Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Pricing Schedule at Options 7, Section 3, 42409-42414 [2023-13895]
Download as PDF
<![CDATA[
Federal Register / Vol. 88, No. 125 / Friday, June 30, 2023 / Notices
months has engaged, in securities
activities.’’ FINRA believes that the sixmonth proposed timeframe will provide
additional clarity as to the application
of the rule as members’ businesses may
evolve over time. Thus, for example, if
a member restructures its business such
that it ceases engaging in securities
activities with customers, the member
would be able to avail itself of the
proposed proprietary trading firm
exemption after a six-month period
(assuming that the other conditions of
the exemption are met). The six-month
timeframe would be assessed on an
ongoing basis; therefore, any securities
activity with a customer would cause
the firm to be ineligible for the
exemption for six months from the time
the firm ceases to engage in such
customer activity. Finally, FINRA is
proposing to include within the scope of
‘‘proprietary trading firm’’ a firm that (in
addition to the other criteria) conducts
all trading through the firm’s accounts
by traders that are owners of, employees
of, or contractors to the firm ‘‘or
employees of an affiliate of the firm.’’
Unsupportive Comments
ddrumheller on DSK120RN23PROD with NOTICES1
Pittsburgh University stated that
proprietary trading firms engage in
significant trading in the marketplace,
which pose a substantial risk to the
market, and that there is a related cost
for FINRA to supervise and oversee
proprietary trading firm activity and
that, therefore, FINRA should apply a
TAF rate to proprietary trading firms
that is proportional to the cost of
regulating such firms.57 Pittsburgh
University also stated that ‘‘[w]hile the
cost to regulate proprietary trading firms
is less than the cost to regulate firms
which trade on behalf of customers,
proprietary trading firms should not be
entirely exempt from the TAF when
trading on an exchange on which they
are members.’’ 58
FINRA agrees that regulating
proprietary trading firm trading activity
will involve a cost. For this reason,
FINRA is not proposing to exempt
proprietary trading firms from the TAF
altogether. As discussed above, FINRA
believes it is appropriate to exempt
proprietary trading firms from the TAF
for transactions on an exchange of
57 See
University of Pittsburgh Letter, at 6.
University of Pittsburgh Letter. Pittsburgh
University added that ‘‘[t]o exempt proprietary
trading firms from TAFs would alter the balance
between the TAF and other FINRA fees that fund
FINRA’s operations, due to an increased cost in
regulation without a similar increase of resources.’’
58 See
VerDate Sep<11>2014
19:33 Jun 29, 2023
Jkt 259001
which they are a member because
FINRA anticipates that regulatory costs
largely will relate to overseeing such
firms’ activity over the counter or across
exchanges.
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)
of the Act 59 and paragraph (f)(2) of Rule
19b–4 thereunder.60 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–
FINRA–2023–009 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–FINRA–2023–009. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of
FINRA. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–FINRA–2023–009 and should be
submitted on or before July 21, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.61
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 2023–13894 Filed 6–29–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97800; File No. SR–MRX–
2023–11]
Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Pricing
Schedule at Options 7, Section 3
June 26, 2023.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 12,
2023, Nasdaq MRX, LLC (‘‘MRX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
61 17
59 15
U.S.C. 78s(b)(3)(A).
60 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00124
Fmt 4703
Sfmt 4703
42409
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\30JNN1.SGM
30JNN1
42410
Federal Register / Vol. 88, No. 125 / Friday, June 30, 2023 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s Pricing Schedule at Options
7, Section 3 (Regular Order Fees and
Rebates).
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/mrx/rules, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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
3 (Regular Order Fees and Rebates). The
Exchange initially filed the proposed
pricing changes on June 1, 2023 (SR–
MRX–2023–09). On June 12, 2023, the
Exchange withdrew that filing and
submitted this filing.
Background
Today, as set forth in Table 1 of
Options 7, Section 3, the Exchange
assesses the following maker/taker fees
for regular orders in Penny and NonPenny Symbols:
1. Purpose
The purpose of the proposed rule
change is to amend the Exchange’s
Pricing Schedule at Options 7, Section
Maker fee
Tier 1
Market participant
Maker fee
Tier 2
Taker fee
Tier 1
Taker fee
Tier 2
Penny Symbols
Maker 3
Market
.................................................................................................................
Non-Nasdaq MRX Market Maker (FarMM) 4 ...................................................................
Firm Proprietary 5/Broker-Dealer 6 ...................................................................................
Professional Customer 7 ..................................................................................................
Priority Customer 8 ...........................................................................................................
$0.20
0.47
0.47
0.47
0.00
$0.10
0.47
0.47
0.47
0.00
$0.50
0.50
0.50
0.50
0.00
$0.50
0.50
0.50
0.50
0.00
0.35
0.90
0.90
0.90
0.00
0.20
0.90
0.90
0.90
0.00
1.10
1.10
1.10
1.10
0.00
1.10
1.10
1.10
1.10
0.00
Non-Penny Symbols
Market Maker ...................................................................................................................
Non-Nasdaq MRX Market Maker (FarMM) .....................................................................
Firm Proprietary/Broker-Dealer ........................................................................................
Professional Customer ....................................................................................................
Priority Customer .............................................................................................................
Market participants are charged the
above Tier 1 and Tier 2 maker/taker fees
(or are eligible for free executions) if
they meet the applicable tier thresholds
Tiers
Total Affiliated Member or Affiliated Entity ADV
Tier 1 ...
executes 0.00% to less than 0.75% of Customer Total Consolidated Volume 11.
executes 0.75% or more of Customer Total Consolidated Volume.
Tier 2 ...
ddrumheller on DSK120RN23PROD with NOTICES1
based on Total Affiliated Member or
Affiliated Entity ADV 9 in Table 3 of
Options 7, Section 3. Market Makers
may also alternatively qualify for these
OR
fees if they meet the applicable tier
thresholds based on Total Market Maker
ADV 10 in Table 3. Specifically:
Total Market Maker ADV
executes up to 0.10% of Customer Total Consolidated Volume which adds liquidity in Regular Orders.
executes more than 0.10% of Customer Total Consolidated
Volume which adds liquidity in Regular Orders.
In addition, the Exchange currently
offers Market Makers a number of ways
to reduce their maker/taker fees
described above. First, Market Makers
may qualify for reduced taker fees in
Penny Symbols when trading against
Priority Customer orders in Penny
Symbols entered by an Affiliated
3 The term ‘‘Market Makers’’ refers to
‘‘Competitive Market Makers’’ and ‘‘Primary Market
Makers’’ collectively. See Options 1, Section
1(a)(21).
4 A ‘‘Non-Nasdaq MRX Market Maker’’ is a market
maker as defined in Section 3(a)(38) of the
Securities Exchange Act of 1934, as amended,
registered in the same options class on another
options exchange.
5 A ‘‘Firm Proprietary’’ order is an order
submitted by a Member for its own proprietary
account.
6 A ‘‘Broker-Dealer’’ order is an order submitted
by a Member for a broker-dealer account that is not
its own proprietary account.
7 A ‘‘Professional Customer’’ is a person or entity
that is not a broker/dealer and is not a Priority
Customer.
8 A ‘‘Priority Customer’’ is a person or entity that
is not a broker/dealer in securities, and does not
place more than 390 orders in listed options per day
on average during a calendar month for its own
beneficial account(s), as defined in Nasdaq MRX
Options 1, Section 1(a)(36).
9 Total Affiliated Member or Affiliated Entity
ADV means all ADV executed on the Exchange in
all symbols and order types, including volume
executed by Affiliated Members or Affiliated
Entities. All eligible volume from Affiliated
Members or an Affiliated Entity will be aggregated
in determining applicable tiers.
10 Total Market Maker ADV means all Market
Maker ADV executed on the Exchange in all
symbols and order types, including volume
executed by Affiliated Members or Affiliated
Entities. All eligible volume from Affiliated
Members or an Affiliated Entity will be aggregated
in determining applicable tiers.
