Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Emerald Fee Schedule, 79678-79680 [2024-22260]
Download as PDF
<![CDATA[
79678
Federal Register / Vol. 89, No. 189 / Monday, September 30, 2024 / Notices
All submissions should refer to file
number SR–SAPPHIRE–2024–29. 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–SAPPHIRE–2024–29 and should be
submitted on or before October 21,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–22269 Filed 9–27–24; 8:45 am]
ddrumheller on DSK120RN23PROD with NOTICES1
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101157; File No. SR–
NYSEAMER–2024–45]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Designation
of a Longer Period for Commission
Action on a Proposed Rule Change To
Amend Rule 915 To Permit the Listing
and Trading of Options on the Bitwise
Ethereum ETF, the Grayscale
Ethereum Trust, the Grayscale
Ethereum Mini Trust, and Any Trust
That Holds Ether
September 24, 2024.
On July 23, 2024, NYSE American
LLC 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 Rule
915 to permit the listing and trading of
options on the Bitwise Ethereum ETF,
the Grayscale Ethereum Trust, the
Grayscale Ethereum Mini Trust, and any
trust that holds ether. The proposed rule
change was published for comment in
the Federal Register on August 13,
2024.3 The Commission received no
comment letters regarding 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
disapproved. The 45th day after
publication of the notice for this
proposed rule change is September 27,
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.
Accordingly, the Commission, pursuant
to Section 19(b)(2) of the Act,5
designates November 11, 2024, as the
date by which the Commission shall
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 100666
(Aug. 7, 2024), 89 FR 65957.
4 15 U.S.C. 78s(b)(2).
5 Id.
2 17
29 17
CFR 200.30–3(a)(12), (59).
VerDate Sep<11>2014
17:51 Sep 27, 2024
Jkt 262001
PO 00000
Frm 00178
Fmt 4703
Sfmt 4703
either approve or disapprove, or
institute proceedings to determine
whether to disapprove, the proposed
rule change (File No. SR–NYSEAMER–
2024–45).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–22259 Filed 9–27–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101145; File No. SR–
EMERALD–2024–26]
Self-Regulatory Organizations; MIAX
Emerald, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX
Emerald Fee Schedule
September 24, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 10, 2024, MIAX Emerald,
LLC (‘‘MIAX Emerald’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II 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 Emerald Options
Exchange Fee Schedule (the ‘‘Fee
Schedule’’) to amend Section 5)f),
Member and Non-Member Technical
Support Request Fee.
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 Emerald’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
6 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\30SEN1.SGM
30SEN1
Federal Register / Vol. 89, No. 189 / Monday, September 30, 2024 / Notices
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
Section 5)f), Member and Non-Member
Technical Support Request Fee, to now
include in the fee to be assessed to
Members 3 and non-Members the cost of
materials necessary for the Exchange’s
data center personnel to complete such
technical support.
ddrumheller on DSK120RN23PROD with NOTICES1
Background
The Exchange established the
technical support request fee at the
current hourly rate of $200 per hour in
2019.4 The Exchange has an
infrastructure comprised of low latency
and ultra-low latency proximity
solutions in several offsite data center
locales offering universal access to all
Exchange services via a single common
connection across a variety of high
speed network interfaces. The Exchange
offers connectivity in and between its
data center facilities and supports direct
attachment of all network equipment or
direct attached host systems of both
Member and non-Member users of the
Exchange.
Technical support refers to the use of
Exchange engineers to perform on-site
technical support tasks in the data
centers for Members and non-Members,
including the following support-related
tasks: (1) power cycling of equipment;
(2) patching and plugging in cabling and
circuits; (3) observing, describing or
reporting on display indicators; (4)
configuration of hardware components
instructed by the customer; (5) diagnosis
and repairs as instructed by the
customer; (6) swapping hardware
components with Exchange-supplied or
customer-supplied spares or upgrades;
(7) troubleshooting heat related issues as
instructed by customers; and (8)
3 ‘‘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 the
Definitions section of the Fee Schedule and
Exchange Rule 100.
4 See Securities Exchange Act Release No. 85393
(March 21, 2019), 84 FR 11599 (March 27, 2019)
(SR–EMERALD–2019–15). See also Fee Schedule,
Section 5)f).
VerDate Sep<11>2014
17:51 Sep 27, 2024
Jkt 262001
returning defective equipment to the
manufacturer or customer.
Proposal
The Exchange proposes to amend
Section 5f), Member and Non-Member
Technical Support Request Fee, to now
include in the fee to be assessed to
Members and non-Members that request
technical support the cost of materials
necessary for the Exchange to complete
such technical support in any of the
Exchange’s data centers. Some examples
of materials for such technical support
may include, but are not limited to, fiber
optic cables, fiber spool, optical
connectors (a device used to connect
fiber optic cables), and patch cables.
