80366 Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Notices 

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

2 17 CFR 240.19b–4. 

3See MIAX Exchanges Member Firm Portal User 

Manual, available at https://www.miaxglobal.com/ 

sites/default/files/page-files/MIAX_Exchanges_

Member_Firm_Portal_User_Manual_07142023.pdf. 

risk disclosure document. The amended 

rule also requires broker-dealers to 

maintain a copy of the customer’s 

written acknowledgement for at least 

three years following the date on which 

the risk disclosure document was 

provided to the customer, the first two 

years in an accessible place. Rule 15g– 

2 also requires a broker-dealer, upon 

request of a customer, to furnish the 

customer with a copy of certain 

information set forth on the 

Commission’s website. 

The risk disclosure documents are for 

the benefit of the customers, to assure 

that they are aware of the risks of 

trading in ‘‘penny stocks’’ before they 

enter into a transaction. The risk 

disclosure documents are maintained by 

the broker-dealers and may be reviewed 

during the course of an examination by 

the Commission. 

The Commission estimates that 

approximately 175 broker-dealers are 

engaged in penny stock transactions and 

that each of these firms processes an 

average of three new customers for 

penny stocks per week. The 

Commission further estimates that half 

of the broker-dealers send the penny 

stock disclosure documents by mail, 

and the other half send them through 

electronic means such as email. Because 

the Commission estimates the copying 

and mailing of the penny stock 

disclosure document takes two minutes, 

this means that there is an annual 

burden of 27,456 minutes, or 447 hours, 

for this third-party disclosure burden of 

mailing documents. Additionally, 

because the Commission estimates that 

sending the penny stock disclosure 

document electronically takes one 

minute, the annual burden is 13,728 

minutes, or 229 hours, for this thirdparty disclosure burden of emailing 

documents. 

Broker-dealers also incur a 

recordkeeping burden of approximately 

two minutes per response when filing 

the completed penny stock disclosure 

documents as required pursuant to the 

Rule 15g–2(c), which means that the 

respondents incur an aggregate 

recordkeeping burden of 54,600 

minutes, or 910 hours. 

Furthermore, Rule 15g–2(d) requires a 

broker-dealer, upon request of a 

customer, to furnish the customer with 

a copy of certain information set forth 

on the Commission’s website, which 

takes a respondent no more than two 

minutes per customer. Because the 

Commission estimates that a quarter of 

customers who are required to receive 

the Rule 15g–2 disclosure document 

will request that their broker-dealer 

provide them with the additional 

microcap and penny stock information 

posted on the Commission’s website, 

the Commission therefore estimates that 

each broker-dealer respondent processes 

approximately 39 requests for paper 

copies of this information per year or an 

aggregate total of 78 minutes per 

respondent, which amounts to an 

annual burden of 13,650 minutes, or 228 

hours. There was an overall decrease in 

the total burden hours because the 

number of registered broker-dealers the 

Commission estimates will be engaged 

in penny stock transactions decreased 

from 182 to 175. 

The Commission does not maintain 

the risk disclosure document. Instead, it 

must be retained by the broker-dealer 

for at least three years following the date 

on which the risk disclosure document 

was provided to the customer, the first 

two years in an accessible place. The 

collection of information required by 

the rule is mandatory. The risk 

disclosure document is otherwise 

governed by the internal policies of the 

broker-dealer regarding confidentiality, 

etc. 

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 

December 18, 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: November 14, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25479 Filed 11–16–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98908; File No. SR– 

PEARL–2023–62] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Provide an Additional 

Means To Access the Exchange’s 

Equity Trading Platform Member Firm 

Portal 

November 13, 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 November 2, 2023, MIAX PEARL, 

LLC (‘‘MIAX Pearl’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to provide an 

additional means to access the 

Exchange’s equity trading platform 

(referred to herein as ‘‘MIAX Pearl 

Equities’’) Member Firm Portal.3

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. 

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. 


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Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Notices 80367 

4The term ‘‘Equity Member’’ is a Member 

authorized by the Exchange to transact business on 

MIAX Pearl Equities. See Exchange Rule 1901. 

5This includes whether an order should be 

attributed by its MPID or as Retail on the 

Exchange’s proprietary data feeds or when routed 

pursuant to the PAC routing option, adjusting port 

level settings, adjusting risk controls, and retrieving 

assignment history for a given symbol assignments. 

See, e.g., Exchange Rules 2614(c)(5), 

2617(a)(5)(ii)(A)(3), 2618(a), and 2622(f). 

6The term ‘‘Equities Market Maker’’ shall mean 

an Equity Member that acts as a Market Maker in 

equity securities, pursuant to Chapter XXVI. See 

Exchange Rule 1901. 

