Federal Register / Vol. 88, No. 188 / Friday, September 29, 2023 / Notices 67381 

26 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Facilitation Mechanism is a process by 

which an Electronic Access Member can execute a 

transaction wherein the Electronic Access Member 

seeks to facilitate a block-size order it represents as 

agent, and/or a transaction wherein the Electronic 

Access Member solicited interest to execute against 

a block-size order it represents as agent. Electronic 

Access Members must be willing to execute the 

entire size of orders entered into the Facilitation 

Mechanism. See Options 3, Section 11(b). 

Additionally, Electronic Access Members may use 

the Facilitation Mechanism to execute block-size 

Complex Orders at a net price. See Options 3, 

Section 11(c) for the rules governing complex 

Facilitation Mechanism. 

4The Solicited Order Mechanism is a process by 

which an Electronic Access Member can attempt to 

execute orders of 500 or more contracts it represents 

as agent (the ‘‘Agency Order’’) against contra orders 

that it solicited. Each order entered into the 

Solicited Order Mechanism shall be designated as 

all-or-none. See Options 3, Section 11(d). 

Additionally, Electronic Access Members may use 

the Solicited Order Mechanism to execute Complex 

Orders at a net price. See Options 3, Section 11(e) 

for the rules governing complex Solicited Order 

Mechanism. 

5The Price Improvement Mechanism is a process 

by which an Electronic Access Member can provide 

price improvement opportunities for a transaction 

wherein the Electronic Access Member seeks to 

facilitate an order it represents as agent, and/or a 

transaction wherein the Electronic Access Member 

solicited interest to execute against an order it 

represents as agent. See Options 3, Section 13. 

Additionally, Electronic Access Members may use 

the Price Improvement Mechanism to execute 

Complex Orders at a net price. See Options 3, 

Section 13(e) for the rules governing complex Price 

Improvement Mechanism. 

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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

PEARL–2023–49 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–PEARL–2023–49. 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 (https://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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. 

All submissions should refer to file 

number SR–PEARL–2023–49 and 

should be submitted on or before 

October 20, 2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21350 Filed 9–28–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98504; File No. SR–MRX– 

2023–17] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Pricing 

Schedule at Options 7 To Specify 

Pricing Related to Unrelated Market or 

Marketable Interest 

September 25, 2023. 

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 

September 14, 2023, Nasdaq MRX, LLC 

(‘‘MRX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the 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 proposes to amend its 

Pricing Schedule at Options 7 to specify 

pricing related to unrelated market or 

marketable interest. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/mrx/rules, at the principal 

office of the Exchange, 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 

Exchange’s Pricing Schedule at Options 

7 to specify pricing related to unrelated 

market or marketable interest. 

Specifically, the Exchange proposes to 

specify the current manner in which the 

Exchange assesses fees and rebates with 

respect to unrelated market or 

marketable interest received prior to the 

commencement of an auction in the 

Facilitation Mechanism (‘‘FAC’’),3

Solicited Order Mechanism (‘‘SOL’’),4

and Price Improvement Mechanism 

(‘‘PIM’’),5 and during such auctions. In 

addition, the Exchange also proposes a 

number of non-substantive amendments 

to Options 7 that will bring more clarity 

to the Exchange’s Pricing Schedule. 

Each change is discussed below. 


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6A ‘‘Crossing Order’’ is an order executed in the 

Exchange’s Facilitation Mechanism, Solicited Order 

Mechanism, Price Improvement Mechanism 

(‘‘PIM’’) or submitted as a Qualified Contingent 

Cross order. For purposes of this Pricing Schedule, 

orders executed in the Block Order Mechanism are 

also considered Crossing Orders. 

7 ‘‘Responses to Crossing Order’’ is any contraside interest (i.e., orders & quotes) submitted after 

the commencement of an auction in the Exchange’s 

Facilitation Mechanism, Solicited Order 

Mechanism, Block Order Mechanism or Price 

Improvement Mechanism. Contra-side interest in 

this context therefore includes both contra-side 

interest submitted specifically in response to an 

auction notification, and unrelated market and 

marketable contra-side interest submitted to the 

order book during the auction. 

