[Federal Register Volume 81, Number 111 (Thursday, June 9, 2016)]
[Notices]
[Pages 37219-37220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13612]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77989; File No. SR-MIAX-2016-13]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
June 3, 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 June 1, 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, 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fee Schedule to offer a
Technical Support Request Fee to both Members and Non-Members.
The Exchange has an infrastructure comprised of low latency and
ultra-low latency proximity solutions in several offsite data center
locales offering universal access to all Exchange services via a single
common connection across a variety of high speed network interfaces.
The Exchange offers connectivity in and between its data center
facilities and supports direct attachment of all network equipment or
direct attached host systems of both Member and Non-Member users of the
Exchange. Member and Non-Member users of the Exchange are strongly
encouraged to establish connectivity to at least two data centers to
minimize the possibility of service disruption.
The Exchange proposes to add new Section (5)(f) to the Fee Schedule
to establish a Member and Non-Member Technical Support Request Fee.
Specifically, the Exchange proposes to charge Members and Non-Members
an hourly fee in the event that such Member or Non-Member requests the
Exchange to use the Exchange's on-site data center personnel to provide
technical support at any of the Exchange's data centers. The Exchange
proposes to assess Members and Non-Members that request MIAX technical
support at any of the MIAX data centers a fee of $200 per hour for such
technical support.
The purpose of the proposed rule change is to make the Exchange's
on-site data center personnel available, for a fee, to Members and Non-
Members when assisting with troubleshooting that requires a physical
on-site presence.
The proposed Technical Support Request fee is scheduled to become
effective June 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 \3\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \4\ 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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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed new service is consistent
with Section 6(b)(5) of the Act \5\ in that it is fair, equitable and
not unreasonably discriminatory, because it is available to all Members
and Non-Members for the
[[Page 37220]]
same fee. Moreover, the proposed fee is reasonable because other
exchanges charge for similar services at their data centers.\6\
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\5\ 15 U.S.C. 78f(b)(5).
\6\ See Chicago Board Options Exchange, Incorporated (``CBOE'')
Fees Schedule, p. 9. CBOE charges $100 per hour for technical
support outside normal hours and for after-hours technician services
with a four hour minimum required. See also NYSE Amex Options
(``Amex'') Fee Schedule, Section V(B) and NYSE Arca Options
(``Arca'') Fees and Charges, p. 18. Both Amex and Arca charge $100
per half hour for ``Hot Hands Services,'' which consists of allowing
Amex and Arca Users to use Amex or Arca on-site data center
personnel to maintain User equipment, support network
troubleshooting, rack and stack, power recycling and install and
document cable. See also NASDAQ PHLX LLC (``Phlx'') Pricing
Schedule, Section X(d). Phlx charges $150 per hour for ``Remote
Hands Service'' and $250 per hour plus materials if necessary for
``Power Consulting Services.''
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Additionally, Members and Non-Members are not required to use the
service but instead it is offered as a convenience to all Members and
Non-Members. The proposed fee is reasonably designed because it will
permit both Members and Non-Members to request the use of the
Exchange's on-site data center personnel as technical support and as a
convenience that is equally available to them.
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
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 technical support services at a Member or Non-
Member's request will benefit all who use such services. As stated
above, other exchanges charge for similar services at their data
centers.\7\ The Exchange's hourly rate for such services is within the
range of prices for similar services offered by other exchanges, and
therefore the Exchange believes that the proposed hourly rate for
technical support does not impose a burden on competition.\8\
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\7\ Id.
\8\ See id.
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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 and rebates
to remain competitive with other exchanges and to attract order flow to
the Exchange. The Exchange believes that the proposed rule change
reflects this competitive environment because the hourly rate is
competitive with the rates offered by other exchanges for similar
services.\9\
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\9\ See supra note 6.
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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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\10\ and Rule 19b-4(f)(2) \11\ 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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\10\ 15 U.S.C. 78s(b)(3)(A)(ii).
\11\ 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-2016-13 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-2016-13. 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-2016-13, and should be
submitted on or beforeJune 30, 2016 June 30, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-13612 Filed 6-8-16; 8:45 am]
BILLING CODE 8011-01-P