Notice2021-21749
Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change by Miami International Securities Exchange, LLC To Amend Exchange Rule 402, Criteria for Underlying Securities, Rule 403, Withdrawal of Approval of Underlying Securities, Rule 404, Series of Option Contracts Open for Trading, Rule 404A, Select Provisions of Options Listing Procedures Plan, Rule 503, Openings on the Exchange, Rule 515A, MIAX Price Improvement Mechanism (“PRIME”) and PRIME Solicitation Mechanism, and Rule 518, Complex Orders
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 5, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 190 (Tuesday, October 5, 2021)</title>
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[Federal Register Volume 86, Number 190 (Tuesday, October 5, 2021)]
[Notices]
[Pages 55088-55090]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-21749]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93210; File No. SR-MIAX-2021-40]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change by Miami International Securities Exchange, LLC To
Amend Exchange Rule 402, Criteria for Underlying Securities, Rule 403,
Withdrawal of Approval of Underlying Securities, Rule 404, Series of
Option Contracts Open for Trading, Rule 404A, Select Provisions of
Options Listing Procedures Plan, Rule 503, Openings on the Exchange,
Rule 515A, MIAX Price Improvement Mechanism (``PRIME'') and PRIME
Solicitation Mechanism, and Rule 518, Complex Orders
September 30, 2021.
Pursuant to the provisions of Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on September 24, 2021, Miami International
Securities Exchange, LLC (``MIAX'' or the ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') a 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to make a number of minor, non-
substantive edits to Exchange Rules 402, Criteria for Underlying
Securities, 403, Withdrawal of Approval of Underlying Securities, 404,
Series of Option Contracts Open for Trading, 404A, Select Provisions of
Options Listing Procedures Plan, 503, Openings on the Exchange, 515A,
MIAX Price Improvement Mechanism (``PRIME'') and PRIME Solicitation
Mechanism, and 518, Complex Orders.
The text of the proposed rule change is available on the Exchange's
website at <a href="http://www.miaxoptions.com/rule-filings/">http://www.miaxoptions.com/rule-filings/</a>, at MIAX's
principal office, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Exchange Rules 402, 403, 404, 404A,
503, 515A, and 518 to make minor non-substantive edits and clarifying
changes to provide consistency and clarity within the rule text.
First, the Exchange proposes to delete the period at the end of
subparagraph (a)(1) of Exchange Rule 402 and add ``; and'' for purposes
of clarity in the rule text that both conditions listed in Exchange
Rule 402(a)(1)-(2) must be met.
Next, the Exchange proposes to amend subparagraph (b) of Exchange
Rule 402 to correctly spell the word ``foregoing'' in the last
sentence.
Next, the Exchange proposes to delete the period at the end of
subparagraph (b)(6)(i) of Exchange Rule 402 and add ``; and'' for the
sentence to be grammatically correct and for purposes of clarity in the
rule text that both conditions listed in Exchange Rule 402(b)(6)(i)-
(ii) must be met.
Next, the Exchange proposes to delete the period at the end of
subparagraph (c)(2)(i)(A) of Exchange Rule 402 and add ``; and'' for
the sentence to be grammatically correct and for purposes of clarity in
the rule text.
Next, the Exchange proposes to delete the comma at the end of
subparagraph (g)(1) of Exchange Rule 402 and add a semicolon for
purposes of clarity in the rule text.
Next, the Exchange proposes to amend subparagraph (i) of Exchange
Rule 402 to remove the word ``or'' after subparagraphs (i)(1), (2) and
(3). The purpose of these proposed changes is to provide consistency
and clarity throughout the rule text.
Next, the Exchange proposes to delete the semicolon at the end of
subparagraph (k)(1)(vi) of Exchange Rule 402 and add a period for the
sentence to be grammatically correct and for purposes of clarity in the
rule text.
Next, the Exchange proposes to amend Exchange Rule 403,
Interpretation and Policy .02, to add a colon before the list in the
second sentence, which uses semicolons for the sentence to be
grammatically correct.
Next, the Exchange proposes to amend Exchange Rule 404,
Interpretation and Policy .02(a), to remove the word ``Pilot'' when
referring to the Short Term Option Series Program. The purpose of this
proposed change is to provide consistency and clarity throughout the
rule text as the Short Term Options Series Program is not a pilot
program.\3\
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\3\ See Exchange Rule 404, Interpretation and Policy .02.
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Next, the Exchange proposes to amend Exchange Rule 404,
Interpretation and Policy .02(c), to add the word ``thirty'' before the
number in parentheses in the first sentence for purposes of consistency
and clarity in the rule text.
Next, the Exchange proposes to amend Exchange Rule 404,
Interpretation and Policy .02(e), to capitalize the word ``rule'' in
the last sentence of this subparagraph for purposes of consistency and
clarity in the rule text.
Next, the Exchange proposes to amend Exchange Rule 404,
Interpretation and Policy .02(f), to add the number ``(21)'' after the
word ``twenty-one'' for purposes of consistency and clarity in the rule
text.
Next, the Exchange proposes to amend Exchange Rule 404,
Interpretation and Policy .10, to update the name of one of the
Exchange-Traded Funds (``ETF'') from ``PowerShares Trust (``QQQ'')'' to
its updated name ``Invesco QQQ Trust (``QQQ'').'' \4\ According to the
most recent Prospectus for the QQQ ETF, the ETF Sponsor changed that
ETF's name. Accordingly, the Exchange proposes to update the name of
the QQQ ETF for consistency with the QQQ ETF's Prospectus.
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\4\ See Invesco QQQ Trust, Series 1 Prospectus, dated January
31, 2021, <a href="https://connect.rightprospectus.com/Invesco/TADF/46090E103/P?site=ETF">https://connect.rightprospectus.com/Invesco/TADF/46090E103/P?site=ETF</a>.
