Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Pearl Options Fee Schedule, 91460-91465 [2024-26873]
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Federal Register / Vol. 89, No. 223 / Tuesday, November 19, 2024 / Notices
the month of September 2024.30 Thus,
in such a low-concentrated and highly
competitive market, no single equities
exchange possesses significant pricing
power in the execution of order flow.
Moreover, the Exchange believes that
the ever-shifting market share among
the exchanges from month to month
demonstrates that market participants
can shift order flow in response to new
or different pricing structures being
introduced to the market. Accordingly,
competitive forces constrain the
Exchange’s transaction fees and rebates
generally, including with respect to
executions of orders in securities priced
at or above $1.00 per share for Added
Displayed Volume, and market
participants can readily choose to send
their orders to other exchanges and offexchange venues if they deem fee levels
at those other venues to be more
favorable.
Additionally, the Commission has
repeatedly expressed its preference for
competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. Specifically, in Regulation
NMS, the Commission highlighted the
importance of market forces in
determining prices and self-regulatory
organization (‘‘SRO’’) revenues and,
also, recognized that current regulation
of the market system ‘‘has been
remarkably successful in promoting
market competition in its broader forms
that are most important to investors and
listed companies.’’ 31 The fact that this
market is competitive has also long been
recognized by the courts. In
NetCoalition v. Securities and Exchange
Commission, the DC circuit stated: ‘‘[n]o
one disputes that competition for order
flow is ‘fierce.’ . . . As the SEC
explained, ‘[i]n the U.S. national market
system, buyers and sellers of securities,
and the broker-dealers that act as their
routing agents, have a wide range of
choices of where to route orders for
execution’; [and] ‘no exchange can
afford to take its market share
percentages for granted’ because ‘no
exchange possess a monopoly,
regulatory or otherwise, in the execution
of order flow from broker dealers’
. . .’’.32 Accordingly, the Exchange does
not believe its proposed pricing changes
impose any burden on competition that
30 See
supra note 26.
Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
32 See NetCoalition v. SEC, 615 F.3d 525, 539
(D.C. Cir. 2010) (quoting Securities Exchange Act
Release No. 59039 (December 2, 2008), 73 FR
74770, 74782–83 (December 9, 2008) (SR–NYSE–
2006–21)).
31 See
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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,33 and Rule
19b–4(f)(2) 34 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.
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–
PEARL–2024–50 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–PEARL–2024–50. 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–PEARL–2024–50 and should be
submitted on or before December 10,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.35
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–26870 Filed 11–18–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101605; File No. SR–
PEARL–2024–49]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX Pearl
Options Fee Schedule
November 13, 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 October
31, 2024, MIAX PEARL, LLC (‘‘MIAX
Pearl’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I, II, and III below,
which Items have been prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
35 17
33 15
U.S.C. 78s(b)(3)(A)(ii).
34 17 CFR 240.19b–4(f)(2).
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CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 89, No. 223 / Tuesday, November 19, 2024 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend the MIAX Pearl Options Fee
Schedule (‘‘Fee Schedule’’).
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxglobal.com/markets/
us-options/pearl-options/rule-filings at
MIAX Pearl’s principal office, and at the
Commission’s Public Reference Room.
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
Section 1)a) of the Fee Schedule,
Exchange Rebates/Fees—Add/Remove
Tiered Rebates/Fees, to: (1) amend the
Priority Customer 3 origin to reduce
certain Maker rebates in Penny Classes
(defined below); and (2) remove the
‘‘Step-Up Maker Rebate’’ (described
below) for the MIAX Pearl Market
Maker 4 origin in Non-Penny Classes.
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Background
The Exchange currently assesses
transaction rebates and fees to all
market participants which are based
upon the total monthly volume
executed by the Member 5 on MIAX
3 The term ‘‘Priority Customer’’ means a person
or entity that (i) is not a broker or dealer in
securities, and (ii) does not place more than 390
orders in listed options per day on average during
a calendar month for its own beneficial accounts(s).
The number of orders shall be counted in
accordance with Interpretation and Policy .01 of
Exchange Rule 100. See the Definitions section of
the Fee Schedule and Exchange Rule 100, including
Interpretation and Policy .01.
4 The term ‘‘Market Maker’’ means a Member
registered with the Exchange for the purpose of
making markets in options contracts traded on the
Exchange and that is vested with the rights and
responsibilities specified in Chapter VI of Exchange
Rules. See the Definitions section of the Fee
Schedule and Exchange Rule 100.
5 The term ‘‘Member’’ means an individual or
organization that is registered with the Exchange
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Pearl in the relevant, respective origin
type (not including Excluded
Contracts) 6 (as the numerator)
expressed as a percentage of (divided
by) TCV 7 (as the denominator). In
addition, the per contract transaction
rebates and fees are applied
retroactively to all eligible volume for
that origin type once the respective
threshold tier has been reached by the
Member. The Exchange aggregates the
volume of Members and their
Affiliates.8 Members that place resting
pursuant to Chapter II of Exchange Rules for
purposes of trading on the Exchange as an
‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’
Members are deemed ‘‘members’’ under the
Exchange Act. See the Definitions section of the Fee
Schedule and Exchange Rule 100.
6 The term ‘‘Excluded Contracts’’ means any
contracts routed to an away market for execution.
See the Definitions section of the Fee Schedule.
7 The term ‘‘TCV’’ means total consolidated
volume calculated as the total national volume in
those classes listed on MIAX Pearl for the month
for which the fees apply, excluding consolidated
volume executed during the period time in which
the Exchange experiences an ‘‘Exchange System
Disruption’’ (solely in the option classes of the
affected Matching Engine (as defined below)). See
the Definitions section of the Fee Schedule. The
term ‘‘Exchange System Disruption’’ means an
outage of a Matching Engine or collective Matching
Engines for a period of two consecutive hours or
more, during trading hours. Id. A ‘‘Matching
Engine’’ is a part of the MIAX Pearl electronic
system that processes options orders and trades on
a symbol-by-symbol basis. Some Matching Engines
will process option classes with multiple root
symbols, and other Matching Engines may be
dedicated to one single option root symbol (for
example, options on SPY may be processed by one
single Matching Engine that is dedicated only to
SPY). A particular root symbol may only be
assigned to a single designated Matching Engine. A
particular root symbol may not be assigned to
multiple Matching Engines. Id. The Exchange
believes that it is reasonable and appropriate to
select two consecutive hours as the amount of time
necessary to constitute an Exchange System
Disruption, as two hours equates to approximately
1.4% of available trading time per month. The
Exchange notes that the term ‘‘Exchange System
Disruption’’ and its meaning have no applicability
outside of the Fee Schedule, as it is used solely for
purposes of calculating volume for the threshold
tiers in the Fee Schedule.
8 The term ‘‘Affiliate’’ means (i) an affiliate of a
Member of at least 75% common ownership
between the firms as reflected on each firm’s Form
BD, Schedule A, or (ii) the Appointed Market Maker
of an Appointed EEM (or, conversely, the
Appointed EEM of an Appointed Market Maker).
An ‘‘Appointed Market Maker’’ is a MIAX Pearl
Market Maker (who does not otherwise have a
corporate affiliation based upon common
ownership with an EEM) that has been appointed
by an EEM and an ‘‘Appointed EEM’’ is an EEM
(who does not otherwise have a corporate affiliation
based upon common ownership with a MIAX Pearl
Market Maker) that has been appointed by a MIAX
Pearl Market Maker, pursuant to the following
process. A MIAX Pearl Market Maker appoints an
EEM and an EEM appoints a MIAX Pearl Market
Maker, for the purposes of the Fee Schedule, by
each completing and sending an executed Volume
Aggregation Request Form by email to
membership@miaxoptions.com no later than 2
business days prior to the first business day of the
month in which the designation is to become
effective. Transmittal of a validly completed and
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91461
liquidity, i.e., orders resting on the
Book 9 of the MIAX Pearl System,10 are
paid the specified ‘‘maker’’ rebate (each
a ‘‘Maker’’), and Members that execute
against resting liquidity are assessed the
specified ‘‘taker’’ fee (each a ‘‘Taker’’).