8See Section 3, Table 2 (setting forth regular 

order fees for Responses to Crossing Orders except 

PIM Orders); Section 3.A (setting forth regular and 

complex order fees for Responses to PIM Orders) 

and Section 4 (setting forth complex order fees for 

Responses to Crossing Orders except PIM Orders). 

9Thus the regular FAC and SOL Order would be 

assessed the current regular Penny and Non-Penny 

Symbol fee for Crossing Orders as follows: $0.20 per 

contract for a Market Maker, Non-Nasdaq MRX 

Market Maker (FarMM), Firm Proprietary/BrokerDealer, and Professional Customer, and $0.00 per 

contract for a Priority Customer. 

10Thus the complex FAC and SOL Order would 

be assessed the current complex Penny Symbol fee 

of $0.35 per contract and complex Non-Penny 

Symbol fee of $0.85 per contract for all market 

participants except Priority Customers, which do 

not get assessed a complex fee. 

11Thus, unrelated interest would be assessed the 

current regular Penny Symbol fee for Responses to 

Crossing Orders of $0.50 per contract for all market 

participants. Further, they would be assessed the 

current regular Non-Penny Symbol fee for 

Responses to Crossing Orders of $1.10 per contract 

for all market participants. 

12As stated in Options 7, Section 4, the complex 

order fees apply to responses to complex FAC and 

SOL Orders, except complex PIM Orders, which are 

subject to separate PIM response fees in Options 7, 

Section 3.A. Thus, unrelated interest would be 

assessed the current complex Penny Symbol fee of 

$0.35 per contract and complex Non-Penny Symbol 

fee of $0.85 per contract for all market participants 

except Priority Customers, which do not get 

assessed a complex fee. 

13Thus both regular and complex PIM Orders 

would be assessed the current Penny and NonPenny Symbol PIM pricing as follows: $0.20 PIM 

originating order fee for all market participants 

except Priority Customers, who do not get assessed 

this fee, and $0.02 PIM contra-side order fee for all 

market participants. 

14Break-up Rebates only apply to regular PIM 

Orders of 500 or fewer contracts and to complex 

PIM Orders where the largest leg is 500 or fewer 

contracts, and are provided for an originating 

Priority Customer PIM Order that executes with any 

response (order or quote) other than the PIM contraside order. The Penny Symbol Break-up Rebate is 

currently $0.25 per contract for a Priority Customer 

originating PIM Order. The Non-Penny Symbol 

Break-up Rebate is currently $0.60 per contract for 

a Priority Customer originating PIM Order. 

15Thus, unrelated interest would be assessed the 

current regular and complex Penny Symbol fee for 

Responses to PIM Orders of $0.50 per contract for 

all market participants. Further, they would be 

assessed the current regular and complex NonPenny Symbol fee for Responses to PIM Orders of 

$1.10 per contract for all market participants. 

16Thus the regular FAC, SOL, and PIM Order 

would be assessed the current regular Penny 

Symbol Taker Fees as follows: $0.50 per contract for 

a Market Maker, Non-Nasdaq MRX Market Maker 

(FarMM), Firm Proprietary/Broker-Dealer, and 

Professional Customer (regardless of tier achieved), 

$0.15 per contract for a Priority Customer (Tiers 1– 

3), and $0.10 per contract for a Priority Customer 

(Tier 4). Further, they would be assessed the 

following regular Non-Penny Taker Fees: $1.10 per 

contract for a Market Maker, Non-Nasdaq MRX 

Market Maker (FarMM), Firm Proprietary/BrokerDealer, and Professional Customer (regardless of tier 

achieved), $0.35 per contract for a Priority 

Customer (Tier 1), $0.25 per contract for a Priority 

Customer (Tier 2), $0.15 per contract for a Priority 

Customer (Tier 3), and $0.10 per contract for a 

Priority Customer (Tier 4). 