7The Exchange does not currently intend to 

charge fees for API access to the MFP and will 

submit a separate filing with the Commission 

pursuant to Section 19(b)(1) should it decide to do 

so in the future. 

8The term ‘‘Member’’ means an individual or 

organization that is registered with the Exchange 

pursuant to Chapter II of these Rules for purposes 

of trading on the Exchange as an ‘‘Electronic 

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

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

Exchange Rule 100. 

9See Securities Exchange Act Release No. 98016 

(July 28, 2023), 88 FR 51364 (August 3, 2023) (SR– 

PEARL–2023–32) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Provide 

an Additional Means of Access to the Member Firm 

Portal Through an Application Programming 

Interface). 

10See Securities Exchange Act Release Nos. 

98017 (July 28, 2023), 88 FR 51366 (August 3, 2023) 

(SR–MIAX–2023–29); and 98018 (July 28, 2023), 88 

FR 51374 (August 3, 2023) (SR–EMERALD–2023– 

18) (Notices of Filing and Immediate Effectiveness 

of a Proposed Rule Change To Provide an 

Additional Means of Access to the Member Firm 

Portal Through an Application Programming 

Interface). 

11See, e.g., What is an API?, available at https:// 

www.ibm.com/topics/api (last visited October 9, 

2023). 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

14See supra note 9. 

15See supra note 10. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange provides Equity 

Members 4 access to an internet-facing 

portal which provides self-service 

functions to Equity Members, known as 

the Member Firm Portal (‘‘MFP’’). 

Specifically, the MFP allows Equity 

Members to view current connectivity 

and services, manage various order 

entry settings,5 view all orders and 

cancel individual open orders, and view 

current and request changes for current 

session notifications, session 

configurations, and Market Participant 

Identifier (‘‘MPID’’) configurations. The 

MFP also provides Equity Members the 

ability to adjust risk settings and allows 

Equity Market Makers 6 to view and 

manage their securities assignments. 

The MFP allows Equity Members to 

more efficiently manage their back 

office operations at the Equity Member 

level. Currently, access to the MFP is 

provided on a per user basis, whereby 

Equity Members seek to have 

individuals within their organization 

permissioned to access the MFP via a 

web portal on their behalf (known as the 

‘‘MFP User Interface’’ or ‘‘MFP UI’’). 

The Exchange provides the MFP UI to 

Equity Members free of charge.7

Equity Members have requested that 

the Exchange also provide access to the 

MFP via an Application Programming 

Interface (‘‘API’’ and together ‘‘MFP 

API’’), in addition to the current MFP UI 

accessed via the web portal. The 

Exchange currently provides MFP API 

to Members 8 on it options platform,9 as 

do its affiliates, Miami International 

Holdings, LLC (‘‘MIAX’’) and MIAX 

Emerald, LLC (‘‘MIAX Emerald’’).10

In sum, an API is a way for two or 

more computer programs to talk to each 

other. It is a software to software 

interface that defines the data and the 

transactions that can be communicated 

between systems. In providing the MPF 

API, functions that would otherwise be 

done manually via the MFP UI, can be 

automated. The MFP API, in essence, 

facilitates and expedites the transaction 

processing for the supported 

functionality such that Equity Members 

can automate their interactions with the 

MFP. This allows for more efficient 

processing, the potential reduction of 

operational risk due to issues caused by 

human error, the timeliness of the 

completion of MFP-related functions, 

etc.11 Providing API access to the MFP 

would allow Equity Members to enable 

their systems and applications to 

communicate directly with the MFP, 

thereby eliminating or reducing the 

need for individuals to access the MFP 

UI via the web portal. 

The Exchange does not propose to 

alter the current MFP or MFP UI. The 

Exchange simply proposes to provide an 

additional and optional means to access 

the MFP, in the form of an API. API 

access to the MFP would allow an 

Equity Member’s applications to 

communicate directly with the MFP. 

Therefore, by its nature, the MFP API 

does not lend itself to access on a per 

user basis, as is the case today with the 

MFP UI via the web portal. API access 

would allow Equity Members to 

automate functions they perform today 

on the MFP, such as adjusting risk 

settings or managing various order entry 

settings. Equity Members who do not 

prefer to access the MFP API would be 

able to perform the same functions 

when accessing the MFP UI via the 

current web portal. However, due to 

associated technological changes 

needed to provide API access, the 

Exchange does not plan to offer all MFP 

functionality that is currently available 

via the MFP UI on day one and intends 

to rollout the functionality over a period 

of time. 

The Exchange notes that the use of 

accessing the MFP API would be 

completely voluntary and would simply 

be a second optional means to access 

the MFP. Equity Members who wish to 

continue to access the MFP UI via the 

web portal may continue to do so for no 

fee. 