For opening transactions and ABBO 11
uncrossing transactions, per contract
transaction rebates and fees are waived
for all market participants. Finally,
Members are assessed lower transaction
fees and receive lower rebates for order
executions in standard option classes in
the Penny Interval Program 12 (‘‘Penny
Classes’’) than for order executions in
standard option classes which are not in
the Penny Interval Program (‘‘NonPenny Classes’’), where Members are
assessed higher transaction fees and
receive higher rebates.
Proposal To Amend the Priority
Customer Origin in the Exchange
Rebates/Fees—Add/Remove Tier
Rebates/Fees Table at Section 1)a) of the
Fee Schedule To Decrease Certain
Maker Rebates in Penny Classes
First, the Exchange proposes to
amend the Priority Customer origin in
the Exchange Rebates/Fees—Add/
Remove Tier Rebates/Fees table at
Section 1)a) of the Fee Schedule to
decrease the Maker rebates in tiers 1 and
2 for Priority Customer Orders 13 in
Penny Classes that trade against all
origins. Currently, the Priority Customer
origin in the Exchange Rebates/Fees—
Add/Remove Tier Rebates/Fees table at
executed form to the Exchange along with the
Exchange’s acknowledgement of the effective
designation to each of the Market Maker and EEM
will be viewed as acceptance of the appointment.
The Exchange will only recognize one designation
per Member. A Member may make a designation
not more than once every 12 months (from the date
of its most recent designation), which designation
shall remain in effect unless or until the Exchange
receives written notice submitted 2 business days
prior to the first business day of the month from
either Member indicating that the appointment has
been terminated. Designations will become
operative on the first business day of the effective
month and may not be terminated prior to the end
of the month. Execution data and reports will be
provided to both parties. See the Definitions section
of the Fee Schedule.
9 The term ‘‘Book’’ means the electronic book of
buy and sell orders and quotes maintained by the
System. See Exchange Rule 100.
10 The term ‘‘System’’ means the automated
trading system used by the Exchange for the trading
of securities. See Exchange Rule 100.
11 The term ‘‘ABBO’’ means the best bid(s) or
offer(s) disseminated by other Eligible Exchanges
(defined in Exchange Rule 1400(g)) and calculated
by the Exchange based on market information
received by the Exchange from OPRA. See the
Definitions section of the Fee Schedule and
Exchange Rule 100.
12 See Securities Exchange Act Release No. 88992
(June 2, 2020), 85 FR 35142 (June 8, 2020) (SR–
PEARL–2020–06).
13 The term ‘‘Priority Customer Order’’ means an
order for the account of a Priority Customer. See
Exchange Rule 100.
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Section 1)a) of the Fee Schedule
provides certain volume criteria
thresholds for all tiers that are based
upon the total monthly volume
executed in all option classes by a
Priority Customer on MIAX Pearl as a
percentage of TCV. Pursuant to the
Priority Customer origin in the
Exchange Rebates/Fees—Add/Remove
Tier Rebates/Fees table at Section 1)a) of
the Fee Schedule, Priority Customers
qualify for the following Maker rebates
when Priority Customer orders in Penny
Classes trade against all origins: (i)
($0.31) 14 per contract in tiers 1 and 2 if
the Priority Customer executes above
0.00% to at least 0.40% of TCV; (ii)
($0.45) per contract in tier 3 if the
Priority Customer executes above 0.40%
to at least 0.85% of TCV; (iii) ($0.49) per
contract in tier 4 if the Priority
Customer executes above 0.85% to at
least 1.25% of TCV; and (iv) ($0.52) per
contract in tiers 5 and 6 if the Priority
Customer executes above 1.25% of TCV.
The Exchange now proposes to amend
the Priority Customer origin in the
Exchange Rebates/Fees—Add/Remove
Tier Rebates/Fees table at Section 1)a) of
the Fee Schedule to decrease the Maker
rebates in tiers 1 and 2 from ($0.31) to
($0.25) per contract for Priority
Customer Orders in Penny Classes that
trade against all origins. The Exchange
does not propose to amend any of the
volume threshold criteria or the Maker
rebates or Taker fees in any other tier for
Priority Customer Orders.
The purpose of this proposed change
is for business and competitive reasons.
The Exchange previously amended the
Priority Customer origin in the
Exchange Rebates/Fees—Add/Remove
Tier Rebates/Fees table at Section 1)a) of
the Fee Schedule to increase the Maker
rebates in tiers 1 and 2 from ($0.25) to
($0.31) per contract for Priority
Customer Orders in Penny Classes that
trade against all origins in order to
encourage Members to submit more
Priority Customer Orders, which the
Exchange believed may lead to
increased liquidity on the Exchange.15
The Exchange recently conducted an
internal review and analysis of fees and
rebates and determined that the
Exchange has not experienced the
desired increased liquidity and now
proposes to reduce the Maker rebates in
tiers 1 and 2 from ($0.31) to ($0.25) per
contract for Priority Customer Orders in
Penny Classes that trade against all
origins. Even with the proposed change,
14 Rebates are denoted in parentheses in the Fee
Schedule.
15 See Securities Exchange Act Release No.
101122 (September 20, 2024), 89 FR 78920
(September 26, 2024) (SR–PEARL–2024–44).
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the Exchange believes the Maker rebates
in tiers 1 and 2 for Priority Customer
Orders in Penny classes will remain
highly competitive such that they
should enable the Exchange to continue
to attract Priority Customer order flow
and maintain market share. The
Exchange notes that the Maker rebate of
($0.25) per contract in tiers 1 and 2 for
Priority Customer Orders in Penny
Classes are equal to the rebates offered
by at least two competing options
exchanges for their customer orders.16
Proposal To Remove the Step-Up
Maker Rebate for Market Maker Orders
in Non-Penny Classes
Next, the Exchange proposes to
amend the Market Maker origin in the
Exchange Rebates/Fees—Add/Remove
Tier Rebates/Fees table at Section 1)a) of
the Fee Schedule to remove the ‘‘StepUp Maker Rebate,’’ which is provided in
footnote ‘‘(i)’’ following the table of
transaction rebates and fees for the
Market Maker origin in Section 1)a) of
the Fee Schedule. Currently, pursuant to
the Market Maker origin in the
Exchange Rebates/Fees—Add/Remove
Tier Rebates/Fees table at Section 1)a) of
the Fee Schedule, Market Makers
qualify for the following Maker rebates
when Market Maker orders in NonPenny Classes trade against all origins:
(i) ($0.30) per contract in tier 1 if the
Market Maker executes above 0.00% to
at least 0.20% of TCV; (ii) ($0.30) per
contract in tier 2 if the Market Maker
executes above 0.20% to at least 0.50%
of TCV, or satisfies one of the two
alternative volume criteria of tier 2; 17
16 See e.g., NYSE Arca, Inc (‘‘NYSE Arca’’)
Options Fee Schedule, Transaction Fees, Customer
Penny Posting Credit Tiers, available at https://
www.nyse.com/publicdocs/nyse/markets/arcaoptions/NYSE_Arca_Options_Fee_Schedule.pdf
(last visited October 28, 2024) (providing base
credit $0.25 applied to electronic executions of
customer posted interest in penny classes); and
Nasdaq GEMX, LLC (‘‘GEMX’’) Options Fee
Schedule, Section 3. Regular Order Fees and
Rebates, available at https://
listingcenter.nasdaq.com/rulebook/gemx/rules/
GEMX%20Options%207 (last visited October 28,
2024) (providing a standard maker rebate of $0.25
in tier 1 for Priority Customer orders in penny
classes).
