Notice2024-28546
Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule
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Published
December 6, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 235 (Friday, December 6, 2024)</title>
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[Federal Register Volume 89, Number 235 (Friday, December 6, 2024)]
[Notices]
[Pages 97138-97140]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28546]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101789; File No. SR-MIAX-2024-41]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
December 2, 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 November 19, 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 amend the MIAX Options Exchange Fee
Schedule (``Fee Schedule'') to (1) update the Exchange's email domain;
and (2) delete all references and transaction fees and rebates for
mini-options.
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 proposes to amend the Fee Schedule to (1) update the
Exchange's email domain; and (2) delete all references and transaction
fees and rebates for mini-options.
Proposal To Amend the Footnote Definition of ``Affiliate'' in Section
1)a)i) of the Fee Schedule
The Exchange proposes to amend the MIAX email domain in footnote #1
of the Members and Their Affiliates In Priority Customer Rebate Program
Volume Tier 3 or Higher table in Section 1)a)i) of the Fee Schedule.
Currently, footnote #1 in the Fee Schedule provides, in relevant
part, that ``. . . A MIAX Market Maker appoints an EEM and an EEM
appoints a MIAX Market Maker, for the purposes of the Fee Schedule, by
each completing and sending an executed Volume Aggregation Request Form
by email to <a href="/cdn-cgi/l/email-protection#04696169666176776c6d7444696d657c6b74706d6b6a772a676b69"><span class="__cf_email__" data-cfemail="f09d959d92958283989980b09d9991889f8084999f9e83de939f9d">[email protected]</span></a> no later than 2 business days
prior to the first business day of the month in which the designation
is to become effective . . .'' MIAX started using the new domain
(@miaxglobal.com), instead of the old domain (@miaxoptions.com), and
all firms are required to include the new domain (@miaxglobal.com) as
of June 1, 2023.\3\ The Exchange now proposes to replace the old email
domain (<a href="/cdn-cgi/l/email-protection#6f020a020d0a1d1c07061f2f02060e17001f1b0600011c410c0002"><span class="__cf_email__" data-cfemail="127f777f707760617a7b62527f7b736a7d62667b7d7c613c717d7f">[email protected]</span></a>) with the new email domain
(<a href="/cdn-cgi/l/email-protection#412c242c23243332292831012c282039262d2e23202d6f222e2c"><span class="__cf_email__" data-cfemail="3f525a525d5a4d4c57564f7f52565e475853505d5e53115c5052">[email protected]</span></a>) in footnote #1 in the Fee Schedule.
Accordingly, with the proposed changes, footnote #1 will read as
follows:
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\3\ See ``MIAX Exchange Group--Options and Equities Markets--
Final Reminder: New email domain,'' available at <a href="https://www.miaxglobal.com/alert/2023/06/01/miax-exchange-group-options-and-equities-markets-final-reminder-new-email-1">https://www.miaxglobal.com/alert/2023/06/01/miax-exchange-group-options-and-equities-markets-final-reminder-new-email-1</a>.
For purposes of the MIAX Options Fee Schedule, the term
``Affiliate'' means (i) an affiliate of a Member of at least 75%
common ownership between the firms as reflected on each firm's Form
BD, Schedule A, (``Affiliate''), or (ii) the Appointed Market Maker
of an Appointed EEM (or, conversely, the Appointed EEM of an
Appointed Market Maker). An ``Appointed Market Maker'' is a MIAX
Market Maker (who does not otherwise have a corporate affiliation
based upon common ownership with an EEM) that has been appointed by
an EEM and an ``Appointed EEM'' is an EEM (who does not otherwise
have a corporate affiliation based upon common ownership with a MIAX
Market Maker) that has been appointed by a MIAX Market Maker,
pursuant to the following process. A MIAX Market Maker appoints an
EEM and an EEM appoints a MIAX Market Maker, for the purposes of the
Fee Schedule, by each completing and sending an executed Volume
Aggregation Request Form by email to <a href="/cdn-cgi/l/email-protection#cca1a9a1aea9bebfa4a5bc8ca1a5adb4aba0a3aeada0e2afa3a1"><span class="__cf_email__" data-cfemail="6a070f07080f181902031a2a07030b120d0605080b0644090507">[email protected]</span></a> no
later than 2 business days prior to the first business day of the
month in which the designation is to become effective. Transmittal
of a validly completed and executed form to the Exchange along with
the Exchange's acknowledgement of the effective designation to each
of the Market Maker and EEM will be viewed as acceptance of the
appointment. The Exchange will only recognize one designation per
Member. A Member may make a designation not more than once every 12
months (from the date of its most recent designation), which
designation shall remain in effect unless or until the Exchange
receives written notice submitted 2 business days prior to the first
business day of the month from either Member indicating that the
appointment has been terminated. Designations will become operative
on the first business day of the effective month and may not be
terminated prior to the end of the month. Execution data and reports
will be provided to both parties.
Proposal To Delete All References to Mini-Options
The Exchange proposes to delete all outdated references to mini-
options in the Fee Schedule. On April 17, 2013, the Exchange began
listing and trading mini-options that were options contracts on a
select number of high-priced and
[[Page 97139]]
actively traded securities, each with a unit of trading ten times lower
than that of standard-sized options contracts.\4\ 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
\5\ and the public regarding the Exchange's offerings and Fee Schedule.
The Exchange also notes that other exchanges filed similar proposals to
delete references to mini-options.\6\ In the event that the Exchange
desires to list mini-options in the future, the Exchange will file a
rule change with the Securities and Exchange Commission (the
``Commission'') to adopt rules to list mini-options and corresponding
fees and rebates for transactions in mini-options, if applicable.
