Notice2024-02980
Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange's Fee Schedule
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Published
February 14, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 31 (Wednesday, February 14, 2024)</title>
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[Federal Register Volume 89, Number 31 (Wednesday, February 14, 2024)]
[Notices]
[Pages 11326-11331]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-02980]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99497; File No. SR-MEMX-2024-02]
Self-Regulatory Organizations; MEMX LLC; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Amend the
Exchange's Fee Schedule
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on January 31, 2024, MEMX LLC (``MEMX'' or the ``Exchange'') filed
with the Securities and Exchange Commission (the ``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by the Exchange. The
[[Page 11327]]
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 with the Commission a proposed rule change
to amend the Exchange's fee schedule applicable to Members \3\ (the
``Fee Schedule'') pursuant to Exchange Rules 15.1(a) and (c). The
Exchange proposes to implement the changes to the Fee Schedule pursuant
to this proposal on February 1, 2024. The text of the proposed rule
change is provided in Exhibit 5.
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\3\ See Exchange Rule 1.5(p).
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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 purpose of the proposed rule change is to amend the Fee
Schedule to: (i) increase the rebate for executions of Retail Orders
\4\ in securities priced below $1.00 per share that add displayed
liquidity to the Exchange (such orders, ``Added Displayed Sub-Dollar
Retail Volume'') and make a corresponding increase in the rebate
provided for executions of Added Displayed Sub-dollar Retail Volume
under Retail Tier 1; and (ii) modify NBBO Setter Tier 1 by adopting a
new additive rebate for executions of added displayed volume (other
than Retail Orders) that meet the criteria under NBBO Setter Tier 1 and
modifying the required criteria under such tier, each as further
described below.
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\4\ A ``Retail Order'' means an agency or riskless principal
order that meets the criteria of FINRA Rule 5320.03 that originates
from a natural person and is submitted to the Exchange by a Retail
Member Organization (``RMO''), provided that no change is made to
the terms of the order with respect to price or side of market and
the order does not originate from a trading algorithm or any other
computerized methodology. See Exchange Rule 11.21(a).
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The Exchange first notes that it operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. More specifically, the
Exchange is only one of 16 registered equities exchanges, as well as a
number of alternative trading systems and other off-exchange venues, to
which market participants may direct their order flow. Based on
publicly available information, no single registered equities exchange
currently has more than approximately 15% of the total market share of
executed volume of equities trading.\5\ Thus, in such a low-
concentrated and highly competitive market, no single equities exchange
possesses significant pricing power in the execution of order flow, and
the Exchange currently represents approximately 3% of the overall
market share.\6\ The Exchange in particular operates a ``Maker-Taker''
model whereby it provides rebates to Members that add liquidity to the
Exchange and charges fees to Members that remove liquidity from the
Exchange. The Fee Schedule sets forth the standard rebates and fees
applied per share for orders that add and remove liquidity,
respectively. Additionally, in response to the competitive environment,
the Exchange also offers tiered pricing, which provides Members with
opportunities to qualify for higher rebates or lower fees where certain
volume criteria and thresholds are met. Tiered pricing provides an
incremental incentive for Members to strive for higher tier levels,
which provides increasingly higher benefits or discounts for satisfying
increasingly more stringent criteria.
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\5\ Market share percentage calculated as of January 30, 2024.
The Exchange receives and processes data made available through
consolidated data feeds (i.e., CTS and UTDF).
\6\ Id.
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Increase Rebate for Added Displayed Sub-Dollar Retail Volume
Currently, the Exchange provides a rebate of 0.075% of the total
dollar value of the transaction for executions of Retail Orders in
securities priced below $1.00 per share that add displayed liquidity to
the Exchange (such orders, ``Added Displayed Sub-Dollar Retail
Volume''). This rebate is applicable to all executions of Added
Displayed Sub-Dollar Retail Volume and is applicable to all Members
(including those that qualify for any of the Exchange's volume tiers).