The Exchange does not propose to
assess any amount in excess of the cost
of any materials that are necessary for
the Exchange’s on-site engineers to
complete the requested technical
support. The Exchange simply proposes
to pass through the costs of the
materials, if necessary, to complete such
technical support. At least one
competing exchange group similarly
passes through the cost of materials to
their customers when performing
similar types of services in their data
centers.5
2. Statutory Basis
The Exchange believes that the
proposed fees are consistent with
Section 6(b) of the Act 6 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 7 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees and other charges
among Members and other persons
using any facility or system which the
Exchange operates or controls. The
Exchange also believes the proposed
fees further the objectives of Section
6(b)(5) of the Act 8 in that they are
designed to promote just and equitable
principles of trade, remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general protect investors and the public
interest and are not designed to permit
5 See Nasdaq PHLX LLC Rules, General 8
Connectivity, Section 1(d) Additional Charges/
Services (assessing $264 per hour for Power
Consulting Service plus the cost of materials, if
necessary); The Nasdaq Stock Market LLC Rules,
General 8: Connectivity, Section 1(d) Additional
Charges/Services (assessing $264 per hour for
Power Consulting Service plus the cost of materials,
if necessary); Nasdaq ISE, LLC Rules, General 8:
Connectivity, Section 1(d) Additional Charges/
Services (assessing $264 per hour for Power
Consulting Service plus the cost of materials, if
necessary).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(4).
8 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00179
Fmt 4703
Sfmt 4703
79679
unfair discrimination between
customers, issuers, brokers and dealers.
The Exchange believes it is reasonable
to include in the cost of the technical
support request fee the cost of any
materials that are necessary for the
Exchange’s on-site engineers to
complete the requested technical
support because the Exchange will only
pass through the actual costs it is
charged by external vendors of such
materials. The Exchange will not pass
through any amount in excess of the
cost of any materials that are necessary
for the Exchange’s on-site engineers to
complete the requested technical
support.
The Exchange believes the proposal is
equitable and not unfairly
discriminatory because the Exchange
will pass through the costs of materials
for requested technical support in an
equal manner to all Members and nonMembers that request technical support
in the data centers that requires the
Exchange to purchase materials to
complete such request. The cost for
materials provided by the Exchange’s
external vendors supplying the
materials will be passed through
directly to the Member or non-Member
requesting technical support.
Furthermore, Members and nonMembers are not required to use the
technical support service. The Exchange
offers this service as a convenience to
all Members and non-Members. The
Exchange believes the proposal is
reasonable because it will permit both
Members and non-Members to request
the use of the Exchange’s on-site data
center personnel as technical support
and as a convenience in order to test or
otherwise assess the user’s connectivity
to the Exchange via its data centers,
while paying for the cost of any
materials the Exchange is required to
purchase to complete such requests.
Additionally, at least one competing
options exchange group passes through
the cost of materials to their customers
when performing similar types of
services in their data centers.9
Accordingly, the Exchange believes
the proposal is reasonable, equitable
and not unfairly discriminatory.
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act.
9 See
E:\FR\FM\30SEN1.SGM
supra note 5.
30SEN1
79680
Federal Register / Vol. 89, No. 189 / Monday, September 30, 2024 / Notices
Intra-Market Competition
The Exchange believes the proposal to
pass through the cost of any materials
that are necessary for the Exchange’s onsite engineers to complete the requested
technical support will not result in any
burden on intra-market competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
because the Exchange will only passthrough the actual costs it is charged by
third-party external vendors for such
materials. At least one competing
options exchange group similarly passes
along charges assessed to those
exchanges by third-party external
vendors supplying materials on behalf
of that exchange group’s customers.10
Additionally, the pass through of
costs for materials will be assessed
equally to all Members and nonMembers who request technical support
that requires the Exchange to purchase
materials to complete the requested
support. The Exchange notes that
Members and non-Members are not
required to use the service. The
Exchange offers this service as a
convenience to all Members and nonMembers. The Exchange believes the
proposal will not impose any burden on
intra-market competition because it will
permit both Members and non-Members
to request the use of the Exchange’s onsite data center personnel as technical
support and as a convenience in order
to test or otherwise assess the user’s
connectivity to the Exchange via its data
centers.
ddrumheller on DSK120RN23PROD with NOTICES1
Inter-Market Competition
The Exchange believes that the
proposed changes will not result in any
burden on inter-market competition that
is not necessary or appropriate in
furtherance of the purposes of the Act.
