Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 63996-63999 [2023-20082]
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63996
Federal Register / Vol. 88, No. 179 / Monday, September 18, 2023 / Notices
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 23 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),24 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The Exchange
requested the waiver, stating that the
proposal harmonizes its rules to those of
NYSE American to ensure fair
competition among the options
exchanges. Further, the proposed
change would allow options on IPO’d
securities to come to market sooner (i.e.,
at least two business days post-IPO not
inclusive of the day of the IPO) without
sacrificing investor protection. For these
reasons, and because the proposed rule
change does not raise any novel legal or
regulatory issues, the Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest. Therefore, the Commission
hereby waives the 30-day operative
delay and designates the proposal
operative upon filing.25
At any time within 60 days of the
filing of such 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
under Section 19(b)(2)(B) 26 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
lotter on DSK11XQN23PROD with NOTICES1
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
23 17
CFR 240.19b–4(f)(6).
CFR 240.19b–4(f)(6)(iii).
25 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
26 15 U.S.C. 78s(b)(2)(B).
24 17
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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:
[FR Doc. 2023–20078 Filed 9–15–23; 8:45 am]
Electronic Comments
BILLING CODE 8011–01–P
• 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–
NYSEARCA–2023–61 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–NYSEARCA–2023–61. 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–NYSEARCA–2023–61 and should be
submitted on or before October 10,
2023.
PO 00000
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Sherry R. Haywood,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98361; File No. SR–MIAX–
2023–33]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule
September 12, 2023
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on August
31, 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/
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
27 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 88, No. 179 / Monday, September 18, 2023 / Notices
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
within the routing fee table in Section
1(c) of the Fee Schedule, Fees for
Customer Orders Routed to Another
Options Exchange, to add applicable
Member 3 orders routed to MEMX LLC
(‘‘MEMX’’), in anticipation of the launch
of MEMX Options, the new options
trading facility of MEMX.4 The
Exchange proposes to implement the fee
change effective September 1, 2023.
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 5 (‘‘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.6
As a result of the anticipated launch
of the options trading facility of MEMX
in the third quarter of 2023, the
Exchange has determined to amend the
exchange groupings of options
exchanges within the routing fee table to
include MEMX and the anticipated
associated costs of routing customer
orders to MEMX for execution.
The impact of this proposed change
will be increased routing options for
Members. The Exchange notes that
routing through the Exchange is
optional and that Members will
continue to be able to choose where to
route applicable Member orders. Under
this proposed change, the Exchange will
not amend the fees associated with the
exchange groupings. This proposal
merely seeks to add MEMX to the
exchange groupings as described in the
routing fee table below.
According, with the proposed change,
the routing fee table will be as follows:
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, MEMX ........................................................
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, MEMX .............................................................................................................
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, MEMX ..................................................................................................................
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, MEMX ............................................................
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In determining to amend its routing
fee table to determine which category
MEMX belongs to the Exchange took
into account anticipated transaction fees
and rebates assessed by the away
markets 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
3 The term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
4 See Securities Exchange Act Release No. 95445
(August 8, 2022), 87 FR 49894 (August 12, 2022)
(SR–MEMX–2022–10) (Notice of Filing of
Amendment No. 1 and Order Granting Accelerated
Approval of a Proposed Rule Change, as Modified
by Amendment No. 1, to Adopt Rules to Govern the
Trading of Options on the Exchange for a New
Facility Called MEMX Options).
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18:29 Sep 15, 2023
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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 fees structure is not only similar
to the Exchange’s affiliates, MIAX Pearl
and MIAX Emerald, but is also
comparable to the structure in place at
Cboe BZX Options,7 a competing
options exchange. The Exchange’s
5 See
Exchange Rule 510(c).
Cboe U.S. Options Fee Schedules, BZX
Options, effective August 1, 2023 [sic], ‘‘Fee Codes
and Associated Fees,’’ at https://www.cboe.com/us/
options/membership/fee_schedule/bzx/.
7 The Cboe BZX Options fee schedule is similar
to the Exchange’s Fee Schedule in that it has
exchange groupings, whereby several exchanges are
grouped into the same category. See supra note 6.
Furthermore, Cboe BZX Options recently filed with
the Commission a proposal to amend fee codes RQ
and RR to include MEMX in those exchange
groupings. See Securities Exchange Act Release No.
6 See
PO 00000
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63997
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$0.15
0.30
0.65
0.15
0.50
1.00
0.65
1.00
1.15
1.25
routing fee structure approximates the
Exchange’s costs associated with routing
orders to away markets. The percontract transaction fee amount
associated with each grouping closely
approximates the Exchange’s all-in cost
(plus an additional, non-material
amount) 8 to execute that corresponding
contract(s) at that corresponding
exchange. The Exchange notes that in
determining whether to include certain
98126 (August 14, 2023), 88 FR 56681 (August 18,
2023) (SR–CboeBZX–2023–056) (Notice of Filing
and Immediate Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule).
