Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 46339-46342 [2023-15262]

Download as PDF Federal Register / Vol. 88, No. 137 / Wednesday, July 19, 2023 / Notices Electronic Comments obligations of participants utilizing Clearing Agency services. (C) Clearing Agency’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others DTC has not received or solicited any written comments relating to this proposal. If any written comments are received, they would be publicly filed as an Exhibit 2 to this filing, as required by Form 19b–4 and the General Instructions thereto. Persons submitting comments are cautioned that, according to Section IV (Solicitation of Comments) of the Exhibit 1A in the General Instructions to Form 19b–4, the Commission does not edit personal identifying information from comment submissions. Commenters should submit only information that they wish to make available publicly, including their name, email address, and any other identifying information. All prospective commenters should follow the Commission’s instructions on how to submit comments, available at https://www.sec.gov/regulatory-actions/ how-to-submitcomments. General questions regarding the rule filing process or logistical questions regarding this filing should be directed to the Main Office of the Commission’s Division of Trading and Markets at tradingandmarkets@sec.gov or 202– 551–5777. DTC reserves the right to not respond to any comments received. ddrumheller on DSK120RN23PROD with NOTICES1 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) 31 of the Act and paragraph (f) 32 of Rule 19b–4 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. 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: • 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– DTC–2023–006 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549. All submissions should refer to File Number SR–DTC–2023–006. 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 DTC and on DTCC’s website (https:// dtcc.com/legal/sec-rule-filings.aspx). 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–DTC–2023–006 and should be submitted on or before August 9, 2023. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.33 J. Matthew DeLesDernier, Deputy Secretary. [FR Doc. 2023–15259 Filed 7–18–23; 8:45 am] BILLING CODE 8011–01–P U.S.C. 78s(b)(3)(A). 32 17 CFR 240.19b–4(f). VerDate Sep<11>2014 00:36 Jul 19, 2023 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–97894; File No. SR–MIAX– 2023–27] Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule July 13, 2023. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on June 29, 2023, Miami International Securities Exchange, LLC (‘‘MIAX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the selfregulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend the MIAX Fee Schedule (‘‘Fee Schedule’’). The text of the proposed rule change is available on the Exchange’s website at https:// www.miaxglobal.com/markets/usoptions/miax-options/rule-filings, at MIAX’s principal office, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the exchange grouping of options exchanges 1 15 31 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 33 17 Jkt 259001 PO 00000 CFR 200.30–3(a)(12). Frm 00213 Fmt 4703 Sfmt 4703 46339 E:\FR\FM\19JYN1.SGM 19JYN1 46340 Federal Register / Vol. 88, No. 137 / Wednesday, July 19, 2023 / Notices within the routing fee table in Section (1)(c) of the Fee Schedule, Fees for Customer Orders Routed to Another Options Exchange, to adjust the groupings of options exchanges and to adopt new routing fees. Currently, the Exchange assesses routing fees based upon (i) the origin type of the order; (ii) whether or not it is an order for standard option classes in the Penny Interval Program 4 (‘‘Penny classes’’) or an order for standard option classes which are not in the Penny Interval Program (‘‘Non-Penny classes’’) (or other explicitly identified classes); and (iii) to which away market it is being routed. This assessment practice is identical to the routing fees assessment practice currently utilized by the Exchange’s affiliates, MIAX PEARL, LLC (‘‘MIAX Pearl’’) and MIAX Emerald, LLC (‘‘MIAX Emerald’’). This is also similar to the methodology utilized by the Cboe BZX Exchange, Inc. (‘‘Cboe BZX Options’’), a competing options exchange, in assessing routing fees. Cboe BZX Options has