[Federal Register Volume 84, Number 161 (Tuesday, August 20, 2019)]
[Notices]
[Pages 43226-43231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17858]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86663; File No. SR-MIAX-2019-34]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
August 14, 2019.
Pursuant to the provisions of Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
[[Page 43227]]
thereunder,\2\ notice is hereby given that on July 31, 2019, 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, 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'').
While changes to the Fee Schedule pursuant to this proposal are
effective upon filing, the Exchange has designated these changes to be
operative on August 1, 2019.
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 the Fee Schedule to (i) increase the
amount of the per contract credit assessable to Agency Orders (defined
below) in a PRIME Auction (``PRIME Agency Order Credit'') for Members
\3\ in Tiers 2, 3 and 4 of the Priority Customer Rebate Program
(``PCRP'') \4\ and (ii) lower the separate, additional PRIME Agency
Order Credit that is also available for Priority Customer \5\ PRIME
Agency Orders executed over a monthly threshold of 0.60% of the Options
Clearing Corporation (``OCC'') customer volume for Members who are in
PCRP Tier 3 or higher.
---------------------------------------------------------------------------
\3\ 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.
\4\ Under the PCRP, MIAX credits each Member the per contract
amount resulting from each Priority Customer order transmitted by
that Member which is executed electronically on the Exchange in all
multiply-listed option classes (excluding, in simple or complex as
applicable, QCC and cQCC Orders, mini-options, Priority Customer-to-
Priority Customer Orders, C2C and cC2C Orders, PRIME and cPRIME AOC
Responses, PRIME and cPRIME Contra-side Orders, PRIME and cPRIME
Orders for which both the Agency and Contra-side Order are Priority
Customers, and executions related to contracts that are routed to
one or more exchanges in connection with the Options Order
Protection and Locked/Crossed Market Plan referenced in Exchange
Rule 1400), provided the Member meets certain percentage thresholds
in a month as described in the PCRP table. See Fee Schedule, Section
(1)(a)iii.
\5\ ``Priority Customer'' means a person or entity that (i) is
not a broker or dealer in securities, and (ii) does not place more
than 390 orders in listed options per day on average during a
calendar month for its own beneficial accounts(s). A ``Priority
Customer Order'' means an order for the account of a Priority
Customer. See Exchange Rule 100.
---------------------------------------------------------------------------
Background
PRIME is a process by which a Member may electronically submit for
execution an order it represents as agent (an ``Agency Order'') against
principal interest and/or solicited interest. The Member that submits
the Agency Order (``Initiating Member'') agrees to guarantee the
execution of the Agency Order by submitting a contra-side order
representing principal interest or solicited interest (``Contra-Side
Order''). When the Exchange receives a properly designated Agency Order
for Auction processing, a request for response (``RFR'') detailing the
option, side, size and initiating price is broadcasted to MIAX
participants up to an optional designated limit price. Members may
submit responses to the RFR, which can be either an Auction or Cancel
(``AOC'') order or an AOC eQuote. The PRIME mechanism is used for
orders on the Exchange's Simple Order Book.\6\ The Exchange notes that
for Complex Orders \7\ on the Strategy Book,\8\ the Exchange's cPRIME
\9\ mechanism operates in the same manner for processing and execution
of cPRIME Orders that is used for PRIME Orders on the Simple Order
Book. The Exchange is not proposing to amend the PCRP rebates for
cPRIME orders at this time.
---------------------------------------------------------------------------
\6\ The ``Simple Order Book'' is the Exchange's regular
electronic book of orders and quotes. See Exchange Rule 518(a)(15).
