Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 24883-24886 [2024-07443]

Download as PDF Federal Register / Vol. 89, No. 69 / Tuesday, April 9, 2024 / Notices information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. All comments received will be posted without change to PBGC’s website, www.pbgc.gov, including any personal information provided. Do not submit comments that include any personally identifiable information or confidential business information. A copy of the request will be posted on PBGC’s website at https:// www.pbgc.gov/prac/laws-andregulation/federal-register-notices-openfor-comment. Copies of the collections of information may also be obtained without charge by writing to the Disclosure Division (disclosure@ pbgc.gov), Office of the General Counsel, Pension Benefit Guaranty Corporation, 445 12th Street SW, Washington, DC 20024–2101; or, calling 202–229–4040 during normal business hours. If you are deaf or hard of hearing or have a speech disability, please dial 7–1–1 to access telecommunications relay services. FOR FURTHER INFORMATION CONTACT: Monica O’Donnell (odonnell.monica@ pbgc.gov), Attorney, Regulatory Affairs Division, Office of the General Counsel, Pension Benefit Guaranty Corporation, 445 12th Street SW, Washington, DC 20024–2101; 202–229–8706. If you are deaf or hard of hearing or have a speech disability, please dial 7–1–1 to access telecommunications relay services. Section 4043 of the Employee Retirement Income Security Act of 1974 (ERISA) requires plan administrators and plan sponsors to report certain plan and employer events to PBGC. The reporting requirements give PBGC notice of events that indicate plan or employer financial problems. PBGC uses the information provided to determine what, if any, action it needs to take. For example, PBGC might need to institute proceedings to terminate a plan (placing it in a trusteeship) under section 4042 of ERISA to ensure the continued payment of benefits to plan participants and their beneficiaries or to prevent unreasonable increases in PBGC’s losses. The provisions of section 4043 of ERISA have been implemented in PBGC’s regulation on Reportable Events and Certain Other Notification Requirements (29 CFR part 4043). ddrumheller on DSK120RN23PROD with NOTICES1 SUPPLEMENTARY INFORMATION: Forms 10 and 10-Advance PBGC has issued Forms 10 and 10Advance and related instructions under subparts B and C of the regulation. The existing collection of information was VerDate Sep<11>2014 19:57 Apr 08, 2024 Jkt 262001 approved under OMB control number 1212–0013 (expires July 31, 2024). PBGC estimates that it will receive 438 reportable event notices per year under subparts B and C of the reportable events regulation using Forms 10 and 10-Advance. PBGC further estimates that the average annual burden of this collection of information is 1,377 hours and $326,310. Form 200 Section 303(k) of the Employee Retirement Income Security Act of 1974 (ERISA) and section 430(k) of the Internal Revenue Code of 1986 (Code) impose a lien in favor of an underfunded single-employer plan that is covered by PBGC’s termination insurance program is (1) any person fails to make a required payment when due, and (2) the unpaid balance of that payment (including interest), when added to the aggregated unpaid balance of all proceedings for which payment was not made when due (including interest), exceeds $1 million. (For this purpose, a plan is underfunded if its funding target attainment percentage is less than 100 percent.) The lien is upon all property and rights to property belonging to the person or persons that are liable for required contributions (i.e., a contributing sponsor and each member of the controlled group of which that contributing sponsor is a member). Only PBGC (or, at its direction, the plan’s contributing sponsor or a member of the same controlled group) may perfect and enforce this lien. ERISA and the Code require persons that fail to make payments to notify PBGC within 10 days of the due date whenever there is a failure to make a required payment and the total of the unpaid balances (including interest) exceeds $1 million. PBGC Form 200, Notice of Failure to Make Required Contributions, and related instructions implement the statutory notification requirement. Submission of Form 200 is required by 29 CFR 4043.81 (Subpart D of PBGC’s regulation on Reportable Events and Other Notification Requirements, 29 CFR part 4043). The existing collection of information was approved under OMB control number 1212–0041 (expires July 31, 2024). PBGC estimates that it will receive 60 Form 200 filings per year. PBGC further estimates that the average annual burden of this collection of information is 60 hours and $43,500. On February 1, 2024, PBGC published in the Federal Register (at 89 FR 6557) a notice informing the public of its intent to request an extension of these collections of information. No PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 24883 comments were received. PBGC is requesting that OMB extend approval of the collections of information for 3 years. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. Issued in Washington, DC. Hilary Duke, Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation. [FR Doc. 2024–07444 Filed 4–8–24; 8:45 am] BILLING CODE 7709–02–P POSTAL SERVICE Sunshine Act Meetings April 17, 2024, at 4:00 p.m. EST. PLACE: Washington, DC, at U.S. Postal Service Headquarters, 475 L’Enfant Plaza, SW. STATUS: Closed. MATTERS TO BE CONSIDERED: TIME AND DATE: Meeting of the Board of Governors April 17, 2024, at 4:00 p.m. EST 1. Strategic Matters 2. Administrative Matters General Counsel Certification: The General Counsel of the United States Postal Service has certified that the meeting may be closed under the Government in the Sunshine Act. CONTACT PERSON FOR MORE INFORMATION: Michael J. Elston, Secretary of the Board, U.S. Postal Service, 475 L’Enfant Plaza SW, Washington, DC 20260–1000. Telephone: (202) 268–4800. Michael J. Elston, Secretary. [FR Doc. 2024–07554 Filed 4–5–24; 11:15 am] BILLING CODE 7710–12–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–99902; File No. SR–MIAX– 2024–17] Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule April 3, 2024. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 1 15 E:\FR\FM\09APN1.SGM U.S.C. 78s(b)(1). 09APN1 24884 Federal Register / Vol. 89, No. 69 / Tuesday, April 9, 2024 / Notices thereunder,2 notice is hereby given that on March 22, 2024, Miami International Securities Exchange, LLC (‘‘MIAX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend the MIAX Options Exchange Fee Schedule (the ‘‘Fee Schedule’’) to extend the SPIKES Options Market Maker Incentive Program (the ‘‘Incentive Program’’) until June 30, 2024. 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. ddrumheller on DSK120RN23PROD with NOTICES1 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 Fee Schedule to extend the Incentive Program until June 30, 2024. On September 30, 2021, the Exchange filed its initial proposal to implement a SPIKES Options Market Maker Incentive Program for SPIKES options to incentivize Market Makers 3 to improve liquidity, available volume, and the quote spread width of SPIKES options beginning October 1, 2021, and ending December 31, 2021.4 Technical details 2 17 CFR 240.19b–4. term ‘‘Market Makers’’ refers to ‘‘Lead Market Makers’’, ‘‘Primary Lead Market Makers’’ and ‘‘Registered Market Makers’’ collectively. See Exchange Rule 100. 4 See SR–MIAX–2021–45. 3 The VerDate Sep<11>2014 19:57 Apr 08, 2024 Jkt 262001 regarding the Incentive Program were published in a Regulatory Circular on September 30, 2021.5 On October 12, 2021, the Exchange withdrew SR– MIAX–2021–45 and refiled its proposal to implement the Incentive Program to provide additional details.6 In that filing, the Exchange specifically noted that the Incentive Program would expire at the end of the period (December 31, 2021) unless the Exchange filed another 19b–4 Filing to amend the fees (or extend the Incentive Program).7 Between December 23, 2021, and November 29, 2023, the Exchange filed several proposals to extend the Incentive Program, with the last extension period ending March 31, 2024.8 In each of those filings, the Exchange specifically noted that the Incentive Program would expire at the end of the then-current period unless the Exchange filed another 19b–4 Filing to amend the fees (or extend the Incentive Program).9 The Exchange now proposes to extend the Incentive Program until June 30, 2024.10 The Exchange proposes to extend the Incentive Program for SPIKES options to continue to incentivize Market Makers to improve liquidity, available volume, and the quote spread width of SPIKES options. Currently, to be eligible to participate in the Incentive Program, a Market Maker must meet certain minimum requirements related to quote spread width in certain in-the-money (ITM) and out-of-the-money (OTM) options as determined by the Exchange and communicated to Members via Regulatory Circular.11 Market Makers must also satisfy a minimum time in the market in the front 2 expiry months of 5 See MIAX Options Regulatory Circular 2021–56, SPIKES Options Market Maker Incentive Program (September 30, 2021) available at https:// www.miaxglobal.com/sites/default/files/circularfiles/MIAX_Options_RC_2021_56.pdf. 6 See Securities Exchange Act Release No. 93424 (October 26, 2021), 86 FR 60322 (November 1, 2021) (SR–MIAX–2021–49). 