11 ‘‘Customer Total Consolidated Volume’’ means
the total volume cleared at The Options Clearing
Corporation in the Customer range in equity and
ETF options in that month.
VerDate Sep<11>2014
19:33 Jun 29, 2023
Jkt 259001
PO 00000
Frm 00125
Fmt 4703
Sfmt 4703
E:\FR\FM\30JNN1.SGM
30JNN1
Federal Register / Vol. 88, No. 125 / Friday, June 30, 2023 / Notices
Member 12 or Affiliated Entity.13 In lieu
of the $0.50 per contract Tier 1/Tier 2
Market Maker Taker Fee, a Taker Fee of
$0.20 per contract applies instead when
trading with Priority Customer orders in
Penny Symbols entered by an Affiliated
Member or Affiliated Entity. A Taker
Fee of $0.10 per contract applies instead
when trading with Priority Customer
orders in Penny Symbols entered by an
Affiliated Member or Affiliated Entity if
the Member has a Total Affiliated
Member or Affiliated Entity Priority
Customer ADV 14 of 0.20% to less than
0.75% Customer Total Consolidated
Volume. A Taker Fee of $0.00 per
contract applies instead when trading
with Priority Customer orders in Penny
Symbols entered by an Affiliated
Member or Affiliated Entity if the
Member has a Total Affiliated Member
or Affiliated Entity Priority Customer
ADV of 0.75% Customer Total
Consolidated Volume or more.15
Second, Market Makers may currently
qualify for reduced taker fees in NonPenny Symbols when trading against
Priority Customer orders in Non-Penny
Symbols entered by an Affiliated
ddrumheller on DSK120RN23PROD with NOTICES1
Tiers
Member or Affiliated Entity. In lieu of
the $1.10 per contract Tier 1/Tier 2
Market Maker Taker Fee, a Taker Fee of
$0.90 per contract applies instead when
trading with Priority Customer orders in
Non-Penny Symbols entered by an
Affiliated Member or Affiliated Entity.
A Taker Fee of $0.50 per contract
applies instead when trading with
Priority Customer orders in Non-Penny
Symbols entered by an Affiliated
Member or Affiliated Entity if the
Member has a Total Affiliated Member
or Affiliated Entity Priority Customer
ADV of 0.20% to less than 0.75%
Customer Total Consolidated Volume. A
Taker Fee of $0.20 per contract applies
instead when trading with Priority
Customer orders in Non-Penny Symbols
entered by an Affiliated Member or
Affiliated Entity if the Member has a
Total Affiliated Member or Affiliated
Entity Priority Customer ADV of 0.75%
Customer Total Consolidated Volume or
more.16
Third, Market Makers may qualify for
a reduction in the Tier 1 and Tier 2
Maker Fees described above if the
Market Maker has increased its volume
Total Affiliated Member or Affiliated Entity ADV
Tier 3 ...
executes 1.50% to less than 2.25% of Customer Total Consolidated Volume 18.
Tier 4 ...
executes 2.25% or more of Customer Total Consolidated Volume 20.
OR
42411
which adds liquidity in Penny Symbols
as a percentage of Customer Total
Consolidated Volume by at least 100%
over the Member’s December 2022
Market Maker volume which adds
liquidity in Penny Symbols as a
percentage of Customer Total
Consolidated Volume. Market Makers
that qualify will have their Tier 1 Maker
Fee reduced to $0.08 and their Tier 2
Maker Fee reduced to $0.04. Market
Makers with no volume in the Penny
Symbol add liquidity segment for the
month of December 2022 may qualify
for the reduced Tier 1 and Tier 2 Maker
Fees by having any new volume
considered as added volume.17
Proposal 1: Amend Qualifying Tier
Thresholds and Related Maker/Taker
Pricing
The Exchange now proposes to amend
the Table 3 qualifying tier thresholds in
the following manner. First, the
Exchange proposes to introduce new
Tiers 3 and 4 and related maker/taker
fees. Specifically, the Exchange
proposes that Tiers 3 and 4 will have
the following volume requirements:
Total Market Maker ADV
executes more than 0.25% and up to 0.45% of Customer
Total Consolidated Volume which adds liquidity in Regular
Orders.19
executes more than 0.45% of Customer Total Consolidated
Volume which adds liquidity in Regular Orders.
As proposed, Market Makers that
qualify for Tiers 3 and 4 will receive
Penny Symbol maker rebates of $0.05
per contract (Tier 3) and $0.10 per
contract (Tier 4). Additionally, Market
Makers that qualify for Tiers 3 and 4
will be assessed a Penny Symbol taker
fee of $0.50 per contract in both tiers,
which is the same Penny Symbol taker
fee they are charged today in Tiers 1 and
2. The note 2 incentive will also apply
to the Market Maker Tiers 3 and 4 taker
fees in Penny Symbols, like they do
today for Tiers 1 and 2. Specifically, the
Exchange will also offer Market Makers
the reduced Penny Symbol taker fees set
forth in the note 2 incentive (in lieu of
the $0.50 per contract Tier 3//Tier 4
taker fee) if they trade against Priority
Customer orders in Penny Symbols
entered by an Affiliated Member or
Affiliated Entity.21
In Non-Penny Symbols, Market
Makers that qualify for Tiers 3 and 4
will be charged maker fees of $0.15 per
contract (Tier 3) and $0.10 per contract
(Tier 4). Additionally, Market Makers
that qualify for Tiers 3 and 4 will be
assessed a Non-Penny Symbol taker fee
of $1.10 per contract in both tiers,
12 An ‘‘Affiliated Member’’ is a Member that
shares at least 75% common ownership with a
particular Member as reflected on the Member’s
Form BD, Schedule A.
13 An ‘‘Affiliated Entity’’ is a relationship between
an Appointed Market Maker and an Appointed OFP
for purposes of qualifying for certain pricing
specified in the Pricing Schedule. Market Makers
and OFPs are required to send an email to the
Exchange to appoint their counterpart, at least 3
business days prior to the last day of the month to
qualify for the next month. The Exchange will
acknowledge receipt of the emails and specify the
date the Affiliated Entity is eligible for applicable
pricing, as specified in the Pricing Schedule. Each
Affiliated Entity relationship will commence on the
1st of a month and may not be terminated prior to
the end of any month. An Affiliated Entity
relationship will automatically renew each month
until or unless either party terminates earlier in
writing by sending an email to the Exchange at least
3 business days prior to the last day of the month
to terminate for the next month. Affiliated Members
may not qualify as a counterparty comprising an
Affiliated Entity. Each Member may qualify for only
one (1) Affiliated Entity relationship at any given
time.
14 Total Affiliated Member or Affiliated Entity
Priority Customer ADV means all Priority Customer
ADV executed on the Exchange in all symbols and
order types, including volume executed by
Affiliated Members or Affiliated Entities. All
eligible volume from Affiliated Members or an
Affiliated Entity will be aggregated in determining
applicable tiers.
15 See Options 7, Section 3, Table 1, note 2 (‘‘note
2 incentive’’).
16 See Options 7, Section 3, Table 1, note 3 (‘‘note
3 incentive’’).
17 See Options 7, Section 3, Table 1, note 6 (‘‘note
6 incentive’’). The note 6 incentive will be available
to Market Makers until June 30, 2023.
18 1.50% of Customer Total Consolidated Volume
is approximately 517,800 contracts per day.
19 0.25% of Customer Total Consolidated Volume
is approximately 86,300 contracts per day. 0.45%
of Customer Total Consolidated Volume is
approximately 155,300 contracts per day.
20 2.25% of Customer Total Consolidated Volume
is approximately 776,700 contracts per day.
21 As discussed above, the note 2 incentive
currently provides that a Taker Fee of $0.20 per
contract applies instead when trading with Priority
Customer orders in Penny Symbols entered by an
Affiliated Member or Affiliated Entity. A Taker Fee
of $0.10 per contract applies instead when trading
with Priority Customer orders in Penny Symbols
entered by an Affiliated Member or Affiliated Entity
if the Member has a Total Affiliated Member or
Affiliated Entity Priority Customer ADV of 0.20%
to less than 0.75% Customer Total Consolidated
Volume. A Taker Fee of $0.00 per contract applies
instead when trading with Priority Customer orders
in Penny Symbols entered by an Affiliated Member
or Affiliated Entity if the Member has a Total
Affiliated Member or Affiliated Entity Priority
Customer ADV of 0.75% Customer Total
Consolidated Volume or more.
