[Federal Register Volume 87, Number 211 (Wednesday, November 2, 2022)]
[Notices]
[Pages 66214-66216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23783]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96164; File No. SR-MIAX-2022-39]


Self-Regulatory Organizations: Notice of Filing and Immediate 
Effectiveness of a Proposed Rule Change by Miami International 
Securities Exchange, LLC To Amend Exchange Rule 1801, Definitions and 
Rule 1809, Terms of Index Options Contracts To Remove References to 
BRIXX Indexes

October 27, 2022.
    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 October 24, 2022, Miami International 
Securities Exchange, LLC (``MIAX Options'' or the ``Exchange'')

[[Page 66215]]

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 Interpretation and 
Policy .01 to Exchange Rule 1801 and Exchange Rules 1809(a)(3)-(5) to 
remove rule text related to certain indexes on which the Exchange may 
list and trade options.
    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.

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
Background
    On April 17, 2020, the Exchange filed its proposal with the 
Commission to amend certain of the Exchange's rules in connection with 
the Exchange's plan to list and trade options on five commercial real 
estate indexes, at that time called the Advanced Fundamentals (``AF'') 
Commercial Real Estate Indexes, which were comprised of the AF CRE 
Residential Index, AF CRE Retail Index, AF CRE Office Index, AF CRE 
Hospitality Index and AF CRE Composite Index (collectively, the ``AF 
CRE Indexes'').\3\ The AF CRE Indexes were later rebranded as the 
BRIXX\TM\ Commercial Real Estate Indexes (the ``BRIXX Indexes''), as 
follows: (1) the AF CRE Office Index was rebranded as the BRIXX Office 
Index; (2) the AF CRE Retail Index was rebranded as the BRIXX Retail 
Index; (3) the AF CRE Residential Index was rebranded as the BRIXX 
Residential Index; (4) the AF CRE Hospitality Index was rebranded as 
the BRIXX Hospitality Index; and (5) the AF CRE Composite Index was 
rebranded as the BRIXX Composite Index.\4\
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    \3\ See Securities Exchange Act Release No. 88767 (April 29, 
2020), 85 FR 26743 (May 5, 2020) (SR-MIAX-2020-08) (Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change to List and 
Trade Options That Overlie Five Advanced Fundamentals LLC Commercial 
Real Estate Indexes) (the ``AF CRE Index Notice''). The AF CRE 
Indexes measure real-time real estate returns representing the 
performance of real estate investment trusts (``REITs'') and/or 
publicly listed equity companies across various sectors. See id.
    \4\ See Securities Exchange Act Release No. 91542 (April 13, 
2021), 86 FR 20426 (April 19, 2021) (SR-MIAX-2021-09).
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    Currently, Interpretation and Policy .01 to Exchange Rule 1801, 
provides a table showing the reporting authority \5\ for certain 
indexes on which the Exchange may list and trade options, including 
Devexperts \6\ as the reporting authority for each of the BRIXX 
Indexes. Further, Exchange Rules 1809(a)(3)-(5) provide that the 
Exchange is able to list up to twelve (12) standard monthly expirations 
on the BRIXX Indexes, options on the BRIXX Indexes would be European-
style index options, and options on the BRIXX Indexes would be A.M-
settled.\7\
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    \5\ The term ``reporting authority'' with respect to a 
particular index means the institution or reporting service 
designated by the Exchange as the official source for (1) 
calculating the level of the index from the reported prices of the 
underlying securities that are the basis of the index and (2) 
reporting such level. The reporting authority for each index 
approved for options trading on the Exchange shall be Specified (as 
provided in Rule 1800) in the Interpretations and Policies to Rule 
1801. See Exchange Rule 1801(p).
    \6\ Devexperts provides consulting and software development 
services for the financial industry, including calculation and 
reporting services, on-line and desktop trading execution platforms, 
risk management and fix gateways, and real-time and historical data 
services. See https://devexperts.com/about-devexperts/.
    \7\ See Exchange Rules 1809(a)(3)-(5).
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Proposal
    The Exchange proposes to amend Interpretation and Policy .01 to 
Exchange Rule 1801 and Exchange Rules 1809(a)(3)-(5) to remove rule 
text related to the BRIXX Indexes. Since the publication of the AF CRE 
Index Notice and to date, the Exchange has not listed options for 
trading on the BRIXX Indexes for business reasons and has determined 
not to list options for trading on the BRIXX Indexes in the future. 
Accordingly, the Exchange proposes to amend Exchange Rules 1801, 
Interpretation and Policy .01, and 1809(a)(3)-(5) to remove all rule 
text related to the BRIXX Indexes. The purpose of this change is to 
provide clarity in the rule text that the Exchange does not plan to 
list for trading options on the BRIXX Indexes.
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.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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    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 \10\ and the public regarding the Exchange's rules. In 
particular, by removing all rule text related to the BRIXX Indexes, the 
Exchange's rules will be clear that the Exchange does not plan to list 
options on the BRIXX Indexes and 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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    \10\ 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

    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 add clarity to the rulebook that the Exchange 
will not

[[Page 66216]]

offer options for trading on the BRIXX Indexes.
    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 product 
offerings.

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 after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) \12\ 
thereunder.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization 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.
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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 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.

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-2022-39 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-2022-39. 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-2022-39, and should be submitted on 
or before November 23, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-23783 Filed 11-1-22; 8:45 am]
BILLING CODE 8011-01-P