Notice2021-26241
Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing of a Proposed Rule Change To Adopt Exchange Rule 532, Order and Quote Price Protection Mechanisms and Risk Controls
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
December 3, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 230 (Friday, December 3, 2021)</title>
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[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
[Notices]
[Pages 68695-68703]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-26241]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93676; File No. SR-MIAX-2021-58]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing of a Proposed Rule Change To Adopt
Exchange Rule 532, Order and Quote Price Protection Mechanisms and Risk
Controls
November 29, 2021.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on November 16, 2021, Miami International Securities
Exchange, LLC (``MIAX Options'' or the ``Exchange'') filed with the
Securities and Exchange Commission (the ``Commission'') the proposed
rule change as described in Items I, II, and III below, which Items
have been prepared by the self-regulatory organization. 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\ 15 U.S.C. 78a.
\3\ 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 adopt new Exchange Rule 532,
Order and Quote Price Protection Mechanisms and Risk Controls; amend
Exchange
[[Page 68696]]
Rule 100, Definitions; and amend Exchange Rule 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 Options'
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 self-regulatory organization
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 those 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 parts 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 adopt new Exchange Rule 532, Order and
Quote Price Protection Mechanisms and Risk Controls. The Exchange
proposes to adopt a new Managed Protection Override feature, a new Max
Put Price Protection feature, and a new MIAX Strategy Price Protection
(``MSPP'') in new proposed Rule 532.
The Exchange proposes to relocate and amend paragraph (a), Vertical
Spread Variance (``VSV'') Price Protection; paragraph (b), Calendar
Spread Variance (``CSV'') Price Protection; and paragraph (c) VSV and
CSV Price Protection, from Interpretations and Policies .05 of Exchange
Rule 518 to new proposed Rule 532 as described below. Additionally, the
Exchange proposes to adopt a new Butterfly Spread Variance (``BSV'')
Price Protection to proposed section (b)(2) of new proposed Rule 532.
The Exchange proposes to relocate paragraph (d), Implied Away Best
Bid or Offer (``ixABBO'') Price Protection; paragraph (f), Complex MIAX
Options Price Collar Protection; and paragraph (g), Market Maker Single
Side Protection, from Interpretations and Policies .05 of Exchange Rule
518 to new proposed Rule 532 in their entirety and without modification
as section (b)(6), Complex MIAX Options Price Collar Protection;
section (b)(7), Implied Away Best Bid or Offer (``ixABBO'') Price
Protection; and section (b)(8), Market Maker Single Side Protection.
The Exchange proposes to amend Exchange Rule 100, Definitions to
insert a clarifying term to the definition of ``Book.''
The Exchange proposes to relabel paragraph (e) of Interpretations
and Policies .05 of Exchange Rule 518 to paragraph (a), and to make a
number of non-substantive changes to update internal cross references
throughout Exchange Rule 518 that have changed as a result of the
proposed changes contained herein.
Background
The Exchange began trading complex orders \4\ in October, 2016.\5\
As part of its effort to continue to build out its complex order market
segment the Exchange has continued to add order types \6\ and
functionality. To encourage Members \7\ to send complex orders to the
Exchange the Exchange has implemented numerous risk protections
specifically tailored to complex orders. The Exchange is now proposing
to modify Exchange Rule 518, Complex Orders, to relocate and
consolidate certain risk protection functionality in new proposed
Exchange Rule 532, Order and Quote Price Protection Mechanisms and Risk
Controls, and to adopt additional risk protection functionality as
described below.
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\4\ A ``complex order'' is any order involving the concurrent
purchase and/or sale of two or more different options in the same
underlying security (the ``legs'' or ``components'' of the complex
order), for the same account, in a ratio that is equal to or greater
than one-to-three (.333) and less than or equal to three-to-one
(3.00) and for the purposes of executing a particular investment
strategy. Mini-options may only be part of a complex order that
includes other mini-options. Only those complex orders in the
classes designated by the Exchange and communicated to Members via
Regulatory Circular with no more than the applicable number of legs,
as determined by the Exchange on a class-by-class basis and
communicated to Members via Regulatory Circular, are eligible for
processing. See Exchange Rule 518(a)(5).
\5\ For a complete description of the trading of complex orders
on the Exchange, see Exchange Rule 518. See also, Securities
Exchange Act Release No. 79072 (October 7, 2016), 81 FR 71131
(October 14, 2016) (SR-MIAX-2016-26).
\6\ See Securities Exchange Act Release Nos. 89085 (June 17,
2020), 85 FR 37719 (June 23, 2020) (SR-MIAX-2020-16) (Proposal to
adopt new Complex Attributable Order); 89212 (July 1, 2020), 85 FR
41075 (July 8, 2020) (SR-MIAX-2020-20) (Proposal to adopt new
Complex Auction-on-Arrival-Only ``cAOAO'' order type).
\7\ 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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Proposal
Managed Protection Override
The Exchange proposes to adopt a new Managed Protection Override
feature which will work in conjunction with certain risk protections on
the Exchange. If a Member enables the Managed Protection Override then
all risk protections connected to the Managed Protection Override
feature are engaged. When a risk protection connected to the Managed
Protection Override feature is triggered, and the Managed Protection
Override feature is enabled, the order subject to the risk protection
will be cancelled.
The Managed Protection Override will be available for the following
risk protections: Vertical Spread Variance (``VSV'') Price Protection,
Calendar Spread Variance (``CSV'') Price Protection, new proposed
Butterfly Spread Variance (``BSV'') Price Protection, Parity Price
Protection, and new proposed Max Put Price Protection.
Currently, when the Vertical Spread Variance (``VSV'') Price
Protection and the Calendar Spread Variance (``CSV'') Price Protection
are triggered the default behavior is to manage the order in accordance
to Exchange Rule 518(c)(4).\8\ Additionally, when the Parity Price
Protection is triggered the default behavior is to place the order on
the Strategy Book \9\ at its parity protected price.\10\ The Exchange
believes that offering Members the option to have their orders either
managed by the Exchange or cancelled gives Members greater flexibility
and control over their orders while retaining risk protection
functionality.
