Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule for Customer Orders Routed to Another Options Exchange, 58236-58239 [2024-15672]

Download as PDF ddrumheller on DSK120RN23PROD with NOTICES1 58236 Federal Register / Vol. 89, No. 137 / Wednesday, July 17, 2024 / Notices On April 23, 2024, the Commission instituted proceedings pursuant to Rule 608(b)(2)(i) of Regulation NMS 2 under the Exchange Act to determine whether to approve or disapprove the proposed CT Plan or to approve the proposed CT Plan with any changes or subject to any conditions the Commission deems necessary or appropriate after considering public comment.3 Rule 608(b)(2)(i) of Regulation NMS provides that such proceedings shall be concluded within 180 days of the date of publication of notice of the plan or amendment and that the time for conclusion of such proceedings may be extended for up to 60 days (up to 240 days from the date of notice publication) if the Commission determines that a longer period is appropriate and publishes the reasons for such determination or the plan participants consent to a longer period.4 The 180th day after publication of the Notice for the proposed CT Plan is July 23, 2024. The Commission is extending this 180day period. The Commission finds that it is appropriate to designate a longer period within which to conclude proceedings regarding the proposed CT Plan so that it has sufficient time to consider the proposed CT Plan and the comments received. Accordingly, pursuant to Rule 608(b)(2)(i) of Regulation NMS,5 the Commission designates September 21, 2024, as the date by which the Commission shall conclude the proceedings to determine whether to approve or disapprove the proposed CT Plan or to approve the proposed CT Plan with any changes or subject to any conditions the Commission deems necessary or appropriate (File No. 4– 757). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.6 J. Matthew DeLesDernier, Deputy Secretary. Consolidated Equity Market Data, Securities Exchange Act Release No. 99403 (Jan. 19, 2024), 89 FR 5002 (Jan. 25, 2024) (‘‘Notice’’). Comments received in response to the Notice can be found on the Commission’s website at: https://www.sec.gov/ comments/4-757/4-757.htm. 2 17 CFR 242.608(b)(2)(i). 3 See Joint Industry Plan; Order Instituting Proceedings to Determine Whether to Approve or Disapprove a National Market System Plan Regarding Consolidated Equity Market Data, Securities Exchange Act Release No. 100017 (Apr. 23, 2024), 89 FR 33412 (Apr. 29, 2024) (‘‘OIP’’). Comments received in response to the OIP can be found on the Commission’s website at: https:// www.sec.gov/comments/4-757/4-757.htm. 4 See 17 CFR 242.608(b)(2)(i). 5 Id. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change VerDate Sep<11>2014 19:21 Jul 16, 2024 Jkt 262001 [FR Doc. 2024–15670 Filed 7–16–24; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–100502; File No. SR–MIAX– 2024–28] Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule for Customer Orders Routed to Another Options Exchange July 11, 2024. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on June 28, 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 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/all-options-exchanges/rulefilings, at MIAX’s principal office, and at the Commission’s Public Reference Room. 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 PO 00000 6 17 CFR 200.30–3(a)(85). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 Frm 00135 Fmt 4703 Sfmt 4703 Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the exchange grouping of options exchanges within the routing fee table in Section 1)c) of the Fee Schedule, Fees for Customer Orders Routed to Another Options Exchange to adjust the groupings of options exchanges. Background 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 3 (‘‘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.4 As a result of conducting a periodic review of the current transaction fees charged by away markets the Exchange has determined to amend the exchange groupings of options exchanges within the routing fee table to better reflect the associated costs and fees of routing customer orders to certain away markets for execution. Proposal The Exchange proposes to amend the table in Section (1)(c) of the Exchange’s Fee Schedule, Fees for Customer Orders Routed to Another Options Exchange. Under this proposed change, the Exchange will not amend the fees 3 See Exchange Rule 510(c). Cboe U.S. Options Fee Schedules, BZX Options, effective June 13, 2024, ‘‘Fee Codes and Associated Fees,’’ at https://www.cboe.com/us/ options/membership/fee_schedule/bzx/. 4 See E:\FR\FM\17JYN1.SGM 17JYN1 Federal Register / Vol. 89, No. 137 / Wednesday, July 17, 2024 / Notices associated with the exchange groupings. This proposal merely seeks to amend the exchange groupings as described in the routing fee table below. Description Fees ddrumheller on DSK120RN23PROD with NOTICES1 Routed, Priority Customer, Penny Program, to: NYSE American, Cboe, Cboe EDGX Options, Nasdaq PHLX (except SPY), Nasdaq MRX ........................................................................................................................................................................................ Routed, Priority Customer, Penny Program, to: BOX ............................................................................................................................. 