[Federal Register Volume 86, Number 190 (Tuesday, October 5, 2021)]
[Notices]
[Pages 55088-55090]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21749]



[[Page 55088]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93210; File No. SR-MIAX-2021-40]


Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change by Miami International Securities Exchange, LLC To 
Amend Exchange Rule 402, Criteria for Underlying Securities, Rule 403, 
Withdrawal of Approval of Underlying Securities, Rule 404, Series of 
Option Contracts Open for Trading, Rule 404A, Select Provisions of 
Options Listing Procedures Plan, Rule 503, Openings on the Exchange, 
Rule 515A, MIAX Price Improvement Mechanism (``PRIME'') and PRIME 
Solicitation Mechanism, and Rule 518, Complex Orders

September 30, 2021.
    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 September 24, 2021, Miami International 
Securities Exchange, LLC (``MIAX'' or the ``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.
---------------------------------------------------------------------------

    \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 make a number of minor, non-
substantive edits to Exchange Rules 402, Criteria for Underlying 
Securities, 403, Withdrawal of Approval of Underlying Securities, 404, 
Series of Option Contracts Open for Trading, 404A, Select Provisions of 
Options Listing Procedures Plan, 503, Openings on the Exchange, 515A, 
MIAX Price Improvement Mechanism (``PRIME'') and PRIME Solicitation 
Mechanism, and 518, Complex Orders.
    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 Exchange Rules 402, 403, 404, 404A, 
503, 515A, and 518 to make minor non-substantive edits and clarifying 
changes to provide consistency and clarity within the rule text.
    First, the Exchange proposes to delete the period at the end of 
subparagraph (a)(1) of Exchange Rule 402 and add ``; and'' for purposes 
of clarity in the rule text that both conditions listed in Exchange 
Rule 402(a)(1)-(2) must be met.
    Next, the Exchange proposes to amend subparagraph (b) of Exchange 
Rule 402 to correctly spell the word ``foregoing'' in the last 
sentence.
    Next, the Exchange proposes to delete the period at the end of 
subparagraph (b)(6)(i) of Exchange Rule 402 and add ``; and'' for the 
sentence to be grammatically correct and for purposes of clarity in the 
rule text that both conditions listed in Exchange Rule 402(b)(6)(i)-
(ii) must be met.
    Next, the Exchange proposes to delete the period at the end of 
subparagraph (c)(2)(i)(A) of Exchange Rule 402 and add ``; and'' for 
the sentence to be grammatically correct and for purposes of clarity in 
the rule text.
    Next, the Exchange proposes to delete the comma at the end of 
subparagraph (g)(1) of Exchange Rule 402 and add a semicolon for 
purposes of clarity in the rule text.
    Next, the Exchange proposes to amend subparagraph (i) of Exchange 
Rule 402 to remove the word ``or'' after subparagraphs (i)(1), (2) and 
(3). The purpose of these proposed changes is to provide consistency 
and clarity throughout the rule text.
    Next, the Exchange proposes to delete the semicolon at the end of 
subparagraph (k)(1)(vi) of Exchange Rule 402 and add a period for the 
sentence to be grammatically correct and for purposes of clarity in the 
rule text.
    Next, the Exchange proposes to amend Exchange Rule 403, 
Interpretation and Policy .02, to add a colon before the list in the 
second sentence, which uses semicolons for the sentence to be 
grammatically correct.
    Next, the Exchange proposes to amend Exchange Rule 404, 
Interpretation and Policy .02(a), to remove the word ``Pilot'' when 
referring to the Short Term Option Series Program. The purpose of this 
proposed change is to provide consistency and clarity throughout the 
rule text as the Short Term Options Series Program is not a pilot 
program.\3\
---------------------------------------------------------------------------

    \3\ See Exchange Rule 404, Interpretation and Policy .02.
---------------------------------------------------------------------------

    Next, the Exchange proposes to amend Exchange Rule 404, 
Interpretation and Policy .02(c), to add the word ``thirty'' before the 
number in parentheses in the first sentence for purposes of consistency 
and clarity in the rule text.
    Next, the Exchange proposes to amend Exchange Rule 404, 
Interpretation and Policy .02(e), to capitalize the word ``rule'' in 
the last sentence of this subparagraph for purposes of consistency and 
clarity in the rule text.
    Next, the Exchange proposes to amend Exchange Rule 404, 
Interpretation and Policy .02(f), to add the number ``(21)'' after the 
word ``twenty-one'' for purposes of consistency and clarity in the rule 
text.
    Next, the Exchange proposes to amend Exchange Rule 404, 
Interpretation and Policy .10, to update the name of one of the 
Exchange-Traded Funds (``ETF'') from ``PowerShares Trust (``QQQ'')'' to 
its updated name ``Invesco QQQ Trust (``QQQ'').'' \4\ According to the 
most recent Prospectus for the QQQ ETF, the ETF Sponsor changed that 
ETF's name. Accordingly, the Exchange proposes to update the name of 
the QQQ ETF for consistency with the QQQ ETF's Prospectus.
---------------------------------------------------------------------------

