[Federal Register Volume 79, Number 207 (Monday, October 27, 2014)]
[Notices]
[Pages 63979-63981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-25431]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73395; File No. SR-MIAX-2014-53]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend the MIAX Top of Market (``ToM'') and AIS 
Data Feeds

October 21, 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 October 6, 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 the MIAX Top of Market 
(``ToM'') and AIS data feeds.

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 Top of Market (``ToM'') 
market data feed, the MIAX Express Interface (``MEI'') connectivity 
service,\3\ and Administrative Information Subscriber (``AIS'') market 
data feed. Specifically, the Exchange proposes removing messages 
related to administrative information and Liquidity Seeking Events 
(``LSE'') from ToM and the MEI Port connection, while also adding the 
information to the AIS data feed to the extent that it is not already 
included with AIS.
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    \3\ MIAX Express Interface is a connection to MIAX systems that 
enables Market Makers to submit electronic quotes to MIAX.
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    ToM provides market participants with a direct data feed that 
includes the Exchange's best bid and offer, with aggregate size, and 
last sale information, based on displayable order and quoting interest 
on the Exchange. The ToM data feed includes data that is identical to 
the data sent to the processor for the Options Price Regulatory 
Authority (``OPRA''). The ToM and OPRA data leave the MIAX system at 
the same time, as required under Section 5.2(c)(iii)(B) of the Limited 
Liability Company Agreement of the Options Price Reporting Authority 
LLC (the ``OPRA Plan''), which prohibits the dissemination of 
proprietary information on any more timely basis than the same 
information is furnished to the OPRA System for inclusion in OPRA's 
consolidated dissemination of options information. In addition to 
MIAX's best bid and offer, with aggregate size and last sale 
information, subscribers that currently subscribe to ToM also receive: 
opening imbalance condition information; opening routing information; 
Expanded
    Quote Range \4\ information, as provided in MIAX Rule 503(f)(5); 
Post-Halt Notification,\5\ as provided in MIAX Rule 504(d), and 
Liquidity Refresh,\6\ condition information, as provided in MIAX Rule 
515(c)(2). This additional information (the ``administrative 
information'') is included in the ToM feed as secondary information. 
The administrative information is also currently available to non-
Market Makers through the AIS data feed and MIAX Market Makers via 
connectivity with the MIAX Express Interface (``MEI''),\7\ for which 
they are assessed connectivity fees.
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    \4\ Where there is an imbalance at the price at which the 
maximum number of contracts can trade that is also at or within the 
highest valid width quote bid and lowest valid width quote offer, 
the System will calculate an Expanded Quote Range (``EQR''). The EQR 
will be recalculated any time a Route Timer or Imbalance Timer 
expires if material conditions of the market (imbalance size, ABBO 
price or size, liquidity price or size, etc.) have changed during 
the timer. Once calculated, the EQR will represent the limits of the 
range in which transactions may occur during the opening process. 
See Exchange Rule 503(f)(5).
    \5\ After the Exchange has determined to end a trading system 
halt, the System will broadcast to subscribers of the Exchange's 
data feeds, a Post-Halt Notification. See Exchange Rule 504(d).
    \6\ If a Market Maker quote was all or part of the MIAX Best Bid 
or Offer (``MBBO'') and the Market Maker's quote was exhausted by 
the partial execution of the initiating order, the System will pause 
the market for a time period not to exceed one second to allow 
additional orders or quotes refreshing the liquidity at the MBBO to 
be received (``liquidity refresh pause''). See Exchange Rule 
515(c)(2).
    \7\ MIAX Express Interface is a connection to MIAX systems that 
enables Market Makers to submit electronic quotes to MIAX.
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    The Exchange proposes to remove all the secondary administrative 
information including LSE related information from the ToM data feed 
and from the MEI Port connectivity service, with the exception of the 
Post-Halt Notification. The secondary administrative information and

[[Page 63980]]