17Thus the complex FAC, SOL, and PIM Order 

would be assessed the current complex Penny 

Symbol fee of $0.35 per contract and complex NonPenny Symbol fee of $0.85 per contract for all 

market participants except Priority Customers, 

which do not get assessed a complex fee. 

18Thus, unrelated interest would be assessed the 

current regular Penny Symbol Maker Fees/Rebates 

as follows: $0.10 per contract fee for a Market 

Maker (Tier 1), $0.00 per contract fee for a Market 

Maker (Tier 2), $0.05 per contract rebate for a 

Market Maker (Tier 3), $0.10 per contract rebate for 

a Market Maker (Tier 4), $0.47 per contract fee for 

a Non-Nasdaq MRX Market Maker (FarMM), Firm 

Proprietary/Broker-Dealer, and Professional 

Customer (regardless of tier achieved), and $0.00 

per contract fee for a Priority Customer (regardless 

of tier achieved). Further, they would be assessed 

the following regular Non-Penny Maker Fees: $0.35 

per contract for a Market Maker (Tier 1), $0.20 per 

contract for a Market Maker (Tier 2), $0.15 per 

contract for a Market Maker (Tier 3), $0.10 per 

contract for a Market Maker (Tier 4), $0.90 per 

Unrelated Interest 

As a general rule, today, if an order 

executed in FAC (‘‘FAC Order’’), SOL 

(‘‘SOL Order’’), or PIM (‘‘PIM Order’’) 

executes against unrelated market or 

marketable interest received during an 

auction, the Exchange would assess the 

applicable Crossing Order 6 pricing in 

Section 3, Table 2 and Section 3.A of its 

Pricing Schedule. If the FAC, SOL, or 

PIM Order executes against unrelated 

market or marketable interest received 

prior to an auction, the Exchange would 

assess applicable order book pricing in 

its Pricing Schedule. As discussed 

below, the Exchange applies these 

concepts to unrelated market or 

marketable interest in line with Member 

expectations and to treat similarly 

situated Members in a uniform manner. 

The Exchange notes that it currently 

denotes in the Pricing Schedule that it 

would apply separate Crossing Order 

pricing for any contra-side interest 

submitted after the commencement of 

an auction in FAC, SOL, or PIM (which 

includes unrelated market and 

marketable interest received during the 

auction) by grouping such interest as 

Responses to Crossing Orders.7 The 

Exchange further notes that today, it 

specifies throughout Options 7 how it 

will price Responses to Crossing 

Orders.8 While the Exchange has 

delineated the treatment of unrelated 

market and marketable interest received 

by the Exchange during a FAC, SOL, 

and PIM auction in its Pricing Schedule, 

the Exchange believes that further 

clarity would be beneficial to Members 

as to how the Exchange currently 

assesses pricing for such interest 

received prior to the commencement of 

the auction. As such, the Exchange 

proposes to memorialize these concepts 

in its Pricing Schedule by adding new 

paragraph (d) to Options 7, Section 1, 

titled ‘‘Unrelated Market or Marketable 

Interest Pricing.’’ Proposed paragraph 

(d) would state that the following 

concepts would apply to FAC, SOL, and 

PIM Orders. 

Specifically, under proposed new 

paragraph (d), when the FAC Order or 

SOL Order executes against unrelated 

market or marketable interest received 

during an auction, the FAC Order or 

SOL Order will be assessed the 

applicable Fee for Crossing Orders in 

Options 7, Section 3, Table 2 (for regular 

FAC Orders and SOL Orders) 9 and 

applicable Complex Order fees in 

Options 7, Section 4 (for complex FAC 

Orders and SOL Orders).10 The 

unrelated market or marketable interest 

received during an auction will be 

assessed the applicable fees for 

Responses to Crossing Order in Options 

7, Section 3, Table 2 (for regular 

interest) 11 and applicable Complex 

Order fees in Options 7, Section 4 (for 

complex interest).12

When the order executed in PIM 

(‘‘PIM Order’’) executes against 

unrelated market or marketable interest 

received during an auction, the PIM 

Order will be assessed the applicable 

PIM Originating Order fees 13 or Breakup Rebates 14 in Options 7, Section 3.A 

(for regular and complex PIM Orders). 