17 A Market Maker need only to satisfy one of the
following two alternative volume criteria in order
to receive the rebates or fees associated with tier 2
of the Market Maker origin: (i) the total monthly
volume executed by the Market Maker collectively
in SPY/QQQ/IWM options on MIAX Pearl, not
including Excluded Contracts, is above 0.55% of
SPY/QQQ/IWM TCV; or (ii) the Market Maker adds
liquidity collectively in SPY/QQQ/IWM options on
MIAX Pearl, not including Excluded Contracts,
above 0.30% of SPY/QQQ/IWM TCV. See Fee
Schedule, Section 1)a), Market Maker origin. The
term ‘‘SPY/QQQ/IWM TCV’’ means total
consolidated volume in SPY, QQQ, and IWM
calculated as the total national volume in SPY,
QQQ, and IWM for the month for which the fees
apply, excluding consolidated volume executed
during the period of time in which the Exchange
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(iii) ($0.60) per contract in tier 3 if the
Market Maker executes above 0.50% to
at least 0.85% of TCV, or satisfies the
alternative volume criteria of tier 3; 18
(iv) ($0.65) per contract in tier 4 if the
Market Maker executes above 0.85% to
at least 1.25% of TCV, or satisfies the
alternative volume criteria of tier 4; 19
(v) ($0.70) per contract in tier 5 if the
Market Maker executes above 1.25% to
at least 1.40% of TCV; and (vi) ($0.85)
per contract in tier 6 if the Market
Maker executes above 1.40% of TCV.
Footnote ‘‘(i)’’ provides that a Market
Maker may qualify for a Step-Up Maker
Rebate of ($0.86) per contract for Market
Maker orders for Non-Penny Classes,
instead of the otherwise applicable
standard tiered Maker rebate described
above for tiers 1 through 6. In order to
receive the Step-Up Maker Rebate, a
Market Maker must have an increase in
the percentage of their added liquidity
in Non-Penny Classes, represented as a
percentage of TCV, of at least 0.12% as
compared to the Market Maker’s July
2024 20 added liquidity in Non-Penny
Classes. The Step-Up Maker Rebate is
currently set to expire no later than
January 31, 2025.21 The Exchange now
proposes to remove footnote ‘‘(i)’’ and
the corresponding Step-Up Maker
Rebate. The Exchange does not propose
to amend any of the volume threshold
criteria or the Maker rebates or Taker
experiences an Exchange System Disruption (solely
in SPY, QQQ, or IWM options). See the Definitions
section of the Fee Schedule.
18 Market Makers satisfy the alternative volume
criteria of tier 3 by adding liquidity in SPY options
on MIAX Pearl, not including Excluded Contracts,
above 1.10% of SPY TCV. The term ‘‘SPY TCV’’
means total consolidated volume in SPY calculated
as the total national volume in SPY for the month
for which the fees apply, excluding consolidated
volume executed during the period of time in
which the Exchange experiences an Exchange
System Disruption (solely in SPY options). See the
Definitions section of the Fee Schedule. Further,
Market Makers qualify for: (i) Maker rebates of
($0.44) per contract in SPY, QQQ and IWM options
for their Market Maker origin when trading against
origins other than Priority Customer, and (ii) Maker
rebates of ($0.42) per contract in SPY, QQQ and
IWM options for their Market Maker origin when
trading against Priority Customer origins, if the
Market Maker satisfies the alternative volume
criteria of tier 3, described above, of at least 1.10%
in SPY when adding liquidity. See Fee Schedule,
Section 1)a), note ‘‘♦’’.
19 Market Makers satisfy the alternative volume
criteria of tier 4 if the Market Maker’s executions
solely in SPY options on MIAX Pearl, not including
Excluded Contracts, is above 2.50% of SPY TCV.
20 The Exchange uses a baseline for added
liquidity in Non-Penny Classes of 0.00% of TCV for
market participants that become Market Makers of
the Exchange after July 2024 for the purpose of the
Step-Up Maker Rebate calculation.
21 The Exchange notes that at the end of the
sunset period, the Step-Up Maker Rebate will no
longer apply unless the Exchange files a rule filing
pursuant to Rule 19b–4 of the Exchange Act with
the Commission to amend the criteria terms or
update the baseline month to a more recent month.
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Federal Register / Vol. 89, No. 223 / Tuesday, November 19, 2024 / Notices
fees in any tier for Market Makers orders
in Non-Penny Classes.
The purpose of this change is for
business and competitive reasons. The
Exchange initially established the StepUp Maker Rebate in order to encourage
Market Makers to add more liquidity in
Non-Penny Classes, thereby promoting
price discovery and contributing to a
deeper and more liquid market.22 The
Exchange recently conducted an
internal review and analysis of fees and
rebates and determined that the
Exchange has not experienced the
desired increase in liquidity in NonPenny Classes and now proposes to
remove the Step-Up Maker Rebate. The
Exchange believes that the tiered Maker
rebates for Market Makers orders in
Non-Penny Classes remain highly
competitive such that they should
enable the Exchange to continue to
attract Market Maker order flow and
maintain market share. The Exchange
notes that the tiered Maker rebates for
Market Makers order in Non-Penny
Classes fall within the range of similar
rebates offered by competing options
exchanges for transactions by market
makers in Non-Penny Classes.23
Implementation
The proposed changes are effective
beginning November 1, 2024.
2. Statutory Basis
The Exchange believes that its
proposal to amend the Fee Schedule is
consistent with Section 6(b) of the Act 24
in general, and furthers the objectives of
Section 6(b)(4) of the Act,25 in that it is
an equitable allocation of reasonable
dues, fees and other charges among
Exchange Members and issuers and
other persons using its facilities, and
6(b)(5) of the Act,26 in that it is designed
to prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
impediments to and perfect the
22 See
supra note 15.
GEMX Options 7 Pricing Schedule, Section
3, Regular Order Fees and Rebates, available at
https://listingcenter.nasdaq.com/rulebook/gemx/
rules/GEMX%20Options%207 (last visited October
28, 2024) (providing tiered rebates ranging from
$0.40 to $0.75 per contract for market makers that
add liquidity in non-penny classes); see also Cboe
BZX Exchange, Inc. (‘‘BZX’’) Options Fee Schedule,
Transaction Fees, Standard Rates table, available at
https://www.cboe.com/us/options/membership/fee_
schedule/bzx/ (last visited October 28, 2024)
(providing tiered rebates ranging from $0.40 to
$0.88 per contract for market makers that add
liquidity in non-penny classes).
24 15 U.S.C. 78f(b).
25 15 U.S.C. 78f(b)(4).
26 15 U.S.C. 78f(b)(5).
ddrumheller on DSK120RN23PROD with NOTICES1
23 See
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mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
The Commission has repeatedly
expressed its preference for competition
over regulatory intervention in
determining prices, products, and
services in the securities markets. In
Regulation NMS, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 27
There are currently 18 registered
options exchanges competing for order
flow. Based on publicly-available
information, and excluding index-based
options, no single exchange had more
than approximately 14–15% of the
multiply-listed equity options market
share for the month of September
2024.28 Therefore, no exchange
possesses significant pricing power.
More specifically, the Exchange had a
market share of approximately 3.37% of
executed volume of multiply-listed
equity options for the month of
September 2024.29
The Exchange believes that the evershifting market share among the
exchanges from month to month
demonstrates that market participants
can discontinue or reduce use of certain
categories of products and services,
terminate an existing membership or
determine to not become a new member,
and/or shift order flow, in response to
transaction fee changes.
