Federal Register / Vol. 88, No. 200 / Wednesday, October 18, 2023 / Notices 71907 

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). 

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

2 17 CFR 240.19b–4. 

3 ‘‘MEO Interface’’ or ‘‘MEO’’ means a binary 

order interface for certain order types as set forth 

in Rule 516 into the MIAX Pearl System. See the 

Definitions Section of the Fee Schedule and 

Exchange Rule 100. 

4The proposed fee change is based on a recent 

proposal by Nasdaq Phlx LLC (‘‘Phlx’’) to adopt fees 

for purge ports. See Securities Exchange Act 

Release No. 97825 (June 30, 2023), 88 FR 43405 

(July 7, 2023) (SR–Phlx–2023–28). 

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– 

EMERALD–2023–28 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–2023–28. 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–EMERALD–2023–28 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. 2023–22923 Filed 10–17–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98733; File No. SR– 

PEARL–2023–52] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the MIAX Pearl 

Options Fee Schedule for Purge Ports 

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 

September 29, 2023, MIAX PEARL, LLC 

(‘‘MIAX Pearl’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘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 the 

MIAX Pearl Options Exchange Fee 

Schedule (the ‘‘Fee Schedule’’) to 

amend fees for MIAX Express Network 

(‘‘MEO’’) 3 Purge Ports (‘‘Purge Ports’’).4

The text of the proposed rule change 

is available on the Exchange’s website at 

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

us-options/pearl-options/rule-filings at 

MIAX Pearl’s principal office, and at the 

Commission’s Public Reference Room. 

I. 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 


ddrumheller on DSK120RN23PROD with NOTICES1
71908 Federal Register / Vol. 88, No. 200 / Wednesday, October 18, 2023 / Notices 

5The term ‘‘Member’’ means an individual or 

organization that is registered with the Exchange 

pursuant to Chapter II of Exchange Rules for 

purposes of trading on the Exchange as an 

‘‘Electronic Exchange Member’’ or ‘‘Market Maker.’’ 

Members are deemed ‘‘members’’ under the 

Exchange Act. See the Definitions Section of the 

Fee Schedule and Exchange Rule 100. 

6The term ‘‘Market Maker’’ or ‘‘MM’’ means a 

Member registered with the Exchange for the 

purpose of making markets in options contracts 

traded on the Exchange and that is vested with the 

rights and responsibilities specified in Chapter VI 

of the Exchange Rules. See the Definitions Section 

of the Fee Schedule and Exchange Rule 100. 

7The term ‘‘Electronic Exchange Member’’ or 

‘‘EEM’’ means the holder of a Trading Permit who 

is a Member representing as agent Public Customer 

Orders or Non-Customer Orders on the Exchange 

and those non-Market Maker Members conducting 

proprietary trading. Electronic Exchange Members 

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

See the Definitions Section of the Fee Schedule and 

Exchange Rule 100. 

8The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

9See Cboe BXZ Exchange, Inc. (‘‘BZX’’) Options 

Fee Schedule, Options Logical Port Fees, Purge 

Ports ($750 per purge port per month); Cboe EDGX 

Exchange, Inc. (‘‘EDGX’’) Options Fee Schedule, 

Options Logical Port Fees, Purge Ports ($750 per 

purge port per month); Cboe Exchange, Inc. 

(‘‘Cboe’’) Fee Schedule ($850 per purge port per 

month). See also Nasdaq GEMX, Options 7, Pricing 

Schedule, Section 6.C.(3). Nasdaq GEMX, LLC 

(‘‘Nasdaq GEMX’’) assesses its members $1,250 per 

SQF Purge Port per month, subject to a monthly cap 

of $17,500 for SQF Purge Ports and SQF Ports, 

applicable to market makers. See also Securities 

Exchange Act Release No. 97825 (June 30, 2023), 88 

FR 43405 (July 7, 2023) (SR–Phlx–2023–28). 

10 Id. 

11Members seeking to become registered as a 

Market Maker must comply with the applicable 

requirements of Chapter VI of the Exchange’s Rules. 

12See Exchange Rule 519C(a) and (b). 