VerDate Sep<11>2014
19:33 Jun 29, 2023
Jkt 259001
PO 00000
Frm 00126
Fmt 4703
Sfmt 4703
E:\FR\FM\30JNN1.SGM
30JNN1
42412
Federal Register / Vol. 88, No. 125 / Friday, June 30, 2023 / Notices
which is the same Non-Penny Symbol
taker fee they are charged today in Tiers
1 and 2. The note 3 incentive will also
apply to Market Maker Tiers 3 and 4
taker fees in Non-Penny Symbols, like
they do today for Tiers 1 and 2.
Specifically, the Exchange will also
offer Market Makers the reduced NonPenny Symbol taker fees set forth in the
note 3 incentive (in lieu of the $1.10 per
contract Tier 3/Tier 4 taker fee) if they
trade against Priority Customer orders in
Non-Penny Symbols entered by an
Affiliated Member or Affiliated Entity.22
For non-Priority Customers except
Market Makers, the Exchange will
continue to assess the same maker/taker
Tiers
ddrumheller on DSK120RN23PROD with NOTICES1
Tier 2 ...
fees in Tiers 3 and 4 for Penny and NonPenny Symbols as the non-Priority
Customer maker/taker fees in Tiers 1
and 2 today. Specifically, all nonPriority Customers other than Market
Makers will be assessed the Penny
Symbol maker fee of $0.47 per contract
and Penny Symbol taker fee of $0.50 per
contract across Tiers 1–4. Additionally,
all non-Priority Customers except
Market Makers will be assessed the
Non-Penny Symbol maker fee of $0.90
per contract and Penny Symbol taker fee
of $1.10 per contract across Tiers 1–4.
As it relates to Priority Customers, the
Exchange will continue to assess no
maker fees in Tiers 3 and 4 in both
Total Affiliated Member or Affiliated Entity ADV
OR
executes 0.75% to less than 1.50% of Customer Total Consolidated Volume 23.
Total Market Maker ADV
executes more than 0.10% and up to 0.25% of Customer
Total Consolidated Volume which adds liquidity in Regular
Orders.
As described above, the Tier 2 Total
Affiliated Member or Affiliated Entity
ADV threshold and the Tier 2 Total
Market Maker ADV threshold will both
be modified to accommodate the
respective new thresholds.24 The Tier 1
qualifications will remain unchanged
under this proposal.
For the related Tier 1 and Tier 2
maker/taker fees, the Exchange proposes
to modify those fees for Market Makers
and Priority Customers in a number of
ways. For Market Makers, the Exchange
proposes to decrease the Penny Symbol
maker fees in Tier 1 and Tier 2 from
$0.20 to $0.10 per contract (Tier 1) and
from $0.10 to $0.00 per contract (Tier 2).
No other changes are being proposed to
the remaining Tiers 1 and 2 maker/taker
fees for Market Makers.
As it relates to Priority Customers, the
Exchange proposes to begin charging
those market participant orders taker
fees in Tiers 1 and 2. Specifically,
Priority Customers will be charged taker
fees of $0.15 per contract in both Tiers
1 and 2 for Penny Symbols. For NonPenny Symbols, the Exchange proposes
to charge Priority Customers taker fees
of $0.35 per contract (Tier 1) and $0.25
per contract (Tier 2).
While the maker/taker fees in Table 1
of Options 7, Section 3 for the majority
of market participants (i.e., Non-Nasdaq
MRX Market Makers, Firm Proprietary/
Broker-Dealers, and Professional
Customers) will not be impacted by the
changes proposed above, the proposal
will impact maker pricing for Market
Makers and taker pricing for Priority
Customers.25 In particular, qualifying
Market Makers will see a decrease in
their current Tier 1 and Tier 2 maker
fees in Penny Symbols, and be eligible
to receive the new Tier 3 and Tier 4
maker rebates in Penny Symbols.
Additionally, qualifying Market Makers
will be eligible for the new Tier 3 and
Tier 4 maker fees in Non-Penny
Symbols, which will be lower than the
current Non-Penny Symbol Tier 1 and
Tier 2 maker fees.26 Furthermore, the
Exchange will start charging Priority
Customers taker fees in Tiers 1–4 across
all symbols traded on the Exchange in
the manner described above. Today,
22 As discussed above, the note 3 incentive
currently provides that a Taker Fee of $0.90 per
contract applies instead when trading with Priority
Customer orders in Non-Penny Symbols entered by
an Affiliated Member or Affiliated Entity. A Taker
Fee of $0.50 per contract applies instead when
trading with Priority Customer orders in Non-Penny
Symbols entered by an Affiliated Member or
Affiliated Entity if the Member has a Total
Affiliated Member or Affiliated Entity Priority
Customer ADV of 0.20% to less than 0.75%
Customer Total Consolidated Volume. A Taker Fee
of $0.20 per contract applies instead when trading
with Priority Customer orders in Non-Penny
Symbols entered by an Affiliated Member or
Affiliated Entity if the Member has a Total
Affiliated Member or Affiliated Entity Priority
Customer ADV of 0.75% Customer Total
Consolidated Volume or more.
23 0.75% of Customer Total Consolidated Volume
is approximately 258,900 contracts per day.
24 As discussed above, the new Tier 3 Total
Affiliated Member or Affiliated Entity ADV
threshold will require Members to execute 1.50%
to less than 2.25% of Customer Total Consolidated
Volume. The new Tier 3 Total Market Maker ADV
threshold will require Market Makers to execute
more than 0.25% and up to 0.45% of Customer
Total Consolidated Volume which adds liquidity in
Regular Orders.
25 In particular, these market participants will
continue to be uniformly charged the same maker
fees of $0.47 per contract (Penny Symbols) and
$0.90 per contract (Non-Penny Symbols), regardless
of tier achieved. In addition, they will continue to
be uniformly charged the same taker fees of $0.50
per contract (Penny Symbols) and $1.10 per
VerDate Sep<11>2014
19:33 Jun 29, 2023
Jkt 259001
PO 00000
Frm 00127
Fmt 4703
Penny and Non-Penny Symbols,
identical to the Priority Customer Tiers
1 and 2 maker fees today. For the taker
fees in both Penny and Non-Penny
Symbols, the Exchange will charge
Priority Customers $0.15 per contract in
Tier 3 and $0.10 per contract in Tier 4.
Second, the Exchange proposes to
modify the existing qualifying tier
thresholds and related maker/taker
pricing for Tiers 1 and 2. As it relates
to the qualifying tier thresholds, the
Exchange proposes to amend the Tier 2
qualifications as follows:
Sfmt 4703
Priority Customers are not assessed any
taker fees under the Table 1 pricing
schedule.27
Proposal 2: Eliminate Note 6 Incentive
The Exchange proposes to eliminate
the note 6 incentive described above.
This temporary incentive was first
introduced to encourage Market Makers
to engage in substantial amounts of
liquidity adding activity in Penny
Symbols on the Exchange, as well as to
grow substantially the extent to which
they do so relative to a recent
benchmark month.28 The Exchange does
not believe that the note 6 incentive has
had the intended effect, and is therefore
eliminating it before the expiration date
of June 30, 2023 in order to redirect
resources into other pricing programs
intended to incentivize increased order
flow.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
contract (Non-Penny Symbols), regardless of tier
achieved.
26 However, as discussed above, Market Makers
will continue to be uniformly charged the same
taker fees $0.50 per contract (Penny Symbols) and
$1.10 per contract (Non-Penny Symbols), regardless
of tier achieved. They will also continue to be
eligible for the note 2 incentive (Penny Symbols)
and note 3 incentive (Non-Penny Symbols),
regardless of tier achieved.