Proposal To Amend the Priority
Customer Origin in the Exchange
Rebates/Fees—Add/Remove Tier
Rebates/Fees Table at Section 1)a) of the
Fee Schedule To Decrease Certain
Maker Rebates in Penny Classes
The Exchange believes its proposal to
amend the Priority Customer origin to
decrease the Maker rebates in tiers 1 and
2 from ($0.31) to ($0.25) per contract for
Priority Customer orders in Penny
Classes that trade against all origins is
reasonable, equitable and not unfairly
discriminatory. The Exchange
previously increased the Maker rebates
in tiers 1 and 2 from ($0.25) to ($0.31)
per contract for Priority Customer orders
in Penny Classes that trade against all
27 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496 (June 29, 2005).
28 See the ‘‘Market Share’’ section of the
Exchange’s website, available at https://
www.miaxglobal.com/ (last visited October 28,
2024).
29 See id.
PO 00000
Frm 00151
Fmt 4703
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91463
origins in order to encourage Members
to submit more Priority Customer
orders.30 The Exchange recently
conducted an internal review and
analysis of fees and rebates and
determined that the Exchange has not
experienced the desired increased
liquidity and believes it is reasonable to
reduce the enhanced Maker rebates in
tiers 1 and 2 from ($0.31) to ($0.25) per
contract for Priority Customer orders in
Penny Classes. With the proposed
decrease, the Exchange’s Maker rebate
of ($0.25) per contract in tiers 1 and 2
for Priority Customer orders in Penny
classes are equal to the rebates offered
by at least two other competing options
exchanges for their customer orders.31
Accordingly, the Exchange believes that
the proposed change should enable the
Exchange to continue to attract Priority
Customer order flow and maintain
market share. The Exchange believes the
proposed Maker rebate in tiers 1 and 2
for Priority Customer orders in Penny
Classes is equitable and not unfairly
discriminatory because it will apply
equally to all market participants who
provide Priority Customer orders in
Penny Classes.
Proposal To Remove the Step-Up Maker
Rebate for Market Maker Orders in NonPenny Classes
The Exchange believes its proposal to
remove the Step-Up Maker Rebate is
reasonable, equitably allocated and not
unfairly discriminatory. The Exchange
initially established Step-Up Maker
Rebate in order to encourage Market
Makers to add more liquidity in NonPenny Classes, thereby promoting price
discovery and contributing to a deeper
and more liquid market.32 The
Exchange recently conducted an
internal review and analysis of fees and
rebates and determined that the
Exchange has not experienced the
desired increased liquidity and believes
it is reasonable to remove the Step-Up
Maker Rebate. The Exchange’s tiered
Maker rebates for Market Makers order
in Non-Penny Classes fall within the
range of similar rebates offered by
competing options exchanges for
transactions by market makers in NonPenny Classes,33 and therefore, the
Exchange believes that the Exchange’s
tiered Maker rebates for Market Makers
orders in Non-Penny Classes remain
highly competitive such that they
should enable the Exchange to continue
to attract Market Makers order flow and
maintain market share. The Exchange
30 See
supra note 15.
supra note 16.
32 See supra note 15.
33 See supra note 23.
31 See
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Federal Register / Vol. 89, No. 223 / Tuesday, November 19, 2024 / Notices
also believes its proposal to remove the
Step-Up Maker Rebate is equitable and
not unfairly discriminatory because the
tiered Maker rebates for Market Makers
orders in Non-Penny Classes will
continue to apply to all Market Makers.
The Exchange further believes that the
removal of the Step-Up Maker Rebate
will reduce complexity within the Fee
Schedule and provide greater clarity to
all Members. Less complexity and
greater clarity in the Fee Schedule helps
promote just and equitable principles of
trade and removes impediments to and
perfects the mechanisms of a free and
open market and a national market
system.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
ddrumheller on DSK120RN23PROD with NOTICES1
Intra-Market Competition
The Exchange does not believe that
any of the proposed changes will
impose any burden on intra-market
competition.
Proposal To Amend the Priority
Customer Origin in the Exchange
Rebates/Fees—Add/Remove Tier
Rebates/Fees Table at Section 1)a) of the
Fee Schedule To Decrease Certain
Maker Rebates in Penny Classes
The Exchange believes its proposal to
amend the Priority Customer origin to
decrease the Maker rebates in tiers 1 and
2 from ($0.31) to ($0.25) per contract for
Priority Customer orders in Penny
Classes that trade against all origins will
not impose any burden on intra-market
competition. The Exchange previously
increased the Maker rebates in tiers 1
and 2 from ($0.25) to ($0.31) per
contract for Priority Customer orders in
Penny Classes that trade against all
origins in order to encourage Members
to submit more Priority Customer
orders.34 The Exchange recently
conducted an internal review and
analysis of fees and rebates and
determined that the Exchange has not
experienced the desired increased
liquidity and it believes reducing the
Maker rebates in tiers 1 and 2 from
($0.31) to ($0.25) per contract for
Priority Customer orders in Penny
Classes will not impose any burden on
competition. The Exchange notes that
even with the proposed change, the
Exchange’s Maker rebate of ($0.25) per
contract for tiers 1 and 2 for Priority
Customer orders in Penny classes are
34 See
supra note 15.
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equal to the rebates offered by at least
two other competing options exchanges
for their customer orders in their base
tiers.35
Proposal To Remove the Step-Up Maker
Rebate for Market Maker Orders in NonPenny Classes
The Exchange believes its proposal to
establish the Step-Up Maker Rebate will
not impose any burden on intra-market
competition. The Exchange initially
established Step-Up Maker Rebate in
order to encourage Market Makers to
add more liquidity in Non-Penny
Classes, thereby promoting price
discovery and contributing to a deeper
and more liquid market, which benefits
all market participants and enhances the
attractiveness of the Exchange as a
trading venue.36 The Exchange recently
conducted an internal review and
analysis of fees and rebates and
determined that the Exchange has not
experienced the desired increased
liquidity and believes that removing the
Step-Up Maker Rebate will not impose
any burden on competition. The
Exchange’s tiered Maker rebates for
Market Maker orders in Non-Penny
Classes fall within the range of similar
rebates offered by competing options
exchanges for transactions by market
makers in Non-Penny Classes,37 and
therefore, the Exchange believes that the
Exchange’s tiered Maker rebates for
Market Makers orders in Non-Penny
Classes remain highly competitive such
that they should enable the Exchange to
continue to attract Market Makers order
flow and maintain market share.
Inter-Market Competition
The Exchange does not believe that
the proposed changes will impose any
burden on inter-market competition and
the Exchange notes that it operates in a
highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
excessive, or rebate opportunities
available at other venues to be more
favorable. There are currently 18
registered options exchanges competing
for order flow. Based on publiclyavailable information, and excluding
index-based options, no single exchange
had more than approximately 14–15%
of the multiply-listed equity options
market share for the month of
September 2024.38 Therefore, no
exchange possesses significant pricing
power. More specifically, the Exchange
supra note 16.
supra note 15.
37 See supra note 23.
38 See supra note 28.
had a market share of approximately
3.37% of executed volume of multiplylisted equity options for the month of
September 2024.39
In such an environment, the Exchange
must continually adjust its rebates and
tiers to remain competitive with other
options exchanges. Because competitors
are free to modify their own fees and
tiers in response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. The Exchange believes that the
proposed rule changes reflect this
competitive environment because they
modify the Exchange’s tiers and rebates
in a manner that encourages market
participants to continue to provide
liquidity and to send order flow to the
Exchange.
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,40 and Rule
19b–4(f)(2) 41 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.
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
35 See
36 See
PO 00000
Frm 00152
Fmt 4703
39 See
id.
U.S.C. 78s(b)(3)(A)(ii).
41 17 CFR 240.19b–4(f)(2).