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Next, the Exchange proposes to amend Exchange Rule 404,
Interpretations and Policies .11, to add the number ``(21)'' after the
word ``twenty-one'' for purposes of consistency and clarity in the rule
text.
Next, the Exchange proposes to amend subparagraph (b) of Exchange
Rule 404A to add quotation marks around the phrase ``Exchange Traded
[[Page 55089]]
Fund Shares'' for the sentence to be grammatically correct.
Next, the Exchange proposes to amend subparagraph (d) of Exchange
Rule 503 to: (1) Change the word ``an'' to ``a'' immediately preceding
the phrase ``class-by- class basis''; (2) remove the space in the
middle of the hyphenated word ``class-by- class''; and (3) remove the
word ``the'' before the phrase ``. . . Members through a Regulatory
Circular.'' These proposed rule changes are to make the sentence
grammatically correct and to provide clarity in the rule text.
Next, the Exchange proposes to amend subparagraph (e)(1) of
Exchange Rule 503 to make two clarifying changes: (1) Deleting the
space between the words ``market'' and ``place'' in the second
sentence; and (2) capitalizing the word ``members'' in the third
sentence. The purpose of these proposed changes is to provide
consistency and clarity throughout the rule text as ``marketplace'' is
supposed to be one word and the term ``Members'' \5\ is a defined term
in the Exchange's rulebook that should be capitalized.
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\5\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
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Next, the Exchange proposes to amend subparagraph
(f)(2)(vii)(B)5.a. of Exchange Rule 503 to make two clarifying changes.
Subparagraph (f)(2)(vii)(B)5.a. currently has two references to
Interpretations and Policies of Exchange Rule 503, stated as ``Policy
.02'' and ``Policy .03.'' The Exchange now proposes to insert the words
``Interpretation and'' in front of both of those references to
Interpretations and Policies in order to provide consistency and
clarity throughout the rule text.
Next, the Exchange proposes to amend Exchange Rule 503,
Interpretation and Policy .03(f)(1). Currently, Interpretation and
Policy .03(f)(1) provides as follows: ``The System will broadcast a
system imbalance broadcast message to all subscribers of the Exchange's
relevant data feed and begin an SSIP Imbalance Timer, the duration of
which shall be determined by the Exchange and announced via Regulatory
Circular, however it shall not to exceed ten seconds.'' The Exchange
now proposes to delete the word ``to'' at the end of that sentence in
order for the sentence be grammatically correct and to provide clarity
throughout the rule text.
Next, the Exchange proposes to amend subparagraph (a)(1) of
Exchange Rule 515A to provide consistency and clarity to the rule text.
Subparagraphs (a)(1)(i)-(iii) provide the three conditions that must be
met in order for a Member (an ``Initiating Member'') to initiate a
PRIME Auction.\6\ The Exchange proposes to move the ``and'' from the
end of subparagraph (a)(1)(i) to the end of subparagraph (a)(1)(ii),
delete the period after subparagraph (a)(1)(ii), and lowercase the word
``with'' that begins subparagraph (a)(1)(iii). The purpose of these
changes is to provide consistency and clarity to the rule text such
that market participants know that in order to initiate a PRIME
Auction, all three conditions of subparagraphs (a)(1)(i)-(iii) of
Exchange Rule 515A must be met.
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\6\ See Exchange Rule 515A(a)(1).
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Finally, the Exchange proposes to amend subparagraph (b)(3) of
Exchange Rule 518 to add a closing parenthesis around the phrase ``as
defined in Rule 518(d)(4).'' The purpose of the proposed rule change is
for the sentence to be grammatically correct and for clarity in the
rule text.
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \7\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \8\ in particular, 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 regulating,
clearing, settling, processing information with respect to, and
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.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposed changes promote just and
equitable principles of trade and remove impediments to and perfect the
mechanism of a free and open market and a national market system
because the proposed rule changes will provide greater clarity to
Members and the public regarding the Exchange's Rules. It is in the
public interest for rules to be accurate and concise so as to eliminate
the potential for confusion.
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. Specifically, the Exchange
believes the proposed changes will not impose any burden on intra-
market competition as there is no functional change to the Exchange's
System and because the rules of the Exchange apply to all MIAX
participants equally. The proposed rule change will have no impact on
competition as it is not designed to address any competitive issue but
rather is designed to remedy minor non-substantive issues and provide
added clarity to the rule text of Exchange Rules 402, 403, 404, 404A,
503, 515A, and 518. In addition, the Exchange does not believe the
proposal will impose any burden on inter-market competition as the
proposal does not address any competitive issues and is intended to
protect investors by providing further transparency regarding the
Exchange's functionality.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) \9\ of the Act and Rule 19b-4(f)(6) thereunder.\10\
Because the foregoing proposed rule change does not: (i) Significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, it has become effective pursuant to
Section 19(b)(3)(A)(iii) of the Act and subparagraph (f)(6) of Rule
19b-4 thereunder.\11\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6).
\11\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to
give the Commission written notice of its intent to file the
proposed rule change at least five business days prior to the date
of filing of the proposed rule change, or such shorter time as
designated by the Commission. The Exchange has satisfied this
requirement.
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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
[[Page 55090]]
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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#3a484f565f17595557575f544e497a495f59145d554c"><span class="__cf_email__" data-cfemail="6c1e190009410f0301010902181f2c1f090f420b031a">[email protected]</span></a>. Please include
File Number SR-MIAX-2021-40 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-MIAX-2021-40. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-MIAX-2021-40, and should be submitted on
or before October 26, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-21749 Filed 10-4-21; 8:45 am]
BILLING CODE 8011-01-P
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