Now, the Exchange proposes to increase the rebate provided to Members
for all executions of Added Displayed Sub-Dollar Retail Volume to 0.15%
of the total dollar value of the transaction. The Exchange also
currently offers Retail Tier 1, whereby the Exchange provides an
enhanced rebate of $0.0034 per share for executions of Added Displayed
Retail Volume in securities priced at or above $1.00 and 0.075% of the
total dollar value of the transaction for executions of Added Displayed
Retail Volume in securities priced below $1.00 for a Member that
qualifies for Retail Tier 1 by achieving a Retail Order ADAV \7\ that
is equal to or great than 0.07% of the TCV.\8\ Given that the Exchange
is now proposing to increase the rebate for all executions of Added
Displayed Sub-dollar Retail Volume from 0.075% of the total dollar
value of the transaction to 0.15% of the total dollar value of the
transaction, it follows that the rebate provided under Retail Tier 1
for executions of Added Displayed Sub-Dollar Retail Volume should also
be increased to 0.15% of the transaction. As such, the Exchange is
similarly proposing to increase the rebate provided to Members that
qualify for Retail Tier 1 to 0.15% of the total dollar value of the
transaction for executions of Added Displayed Sub-Dollar Retail Volume,
which again, is the same rebate that will be applicable to such
executions for all Members under this proposal.\9\
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\7\ As set forth on the Fee Schedule, ``ADAV'' means the average
daily added volume calculated as the number of shares added per day,
which is calculated on a monthly basis, and ``Displayed ADAV'' means
ADAV with respect to displayed orders.
\8\ As set forth on the Fee Schedule, ``TCV'' means total
consolidated volume calculated as the volume reported by all
exchanges and trade reporting facilities to a consolidated
transaction reporting plan for the month for which the fees apply.
\9\ The pricing for the Retail Tier is referred to by the
Exchange on the Fee Schedule under the description ``Added displayed
volume, Retail Tier 1'' with a Fee Code of ``Br1'', ``Dr1'' or
``Jr1'', as applicable, to be provided by the Exchange on the
monthly invoices provided to Members.
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The purpose of increasing the rebate for executions of Added
Displayed Sub-Dollar Retail Volume is for business and competitive
reasons, as the Exchange believes that increasing such rebate would
incentivize Members to submit additional Added Displayed Sub-Dollar
Retail Volume to the Exchange, which the Exchange believes would
promote price discovery and price formation, provide more trading
opportunities and tighter spreads, and deepen liquidity that is subject
to the Exchange's transparency, regulation and oversight, thereby
enhancing market quality to the benefit of all Members and investors.
[[Page 11328]]
NBBO Setter Tier
The Exchange currently offers NBBO Setter Tier 1 under which a
Member may receive an additive rebate of $0.0002 per share for
executions of Added Displayed Volume (other than Retail Orders) that
establish the NBBO (such orders, ``Setter Volume'') by achieving an
ADAV with respect to orders with Fee Code B \10\ that is equal to or
greater than 0.10% of the TCV. The Exchange now proposes to modify NBBO
Setter Tier 1 by adopting a new additive rebate under such tier that
would apply to a qualifying Member's executions of Added Displayed
Volume (other than Retail Orders) that have a Fee Code of D or J, and
modifying the required criteria under such tier.
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\10\ The Exchange notes that orders with Fee Code B include
orders, other than Retail Orders, that establish the NBBO.