40 15
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Federal Register / Vol. 89, No. 223 / Tuesday, November 19, 2024 / Notices
• Send an email to rule-comments@
sec.gov. Please include file number SR–
PEARL–2024–49 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
[Release No. 34–101614; File No. SR–
CboeBYX–2024–041]
• 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–PEARL–2024–49. 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–PEARL–2024–49 and should be
submitted on or before December 10,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.42
Sherry R. Haywood,
Assistant Secretary.
ddrumheller on DSK120RN23PROD with NOTICES1
[FR Doc. 2024–26873 Filed 11–18–24; 8:45 am]
BILLING CODE 8011–01–P
Self-Regulatory Organizations; Cboe
BYX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Adopt Fees
for Its New Offering of Market Data
Reports
November 13, 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 November
1, 2024, Cboe BYX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) 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 BYX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) proposes to
adopt fees for its new offering of market
data reports. 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/BYX/),
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.
1 15
42 17
CFR 200.30–3(a)(12).
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17:42 Nov 18, 2024
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PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00153
Fmt 4703
Sfmt 4703
91465
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 its
fee schedule to adopt fees for Cboe
Timestamping Service reports, effective
November 1, 2024. The Exchange
recently adopted a new data product
known as the Cboe Timestamping
Service.3 The Cboe Timestamping
Service provides timestamp information
for orders and cancels for market
participants. More specifically, the Cboe
Timestamping Service reports provide
various timestamps relating to the
message lifecycle throughout the
exchange system. The first report—the
Missed Liquidity Report—covers order
messages of the Member only and the
second report—Cancels Report—covers
cancel messages of the Member only.
The reports are optional products that
are available to all Members and
Members may opt to choose both
reports, one report, or neither report.
The Cancels Report provides response
time details for orders that rest on the
book where the Member attempted to
cancel that resting order or any other
resting order but was unable to do so as
the resting order was executed before
the system processed the cancel
message. The Cancels Report assists the
Member in determining by how much
time that order missed being canceled
instead of executing.
The Missed Liquidity Report provides
time details for executions of orders that
rest on the book where the Member
attempted to execute against that resting
order within an Exchange-determined
amount of time (not to exceed 1
millisecond) after receipt of the first
attempt to execute against the resting
order and within an Exchangedetermined amount of time (not to
exceed 100 microseconds) before receipt
of the first attempt to execute against the
resting order.
Both the Missed Liquidity Report and
Cancels Report include the following
data elements for orders 4 and cancel
messages,5 respectively: (1) Member
3 See Securities Exchange Act Release No. 100798
(August 27, 2024), 89 FR 68660 (August 21, 2024)
(SR–CboeBYX–2024–030).
4 The Missed Liquidity Report only includes trade
events which are triggered by an order that removed
liquidity on entry and will exclude trade events
resulting from: elected stop orders, orders routed
and executed at away venues, and peg order
movements, and auctions.
5 Includes individual order cancellations, mass
cancels, and purge orders messages that are sent via
Financial Information Exchange (‘‘FIX’’) protocol or
Binary Order Entry (BOE) protocol by a subscriber.
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]]>Agencies
[Federal Register Volume 89, Number 223 (Tuesday, November 19, 2024)]
[Notices]
[Pages 91460-91465]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26873]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101605; File No. SR-PEARL-2024-49]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX
Pearl Options Fee Schedule
November 13, 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 October 31, 2024, MIAX PEARL, LLC (``MIAX Pearl'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') a
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
[[Page 91461]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend the MIAX Pearl Options
Fee Schedule (``Fee Schedule'').
The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-options/pearl-options/rule-filings at MIAX Pearl's principal office, and at the Commission's
Public Reference Room.
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 Section 1)a) of the Fee Schedule,
Exchange Rebates/Fees--Add/Remove Tiered Rebates/Fees, to: (1) amend
the Priority Customer \3\ origin to reduce certain Maker rebates in
Penny Classes (defined below); and (2) remove the ``Step-Up Maker
Rebate'' (described below) for the MIAX Pearl Market Maker \4\ origin
in Non-Penny Classes.
---------------------------------------------------------------------------
\3\ The term ``Priority Customer'' means a person or entity that
(i) is not a broker or dealer in securities, and (ii) does not place
more than 390 orders in listed options per day on average during a
calendar month for its own beneficial accounts(s). The number of
orders shall be counted in accordance with Interpretation and Policy
.01 of Exchange Rule 100. See the Definitions section of the Fee
Schedule and Exchange Rule 100, including Interpretation and Policy
.01.
\4\ The term ``Market Maker'' means a Member registered with the
Exchange for the purpose of making markets in options contracts
traded on the Exchange and that is vested with the rights and
responsibilities specified in Chapter VI of Exchange Rules. See the
Definitions section of the Fee Schedule and Exchange Rule 100.
---------------------------------------------------------------------------
Background
The Exchange currently assesses transaction rebates and fees to all
market participants which are based upon the total monthly volume
executed by the Member \5\ on MIAX Pearl in the relevant, respective
origin type (not including Excluded Contracts) \6\ (as the numerator)
expressed as a percentage of (divided by) TCV \7\ (as the denominator).
In addition, the per contract transaction rebates and fees are applied
retroactively to all eligible volume for that origin type once the
respective threshold tier has been reached by the Member. The Exchange
aggregates the volume of Members and their Affiliates.\8\ Members that
place resting liquidity, i.e., orders resting on the Book \9\ of the
MIAX Pearl System,\10\ are paid the specified ``maker'' rebate (each a
``Maker''), and Members that execute against resting liquidity are
assessed the specified ``taker'' fee (each a ``Taker''). For opening
transactions and ABBO \11\ uncrossing transactions, per contract
transaction rebates and fees are waived for all market participants.
Finally, Members are assessed lower transaction fees and receive lower
rebates for order executions in standard option classes in the Penny
Interval Program \12\ (``Penny Classes'') than for order executions in
standard option classes which are not in the Penny Interval Program
(``Non-Penny Classes''), where Members are assessed higher transaction
fees and receive higher rebates.
---------------------------------------------------------------------------
\5\ The term ``Member'' means an individual or organization that
is registered with the Exchange pursuant to Chapter II of Exchange
Rules for purposes of trading on the Exchange as an ``Electronic
Exchange Member'' or ``Market Maker.'' Members are deemed
``members'' under the Exchange Act. See the Definitions section of
the Fee Schedule and Exchange Rule 100.
\6\ The term ``Excluded Contracts'' means any contracts routed
to an away market for execution. See the Definitions section of the
Fee Schedule.
\7\ The term ``TCV'' means total consolidated volume calculated
as the total national volume in those classes listed on MIAX Pearl
for the month for which the fees apply, excluding consolidated
volume executed during the period time in which the Exchange
experiences an ``Exchange System Disruption'' (solely in the option
classes of the affected Matching Engine (as defined below)). See the
Definitions section of the Fee Schedule. The term ``Exchange System
Disruption'' means an outage of a Matching Engine or collective
Matching Engines for a period of two consecutive hours or more,
during trading hours. Id. A ``Matching Engine'' is a part of the
MIAX Pearl electronic system that processes options orders and
trades on a symbol-by-symbol basis. Some Matching Engines will
process option classes with multiple root symbols, and other
Matching Engines may be dedicated to one single option root symbol
(for example, options on SPY may be processed by one single Matching
Engine that is dedicated only to SPY). A particular root symbol may
only be assigned to a single designated Matching Engine. A
particular root symbol may not be assigned to multiple Matching
Engines. Id. The Exchange believes that it is reasonable and
appropriate to select two consecutive hours as the amount of time
necessary to constitute an Exchange System Disruption, as two hours
equates to approximately 1.4% of available trading time per month.
The Exchange notes that the term ``Exchange System Disruption'' and
its meaning have no applicability outside of the Fee Schedule, as it
is used solely for purposes of calculating volume for the threshold
tiers in the Fee Schedule.