\7\ A ``complex order'' is any order involving the concurrent
purchase and/or sale of two or more different options in the same
underlying security (the ``legs'' or ``components'' of the complex
order), for the same account, in a ratio that is equal to or greater
than one-to-three (.333) and less than or equal to three-to-one
(3.00) and for the purposes of executing a particular investment
strategy. Mini-options may only be part of a complex order that
includes other mini-options. Only those complex orders in the
classes designated by the Exchange and communicated to Members via
Regulatory Circular with no more than the applicable number of legs,
as determined by the Exchange on a class-by-class basis and
communicated to Members via Regulatory Circular, are eligible for
processing. See Exchange Rule 518(a)(5).
\8\ The ``Strategy Book'' is the Exchange's electronic book of
complex orders and complex quotes. See Exchange Rule 518(a)(17).
\9\ ``cPRIME'' is the process by which a Member may
electronically submit a ``cPRIME Order'' (as defined in Rule
518(b)(7)) it represents as agent (a ``cPRIME Agency Order'')
against principal or solicited interest for execution (a ``cPRIME
Auction''), subject to the restrictions set forth in Exchange Rule
515A, Interpretation and Policy .12. See Exchange Rule 515A.
---------------------------------------------------------------------------
The Priority Customer rebate payment is calculated from the first
executed contract at the applicable threshold per contract credit with
rebate payments made at the highest achieved volume tier for each
contract traded in that month. The percentage thresholds are calculated
based on the percentage of national customer volume in multiply-listed
options classes listed on MIAX entered and executed over the course of
the month (excluding QCC and cQCC Orders, Priority Customer-to-Priority
Customer Orders, C2C and cC2C Orders, PRIME and cPRIME AOC Responses,
PRIME and cPRIME Contra-side Orders, and PRIME and cPRIME Orders for
which both the Agency and Contra-side Order are Priority Customers).
Volume for transactions in both simple and complex orders are
aggregated to determine the appropriate volume tier threshold
applicable to each transaction. Volume is recorded for and credits are
delivered to the Member that submits the order to MIAX. MIAX aggregates
the contracts resulting from Priority Customer orders transmitted and
executed electronically on MIAX from Members and their Affiliates for
purposes of the thresholds described in the PCRP table.
Proposed Rule Change
Pursuant to the PCRP, the Exchanges assesses an Agency Order Credit
for PRIME Agency Orders. The Exchange
[[Page 43228]]
currently credits each Member $0.10 per contract for each Priority
Customer order submitted into the PRIME Auction as a PRIME Agency Order
in all Tiers. The Exchange proposes to increase the PRIME Agency Order
Credit for Members who achieve the volume thresholds applicable to
Tiers 2, 3 and 4 from $0.10 to $0.11 per contract.
The Exchange also proposes to lower the additional PRIME Agency
Order Credit for Priority Customer PRIME Agency Orders executed over a
threshold of 0.60% of OCC customer volume for Members who are in PCRP
Tier 3 or higher. Currently, any Member or its Affiliate \10\ that
qualifies for PCRP volume Tiers 3 or higher will be credited an
additional $0.02 per contract for each Priority Customer order executed
in the PRIME Auction as a PRIME Agency Order over a threshold of above
0.60% of national customer volume in multiply-listed options classes
listed on MIAX during the relevant month (excluding QCC and cQCC
Orders, mini-options, Priority Customer-to-Priority Customer Orders,
C2C and cC2C Orders, cPRIME Agency Orders, PRIME and cPRIME AOC
Responses, PRIME and cPRIME Contra-side Orders, PRIME and cPRIME Orders
for which both the Agency and Contra-side Order are Priority Customers,
and executions related to contracts that are routed to one or more
exchanges in connection with the Options Order Protection and Locked/
Crossed Market Plan referenced in MIAX Rule 1400). Volume is recorded
for and credits are delivered to the Member Firm that submits the order
to MIAX. The current potential $0.02 per contract credit is in addition
to the current credit of $0.10 per contract for all Tiers that applies
to PRIME Agency Order transactions for Priority Customer orders.
