[Federal Register Volume 83, Number 158 (Wednesday, August 15, 2018)]
[Notices]
[Pages 40583-40587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17493]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83812; File No. SR-MIAX-2018-21]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Fee Schedule

August 9, 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 July 31, 2018, Miami International Securities 
Exchange LLC (``MIAX Options'' 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 is filing a proposal to amend the MIAX Options Fee 
Schedule (the ``Fee Schedule'').
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings, at MIAX's principal 
office, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend the Market Maker Sliding Scale 
(defined below) contained in its Fee Schedule, and assessed to MIAX 
Options Market Makers,\3\ to (i) modify certain volume thresholds, and 
(ii) increase certain Maker (as defined below) fees in certain Tiers 
for options transactions in Penny classes (as defined below) executed 
in the simple order book.
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    \3\ The term ``Market Makers'' refers to Lead Market Makers 
(``LMMs''), Primary Lead Market Makers (``PLMMs''), and Registered 
Market makers (``RMMs'') collectively. See Exchange Rule 100. A 
Directed Order Lead Market Maker (``DLMM'') and Directed Primary 
Lead Market Maker (``DPLMM'') is a party to a transaction being 
allocated to the LMM or PLMM and is the result of an order that has 
been directed to the LMM or PLMM. See Fee Schedule, note 2.
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    Section 1)a)i) of the Fee Schedule sets forth the Exchange's Market 
Maker Sliding Scale for Market Maker Transaction Fees (the ``Sliding 
Scale''). The Sliding Scale assesses a per contract transaction fee on 
a Market Maker for the execution of simple orders and quotes 
(collectively, ``simple orders'') and complex orders and quotes 
(collectively, ``complex orders''). The percentage threshold by tier is 
based on the Market Maker's percentage of total national market maker 
volume in all options classes that trade on the Exchange during a 
particular calendar month, or total aggregated volume (``TAV''), and 
the Exchange aggregates the volume executed by Market Makers in both 
simple orders and complex orders for purposes of determining the 
applicable tier and corresponding per contract transaction fee 
amount.\4\ The Sliding Scale applies to all MIAX Options Market Makers 
for transactions in all products (except for mini-options, for which 
there are separate product fees), with fees established for standard 
option classes in the Penny Pilot Program \5\ (``Penny classes'') and 
separate fees for standard option classes which are not in the Penny 
Pilot

[[Page 40584]]