7 See id. 8 See Securities Exchange Act Release Nos. 93881 (December 30, 2021), 87 FR 517 (January 5, 2022) (SR–MIAX–2021–63); 94574 (April 1, 2022), 87 FR 20492 (April 7, 2022) (SR–MIAX–2022–12); 95259 (July 12, 2022), 87 FR 42754 (July 17, 2022) (SR– MIAX–2022–24); 96007 (October 7, 2022), 87 FR 62151 (October 13, 2022) (SR–MIAX–2022–32); 96588 (December 28, 2022), 88 FR 381 (January 4, 2023) (SR–MIAX–2022–47); 97239 (April 3, 2023), 88 FR 20930 (April 7, 2023) (SR–MIAX–2023–13); 97883 (July 12, 2023), 88 FR 45941 (July 18, 2023) (SR–MIAX–2023–26); and 99040 (November 29, 2023), 88 FR 84374 (December 5, 2023) (SR–MIAX– 2023–47). 9 See id. 10 The Exchange notes that at the end of the extension period, the Incentive Program will expire unless the Exchange files another 19b–4 Filing to amend the terms or extend the Incentive Program. 11 See supra note 5. PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 70%, and have an average quote size of 25 contracts. The Exchange established two separate incentive compensation pools that are used to compensate Market Makers that satisfy the criteria pursuant to the Incentive Program. The first pool (Incentive 1) has a total amount of $40,000 per month, which is allocated to Market Makers that meet the minimum requirements of the Incentive Program. Market Makers are required to meet minimum spread width requirements in a select number of ITM and OTM SPIKES option contracts as determined by the Exchange and communicated to Members via Regulatory Circular.12 A complete description of how the Exchange calculates the minimum spread width requirements in ITM and OTM SPIKES options can be found in the published Regulatory Circular.13 Market Makers are also required to maintain the minimum spread width, described above, for at least 70% of the time in the front two (2) SPIKES options contract expiry months and maintain an average quote size of at least 25 SPIKES options contracts. The amount available to each individual Market Maker is capped at $10,000 per month for satisfying the minimum requirements of the Incentive Program. In the event that more than four Market Makers meet the requirements of the Incentive Program, each qualifying Market Maker is entitled to receive a pro-rated share of the $40,000 monthly compensation pool dependent upon the number of qualifying Market Makers in that particular month. The second pool (Incentive 2 Pool) is capped at a total amount of $100,000 per month which is used during the Incentive Program to further incentivize Market Makers who meet or exceed the requirements of Incentive 1 (‘‘qualifying Market Makers’’) to provide tighter quote width spreads. The Exchange ranks each qualifying Market Maker’s quote width spread relative to each other qualifying Market Maker’s quote width spread. Market Makers with tighter spreads in certain strikes, as determined by the Exchange and communicated to Members via Regulatory Circular,14 are eligible to receive a pro-rated share of the compensation pool as calculated by the Exchange and communicated to Members via Regulatory Circular,15 not to exceed $25,000 per Member per month. Qualifying Market Makers are ranked relative to each other based on 12 See id. id. 14 See id. 15 See id. 13 See E:\FR\FM\09APN1.SGM 09APN1 Federal Register / Vol. 89, No. 69 / Tuesday, April 9, 2024 / Notices ddrumheller on DSK120RN23PROD with NOTICES1 the quality of their spread width (i.e., tighter spreads are ranked higher than wider spreads) and the Market Maker with the best quality spread width receives the highest rebate, while other eligible qualifying Market Makers receive a rebate relative to their quality spread width. The Exchange proposes to extend the Incentive Program until June 30, 2024. The Exchange does not propose to make any amendments to how it calculates any of the incentives provided for in Incentive Pools 1 or 2. The details of the Incentive Program can continue to be found in the Regulatory Circular that was published on September 30, 2021, to all Exchange Members.16 The purpose of this extension is to continue to incentivize Market Makers to improve liquidity, available volume, and the quote spread width of SPIKES options. The Exchange will announce the extension of the Incentive Program to all Members via a Regulatory Circular. 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act 17 in general, and furthers the objectives of Section 6(b)(4) of the Act 18 in particular, in that it is an equitable allocation of reasonable fees and other charges among its members and issuers and other persons using its facilities. The Exchange also believes the proposal furthers the objectives of Section 6(b)(5) of the Act in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest and is not designed to permit unfair discrimination between customers, issuers, brokers and dealers. The Exchange believes that it is reasonable, equitable, and not unfairly discriminatory to extend the Incentive Program for Market Makers in SPIKES options until June 30, 2024. The Incentive Program is reasonably designed because it will continue to incentivize Market Makers to provide quotes and increased liquidity in select SPIKES options contracts. The Incentive Program is reasonable, equitably allocated and not unfairly discriminatory because all Market Makers in SPIKES options may continue to qualify for Incentive 1 and Incentive 2, dependent upon each Market Maker’s quoting in SPIKES options in a 16 See id. U.S.C. 78f(b). 