Notice2025-06907
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 208, MIAX Sapphire Billing System
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
April 23, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 77 (Wednesday, April 23, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 77 (Wednesday, April 23, 2025)]
[Notices]
[Pages 17090-17092]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-06907]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-102880; File No. SR-SAPPHIRE-2025-16]
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Exchange Rule 208, MIAX Sapphire Billing System
April 17, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on April 3, 2025, MIAX Sapphire, LLC (``MIAX
Sapphire'' 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Exchange Rule 208, MIAX Sapphire
Billing System, to enable the Exchange, upon request by the Member \3\
and approval by the Exchange, to permit an Exchange Member to provide
alternative payment instructions for purposes of the Exchange's direct
debit process for the collection of fees and other monies due and owing
to the Exchange.
---------------------------------------------------------------------------
\3\ The term ``Member'' means an individual or organization that
is registered with the Exchange pursuant to Chapter II of the
Exchange's Rules for purposes of trading on the Exchange as an
``Electronic Exchange Member'' or ``Market Maker.'' Members are
deemed ``members'' under the Exchange Act. See Exchange Rule 100.
---------------------------------------------------------------------------
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-sapphire/rule-filings">https://www.miaxglobal.com/markets/us-options/miax-sapphire/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 Exchange Rule 208, MIAX Sapphire
Billing System, to enable the Exchange, upon request by the Member and
approval by the Exchange, to permit a Member to provide alternative
payment instructions (i.e., other than the designated Clearing Member's
\4\ account number at the Clearing Corporation,\5\ as currently
required by Exchange Rule 208) for purposes of the Exchange's direct
debit process for the collection of fees and other monies due and owing
to the Exchange.
---------------------------------------------------------------------------
\4\ The term ``Clearing Member'' means a Member that has been
admitted to membership in the Clearing Corporation pursuant to the
provisions of the rules of the Clearing Corporation. See Exchange
Rule 100.
\5\ The term ``Clearing Corporation'' means The Options Clearing
Corporation. Id.
---------------------------------------------------------------------------
Currently, Exchange Rule 208 provides that every Member must
designate a Clearing Member for the payment of the Member's Exchange
invoices and vendor invoices for Exchange-related services assessed by
the Exchange by means of the Exchange's MIAX Sapphire Billing System.
The designated Clearing Member shall pay to the Exchange on a timely
basis the full amount of each monthly Exchange invoice. Such payments
shall be drafted by the Exchange against the designated Clearing
Member's account at the Clearing Corporation.
The proposed rule change would provide that the Exchange will, upon
request, waive the requirement for a Member to designate a Clearing
Member and instead require such Member to provide alternative payment
instructions as agreed to by the Exchange for purposes of permitting
the Exchange to debit certain fees, as determined by the Exchange;
provided, however, that the Exchange reserves the right to require any
such Member to designate a Clearing Member for such purposes as set
forth above if the Exchange encounters repeated failed collection
attempts using such alternative payment instructions.
The purpose of the proposed change is to provide the Exchange with
the flexibility to agree to an alternative payment arrangement with a
Member if such Member so requests, as the Exchange understands that
certain Members may have an operational burden associated with
remitting payment to the Exchange through a Clearing Member's account
with the Clearing Corporation. Under the proposed rule change, any such
alternative payment instructions must: (i) be agreed to by the Exchange
for a specified fee; and (ii) permit the Exchange to initiate the debit
of any fees and other monies due and owing to the Exchange in a manner
similar to the current requirement with respect to a Clearing Member's
account with the Clearing Corporation (i.e., a direct debit process).
The requirement that such alternative payment instructions must be
agreed to by the Exchange is intended to be an objective standard, and
the Exchange's ability to agree to such alternative payment
instructions would be exercised uniformly with
[[Page 17091]]
respect to any Member that so requests to the extent such alternative
payment instructions reasonably appear to permit the Exchange to
utilize a direct debit process for a certain fee.
The Exchange notes that several exchanges provide for substantively
similar alternative payment provisions in their billing rules for
equity members that may want to pay exchange fees via an alternative
method.\6\
---------------------------------------------------------------------------
\6\ See, e.g., MEMX LLC (``MEMX'') Rule 15.3; NYSE American LLC
(``NYSE American'') Rule 41(a); NYSE Arca, Inc. (``NYSE Arca'') Rule
3.7.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\7\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\8\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
The Exchange also believes the proposed rule change is consistent with
the Section 6(b)(5) \9\ requirement that the rules of an exchange not
be designed to permit unfair discrimination between customers, issuers,
brokers, or dealers. Additionally, the Exchange believes the proposed
rule change is consistent with the Section 6(b)(1) \10\ requirement
that it be so organized and have the capacity to be able to carry out
the purposes of the Act and to comply, and to enforce compliance by its
Members and persons associated with its Members, with the provisions of
the Act, the rules and regulations thereunder, and the Exchange's
Rules.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ Id.
