Notice2021-24532
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule
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Published
November 10, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 215 (Wednesday, November 10, 2021)</title>
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[Federal Register Volume 86, Number 215 (Wednesday, November 10, 2021)]
[Notices]
[Pages 62582-62584]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24532]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93526; File No. SR-EMERALD-2021-36]
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Its Fee Schedule
November 4, 2021.
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 22, 2021, MIAX Emerald, LLC (``MIAX Emerald'' or
``Exchange''), filed with the Securities and Exchange Commission
(``Commission'') a proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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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 amend the MIAX Emerald Fee
Schedule (the ``Fee Schedule'') to make non-substantive, clarifying
changes.
The text of the proposed rule change is available on the Exchange's
website at <a href="http://www.miaxoptions.com/rule-filings/emerald">http://www.miaxoptions.com/rule-filings/emerald</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 the Fee Schedule to make non-
substantive, clarifying changes to Sections (3)(b) and (5)(d)(ii) for
the monthly Trading Permit fees for Market Makers \3\ and the monthly
MIAX Emerald Express Interface (``MEI'') \4\ Port fees for Market
Makers. The Exchange does not propose to amend the amount of Trading
Permit fees or MEI Port fees in this filing. The Exchange also does not
propose to amend the calculation methodology for Trading Permit fees or
MEI Port fees in this filing.
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\3\ The term ``Market Makers'' refers to ``Lead Market Makers,''
``Primary Lead Market Makers,'' and ``Registered Market Makers''
collectively. See Exchange Rule 100.
\4\ MIAX Emerald Express Interface (``MEI'') is a connection to
the MIAX Emerald System that enables Market Makers to submit simple
and complex electronic quotes to MIAX Emerald. See the Definitions
Section of the Fee Schedule.
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Monthly Market Maker Trading Permit Fee Clarifying Changes
First, the Exchange proposes to amend Section 3(b) of the Fee
Schedule to amend the text below the table for the monthly Trading
Permit fees applicable to Market Makers. Specifically, the Exchange
proposes to add the following two clarifying sentences to begin the
explanatory paragraph following the table for the monthly Trading
Permit fees applicable to Market Makers:
For the calculation of the monthly Market Maker Trading Permits,
the applicable fee rate is the lesser of either the per class basis
or percentage of total national average daily volume measurement.
The amount of monthly Market Maker Trading Permit Fee will be based
upon the number of classes in which the Market Maker was assigned to
quote on any given day within the calendar month, or upon the class
volume percentages set forth in the above table.
The Exchange also proposes to remove the following sentence, which
is currently the first sentence of the explanatory paragraph below the
table for the monthly Trading Permit fees applicable to Market Makers:
For the calculation of the monthly Market Maker Trading Permit
Fees, the number of classes is defined as the greatest number of
classes the Market Maker was assigned to quote in on any given day
within the calendar month and the class volume
[[Page 62583]]
percentage is based on the total national average daily volume in
classes listed on MIAX Emerald in the prior calendar quarter.
In place of the deleted sentence described above, the Exchange
proposes to insert the following two sentences, which will become
sentences three and four of the revised explanatory paragraph:
The Exchange will assess MIAX Emerald Market Makers the monthly
Market Maker Trading Permit Fee based on the greatest number of
classes listed on MIAX Emerald that the MIAX Emerald Market Maker
was assigned to quote in on any given day within a calendar month.
The class volume percentage is based on the total national average
daily volume in classes listed on MIAX Emerald in the prior calendar
quarter.
The Exchange notes that these two sentences are a combination of
sentences already included in the explanatory paragraph. In connection
with all of the changes described above, the Exchange proposes to
delete the following sentence:
The Exchange will assess MIAX Emerald Market Makers the monthly
Market Maker Trading Permit Fee based on the greatest number of
classes listed on MIAX Emerald that the MIAX Emerald Market Maker
was assigned to quote in on any given day within a calendar month
and the applicable fee rate that is the lesser of either the per
class basis or percentage of total national average daily volume
measurement.
The Exchange notes that all of these changes, when taken together,
do not alter the calculation methodology for how the Exchange currently
calculates monthly Trading Permit fees for Market Makers. These changes
are being made solely to clarify the explanatory paragraph below the
table of fees for monthly Trading Permit fees for Market Makers. The
Exchange believes that these revised sentences summarize that the
monthly Market Maker Trading Permit fee rate is the lesser of the per
class basis or the percentage of total national average daily volume
measure and better clarifies how the MIAX Market Maker Trading Permit
fee will continue to be calculated and applied each month. The Exchange
does not propose to amend the amount or calculation of the monthly
Trading Permit fee for Market Makers.
