Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule, 66478-66480 [2024-18203]
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66478
Federal Register / Vol. 89, No. 158 / Thursday, August 15, 2024 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–18197 Filed 8–14–24; 8:45 am]
BILLING CODE 8011–01–P
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Vanessa A. Countryman,
Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100689; File No. SR–
CboeBZX–2024–007]
[FR Doc. 2024–18196 Filed 8–14–24; 8:45 am]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of
Withdrawal of a Proposed Rule Change
To Amend the Definition of Retail
Order, and Codify Interpretations and
Policies Regarding Permissible Uses
of Algorithms by RMOs
August 9, 2024.
On January 25, 2024, Cboe BZX
Exchange, Inc. (‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and
Rule 19b–4 thereunder,2 a proposed rule
change to amend the definition of Retail
Order,3 and codify interpretations and
policies regarding permissible uses of
algorithms by Retail Member
Organizations.4 The proposed rule
change was published for comment in
the Federal Register on February 13,
2024.5 On March 21, 2024, pursuant to
Section 19(b)(2) of the Act,6 the
Commission designated a longer period
within which to approve the proposed
rule change, disapprove the proposed
rule change, or institute proceedings to
determine whether to disapprove the
proposed rule change.7 On May 13,
2024, the Commission instituted
proceedings under Section 19(b)(2)(B) of
the Act 8 to determine whether to
approve or disapprove the proposed
rule change.9 On July 10, 2024, the
Exchange submitted Amendment No. 1
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The term ‘‘Retail Order’’ is defined in Exchange
Rule 11.25(a)(2).
4 The term ‘‘Retail Member Organization’’ (or
‘‘RMO’’) is defined in Exchange Rule 11.25(a)(1) to
mean a member of the Exchange (or a division
thereof) that has been approved by the Exchange
under Exchange Rule 11.25 to submit Retail Orders.
5 See Securities Exchange Act Release No. 99488
(February 7, 2024), 89 FR 10121 (‘‘Notice’’). The
Commission has not received any comments on the
proposed rule change.
6 15 U.S.C. 78s(b)(2).
7 See Securities Exchange Act Release No. 99815,
89 FR 21290 (March 27, 2024).
8 15 U.S.C. 78s(b)(2)(B).
9 See Securities Exchange Act Release No. 100115
(May 13, 2024), 89 FR 43491 (May 17, 2024).
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1 15
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to the proposed rule change, which
replaced and superseded the proposed
rule change as originally filed. On July
17, 2024, the Exchange withdrew
Amendment No. 1. On August 7, 2024,
the Exchange withdrew the proposed
rule change (SR–CboeBZX–2024–007).
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100686; File No. SR–
EMERALD–2024–19]
Self-Regulatory Organizations; MIAX
Emerald, 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, 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
10 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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Frm 00137
Fmt 4703
Sfmt 4703
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.
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, 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.5
As a result of the anticipated launch
of MIAX Sapphire in the third quarter
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/.
E:\FR\FM\15AUN1.SGM
15AUN1
Federal Register / Vol. 89, No. 158 / Thursday, August 15, 2024 / Notices
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
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, MIAX, 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 Pearl, Nasdaq BX Options, MEMX .................................................................................
Routed, Priority Customer, Non-Penny Program, to: NYSE American, BOX, Cboe, Cboe EDGX Options, MIAX, Nasdaq PHLX,
Nasdaq MRX, MIAX Sapphire .........................................................................................................................................................
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, MIAX Sapphire .........................................................................................................
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, MIAX Sapphire ......................
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 .............................................................................................................................................................................................
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66479
$0.15
0.30
0.65
0.15
1.00
0.65
1.00
1.15
1.25
1.40
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 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
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 9
in general, and furthers the objectives of
Section 6(b)(4) of the Act 10 in
particular, in that it is an equitable
allocation of reasonable dues, fees, and
other charges among its members and
issuers and other persons using its
facilities. The Exchange also believes
the proposal furthers the objectives of
Section 6(b)(5) of the Act 11 in that it is
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general to protect investors and the
public interest and is not designed to
permit unfair discrimination between
customers, issuers, brokers and dealers.
The Exchange believes the proposed
change to add 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
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.
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 goal regarding routing fees and
expenses is to be as close as possible to net neutral.
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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17:25 Aug 14, 2024
Jkt 262001
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
Exchange’s Members 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.
2. Statutory Basis
PO 00000
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E:\FR\FM\15AUN1.SGM
15AUN1
66480
Federal Register / Vol. 89, No. 158 / Thursday, August 15, 2024 / Notices
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
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.
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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,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
12 15
U.S.C. 78s(b)(3)(A)(ii).
13 17 CFR 240.19b–4(f)(2).
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17:25 Aug 14, 2024
Jkt 262001
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
EMERALD–2024–19 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–2024–19. 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
PO 00000
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Fmt 4703
Sfmt 4703
submissions should refer to file number
SR–EMERALD–2024–19 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. 2024–18203 Filed 8–14–24; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[License No. 05/05–0320]
LFE Growth Fund III, L.P.; Surrender of
License of Small Business Investment
Company
Pursuant to the authority granted to
the United States Small Business
Administration under section 309 of the
Small Business Investment Act of 1958,
as amended, and 13 CFR 107.1900 of the
Code of Federal Regulations to function
as a small business investment company
under the Small Business Investment
Company license number 05/05–0320
issued to LFE Growth Fund III, L.P.,
said license is hereby declared null and
void.
Thomas Morris,
Director, Patient Capital Investments, Office
of Investment and Innovation, United States
Small Business Administration.
[FR Doc. 2024–18257 Filed 8–14–24; 8:45 am]
BILLING CODE P
SMALL BUSINESS ADMINISTRATION
[License No. 01/01–0418]
Seacoast Capital Partners III, L.P.;
Surrender of License of Small
Business Investment Company
Pursuant to the authority granted to
the United States Small Business
Administration under section 309 of the
Small Business Investment Act of 1958,
as amended, and 13 CFR 107.1900 of the
Code of Federal Regulations to function
as a small business investment company
under the Small Business Investment
Company license number 01/01–0418
issued to Seacoast Capital Partners III,
L.P. said license is hereby declared null
and void.
Thomas Morris,
Director, Patient Capital Investments, Office
of Investment and Innovation, United States
Small Business Administration.
[FR Doc. 2024–18254 Filed 8–14–24; 8:45 am]
BILLING CODE P
14 17
E:\FR\FM\15AUN1.SGM
CFR 200.30–3(a)(12).
15AUN1
]]>Agencies
[Federal Register Volume 89, Number 158 (Thursday, August 15, 2024)]
[Notices]
[Pages 66478-66480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18203]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100686; File No. SR-EMERALD-2024-19]
Self-Regulatory Organizations; MIAX Emerald, 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, 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.
---------------------------------------------------------------------------
\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 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) 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, 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.\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
[[Page 66479]]
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 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 $0.15
American, Cboe, Cboe EDGX Options, MIAX, 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 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, MIAX Sapphire........................
Routed, Priority Customer, Non-Penny Program, to: NYSE 1.00
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, 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,
MIAX Sapphire..........................................
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, MIAX Sapphire.....
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......................................
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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 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.
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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 goal
regarding routing fees and expenses is to be as close as possible to
net neutral.
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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 Exchange's Members 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.
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
[[Page 66480]]
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 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
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,\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-EMERALD-2024-19 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-2024-19. 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-EMERALD-2024-19 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. 2024-18203 Filed 8-14-24; 8:45 am]
BILLING CODE 8011-01-P
