Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 66471-66473 [2024-18202]
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Federal Register / Vol. 89, No. 158 / Thursday, August 15, 2024 / Notices
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to list and trade shares of the
Hashdex Nasdaq Crypto Index US ETF
under Nasdaq Rule 5711(d),
Commodity-Based Trust Shares. The
proposed rule change was published for
comment in the Federal Register on July
2, 2024.3 The Commission has received
no comments on the proposal.
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for this
proposed rule change is August 16,
2024. The Commission is extending this
45-day 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
and the issues raised therein.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,5
designates September 30, 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–NASDAQ–
2024–028).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–18199 Filed 8–14–24; 8:45 am]
khammond on DSKJM1Z7X2PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100685; File No. SR–MIAX–
2024–31]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fee Schedule
August 9, 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 July 31, 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.
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 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 100434
(June 26, 2024), 89 FR 54868.
4 15 U.S.C. 78s(b)(2).
5 15 U.S.C. 78s(b)(2).
6 17 CFR 200.30–3(a)(31).
2 17
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1. Purpose
The Exchange proposes to amend the
exchange grouping of options exchanges
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00130
Fmt 4703
Sfmt 4703
66471
within the routing fee table in Section
(1)(c) of the Fee Schedule, Fees for
Customer Orders Routed to Another
Options Exchange, to reflect the recent
addition of a new national securities
exchange, MIAX Sapphire, LLC (‘‘MIAX
Sapphire’’),3 to be listed in the routing
fee table. The Exchange proposes to
implement the fee change effective
August 1, 2024.
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 4 (‘‘Penny
classes’’) or an order for standard option
classes which are not in the Penny
Interval Program (‘‘Non-Penny classes’’)
(or other explicitly identified classes);
and (iii) to which away market it is
being routed. This assessment practice
is identical to the routing fees
assessment practice currently utilized
by the Exchange’s affiliates, MIAX
PEARL, LLC (‘‘MIAX Pearl’’) and MIAX
Emerald, LLC (‘‘MIAX Emerald’’). This
is also similar to the methodology
utilized by the Cboe BZX Exchange, Inc.
(‘‘Cboe BZX Options’’), a competing
options exchange, in assessing routing
fees. Cboe BZX Options has exchange
groupings in its fee schedule, similar to
those of the Exchange, whereby several
exchanges are grouped into the same
category dependent upon the order’s
origin type and whether it is a Penny or
Non-Penny class.5
As a result of the anticipated launch
of MIAX Sapphire in the third quarter
of 2024, the Exchange has determined to
amend the exchange groupings of
options exchanges within the routing
fee table to include MIAX Sapphire and
the anticipated associated costs of
routing customer orders to MIAX
Sapphire for execution.
The impact of this proposed change
will be increased routing options for
Members.6 The Exchange notes that
routing through the Exchange is
optional and that Members will
continue to be able to choose where to
route applicable Member orders. Under
3 See Securities Exchange Act Release No. 100539
(July 15, 2024), 89 FR 58848 (July 19, 2024) (File
No. 10–240) (order approving application of MIAX
Sapphire, LLC for registration as a national
securities exchange).
4 See Exchange Rule 510(c).
5 See Cboe U.S. Options Fee Schedules, BZX
Options, effective July 15, 2024, ‘‘Fee Codes and
Associated Fees,’’ at https://www.cboe.com/us/
options/membership/fee_schedule/bzx/.
6 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.
E:\FR\FM\15AUN1.SGM
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66472
Federal Register / Vol. 89, No. 158 / Thursday, August 15, 2024 / Notices
this proposed change, the Exchange will
not amend the fees associated with the
exchange groupings. This proposal
merely seeks to add MIAX Sapphire to
the exchange groupings as described in
the routing fee table below.
According, with the proposed change,
the routing fee table will be as follows:
Description
Fees
Routed, Priority Customer, Penny Program, to: NYSE American, Cboe, Cboe EDGX Options, Nasdaq PHLX (except SPY), Nasdaq
MRX, MIAX Sapphire ...................................................................................................................................................................................
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,
MIAX Sapphire .............................................................................................................................................................................................
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, MIAX Sapphire ..................................................................................................................................
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, MIAX Sapphire ..................................
