[Federal Register Volume 83, Number 38 (Monday, February 26, 2018)]
[Notices]
[Pages 8304-8305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03786]



[[Page 8304]]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82740; File No. SR-MIAX-2018-04]


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

February 20, 2018.
    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 February 9, 2018, Miami International 
Securities Exchange, LLC (``MIAX'' or ``MIAX Options'' 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 (``Fee Schedule'') to change the application of a fee waiver 
relating to certain market data feed products.
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings, 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 change the 
application of a fee waiver relating to certain market data feed 
products offered by the Exchange--namely, the Exchange's Administrative 
Information Subscriber (``AIS'') market data feed, and the Exchange's 
Complex Top of Market (``cToM'') market data feed.
    When the Exchange first launched trading in complex orders in 
October 2016, the Exchange began offering its cToM market data feed.\3\ 
The cToM market data feed is complex order specific and is available to 
those who wish to subscribe to it. cToM provides subscribers with the 
same information as the ToM market data product (for the simple 
market), but it relates to the complex market of orders on the Strategy 
Book (i.e., the Exchange's best bid and offer for a complex strategy, 
known as the ``cMBBO,'' with aggregate size, based on displayable order 
and quoting interest in the complex strategy on the Exchange).\4\ 
Additionally, cToM provides subscribers with the identification of the 
complex strategies currently trading on MIAX Options; complex strategy 
last sale information; and the status of securities underlying the 
complex strategy (e.g., halted, open, or resumed). Since the launch of 
complex orders on the Exchange and the availability of cToM, and 
continuing through the present time, the Exchange has made the cToM 
market data feed available to subscribers free of charge.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 79146 (October 24, 
2016), 81 FR 75171 (October 28, 2016) (SR-MIAX-2016-36).
    \4\ For a complete description of ToM, see Securities Exchange 
Act Release No. 69007 (February 28, 2013), 78 FR 14617 (March 6, 
2013) (SR-MIAX-2013-05).
---------------------------------------------------------------------------

    The Exchange began offering its AIS market data feed product in 
April 2013.\5\ The AIS market data feed currently includes 
administrative information for both simple and complex orders. The AIS 
market data feed includes, among other information, opening imbalance 
condition information; opening routing information; expanded quote 
range information; post-halt notification; and liquidity refresh 
condition information. The Exchange assesses a monthly fee of $1,250.00 
for all AIS Internal Distributors and a monthly fee of $1,750.00 for 
all AIS External Distributors. However, the monthly fee for 
Distributors of AIS is waived if the Distributor also subscribes to ToM 
or cToM. Presently, the Exchange assesses a monthly fee of $1,250.00 
for ToM Internal Distributors and a monthly fee of $1,750.00 for ToM 
External Distributors. As stated previously, the Exchange does not 
presently assess any fee on Internal or External Distributors of cToM.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 69320 (April 5, 
2013), 78 FR 21661 (April 11, 2013) (SR-MIAX-2013-13).
---------------------------------------------------------------------------

    As a result of the AIS fee waiver provision, a subscriber who only 
subscribes to AIS will be charged the AIS monthly fee ($1,250.00 for 
Internal Distributors and $1,750.00 for External Distributors). A 
subscriber who subscribes to both ToM and AIS will be charged the ToM 
monthly fee ($1,250.00 for Internal Distributors and $1,750.00 for 
External Distributors). However, a subscriber who subscribes to both 
cToM and AIS will be charged no fees.
    The Exchange did not intend for subscribers to receive the AIS feed 
for free as a result of receiving the cToM feed for free. Thus, until 
such time as the Exchange adopts a fee for cToM, the Exchange proposes 
to eliminate the fee waiver for subscribers to receive the AIS feed for 
free solely by receiving the cToM feed.
    The Exchange is not proposing to modify any other aspect of either 
the AIS market data feed product or the cToM market data feed product. 
The Exchange is solely eliminating the fee waiver for a subscriber of 
cToM, which is currently free, to also receive a subscription to AIS 
for free. Accordingly, effective with this change, a subscriber who 
wishes to subscribe to both cToM and AIS will be charged the AIS 
monthly fee ($1,250.00 for Internal Distributors and $1,750.00 for 
External Distributors).
    The Exchange initially filed the proposal on January 30, 2018 (SR-
MIAX-2018-03). That filing was withdrawn and replaced with the current 
filing (SR-MIAX-2018-04).
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) \6\ of the Act in general, and furthers 
the objectives of Section 6(b)(4) \7\ of the Act, in that it is 
designed to provide for an equitable allocation of reasonable dues, 
fees and other charges among Exchange Members \8\ and other persons 
using its

[[Page 8305]]

facilities, because it applies equally to all Members and any persons 
using the facilities or services of the Exchange. The Exchange also 
believes that the proposal furthers the objectives of Section 6(b)(5) 
\9\ 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, and it is not designed to permit 
unfair discrimination among customers, brokers, or dealers.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
    \8\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associated with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed amendment to the 
application of a fee waiver relating to certain market data feed 
products offered by the Exchange--namely, the Exchange's AIS market 
data feed, and the Exchange's cToM market data feed--is reasonable, 
equitable, and not unfairly discriminatory. The proposal to eliminate 
the ability of a subscriber to subscribe to cToM (for free), to also 
subscribe to the AIS feed (for free), is designed to promote just and 
equitable principles of trade by providing MIAX Options participants 
with access to the same market data products with a reasonably designed 
fee structure and fee incentives. Because there is no charge to 
subscribe to the cToM market data feed, the Exchange believes that a 
subscription to cToM should not entitle a subscriber to receive for 
free, another market data feed product which, when subscribed to 
without the cToM market data feed, is fee liable. Furthermore, the 
proposed changes to the application of the fee waiver are fair and 
equitable and not unreasonably discriminatory because they apply 
equally to all MIAX Options participants as the market data feeds are 
available for purchase for all MIAX Options participants, and access to 
such market data is offered on terms that are not unfairly 
discriminatory.

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. The Exchange believes that the 
proposed rule change would promote transparency by providing MIAX 
Options participants with access to the same market data products with 
a reasonably designed fee structure and fee incentives. Because there 
is no charge to subscribe to the cToM market data feed, the Exchange 
believes that a subscription to cToM should not entitle a subscriber to 
receive for free, another market data feed product which, when 
subscribed to without the cToM market data feed, is fee liable. 
Additionally, respecting intra-market competition, the value-added 
features relating to complex orders in the [sic] either the AIS feed or 
the cToM market data product are available to all subscribers, thus 
providing all subscribers to the data products with an even playing 
field with respect to information and access to trade complex orders on 
MIAX Options. 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 fee waivers to remain competitive with other exchanges and 
to attract order flow to 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,\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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 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-2018-04 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-2018-04. 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 website (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 website 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. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-MIAX-2018-04 and should be submitted on 
or before March 19, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

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

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-03786 Filed 2-23-18; 8:45 am]
 BILLING CODE 8011-01-P