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\8\ See Interpretations and Policies .05(c) of Exchange Rule
518.
\9\ The ``Strategy Book'' is the Exchange's electronic book of
complex orders and complex quotes. See Exchange Rule 518(a)(17).
\10\ See Interpretations and Policies .01(g) of Exchange Rule
518.
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Max Put Price Protection (``MPPP'')
The Exchange proposes to adopt a new price protection for Put
options \11\ by establishing a maximum price at which a Put option may
trade.\12\ To
[[Page 68697]]
determine the maximum price the Exchange will add a pre-set value, the
Put Price Variance (``PPV''),\13\ to the strike price of the Put
option. The pre-set value will be determined by the Exchange and
communicated to Members via Regulatory Circular. Put bid orders priced
through the maximum value (bids higher than the maximum value) will
trade up to, and including, the maximum value, and then will be managed
at the limit of the allowable range, or optionally cancelled if the
Managed Protection Override feature is enabled. Put offer orders priced
higher than the maximum value will be rejected. A bid quote will trade
up to, and including, the maximum value, then will be managed at the
limit of the allowable range, or in the case of a bid eQuote, will be
cancelled. An offer quote received that is higher than the maximum
price will be displayed.\14\
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\11\ The term ``put'' means an option contract under which the
holder of the option has the right, in accordance to the terms and
provisions of the option, to sell to the Clearing Corporation the
number of units of the underlying security covered by the option
contract. See Exchange Rule 100.
\12\ The Exchange notes that the Cboe Exchange offers a similar
Buy Order Put Protection which provides that if a User enters a buy
limit order for a put with, or if a buy market order (or unexecuted
portion) for a put would execute at, a price higher than or equal to
the strike price of the option, the System cancels or rejects the
order (or unexecuted portion) or quote. This check does not apply to
adjusted series or bulk messages. See Cboe Exchange Rule 5.34(a)(3).
\13\ The proposed pre-set value for the Put Price Variance will
be $0.10 to align to other similar price protections on the
Exchange. The Exchange believes this value provides an adequate
price range for executions while offering price protection against
potentially erroneous executions. See MIAX Regulatory Circular 2016-
47, MIAX Complex Order Price Protection Pre-set Values (October 20,
2016) available at <a href="https://www.miaxoptions.com/sites/default/files/circular-files/MIAX_RC_2016_47.pdf">https://www.miaxoptions.com/sites/default/files/circular-files/MIAX_RC_2016_47.pdf</a>, which establishes a $0.10 pre-
set value for Vertical Spreads and Calendar Spreads.
\14\ Orders and quotes are handled differently as orders may
only be submitted by Electronic Exchange Members and quotes may only
be submitted by Market Makers. The term ``Electronic Exchange
Member'' or ``EEM'' means the holder of a Trading Permit who is not
a Market Maker. Electronic Exchange Members are deemed ``members''
under the Exchange Act. See Exchange Rule 100. The term ``Market
Makers'' refers to ``Lead Market Makers'', ``Primary Lead Market
Makers'' and ``Registered Market Makers'' collectively. See Exchange
Rule 100.
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Example Max Put Price Protection for a Buy Market Order
An order to Buy 10 XYZ Jan 5 Put @ Market is received.
The current market is:
MBBO \15\ 0.50 (10) x 5.50 (10)
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\15\ The term ``MBBO'' means the best bid or offer on the Simple
Order Book on the Exchange. See Exchange Rule 518(a)(13). The
``Simple Order Book'' is the Exchange's regular electronic book of
orders and quotes. See Exchange Rule 518(a)(15).
The price protection is:
Put Price Variance (PPV) = $0.10
Max Put Price Protection = (Strike + PPV) = $5.10
Because the Buy Order is priced through the Max Put Price
Protection of $5.10, the order is subject to management and posted to
the order book at $5.10.
MBBO 5.10 (10) x 5.50 (10)
Example Max Put Price Protection for a Sell Limit Order
An Order to Sell 10 XYZ Jan 5 Put @ $5.25 is received.
The current market is:
MBBO 0.50 (10) x 5.50 (10)
The price protection is:
Put Price Variance (PPV) = $0.10
Put Option = XYZ Jan 5 Put
Max Put Price Protection = (Strike + PPV) = $5.10
Because the Sell Order is priced higher than the Max Put Price
Protection of $5.10, the order is rejected.
Example Max Put Price Protection for a Buy Quote
A Quote to Buy 10 XYZ Jan 5 Put @ 5.50 is received.
The current market is:
MBBO 0.50 (10) x 5.50 (10)
The price protection is:
Put Price Variance (PPV) = $0.10
Put Option = XYZ Jan 5 Put
Max Put Price Protection = (Strike + PPV) = $5.10
Because the Buy Quote is priced through the Max Put Price
Protection of $5.10, the quote posted to the order book and managed at
$5.10.
MBBO 5.10 (10) x 5.50 (10)
Example Max Put Price Protection for a Sell Quote
A Quote to Sell 10 XYZ Jan 5 Put @ $5.25 is received.
The current market is:
MBBO 0.50 (10) x 5.50 (10)
The price protection is:
Put Price Variance (PPV) = $0.10
Put Option = XYZ Jan 5 Put
Max Put Price Protection = (Strike + PPV) = $5.10
Although the Sell Quote is priced higher than the Max Put Price
Protection of $5.10, sell Quotes priced higher than the Max Put Price
Protection are not rejected and therefore it is posted to the order
book at $5.25.
MBBO 5.10 (10) x 5.25 (10)
The Exchange believes that offering Members the option to have
orders either managed by the Exchange or cancelled when a risk
protection is triggered gives Members greater flexibility and control
over their orders while retaining the risk protection functionality.