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\4\ See Securities Exchange Act Release No. 69136 (March 14,
2013), 78 FR 17259 (March 20, 2013) (SR-MIAX-2013-06).
\5\ The term ``Member'' means an individual or organization
approved to exercise the trading rights associated with a Trading
Permit. Members are deemed ``members'' under the Exchange Act. See
Exchange Rule 100.
\6\ 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 ``except mini-
options'' at the end of the second sentence of the explanatory
paragraph and delete ``MIAX Market Makers will be assessed a $0.02 per
executed contract fee for transactions in mini-options,'' which is the
third sentence of the explanatory paragraph below the Members and Their
Affiliates In Priority Customer Rebate Program Volume Tier 3 or Higher
table in Section 1)a)i) of the Fee Schedule. The Exchange proposes to
delete the two columns for mini-options transaction fees in Section
1)a)ii) of the Fee Schedule. The Exchange proposes to delete ``mini-
options,'' in the first explanatory paragraph below cPRIME Agency Order
Break-up Table in Section 1)a)iii) of the Fee Schedule. The Exchange
proposes to delete ``mini-options,'' in the last explanatory paragraph
below the cPRIME Agency Order Break-up Table in Section 1)a)iii) of the
Fee Schedule. The Exchange proposes to delete ``mini-options,'' in the
first explanatory paragraph below the Professional Rebate Program fee
table in Section 1)a)iv) of the Fee Schedule. The Exchange proposes to
delete the sentence that states ``Transaction fees in mini-options will
be 1/10th of the standard per contract fee or rebate described in the
table above for the PRIME Auction.'' in the explanatory paragraph in
Section 1)a)v) of the Fee Schedule. The Exchange proposes to delete
``including mini options,'' in the first sentence of the first
explanatory paragraph in Section 1)a)xi) of the Fee Schedule. The
Exchange proposes to delete the last two rows of the table that
provides the marketing fee for mini-options in Section 1)a)xi) of the
Fee Schedule. The Exchange proposes to delete ``including Mini
Options,'' in the first sentence of the explanatory paragraph of
Section 2)b) of the Fee Schedule.
2. Statutory Basis
The Exchange believes that the proposed changes are consistent with
Section 6(b) of the Act \7\ in general, and further the objectives of
Section 6(b)(1) of the Act,\8\ 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 Fee Schedule by updating the Exchange's new email domain and
removing outdated references to mini-options that are no longer offered
by the Exchange. The proposed changes will also make it easier for
Members and non-Members to interpret the Exchange's Fee Schedule.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(1).
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The Exchange believes that the proposed 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 because the proposed changes will
provide greater clarity to Members and the public regarding the
Exchange's Fee Schedule by updating the Exchange's new email domain and
removing outdated references to mini-options that are no longer offered
by the Exchange. The proposed changes to remove obsolete language in
the Fee Schedule 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 did not
achieve the expected level of traction or success in its target market.
Removing references to mini-options would render the Exchange's Fee
Schedule more accurate and reduce potential investor confusion. The
Exchange does not propose to amend any fees to be assessed to Members
or non-Members. It is in the public interest for the Exchange's Fee
Schedule to be accurate and consistent 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 \9\ or the
Exchange's fees and because the Exchange's Fee Schedule applies to all
market participants equally. The proposal will have no impact on
competition as it is not designed to address any competitive issue but
rather is designed to remedy minor issues and provide added clarity to
the Fee Schedule, 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;
accordingly, the Exchange delisted all mini-options several years ago
and does not have plans to re-list them in the
[[Page 97140]]
foreseeable future.\10\ The proposed changes would apply uniformly to
all market participants. The proposed changes do not favor certain
categories of market participants in a manner that would impose an
undue burden on competition.
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\9\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
\10\ The Exchange notes that other exchanges filed similar
proposals to delete references to mini-options. See supra note 6.
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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 regarding the Exchange's email domain
and offerings. Removing outdated references to mini-options that are no
longer offered by the Exchange is to provide more clarity within the
Fee Schedule by deleting obsolete language in the Fee Schedule. 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. The
Exchange does not believe that the proposal will harm another
exchange's ability to compete. Accordingly, the Exchange does not
believe the proposal imposes any burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Act.
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 prior to 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, if consistent
with the protection of investors and the public interest, the proposed
rule change has become effective pursuant to Section 19(b)(3)(A)(iii)
of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 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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A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Exchange states that
removing references to mini-options would render the Exchange's Fee
Schedule more accurate and reduce potential investor confusion by
removing outdated references to a type of option that is no longer
offered by the Exchange. The Exchange also states that competing
exchanges have removed references to mini-options in their rulebooks
because they no longer trade mini-options. The Exchange further states
that the proposal to update the email domain is a minor, non-
substantive edit that will provide greater clarity to Members and the
public regarding the Exchange's Fee Schedule. For these reasons, and
because the proposal does not raise any new or novel issues, the
Commission believes that waiver of the 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 proposal operative upon filing.\15\
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\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ 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).
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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 should 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#0c7e796069216f6361616962787f4c7f696f226b637a"><span class="__cf_email__" data-cfemail="bac8cfd6df97d9d5d7d7dfd4cec9fac9dfd994ddd5cc">[email protected]</span></a>. Please include
file number SR-MIAX-2024-41 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-2024-41. 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-2024-41 and should be
submitted on or before December 27, 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), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-28546 Filed 12-5-24; 8:45 am]
BILLING CODE 8011-01-P
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