27 However, as discussed above, Priority
Customers will continue to not be charged any
maker fees pursuant to the Table 1 pricing schedule
under this proposal.
28 See Securities Exchange Act Release No. 97148
(March 15, 2023), 88 FR 17068 (March 21, 2023)
(SR–MRX–2023–07).
E:\FR\FM\30JNN1.SGM
30JNN1
Federal Register / Vol. 88, No. 125 / Friday, June 30, 2023 / Notices
ddrumheller on DSK120RN23PROD with NOTICES1
of the Act,29 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,30 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among members and issuers and other
persons using any facility, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange’s proposed changes to
its schedule of credits are reasonable in
several respects. As a threshold matter,
the Exchange is subject to significant
competitive forces in the market for
options securities transaction services
that constrain its pricing determinations
in that market. The fact that this market
is competitive has long been recognized
by the courts. In NetCoalition v.
Securities and Exchange Commission,
the D.C. Circuit stated as follows: ‘‘[n]o
one disputes that competition for order
flow is ‘fierce.’ . . . As the SEC
explained, ‘[i]n the U.S. national market
system, buyers and sellers of securities,
and the broker-dealers that act as their
order-routing agents, have a wide range
of choices of where to route orders for
execution’; [and] ‘no exchange can
afford to take its market share
percentages for granted’ because ‘no
exchange possesses a monopoly,
regulatory or otherwise, in the execution
of order flow from broker
dealers’. . . .’’ 31
The Commission and the courts have
repeatedly expressed their preference
for competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. In Regulation NMS, while
adopting a series of steps to improve the
current market model, 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.’’ 32
Numerous indicia demonstrate the
competitive nature of this market. For
example, clear substitutes to the
Exchange exist in the market for options
security transaction services. The
Exchange is only one of sixteen options
exchanges to which market participants
may direct their order flow.
29 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
31 NetCoalition v. SEC, 615 F.3d 525, 539 (D.C.
Cir. 2010) (quoting Securities Exchange Act Release
No. 59039 (December 2, 2008), 73 FR 74770, 74782–
83 (December 9, 2008) (SR–NYSEArca–2006–21)).
32 Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
30 15
VerDate Sep<11>2014
19:33 Jun 29, 2023
Jkt 259001
Within this environment, market
participants can freely and often do shift
their order flow among the Exchange
and competing venues in response to
changes in their respective pricing
schedules. As such, the proposal
represents a reasonable attempt by the
Exchange to increase its liquidity and
market share relative to its competitors.
Proposal 1: Amend Qualifying Tier
Thresholds and Related Maker/Taker
Pricing
The Exchange believes that its
proposal to amend the qualifying tier
thresholds and related maker/taker
pricing are reasonable for several
reasons. The Exchange believes that the
modified volume threshold in Tier 2
and the new volume thresholds in Tiers
3 and 4 are reasonably designed to
encourage Market Makers and Priority
Customers to increase their liquidity
adding activity to qualify for lower
maker fees or maker rebates (for Market
Makers only) and to increase their
liquidity removing activity to qualify for
the lower taker fees (for Priority
Customers only).33 The Exchange
believes that adding new Tiers 3 and 4
will encourage Market Makers and
Priority Customers to strive to achieve
the higher tiers by submitting the
requisite amount of order flow. An
overall increase in activity would
deepen the Exchange’s liquidity pool,
support the quality of price discovery,
and promote market quality to benefit of
all market participants.
The Exchange also believes that the
proposed maker/taker pricing in Table 1
of Options 7, Section 3 is reasonable for
the reasons that follow. First, the
Exchange believes that it is reasonable
to assess qualifying Market Makers
lower maker fees or maker rebates,
depending on the tier achieved, in the
manner described above.34 The
proposed structure will encourage
Market Makers to increase their
liquidity providing activity on the
Exchange, which would support the
33 As discussed above, Non-Nasdaq MRX Market
Makers, Firm Proprietary/Broker-Dealers, and
Professional Customers will continue to be
uniformly charged the same maker fees of $0.47 per
contract (Penny Symbols) and $0.90 per contract
(Non-Penny Symbols), regardless of tier achieved.
In addition, they will continue to be uniformly
charged the same taker fees of $0.50 per contract
(Penny Symbols) and $1.10 per contract (NonPenny Symbols), regardless of tier achieved.
34 In particular, qualifying Market Makers will see
a decrease in their current Tier 1 and Tier 2 maker
fees in Penny Symbols, and be eligible to receive
the new Tier 3 and Tier 4 maker rebates in Penny
Symbols. Additionally, qualifying Market Makers
will be eligible for the new Tier 3 and Tier 4 maker
fees in Non-Penny Symbols, which will be lower
than the current Non-Penny Symbol Tier 1 and Tier
2 maker fees.
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
42413
quality of price discovery on the
Exchange, provide additional liquidity
for incoming orders, and create
additional opportunities for market
participants to trade. Second, the
Exchange believes its proposal to begin
charging Priority Customers taker fees in
Tiers 1–4 across all symbols traded on
the Exchange in the manner described
above is reasonable because Priority
Customers will continue to be assessed
the lowest taker fees compared to any
other market participant on the
Exchange.35 Accordingly, the Exchange
believes that the proposed taker fees
will remain attractive and continue to
incentivize more executions in Priority
Customer orders on the Exchange.
The Exchange further believes that the
proposed changes to the qualifying tier
thresholds and related maker/taker
pricing in the manner described above
are equitable and not unfairly
discriminatory as the proposed changes
will apply uniformly to all similarly
situated participants. The maker/taker
fees in Table 1 of Options 7, Section 3
for the majority of market participants
(i.e., Non-Nasdaq MRX Market Makers,
Firm Proprietary/Broker-Dealers, and
Professional Customers) will not be
impacted by the Exchange’s proposal as
they will continue to be charged the
same pricing they are assessed today,
regardless of tier achieved.36 The
proposal, however, will impact maker
pricing for Market Makers and taker
pricing for Priority Customers, which
will ultimately result in these market
participants receiving more favorable
pricing compared to other market
participants under amended Table 1 of
Options 7, Section 3. The Exchange
believes the proposed structure
continues to be equitable and not
unfairly discriminatory as the Exchange
has historically provided Market Makers
and Priority Customers with more
favorable pricing. Furthermore, Market
Makers, unlike other market
participants add value to the Exchange
through quoting obligations and their
commitment of capital. Additionally,
Priority Customer liquidity benefits all
market participants by providing more
trading opportunities, which attracts
market makers. An increase in the
35 As proposed, Priority Customers will now be
assessed Penny Symbol taker fees of $0.15 per
contract (Tiers 1–3) and $0.10 per contract (Tier 4).
For all non-Priority Customers, this Penny Symbol
taker fee is $0.50 per contract (regardless of tier
achieved). Additionally, Priority Customers will
now be assessed Non-Penny Symbol taker fees of
$0.35 per contract (Tier 1), $0.25 per contract (Tier
2), $0.15 per contract (Tier 3), and $0.10 per
contract (Tier 4). For all non-Priority Customers,
this Non-Penny Symbol taker fee is $1.10 per
contract.
36 See supra note 25.
E:\FR\FM\30JNN1.SGM
30JNN1
42414
Federal Register / Vol. 88, No. 125 / Friday, June 30, 2023 / Notices
activity of these market participants in
turn facilitates tighter spreads, which
may cause an additional corresponding
increase in order flow from other market
participants, to the benefit of all market
participants.
ddrumheller on DSK120RN23PROD with NOTICES1
Proposal 2: Eliminate Note 6 Incentive
The Exchange believes that its
proposal to eliminate the note 6
incentive described above is reasonable
because this temporary incentive has
not had its intended effect of
incentivizing Market Makers to increase
their liquidity adding activity in Penny
Symbols on the Exchange over the
stipulated time period. As such, the
Exchange is eliminating the note 6
incentive in order to redirect future
resources into other pricing programs
intended to incentivize increased order
flow.
