Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 28285 

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

2 17 CFR 240.19b–4. 

3 ‘‘Priority Customer’’ means a person or entity 

that (i) is not a broker or dealer in securities, and 

(ii) does not place more than 390 orders in listed 

options per day on average during a calendar month 

for its own beneficial account(s). See Exchange Rule 

100, including Interpretations and Policies .01. 

4 ‘‘Market Maker’’ means a Member registered 

with the Exchange for the purpose of making 

markets in options contracts traded on the 

Exchange. See the Definitions Section of the Fee 

Schedule and Exchange Rule 100. 

5 ‘‘Member’’ means an individual or organization 

that is registered with the Exchange pursuant to 

Chapter II of the 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. 

6 ‘‘Excluded Contracts’’ means any contracts 

routed to an away market for execution. See the 

Definitions Section of the Fee Schedule. 

7 ‘‘TCV’’ means total consolidated volume 

calculated as the total national volume in those 

classes listed on MIAX PEARL for the month for 

which the fees apply, excluding consolidated 

volume executed during the period time in which 

the Exchange experiences an ‘‘Exchange System 

Disruption’’ (solely in the option classes of the 

affected Matching Engine (as defined below)). The 

term Exchange System Disruption, which is defined 

in the Definitions section of the Fee Schedule, 

means an outage of a Matching Engine or collective 

Matching Engines for a period of two consecutive 

hours or more, during trading hours. The term 

Matching Engine, which is also defined in the 

Definitions section of the Fee Schedule, is a part of 

the MIAX PEARL electronic system that processes 

options orders and trades on a symbol-by-symbol 

basis. Some Matching Engines will process option 

classes with multiple root symbols, and other 

Matching Engines may be dedicated to one single 

option root symbol (for example, options on SPY 

may be processed by one single Matching Engine 

that is dedicated only to SPY). A particular root 

symbol may only be assigned to a single designated 

Matching Engine. A particular root symbol may not 

be assigned to multiple Matching Engines. The 

Exchange believes that it is reasonable and 

appropriate to select two consecutive hours as the 

amount of time necessary to constitute an Exchange 

System Disruption, as two hours equates to 

approximately 1.4% of available trading time per 

month. The Exchange notes that the term 

‘‘Exchange System Disruption’’ and its meaning 

have no applicability outside of the Fee Schedule, 

as it is used solely for purposes of calculating 

volume for the threshold tiers in the Fee Schedule. 

See the Definitions Section of the Fee Schedule. 

8 ‘‘Affiliate’’ means (i) an affiliate of a Member of 

at least 75% common ownership between the firms 

as reflected on each firm’s Form BD, Schedule A, 

or (ii) the Appointed Market Maker of an Appointed 

EEM (or, conversely, the Appointed EEM of an 

Appointed Market Maker). An ‘‘Appointed Market 

Maker’’ is a MIAX PEARL Market Maker (who does 

not otherwise have a corporate affiliation based 

upon common ownership with an EEM) that has 

been appointed by an EEM and an ‘‘Appointed 

EEM’’ is an EEM (who does not otherwise have a 

corporate affiliation based upon common 

ownership with a MIAX PEARL Market Maker) that 

has been appointed by a MIAX PEARL Market 

Maker, pursuant to the process described in the Fee 

Schedule. See the Definitions Section of the Fee 

Schedule. 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503, 

or by sending an email to: Shagufta_

Ahmed@omb.eop.gov; and (ii) Pamela 

Dyson, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o Candace Kenner, 100 F 

Street NE, Washington, DC 20549 or 

send an email to: PRA_Mailbox@

sec.gov. Comments must be submitted to 

OMB within 30 days of this notice. 

Dated: June 3, 2018. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–12984 Filed 6–15–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83419; File No. SR– 

PEARL–2018–13] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the MIAX 

PEARL Fee Schedule 

June 12, 2018. 

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 May 31, 2018, 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 is filing a proposal to 

amend the MIAX PEARL Fee Schedule 

(the ‘‘Fee Schedule’’). 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/pearl 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. 

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 

Add/Remove Tiered Rebates/Fees set 

forth in Section 1(a) of the Fee Schedule 

to (i) modify the volume thresholds 

applicable to transactions for (A) 

Priority Customers,3 (B) MIAX PEARL 

Market Makers,4 and (C) Non-Priority 

Customers, Firms, Broker-Dealers and 

Non-MIAX PEARL Market Makers 

(collectively herein ‘‘Professional 

Members’’); (ii) add a new Tier 6 and 

corresponding rebates and fees 

applicable to transactions for Priority 

Customers and Professional Members; 

(iii) decrease Maker (as defined below) 

rebates in certain Tiers (as defined 

below) for options transactions in Penny 

classes (as defined below) and NonPenny classes (as defined below) for 

Priority Customers and Professional 

Members; (iv) increase Taker (as defined 

below) fees in all Tiers for options 

transactions in Penny Classes for 

Priority Customers, and increase the 

Taker fees in Tier 2 applicable to 

options transactions in Penny and NonPenny classes for Professional Members; 

(v) provide alternative Maker rebates for 

options transactions in all classes for 

Professional Members, provided that the 

Member meets certain volume criteria; 

and (vi) create new tiered fee structures 

for Taker fees in the symbols SPY, QQQ, 

IWM and VXX for Priority Customers. 

The Exchange also proposes to make 

certain non-substantive, technical 

corrections to the Fee Schedule, as 

described below. 