8 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.
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63998
Federal Register / Vol. 88, No. 179 / Monday, September 18, 2023 / Notices
lotter on DSK11XQN23PROD with NOTICES1
exchanges in a 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 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.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 9
in general, and furthers the objectives of
Section 6(b)(4) of the Act 10 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 11 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.
The Exchange believes the proposed
change to add the new options facility
of MEMX 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 add the
new options facility of MEMX to the
routing fee table of 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
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
11 15 U.S.C. 78f(b)(5).
recoup costs that will be incurred by the
Exchange when routing customer orders
to MEMX on behalf of Members and
does so in the same manner to 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 addition of MEMX to
the exchange groupings would increase
the routing options available to
Members. The per-contract transaction
fee amount associated with each
grouping approximates the Exchange’s
all-in cost (plus an additional, nonmaterial amount) to execute the
corresponding contract at the
corresponding exchange.
The Exchange believes that the
proposed rule change is equitable and
not unfairly discriminatory because all
Members’ orders in Penny classes and
Non-Penny classes routed to MEMX will
be uniformly assessed the
corresponding fee.
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 does not believe the proposed
rule change to add MEMX to the routing
fee table will impose any burden on
intramarket competition. Rather, the
Exchange believes that the proposal will
promote competition by increasing the
available away markets to which
Members can route orders to. The
Exchange notes that another options
exchange recently added MEMX to its
routing fee tables.12
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,13 and Rule
19b–4(f)(2) 14 thereunder. At any time
within 60 days of the filing of the
9 15
12 See
10 15
13 15
VerDate Sep<11>2014
18:29 Sep 15, 2023
supra note 7.
U.S.C. 78s(b)(3)(A)(ii).
14 17 CFR 240.19b–4(f)(2).
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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–2023–33 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–2023–33. 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
E:\FR\FM\18SEN1.SGM
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Federal Register / Vol. 88, No. 179 / Monday, September 18, 2023 / Notices
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–MIAX–2023–33 and should be
submitted on or before October 10,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–20082 Filed 9–15–23; 8:45 am]
BILLING CODE 8011–01–P
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Sherry R. Haywood,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98366; File No. SR–
NASDAQ–2023–022]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Designation of a Longer Period for
Commission Action on a Proposed
Rule Change To Create a New, NonTrading Limited Membership Class and
Impose Related Requirements for
Principal Underwriting Activity
lotter on DSK11XQN23PROD with NOTICES1
On July 12, 2023, The Nasdaq Stock
Market LLC (‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
create a new, non-trading limited
membership class and impose related
requirements for principal underwriting
activity. The proposed rule change was
published for comment in the Federal
Register on July 31, 2023.3
Section 19(b)(2) of the Act 4 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding, or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is September 14,
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 97985
(July 25, 2023), 88 FR 49508.
4 15 U.S.C. 78s(b)(2).
1 15
18:29 Sep 15, 2023
[FR Doc. 2023–20086 Filed 9–15–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
Notice is hereby given,
pursuant to the provisions of the
Government in the Sunshine Act, Public
Law 94–409, that the Securities and
Exchange Commission will hold an
Open Meeting on Wednesday,
September 20, 2023 at 10:00 a.m.
PLACE: The meeting will be held in
Auditorium LL–002 at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549 and
will be simultaneously webcast on the
Commission’s website at www.sec.gov.
STATUS: This meeting will begin at 10:00
a.m. (ET) and will be open to the public.
Seating will be on a first-come, firstserved basis. Visitors will be subject to
security checks. The meeting will be
webcast on the Commission’s website at
www.sec.gov.
MATTERS TO BE CONSIDERED:
1. The Commission will consider
whether to adopt amendments to the
rule under the Investment Company Act
of 1940 that addresses investment
company names that are likely to
mislead investors about an investment
company’s investments and risks. The
amendments the Commission will
consider also include enhanced
prospectus disclosure requirements for
terminology used in investment
company names, as well as public
reporting regarding compliance with the
new names-related requirements.
TIME AND DATE:
September 12, 2023.
VerDate Sep<11>2014
2023. The Commission is extending this
45-day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change. Accordingly, the
Commission, pursuant to Section
19(b)(2) of the Act,5 designates October
29, 2023, as the date by which the
Commission shall either approve or
disapprove, or institute proceedings to
determine whether to disapprove, the
proposed rule change (File No. SR–
NASDAQ–2023–022).
Jkt 259001
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed, please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Authority: 5 U.S.C. 552b.
Dated: September 13, 2023.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2023–20181 Filed 9–14–23; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98365; File No. SR–
CboeEDGA–2023–014]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Fee Schedule
September 12, 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 August
31, 2023, Cboe EDGA Exchange, Inc.