The unrelated market or marketable 

interest received during an auction will 

be assessed the applicable fees for 

Responses to PIM Orders in Options 7, 

Section 3.A (for regular and complex 

interest).15

In contrast, today, when the FAC 

Order, SOL Order, or PIM Order 

executes against unrelated market or 

marketable interest received prior to the 

commencement of an auction, the FAC 

Order, SOL Order, or PIM Order would 

be subject to the applicable taker pricing 

in Options 7, Section 3, Table 1 (for 

regular FAC Orders, SOL Orders, and 

PIM Orders) 16 and the applicable 

Complex Order fees in Options 7, 

Section 4 (for complex FAC Orders, SOL 

Orders, and PIM Orders).17 The 

unrelated market or marketable interest 

received prior to the commencement of 

an auction will be assessed the 

applicable maker pricing in Options 7, 

Section 3, Table 1 (for regular 

interest),18 and the applicable Complex 


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contract for a Non-Nasdaq MRX Market Maker 

(FarMM), Firm Proprietary/Broker-Dealer, and 

Professional Customer (regardless of tier achieved), 

and $0.00 per contract for a Priority Customer 

(regardless of tier achieved). 

19Thus, unrelated interest would be assessed the 

current complex Penny Symbol fee of $0.35 per 

contract and complex Non-Penny Symbol fee of 

$0.85 per contract for all market participants except 

Priority Customers, which do not get assessed a 

complex fee. 

20Members become aware of ongoing FAC, SOL, 

and PIM auctions as the Exchange disseminates an 

auction notification in the form of a ‘‘broadcast 

message’’ when the Exchange receives a FAC, SOL, 

and PIM Order for auction processing. The 

broadcast message is sent by the Exchange to all 

Members and includes the series, price, side, and 

size of the Agency Order. See Options 3, Sections 

11(b)(2), 11(d)(2), and 13(c). 21See supra note 20. 

22See proposed note 2 of Options 7, Section 3, 

Table 2. 

23See supra notes 6 and 7. 

24 15 U.S.C. 78f(b). 

25 15 U.S.C. 78f(b)(4) and (5). 

Order fees in Options 7, Section 4 (for 

complex interest).19

Unrelated market or marketable 

interest resting on the Exchange’s order 

book, whether received prior to the 

commencement of a FAC, SOL, or PIM 

auction or during such auction, would 

be allocated in accordance with Options 

3, Section 11(b)(4) and (c)(7) (for regular 

and complex FAC), Section 11(d)(3) and 

(e)(4) (for regular and complex SOL), 

and Section 13(d) and (e)(5) (for regular 

and complex PIM). 

The Exchange applies order book 

pricing in accordance with Options 7, 

Sections 3 and 4 to interest received 

prior to a FAC, SOL, and PIM auction 

that subsequently trades with a FAC, 

SOL, or PIM Order (which is considered 

unrelated market or marketable interest 

for purposes of the auction) because the 

Exchange seeks to treat the Member who 

submitted such interest in a similar 

manner as any other Member who 

submits interest to the order book. The 

Member that submitted such interest 

would not have been aware at the time 

that a FAC, SOL, or PIM auction was in 

progress, and therefore would not have 

expected to be assessed separate 

Crossing Order pricing.20 In such 

instances, for regular interest, the 

unrelated market or marketable interest 

that posted to the order book prior to the 

commencement of the auction would be 

treated as posting liquidity to the order 

book (makers of liquidity) and assessed 

maker pricing in accordance with 

Options 7, Section 3, Table 1. The FAC, 

SOL, and PIM Order that trades against 

the unrelated interest would be 

considered as removing liquidity from 

the order book (takers of liquidity) and 

assessed taker pricing in accordance 

with Options 7, Section 3, Table 1. This 

is consistent with taker pricing assessed 

to any Member that removes liquidity 

from the order book. For complex 

interest, the Exchange currently assesses 

uniform complex order fees for similarly 

situated market participants as set forth 

in Options 7, Section 4, regardless of 

maker/taker. As such, both the 

unrelated market or marketable interest 

that posted to the complex order book 

prior to the commencement of the 

complex FAC/SOL/PIM auction and the 

complex FAC/SOL/PIM Order would be 

assessed the applicable complex order 

fee, consistent with any complex order 

submitted to the complex order book. 