---------------------------------------------------------------------------
\10\ For purposes of the Fee Schedule, the term ``Affiliate''
means (i) an affiliate of a Member of at least 75% common ownership
between the firms as reflected on each firm's Form BD, Schedule A,
(``Affiliate''), or (ii) the Appointed Market Maker of an Appointed
EEM (or, conversely, the Appointed EEM of an Appointed Market
Maker). An ``Appointed Market Maker'' is a MIAX Market Maker (who
does not otherwise have a corporate affiliation based upon common
ownership with an EEM) that has been appointed by an EEM and an
``Appointed EEM'' is an EEM (who does not otherwise have a corporate
affiliation based upon common ownership with a MIAX Market Maker)
that has been appointed by a MIAX Market Maker, pursuant to the
following process. A MIAX Market Maker appoints an EEM and an EEM
appoints a MIAX Market Maker, for the purposes of the Fee Schedule,
by each completing and sending an executed Volume Aggregation
Request Form by email to [email protected] no later than 2
business days prior to the first business day of the month in which
the designation is to become effective. Transmittal of a validly
completed and executed form to the Exchange along with the
Exchange's acknowledgement of the effective designation to each of
the Market Maker and EEM will be viewed as acceptance of the
appointment. The Exchange will only recognize one designation per
Member. A Member may make a designation not more than once every 12
months (from the date of its most recent designation), which
designation shall remain in effect unless or until the Exchange
receives written notice submitted 2 business days prior to the first
business day of the month from either Member indicating that the
appointment has been terminated. Designations will become operative
on the first business day of the effective month and may not be
terminated prior to the end of the month. Execution data and reports
will be provided to both parties. See Fee Schedule, Section
(1)(a)(i).
---------------------------------------------------------------------------
The Exchange now proposes to lower the additional PRIME Agency
Order Credit for Priority Customer PRIME Agency Orders over a threshold
of 0.60% of OCC customer volume for Members who are in PCRP Tier 3 or
higher from $0.02 per contract to $0.01 per contract. The newly
proposed additional $0.01 per contract credit, for Members that achieve
PCRP Tier 3 or higher and the described threshold, will be added to the
newly proposed PRIME Agency Order Credit of $0.11 per contract for
Members in Tiers 3 or 4 for PRIME Agency Order transactions for
Priority Customer orders.
The Exchange believes these proposed changes (which increase
certain credit amounts from $0.10 per contract to $0.11 per contract,
and decrease the additional credit amount from $0.02 per contract to
$0.01 per contract) will encourage market participants to submit more
Priority Customer PRIME Agency Orders and therefore increase Priority
Customer order flow, resulting in increased liquidity which benefits
all Exchange participants by providing more trading opportunities and
tighter spreads.
The Commission has repeatedly expressed its preference for
competition over regulatory intervention in determining prices,
products, and services in the securities markets. In Regulation NMS,
the Commission highlighted the importance of market forces in
determining prices and self-regulatory organization (``SRO'') revenues
and, also, recognized that current regulation of the market system
``has been remarkably successful in promoting market competition in its
broader forms that are most important to investors and listed
companies.'' \11\ There are currently 16 registered options exchanges
competing for order flow. Based on publicly-available information, and
excluding index-based options, no single exchange has exceeded
approximately 18% of the market share of executed volume of multiply-
listed equity and exchange-traded fund (``ETF'') options trades as of
July 25, 2019, for the month of July 2019.\12\ Therefore, no exchange
possesses significant pricing power in the execution of multiply-listed
equity and ETF options order flow. More specifically, for all of June
2019, the Exchange had a total market share of 3.73% of all equity
options volume.\13\ The Exchange believes that the ever-shifting market
shares among the exchanges from month to month demonstrates that market
participants can shift order flow (as further described below), or
discontinue or reduce use of certain categories of products, in
response to transaction and non-transaction fee changes. For example,
on March 1, 2019, the Exchange filed with the Commission an immediately
effective filing to decrease certain credits assessable to Members
pursuant to the PCRP.\14\ The Exchange experienced a decrease in total
market share between the months of February and March of 2019.