Program (``non-Penny classes''), and further based on whether the 
Market Maker is acting as a ``Maker'' or a ``Taker'' in simple 
orders.\6\ Market Makers that place resting liquidity, i.e., quotes or 
orders on the MIAX Options System,\7\ are assessed the ``maker'' fee 
(each a ``Maker''). Market Makers that execute against (remove) resting 
liquidity are assessed a higher ``taker'' fee (each a ``Taker''). This 
is distinguished from traditional ``maker-taker'' models where 
``makers'' typically receive a rebate and ``takers'' are assessed a 
fee; the Exchange instead assesses lower transaction fees to ``makers'' 
as compared to ``takers,'' similar to the manner implemented at other 
exchanges.\8\
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    \4\ The calculation of the volume thresholds does not include 
QCC and cQCC Orders, PRIME and cPRIME AOC Responses, and unrelated 
MIAX Market Maker quotes or unrelated MIAX Market Maker orders that 
are received during the Response Time Interval and executed against 
the PRIME Order (``PRIME Participating Quotes or Orders'') and 
unrelated MIAX Market Maker complex quotes or unrelated MIAX Market 
Maker complex orders that are received during the Response Time 
Interval and executed against a cPRIME Order (``cPRIME Participating 
Quote or Order'') (herein ``Excluded Contracts''). See Fee Schedule, 
page 2.
    \5\ See Securities Exchange Act Release No. 83515 (June 25, 
2018), 83 FR 30786 (June 29, 2018) (SR-MIAX-2018-12).
    \6\ See Securities Exchange Act Release No. 78519 (August 9, 
2016), 81 FR 54162 (August 15, 2016) (SR-MIAX-2016-21).
    \7\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \8\ The Exchange notes that similar maker-taker pricing is 
implemented at Nasdaq ISE, LLC (``ISE''). See Nasdaq ISE Fee 
Schedule, Section I Regular Order Fees and Rebates.
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    Further, the Exchange provides certain discounted Market Maker 
transaction fees for Members \9\ and their qualified Affiliates \10\ 
that achieve certain volume thresholds through the submission of 
Priority Customer \11\ orders under the Exchange's Priority Customer 
Rebate Program (``PCRP''),\12\ which is set forth on two tables: one 
setting forth the transaction fees applicable to Members and their 
Affiliates that are in PCRP Volume Tier 3 or higher; and the other 
setting forth the transaction fees applicable to Members and their 
Affiliates that are not in PCRP Volume Tier 3 or higher. The Sliding 
Scale also includes Maker and Taker fees in both tables in each Tier 
for simple orders in Penny classes and non-Penny classes where the fees 
are discounted/differentiated between the tables.
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    \9\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associated with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
    \10\ For purposes of the MIAX Options Fee Schedule, the term 
``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, (``Affiliate''), 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 
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 
Market Maker) that has been appointed by a MIAX Market Maker, 
pursuant to the following process. A MIAX Market Maker appoints an 
EEM and an EEM appoints a MIAX Market Maker, for the purposes of the 
Fee Schedule, by each completing and sending an executed Volume 
Aggregation Request Form by email to <a href="/cdn-cgi/l/email-protection#4d2028202f283f3e25243d0d20242c35223d392422233e632e2220"><span class="__cf_email__" data-cfemail="c2afa7afa0a7b0b1aaabb282afaba3baadb2b6abadacb1eca1adaf">[email protected]</span></a> no 
later than 2 business days prior to the first business day of the 
month in which the designation is to become effective. Transmittal 
of a validly completed and executed form to the Exchange along with 
the Exchange's acknowledgement of the effective designation to each 
of the Market Maker and EEM will be viewed as acceptance of the 
appointment. The Exchange will only recognize one designation per 
Member. A Member may make a designation not more than once every 12 
months (from the date of its most recent designation), which 
designation shall remain in effect unless or until the Exchange 
receives written notice submitted 2 business days prior to the first 
business day of the month from either Member indicating that the 
appointment has been terminated. Designations will become operative 
on the first business day of the effective month and may not be 
terminated prior to the end of the month. Execution data and reports 
will be provided to both parties. See Fee Schedule, note 1.
    \11\ The term ``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). A 
``Priority Customer Order'' means an order for the account of a 
Priority Customer. See Exchange Rule 100.
    \12\ Under the PCRP, MIAX Options credits each Member the per 
contract amount resulting from each Priority Customer order 
transmitted by that Member which is executed electronically on the 
Exchange in all multiply-listed option classes (excluding, in simple 
or complex as applicable, QCC and cQCC Orders, mini-options, 
Priority Customer-to-Priority Customer Orders, C2C and cC2C Orders, 
PRIME and cPRIME AOC Responses, PRIME and cPRIME Contra-side Orders, 
PRIME and cPRIME Orders for which both the Agency and Contra-side 
Order are Priority Customers, and executions related to contracts 
that are routed to one or more exchanges in connection with the 
Options Order Protection and Locked/Crossed Market Plan referenced 
in Exchange Rule 1400), provided the Member meets certain percentage 
thresholds in a month as described in the Priority Customer Rebate 
Program table. See Fee Schedule, Section 1)a)iii.
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    The current Sliding Scale tables are as follows:

