Notice2023-03058
Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 531, Reports and Market Data Products, To Provide for the New “Liquidity Taker Event Report-Resting Simple Orders”
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 14, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 30 (Tuesday, February 14, 2023)</title>
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[Federal Register Volume 88, Number 30 (Tuesday, February 14, 2023)]
[Notices]
[Pages 9550-9555]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-03058]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96839; File No. SR-MIAX-2023-02]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Exchange Rule 531, Reports and Market
Data Products, To Provide for the New ``Liquidity Taker Event Report--
Resting Simple Orders''
February 8, 2023.
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 January 25, 2023, Miami International
Securities Exchange, LLC (``MIAX Options'' or the ``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 Exchange Rule 531 to
provide for the new ``Liquidity Taker Event Report--Resting Simple
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 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.
[[Page 9551]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Exchange Rule 531 to provide for the
new ``Liquidity Taker Event Report--Resting Simple Orders'' (the
``Report'').\3\ The proposed Report will be an optional product \4\
available to Members.\5\ Currently, the Exchange provides two types of
Liquidity Taker Event Reports, one including information about incoming
orders seeking to remove liquidity from the Simple Order Book \6\
described under Exchange Rule 531(a), and a second including the same
information but about incoming Complex Orders that seek to remove
Complex Orders resting on the Strategy Book \7\ described under
Exchange Rule 531(b). Both of these existing reports provide data for
executions and contra-side responses that occurred within 200
microseconds of the time the resting order was received by the
Exchange. But for the modified timeframe and one difference described
below, the proposed Report would include the same data as the Liquidity
Taker Event Report for Simple Orders but would focus on executions and
contra-side responses that occurred after 200 microseconds of the time
the resting order was received by the Exchange and within 200
microseconds of receipt of the first attempt to execute against the
resting order after the initial 200 microsecond time period has expired
as described further below.
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\3\ The proposed rule change is identical to proposal to adopt
the same report by the Exchange's affiliate, MIAX Emerald, LLC
recently filed with the Commission for immediate effectiveness. See
SR-EMERALD-2023-02 (filed January 18, 2023).
\4\ The Exchange intends to submit a separate filing with the
Commission pursuant to section 19(b)(1) to propose fees for the
Liquidity Taker Event Report--Resting Simple Orders.
\5\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
\6\ The term ``Simple Order Book'' means ``the Exchange's
regular electronic book of orders and quotes.'' See Exchange Rule
518(a)(15).
\7\ The term ``Complex Strategy'' means ``a particular
combination of components and their ratios to one another. New
complex strategies can be created as the result of the receipt of a
complex order or by the Exchange for a complex strategy that is not
currently in the System.'' See Exchange Rule 518(a)(6). The term
``Strategy Book'' means the Exchange's electronic book of complex
orders and complex quotes. See Exchange Rule 518(a)(17). The
Strategy Book is organized by Complex Strategy in that individual
orders for a defined Complex Strategy are organized together in a
book that is separate from the orders for a different Complex
Strategy.
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Like for the existing reports, the Exchange believes the additional
data points from the matching engine outlined below for the proposed
Report may also help Members gain a better understanding about their
interactions with the Exchange. The Exchange believes the proposed
Report will provide Members with an opportunity to learn more about
better opportunities to access liquidity and receive better execution
rates. The proposed Report will increase transparency and democratize
information so that all firms that subscribe to the Report have access
to the same information on an equal basis, even for firms that do not
have the appropriate resources to generate a similar report regarding
interactions with the Exchange. Like the existing reports, none of the
components of the proposed Report include real-time market data.
Members generally would use a liquidity accessing order if there is
a high probability that it will execute against an order resting on the
Simple Order Book. Like the existing reports, the proposed Report would
identify by how much time an order that may have been marketable missed
an execution but would focus on a later timeframe than the existing
reports. The proposed Report will provide greater visibility into the
missed trading execution, which will allow Members to optimize their
models and trading patterns to yield better execution results.
Like the existing reports, the proposed Report will be a Member-
specific report and will help Members to better understand by how much
time a particular order missed executing against a specific resting
order, thus allowing that Member to determine whether it wants to
invest in the necessary resources and technology to mitigate missed
executions against certain resting orders on the Simple Order Book.
