[Federal Register Volume 81, Number 43 (Friday, March 4, 2016)]
[Notices]
[Pages 11614-11616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04708]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77251; File No. SR-MIAX-2016-06]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend the MIAX Options Fee Schedule
February 29, 2016.
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 26, 2016, 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 and II, 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 240.19bb-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 Fee
Schedule (``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 purpose of the proposed rule change is to broaden the
description of the information that is provided to users of the MIAX
Financial Information Exchange (``FIX'') Drop Copy Port to reflect
information regarding trade corrections and trade cancellations.
The FIX Drop Copy Port is a messaging interface that currently
provides a copy of real-time trade execution information through a FIX
Port \3\ to FIX Drop Copy Port users who subscribe to the service. FIX
Drop Copy Port users are those users who are designated by an
Electronic Exchange Member (``EEM'') \4\ to receive the information and
the information is restricted for use by the EEM only. The Exchange
assesses a monthly per port fee to users of the FIX Drop Copy Ports.
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\3\ A FIX Port is an interface with MIAX systems that enables
the Port user (typically an Electronic Exchange Member or a Market
Maker) to submit orders electronically to MIAX. The term
``Electronic Exchange Member'' means the holder of a Trading Permit
who is not a Market Maker. Electronic Exchange Members are deemed
``members'' under the Exchange Act. See Exchange Rule 100. The term
``Market Makers'' refers to ``Lead Market Makers,'' ``Primary Lead
Market Makers'' and ``Registered Market Makers'' collectively. A
Lead Market Maker is a Member registered with the Exchange for the
purpose of making markets in securities traded on the Exchange and
that is vested with the rights and responsibilities specified in
Chapter VI of these Rules with respect to Lead Market Makers. A
Primary Lead Market Maker is a Lead Market Maker appointed by the
Exchange to act as the Primary Lead Market Maker for the purpose of
making markets in securities traded on the Exchange. A Registered
Market Maker is a Member registered with the Exchange for the
purpose of making markets in securities traded on the Exchange, who
is not a Lead Market Maker. See Exchange Rule 100.
\4\ See id.
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The FIX Drop Copy Port currently provides the user with a copy of
real-time trade execution updates. The updates contain a copy of trade
execution messages on a low latency, real-time basis. A FIX Drop Copy
Port can be configured to monitor any number of FIX Ports used by that
EEM and a FIX Port user can have any number of FIX Drop Copy Ports. The
FIX Drop Copy Port sends messages containing reports of order
executions to the user based upon the group of FIX Ports that it is
configured to monitor.
The Exchange proposes to provide FIX Drop Copy Port users with
information regarding trade corrections and trade cancellations in
addition to the information regarding trade executions currently
received by such users. The purpose of including this additional
information in the FIX Drop Copy Port without charge is to enhance the
service provided by the Exchange by way of a value-added feature that
transmits trade correction and cancellation information directly to FIX
Drop Copy Port users. Moreover, this value-added feature enhances
transparency on the Exchange respecting the status of trade corrections
and cancellations submitted to the Exchange.
MIAX currently assesses a FIX Drop Copy Port fee of $500 per port
per month based on the number of FIX Drop Copy Ports to which a user
subscribes and the fee includes connectivity to the Exchange's primary,
secondary and disaster recovery data centers at no additional cost. The
Exchange is not proposing a change to the FIX Drop Copy Port fee.
The proposed change to the information provided to FIX Drop Copy
[[Page 11615]]
Port users will be implemented on a date announced by the Exchange by
Regulatory Circular.
2. Statutory Basis
MIAX believes that its proposed rule change is consistent with
Section 6(b) of the Act \5\ in general, and furthers the objectives of
Section 6(b)(5) of the Act \6\ 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.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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The proposed rule change is designed to protect investors and the
public interest and to promote just and equitable principles of trade
by adding transparency to the Exchange's marketplace through the new
information included in the FIX Drop Copy Port at no additional cost.
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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed enhancement of
services by the Exchange provided to its Members and others using its
facilities will not have an impact on competition. In fact, MIAX's
proposed additional information provided to users of the FIX Drop Copy
Port at no additional cost will benefit all Members who desire to use
such services.
The FIX Drop Copy Port will continue to be offered as a service for
FIX Drop Copy Port users at the same price, which is within the range
of prices for similar ports offered by other exchanges,\7\ and
therefore the Exchange believes that the current price of the port fee
does not impose a burden on competition.
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\7\ See NYSE Arca Options Fees and Charges, p. 12, and NYSE Amex
Options Fee Schedule, p .24. Both NYSE Arca Options and NYSE Amex
Options charge $500 per port per month for a drop copy port.
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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 nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the 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 from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of 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.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \10\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the
Commission to 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 proposal may become operative immediately upon filing. The
Commission believes that waiver of the operative delay is consistent
with the protection of investors and the public interest because it
would enable market participants to benefit from the additional
information provided in the FIX Drop Copy Port without undue delay.
Therefore, the Commission hereby waives the operative delay and
designates the proposal operative upon filing.\12\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 change 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-2016-06 on the subject line.
Paper Comments
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-2016-06. 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-2016-06, and should be
submitted on or before March 25, 2016.
[[Page 11616]]
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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-04708 Filed 3-3-16; 8:45 am]
BILLING CODE 8011-01-P