As discussed above, market participants
are not forced to connect to and trade
on all exchanges. The Exchange believes
that the proposed pass-through of costs
for materials for technical support will
not cause any burden on inter-market
competition because none of these
changes impact other exchanges’ ability
to compete.
Accordingly, the Exchange does not
believe its proposed fee changes impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
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 11 and Rule
19b–4(f)(2) 12 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
change 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–2024–26 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–2024–26. 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
11 15
10 See
id.
VerDate Sep<11>2014
12 17
17:51 Sep 27, 2024
Jkt 262001
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00180
Fmt 4703
Sfmt 4703
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–2024–26 and should be
submitted on or before October 21,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–22260 Filed 9–27–24; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #20645 and #20646;
LOUISIANA Disaster Number LA–20005]
Presidential Declaration of a Major
Disaster for the State of Louisiana
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for the State of Louisiana
(FEMA–4817–DR), dated 09/16/2024.
Incident: Hurricane Francine.
Incident Period: 09/09/2024 through
09/12/2024.
DATES: Issued on 09/16/2024.
Physical Loan Application Deadline
Date: 11/18/2024.
Economic Injury (EIDL) Loan
Application Deadline Date: 06/16/2025.
ADDRESSES: Visit the MySBA Loan
Portal at https://lending.sba.gov to
apply for a disaster assistance loan.
FOR FURTHER INFORMATION CONTACT:
Vanessa Morgan, Office of Disaster
Recovery & Resilience, U.S. Small
Business Administration, 409 3rd Street
SW, Suite 6050, Washington, DC 20416,
(202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
09/16/2024, applications for disaster
loans may be submitted online using the
SUMMARY:
13 17
E:\FR\FM\30SEN1.SGM
CFR 200.30–3(a)(12).
30SEN1
]]>Agencies
[Federal Register Volume 89, Number 189 (Monday, September 30, 2024)]
[Notices]
[Pages 79678-79680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-22260]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101145; File No. SR-EMERALD-2024-26]
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
the MIAX Emerald Fee Schedule
September 24, 2024.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on September 10, 2024, MIAX Emerald, LLC (``MIAX Emerald'' or
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
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 Emerald Options
Exchange Fee Schedule (the ``Fee Schedule'') to amend Section 5)f),
Member and Non-Member Technical Support Request Fee.
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 Emerald'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
[[Page 79679]]
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 Section 5)f), Member and Non-Member
Technical Support Request Fee, to now include in the fee to be assessed
to Members \3\ and non-Members the cost of materials necessary for the
Exchange's data center personnel to complete such technical support.
---------------------------------------------------------------------------
\3\ ``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 the
Definitions section of the Fee Schedule and Exchange Rule 100.
---------------------------------------------------------------------------
Background
The Exchange established the technical support request fee at the
current hourly rate of $200 per hour in 2019.\4\ The Exchange has an
infrastructure comprised of low latency and ultra-low latency proximity
solutions in several offsite data center locales offering universal
access to all Exchange services via a single common connection across a
variety of high speed network interfaces. The Exchange offers
connectivity in and between its data center facilities and supports
direct attachment of all network equipment or direct attached host
systems of both Member and non-Member users of the Exchange.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 85393 (March 21,
2019), 84 FR 11599 (March 27, 2019) (SR-EMERALD-2019-15). See also
Fee Schedule, Section 5)f).
---------------------------------------------------------------------------
Technical support refers to the use of Exchange engineers to
perform on-site technical support tasks in the data centers for Members
and non-Members, including the following support-related tasks: (1)
power cycling of equipment; (2) patching and plugging in cabling and
circuits; (3) observing, describing or reporting on display indicators;
(4) configuration of hardware components instructed by the customer;
(5) diagnosis and repairs as instructed by the customer; (6) swapping
hardware components with Exchange-supplied or customer-supplied spares
or upgrades; (7) troubleshooting heat related issues as instructed by
customers; and (8) returning defective equipment to the manufacturer or
customer.
Proposal
The Exchange proposes to amend Section 5f), Member and Non-Member
Technical Support Request Fee, to now include in the fee to be assessed
to Members and non-Members that request technical support the cost of
materials necessary for the Exchange to complete such technical support
in any of the Exchange's data centers. Some examples of materials for
such technical support may include, but are not limited to, fiber optic
cables, fiber spool, optical connectors (a device used to connect fiber
optic cables), and patch cables.