Like the existing reports, the Exchange proposes to provide the Report
on a T+1 basis. As further described below, the proposed Report will be
specific and tailored to the Member that is subscribed to the Report
and any data included in the Report that relates to a Member other than
the Member receiving the Report will be anonymized.
The Exchange proposes to provide the proposed Report in response to
additional Member demand for data concerning the timeliness of their
incoming orders and executions against certain resting orders that have
been resting on the Simple Order Book for at least 200 microseconds and
within 200 microseconds of receipt of the first attempt to execute
against the resting order after the initial 200 microsecond time period
has expired. Certain Members that subscribe to the existing reports
have requested the same information as the Simple Order report but for
the later timeframe described herein so that they can better understand
the timeliness of their incoming orders and efficacy of their attempts
to execute against resting liquidity on the Exchange's Simple Order
Book. The purpose of the proposed Report is to provide Members the
necessary data in a standardized format on a T+1 basis to those that
subscribe to the Report on an equal basis.
Proposed Exchange Rule 531(c) would provide that the Report is a
daily report that provides a Member (``Recipient Member'') with its
liquidity response time details for executions of an order resting on
the Book, where that Recipient Member attempted to execute against such
resting order within an extended timeframe that meets certain criteria
described below.\8\
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\8\ The Exchange proposes to renumber current Exchange Rule
531(c), Market Data Products, as Exchange Rule 531(d). The Exchange
does not propose to amend the rule text of this rule.
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Report Content
The content of the proposed Report is basically identical to that
of the existing Liquidity Taker Event Report for Simple Orders
described under Exchange Rule 531(a) with two differences. The first
difference is the timeframe of the proposed Report mentioned above and
described in more detail below. The second difference is that, unlike
the existing Liquidity Taker Event Report for Simple Orders, the
proposed Report would not include the time difference between the time
the resting order was received by the Exchange and the time the first
response that executes against the resting order was received by the
Exchange. Each of these differences are described below. All other
aspects of the proposed Report are identical to the existing Liquidity
Taker Event Report for Simple Orders described under Exchange Rule
531(a).
Like current paragraph (a)(1) of Exchange Rule 531 for the existing
Liquidity Taker Event Report for Simple Orders, proposed paragraph
(c)(1) of Rule 531 would describe the content of the proposed Report
and delineate which information would be provided regarding the resting
order,\9\ the response that successfully executed against the resting
order, and the
[[Page 9552]]
response submitted by the Recipient Member that missed executing
against the resting order. It is important to note that the content of
the Report will be specific to the Recipient Member and the Report will
not include any information related to any Member other than the
Recipient Member, other than certain information about the resting
order described below. The Exchange will restrict all other market
participants, including the Recipient Member, from receiving another
market participant's data.
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\9\ Only displayed orders will be included in the Report. The
Exchange notes that it does not currently offer any non-displayed
orders types on its options trading platform.
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Resting Order Information. Like current paragraph (a)(1)(i) of
Exchange Rule 531 for the existing Liquidity Taker Event Report for
Simple Orders, proposed Exchange Rule 531(c)(1)(i) would provide that
the following information would be included in the Report regarding the
resting order: (A) the time the resting order was received by the
Exchange; \10\ (B) symbol; (C) order reference number, which is a
unique reference number assigned to a new order at the time of receipt;
(D) whether the Recipient Member is an Affiliate \11\ of the Member
that entered the resting order; \12\ (E) origin type (e.g., Priority
Customer,\13\ Market Maker \14\); (F) side (buy or sell); and (G)
displayed price and size of the resting order.\15\
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\10\ The time the Exchange received the resting order would be
in nanoseconds and is the time the resting order was received by the
Exchange's System.
\11\ The term ``affiliate'' of or person ``affiliated with''
another person means a person who, directly, or indirectly,
controls, is controlled by, or is under common control with, such
other person. See Exchange Rule 100.
\12\ The Report will simply indicate whether the Recipient
Member is an Affiliate of the Member that entered the resting order
and not include any other information that may indicate the identity
of the Member that entered the resting order.