Definitions
The Exchange proposes to include a ``Definitions'' section as
paragraph (b)(1) in Rule 532. For the purposes of proposed paragraph
(b) the Exchange will adopt the following definition of a Butterfly
Spread in section (b)(1)(i): A ``Butterfly Spread'' is a three legged
Complex Order with two legs to buy (sell) the same number of calls \16\
(puts) and one leg is to sell (buy) twice the number of calls (puts),
all legs have the same expiration; the strike price of each leg is
equidistant from the next sequential strike price; and all legs overlie
the same security.\17\
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\16\ The term ``call'' means an option contract under which the
holder of the option has the right, in accordance with the terms of
the option, to purchase from the Clearing Corporation the number of
units of the underlying security covered by the option contract. See
Exchange Rule 100.
\17\ The Exchange notes that its proposed definition of a
Butterfly Spread is substantially similar to the definition of a
Butterfly Spread used by at least one other options exchange. See
Nasdaq ISE, Options 3 Options Trading Rules, Section 16. Complex
Order Risk Protections, (b)(3).
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The Exchange also proposes to relocate the definition of Calendar
Spread and Vertical Spread from Interpretations and Policies .05(b) and
.05(a) of Exchange Rule 518 respectively, to proposed section
(b)(1)(ii) and (iii) of proposed Rule 532 respectively. The definition
of a Calendar Spread is a complex strategy consisting of one call (put)
option and the sale of another call (put) option overlaying the same
security that have different expirations but the same strike price. The
definition of a Vertical Spread is a complex strategy consisting of the
purchase of one call (put) option and the sale of another call (put)
option overlying the same security that have the same expiration but
different strike prices. The Exchange notes its definition of a
Calendar Spread and a Vertical Spread is not changing under this
proposal.
Butterfly Spread Price Variance (``BSV'') Price Protection
The Exchange proposes to adopt a new price protection for Butterfly
Spreads as section (b)(2) of new proposed Rule 532. A butterfly spread
is comprised of three legs which have the same expiration date, and are
of the same type, either calls or puts, and are at equal strike
intervals. The upper and lower strikes are each a buy (sell) and the
middle strike is a sell (buy). The ratio of a butterfly spread will
always be +1 -2 +1 or -1 +2 -1.
Butterfly Spread Example
Buy 1 XYZ April 50 Call
Sell 2 XYZ April 55 Calls
Buy 1 FYX April 60 Call
The Exchange will establish a price protection for Butterfly
Spreads by establishing a Butterfly Spread Variance. The minimum value
of a Butterfly Spread is zero and the maximum value is capped at the
[[Page 68698]]
absolute value of the difference between the closest strikes (the upper
strike price minus the middle strike price or the middle strike price
minus the lower strike price). To establish the maximum and minimum
trading values, a configurable pre-set value is added to the maximum
spread value and subtracted from the minimum spread value. The pre-set
value will be determined by the Exchange and communicated to Members
via Regulatory Circular.\18\ The minimum and maximum spread values are
used together to create an allowable trading range for the Butterfly
Spread. Liquidity priced through the allowable trading range (bids
higher than the maximum value or offers lower than the minimum value)
will trade up to and including the maximum value for bids or down to
and including the minimum value for offers, and then will be managed at
the limit of the allowable trading range, or cancelled if the Managed
Protection Override is enabled. Liquidity priced outside the allowable
trading range (offers higher than the maximum value or bids lower than
the minimum value) will be rejected.
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\18\ The Exchange proposes to use a pre-set value of $0.10 for
Butterfly Spreads to align to the pre-set value which is used on the
Exchange for Calendar Spreads and Vertical Spreads. See supra note
12.
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Example
Butterfly Spread: Buy 1 April 50 Call, Sell 2 April 55 Calls, Buy 1
April 60 Call.
April 50 Call MBBO: $11.00 x $16.00
April 55 Call MBBO: $6.00 x $11.00
April 60 Call MBBO: $1.00 x $6.00
The maximum spread value is absolute value of the difference
between the closest strikes or $5.00 (60.00-55.00 or 55.00-50.00). The
minimum spread value is zero. If the pre-set value is $0.10 the maximum
allowable price is then $5.10 and the minimum allowable price is then
$0.10. A strategy order to buy at $5.15 will be managed on the Strategy
Book at $5.10.
Calendar Spread Variance (``CSV'') Price Protection
The Exchange proposes to (i) relocate the Calendar Spread Variance
(``CSV'') Price Protection from Rule 518; (ii) make a clarifying change
to the rule text; and (iii) amend the rule text to enable the operation
of the Managed Protection Override. Specifically, the Exchange proposes
to relocate the Calendar Spread Variance (``CSV'') Price Protection
from Interpretations and Policies .05(b) of Rule 518 to paragraph
(b)(3) of new proposed Rule 532. Additionally, the Exchange proposes to
amend the rule text of proposed subparagraph (b)(3)(iv) to provide that
if the execution price of a complex order would be outside the limit
set forth in proposed subparagraph (i) \19\ of proposed Rule 532(b)(3),
such complex order will trade down to, and including, the minimum
value. This proposed change clarifies the operation of the rule and
harmonizes the operation of the rule to that of the Vertical Spread
Variance (``VSV'') and Butterfly Spread Variance (``BSV'') Price
Protections. Remaining interest will then be placed on the Strategy
Book and managed to the appropriate trading price limit as described in
Rule 518(c)(4), or cancelled if the Managed Protection Override is
enabled. Orders to buy below the minimum trading price limit will be
rejected by the System.\20\
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\19\ The Exchange notes that proposed subparagraph (i) is
identical to current paragraph (1) of Interpretations and Policies
.05(b) of Exchange Rule 518.