(the ‘‘Exchange’’ or ‘‘EDGA’’) 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 Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) proposes to
amend its Fee Schedule. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/edga/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
5 Id.
6 17
PO 00000
2 15
CFR 200.30–3(a)(31).
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]]>Agencies
[Federal Register Volume 88, Number 179 (Monday, September 18, 2023)]
[Notices]
[Pages 63996-63999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-20082]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98361; File No. SR-MIAX-2023-33]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
September 12, 2023
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on August 31, 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 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
[[Page 63997]]
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 within the routing fee table in Section 1(c) of the Fee
Schedule, Fees for Customer Orders Routed to Another Options Exchange,
to add applicable Member \3\ orders routed to MEMX LLC (``MEMX''), in
anticipation of the launch of MEMX Options, the new options trading
facility of MEMX.\4\ The Exchange proposes to implement the fee change
effective September 1, 2023.
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\3\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
\4\ See Securities Exchange Act Release No. 95445 (August 8,
2022), 87 FR 49894 (August 12, 2022) (SR-MEMX-2022-10) (Notice of
Filing of Amendment No. 1 and Order Granting Accelerated Approval of
a Proposed Rule Change, as Modified by Amendment No. 1, to Adopt
Rules to Govern the Trading of Options on the Exchange for a New
Facility Called MEMX Options).
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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 \5\ (``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.\6\
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\5\ See Exchange Rule 510(c).
\6\ See Cboe U.S. Options Fee Schedules, BZX Options, effective
August 1, 2023 [sic], ``Fee Codes and Associated Fees,'' at https://www.cboe.com/us/options/membership/fee_schedule/bzx/.
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As a result of the anticipated launch of the options trading
facility of MEMX in the third quarter of 2023, the Exchange has
determined to amend the exchange groupings of options exchanges within
the routing fee table to include MEMX and the anticipated associated
costs of routing customer orders to MEMX for execution.
The impact of this proposed change will be increased routing
options for Members. The Exchange notes that routing through the
Exchange is optional and that Members will continue to be able to
choose where to route applicable Member orders. Under this proposed
change, the Exchange will not amend the fees associated with the
exchange groupings. This proposal merely seeks to add MEMX to the
exchange groupings as described in the routing fee table below.
According, with the proposed change, the routing fee table will be
as follows:
------------------------------------------------------------------------
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, MEMX.........................
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, MEMX
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, MEMX..........................................
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, MEMX.......................
------------------------------------------------------------------------
In determining to amend its routing fee table to determine which
category MEMX belongs to the Exchange took into account anticipated
transaction fees and rebates assessed by the away markets 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 fees structure is not only similar to
the Exchange's affiliates, MIAX Pearl and MIAX Emerald, but is also
comparable to the structure in place at Cboe BZX Options,\7\ a
competing options exchange. The Exchange's routing fee structure
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) \8\ to execute that corresponding
contract(s) at that corresponding exchange. The Exchange notes that in
determining whether to include certain
[[Page 63998]]
exchanges in a 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 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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\7\ The Cboe BZX Options fee schedule is similar to the
Exchange's Fee Schedule in that it has exchange groupings, whereby
several exchanges are grouped into the same category. See supra note
6. Furthermore, Cboe BZX Options recently filed with the Commission
a proposal to amend fee codes RQ and RR to include MEMX in those
exchange groupings. See Securities Exchange Act Release No. 98126
(August 14, 2023), 88 FR 56681 (August 18, 2023) (SR-CboeBZX-2023-
056) (Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change To Amend Its Fee Schedule).
\8\ 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.
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2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \9\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \10\ 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 \11\ 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.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposed change to add the new options
facility of MEMX 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 add the new options facility of MEMX to the
routing fee table of 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 will be incurred
by the Exchange when routing customer orders to MEMX on behalf of
Members and does so in the same manner to 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 addition
of MEMX to the exchange groupings would increase the routing options
available to Members. 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.
The Exchange believes that the proposed rule change is equitable
and not unfairly discriminatory because all Members' orders in Penny
classes and Non-Penny classes routed to MEMX will be uniformly assessed
the corresponding fee.
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 does not believe
the proposed rule change to add MEMX to the routing fee table will
impose any burden on intramarket competition. Rather, the Exchange
believes that the proposal will promote competition by increasing the
available away markets to which Members can route orders to. The
Exchange notes that another options exchange recently added MEMX to its
routing fee tables.\12\
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\12\ See supra note 7.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\13\ and Rule 19b-4(f)(2) \14\ 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.
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\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 17 CFR 240.19b-4(f)(2).
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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-2023-33 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-2023-33. 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
[[Page 63999]]
withhold entirely from publication submitted material that is obscene
or subject to copyright protection. All submissions should refer to
file number SR-MIAX-2023-33 and should be submitted on or before
October 10, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-20082 Filed 9-15-23; 8:45 am]
BILLING CODE 8011-01-P
