80878 Federal Register / Vol. 85, No. 240 / Monday, December 14, 2020 / Notices 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The 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 and the Definitions section of 

the Fee Schedule. 

4 ‘‘Electronic Exchange Member’’ or ‘‘EEM’’ 

means the holder of a Trading Permit who is not 

a Market Maker. Electronic Exchange Members are 

deemed ‘‘members’’ under the Exchange Act. See 

Exchange Rule 100 and the Definitions section of 

the Fee Schedule. 

5The term ‘‘Market Makers’’ refers to ‘‘Lead 

Market Makers’’, ‘‘Primary Lead Market Makers’’ 

and ‘‘Registered Market Makers’’ collectively. See 

Exchange Rule 100 and the Definitions section of 

the Fee Schedule. 

6 15 U.S.C. 78f. 

7See Securities Exchange Act Release No. 84891 

(December 20, 2018), 83 FR 67421 (December 28, 

2018) (File No. 10–233) (order approving 

application of MIAX Emerald, LLC for registration 

as a national securities exchange). 

8See Securities Exchange Act Release No. 85393 

(March 21, 2019), 84 FR 11599 (March 27, 2019) 

(SR–EMERALD–2019–15) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

To Establish the MIAX Emerald Fee Schedule). 

9 ‘‘Waiver Period’’ means, for each applicable fee, 

the period of time from the initial effective date of 

the MIAX Emerald Fee Schedule until such time 

that the Exchange has an effective fee filing 

establishing the applicable fee. The Exchange will 

issue a Regulatory Circular announcing the 

establishment of an applicable fee that was subject 

to a Waiver Period at least fifteen (15) days prior 

to the termination of the Waiver Period and 

effective date of any such applicable fee. See the 

Definitions Section of the Fee Schedule. 

10See MIAX Emerald Regulatory Circular 2020– 

41 available at https://www.miaxoptions.com/sites/ 

default/files/circular-files/MIAX_Emerald_RC_

2020_41.pdf. 

11See Securities Exchange Act Release Nos. 

90183 (October 14, 2020), 85 FR 66607 (October 20, 

2020) (SR–EMERALD–2020–09) (Notice of Filing 

and Immediate Effectiveness of a Proposed Rule 

Change To Amend Its Fee Schedule To Adopt 

Application Programming Interface (‘‘API’’) Testing 

and Certification Fees and Network Connectivity 

Testing and Certification Fees); 90196 (October 15, 

2020), 85 FR 67064 (October 21, 2020) (SR– 

EMERALD–2020–11) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

To Amend Its Fee Schedule To Adopt One-Time 

Membership Application Fees and Monthly Trading 

Permit Fees). The Exchange’s prior proposals to 

establish the one-time membership application fee 

and per-instance API Testing and Certification fees 

and Network Connectivity Testing and Certification 

fees are collectively referred to herein as the ‘‘First 

Proposed Rule Changes.’’ The Exchange notes that 

it will refile its proposal to establish monthly 

Trading Permit fees in a separate filing. 

12See id. 

13See Comment Letter from Joseph W. Ferraro III, 

SVP, Deputy General Counsel, the Exchange, dated 

November 20, 2020, notifying the Commission that 

the Exchange will withdraw the First Proposed Rule 

Changes. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90597; File No. SR– 

EMERALD–2020–15] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fee 

Schedule To Adopt a One-Time 

Membership Application Fee, 

Application Programming Interface 

(‘‘API’’) Testing and Certification Fees, 

and Network Connectivity Testing and 

Certification Fees 

December 8, 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 November 

25, 2020, 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. 

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 establish: (1) 

One-time membership application fees 

for new MIAX Emerald Members; 3 and 

(2) per-instance Application 

Programming Interface (‘‘API’’) Testing 

and Certification fees and Network 

Connectivity Testing and Certification 

fees for Members and non-Members. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/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 establish: (1) One-time 

membership application fees for new 

MIAX Emerald Members based upon the 

applicant’s status as either an Electronic 

Exchange Member (‘‘EEM’’) 4 or as a 

Market Maker; 5 and (2) per-instance 

API Testing and Certification fees and 

Network Connectivity Testing and 

Certification fees for Members and nonMembers. 