\20\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
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Vertical Spread Variance (``VSV'') Price Protection
The Exchange proposes to (i) relocate Vertical Spread Variance
(``VSV'') Price Protection from Rule 518; (ii) make a clarifying change
to the rule text; and (iii) amend the rule text to enable the operation
of the Managed Protection Override. Specifically, the Exchange proposes
to relocate the Vertical Spread Variance (``VSV'') Price Protection
from Interpretations and Policies .05(a) of Rule 518 to paragraph
(b)(4) of new proposed Rule 532. Additionally, the Exchange proposes to
amend the rule text of proposed subparagraph (b)(4)(iii) to provide
that if the execution price of a complex order would be outside the
limits set forth in proposed subparagraph (i) \21\ of proposed Rule
532(b)(4), such complex order will trade up to, and including, the
maximum value for bids or down to, and including, the minimum value for
offers. This proposed change clarifies the operation of the rule and
harmonizes the operation of the rule to that of the Calendar Spread
Variance (``CSV'') and Butterfly Spread Variance (``BSV'') Price
Protections. Remaining interest will then be placed on the Strategy
Book and managed to an appropriate trading price limit as described in
Rule 518(c)(4), or cancelled if the Managed Protection Override is
enabled. Orders to buy below the minimum trading price limit and orders
to sell above the maximum trading price limit will be rejected by the
System.
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\21\ The Exchange notes that proposed subparagraph (i) is
identical to current paragraph (1) of Interpretations and Policies
.05(a) of Exchange Rule 518.
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MIAX Strategy Price Protection (``MSPP'')
The Exchange now proposes to introduce a MIAX Strategy Price
Protection (``MSPP'') which will establish a maximum protected price
for buy orders and a minimum protected price for sell orders. To
determine the maximum price for a buy order the Exchange will add a
pre-set value, the MIAX Strategy Price Protection Variance
(``MSPPV''),\22\ to the offer side value of the cNBBO.\23\ To determine
the minimum protected price for sell orders the Exchange will subtract
the MSPPV value from the bid side value of the cNBBO. The MSPPV value
will be determined by the Exchange and communicated to Members via
Regulatory Circular. For market orders \24\ the functional limit will
be the MSPP. All Day \25\ and GTC \26\ complex orders are eligible for
the MIAX Strategy Price Protection. cIOC orders,\27\ cAOC orders,\28\
cIOC eQuotes,\29\ and cAOC
[[Page 68699]]
eQuotes,\30\ are not eligible for the MIAX Strategy Price
Protection,\31\ nor are crossing orders.\32\ The MIAX Strategy Price
Protection is an additional price protection feature provided to all
Members of the Exchange.
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\22\ The Exchange proposes to use a pre-set value of $2.50 for
the MIAX Strategy Price Protection Variance (``MSPPV''). The
Exchange believes this value provides an adequate price range for
executions while offering price protection against potentially
erroneous executions.
\23\ The cNBBO is calculated using the NBBO for each component
of a complex strategy to establish the best net bid and offer for a
complex strategy. For stock-option orders, the cNBBO for a complex
strategy will be calculated using the NBBO in the individual option
component(s) and the NBBO in the stock component. See Exchange Rule
518(a)(2).
\24\ A market order is an order to buy or sell a stated number
of option contracts at the best price available at the time of
execution. See Exchange Rule 516(a).
\25\ A Day Limit Order is an order to buy or sell which, if not
executed, expires at the end of trading in the security on the day
on which it was entered. See Exchange Rule 516(k).
\26\ A Good 'til Cancelled or ``GTC'' Order is an order to buy
or sell which remains in effect until it is either executed,
cancelled or the underlying option expires. See Exchange Rule
516(l).
\27\ A Complex Immediate-or-Cancel or ``cIOC'' order is a
complex order that is to be executed in whole or in part upon
receipt. Any portion not so executed is cancelled. See Exchange Rule
518(b)(4).
\28\ A Complex Auction-or-Cancel or ``cAOC'' order is a complex
limit order used to provide liquidity during a specific Complex
Auction with a time in force that corresponds with that event. cAOC
orders are not displayed to any market participant, and are not
eligible for trading outside of the event. A cAOC order with a size
greater than the aggregate auctioned size (as defined in Rule
518(d)(4)) will be capped for allocation purposes at the aggregate
auctioned size. See Exchange Rule 518(b)(3).
\29\ A ``Complex Immediate or Cancel eQuote'' or ``cIOC
eQuote,'' which is a complex eQuote with a time-in-force of IOC that
may be matched with another complex quote or complex order for an
execution to occur in whole or in part upon receipt into the System.
cIOC eQuotes will not: (i) Be executed against individual orders and
quotes resting on the Simple Order Book; (ii) be eligible to
initiate a Complex Auction or join a Complex Auction in progress;
(iii) rest on the Strategy Book; or (iv) be displayed. Any portion
of a cIOC eQuote that is not executed is immediately cancelled. See
paragraph (c)(2) of Interpretations and Policies .02 of Exchange
Rule 518.
\30\ A ``Complex Auction or Cancel eQuote'' or ``cAOC eQuote,''
which is an eQuote submitted by a Market Maker that is used to
provide liquidity during a specific Complex Auction with a time in
force that corresponds with the duration of the Complex Auction. A
cAOC eQuote with a size greater than the aggregate auctioned size
(as defined in Rule 518(d)(4)) will be capped for allocation
purposes at the aggregate auctioned size. cAOC eQuotes will not: (i)
Be executed against individual orders and quotes resting on the
Simple Order Book; (ii) be eligible to initiate a Complex Auction,
but may join a Complex Auction in progress; (iii) rest on the
Strategy Book; or (iv) be displayed. See paragraph (c)(1) of
Interpretations and Policies .02 of Exchange Rule 518.
\31\ The Exchange does not believe that these order types
require the additional price protection afforded by the MSPP as
these orders and quotes do not rest on the Strategy Book but are
either executed immediately or cancelled. See supra notes 26, 27,
28, and 29.