13Current Exchange port functionality supports 

cancelation rates that exceed one thousand 

messages per second and the Exchange’s research 

indicates that certain market participants rely on 

such functionality and at times utilize such 

cancelation rates. 

14See Exchange Rule 516C(c). 

15See Exchange Rule 532. 

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 is proposing to amend 

the fees for Purge Ports, which is a 

function enabling the Exchange’s two 

types of Members ,5 Market Makers 6

and Electronic Exchange Members 7

(‘‘EEMs’’), to cancel all open orders or 

a subset of open orders through a single 

cancel message. The Exchange currently 

provides Members the option to 

purchase Purge Ports to assist in their 

quoting activity. Purge Ports provide 

Members with the ability to send purge 

messages to the Exchange System.8

Purge Ports are not capable of sending 

or receiving any other type of messages 

or information. The use of Purge Ports 

is completely optional and no rule or 

regulation requires that a Market Maker 

utilize them. 

Unlike other options exchanges that 

charge fees for Purge Ports on a per port 

basis,9 the Exchange assesses a flat fee 

of $750 per month, regardless of the 

number of Purge Ports. Today, a Market 

Maker may request and be allocated two 

(2) Purge Ports per Matching Engine to 

which it connects and not all Members 

connect to all Matching Engines. The 

Exchange now proposes to amend the 

fee for Purge Ports to align more with 

other exchanges who charge on a per 

port basis by providing two (2) Purge 

Ports per Matching Engine for a monthly 

flat fee of $600 per month per Matching 

Engine. The only difference with a per 

port structure being is that Members 

receive two (2) Purge Ports per Matching 

Engine for the same proposed monthly 

fee, rather than be charged separate fee 

for each Purge Port. The Exchange 

proposes to charge the proposed fee for 

Purge Ports per Matching Engine, 

instead on a per Purge Port basis, due 

to its system architecture which 

provides two (2) Purge Ports per 

Matching Engine for redundancy 

purposes. In addition, the proposed fee 

would be lower than what other 

exchanges charge on a per port basis, 

notwithstanding that the Exchange is 

providing up to two (2) Purge Ports for 

that same low fee.10

Similar to a per port charge, Members 

would be also able to elect the number 

of Matching Engines they connect to 

and pay the applicable fee. The 

Exchange believes the proposed fee 

provides Members with flexibility to 

control their Purge Ports costs based on 

the number of Matching Engines it 

elects to connect to. 

* * * * * 

A logical port represents a port 

established by the Exchange within the 

Exchange’s system for trading and 

billing purposes. Each logical port 

grants a Member the ability to 

accomplish a specific function, such as 

order entry, order cancellation, access to 

execution reports, and other 

administrative information. 

Purge Ports are designed to assist 

Members 11 in the management of, and 

risk control over, their orders, 

particularly if the firm is dealing with 

a large number of securities. For 

example, if a Market Maker detects 

market indications that may influence 

the execution potential of their orders, 

the Market Maker may use Purge Ports 

to reduce uncertainty and to manage 

risk by purging all orders in a number 

of securities. This allows Members to 

seamlessly avoid unintended 

executions, while continuing to evaluate 

the market, their positions, and their 

risk levels. Purge Ports are used by 

Members that conduct business activity 

that exposes them to a large amount of 

risk across a number of securities. Purge 

Ports enable Members to cancel all open 

orders, or a subset of open orders 

through a single cancel message. The 

Exchange notes that Purge Ports 

increase efficiency of already existing 

functionality enabling the cancellation 

of orders. 

The Exchange operates highly 

performant systems with significant 

throughput and determinism which 

allows participants to enter, update and 

cancel orders at high rates. Members 

may currently cancel individual orders 

through the existing functionality, such 

as through the use of a mass cancel 

message by which a Market Maker may 

request that the Exchange remove all or 

a subset of its quotations and block all 

or a subset of its new inbound 

quotations.12 As a result, Members can 

currently cancel orders in rapid 

succession across their existing logical 

ports 13 or through a single cancel 

message, all open orders or a subset of 

open orders. 

