Notice2025-06251
Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Provide Temporary Discounts to Current Subscribers to the MIAX Options Liquidity Taker Event Reports
Primary source
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Published
April 14, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 70 (Monday, April 14, 2025)</title>
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[Federal Register Volume 90, Number 70 (Monday, April 14, 2025)]
[Notices]
[Pages 15607-15609]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-06251]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-102783; File No. SR-MIAX-2025-13]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the Fee Schedule To Provide Temporary
Discounts to Current Subscribers to the MIAX Options Liquidity Taker
Event Reports
April 8, 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 25, 2025, 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, II, and III 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 is filing a proposal to amend the MIAX Options
Exchange Fee Schedule (the ``Fee Schedule'') to provide temporary
discounts to current (described below) monthly and annual subscribers
to the Liquidity Taker Event Report--Simple Orders, Liquidity Taker
Event Report--Complex Orders, and Liquidity Taker Event Report--Resting
Simple Orders.\3\
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\3\ See Exchange Rule 531(a)-(c) for complete descriptions of
each of the Liquidity Taker Event Reports.
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The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings">https://www.miaxglobal.com/markets/us-options/all-options-exchanges/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 Section 7, Reports, of the Fee
Schedule to provide temporary discounts to current monthly and annual
subscribers to the Liquidity Taker Event Report--Simple Orders (the
``Simple Order Report''), Liquidity Taker Event Report--Complex Orders
(the ``Complex Order Report''), and Liquidity Taker Event Report--
Resting Simple Orders (the ``Resting Simple Order Report'').\4\
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\4\ See Fee Schedule, Section 7). The Simple Order Report,
Complex Order Report and Resting Simple Order Report are
collectively referred to herein as the ``Reports.''
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In general, each of the Reports is a daily report that provides a
Member \5\ (``Recipient Member'') with its liquidity response time
details for executions and contra-side responses of an order (or
Complex Order,\6\ as the case may be) resting on the Simple Order Book
(or Strategy Book, as the case may be),\7\ where that Recipient Member
attempted to execute against such resting order \8\ within a certain
timeframe.\9\
[[Page 15608]]
Specifically, depending on the Report, it includes data for executions
and contra-side responses that occurred within either 200 or 400
microseconds of the time a resting order was received by the
Exchange.\10\ The content of each of the Reports is specific to the
Recipient Member and each of the Reports does not include any
information related to any Member other than the Recipient Member. Each
of the Reports is available for purchase by Exchange Members on a
voluntary basis.
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\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\ In sum, a ``Complex Order'' is ``any order involving the
concurrent purchase and/or sale of two or more different options in
the same underlying security (the `legs' or `components' of the
complex order), for the same account, in a conforming or non-
conforming ratio. . . .'' See Exchange Rule 518(a).
\7\ The ``Simple Order Book'' is the Exchange's regular
electronic book of orders and quotes. See Exchange Rule 518(a)(15).
The ``Strategy Book'' is the Exchange's electronic book of complex
orders and complex quotes. See Exchange Rule 518(a)(17). The
Strategy Book is organized by Complex Strategy in that individual
orders for a defined Complex Strategy are organized together in a
book that is separate from the orders for a different Complex
Strategy. The term ``Complex Strategy'' means ``a particular
combination of components and their ratios to one another. New
complex strategies can be created as the result of the receipt of a
complex order or by the Exchange for a complex strategy that is not
currently in the System.'' See Exchange Rule 518(a)(6).
\8\ Only displayed orders are included in the Reports. The
Exchange notes that it does not currently offer any non-displayed
orders types on its options trading platform.
\9\ A complete description of each of the Reports can be found
in the prior rule filings to adopt the Reports. See Securities
Exchange Act Release Nos. 92081 (June 1, 2021), 86 FR 30344 (June 7,
2021) (SR-MIAX-2021-21) (Notice of Filing and Immediate
Effectiveness of a Proposed Rule Change to Amend Rule 531, Reports
and Market Data Products, to Adopt the Liquidity Taker Event
Report); 94135 (February 2, 2022), 87 FR 7217 (February 8, 2022)
(SR-MIAX-2022-06) (Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change to Amend Rule 531 to Provide for the New
Liquidity Taker Event Report--Complex Orders); 96839 (February 8,
2023), 88 FR 9550 (February 14, 2023) (SR-MIAX-2023-02) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to
Amend Rule 531 to Provide for the New Liquidity Taker Event Report--
Resting Simple Orders).
\10\ Id.
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Members may purchase each of the Reports on a monthly or annual
(12-month) basis. The Exchange assesses fees of $4,000 per month and
$24,000 per year for a 12-month subscription for each of the Simple
Order Report and Complex Order Report. The Exchange assesses fees of
$2,000 per month and $12,000 per year for a 12-month subscription for
the Resting Simple Order Report. The Exchange also offers a discounted
fee of $40,000 per year for Members that purchase annual subscriptions
to both the Simple Order Report and Complex Order Report.
In April 2025, the Exchange plans to perform necessary system
upgrades and maintenance that could impact the timeframes (i.e., 200 or
400 microseconds) within which each Report includes data for executions
and contra-side responses that occurred within either 200 or 400
microseconds of the time a resting order was received by the Exchange.
