[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)]
[Notices]
[Pages 63953-63955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26831]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84734; File No. SR-MIAX-2018-37]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Exchange Rule 510, Minimum Price
Variations and Minimum Trading Increments, To Adopt Interpretations and
Policies .03
December 6, 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 November 28, 2018, Miami International
Securities Exchange, LLC (``MIAX Options'' or ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') a proposed rule
change as described in Items I and II 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 relocate Rule 404,
Interpretations and Policies .11 (``SPIKES Index Options'') to Rule
510, Minimum Price Variations and Minimum Trading Increments, new
Interpretations and Policies .03, and to make a non-substantive
conforming change to a cross-reference in the rule.
The text of the proposed rule change is available on the Exchange's
website at http://www.miaxoptions.com/rule-filings/ at MIAX Options'
principal office, and at the Commission's Public Reference Room.
[[Page 63954]]
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 relocate existing Exchange Rule 404,
Interpretations and Policies .11, SPIKES Index Options, to Rule 510
(``Minimum Price Variations and Minimum Trading Increments''),
Interpretations and Policies .03. This proposal seeks to better
organize the rules of the Exchange in order to make the rules easier to
read and to ensure that this rule is located in the appropriate
chapter. The Exchange also proposes to make a non-substantive
conforming change to a cross-reference in the rule, in order to reflect
the relocation of the rule to a more suitable chapter in the Exchange's
rulebook. Specifically, the Exchange proposes to change the current
language which states that ``[n]otwithstanding any other provision of
this Rule 404, the minimum trading increment for options on the SPIKES
Index shall be as follows: (1) If the options series is trading at less
than $3.00, five (5) cents; and (2) if the options series is trading at
$3.00 or higher, ten (10) cents,'' to now read ``[n]otwithstanding any
other provision of this Rule 510, the minimum trading increment for
options on the SPIKES Index shall be as follows: (1) If the options
series is trading at less than $3.00, five (5) cents; and (2) if the
options series is trading at $3.00 or higher, ten (10) cents,'' in
order to update the cross-reference in the rule.
The Exchange notes that the changes proposed herein are non-
substantive rule changes, and do not modify the application of the rule
which the Exchange proposes to relocate. The Exchange believes that by
now relocating this rule, and making a non-substantive conforming
change to a cross-reference within the rule, it will relocate the rule
into a more appropriate chapter in the Exchange's rulebook.
2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act \3\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \4\ 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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\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
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The Exchange believes the proposed change promotes just and
equitable principles of trade and removes impediments to and perfects
the mechanism of a free and open market and a national market system
because the proposed rule change improves the way the Exchange's
rulebook is organized, making it easier to read, and avoids confusion
by relocating a rule which is more appropriately located in another
chapter of the Exchange's rulebook; and makes a non-substantive
conforming change to a cross-reference in the rule, in order to reflect
the relocation of the rule to a more suitable chapter in the Exchange's
rulebook, therefore, helping market participants to better understand
the rules of the Exchange. The Exchange notes that the proposed change
does not alter the application of the rule. As such, the proposed
amendment would foster cooperation and coordination with persons
engaged in facilitating transactions in securities and would remove
impediments to and perfect the mechanism of a free and open market and
a national exchange system. In particular, the Exchange believes that
the proposed change will provide greater clarity to Members \5\ and the
public regarding the Exchange's Rules. It is in the public interest for
rules to be accurate and concise so as to eliminate the potential for
confusion.
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\5\ 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.
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B. Self-Regulatory Organization's Statement on Burden on Competition
MIAX Options does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change
will have no impact on competition as it is not designed to address any
competitive issues but rather is designed to add additional clarity to
existing rules by making a non-substantive change to relocate the rule
to a different chapter in the Exchange's rulebook, and by making a
conforming change to an existing cross-reference in the rule, in order
to reflect the relocation of the rule to a more suitable chapter in the
Exchange's rulebook.
The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition as the Rules apply equally
to all Exchange Members.
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 from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \6\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\7\
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and the text of 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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A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \9\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Exchange states that
the waiver will allow the Exchange to immediately improve the
organization of its rulebook and avoid confusion for market
participants reading the rules of
[[Page 63955]]
the Exchange. The Commission believes that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest. Accordingly, the Commission hereby waives the
operative delay and designates the proposed rule change as operative
upon filing.\10\
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\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
\10\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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, 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-2018-37 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-2018-37. 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-2018-37 and should be submitted on
or before January 2, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26831 Filed 12-11-18; 8:45 am]
BILLING CODE 8011-01-P