[Federal Register Volume 80, Number 248 (Monday, December 28, 2015)]
[Notices]
[Pages 80830-80832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32525]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76716; File No. SR-MIAX-2015-72]


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

December 21, 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 December 11, 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 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 its Fee Schedule to: (i) Reduce the 
transaction fee for options overlying EEM, GLD, IWM, QQQ, and SPY 
executed by non-MIAX Market Makers; and (ii) modify the transaction fee 
for options overlying EEM, GLD, IWM, QQQ and SPY assessed to non-MIAX 
Market Makers that achieve certain Priority Customer Rebate Program \3\ 
volume tiers.\4\
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    \3\ See Fee Schedule, Section (1)(a)(ii).
    \4\ See Securities Act Release No. 73850 (December 16, 2014), 79 
FR 76424 (December 22, 2014) (SR-MIAX-2014-63).
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    The Exchange proposes to decrease the per contract transaction fee 
for non-MIAX Market Makers for options overlying EEM, GLD, IWM, QQQ, 
and SPY from $0.55 to $0.50. The Exchange notes that the transaction 
fees for non-MIAX Market Makers in all other options classes will not 
change and thus will continue to be charged the same amount for non-
Penny Pilot options classes and Penny Pilot options classes as they do 
today.
    The Exchange proposes to continue to offer non-MIAX Market Makers 
the opportunity to reduce transaction fees by $0.02 per contract in 
standard options in EEM, GLD, IWM, QQQ, and SPY. Specifically, any 
Member or its affiliates of at least 75% common ownership between the 
firms as reflected on each firm's Form BD, Schedule A, that qualifies 
for Priority Customer Rebate Program volume tiers 3 or 4 and is a non-
MIAX Market Maker will be assessed a reduced transaction fee of $0.48 
per contract for standard options in EEM, GLD, IWM, QQQ, and SPY. The 
Exchange believes that these incentives will encourage non-MIAX Market 
Makers to transact a greater number of orders on the Exchange.
    The Exchange believes that the proposed fee reduction for non-MIAX 
Market Makers in EEM, GLD, IWM, QQQ, and SPY will benefit these market 
participants and encourage them to send greater order flow to the 
Exchange.
    The proposed changes to the Fee Schedule will be operative as of 
January 1, 2016.
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 and issuers and other persons using its 
facilities.
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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's proposed decrease in transaction fees for non-MIAX 
Market Makers in EEM, GLD, IWM, QQQ and SPY is reasonable because the 
lower fees should encourage these market participants to send 
additional order flow to the Exchange and the additional order flow 
should benefit all market participants. The instant proposal is 
equitable and not unfairly discriminatory because the fee applies 
equally to all non-MIAX Market Makers. The Exchange's continued higher 
transaction fee for non-MIAX Market Makers compared to that for MIAX 
Market Markers is equitable and not unfairly discriminatory because 
MIAX Market Markers have enhanced quoting obligations measured in both 
quantity

[[Page 80831]]

(as a percentage of time) and quality (minimum bid-ask differentials) 
that other market participants do not have.\7\ In addition, charging 
non-members higher transaction fees is a common practice amongst 
exchanges because Members are subject to other fees and dues associated 
with their membership to the Exchange that do not apply to non-members. 
The proposed differentiation between non-MIAX Market Makers and MIAX 
Market Makers recognizes the differing contributions made to the 
liquidity and trading environment on the Exchange by these market 
participants. Maintaining a lower transaction fee for MIAX Market 
Makers should encourage market participants and market makers on other 
exchanges to register as Market Makers on the Exchange, which will 
enhance the quality of quoting and should increase the volume of 
contracts traded in options listed on MIAX. 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.
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    \7\ See MIAX Rules 603, 604, 605.
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    The Exchange's proposal to continue to offer non-MIAX Market Makers 
the opportunity to reduce transaction fees by $0.02 per contract in 
standard options in EEM, GLD, IWM, QQQ, and SPY, provided certain 
criteria are met, is reasonable because the Exchange desires to offer 
all such market participants an opportunity to lower their transaction 
fees. This proposal is equitable and not unfairly discriminatory 
because the Exchange will offer this opportunity to all non-MIAX Market 
Makers in EEM, GLD, IWM, QQQ, and SPY.
    The Exchange believes that establishing different pricing for EEM, 
GLD, IWM, and SPY options is reasonable, equitable, and not unfairly 
discriminatory because EEM, GLD, IWM, QQQ, and SPY options are more 
liquid options as compared to others and the Exchange wants to 
encourage market participants to become members and register as MIAX 
Market Makers.

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 Exchange 
believes the proposal is consistent with robust competition by 
increasing the intermarket competition for order flow from market 
participants. The Exchange believes that charging non-members higher 
transaction fees is appropriate and is a common practice amongst 
exchanges, because Members are subject to other fees and dues 
associated with their Exchange that do not apply to non-members. The 
proposed differentiation as between non-MIAX Market Makers and MIAX 
Market Makers recognizes the differing contributions made to the 
liquidity and trading environment on the Exchange by these market 
participants. Maintaining a lower transaction fee for MIAX Market 
Makers should encourage market participants and market makers on other 
exchanges to register as MIAX Market Makers, which will enhance the 
quality of quoting and increase the volume of contracts traded in 
options listed on MIAX. Enhanced market quality and increased 
transaction volume that results from the anticipated increase in order 
flow submitted to the Exchange will benefit all market participants and 
improve competition 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.

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,\8\ and Rule 19b-4(f)(2) \9\ 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 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-2015-72 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.

All submissions should refer to File Number SR-MIAX-2015-72. 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 Section, 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 will also 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-2015-72 and should be 
submitted on or before January 19, 2016.


[[Page 80832]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-32525 Filed 12-24-15; 8:45 am]
 BILLING CODE 8011-01-P