The Exchange currently assesses 

transaction rebates and fees to all 

market participants which are based 

upon the total monthly volume 

executed by the Member 5 on MIAX 

PEARL in the relevant, respective origin 

type (not including Excluded 

Contracts) 6 expressed as a percentage of 

TCV.7 In addition, the per contract 

transaction rebates and fees are applied 

retroactively to all eligible volume for 

that origin type once the respective 

threshold tier (‘‘Tier’’) has been reached 

by the Member. The Exchange 

aggregates the volume of Members and 

their Affiliates.8 Members that place 

resting liquidity, i.e., orders resting on 


amozie on DSK3GDR082PROD with NOTICES1
28286 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 

9The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

10See Securities Exchange Act Release No. 79778 

(January 12, 2017), 82 FR 6662 (January 19, 2017) 

(SR–PEARL–2016–01). 

the book of the MIAX PEARL System,9

are paid the specified ‘‘maker’’ rebate 

(each a ‘‘Maker’’), and Members that 

execute against resting liquidity are 

assessed the specified ‘‘taker’’ fee (each 

a ‘‘Taker’’). For opening transactions 

and ABBO uncrossing transactions, per 

contract transaction rebates and fees are 

waived for all market participants. 

Finally, Members are assessed lower 

transaction fees and receive lower 

rebates for order executions in standard 

option classes in the Penny Pilot 

Program 10 (‘‘Penny classes’’) than for 

order executions in standard option 

classes which are not in the Penny Pilot 

Program (‘‘Non-Penny classes’’), where 

Members are assessed higher transaction 

fees and receive higher rebates. 

Transaction rebates and fees in Section 

(1)(a) of the Fee Schedule are currently 

assessed according to the following 

tables: 

Origin Tier Volume criteria 

(percent) 

Per contract rebates/fees 

for penny classes 

Per contract rebates/fees 

for non-penny classes 

Maker Taker * Maker Taker 

Priority Customer ........................................... 1 0.00–0.05 ...................................................... ($0.25) $0.42 ($0.85) $0.87 

2 Above 0.05–0.35 ........................................... (0.40) 0.42 (1.05) 0.86 

3 Above 0.35—0.50 ......................................... (0.50) 0.42 (1.05) 0.85 

4 Above 0.50–0.75 ........................................... (0.53) 0.42 (1.05) 0.84 

5 Above 0.75 .................................................... (0.54) 0.42 (1.05) 0.84 

* For all Penny Classes other than SPY, QQQ, IWM, and VXX. For SPY, the Priority Customer Taker Fee shall be $0.38 per contract. For QQQ, IWM, and VXX, 

the Priority Customer Taker Fee shall be $0.40 per contract. 

Origin Tier Volume criteria 

(percent) 

Per contract rebates/fees 

for penny classes 

Per contract rebates/fees 

for non-penny classes 

Maker Taker Maker ** Taker ** 

All MIAX PEARL Market Makers ................... 1 0.00–0.05 ...................................................... ($0.25) $0.50 ($0.30) $1.05 

2 Above 0.05–0.25 ........................................... (0.40) 0.50 (0.30) 1.05 

3 Above 0.25–0.50 ........................................... (0.40) 0.48 (0.60) 1.03 

4 Above 0.50–0.75 or Above 2.0 in SPY ........ (0.47) 0.43 (0.65) 1.02 

5 Above 0.75–1.00 ........................................... (0.48) 0.43 (0.70) 1.02 

6 Above 1.00 .................................................... (0.48) 0.43 (0.85) 1.02 

Origin Tier Volume criteria 

(percent) 

Per contract rebates/fees 

for penny classes 

Per contract rebates/fees 

for non-penny classes 

Maker Taker Maker ** Taker ** 

Non-Priority Customer, Firm, BD, and NonMIAX PEARL Market Makers.1 

2 

0.00–0.10 ......................................................

Above 0.10–0.50 ...........................................

($0.25) 

(0.40) 

$0.50 

0.49 

($0.30) 

(0.60) 

$1.05 

1.04 

3 Above 0.50–0.75 ........................................... (0.45) 0.48 (0.65) 1.04 

4 Above 0.75–1.00 ........................................... (0.48) 0.48 (0.70) 1.04 

5 Above 1.00 .................................................... (0.48) 0.48 (0.85) 1.04 

** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions in Non-Penny classes if the Member executes 

more than 0.30% volume in Non-Penny classes, not including Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option classes. For purposes of 

qualifying for such rates, the Exchange will aggregate the volume transacted by Members and their Affiliates in the following Origin types in Non-Penny classes: MIAX 

PEARL Market Makers, and Non-Priority Customer, Firm, BD, and Non-MIAX PEARL Market Makers. 

Volume Threshold Tiers 

The Exchange proposes to modify the 

monthly volume thresholds applicable 

to (i) Priority Customers, (ii) MIAX 

PEARL Market Makers, and (iii) 

Professional Members. 

Priority Customers 

Specifically, with regard to 

transactions for Priority Customers, the 

Exchange proposes to adjust the 

calculation threshold of Tier 1’s volume 

criteria from 0.00% up to 0.05% of the 

total monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV, to become above 0.00% up to 

0.10% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV. 

Further, the Exchange proposes to 

adjust the calculation threshold of 

Priority Customer Tier 2’s volume 

criteria from above 0.05% up to 0.35% 

of the total monthly volume executed by 

the Member on MIAX PEARL, not 

including Excluded Contracts, divided 

by the TCV, to become above 0.10% up 

to 0.35% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV. The 

Exchange does not propose any 

adjustment to Tier 3 or Tier 4 volume 

thresholds for Priority Customer 

transactions. 

The Exchange further proposes to 

adjust the calculation threshold of 

Priority Customer Tier 5’s volume 

criteria from above 0.75% of the total 

monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV, to become above 0.75% up to 

1.25% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV. 