The Exchange does not propose to assess any amount in excess of the
cost of any materials that are necessary for the Exchange's on-site
engineers to complete the requested technical support. The Exchange
simply proposes to pass through the costs of the materials, if
necessary, to complete such technical support. At least one competing
exchange group similarly passes through the cost of materials to their
customers when performing similar types of services in their data
centers.\5\
---------------------------------------------------------------------------
\5\ See Nasdaq PHLX LLC Rules, General 8 Connectivity, Section
1(d) Additional Charges/Services (assessing $264 per hour for Power
Consulting Service plus the cost of materials, if necessary); The
Nasdaq Stock Market LLC Rules, General 8: Connectivity, Section 1(d)
Additional Charges/Services (assessing $264 per hour for Power
Consulting Service plus the cost of materials, if necessary); Nasdaq
ISE, LLC Rules, General 8: Connectivity, Section 1(d) Additional
Charges/Services (assessing $264 per hour for Power Consulting
Service plus the cost of materials, if necessary).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed fees are consistent with
Section 6(b) of the Act \6\ in general, and furthers the objectives of
Section 6(b)(4) of the Act \7\ in particular, in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among Members and other persons using any facility or system which the
Exchange operates or controls. The Exchange also believes the proposed
fees further the objectives of Section 6(b)(5) of the Act \8\ in that
they are designed to promote just and equitable principles of trade,
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general protect investors
and the public interest and are not designed to permit unfair
discrimination between customers, issuers, brokers and dealers.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes it is reasonable to include in the cost of
the technical support request fee the cost of any materials that are
necessary for the Exchange's on-site engineers to complete the
requested technical support because the Exchange will only pass through
the actual costs it is charged by external vendors of such materials.
The Exchange will not pass through any amount in excess of the cost of
any materials that are necessary for the Exchange's on-site engineers
to complete the requested technical support.
The Exchange believes the proposal is equitable and not unfairly
discriminatory because the Exchange will pass through the costs of
materials for requested technical support in an equal manner to all
Members and non-Members that request technical support in the data
centers that requires the Exchange to purchase materials to complete
such request. The cost for materials provided by the Exchange's
external vendors supplying the materials will be passed through
directly to the Member or non-Member requesting technical support.
Furthermore, Members and non-Members are not required to use the
technical support service. The Exchange offers this service as a
convenience to all Members and non-Members. The Exchange believes the
proposal is reasonable because it will permit both Members and non-
Members to request the use of the Exchange's on-site data center
personnel as technical support and as a convenience in order to test or
otherwise assess the user's connectivity to the Exchange via its data
centers, while paying for the cost of any materials the Exchange is
required to purchase to complete such requests.
Additionally, at least one competing options exchange group passes
through the cost of materials to their customers when performing
similar types of services in their data centers.\9\
---------------------------------------------------------------------------
\9\ See supra note 5.
---------------------------------------------------------------------------
Accordingly, the Exchange believes the proposal is reasonable,
equitable and not unfairly discriminatory.
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 that is not necessary or appropriate
in furtherance of the purposes of the Act.
[[Page 79680]]
Intra-Market Competition
The Exchange believes the proposal to pass through the cost of any
materials that are necessary for the Exchange's on-site engineers to
complete the requested technical support will not result in any burden
on intra-market competition that is not necessary or appropriate in
furtherance of the purposes of the Act because the Exchange will only
pass-through the actual costs it is charged by third-party external
vendors for such materials. At least one competing options exchange
group similarly passes along charges assessed to those exchanges by
third-party external vendors supplying materials on behalf of that
exchange group's customers.\10\
---------------------------------------------------------------------------
\10\ See id.
---------------------------------------------------------------------------
Additionally, the pass through of costs for materials will be
assessed equally to all Members and non-Members who request technical
support that requires the Exchange to purchase materials to complete
the requested support. The Exchange notes that Members and non-Members
are not required to use the service. The Exchange offers this service
as a convenience to all Members and non-Members. The Exchange believes
the proposal will not impose any burden on intra-market competition
because it will permit both Members and non-Members to request the use
of the Exchange's on-site data center personnel as technical support
and as a convenience in order to test or otherwise assess the user's
connectivity to the Exchange via its data centers.
Inter-Market Competition
The Exchange believes that the proposed changes will not result in
any burden on inter-market competition that is not necessary or
appropriate in furtherance of the purposes of the Act. As discussed
above, market participants are not forced to connect to and trade on
all exchanges. The Exchange believes that the proposed pass-through of
costs for materials for technical support will not cause any burden on
inter-market competition because none of these changes impact other
exchanges' ability to compete.
Accordingly, the Exchange does not believe its proposed fee changes
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
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 \11\ and Rule 19b-4(f)(2) \12\ thereunder.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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 change 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 [email protected]. Please include
file number SR-EMERALD-2024-26 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-2024-26. 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-2024-26 and should
be submitted on or before October 21, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-22260 Filed 9-27-24; 8:45 am]
BILLING CODE 8011-01-P