\32\ The Exchange does not believe that crossing orders require
the additional price protection afforded by the MSPP as the
execution price of these orders is pre-established. A Complex
Customer Cross or ``cC2C'' Order is comprised of one Priority
Customer complex order to buy and one Priority Customer complex
order to sell at the same price and for the same quantity. Trading
of cC2C Orders is governed by Rule 515(h)(3). See Exchange Rule
518(b)(5). A Complex Qualified Contingent Cross or ``cQCC'' Order is
comprised of an originating complex order to buy or sell where each
component is at least 1,000 contracts that is identified as being
part of a qualified contingent trade, as defined in Rule 516,
Interpretations and Policies .01, coupled with a contra-side complex
order or orders totaling an equal number of contracts. Trading of
cQCC Orders is governed by Rule 515(h)(4). See Exchange Rule
518(b)(6).
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If the MSPP is priced less aggressively than the limit price of a
complex order (i.e., the MSPP is less than the complex order's bid
price for a buy order, or the MSPP is greater than the complex order's
offer price for a sell order) the order will be (i) displayed and/or
executed up to, and including, its MSPP for buy orders; or (ii)
displayed and/or executed down to, and including, its MSPP for sell
orders. Any unexecuted portion of such a complex order will be
cancelled.
If the MSPP is priced equal to, or more aggressively than, the
limit price of a complex order (i.e., the MSPP is greater than the
complex order's bid price for a buy order, of [sic] the MSPP is less
than the complex order's offer price for a sell order) the order will
be (i) displayed and/or executed up to, and including, its limit price
for buy orders; or (ii) displayed and/or executed down to, and
including, its limit price for sell orders. Any unexecuted portion of
such a complex order: (A) Will be subject to the cLEP as described in
subsection (e) of Exchange Rule 518; (B) may be submitted, if eligible,
to the managed interest process described in Exchange Rule 518(c)(4);
or (C) may be placed on the Strategy Book at its limit price.
The MSPP is designed to work in conjunction with other features on
the Exchange such as the Complex Liquidity Exposure (``cLEP'') Process.
The Exchange introduced the Complex Liquidity Exposure Process (cLEP)
in 2018.\33\ The cLEP process was designed for complex orders and
complex eQuotes that violate their Complex MIAX Price Collar (``MPC)
price.\34\ The MPC price protection feature is an Exchange-wide
mechanism under which a complex order or complex eQuote to sell will
not be displayed or executed at a price that is lower than the opposite
side cNBBO bid at the time the MPC is assigned by the System (i.e.,
upon receipt or upon opening) by more than a specific dollar amount
expressed in $0.01 increments (the ``MPC Setting''), and under which a
complex order or eQuote to buy will not be displayed or executed at a
price that is higher than the opposite side cNBBO offer at the time the
MPC is assigned by the System by more than the MPC Setting (each the
``MPC Price'').\35\ The MPC Price is established (i) upon receipt of
the complex order or eQuote during free trading, or (ii) if the complex
order or eQuote is not received during free trading, at the opening (or
reopening following a halt) of trading in the complex strategy; or
(iii) upon evaluation of the Strategy Book by the System when a wide
market condition, as described in Interpretations and Policies
.05(e)(1) of this Rule, no longer exists.\36\ Once established the MPC
Price will not change during the life of the complex order or eQuote.
If the MPC Price is priced less aggressively than the limit price of
the complex order or eQuote (i.e., the MPC Price is less than the
complex order or eQuote's bid price for a buy, or the MPC Price is
greater than the complex order or eQuote's offer price for a sell), or
if the complex order is a market order, the complex order or eQuote
will be displayed and/or executed up to its MPC Price.\37\
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\33\ See Securities Exchange Act Release No. 85155 (February 15,
2019), 84 FR 5739 (February 22, 2019) (SR-MIAX-2018-36).
\34\ The Exchange notes that there are no changes to the Complex
MIAX Price Collar functionality under this proposal.
\35\ See Exchange Rule 518.05(f).
\36\ See Exchange Rule 518.05(f)(3).
\37\ See Exchange Rule 518.05(f)(5).
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A complex order or complex eQuote that would violate its MPC Price
begins a cLEP Auction.\38\ The System will post the complex order or
eQuote to the Strategy Book at its MPC Price and begin the cLEP Auction
by broadcasting a liquidity exposure message to all subscribers of the
Exchange's data feeds.\39\ Remaining liquidity with an original limit
price that is (i) less aggressive (lower for a buy order or eQuote, or
higher for a sell order or eQuote) than or equal to the MPC Price will
be handled in accordance with subsection (c)(2)(ii)-(v) of Rule 518, or
(ii) more aggressive than the MPC Price will be subject to the
Reevaluation Process.\40\
---------------------------------------------------------------------------
\38\ See Exchange Rule 518(e).
\39\ Id.
\40\ Id.
---------------------------------------------------------------------------
The Reevaluation process occurs at the conclusion of a cLEP Auction
where the System will calculate the next potential MPC Price for
remaining liquidity with an original limit price more aggressive than
the existing MPC Price. The next MPC Price will be calculated as the
MPC Price plus (minus) the next MPC increment for buy (sell) orders
(the ``New MPC Price''). Liquidity with an original limit price equal
to or less aggressive than the New MPC Price is no longer subject to
the MPC price protection. Liquidity with an original limit price more
aggressive than the New MPC Price (or market order liquidity) is
subject to the MPC price protection feature using the New MPC Price. In
certain scenarios this could lead to a cycle of cLEP Auctions and ever
increasing MPC price protection prices.
The operation of the MIAX Strategy Price Protection feature during
a cLEP Auction can be seen in the following example.
Example
MPC: 0.25
The Exchange has one order (Order 1) resting on its Strategy Book:
+1 component A, -1 component B:
The current market is:
MBBO component A: 4.00 (10) x 6.00 (10)
MBBO component B: 1.00 (10) x 2.50 (10)
NBBO \41\ component A: 4.05 (10) x 4.15 (10)
---------------------------------------------------------------------------
\41\ The term ``NBBO'' means the national best bid or offer as
calculated by the Exchange based on market information received by
the Exchange from the appropriate Securities Information Processor
(``SIP''). See Exchange Rule 518(a)(14).