In contrast, the Exchange applies 

Crossing Order pricing in Options 7, 

Sections 3 and 4 to the unrelated market 

or marketable interest when the interest 

arrived during a FAC, SOL, and PIM 

auction. Members submitting interest to 

the order book during one of these 

auctions are aware that they may be 

allocated in the auction.21 The Exchange 

assesses the applicable response fee in 

Options 7, Section 3 and Section 4 to 

Members submitting such interest in the 

same manner that responders to the 

FAC, SOL, and PIM auction are assessed 

fees for their auction responses. In other 

words, the unrelated market or 

marketable interest that received an 

allocation within the FAC, SOL, or PIM 

auction would be uniformly subject to 

the same fees as those Members that 

submitted auction responses and were 

allocated. 

The Exchange’s pricing models for the 

regular/complex order book and FAC/ 

SOL/PIM auctions each seek to attract 

liquidity to the Exchange and reward 

Members differently for the different 

types of order flow. To this end, the 

Exchange’s pricing considers the 

manner in which orders interact with 

the FAC/SOL/PIM auction based on the 

timing of when the order entered which 

order book. The Exchange’s pricing is 

consistent with its current practice of 

assigning the applicable pricing for 

auctions versus order book pricing 

depending on how and when the order 

was submitted to the Exchange. 

Technical Amendments 

The Exchange proposes a few 

technical, non-substantive amendments 

throughout Options 7. First, the 

Exchange proposes to title paragraph (b) 

in Options 7, Section 1 as ‘‘Fee 

Disputes’’ and paragraph (c) as 

‘‘Definitions’’ to more clearly identify 

the applicable rules within the Pricing 

Schedule. The Exchange also proposes 

to fix a typo in note 5 of Options 7, 

Section 3, Table 1. 

The Exchange further proposes to 

amend Table 2 of Options 7, Section 3 

by specifying that regular Responses to 

PIM Orders are subject to separate 

pricing in Part A of Section 3.22 As 

discussed above, PIM pricing is set forth 

separately in Options 7, Section 3.A. 

However, Crossing Orders and 

Responses to Crossing Orders are 

defined to cover PIM Orders and 

Responses to PIM Orders.23 The 

Exchange therefore believes that the 

proposed change will avoid potential 

confusion by market participants and 

investors in how Responses to PIM 

Orders are assessed. The Exchange notes 

that it already specifies in note 1 of 

Options 7, Section 3, Table 2 that 

regular PIM Orders are subject to 

separate pricing in Part A of Section 3. 

Lastly, the Exchange proposes to fix a 

punctuation error in note 1 of Options 

7, Section 3, Table 2. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,24 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,25 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. Further the 

proposal 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. 

Unrelated Interest 

The Exchange believes that its 

proposal to specify how the Exchange 

currently prices unrelated market or 

marketable interest received is 

consistent with the Act because 

memorializing these concepts in new 

paragraph (d) of Options 7, Section 1 

will promote greater clarity and 

transparency in the rules and make the 

Pricing Schedule easier to navigate for 

market participants. As discussed 

above, the Exchange already denotes 

how unrelated market or marketable 

interest received during a FAC, SOL, 

and PIM auction is priced by grouping 

such interest as Responses to Crossing 

Orders and Responses to PIM Orders 

today. How the Exchange prices 

unrelated market or marketable interest 

received prior to a FAC, SOL, and PIM 

auction, however, is not currently 


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26As discussed above, the Exchange currently 

assesses uniform complex fees for similarly situated 

market participants, regardless of maker/taker. See 

Options 7, Section 4. 