\13\ The term ``Priority Customer'' means a person or entity
that (i) is not a broker or dealer in securities, and (ii) does not
place more than 390 orders in listed options per day on average
during a calendar month for its own beneficial account(s). The
number of orders shall be counted in accordance with Interpretation
and Policy .01 to Exchange Rule 100. See Exchange Rule 100.
\14\ The term ``Market Maker'' refers to ``Lead Market Makers'',
``Primary Lead Market Makers'' and ``Registered Market Makers''
collectively. See Exchange Rule 100.
\15\ The Exchange notes that the displayed price and size are
also disseminated via the Exchange's proprietary data feeds and the
Options Price Reporting Authority (``OPRA''). The Exchange also
notes that the displayed price of the resting order may be different
than the ultimate execution price. This may occur when a resting
order is displayed and ranked at different prices upon entry to
avoid a locked or crossed market.
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Execution Information. Like current paragraph (a)(1)(ii) of
Exchange Rule 531 for the existing Liquidity Taker Event Report for
Simple Orders, proposed Exchange Rule 531(c)(1)(ii) would provide that
the following information would be included in the Report regarding the
execution of the resting order: (A) the MBBO \16\ at the time of
execution; \17\ (B) the ABBO \18\ at the time of execution; \19\ (C)
the time first response that executes against the resting order was
received by the Exchange and the size of the execution and type of the
response; \20\ and (D) whether the response was entered by the
Recipient Member. If the resting order executes against multiple
contra-side responses, only the MBBO and ABBO at the time of the
execution against the first response will be included.
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\16\ The term ``MBBO'' means the best bid or offer on the
Exchange. See Exchange Rule 100.
\17\ Exchange Rule 531(c)(1)(ii)(A) would further provide that
if the resting order executes against multiple contra-side
responses, only the MBBO at the time of the execution against the
first response will be included.
\18\ The term ``ABBO'' or ``Away Best Bid or Offer'' means the
best bid(s) or offer(s) disseminated by other Eligible Exchanges
(defined in Exchange Rule 1400(g)) and calculated by the Exchange
based on market information received by the Exchange from OPRA. See
Exchange Rule 100.
\19\ Exchange Rule 531(c)(1)(ii)(B) would further provide that
if the resting order executes against multiple contra-side
responses, only the ABBO at the time of the execution against the
first response will be included.
\20\ The time the Exchange received the response order would be
in nanoseconds and would be the time the response was received by
the Exchange's network, which is before the time the response would
be received by the System.
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Exchange Rule 531(a)(1)(ii)(D) provides that the existing Liquidity
Taker Event Report for Simple Orders also includes the time difference
between the time the resting order was received by the Exchange and the
time the first response that executes against the resting order was
received by the Exchange. The proposed Report would not include the
same information because that timeframe could be for an extended period
of time since the proposed Report focuses on orders that have been
resting on the Simple Order Book for longer than 200 microseconds and,
therefore, the Exchange believes is less likely to be valuable to the
Recipient Member.
Recipient Member's Response Information. Like current paragraph
(a)(1)(iii) of Exchange Rule 531 for the existing Liquidity Taker Event
Report for Simple Orders, proposed Rule 531(c)(1)(iii) would provide
that the following information would be included in the Report
regarding response(s) sent by the Recipient Member: (A) Recipient
Member identifier; (B) the time difference between the time the first
response that executes against the resting order was received by the
Exchange and the time of each response sent by the Recipient Member,
regardless of whether it executed or not; \21\ (C) size and type of
each response submitted by Recipient Member; and (D) response reference
number, which is a unique reference number attached to the response by
the Recipient Member.
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\21\ For purposes of calculating this duration of time, the
Exchange will use the time the resting order and the Recipient
Member's response(s) is received by the Exchange's network, both of
which would be before the order and response(s) would be received by
the System. This time difference would be provided in nanoseconds.