exchange groupings in its fee schedule, similar to those of the Exchange, whereby several exchanges are grouped into the same category dependent upon the order’s origin type and whether it is a Penny or Non-Penny class.5 As a result of conducting a periodic review of the current transaction fees and rebates charged by away markets, the Exchange has determined to amend the exchange groupings of options exchanges within the routing fee table to better reflect the associated costs of routing customer orders to those options exchanges for execution. Specifically, the Exchange is proposing to create a separate group for Nasdaq MRX as a result of a recent proposal by that exchange to amend its fee schedule.6 The Exchange now proposes to adopt a new row for ‘‘Routed, Priority Customer, Penny Program,’’ and to adopt a new associated fee of $0.30. Additionally, the Exchange proposes to adopt new row for, ‘‘Routed, Priority Customer, Non-Penny Program,’’ and to adopt a new associated fee of $0.50. The Exchange also proposes to amend the first row in the first column of the table identified as, ‘‘Routed, Priority Customer, Penny Program,’’ to relocate Nasdaq MRX from the first row of the table to the new proposed row also identified as ‘‘Routed, Priority Customer, Penny Program.’’ The impact of this proposed change will be that the routing fee for Priority Customer Orders 7 in the Penny Program that are routed to Nasdaq MRX, will increase from $0.15 to $0.30. The Exchange also proposes to amend the exchange groupings in the third row of the table, identified as ‘‘Routed, Priority Customer, Non-Penny Program,’’ to relocate Nasdaq MRX Options from the third row of the table to the new proposed row, also identified as ‘‘Routed, Priority Customer, NonPenny Program.’’ The impact of this proposed change will be that the routing fee for Priority Customer Orders in the Non-Penny Program that are routed to Nasdaq MRX Options will increase from $0.15 to $0.50. The purpose of the proposed rule change is to adjust the routing fee for Priority Customer Orders routed to the Nasdaq MRX options exchange to reflect the associated costs for that routed execution in Penny and Non-Penny Classes as a result of the recent fee schedule change made by Nasdaq MRX. Accordingly, with the proposed changes, the routing fee table will be: Description Fees Routed, Priority Customer, Penny Program, to: NYSE American, BOX, Cboe, Cboe EDGX Options, Nasdaq PHLX (except SPY) ................................................................................................................................................................................................. Routed, Priority Customer, Penny Program, to: Nasdaq MRX ........................................................................................................... Routed, Priority Customer, Penny Program, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, Nasdaq GEMX, Nasdaq ISE, NOM, Nasdaq PHLX (SPY only), MIAX Emerald, MIAX Pearl, Nasdaq BX Options ..................................................................... Routed, Priority Customer, Non-Penny Program, to: NYSE American, BOX, Cboe, Cboe EDGX Options, Nasdaq ISE, Nasdaq PHLX ................................................................................................................................................................................................ Routed, Priority Customer, Non-Penny Program, to: Nasdaq MRX ................................................................................................... Routed, Priority Customer, Non-Penny Program, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, MIAX Pearl, MIAX Emerald, Nasdaq GEMX, NOM, Nasdaq BX Options .......................................................................................................................... Routed, Public Customer that is not a Priority Customer, Penny Program, to: NYSE American, NYSE Arca Options, Cboe BZX Options, BOX, Cboe, Cboe C2, Cboe EDGX Options, Nasdaq GEMX, Nasdaq ISE, Nasdaq MRX, MIAX Pearl, MIAX Emerald, NOM, Nasdaq PHLX, Nasdaq BX Options ............................................................................................................................... Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: NYSE American, Cboe, Nasdaq PHLX, Cboe EDGX Options .................................................................................................................................................................................. Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: Cboe C2, BOX, NOM, Nasdaq ISE ................ Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: Cboe BZX Options, NYSE Arca Options, Nasdaq GEMX, Nasdaq MRX, MIAX Pearl, MIAX Emerald, Nasdaq BX Options ......................................................................... ddrumheller on DSK120RN23PROD with NOTICES1 In determining to amend its routing fees the Exchange took into account transaction fees and rebates assessed by the away market to which the Exchange routes orders, as well as the Exchange’s clearing costs, administrative, regulatory, and technical costs 4 See Exchange Rule 510(c). Cboe U.S. Options Fee Schedules, BZX Options, effective May 15, 2023, ‘‘Fee Codes and Associated Fees,’’ at https://www.cboe.com/us/ options/membership/fee_schedule/bzx/. 6 The Nasdaq MRX proposal (SR–MRX–2023–11) amends their fee schedule to change the Taker Fee in Penny symbols in Tier 1 from $0.00 to $0.15 for Priority Customer Orders and from $0.00 in Tier 1 5 See VerDate Sep<11>2014 00:36 Jul 19, 2023 Jkt 259001 $0.15 0.30 0.65 0.15 0.50 1.00 0.65 1.00 1.15 1.25 associated with routing orders to an away market. The Exchange uses unaffiliated routing brokers to route orders to the away markets; the costs associated with the use of these services are included in the routing fees specified in the Fee Schedule. This routing fee structure is not only similar to the Exchange’s affiliates, MIAX Pearl and MIAX Emerald, but is also comparable to the structure in place on at least one other competing options exchange, such as Cboe BZX Options.8 The Exchange’s routing fee structure for Priority Customer Orders in Non-Penny symbols to $0.35. 7 The term ‘‘Priority Customer Order’’ means an order for the account of a Priority Customer. See Exchange Rule 100. The term ‘‘Priority Customer’’ means a person or entity that (i) is not a broker or dealer in securities, and (ii) does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). See Exchange Rule 100. 8 See supra note 4. The Cboe BZX Options fee schedule has exchange groupings, whereby several exchanges are grouped into the same category, dependent on the order’s Origin type and whether it is a Penny or Non-Penny class. For example, Cboe BZX Options fee code RR covers routed customer orders in Non-Penny classes to NYSE Arca, Cboe C2, Nasdaq ISE, Nasdaq Gemini, MIAX Emerald, MIAX Pearl, or NOM, with a single fee of $1.25 per contract. PO 00000 Frm 00214 Fmt 4703 Sfmt 4703 E:\FR\FM\19JYN1.SGM 19JYN1 Federal Register / Vol. 88, No. 137 / Wednesday, July 19, 2023 / Notices approximates the Exchange’s costs associated with routing orders to away markets. The per-contract transaction fee amount associated with each grouping closely approximates the Exchange’s all-in cost (plus an additional, non-material amount) 9 to execute that corresponding contract at that corresponding exchange. The Exchange notes that in determining whether to adjust certain groupings of options exchanges in the routing fee table, the Exchange considered the transaction fees and rebates assessed by away markets, and determined to amend the grouping of exchanges that assess transaction fees for routed orders within a similar range. This same logic and structure applies to all of the groupings in the routing fee table. By utilizing the same structure that is utilized by the Exchange’s affiliates, MIAX Pearl and MIAX Emerald, the Exchange’s Members 10 will be assessed routing fees in a similar manner. The Exchange believes that this structure will minimize any confusion as to the method of assessing routing fees between the three exchanges. The Exchange notes that its affiliates, MIAX Pearl and MIAX Emerald, will file to make the same proposed routing fee changes contained herein. Implementation The proposed rule change will become operative on July 1, 2023. ddrumheller on DSK120RN23PROD with NOTICES1 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act 11 in general, and furthers the objectives of Section 6(b)(4) of the Act 12 in particular, in that it is an equitable allocation of reasonable dues, fees, and other charges among its members and issuers and other persons using its facilities. The Exchange also believes the proposal furthers the objectives of Section 6(b)(5) of the Act 13 in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market 9 This amount is to cover de minimis differences/ changes to away market fees (i.e., minor increases or decreases) that would not necessitate a fee filing by the Exchange to re-categorize the away exchange into a different grouping. Routing fees are not intended to be a profit center for the Exchange and the Exchange’s target regarding routing fees and expenses is to be as close as possible to net neutral. 