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 PHLX, 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, Nasdaq ISE, 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, NOM ........................................................................................................................................................................... Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: Cboe C2, BOX .................................................... Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: NYSE Arca Options, Nasdaq GEMX, Nasdaq MRX, MIAX Pearl, MIAX Emerald, MEMX .......................................................................................................................................... Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: Cboe BZX Options, Nasdaq ISE, Nasdaq BX Options ................................................................................................................................................................................................. Nasdaq MRX Nasdaq MRX recently amended its fee structure to ‘‘no longer offer Maker Rebates for adding liquidity and instead offer Taker Rebates for removing liquidity. With this new structure, the Exchange [Nasdaq MRX] would continue to assess Priority Customers no Maker Fees for Penny and Non-Penny Symbols to continue to encourage Members to send Priority Customer order flow that adds liquidity to MRX and rests on the order book. The Exchange proposes to begin offering Priority Customer Taker Rebates in Penny and Non-Penny Symbols . . .’’ 5 In response to Nasdaq MRX’s filing, the Exchange proposes to adjust the grouping of Nasdaq MRX in both the Penny and Non-Penny tiers in the Exchange’s routing fee table. Specifically, the Exchange proposes to amend the ‘‘Routed, Priority Customer, Penny Program’’ $0.15 fee tier to remove the ‘‘SPY only’’ qualification for orders routed to Nasdaq MRX, so that all Priority Customer orders for Penny Program symbols routed to Nasdaq MRX will be assessed the same $0.15 fee. The Exchange also proposes to amend the ‘‘Routed, Priority Customer, Penny Program’’ $0.30 fee tier to remove Nasdaq MRX from the tier completely, as all Priority Customer orders in the Penny Program are now eligible for the $0.15 tier under this proposal. The Exchange also proposes to amend the ‘‘Routed, Priority Customer, Non-Penny Program’’ $0.15 tier to add Nasdaq MRX. Finally, the Exchange proposes to eliminate the ‘‘Routed, Priority Customer, Non-Penny Program’’ $0.50 5 See Nasdaq MRX proposal (SR–MRX–2024–16). VerDate Sep<11>2014 19:21 Jul 16, 2024 Jkt 262001 58237 tier in its entirety as Nasdaq MRX was the only destination exchange in this tier, and given Nasdaq MRX’s recent fee schedule change this tier is now obsolete. BOX The Exchange proposes to remove ‘‘BOX (except SPY)’’ from the ‘‘Routed, Priority Customer, Penny Program’’ $0.15 tier. The Exchange also proposes to amend the ‘‘Routed, Priority Customer, Penny Program’’ $0.30 tier to remove the qualification of ‘‘SPY only’’ so that all Priority Customer orders for Penny Program symbols routed to BOX will similarly be assessed a $0.30 fee. This change is being made as BOX recently amended its fee schedule and now assesses a $0.10 Taker fee for Public Customer orders that remove liquidity in SPY, QQQ, and IWM.6 The purpose of the proposal is to adjust the routing fee groups for orders routed to other exchanges to better reflect the associated costs for that routed execution in Penny and NonPenny Classes as determined by the fees and rebates at the executing exchange. In determining to amend its groupings the Exchange took into account transaction fees assessed by the away market to which the Exchange routes orders, as well as the Exchange’s clearing costs, administrative, regulatory, and technical costs associated with routing orders to an away market. The Exchange uses unaffiliated routing brokers to route orders to the away markets; the costs associated with the use of these services 6 See BOX Exchange Fee Schedule, Section IV, Electronic Transaction Fees, A, Non-Auction Transactions. PO 00000 Frm 00136 Fmt 4703 Sfmt 4703 $0.15 0.30 0.65 0.15 1.00 0.65 1.00 1.15 1.25 1.40 are included in the routing fees specified in the Fee Schedule. This routing fee structure is not only similar to the Exchange’s affiliates, MIAX Pearl and MIAX Emerald, but is also comparable to the structure in place on at least one other competing options exchange, Cboe BZX Options.7 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 at that corresponding exchange. The Exchange notes that in determining whether to adjust certain groupings of options exchanges in the routing fee table, the Exchange considered the transaction fees 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 7 See supra note 4. The Cboe BZX Options fee schedule has exchange groupings, whereby several exchanges are grouped into the same category, dependent on the order’s Origin type and whether it is a Penny or Non-Penny class. 