MIAX Emerald commenced 

operations as a national securities 

exchange registered under Section 6 of 

the Act 6 on March 1, 2019.7 The 

Exchange adopted its transaction fees 

and certain of its non-transaction fees in 

its filing SR–EMERALD–2019–15.8 In 

that filing, the Exchange expressly 

waived, among other fees, the one-time 

membership application fee and perinstance API Testing and Certification 

fees and Network Connectivity Testing 

and Certification fees, both for Members 

and non-Members, in order to provide 

an incentive to prospective market 

participants to become Exchange 

Members and for prospective Members 

and non-Members to connect to MIAX 

Emerald as soon as possible. At that 

time, the Exchange waived the one-time 

membership application fee and perinstance API Testing and Certification 

fees and Network Connectivity Testing 

and Certification fees for the Waiver 

Period,9 and stated that it would 

provide notice to market participants 

when the Exchange intended to 

terminate the Waiver Period. 

On September 15, 2020, the Exchange 

issued a Regulatory Circular which 

announced that the Exchange would 

terminate the Waiver Period for, among 

other fees, the one-time membership 

application fee and per-instance API 

Testing and Certification fees and 

Network Connectivity Testing and 

Certification fees for Members and nonMembers, beginning October 1, 2020.10

The Exchange initially filed its 

proposals to establish the one-time 

membership application fee and perinstance API Testing and Certification 

fees and Network Connectivity Testing 

and Certification fees on October 1, 

2020.11 The First Proposed Rule 

Changes were published for comment in 

the Federal Register between October 

20–21, 2020.12 On November 25, 2020, 

the Exchange withdrew the First 

Proposed Rule Changes and refiled its 

proposal to establish the one-time 

membership application fee and perinstance API Testing and Certification 

fees and Network Connectivity Testing 

and Certification fees.13


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14See Chapter VI of the Exchange’s rules, 

generally. 15See MIAX Fee Schedule, Section (3)(a). 16See Cboe Fees Schedule, p. 9, Cboe Trading 

Permit Holder Application Fees. 17See Nasdaq ISE, Options Rules, Options 7, 

Pricing Schedule, Section 9. Legal and Regulatory 

A. Application. 

18 ‘‘FIX Port’’ means an interface with MIAX 

Emerald systems that enables the Port user to 

submit simple and complex orders electronically to 

MIAX Emerald. See the Definitions section of the 

Fee Schedule. 

19The FIX Drop Copy (‘‘FXD’’) Port is a 

messaging interface that will provide a copy of realtime trade execution, trade correction and trade 

cancellation information to FXD Port users who 

subscribe to the service. FXD Port users are those 

users who are designated by an EEM to receive the 

information and the information is restricted for use 

by the EEM. FXD Port Fees will be assessed in any 

month the Member is credentialed to use the FXD 

Port in the production environment. See the 

Definitions section of the Fee Schedule. 

20 ‘‘CTD Port’’ or ‘‘Clearing Trade Drop Port’’ 

provides an Exchange Member with a real-time 

clearing trade updates. The updates include the 

Member’s clearing trade messages on a low latency, 

real-time basis. The trade messages are routed to a 

Member’s connection containing certain 

information. The information includes, among other 

things, the following: (i) Trade date and time; (ii) 

symbol information; (iii) trade price/size 

information; (iv) Member type (for example, and 

without limitation, Market Maker, Electronic 

Exchange Member, Broker-Dealer); and (v) 

Exchange MPID for each side of the transaction, 

including Clearing Member MPID. See the 

Definitions section of the Fee Schedule. 

21The MEI is a connection to the MIAX Emerald 

System that enables Market Makers to submit 

simple and complex electronic quotes to MIAX 

Emerald. The Exchange offers Full Service MEI 

Ports, which provide Market Makers with the 

ability to send Market Maker simple and complex 

quotes, eQuotes, and quote purge messages to the 

MIAX Emerald System. Full Service MEI Ports are 

also capable of receiving administrative 

information. Market Makers are limited to two Full 

Service MEI Ports per Matching Engine. The 

Exchange also offers Limited Service MEI Ports, 

which provide Market Makers with the ability to 

send simple and complex eQuotes and quote purge 

messages only, but not Market Maker Quotes, to the 

MIAX Emerald System. Limited Service MEI Ports 

are also capable of receiving administrative 

information. Market Makers initially receive two 

Limited Service MEI Ports per Matching Engine. 

See the Definitions section of the Fee Schedule. 

22The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

23Third Party Vendors are subscribers of MIAX 

Emerald’s market and other data feeds, which they 

in turn use for redistribution purposes. See the 

Definitions section of the Fee Schedule. 

24 ‘‘Service Bureau’’ means a technology provider 

that offers and supplies technology and technology 

services to a trading firm that does not have its own 

proprietary system. See the Definitions section of 

the Fee Schedule. 

