule
change is similar to the rules of another exchange.\10\ The Exchange
does not believe such proposed changes would impair the ability of
Members or competing order execution venues to maintain their
competitive standing in the financial markets. Moreover, because the
proposed changes would apply equally to all Members, the proposal does
not impose any burden on competition.
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\10\ Supra note 6.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the
[[Page 59835]]
Commission may designate, it has become effective pursuant to
19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) \12\ thereunder.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative for 30 days after the date of its filing.
However, Rule 19b-4(f)(6)(iii) \14\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has asked the
Commission to waive the 30-day operative delay. The Exchange states
that waiver of the operative delay is consistent with the protection of
investors and the public interest because such a waiver would allow
Members and non-Members to immediately benefit from having a clearly
stated policy regarding fee finality for billing disputes and provide
certainty and finality to current and prospective billing errors. In
addition, the Exchange states that the proposed rule change is
comparable to other policies and practices that are already established
at another exchange.
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it will allow the Exchange to modify its Fee Schedule to
immediately adopt a policy relating to billing errors that is designed
to provide clarity and certainty with respect to when Exchange fees and
rebates may be considered final. Further, the proposed rule change is
substantially similar to provisions currently in effect on other
national securities exchanges \15\ and therefore does not raise any new
or novel regulatory issues. Accordingly, the Commission waives the
operative delay and designates the proposed rule change operative upon
filing.\16\
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\15\ See, e.g., supra note 6.
\16\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-MIAX-2021-51 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-2021-51. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-MIAX-2021-51 and should be submitted on
or before November 18, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-23437 Filed 10-27-21; 8:45 am]
BILLING CODE 8011-01-P