The Exchange also believes that its
proposal is equitable and not unfairly
discriminatory as the note 6 incentive
will be eliminated for all Market
Makers. Further, the Exchange notes
that the proposed changes will not
adversely impact any market
participant’s ability to otherwise qualify
for reduced fees or rebates offered under
other programs in the Pricing Schedule.
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. In terms of
intra-market competition, the Exchange
does not believe that its proposal will
place any category of market participant
at a competitive disadvantage. As
discussed above, while parts of the
Exchange’s proposal provide more
incentives for certain order flow and
activity on the Exchange (i.e., Market
Maker liquidity adding activity and
Priority Customer liquidity removing
activity), the proposed changes are
ultimately aimed at attracting greater
liquidity to the Exchange, which
benefits all market participants in the
quality of order interaction.
In terms of inter-market competition,
the Exchange notes that it operates in a
highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
excessive, or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
fees to remain competitive with other
exchanges and with alternative trading
systems that have been exempted from
compliance with the statutory standards
VerDate Sep<11>2014
19:33 Jun 29, 2023
Jkt 259001
applicable to exchanges. Because
competitors are free to modify their own
fees in response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. In sum, if the changes proposed
herein are unattractive to market
participants, it is likely that the
Exchange will lose market share as a
result. Accordingly, the Exchange does
not believe that the proposed changes
will impair the ability of members or
competing order execution venues to
maintain their competitive standing in
the financial markets.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act 37 and Rule
19b–4(f)(2) 38 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: (i)
necessary or appropriate in the public
interest; (ii) for the protection of
investors; or (iii) 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–
MRX–2023–11 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
37 15
38 17
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00129
Fmt 4703
Sfmt 4703
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to file
number SR–MRX–2023–11. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–MRX–2023–11 and should be
submitted on or before July 21, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.39
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 2023–13895 Filed 6–29–23; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice: 12114]
Amendment of the Designations of
ISIL-Libya and Real IRA (and Other
Aliases) as Specially Designated
Global Terrorists
Based upon a review of the
administrative records assembled in this
matter, and in consultation with the
Attorney General and the Secretary of
the Treasury, I have concluded that
there is a sufficient factual basis to find
that ISIL-Libya (and other aliases) uses
39 17
E:\FR\FM\30JNN1.SGM
CFR 200.30–3(a)(12).
30JNN1
]]>Agencies
[Federal Register Volume 88, Number 125 (Friday, June 30, 2023)]
[Notices]
[Pages 42409-42414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13895]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97800; File No. SR-MRX-2023-11]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Pricing Schedule at Options 7, Section 3
June 26, 2023.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 12, 2023, Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
[[Page 42410]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the Exchange's Pricing Schedule at
Options 7, Section 3 (Regular Order Fees and Rebates).
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/mrx/rules, at the
principal office of the Exchange, and at the Commission's Public
Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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 the Exchange's
Pricing Schedule at Options 7, Section 3 (Regular Order Fees and
Rebates). The Exchange initially filed the proposed pricing changes on
June 1, 2023 (SR-MRX-2023-09). On June 12, 2023, the Exchange withdrew
that filing and submitted this filing.
Background
Today, as set forth in Table 1 of Options 7, Section 3, the
Exchange assesses the following maker/taker fees for regular orders in
Penny and Non-Penny Symbols:
----------------------------------------------------------------------------------------------------------------
Maker fee Maker fee Taker fee Taker fee
Market participant Tier 1 Tier 2 Tier 1 Tier 2
----------------------------------------------------------------------------------------------------------------
Penny Symbols
----------------------------------------------------------------------------------------------------------------
Market Maker \3\............................................ $0.20 $0.10 $0.50 $0.50
Non-Nasdaq MRX Market Maker (FarMM) \4\..................... 0.47 0.47 0.50 0.50
Firm Proprietary \5\/Broker-Dealer \6\...................... 0.47 0.47 0.50 0.50
Professional Customer \7\................................... 0.47 0.47 0.50 0.50
Priority Customer \8\....................................... 0.00 0.00 0.00 0.00
----------------------------------------------------------------------------------------------------------------
Non-Penny Symbols
----------------------------------------------------------------------------------------------------------------
Market Maker................................................ 0.35 0.20 1.10 1.10
Non-Nasdaq MRX Market Maker (FarMM)......................... 0.90 0.90 1.10 1.10
Firm Proprietary/Broker-Dealer.............................. 0.90 0.90 1.10 1.10
Professional Customer....................................... 0.90 0.90 1.10 1.10
Priority Customer........................................... 0.00 0.00 0.00 0.00
----------------------------------------------------------------------------------------------------------------
Market participants are charged the above Tier 1 and Tier 2 maker/
taker fees (or are eligible for free executions) if they meet the
applicable tier thresholds based on Total Affiliated Member or
Affiliated Entity ADV \9\ in Table 3 of Options 7, Section 3. Market
Makers may also alternatively qualify for these fees if they meet the
applicable tier thresholds based on Total Market Maker ADV \10\ in
Table 3. Specifically:
---------------------------------------------------------------------------
\3\ The term ``Market Makers'' refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively. See Options 1,
Section 1(a)(21).
\4\ A ``Non-Nasdaq MRX Market Maker'' is a market maker as
defined in Section 3(a)(38) of the Securities Exchange Act of 1934,
as amended, registered in the same options class on another options
exchange.
\5\ A ``Firm Proprietary'' order is an order submitted by a
Member for its own proprietary account.
\6\ A ``Broker-Dealer'' order is an order submitted by a Member
for a broker-dealer account that is not its own proprietary account.
\7\ A ``Professional Customer'' is a person or entity that is
not a broker/dealer and is not a Priority Customer.
\8\ A ``Priority Customer'' is a person or entity that is not a
broker/dealer in securities, and does not place more than 390 orders
in listed options per day on average during a calendar month for its
own beneficial account(s), as defined in Nasdaq MRX Options 1,
Section 1(a)(36).
\9\ Total Affiliated Member or Affiliated Entity ADV means all
ADV executed on the Exchange in all symbols and order types,
including volume executed by Affiliated Members or Affiliated
Entities. All eligible volume from Affiliated Members or an
Affiliated Entity will be aggregated in determining applicable
tiers.
\10\ Total Market Maker ADV means all Market Maker ADV executed
on the Exchange in all symbols and order types, including volume
executed by Affiliated Members or Affiliated Entities. All eligible
volume from Affiliated Members or an Affiliated Entity will be
aggregated in determining applicable tiers.
\11\ ``Customer Total Consolidated Volume'' means the total
volume cleared at The Options Clearing Corporation in the Customer
range in equity and ETF options in that month.
------------------------------------------------------------------------
Total Affiliated
Tiers Member or Affiliated OR Total Market Maker
Entity ADV ADV
------------------------------------------------------------------------
Tier 1........... executes 0.00% to less executes up to 0.10%
than 0.75% of of Customer Total
Customer Total Consolidated Volume
Consolidated Volume which adds liquidity
\11\. in Regular Orders.
Tier 2........... executes 0.75% or more executes more than
of Customer Total 0.10% of Customer
Consolidated Volume. Total Consolidated
Volume which adds
liquidity in Regular
Orders.
------------------------------------------------------------------------
In addition, the Exchange currently offers Market Makers a number
of ways to reduce their maker/taker fees described above. First, Market
Makers may qualify for reduced taker fees in Penny Symbols when trading
against Priority Customer orders in Penny Symbols entered by an
Affiliated
[[Page 42411]]
Member \12\ or Affiliated Entity.\13\ In lieu of the $0.50 per contract
Tier 1/Tier 2 Market Maker Taker Fee, a Taker Fee of $0.20 per contract
applies instead when trading with Priority Customer orders in Penny
Symbols entered by an Affiliated Member or Affiliated Entity. A Taker
Fee of $0.10 per contract applies instead when trading with Priority
Customer orders in Penny Symbols entered by an Affiliated Member or
Affiliated Entity if the Member has a Total Affiliated Member or
Affiliated Entity Priority Customer ADV \14\ of 0.20% to less than
0.75% Customer Total Consolidated Volume. A Taker Fee of $0.00 per
contract applies instead when trading with Priority Customer orders in
Penny Symbols entered by an Affiliated Member or Affiliated Entity if
the Member has a Total Affiliated Member or Affiliated Entity Priority
Customer ADV of 0.75% Customer Total Consolidated Volume or more.\15\
---------------------------------------------------------------------------
\12\ An ``Affiliated Member'' is a Member that shares at least
75% common ownership with a particular Member as reflected on the
Member's Form BD, Schedule A.