Accordingly, the Exchange believes that the March 1, 2019 fee change
may have contributed to the decrease in the Exchange's market share
and, as such, the Exchange believes competitive forces constrain
options exchange transaction and non-transaction fees.
---------------------------------------------------------------------------
\11\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005).
\12\ The OCC publishes options and futures volume in a variety
of formats, including daily and monthly volume by exchange,
available at: https://www.theocc.com/market-data/volume/default.jsp.
\13\ See id.
\14\ See Securities Exchange Act Release No. 85301 (March 13,
2019), 84 FR 10166 (March 19, 2019) (SR-MIAX-2019-09).
---------------------------------------------------------------------------
The Exchange cannot predict with certainty whether any Priority
Customers would avail themselves of the proposed fee change, but the
Exchange believes that between two and four Members may achieve the
applicable Tier volume thresholds to receive the proposed increased
PRIME Agency Order Credit for Members in Tiers 2, 3 and 4 of the PCRP.
Similarly, the Exchange cannot predict with certainty whether any
Member will achieve the separate, additional PRIME Agency Order Credit
that is also available for Priority Customer PRIME Agency Orders
executed over a monthly threshold of 0.60% of OCC customer volume for
Members in PCRP Tier 3 or higher, but the Exchange believes that no
Member will be currently impacted as no Member currently reaches such
threshold.
2. Statutory Basis
The Exchange believes that its proposal to amend its Fee Schedule
is consistent with Section 6(b) of the Act \15\
[[Page 43229]]
in general, and furthers the objectives of Section 6(b)(4) of the Act
\16\ in particular, in that it is an equitable allocation of reasonable
fees and other charges among its members and issuers and other persons
using its facilities. The Exchange also believes the proposal furthers
the objectives of Section 6(b)(5) of the Act 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.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78f(b).
\16\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes its proposal to increase the PRIME Agency
Order Credit for Members in Tiers 2, 3 and 4 of the PCRP and to lower
the separate, additional PRIME Agency Order Credit that is also
available for Priority Customer Orders executed over a monthly
threshold of 0.60% of OCC customer volume for Members who are in PCRP
Tier 3 or higher provides for the equitable allocation of reasonable
dues and fees and is not unfairly discriminatory for the following
reasons. First, the Exchange operates in a highly competitive market.
The Commission has repeatedly expressed its preference for competition
over regulatory intervention in determining prices, products, and
services in the securities markets. In Regulation NMS, the Commission
highlighted the importance of market forces in determining prices and
SRO revenues and, also, recognized that current regulation of the
market system ``has been remarkably successful in promoting market
competition in its broader forms that are most important to investors
and listed companies.'' \17\ There are currently 16 registered options
exchanges competing for order flow. Based on publicly-available
information, and excluding index-based options, no single exchange has
exceeded approximately 18% of the market share of executed volume of
multiply-listed equity and ETF options trades as of July 25, 2019, for
the month of July 2019.\18\ Therefore, no exchange possesses
significant pricing power in the execution of multiply-listed equity
and ETF options order flow. More specifically, for all of June 2019,
the Exchange had a total market share of 3.73% for all equity options
volume.\19\
---------------------------------------------------------------------------
\17\ See Securities Exchange Act Release No. 51808 (June 9,
2005), 70 FR 37496 (June 29, 2005).
\18\ See supra note 12.
\19\ See id.
---------------------------------------------------------------------------
The Exchange believes that the ever-shifting market shares among
the exchanges from month to month demonstrates that market participants
can shift order flow, or discontinue or reduce use of certain
categories of products, in response to transaction and/or non-
transaction fee changes.
For example, on March 1, 2019, the Exchange filed with the
Commission an immediately effective filing to decrease certain credits
assessable to Members pursuant to the PCRP.\20\ The Exchange
experienced a decrease in total market share between the months of
February and March of 2019. Accordingly, the Exchange believes that the
March 1, 2019 fee change may have contributed to the decrease in the
Exchange's market share and, as such, the Exchange believes competitive
forces constrain options exchange transaction and non-transaction fees
and market participants can shift order flow based on fee changes
instituted by the exchanges.