                                Members and Their Affiliates in Priority Customer Rebate Program Volume Tier 3 or Higher
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                                                                               Simple                                         Complex
                                                          ----------------------------------------------------------------------------------------------
                                                            Per contract fee for    Per contract fee for                                Per contract
                                                                penny classes         non-penny classes                                surcharge for
                                                          ------------------------------------------------     Per         Per       removing liquidity
                                 Tier       Percentage                                                      contract    contract     against a resting
                                            thresholds                                                       fee for     fee for     priority customer
                                                                                                              penny     non-penny   complex order on the
                                                              Maker       Taker       Maker       Taker      classes     classes     strategy book for
                                                                                                                                    penny and non-penny
                                                                                                                                          classes
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All MIAX Market Makers.......        1   0.00-0.075......      $0.21       $0.23       $0.25       $0.30       $0.25       $0.29                  $0.10
                                     2   Above 0.075-0.60       0.15        0.22        0.19        0.27        0.19        0.23                   0.10
                                     3   Above 0.60-1.00.       0.08        0.19        0.12        0.23        0.12        0.16                   0.10
                                     4   Above 1.00-1.50.       0.04        0.18        0.08        0.22        0.07        0.11                   0.10
                                     5   Above 1.50......       0.02        0.17        0.06        0.21        0.05        0.09                   0.10
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                              Members and Their Affiliates not in Priority Customer Rebate Program Volume Tier 3 or Higher
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                                                                               Simple                                         Complex
                                                          ----------------------------------------------------------------------------------------------
                                                            Per contract fee for    Per contract fee for                                Per contract
                                                                penny classes         non-penny classes                                surcharge for
                                                          ------------------------------------------------     Per         Per       removing liquidity
                                 Tier       Percentage                                                      contract    contract     against a resting
                                            thresholds                                                       fee for     fee for     priority customer
                                                                                                              penny     non-penny   complex order on the
                                                              Maker       Taker       Maker       Taker      classes     classes     strategy book for
                                                                                                                                    penny and non-penny
                                                                                                                                          classes
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All MIAX Market Makers.......        1   0.00-0.075......      $0.23       $0.25       $0.27       $0.32       $0.25       $0.29                  $0.10
                                     2   Above 0.075-0.60       0.17        0.24        0.21        0.29        0.19        0.23                   0.10
                                     3   Above 0.60-1.00.       0.10        0.21        0.14        0.25        0.12        0.16                   0.10
                                     4   Above 1.00-1.50.       0.06        0.20        0.10        0.24        0.07        0.11                   0.10

[[Page 40585]]

 
                                     5   Above 1.50......       0.04        0.19        0.08        0.23        0.05        0.09                   0.10
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    First, the Exchange proposes to modify the monthly volume 
thresholds in the Market Maker Sliding Scale in both the table setting 
forth the transaction fees applicable to Members and their Affiliates 
that are in PCRP Volume Tier 3 or higher; and in the second table 
setting forth the transaction fees applicable to Members and their 
Affiliates that are not in PCRP Volume Tier 3 or higher. Specifically, 
the Exchange proposes to adjust the percentage threshold of Tier 2 from 
above 0.075% up to 0.60% of the total monthly volume executed by the 
Member on MIAX Options, not including Excluded Contracts, divided by 
the TAV, to become above 0.075% up to 0.70% of the total monthly volume 
executed by the Member on MIAX Options, not including Excluded 
Contracts, divided by the TAV. The Exchange proposes to adjust the 
percentage threshold of Tier 3 from above 0.60% up to 1.00% of the 
total monthly volume executed by the Member on MIAX Options, not 
including Excluded Contracts, divided by the TAV, to become above 0.70% 
up to 1.10% of the total monthly volume executed by the Member on MIAX, 
not including Excluded Contracts, divided by the TAV. The Exchange 
proposes to adjust the percentage threshold of Tier 4 from above 1.00% 
up to 1.50% of the total monthly volume executed by the Member on MIAX 
Options, not including Excluded Contracts, divided by the TAV, to 
become above 1.10% up to 1.50% of the total monthly volume executed by 
the Member on MIAX Options, not including Excluded Contracts, divided 
by the TAV. The Exchange does not propose any adjustment to the 
percentage thresholds of Tier 1 or Tier 5.
    Second, the Exchange proposes to increase the Maker fees in the 
Market Maker Sliding Scale, in Tiers 2, 3, 4 and 5 for Penny classes, 
for Members and their Affiliates that are in PCRP Volume Tier 3 or 
higher and also for Members and their Affiliates not in PCRP Volume 
Tier 3 or higher. For options transactions in Penny classes by Members 
and their Affiliates that are in PCRP Volume Tier 3 or higher, the 
Exchange proposes to increase the Maker fee in Tier 2 from $0.15 to 
$0.16, in Tier 3 from $0.08 to $0.10, in Tier 4 from $0.04 to $0.05 and 
in Tier 5 from $0.02 to $0.03. For options transactions in Penny 
classes by Members and their Affiliates that are not in PCRP Volume 
Tier 3 or higher, the Exchange proposes to increase the Maker fee in 
Tier 2 from $0.17 to $0.18, in Tier 3 from $0.10 to $0.12, in Tier 4 
from $0.06 to $0.07 and in Tier 5 from $0.04 to $0.05.
    With all proposed changes Section 1)a)i of the Fee Schedule shall 
be the following:

                                Members and Their Affiliates in Priority Customer Rebate Program Volume Tier 3 or Higher
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                                                                               Simple                                         Complex
                                                          ----------------------------------------------------------------------------------------------
                                                            Per contract fee for    Per contract fee for                                Per contract
                                            Percentage          penny classes         non-penny classes        Per         Per     surcharge for trading
                                 Tier       thresholds    ------------------------------------------------  contract    contract     against a priority
                                                                                                             fee for     fee for      customer complex
                                                             Maker *      Taker      Maker *      Taker       penny     non-penny   order for penny and
                                                                                                             classes     classes     non-penny classes
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All MIAX Market Makers.......        1   0.00-0.075......      $0.21       $0.23       $0.25       $0.30       $0.25       $0.32                  $0.12
                                     2   Above 0.075-0.70       0.16        0.22        0.19        0.27        0.24        0.29                   0.12
                                     3   Above 0.70-1.10.       0.10        0.19        0.12        0.23        0.21        0.25                   0.12
                                     4   Above 1.10-1.50.       0.05        0.18        0.08        0.22        0.20        0.24                   0.12
                                     5   Above 1.50......       0.03        0.17        0.06        0.21        0.19        0.23                   0.12
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                              Members and Their Affiliates Not in Priority Customer Rebate Program Volume Tier 3 or Higher
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Simple                                         Complex
                                                          ----------------------------------------------------------------------------------------------
                                                            Per contract fee for    Per contract fee for                                Per contract
                                            Percentage          penny classes         non-penny classes        Per         Per     surcharge for trading
                                 Tier       thresholds    ------------------------------------------------  contract    contract     against a priority
                                                                                                             fee for     fee for      customer complex
                                                             Maker *      Taker      Maker *      Taker       penny     non-penny   order for penny and
                                                                                                             classes     classes     non-penny classes
--------------------------------------------------------------------------------------------------------------------------------------------------------
All MIAX Market Makers.......        1   0.00-0.075......       0.23        0.25        0.27        0.32        0.25        0.32                   0.12
                                     2   Above 0.075-0.70       0.18        0.24        0.21        0.29        0.24        0.29                   0.12
                                     3   Above 0.70-1.10.       0.12        0.21        0.14        0.25        0.21        0.25                   0.12
                                     4   Above 1.10-1.50.       0.07        0.20        0.10        0.24        0.20        0.24                   0.12
                                     5   Above 1.50......       0.05        0.19        0.08        0.23        0.19        0.23                   0.12
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[[Page 40586]]