\13\ An ``Affiliated Entity'' is a relationship between an
Appointed Market Maker and an Appointed OFP for purposes of
qualifying for certain pricing specified in the Pricing Schedule.
Market Makers and OFPs are required to send an email to the Exchange
to appoint their counterpart, at least 3 business days prior to the
last day of the month to qualify for the next month. The Exchange
will acknowledge receipt of the emails and specify the date the
Affiliated Entity is eligible for applicable pricing, as specified
in the Pricing Schedule. Each Affiliated Entity relationship will
commence on the 1st of a month and may not be terminated prior to
the end of any month. An Affiliated Entity relationship will
automatically renew each month until or unless either party
terminates earlier in writing by sending an email to the Exchange at
least 3 business days prior to the last day of the month to
terminate for the next month. Affiliated Members may not qualify as
a counterparty comprising an Affiliated Entity. Each Member may
qualify for only one (1) Affiliated Entity relationship at any given
time.
\14\ Total Affiliated Member or Affiliated Entity Priority
Customer ADV means all Priority Customer ADV executed on the
Exchange in all symbols and order types, including volume executed
by Affiliated Members or Affiliated Entities. All eligible volume
from Affiliated Members or an Affiliated Entity will be aggregated
in determining applicable tiers.
\15\ See Options 7, Section 3, Table 1, note 2 (``note 2
incentive'').
---------------------------------------------------------------------------
Second, Market Makers may currently qualify for reduced taker fees
in Non-Penny Symbols when trading against Priority Customer orders in
Non-Penny Symbols entered by an Affiliated Member or Affiliated Entity.
In lieu of the $1.10 per contract Tier 1/Tier 2 Market Maker Taker Fee,
a Taker Fee of $0.90 per contract applies instead when trading with
Priority Customer orders in Non-Penny Symbols entered by an Affiliated
Member or Affiliated Entity. A Taker Fee of $0.50 per contract applies
instead when trading with Priority Customer orders in Non-Penny Symbols
entered by an Affiliated Member or Affiliated Entity if the Member has
a Total Affiliated Member or Affiliated Entity Priority Customer ADV of
0.20% to less than 0.75% Customer Total Consolidated Volume. A Taker
Fee of $0.20 per contract applies instead when trading with Priority
Customer orders in Non-Penny Symbols entered by an Affiliated Member or
Affiliated Entity if the Member has a Total Affiliated Member or
Affiliated Entity Priority Customer ADV of 0.75% Customer Total
Consolidated Volume or more.\16\
---------------------------------------------------------------------------
\16\ See Options 7, Section 3, Table 1, note 3 (``note 3
incentive'').
---------------------------------------------------------------------------
Third, Market Makers may qualify for a reduction in the Tier 1 and
Tier 2 Maker Fees described above if the Market Maker has increased its
volume which adds liquidity in Penny Symbols as a percentage of
Customer Total Consolidated Volume by at least 100% over the Member's
December 2022 Market Maker volume which adds liquidity in Penny Symbols
as a percentage of Customer Total Consolidated Volume. Market Makers
that qualify will have their Tier 1 Maker Fee reduced to $0.08 and
their Tier 2 Maker Fee reduced to $0.04. Market Makers with no volume
in the Penny Symbol add liquidity segment for the month of December
2022 may qualify for the reduced Tier 1 and Tier 2 Maker Fees by having
any new volume considered as added volume.\17\
---------------------------------------------------------------------------
\17\ See Options 7, Section 3, Table 1, note 6 (``note 6
incentive''). The note 6 incentive will be available to Market
Makers until June 30, 2023.
---------------------------------------------------------------------------
Proposal 1: Amend Qualifying Tier Thresholds and Related Maker/Taker
Pricing
The Exchange now proposes to amend the Table 3 qualifying tier
thresholds in the following manner. First, the Exchange proposes to
introduce new Tiers 3 and 4 and related maker/taker fees. Specifically,
the Exchange proposes that Tiers 3 and 4 will have the following volume
requirements:
---------------------------------------------------------------------------
\18\ 1.50% of Customer Total Consolidated Volume is
approximately 517,800 contracts per day.
\19\ 0.25% of Customer Total Consolidated Volume is
approximately 86,300 contracts per day. 0.45% of Customer Total
Consolidated Volume is approximately 155,300 contracts per day.
\20\ 2.25% of Customer Total Consolidated Volume is
approximately 776,700 contracts per day.
------------------------------------------------------------------------
Total Affiliated
Tiers Member or Affiliated OR Total Market Maker
Entity ADV ADV
------------------------------------------------------------------------
Tier 3........... executes 1.50% to less executes more than
than 2.25% of 0.25% and up to
Customer Total 0.45% of Customer
Consolidated Volume Total Consolidated
\18\. Volume which adds
liquidity in Regular
Orders.\19\
Tier 4........... executes 2.25% or more executes more than
of Customer Total 0.45% of Customer
Consolidated Volume Total Consolidated
\20\. Volume which adds
liquidity in Regular
Orders.
------------------------------------------------------------------------
As proposed, Market Makers that qualify for Tiers 3 and 4 will
receive Penny Symbol maker rebates of $0.05 per contract (Tier 3) and
$0.10 per contract (Tier 4). Additionally, Market Makers that qualify
for Tiers 3 and 4 will be assessed a Penny Symbol taker fee of $0.50
per contract in both tiers, which is the same Penny Symbol taker fee
they are charged today in Tiers 1 and 2. The note 2 incentive will also
apply to the Market Maker Tiers 3 and 4 taker fees in Penny Symbols,
like they do today for Tiers 1 and 2. Specifically, the Exchange will
also offer Market Makers the reduced Penny Symbol taker fees set forth
in the note 2 incentive (in lieu of the $0.50 per contract Tier 3//Tier
4 taker fee) if they trade against Priority Customer orders in Penny
Symbols entered by an Affiliated Member or Affiliated Entity.\21\
---------------------------------------------------------------------------
\21\ As discussed above, the note 2 incentive currently provides
that a Taker Fee of $0.20 per contract applies instead when trading
with Priority Customer orders in Penny Symbols entered by an
Affiliated Member or Affiliated Entity. A Taker Fee of $0.10 per
contract applies instead when trading with Priority Customer orders
in Penny Symbols entered by an Affiliated Member or Affiliated
Entity if the Member has a Total Affiliated Member or Affiliated
Entity Priority Customer ADV of 0.20% to less than 0.75% Customer
Total Consolidated Volume. A Taker Fee of $0.00 per contract applies
instead when trading with Priority Customer orders in Penny Symbols
entered by an Affiliated Member or Affiliated Entity if the Member
has a Total Affiliated Member or Affiliated Entity Priority Customer
ADV of 0.75% Customer Total Consolidated Volume or more.