27 Id. 

28See supra note 20. 

29See supra note 12 for discussion of complex 

FAC/SOL/PIM response fees. 

30See supra note 20. 

31As discussed above, the Exchange currently 

assesses uniform complex fees for similarly situated 

market participants, regardless of maker/taker. See 

Options 7, Section 4. 

detailed in the Exchange’s Pricing 

Schedule. As such, the Exchange 

believes that by consolidating and 

describing these concepts in one place 

in the Pricing Schedule, Members can 

more easily locate the related rules and 

avoid any potential investor confusion. 

As discussed above, the Exchange 

will memorialize that it will assess book 

pricing for unrelated market or 

marketable interest received prior to the 

commencement of a FAC, SOL, or PIM 

auction by stating that such interest 

would be assessed the applicable maker 

pricing (for regular interest) and 

applicable Complex Order fees (for 

complex interest).26 The FAC, SOL and 

PIM Order that such interest executes 

against would be assessed applicable 

taker pricing (for regular FAC, SOL, and 

PIM Orders) and applicable Complex 

Order fees (for complex FAC, SOL, and 

PIM Orders).27 The Exchange applies 

order book pricing in this scenario 

because at the time the unrelated market 

or marketable interest was submitted 

and posted to the order book, Members 

would not have been aware of an 

ongoing FAC/SOL/PIM auction and 

therefore would not expect to be subject 

to Responses to Crossing Order fees in 

Section 3, Table 2 and Responses to PIM 

Order fees in Section 3.A.28 In contrast, 

the Exchange applies Responses to 

Crossing Order fees in Section 3, Table 

2 and Responses to PIM Order fees in 

Section 3.A 29 to the unrelated market or 

marketable interest when it arrives 

during the FAC/SOL/PIM auction 

because Members submitting interest to 

the order book at that time would be 

aware that they may be allocated in the 

FAC/SOL/PIM auction.30 Additionally, 

the Exchange’s pricing models for the 

regular/complex order book and FAC/ 

SOL/PIM auctions each seek to attract 

liquidity to the Exchange and reward 

Members differently for different types 

of order flow. To this end, the 

Exchange’s pricing considers the 

manner in which interest interacts with 

the FAC/SOL/PIM auction based on the 

timing of when such interest entered 

which order book. The Exchange’s 

pricing is consistent with its current 

practice of assigning the applicable 

pricing for auctions versus order book 

pricing depending on how and when 

the order was submitted to the 

Exchange. 

Further, the Exchange’s proposal to 

memorialize current practice that 

unrelated market or marketable interest 

received prior to the commencement of 

a FAC/SOL/PIM auction would be 

assessed the applicable maker pricing 

(for regular interest) and applicable 

Complex Order fees (for complex 

interest) 31 is reasonable, equitable, and 

not unfairly discriminatory because all 

Members who submitted such interest 

that posted to the order book prior to the 

commencement of the auction (and 

executes against the FAC/SOL/PIM 

Order) would be uniformly assessed the 

same pricing as any other Member who 

posted liquidity on the order book. 

Further, all Members who submitted a 

FAC/SOL/PIM Order that executed 

against such interest would be 

uniformly assessed the same pricing as 

any other Member who removed 

liquidity from the order book. 

Similarly, the Exchange believes that 

its proposal to specify current practice 

that unrelated market or marketable 

interest received during a FAC/SOL/ 

PIM auction would be assessed the 

applicable Crossing Order pricing as 

described above is reasonable, equitable, 

and not unfairly discriminatory because 

all Members who submitted such 

interest would be uniformly assessed 

the same pricing as any other Member 

who submitted responses into the FAC/ 

SOL/PIM auction. 