One-Time Membership Application Fee 

The Exchange proposes to assess a 

one-time membership application fee 

based upon the applicant’s status as 

either an EEM or as a Market Maker. 

The Exchange proposes that applicants 

for MIAX Emerald membership as an 

EEM will be assessed a one-time 

application fee of $2,500. The Exchange 

proposes that applicants for MIAX 

Emerald membership as a Market Maker 

will be assessed a one-time application 

fee of $3,000. The difference in the 

proposed membership application fee to 

be charged to EEMs and Market Makers 

is because of the additional review and 

resources involved in processing a 

Market Maker’s application, as Market 

Makers have greater and more complex 

obligations with respect to doing 

business on the Exchange.14 MIAX 

Emerald’s proposed one-time 

membership application fees are the 

same as the one-time application fees in 

place at the Exchange’s affiliate, Miami 

International Securities Exchange, LLC 

(‘‘MIAX’’) ($2,500 for an EEM and 

$3,000 for a MIAX Market Maker),15 and 

similar to or less than application fees 

for the Cboe Exchange, Inc. (‘‘Cboe’’) 

($3,000 for an individual applicant and 

$5,000 for an applicant organization) 16

and Nasdaq ISE, LLC (‘‘Nasdaq ISE’’) 

($7,500 per firm for a primary market 

maker, $5,500 per firm for a competitive 

market maker, and $3,500 per firm for 

an electronic access member).17 Below 

is the table showing the proposed onetime membership application fees for 

EEMs and Market Makers: 

Type of membership Application 

fee 

Electronic Exchange Member $2,500.00 

Market Maker ........................ 3,000.00 

API Testing and Certification Fees for 

Members 

The Exchange also proposes to adopt 

an API Testing and Certification fee for 

Members. An API makes it possible for 

Member software to communicate with 

MIAX Emerald software applications, 

and is subject to Member testing with, 

and certification by, MIAX Emerald. API 

testing and certification includes, for 

EEMs, testing all available order types, 

new order entry, order management, 

order throughput and mass order 

cancellation. For Market Makers, API 

testing and certification also includes 

testing of all available quote types, 

quote throughput, quote management 

and cancellation, Aggregate Risk 

Manager settings and triggers, and 

confirmation of quotes within the 

trading engines. 

The API Testing and Certification fees 

for Members are based upon the type of 

interface that the Member has been 

credentialed to use. The Exchange 

proposes to adopt an API testing and 

certification fee for EEMs (other than 

Clearing Firms): (i) Initially per API for 

Financial Information Exchange 

(‘‘FIX’’) 18 ports, FIX Drop Copy 

(‘‘FXD’’) 19 ports and Clearing Trade 

Drop (‘‘CTD’’) 20 ports in the month the 

EEM has been credentialed to use one 

or more ports in the production 

environment for the tested API, and (ii) 

each time an EEM initiates a change to 

its system that requires testing and 

certification. The Exchange proposes to 

adopt an API testing and certification 

fee for EEM Clearing Firms (i) initially 

per API in the month the EEM Clearing 

Firm has been credentialed to use one 

or more CTD Ports in the production 

environment, and (ii) each time an EEM 

Clearing Firm initiates a change to its 

system that requires testing and 

certification. 

The Exchange proposes to adopt an 

API testing and certification fee for 

Market Makers: (i) Initially per API for 

CTD and MIAX Emerald Express 

Interface (‘‘MEI’’) 21 ports in the month 

the Market Maker has been credentialed 

to use one or more ports in the 

production environment for the tested 

API and the Market Maker has been 

assigned to quote in one or more classes, 

and (ii) each time a Market Maker 

initiates a change to its system that 

requires testing and certification. The 

Exchange also proposes that API Testing 

and Certification fees will not be 

assessed in situations where the 

Exchange initiates a mandatory change 

to the Exchange’s System 22 that requires 

testing and certification. The Exchange 

proposes to assess Member API Testing 

and Certification fees of $1,000 for 

EEMs and $2,500 for Market Makers. 