Liquidity Seeking Event data being removed from ToM and the MEI Port 
includes: (i) Opening imbalance condition information; (ii) opening 
routing information; (iii) Expanded Quote Range information, as 
provided in MIAX Rule 503(f)(5); (iv) Liquidity Refresh messages, as 
provided in MIAX Rule 514(c)(2); (v) Route Timer information, as 
provided in MIAX Rule 529; (vi) PRIME related auction messages, as 
provided in MIAX Rule 515A; and (vii) any other similar timer or 
auction related messages. ToM subscribers will continue to receive the 
direct data that includes the Exchange's best bid and offer, with 
aggregate size, and last sale information based on displayable order 
and quoting interest on the Exchange, and the Post-Halt Notification. 
The ToM data feed includes data that is identical to the data sent to 
the processor for the Options Price Regulatory Authority (``OPRA''). 
Both Full Service and Limited Service MEI Ports will continue to 
provide Market Makers with the ability to send quotes and purge 
messages in the same manner as they do currently. The Exchange also 
proposes to amend the AIS data feed to specifically include all the 
secondary administrative information and LSE related information that 
is being removed from ToM and the MEI Port connection. The Exchange 
notes that most of this administrative information is already included 
in the AIS data feed, as described above. In order to receive the 
secondary administrative information and LSE related messages, the ToM 
subscribers and users of the MEI Port connectivity service will have to 
connect to the Exchange with an AIS data feed. The Exchange notes that 
ToM subscribers may receive the AIS data feed at no additional cost.\8\
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    \8\ See SR-MIAX-2014-51.
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    Because of the technology changes associated with this rule 
proposal, the Exchange will announce the implementation date of the 
proposal in a Regulatory Circular to be published no later than 90 days 
after the publication of the approval order in the Federal Register. 
The implementation date will be no later than 90 days following 
publication of the Regulatory Circular announcing publication of the 
approval order in the Federal Register.
2. Statutory Basis
    The Exchange believes that its proposed rule change is consistent 
with Section 6(b) \9\ of the Act in general, and furthers the 
objectives of Section 6(b)(5) \10\ of the Act 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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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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    The proposed changes to the market data products are designed to 
increase the efficient use of connectivity bandwidth between market 
participants and the Exchange in a manner that promotes just and 
equitable principles of trade, fosters cooperation and coordination 
with persons engaged in facilitating transactions in securities, 
removes impediments to and perfect the mechanisms of a free and open 
market and a national market system. The Exchange believes that the 
changes will enhance the quality and usefulness of ToM, the MEI Ports, 
and AIS market data product to the benefit of all market participants 
that subscribe to such products.
    The ToM market data product is designed to promote just and 
equitable principles of trade by providing all subscribers with top of 
market data that should enable them to make informed decisions on 
trading in MIAX options by using the ToM data to assess current market 
conditions that directly affect such decisions. The market data 
provided by ToM and AIS, and the connectivity of MEI, removes 
impediments to, and is designed to further perfect, the mechanisms of a 
free and open market and a national market system by making the MIAX 
market more transparent and accessible to market participants making 
routing decisions concerning their options orders. The ToM market data 
product is also designed to protect investors and the public interest 
by providing data to subscribers that is already currently available on 
other exchanges and will enable MIAX to compete with such other 
exchanges, thereby offering market participants with additional data in 
order to seek the market center with the best price and the most 
liquidity on which to execute their transactions, all to the benefit of 
investors and the public interest, and to the marketplace as a whole.

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. On the contrary, the Exchange 
believes that the changes to the market data products will enhance 
competition in the U.S. options markets by enhancing the quality and 
usefulness of a market data product that is similar to that which is 
currently provided on other options exchanges.\11\
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    \11\ The Exchange notes that the ToM market data product 
competes with similar products offered by other markets such as 
NASDAQ OMX PHLX, LLC (``PHLX'') and the International Stock Exchange 
LLC (``ISE''). For example, PHLX and ISE offer market data products 
that are similar to ToM: data feeds that show the top of the market 
entitled Top of PHLX Options (``TOPO'') and the ISE TOP Quote Feed. 
See e.g., Securities Exchange Act Release No. 60459 (August 7, 
2009), 74 FR 41466 (August 17, 2009) (SR-Phlx-2009-54) (Order 
Approving a Proposed Rule Change to Establish Fees for the Top of 
PHLX Options Direct Data Feed Product).
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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 foregoing 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 after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) \13\ 
thereunder.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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. 
The Exchange has satisfied this requirement.
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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 should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing,

[[Page 63981]]

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-2014-53 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-2014-53. 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-2014-53 and should be 
submitted on or before November 17, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-25431 Filed 10-24-14; 8:45 am]
BILLING CODE 8011-01-P