The Exchange proposes to add a new 

Tier 6 threshold applicable to all 

Priority Customer transactions and 

corresponding rebates and fees. The 

new Tier 6 threshold volume criteria 

shall be calculated as above 1.25% of 

the total monthly volume executed by 

the Member on MIAX PEARL, not 

including Excluded Contracts, divided 

by the TCV. The new Tier 6 rebates and 

fees shall be as follows: 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 28287 

11Proposed fee change to be discussed further 

below. 12Proposed fee change to be discussed further 

below. 

Priority customer Per contract rebates/fees for penny classes Per contract rebates/fees 

for non-penny classes 

Tier Volume criteria (percent) Maker Taker * SPY taker 11 QQQ, IWM, 

VXX taker 12 Maker Taker 

6 ........................ Above 1.25 ........................................................................ ($0.54) $0.43 $0.38 $0.40 ($1.05) $0.84 

* For all Penny Classes other than SPY, QQQ, IWM, and VXX. 

The Exchange believes that the 

proposed modified monthly volume 

thresholds, as well as the new rebates 

and fees in Tier 6, will continue to 

provide appropriate incentives for 

Exchange Members to provide 

aggressive liquidity in Priority Customer 

transactions so that they can achieve 

sufficient rebates and lower fees. The 

Exchange believes that this amount of 

volume should continue to make the 

MIAX PEARL marketplace an attractive 

venue where the Exchange’s Members 

are incentivized to submit Priority 

Customer orders, deepening and 

enhancing the quality of the MIAX 

PEARL marketplace. This should in turn 

provide more trading opportunities and 

tighter spreads for other market 

participants and result in a 

corresponding increase in order flow 

from such other market participants. 

Market Makers 

The Exchange proposes to modify the 

monthly volume thresholds applicable 

to the Exchange’s Market Makers and to 

adjust the thresholds in all Tiers. 

Specifically, the Exchange proposes to 

adjust the calculation threshold of Tier 

1’s volume criteria from 0.00% up to 

0.05% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV, to 

become above 0.00% up to 0.15% of the 

total monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV. 

Further, the Exchange proposes to 

adjust the calculation threshold of Tier 

2’s volume criteria for Market Makers 

from above 0.05% up to 0.25% of the 

total monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV, to become above 0.15% up to 

0.40% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV. 

The Exchange proposes to adjust the 

calculation threshold of Tier 3’s volume 

criteria for Market Makers from above 

0.25% up to 0.50% of the total monthly 

volume executed by the Member on 

MIAX PEARL, not including Excluded 

Contracts, divided by the TCV, to 

become above 0.40% up to 0.65% of the 

total monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV. 

The Exchange additionally proposes 

to adjust the calculation threshold of 

Tier 4’s volume criteria for Market 

Makers from above 0.50% up to 0.75% 

of the total monthly volume executed by 

the Member on MIAX PEARL, not 

including Excluded Contracts, divided 

by the TCV to become above 0.65% up 

to 1.00% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV. 

The Exchange also proposes to modify 

the alternative Volume Criteria to Tier 4 

based upon the total monthly volume 

executed by a Market Maker solely in 

SPY options on MIAX PEARL, 

expressed as a percentage of total 

consolidated national volume in SPY 

options. Pursuant to this alternative 

Volume Criteria, a Market Maker could 

currently reach the Tier 4 threshold if 

the Market Maker’s total executed 

monthly volume in SPY options on 

MIAX PEARL is above 2.0% of total 

consolidated national monthly volume 

in SPY options. The Exchange now 

proposes that a Market Maker can reach 

the Tier 4 threshold if the Market 

Maker’s total executed monthly volume 

in SPY options on MIAX PEARL is 

above 2.25% of the total consolidated 

national monthly volume in SPY 

options. The Exchange believes that the 

proposed modification to the alternative 

Volume Criteria threshold in Tier 4 for 

Market Makers in SPY options 

(increasing the threshold amount from 

2.0% to 2.25%) will continue to provide 

a sufficient incentive to those Market 

Makers that concentrate their trading 

activity in limited options classes (such 

as SPY options) to reach a higher tier. 

The alternative Volume Criteria 

threshold in Tier 4 for Market Makers in 

SPY options is also discussed in the 

note beneath the transaction fee tables, 

which provides more explanation on the 

alternative threshold. Accordingly, the 

Exchange also proposes to change the 

threshold amount (increasing it from 

2.0% to 2.25%) in that note beneath the 

tables. The Exchange also proposes to 

make another non-substantive technical 

correction to that same sentence in the 

note beneath the transaction fee tables 

to correct an inaccurate cross-reference. 

Presently, the note reads ‘‘[i]n Tier 3 for 

MIAX PEARL Market Makers, the 

alternative Volume Criteria . . .’’ 

However, the Tier referenced in that 

note should be to Tier 4, not Tier 3. 

Accordingly, the Exchange proposes to 

change the reference to Tier 4. This 

particular proposed change does not 

impact any fees substantively and only 

serves to identify the correct Tier. 

Further, the Exchange proposes to 

adjust the calculation threshold of Tier 

5’s volume criteria for Market Makers 

from above 0.75% up to 1.00% of the 

total monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV, to become above 1.00% up to 

1.40% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV. 

The Exchange additionally proposes 

to adjust the calculation threshold of 

Tier 6’s volume criteria for Market 

Makers from above 1.00% of the total 

monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV, to become above 1.40% of the total 

monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV. 

Professional Members 

The Exchange proposes to modify the 

monthly volume thresholds applicable 

to all Professional Members to adjust the 

thresholds in all Tiers as well as to add 

a new Tier 6 threshold and 

corresponding Tier 6 rebates and fees. 

Specifically, the Exchange proposes to 

adjust the calculation threshold of Tier 

1’s volume criteria for Professional 

Members from 0.00% up to 0.10% of the 

total monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV, to become above 0.00% up to 

0.15% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV. 

