Notice2024-22414
Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make a Number of Minor, Non-Substantive Edits to Exchange's Rulebook and Delete All References to Mini-Options in the Rulebook
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
October 1, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 190 (Tuesday, October 1, 2024)</title>
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[Federal Register Volume 89, Number 190 (Tuesday, October 1, 2024)]
[Notices]
[Pages 79985-79987]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-22414]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101191; File No. SR-MIAX-2024-38]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Make a Number of Minor, Non-Substantive Edits
to Exchange's Rulebook and Delete All References to Mini-Options in the
Rulebook
September 25, 2024.
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 September 17, 2024, 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 proposes to make a number of minor, non-substantive
edits to Exchange's Rulebook and delete all references to mini-options
in the Rulebook.
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
Proposal To Amend Exchange Rule 100
The Exchange proposes to amend Exchange Rule 100 to make minor,
non-substantive edits and clarifying changes to provide accuracy and
precision within the rule text.
Specifically, the Exchange proposes to amend the definition of
Market Makers \3\ in Exchange Rule 100 to move the comma after ``Lead
Market Makers'' from outside to inside the quotation marks for
grammatical correctness and clarity in the rule text. Additionally, the
Exchange proposes to add a comma before the conjunction ``and'' (i.e.
between ``Primary Lead Market Makers'' and ``Registered Market
Makers''), where the comma will be placed inside the closing quotation
mark. Accordingly, with the proposed changes, the definition of Market
Makers in Exchange Rule 100 will read as follows:
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\3\ The term ``Market Makers'' refers to ``Lead Market Makers'',
``Primary Lead Market Makers'' and ``Registered Market Makers''
collectively. See Exchange Rule 100.
The term ``Market Makers'' refers to ``Lead Market Makers,''
``Primary Lead Market Makers,'' and ``Registered Market Makers''
collectively.
Proposal To Amend Interpretations and Policies .01 of Exchange Rule 521
The Exchange proposes to amend Interpretations and Policies .01 of
Exchange Rule 521 to make a minor, non-substantive edit to provide
accuracy and precision within the rule text.
Specifically, the Exchange proposes to amend Interpretations and
Policies .01
[[Page 79986]]
of Exchange Rule 521 to add a closing parenthesis at the end of the
first sentence for grammatical correctness and clarity in the rule
text. Accordingly, with the proposed changes, the Interpretations and
Policies .01 of Exchange Rule 521 will read as follows:
.01 Limit Up-Limit Down State. An execution will not be subject
to review as an Obvious Error or Catastrophic Error pursuant to
paragraph (c) or (d) of this Rule if it occurred while the
underlying security was in a ``Limit State'' or ``Straddle State,''
as defined in the Regulation NMS Plan to Address Extraordinary
Market Volatility (the ``Limit Up-Limit Down Plan'' or the
``Plan''). Nothing in this provision shall prevent such execution
from being reviewed on an Official's own motion pursuant to sub-
paragraph (c)(3) of this Rule, or a bust or adjust pursuant to
paragraphs (e) through (k) of this Rule.
Proposal To Amend Interpretations and Policies .02 of Exchange Rule
1809
The Exchange proposes to amend Interpretations and Policies .02 of
Exchange Rule 1809 to make a minor, clarifying change to provide
accuracy and precision within the rule text. Interpretation and Policy
.02 of Exchange Rule 1809 discusses the Quarterly Options Series \4\
Program and that the Exchange may list Quarterly Options Series for
index options.
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\4\ The term ``Quarterly Options Series'' is a series in an
options class that is approved for listing and trading on the
Exchange in which the series is opened for trading on any business
day and that expires at the close of business on the last business
day of a calendar quarter. See Exchange Rule 100.
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Specifically, the Exchange proposes to amend Interpretations and
Policies .02 of Exchange Rule 1809 to delete ``pilot'' at the end of
the last sentence. The Exchange notes that other exchanges have
permanently established quarterly options series programs.\5\
Accordingly, with the proposed changes, Interpretations and Policies
.02 of Exchange Rule 1809 will read as follows:
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\5\ See e.g., Securities Exchange Act Release No. 60164 (June
23, 2009), 74 FR 31333 (June 30, 2009) (SR-CBOE-2009-029) (Order
Approving a Proposed Rule Change To Permanently Establish the
Quarterly Option Series Program); see also Securities Exchange Act
Release No. 60275 (July 9, 2009), 74 FR 34809 (July 17, 2009) (SR-
ISE-2009-50) (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change To Permanently Establish the Quarterly Options
Series Pilot Program).
.02 Quarterly Options Series Program: Notwithstanding the
restriction in Rule 1809(a)(3), the Exchange may list and trade
options series that expire at the close of business on the last
business day of a calendar quarter (``Quarterly Options Series'').
The Exchange may list Quarterly Options Series for up to five (5)
currently listed options classes that are either index options or
options on exchange traded funds (``ETFs''). In addition, the
Exchange may also list Quarterly Options Series on any options
classes that are selected by other securities exchanges that employ
a similar program under their respective rules.
Proposal To Delete All References to Mini-Options
The Exchange proposes to delete all outdated references to mini-
options in the rule text.\6\ On April 17, 2013, the Exchange began
listing and trading mini-options that were options contracts on a
select number of high-priced and actively traded securities, each with
a unit of trading ten times lower than that of standard-sized options
contracts.\7\ Mini-options never gained significant market acceptance
and have not achieved the expected level of traction or success in its
target market. Accordingly, all mini-options were delisted several
years ago and the Exchange does not have plans to re-list them in the
foreseeable future. As the Exchange no longer offers mini-option
contracts, the Exchange proposes to delete all references to mini-
options to provide greater clarity to Members \8\ and the public
regarding the Exchange's offerings and Rulebook. The Exchange also
notes that other exchanges filed similar proposals to delete references
to mini-options.\9\
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\6\ The Exchange anticipates it will file a separate rule filing
pursuant to Rule 19b-4 of the Exchange Act with the Commission to
remove references to ``mini-options'' in the MIAX Options Exchange
Fee Schedule, including outdated tables that still list fees (or
rebates) for transactions by market participants in mini-options.