Similarly, Members may also use 

cancel-on-disconnect control when they 

experience a disruption in connection to 

the Exchange to automatically cancel all 

orders, as configured or instructed by 

the Member or Market Maker.14 In 

addition, the Exchange already provides 

similar ability to mass cancel orders 

through the Exchange’s risk controls, 

which are offered at no charge that 

enables Members to establish predetermined levels of risk exposure, and 

can be used to cancel all open orders.15

Accordingly, the Exchange believes that 

the Purge Ports provide an efficient 

option as an alternative to already 

available services and enhance the 

Participant’s ability to manage their risk. 

The Exchange believes that market 

participants benefit from a dedicated 

purge mechanism for specific Members 

and to the market as a whole. Members 

will have the benefit of efficient risk 

management and purge tools. The 

market will benefit from potential 

increased quoting and liquidity as 

Members may use Purge Ports to 

manage their risk more robustly. Only 

Members that request Purge Ports would 

be subject to the proposed fees, and 

other Members can continue to operate 

in exactly the same manner as they do 

today without dedicated Purge Ports, 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 200 / Wednesday, October 18, 2023 / Notices 71909 

16 15 U.S.C. 78f(b). 

17 15 U.S.C. 78f(b)(5). 

18 15 U.S.C. 78f(b)(4). 

19See supra notes 4 and 10. See also Securities 

Exchange Act Release No. 77613 (April 13, 2016), 

81 FR 23023 (April 19, 2016). See also Securities 

Exchange Act Release Nos. 79956 (February 3, 

2017), 82 FR 10102 (February 9, 2017) (SR– 

BatsBZX–2017–05); 79957 (February 3, 2017), 82 FR 

10070 (February 9, 2017) (SR–BatsEDGX–2017–07); 

83201 (May 9, 2018), 83 FR 22546 (May 15, 2018) 

(SR–C2–2018–006). 

20See Exchange Rule 604. See also generally 

Chapter VI of the Exchange’s Rules. 

21 Id. 

22See supra notes 4 and 10. 

23See supra note 10. 

24Current Exchange port functionality supports 

cancelation rates that exceed one thousand 

messages per second and the Exchange’s research 

indicates that certain Participants rely on such 

functionality and at times utilize such cancelation 

rates. 

25See Exchange Rule 532. 

26See Exchange Rule 516C(c). 

but with the additional purging 

capabilities described above. 

Implementation Date 

The proposed fees will be effective 

October 1, 2023. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,16 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,17 in particular, in that it is 

not designed to permit unfair 

discrimination among customers, 

brokers, or dealers. The Exchange also 

believes that its proposed fee is 

consistent with Section 6(b)(4) of the 

Act 18 because it represents an equitable 

allocation of reasonable dues, fees and 

other charges among market 

participants. 

The Exchange believes that the 

proposed rule change would promote 

just and equitable principles of trade 

and remove impediments to and perfect 

the mechanism of a free and open 

market because offering Members 

optional service and flexible fee 

structures promotes choice, flexibility, 

efficiency, and competition. The 

Exchange believes Purge Ports enhance 

Members’ ability to manage orders, 

which would, in turn, improve their risk 

controls to the benefit of all market 

participants. The Exchange believes that 

Purge Ports foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities 

because designating Purge Ports for 

purge messages may encourage better 

use of such ports. This may, concurrent 

with the ports that carry orders and 

other information necessary for market 

making activities, enable more efficient, 

as well as fair and reasonable, use of 

Members’ resources. Similar 

connectivity and functionality is offered 

by options exchanges, including the 

Exchange’s own affiliated options 

exchanges, and other equities 

exchanges.19 The Exchange believes that 

proper risk management, including the 

ability to efficiently cancel multiple 

orders quickly when necessary, is 

similarly valuable to firms that trade in 

the equities market, including Members 

that have heightened quoting 

obligations that are not applicable to 

other market participants. 