Further, the Exchange proposes to 

adjust the calculation threshold of Tier 

2’s volume criteria for Professional 

Members from above 0.10% up to 


amozie on DSK3GDR082PROD with NOTICES1
28288 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 

13See Cboe BZX Options Exchange Fee Schedule 

under ‘‘Transaction Fees’’; see also Nasdaq Options 

Market LLC (‘‘NOM’’) Chapter XV, Section 2, 

‘‘Nasdaq Options Market Fees and Rebates.’’ 

0.50% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV, to 

become above 0.15% up to 0.40% of the 

total monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV. 

Further, the Exchange proposes to 

adjust the calculation threshold of Tier 

3’s volume criteria for Professional 

Members from above 0.50% up to 

0.75% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV, to 

become above 0.40% up to 0.65% of the 

total monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV. 

The Exchange additionally proposes 

to adjust the calculation threshold of 

Tier 4’s volume criteria for Professional 

Members from above 0.75% up to 

1.00% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV, to 

become above 0.65% up to 1.00% of the 

total monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV. 

The Exchange additionally proposes 

to adjust the calculation threshold of 

Tier 5’s volume criteria for Professional 

Members from above 1.00% of the total 

monthly volume executed by the 

Member on MIAX PEARL, not including 

Excluded Contracts, divided by the 

TCV, to become above 1.00% up to 

1.40% of the total monthly volume 

executed by the Member on MIAX 

PEARL, not including Excluded 

Contracts, divided by the TCV. 

The Exchange proposes to add a new 

Tier 6 threshold applicable to all MIAX 

PEARL Professional Members and 

corresponding rebates and fees. The 

new Tier 6 threshold volume criteria 

shall be calculated as above 1.40% of 

the total monthly volume executed by 

the Member on MIAX PEARL, not 

including Excluded Contracts, divided 

by the TCV. The new Tier 6 rebates and 

fees shall be as follows: 

Non-priority customer, firm, BD, and non-MIAX PEARL market makers Per contract rebates/fees for 

penny classes 

Per contract rebates/fees for 

non-penny classes 

Tier Volume criteria 

(percent) Maker Taker Maker ** Taker ** 

6 ..................... Above 1.40 .......................................................................... ($0.48) $0.48 ($0.85) $1.04 

** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions in Non-Penny classes if the 

Member executes more than 0.30% volume in Non-Penny classes, not including Excluded Contracts, as compared to the TCV in all MIAX 

PEARL listed option classes. For purposes of qualifying for such rates, the Exchange will aggregate the volume transacted by Members and their 

Affiliates in the following Origin types in Non-Penny classes: MIAX PEARL Market Makers, and Non-Priority Customer, Firm, BD, and Non-MIAX 

PEARL Market Makers. 

The Exchange believes that the 

modified new monthly thresholds and 

new rebates and fees in Tier 6 should 

continue to provide sufficient incentives 

for Professional Members to aggressively 

provide liquidity so that they can 

achieve higher rebates and fees. The 

Exchange believes that this volume 

should continue to make the MIAX 

PEARL marketplace an attractive venue 

where the Professional Members are 

incentivized to submit orders, 

deepening and enhancing the quality of 

the MIAX PEARL marketplace. This 

should in turn provide more trading 

opportunities and tighter spreads for 

other market participants and result in 

a corresponding increase in order flow 

from such other market participants. 

Maker Rebates 

The Exchange proposes to decrease 

the Maker rebate amounts in certain 

Tiers as described below for Penny and 

Non-Penny classes for Priority 

Customers and Professional Members. 

Priority Customers 

Specifically, the Exchange proposes to 

decrease the Maker rebates in Tiers 3, 4 

and 5 for Penny classes and in Tiers 2 

through 5 in Non-Penny classes for 

Priority Customer transactions. For 

options transactions in Penny classes, 

the Exchange proposes to decrease the 

Maker rebate in Tier 3 from ($0.50) to 

($0.45), in Tier 4 from ($0.53) to ($0.52) 

and in Tier 5 from ($0.54) to ($0.53). For 

Priority Customer options transactions 

in Non-Penny classes, the Exchange 

proposes to decrease the Maker rebates 

in Tier 2 from ($1.05) to ($0.95), in Tier 

3 from ($1.05) to ($1.00), in Tier 4 from 

($1.05) to ($1.03) and in Tier 5 from 

($1.05) to ($1.04). 

Professional Members 

The Exchange proposes to decrease 

the Maker rebates applicable to 

Professional Members in Tiers 3 and 4 

in Penny classes and in Tiers 2 through 

5 in Non-Penny classes. For options 

transactions in Penny classes, the 

Exchange proposes to decrease the 

Maker rebates in Tier 3 from ($0.45) to 

($0.40) and in Tier 4 from ($0.48) to 

($0.47). For Professional Member 

options transactions in Non-Penny 

classes, the Exchange proposes to 

decrease the Maker rebates in Tier 2 

from ($0.60) to ($0.30), in Tier 3 from 

($0.65) to ($0.60), in Tier 4 from ($0.70) 

to ($0.65) and in Tier 5 from ($0.85) to 

($0.70). 

The purpose of decreasing the amount 

of the Maker rebates is to bring the 

Exchange’s rebate amounts more into 

line with the rebate amounts offered at 

other Exchanges.13 The Exchange 

believes that the decreased amounts will 

continue to provide a sufficient 

incentive to Members to execute Priority 

Customer orders and to Professional 

Members to execute volume at the 

Exchange. The Exchange believes that 

this Maker volume by Members in both 

Penny and Non-Penny classes will 

continue to attract liquidity to the 

Exchange, which in turn will benefit all 

market participants. 