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First, the Exchange proposes to adopt a new additive rebate under
NBBO Setter Tier 1 of $0.0001 per share for a qualifying Member's
executions of Added Displayed Volume with a Fee Code of D or J.\11\ The
Exchange is not proposing to modify the existing additive rebate of
$0.0002 per share for a Member's executions of Added Displayed Volume
(other than Retail Orders) that establish the NBBO (i.e. Fee Code B),
however, the Exchange is proposing to add language within the NBBO
Setter Tier 1 pricing table that clarifies which Fee Codes would
receive which Additive Rebate. Specifically, the Exchange will offer an
additive rebate of $0.0002 per share for a qualifying Member's
executions of Added Displayed Volume with Fee Code B and an additive
rebate of $0.0001 per share for a qualifying Member's executions of
Added Displayed Volume with Fee Codes D and J. To summarize, under the
current proposal, if a Member meets the criteria under NBBO Setter Tier
1, that Member will now receive the current additive rebate of $0.0002
per share on all of its executions of Added Displayed Volume that
establish the NBBO (i.e. Fee Code B), as well as a new additive rebate
of $0.0001 per share on all of its executions of Added Displayed volume
that do not establish the NBBO (i.e. Fee Codes D and J).\12\
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\11\ The Exchange notes that orders with Fee Code D include
orders that add displayed liquidity to the Exchange but that are not
Fee Code B or J. Orders with Fee Code J include orders, other than
Retail Orders, that establish a new BBO on the Exchange that matches
the NBBO first established on an away market. Thus, orders with Fee
Code B, D or J include all orders, other than Retail Orders, that
add displayed liquidity to the Exchange. The pricing for NBBO Setter
Tier 1 is referred to by the Exchange on the Fee Schedule under the
description ``NBBO Setter Tier 1'' with a Fee Code of S1 to be
appended to the otherwise applicable Fee Code assigned by the
Exchange on the monthly invoices for qualifying executions.
\12\ In connection with the proposed changes to this tier, the
Exchange is proposing to revise the note under the NBBO Setter Tier
pricing table to reflect that the additive rebate under such tier is
applicable to executions of Added Displayed Volume (other than
Retail Orders) in securities priced at or above $1.00 per share
rather than being limited to the Fee Code associated with Setter
Volume.
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Second, the Exchange is proposing to modify the required criteria
under NBBO Setter Tier 1. Currently, a Member qualifies for such tier
by achieving an ADAV with respect to orders with a Fee Code B that is
equal to or greater than 0.10% of the TCV. The Exchange proposes to
keep this criteria intact and adopt an additional (i.e., alternative)
criteria that a Member may achieve in order to qualify for such tier.
Specifically, the Exchange proposes to modify the required criteria
such that a Member would now qualify for such tier by achieving: (i) an
ADAV with respect to Fee Code B that is equal to or greater than 0.10%
of the TCV; or (ii) an ADAV with respect to orders with Fee Code B that
is equal to or greater than 0.05% of the TCV and a Step-Up ADAV \13\
with respect to orders with a Fee Code B that is equal to or greater
than 75% of the Member's December 2023 ADAV with respect to orders with
a Fee Code B. Thus, such proposed change would add an alternative
criteria that includes a lower overall Fee Code B ADAV threshold but
that also requires a Member to increase its Fee Code B ADAV above its
December 2023 ADAV by a specified threshold. Additionally, the Exchange
is proposing that criteria (2) of NBBO Setter Tier 1 will expire no
later than July 31, 2024, and the Exchange will indicate this in a note
under the NBBO Setter Tier pricing table on the Fee Schedule. Again,
the Exchange notes that it is not proposing to change the current
additive rebate under NBBO Setter Tier 1 that is provided in addition
to the otherwise applicable rebate for executions of added displayed
volume (other than Retail Orders) in securities priced at or above
$1.00 per share that establish the NBBO.
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\13\ As set forth on the Fee Schedule, ``Step-Up ADAV'' means
ADAV in the relevant baseline month subtracted from current ADAV.
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The purpose of adopting a new additive rebate under the NBBO Setter
Tier 1 that applies to a qualifying Member's executions of Added
Displayed Volume with Fee Codes D or J (in addition to Setter Volume)
is, like the original purpose of the NBBO Setter Tier, to attract
aggressively priced displayed liquidity to the Exchange, which the
Exchange believes would enhance market quality by increasing execution
opportunities, tightening spreads, and promoting price discovery on the
Exchange. Additionally, the Exchange believes that the additive rebate
for executions of Added Displayed Volume is commensurate with the
corresponding required criteria under such tier and is reasonably
related to such market quality benefits that such tier is designed to
achieve.