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
khammond on DSKJM1Z7X2PROD with NOTICES
In determining to amend its routing
fee table to determine which category
MIAX Sapphire belongs to the Exchange
took into account anticipated
transaction fees and rebates assessed by
the away markets to which the
Exchange routes orders, as well as the
Exchange’s clearing costs,
administrative, regulatory, and technical
costs associated with routing orders to
an away market. The Exchange uses
unaffiliated routing brokers to route
orders to the away markets; the costs
associated with the use of these services
are included in the routing fees
specified in the Fee Schedule. This
routing fees structure is not only similar
to the Exchange’s affiliates, MIAX Pearl
and MIAX Emerald, but is also
comparable to the structure in place at
Cboe BZX Options,7 a competing
options exchange. The Exchange’s
routing fee structure approximates the
Exchange’s costs associated with routing
orders to away markets. The percontract transaction fee amount
associated with each grouping closely
approximates the Exchange’s all-in cost
(plus an additional, non-material
amount) 8 to execute that corresponding
contract(s) at that corresponding
exchange. The Exchange notes that in
determining whether to include certain
7 The Cboe BZX Options fee schedule is similar
to the Exchange’s Fee Schedule in that it has
exchange groupings, whereby several exchanges are
grouped into the same category. See supra note 5.
8 This amount is to cover de minimis differences/
changes to away market fees (i.e., minor increases
or decreases) that would not necessitate a fee filing
by the Exchange to re-categorize the away exchange
into a different grouping. Routing fees are not
intended to be a profit center for the Exchange and
the Exchange’s target regarding routing fees and
expenses is to be as close as possible to net neutral.
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17:25 Aug 14, 2024
Jkt 262001
exchanges in a certain groupings of
options exchanges in the routing fee
table, the Exchange considered the
transaction fees and rebates assessed by
away markets, and determined to amend
the grouping of exchanges that assess
transaction fees for routed orders within
a similar range. This same logic and
structure applies to all of the groupings
in the routing fee table. By utilizing the
same structure that is utilized by the
Exchange’s affiliates, MIAX Pearl and
MIAX Emerald, the Exchange’s
Members will be assessed routing fees
in a similar manner. The Exchange
believes that this structure will
minimize any confusion as to the
method of assessing routing fees
between the three exchanges. The
Exchange notes that its affiliates, MIAX
Pearl and MIAX Emerald, will file to
make the same proposed routing fee
changes contained herein.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 9
in general, and furthers the objectives of
Section 6(b)(4) of the Act 10 in
particular, in that it is an equitable
allocation of reasonable dues, fees, and
other charges among its members and
issuers and other persons using its
facilities. The Exchange also believes
the proposal furthers the objectives of
Section 6(b)(5) of the Act 11 in that it is
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
11 15 U.S.C. 78f(b)(5).
10 15
PO 00000
Frm 00131
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Sfmt 4703
$0.15
0.30
0.65
0.15
1.00
0.65
1.00
1.15
1.25
1.40
mechanism of a free and open market
and a national market system, and, in
general to protect investors and the
public interest and is not designed to
permit unfair discrimination between
customers, issuers, brokers and dealers.
The Exchange believes the proposed
change to add MIAX Sapphire to the
exchange groupings of options
exchanges within the routing fee table
furthers the objectives of Section 6(b)(4)
of the Act and is reasonable, equitable
and not unfairly discriminatory because
the proposed change will continue to
apply in the same manner to all
Members that are subject to routing fees.
The Exchange believes the proposed
change to add MIAX Sapphire to the
routing fee table of exchange groupings
furthers the objectives of Section 6(b)(5)
of the Act and is designed to promote
just and equitable principles of trade
and is not unfairly discriminatory
because the proposed change seeks to
recoup costs that will be incurred by the
Exchange when routing customer orders
to MIAX Sapphire on behalf of Members
and does so in the same manner to all
Members that are subject to routing fees.
The costs to the Exchange to route
orders to away markets for execution
primarily includes transaction fees and
rebates assessed by the away markets to
which the Exchange routes orders, in
addition to the Exchange’s clearing
costs, administrative, regulatory and
technical costs. The Exchange believes
that the proposed addition of MIAX
Sapphire to the exchange groupings
would increase the routing options
available to Members. The per-contract
transaction fee amount associated with
each grouping approximates the
Exchange’s all-in cost (plus an
E:\FR\FM\15AUN1.SGM
15AUN1
Federal Register / Vol. 89, No. 158 / Thursday, August 15, 2024 / Notices
Electronic Comments
additional, non-material amount) to
execute the corresponding contract at
the corresponding exchange.
The Exchange believes that the
proposed rule change is equitable and
not unfairly discriminatory because all
Members’ orders in Penny classes and
Non-Penny classes routed to MIAX
Sapphire will be uniformly assessed the
corresponding fee.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe the proposed
rule change to add MIAX Sapphire to
the routing fee table will impose any
burden on intramarket competition.