Below is the proposed table for API 

Testing and Certification fees for 

Members: 

Type of member 

API testing and 

certification 

fee 

Electronic Exchange 

Member ....................... $1,000.00 

Market Maker .................. 2,500.00 

API Testing and Certification Fee for 

Non-Members 

The Exchange proposes to adopt an 

API Testing and Certification fee for 

Third Party Vendors,23 Service 

Bureaus 24 and other non-Members 

(such as clearing firms): (i) Initially per 

API for FIX, FXD, CTD and MEI ports 

in the month the Third Party Vendor, 

Service Bureau or non-Member has been 

credentialed to use one or more ports in 

the production environment for the 

tested API, and (ii) each time a Third 

Party Vendor, Service Bureau, or other 

non-Member initiates a change to its 

system that requires testing and 

certification. The Exchange also 


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25 ‘‘EENI’’ means the Emerald Express Network 

Interconnect, which is a network infrastructure 

which provides Members and non-Members 

network connectivity to the trading platforms, 

market data systems, test systems, and disaster 

recovery facilities of MIAX Emerald. When utilizing 

a Shared cross-connect, the EENI can also be 

configured to offer network connectivity to the 

trading platforms, market data systems, test 

systems, and disaster recovery facilities of MIAX 

and MIAX PEARL. When utilizing a Dedicated 

cross-connect, the EENI can only be configured to 

offer network connectivity to the trading platforms, 

market data systems, and test systems of MIAX 

Emerald. The EENI consists of the low latency and 

ultra-low latency connectivity options set forth in 

the Exchange’s Fee Schedule. See the Definitions 

section of the Fee Schedule. 

26 ‘‘Shared’’ (cross-connect) means cross-connect 

that provides network connectivity to the trading 

platforms, market data systems, test systems, and/ 

or disaster recovery facilities of MIAX Emerald, 

MIAX and MIAX PEARL via a single, shared 

connection. The following connections can be 

Shared across MIAX Emerald, MIAX and MIAX 

PEARL: 1 Gigabit, 1 Gigabit Disaster Recovery, and 

10 Gigabit Disaster Recovery. See the Definitions 

section of the Fee Schedule. 

proposes that API Testing and 

Certification fees will not be assessed to 

non-Members in situations where the 

Exchange initiates a mandatory change 

to the Exchange’s System that requires 

testing and certification. 

The Exchange proposes to assess nonMember API Testing and Certification 

fees of $1,200 for Third Party Vendors, 

Service Bureaus and other nonMembers. Below is the proposed table 

for API Testing and Certification fees for 

non-Members: 

Non-member API testing and 

certification fee 

Third Party Vendors and 

Service Bureaus and 

other non-Members ..... $1,200.00 

The proposed higher fee charged to 

Third Party Vendors, Service Bureaus 

and non-Members reflects the greater 

amount of time spent by MIAX Emerald 

employees testing and certifying nonMembers. It has been MIAX Emerald’s 

experience that Member testing takes 

less time than non-Member testing 

because Members have more experience 

testing these systems with exchanges, 

resulting in generally fewer questions 

and issues arising during the testing and 

certification process. Also, because 

Third Party Vendors and Service 

Bureaus are redistributing data and 

reselling services to other Members and 

market participants, the number and 

types of scenarios that need to be tested 

are more numerous and complex than 

those tested and certified for a single 

Member. 

The Exchange believes it is necessary 

to charge an API Testing and 

Certification fee to Members and nonMembers because of the time and 

resources spent to ensure that Member 

and non-Member APIs function 

correctly to prevent any System 

malfunction. Further, the Exchange 

believes the price differential in API 

Testing and Certification fees for 

Members and non-Members is not 

unfairly discriminatory because, in the 

Exchange’s experience, Member testing 

takes less time than non-Member testing 

as Members have more experience 

testing these systems with exchanges, 

resulting generally in fewer questions 

and issues arising during the testing and 

certification process. 

Network Connectivity Testing and 

Certification Fee for Members 

The Exchange established electronic 

communication connections with 

Members and now proposes to assess 

Members a Network Connectivity 

Testing and Certification fee for each 1 

Gigabit (‘‘Gb’’) connection and 10 Gb 

ultra-low-latency (‘‘ULL’’) connection. 

The Exchange proposes to assess a 

Member Network Connectivity Testing 

and Certification fee: (i) Initially per 

connection in the month the Individual 

Firm has been credentialed to use any 

API or market data feeds in the 

production environment utilizing the 

tested network connection, and (ii) each 

time an individual firm initiates a 

change to its system that requires 

network connectivity testing and 

certification. Network Connectivity 

Testing and Certification fees will not be 

assessed in situations where the 

Exchange initiates a mandatory change 

to the Exchange’s system that requires 

testing and certification. Member 

Network Connectivity Testing and 

Certification fees will not be assessed 

for testing and certification of 

connectivity to the Exchange’s Disaster 

Recovery Facility. 