---------------------------------------------------------------------------
\20\ See supra note 14.
---------------------------------------------------------------------------
Second, the Exchange believes its proposal to increase the PRIME
Agency Order Credit for Members in Tiers 2, 3 and 4 of the PCRP and to
lower the additional PRIME Agency Order Credit for Priority Customer
orders over a threshold of 0.60% of OCC customer volume for Members who
are in PCRP Tier 3 or higher is an equitable allocation of reasonable
dues and fees pursuant to Section 6(b)(4) of the Act \21\ because the
proposed changes are designed to incentivize overall Priority Customer
order flow. The Exchange believes that with the proposed changes,
providers of Priority Customer order flow will be incentivized to send
that Priority Customer order flow to the Exchange in order to obtain
the highest volume threshold and receive credits in a manner that
enables the Exchange to improve its overall competitiveness and
strengthen its market quality for all market participants. The Exchange
believes that increased Priority Customer order flow will attract
liquidity providers, which in turn should make the MIAX marketplace an
attractive venue where Market Makers may submit narrow quotations with
greater size, deepening and enhancing the quality of the MIAX
marketplace. This should provide more trading opportunities and tighter
spreads for other market participants and result in a corresponding
increase in order flow from such other market participants.
Additionally, the Exchange believes that for competitive and business
reasons, it is appropriate to lower the additional PRIME Agency Order
Credit for Priority Customer PRIME Agency Orders over a threshold of
0.60% of OCC customer volume for Members who are in PCRP Tier 3 or
higher from $0.02 to $0.01. As the Exchange previously noted, no Member
currently achieves this threshold and, as such, the Exchange believes
that by lowering this additional credit while increasing the PRIME
Agency Order Credit for Members in Tiers 2, 3 and 4 of the PCRP, will
incentivize order flow to the Exchange, providing more liquidity, to
the benefit of all market participants, because it will likely result
in a net increase in credits paid to Members.
---------------------------------------------------------------------------
\21\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that the proposed rule changes would be an
equitable allocation of reasonable dues and fees and would not permit
unfair discrimination between market participants. The Exchange cannot
predict with certainty whether any Priority Customers would avail
themselves of the proposed fee change, but the Exchange believes that
between two and four Members may achieve the applicable Tier volume
thresholds to receive the proposed increased PRIME Agency Order Credit
for Members in Tiers 2, 3 and 4 of the PCRP. Similarly, the Exchange
cannot predict with certainty whether any Member will achieve the
separate, additional PRIME Agency Order Credit that is also available
for Priority Customer PRIME Agency Orders executed over a monthly
threshold of 0.60% of OCC customer volume for Members in PCRP Tier 3 or
higher, but the Exchange believes that no Member will be currently
impacted as no Member currently reaches such threshold.
The Exchange also believes its proposal is consistent with Section
6(b)(5) of the Act \22\ and is designed to prevent fraudulent and
manipulative acts and practices, promotes just and equitable principles
of trade, fosters cooperation and coordination with persons engaged in
regulating, clearing, setting, processing information with respect to,
and facilitating transaction in securities, removes impediments to and
perfects the mechanism of a free and open market and a national market
system, and, in general, protects investors and the public interest;
and is not designed to permit unfair discrimination. This is because
the Exchange believes the proposed changes will incentivize Priority
Customer order flow and an increase in Priority Customer order flow
will bring greater volume and liquidity, which benefits all market
participants by providing more trading opportunities and tighter
[[Page 43230]]
spreads. To the extent Priority Customer order flow is increased by the
proposal, market participants will increasingly compete for the
opportunity to trade on the Exchange including sending more orders and
providing narrower and larger-sized quotations in the effort to trade
with such Priority Customer order flow. Further, based on the current
Tier volume thresholds achieved by the Exchange's Members and the
potential changes going forward as a result of the proposed fee change,
the Exchange believes that the proposed increase to certain credit
amounts from $0.10 per contract to $0.11 per contract and proposed
decrease to the additional credit amount from $0.02 per contract to
$0.01 per contract may not result in any Member receiving a lower
credit amount per contract, and may result in two to four Members
receiving a higher credit amount per contract.