18 15 U.S.C. 78f(b)(4) and (5). 17 15 VerDate Sep<11>2014 19:57 Apr 08, 2024 Jkt 262001 24885 particular month. Additionally, if a SPIKES Market Maker does not satisfy the requirements of Incentive Pool 1 or 2, then it simply will not receive the rebate offered by the Incentive Program for that month. The Exchange believes that it is reasonable, equitable and not unfairly discriminatory to continue to offer this financial incentive to SPIKES Market Makers because it will continue to benefit all market participants trading in SPIKES options. SPIKES options is a Proprietary Product on the Exchange and the continuation of the Incentive Program encourages SPIKES Market Makers to satisfy a heightened quoting standard, average quote size, and time in market. A continued increase in quoting activity and tighter quotes may yield a corresponding increase in order flow from other market participants, which benefits all investors by deepening the Exchange’s liquidity pool, potentially providing greater execution incentives and opportunities, while promoting market transparency and improving investor protection. The Exchange believes that the Incentive Program is equitable and not unfairly discriminatory because it will continue to promote an increase in SPIKES options liquidity, which may facilitate tighter spreads and an increase in trading opportunities to the benefit of all market participants. The Exchange believes it is reasonable to operate the Incentive Program for a continued limited period of time to strengthen market quality for all market participants. The resulting increased volume and liquidity will benefit those Members who are eligible to participate in the Incentive Program and will also continue to benefit those Members who are not eligible to participate in the Incentive Program by providing more trading opportunities and tighter spreads. is achieved, all the Exchange’s market participants should benefit from the improved market liquidity for SPIKES options. Enhanced market quality and increased transaction volume in SPIKES options that results from the anticipated increase in Market Maker activity on the Exchange will benefit all market participants and improve competition on the 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. 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: Intra-Market Competition The Exchange believes that the proposed extension of the Incentive Program to March 31, 2024, would continue to increase intra-market competition by incentivizing Market Makers to quote SPIKES options, which will continue to enhance the quality of quoting and increase the volume of contracts available to trade in SPIKES options. To the extent that this purpose PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 Inter-Market Competition The Exchange does not believe that the proposed rule changes will impose any burden on inter-market competition that is not necessary or appropriate in furtherance of the purposes of the Act because the proposed extension of the Incentive Program applies only to the Market Makers in SPIKES Options, which are traded exclusively on the Exchange. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act,19 and Rule 19b–4(f)(2) 20 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. 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–2024–17 on the subject line. 19 15 20 17 E:\FR\FM\09APN1.SGM U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 09APN1 24886 Federal Register / Vol. 89, No. 69 / Tuesday, April 9, 2024 / Notices 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–2024–17. 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–MIAX–2024–17 and should be submitted on or before April 30, 2024. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 Sherry R. Haywood, Assistant Secretary. [FR Doc. 2024–07443 Filed 4–8–24; 8:45 am] BILLING CODE 8011–01–P SOCIAL SECURITY ADMINISTRATION ddrumheller on DSK120RN23PROD with NOTICES1 [Docket No: SSA–2024–0010] Agency Information Collection Activities: Proposed Request The Social Security Administration (SSA) publishes a list of information collection packages requiring clearance by the Office of Management and Budget (OMB) in compliance with 21 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 19:57 Apr 08, 2024 Jkt 262001 Public Law 104–13, the Paperwork Reduction Act of 1995, effective October 1, 1995. This notice includes renewals and revisions of OMB-approved information collections, and one new collection for