\7\ See Securities Exchange Act Release No. 69136 (March 14,
2013), 78 FR 17259 (March 20, 2013) (SR-MIAX-2013-06).
\8\ 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.
\9\ See Securities Exchange Act Release No. 88374 (March 12,
2020), 85 FR 15522 (March 18, 2020) (SR-Phlx-2020-08) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Certain Phlx Rules To Remove References to Mini Options); see also
Securities Exchange Act Release No. 88458 (March 23, 2020), 85 FR
17372 (March 27, 2020) (SR-MRX-2020-07) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Related to the
Removal of Obsolete Listing Rules); see also Securities Exchange Act
Release No. 88456 (March 23, 2020), 85 FR 17126 (March 26, 2020)
(SR-ISE-2020-11) (Notice of Filing and Immediate Effectiveness of
Proposed Rule Change Related to the Removal of Obsolete Listing
Rules).
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Specifically, the Exchange proposes to delete the content in
Interpretations and Policies .03 of Exchange Rule 307 and then insert
``Reserved'' so as to keep the remainder of the Rulebook as currently
formatted. The Exchange proposes to delete the content in
Interpretations and Policies .08 of Exchange Rule 404 and then insert
``Reserved'' so as to keep the remainder of the Rulebook as currently
formatted. The Exchange proposes to delete the content in subparagraph
(c) of Exchange Rule 509 and then insert ``Reserved'' so as to keep the
remainder of the Rulebook as currently formatted. The Exchange proposes
to delete the content in Interpretations and Policies .02 of Exchange
Rule 510 and then insert ``Reserved'' so as to keep the remainder of
the Rulebook as currently formatted. The Exchange proposes to delete
``or 5,000 mini-option contracts'' at the end of subparagraph (b)(1)(i)
of Exchange Rule 515A. The Exchange proposes to delete ``or 10,000
mini-option contracts,'' in the first sentence of subparagraph (j) of
Exchange Rule 516. In addition, the Exchange proposes to delete the
sentence that ``Mini-options may only be part of a complex order that
includes other mini-options.'' in subparagraph (a)(5) of Exchange Rule
518.
2. Statutory Basis
The Exchange believes that the proposed changes are consistent with
Section 6(b) of the Act \10\ in general, and further the objectives of
Section 6(b)(1) of the Act \11\ in particular, in that they are
designed to enforce compliance by the Exchange's Members and persons
associated with its Members, with the provisions of the rules of the
Exchange. In particular, the Exchange believes that the proposed
changes will provide greater clarity to Members and the public
regarding the Exchange's Rulebook by correcting grammatical errors,
removing obsolete rule text, and providing accuracy and consistency
within the Exchange's Rulebook. The proposed changes will also make it
easier for Members to interpret the Exchange's Rulebook.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(1).
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The Exchange believes that the proposed rule changes also further
the objectives of Section 6(b)(5) of the Act. In particular, 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. 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
[[Page 79987]]
because the proposed rule changes will provide greater clarity to
Members and the public regarding the Exchange's Rulebook by correcting
grammatical errors and removing obsolete rule text. The proposed
changes to remove obsolete rule text include the removal of outdated
references to mini-options. Mini-options are no longer offered by the
Exchange since mini-options failed to gain significant market
acceptance and have not achieved the expected level of traction or
success in its target market. Removing references to mini-options would
render the rules more accurate and reduce potential investor confusion.
It is in the public interest for the Exchange's Rulebook to be accurate
and concise so as to eliminate the potential for confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed changes will impose
any burden on competition not necessary or appropriate in furtherance
of the purposes of the Act. Specifically, the Exchange believes the
proposed changes will not impose any burden on intra-market competition
as there is no functional change to the Exchange's System \12\ and
because the rules of the Exchange apply to all Members equally. The
proposed rule changes will have no impact on competition as they are
not designed to address any competitive issue but rather are designed
to remedy minor, non-substantive issues and provide added clarity to
the Exchange's Rulebook, including removing outdated references to
mini-options that are no longer offered by the Exchange. Mini-options
failed to gain significant market acceptance and have not achieved the
expected level of traction or success in its target market, so the
Exchange delisted all mini-options several years ago and does not have
plans to re-list them in the foreseeable future.\13\ In addition, the
Exchange does not believe the proposal will impose any burden on inter-
market competition as the proposal does not address any competitive
issues and is intended to protect investors by providing further
transparency and accuracy regarding the Exchange's Rulebook.
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\12\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
\13\ The Exchange notes that other exchanges filed similar
proposals to delete references to mini-options. See supra note 9.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or 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 \14\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 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, 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.
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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 under
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed
rule change be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="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#493b3c252c642a2624242c273d3a093a2c2a672e263f"><span class="__cf_email__" data-cfemail="2e5c5b424b034d4143434b405a5d6e5d4b4d00494158">[email protected]</span></a>. Please include
file number SR-MIAX-2024-38 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-2024-38. 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-2024-38 and should be
submitted on or before October 22, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-22414 Filed 9-30-24; 8:45 am]
BILLING CODE 8011-01-P
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