Self-Regulatory Organizations; MIAX Emerald, 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, 58221-58224 [2024-15674]
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ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 89, No. 137 / Wednesday, July 17, 2024 / Notices
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Deputy Secretary.
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:
[FR Doc. 2024–15671 Filed 7–16–24; 8:45 am]
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–
CboeEDGX–2024–042 on the subject
line.
Self-Regulatory Organizations; MIAX
Emerald, 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
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–CboeEDGX–2024–042. 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–CboeEDGX–2024–042 and should be
submitted on or before August 7, 2024.
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19:21 Jul 16, 2024
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100504; File No. SR–
EMERALD–2024–17]
July 11, 2024.
Pursuant to the provisions of 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, MIAX Emerald, LLC
(‘‘MIAX Emerald’’ 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 Emerald Options Exchange Fee
Schedule (the ‘‘Fee Schedule’’).
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxglobal.com/markets/
us-options/miax-options/rule-filings, at
the Exchange’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
PO 00000
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Fmt 4703
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58221
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) [sic] 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, Miami
International Securities Exchange, LLC
(‘‘MIAX Options’’) and MIAX PEARL,
LLC (‘‘MIAX Pearl’’). 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)b) 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 March 1, 2024, ‘‘Fee Codes and
Associated Fees,’’ at https://www.cboe.com/us/
options/membership/fee_schedule/bzx/.
4 See
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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, MIAX, 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 Pearl, Nasdaq BX Options, MEMX .....................................................................................
Routed, Priority Customer, Non-Penny Program, to: NYSE American, BOX, Cboe, Cboe EDGX Options, MIAX, Nasdaq PHLX,
Nasdaq MRX ........................................................................................................................................................................................
Routed, Priority Customer, Non-Penny Program, to: NYSE Arca Options, Cboe BZX Options, Cboe C2, MIAX Pearl, 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, MIAX Pearl, NOM,
Nasdaq PHLX, Nasdaq BX Options, MEMX .......................................................................................................................................
Routed, Public Customer that is not a Priority Customer, Non-Penny Program, to: MIAX, 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, 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).
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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 assessed 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
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$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
Options and MIAX Pearl, 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 Options and MIAX Pearl, 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.
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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
Options and MIAX Pearl, 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).
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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–
EMERALD–2024–17 on the subject line.
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
PO 00000
13 See
14 See
supra note 8.
supra note 4.
Frm 00122
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–EMERALD–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
15 15
16 17
Sfmt 4703
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U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
17JYN1
58224
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–EMERALD–2024–17 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. 2024–15674 Filed 7–16–24; 8:45 am]
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Vanessa A. Countryman,
Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100499; File No. SR–LTSE–
2024–03]
Self-Regulatory Organizations; LongTerm Stock Exchange, Inc.; Notice of
Designation of a Longer Period for
Commission Action on a Proposed
Rule Change To Transition to a New
Trading Platform and Amend Its
Trading Rules
ddrumheller on DSK120RN23PROD with NOTICES1
July 11, 2024.
On May 9, 2024, Long-Term Stock
Exchange, Inc. filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
transition to a new trading platform and
amend its trading rules. The proposed
rule change was published for comment
in the Federal Register on May 28,
2024.3 The Commission has received no
comments on the proposed rule change.
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding, or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
17 17
disapproved. The 45th day after
publication of the notice for this
proposed rule change is July 12, 2024.
The Commission is extending this 45day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,5
designates August 26, 2024 as the date
by which the Commission shall either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–LTSE–2024–03).
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 100205
(May 21, 2024), 89 FR 46225.
4 15 U.S.C. 78s(b)(2).
[FR Doc. 2024–15669 Filed 7–16–24; 8:45 am]
BILLING CODE 8011–01–P
19:21 Jul 16, 2024
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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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100503; File No. SR–
PEARL–2024–29]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX Pearl
Options 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, MIAX PEARL, LLC (‘‘MIAX Pearl’’
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 Pearl Options Fee
Schedule (‘‘Fee Schedule’’).
The text of the proposed rule change
is available on the Exchange’s website at
1 15
VerDate Sep<11>2014
https://www.miaxglobal.com/markets/
us-options/pearl-options/rule-filings at
MIAX Pearl’s principal office, and at the
Commission’s Public Reference Room.
PO 00000
The Exchange proposes to amend the
exchange grouping of options exchanges
within the routing fee table in Section
1)b) 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, Miami
International Securities Exchange, LLC
(‘‘MIAX Options’’) 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
5 Id.
6 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00123
Fmt 4703
Sfmt 4703
3 See
Exchange Rule 510(c).
Cboe U.S. Options Fee Schedules, BZX
Options, effective March 1, 2024, ‘‘Fee Codes and
4 See
E:\FR\FM\17JYN1.SGM
17JYN1
]]>Agencies
[Federal Register Volume 89, Number 137 (Wednesday, July 17, 2024)]
[Notices]
[Pages 58221-58224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15674]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100504; File No. SR-EMERALD-2024-17]
Self-Regulatory Organizations; MIAX Emerald, 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 the provisions of 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, MIAX Emerald, LLC (``MIAX
Emerald'' 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 Emerald Options Exchange
Fee Schedule (the ``Fee Schedule'').
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-options/miax-options/rule-filings, at the Exchange'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) [sic] 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, Miami
International Securities Exchange, LLC (``MIAX Options'') and MIAX
PEARL, LLC (``MIAX Pearl''). 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\
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\3\ See Exchange Rule 510(c).
\4\ See Cboe U.S. Options Fee Schedules, BZX Options, effective
March 1, 2024, ``Fee Codes and Associated Fees,'' at https://www.cboe.com/us/options/membership/fee_schedule/bzx/.
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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)b) 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 58222]]
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, MIAX, 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 Pearl, Nasdaq BX
Options, MEMX.............................................
Routed, Priority Customer, Non-Penny Program, to: NYSE 0.15
American, BOX, Cboe, Cboe EDGX Options, MIAX, Nasdaq PHLX,
Nasdaq MRX................................................
Routed, Priority Customer, Non-Penny Program, to: NYSE Arca 1.00
Options, Cboe BZX Options, Cboe C2, MIAX Pearl, 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, MIAX Pearl, NOM,
Nasdaq PHLX, Nasdaq BX Options, MEMX......................
Routed, Public Customer that is not a Priority Customer, 1.00
Non-Penny Program, to: MIAX, 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, 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.
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\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\
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\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 assessed 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 Options and MIAX Pearl, 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 Options and MIAX Pearl, the
[[Page 58223]]
Exchange's Members \9\ will be assessed routing fees in a similar
manner. The Exchange notes that its affiliates, MIAX Options and MIAX
Pearl, will file to make the same proposed routing fee changes
contained herein.
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\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.
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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.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(4).
\12\ 15 U.S.C. 78f(b)(5).
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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.
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\13\ See supra note 8.
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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\
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\14\ See supra note 4.
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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,\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.
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\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-EMERALD-2024-17 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-EMERALD-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
[[Page 58224]]
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-EMERALD-2024-17 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\
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\17\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-15674 Filed 7-16-24; 8:45 am]
BILLING CODE 8011-01-P