The Exchange proposes to assess 

Members a Network Connectivity 

Testing and Certification Fee of $1,000 

per 1Gb connection and $4,000 per 

10Gb ULL connection. Below is the 

proposed table for Member Network 

Connectivity Testing and Certification 

fees: 

Type of member 

1 Gigabit 

fee per 

connection 

10 Gigabit 

ULL fee per 

connection 

Individual Firm .. $1,000.00 $4,000.00 

The proposed fee amounts are 

identical to the fees currently assessed 

for the same services at the Exchange’s 

affiliates, MIAX and MIAX PEARL, LLC 

(‘‘MIAX PEARL’’). The Exchange notes 

that the Emerald Express Network 

Interconnect (‘‘EENI’’) 25 is a network 

infrastructure which provides Members 

and non-Members network connectivity 

to the trading platforms, market data 

systems, test systems, and disaster 

recovery facility of the Exchange. When 

utilizing a Shared 26 cross-connect, the 

EENI can also be configured to offer 

network connectivity to the trading 

platforms, market data systems, test 

systems, and disaster recovery facilities 

of the Exchange’s affiliates, MIAX and 

MIAX PEARL. Members utilizing a 

single, Shared cross-connect to connect 

to the trading platforms, market data 

systems, test systems, and disaster 

recovery facilities of the Exchange, 

MIAX and MIAX PEARL will only be 

assessed one Network Connectivity 

Testing and Certification fee per 

connection tested, regardless of the 

trading platforms, market data systems, 

test systems, and disaster recovery 

facilities accessed via such connection. 

Network Connectivity Testing and 

Certification Fee for Non-Members 

MIAX Emerald established electronic 

communication connections with 

Service Bureaus, Extranet Providers and 

other non-Members, and now proposes 

to assess a Network Connectivity 

Testing and Certification fee for each 

1Gb connection and 10Gb ULL 

connection. The Exchange proposes to 

assess a non-Member Network 

Connectivity Testing and Certification 

fee: (i) Initially per connection in the 

month the Service Bureau, Extranet 

Provider or other non-Member has been 

credentialed to use any API or market 

data feeds in the production 

environment using the tested network 

connection, and (ii) each time the 

Service Bureau, Extranet Provider or 

other non-Member initiates a change to 

its system that requires network 

connectivity testing and certification. 

Network Connectivity Testing and 

Certification fees will not be assessed in 

situations where the Exchange initiates 

a mandatory change to the Exchange’s 

system that requires testing and 

certification. Non-Member Network 

Connectivity Testing and Certification 

fees will not be assessed for testing and 

certification of connectivity to the 

Exchange’s Disaster Recovery Facility. 

The Exchange proposes to assess nonMembers a Network Connectivity 

Testing and Certification Fee of $1,200 

per 1Gb connection and $4,200 per 

10Gb ULL connection. Below is the 

proposed table for non-Member 

Network Connectivity Testing and 

Certification fees: 


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27See MIAX Fee Schedule, Sections 4(c) and 4(d); 

see also MIAX PEARL Fee Schedule, Sections 4(c) 

and 4(d). 

28 15 U.S.C. 78f(b). 

29 15 U.S.C. 78f(b)(4) and (5). 

30See the Exchange’s Membership and Technical 

Onboarding process, available at https://

www.miaxoptions.com/membership/emerald. 

31 15 U.S.C. 78f(b)(4). 

32See supra note 14. 

33 15 U.S.C. 78f(b)(4). 

Non-member 

1 Gigabit 

fee per 

connection 

10 Gigabit 

ULL fee per 

connection 

Service Bureau/ 

Extranet Provider and 

other nonMembers ....... $1,200.00 $4,200.00 

The EENI is also available to nonMember subscribers. For non-Member 

subscribers, when utilizing a Shared 

cross-connect, the EENI can also be 

configured to offer network connectivity 

to the trading platforms, market data 

systems, test systems, and disaster 

recovery facilities of the Exchange’s 

affiliates, MIAX and MIAX PEARL. 