The Exchange also proposes to 

provide alternative Maker rebates for 

options transactions in all classes for 

Professional Members, provided that the 

Member meets certain volume criteria. 

Specifically, Members may qualify for 

Maker rebates equal to the greater of: (A) 

($0.40) for Penny Classes and ($0.65) for 

Non-Penny Classes, or (B) the amount 

set forth in the applicable Tier reached 

by the Member in the relevant Origin, if 

the Member and their Affiliates execute 

at least 1.50% volume in the relevant 

month, in Priority Customer Origin 

type, in all options classes, not 

including Excluded Contracts, as 

compared to the TCV in all MIAX 

PEARL listed option classes. For 

example, if a Member met the monthly 

volume criteria and reached Tier 1 for 

Professional Members’ options 

transactions but reached the Priority 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 28289 

14See Securities Exchange Act Release Nos. 

80915 (June 13, 2017), 82 FR 27912 (June 19, 2017) 

(SR–PEARL–2017–29); 80914 (June 13, 2017), 82 FR 

27910 (June 19, 2017) (SR–PEARL–2017–30). 

15See supra note 13. 

Customer monthly threshold of over 

1.50% of TCV, the Member would 

receive a rebate of ($0.40) per contract 

in Penny Classes (instead of ($0.25) per 

contract) and ($0.65) per contract in 

Non-Penny Classes (instead of ($0.30) 

per contract). The member would 

receive the Taker rates associated with 

the Tier, $0.50 for Penny and $1.05 for 

Non-Penny. Also, for purposes of 

qualifying for such rates, the Exchange 

will aggregate the Priority Customer 

volume transacted by Members and 

their Affiliates. The purpose of 

providing alternative Maker rebate rates 

for options transactions in all classes for 

Professional Members (if the Member 

meets certain volume criteria) is to 

encourage Members to execute 

additional Priority Customer and 

Professional Member volume on the 

Exchange. The Exchange believes that 

additional Priority Customer and 

Professional Member volume executed 

on the Exchange will attract further 

liquidity to the Exchange, which in turn 

will benefit all market participants. 

Taker Fees 

The Exchange proposes to: (i) Increase 

the Taker fees in all Tiers for options 

transactions in all Penny classes (other 

than SPY, QQQ, IWM, and VXX) with 

respect to Priority Customer orders; and 

(ii) increase the Taker fee for 

Professional Members in Tier 2 for 

options transactions in Penny and NonPenny classes. 

Specifically, the Exchange proposes to 

increase the Taker fees for Priority 

Customer orders in options in Penny 

Classes in Tier 1 from $0.42 to $0.48, in 

Tier 2 from $0.42 to $0.46, in Tier 3 

from $0.42 to $0.44, in Tier 4 from $0.42 

to $0.44 and in Tier 5 from $0.42 to 

$0.44. 

The Exchange also proposes to 

increase the Taker fee for Professional 

Members for options transactions in 

Penny classes in Tier 2 from $0.49 to 

$0.50 and in Non-Penny classes in Tier 

2 from $1.04 to $1.05. 

The purpose of increasing the 

specified Taker fees and decreasing 

Maker rebates is for business and 

competitive reasons. As a new 

exchange, in order to attract order flow, 

the Exchange initially set its Maker 

rebates and Taker fees so that they were 

meaningfully higher/lower than other 

options exchanges that operate 

comparable maker/taker pricing 

models.14 The Exchange now believes 

that it is appropriate to adjust these 

Maker rebates and Taker fees so that 

they are more in line with other 

exchanges, but will still remain highly 

competitive such that they should 

enable the Exchange to continue to 

attract order flow and grow market 

share.15

SPY Taker Fees 

The Exchange proposes to amend the 

Priority Customer table to establish a 

separate tiered structure of Taker fees 

for options on SPY. The Exchange 

currently charges a Taker fee of $0.38 

for all transactions on behalf of Priority 

Customers in SPY options. The 

Exchange proposes instead to assess the 

following Taker fees for Priority 

Customer orders for SPY options 

corresponding to the Tiers and volume 

thresholds which are applicable to 

Priority Customer orders: 

Tier 1 .................................... $0.44 

Tier 2 .................................... 0.43 

Tier 3 .................................... 0.42 

Tier 4 .................................... 0.41 

Tier 5 .................................... 0.40 

Tier 6 .................................... 0.38 

Further, in order to provide a clearer 

explanation of the requirements for 

achieving the specified Volume Criteria 

thresholds in SPY, the Exchange 

proposes to add a new column setting 

forth the SPY Taker fees in Section 1(a) 

of the Fee Schedule under ‘‘Per Contract 

Rebates/Fees for Penny Classes’’. 

QQQ, IWM and VXX Taker Fees 

The Exchange further proposes to 

amend the Priority Customer table to 

establish a separate tiered structure of 

Taker fees for options transactions in 

QQQ, IWM and VXX. The Exchange 

currently charges a Taker fee of $0.40 

for all transactions on behalf of Priority 

Customers in QQQ, IWM and VXX 

options. The Exchange proposes instead 

to assess the following Taker fees for 

Priority Customer orders for QQQ, IWM 

and VXX options corresponding to the 

Tiers and volume thresholds which are 

applicable to Priority Customer orders: 

Tier 1 .................................... $0.47 

Tier 2 .................................... 0.46 

Tier 3 .................................... 0.44 

Tier 4 .................................... 0.43 

Tier 5 .................................... 0.42 

Tier 6 .................................... 0.40 

Further, in order to provide a clearer 

explanation of the requirements for 

achieving the specified Volume Criteria 

thresholds in in the symbols QQQ, IWM 

and VXX, the Exchange proposes to add 

a new column setting forth the Taker 

fees for such symbols in Section 1(a) of 

the Fee Schedule under ‘‘Per Contract 

Rebates/Fees for Penny Classes’’. 