Purge Ports do not relieve Members of 

their quoting obligations or firm quote 

obligations under Regulation NMS Rule 

602.20 Specifically, any interest that is 

executable against a Member’s or Market 

Maker’s orders that is received by the 

Exchange prior to the time of the 

removal of orders request will 

automatically execute. Members that 

purge their orders will not be relieved 

of the obligation to provide continuous 

two-sided orders on a daily basis, nor 

will it prohibit the Exchange from 

taking disciplinary action against a 

Market Maker for failing to meet their 

continuous quoting obligation each 

trading day.21

The Exchange is not the only 

exchange to offer this functionality and 

to charge associated fees.22 The 

Exchange believes the proposed fee for 

Purge Ports is reasonable because it is 

lower than that currently charged by 

other exchanges. For example, BZX and 

EDGX charge a fee of $750 per purge 

port per month, Cboe charges $850 per 

purge port per month, Nasdaq GEMX 

assesses its members $1,250 per SQF 

Purge Port per month, subject to a 

monthly cap of $17,500 for SQF Purge 

Ports and SQF Ports.23

The Exchange believes it is reasonable 

to charge $600 per month for Purge 

Ports as such ports represent targeted 

enhancement of technology and were 

specially developed to allow for the 

sending of a single message to cancel 

multiple orders, thereby assisting firms 

in effectively managing risk. The 

Exchange also believes that a Member 

that chooses to utilize Purge Ports may, 

in the future, reduce their need for 

additional ports by consolidating cancel 

messages to the Purge Port and thus 

freeing up some capacity of the existing 

logical ports and, therefore, allowing for 

increased message traffic without 

paying for additional logical ports. 

Purge Ports provide the ability to cancel 

multiple orders across multiple ports 

with less messaging from the firms 

using the ports and therefore may create 

efficiencies for firms and provide a more 

economical solution to their risk 

management needs. In addition, Purge 

Port requests may cancel orders 

submitted over numerous ports and 

contain added functionality to purge 

only a subset of these orders. Effective 

risk management is important both for 

individual market participants that 

choose to utilize risk features provided 

by the Exchange, as well as for the 

market in general. As a result, the 

Exchange believes that it is appropriate 

to charge fees for such functionality as 

doing so aids in the maintenance of a 

fair and orderly market. 

The Exchange also believes that its 

ability to set fees for Purge Ports is 

subject to significant substitution-based 

forces because Members are able to rely 

on currently available services both free 

and those they receive when using 

existing trading protocols. If the value of 

the efficiency introduced through the 

Purge Port functionality is not worth the 

proposed fees, Members will simply 

continue to rely on the existing 

functionality and not pay for Purge 

Ports. In that regard, Members may 

currently cancel individual orders 

through the existing functionality, such 

as through the use of a mass cancel 

message by which a Market Maker may 

request that the Exchange remove all or 

a subset of its quotations and block all 

or a subset of its new inbound 

quotations. Members already can also 

cancel orders individually and by 

utilizing Exchange protocols that allow 

them to develop proprietary systems 

that can send cancel messages at a high 

rate.24 In addition, the Exchange already 

provides similar ability to mass cancel 

orders through the Exchange’s risk 

controls, which are offered at no charge 

that enables Members to establish predetermined levels of risk exposure, and 

can be used to cancel all open orders.25

Similarly, Members may use cancelon-disconnect control when they 

experience a disruption in connection to 

the Exchange to immediately cancel all 

pending Exchange.26 Finally, this 

existing purging functionality will allow 

Participants to achieve essentially the 

same outcome in canceling orders as 

they would by utilizing the Purge Ports. 

Accordingly, the Exchange believes that 

the proposed Purge Ports fee is 

reasonable because it is related to the 

efficiency of Purge Ports related to other 

means and services already available 

which are either free or already a part 

of a fee assessed to the Participant’s for 

existing connectivity. Accordingly, 

because Purge Ports provide additional 

optional functionality, excessive fees 

would simply serve to reduce or 


ddrumheller on DSK120RN23PROD with NOTICES1
71910 Federal Register / Vol. 88, No. 200 / Wednesday, October 18, 2023 / Notices 

27 15 U.S.C. 78s(b)(3)(A)(ii). 

28 17 CFR 240.19b–4(f)(2). 

eliminate demand for this optional 

product. 