\8\ The term ``Affiliate'' means (i) an affiliate of a Member of
at least 75% common ownership between the firms as reflected on each
firm's Form BD, Schedule A, or (ii) the Appointed Market Maker of an
Appointed EEM (or, conversely, the Appointed EEM of an Appointed
Market Maker). An ``Appointed Market Maker'' is a MIAX Pearl Market
Maker (who does not otherwise have a corporate affiliation based
upon common ownership with an EEM) that has been appointed by an EEM
and an ``Appointed EEM'' is an EEM (who does not otherwise have a
corporate affiliation based upon common ownership with a MIAX Pearl
Market Maker) that has been appointed by a MIAX Pearl Market Maker,
pursuant to the following process. A MIAX Pearl Market Maker
appoints an EEM and an EEM appoints a MIAX Pearl Market Maker, for
the purposes of the Fee Schedule, by each completing and sending an
executed Volume Aggregation Request Form by email to
[email protected] no later than 2 business days prior to
the first business day of the month in which the designation is to
become effective. Transmittal of a validly completed and executed
form to the Exchange along with the Exchange's acknowledgement of
the effective designation to each of the Market Maker and EEM will
be viewed as acceptance of the appointment. The Exchange will only
recognize one designation per Member. A Member may make a
designation not more than once every 12 months (from the date of its
most recent designation), which designation shall remain in effect
unless or until the Exchange receives written notice submitted 2
business days prior to the first business day of the month from
either Member indicating that the appointment has been terminated.
Designations will become operative on the first business day of the
effective month and may not be terminated prior to the end of the
month. Execution data and reports will be provided to both parties.
See the Definitions section of the Fee Schedule.
\9\ The term ``Book'' means the electronic book of buy and sell
orders and quotes maintained by the System. See Exchange Rule 100.
\10\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
\11\ The term ``ABBO'' means the best bid(s) or offer(s)
disseminated by other Eligible Exchanges (defined in Exchange Rule
1400(g)) and calculated by the Exchange based on market information
received by the Exchange from OPRA. See the Definitions section of
the Fee Schedule and Exchange Rule 100.
\12\ See Securities Exchange Act Release No. 88992 (June 2,
2020), 85 FR 35142 (June 8, 2020) (SR-PEARL-2020-06).
---------------------------------------------------------------------------
Proposal To Amend the Priority Customer Origin in the Exchange Rebates/
Fees--Add/Remove Tier Rebates/Fees Table at Section 1)a) of the Fee
Schedule To Decrease Certain Maker Rebates in Penny Classes
First, the Exchange proposes to amend the Priority Customer origin
in the Exchange Rebates/Fees--Add/Remove Tier Rebates/Fees table at
Section 1)a) of the Fee Schedule to decrease the Maker rebates in tiers
1 and 2 for Priority Customer Orders \13\ in Penny Classes that trade
against all origins. Currently, the Priority Customer origin in the
Exchange Rebates/Fees--Add/Remove Tier Rebates/Fees table at
[[Page 91462]]
Section 1)a) of the Fee Schedule provides certain volume criteria
thresholds for all tiers that are based upon the total monthly volume
executed in all option classes by a Priority Customer on MIAX Pearl as
a percentage of TCV. Pursuant to the Priority Customer origin in the
Exchange Rebates/Fees--Add/Remove Tier Rebates/Fees table at Section
1)a) of the Fee Schedule, Priority Customers qualify for the following
Maker rebates when Priority Customer orders in Penny Classes trade
against all origins: (i) ($0.31) \14\ per contract in tiers 1 and 2 if
the Priority Customer executes above 0.00% to at least 0.40% of TCV;
(ii) ($0.45) per contract in tier 3 if the Priority Customer executes
above 0.40% to at least 0.85% of TCV; (iii) ($0.49) per contract in
tier 4 if the Priority Customer executes above 0.85% to at least 1.25%
of TCV; and (iv) ($0.52) per contract in tiers 5 and 6 if the Priority
Customer executes above 1.25% of TCV.
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\13\ The term ``Priority Customer Order'' means an order for the
account of a Priority Customer. See Exchange Rule 100.
\14\ Rebates are denoted in parentheses in the Fee Schedule.
---------------------------------------------------------------------------
The Exchange now proposes to amend the Priority Customer origin in
the Exchange Rebates/Fees--Add/Remove Tier Rebates/Fees table at
Section 1)a) of the Fee Schedule to decrease the Maker rebates in tiers
1 and 2 from ($0.31) to ($0.25) per contract for Priority Customer
Orders in Penny Classes that trade against all origins. The Exchange
does not propose to amend any of the volume threshold criteria or the
Maker rebates or Taker fees in any other tier for Priority Customer
Orders.
The purpose of this proposed change is for business and competitive
reasons. The Exchange previously amended the Priority Customer origin
in the Exchange Rebates/Fees--Add/Remove Tier Rebates/Fees table at
Section 1)a) of the Fee Schedule to increase the Maker rebates in tiers
1 and 2 from ($0.25) to ($0.31) per contract for Priority Customer
Orders in Penny Classes that trade against all origins in order to
encourage Members to submit more Priority Customer Orders, which the
Exchange believed may lead to increased liquidity on the Exchange.\15\
The Exchange recently conducted an internal review and analysis of fees
and rebates and determined that the Exchange has not experienced the
desired increased liquidity and now proposes to reduce the Maker
rebates in tiers 1 and 2 from ($0.31) to ($0.25) per contract for
Priority Customer Orders in Penny Classes that trade against all
origins. Even with the proposed change, the Exchange believes the Maker
rebates in tiers 1 and 2 for Priority Customer Orders in Penny classes
will remain highly competitive such that they should enable the
Exchange to continue to attract Priority Customer order flow and
maintain market share. The Exchange notes that the Maker rebate of
($0.25) per contract in tiers 1 and 2 for Priority Customer Orders in
Penny Classes are equal to the rebates offered by at least two
competing options exchanges for their customer orders.\16\
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\15\ See Securities Exchange Act Release No. 101122 (September
20, 2024), 89 FR 78920 (September 26, 2024) (SR-PEARL-2024-44).
\16\ See e.g., NYSE Arca, Inc (``NYSE Arca'') Options Fee
Schedule, Transaction Fees, Customer Penny Posting Credit Tiers,
available at https://www.nyse.com/publicdocs/nyse/markets/arca-options/NYSE_Arca_Options_Fee_Schedule.pdf (last visited October 28,
2024) (providing base credit $0.25 applied to electronic executions
of customer posted interest in penny classes); and Nasdaq GEMX, LLC
(``GEMX'') Options Fee Schedule, Section 3. Regular Order Fees and
Rebates, available at https://listingcenter.nasdaq.com/rulebook/gemx/rules/GEMX%20Options%207 (last visited October 28, 2024)
(providing a standard maker rebate of $0.25 in tier 1 for Priority
Customer orders in penny classes).
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Proposal To Remove the Step-Up Maker Rebate for Market Maker Orders
in Non-Penny Classes
Next, the Exchange proposes to amend the Market Maker origin in the
Exchange Rebates/Fees--Add/Remove Tier Rebates/Fees table at Section
1)a) of the Fee Schedule to remove the ``Step-Up Maker Rebate,'' which
is provided in footnote ``(i)'' following the table of transaction
rebates and fees for the Market Maker origin in Section 1)a) of the Fee
Schedule. Currently, pursuant to the Market Maker origin in the
Exchange Rebates/Fees--Add/Remove Tier Rebates/Fees table at Section
1)a) of the Fee Schedule, Market Makers qualify for the following Maker
rebates when Market Maker orders in Non-Penny Classes trade against all
origins: (i) ($0.30) per contract in tier 1 if the Market Maker
executes above 0.00% to at least 0.20% of TCV; (ii) ($0.30) per
contract in tier 2 if the Market Maker executes above 0.20% to at least
0.50% of TCV, or satisfies one of the two alternative volume criteria
of tier 2; \17\ (iii) ($0.60) per contract in tier 3 if the Market
Maker executes above 0.50% to at least 0.85% of TCV, or satisfies the
alternative volume criteria of tier 3; \18\ (iv) ($0.65) per contract
in tier 4 if the Market Maker executes above 0.85% to at least 1.25% of
TCV, or satisfies the alternative volume criteria of tier 4; \19\ (v)
($0.70) per contract in tier 5 if the Market Maker executes above 1.25%
to at least 1.40% of TCV; and (vi) ($0.85) per contract in tier 6 if
the Market Maker executes above 1.40% of TCV.
