[Federal Register Volume 86, Number 215 (Wednesday, November 10, 2021)]
[Notices]
[Pages 62582-62584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24532]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93526; File No. SR-EMERALD-2021-36]


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

November 4, 2021.
    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 October 22, 2021, MIAX Emerald, LLC (``MIAX Emerald'' 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.
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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 amend the MIAX Emerald Fee 
Schedule (the ``Fee Schedule'') to make non-substantive, clarifying 
changes.
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings/emerald, 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 make non-
substantive, clarifying changes to Sections (3)(b) and (5)(d)(ii) for 
the monthly Trading Permit fees for Market Makers \3\ and the monthly 
MIAX Emerald Express Interface (``MEI'') \4\ Port fees for Market 
Makers. The Exchange does not propose to amend the amount of Trading 
Permit fees or MEI Port fees in this filing. The Exchange also does not 
propose to amend the calculation methodology for Trading Permit fees or 
MEI Port fees in this filing.
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    \3\ The term ``Market Makers'' refers to ``Lead Market Makers,'' 
``Primary Lead Market Makers,'' and ``Registered Market Makers'' 
collectively. See Exchange Rule 100.
    \4\ MIAX Emerald Express Interface (``MEI'') is a connection to 
the MIAX Emerald System that enables Market Makers to submit simple 
and complex electronic quotes to MIAX Emerald. See the Definitions 
Section of the Fee Schedule.
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Monthly Market Maker Trading Permit Fee Clarifying Changes
    First, the Exchange proposes to amend Section 3(b) of the Fee 
Schedule to amend the text below the table for the monthly Trading 
Permit fees applicable to Market Makers. Specifically, the Exchange 
proposes to add the following two clarifying sentences to begin the 
explanatory paragraph following the table for the monthly Trading 
Permit fees applicable to Market Makers:

    For the calculation of the monthly Market Maker Trading Permits, 
the applicable fee rate is the lesser of either the per class basis 
or percentage of total national average daily volume measurement. 
The amount of monthly Market Maker Trading Permit Fee will be based 
upon the number of classes in which the Market Maker was assigned to 
quote on any given day within the calendar month, or upon the class 
volume percentages set forth in the above table.

    The Exchange also proposes to remove the following sentence, which 
is currently the first sentence of the explanatory paragraph below the 
table for the monthly Trading Permit fees applicable to Market Makers:

    For the calculation of the monthly Market Maker Trading Permit 
Fees, the number of classes is defined as the greatest number of 
classes the Market Maker was assigned to quote in on any given day 
within the calendar month and the class volume

[[Page 62583]]

percentage is based on the total national average daily volume in 
classes listed on MIAX Emerald in the prior calendar quarter.

    In place of the deleted sentence described above, the Exchange 
proposes to insert the following two sentences, which will become 
sentences three and four of the revised explanatory paragraph:

    The Exchange will assess MIAX Emerald Market Makers the monthly 
Market Maker Trading Permit Fee based on the greatest number of 
classes listed on MIAX Emerald that the MIAX Emerald Market Maker 
was assigned to quote in on any given day within a calendar month. 
The class volume percentage is based on the total national average 
daily volume in classes listed on MIAX Emerald in the prior calendar 
quarter.

    The Exchange notes that these two sentences are a combination of 
sentences already included in the explanatory paragraph. In connection 
with all of the changes described above, the Exchange proposes to 
delete the following sentence:

    The Exchange will assess MIAX Emerald Market Makers the monthly 
Market Maker Trading Permit Fee based on the greatest number of 
classes listed on MIAX Emerald that the MIAX Emerald Market Maker 
was assigned to quote in on any given day within a calendar month 
and the applicable fee rate that is the lesser of either the per 
class basis or percentage of total national average daily volume 
measurement.