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 goal regarding routing fees and expenses is to be as close as possible to net neutral. E:\FR\FM\17JYN1.SGM 17JYN1 58238 Federal Register / Vol. 89, No. 137 / Wednesday, July 17, 2024 / Notices Exchange’s Members 9 will be assessed routing fees in a similar manner. The Exchange notes that its affiliates, MIAX Pearl and MIAX Emerald, will file to make the same proposed routing fee changes contained herein. ddrumheller on DSK120RN23PROD with NOTICES1 Implementation The proposed rule changes will become effective on July 1, 2024. 2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6(b) of the Act 10 in general, and furthers the objectives of Section 6(b)(4) of the Act 11 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 12 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 the proposed changes 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 changes to the routing fee table exchange groupings furthers the objectives of Section 6(b)(5) of the Act and is designed to promote just and equitable principles of trade and is not unfairly discriminatory because the proposed changes seek to recoup costs that are incurred by the Exchange when routing Priority and Public Customer Orders to away markets on behalf of Members and does so in the same manner for all Members that are subject to routing fees. The costs to the Exchange to route orders to away markets for execution primarily includes transaction fees assessed by the away markets to which the Exchange routes orders, in addition 9 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. 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(4). 12 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 19:21 Jul 16, 2024 Jkt 262001 to the Exchange’s clearing costs, administrative, regulatory and technical costs. The Exchange believes that the proposed re-categorization of certain exchange groupings would enable the Exchange to better reflect the costs and fees associated with routing orders to other exchanges for execution. The Exchange places away markets in the fee tier grouping that best approximates the Exchange’s costs and fees to route the orders in that segment to that away market. The per-contract transaction fee amount associated with each grouping approximates the Exchange’s all-in cost (plus an additional, non-material amount) 13 to execute the corresponding contract at the corresponding exchange. The Exchange believes its tier structure represents the best approach to reflect the costs and fees associated with routing and executing orders on other exchanges. 19(b)(3)(A)(ii) of the Act,15 and Rule 19b–4(f)(2) 16 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange’s proposed re-categorization of certain exchange groupings is intended to enable the Exchange to recover the costs it incurs to route orders to away markets. The costs to the Exchange to route orders to away markets for execution primarily includes the transaction fees 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 does not believe that this proposal imposes any unnecessary burden on competition because it seeks to better reflect the costs and fees incurred by the Exchange when routing orders to away markets on behalf of Members and notes that at least one other options exchange has a similar routing fee structure.14 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–2024–28 on the subject line. 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 PO 00000 13 See 14 See supra note 8. supra note 4. Frm 00137 Fmt 4703 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: 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–2024–28. 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 15 15 16 17 Sfmt 4703 E:\FR\FM\17JYN1.SGM U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 17JYN1 Federal Register / Vol. 89, No. 137 / Wednesday, July 17, 2024 / Notices 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–2024–28 and should be submitted on or before August 7, 2024. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 J. Matthew DeLesDernier, Deputy Secretary. [FR Doc. 2024–15672 Filed 7–16–24; 8:45 am] BILLING CODE 8011–01–P All other information in the original declaration remains unchanged. (Catalog of Federal Domestic Assistance Number 59008) Francisco Sánchez, Jr., Associate Administrator, Office of Disaster Recovery & Resilience. [FR Doc. 2024–15639 Filed 7–16–24; 8:45 am] BILLING CODE 8026–09–P SMALL BUSINESS ADMINISTRATION Privacy Act of 1974; Matching Program Office of Government Contracting and Business Development, U.S. Small Business Administration. ACTION: Notice of a new matching program. AGENCY: The United States Small Business Administration (SBA) and Department of Veteran Affairs (VA) pursuant to the National Defense Authorization Act for Fiscal Year 2021 and transferred the responsibility for certification of Veteran-Owned Small Businesses (VOSB) and ServiceDisabled