[Federal Register Volume 78, Number 215 (Wednesday, November 6, 2013)]
[Notices]
[Pages 66796-66798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-26553]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70788; File No. SR-MIAX-2013-50]


Self-Regulatory Organizations: Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the MIAX Fee Schedule

October 31, 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 October 24, 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 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 
Statutory Basis for, the Proposed Rule Change

 1. Purpose
    The Exchange proposes to establish a $0.08 transaction fee for 
executions in standard option contracts and $0.008 transaction fee for 
Mini Option contracts for Market Makers \3\ registered on the Exchange.
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    \3\ Market Makers may be registered as a Lead Market Maker or as 
a Registered Market Maker. See Exchange Rule 600(b). Market Makers 
registered on the Exchange for purposes of the transaction fee and 
Section 1(a)(i) of the Fee Schedule include: (i) Registered Market 
Maker (``RMM''); (ii) Lead Market Maker (``LMM''); (iii) Directed 
Order Lead Market Maker (``DLMM''); (iv) Primary Lead Market Maker 
(``PLMM''); and Directed Order Primary Lead Market Maker 
(``DPLMM''). See MIAX Options Fee Schedule, Section 1(a)(i)--Market 
Maker Transaction Fees.
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    The current transaction fees for Market Makers are: (i) RMMs $0.05 
per contract for standard options or $0.005 for Mini Options; (ii) LMMs 
$0.05 per contract for standard options or $0.005 for Mini Options; 
(iii) DLMMs and PLMMs $0.05 per contract for standard options or $0.005 
for Mini Options; and (iv) DPLMMs $0.05 per contract for standard 
options or $0.005 for Mini Options.\4\ The proposal will increase the 
transaction fees for all Market Makers in both standard options and 
Mini Options. The Exchange proposes to implement the new transaction 
fees beginning November 1, 2013.
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    \4\ See MIAX Options Fee Schedule, Section 1(a)(i)--Market Maker 
Transaction Fees. See also Securities Exchange Act Release No. 70346 
(September 9, 2013), 78 FR 56762 (September 13, 2013) (SR-MIAX-2013-
41).
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    The previous transaction fees were designed both to enhance the 
Exchange's competitiveness with other option exchanges and to 
strengthen its market quality. Now that both intermarket and 
intramarket competition has been increased the

[[Page 66797]]

Exchange believes that it would be beneficial to marginally increase 
the transaction fees for all Market Makers to bring rates closer in 
line with transaction fees charged to other market participants that 
execute orders on the Exchange. The Exchange notes that Market Maker 
transactions fees will still remain lower than other market 
participants in order to continue to incent market participants and 
market makers on other exchanges to register as Market Makers on the 
Exchange. The Exchange believes that maintaining lower transaction fees 
for Market Makers registered on the Exchange promotes tighter bid-ask 
spreads by Market Makers, and increases the volume of transactions in 
order to allow the Exchange to compete more effectively with other 
options exchanges for such transactions.
 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 proposal is reasonable because it 
results in a marginal increase in transactions fees for all Market 
Makers on the Exchange to bring rates closer in line with transaction 
fees charged to other market participants that execute orders on the 
Exchange. The proposed fees are fair and equitable and not unreasonably 
discriminatory because they will apply equally to all Market Makers 
regardless of type. All Market Makers will be subject to the same 
transaction fee, and access to the Exchange is offered on terms that 
are not unfairly discriminatory. The registration as an Exchange Market 
Maker is equally available to all market participants and Electronic 
Exchange Members (``EEMs'') that satisfy the requirements of Rule 600. 
Any market participant may choose to satisfy the additional 
requirements and obligations of being a Market Maker in order to 
qualify for the transaction fee.
    The Exchange believes that maintaining lower transaction fees for 
Market Makers is equitable and not unfairly discriminatory because 
Market Markers on the Exchange have enhanced quoting obligations 
measured in both quantity (% time) and quality (minimum bid-ask 
differentials) that other market participants do not have. 
Additionally, maintaining lower transaction fees for Market Makers 
registered on the Exchange promotes tighter bid-ask spreads by Market 
Makers, and increases the volume of transactions in order to allow the 
Exchange to compete more effectively with other options exchanges for 
such transactions. To the extent that this purpose is achieved, all the 
Exchange's market participants should benefit from the improved market 
liquidity. Enhanced market quality and increased transaction volume 
that results from the increase in Market Maker activity on the Exchange 
will benefit all market participants and improve competition on the 
Exchange.

B. Self-Regulatory Organization's Statement on Burden on Competition

    MIAX 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 marginally 
increasing transactions fees for all Market Makers on the Exchange to 
bring rates closer in line with transaction fees charged to other 
market participants that execute orders on the 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 to attract order flow. 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 Market Makers, to provide liquidity, and to 
attract order flow to the Exchange. To the extent that this purpose is 
achieved, all the Exchange's market participants should benefit from 
the improved market liquidity. Enhanced market quality and increased 
transaction volume that results from the increase in Market Maker 
activity on the Exchange will benefit all market participants and 
improve competition on 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-2013-50 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-2013-50. 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

[[Page 66798]]

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-2013-50 and should be submitted on or before 
November 27, 2013

    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. 2013-26553 Filed 11-5-13; 8:45 am]
BILLING CODE 8011-01-P