Federal Register / Vol. 88, No. 200 / Wednesday, October 18, 2023 / Notices 71911 

29 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release Nos. 98108 

(August 10, 2023), 88 FR 55809 (August 16, 2023) 

(SR–CboeEDGX–2023–054) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

to Amend its Fee Schedule Related to the Options 

Regulatory Fee); 98109 (August 10, 2023), 88 FR 

55801 (August 16, 2023) (SR–CboeBZX–2023–061) 

(Notice of Filing and Immediate Effectiveness of a 

Proposed Rule Change to Amend its Fee Schedule 

Related to the Options Regulatory Fee); 98446 

(September 20, 2023), 88 FR 66100 (September 26, 

2023) (SR–BOX–2023–24) (Notice of Filing and 

Immediate Effectiveness of a Proposed Rule Change 

To Amend the Fee Schedule for Trading on the 

BOX Options Market LLC Facility To Amend the 

Language and Process Related to the Options 

Regulatory Fee). 

4The 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. 

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–2023–52 and should be 

submitted on or before November 8, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–22928 Filed 10–17–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98726; File No. SR–MIAX– 

2023–040] 

Self-Regulatory Organizations; Miami 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Its Fee Schedule 

Related to the Options Regulatory Fee 

October 12, 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 October 

5, 2023, Miami International Securities 

Exchange, LLC (‘‘MIAX’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

MIAX Options Exchange Fee Schedule 

(the ‘‘Fee Schedule’’) related to the 

Options Regulatory Fee. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://www.miaxglobal.com/markets/ 

us-options/miax-options/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 

Fee Schedule, to harmonize the 

language and processes relating to the 

Options Regulatory Fee (‘‘ORF’’) with 

the language and processes used by 

other options exchanges.3 By way of 

background, the ORF is designed to 

recover a material portion of the costs to 

the Exchange of the supervision and 

regulation of Member 4 customer 

options business, including performing 

routine surveillances, investigations, 

examinations, financial monitoring, as 

well as policy, rulemaking, interpretive 

and enforcement activities. The revenue 

generated from the ORF covers a 

material portion and when combined 

with all of the Exchange’s other 

regulatory fees and fines will cover a 

material portion of the Exchange’s 

regulatory costs. 

The Exchange monitors the amount of 

revenue collected from the ORF to 

ensure that it, in combination with its 

other regulatory fees and fines, does not 

exceed the Exchange’s total regulatory 

costs. The Exchange monitors its 

regulatory costs and revenues at a 

minimum on a semi-annual basis. If the 

Exchange determines regulatory 

revenues exceed or are insufficient to 

cover a material portion of its regulatory 

costs, the Exchange will adjust the ORF 

by submitting a fee change filing to the 

Securities and Exchange Commission 

(the ‘‘Commission’’). The Exchange 

notifies Members of adjustments to the 

ORF via a Regulatory Circular. The 

Exchange provides Members with such 

notice at least 30 calendar days prior to 

the effective date of the change. 

The Regulatory Fee section of the Fee 

Schedule sets forth the details and 

description of how and when the ORF 

is assessed. For example, the Fee 

Schedule explicitly specifies that the 

Exchange may only increase or decrease 

the ORF semi-annually, and any such 

fee change will be effective on the first 

business day of February or August. The 

Fee Schedule further states that the 

Exchange will notify participants of any 

change in the amount of the fee at least 

30 calendar days prior to the effective 

date of the change. 

The Exchange proposes to update the 

Fee Schedule language relating to the 

timing of ORF changes. Particularly, the 

Exchange proposes to eliminate the 

strict requirement that the ORF may 

only be modified on the first business 

day of February or August, and also the 

explicit requirement that it must 

provide at least 30 calendar days notice 

prior to the effective date. 

The Exchange first proposes to 

eliminate the requirement that ORF may 

only be modified on the first business 

day of February or August to afford the 

Exchange increased flexibility in 

amending the ORF. As noted above, the 

ORF is based in part on options 

transactions volume, and as such the 

amount of ORF collected is variable. If 

options transactions reported to OCC in 

a given month increase, the ORF 

collected from Members may increase as 

well. Similarly, if options transactions 

reported to OCC in a given month 

decrease, the ORF collected from 


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71912 Federal Register / Vol. 88, No. 200 / Wednesday, October 18, 2023 / Notices 

5The Exchange intends to submit an identical 

proposal for its affiliates MIAX Pearl and MIAX 

Emerald. 