    \4\ See Invesco QQQ Trust, Series 1 Prospectus, dated January 
31, 2021, https://connect.rightprospectus.com/Invesco/TADF/46090E103/P?site=ETF.
---------------------------------------------------------------------------

    Next, the Exchange proposes to amend Exchange Rule 404, 
Interpretations and Policies .11, to add the number ``(21)'' after the 
word ``twenty-one'' for purposes of consistency and clarity in the rule 
text.
    Next, the Exchange proposes to amend subparagraph (b) of Exchange 
Rule 404A to add quotation marks around the phrase ``Exchange Traded

[[Page 55089]]

Fund Shares'' for the sentence to be grammatically correct.
    Next, the Exchange proposes to amend subparagraph (d) of Exchange 
Rule 503 to: (1) Change the word ``an'' to ``a'' immediately preceding 
the phrase ``class-by- class basis''; (2) remove the space in the 
middle of the hyphenated word ``class-by- class''; and (3) remove the 
word ``the'' before the phrase ``. . . Members through a Regulatory 
Circular.'' These proposed rule changes are to make the sentence 
grammatically correct and to provide clarity in the rule text.
    Next, the Exchange proposes to amend subparagraph (e)(1) of 
Exchange Rule 503 to make two clarifying changes: (1) Deleting the 
space between the words ``market'' and ``place'' in the second 
sentence; and (2) capitalizing the word ``members'' in the third 
sentence. The purpose of these proposed changes is to provide 
consistency and clarity throughout the rule text as ``marketplace'' is 
supposed to be one word and the term ``Members'' \5\ is a defined term 
in the Exchange's rulebook that should be capitalized.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    Next, the Exchange proposes to amend subparagraph 
(f)(2)(vii)(B)5.a. of Exchange Rule 503 to make two clarifying changes. 
Subparagraph (f)(2)(vii)(B)5.a. currently has two references to 
Interpretations and Policies of Exchange Rule 503, stated as ``Policy 
.02'' and ``Policy .03.'' The Exchange now proposes to insert the words 
``Interpretation and'' in front of both of those references to 
Interpretations and Policies in order to provide consistency and 
clarity throughout the rule text.
    Next, the Exchange proposes to amend Exchange Rule 503, 
Interpretation and Policy .03(f)(1). Currently, Interpretation and 
Policy .03(f)(1) provides as follows: ``The System will broadcast a 
system imbalance broadcast message to all subscribers of the Exchange's 
relevant data feed and begin an SSIP Imbalance Timer, the duration of 
which shall be determined by the Exchange and announced via Regulatory 
Circular, however it shall not to exceed ten seconds.'' The Exchange 
now proposes to delete the word ``to'' at the end of that sentence in 
order for the sentence be grammatically correct and to provide clarity 
throughout the rule text.
    Next, the Exchange proposes to amend subparagraph (a)(1) of 
Exchange Rule 515A to provide consistency and clarity to the rule text. 
Subparagraphs (a)(1)(i)-(iii) provide the three conditions that must be 
met in order for a Member (an ``Initiating Member'') to initiate a 
PRIME Auction.\6\ The Exchange proposes to move the ``and'' from the 
end of subparagraph (a)(1)(i) to the end of subparagraph (a)(1)(ii), 
delete the period after subparagraph (a)(1)(ii), and lowercase the word 
``with'' that begins subparagraph (a)(1)(iii). The purpose of these 
changes is to provide consistency and clarity to the rule text such 
that market participants know that in order to initiate a PRIME 
Auction, all three conditions of subparagraphs (a)(1)(i)-(iii) of 
Exchange Rule 515A must be met.
---------------------------------------------------------------------------

    \6\ See Exchange Rule 515A(a)(1).
---------------------------------------------------------------------------

    Finally, the Exchange proposes to amend subparagraph (b)(3) of 
Exchange Rule 518 to add a closing parenthesis around the phrase ``as 
defined in Rule 518(d)(4).'' The purpose of the proposed rule change is 
for the sentence to be grammatically correct and for clarity in the 
rule text.
2. Statutory Basis
    The Exchange believes that its proposed rule change is consistent 
with Section 6(b) of the Act \7\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \8\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 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 rule changes will provide greater clarity to 
Members 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.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. Specifically, the Exchange 
believes the proposed changes will not impose any burden on intra-
market competition as there is no functional change to the Exchange's 
System and because the rules of the Exchange apply to all MIAX 
participants equally. The proposed rule change will have no impact on 
competition as it is not designed to address any competitive issue but 
rather is designed to remedy minor non-substantive issues and provide 
added clarity to the rule text of Exchange Rules 402, 403, 404, 404A, 
503, 515A, and 518. 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 functionality.

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 Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) \9\ of the Act and Rule 19b-4(f)(6) thereunder.\10\ 
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 and subparagraph (f)(6) of Rule 
19b-4 thereunder.\11\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to 
give the Commission written notice of its intent to file 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.
---------------------------------------------------------------------------

    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

[[Page 55090]]

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-2021-40 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-2021-40. 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-2021-40, and should be submitted on 
or before October 26, 2021.

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

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

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-21749 Filed 10-4-21; 8:45 am]
BILLING CODE 8011-01-P