---------------------------------------------------------------------------
In Non-Penny Symbols, Market Makers that qualify for Tiers 3 and 4
will be charged maker fees of $0.15 per contract (Tier 3) and $0.10 per
contract (Tier 4). Additionally, Market Makers that qualify for Tiers 3
and 4 will be assessed a Non-Penny Symbol taker fee of $1.10 per
contract in both tiers,
[[Page 42412]]
which is the same Non-Penny Symbol taker fee they are charged today in
Tiers 1 and 2. The note 3 incentive will also apply to Market Maker
Tiers 3 and 4 taker fees in Non-Penny Symbols, like they do today for
Tiers 1 and 2. Specifically, the Exchange will also offer Market Makers
the reduced Non-Penny Symbol taker fees set forth in the note 3
incentive (in lieu of the $1.10 per contract Tier 3/Tier 4 taker fee)
if they trade against Priority Customer orders in Non-Penny Symbols
entered by an Affiliated Member or Affiliated Entity.\22\
---------------------------------------------------------------------------
\22\ As discussed above, the note 3 incentive currently provides
that a Taker Fee of $0.90 per contract applies instead when trading
with Priority Customer orders in Non-Penny Symbols entered by an
Affiliated Member or Affiliated Entity. A Taker Fee of $0.50 per
contract applies instead when trading with Priority Customer orders
in Non-Penny Symbols entered by an Affiliated Member or Affiliated
Entity if the Member has a Total Affiliated Member or Affiliated
Entity Priority Customer ADV of 0.20% to less than 0.75% Customer
Total Consolidated Volume. A Taker Fee of $0.20 per contract applies
instead when trading with Priority Customer orders in Non-Penny
Symbols entered by an Affiliated Member or Affiliated Entity if the
Member has a Total Affiliated Member or Affiliated Entity Priority
Customer ADV of 0.75% Customer Total Consolidated Volume or more.
---------------------------------------------------------------------------
For non-Priority Customers except Market Makers, the Exchange will
continue to assess the same maker/taker fees in Tiers 3 and 4 for Penny
and Non-Penny Symbols as the non-Priority Customer maker/taker fees in
Tiers 1 and 2 today. Specifically, all non-Priority Customers other
than Market Makers will be assessed the Penny Symbol maker fee of $0.47
per contract and Penny Symbol taker fee of $0.50 per contract across
Tiers 1-4. Additionally, all non-Priority Customers except Market
Makers will be assessed the Non-Penny Symbol maker fee of $0.90 per
contract and Penny Symbol taker fee of $1.10 per contract across Tiers
1-4.
As it relates to Priority Customers, the Exchange will continue to
assess no maker fees in Tiers 3 and 4 in both Penny and Non-Penny
Symbols, identical to the Priority Customer Tiers 1 and 2 maker fees
today. For the taker fees in both Penny and Non-Penny Symbols, the
Exchange will charge Priority Customers $0.15 per contract in Tier 3
and $0.10 per contract in Tier 4.
Second, the Exchange proposes to modify the existing qualifying
tier thresholds and related maker/taker pricing for Tiers 1 and 2. As
it relates to the qualifying tier thresholds, the Exchange proposes to
amend the Tier 2 qualifications as follows:
------------------------------------------------------------------------
Total Affiliated
Tiers Member or Affiliated OR Total Market Maker
Entity ADV ADV
------------------------------------------------------------------------
Tier 2........... executes 0.75% to less executes more than
than 1.50% of 0.10% and up to
Customer Total 0.25% of Customer
Consolidated Volume Total Consolidated
\23\. Volume which adds
liquidity in Regular
Orders.
------------------------------------------------------------------------
As described above, the Tier 2 Total Affiliated Member or
Affiliated Entity ADV threshold and the Tier 2 Total Market Maker ADV
threshold will both be modified to accommodate the respective new
thresholds.\24\ The Tier 1 qualifications will remain unchanged under
this proposal.
---------------------------------------------------------------------------
\23\ 0.75% of Customer Total Consolidated Volume is
approximately 258,900 contracts per day.
\24\ As discussed above, the new Tier 3 Total Affiliated Member
or Affiliated Entity ADV threshold will require Members to execute
1.50% to less than 2.25% of Customer Total Consolidated Volume. The
new Tier 3 Total Market Maker ADV threshold will require Market
Makers to execute more than 0.25% and up to 0.45% of Customer Total
Consolidated Volume which adds liquidity in Regular Orders.
---------------------------------------------------------------------------
For the related Tier 1 and Tier 2 maker/taker fees, the Exchange
proposes to modify those fees for Market Makers and Priority Customers
in a number of ways. For Market Makers, the Exchange proposes to
decrease the Penny Symbol maker fees in Tier 1 and Tier 2 from $0.20 to
$0.10 per contract (Tier 1) and from $0.10 to $0.00 per contract (Tier
2). No other changes are being proposed to the remaining Tiers 1 and 2
maker/taker fees for Market Makers.
As it relates to Priority Customers, the Exchange proposes to begin
charging those market participant orders taker fees in Tiers 1 and 2.
Specifically, Priority Customers will be charged taker fees of $0.15
per contract in both Tiers 1 and 2 for Penny Symbols. For Non-Penny
Symbols, the Exchange proposes to charge Priority Customers taker fees
of $0.35 per contract (Tier 1) and $0.25 per contract (Tier 2).
While the maker/taker fees in Table 1 of Options 7, Section 3 for
the majority of market participants (i.e., Non-Nasdaq MRX Market
Makers, Firm Proprietary/Broker-Dealers, and Professional Customers)
will not be impacted by the changes proposed above, the proposal will
impact maker pricing for Market Makers and taker pricing for Priority
Customers.\25\ In particular, qualifying Market Makers will see a
decrease in their current Tier 1 and Tier 2 maker fees in Penny
Symbols, and be eligible to receive the new Tier 3 and Tier 4 maker
rebates in Penny Symbols. Additionally, qualifying Market Makers will
be eligible for the new Tier 3 and Tier 4 maker fees in Non-Penny
Symbols, which will be lower than the current Non-Penny Symbol Tier 1
and Tier 2 maker fees.\26\ Furthermore, the Exchange will start
charging Priority Customers taker fees in Tiers 1-4 across all symbols
traded on the Exchange in the manner described above. Today, Priority
Customers are not assessed any taker fees under the Table 1 pricing
schedule.\27\
---------------------------------------------------------------------------
\25\ In particular, these market participants will continue to
be uniformly charged the same maker fees of $0.47 per contract
(Penny Symbols) and $0.90 per contract (Non-Penny Symbols),
regardless of tier achieved. In addition, they will continue to be
uniformly charged the same taker fees of $0.50 per contract (Penny
Symbols) and $1.10 per contract (Non-Penny Symbols), regardless of
tier achieved.
\26\ However, as discussed above, Market Makers will continue to
be uniformly charged the same taker fees $0.50 per contract (Penny
Symbols) and $1.10 per contract (Non-Penny Symbols), regardless of
tier achieved. They will also continue to be eligible for the note 2
incentive (Penny Symbols) and note 3 incentive (Non-Penny Symbols),
regardless of tier achieved.
\27\ However, as discussed above, Priority Customers will
continue to not be charged any maker fees pursuant to the Table 1
pricing schedule under this proposal.
---------------------------------------------------------------------------
Proposal 2: Eliminate Note 6 Incentive
The Exchange proposes to eliminate the note 6 incentive described
above. This temporary incentive was first introduced to encourage
Market Makers to engage in substantial amounts of liquidity adding
activity in Penny Symbols on the Exchange, as well as to grow
substantially the extent to which they do so relative to a recent
benchmark month.\28\ The Exchange does not believe that the note 6
incentive has had the intended effect, and is therefore eliminating it
before the expiration date of June 30, 2023 in order to redirect
resources into other pricing programs intended to incentivize increased
order flow.
---------------------------------------------------------------------------
\28\ See Securities Exchange Act Release No. 97148 (March 15,
2023), 88 FR 17068 (March 21, 2023) (SR-MRX-2023-07).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b)
[[Page 42413]]
of the Act,\29\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\30\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among members and issuers and other persons using any facility,
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\29\ 15 U.S.C. 78f(b).
\30\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange's proposed changes to its schedule of credits are
reasonable in several respects. As a threshold matter, the Exchange is
subject to significant competitive forces in the market for options
securities transaction services that constrain its pricing
determinations in that market. The fact that this market is competitive
has long been recognized by the courts. In NetCoalition v. Securities
and Exchange Commission, the D.C. Circuit stated as follows: ``[n]o one
disputes that competition for order flow is `fierce.' . . . As the SEC
explained, `[i]n the U.S. national market system, buyers and sellers of
securities, and the broker-dealers that act as their order-routing
agents, have a wide range of choices of where to route orders for
execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .'' \31\
---------------------------------------------------------------------------
\31\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-
21)).