Veteran-Owned Small Businesses (SDVOSB) to SBA as of January 1, 2023 (Transfer Date). This proposed new Computer Matching program seeks to ensure that applicants for SBA Veteran Small Business Certification Program are eligible as qualifying veterans. This will be accomplished by matching specific VA data with SBA data to determine what applicants and participants meet SBA’s Veteran Small Business Certification Program criteria. This new Agreement, between SBA and VA, will terminate the existing Agreement published, December 15, 2022, Computer Matching Agreement Between U.S. Small Business Administration and U.S. Department of Veteran Affairs (VA). DATES: Submit comments on or before August 16, 2024. This new matching agreement will be effective upon publication and expires 18 months from the date of publication. ADDRESSES: You may submit comments or inquiries on this proposed matching program, identified by DOCKET NUMBER SBA–2024–0009 or inquiries and comments can be addressed to: Larry Stubblefield, Deputy Associate Administrator, Office of Government Contracting and Business Development, Larry.Stubblefield@sba.gov, (202) 205– 6572). FOR FURTHER INFORMATION CONTACT: For general information, please contact: John Perkins, Supervisory Program Specialist, Office of Government Contract Business Development, email: SUMMARY: SMALL BUSINESS ADMINISTRATION [Disaster Declaration #20415 and #20416; IOWA Disaster Number IA–20005] Presidential Declaration Amendment of a Major Disaster for the State of Iowa Small Business Administration. Amendment 2. AGENCY: ACTION: This is an amendment of the Presidential declaration of a major disaster for the State of Iowa (FEMA– 4796–DR), dated 06/24/2024. Incident: Severe Storms, Flooding, Straight-line Winds, and Tornadoes. Incident Period: 06/16/2024 and continuing. SUMMARY: Issued on 07/09/2024. Physical Loan Application Deadline Date: 08/23/2024. Economic Injury (EIDL) Loan Application Deadline Date: 03/24/2025. ADDRESSES: Visit the MySBA Loan Portal at https://lending.sba.gov to apply for a disaster assistance loan. FOR FURTHER INFORMATION CONTACT: Vanessa Morgan, Office of Disaster Recovery & Resilience, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205–6734. SUPPLEMENTARY INFORMATION: The notice of the President’s major disaster declaration for the State of Iowa, dated 06/24/2024, is hereby amended to include the following areas as adversely affected by the disaster: Primary Counties (Physical Damage and Economic Injury Loans): Woodbury. Contiguous Counties (Economic Injury Loans Only): Iowa: Crawford, Monona Nebraska: Dakota, Thurston ddrumheller on DSK120RN23PROD with NOTICES1 DATES: 17 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 19:21 Jul 16, 2024 Jkt 262001 PO 00000 Frm 00138 Fmt 4703 Sfmt 4703 58239 John.Perkins@sba.gov, (202) 798–7750 or Jason Hoge, Executive Director, Product Engineering (Acting), email Jason.Hodge@va.gov telephone (612) 725–4337; for Security Information: Kelvin Moore, SBA Chief Information Security Officer/Deputy Chief Information Officer (Acting), Office of the Chief Information Officer, email: Kelvin.Moore@sba.gov, ((202) 921–6273) and for Privacy related: LaWanda Burnette, Chief Privacy Officer, Office of the Chief Information Officer, email: LaWanda.Burnette@sba.gov, (202) 853– 0851. The Agreement between SBA and VA is expected to aid in the transition and identifying qualified veterans. VA maintains a list of veterans and servicedisabled veterans and will provide SBA with this data. To accomplish this, VA and SBA will participate in a Computer Matching program to match data to identify what veterans are qualifying veterans and to verify eligibility for SBA’s certification program. The average number of records being matched on an annual basis is 21,468. Participating Agencies: U.S. Department of Veteran Affairs and U.S. Small Business Administration. SUPPLEMENTARY INFORMATION: Authority for Conducting the Matching Program 1. Section 862 of the National Defense Authorization Act for Fiscal Year 2021, Public Law 116–283, 134 Stat. 3388 (January 1, 2021) (NDAA 2021), amended 38 U.S.C 8127 and transferred the responsibility for certification of VOSB and SDVOSB for VA procurements to SBA as of January 1, 2023 (Transfer Date). NDAA 2021 also amended Section 36 of the Small Business Act to create a certification requirement for SDVOSBs seeking sole source and set-aside contracts across the Federal Government. 2. Pursuant to section 862(b) of the NDAA 2021, VA shall verify an individual’s status as a veteran or a service-disabled veteran and establish a system to permit SBA to access, but not alter, the verification of such status. 3. Pursuant to section 862(d) of the NDAA 2021, upon request by SBA, federal agencies shall provide data that SBA determines to be necessary to carry out the certification of a small business concern owned and controlled by veterans or service-disabled under sections 36 and 36A of the Small Business Act. Purpose(s): To be eligible for certification in SBA’s Veteran Small Business Certification Program, an applicant’s small business must be E:\FR\FM\17JYN1.SGM 17JYN1

