Notice2023-19232
Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange's Fee Schedule To Extend the Date for Which Ad Hoc Requests for Historical Intra-Day Open-Close Report Data May Be Requested
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
September 7, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 172 (Thursday, September 7, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 172 (Thursday, September 7, 2023)]
[Notices]
[Pages 61648-61650]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-19232]
[[Page 61648]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98258; File No. SR-MIAX-2023-31]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the Exchange's Fee Schedule To Extend the
Date for Which Ad Hoc Requests for Historical Intra-Day Open-Close
Report Data May Be Requested
August 31, 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 August 18, 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
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 Exchange's Fee
Schedule (``Fee Schedule'') to extend the date for which ad hoc
requests for historical intra-day Open-Close Report data may be
requested.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-options/miax-options/rule-filings">https://www.miaxglobal.com/markets/us-options/miax-options/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 adopted a new data product for options known as the
Open-Close Report,\3\ which the Exchange made available for purchase to
Exchange Members \4\ and non-Members on June 1, 2021.\5\ The Open-Close
Report is described under Exchange Rule 531(d)(1).
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 91965 (May 21,
2021), 86 FR 28665 (May 27, 2021) (SR-MIAX-2021-18) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Adopt a New Historical Market Data Product To Be Known as the Open-
Close Report).
\4\ 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.
\5\ See Securities Exchange Act Release No. 92135 (June 9,
2021), 86 FR 31751 (June 15, 2021) (SR-MIAX-2021-23) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Its Fee Schedule To Adopt Fees for the Open-Close Report).
---------------------------------------------------------------------------
By way of background, the Exchange offers two versions of the Open-
Close Report, an end-of-day summary and intra-day report, both of which
can be requested on an ad-hoc basis. The Open-Close Report data is
proprietary Exchange trade data and does not include trade data from
any other exchange. It is also a historical data product and not a
real-time data feed. The Exchange notes that Open-Close Report data is
not necessary for trading and subscribing to the Open-Close Report is
completely optional.
The Exchange charges Members and Non-Members who request on an ad
hoc basis historical intra-day Open-Close Report data $1,000 per
request per month. The Fee Schedule currently specifies that an ad hoc
request may be for any number of months beginning with June 2021, the
month in which the Exchange first made the Open-Close Report available.
The Exchange recently completed an initiative to now make available
historical intra-day Open-Close Report data beginning with January
2013, the first full month in which the Exchange began operations.\6\
---------------------------------------------------------------------------
\6\ See the Exchange's press release ``MIAX Options Exchange
Successfully Launches'' available at <a href="https://www.miaxglobal.com/sites/default/files/press_release-files/MIAX_Press_Release_12072012A.pdf">https://www.miaxglobal.com/sites/default/files/press_release-files/MIAX_Press_Release_12072012A.pdf</a>.
---------------------------------------------------------------------------
The Exchange now proposes to amend the Fee Schedule to reflect that
ad hoc requests for historical intra-day Open-Close Report data may be
made for data dating back to January 2013. The Exchange does not
propose to amend the fee for ad hoc request for historical intra-day
Open-Close Report data.
Implementation Date
The Exchange intends to implement the proposed changes immediately.
2. Statutory Basis
The Exchange believes that its proposal to permit ad-hoc requests
for historical intra-day Open-Close Report data to be made for data
going back to January 2013 and to correspondingly amend its Fee
Schedule is consistent with Section 6(b) of the Act \7\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \8\ in
particular, in that it is an equitable allocation of reasonable fees
and other charges among its Members and issuers and other persons using
its facilities. The Exchange also believes that its proposal to permit
ad-hoc requests for historical intra-day Open-Close Report data to be
made for data going back to January 2013 and to correspondingly amend
its Fee Schedule is consistent with Section 6(b)(5) of the Act \9\ in
that it is designed 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 it is not designed to permit
unfair discrimination among customers, brokers, or dealers.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes its proposal is reasonable and not unfairly
discriminatory because the Exchange now has over 10 years of historical
intra-day Open-Close Report data to provide to market participants who
request ad-hoc historical intra-day Open-Close Report data since the
Exchange's first full month of operations in January 2013. The Exchange
notes that competing exchanges offer similar historical data
products,\10\ which
[[Page 61649]]
provide insight into trading on those markets. The Exchange believes
that its proposal to expand this particular range of available
historical data will allow the Exchange to compete better with the
other exchanges that offer similar historical intra-day reports.
Although each of these similar Open-Close Report data products provide
only proprietary trade data and not trade data from competing
exchanges, it is possible investors are still able to gauge overall
investor sentiment across different option series based on open and
closing interest on any one exchange.\11\ Similarly, market
participants may be able to analyze option trade and volume data, and
create and test trading models and analytical strategies using only
Open-Close data, including historical intra-day data, relating to
trading activity on one or more of the competing markets that provide
similar data products. As such, if a market participant views another
exchange's historical intra-day Open-Close data as more attractive than
the Exchange's historical intra-day Open-Close Report data, then such
market participant can choose not to request such data from the
Exchange and instead purchase another exchange's historical intra-day
Open-Close data, which offers similar data points, albeit based on that
other market's trading activity.