10 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. 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(4). 13 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 00:36 Jul 19, 2023 Jkt 259001 46341 and a national market system, and, in general to protect investors and the public interest and is not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange believes the proposed change to the exchange groupings of options exchanges within the routing fee table furthers the objectives of Section 6(b)(4) of the Act and is reasonable, equitable and not unfairly discriminatory because the proposed change will continue to apply in the same manner to all Members that are subject to routing fees. The Exchange believes the proposed change to the routing fee table exchange groupings furthers the objectives of Section 6(b)(5) of the Act and is designed to promote just and equitable principles of trade and is not unfairly discriminatory because the proposed change seeks to recoup costs that are incurred by the Exchange when routing Priority Customer Orders to away markets on behalf of Members and does so in the same manner for all Members that are subject to routing fees. The costs to the Exchange to route orders to away markets for execution primarily includes transaction fees and rebates assessed by the away markets to which the Exchange routes orders, in addition to the Exchange’s clearing costs, administrative, regulatory and technical costs. The Exchange believes that the proposed re-categorization of certain exchange groupings would enable the Exchange to recover the costs it incurs to route orders to the Nasdaq MRX options exchange. The per-contract transaction fee amount associated with each grouping approximates the Exchange’s all-in cost (plus an additional, non-material amount) to execute the corresponding contract at the corresponding exchange. exchange has a similar routing fee structure.14 B. Self-Regulatory Organization’s Statement on Burden on Competition • 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–2023–27. 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 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 Exchange’s proposed re-categorization of certain exchange groupings is intended to enable the Exchange to recover the costs it incurs to route orders to away markets, particularly Nasdaq MRX. The Exchange does not believe that this proposal imposes any unnecessary burden on competition because it seeks to recoup costs incurred by the Exchange when routing orders to away markets on behalf of Members and notes that at least one other options PO 00000 Frm 00215 Fmt 4703 Sfmt 4703 C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act,15 and Rule 19b–4(f)(2) 16 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments: • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include file number SR– MIAX–2023–27 on the subject line. Paper Comments: 14 See supra note 4. U.S.C. 78s(b)(3)(A)(ii). 16 17 CFR 240.19b–4(f)(2). 15 15 E:\FR\FM\19JYN1.SGM 19JYN1 46342 Federal Register / Vol. 88, No. 137 / Wednesday, July 19, 2023 / Notices 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–MIAX–2023–27 and should be submitted on or before August 9, 2023. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 J. Matthew DeLesDernier, Deputy Secretary. [FR Doc. 2023–15262 Filed 7–18–23; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–97905; File No. SR– NASDAQ–2023–016] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing of a Proposed Rule Change To List and Trade Shares of the iShares Bitcoin Trust Under Nasdaq Rule 5711(d), Commodity-Based Trust Shares ddrumheller on DSK120RN23PROD with NOTICES1 July 13, 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 29, 2023, The Nasdaq Stock Market LLC (‘‘Nasdaq’’ 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 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 00:36 Jul 19, 2023 Jkt 259001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to list and trade shares of the iShares Bitcoin Trust (the ‘‘Trust’’) under Nasdaq Rule 5711(d) (‘‘Commodity-Based Trust Shares’’). The text of the proposed rule change is available on the Exchange’s website at https://listingcenter.nasdaq.com/ rulebook/nasdaq/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 BILLING CODE 8011–01–P 17 17 solicit comments on the proposed rule change from interested persons. 1. Purpose The Exchange proposes to list and trade the Shares under Nasdaq Rule 5711(d),3 which governs the listing and trading of Commodity-Based Trust Shares on the Exchange. iShares Delaware Trust Sponsor LLC, a Delaware limited liability company and an indirect subsidiary of BlackRock, Inc. (‘‘BlackRock’’), is the sponsor of the Trust (the ‘‘Sponsor’’). The Shares will be registered with the SEC by means of the Trust’s registration statement on Form S–1 (the ‘‘Registration Statement’’).4 Description of the Trust The Shares will be issued by the Trust, a Delaware statutory trust. The 3 The Commission approved Nasdaq Rule 5711 in Securities Exchange Act Release No. 66648 (March 23, 2012), 77 FR 19428 (March 30, 2012) (SR– NASDAQ–2012–013). 4 See Registration Statement on Form S–1, dated June 15, 2023 filed with the Commission by the Sponsor on behalf of the Trust. The descriptions of the Trust contained herein are based, in part, on information in the Registration Statement. The Registration Statement in not yet effective and the Shares will not trade on the Exchange until such time that the Registration Statement is effective. PO 00000 Frm 00216 Fmt 4703 Sfmt 4703 Trust will operate pursuant to a trust agreement (the ‘‘Trust Agreement’’) between the Sponsor, BlackRock Fund Advisors (the ‘‘Trustee’’) as the trustee of the Trust and will appoint a Delaware Trustee of the Trust (the ‘‘Delaware Trustee’’) by such time that the Registration Statement is effective. The Trust issues Shares representing fractional undivided beneficial interests in its net assets. The assets of the Trust consist primarily of bitcoin held by a custodian on behalf of the Trust. Coinbase Custody Trust Company, LLC (the ‘‘Bitcoin Custodian’’), is the custodian for the Trust’s bitcoin holdings; and Bank of New York Mellon is the custodian for the Trust’s cash holdings (the ‘‘Cash Custodian’’ and together with the Bitcoin Custodian, the ‘‘Custodians’’) and the administrator of the Trust (the ‘‘Trust Administrator’’). Under the Trust Agreement, the Trustee may delegate all or a portion of its duties to any agent, and has delegated the bulk of the day-to-day responsibilities to the Trust Administrator and certain other administrative and record-keeping functions to its affiliates and other agents. The Trust is not an investment company registered under the Investment Company Act of 1940, as amended (the ‘‘1940 Act’’). The investment objective of the Trust is to reflect generally the performance of the price of bitcoin. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in bitcoin rather than by acquiring, holding and trading bitcoin directly on a peerto-peer or other basis or via a digital asset exchange. The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in bitcoin, while at the same time having an intrinsic value that reflects, at any given time, the investment exposure to the bitcoin owned by the Trust at such time, less the Trust’s expenses and liabilities. Although the Shares are not the exact equivalent of a direct investment in bitcoin, they provide investors with an alternative method of achieving investment exposure to bitcoin through the public securities market, which may be more familiar to them. Custody of the Trust’s Bitcoins An investment in the Shares is backed by bitcoin held by the Bitcoin Custodian on behalf of the Trust. The Bitcoin Custodian will keep custody of all of the Trust’s bitcoin, other than that which is E:\FR\FM\19JYN1.SGM 19JYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 88, Number 137 (Wednesday, July 19, 2023)]
[Notices]
[Pages 46339-46342]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15262]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97894; File No. SR-MIAX-2023-27]


Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Fee Schedule

July 13, 2023.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that, on June 29, 2023, Miami International Securities Exchange, 
LLC (``MIAX'' or ``Exchange'') filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule change as described 
in Items I, II, and III below, which Items have been prepared by the 
self-regulatory organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend the MIAX Fee Schedule 
(``Fee Schedule''). The text of the proposed rule change is available 
on the Exchange's website at https://www.miaxglobal.com/markets/us-options/miax-options/rule-filings, at MIAX's principal office, and at 
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the exchange grouping of options 
exchanges

[[Page 46340]]

within the routing fee table in Section (1)(c) of the Fee Schedule, 
Fees for Customer Orders Routed to Another Options Exchange, to adjust 
the groupings of options exchanges and to adopt new routing fees.
    Currently, the Exchange assesses routing fees based upon (i) the 
origin type of the order; (ii) whether or not it is an order for 
standard option classes in the Penny Interval Program \4\ (``Penny 
classes'') or an order for standard option classes which are not in the 
Penny Interval Program (``Non-Penny classes'') (or other explicitly 
identified classes); and (iii) to which away market it is being routed. 
This assessment practice is identical to the routing fees assessment 
practice currently utilized by the Exchange's affiliates, MIAX PEARL, 
LLC (``MIAX Pearl'') and MIAX Emerald, LLC (``MIAX Emerald''). This is 
also similar to the methodology utilized by the Cboe BZX Exchange, Inc. 
(``Cboe BZX Options''), a competing options exchange, in assessing 
routing fees. Cboe BZX Options has exchange groupings in its fee 
schedule, similar to those of the Exchange, whereby several exchanges 
are grouped into the same category dependent upon the order's origin 
type and whether it is a Penny or Non-Penny class.\5\
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    \4\ See Exchange Rule 510(c).
    \5\ See Cboe U.S. Options Fee Schedules, BZX Options, effective 
May 15, 2023, ``Fee Codes and Associated Fees,'' at https://www.cboe.com/us/options/membership/fee_schedule/bzx/.
---------------------------------------------------------------------------

    As a result of conducting a periodic review of the current 
transaction fees and rebates charged by away markets, the Exchange has 
determined to amend the exchange groupings of options exchanges within 
the routing fee table to better reflect the associated costs of routing 
customer orders to those options exchanges for execution. Specifically, 
the Exchange is proposing to create a separate group for Nasdaq MRX as 
a result of a recent proposal by that exchange to amend its fee 
schedule.\6\
---------------------------------------------------------------------------

    \6\ The Nasdaq MRX proposal (SR-MRX-2023-11) amends their fee 
schedule to change the Taker Fee in Penny symbols in Tier 1 from 
$0.00 to $0.15 for Priority Customer Orders and from $0.00 in Tier 1 
for Priority Customer Orders in Non-Penny symbols to $0.35.
---------------------------------------------------------------------------

    The Exchange now proposes to adopt a new row for ``Routed, Priority 
Customer, Penny Program,'' and to adopt a new associated fee of $0.30. 
Additionally, the Exchange proposes to adopt new row for, ``Routed, 
Priority Customer, Non-Penny Program,'' and to adopt a new associated 
fee of $0.50.
    The Exchange also proposes to amend the first row in the first 
column of the table identified as, ``Routed, Priority Customer, Penny 
Program,'' to relocate Nasdaq MRX from the first row of the table to 
the new proposed row also identified as ``Routed, Priority Customer, 
Penny Program.'' The impact of this proposed change will be that the 
routing fee for Priority Customer Orders \7\ in the Penny Program that 
are routed to Nasdaq MRX, will increase from $0.15 to $0.30.
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    \7\ The term ``Priority Customer Order'' means an order for the 
account of a Priority Customer. See Exchange Rule 100. The term 
``Priority Customer'' means a person or entity that (i) is not a 
broker or dealer in securities, and (ii) does not place more than 
390 orders in listed options per day on average during a calendar 
month for its own beneficial account(s). See Exchange Rule 100.
---------------------------------------------------------------------------

    The Exchange also proposes to amend the exchange groupings in the 
third row of the table, identified as ``Routed, Priority Customer, Non-
Penny Program,'' to relocate Nasdaq MRX Options from the third row of 
the table to the new proposed row, also identified as ``Routed, 
Priority Customer, Non-Penny Program.'' The impact of this proposed 
change will be that the routing fee for Priority Customer Orders in the 
Non-Penny Program that are routed to Nasdaq MRX Options will increase 
from $0.15 to $0.50. The purpose of the proposed rule change is to 
adjust the routing fee for Priority Customer Orders routed to the 
Nasdaq MRX options exchange to reflect the associated costs for that 
routed execution in Penny and Non-Penny Classes as a result of the 
recent fee schedule change made by Nasdaq MRX.
    Accordingly, with the proposed changes, the routing fee table will 
be:

