Notice2023-05688
Self-Regulatory Organizations: Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Non-Substantively Amend the MIAX Fee Schedule
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Published
March 21, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 54 (Tuesday, March 21, 2023)</title>
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[Federal Register Volume 88, Number 54 (Tuesday, March 21, 2023)]
[Notices]
[Pages 17077-17079]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-05688]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97149; File No. SR-MIAX-2023-11]
Self-Regulatory Organizations: Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Non-Substantively Amend the MIAX Fee Schedule
March 15, 2023.
Pursuant to the provisions of Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4thereunder,\2\ notice
is hereby given that on March 3, 2023, Miami International Securities
Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') a proposed rule change as
described in Items I and II below, which Items have been prepared by
the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing a proposal to amend the MIAX Fee Schedule
(``Fee Schedule'') to make minor, non-substantive clarifying changes.
The text of the proposed rule change is available on the Exchange's
website at <a href="http://www.miaxoptions.com/rule-filings">http://www.miaxoptions.com/rule-filings</a>, at MIAX's principal
office, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule to make minor, non-
substantive clarifying changes. Specifically, the Exchange proposes to
amend instances of the phrases ``MIAX Select Symbols'' and ``non-MIAX
Select Symbols'' in Section 1)a)iii) of the Fee Schedule to clarify
that the terms ``Select Symbols'' and ``non-MIAX Select Symbols'' refer
to options listed on MIAX.
Background
The Exchange initially created the list of Select Symbols on March
1, 2014,\3\ and has added, removed and amended symbol names of option
classes from that list since that time.\4\ Select Symbols are rebated
slightly higher in certain Priority Customer Rebate Program (``PCRP'')
\5\ tiers and segments than non-Select Symbols. Currently, the term
``MIAX Select Symbols'' means options overlying AAL, AAPL, AMAT, AMD,
AMZN, BA, BABA, BB, BIDU, BP, C, CAT, CLF, CVX, DAL, EBAY, EEM, FCX,
GE, GILD, GLD, GM, GOOGL, GPRO, HAL, INTC, IWM, JNJ, JPM, KMI, KO,
META, MO, MRK, NFLX, NOK, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, SPY, T,
TSLA, USO, VALE, WBA, WFC, WMB, X, XHB, XLE, XLF, XLP, XOM and XOP.\6\
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\3\ See Securities Exchange Act Release No. 71700 (March 12,
2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
\4\ See, e.g., Securities Exchange Act Release Nos. 89530
(August 12, 2020), 85 FR 50845 (August 18, 2020) (SR-MIAX-2020-26);
88850 (May 11, 2020), 85 FR 29497 (May 15, 2020) (SR-MIAX-2020-09);
87964 (January 14, 2020), 85 FR 3435 (January 21, 2020) (SR-MIAX-
2020-01); 87790 (December 18, 2019), 84 FR 71037 (December 26, 2019)
(SR-MIAX-2019-49); 85314 (March 14, 2019), 84 FR 10359 (March 20,
2019) (SR-MIAX-2019-07; 81998 (November 2, 2017), 82 FR 51897
(November 8, 2017) (SR-MIAX-2017-45); 81019 (June 26, 2017), 82 FR
29962 (June 30, 2017) (SR-MIAX-2017-29); 79301 (November 14, 2016),
81 FR 81854 (November 18, 2016) (SR-MIAX-2016-42); 74291 (February
18, 2015), 80 FR 9841 (February 24, 2015) (SR-MIAX-2015-09); 74288
(February 18, 2015), 80 FR 9837 (February 24, 2015) (SR-MIAX-2015-
08); 73328 (October 9, 2014), 79 FR 62230 (October 16, 2014) (SR-
MIAX-2014-50); 72567 (July 8, 2014), 79 FR 40818 (July 14, 2014)
(SR-MIAX-2014-34); 72356 (June 10, 2014), 79 FR 34384 (June 16,
2014) (SR-MIAX-2014-26); 71700 (March 12, 2014), 79 FR 15188 (March
18, 2014) (SR-MIAX-2014-13).
\5\ See section 1)a)iii) of the Fee Schedule for a complete
description of the PCRP.
\6\ See Fee Schedule, note 14.
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Proposal
First, the Exchange proposes to amend two column headers of the
PCRP Table in Section 1)a)iii) of the Fee
[[Page 17078]]
Schedule to remove the word ``MIAX'' from the table columns, ``Per
Contract Credit for Simple Orders in non-MIAX Select Symbols'' and
``Per Contract Credit for Simple Orders in MIAX Select Symbols.''