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\17\ A Market Maker need only to satisfy one of the following
two alternative volume criteria in order to receive the rebates or
fees associated with tier 2 of the Market Maker origin: (i) the
total monthly volume executed by the Market Maker collectively in
SPY/QQQ/IWM options on MIAX Pearl, not including Excluded Contracts,
is above 0.55% of SPY/QQQ/IWM TCV; or (ii) the Market Maker adds
liquidity collectively in SPY/QQQ/IWM options on MIAX Pearl, not
including Excluded Contracts, above 0.30% of SPY/QQQ/IWM TCV. See
Fee Schedule, Section 1)a), Market Maker origin. The term ``SPY/QQQ/
IWM TCV'' means total consolidated volume in SPY, QQQ, and IWM
calculated as the total national volume in SPY, QQQ, and IWM for the
month for which the fees apply, excluding consolidated volume
executed during the period of time in which the Exchange experiences
an Exchange System Disruption (solely in SPY, QQQ, or IWM options).
See the Definitions section of the Fee Schedule.
\18\ Market Makers satisfy the alternative volume criteria of
tier 3 by adding liquidity in SPY options on MIAX Pearl, not
including Excluded Contracts, above 1.10% of SPY TCV. The term ``SPY
TCV'' means total consolidated volume in SPY calculated as the total
national volume in SPY for the month for which the fees apply,
excluding consolidated volume executed during the period of time in
which the Exchange experiences an Exchange System Disruption (solely
in SPY options). See the Definitions section of the Fee Schedule.
Further, Market Makers qualify for: (i) Maker rebates of ($0.44) per
contract in SPY, QQQ and IWM options for their Market Maker origin
when trading against origins other than Priority Customer, and (ii)
Maker rebates of ($0.42) per contract in SPY, QQQ and IWM options
for their Market Maker origin when trading against Priority Customer
origins, if the Market Maker satisfies the alternative volume
criteria of tier 3, described above, of at least 1.10% in SPY when
adding liquidity. See Fee Schedule, Section 1)a), note ``[diams]''.
\19\ Market Makers satisfy the alternative volume criteria of
tier 4 if the Market Maker's executions solely in SPY options on
MIAX Pearl, not including Excluded Contracts, is above 2.50% of SPY
TCV.
---------------------------------------------------------------------------
Footnote ``(i)'' provides that a Market Maker may qualify for a
Step-Up Maker Rebate of ($0.86) per contract for Market Maker orders
for Non-Penny Classes, instead of the otherwise applicable standard
tiered Maker rebate described above for tiers 1 through 6. In order to
receive the Step-Up Maker Rebate, a Market Maker must have an increase
in the percentage of their added liquidity in Non-Penny Classes,
represented as a percentage of TCV, of at least 0.12% as compared to
the Market Maker's July 2024 \20\ added liquidity in Non-Penny Classes.
The Step-Up Maker Rebate is currently set to expire no later than
January 31, 2025.\21\ The Exchange now proposes to remove footnote
``(i)'' and the corresponding Step-Up Maker Rebate. The Exchange does
not propose to amend any of the volume threshold criteria or the Maker
rebates or Taker
[[Page 91463]]
fees in any tier for Market Makers orders in Non-Penny Classes.
---------------------------------------------------------------------------
\20\ The Exchange uses a baseline for added liquidity in Non-
Penny Classes of 0.00% of TCV for market participants that become
Market Makers of the Exchange after July 2024 for the purpose of the
Step-Up Maker Rebate calculation.
\21\ The Exchange notes that at the end of the sunset period,
the Step-Up Maker Rebate will no longer apply unless the Exchange
files a rule filing pursuant to Rule 19b-4 of the Exchange Act with
the Commission to amend the criteria terms or update the baseline
month to a more recent month.
---------------------------------------------------------------------------
The purpose of this change is for business and competitive reasons.
The Exchange initially established the Step-Up Maker Rebate in order to
encourage Market Makers to add more liquidity in Non-Penny Classes,
thereby promoting price discovery and contributing to a deeper and more
liquid market.\22\ The Exchange recently conducted an internal review
and analysis of fees and rebates and determined that the Exchange has
not experienced the desired increase in liquidity in Non-Penny Classes
and now proposes to remove the Step-Up Maker Rebate. The Exchange
believes that the tiered Maker rebates for Market Makers orders in Non-
Penny Classes remain highly competitive such that they should enable
the Exchange to continue to attract Market Maker order flow and
maintain market share. The Exchange notes that the tiered Maker rebates
for Market Makers order in Non-Penny Classes fall within the range of
similar rebates offered by competing options exchanges for transactions
by market makers in Non-Penny Classes.\23\
---------------------------------------------------------------------------
\22\ See supra note 15.
\23\ See GEMX Options 7 Pricing Schedule, Section 3, Regular
Order Fees and Rebates, available at https://listingcenter.nasdaq.com/rulebook/gemx/rules/GEMX%20Options%207
(last visited October 28, 2024) (providing tiered rebates ranging
from $0.40 to $0.75 per contract for market makers that add
liquidity in non-penny classes); see also Cboe BZX Exchange, Inc.
(``BZX'') Options Fee Schedule, Transaction Fees, Standard Rates
table, available at https://www.cboe.com/us/options/membership/fee_schedule/bzx/ (last visited October 28, 2024) (providing tiered
rebates ranging from $0.40 to $0.88 per contract for market makers
that add liquidity in non-penny classes).
---------------------------------------------------------------------------
Implementation
The proposed changes are effective beginning November 1, 2024.
2. Statutory Basis
The Exchange believes that its proposal to amend the Fee Schedule
is consistent with Section 6(b) of the Act \24\ in general, and
furthers the objectives of Section 6(b)(4) of the Act,\25\ in that it
is an equitable allocation of reasonable dues, fees and other charges
among Exchange Members and issuers and other persons using its
facilities, and 6(b)(5) of the Act,\26\ in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanisms of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------
\24\ 15 U.S.C. 78f(b).
\25\ 15 U.S.C. 78f(b)(4).
\26\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Commission has repeatedly expressed its preference for
competition over regulatory intervention in determining prices,
products, and services in the securities markets. In Regulation NMS,
the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \27\
---------------------------------------------------------------------------
\27\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005).
---------------------------------------------------------------------------
There are currently 18 registered options exchanges competing for
order flow. Based on publicly-available information, and excluding
index-based options, no single exchange had more than approximately 14-
15% of the multiply-listed equity options market share for the month of
September 2024.\28\ Therefore, no exchange possesses significant
pricing power. More specifically, the Exchange had a market share of
approximately 3.37% of executed volume of multiply-listed equity
options for the month of September 2024.\29\
---------------------------------------------------------------------------
\28\ See the ``Market Share'' section of the Exchange's website,
available at https://www.miaxglobal.com/ (last visited October 28,
2024).
\29\ See id.
---------------------------------------------------------------------------
The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
discontinue or reduce use of certain categories of products and
services, terminate an existing membership or determine to not become a
new member, and/or shift order flow, in response to transaction fee
changes.