Since the Exchange is adding the new 

columns to Section 1(a) of the Fee 

Schedule for SPY and QQQ, IWM, VXX 

Taker Fees for Priority Customer orders, 

the Exchange proposes to delete the last 

sentence in the asterisked footnote 

below the Priority Customer table which 

contained the Taker fees for those 

symbols. 

With all proposed changes, Section 

1(a) of the Fee Schedule shall be the 

following: 

Origin Tier Volume criteria 

(percent) 

Per contract rebates/fees for penny classes Per contract rebates/fees 

for non-penny classes 

Maker Taker * SPY taker QQQ, IWM, 

VXX taker Maker Taker 

Priority Customer ................... 1 0.00–0.10 .............................. ($0.25) $0.48 $0.44 $0.47 ($0.85) $0.87 

2 Above 0.10–0.35 ................... (0.40) 0.46 0.43 0.46 (0.95) 0.86 

3 Above 0.35–0.50 ................... (0.45) 0.44 0.42 0.44 (1.00) 0.85 

4 Above 0.50–0.75 ................... (0.52) 0.44 0.41 0.43 (1.03) 0.84 

5 Above 0.75–1.25 ................... (0.53) 0.44 0.40 0.42 (1.04) 0.84 

6 Above 1.25 ............................ (0.54) 0.43 0.38 0.40 (1.05) 0.84 

* For all Penny Classes other than SPY, QQQ, IWM, and VXX. 

Origin Tier Volume criteria 

(percent) 

Per contract rebates/fees 

for penny classes 

Per contract rebates/fees 

for non-penny classes 

Maker Taker Maker ** Taker ** 

All MIAX PEARL Market Makers ................... 1 0.00–0.15 ...................................................... ($0.25) $0.50 ($0.30) $1.05 

2 Above 0.15–0.40 ........................................... (0.40) 0.50 (0.30) 1.05 


amozie on DSK3GDR082PROD with NOTICES1
28290 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 

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

17 15 U.S.C. 78f(b)(4). 

18 15 U.S.C. 78f(b)(1) and (b)(5). 19See supra note 13. 

Origin Tier Volume criteria 

(percent) 

Per contract rebates/fees 

for penny classes 

Per contract rebates/fees 

for non-penny classes 

Maker Taker Maker ** Taker ** 

3 Above 0.40–0.65 ........................................... (0.40) 0.48 (0.60) 1.03 

4 Above 0.65–1.00 or Above 2.25 in SPY ...... (0.47) 0.43 (0.65) 1.02 

5 Above 1.00–1.40 ........................................... (0.48) 0.43 (0.70) 1.02 

6 Above 1.40 .................................................... (0.48) 0.43 (0.85) 1.02 

Origin Tier Volume criteria 

(percent) 

Per contract rebates/fees 

for penny classes 

Per contract rebates/fees 

for non-penny classes 

Maker ∧ Taker Maker ** ∧ Taker ** 

Non-Priority Customer, Firm, BD, and Non-MIAX PEARL Market Makers 1 0.00–0.15 ........ ($0.25) $0.50 ($0.30) $1.05 

2 Above 0.15– 

0.40.

(0.40) 0.50 (0.30) 1.05 

3 Above 0.40– 

0.65.

(0.40) 0.48 (0.60) 1.04 

4 Above 0.65– 

1.00.

(0.47) 0.48 (0.65) 1.04 

5 Above 1.00– 

1.40.

(0.48) 0.48 (0.70) 1.04 

6 Above 1.40 ...... (0.48) 0.48 (0.85) 1.04 

** Members may qualify for the Maker Rebate and the Taker Fee associated with the highest Tier for transactions in Non-Penny classes if the Member executes 

more than 0.30% volume in Non-Penny classes, not including Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option classes. For purposes of 

qualifying for such rates, the Exchange will aggregate the volume transacted by Members and their Affiliates in the following Origin types in Non-Penny classes: MIAX 

PEARL Market Makers, and Non-Priority Customer, Firm, BD, and Non-MIAX PEARL Market Makers. ∧ Members may qualify for Maker Rebates equal to the greater of: (A) ($0.40) for Penny Classes and ($0.65) for Non-Penny Classes, or (B) the amount set forth in 

the applicable Tier reached by the Member in the relevant Origin, if the Member and their Affiliates execute at least 1.50% volume in the relevant month, in Priority 

Customer Origin type, in all options classes, not including Excluded Contracts, as compared to the TCV in all MIAX PEARL listed option classes. 

Except as otherwise set forth herein, 

the Volume Criteria is calculated based 

on the total monthly volume executed 

by the Member in all options classes on 

MIAX PEARL in the relevant Origin 

type, not including Excluded Contracts, 

(as the numerator) expressed as a 

percentage of (divided by) TCV (as the 

denominator). In Tier 4 for MIAX 

PEARL Market Makers, the alternative 

Volume Criteria (above 2.25% in SPY) 

is calculated based on the total monthly 

volume executed by the Market Maker 

solely in SPY options on MIAX PEARL 

in the relevant Origin type, not 

including Excluded Contracts, (as the 

numerator) expressed as a percentage of 

(divided by) SPY TCV (as the 

denominator). The per contract 

transaction rebates and fees shall be 

applied retroactively to all eligible 

volume once the threshold has been 

reached by Member. The Exchange 

aggregates the volume of Members and 

their Affiliates in the Add/Remove 

Tiered Fees. The per contract 

transaction rebates and fees shall be 

waived for transactions executed during 

the opening and for transactions that 

uncross the ABBO. 