---------------------------------------------------------------------------
NBBO component B: 2.30 (10) x 2.40 (10)
[[Page 68700]]
cMBBO: \42\ 1.50 (10) x 5.00 (10)
---------------------------------------------------------------------------
\42\ The cMBBO is calculated using the MBBO for each component
of a complex strategy to establish the best net bid and offer for a
complex strategy on the Exchange.
---------------------------------------------------------------------------
cNBBO: 1.65 (10) x 1.85 (10)
The price protection is:
MSPPV: 2.50
Buy MSPPV: 1.85 + .2.50 = 4.35
Sell MSPPV: 1.65-2.50 =-.85
Order 1 to sell 10 at 1.90 is received and updates the cMBBO.
cMBBO: 1.50 (10) x 1.90 (10)
The Exchange receives a new order (Order 2) to buy 30 at the
Market. For Market Orders the functional limit is the MSPP or 4.35.
Order 2 buys 10 from Order 1 at $1.90 and initiates the Complex
Liquidity Exposure Process: Order 2 reprices to its MPC protected price
of $2.10 (cNBO of 1.85 + 0.25) and is posted at that price on the
Strategy Book and the cLEP Auction begins.
During the cLEP Auction the Exchange receives a new order (Order 3)
to sell 10 at 2.10. This order locks the current same side Book Price
of $2.10. At the end of the auction, Order 3 sells 10 to Order 2 at
$2.10, filling Order 3.
Order 2 reprices to the next MPC protected price of $2.35 (initial
MPC of 2.10 + 0.25) and is posted at that price on the Strategy Book
and the next cLEP Auction begins.
During the next cLEP Auction the Exchange does not receive any
interest to sell. At the end of the auction Order 2 is reevaluated and
reprices to the next MPC protected price of 2.60 (previous MPC of 2.35
+ 0.25) and is posted at that price on the Strategy Book and the next
cLEP Auction begins.
During all subsequent cLEP Auctions the Exchange does not receive
any interest to sell. At the end of each subsequent auction, Order 2 is
reevaluated and repriced to the next MPC protected price as seen below
until the MSPP protected price is equal to or less than the MPC
protected price.
3rd MPC evaluation 2.60 + 0.25 = 2.85
4th MPC evaluation 2.85 + 0.25 = 3.10
5th MPC evaluation 3.10 + 0.25 = 3.35
6th MPC evaluation 3.35 + 0.25 = 3.60
7th MPC evaluation 3.60 + 0.25 = 3.85
8th MPC evaluation 3.85 + 0.25 = 4.10
9th MPC evaluation 4.10 + 0.25 = 4.35
At the end of the final auction, because the MSPP protected price
of 4.35 is equal to the MPC protected price of 4.35, Order 2 is not
repriced to the next MPC and is cancelled subject to MSPP.
cMBBO: 4.35 (10) x 5.00 (10)
The Exchange proposes to amend Exchange Rule 518(e), Reevaluation,
to account for the introduction of a protected price in the cLEP
process. The proposed rule text will provide that, at the conclusion of
a cLEP Auction, the System will calculate the next potential MPC Price
for remaining liquidity with an original limit price or protected price
more aggressive than the existing MPC Price. The next MPC Price will be
calculated as the MPC Price plus (minus) the next MPC increment for buy
(sell) orders (the ``New MPC Price''). The System will initiate a cLEP
Auction for liquidity that would execute or post at a price that would
violate its New MPC Price. Liquidity with an original limit price or
protected price less aggressive (lower for a buy order or eQuote, or
higher for a sell order or eQuote) than or equal to the New MPC Price
will be posted to the Strategy Book at its original limit price or
handled in accordance with subsection (c)(2)(ii)-(v) of this Rule. The
cLEP process will continue until no liquidity remains with an original
limit price that is more aggressive than its MPC Price. At the
conclusion of the cLEP process, any liquidity that has not been
executed will be posted to the Strategy Book at its original limit
price.
The Exchange also proposes to amend Rule 518(e), Allocation at the
Conclusion of a Complex Liquidity Exposure Auction, to provide that
orders and quotes executed in a cLEP Auction will be allocated first in
price priority based upon their original limit price, orders subject to
MSPP are allocated using their protected price, and thereafter in
accordance with the Complex Auction allocation procedures described in
subsection (d)(7)(i)-(vi) of this Rule.
Parity Price Protection
The Exchange proposes to amend paragraph (g), Parity Price
Protection, of Interpretations and Policies .01 of Exchange Rule 518,
to provide that Married-Put and Buy-Write interest to sell (sell put
and sell stock; or sell call and buy stock) that is priced below the
parity protected price for the strategy will be placed on the Strategy
Book at the parity protected price for the strategy, or cancelled if
the Managed Protection Override is enabled. This provision allows the
Parity Price Protection functionality to operate in conjunction with
the Managed Protection Override feature which cancels an order when its
price protection feature is triggered. The Exchange believes that
offering Members the option to have orders either managed by the
Exchange or cancelled when a risk protection is triggered gives Members
greater flexibility and control over their orders while retaining the
risk protection functionality.
Miscellaneous
The Exchange proposes to rename paragraph (e), Wide Market
Conditions, SMAT Events and Halts, of Interpretations and Policies .05
of Exchange Rule 518, to new paragraph (a), as a result of the removal
of the preceding paragraphs (a), (b), (c), and (d) from Interpretations
and Policies .05 of Exchange Rule 518, which have been relocated to new
proposed Rule 532. Additionally, the Exchange proposes to make a number
of non-substantive changes in Rule 518 to correct internal cross
references that have changed as a result of this proposal.
The Exchange also proposes to amend the definition of ``Book'' in
Exchange Rule 100 by adding the clarifying term ``simple'' to the
current definition. The Exchange proposes to define the term ``Book''
to mean the electronic book of simple buy and sell orders and quotes
maintained by the System. When the Exchange introduced complex orders
the Exchange defined the ``Strategy Book'' \43\ as the Exchange's
electronic book of complex orders and complex quotes. Additionally, the
Exchange defined the ``Simple Order Book'' \44\ as the Exchange's
regular electronic book of orders and quotes in Rule 518. The Exchange
believes its proposal to amend the definition provided in Exchange Rule
100 adds clarity to the definition regarding which book of orders and
quotes is being referenced.