Second, the Exchange proposes to add the phrase ``Listed on MIAX'' to
those same two table columns so that with the proposed changes, those
columns in the PCRP Table will read as follows: ``Per Contract Credit
for Simple Orders in non-Select Symbols Listed on MIAX'' and ``Per
Contract Credit for Simple Orders in Select Symbols Listed on MIAX.''
Additionally, the Exchange proposes to remove the word ``MIAX'' and
add the phrase ``listed on MIAX'' in footnote 14, so that with the
proposed changes, footnote 14 will read as follows: ``The term `Select
Symbols' means options listed on MIAX overlying AAL, AAPL, AMAT, AMD,
AMZN, BA, BABA, BB, BIDU, BP, C, CAT, CLF, CVX, DAL, EBAY, EEM, FCX,
GE, GILD, GLD, GM, GOOGL, GPRO, HAL, INTC, IWM, JNJ, JPM, KMI, KO,
META, MO, MRK, NFLX, NOK, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, SPY, T,
TSLA, USO, VALE, WBA, WFC, WMB, X, XHB, XLE, XLF, XLP, XOM and XOP.''
Finally, the Exchange proposes to amend one of the explanatory
paragraphs below the PCRP Table that references ``MIAX Select Symbols''
to be in line with the changes proposed above. Accordingly, with the
proposed change, the explanatory sentence will read as follows: ``For
each Priority Customer order transmitted by that Member which is
executed electronically on the Exchange in Select Symbols in simple
order executions, MIAX shall credit each member at the separate per
contract rate for Select Symbols listed on MIAX.''
The Exchange notes that it is not changing the application of fees
or rebates to Select Symbols or any of the rates in the PCRP Table. The
purpose of these proposed changes is to promote clarity within the
Exchange's Fee Schedule. The proposed change is immediately effective.
2. Statutory Basis
The Exchange believes that the proposed rule changes are consistent
with Section 6(b) of the Act \7\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \8\ in particular, in that
they are designed to prevent fraudulent and manipulative acts and
practices, promote just and equitable principles of trade, foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, remove impediments to and
perfect the mechanisms of a free and open market and a national market
system and, in general, protect investors and the public interest.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposed changes promote just and
equitable principles of trade and remove impediments to and perfect the
mechanism of a free and open market and a national market system
because the proposed changes make clarifying, non-substantive edits to
the Fee Schedule. The Exchange believes that these proposed changes
will provide greater clarity to Members and the public regarding the
Exchange's Fee Schedule and that it is in the public interest for the
Fee Schedule to be accurate and concise so as to eliminate the
potential for confusion.
Additionally, the Exchange believes that the proposed rule change
is consistent with Section 6(b)(5) \9\ because it will not permit
unfair discrimination among customers, brokers, or dealers because the
clarification applies equally to all Members with similarly situated
Priority Customer orders in Select Symbols listed on MIAX in the PCRP.
All similarly situated Priority Customer orders in Select Symbols are
subject to the same rebate schedule.
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\9\ 15 U.S.C. 78f(b)(5).
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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. The proposed
rule change is not a competitive filing but rather is designed to
remedy minor non-substantive issues and provide added clarity to the
Fee Schedule in order to avoid potential confusion on the part of
market participants. Consequently, the Exchange does not believe that
the proposed change will have any impact on 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
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \10\ and
subparagraph (f)(6) of Rule 19b-4thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 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 Commission has waived this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. MIAX has asked the Commission to
waive the 30-day operative delay so that the proposal may become
operative immediately upon filing. As MIAX represents above, the
proposed rule change would make minor, non-substantive changes to
clarify certain references in MIAX's fee schedule to options listed on
MIAX. MIAX states that waiver of the operative delay would allow MIAX
to immediately clarify its fee schedule and avoid any potential
investor confusion. The Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest because the proposed rule change makes non-substantive
clarifying changes and thus does not raise any new or novel issues.
Accordingly, the Commission hereby waives the 30-day operative delay
and designates the proposal operative upon filing.\14\
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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: (i)
necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing,
[[Page 17079]]
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#0f7d7a636a226c6062626a617b7c4f7c6a6c21686079"><span class="__cf_email__" data-cfemail="ed9f988188c08e8280808883999ead9e888ec38a829b">[email protected]</span></a>. Please include
File Number SR-MIAX-2023-11 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-2023-11. 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-2023-11, and should be submitted on
or before April 11, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-05688 Filed 3-20-23; 8:45 am]
BILLING CODE 8011-01-P
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