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Timeframe for Data Included in Report
The timeframe covered by the proposed Report is the primary
difference between it and the existing Liquidity Taker Event Report for
Simple Orders. The existing Liquidity Taker Event Report for Simple
Orders provides data for executions and contra-side responses that
occurred within 200 microseconds of the time the resting order was
received by the Exchange. Meanwhile, the proposed Report would include
the same data as the Liquidity Taker Event Report for Simple Orders but
would focus on executions and contra-side responses that occurred after
200 microseconds of the time the resting order was received by the
Exchange, and within 200 microseconds of receipt of any Member's first
attempt to execute against the resting order after the initial 200
microsecond time period has expired. More specifically, the resting
order must rest on the Simple Order Book for at least 200 microseconds
and once that initial 200 microsecond period has passed, a Member must
then submits an order to attempt to execute against that resting order.
This event starts a second 200 microsecond period within which the
proposed Report would include data on executions and contra-side
responses submitted by the Recipient Member to execute against that
resting order.
For example, Member A submits an order that is posted to the Simple
Order Book. 200 microseconds passes and Member A's order remains posted
to the Simple Order Book. Then Member B enters a marketable order to
execute against Member A's resting order, starting the second 200
microsecond window. Within this next 200 microsecond window, Member C
sends a marketable order to execute against Member A's resting Order.
Because Member B's order is received by the Exchange before Member C's
order, Member B's order executes against Member A's resting order. The
proposed Report would provide Member C the data points necessary for
that firm to calculate by how much time they
[[Page 9553]]
missed executing against Member A's resting order.
The above timeframe would be codified under proposed paragraph
(c)(2) of Rule 531 which would provide that the proposed Report would
include the data set forth under Rule 531(c)(1) described above for
executions and contra-side responses that occurred (i) after 200
microseconds of the time the resting order was received by the Exchange
and (ii) within 200 microseconds of receipt of the first attempt to
execute against the resting order after the initial 200 microsecond
time period under (c)(2)(i) of this paragraph has expired.
Scope of Data Included in the Report
Like current paragraph (a)(3) of Exchange Rule 531 for the existing
Liquidity Taker Event Report for Simple Orders, proposed paragraph
(c)(3) of Exchange Rule 531 would provide that the proposed Report will
only include trading data related to the Recipient Member and, subject
to the proposed paragraph (4) of Rule 531(c) described below, will not
include any other Member's trading data other than that listed in
paragraphs (1)(i) and (ii) of Exchange Rule 531(c) described above.
Historical Data
Like current paragraph (a)(4) of Exchange Rule 531 for the existing
Liquidity Taker Event Report for Simple Orders, proposed paragraph
(c)(4) of Rule 531 would specify that the proposed Report will contain
historical data from the prior trading day and will be available after
the end of the trading day, generally on a T+1 basis.
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.\22\ Specifically, the Exchange believes the proposed rule change
is consistent with the section 6(b)(5) \23\ 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.
This proposal is in keeping with those principles in that it promotes
increased transparency through the dissemination of the optional Report
to those interested in subscribing to receive the data. Additionally,
the Exchange believes the proposed rule change is consistent with the
section 6(b)(5) \24\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\22\ 15 U.S.C. 78f(b).
\23\ 15 U.S.C. 78f(b)(5).
\24\ Id.
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The timeframe covered by the proposed Report is the primary
difference between it and the existing Liquidity Taker Event Report for
Simple Orders. However, this difference only pertains to the timeframe
covered by each report, with each report containing the exact same data
fields with one exception described here. The existing Liquidity Taker
Event Report for Simple Orders provides data for executions and contra-
side responses that occurred within 200 microseconds of the time the
resting order was received by the Exchange. Meanwhile, the proposed
Report would basically include the same data as the Liquidity Taker
Event Report for Simple Orders but would focus on executions and
contra-side responses that occurred after 200 microseconds of the time
the resting order was received by the Exchange and one additional
difference. The one difference is that unlike the existing Liquidity
Taker Event Report for Simple Orders, the proposed Report would not
include the time difference between the time the resting order and
first response that executes against the resting order are received by
the Exchange. Each report focuses on 200 microsecond windows with the
existing Report's window starting at the time of receipt of the resting
order and the proposed Report's window starting with the first attempt
to execute against the resting order after the order was resting on the
Simple Order Book for at least 200 microseconds.
