[Federal Register Volume 88, Number 221 (Friday, November 17, 2023)]
[Notices]
[Pages 80366-80369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25380]


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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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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\
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    \3\ See 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.
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    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.

[[Page 80367]]

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\
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    \4\ The term ``Equity Member'' is a Member authorized by the 
Exchange to transact business on MIAX Pearl Equities. See Exchange 
Rule 1901.
    \5\ This 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).
    \6\ The 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.
    \7\ The 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.
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    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\
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    \8\ The 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.
    \9\ See 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).
    \10\ See 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).
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    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.
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    \11\ See, e.g., What is an API?, available at https://www.ibm.com/topics/api (last visited October 9, 2023).
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    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.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
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    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.
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    \14\ See supra note 9.
    \15\ See supra note 10.
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    As noted above, accessing the MFP via an API would be an optional 
alternative to web access. Those not

[[Page 80368]]

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 vis-a-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.
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    \16\ See, e.g., Cboe US Secure Web API manual, available at 
https://cdn.cboe.com/resources/membership/US_Secure_Web_API.pdf.
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    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.
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    \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.
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    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

    <bullet> Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#0674736a632b65696b6b636872754675636528616970"><span class="__cf_email__" data-cfemail="cab8bfa6afe7a9a5a7a7afa4beb98ab9afa9e4ada5bc">[email protected]</span></a>. Please include 
file number SR-PEARL-2023-62 on the subject line.

Paper Comments

    <bullet> 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.


[[Page 80369]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-25380 Filed 11-16-23; 8:45 am]
BILLING CODE 8011-01-P


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