Accordingly, non-Members utilizing 

Shared cross-connects to connect to the 

trading platforms, market data systems, 

test systems, and disaster recovery 

facilities of the Exchange and its 

affiliates, MIAX and MIAX PEARL, will 

only be assessed one Network 

Connectivity Testing and Certification 

fee per connection tested, regardless of 

the trading platforms, market data 

systems, test systems, and disaster 

recovery facilities accessed via such 

connection. The Member and nonMember Network Testing and 

Certification fees represent installation 

and support costs incurred by the 

Exchange as it works with each Member 

and non-Member to make sure there are 

appropriate electronic communication 

connections with MIAX Emerald. The 

Exchange’s affiliates, MIAX and MIAX 

PEARL, charge the same fees for the 

same services for their Members and 

non-Members.27 The Exchange proposes 

to assess a higher Network Connectivity 

Testing and Certification fee to nonMembers than to Members, similar to 

how MIAX and MIAX PEARL assesses 

such fees to their Members and nonMembers. The higher fee charged to 

non-Members reflects the greater 

amount of time spent by MIAX Emerald 

employees testing and certifying nonMembers. It has been MIAX Emerald’s 

experience that Member network 

connectivity testing takes less time than 

non-Member network connectivity 

testing because Members have more 

experience testing these systems with 

exchanges as generally fewer questions 

and issues arise during the testing and 

certification process. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 28

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 29 in 

particular, in that it is an equitable 

allocation of reasonable dues, 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. 

The Exchange believes the proposed 

one-time membership application fee is 

reasonable, equitable and not unfairly 

discriminatory because it is a one-time, 

de minimis fee that is reasonably related 

to (and designed to recover) the 

Exchange’s cost associated with 

reviewing and approving membership 

applications, which consists primarily 

of the time and resources of Exchange 

personnel to process the membership 

application and conduct the new 

member on-boarding process. The 

Exchange’s process for reviewing and 

approving potential new Members 

involves several steps and participation 

from personnel in multiple Exchange 

departments, as follows: (i) Reviewing 

prospective Member information 

included in various membership forms, 

including, where necessary, possibly 

consulting with FINRA, pursuant to the 

Exchange’s Regulatory Services 

Agreement; (ii) the on-boarding process, 

where Exchange personnel contacts the 

firm for an introductory meeting with 

the Exchange’s Business Team to 

discuss goals, answer questions and 

schedule the technical on-boarding 

meeting; (iii) the technical on-boarding 

meeting where the Exchange’s onboarding team and Trading Operations 

Team guides the firm through the onboarding process with Exchange 

personnel available to discuss network 

connectivity, APIs, Exchange 

functionality and operational issues; 

and (iv) follow-ups with the Trading 

Operations Team to coordinate testing, 

as necessary, until the firm is active in 

the Exchange’s live trading 

environment.30 The Exchange tracks the 

number of hours spent by Exchange 

personnel providing the aforementioned 

services per membership application. 

Based on the Exchange’s average cost 

per full-time employee (‘‘FTE’’), the 

Exchange represents that its cost to 

provide this service is reasonably 

related to (and often exceeds) the 

amount of the membership application 

fee the Exchange proposes to charge for 

such service. Accordingly, the proposed 

fee would enable the Exchange to 

recover a material portion of such cost. 

The Exchange believes the difference 

in the proposed membership 

application fee to be charged to EEMs 

and Market Makers is an equitable 

allocation of reasonable dues and fees 

pursuant to Section 6(b)(4) of the Act 31

because of the additional review and 

resources involved in processing a 

Market Maker’s application as opposed 

to an EEM’s application, as Market 

Makers have greater and more complex 

obligations with respect to doing 

business on the Exchange.32

The Exchange believes its proposal to 

adopt API Testing and Certification fees 

and Network Connectivity Testing and 

Certification fees for Members and nonMembers is an equitable allocation of 

reasonable dues and fees pursuant to 

Section 6(b)(4) of the Act 33 because it is 

a per-instance, de minimis fee that is 

reasonably related to (and designed to 

recover) the Exchange’s cost associated 

with providing such API Testing and 

Certification services and Network 

Connectivity Testing and Certification 

services, which consists primarily of the 

time and resources spent to ensure that 

Member and non-Member APIs and 

connectivity function correctly to 

prevent any System malfunction. The 

Exchange tracks the number of hours 

spent by Exchange personnel providing 

the aforementioned services per billable 

instance. Based on the Exchange’s 

average cost per FTE, the Exchange 

represents that its costs to provide these 

services are reasonably related to (and 

often exceed) the amount of the 

respective testing and certification fees 

the Exchange proposes to charge for 

such service. Accordingly, the proposed 

fees would enable the Exchange to 

recover a material portion of such costs. 