    The proposed rule change is scheduled to become operative August 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 \13\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act,\14\ 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. The Exchange also believes the proposal furthers the 
objectives of Section 6(b)(5) of the Act,\15\ 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 and is not designed to permit 
unfair discrimination between customer, issuers, brokers and dealers.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(4).
    \15\ 15 U.S.C. 78f (b)(5).
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    The Exchange believes that the proposed changes to the Tier 
percentage thresholds in the Market Maker Sliding Scale are consistent 
with Section 6(b)(4) and 6(b)(5) of the Act in that they are fair, 
equitable and not unfairly discriminatory because they apply equally to 
all MIAX Options Market Makers. All MIAX Options Market Makers are 
subject to the same fee schedule, and access to the Exchange is offered 
on terms that are not unfairly discriminatory.
    The Exchange believes that the proposed changes to the Tier 
percentage thresholds in the Market Maker Sliding Scale 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 
Options Marker Maker volume is increased by the proposal, market 
participants will increasingly compete for the opportunity to trade on 
the Exchange including sending more orders and quotes to the Exchange. 
The resulting increased volume and liquidity will benefit all Exchange 
participants by providing more trading opportunities and tighter 
spreads.
    The specific percentage thresholds of the Tiers for Market Makers 
as well as the fees are set based upon business determinations and an 
analysis of current volume levels. The Exchange believes that the 
proposed Maker fees are generally within the range of fees at other 
exchanges that have a comparable pricing structure.\16\ The percentage 
thresholds are intended to continue to incentivize MIAX Options Market 
Makers to increase the number of orders and quotes they send to the 
Exchange so that they can achieve the next threshold, and to encourage 
all market participants to send more orders and quotes as well. 
Increasing the number of orders and quotes sent to the Exchange will in 
turn provide tighter and more liquid markets, and therefore attract 
more business overall. Similarly, the different fees 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 Options 
Market Makers to increase the volume of orders and quotes sent to, and 
contracts executed on, the Exchange. The specific volume thresholds of 
the Tiers and rates are set in order to encourage MIAX Options Market 
Makers to continue to reach for higher tiers.
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    \16\ See NYSE American LLC (``NYSE American'') Fee Schedule, p. 
11. The NYSE American Market Maker Sliding Scale Tier 1 percentage 
threshold is from 0.00% to 0.20%, with a per contract non-take 
volume fee of $0.25 and a per contract take volume fee of $0.25, the 
Tier 2 percentage threshold is from greater than 0.20% to 0.65%, 
with a per contract non-take volume fee of $0.22 and a per contract 
take volume fee of $0.24, the Tier 3 percentage threshold is from 
greater than 0.65% to 1.40%, with a per contract non-take volume fee 
of $0.12 and a per contract take volume fee of $0.17, the Tier 4 
percentage threshold is from greater than 1.40% to 2.00%, with a per 
contract non-take volume fee of $0.09 and a per contract take volume 
fee of $0.14, and the Tier 5 percentage threshold is greater than 
2.020%, with a per contract non-take volume fee of $0.06 and a per 
contract take volume fee of $0.09. See also Cboe Exchange, Inc. 
(``CBOE'') Fees Schedule, p. 3. The CBOE Liquidity Provider Sliding 
Scale Tier 1 percentage threshold is from 0.00% to 0.05%, with a 
transaction fee per contract of $0.23, the Tier 2 percentage 
threshold is from above 0.05% to 0.80%, with a transaction fee per 
contract of $0.17, the Tier 3 percentage threshold is from above 
0.80% to 1.50%, with a transaction fee per contract of $0.10, the 
Tier 4 percentage threshold is from above 1.50% to 2.25%, with a 
transaction fee per contract of $0.05, and the Tier 5 percentage 
threshold is above 2.25%, with a transaction fee per contract of 
$0.03.
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    The proposed Maker fee increases in Penny Classes for simple orders 
in the specified Tiers is reasonable, equitable and not unfairly 
discriminatory because all similarly situated MIAX Options Market 
Makers are subject to the same tiered fees and access to the Exchange 
is offered on terms that are not unfairly discriminatory. For 
competitive and business reasons, the Exchange has kept its Maker fees 
for simple orders in Penny Classes lower than certain other options 
exchanges that operate comparable pricing models.\17\ The Exchange now 
believes that it is appropriate to increase those Maker 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. While 
distinguished from the traditional ``maker-taker'' fee model under 
which an exchange pays a per-contract rebate to their members to 
encourage them to place resting liquidity by providing quotes and 
orders (``maker'') on their trading systems and assessing a fee that 
executes against a resting order (``taker''), the Exchange assesses a 
reduced fee for ``makers'' as compared to ``takers'' rather than giving 
the ``maker'' a rebate. Further, Exchange's proposal to assess a higher 
Maker fee is reasonable, equitable and not unfairly discriminatory 
because this would narrow the difference between the Maker and Taker 
fees, which would in turn benefit the public and investors by 
encouraging Market Makers to provide more order flow.
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    \17\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed fee structure is 
intended to promote narrower spreads and encourage the posting of 
liquidity (instead of taking liquidity), and thus should promote better 
prices. The Exchange believes that the proposed changes in the Tier 
structure in the Market Maker Sliding Scale 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 Options 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 fee increases 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 fees.
    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily favor competing venues if they 
deem fee

[[Page 40587]]

levels at a particular venue to be excessive. In such an environment, 
the Exchange must continually adjust its 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 provide liquidity and to send order flow to the 
Exchange rather than remove liquidity from the market place.

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,\18\ and Rule 19b-4(f)(2) \19\ 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.
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    \18\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \19\ 17 CFR 240.19b-4(f)(2).
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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 (http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#d1a3a4bdb4fcb2bebcbcb4bfa5a291a2b4b2ffb6bea7"><span class="__cf_email__" data-cfemail="f082859c95dd939f9d9d959e8483b0839593de979f86">[email protected]</span></a>. Please include 
File Number SR-MIAX-2018-21 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-MIAX-2018-21. 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-MIAX-2018-21, and should be submitted on 
or before September 5, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-17493 Filed 8-14-18; 8:45 am]
 BILLING CODE 8011-01-P


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