Implementation Date and Rollout 

Due to the technological changes 

associated with this proposed change, 

the Exchange will issue a trading alert 

publicly announcing the 

implementation date of the proposed 

rule change and will announce in that 

trading alert which MFP functions will 

be available via the API. The Exchange 

anticipates that it will begin to offer API 

access to the MFP in first quarter of 

2024. The Exchange will issue a trading 

alert each time it makes additional MFP 

functions available via the API. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

requirements of Section 6(b) of the 

Act,12 in general, and Section 6(b)(5),13

in particular, because it is 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, and to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

The Exchange notes that providing 

the MFP API to Equity Members is 

consistent with the Act in that the use 

of MFP API is completely voluntary and 

simply provides Equity Members with 

an additional means to access the 

Exchange’s MFP. The MFP is a useful 

tool for Equity Members to manage their 

trading on the Exchange, including back 

office operations, risk controls settings, 

and Equity Market Maker assignments. 

The Exchange also notes that it 

currently provides MFP API to Members 

on it options platform,14 as do its 

affiliates, MIAX and MIAX Emerald.15

The Exchange simply seeks to do the 

same for MIAX Pearl Equities in this 

filing. 

As noted above, accessing the MFP 

via an API would be an optional 

alternative to web access. Those not 


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80368 Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Notices 

16See, e.g., Cboe US Secure Web API manual, 

available at https://cdn.cboe.com/resources/ 

membership/US_Secure_Web_API.pdf. 

17 15 U.S.C. 78s(b)(3)(A). 

18 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 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. 

electing to access the MFP via an API 

may continue to use the MFP UI via the 

web portal free of charge. The MFP, 

whether accessed via an API or web 

portal, allow Equity Members to more 

efficiently manage their back office 

operations, view all orders and cancel 

individual open orders, and view 

current and request changes for current 

session notifications, session 

configurations, MPID configurations, 

and in managing Equity Market Maker 

assignments. The Exchange notes that 

trade information in the MFP is specific 

to each Equity Member and their trades, 

allowing them to conveniently manage 

their back office operations as needed. 

Providing API access to the MFP 

would be provided purely for 

convenience, in response to Equity 

Member demand, and would be entirely 

optional. As stated above, API access to 

the MFP would enable Equity Members 

to connect their applications to the MFP 

allowing their application to 

communicate directly with the MFP. 

This enables Equity Members to 

automate functions that would normally 

be performed by individual users access 

the MFP via the current web portal, 

such as adjusting risk settings and 

managing various order entry settings. 

Equity Members who do not prefer to 

access the MFP API would be able to 

perform the same functions by accessing 

the MFP UI via the existing web portal. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. API access 

to the MFP would simply be an optional 

additional means to access the MFP. 

The Exchange does not believe that the 

proposal would impose any 

inappropriate burden on intramarket 

competition because Equity Members 

who access the MFP via an API would 

not receive any competitive advantage 

over those who access it via the current 

web portal because any functionality 

available to Equity Members who access 

the MFP via an API would be available 

to those who access MFP UI via the 

current web portal. API access would 

simply be a convenience and would 

enable Equity Members to automate 

their back office operations performed 

via the MFP as they choose. The 

Exchange does not believe an Equity 

Member’s ability to automate this 

functionality provides any competitive 

advantage when trading on the 

Exchange because the MFP is only used 

by Equity Members for back office 

operations and not order entry or 

execution. 

The Exchange believes that the 

proposed rule change would not impose 

any inappropriate burden on 

intermarket competition as other 

exchanges currently offer similar API 

access to their comparable member 

portals.16 The proposal would enhance 

the Exchange’s competitive position visa-vis other exchanges by allowing it to 

upgrade the means of access to its MFP, 

which would provide added 

convenience to Equity Members that 

wish to utilize the MFP via an API. 

Further, the proposed rule change 

would enable the Exchange to improve 

its customer service and enhance Equity 

Members’ experience when managing 

their back office and other operations 

performed via the MFP. 

As such, the Exchange does not 

believe that the proposed rule change 

will impose any burden on intermarket 

or intramarket competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

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, it has 

become effective pursuant to 19(b)(3)(A) 

of the Act 17 and Rule 19b–4(f)(6) 18

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–2023–62 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–2023–62. 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–2023–62 and should be 

submitted on or before December 8, 

2023. 


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Federal Register / Vol. 88, No. 221 / Friday, November 17, 2023 / Notices 80369 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Cboe Global Markets U.S. Options Market 

Monthly Volume Summary (October 30, 2023), 

available at https://markets.cboe.com/us/options/ 

market_statistics/. 

4The term ‘‘AIM’’ refers to Automated 

Improvement Mechanism. 

5The term ‘‘AIM Contra Order’’ refers to an order 

submitted by a Member entering a AIM Agency 

Order for execution within AIM that will 

potentially execute against the AIM Agency Order 

pursuant to Rules 21.19 and 21.22. 

