[Federal Register Volume 85, Number 95 (Friday, May 15, 2020)]
[Notices]
[Pages 29497-29499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10392]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88850; File No. SR-MIAX-2020-09]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Its Fee Schedule
May 11, 2020.
Pursuant to the provisions of Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
[[Page 29498]]
thereunder,\2\ notice is hereby given that on April 29, 2020, 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.
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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 Options Fee
Schedule (the ``Fee Schedule'').
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 list of MIAX Select Symbols \3\
contained in the Priority Customer Rebate Program (the ``Program'') \4\
of the Exchange's Fee Schedule to delete the Select Symbol ``S,''
associated with the Sprint Corporation (``Sprint''), from the Select
Symbols list.
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\3\ The term ``MIAX Select Symbols'' means options overlying
AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BB, BIDU, BP, C, CAT,
CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, GOOGL, GPRO,
HAL, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, NOK, ORCL,
PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, T, TSLA, USO, VALE, WBA, WFC,
WMB, X, XHB, XLE, XLF, XLP, XOM and XOP.
\4\ See section 1(a)(iii) of the Fee Schedule for a complete
description of the Program.
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The Exchange initially created the list of MIAX Select Symbols on
March 1, 2014,\5\ and has added and removed option classes from that
list since that time.\6\ Select Symbols are rebated slightly higher in
certain Program tiers than non-Select Symbols. The Exchange notes that
on April 1, 2020, Sprint and T-Mobile US, Inc. (``T-Mobile'') announced
the completion of a merger of the two companies, with T-Mobile
continuing as the surviving company and Sprint shares converting into
the right to receive T-Mobile shares.\7\ Further, the combined company
will continue to trade under the symbol for T-Mobile, ``TMUS.'' Options
on Sprint were authorized to be listed for trading on the Exchange
pursuant to Rule 402, but are no longer listed for trading since Sprint
is no longer the registered stock symbol for the merged company and as
such, Sprint shares are no longer listed for trading on equity trading
venues under the symbol ``S.'' The Exchange has also determined not to
add the merged company, T-Mobile, to the MIAX Select Symbols list for
business and competitive reasons.
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\5\ See Securities Exchange Act Release No. 71700 (March 12,
2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
\6\ See Securities Exchange Act Release Nos. 87964 (January 14,
2020), 85 FR 3435 (January 21, 2020) (SR-MIAX-2020-01); 87790
(December 18, 2019), 84 FR 71037 (December 26, 2019) (SR-MIAX-2019-
49); 85314 (March 14, 2019), 84 FR 10359 (March 20, 2019) (SR-MIAX-
2019-07); 81998 (November 2, 2017), 82 FR 51897 (November 8, 2017)
(SR-MIAX-2017-45); 81019 (June 26, 2017), 82 FR 29962 (June 30,
2017) (SR-MIAX-2017-29); 79301 (November 14, 2016), 81 FR 81854
(November 18, 2016) (SR-MIAX-2016-42); 74291 (February 18, 2015), 80
FR 9841 (February 24, 2015) (SR-MIAX-2015-09); 74288 (February 18,
2015), 80 FR 9837 (February 24, 2015) (SR-MIAX-2015-08); 73328
(October 9, 2014), 79 FR 62230 (October 16, 2014) (SR-MIAX-2014-50);
72567 (July 8, 2014), 79 FR 40818 (July 14, 2014) (SR-MIAX-2014-34);
72356 (June 10, 2014), 79 FR 34384 (June 16, 2014) (SR-MIAX-2014-
26); 71700 (March 12, 2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-
2014-13).
\7\ See T-Mobile Completes Merger with Sprint to Create the New
T-Mobile (April 1, 2020), available at https://newsroom.sprint.com/tmobile-completes-merger-with-sprint.htm.
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Accordingly, the Exchange is amending its Fee Schedule to delete
the symbol ``S'' from the list of MIAX Select Symbols contained in the
Program. This amendment is intended to eliminate any potential
confusion and to make it clear to market participants that ``S'' will
not be a MIAX Select Symbol contained in the Program as ``S'' options
are no longer listed on the Exchange.
2. Statutory Basis
The Exchange believes that its proposal to amend the Fee Schedule
is consistent with Section 6(b) of the Act \8\ in general, and furthers
the objectives of Section 6(b)(4) of the Act,\9\ in that it is an
equitable allocation of reasonable dues, fees and other charges among
Exchange members and issuers and other persons using its facilities,
and 6(b)(5) of the Act,\10\ 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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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
\10\ 15 U.S.C. 78f(b)(1) and (b)(5).
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In particular, the proposal to delete the symbol ``S'' from the
list of MIAX Select Symbols contained in the Program is consistent with
Section 6(b)(4) of the Act because the proposed changes will allow for
continued benefit to investors by providing them an updated list of
MIAX Select Symbols contained in the Program on the Exchange's Fee
Schedule.
The Exchange believes that the proposal to amend an option class
that qualifies for the credit for transactions in MIAX Select Symbols
is fair, equitable and not unreasonably discriminatory. The Exchange
believes that the Program itself is reasonably designed because it
incentivizes providers of Priority Customer \11\ order flow to send
that Priority Customer order flow to the Exchange in order to receive a
credit in a manner that enables the Exchange to improve its overall
competitiveness and strengthen its market quality for all market
participants. The Program, which provides increased incentives in
certain tiers in high volume select symbols, is also reasonably
designed to increase the competitiveness of the Exchange with other
options exchanges that also offer increased incentives to higher volume
symbols.
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\11\ The term ``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 account(s). See
Exchange Rule 100.
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The Exchange also believes that its proposal is consistent with
Section 6(b)(5) of the Act because it will apply equally to all
Priority Customer orders in MIAX Select Symbols in the Program. All
similarly situated Priority Customer orders in MIAX Select Symbols are
subject to the same rebate schedule, and access to the Exchange is
offered on terms that are not unfairly discriminatory.
[[Page 29499]]
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 a not a competitive filing but rather is designed to
update the list of MIAX Select Symbols contained in the Program in
order to avoid potential confusion on the part of market participants.
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,\12\ and Rule 19b-4(f)(2) \13\ 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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\12\ 15 U.S.C. 78s(b)(3)(A)(ii).
\13\ 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-MIAX-2020-09 on the subject line.
Paper Comments
Send paper comments in triplicate to Vanessa Countryman,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-MIAX-2020-09. 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-2020-09 and should be submitted on
or before June 5, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-10392 Filed 5-14-20; 8:45 am]
BILLING CODE 8011-01-P