The Exchange believes the proposed Report will serve to 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
because it will benefit investors by facilitating their prompt access
to the value added information that is included in the proposed Report.
The proposed Report will allow Members to access information regarding
their trading activity that they may utilize to evaluate their own
trading behavior and order interactions.
Like the existing Liquidity Taker Event Report for Simple Orders,
the proposed Report is designed for Members that are interested in
gaining insight into latency in connection with orders that failed to
execute against an order resting on the Exchange's Simple Order Book by
providing those Members data to analyze by how much time their order
may have missed an execution against a contra-side order resting on the
Book. The Exchange believes that providing this optional latency data
to interested Members is consistent with facilitating transactions in
securities, removing impediments to and perfecting the mechanism of a
free and open market and a national market system, and, in general,
protecting investors and the public interest because it provides
greater visibility into the latency of Members' incoming orders.
Members may use this data to optimize their models and trading patterns
in an effort to yield better execution results by calculating by how
much time their order may have missed an execution.
Like the existing Liquidity Taker Event Report for Simple Orders,
the proposed Report is designed to offer latency information in a
systematized way and standardized format to any Member that chooses to
subscribe to the proposed Report. As a result, the proposal will make
latency information for liquidity-seeking orders available in an
equalized manner and will increase transparency, particularly for
Recipient Members that may not have the expertise to generate the same
information on their own. The proposed Report may better enable
Recipient Members to increase the fill rates for their liquidity-
seeking orders. At the same time, as is also discussed above, the
Report is designed to prevent a Recipient Member from learning other
Members' sensitive trading information. The Report would not be a real-
time market data product, as it would provide only historical trading
data for the previous trading day, generally on a T+1 basis. In
addition, the data in the Report regarding incoming orders that failed
to execute would be specific to the Recipient Member's orders, and
other information in the proposed Report regarding resting orders and
executions would be anonymized if it relates to a Member other than the
Recipient Member.
The proposed Report generally contains three buckets of
information, each of which are identical to the same buckets of
information contained in the existing Liquidity Taker Event Report
[[Page 9554]]
for Simple Orders, with one exception discussed herein and again below.
The first two buckets include information about the resting order and
the execution of the resting order. This information is generally
available from other public sources, such as OPRA and the Exchange's
proprietary data feeds, or is similar to information included in a
report offered by another exchange. For example, OPRA provides bids,
offers, and consolidated last sale and quotation information for
options trading on all national securities exchanges, including the
Exchange. In addition, the Exchange offers the Top of Market (``ToM'')
feed which provides real-time quote and last sale information for all
displayed orders on the Book.\25\
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\25\ See section 6)a) of the Exchange's fee schedule.
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Specifically, the first bucket of information contained in the
Report for the resting order includes the time the resting order was
received by the Exchange, the symbol, unique reference number assigned
at the time of receipt, side (buy or sell), and the displayed price and
size of the resting order. Further, the symbol, origin type, side (buy
or sell), and displayed price and size are also available either via
OPRA or the Exchange's proprietary data feeds. The first bucket of
information also indicates whether the Recipient Member is an Affiliate
of the Member that entered the resting order. This data field will not
indicate the identity of the Member that entered the resting order and
would simply allow the Recipient Member to better understand the
scenarios in which it may execute against the orders of its
Affiliates.\26\
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\26\ The Exchange's surveils to monitor for abhorrent behavior
related to internalized trades and identify potential wash sales.
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The second bucket of information contained in the Report regards
the execution of the resting order and includes the MBBO and ABBO at
the time of execution. These data points are also available either via
OPRA or the Exchange's proprietary data feeds. The second bucket of
information will also indicate whether the response was entered by the
Recipient Member. This data point is simply provided as a convenience.
If not entered by the Recipient Member, this data point will be left
blank so as not to include any identifying information about other
Member activity. The second bucket of information also includes the
size, as well as the time and type of first response that executes
against the resting order. These data points would assist the Recipient
Member in analyzing by how much time their order may have missed an
execution against a contra-side order resting on the Book. Unlike the
existing Liquidity Taker Event Report for Simple Orders, the proposed
Report would not include the time difference between the time the
resting order and first response that executes against the resting
order are received by the Exchange. The proposed Report would not
include this data point because the Exchange understands Recipient
Members may not find it useful due to the fact that the proposed Report
focuses on orders that have been resting on the Simple Order Book for
longer than 200 microseconds. Therefore, the Exchange does not propose
to include this data point as a means to streamline the proposed Report
and remove unnecessary data.
