Notice2022-00773
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Pearl Options Fee Schedule
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
January 18, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 11 (Tuesday, January 18, 2022)</title>
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[Federal Register Volume 87, Number 11 (Tuesday, January 18, 2022)]
[Notices]
[Pages 2653-2655]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00773]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93951; File No. SR-PEARL-2021-60]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX
Pearl Options Fee Schedule
January 11, 2022.
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 December 29, 2021, MIAX PEARL, LLC (``MIAX
Pearl'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') a proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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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 Pearl Options
Fee Schedule (the ``Fee Schedule'') to reflect adjustments to the
Financial Industry Regulatory Authority (``FINRA'') Registration
Fees.\3\
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\3\ See Fee Schedule, Section 2)c).
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While the changes proposed herein are effective upon filing, the
Exchange has designated the amendments to become operative on January
2, 2022.\4\
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\4\ See Securities Exchange Act Release No. 90176 (October 14,
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Adjust FINRA Fees to Provide Sustainable Funding for FINRA's
Regulatory Mission).
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The text of the proposed rule change is available on the Exchange's
website at <a href="http://www.miaxoptions.com/rule-filings/pearl">http://www.miaxoptions.com/rule-filings/pearl</a> at MIAX
Pearl's principal office, and at the Commission's Public Reference
Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Section 2)c) of the Fee Schedule,
Web CRD Fees, to reflect adjustments to the FINRA Registration Fees.\5\
The FINRA fees are collected and retained by FINRA via Web Central
Registration Depository (``CRD'') for the registration of associated
persons of MIAX Pearl Electronic Exchange Member \6\ and Market Maker
\7\ organizations that are not also FINRA members (``Non-FINRA
members'').\8\ The Exchange merely lists these fees in its Fee
Schedule. The Exchange does not collect or retain these fees.
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\5\ Id.
\6\ ``Electronic Exchange Member'' means the holder of a Trading
Permit who is a Member representing as agent Public Customer Orders
or Non-Customer Orders on the Exchange and those non-Market Maker
Members conducting proprietary trading. Electronic Exchange Members
are deemed ``members'' under the Exchange Act. See Exchange Rule
100.
\7\ ``Market Makers'' means a Member registered with the
Exchange for the purpose of making markets in options contracts
traded on the Exchange and that is vested with the rights and
responsibilities specified in Chapter VI of these Rules. See
Exchange Rule 100.
\8\ See Securities Exchange Act Release No. 80061 (February 17,
2017), 82 FR 11676 (February 24, 2017) (SR-PEARL-2017-10).
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Since February 13, 2017, FINRA has assessed, and the Exchange has
listed in its Fee Schedule, a $100 fee for the FINRA CRD processing
fee.\9\ This fee is for all initial, transfer, relicense, and dual
registration Form U4 filings.\10\ This fee is assessed when a non-FINRA
firm (i.e., a firm that is not a member of FINRA) submits its first
initial, transfer, relicense, or dual registration Form U4 filing on
behalf of a registered person.\11\
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\9\ See id.
\10\ Id.
\11\ Id.
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The Exchange now proposes to amend, under the General Registration
Fees in Section 2)c) of the Fee Schedule, the FINRA CRD Processing Fee
from $100 to $125 for each initial Form U4 filed for the registration
of a representative or principal. This amendment is made in accordance
with a recent FINRA rule change to adjust its fees.\12\
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\12\ Id. FINRA operates Web CRD, the central licensing and
registration system for the U.S. securities industry. FINRA uses Web
CRD to maintain the qualification, employment and disciplinary
histories of registered associated persons of broker-dealers. FINRA
noted in its rule change that it was adjusting its fees to provide
sustainable funding for FINRA's regulatory mission.
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[[Page 2654]]
The FINRA fees are collected and retained by FINRA via Web CRD for
the registration of employees of the Exchange who are Non-FINRA
members. The FINRA Web CRD Fees are user-based, and there is no
distinction in the cost incurred by FINRA if the user is a FINRA member
or a Non-FINRA member. Accordingly, the proposed fees mirror those
currently assessed by FINRA. The Exchange merely lists these fees in
its Fee Schedule. The Exchange does not collect or retain these fees.
Implementation
The proposed rule change will become operative on January 2, 2022.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\13\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \14\ requirements that the rules
of an exchange be 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 mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \15\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\13\ 15 U.S.C. 78f(b).
\14\ 15 U.S.C. 78f(b)(5).
\15\ Id.
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The Exchange believes it is reasonable to increase the $100 fee for
each initial Form U4 filed for the registration of a representative or
principal to $125 in accordance with an adjustment to FINRA's fees. The
Exchange's rule text will reflect the current registration rate that
will be assessed by FINRA as of January 2, 2022. The proposed fee
change is identical to that adopted by FINRA for use of Web CRD for the
registration of FINRA members and their associated persons. These costs
are borne by FINRA when a Non-FINRA member uses Web CRD.
The Exchange believes that its proposal to increase the $100 fee
for each initial Form U4 filed for the registration of a representative
or principal to $125 is equitable and not unfairly discriminatory as
the amendment will reflect the current fee that will be assessed by
FINRA to all members who require Form U4 filings as of January 2, 2022.
Further, the proposal is also equitable and not unfairly discriminatory
because the Exchange will not be collecting or retaining these fees;
therefore, the Exchange will not be in a position to apply them in an
inequitable or unfairly discriminatory manner. The proposed rule change
was based on recent fee adjustments currently assessed by FINRA.\16\
Thus, the proposed change does not raise any new or novel issues. For
these reasons, the Exchange believes that the proposal is consistent
with the Act.
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\16\ See supra note 4.
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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. The Exchange believes that
its proposal to increase the $100 fee for each initial Form U4 filed
for the registration of a representative or principal to $125 does not
impose an undue burden on competition as the amendment will reflect the
current fee that will be assessed by FINRA to all members who require
Form U4 filings as of January 2, 2022. Further, the proposal does not
impose an undue burden on competition because the Exchange will not be
collecting or retaining these fees; therefore, the Exchange will not be
in a position to apply them in an inequitable or unfairly
discriminatory manner.
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,\17\ and Rule 19b-4(f)(2) \18\ 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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\17\ 15 U.S.C. 78s(b)(3)(A)(ii).
\18\ 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#f587809990d8969a9898909b8186b5869096db929a83"><span class="__cf_email__" data-cfemail="fc8e899099d19f9391919992888fbc8f999fd29b938a">[email protected]</span></a>. Please include
File Number SR-PEARL-2021-60 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Vanessa Countryman,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-PEARL-2021-60. 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; the Commission does not edit
personal
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identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-PEARL-2021-60 and should be submitted on
or before February 8, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-00773 Filed 1-14-22; 8:45 am]
BILLING CODE 8011-01-P
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