Further, the Exchange believes the 

price differential in API Testing and 

Certification fees and Network 

Connectivity Testing and Certification 

fees for Members and non-Members is 

not unfairly discriminatory because, in 

the Exchange’s experience, Member 

testing utilizes less Exchange resources 

and employee time than non-Member 

testing as Members have more 


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80882 Federal Register / Vol. 85, No. 240 / Monday, December 14, 2020 / Notices 

34See supra notes 15, 16 and 17. 

35See supra note 14. 

36See supra notes 15, 16 and 17. 

37 15 U.S.C. 78s(b)(3)(A)(ii). 

38 17 CFR 240.19b–4(f)(2). 

experience testing these systems with 

exchanges, resulting generally in fewer 

questions and issues arising during the 

testing and certification process. Also, 

with respect to API testing and 

certification, because Third Party 

Vendors and Service Bureaus are 

redistributing data and reselling services 

to other Members and market 

participants the number and types of 

scenarios that need to be tested are more 

numerous and complex than those 

tested and certified for Members. The 

Exchange believes its proposed API 

Testing and Certification fees and 

Network Connectivity Testing and 

Certification fees are reasonable and 

well within the range of non-transaction 

fees assessed among other exchanges, 

including the Exchange’s affiliates, 

MIAX and MIAX PEARL.34

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. 

Intra-Market Competition 

The Exchange believes that the 

proposed fees do not put any market 

participants at a relative disadvantage 

compared to other market participants. 

The proposed fees would apply to all 

new Exchange Members and those firms 

looking to establish APIs and network 

connectivity in the same manner. 

Market participants may not only 

choose whether to become Exchange 

Members at all, but may choose to 

become members at competing options 

exchanges instead. 

The Exchange also believes that the 

proposed fees neither favor nor penalize 

one or more categories of market 

participants in a manner that would 

impose an undue burden on 

competition. To the extent that various 

market participants are charged 

different fees for the one-time 

membership application and perinstance API and network connectivity 

testing, those distinctions are not 

unfairly discriminatory and do not 

unfairly burden one set of market 

participants over another. The 

difference in the proposed membership 

application fee to be charged to EEMs 

and Market Makers is because of the 

additional review and resources 

involved in processing a Market Maker’s 

application, as Market Makers have 

greater and more complex obligations 

with respect to doing business on the 

Exchange.35 The proposed higher fee 

charged to Third Party Vendors, Service 

Bureaus and non-Members reflects the 

greater amount of time spent by MIAX 

Emerald employees testing and 

certifying non-Members. It has been 

MIAX Emerald’s experience that 

Member testing takes less time than 

non-Member testing because Members 

have more experience testing these 

systems with exchanges, resulting in 

generally fewer questions and issues 

arising during the testing and 

certification process. Also, because 

Third Party Vendors and Service 

Bureaus are redistributing data and 

reselling services to other Members and 

market participants, the number and 

types of scenarios that need to be tested 

are more numerous and complex than 

those tested and certified for a single 

Member. The higher fee charged to nonMembers reflects the greater amount of 

time spent by MIAX Emerald employees 

testing and certifying non-Members. It 

has been MIAX Emerald’s experience 

that Member network connectivity 

testing takes less time than non-Member 

network connectivity testing because 

Members have more experience testing 

these systems with exchanges as 

generally fewer questions and issues 

arise during the testing and certification 

process. MIAX Emerald’s proposed onetime membership application fee and 

per-instance API Testing and 

Certification fee levels and Network 

Connectivity Testing and Certification 

fee levels, as described herein, are 

comparable to fee levels charged by 

other options exchanges for the same or 

similar services, including those fees 

assessed by the Exchange’s affiliates, 

MIAX and MIAX PEARL.36

The Exchange believes that the 

proposed API Testing and Certification 

fees and Network Connectivity Testing 

and Certification fees do not place 

certain market participants at a relative 

disadvantage to other market 

participants because the fees do not 

apply unequally to different size market 

participants, but instead would allow 

the Exchange to charge for the time and 

resource necessary for API testing and 

certification and network connectivity 

testing and certification for Members 

and non-Members to ensure proper 

functioning of all available order types, 

new order entry, order management, 

order throughput and mass order 

cancellation (as well as, for Market 

Makers, all available quote types, quote 

throughput, quote management and 

cancellation, Aggregate Risk Manager 

settings and triggers, and confirmation 

of quotes within the trading engines). 

Accordingly, the proposed API Testing 

and Certification fees and network 

connectivity testing and certification 

fees do not favor certain categories of 

market participants in a manner that 

would impose a burden on competition. 