OMB-approval. SSA is soliciting comments on the accuracy of the agency’s burden estimate; the need for the information; its practical utility; ways to enhance its quality, utility, and clarity; and ways to minimize burden on respondents, including the use of automated collection techniques or other forms of information technology. Mail, email, or fax your comments and recommendations on the information collection(s) to the OMB Desk Officer and SSA Reports Clearance Officer at the following addresses or fax numbers. (OMB), Office of Management and Budget, Attn: Desk Officer for SSA, Fax: 202–395–6974 (SSA), Social Security Administration, OLCA, Attn: Reports Clearance Director, Mail Stop 3253 Altmeyer, 6401 Security Blvd., Baltimore, MD 21235, Fax: 833–410–1631, Email address: OR.Reports.Clearance@ ssa.gov Or you may submit your comments online through https://www.reginfo.gov/ public/do/PRAmain by clicking on Currently under Review—Open for Public Comments and choosing to click on one of SSA’s published items. Please reference Docket ID Number [SSA– 2024–0010] in your submitted response. The information collections below are pending at SSA. SSA will submit them to OMB within 60 days from the date of this notice. To be sure we consider your comments, we must receive them no later than June 10, 2024. Individuals can obtain copies of the collection instruments by writing to the above email address. 1. Supportive Housing & Individual Placement and Support (SHIPS) Study— 0960–NEW. Background: Homelessness and unemployment are linked issues, with rising housing costs often leaving people unable to afford homes when combined with unemployment. The instability of housing makes finding employment even more challenging, creating a difficult cycle to break. While studies have shown that supportive housing programs improve housing stability, there is no significant evidence that such programs reliably increase employment among residents. Conversely, Individual Placement and Support (IPS), a proven method for supporting employment, has not demonstrated effectiveness in PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 stabilizing housing. For the purposes of this study, we define supportive housing as housing services coupled with additional services that include case management support. These include: place-based permanent supportive housing, scattered site permanent supportive housing, and rapid rehousing. SSA is requesting clearance to collect data for the Supportive Housing and Individual Placement and Support (SHIPS) study, under the Interventional Cooperative Agreement Program (ICAP), to determine whether participation in Individual Placement and Support (IPS) improves the employment, income, health, and self-sufficiency of people who are recently homeless and living in supportive housing. ICAP allows SSA to partner with various non-federal groups and organizations to advance interventional research connected to the Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) programs. SSA awarded Westat a cooperative agreement to conduct SHIPS. In addition to SSA, Westat is partnering with three subrecipients for this project: (1) People Assisting the Homeless (PATH), (2) the University of Southern California (U.S.C.), and (3) the Research Foundation for Mental Hygiene (RFMH) to implement the SHIPS study. ICAP SHIPS Study Project Description The SHIPS study is a randomized controlled trial (RCT) designed to determine whether participation in Individual Placement and Support (IPS) improves the employment, income, health, and self-sufficiency of people who are recently homeless and living in supportive housing. The SHIPS study will mark the first study testing the effectiveness of implementing IPS in a supportive housing program. SSA hypothesizes that combining the two most successful evidence-based practices that separately address homelessness and supported employment will yield a single intervention that effectively addresses both. The intent of the SHIPS study is to measure the effectiveness of evidence based IPS compared to the services provided by local WorkSource Centers broadly available to job seekers in the Los Angeles area, The housing case managers will refer PATH clients interested in finding employment and will randomly assign participants to one of two groups: (a) IPS: The Individual Placement and Support (IPS) service team will offer a range of structured services customized to participants’ personal needs, preferences, and challenges related to E:\FR\FM\09APN1.SGM 09APN1

Agencies

[Federal Register Volume 89, Number 69 (Tuesday, April 9, 2024)]
[Notices]
[Pages 24883-24886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07443]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99902; File No. SR-MIAX-2024-17]


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

April 3, 2024.
