[Federal Register Volume 85, Number 19 (Wednesday, January 29, 2020)]
[Notices]
[Pages 5269-5271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01516]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88020; File No. SR-PEARL-2020-02]


Self-Regulatory Organizations: MIAX PEARL, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX 
PEARL Fee Schedule

January 23, 2020.
    Pursuant to 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 January 15, 2020, MIAX PEARL, LLC (``MIAX PEARL'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``SEC'' or 
``Commission'') the 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 PEARL Fee 
Schedule (``Fee Schedule'') to make minor, non-substantive corrective 
edits and clarifying changes.
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings/pearl at MIAX 
PEARL'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 several sections of the Fee Schedule 
to make minor, non-substantive edits to harmonize terms in the Fee 
Schedule with that of the Exchange's rulebook and the rulebooks of the 
Exchange's affiliates, Miami International Securities Exchange, LLC 
(``MIAX'') and MIAX Emerald, LLC (``MIAX Emerald''). Currently, 
throughout the Fee Schedule, the Exchange's affiliate, MIAX, is 
referred to as ``MIAX Options'' or ``MIAX Options Exchange.'' The 
Exchange now proposes that all references throughout the Fee Schedule 
that are to ``MIAX Options'' or ``MIAX Options Exchange'' will be 
amended to delete the words ``Options'' or ``Options Exchange'' (where 
applicable), such that all references will be to the singular word 
``MIAX.'' The proposed amendments would be to references to ``MIAX 
Options'' or ``MIAX Options Exchange'' in the following sections of the 
Fee Schedule: (i) the text for the definitions of MENI and MIAX in the 
Definitions section and the text in the last paragraph of the 
Definitions section \3\; (ii) the Routing Fee table in Section (1)(b); 
(iii) the text underneath the Member Network Connectivity Testing and 
Certification Fee table in Section (4)(c); (iv) the text underneath the 
Non-Member Network Connectivity Testing and Certification Fee table in 
Section (4)(d); (v) the text underneath the Monthly Member Network 
Connectivity Fee table in Section (5)(a); and (vi) the text underneath 
the Monthly Non-Member Network Connectivity Fee table in Section 
(5)(b). The purpose of these changes is to harmonize the term ``MIAX'' 
in the Exchange's Fee Schedule with the MIAX PEARL rulebook,\4\ and to 
provide consistency for the term ``MIAX'' across the Fee Schedules and 
rulebooks of the Exchange's affiliates, MIAX and MIAX Emerald.\5\
---------------------------------------------------------------------------

    \3\ In connection with this change, the Exchange also proposes 
to delete the word ``the'' before ``MIAX Options'' in the last 
paragraph of the Definitions section as a grammatical correction.
    \4\ See Securities Exchange Act Release No. 85771 (May 3, 2019), 
84 FR 20445 (May 9, 2019) (SR-PEARL-2019-16).
    \5\ See MIAX and MIAX Emerald Fee Schedules, Definitions 
section. See also MIAX Rule 100 and MIAX Emerald Rule 100.
---------------------------------------------------------------------------

    Next, the Exchange proposes to amend the Definitions section of the 
Fee Schedule to amend a cross-reference in one of the defined terms. 
Currently, the term ``ABBO'' contains a cross-reference to Exchange 
Rule 1400(f), which is meant to be a cross-reference to the definition 
for an ``Eligible Exchange.'' The correct citation to the definition 
for ``Eligible Exchange'' is Exchange Rule 1400(g).\6\ Accordingly, the 
Exchange proposes to amend the cross-reference in the definition for 
``ABBO'' in the Definitions section of the Fee Schedule to be to 
Exchange Rule 1400(g).
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 87693 (December 9, 
2019), 84 FR 68264 (December 13, 2019) (SR-MIAX-2019-48) (which 
amended, among other rules, MIAX Rule 1400 citations). The Exchange 
notes that the rules contained in MIAX Chapter XIV are incorporated 
by reference into MIAX PEARL Chapter XIV. See MIAX PEARL Rulebook, 
Chapter XIV.
---------------------------------------------------------------------------