    The Exchange notes that all of these changes, when taken together, 
do not alter the calculation methodology for how the Exchange currently 
calculates monthly Trading Permit fees for Market Makers. These changes 
are being made solely to clarify the explanatory paragraph below the 
table of fees for monthly Trading Permit fees for Market Makers. The 
Exchange believes that these revised sentences summarize that the 
monthly Market Maker Trading Permit fee rate is the lesser of the per 
class basis or the percentage of total national average daily volume 
measure and better clarifies how the MIAX Market Maker Trading Permit 
fee will continue to be calculated and applied each month. The Exchange 
does not propose to amend the amount or calculation of the monthly 
Trading Permit fee for Market Makers.
MEI Port Fee Clarifying Changes
    Next, the Exchange proposes to amend Section 5(d)(ii) of the Fee 
Schedule to make non-substantive, clarifying changes to the explanatory 
paragraph below the table of MEI Port fees applicable to Market Makers. 
The Exchange proposes to move the current first sentence of the 
explanatory paragraph below the table of MEI Port fees applicable to 
Market Makers in Section 5(d)(ii) to now be the final sentence. In its 
place, the Exchange proposes to add the following sentence: ``The 
applicable fee rate is the lesser of either the per class basis or 
percentage of total national average daily volume measurement.'' In 
connection with this change, the Exchange proposes to amend the 
sentence that will now follow the new first sentence of the explanatory 
paragraph. In particular, the Exchange proposes to add ``MIAX Emerald 
Express Interface'' to the second sentence of the explanatory paragraph 
to contain the full term, ``MIAX Express Interface (`MEI')'' Port. The 
final sentence of the explanatory paragraph will now read as follows: 
``MIAX Emerald will assess monthly MEI Port Fees on Market Makers in 
each month the Member has been credentialed to use the MEI Port in the 
production environment and has been assigned to quote in at least one 
class.''
    Further, following the above changes, the Exchange proposes to 
amend the second sentence of the explanatory paragraph to remove the 
word ``and'' that connects the two clauses describing how the Exchange 
calculates the monthly MEI Port fee for Market Makers. In place of the 
word ``and,'' the Exchange proposes to clarify that the amount of the 
monthly MEI Port fee will be based upon the number of classes in which 
the Market Maker was assigned to quote on any given day within the 
calendar month, or upon the class volume percentages set forth in the 
MEI Port fee table.
    The Exchange further proposes to remove the fifth sentence of the 
explanatory paragraph below the table of MEI Port fees in Section 
5(d)(ii) and move it up in the paragraph, immediately following the 
second sentence. With this change, the third sentence of the 
explanatory paragraph will be as follows: ``The Exchange will assess 
MIAX Emerald Market Makers the monthly MEI Port Fee based on the 
greatest number of classes listed on MIAX Emerald that the MIAX Emerald 
Market Maker was assigned to quote in on any given day within a 
calendar month.'' This phrase is currently contained in the fifth 
sentence of the explanatory paragraph and the Exchange now proposes to 
make the phrase its own sentence and move it earlier in the paragraph. 
The Exchange believes that these revised sentences summarize that the 
monthly MEI Port fee rate is the lesser of either the per class basis 
or percentage of total national average daily volume measurement and 
better clarifies how the monthly MEI Port fee for Market Makers will 
continue to be calculated and applied. The Exchange does not propose to 
amend the amount or calculation of the monthly MEI Port fee for Market 
Makers.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act \5\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \6\ 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.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes the proposed changes are consistent with 
Section 6(b)(4) of the Act in that they are reasonable, equitable, and 
not unfairly discriminatory because they are non-substantive, 
clarifying changes regarding the Exchange's monthly Trading Permit and 
MEI Port fees applicable to Market Makers and will reduce the risk of 
confusion to market participants. The proposed changes promote just and 
equitable principles of trade, remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general protect investors and the public interest by clarifying how 
the MIAX Emerald Market Maker Trading Permit fee and the MEI Port fee 
will be calculated and applied each month. 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 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. Specifically, the Exchange 
believes the proposed change will not impose any burden on

[[Page 62584]]

intra-market competition as 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, 
clarifying issues and provide added clarity to the Fee Schedule. 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,\7\ and Rule 19b-4(f)(2) \8\ 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
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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-EMERALD-2021-36 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-EMERALD-2021-36. 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-EMERALD-2021-36 and should be submitted 
on or before December 1, 2021.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021-24532 Filed 11-9-21; 8:45 am]
BILLING CODE 8011-01-P