[Federal Register Volume 82, Number 215 (Wednesday, November 8, 2017)]
[Notices]
[Pages 51897-51899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24252]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81998; File No. SR-MIAX-2017-45]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
November 2, 2017.
Pursuant to 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 October 30, 2017, Miami International Securities Exchange LLC
(``MIAX Options'' or ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') the 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 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/rule-filings, 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 list of MIAX Select Symbols \3\
contained in the Priority Customer Rebate Program (the ``Program'') \4\
of the Exchange's Fee Schedule to 1. delete the symbol ``SUNE''
associated with SunEdison, Inc. (``SunEdison'') and 2. replace the
symbol ``BBRY'' with ``BB'' associated with BlackBerry Limited
(``BlackBerry'').
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\3\ The term ``MIAX Select Symbols'' means options overlying
AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT,
CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM,
GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK,
NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, SUNE, T,
TSLA, USO, VALE, VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM,
and XOP.
\4\ See section 1)a)iii) of the Fee Schedule for a complete
description of the Program.
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The Exchange initially created the list of MIAX Select Symbols on
March 1, 2014,\5\ and has added and removed option classes from that
list since that
[[Page 51898]]
time.\6\ On April 26, 2016, the New York Stock Exchange announced that
it was delisting SunEdison since it was no longer suitable for listing.
SunEdison had announced on the same day that it and certain of its
domestic and international subsidiaries had filed voluntary petitions
for reorganization under Chapter 11 of the U.S. Bankruptcy Code.\7\
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\5\ See Securities Exchange Act Release No. 71700 (March 12,
2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
\6\ See Securities Exchange Act Release Nos. 8109 (June 26,
2017), 82 FR 29962 (June 30, 2017) (SR-MIAX-2017-29); 79301
(November 14, 2016), 81 FR 81854 (November 18, 2016) (SR-MIAX-2016-
42); 74291(February 18, 2015), 80 FR 9841 (February 24, 2015) (SR-
MIAX-2015-09); 74288 (February 18, 2015), 80 FR 9837 (February 24,
2015) (SR-MIAX-2015-08); 73328 (October 9, 2014), 79 FR 62230
(October 16, 2014) (SR-MIAX-2014-50); 72567 (July 8, 2014), 79 FR
40818 (July 14, 2014) (SR-MIAX-2014-34); 72356 (June 10, 2014), 79
FR 34384 (June 16, 2014) (SR-MIAX-2014-26); 71700 (March 12, 2014),
79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
\7\ See the press release located at http://ir.theice.com/press/press-releases/nyse-regulation/2016/042116suspensionrelease.
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As a result, the Exchange delisted SunEdison options. Accordingly,
the Exchange is amending its Fee Schedule to delete the symbol SUNE
from the list of MIAX Select Symbols contained in the Program to
correspond with the delisting. This amendment is intended to eliminate
any potential confusion and to make it clear to market participants
that SunEdison will not be a MIAX Select Symbol contained in the
Program as SunEdison options are no longer listed on the Exchange.
BlackBerry recently announced that it was transferring its listing
from the Nasdaq Global Select Market to the New York Stock Exchange
and, as a result, BlackBerry changed its symbol from ``BBRY'' and is
now trading under the new symbol ``BB'' effective October 16, 2017.\8\
The Exchange is amending its Fee Schedule to change BlackBerry's symbol
in the MIAX Select Symbols from ``BBRY'' to ``BB'' to correspond with
this change. This amendment is designed to ensure that there is no
confusion amongst market participants that BlackBerry, under its new
ticker, will continue to remain in the MIAX Selected Symbols.
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\8\ See the press release located at https://us.blackberry.com/company/newsroom/press?id=21b4315.
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2. Statutory Basis
The Exchange believes that its proposal to amend its fee schedule
is consistent with Section 6(b) of the Act \9\ in general, and furthers
the objectives of Section 6(b)(4) of the Act,\10\ in that it is an
equitable allocation of reasonable fees and other charges among
Exchange members and other persons using its facilities, and 6(b)(5) of
the Act,\11\ 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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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4).
\11\ 15 U.S.C. 78f(b)(1) and (b)(5).
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In particular, the proposal to delete the symbol SUNE from the list
of MIAX Select Symbols contained in the Program and to change the
symbol from BBRY to BB is consistent with Section 6(b)(4) of the Act
because the proposed changes will allow for continued benefit to
investors by providing them an updated list of MIAX Select Symbols
contained in the Program on the Fee Schedule. In particular, the
proposal to change the BlackBerry symbol to its new designation is
consistent with the Act because the proposed change is merely updating
the corresponding symbol to allow for BlackBerry to continue to remain
in the MIAX Select Symbols.
The Exchange believes that the proposal to amend an option class
that qualifies for the credit for transactions in MIAX Select Symbols
is fair, equitable and not unreasonably discriminatory. The Exchange
believes that the Program itself is reasonably designed because it
incentivizes providers of Priority Customer \12\ order flow to send
that Priority Customer order flow to the Exchange in order to receive a
credit in a manner that enables the Exchange to improve its overall
competitiveness and strengthen its market quality for all market
participants. The Program, which provides increased incentives in
certain tiers in high volume select symbols, is also reasonably
designed to increase the competitiveness of the Exchange with other
options exchanges that also offer increased incentives to higher volume
symbols.
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\12\ The term ``Priority Customer'' means a person or entity
that 1. is not a broker or dealer in securities, and 2. does not
place more than 390 orders in listed options per day on average
during a calendar month for its own beneficial account(s). See
Exchange Rule 100.
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The Exchange also believes that its proposal is consistent with
Section 6(b)(5) of the Act because it will apply equally to all
Priority Customer orders in MIAX Select Symbols in the Program. All
similarly situated Priority Customer orders in MIAX Select Symbols are
subject to the same rebate schedule, and access to the Exchange is
offered on terms that are not unfairly discriminatory.
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. The proposed
rule change is a not a competitive filing but rather is designed to
update the list of MIAX Select Symbols contained in the Program in
order to avoid potential confusion on the part of market participants.
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,\13\ and Rule 19b-4(f)(2) \14\ thereunder.
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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\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 17 CFR 240.19b-4(f)(2).
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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-2017-45 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.
[[Page 51899]]
All submissions should refer to File Number SR-MIAX-2017-45. 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. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-MIAX-2017-45 and should be
submitted on or before November 29, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24252 Filed 11-7-17; 8:45 am]
BILLING CODE 8011-01-P