The Exchange believes that the proposed alternative criteria to
NBBO Setter Tier 1 provides an incremental incentive for Members to
strive for higher ADAV on the Exchange with respect to orders with a
Fee Code B to receive the corresponding additive rebate for executions
of Added Displayed Volume under such tier, and thus, it is designed to
encourage Members that do not currently qualify for such tier to
increase their aggressively priced, liquidity adding orders to the
Exchange. The Exchange believes that the tier, as proposed, would
further incentivize increased order flow to the Exchange, thereby
contributing to a deeper and more liquid market to the benefit of all
market participants. The Exchange notes that, as the proposed change to
the required criteria under NBBO Setter Tier 1 merely provides an
alternative criteria and does not change the existing criteria, the
Exchange believes that such change would make the tier easier for
Members to achieve, and, in turn, while the Exchange has no way of
predicting with certainty how the proposed new criteria will impact
Member activity, the Exchange expects that more Members will strive to
qualify for such tier than currently do, resulting in the submission of
additional order flow to the Exchange.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\14\ in general, and with
Sections 6(b)(4) and 6(b)(5) of the Act,\15\ in particular, in that it
provides for the equitable allocation of reasonable dues, fees and
other charges among its Members and other persons using its facilities
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
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\14\ 15 U.S.C. 78f.
\15\ 15 U.S.C. 78f(b)(4) and (5).
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As discussed above, the Exchange operates in a highly fragmented
and competitive market in which market participants can readily direct
order flow to competing venues if they deem fee levels at a particular
venue to be
[[Page 11329]]
excessive or incentives to be insufficient, and the Exchange represents
only a small percentage of the overall market. The Commission and the
courts have repeatedly expressed their preference for competition over
regulatory intervention in determining prices, products, and services
in the securities markets. In Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and also recognized that current regulation of the market
system ``has been remarkably successful in promoting market competition
in its broader forms that are most important to investors and listed
companies.'' \16\
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\16\ Securities Exchange Act Release No. 51808 (June 9, 2005),
70 FR 37496, 37499 (June 29, 2005).
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The Exchange believes that the ever-shifting market share among the
exchanges from month to month demonstrates that market participants can
shift order flow or discontinue to reduce use of certain categories of
products, in response to new or different pricing structures being
introduced into the market. Accordingly, competitive forces constrain
the Exchange's transaction fees and rebates, including with respect to
Added Displayed Volume and Sub-Dollar Retail Volume, and market
participants can readily trade on competing venues if they deem pricing
levels at those other venues to be more favorable. The Exchange
believes the proposal reflects a reasonable and competitive pricing
structure designed to incentivize market participants to direct
additional order flow, including displayed, liquidity-adding, NBBO
Setting and/or Retail orders, to the Exchange, which the Exchange
believes would promote price discovery and enhance liquidity and market
quality on the Exchange to the benefit of all Members and market
participants.
The Exchange believes that the proposed change to increase the
rebate provided for all executions of Added Displayed Sub-Dollar Retail
Volume, including those that meet the criteria under Retail Tier 1, is
reasonable because it is designed to incentivize Members to submit
additional displayed liquidity-adding Retail Orders to the Exchange,
which would enhance liquidity on the Exchange and promote price
discovery and price formation. The Exchange further believes the
proposed increased rebate is reasonable and appropriate because it is
comparable to and competitive with the rebates provided by other
exchanges for executions of added displayed volume in Retail Orders in
securities priced below $1.00 per share.\17\ The Exchange further
believes the proposed rebate for executions of Added Displayed Sub-
Dollar Retail Volume is equitable and not unfairly discriminatory, as
such rebate will apply equally to all Members submitting Retail Orders
to the Exchange.
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\17\ See, e.g., the MIAX Pearl LLC equities trading fee schedule
on its public website (available at: <a href="https://www.miaxglobal.com/markets/us-equities/pearl-equities/fees">https://www.miaxglobal.com/markets/us-equities/pearl-equities/fees</a>) which reflects a standard
rebate of 0.15% of the total dollar value of executions that add
liquidity in displayed Retail Orders; and the NYSE Arca equities
trading fee schedule (at: <a href="https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse-arca/NYSE_Arca_Marketplace_Fees.pdf</a>) which reflects a
standard rebate of 0.05% of the total dollar value of executions in
Retail Orders that add liquidity.