6See supra note 3. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 Id. 

10 15 U.S.C. 78f(b)(4). 11See supra note 3. 

Members may decrease as well. 

Accordingly, the Exchange monitors the 

amount of ORF collected to ensure that 

it does not exceed a material portion of 

the Exchange’s total regulatory costs. If 

the Exchange determines that the 

amount of ORF collected exceeds costs, 

the proposed rule change allows the 

Exchange to adjust the ORF by 

submitting a fee change filing to the 

Commission in a month other than just 

February or August. Although the 

Exchange proposes to eliminate the 

explicit language in the fee schedule 

that provides the Exchange will adjust 

the ORF only semi-annually, and only 

on the first business day of February or 

August, it would continue to monitor its 

regulatory costs and revenues at a 

minimum on a semi-annual basis and 

submit a proposed rule change for each 

modification of the ORF as needed. 

The Exchange also proposes to 

eliminate the explicit language in the 

Fee Schedule that it will notify 

participants of any change in the 

amount of the fee at least 30 calendar 

days prior to the effective date of the 

change. Although the Exchange 

proposes to eliminate this language from 

the Fee Schedule, it notes that it will 

endeavor to notify Members of any 

planned change to the ORF by 

Regulatory Circular at least 30 calendar 

days prior to the effective date of such 

change. The Exchange believes this 

proposed change also provides the 

Exchange additional flexibility. For 

example, the Exchange often provides 

fee change notices on the first business 

day of the month. It may be the case that 

such date is less than 30 days from the 

effective date of proposed change (e.g., 

if the Exchange wished to amend the 

ORF, effective, August 1, 2023, the 

Exchange would not have met the 30- 

day notice requirement if it had 

announced on the first business day of 

July, as it has been historic practice, 

since the first business day falls on July 

3, 2023). As such, the proposed rule 

changes provide added flexibility while 

still committing to provide notice on the 

timing of any changes to the ORF and 

ensuring that Members are prepared to 

configure their systems to properly 

account for the ORF. 

The Exchange notes that the proposed 

changes will result in ORF processes 

and fee schedule language that will 

align with those of its affiliated 

exchanges, MIAX PEARL, LLC (‘‘MIAX 

Pearl’’) and MIAX Emerald, LLC 

(‘‘MIAX Emerald’’).5 Moreover, other 

options exchanges recently amended 

their fees to allow for flexibility to 

adjust ORF during months other than 

February or August.6 The Exchange 

believes the proposed change provides 

uniformity across its affiliated options 

exchanges and reduces potential 

confusion. It also provides the Exchange 

added flexibility as to when 

modifications to the ORF may occur. 

Implementation Date 

The Exchange will announce the 

effective date of the proposed changes 

by Regulatory Circular distributed to all 

Members. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the Act and 

the rules and regulations thereunder 

applicable to the Exchange and, in 

particular, the requirements of section 

6(b) of the Act.7 Specifically, the 

Exchange believes that the proposal is 

consistent with the section 6(b)(5) 8

requirements that the rules of an 

exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes that 

the proposal is consistent with the 

section 6(b)(5) 9 requirement that the 

rules of an exchange not be designed to 

permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange also believes that the 

proposal is consistent with section 

6(b)(4) of the Act,10 which requires that 

Exchange rules provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its Members and 

other persons using its facilities. 

The Exchange believes the proposed 

changes to the Fees Schedule are 

appropriate as it provides the Exchange 

with more flexibility in its assessment of 

ORF based on its periodic monitoring of 

ORF rates. The Exchange also represents 

that it will continue to monitor its 

regulatory costs and revenues at a 

minimum on a semi-annual basis, just 

as it, and its affiliated options exchanges 

(including MIAX Pearl and MIAX 

Emerald) do today. The Exchange 

believes that the proposed elimination 

of language specifying that the Exchange 

may only increase or decrease the ORF 

on the first business day February or 

August is reasonable because it is 

designed to afford the Exchange 

increased flexibility in making 

necessary adjustments to the ORF, as 

the Exchange is required to monitor the 

amount collected from the ORF to 

ensure that it, in combination with its 

other regulatory fees and fines, does not 

exceed total regulatory costs. 