The third bucket of information is about the Recipient Member's
response(s) and the time their response(s) is received by the Exchange.
This includes the time difference between the time the first response
that executes against the resting order was received by the Exchange
and the time of each response sent by the Recipient Member, regardless
of whether it executed or not. As above, this data point would assist
the Recipient Member in analyzing by how much time their order may have
missed an execution against a contra-side order resting on the Book.
This bucket would also include the size and type of each response
submitted by the Recipient Member, the Recipient Member identifier, and
a response reference number which is selected by the Recipient Member.
Each of these data points are unique to the Recipient Member and should
already be known by Recipient Member even if not included in the
Report.
Like the existing Liquidity Taker Event Report for Simple Orders,
the Exchange proposes to provide the Report on a voluntary basis and no
Member will be required to subscribe to the Report. The Exchange notes
that there is no rule or regulation that requires the Exchange to
produce, or that a Member elect to receive, the Report. It is entirely
a business decision of each Member to subscribe to the Report. The
Exchange proposes to offer the Report as a convenience to Members to
provide them with additional information regarding trading activity on
the Exchange on a delayed basis after the close of regular trading
hours. A Member that chooses to subscribe to the Report may discontinue
receiving the Report at any time if that Member determines that the
information contained in the Report is no longer useful.
In summary, the proposed Report will help to protect a free and
open market by providing additional data (offered on an optional basis)
to the marketplace and by providing investors with greater choices.\27\
Additionally, the proposal would not permit unfair discrimination
because the proposed Report will be available to all Exchange Members.
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\27\ See Sec. Indus. Fin. Mkts. Ass'n (SIFMA), Initial Decision
Release No. 1015, 2016 SEC LEXIS 2278 (ALJ June 1, 2016) (finding
the existence of vigorous competition with respect to non-core
market data).
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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
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended. The
Exchange believes that the proposed Report will enhance competition
\28\ by providing a new option for receiving market data to Members.
The proposed Report will also further enhance competition between
exchanges by allowing the Exchange to expand its product offerings to
include an additional report to provide latency information requested
by Members.
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\28\ Id.
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In this instance, the proposed rule change to offer the optional
Report is in response to Member interest and requests for such
information, including from some Members that subscribe to the existing
Liquidity Taker Event Report for Simple Orders. The Exchange does not
believe the proposed Report will have an inappropriate burden on intra-
market competition between Recipient Members and other Members who do
not receive the Report. As discussed above, the first two buckets of
information included in the Report contain information about the
resting order and the execution of the resting order, both of which are
generally available to Members that choose not to receive the Report
from other public sources, such as OPRA and the Exchange's proprietary
data feeds. The third bucket of information is about the Recipient
Member's response and the time their response is received by the
Exchange, information which the Recipient Member would be able to
obtain without receiving the Report. Additionally, some Members may
already be able to derive a substantial amount of the same data that is
provided by some of the components based on their own executions and
algorithms.
In sum, if the proposed Report is unattractive to Members, Members
will opt not to receive it. Accordingly, the
[[Page 9555]]
Exchange does not believe that the proposed change will impair the
ability of Members or competing order execution venues to maintain
their competitive standing in the financial markets.
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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \29\ and Rule 19b-4(f)(6) \30\
thereunder.
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\29\ 15 U.S.C. 78s(b)(3)(A).
\30\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#f486819891d9979b9999919a8087b4879197da939b82"><span class="__cf_email__" data-cfemail="5220273e377f313d3f3f373c2621122137317c353d24">[email protected]</span></a>. Please include
File Number SR-MIAX-2023-02 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-2023-02. 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-2023-02, and should be submitted on
or before March 7, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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\31\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-03058 Filed 2-13-23; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on February 14, 2023.
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.