[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)]
[Notices]
[Pages 81854-81856]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27741]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79301; File No. SR-MIAX-2016-42]


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 14, 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

[[Page 81855]]

on October 31, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 the MIAX Select Symbols \3\ section 
of the Priority Customer Rebate Program (the ``Program'') \4\ to delete 
the option class ``AA'' associated with the corporation Alcoa Inc. 
(``Alcoa''). Alcoa announced a corporate transaction that will result 
in the company's separation into two independent publicly-traded 
companies, Alcoa Corporation and Arconic, Inc. (``Arconic'').\5\ The 
separation is to become effective before the opening of the market on 
November 1, 2016 and is structured to be effected by means of a pro 
rata distribution by Alcoa of 80.1% of the outstanding common stock of 
Alcoa Corporation. Arconic will retain 19.9% of Alcoa Corporation 
common stock.\6\ In connection with this distribution, on November 1, 
2016, Alcoa will change its name to ``Arconic Inc.'' and its ticker 
symbol from ``AA'' to ``ARNC'' and Alcoa Corporation will trade as an 
independent company under the ticker symbol ``AA''.\7\ The Exchange has 
decided not to include the surviving entity Arconic in the list of MIAX 
Select Symbols. The Exchange now proposes to amend the Fee Schedule to 
delete the symbol ``AA'' in the list of MIAX Select Symbols to 
correspond with this change. The change is designed to ensure that 
there is no confusion amongst market participants and to clarify that 
Arconic will not become a MIAX Select Symbol. The proposed change is to 
become effective November 1, 2016.
---------------------------------------------------------------------------

    \3\ The term ``MIAX Select Symbols'' currently means options 
overlying AA, 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, XOP, and YHOO.
    \4\ See Securities Exchange Act Release Nos. 74291 (February 18, 
2015), 80 FR 9841 (February 24, 2015) (SR-MIAX-2015-09); 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); 71698 (March 12, 2014), 79 FR 15185 (March 18, 2014) (SR-MIAX-
2014-12); 71700 (March 12, 2014), 79 FR 15188 (March 18, 2014) (SR-
MIAX-2014-13); 71283 (January 10, 2014), 79 FR 2914 (January 16, 
2014) (SR-MIAX-2013-63); 71009 (December 6, 2013), 78 FR 75629 
(December 12, 2013) (SR-MIAX-2013-56).
    \5\ See ``Alcoa Inc. Board of Directors Approves Separation of 
Company, Separation Date to be November 1, 2016, Distribution Ratio 
of Alcoa Corporation Common Stock Set'', www.Business Wire.com, 
September 29, 2016, 04:40 p.m. Eastern Daylight Time; see also 
www.Alcoa.com under ``Investor News Releases''.
    \6\ Id.
    \7\ Id.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act \8\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \9\ in particular, in that 
it provides for the equitable allocation of reasonable dues, fees and 
other charges among members and issuers and other persons using any 
facility or system which the Exchange operates or controls. The 
Exchange also believes the proposal furthers the objectives of Section 
6(b)(5) of the Act \10\ in that it is designed to promote just and 
equitable principles of trade, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general to protect investors and the public interest and is not 
designed to permit unfair discrimination between customers, issuers, 
brokers and dealers.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the proposal to delete the ``AA'' symbol from the 
list of MIAX Select Symbols is consistent with Section 6(b)(4) of the 
Act because the proposed change will allow for continued benefit to 
investors by providing them an updated list of Select Symbols in the 
Fee Schedule.
    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 credit for 
transactions in the select symbols is reasonably designed because it 
will incent providers of Priority Customer 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 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.
    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 the select symbols. All similarly situated 
Priority Customer orders in the select symbols are subject to the same 
rebate schedule, and access to the Exchange is offered on terms that 
are not unfairly discriminatory. In addition, the Program is equitable 
and not unfairly discriminatory because, while only Priority Customer 
order flow qualifies for the Program, an increase in Priority Customer 
order flow will bring greater volume and liquidity, which benefit all 
market participants by providing more trading opportunities and tighter 
spreads.

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 Select Symbols in order to avoid potential confusion 
on the part of market participants.

[[Page 81856]]

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,\11\ and Rule 19b-4(f)(2) \12\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-2016-42 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-2016-42. 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-2016-42 and should be 
submitted on or before December 9, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2016-27741 Filed 11-17-16; 8:45 am]
 BILLING CODE 8011-01-P