Inter-Market Competition 

The Exchange believes the proposed 

API Testing and Certification fees and 

Network Connectivity Testing and 

Certification fees do not place an undue 

burden on competition on other SROs 

that is not necessary or appropriate. The 

Exchange believes that the proposed 

fees do not impose a burden on 

competition or on other exchanges that 

is not necessary or appropriate because 

of the availability of numerous 

substitute options exchanges. There are 

15 other options exchanges where 

market participants can become 

members. 

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,37 and Rule 

19b–4(f)(2) 38 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. 

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 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 85, No. 240 / Monday, December 14, 2020 / Notices 80883 

39 17 CFR 200.30–3(a)(12). 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

EMERALD–2020–15 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–2020–15. 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–2020–15 and 

should be submitted on or before 

January 4, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.39

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–27391 Filed 12–11–20; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 11261] 

60-Day Notice of Proposed Information 

Collection: Advance Notification Form: 

Tourist and Other Non-Governmental 

Activities in the Antarctic Treaty Area 

ACTION: Notice of request for public 

comment. 

SUMMARY: The Department of State is 

seeking Office of Management and 

Budget (OMB) approval for the 

information collection described below. 

In accordance with the Paperwork 

Reduction Act of 1995, we are 

requesting comments on this collection 

from all interested individuals and 

organizations. The purpose of this 

notice is to allow 60 days for public 

comment preceding submission of the 

collection to OMB. 

DATES: The Department will accept 

comments from the public up to 

February 12, 2021. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• Web: Persons with access to the 

internet may comment on this notice by 

going to www.Regulations.gov. You can 

search for the document by entering 

‘‘Docket Number: DOS–2020–0051’’ in 

the Search field. Then click the 

‘‘Comment Now’’ button and complete 

the comment form. 

• Email: Antarctica@state.gov. 

• Regular Mail: Send written 

comments to: William Muntean, Senior 

Advisor for Antarctica, Office of Ocean 

and Polar Affairs, Room 2665, Bureau of 

Oceans, Environment and Science, U.S. 

Department of State, 2201 C Street NW, 

Washington ,DC 20520. 

You must include the DS form number, 

information collection title, and the 

OMB control number in any 

correspondence. 

SUPPLEMENTARY INFORMATION: 

• Title of Information Collection: 

ADVANCE NOTIFICATION FORM: 

Tourist and Other Non-Governmental 

Activities in the Antarctic Treaty Area. 

• OMB Control Number: 1405–0181. 

• Type of Request: Revision of a 

Currently Approved Collection. 

• Originating Office: Bureau of 

Oceans and International Environmental 

and Scientific Affairs (OES/OPA). 

• Form Number: DS–4131. 

• Respondents: Operators of Antarctic 

expeditions organized in or proceeding 

from the United States. 

• Estimated Number of Respondents: 

25. 

• Estimated Number of Responses: 

25. 

• Average Time per Response: 9 

hours. 

• Total Estimated Burden Time: 225 

hours 

• Frequency: On occasion. 

• Obligation to Respond: Required to 

comply with Article VII(5)(a) of the 

Antarctic Treaty and associated 

documents. 

We are soliciting public comments to 

permit the Department to: 

• Evaluate whether the proposed 

information collection is necessary for 

the proper functions of the Department. 

• Evaluate the accuracy of our 

estimate of the time and cost burden for 

this proposed collection, including the 

validity of the methodology and 

assumptions used. 

• Enhance the quality, utility, and 

clarity of the information to be 

collected. 

• Minimize the reporting burden on 

those who are to respond, including the 

use of automated collection techniques 

or other forms of information 

technology. 

Please note that comments submitted in 

response to this Notice are public 

record. Before including any detailed 

personal information, you should be 

aware that your comments as submitted, 

including your personal information, 

will be available for public review. 

Abstract of Proposed Collection 

Information solicited on the Advance 

Notification Form (DS–4131) provides 

the U.S. Government with information 

on tourist and other non-governmental 

expeditions to the Antarctic Treaty area. 

The U.S. Government needs this 

information to comply with Article 

VII(5)(a) of the Antarctic Treaty and 

associated documents. 

Methodology 

The Form DS–4131 is available by 

download from the Department’s 

website. The information will be 

submitted by U.S. organizers of tourist 

and other non-governmental 

expeditions to Antarctica by means of 

this form. The form should be submitted 

via email, although signed originals 

submitted by regular mail are also valid. 

Evan T. Bloom, 

Director. 

[FR Doc. 2020–27358 Filed 12–11–20; 8:45 am] 

BILLING CODE 4710–09–P 


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