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The Exchange notes that volume-based incentives and discounts have
been widely adopted by exchanges, including the Exchange, and are
reasonable, equitable and not unfairly discriminatory because they are
open to all members on an equal basis and provide additional benefits
or discounts that are reasonably related to the value to an exchange's
market quality associated with higher levels of market activity, such
as higher levels of liquidity provision and/or growth patterns, and the
introduction of higher volumes of orders into the price and volume
discovery process. The Exchange believes that NBBO Setter Tier 1 as
modified by the changes proposed herein is reasonable, equitable and
not unfairly discriminatory for these same reasons, as such tier would
provide Members with an incremental incentive to achieve certain volume
thresholds on the Exchange, is available to all Members on an equal
basis, and, as described above, is designed to encourage Members to
maintain or increase their order flow, including in the form of
displayed, liquidity-adding NBBO setting orders, to the Exchange in
order to qualify for an additive rebate for executions of Added
Displayed Volume, as applicable, thereby contributing to a deeper, more
liquid and well balanced market ecosystem on the Exchange to the
benefit of all Members and market participants. The Exchange also
believes that such tier reflects a reasonable and equitable allocation
of fees and rebates, as the Exchange believes that the additive rebate
for executions of Added Displayed Volume under the proposed NBBO Setter
Tier 1 remains commensurate with the corresponding required criteria
under such tier and is reasonably related to the market quality
benefits that such tier is designed to achieve, as described above.
For the reasons discussed above, the Exchange submits that the
proposal satisfies the requirements of Sections 6(b)(4) and 6(b)(5) of
the Act \18\ in that it provides for the equitable allocation of
reasonable dues, fees and other charges among its Members and other
persons using its facilities and is not designed to unfairly
discriminate between customers, issuers, brokers, or dealers. As
described more fully below in the Exchange's statement regarding the
burden on competition, the Exchange believes that its transaction
pricing is subject to significant competitive forces, and that the
proposed fees and rebates described herein are appropriate to address
such forces.
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\18\ 15 U.S.C. 78f(b)(4) and (5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposal will result in any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. Instead, as discussed above,
the proposal is intended to incentivize market participants to direct
additional order flow, including displayed, liquidity-adding, NBBO
setting and Retail orders, to the Exchange, thereby enhancing liquidity
and market quality on the Exchange to the benefit of all Members and
market participants, as well as to generate additional revenue in a
manner that is still consistent with the Exchange's overall pricing
philosophy of encouraging added displayed liquidity. As a result, the
Exchange believes the proposal would enhance its competitiveness as a
market that attracts actionable orders, thereby making it a more
desirable destination venue for its customers. For these reasons, the
Exchange believes that the proposal furthers the Commission's goal in
adopting Regulation NMS of fostering competition among orders, which
promotes ``more efficient pricing of individual stocks for all types of
orders, large and small.'' \19\
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\19\ See supra note 16.
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Intramarket Competition
As discussed above, the Exchange believes that the proposal would
incentivize Members to submit additional order flow, including
displayed, liquidity-adding, aggressively priced displayed orders that
establish the NBBO Setting, and/or Retail orders to the Exchange,
thereby enhancing liquidity and market quality on the Exchange to the
benefit of all Members, as well as enhancing the attractiveness of the
Exchange as a trading venue, which the Exchange believes, in turn,
[[Page 11330]]
would continue to encourage market participants to direct additional
order flow to the Exchange. Greater liquidity benefits all Members by
providing more trading opportunities and encourages Members to send
additional orders to the Exchange, thereby contributing to robust
levels of liquidity, which benefits all market participants.
