[Federal Register Volume 78, Number 44 (Wednesday, March 6, 2013)]
[Notices]
[Pages 14617-14619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-05166]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69007; File No. SR-MIAX-2013-05]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Establish the MIAX Top of Market (``ToM'') Data Product
February 28, 2013.
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 February 15, 2013, 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 establish a market data
product related to the trading of standardized options on MIAX.
Specifically, the Exchange is proposing to provide the MIAX Top of
Market (``ToM''), a direct data feed that features the Exchange's best
bid and offer, with aggregate size and last sale information on the
MIAX system.
The text of the proposed rule change is also available on the
Exchange's Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, 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 purpose of the proposed rule change is to establish the ToM
market data product. ToM provides a direct data feed that includes the
Exchange's best bid and offer, with aggregate size, based on
displayable order and quoting interest on the Exchange. The ToM data
feed includes data that is identical to the data sent to the processor
for the Options Price Reporting Authority (``OPRA''). The ToM and OPRA
data leave the MIAX system at the same time, as required under Section
5.2(c)(iii)(B) of the Limited Liability Company Agreement of the
Options Price Reporting Authority LLC (the ``OPRA Plan''), which
prohibits the dissemination of proprietary information on any more
timely basis than the same information is furnished to the OPRA System
for inclusion in OPRA's consolidated dissemination of options
information.
In addition to MIAX's best bid and offer, with aggregate size and
last sale information, subscribers to ToM will also receive: Opening
imbalance condition information; opening and intra-day routing
information; Expanded
[[Page 14618]]
Quote Range \3\ information; Post-Halt Notification \4\ and Liquidity
Refresh \5\ condition information. MIAX Market Makers receive this
additional information by way of connectivity with the MIAX Express
Interface (``MEI''); \6\ those who are not MIAX Market Makers must
subscribe to ToM in order to receive the additional information.
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\3\ Where there is an imbalance at the price at which the
maximum number of contracts can trade that is also at or within the
highest valid width quote bid and lowest valid width quote offer,
the System will calculate an Expanded Quote Range (``EQR''). The EQR
will be recalculated any time a Route Timer or Imbalance Timer
expires if material conditions of the market (imbalance size, ABBO
price or size, liquidity price or size, etc.) have changed during
the timer. Once calculated, the EQR will represent the limits of the
range in which transactions may occur during the opening process.
See Exchange Rule 503(f)(5).
\4\ After the Exchange has determined to end a trading system
halt, the System will broadcast to subscribers of the Exchange's
data feeds a Post-Halt Notification. See Exchange Rule 504(d).
\5\ If a Market Maker quote was all or part of the MIAX Best Bid
or Offer (``MBBO'') and the Market Maker's quote was exhausted by
the partial execution of the initiating order, the System will pause
the market for a time period not to exceed one second to allow
additional orders or quotes refreshing the liquidity at the MBBO to
be received (``liquidity refresh pause''). See Exchange Rule
515(c)(1)(iii)(A).
\6\ MEI is a connection to MIAX systems that enables Market
Makers to submit electronic quotes to MIAX.
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The Exchange expects to file with the Commission to assess fees
applicable to ToM. Such fees will not be assessed until the first full
calendar month during which MIAX lists and trades options overlying at
least 100 underlying securities. Once MIAX begins listing and trading
options overlying at least 100 underlying securities, and subject to
filing with the Commission, MIAX will assess market data fees
applicable to ToM.
2. Statutory Basis
MIAX believes that its proposed rule change is consistent with
Section 6(b) \7\ of the Act in general, and furthers the objectives of
Section 6(b)(5) \8\ of the Act 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 facilitating transactions in
securities, to remove impediments to and perfect the mechanisms of a
free and open market and a national market system and, in general, to
protect investors and the public interest, and it is not designed to
permit unfair discrimination among customers, brokers, or dealers.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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The ToM product is designed to promote just and equitable
principles of trade by providing all subscribers with top of market
data that should enable them to make informed decisions on trading in
MIAX options by using the ToM data to assess current market conditions
that directly affect such decisions. The market data provided by ToM
removes impediments to, and is designed to further perfect, the
mechanisms of a free and open market and a national market system by
making the MIAX market more transparent and accessible to market
participants making routing decisions concerning their options orders.
The ToM market data product is also designed to protect investors
and the public interest by providing data to subscribers that is
already currently available on other exchanges \9\ and will enable MIAX
to compete with such other exchanges, thereby offering market
participants with additional data in order to seek the market center
with the best price and the most liquidity on which to execute their
transactions, all to the benefit of investors and the public interest,
and to the marketplace as a whole.
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\9\ See Securities Exchange Act Release No. 60459 (August 7,
2009), 74 FR 41466 (August 17, 2009) (SR-Phlx-2009-54) (Order
Approving a Proposed Rule Change to Establish Fees for the Top of
PHLX Options Direct Data Feed Product).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
On the contrary, the Exchange believes that the ToM market data
product will enhance competition in the U.S. options markets by
providing similar data to that which is currently provided on another
options exchange.\10\
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\10\ Id.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments were neither 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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) \12\
thereunder.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\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 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 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
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-MIAX-2013-05 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549.
All submissions should refer to File Number SR-MIAX-2013-05. 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 Web site (http://www.sec.gov/rules/sro.shtml). 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
[[Page 14619]]
public in accordance with the provisions of 5 U.S.C. 552, will be
available for Web site 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 10:00 a.m. and 3:00 p.m. Copies of
such filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-MIAX-2013-05 and should be submitted on or before March
27, 2013.
For the Commission, by the Division of Trading and Markets, pursuant
to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-05166 Filed 3-5-13; 8:45 am]
BILLING CODE 8011-01-P