\10\ 15 U.S.C. 78(b)(1).
---------------------------------------------------------------------------
The Exchange believes the proposed change to enable the Exchange,
upon request, to permit a Member to provide alternative payment
instructions (i.e., other than the Clearing Member's account number
with the Clearing Corporation, as currently required by Exchange Rule
208) for purposes of the Exchange's direct debit collection process is
appropriate and consistent with Section 6(b)(1) of the Act,\11\ as such
change would provide the Exchange with the flexibility to agree to an
alternative payment arrangement with a Member that has an operational
burden associated with remitting payment to the Exchange through a
Clearing Member's account with the Clearing Corporation, thereby
enabling it to be so organized and have the capacity to be able to
carry out the purposes of the Act and to comply, and to enforce
compliance by its Members and persons associated with its Members, with
the Exchange's Rules relating to payment of fees and other monies due
and owing to the Exchange. The Exchange also believes that reserving
the right to revert to the general rule (i.e., to require a Clearing
Member's account number with the Clearing Corporation for direct debit
purposes) with respect to any such Member if the Exchange encounters
repeated failed collection attempts using such alternative payment
instructions is appropriately designed to ensure that it is able to
collect the fees and other monies due and owing to the Exchange through
its standard collection process if warranted, and is thus consistent
with the Act for similar reasons.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78(b)(1).
---------------------------------------------------------------------------
Additionally, as this proposed change is designed to give the
Exchange and its Members flexibility regarding their payment
arrangements while providing a safeguard by which the Exchange may
revert to its standard collection process, the Exchange believes it
would 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 mechanism of a free and open market and a national market
system, and, in general, protect investors and the public interest.
This proposed change is also equitable and not unfairly discriminatory
because it is based on objective standards and would apply equally to
all Members for registration as such, as described above. The proposed
change is also based on billing and collection rules in place at
several equity exchanges, which provide for substantively similar
alternative payment provisions in their billing rules for equity
members that may want to pay exchange fees via an alternative
method.\12\
---------------------------------------------------------------------------
\12\ See supra note 6.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposal will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed change to enable
the Exchange to agree to alternative payment instructions for the
Exchange's direct debit collection process would apply equally to all
Members as the opportunity to request that the Exchange agree to
alternative payment instructions will be available to any such Member
and the Exchange's ability to agree to such alternative payment
instructions would be exercised uniformly on an objective basis.
The Exchange does not believe such proposed changes would impair
the ability of Members or competing order execution venues to maintain
their competitive standing in the financial markets, and therefore, the
Exchange does not believe the proposal will impose any burden on
intermarket competition. Moreover, because the proposed changes would
apply equally to all Members, the Exchange does not believe the
proposal would impose any burden on intramarket competition.
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
Pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) \14\ thereunder, the Exchange has designated this proposal as
one that effects a change that: (i) does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
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 upon filing. In the filing, the
Exchange stated that the proposed change is based on
[[Page 17092]]
billing and collection rules in place at several equity exchanges,
which provide for substantively similar alternative payment provisions
in their billing rules for equity members that may want to pay exchange
fees via an alternative method.\17\ The proposed change does not raise
any novel issues and provides the Exchange with the flexibility to
agree to an alternative payment arrangement with a Member, while
reserving the right to revert to the general rule (i.e., to require a
Clearing Member's account number with the Clearing Corporation for
direct debit purposes) if the Exchange encounters repeated failed
collection attempts using such alternative payment instructions, and
therefore, waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest. Accordingly, the
Commission hereby waives the operative delay and designates the
proposal operative upon filing.\18\
---------------------------------------------------------------------------
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ See supra note 6.
\18\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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.
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#b3c1c6dfd69ed0dcdeded6ddc7c0f3c0d6d09dd4dcc5"><span class="__cf_email__" data-cfemail="ef9d9a838ac28c8082828a819b9caf9c8a8cc1888099">[email protected]</span></a>. Please include
file number SR-SAPPHIRE-2025-16 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-SAPPHIRE-2025-16. 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-SAPPHIRE-2025-16 and should
be submitted on or before May 14, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
---------------------------------------------------------------------------
\19\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-06907 Filed 4-22-25; 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 April 23, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.