The Exchange does not believe that the proposed change to increase
the rebate for all executions of Added Displayed Sub-Dollar Retail
Volume, including those that meet the criteria under Retail Tier 1,
would impose any burden on intramarket competition because such change
will apply to all Members uniformly, in that the proposed rebate for
such executions would be the rebate applicable to all Members. The
opportunity to qualify for the proposed NBBO Setter Tier 1, and thus
receive the proposed additive rebate for executions of Added Displayed
Volume under such tier, would be available to all Members that meet the
associated volume requirements in any month. For the foregoing reasons,
the Exchange believes the proposed changes would not impose any burden
on intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
Intermarket Competition
As noted above, the Exchange operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive or incentives to be insufficient. Members have numerous
alternative venues that they may participate on and direct their order
flow to, including 15 other equities exchanges and numerous alternative
trading systems and other off-exchange venues. As noted above, no
single registered equities exchange currently has more than
approximately 15% of the total market share of executed volume of
equities trading. Thus, in such a low-concentrated and highly
competitive market, no single equities exchange possesses significant
pricing power in the execution of order flow. Moreover, the Exchange
believes that the ever-shifting market share among the exchanges from
month to month demonstrates that market participants can shift order
flow or discontinue to reduce use of certain categories of products, in
response to new or different pricing structures being introduced into
the market. Accordingly, competitive forces constrain the Exchange's
transaction fees and rebates, including with respect to Added Displayed
Sub-Dollar Retail Volume and Setter Volume, and market participants can
readily choose to send their orders to other exchange and off-exchange
venues if they deem fee levels at those other venues to be more
favorable. As described above, the proposed changes represent a
competitive proposal through which the Exchange is seeking to generate
additional revenue with respect to its transaction pricing and to
encourage the submission of additional order flow to the Exchange
through volume-based tiers, which have been widely adopted by
exchanges, including the Exchange. Accordingly, the Exchange believes
the proposal would not burden, but rather promote, intermarket
competition by enabling it to better compete with other exchanges that
offer similar pricing incentives to market participants.
Additionally, the Commission has repeatedly expressed its
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. Specifically,
in Regulation NMS, the Commission highlighted the importance of market
forces in determining prices and SRO revenues and, also, recognized
that current regulation of the market system ``has been remarkably
successful in promoting market competition in its broader forms that
are most important to investors and listed companies.'' \20\ The fact
that this market is competitive has also long been recognized by the
courts. In NetCoalition v. SEC, the D.C. Circuit stated as follows:
``[n]o one disputes that competition for order flow is `fierce.' . . .
As the SEC explained, `[i]n the U.S. national market system, buyers and
sellers of securities, and the broker-dealers that act as their order-
routing agents, have a wide range of choices of where to route orders
for execution'; [and] `no exchange can afford to take its market share
percentages for granted' because `no exchange possesses a monopoly,
regulatory or otherwise, in the execution of order flow from broker
dealers'. . . .''.\21\ Accordingly, the Exchange does not believe its
proposed pricing changes impose any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the
accordance with Section 6(b)(8) of the Act,\22\ the Exchange believes
that the proposed rule change will not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
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\20\ See supra note 16.
\21\ NetCoalition v. SEC, 615 F.3d 525, 539 (D.C. Cir. 2010)
(quoting Securities Exchange Act Release No. 59039 (December 2,
2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSE-2006-21)).
\22\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
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 \23\ and Rule 19b-4(f)(2) \24\ thereunder.
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\23\ 15 U.S.C. 78s(b)(3)(A)(ii).
\24\ 17 CFR 240.19b-4(f)(2).
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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 change 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="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#5a282f363f77393537373f342e291a293f39743d352c"><span class="__cf_email__" data-cfemail="eb999e878ec6888486868e859f98ab988e88c58c849d">[email protected]</span></a>. Please include
file number SR-MEMX-2024-02 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-MEMX-2024-02. 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the submission, all subsequent
[[Page 11331]]
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-MEMX-2024-02 and should be submitted on or before March 6, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
Dated: February 8, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-02980 Filed 2-13-24; 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 February 14, 2024.
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