    Pursuant to the provisions of Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4

[[Page 24884]]

thereunder,\2\ notice is hereby given that on March 22, 2024, Miami 
International Securities Exchange, LLC (``MIAX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') a 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.
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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 proposes to amend the MIAX Options Exchange Fee 
Schedule (the ``Fee Schedule'') to extend the SPIKES Options Market 
Maker Incentive Program (the ``Incentive Program'') until June 30, 
2024.
    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 Fee Schedule to extend the 
Incentive Program until June 30, 2024.
    On September 30, 2021, the Exchange filed its initial proposal to 
implement a SPIKES Options Market Maker Incentive Program for SPIKES 
options to incentivize Market Makers \3\ to improve liquidity, 
available volume, and the quote spread width of SPIKES options 
beginning October 1, 2021, and ending December 31, 2021.\4\ Technical 
details regarding the Incentive Program were published in a Regulatory 
Circular on September 30, 2021.\5\ On October 12, 2021, the Exchange 
withdrew SR-MIAX-2021-45 and refiled its proposal to implement the 
Incentive Program to provide additional details.\6\ In that filing, the 
Exchange specifically noted that the Incentive Program would expire at 
the end of the period (December 31, 2021) unless the Exchange filed 
another 19b-4 Filing to amend the fees (or extend the Incentive 
Program).\7\
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    \3\ The term ``Market Makers'' refers to ``Lead Market Makers'', 
``Primary Lead Market Makers'' and ``Registered Market Makers'' 
collectively. See Exchange Rule 100.
    \4\ See SR-MIAX-2021-45.
    \5\ See MIAX Options Regulatory Circular 2021-56, SPIKES Options 
Market Maker Incentive Program (September 30, 2021) available at 
https://www.miaxglobal.com/sites/default/files/circular-files/MIAX_Options_RC_2021_56.pdf.
    \6\ See Securities Exchange Act Release No. 93424 (October 26, 
2021), 86 FR 60322 (November 1, 2021) (SR-MIAX-2021-49).
    \7\ See id.
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    Between December 23, 2021, and November 29, 2023, the Exchange 
filed several proposals to extend the Incentive Program, with the last 
extension period ending March 31, 2024.\8\ In each of those filings, 
the Exchange specifically noted that the Incentive Program would expire 
at the end of the then-current period unless the Exchange filed another 
19b-4 Filing to amend the fees (or extend the Incentive Program).\9\
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    \8\ See Securities Exchange Act Release Nos. 93881 (December 30, 
2021), 87 FR 517 (January 5, 2022) (SR-MIAX-2021-63); 94574 (April 
1, 2022), 87 FR 20492 (April 7, 2022) (SR-MIAX-2022-12); 95259 (July 
12, 2022), 87 FR 42754 (July 17, 2022) (SR-MIAX-2022-24); 96007 
(October 7, 2022), 87 FR 62151 (October 13, 2022) (SR-MIAX-2022-32); 
96588 (December 28, 2022), 88 FR 381 (January 4, 2023) (SR-MIAX-
2022-47); 97239 (April 3, 2023), 88 FR 20930 (April 7, 2023) (SR-
MIAX-2023-13); 97883 (July 12, 2023), 88 FR 45941 (July 18, 2023) 
(SR-MIAX-2023-26); and 99040 (November 29, 2023), 88 FR 84374 
(December 5, 2023) (SR-MIAX-2023-47).