Agencies

[Federal Register Volume 89, Number 137 (Wednesday, July 17, 2024)]
[Notices]
[Pages 58236-58239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15672]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-100502; File No. SR-MIAX-2024-28]


Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Fee Schedule for Customer Orders 
Routed to Another Options Exchange

July 11, 2024.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on June 28, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange 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/all-options-exchanges/rule-filings, at MIAX's principal office, and at the 
Commission's Public Reference Room.

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

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

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

1. Purpose
    The Exchange proposes to amend the exchange grouping of options 
exchanges within the routing fee table in Section 1)c) of the Fee 
Schedule, Fees for Customer Orders Routed to Another Options Exchange 
to adjust the groupings of options exchanges.
Background
    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 \3\ (``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.\4\
---------------------------------------------------------------------------

    \3\ See Exchange Rule 510(c).
    \4\ See Cboe U.S. Options Fee Schedules, BZX Options, effective 
June 13, 2024, ``Fee Codes and Associated Fees,'' at https://www.cboe.com/us/options/membership/fee_schedule/bzx/.
---------------------------------------------------------------------------

    As a result of conducting a periodic review of the current 
transaction fees charged by away markets the Exchange has determined to 
amend the exchange groupings of options exchanges within the routing 
fee table to better reflect the associated costs and fees of routing 
customer orders to certain away markets for execution.
Proposal
    The Exchange proposes to amend the table in Section (1)(c) of the 
Exchange's Fee Schedule, Fees for Customer Orders Routed to Another 
Options Exchange.
    Under this proposed change, the Exchange will not amend the fees

[[Page 58237]]

associated with the exchange groupings. This proposal merely seeks to 
amend the exchange groupings as described in the routing fee table 
below.