---------------------------------------------------------------------------
The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, 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.'' \32\
---------------------------------------------------------------------------
\32\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------
Numerous indicia demonstrate the competitive nature of this market.
For example, clear substitutes to the Exchange exist in the market for
options security transaction services. The Exchange is only one of
sixteen options exchanges to which market participants may direct their
order flow.
Within this environment, market participants can freely and often
do shift their order flow among the Exchange and competing venues in
response to changes in their respective pricing schedules. As such, the
proposal represents a reasonable attempt by the Exchange to increase
its liquidity and market share relative to its competitors.
Proposal 1: Amend Qualifying Tier Thresholds and Related Maker/Taker
Pricing
The Exchange believes that its proposal to amend the qualifying
tier thresholds and related maker/taker pricing are reasonable for
several reasons. The Exchange believes that the modified volume
threshold in Tier 2 and the new volume thresholds in Tiers 3 and 4 are
reasonably designed to encourage Market Makers and Priority Customers
to increase their liquidity adding activity to qualify for lower maker
fees or maker rebates (for Market Makers only) and to increase their
liquidity removing activity to qualify for the lower taker fees (for
Priority Customers only).\33\ The Exchange believes that adding new
Tiers 3 and 4 will encourage Market Makers and Priority Customers to
strive to achieve the higher tiers by submitting the requisite amount
of order flow. An overall increase in activity would deepen the
Exchange's liquidity pool, support the quality of price discovery, and
promote market quality to benefit of all market participants.
---------------------------------------------------------------------------
\33\ As discussed above, Non-Nasdaq MRX Market Makers, Firm
Proprietary/Broker-Dealers, and Professional Customers will continue
to be uniformly charged the same maker fees of $0.47 per contract
(Penny Symbols) and $0.90 per contract (Non-Penny Symbols),
regardless of tier achieved. In addition, they will continue to be
uniformly charged the same taker fees of $0.50 per contract (Penny
Symbols) and $1.10 per contract (Non-Penny Symbols), regardless of
tier achieved.
---------------------------------------------------------------------------
The Exchange also believes that the proposed maker/taker pricing in
Table 1 of Options 7, Section 3 is reasonable for the reasons that
follow. First, the Exchange believes that it is reasonable to assess
qualifying Market Makers lower maker fees or maker rebates, depending
on the tier achieved, in the manner described above.\34\ The proposed
structure will encourage Market Makers to increase their liquidity
providing activity on the Exchange, which would support the quality of
price discovery on the Exchange, provide additional liquidity for
incoming orders, and create additional opportunities for market
participants to trade. Second, the Exchange believes its proposal to
begin charging Priority Customers taker fees in Tiers 1-4 across all
symbols traded on the Exchange in the manner described above is
reasonable because Priority Customers will continue to be assessed the
lowest taker fees compared to any other market participant on the
Exchange.\35\ Accordingly, the Exchange believes that the proposed
taker fees will remain attractive and continue to incentivize more
executions in Priority Customer orders on the Exchange.
---------------------------------------------------------------------------
\34\ In particular, qualifying Market Makers will see a decrease
in their current Tier 1 and Tier 2 maker fees in Penny Symbols, and
be eligible to receive the new Tier 3 and Tier 4 maker rebates in
Penny Symbols. Additionally, qualifying Market Makers will be
eligible for the new Tier 3 and Tier 4 maker fees in Non-Penny
Symbols, which will be lower than the current Non-Penny Symbol Tier
1 and Tier 2 maker fees.
\35\ As proposed, Priority Customers will now be assessed Penny
Symbol taker fees of $0.15 per contract (Tiers 1-3) and $0.10 per
contract (Tier 4). For all non-Priority Customers, this Penny Symbol
taker fee is $0.50 per contract (regardless of tier achieved).
Additionally, Priority Customers will now be assessed Non-Penny
Symbol taker fees of $0.35 per contract (Tier 1), $0.25 per contract
(Tier 2), $0.15 per contract (Tier 3), and $0.10 per contract (Tier
4). For all non-Priority Customers, this Non-Penny Symbol taker fee
is $1.10 per contract.
---------------------------------------------------------------------------
The Exchange further believes that the proposed changes to the
qualifying tier thresholds and related maker/taker pricing in the
manner described above are equitable and not unfairly discriminatory as
the proposed changes will apply uniformly to all similarly situated
participants. The maker/taker fees in Table 1 of Options 7, Section 3
for the majority of market participants (i.e., Non-Nasdaq MRX Market
Makers, Firm Proprietary/Broker-Dealers, and Professional Customers)
will not be impacted by the Exchange's proposal as they will continue
to be charged the same pricing they are assessed today, regardless of
tier achieved.\36\ The proposal, however, will impact maker pricing for
Market Makers and taker pricing for Priority Customers, which will
ultimately result in these market participants receiving more favorable
pricing compared to other market participants under amended Table 1 of
Options 7, Section 3. The Exchange believes the proposed structure
continues to be equitable and not unfairly discriminatory as the
Exchange has historically provided Market Makers and Priority Customers
with more favorable pricing. Furthermore, Market Makers, unlike other
market participants add value to the Exchange through quoting
obligations and their commitment of capital. Additionally, Priority
Customer liquidity benefits all market participants by providing more
trading opportunities, which attracts market makers. An increase in the
[[Page 42414]]
activity of these market participants in turn facilitates tighter
spreads, which may cause an additional corresponding increase in order
flow from other market participants, to the benefit of all market
participants.
---------------------------------------------------------------------------
\36\ See supra note 25.
---------------------------------------------------------------------------
Proposal 2: Eliminate Note 6 Incentive
The Exchange believes that its proposal to eliminate the note 6
incentive described above is reasonable because this temporary
incentive has not had its intended effect of incentivizing Market
Makers to increase their liquidity adding activity in Penny Symbols on
the Exchange over the stipulated time period. As such, the Exchange is
eliminating the note 6 incentive in order to redirect future resources
into other pricing programs intended to incentivize increased order
flow.
The Exchange also believes that its proposal is equitable and not
unfairly discriminatory as the note 6 incentive will be eliminated for
all Market Makers. Further, the Exchange notes that the proposed
changes will not adversely impact any market participant's ability to
otherwise qualify for reduced fees or rebates offered under other
programs in the Pricing Schedule.
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. In terms of intra-market
competition, the Exchange does not believe that its proposal will place
any category of market participant at a competitive disadvantage. As
discussed above, while parts of the Exchange's proposal provide more
incentives for certain order flow and activity on the Exchange (i.e.,
Market Maker liquidity adding activity and Priority Customer liquidity
removing activity), the proposed changes are ultimately aimed at
attracting greater liquidity to the Exchange, which benefits all market
participants in the quality of order interaction.
In terms of inter-market competition, the Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. In such an environment, the Exchange
must continually adjust its fees to remain competitive with other
exchanges and with alternative trading systems that have been exempted
from compliance with the statutory standards applicable to exchanges.
Because competitors are free to modify their own fees in response, and
because market participants may readily adjust their order routing
practices, the Exchange believes that the degree to which fee changes
in this market may impose any burden on competition is extremely
limited. In sum, if the changes proposed herein are unattractive to
market participants, it is likely that the Exchange will lose market
share as a result. Accordingly, the Exchange does not believe that the
proposed changes will impair the ability of members or competing order
execution venues to maintain their competitive standing in the
financial markets.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \37\ and Rule 19b-4(f)(2) \38\ 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: (i) necessary or
appropriate in the public interest; (ii) for the protection of
investors; or (iii) 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.
---------------------------------------------------------------------------
\37\ 15 U.S.C. 78s(b)(3)(A)(ii).
\38\ 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-MRX-2023-11 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-MRX-2023-11. 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 a.m. and 3
p.m. Copies of the filing also will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-MRX-2023-11 and should be submitted on
or before July 21, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\39\
---------------------------------------------------------------------------
\39\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 2023-13895 Filed 6-29-23; 8:45 am]
BILLING CODE 8011-01-P
