[Federal Register Volume 80, Number 129 (Tuesday, July 7, 2015)]
[Notices]
[Pages 38782-38783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16545]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75335; File No. SR-MIAX-2015-43]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
June 30, 2015.
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 June 24, 2015, 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 the
Substance of the Proposed Rule Change
The Exchange is filing a proposal to amend the MIAX Options Fee
Schedule (the ``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
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the MIAX Options Fee Schedule (the
``Fee Schedule'') to modify the fees for FIX Ports. Specifically, the
Exchange proposes to adopt the following fees for FIX Ports: (i) $500
per month for the first FIX Port; (ii) $300 per month for each FIX Port
2 through 5; and (iii) $100 per month for each additional FIX Port over
5.
Currently, MIAX assesses monthly FIX Port fees on Members based
upon the number of FIX Ports used by the Member submitting orders to
the Exchange. The Exchange currently assesses a fee of $250 per month
for the first FIX Port, $150 per month for each FIX Port 2 through 5;
and $50 per month for each additional FIX Port over 5. The FIX Ports
include access to MIAX's primary and secondary data centers and its
disaster recovery center.
The Exchange notes that another competing exchange charges
substantially more for the use of similar ports.\3\ The Exchange
established the current lower rates in order to encourage additional
market participants to become Members of the Exchange and use the
service. Now that the Exchange has grown its market share and
membership base, the Exchange proposes to modify its fees charged to
Members for use of FIX Ports in an effort to increase the Exchange's
revenues from non-transaction fee sources and also more closely align
the fees with the rates charged by another competing options exchange.
Accordingly, the Exchange proposes to increase the fees charged to
Members for use of FIX Ports. Specifically, the Exchange proposes to:
(i) increase the fee for the first FIX Port, from $250 to $500 per
month; (ii) increase the fee for each FIX Port 2 through 5, from $150
to $300 per month; and (iii) increase the fee for each FIX Port over 5,
from $50 to $100 per month.
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\3\ See NASDAQ OMX PHLX LLC (``PHLX'') Pricing Schedule, Section
VII. PHLX assesses members an Order Entry Port Fee of $650 per month
per mnemonic.
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The Exchange proposes to implement the fee changes beginning July
1, 2015.
2. Statutory Basis
The Exchange believes that its proposal to amend its fee schedule
is consistent with Section 6(b) of the Act \4\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \5\ in particular, in that
it is an equitable allocation of reasonable fees and other charges.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed fees are reasonable,
equitable and not unfairly discriminatory because Members are free to
add and remove FIX Ports and will only be charged for the amount of FIX
Ports that they desire to use. The proposed fee is fair and
[[Page 38783]]
equitable and not unreasonably discriminatory because it applies
equally to all Members regardless of type. All similarly situated
Members, with the same number of FIX Ports, will be subject to the same
fee, and access to the Exchange is offered on terms that are not
unfairly discriminatory. The Exchange believes that the proposed fees
are reasonable in that the rates are within the range of that charged
by another competing options exchange.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended. The
Exchange believes that the proposal increases both intermarket and
intramarket competition by increasing FIX Port fees for Members on the
Exchange in the range of comparable fees on another exchange. 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 in order to attract market participants to use
its services. The Exchange believes that the proposal reflects this
competitive environment because it increases the Exchange's fees in a
manner that continues to encourage market participants to register as
Members on the Exchange, to provide liquidity, and to attract order
flow. To the extent that this purpose is achieved, all the Exchange's
market participants should benefit from the improved market liquidity.
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.\6\ 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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\6\ 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-2015-43 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-MIAX-2015-43. 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 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-2015-43, and should be
submitted on or before July 28, 2015.
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\7\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-16545 Filed 7-6-15; 8:45 am]
BILLING CODE 8011-01-P