    \9\ See id.
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    The Exchange now proposes to extend the Incentive Program until 
June 30, 2024.\10\
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    \10\ The Exchange notes that at the end of the extension period, 
the Incentive Program will expire unless the Exchange files another 
19b-4 Filing to amend the terms or extend the Incentive Program.
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    The Exchange proposes to extend the Incentive Program for SPIKES 
options to continue to incentivize Market Makers to improve liquidity, 
available volume, and the quote spread width of SPIKES options. 
Currently, to be eligible to participate in the Incentive Program, a 
Market Maker must meet certain minimum requirements related to quote 
spread width in certain in-the-money (ITM) and out-of-the-money (OTM) 
options as determined by the Exchange and communicated to Members via 
Regulatory Circular.\11\ Market Makers must also satisfy a minimum time 
in the market in the front 2 expiry months of 70%, and have an average 
quote size of 25 contracts. The Exchange established two separate 
incentive compensation pools that are used to compensate Market Makers 
that satisfy the criteria pursuant to the Incentive Program.
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    \11\ See supra note 5.
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    The first pool (Incentive 1) has a total amount of $40,000 per 
month, which is allocated to Market Makers that meet the minimum 
requirements of the Incentive Program. Market Makers are required to 
meet minimum spread width requirements in a select number of ITM and 
OTM SPIKES option contracts as determined by the Exchange and 
communicated to Members via Regulatory Circular.\12\ A complete 
description of how the Exchange calculates the minimum spread width 
requirements in ITM and OTM SPIKES options can be found in the 
published Regulatory Circular.\13\ Market Makers are also required to 
maintain the minimum spread width, described above, for at least 70% of 
the time in the front two (2) SPIKES options contract expiry months and 
maintain an average quote size of at least 25 SPIKES options contracts. 
The amount available to each individual Market Maker is capped at 
$10,000 per month for satisfying the minimum requirements of the 
Incentive Program. In the event that more than four Market Makers meet 
the requirements of the Incentive Program, each qualifying Market Maker 
is entitled to receive a pro-rated share of the $40,000 monthly 
compensation pool dependent upon the number of qualifying Market Makers 
in that particular month.
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    \12\ See id.
    \13\ See id.
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    The second pool (Incentive 2 Pool) is capped at a total amount of 
$100,000 per month which is used during the Incentive Program to 
further incentivize Market Makers who meet or exceed the requirements 
of Incentive 1 (``qualifying Market Makers'') to provide tighter quote 
width spreads. The Exchange ranks each qualifying Market Maker's quote 
width spread relative to each other qualifying Market Maker's quote 
width spread. Market Makers with tighter spreads in certain strikes, as 
determined by the Exchange and communicated to Members via Regulatory 
Circular,\14\ are eligible to receive a pro-rated share of the 
compensation pool as calculated by the Exchange and communicated to 
Members via Regulatory Circular,\15\ not to exceed $25,000 per Member 
per month. Qualifying Market Makers are ranked relative to each other 
based on

[[Page 24885]]

the quality of their spread width (i.e., tighter spreads are ranked 
higher than wider spreads) and the Market Maker with the best quality 
spread width receives the highest rebate, while other eligible 
qualifying Market Makers receive a rebate relative to their quality 
spread width.
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    \14\ See id.
    \15\ See id.
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    The Exchange proposes to extend the Incentive Program until June 
30, 2024. The Exchange does not propose to make any amendments to how 
it calculates any of the incentives provided for in Incentive Pools 1 
or 2. The details of the Incentive Program can continue to be found in 
the Regulatory Circular that was published on September 30, 2021, to 
all Exchange Members.\16\ The purpose of this extension is to continue 
to incentivize Market Makers to improve liquidity, available volume, 
and the quote spread width of SPIKES options. The Exchange will 
announce the extension of the Incentive Program to all Members via a 
Regulatory Circular.