MEI Port Fee Clarifying Changes
Next, the Exchange proposes to amend Section 5(d)(ii) of the Fee
Schedule to make non-substantive, clarifying changes to the explanatory
paragraph below the table of MEI Port fees applicable to Market Makers.
The Exchange proposes to move the current first sentence of the
explanatory paragraph below the table of MEI Port fees applicable to
Market Makers in Section 5(d)(ii) to now be the final sentence. In its
place, the Exchange proposes to add the following sentence: ``The
applicable fee rate is the lesser of either the per class basis or
percentage of total national average daily volume measurement.'' In
connection with this change, the Exchange proposes to amend the
sentence that will now follow the new first sentence of the explanatory
paragraph. In particular, the Exchange proposes to add ``MIAX Emerald
Express Interface'' to the second sentence of the explanatory paragraph
to contain the full term, ``MIAX Express Interface (`MEI')'' Port. The
final sentence of the explanatory paragraph will now read as follows:
``MIAX Emerald will assess monthly MEI Port Fees on Market Makers in
each month the Member has been credentialed to use the MEI Port in the
production environment and has been assigned to quote in at least one
class.''
Further, following the above changes, the Exchange proposes to
amend the second sentence of the explanatory paragraph to remove the
word ``and'' that connects the two clauses describing how the Exchange
calculates the monthly MEI Port fee for Market Makers. In place of the
word ``and,'' the Exchange proposes to clarify that the amount of the
monthly MEI Port fee will be based upon the number of classes in which
the Market Maker was assigned to quote on any given day within the
calendar month, or upon the class volume percentages set forth in the
MEI Port fee table.
The Exchange further proposes to remove the fifth sentence of the
explanatory paragraph below the table of MEI Port fees in Section
5(d)(ii) and move it up in the paragraph, immediately following the
second sentence. With this change, the third sentence of the
explanatory paragraph will be as follows: ``The Exchange will assess
MIAX Emerald Market Makers the monthly MEI Port Fee based on the
greatest number of classes listed on MIAX Emerald that the MIAX Emerald
Market Maker was assigned to quote in on any given day within a
calendar month.'' This phrase is currently contained in the fifth
sentence of the explanatory paragraph and the Exchange now proposes to
make the phrase its own sentence and move it earlier in the paragraph.
The Exchange believes that these revised sentences summarize that the
monthly MEI Port fee rate is the lesser of either the per class basis
or percentage of total national average daily volume measurement and
better clarifies how the monthly MEI Port fee for Market Makers will
continue to be calculated and applied. The Exchange does not propose to
amend the amount or calculation of the monthly MEI Port fee for Market
Makers.
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \5\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \6\ in particular, in that
it is an equitable allocation of reasonable fees and other charges
among its members and issuers and other persons using its facilities.
The Exchange also believes the proposal furthers the objectives of
Section 6(b)(5) of the Act in that it is designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general to protect investors and the public interest and is not
designed to permit unfair discrimination between customers, issuers,
brokers, and dealers.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes the proposed changes are consistent with
Section 6(b)(4) of the Act in that they are reasonable, equitable, and
not unfairly discriminatory because they are non-substantive,
clarifying changes regarding the Exchange's monthly Trading Permit and
MEI Port fees applicable to Market Makers and will reduce the risk of
confusion to market participants. The proposed changes promote just and
equitable principles of trade, remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general protect investors and the public interest by clarifying how
the MIAX Emerald Market Maker Trading Permit fee and the MEI Port fee
will be calculated and applied each month. The Exchange believes that
these proposed changes will provide greater clarity to Members and the
public regarding the Exchange's Fee Schedule and that it is in the
public interest for the Fee Schedule 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 change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. Specifically, the Exchange
believes the proposed change will not impose any burden on
[[Page 62584]]
intra-market competition as 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,
clarifying issues and provide added clarity to the Fee Schedule. 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 Fee Schedule.
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,\7\ and Rule 19b-4(f)(2) \8\ thereunder. At
any time within 60 days of the filing of the proposed rule change, the
Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act. If the Commission takes such
action, the Commission shall institute proceedings to determine whether
the proposed rule should be approved or disapproved.
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<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#6a181f060f47090507070f041e192a190f09440d051c"><span class="__cf_email__" data-cfemail="c3b1b6afa6eea0acaeaea6adb7b083b0a6a0eda4acb5">[email protected]</span></a>. Please include
File Number SR-EMERALD-2021-36 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-EMERALD-2021-36. 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-EMERALD-2021-36 and should be submitted
on or before December 1, 2021.
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\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021-24532 Filed 11-9-21; 8:45 am]
BILLING CODE 8011-01-P
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