------------------------------------------------------------------------
                        Description                              Fees
------------------------------------------------------------------------
Routed, Priority Customer, Penny Program, to: NYSE                 $0.15
 American, Cboe, Cboe EDGX Options, Nasdaq PHLX (except
 SPY), Nasdaq MRX..........................................
Routed, Priority Customer, Penny Program, to: BOX..........         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 PHLX,
 Nasdaq MRX................................................
Routed, Priority Customer, Non-Penny Program, to: NYSE Arca         1.00
 Options, Cboe BZX Options, Cboe C2, MIAX Pearl, MIAX
 Emerald, Nasdaq GEMX, NOM, Nasdaq BX Options, Nasdaq ISE,
 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, NOM....................................
Routed, Public Customer that is not a Priority Customer,            1.15
 Non-Penny Program, to: Cboe C2, BOX.......................
Routed, Public Customer that is not a Priority Customer,            1.25
 Non-Penny Program, to: NYSE Arca Options, Nasdaq GEMX,
 Nasdaq MRX, MIAX Pearl, MIAX Emerald, MEMX................
Routed, Public Customer that is not a Priority Customer,            1.40
 Non-Penny Program, to: Cboe BZX Options, Nasdaq ISE,
 Nasdaq BX Options.........................................
------------------------------------------------------------------------

Nasdaq MRX
    Nasdaq MRX recently amended its fee structure to ``no longer offer 
Maker Rebates for adding liquidity and instead offer Taker Rebates for 
removing liquidity. With this new structure, the Exchange [Nasdaq MRX] 
would continue to assess Priority Customers no Maker Fees for Penny and 
Non-Penny Symbols to continue to encourage Members to send Priority 
Customer order flow that adds liquidity to MRX and rests on the order 
book. The Exchange proposes to begin offering Priority Customer Taker 
Rebates in Penny and Non-Penny Symbols . . .'' \5\ In response to 
Nasdaq MRX's filing, the Exchange proposes to adjust the grouping of 
Nasdaq MRX in both the Penny and Non-Penny tiers in the Exchange's 
routing fee table.
---------------------------------------------------------------------------

    \5\ See Nasdaq MRX proposal (SR-MRX-2024-16).
---------------------------------------------------------------------------

    Specifically, the Exchange proposes to amend the ``Routed, Priority 
Customer, Penny Program'' $0.15 fee tier to remove the ``SPY only'' 
qualification for orders routed to Nasdaq MRX, so that all Priority 
Customer orders for Penny Program symbols routed to Nasdaq MRX will be 
assessed the same $0.15 fee. The Exchange also proposes to amend the 
``Routed, Priority Customer, Penny Program'' $0.30 fee tier to remove 
Nasdaq MRX from the tier completely, as all Priority Customer orders in 
the Penny Program are now eligible for the $0.15 tier under this 
proposal. The Exchange also proposes to amend the ``Routed, Priority 
Customer, Non-Penny Program'' $0.15 tier to add Nasdaq MRX. Finally, 
the Exchange proposes to eliminate the ``Routed, Priority Customer, 
Non-Penny Program'' $0.50 tier in its entirety as Nasdaq MRX was the 
only destination exchange in this tier, and given Nasdaq MRX's recent 
fee schedule change this tier is now obsolete.
BOX
    The Exchange proposes to remove ``BOX (except SPY)'' from the 
``Routed, Priority Customer, Penny Program'' $0.15 tier. The Exchange 
also proposes to amend the ``Routed, Priority Customer, Penny Program'' 
$0.30 tier to remove the qualification of ``SPY only'' so that all 
Priority Customer orders for Penny Program symbols routed to BOX will 
similarly be assessed a $0.30 fee. This change is being made as BOX 
recently amended its fee schedule and now assesses a $0.10 Taker fee 
for Public Customer orders that remove liquidity in SPY, QQQ, and 
IWM.\6\
---------------------------------------------------------------------------

    \6\ See BOX Exchange Fee Schedule, Section IV, Electronic 
Transaction Fees, A, Non-Auction Transactions.
---------------------------------------------------------------------------

