Notice2025-05205
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Fee Schedule To Update the Exchange's Email Domain and Delete the Reference to Mini-Options
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Published
March 27, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 58 (Thursday, March 27, 2025)</title>
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[Federal Register Volume 90, Number 58 (Thursday, March 27, 2025)]
[Notices]
[Pages 13933-13936]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-05205]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-102710; File No. SR-EMERALD-2025-08]
Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Fee Schedule To Update the Exchange's Email Domain and
Delete the Reference to Mini-Options
March 21, 2025.
Pursuant to 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 March 14, 2025, MIAX Emerald, LLC (``MIAX Emerald'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
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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[[Page 13934]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend the MIAX Emerald Options Exchange
Fee Schedule (the ``Fee Schedule'') to (1) update the Exchange's email
domain and (2) delete the reference to 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 the Exchange'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 the reference to mini-options.
Proposal To Amend the Exchange's Email Domain in the Definition of
``Affiliate''
The Exchange proposes to amend the Exchange's email domain in the
definition of ``Affiliate'' in the definitions section of the Fee
Schedule.
Currently, the definition of ``Affiliate'' provides, in relevant
part, that ``. . . A MIAX Emerald Market Maker appoints an EEM and an
EEM appoints a MIAX Emerald 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#1f727a727d7a6d6c77766f5f72767e67706f6b7670716c317c7072"><span class="__cf_email__" data-cfemail="83eee6eee1e6f1f0ebeaf3c3eeeae2fbecf3f7eaecedf0ade0ecee">[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 . . .'' The Exchange 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#e68b838b848394958e8f96a68b8f879e8996928f898895c885898b"><span class="__cf_email__" data-cfemail="2f424a424d4a5d5c47465f6f42464e57405f5b4640415c014c4042">[email protected]</span></a>)
with the new email domain (<a href="/cdn-cgi/l/email-protection#abc6cec6c9ced9d8c3c2dbebc6c2cad3ccc7c4c9cac785c8c4c6"><span class="__cf_email__" data-cfemail="bed3dbd3dcdbcccdd6d7cefed3d7dfc6d9d2d1dcdfd290ddd1d3">[email protected]</span></a>) in the definition
of ``Affiliate'' in the Fee Schedule. Accordingly, with the proposed
change, the definition of ``Affiliate'' 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>.
``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, 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 Emerald 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
Emerald Market Maker) that has been appointed by a MIAX Emerald
Market Maker, pursuant to the following process. A MIAX Emerald
Market Maker appoints an EEM and an EEM appoints a MIAX Emerald
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#ea878f87888f989982839aaa87838b928d8685888b86c4898587"><span class="__cf_email__" data-cfemail="8ce1e9e1eee9feffe4e5fccce1e5edf4ebe0e3eeede0a2efe3e1">[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 the Reference to Mini-Options
The Exchange proposes to delete the outdated reference to mini-
options in the Fee Schedule. On December 20, 2018, the Securities and
Exchange Commission (``Commission'') approved the Exchange's Form 1
application to register as a national securities exchange under Section
6 of the Exchange Act.\4\ At that time, the Exchange established rule
text for mini-options. 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 the reference 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 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. 84891 (December 20,
2018), 83 FR 67421 (December 28, 2018) (File No. 10-233) (In the
Matter of the Application of MIAX EMERALD, LLC for Registration as a
National Securities Exchange; Findings, Opinion, and Order of the
Commission) (establishing rules for mini-options).
\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 the phrase
``including Mini Options,'' in the first sentence of in 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 the
[[Page 13935]]
outdated reference 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 reference to the Exchange's new
email domain and removing the outdated reference to mini-options that
are no longer offered by the Exchange. The purpose of deleting the
reference to mini-options is to remove obsolete language in the Fee
Schedule. 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 the reference 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 the outdated reference 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 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 the outdated reference to mini-options that are
no longer offered by the Exchange is to provide more clarity within the
Fee Schedule by deleting outdated 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
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) \12\ thereunder.
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; or (iii) become operative for 30
days after 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 \13\ and Rule 19b-4(f)(6) \14\ thereunder.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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) \15\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ 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 proposed
rule change may become operative immediately upon filing. The Exchange
states that the proposed changes are designed solely to add more
clarity to the Fee Schedule, and that competing exchanges have
similarly filed rule proposals to remove references to mini-options as
they no longer trade mini-options either. For these reasons, and
because the proposed rule change does not raise any novel legal or
regulatory issues, the Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest. Therefore, the Commission hereby waives the 30-day
operative delay and designates the proposed rule change to be operative
upon filing.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ 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
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Commission takes such action, the Commission shall institute
proceedings to determine whether the proposed rule 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#8dfff8e1e8a0eee2e0e0e8e3f9fecdfee8eea3eae2fb"><span class="__cf_email__" data-cfemail="4133342d246c222e2c2c242f3532013224226f262e37">[email protected]</span></a>. Please include
file number SR-EMERALD-2025-08 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-EMERALD-2025-08. 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-EMERALD-2025-08 and should
be submitted on or before April 17, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12) and (59).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025-05205 Filed 3-26-25; 8:45 am]
BILLING CODE 8011-01-P
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