[Federal Register Volume 79, Number 29 (Wednesday, February 12, 2014)]
[Notices]
[Pages 8519-8520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-03007]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71502; File No. SR-MIAX-2014-06]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
February 6, 2014.
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 January 29, 2014, 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 its Fee Schedule.
The text of the proposed rule change is 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to establish a $0.30 transaction fee for
executions in standard option contracts and $0.03 transaction fee for
Mini Option contracts for non-member broker-dealers on the Exchange.
The current transaction fees for non-member broker dealers on the
Exchange are $0.45 per contract for standard options or $0.045 for Mini
Options.\3\ The Exchange proposes lowering the non-member broker-dealer
transaction fees to bring the fee rates in line with several competing
exchanges.\4\ The proposed transaction fees are designed both to
enhance the Exchange's competitiveness with other option exchanges and
to strengthen its market quality. The Exchange believes that the new
transaction fees will increase both intermarket and intramarket
competition by incenting broker-dealers on other exchanges to direct
additional orders to the Exchange to allow the Exchange to compete more
effectively with other options exchanges for such transactions. To the
extent that this purpose is achieved, the Exchange believes that other
market participants on the Exchange will benefit from the additional
liquidity and trading opportunities available from such orders.
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\3\ See MIAX Options Fee Schedule, Section 1(a)(ii)--Other
Market Participant Transaction Fees.
\4\ See NYSE Amex Options Fee Schedule, p. 4 (Tiered rates
starting at $0.32 per contract for electronic broker-dealers); ISE
Schedule of Fees, p. 6 ($0.30 per contract for broker-dealers in
Non-Select Symbols).
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The Exchange proposes to implement the new transaction fees
beginning February 1, 2014.
2. Statutory Basis
The Exchange believes that its proposal to amend its fee schedule
is consistent with Section 6(b) of the Act \5\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \6\ in particular, in that
it is an equitable allocation of reasonable fees and other charges
among Exchange members.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposal is fair, equitable and not
unreasonably discriminatory. The
[[Page 8520]]
proposal is reasonable because it results in a decrease in non-member
broker dealer transactions fees for all non-member broker dealers on
the Exchange in order to enable the Exchange to improve its overall
competitiveness and strengthen its market quality for all market
participants. The proposed fees are fair and equitable and not
unreasonably discriminatory because they will apply equally to all non-
member broker-dealers. All non-member broker-dealers will be subject to
the same transaction fee, and access to the Exchange is offered on
terms that are not unfairly discriminatory.
The decrease in transaction fees for non-member broker-dealers
should incent broker-dealers on other exchanges to direct additional
orders to the Exchange to allow the Exchange to compete more
effectively with other options exchanges for such transactions. To the
extent that this purpose is achieved, the Exchange believes that other
market participants on the Exchange will benefit from the additional
liquidity and trading opportunities available from such orders.
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. The Exchange believes that the
proposal increases both intermarket and intramarket competition by
incenting broker-dealers on other exchanges to direct additional orders
to the Exchange to allow the Exchange to compete more effectively with
other options exchanges for such transactions. To the extent that this
purpose is achieved, the Exchange believes that other market
participants on the Exchange will benefit from the additional liquidity
and trading opportunities available from such orders. The Exchange
notes that it operates in a highly competitive market in which market
participants can readily favor competing venues if they deem fee levels
at a particular venue to be excessive. In such an environment, the
Exchange must continually adjust its fees to remain competitive with
other exchanges and to attract order flow. The Exchange believes that
the proposal reflects this competitive environment because it reduces
the Exchange's fees in a manner that encourages non-member broker-
dealers to provide liquidity and to attract order flow to the Exchange.
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.\7\ 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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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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
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-2014-06 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 20549-1090.
All submissions should refer to File Number SR-MIAX-2014-06. 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 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 the 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-2014-06 and should be
submitted on or before March 5, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03007 Filed 2-11-14; 8:45 am]
BILLING CODE 8011-01-P