---------------------------------------------------------------------------
\43\ See Exchange Rule 518(a)(17).
\44\ See Exchange Rule 518(a)(15).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \45\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \46\ 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.
---------------------------------------------------------------------------
\45\ 15 U.S.C. 78f(b).
\46\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
[[Page 68701]]
Managed Protection Override
The Exchange believes that the Managed Protection Override feature
promotes just and equitable principles of trade, removes impediments to
and perfects the mechanisms of a free and open market and a national
market system and, in general, protects investors and the public
interest by providing a mechanism by which Members may determine the
way their orders are handled when a risk protection is triggered. The
Exchange believes that it has an effective way to manage orders on the
Exchange so that they do not execute at potentially erroneous prices,
however the Exchange believes that giving Members the option to have
their orders cancelled if a risk protection is triggered protects
investors and the public interest. Members can make a decision on what
to do with their order based on the then current market conditions and
may choose to re-submit the order at the same or different limit price.
Specifically, the Exchange believes the proposed change will remove
impediments to and perfect the mechanisms of a free and open market by
providing market participants with the option to either manage their
own orders or have the Exchange manage their orders when a price
protection is triggered which will promote fair and orderly markets,
increase overall market confidence, and promote the protection of
investors.
Max Put Price Protection
The Exchange believes that the Max Put Price Protection feature
promotes just and equitable principles of trade, removes impediments to
and perfects the mechanisms of a free and open market and a national
market system and, in general, protects investors and the public
interest by providing a risk protection mechanism to prevent trades
from occurring at potentially unwanted or erroneous prices.
Additionally, the Exchange believes that making this risk protection
feature eligible for the Managed Protection Override feature benefits
Members as it gives them the option to have their order cancelled if
the Max Put Price protection is triggered and the Managed Protection
Override feature is enabled. Cancelling orders back to Members allows
them to make a decision on what to do with their order based on the
then current market conditions and a Member may choose to re-submit the
order at the same or different limit price. Specifically, the Exchange
believes the proposed change will remove impediments to and perfect the
mechanism of a free and open market by providing market participants
with the option to either manage their own orders or have the Exchange
manage their orders when a price protection is triggered which will
promote fair and orderly markets, increase overall market confidence,
and promote the protection of investors.
Butterfly Spread Price Variance (``BSV'') Price Protection
The Exchange believes that the Butterfly Spread Price Variance
(``BSV'') Price Protection feature promotes just and equitable
principles of trade, removes impediments to and perfects the mechanisms
of a free and open market and a national market system and, in general,
protects investors and the public interest by providing a risk
protection mechanism that will establish minimum and maximum trading
values to prevent an order from trading at a potentially unwanted or
erroneous price.
Additionally, the Exchange believes that making the Butterfly
Spread Price Variance (``BSV'') Price Protection eligible for the
Managed Protection Override feature benefits Members as it gives them
the option to have their order cancelled if the Butterfly Spread Price
Variance Price Protection is triggered and the Managed Protection
Override feature is enabled. Cancelling orders back to Members allows
them to make a decision on what to do with their order based on the
then current market conditions and a Member may choose to re-submit the
order at the same or different limit price. Specifically, the Exchange
believes the proposed change will remove impediments to and perfect the
mechanism of a free and open market by providing market participants
with the option to either manage their own orders or have the Exchange
manage their orders when a price protection is triggered which will
promote fair and orderly markets, increase overall market confidence,
and promote the protection of investors.
Calendar Spread Variance (``CSV'') Price Protection
The Exchange believes that amending the Calendar Spread Price
Variance (``CSV'') Price Protection feature to enable the Managed
Protection Override feature promotes just and equitable principles of
trade, removes impediments to and perfects the mechanisms of a free and
open market and a national market system and, in general, protects
investors and the public interest by providing Members the option of
having the Exchange manage their order when a price protection is
triggered, or having their order cancelled when a price protection is
triggered, if the Managed Protection Override is enabled. The Exchange
believes cancelling an order in this scenario benefits Members as it
allows them to make a decision on what to do with their order based on
the then current market conditions and a Member may choose to re-submit
the order at the same or different limit price. Specifically, the
Exchange believes the proposed change will remove impediments to and
perfect the mechanism of a free and open market by providing market
participants with the option to either manage their own orders or have
the Exchange manage their orders when a price protection is triggered
which will promote fair and orderly markets, increase overall market
confidence, and promote the protection of investors.
The Exchange believes amending the rule text to clarify the
operation of the rule and to harmonize the rule text to that of the
Vertical Spread Variance (``VSV'') and Butterfly Spread Variance
(``BSV'') Price Protections promotes the protection of investors by
having similar rule text and similar behavior for similar price
protections which provides clarity and consistency within the
Exchange's rulebook. A clear and concise rulebook benefits investors
and the public interest as it reduces the chance for confusion
regarding the operation of price protection functionality.
Vertical Spread Variance (``VSV'') Price Protection
The Exchange believes that amending the Vertical Spread Price
Variance (``VSV'') Price Protection feature to enable the Managed
Protection Override feature promotes just and equitable principles of
trade, removes impediments to and perfects the mechanisms of a free and
open market and a national market system and, in general, protects
investors and the public interest by providing Members the option of
having the Exchange manage their order when a price protection is
triggered, or having their order cancelled, when a price protection is
triggered, if the Managed Protection Override is enabled. The Exchange
believes cancelling an order in this scenario benefits Members as it
allows them to make a decision on what to do with their order based on
the then current market conditions and a Member may choose to re-submit
the order at the same or different limit price. Specifically, the
Exchange believes the proposed change will remove impediments to and
perfect the mechanism of a free and open market by providing market
participants with the
[[Page 68702]]
option to either manage their own orders or have the Exchange manage
their orders when a price protection is triggered which will promote
fair and orderly markets, increase overall market confidence, and
promote the protection of investors.