---------------------------------------------------------------------------
\10\ BOX Options Market LLC (``BOX'') offers a market data
report for Intraday Ad-hoc Requests (historical data) beginning with
January 2018. BOX charges $1,000 per request per month. See the BOX
fee schedule, available at <a href="https://boxexchange.com/assets/BOX-Fee-Schedule-as-of-July-3-2023.pdf">https://boxexchange.com/assets/BOX-Fee-Schedule-as-of-July-3-2023.pdf</a>. Nasdaq ISE, LLC (``ISE'') offers the
market data report for Nasdaq ISE Ad-hoc Requests (historical data)
beginning with May 2005. See <a href="https://www.nasdaq.com/solutions/nasdaq-open-close-trade-profiles%3A-ise-and-gemx">https://www.nasdaq.com/solutions/nasdaq-open-close-trade-profiles%3A-ise-and-gemx</a>. ISE charges $1,000
per request per month. See ISE fee schedule, available at <a href="https://listingcenter.nasdaq.com/rulebook/ise/rules/ise-options-7">https://listingcenter.nasdaq.com/rulebook/ise/rules/ise-options-7</a>. Nasdaq
PHLX LLC (``PHLX'') offers historical data for its intra-day report
starting in January 2009 for purchase on an ad-hoc basis. See
<a href="https://www.nasdaqtrader.com/micro.aspx?id=photo">https://www.nasdaqtrader.com/micro.aspx?id=photo</a>. PHXL charges
$1,000 per month or $12,000 for the most recent 36 months to firms
currently subscribed to the on-going subscription. See PHLX fee
schedule, available at <a href="https://listingcenter.nasdaq.com/rulebook/phlx/rules/Phlx%20Options%207">https://listingcenter.nasdaq.com/rulebook/phlx/rules/Phlx%20Options%207</a>.
\11\ The Exchange notes that its Open-Close Report data product
does not include data on any exclusive, singly-listed option series.
---------------------------------------------------------------------------
The Exchange also believes its proposal is reasonable as it would
further enhance the usefulness of its Open-Close Report data, which is
designed to aid investors by providing insight into trading on the
Exchange. Providing market data, such as the historical intra-day Open-
Close Report, is also a means by which exchanges compete to attract
business. Purchasers that receive the expanded historical intra-day
Open-Close Report data as a result of this proposal, may use such data
to evaluate the usefulness of the Exchange's Open-Close Report and
decide, based on that data, whether to purchase the Open-Close Report.
To the extent that the Exchange is successful in selling the ad-hoc
historical intra-day Open-Close Report, it may earn trading revenues
and further enhance the value of its data products.
The Exchange currently charges $1,000 per request per month for ad
hoc requests for its historical intra-day Open-Close Report data, which
is in line with, or lower than, the per request amounts charged by
competing exchanges for their similar historical data products.\12\ The
Exchange does not propose to amend the amount of the fee for ad hoc
requests for historical intra-day Open-Close Report data.
---------------------------------------------------------------------------
\12\ See supra note 10.
---------------------------------------------------------------------------
In adopting Regulation NMS, the Commission granted self-regulatory
organizations (``SROs'') and broker-dealers increased authority and
flexibility to offer new and unique market data to the public. It was
believed that this authority would expand the amount of data available
to consumers, and also spur innovation and competition for the
provision of market data. Particularly, the expanded historical intra-
day Open-Close Report data further broadens the availability of U.S.
option market data to investors consistent with the principles of
Regulation NMS.
The Exchange believes that its proposal to permit ad-hoc requests
for historical intra-day Open-Close Report data to be made for data
going back to January 2013 is consistent with Section 6(b)(5) of the
Act \13\ in that it is designed 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 it is not
designed to permit unfair discrimination among customers, brokers, or
dealers. In particular, the proposed extended historical data range
would remove impediments to and perfect the mechanism of a free and
open market and benefit Members and market participants by providing
access to an expanded range of historical intra-day Open-Close Report
data, which as noted above, may aid investors by providing insight into
trading on the Exchange, as well as research and studies of the options
industry as a whole.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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. Rather, the
Exchange believes that the proposal will promote competition by
permitting the Exchange to sell, for months not previously available, a
historic data product similar to those offered by other competitor
options exchanges.\14\ The Exchange made the expanded historical intra-
day Open-Close Report data available in order to keep pace with changes
in the industry and evolving customer needs, and believes that
providing such data to market participants that make requests for it
will continue to contribute to robust competition among national
securities exchanges.
---------------------------------------------------------------------------
\14\ See supra note 10.
---------------------------------------------------------------------------
The Exchange also does not believe the proposal would cause any
unnecessary or inappropriate burden on intermarket competition as other
exchanges are free to expand their own comparable data product and
compete with the Exchange's offering. The Exchange does not believe the
proposed rule change would cause any unnecessary or inappropriate
burden on intramarket competition because the expanded date range will
be available to both Members and non-Members equally.
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) of the Act \15\ and Rule 19b-
4(f)(6) thereunder.\16\
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of 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.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \18\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
states that the proposal expands the data available under an existing
product, the intra-day Open-Close Report, and that this product is
designed to compete with
[[Page 61650]]
products that other exchanges offer.\19\ The Exchange further states
that it does not propose to amend the fee for ad hoc requests for
historical intra-day Open-Close Report data. For these reasons, and
because the proposal raises no novel legal or regulatory issues, the
Commission believes that waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
Accordingly, the Commission hereby waives the 30-day operative delay
and designates the proposed rule change as operative upon filing.\20\
---------------------------------------------------------------------------
\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
\19\ See supra note 10.
\20\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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.
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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#3c4e495059115f5351515952484f7c4f595f125b534a"><span class="__cf_email__" data-cfemail="7200071e175f111d1f1f171c0601320117115c151d04">[email protected]</span></a>. Please include
file number SR-MIAX-2023-31 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-2023-31. 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="https://www.sec.gov/rules/sro.shtml">https://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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-MIAX-2023-31 and should be
submitted on or before September 28, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
---------------------------------------------------------------------------
\21\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-19232 Filed 9-6-23; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on September 7, 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.