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    \16\ See id.
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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 \17\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \18\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among its members and issuers and other persons using 
its facilities. The Exchange also believes the proposal furthers the 
objectives of Section 6(b)(5) of the Act in that it is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general to protect investors and the public 
interest and is not designed to permit unfair discrimination between 
customers, issuers, brokers and dealers.
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    \17\ 15 U.S.C. 78f(b).
    \18\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that it is reasonable, equitable, and not 
unfairly discriminatory to extend the Incentive Program for Market 
Makers in SPIKES options until June 30, 2024. The Incentive Program is 
reasonably designed because it will continue to incentivize Market 
Makers to provide quotes and increased liquidity in select SPIKES 
options contracts. The Incentive Program is reasonable, equitably 
allocated and not unfairly discriminatory because all Market Makers in 
SPIKES options may continue to qualify for Incentive 1 and Incentive 2, 
dependent upon each Market Maker's quoting in SPIKES options in a 
particular month. Additionally, if a SPIKES Market Maker does not 
satisfy the requirements of Incentive Pool 1 or 2, then it simply will 
not receive the rebate offered by the Incentive Program for that month.
    The Exchange believes that it is reasonable, equitable and not 
unfairly discriminatory to continue to offer this financial incentive 
to SPIKES Market Makers because it will continue to benefit all market 
participants trading in SPIKES options. SPIKES options is a Proprietary 
Product on the Exchange and the continuation of the Incentive Program 
encourages SPIKES Market Makers to satisfy a heightened quoting 
standard, average quote size, and time in market. A continued increase 
in quoting activity and tighter quotes may yield a corresponding 
increase in order flow from other market participants, which benefits 
all investors by deepening the Exchange's liquidity pool, potentially 
providing greater execution incentives and opportunities, while 
promoting market transparency and improving investor protection.
    The Exchange believes that the Incentive Program is equitable and 
not unfairly discriminatory because it will continue to promote an 
increase in SPIKES options liquidity, which may facilitate tighter 
spreads and an increase in trading opportunities to the benefit of all 
market participants. The Exchange believes it is reasonable to operate 
the Incentive Program for a continued limited period of time to 
strengthen market quality for all market participants. The resulting 
increased volume and liquidity will benefit those Members who are 
eligible to participate in the Incentive Program and will also continue 
to benefit those Members who are not eligible to participate in the 
Incentive Program by providing more trading opportunities and tighter 
spreads.

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.
Intra-Market Competition
    The Exchange believes that the proposed extension of the Incentive 
Program to March 31, 2024, would continue to increase intra-market 
competition by incentivizing Market Makers to quote SPIKES options, 
which will continue to enhance the quality of quoting and increase the 
volume of contracts available to trade in SPIKES options. To the extent 
that this purpose is achieved, all the Exchange's market participants 
should benefit from the improved market liquidity for SPIKES options. 
Enhanced market quality and increased transaction volume in SPIKES 
options that results from the anticipated increase in Market Maker 
activity on the Exchange will benefit all market participants and 
improve competition on the Exchange.
Inter-Market Competition
    The Exchange does not believe that the proposed rule changes will 
impose any burden on inter-market competition that is not necessary or 
appropriate in furtherance of the purposes of the Act because the 
proposed extension of the Incentive Program applies only to the Market 
Makers in SPIKES Options, which are traded exclusively on the Exchange.

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

    No written comments were either solicited or received.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act,\19\ and Rule 19b-4(f)(2) \20\ 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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    \19\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \20\ 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-2024-17 on the subject line.

[[Page 24886]]

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-2024-17. 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-MIAX-2024-17 and should be 
submitted on or before April 30, 2024.
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    \21\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-07443 Filed 4-8-24; 8:45 am]
BILLING CODE 8011-01-P
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