Specifically, the Exchange will upgrade the 10 gigabit (``G'') ultra-
low latency (``ULL'') extranet switches and related network analytics
infrastructure.\11\ This could potentially impact the quality of data
included in each Report.
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\11\ See MIAX Options Exchange--Planned network refresh for the
10G ULL extranet, dated November 7, 2024, available at MIAX Options
Exchange--Planned network refresh for the 10G ULL extranet [verbar]
MIAX; MIAX Options Exchange--Updated target dates and parallel
duration period for planned network refresh for the 10G ULL
Extranet, dated December 13, 2024, available at MIAX Options
Exchange--Updated target dates and parallel duration period for
planned network refresh for the 10G ULL Extranet [verbar] MIAX; and
MIAX Options Exchange--Reminder: Network Refresh for the 10G ULL
Extranet, dated March 5, 2025, available at MIAX Options Exchange--
Reminder: Network Refresh for the 10G ULL Extranet [verbar] MIAX.
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In an abundance of caution and to provide just customer service,
the Exchange proposes to provide existing subscribers to each of the
Reports discounted pricing for the month of April 2025 to accommodate
Members that receive Reports that may be impacted by the necessary
system upgrades and maintenance that is to occur in April 2025.
Specifically, subscribers with an active subscription as of March 31,
2025 to the Simple Order Report, Complex Order Report, and/or Resting
Simple Order Report will receive the below discounts for the month of
April 2025 only. Monthly subscribers would receive 50% off the
applicable monthly fee for the April 2025 subscription. 12-month
subscribers would receive an additional month at the end of existing
12-month subscription for no additional charge. The above discounts
would be available to active subscribers for April 2025 only. The
Exchange anticipates that each of the Reports' timeframes that may be
impacted by the necessary system upgrades and maintenance would
normalize by May 2025 when the upgrades are complete.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\12\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\13\ in particular, in that it
is not designed to permit unfair discrimination among customers,
brokers, or dealers. The Exchange also believes that its proposal is
consistent with Section 6(b)(4) of the Act \14\ because it represents
an equitable allocation of reasonable dues, fees and other charges
among market participants using any facility or system which the
Exchange operates or controls.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
\14\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed discounts for the Reports
are equitable because the discounts are being provided to existing
subscribers whose Reports may be affected by the upgrade of the 10G ULL
extranet switches and related network analytics infrastructure planned
for April 2025.\15\ The Exchange proposes the discounts to provide just
customer service and in an abundance of caution in case subscribers
find the data in the April 2025 Reports to be impacted by the planned
necessary upgrades.
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\15\ See supra note 11.
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The proposed discount is also not unfairly discriminatory because
limiting it to existing subscribers is to ensure that those who receive
the Reports pursuant to a monthly or annual subscription receive a
discount to accommodate any potential disruptions. New subscribers that
seek to subscribe to the Reports in April 2025 are free to wait until
May 2025 to avoid the potential impact, as the Reports are purchased on
a voluntary basis. The Exchange anticipates that the Reports'
timeframes that may be impacted by the necessary system upgrades and
maintenance would normalize by May 2025 when the upgrades are complete
and the discounts would have expired.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
Intra-Market Competition
The Exchange believes that the proposed changes would not impose
any unnecessary or inappropriate burden on intra-market competition
because the proposed changes are to ensure that those who receive the
Reports pursuant to a monthly or annual subscription receive a discount
to accommodate any potential disruptions, provide just customer
service, and in an abundance of caution should an existing subscriber's
Reports be affected by the upgrade to the 10G ULL extranet switches and
related network analytics infrastructure.
Inter-Market Competition
The Exchange believes that the proposed changes would not impose
any unnecessary or inappropriate burden on inter-market competition
because competitors are free to modify their own fees in response and
the Exchange believes that the degree to which fee changes in this
market may impose any burden on competition is extremely limited. As
noted above, the purchase of the Reports is entirely optional and is
not necessary for trading purposes. Additionally, the Exchange believes
that the proposed changes would not impose any burden on inter-market
competition because the Exchange operates in a highly competitive
environment, and its ability to price the Reports is constrained by
competition among exchanges that offer similar data products to their
customers, which the Exchange must consider in its pricing discipline
in order to compete for the subscribers to the Reports.
[[Page 15609]]
Providing the proposed discounts is not only to provide just customer
services, but also to ensure that the Exchange's pricing is equitable
and competitive.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\16\ and Rule 19b-4(f)(2) \17\ thereunder.
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 should be approved or disapproved.
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\16\ 15 U.S.C. 78s(b)(3)(A)(ii).
\17\ 17 CFR 240.19b-4(f)(2).
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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#8bf9fee7eea6e8e4e6e6eee5fff8cbf8eee8a5ece4fd"><span class="__cf_email__" data-cfemail="9fedeaf3fab2fcf0f2f2faf1ebecdfecfafcb1f8f0e9">[email protected]</span></a>. Please include
file number SR-MIAX-2025-13 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-2025-13. 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-2025-13 and should be
submitted on or before May 5, 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).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-06251 Filed 4-11-25; 8:45 am]
BILLING CODE 8011-01-P
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