The Exchange also represents that it 

will endeavor to provide notice of any 

changes at least 30 days in advance of 

the effective date of such change, 

thereby providing Members with 

adequate time to make any necessary 

adjustments to accommodate any 

proposed changes. Taking out the strict 

requirements from the Fee Schedule, 

however, will provide the Exchange 

flexibility in modifying ORF and being 

able to adjust ORF even if it doesn’t 

meet the strict 30-day deadline in the 

event extenuating circumstances 

prevent the Exchange from meeting this 

deadline or in the event such notice is 

a day or two less than 30 days due to 

when the first business days of the 

month fall. For example, as noted above, 

the Exchange often provides fee change 

notices on the first business day of the 

month. It may be the case that such date 

is less than 30 days from the effective 

date of proposed change (e.g., if the 

Exchange wished to amend the ORF, 

effective August 1, 2023, the Exchange 

would not have met the 30-day notice 

requirement if it had announced on the 

first business day of July, as it has been 

historic practice, since the first business 

day falls on July 3, 2023). 

The Exchange believes that the 

proposal is reasonable, equitable and 

not unfairly discriminatory because it 

conforms to the process and fee 

schedule language used by two of its 

affiliated options exchanges, thereby 

providing consistency across the MIAX 

family options exchanges and reducing 

potential confusion. The proposed 

changes also apply uniformly to all 

Members subject to ORF. As noted 

above, other options exchanges are also 

not confined to making ORF changes on 

the first business day of February or 

August or required to provide 30 day 

notice.11

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposal will impose any burden on 

competition not necessary or 


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Federal Register / Vol. 88, No. 200 / Wednesday, October 18, 2023 / Notices 71913 

12 Id. 

13 Id. 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

16 17 CFR 240.19b–4(f)(6). 

17 17 CFR 240.19b–4(f)(6)(iii). 

18For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 19 17 CFR 200.30–3(a)(12) and (a)(59). 

appropriate in furtherance of the 

purposes of the Act. In this regard and 

as indicated above, the Exchange notes 

that the proposal is substantially similar 

in all material respects to filings 

submitted by Cboe EDGX Exchange, Inc. 

(‘‘EDGX’’), Cboe BZX Exchange, Inc. 

(‘‘BZX’’), and BOX Options Market LLC 

(‘‘BOX’’).12 This proposal does not 

create an unnecessary or inappropriate 

inter-market burden on competition 

because it merely amends the Fee 

Schedule to modify the timing and 

notice requirements relating to the 

modification of the ORF and conforms 

to the timing and notice requirements 

used by other options exchanges within 

their fee schedules.13 Further, ORF is a 

regulatory fee that supports regulation 

in furtherance of the purposes of the 

Act. The Exchange is obligated to ensure 

that the amount of regulatory revenue 

collected from the ORF, in combination 

with its other regulatory fees and fines, 

does not exceed regulatory costs and the 

proposed rule change does not seek to 

change that. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, it has become effective 

pursuant to section 19(b)(3)(A) of the 

Act 14 and Rule 19b–4(f)(6) 15

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 16 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),17 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposed 

rule change may become operative upon 

filing. The Exchange is requesting the 

waiver because it will allow the 

Exchange to exercise more flexibility 

with respect to timing of changes to its 

assessment of ORF based on its periodic 

monitoring of ORF rates and allow the 

Exchange to mirror similar provisions 

already in place on other exchanges. 

Finally, the Exchange states that the 

proposed change would not introduce 

any novel regulatory issues. For these 

reasons, and because the proposed rule 

change does not raise any novel legal or 

regulatory issues, the Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest. Therefore, the Commission 

hereby waives the 30-day operative 

delay and designates the proposal 

operative upon filing.18

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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

MIAX–2023–40 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–MIAX–2023–40. 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–MIAX–2023–40 and should be 

submitted on or before November 8, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–22922 Filed 10–17–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98732; File No. SR–MIAX– 

2023–37] 

Self-Regulatory Organizations; Miami 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend Fee Schedule for 

Purge Ports 

October 12, 2023. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 


ddrumheller on DSK120RN23PROD with NOTICES1