The proposed changes are scheduled 

to become operative June 1, 2018. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 16

in general, and furthers the objectives of 

Section 6(b)(4) of the Act,17 in that it is 

an equitable allocation of reasonable 

dues, fees and other charges among 

Exchange members and issuers and 

other persons using its facilities, and 

6(b)(5) of the Act,18 in that 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 facilitating 

transactions in securities, to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. 

The Exchange believes that the 

proposed new Tier structures applicable 

to Priority Customers, Market Makers 

and Professional Members are 

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

Act in that they are fair, equitable and 

not unreasonably discriminatory and 

should continue to improve the market 

quality for the Exchange’s Members and 

consequently all market participants. 

The proposed changes to the MIAX 

PEARL Tier structures and rebates and 

fees are fair and equitable and not 

unreasonably discriminatory because 

they apply equally to all MIAX PEARL 

orders for the applicable origin type. All 

similarly situated MIAX PEARL orders 

are subject to the same rebate and fee 

schedule, and access to the Exchange is 

offered on terms that are not unfairly 

discriminatory. 

The Exchange believes that the 

proposed new Tier structures applicable 

to Priority Customers, Market Makers 

and Professional Members are 

consistent with Section 6(b)(5) of the 

Act in that they promote equitable 

access to the Exchange for all market 

participants. To the extent that MIAX 

PEARL Member volume is increased by 

the proposal, market participants will 

increasingly compete for the 

opportunity to trade on the Exchange 

including sending more orders to the 

Exchange. The resulting increased 

volume and liquidity will benefit all 

Exchange participants by providing 

more trading opportunities and tighter 

spreads. 

The specific volume thresholds of the 

Tiers for Priority Customers, Market 

Makers and Professional Members as 

well as the rebates and fees are set based 

upon business determinations and an 

analysis of current volume levels. The 

Exchange believes that the proposed 

new Maker rebates and Taker fees are 

generally within the range of rebates 

and fees at other exchanges that have a 

Maker-Taker fee structure.19 The 

volume thresholds are intended to 

continue to incentivize MIAX PEARL 

Members to increase the number of 

orders they send to the Exchange so that 

they can achieve the next threshold, and 

to encourage all market participants to 

send more orders as well. Increasing the 

number of orders sent to the Exchange 

will in turn provide tighter and more 

liquid markets, and therefore attract 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 28291 

20See supra note 14. 

21 Id. 

22 Id. 

23See Nasdaq ISE Schedule of Fees, Section I, 

Regular Order Fees and Rebates; see also Nasdaq 

Options Market LLC (‘‘NOM’’) Chapter XV, Section 

2, ‘‘Nasdaq Options Market Fees and Rebates.’’ 

more business overall. Similarly, the 

different rebate rates at the different Tier 

levels are based on an analysis of 

current revenue and volume levels and 

are intended to provide continued 

incentives to MIAX PEARL market 

participants to increase the volume of 

orders sent to, and contracts executed 

on, the Exchange. The specific volume 

thresholds of the Tiers and rates are set 

in order to encourage MIAX PEARL 

market participants to continue to reach 

for higher tiers. 

The proposed Maker rebate decrease 

in Penny and Non-Penny Classes 

applicable to Priority Customers and 

Professional Members in the specified 

Tiers is reasonable, equitable and not 

unfairly discriminatory because all 

similarly situated market participants 

are subject to the same tiered rebates 

and fees and access to the Exchange is 

offered on terms that are not unfairly 

discriminatory. For competitive and 

business reasons, the Exchange initially 

set its Maker rebates for Priority 

Customer and Professional Member 

orders higher than certain other options 

exchanges that operate comparable 

maker/taker pricing models.20 The 

Exchange now believes that it is 

appropriate to decrease those Maker 

rebates so that they are more in line 

with other exchanges, and will still 

remain highly competitive such that 

they should enable the Exchange to 

continue to attract order flow and grow 

market share. 

The proposal to provide alternative 

Maker rebates for options transactions 

in all classes for Professional Members, 

provided that the Member meets certain 

volume criteria (the Member and their 

Affiliates execute at least 1.50% volume 

in the relevant month, in Priority 

Customer Origin type, in all options 

classes, not including Excluded 

Contracts, as compared to the TCV in all 

MIAX PEARL listed option classes), is 

reasonable, equitable and not unfairly 

discriminatory because all similarly 

situated market participants are subject 

to the same tiered rebates and fees and 

access to the Exchange is offered on 

terms that are not unfairly 

discriminatory. The Exchange believes 

that providing alternative Maker rebates 

for options transactions in all classes for 

Professional Members (if the Member 

meets certain volume criteria relating to 

Priority Customer volume) will 

encourage Members to execute 

additional Priority Customer and 

Professional Member volume on the 

Exchange. The Exchange believes that 

additional Priority Customer and 

Professional Member volume executed 

on the Exchange will attract further 

liquidity to the Exchange, which in turn 

will benefit all market participants. 

The Exchange’s proposal to modify 

the Alternative Volume Criteria for Tier 

4 based on SPY volume executed on the 

Exchange is reasonable, equitable, and 

not unfairly discriminatory, since it is 

intended to incentivize order flow in 

increased volume levels to be sent to the 

Exchange for execution in an actively 

traded options class. SPY options are 

the most actively traded class. The 

Exchange therefore believes that 

incentivizing Members that concentrate 

their trading activity in SPY options 

will consequently increase order flow 

sent to the Exchange, which will benefit 

all market participants through 

increased liquidity, tighter markets and 

order interaction. 

The proposed Taker fee increases 

applicable to orders submitted by a 

Member for the account of Priority 

Customers and Professional Members 

are reasonable, equitable and not 

unfairly discriminatory because all 

option orders of the same origin type are 

subject to the same tiered Taker fees and 

access to the Exchange is offered on 

terms that are not unfairly 

discriminatory. The Exchange initially 

set its Taker fees at the various levels 

based upon business determinations 

and an analysis of current Taker fees 

and volume levels at other exchanges. 