---------------------------------------------------------------------------
\22\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\23\ the Exchange
believes that the proposed rule change would not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Instead, as discussed above, the Exchange believes
that the proposed changes would encourage the submission of additional
liquidity to a public exchange, thereby promoting market depth, price
discovery and transparency and enhancing order execution opportunities
for all market participants. As a result, the Exchange believes that
the proposed change furthers the Commission's goal in adopting
Regulation NMS of fostering integrated competition among orders.
---------------------------------------------------------------------------
\23\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
Intra-Market Competition
The Exchange does not believe that other market participants at the
Exchange would be placed at a relative disadvantage by the proposed
changes to increase the PRIME Agency Order Credit for Members in Tiers
2, 3 and 4 of the PCRP and to lower the additional PRIME Agency Order
Credit for Priority Customer PRIME Agency Orders over a threshold of
0.60% of OCC customer volume for Members who are in PCRP Tier 3 or
higher. The proposed changes are designed to attract additional order
flow to the Exchange. Accordingly, the Exchange believes that
increasing the PRIME Agency Order Credit for Members in Tiers 2 through
4 of the PCRP and lowering the additional PRIME Agency Order Credit for
Priority Customer orders over a threshold of 0.60% of OCC customer
volume for Members in PCRP Tier 3 or higher will not impose any burden
on competition not necessary or appropriate in furtherance of the
purposes of the Act because it will continue to encourage Priority
Customer order flow and 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. Further, based on the current Tier volume thresholds achieved
by the Exchange's Members and the potential changes going forward as a
result of the proposed fee change, the Exchange believes that the
proposed increase to certain credit amounts from $0.10 per contract to
$0.11 per contract and proposed decrease to the additional credit
amount from $0.02 per contract to $0.01 per contract may not result in
any Member receiving a lower credit amount per contract, and may result
in two to four Members receiving a higher credit amount per contract.
Inter-Market Competition
The Exchange 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. There are currently 16
registered options exchanges competing for order flow. Based on
publicly-available information, and excluding index-based options, no
single exchange has exceeded approximately 18% of the market share of
executed volume of multiply-listed equity and ETF options trades as of
July 25, 2019, for the month of July 2019.\24\ Therefore, no exchange
possesses significant pricing power in the execution of multiply-listed
equity and ETF options order flow. More specifically, for all of June
2019, the Exchange had a total market share of 3.73% for all equity
options volume.\25\ In such an environment, the Exchange must
continually adjust its transaction and non-transaction fees to remain
competitive with other exchanges and to attract order flow. The
Exchange believes that the proposed rule changes reflect this
competitive environment because they modify the Exchange's fees in a
manner that encourages market participants to provide Priority Customer
liquidity and to send order flow to the Exchange. To the extent this is
achieved, all the Exchange's market participants should benefit from
the improved market quality.
---------------------------------------------------------------------------
\24\ See supra note 12.
\25\ See id.
---------------------------------------------------------------------------
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,\26\ and Rule 19b-4(f)(2) \27\ 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.
---------------------------------------------------------------------------
\26\ 15 U.S.C. 78s(b)(3)(A)(ii).
\27\ 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-2019-34 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-2019-34. 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
[[Page 43231]]
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-2019-34 and should be
submitted on or before September 10, 2019.
---------------------------------------------------------------------------
\28\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-17858 Filed 8-19-19; 8:45 am]
BILLING CODE 8011-01-P