Proposal To Amend the Priority Customer Origin in the Exchange Rebates/
Fees--Add/Remove Tier Rebates/Fees Table at Section 1)a) of the Fee
Schedule To Decrease Certain Maker Rebates in Penny Classes
The Exchange believes its proposal to amend the Priority Customer
origin to decrease the Maker rebates in tiers 1 and 2 from ($0.31) to
($0.25) per contract for Priority Customer orders in Penny Classes that
trade against all origins is reasonable, equitable and not unfairly
discriminatory. The Exchange previously increased the Maker rebates in
tiers 1 and 2 from ($0.25) to ($0.31) per contract for Priority
Customer orders in Penny Classes that trade against all origins in
order to encourage Members to submit more Priority Customer orders.\30\
The Exchange recently conducted an internal review and analysis of fees
and rebates and determined that the Exchange has not experienced the
desired increased liquidity and believes it is reasonable to reduce the
enhanced Maker rebates in tiers 1 and 2 from ($0.31) to ($0.25) per
contract for Priority Customer orders in Penny Classes. With the
proposed decrease, the Exchange's Maker rebate of ($0.25) per contract
in tiers 1 and 2 for Priority Customer orders in Penny classes are
equal to the rebates offered by at least two other competing options
exchanges for their customer orders.\31\ Accordingly, the Exchange
believes that the proposed change should enable the Exchange to
continue to attract Priority Customer order flow and maintain market
share. The Exchange believes the proposed Maker rebate in tiers 1 and 2
for Priority Customer orders in Penny Classes is equitable and not
unfairly discriminatory because it will apply equally to all market
participants who provide Priority Customer orders in Penny Classes.
---------------------------------------------------------------------------
\30\ See supra note 15.
\31\ See supra note 16.
---------------------------------------------------------------------------
Proposal To Remove the Step-Up Maker Rebate for Market Maker Orders in
Non-Penny Classes
The Exchange believes its proposal to remove the Step-Up Maker
Rebate is reasonable, equitably allocated and not unfairly
discriminatory. The Exchange initially established Step-Up Maker Rebate
in order to encourage Market Makers to add more liquidity in Non-Penny
Classes, thereby promoting price discovery and contributing to a deeper
and more liquid market.\32\ The Exchange recently conducted an internal
review and analysis of fees and rebates and determined that the
Exchange has not experienced the desired increased liquidity and
believes it is reasonable to remove the Step-Up Maker Rebate. The
Exchange's tiered Maker rebates for Market Makers order in Non-Penny
Classes fall within the range of similar rebates offered by competing
options exchanges for transactions by market makers in Non-Penny
Classes,\33\ and therefore, the Exchange believes that the Exchange's
tiered Maker rebates for Market Makers orders in Non-Penny Classes
remain highly competitive such that they should enable the Exchange to
continue to attract Market Makers order flow and maintain market share.
The Exchange
[[Page 91464]]
also believes its proposal to remove the Step-Up Maker Rebate is
equitable and not unfairly discriminatory because the tiered Maker
rebates for Market Makers orders in Non-Penny Classes will continue to
apply to all Market Makers. The Exchange further believes that the
removal of the Step-Up Maker Rebate will reduce complexity within the
Fee Schedule and provide greater clarity to all Members. Less
complexity and greater clarity in the Fee Schedule helps promote just
and equitable principles of trade and removes impediments to and
perfects the mechanisms of a free and open market and a national market
system.
---------------------------------------------------------------------------
\32\ See supra note 15.
\33\ See supra note 23.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
Intra-Market Competition
The Exchange does not believe that any of the proposed changes will
impose any burden on intra-market competition.
Proposal To Amend the Priority Customer Origin in the Exchange Rebates/
Fees--Add/Remove Tier Rebates/Fees Table at Section 1)a) of the Fee
Schedule To Decrease Certain Maker Rebates in Penny Classes
The Exchange believes its proposal to amend the Priority Customer
origin to decrease the Maker rebates in tiers 1 and 2 from ($0.31) to
($0.25) per contract for Priority Customer orders in Penny Classes that
trade against all origins will not impose any burden on intra-market
competition. The Exchange previously increased the Maker rebates in
tiers 1 and 2 from ($0.25) to ($0.31) per contract for Priority
Customer orders in Penny Classes that trade against all origins in
order to encourage Members to submit more Priority Customer orders.\34\
The Exchange recently conducted an internal review and analysis of fees
and rebates and determined that the Exchange has not experienced the
desired increased liquidity and it believes reducing the Maker rebates
in tiers 1 and 2 from ($0.31) to ($0.25) per contract for Priority
Customer orders in Penny Classes will not impose any burden on
competition. The Exchange notes that even with the proposed change, the
Exchange's Maker rebate of ($0.25) per contract for tiers 1 and 2 for
Priority Customer orders in Penny classes are equal to the rebates
offered by at least two other competing options exchanges for their
customer orders in their base tiers.\35\
---------------------------------------------------------------------------
\34\ See supra note 15.
\35\ See supra note 16.
---------------------------------------------------------------------------
Proposal To Remove the Step-Up Maker Rebate for Market Maker Orders in
Non-Penny Classes
The Exchange believes its proposal to establish the Step-Up Maker
Rebate will not impose any burden on intra-market competition. The
Exchange initially established Step-Up Maker Rebate in order to
encourage Market Makers to add more liquidity in Non-Penny Classes,
thereby promoting price discovery and contributing to a deeper and more
liquid market, which benefits all market participants and enhances the
attractiveness of the Exchange as a trading venue.\36\ The Exchange
recently conducted an internal review and analysis of fees and rebates
and determined that the Exchange has not experienced the desired
increased liquidity and believes that removing the Step-Up Maker Rebate
will not impose any burden on competition. The Exchange's tiered Maker
rebates for Market Maker orders in Non-Penny Classes fall within the
range of similar rebates offered by competing options exchanges for
transactions by market makers in Non-Penny Classes,\37\ and therefore,
the Exchange believes that the Exchange's tiered Maker rebates for
Market Makers orders in Non-Penny Classes remain highly competitive
such that they should enable the Exchange to continue to attract Market
Makers order flow and maintain market share.
---------------------------------------------------------------------------
\36\ See supra note 15.
\37\ See supra note 23.
---------------------------------------------------------------------------
Inter-Market Competition
The Exchange does not believe that the proposed changes will impose
any burden on inter-market competition and the Exchange notes that it
operates in a highly competitive market in which market participants
can readily favor competing venues if they deem fee levels at a
particular venue to be excessive, or rebate opportunities available at
other venues to be more favorable. There are currently 18 registered
options exchanges competing for order flow. Based on publicly-available
information, and excluding index-based options, no single exchange had
more than approximately 14-15% of the multiply-listed equity options
market share for the month of September 2024.\38\ Therefore, no
exchange possesses significant pricing power. More specifically, the
Exchange had a market share of approximately 3.37% of executed volume
of multiply-listed equity options for the month of September 2024.\39\
---------------------------------------------------------------------------
\38\ See supra note 28.
\39\ See id.
---------------------------------------------------------------------------
In such an environment, the Exchange must continually adjust its
rebates and tiers to remain competitive with other options exchanges.
Because competitors are free to modify their own fees and tiers in
response, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee changes in this market may impose any burden on competition is
extremely limited. The Exchange believes that the proposed rule changes
reflect this competitive environment because they modify the Exchange's
tiers and rebates in a manner that encourages market participants to
continue to provide liquidity and to send order flow to the Exchange.
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,\40\ and Rule 19b-4(f)(2) \41\ 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.
---------------------------------------------------------------------------
\40\ 15 U.S.C. 78s(b)(3)(A)(ii).
\41\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
[[Page 91465]]
Send an email to [email protected]. Please include
file number SR-PEARL-2024-49 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-PEARL-2024-49. 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-PEARL-2024-49 and should be
submitted on or before December 10, 2024.
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\42\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\42\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-26873 Filed 11-18-24; 8:45 am]
BILLING CODE 8011-01-P