For competitive and business reasons, 

the Exchange initially set its Taker fees 

for Priority Customer and Professional 

Member orders lower than certain other 

options exchanges that operate 

comparable maker/taker pricing 

models.21 The Exchange now believes 

that it is appropriate to increase those 

Taker fees so that they are more in line 

with other exchanges, and will still 

remain highly competitive such that 

they should enable the Exchange to 

continue to attract order flow and grow 

market share. The Exchange notes that, 

even as amended, its Taker fees for 

Priority Customers and Professional 

Members are generally lower than 

certain other options exchanges 

operating competing models.22 The 

Exchange believes for these reasons that 

increasing certain Taker fees for Priority 

Customer and Professional Member 

transactions in the specified Tiers is 

equitable, reasonable and not unfairly 

discriminatory, and thus consistent with 

the Act. 

Furthermore, the proposed increases 

to the Taker fees for Priority Customer 

transactions promotes just and equitable 

principles of trade, fosters cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

and protects investors and the public 

interest, because even with the 

increases, the Exchange’s proposed 

Taker fees for Priority Customer and 

Professional Member orders still remain 

highly competitive with certain other 

options exchanges offering comparable 

pricing models, and should enable the 

Exchange to continue to attract order 

flow and grow market share. The 

Exchange believes that the amount of 

such fees, as proposed to be increased, 

will continue to encourage Members to 

send Priority Customer and Professional 

Member orders to the Exchange. To the 

extent that order flow is increased by 

the proposal, market participants will 

increasingly compete for the 

opportunity to trade on the Exchange, 

including sending more orders which 

will have the potential to be assessed 

lower fees and higher rebates than 

certain other competing options 

exchanges. The resulting increased 

volume and liquidity will benefit all 

Exchange participants by providing 

more trading opportunities and tighter 

spreads. 

The Exchange believes that its 

proposal to offer tiered Taker fees 

assessable to transactions solely in SPY, 

QQQ, IWM, and VXX options is 

consistent with other options markets 

that also assess different transaction fees 

for select option classes (including SPY, 

QQQ, IWM, and VXX) as compared to 

other option classes. The Exchange 

believes that establishing separate tiered 

pricing for these select products for 

Priority Customers is reasonable, 

equitable, and not unfairly 

discriminatory because these select 

products are generally more liquid than 

other option classes. Additionally, 

certain other competing options 

exchanges differentiate pricing in a 

similar manner.23

The Exchange believes that the 

proposed non-substantive, technical 

corrections to the note beneath the 

transaction fee tables will promote just 

and equitable principles of trade, 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system because it 

will improve the readability of the Fee 

Schedule. The proposed changes do not 

alter the substantive application of fees 

or rebates. As such, the proposed 

change is intended to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities 


amozie on DSK3GDR082PROD with NOTICES1
28292 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 

24 15 U.S.C. 78s(b)(3)(A)(ii). 

25 17 CFR 240.19b–4(f)(2). 26 17 CFR 200.30–3(a)(12). 

and would remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. In particular, the Exchange 

believes that the proposed rule change 

will provide greater clarity to Members 

and the public regarding the Exchange’s 

Fee Schedule, and it is in the public 

interest for rules to be accurate and 

concise so as to eliminate the potential 

for confusion. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

MIAX PEARL does not believe that 

the proposed rule changes will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes that the proposed 

changes in the Tier structure for the 

market participants should continue to 

encourage the provision of liquidity that 

enhances the quality of the Exchange’s 

markets and increases the number of 

trading opportunities on MIAX PEARL 

for all participants who will be able to 

compete for such opportunities. The 

proposed rule change should enable the 

Exchange to continue to attract and 

compete for order flow with other 

exchanges. However, this competition 

does not create an undue burden on 

competition but rather offers all market 

participants the opportunity to receive 

the benefit of competitive pricing. 

The proposed Maker rebate decreases, 

alternative Maker rebates, and Taker fee 

increases as well as the tiered Taker fees 

for SPY, QQQ, IWM and VXX options, 

are intended to keep the Exchange’s fees 

highly competitive with those of other 

exchanges, and to encourage liquidity 

and should enable the Exchange to 

continue to attract and compete for 

order flow with other exchanges which 

offer comparable Maker rebates and 

Taker fees and enhanced pricing on 

transactions in select symbols. 

Further, the Exchange believes that 

the proposed modification to the 

alternative Volume Criteria threshold in 

Tier 4 based on SPY options volume 

applicable to Market Makers will 

continue to provide incentives to those 

Market Makers that concentrate their 

trading activity in SPY options to send 

additional SPY orders and creates 

additional opportunity for additional 

liquidity to the market. 

The Exchange does not believe that 

the proposed rule change to make 

technical corrections to its rules will 

impose any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. This aspect 

of the proposed rule change is not 

designed to address any competitive 

issues but rather is designed to add 

additional clarity and to remedy minor, 

non-substantive issues in the text of the 

Fee Schedule. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive. In such an environment, the 

Exchange must continually adjust its 

rebates and fees to remain competitive 

with other exchanges and to attract 

order flow. The Exchange believes that 

the proposed rule changes reflect this 

competitive environment because they 

modify the Exchange’s fees in a manner 

that encourages market participants to 

continue to provide liquidity and to 

send order flow to the Exchange. 

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,24 and Rule 

19b–4(f)(2) 25 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

PEARL–2018–13 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–2018–13. 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 (http://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 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–PEARL–2018–13 and 

should be submitted on or before July 9, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–12935 Filed 6–15–18; 8:45 am] 

BILLING CODE 8011–01–P 


amozie on DSK3GDR082PROD with NOTICES1