Rather, the Exchange believes that the
proposal will promote competition by
increasing the available away markets to
which Members can route orders to.
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,12 and Rule
19b–4(f)(2) 13 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.
khammond on DSKJM1Z7X2PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
MIAX–2024–31 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–2024–31. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–MIAX–2024–31 and should be
submitted on or before September 5,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–18202 Filed 8–14–24; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100682; File No. SRCboeEDGA–2024–031]
Self-Regulatory Organizations; Cboe
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Its
Fee Schedule Related to the Standard
Rebate and Volume Tiers
August 9, 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 August 1,
2024, Cboe EDGA Exchange, Inc.
(‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGA Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGA’’) proposes to
amend its Fee Schedule. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/edga/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
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.
BILLING CODE 8011–01–P
12 15
U.S.C. 78s(b)(3)(A)(ii).
13 17 CFR 240.19b–4(f)(2).
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1 15
14 17
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PO 00000
CFR 200.30–3(a)(12).
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2 17
E:\FR\FM\15AUN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
15AUN1
]]>Agencies
[Federal Register Volume 89, Number 158 (Thursday, August 15, 2024)]
[Notices]
[Pages 66471-66473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18202]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100685; File No. SR-MIAX-2024-31]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
August 9, 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 July 31, 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 reflect the recent addition of a new national securities exchange,
MIAX Sapphire, LLC (``MIAX Sapphire''),\3\ to be listed in the routing
fee table. The Exchange proposes to implement the fee change effective
August 1, 2024.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 100539 (July 15,
2024), 89 FR 58848 (July 19, 2024) (File No. 10-240) (order
approving application of MIAX Sapphire, LLC for registration as a
national securities exchange).
---------------------------------------------------------------------------
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 \4\ (``Penny
classes'') or an order for standard option classes which are not in the
Penny Interval Program (``Non-Penny classes'') (or other explicitly
identified classes); and (iii) to which away market it is being routed.
This assessment practice is identical to the routing fees assessment
practice currently utilized by the Exchange's affiliates, MIAX PEARL,
LLC (``MIAX Pearl'') and MIAX Emerald, LLC (``MIAX Emerald''). This is
also similar to the methodology utilized by the Cboe BZX Exchange, Inc.
(``Cboe BZX Options''), a competing options exchange, in assessing
routing fees. Cboe BZX Options has exchange groupings in its fee
schedule, similar to those of the Exchange, whereby several exchanges
are grouped into the same category dependent upon the order's origin
type and whether it is a Penny or Non-Penny class.\5\
---------------------------------------------------------------------------
\4\ See Exchange Rule 510(c).
\5\ See Cboe U.S. Options Fee Schedules, BZX Options, effective
July 15, 2024, ``Fee Codes and Associated Fees,'' at https://www.cboe.com/us/options/membership/fee_schedule/bzx/.
---------------------------------------------------------------------------
As a result of the anticipated launch of MIAX Sapphire in the third
quarter of 2024, the Exchange has determined to amend the exchange
groupings of options exchanges within the routing fee table to include
MIAX Sapphire and the anticipated associated costs of routing customer
orders to MIAX Sapphire for execution.
The impact of this proposed change will be increased routing
options for Members.\6\ The Exchange notes that routing through the
Exchange is optional and that Members will continue to be able to
choose where to route applicable Member orders. Under
[[Page 66472]]
this proposed change, the Exchange will not amend the fees associated
with the exchange groupings. This proposal merely seeks to add MIAX
Sapphire to the exchange groupings as described in the routing fee
table below.
---------------------------------------------------------------------------
\6\ 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.
---------------------------------------------------------------------------
According, with the proposed change, the routing fee table will be
as follows:
------------------------------------------------------------------------
Description Fees
------------------------------------------------------------------------
Routed, Priority Customer, Penny Program, to: NYSE American, $0.15
Cboe, Cboe EDGX Options, Nasdaq PHLX (except SPY), Nasdaq MRX,
MIAX Sapphire.................................................
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, MIAX Sapphire............................................
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, Penny 0.65
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, MIAX Sapphire..................
Routed, Public Customer that is not a Priority Customer, Non- 1.00
Penny Program, to: NYSE American, Cboe, Nasdaq PHLX, Cboe EDGX
Options, NOM..................................................
Routed, Public Customer that is not a Priority Customer, Non- 1.15
Penny Program, to: Cboe C2, BOX, MIAX Sapphire................
Routed, Public Customer that is not a Priority Customer, Non- 1.25
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- 1.40
Penny Program, to: Cboe BZX Options, Nasdaq ISE, Nasdaq BX
Options.......................................................