    The purpose of the proposal is to adjust the routing fee groups for 
orders routed to other exchanges to better reflect the associated costs 
for that routed execution in Penny and Non-Penny Classes as determined 
by the fees and rebates at the executing exchange. In determining to 
amend its groupings the Exchange took into account transaction fees 
assessed by the away market to which the Exchange routes orders, as 
well as the Exchange's clearing costs, administrative, regulatory, and 
technical costs associated with routing orders to an away market. The 
Exchange uses unaffiliated routing brokers to route orders to the away 
markets; the costs associated with the use of these services are 
included in the routing fees specified in the Fee Schedule. This 
routing fee structure is not only similar to the Exchange's affiliates, 
MIAX Pearl and MIAX Emerald, but is also comparable to the structure in 
place on at least one other competing options exchange, Cboe BZX 
Options.\7\ 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 at that 
corresponding exchange.
---------------------------------------------------------------------------

    \7\ See supra note 4. The Cboe BZX Options fee schedule has 
exchange groupings, whereby several exchanges are grouped into the 
same category, dependent on the order's Origin type and whether it 
is a Penny or Non-Penny class.
    \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 goal 
regarding routing fees and expenses is to be as close as possible to 
net neutral.
---------------------------------------------------------------------------

    The Exchange notes that in determining whether to adjust certain 
groupings of options exchanges in the routing fee table, the Exchange 
considered the transaction fees 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

[[Page 58238]]

Exchange's Members \9\ will be assessed routing fees in a similar 
manner. The Exchange notes that its affiliates, MIAX Pearl and MIAX 
Emerald, will file to make the same proposed routing fee changes 
contained herein.
---------------------------------------------------------------------------

    \9\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associated with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
---------------------------------------------------------------------------

Implementation
    The proposed rule changes will become effective on July 1, 2024.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act \10\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \11\ 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 \12\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed changes 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 changes to 
the routing fee table exchange groupings furthers the objectives of 
Section 6(b)(5) of the Act and is designed to promote just and 
equitable principles of trade and is not unfairly discriminatory 
because the proposed changes seek to recoup costs that are incurred by 
the Exchange when routing Priority and Public Customer Orders to away 
markets on behalf of Members and does so in the same manner for all 
Members that are subject to routing fees. The costs to the Exchange to 
route orders to away markets for execution primarily includes 
transaction fees assessed by the away markets to which the Exchange 
routes orders, in addition to the Exchange's clearing costs, 
administrative, regulatory and technical costs. The Exchange believes 
that the proposed re-categorization of certain exchange groupings would 
enable the Exchange to better reflect the costs and fees associated 
with routing orders to other exchanges for execution.
    The Exchange places away markets in the fee tier grouping that best 
approximates the Exchange's costs and fees to route the orders in that 
segment to that away market. The per-contract transaction fee amount 
associated with each grouping approximates the Exchange's all-in cost 
(plus an additional, non-material amount) \13\ to execute the 
corresponding contract at the corresponding exchange. The Exchange 
believes its tier structure represents the best approach to reflect the 
costs and fees associated with routing and executing orders on other 
exchanges.
---------------------------------------------------------------------------

    \13\ See supra note 8.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The Exchange's proposed re-
categorization of certain exchange groupings is intended to enable the 
Exchange to recover the costs it incurs to route orders to away 
markets. The costs to the Exchange to route orders to away markets for 
execution primarily includes the transaction fees 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 does not believe that this proposal imposes any 
unnecessary burden on competition because it seeks to better reflect 
the costs and fees incurred by the Exchange when routing orders to away 
markets on behalf of Members and notes that at least one other options 
exchange has a similar routing fee structure.\14\
---------------------------------------------------------------------------

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

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

    Written comments were neither solicited nor received.

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

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

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-MIAX-2024-28 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-2024-28. 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

[[Page 58239]]

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-2024-28 and should be submitted on 
or before August 7, 2024.

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

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

J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-15672 Filed 7-16-24; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.