    Next, the Exchange proposes to amend Section (2)(c) of the Fee 
Schedule, Web CRD Fees, to make non-substantives edits to the sentence 
in parentheses following the FINRA Disclosure Processing Fee under the 
section titled ``GENERAL REGISTRATION FEES.'' Currently, the FINRA 
Disclosure Processing Fee includes the following in parentheses ``(Form 
U4, Form U5, Form BD & amendments)''. The Exchange now proposes to 
delete the ampersand in that sentence and replace it with the word

[[Page 5270]]

``and''. Similarly, the last paragraph of Section (2)(c) has a sentence 
that describes that the FINRA Disclosure Processing Fee applies to all 
registration, transfer, or termination filings with new or amended 
disclosure information or that require certification, as well any 
amendment to disclosure information. Within that sentence, there is the 
following in parentheses ``(Form U4, Form U5, Form BD & Amendments)''. 
The Exchange now proposes to delete the ampersand in that sentence and 
replace it with the word ``and'' and make lowercase the word 
``Amendments''. The purpose of these proposed changes are for clarity 
and uniformity with the fee schedules of the Exchange's affiliates, 
MIAX and MIAX Emerald.
    Next, the Exchange proposes to amend the cross-reference in last 
paragraph of Section (2)(c) of the Fee Schedule. The last paragraph of 
Section (2)(c) currently states as follows: ``The Continuing Education 
Fee applies to each individual who is required to complete the 
Regulatory Element of the Continuing Education Requirements pursuant to 
MIAX PEARL Rule 1304.'' Recently, the Exchange reorganized and enhanced 
the Exchange's membership, registration and qualification rules, and 
consolidated these rules into new Chapter XXXI, Registration, 
Qualification and Continuing Education.\7\ Accordingly, the Exchange 
proposes to amend the cross-reference in the last paragraph of Section 
(2)(c) of the Fee Schedule to reflect these changes. The cross-
reference in the last paragraph of Section (2)(c) will now be to 
Exchange Rule 3103, Continuing Education Requirements, which contains, 
among other things, the requirements for individuals to complete the 
Regulatory Element of the Continuing Education Program. With the 
proposed change, the last paragraph of Section (2)(c) will state as 
follows: ``The Continuing Education Fee applies to each individual who 
is required to complete the Regulatory Element of the Continuing 
Education Requirements pursuant to MIAX PEARL Rule 3103.''
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 87941 (January 10, 
2020) (SR-PEARL-2020-01).
---------------------------------------------------------------------------

    The Exchange notes that its affiliate, MIAX Emerald, will also make 
similar changes to its Fee Schedule as described above.
2. Statutory Basis
    The Exchange believes that its proposed rule change is consistent 
with Section 6(b) of the Act \8\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \9\ 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 regulating, 
clearing, settling, processing information with respect to, and 
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.
---------------------------------------------------------------------------

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

    The Exchange believes the proposed changes promote just and 
equitable principles of trade and remove impediments to and perfect the 
mechanism of a free and open market and a national market system 
because the proposed changes make clarifying, non-substantive edits to 
the Fee Schedule, and update a cross-reference to the Exchange's 
rulebook. The Exchange believes that these proposed changes will 
provide greater clarity to Members and the public regarding the 
Exchange's Fee Schedule and that it is in the public interest for the 
Fee Schedule to be accurate and concise so as to eliminate the 
potential for confusion.

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 not a competitive filing but rather is designed to 
remedy minor non-substantive issues and provide added clarity to the 
Fee Schedule in order to avoid potential confusion on the part of 
market participants. In addition, the Exchange does not believe the 
proposal will impose any burden on inter-market competition as the 
proposal does not address any competitive issues and is intended to 
protect investors by providing further transparency regarding the 
Exchange's Fee Schedule.

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-PEARL-2020-02 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-PEARL-2020-02. 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

[[Page 5271]]

inspection and copying at the principal offices 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-PEARL-2020-02, and should be 
submitted on or before February 19, 2020.

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

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

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2020-01516 Filed 1-28-20; 8:45 am]
BILLING CODE 8011-01-P