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In determining to amend its routing fee table to determine which
category MIAX Sapphire belongs to the Exchange took into account
anticipated transaction fees and rebates assessed by the away markets
to which the Exchange routes orders, as well as the Exchange's clearing
costs, administrative, regulatory, and technical costs associated with
routing orders to an away market. The Exchange uses unaffiliated
routing brokers to route orders to the away markets; the costs
associated with the use of these services are included in the routing
fees specified in the Fee Schedule. This routing fees structure is not
only similar to the Exchange's affiliates, MIAX Pearl and MIAX Emerald,
but is also comparable to the structure in place at Cboe BZX
Options,\7\ a competing options exchange. The Exchange's routing fee
structure approximates the Exchange's costs associated with routing
orders to away markets. The per-contract transaction fee amount
associated with each grouping closely approximates the Exchange's all-
in cost (plus an additional, non-material amount) \8\ to execute that
corresponding contract(s) at that corresponding exchange. The Exchange
notes that in determining whether to include certain exchanges in a
certain groupings of options exchanges in the routing fee table, the
Exchange considered the transaction fees and rebates assessed by away
markets, and determined to amend the grouping of exchanges that assess
transaction fees for routed orders within a similar range. This same
logic and structure applies to all of the groupings in the routing fee
table. By utilizing the same structure that is utilized by the
Exchange's affiliates, MIAX Pearl and MIAX Emerald, the Exchange's
Members will be assessed routing fees in a similar manner. The Exchange
believes that this structure will minimize any confusion as to the
method of assessing routing fees between the three exchanges. The
Exchange notes that its affiliates, MIAX Pearl and MIAX Emerald, will
file to make the same proposed routing fee changes contained herein.
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\7\ The Cboe BZX Options fee schedule is similar to the
Exchange's Fee Schedule in that it has exchange groupings, whereby
several exchanges are grouped into the same category. See supra note
5.
\8\ This amount is to cover de minimis differences/changes to
away market fees (i.e., minor increases or decreases) that would not
necessitate a fee filing by the Exchange to re-categorize the away
exchange into a different grouping. Routing fees are not intended to
be a profit center for the Exchange and the Exchange's target
regarding routing fees and expenses is to be as close as possible to
net neutral.
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2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \9\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \10\ in particular, in
that it is an equitable allocation of reasonable dues, fees, and other
charges among its members and issuers and other persons using its
facilities. The Exchange also believes the proposal furthers the
objectives of Section 6(b)(5) of the Act \11\ in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest and is not designed to permit unfair discrimination between
customers, issuers, brokers and dealers.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposed change to add MIAX Sapphire to
the exchange groupings of options exchanges within the routing fee
table furthers the objectives of Section 6(b)(4) of the Act and is
reasonable, equitable and not unfairly discriminatory because the
proposed change will continue to apply in the same manner to all
Members that are subject to routing fees. The Exchange believes the
proposed change to add MIAX Sapphire to the routing fee table of
exchange groupings furthers the objectives of Section 6(b)(5) of the
Act and is designed to promote just and equitable principles of trade
and is not unfairly discriminatory because the proposed change seeks to
recoup costs that will be incurred by the Exchange when routing
customer orders to MIAX Sapphire on behalf of Members and does so in
the same manner to all Members that are subject to routing fees. The
costs to the Exchange to route orders to away markets for execution
primarily includes transaction fees and rebates assessed by the away
markets to which the Exchange routes orders, in addition to the
Exchange's clearing costs, administrative, regulatory and technical
costs. The Exchange believes that the proposed addition of MIAX
Sapphire to the exchange groupings would increase the routing options
available to Members. The per-contract transaction fee amount
associated with each grouping approximates the Exchange's all-in cost
(plus an
[[Page 66473]]
additional, non-material amount) to execute the corresponding contract
at the corresponding exchange.
The Exchange believes that the proposed rule change is equitable
and not unfairly discriminatory because all Members' orders in Penny
classes and Non-Penny classes routed to MIAX Sapphire will be uniformly
assessed the corresponding fee.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
the proposed rule change to add MIAX Sapphire to the routing fee table
will impose any burden on intramarket competition. Rather, the Exchange
believes that the proposal will promote competition by increasing the
available away markets to which Members can route orders to.
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,\12\ and Rule 19b-4(f)(2) \13\ 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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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-MIAX-2024-31 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-2024-31. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-MIAX-2024-31 and should be
submitted on or before September 5, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-18202 Filed 8-14-24; 8:45 am]
BILLING CODE 8011-01-P