Technical Amendments 

The Exchange believes that adding 

titles to paragraphs (b) and (c) of 

Options 7, Section 1 is consistent with 

the Act because they will promote 

clarity so that market participants can 

more easily locate the relevant rules in 

the Pricing Schedule. The Exchange 

likewise believes that fixing the typo in 

note 5 of Options 7, Section 3, Table 1 

and punctuation error in note 1 of 

Options 7, Section 3, Table 2 will 

promote clarity in the rules and avoid 

any potential investor confusion. 

Similarly, the Exchange believes that 

specifying in proposed note 2 of 

Options 7, Section 3, Table 2 that 

regular Responses to PIM Orders are 

subject to separate pricing in Part A of 

Section 3 will avoid any potential 

investor 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. 

The Exchange does not believe that its 

proposal would impose an undue 

burden on intra-market competition. 

The pricing of unrelated interest in the 

manner described above uniformly 

treats similarly situated market 

participants. Specifically, all Members 

who submitted unrelated market or 

marketable interest that posted to the 

order book prior to the commencement 

of the auction (and executes against the 

FAC/SOL/PIM Order) would be 

uniformly assessed the same pricing as 

any other Member who posted liquidity 

on the order book. All Members who 

submitted a FAC/SOL/PIM Order that 

executed against such interest would be 

uniformly assessed the same pricing as 

any other Member who removed 

liquidity from the order book. 

Additionally, all Members who 

submitted unrelated market or 

marketable interest to the order book 

during the FAC/SOL/PIM auction 

(which ends up participating and 

executing against the auction order) 

would be uniformly assessed the same 

pricing as any other Member who 

submitted responses into the FAC/SOL/ 

PIM auction. 

In terms of inter-market competition, 

the Exchange continues to believe that 

the way that it prices unrelated market 

or marketable interest remains 

competitive with other options markets 

given that the Exchange’s current 

pricing models for the regular and 

complex order books and for FAC/SOL/ 

PIM auctions are all designed to attract 

order flow to the Exchange. The 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges. Because competitors are free 

to modify their own fees in response, 

and because market participants may 

readily adjust their order routing 

practices, the Exchange believes that the 

degree to which fee changes in this 

market may impose any burden on 

competition is extremely limited. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 188 / Friday, September 29, 2023 / Notices 67385 

32 15 U.S.C. 78s(b)(3)(A)(ii). 33 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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.32 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: (i) 

necessary or appropriate in the public 

interest; (ii) for the protection of 

investors; or (iii) 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

MRX–2023–17 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–MRX–2023–17. 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 (https://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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–MRX–2023–17 and should be 

submitted on or before October 20, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.33

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21343 Filed 9–28–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–423, OMB Control No. 

3235–0472] 

Submission for OMB Review; 

Comment Request; Extension: Rule 

15c1–6 

Upon Written Request, Copies Available 

From: U.S. Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the existing collection of 

information provided for in Rule 15c1– 

6 (17 CFR 240.15c1–6) under the 

Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.). 

Rule 15c1–6 states that any brokerdealer trying to sell to or buy from a 

customer a security in a primary or 

secondary distribution in which the 

broker-dealer is participating or is 

otherwise financially interested must 

give the customer written notification of 

the broker-dealer’s participation or 

interest at or before completion of the 

transaction. The Commission estimates 

that approximately 350 respondents will 

collect information annually under Rule 

15c1–6 and that each respondent will 

spend approximately 10 hours annually 

complying with the collection of 

information requirement for a total 

burden of approximately 3,500 hours 

per year in the aggregate. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent by 

October 30, 2023 to (i) www.reginfo.gov/ 

public/do/PRAMain and (ii) David 

Bottom, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o John Pezzullo, 100 F 

Street NE, Washington, DC 20549, or by 

sending an email to: PRA_Mailbox@

sec.gov. 

Dated: September 26, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–21428 Filed 9–28–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98516; File No. SR–MIAX– 

2023–34] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Provide Eligible Members 

Another Opportunity To Elect To 

Participate in the Maintaining 

Qualifications Program 

September 25, 2023. 

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 18, 2023, 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. 


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