The Exchange also believes that 

offering Purge Ports at the Matching 

Engine level promotes risk management 

across the industry, and thereby 

facilitates investor protection. Some 

market participants, in particular the 

larger firms, could and do build similar 

risk functionality (as described above) 

in their trading systems that permit the 

flexible cancellation of orders entered 

on the Exchange at a high rate. Offering 

Matching Engine level protections 

ensures that such functionality is 

widely available to all firms, including 

smaller firms that may otherwise not be 

willing to incur the costs and 

development work necessary to support 

their own customized mass cancel 

functionality. 

As noted above, the Exchange is not 

the only exchange to offer dedicated 

Purge Ports, and the proposed rate is 

lower than that charged by other 

exchanges for similar functionality. The 

Exchange also believes that moving to a 

per Matching Engine fee is reasonable 

due to the Exchange’s architecture that 

provides it the ability to provide two (2) 

Purge Ports per Matching Engine for a 

fee that would still be lower than other 

exchanges that charge on a per port 

basis. Generally speaking, restricting the 

Exchange’s ability to charge fees for 

these services discourages innovation 

and competition. Specifically in this 

case, the Exchange’s inability to offer 

similar services to those offered by other 

exchanges, and charge reasonable and 

equitable fees for such services, would 

put the Exchange at a significant 

competitive disadvantage and, therefore, 

serve to restrict competition in the 

market—especially when other 

exchanges assess comparable fees higher 

than those proposed by the Exchange. 

The Exchange believes that the 

proposed Purge Port fees are equitable 

because the proposed Purge Ports are 

completely voluntary as they relate 

solely to optional risk management 

functionality. 

The Exchange also believes that the 

proposed amendments to its fee 

schedule are not unfairly discriminatory 

because they will apply uniformly to all 

Members that choose to use the optional 

Purge Ports. Purge Ports are completely 

voluntary and, as they relate solely to 

optional risk management functionality, 

no Market Maker is required or under 

any regulatory obligation to utilize 

them. All Members that voluntarily 

select this service option will be 

charged the same amount for the same 

services. All Members have the option 

to select any connectivity option, and 

there is no differentiation among 

Members with regard to the fees charged 

for the services offered by the Exchange. 

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. Purge Ports 

are completely voluntary and are 

available to all Members on an equal 

basis at the same cost. While the 

Exchange believes that Purge Ports 

provide a valuable service, Members can 

choose to purchase, or not purchase, 

these ports based on their own 

determination of the value and their 

business needs. No Members is required 

or under any regulatory obligation to 

utilize Purge Ports. Accordingly, the 

Exchange believes that Purge Ports offer 

appropriate risk management 

functionality to firms that trade on the 

Exchange without imposing an 

unnecessary or inappropriate burden on 

competition. 

Furthermore, the Exchange operates 

in a highly competitive environment, 

and its ability to price the Purge Ports 

is constrained by competition among 

exchanges that offer similar 

functionality. As discussed, there are 

currently a number of similar offers 

available to market participants for 

higher fees at other exchanges. 

Proposing fees that are excessively 

higher than established fees for similar 

functionality would simply serve to 

reduce demand for the Purge Ports, 

which as discussed, market participants 

are under no obligation to utilize. It 

could also cause firms to shift trading to 

other exchanges that offer similar 

functionality at a lower costs, adversely 

impacting the overall trading on the 

Exchange and reducing market share. In 

this competitive environment, potential 

purchasers are free to choose which, if 

any, similar product to purchase to 

satisfy their need for risk management. 

As a result, the Exchange believes this 

proposed rule change permits fair 

competition among national securities 

exchanges. 

The Exchange also does not believe 

the proposal would cause any 

unnecessary or in appropriate burden 

on intermarket competition as other 

exchanges are free to introduce their 

own purge port functionality and lower 

their prices to better compete with the 

Exchange’s offering. The Exchange does 

not believe the proposed rule change 

would cause any unnecessary or 

inappropriate burden on intramarket 

competition. Particularly, the proposal 

would apply uniformly to any market 

participant, in that it does not 

differentiate between Members. The 

proposal would allow any interested 

Members to purchase Purge Port 

functionality based on their business 

needs. 

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,27 and Rule 

19b–4(f)(2) 28 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

PEARL–2023–52 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–2023–52. 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 


ddrumheller on DSK120RN23PROD with NOTICES1
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 


ddrumheller on DSK120RN23PROD with NOTICES1