------------------------------------------------------------------------
                       Description                             Fees
------------------------------------------------------------------------
Routed, Priority Customer, Penny Program, to: NYSE                 $0.15
 American, BOX, Cboe, Cboe EDGX Options, Nasdaq PHLX
 (except SPY)...........................................
Routed, Priority Customer, Penny Program, to: Nasdaq MRX            0.30
Routed, Priority Customer, Penny Program, to: NYSE Arca             0.65
 Options, Cboe BZX Options, Cboe C2, Nasdaq GEMX, Nasdaq
 ISE, NOM, Nasdaq PHLX (SPY only), MIAX Emerald, MIAX
 Pearl, Nasdaq BX Options...............................
Routed, Priority Customer, Non-Penny Program, to: NYSE              0.15
 American, BOX, Cboe, Cboe EDGX Options, Nasdaq ISE,
 Nasdaq PHLX............................................
Routed, Priority Customer, Non-Penny Program, to: Nasdaq            0.50
 MRX....................................................
Routed, Priority Customer, Non-Penny Program, to: NYSE              1.00
 Arca Options, Cboe BZX Options, Cboe C2, MIAX Pearl,
 MIAX Emerald, Nasdaq GEMX, NOM, Nasdaq BX Options......
Routed, Public Customer that is not a Priority Customer,            0.65
 Penny Program, to: NYSE American, NYSE Arca Options,
 Cboe BZX Options, BOX, Cboe, Cboe C2, Cboe EDGX
 Options, Nasdaq GEMX, Nasdaq ISE, Nasdaq MRX, MIAX
 Pearl, MIAX Emerald, NOM, Nasdaq PHLX, Nasdaq BX
 Options................................................
Routed, Public Customer that is not a Priority Customer,            1.00
 Non-Penny Program, to: NYSE American, Cboe, Nasdaq
 PHLX, Cboe EDGX Options................................
Routed, Public Customer that is not a Priority Customer,            1.15
 Non-Penny Program, to: Cboe C2, BOX, NOM, Nasdaq ISE...
Routed, Public Customer that is not a Priority Customer,            1.25
 Non-Penny Program, to: Cboe BZX Options, NYSE Arca
 Options, Nasdaq GEMX, Nasdaq MRX, MIAX Pearl, MIAX
 Emerald, Nasdaq BX Options.............................
------------------------------------------------------------------------

    In determining to amend its routing fees the Exchange took into 
account transaction fees and rebates assessed by the away market to 
which the Exchange routes orders, as well as the Exchange's clearing 
costs, administrative, regulatory, and technical costs associated with 
routing orders to an away market. The Exchange uses unaffiliated 
routing brokers to route orders to the away markets; the costs 
associated with the use of these services are included in the routing 
fees specified in the Fee Schedule. This routing fee structure is not 
only similar to the Exchange's affiliates, MIAX Pearl and MIAX Emerald, 
but is also comparable to the structure in place on at least one other 
competing options exchange, such as Cboe BZX Options.\8\ The Exchange's 
routing fee structure

[[Page 46341]]