6The term ‘‘AIM Agency Order’’ refers to an order 

represented as agent by a Member on behalf of 

another party and submitted to AIM for potential 

price improvement pursuant to Rules 21.19 and 

21.22. 

7As part of the proposed rule change, the 

Exchange proposes to delete duplicative 

information in the chart in Footnote 6 related to 

Customer AIM and SAM Auction fees. Further, the 

Exchange proposes to delete headers in the table 

referring to issues and consolidate all fee code and 

rate information on an order type basis. The 

Exchange also proposes to amend Footnote 6 to 

remove an inadvertent reference to XB, as such fee 

code was previously removed from the Exchange 

Fee Schedule. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25380 Filed 11–16–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98910; File No. SRCboeEDGX–2023–068] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule 

November 13, 2023. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

1, 2023, Cboe EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) filed with the 

Securities and Exchange Commission 

(the ‘‘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 

Cboe EDGX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGX’’) proposes to 

amend its Fee Schedule. The text of the 

proposed rule change is provided in 

Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (https://markets.cboe.com/us/ 

options/regulation/rule_filings/edgx/), 

at the Exchange’s Office of the 

Secretary, 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 its 

Fee Schedule, effective November 1, 

2023. The Exchange first notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. More 

specifically, the Exchange is only one of 

17 options venues to which market 

participants may direct their order flow. 

Based on publicly available information, 

no single options exchange has more 

than 17% of the market share.3 Thus, in 

such a low-concentrated and highly 

competitive market, no single options 

exchange, including the Exchange, 

possesses significant pricing power in 

the execution of option order flow. The 

Exchange believes that the ever-shifting 

market share among the exchanges from 

month to month demonstrates that 

market participants can shift order flow 

or discontinue to reduce use of certain 

categories of products, in response to fee 

changes. Accordingly, competitive 

forces constrain the Exchange’s 

transaction fees, and market participants 

can readily trade on competing venues 

if they deem pricing levels at those 

other venues to be more favorable. 

The Exchange’s Fees Schedule sets 

forth standard rebates and rates applied 

per contract. For example, the Exchange 

provides standard rebates ranging from 

$0.01 up to $0.21 per contract for 

Customer orders in both Penny and 

Non-Penny Securities. The Fee Codes 

and Associated Fees section of the Fees 

Schedule also provides for certain fee 

codes associated with certain order 

types and market participants that 

provide for various other fees or rebates. 

For example, the Exchange assesses a 

fee of $0.05 per contract for AIM 4

Contra orders, yielding fee code BB; 

assesses a fee of $1.05 per contract for 

AIM Responder orders in Non-Penny 

Securities, yielding fee code BE; and 

provides a rebate of $0.06 for AIM 

Agency Customer orders, yielding fee 

code BC. 

The Exchange proposes to amend the 

Fee Codes and Associated Fees table of 

the Fee Schedule to adopt new fee codes 

for AIM Contra and AIM Agency 

Customer orders in Non-Penny 

Securities. Specifically, the Exchange 

proposes to adopt new fee codes, BF 

and BG, to apply to AIM Contra 5 orders 

in Non-Penny Securities and AIM 

Agency 6 Customer orders in Non-Penny 

Securities, respectively. The Exchange 

proposes to assess a fee of $0.02 per 

contract for AIM Contra orders in NonPenny Securities yielding fee code BF 

and to assess no fee per contract for AIM 

Agency Customer orders in Non-Penny 

Securities yielding fee code BG. 

The Exchange also proposes to amend 

the description of current fee code BB 

to provide it applies to AIM Contra 

orders in Penny Securities, and to 

amend the current description of 

current fee code BC to provide it applies 

to AIM Agency Customer orders in 

Penny Securities. The Exchange also 

proposes to increase the standard fee for 

AIM Responder orders in Non-Penny 

Securities (i.e., yield fee code BE) from 

$1.05 per contract to $1.15 per contract. 

The proposed rule change also 

amends Footnote 6 of the Fee Schedule 

to include new fee codes BF and BG, 

and to reflect the proposed change in 

fees for orders yielding fee code BE.7

Further, AIM Agency Customer order in 

Non-Penny Securities yielding fee code 

BG will not be eligible for rebates under 

the Automated Improvement ‘‘AIM’’ 

Tiers set forth in Footnote 9 of the Fee 

Schedule. As such, the Exchange 

proposes to rename Footnote 9 as 

Automated Improvement Mechanism 

(‘‘AIM’’) Penny Tiers, and revise the 

definition of Interaction Rate set forth in 

Footnote 9 to state that the Interaction 

Rate is the percentage of the Penny 

Agency Order that trades against the 

Initiating Order. 


khammond on DSKJM1Z7X2PROD with NOTICES