The Exchange believes amending the rule text to clarify the
operation of the rule and to harmonize the rule text to that of the
Calendar Spread Variance (``CSV'') and Butterfly Spread Variance
(``BSV'') Price Protections promotes the protection of investors by
having similar rule text and similar behavior for similar price
protections which provides clarity and consistency within the
Exchange's rulebook. A clear and concise rulebook benefits investors
and the public interest as it reduces the chance for confusion
regarding the operation of price protection functionality.
MIAX Strategy Price Protection (``MSPP'')
The Exchange believes that the adoption of the MIAX Strategy Price
Protection (``MSPP'') promotes just and equitable principles of trade,
and facilitates transactions in securities, remove [sic] impediments to
and perfects the mechanisms of a free and open market and a national
market system and, in general, protects investors and the public
interest, by providing an order price protection that establishes a
minimum and maximum trading value to prevent potentially unwanted or
erroneous executions from occurring. The Exchange believes that when
the MSPP is priced less aggressively than the limit price of the
complex order that executing the order, up to an including its MSPP for
buy orders, or down to and including its MSPP for sell orders, and
cancelling any unexecuted portion of the order, protects investors and
the public interest. Cancelling orders back to Members allows them to
make a decision on what to do with their order based on the then
current market conditions and a Member may choose to re-submit the
order at the same or different limit price. Specifically, the Exchange
believes the proposed change will remove impediments to and perfect the
mechanism of a free and open market by providing market participants
with the option to either manage their own orders or have the Exchange
manage their orders when a price protection is triggered which will
promote fair and orderly markets, increase overall market confidence,
and promote the protection of investors.
Parity Price Protection
The Exchange believes that amending Interpretations and Policies
.01(g), Parity Price Protection, of Exchange Rule 518, to operate in
conjunction with the Managed Protection Override feature promotes just
and equitable principles of trade, and facilitates transactions in
securities, removes impediments to and perfects the mechanisms of a
free and open market and a national market system and, in general,
protects investors and the public interest, by providing Members
greater flexibility and control over their orders if the Parity Price
Protection is triggered. The Exchange believes that making this risk
protection feature eligible for the Managed Protection Override feature
benefits Members as it gives them the option to have their order
cancelled if the Parity Price Protection is triggered and the Managed
Protection Override feature is enabled. Cancelling orders back to
Members allows them to make a decision on what to do with their order
based on the then current market conditions and a Member may choose to
re-submit the order at the same or different limit price. Specifically,
the Exchange believes the proposed change will remove impediments to
and perfect the mechanism of a free and open market by providing market
participants with the option to either manage their own orders or have
the Exchange manage their orders when a price protection is triggered
which will promote fair and orderly markets, increase overall market
confidence, and promote the protection of investors.
Miscellaneous
The Exchange believes that amending the definition of ``Book''
promotes just and equitable principles of trade, fosters cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, removes impediments to and perfects the
mechanisms of a free and open market and a national market system and,
in general, protects investors and the public interest by providing a
clarifying term to the existing definition. In particular, the Exchange
believes that the proposed change 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.
The Exchange believes the proposed change to correct internal cross
references within the Exchange's Rulebook promotes just and equitable
principles of trade and removes impediments to and perfects the
mechanism of a free and open market and a national market system
because the proposal ensures that the Exchange's rules are accurate.
The Exchange notes that the proposed changes to correct internal cross
references and to make minor non-substantive edits does not alter the
application of each rule. As such, the proposed amendments would foster
cooperation and coordination with persons engaged in facilitating
transactions in securities and would remove impediments to and perfect
the mechanism of a free and open market and national exchange system.
In particular, the Exchange believes that 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.
The Exchange believes this proposal promotes just and equitable
principles of trade, removes impediments to and perfects the mechanisms
of a free and open market and a national market system and, in general,
protects investors and the public interest by providing new price
protection features for MIAX Members. Additionally, the description of
the System's functionality is designed to promote just and equitable
principles of trade by providing a clear and accurate description to
all participants of how the price protection process is applied and
should assist investors in making decisions concerning their orders.
Further, the Exchange believes that the price protection features and
functionality provides market participants with an appropriate level of
risk protection to their orders and contributes to the maintenance of a
fair and orderly market.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
Specifically, the Exchange does not believe that the proposed
changes will impose any burden on intra-market competition as the rules
of the Exchange apply equally to all MIAX participants. The price
protections are available for any MIAX Member that submits orders or
quotes to the Exchange. Any MIAX Member that submits a complex order to
the Exchange will benefit from the risk protections proposed herein.
Further any MIAX Member that seeks to buy or sell a put will be
afforded the MAX Put
[[Page 68703]]
Price protection. Additionally, any Member may elect to enable the
Managed Protection Override feature to allow the Exchange to cancel
their orders when a risk protection is triggered.
In addition, the Exchange does not believe the proposal will impose
any burden on inter-market competition as the proposal is intended to
protect investors by providing additional price protection
functionality and further enhancements and transparency to the
Exchange's risk protections. The Exchange's proposal may promote inter-
market competition as the Exchange's proposal adds additional price
protection features and functionality that may attract additional order
flow to the Exchange, thereby promoting inter-market competition.
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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
A. By order approve or disapprove such proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be 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#790b0c151c541a1614141c170d0a390a1c1a571e160f"><span class="__cf_email__" data-cfemail="abd9dec7ce86c8c4c6c6cec5dfd8ebd8cec885ccc4dd">[email protected]</span></a>. Please include
File Number SR-MIAX-2021-58 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-2021-58. 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-2021-58, and should be submitted on
or before December 27, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\47\
---------------------------------------------------------------------------
\47\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26241 Filed 12-2-21; 8:45 am]
BILLING CODE 8011-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.