approximates the Exchange's costs associated with routing orders to 
away markets. The per-contract transaction fee amount associated with 
each grouping closely approximates the Exchange's all-in cost (plus an 
additional, non-material amount) \9\ to execute that corresponding 
contract at that corresponding exchange. The Exchange notes that in 
determining whether to adjust certain groupings of options exchanges in 
the routing fee table, the Exchange considered the transaction fees and 
rebates assessed by away markets, and determined to amend the grouping 
of exchanges that assess transaction fees for routed orders within a 
similar range. This same logic and structure applies to all of the 
groupings in the routing fee table. By utilizing the same structure 
that is utilized by the Exchange's affiliates, MIAX Pearl and MIAX 
Emerald, the Exchange's Members \10\ will be assessed routing fees in a 
similar manner. The Exchange believes that this structure will minimize 
any confusion as to the method of assessing routing fees between the 
three exchanges. The Exchange notes that its affiliates, MIAX Pearl and 
MIAX Emerald, will file to make the same proposed routing fee changes 
contained herein.
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    \8\ See supra note 4. The Cboe BZX Options fee schedule has 
exchange groupings, whereby several exchanges are grouped into the 
same category, dependent on the order's Origin type and whether it 
is a Penny or Non-Penny class. For example, Cboe BZX Options fee 
code RR covers routed customer orders in Non-Penny classes to NYSE 
Arca, Cboe C2, Nasdaq ISE, Nasdaq Gemini, MIAX Emerald, MIAX Pearl, 
or NOM, with a single fee of $1.25 per contract.
    \9\ This amount is to cover de minimis differences/changes to 
away market fees (i.e., minor increases or decreases) that would not 
necessitate a fee filing by the Exchange to re-categorize the away 
exchange into a different grouping. Routing fees are not intended to 
be a profit center for the Exchange and the Exchange's target 
regarding routing fees and expenses is to be as close as possible to 
net neutral.
    \10\ 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.
---------------------------------------------------------------------------

Implementation
    The proposed rule change will become operative on July 1, 2023.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act \11\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \12\ in 
particular, in that it is an equitable allocation of reasonable dues, 
fees, and other charges among its members and issuers and other persons 
using its facilities. The Exchange also believes the proposal furthers 
the objectives of Section 6(b)(5) of the Act \13\ in that it is 
designed to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general to protect investors and the 
public interest and is not designed to permit unfair discrimination 
between customers, issuers, brokers and dealers.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4).
    \13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes the proposed change to the exchange groupings 
of options exchanges within the routing fee table furthers the 
objectives of Section 6(b)(4) of the Act and is reasonable, equitable 
and not unfairly discriminatory because the proposed change will 
continue to apply in the same manner to all Members that are subject to 
routing fees. The Exchange believes the proposed change to the routing 
fee table exchange groupings furthers the objectives of Section 6(b)(5) 
of the Act and is designed to promote just and equitable principles of 
trade and is not unfairly discriminatory because the proposed change 
seeks to recoup costs that are incurred by the Exchange when routing 
Priority Customer Orders to away markets on behalf of Members and does 
so in the same manner for all Members that are subject to routing fees. 
The costs to the Exchange to route orders to away markets for execution 
primarily includes transaction fees and rebates assessed by the away 
markets to which the Exchange routes orders, in addition to the 
Exchange's clearing costs, administrative, regulatory and technical 
costs. The Exchange believes that the proposed re-categorization of 
certain exchange groupings would enable the Exchange to recover the 
costs it incurs to route orders to the Nasdaq MRX options exchange. The 
per-contract transaction fee amount associated with each grouping 
approximates the Exchange's all-in cost (plus an additional, non-
material amount) to execute the corresponding contract at the 
corresponding exchange.

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 Exchange's proposed re-
categorization of certain exchange groupings is intended to enable the 
Exchange to recover the costs it incurs to route orders to away 
markets, particularly Nasdaq MRX. The Exchange does not believe that 
this proposal imposes any unnecessary burden on competition because it 
seeks to recoup costs incurred by the Exchange when routing orders to 
away markets on behalf of Members and notes that at least one other 
options exchange has a similar routing fee structure.\14\
---------------------------------------------------------------------------

    \14\ See supra note 4.
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act,\15\ and Rule 19b-4(f)(2) \16\ thereunder. 
At any time within 60 days of the filing of the proposed rule change, 
the Commission summarily may temporarily suspend such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act. If the Commission takes such 
action, the Commission shall institute proceedings to determine whether 
the proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \15\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \16\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments:

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-MIAX-2023-27 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-2023-27. 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

[[Page 46342]]

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-MIAX-2023-27 and should be submitted on 
or before August 9, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

    \17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-15262 Filed 7-18-23; 8:45 am]
BILLING CODE 8011-01-P

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