40110 Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices 

9 15 U.S.C. 78s(b)(3)(A)(ii). 

10 17 CFR 200.30–3(a)(12). 

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

The Exchange believes that amending 

the ORF from $0.0010 to $0.0020 as of 

August 1, 2018 is equitable and not 

unfairly discriminatory because 

assessing the ORF to each Member for 

options transactions cleared by OCC in 

the customer range where the execution 

occurs on another exchange and is 

cleared by a GEMX Member is an 

equitable allocation of reasonable dues, 

fees, and other charges among its 

members and issuers and other persons 

using its facilities. The ORF is collected 

by OCC on behalf of GEMX from 

Exchange clearing members for all 

customer transactions they clear or from 

non-members for all customer 

transactions they clear that were 

executed on GEMX. The Exchange 

believes the ORF ensures fairness by 

assessing fees to Members based on the 

amount of customer options business 

they conduct. Regulating customer 

trading activity is much more labor 

intensive and requires greater 

expenditure of human and technical 

resources than regulating non-customer 

trading activity, which tends to be more 

automated and less labor-intensive. As a 

result, the costs associated with 

administering the customer component 

of the Exchange’s overall regulatory 

program are materially higher than the 

costs associated with administering the 

non-customer component (e.g., Member 

proprietary transactions) of its 

regulatory program. 

The ORF is designed to recover a 

material portion of the costs of 

supervising and regulating Members’ 

customer options business including 

performing routine surveillances, 

investigations, examinations, financial 

monitoring, and policy, rulemaking, 

interpretive, and enforcement activities. 

The Exchange will monitor the amount 

of revenue collected from the ORF to 

ensure that it, in combination with its 

other regulatory fees and fines, does not 

exceed the Exchange’s total regulatory 

costs. The Exchange has designed the 

ORF to generate revenues that, when 

combined with all of the Exchange’s 

other regulatory fees, will be less than 

or equal to the Exchange’s regulatory 

costs, which is consistent with the 

Commission’s view that regulatory fees 

be used for regulatory purposes and not 

to support the Exchange’s business side. 

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. This 

proposal does not create an unnecessary 

or inappropriate intra-market burden on 

competition because the ORF applies to 

all customer activity, thereby raising 

regulatory revenue to offset regulatory 

expenses. It also supplements the 

regulatory revenue derived from noncustomer activity. This proposal does 

not create an unnecessary or 

inappropriate inter-market burden on 

competition because it is a regulatory 

fee that supports regulation in 

furtherance of the purposes of the Act. 

The Exchange is obligated to ensure that 

the amount of regulatory revenue 

collected from the ORF, in combination 

with its other regulatory fees and fines, 

does not exceed regulatory costs. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or 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.9 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: (i) 

Necessary or appropriate in the public 

interest; (ii) for the protection of 

investors; or (iii) 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 No. SR– 

GEMX–2018–27 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 No. 

SR–GEMX–2018–27. 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 No. 

SR–GEMX–2018–27, and should be 

submitted on or before September 4, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–17254 Filed 8–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83788; File No. SR–MIAX– 

2018–18] 

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 7, 2018. 

Pursuant to the provisions of Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices 40111 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 83726 

(July 27, 2018) (SR–MIAX–2018–16) Notice of 

Filing and Immediate Effectiveness of a Proposed 

Rule Change to Amend Exchange Rule 518, 

Complex Orders. 

4See MIAX Regulatory Circular 2016–43, October 

20, 2016. 

5See Securities Exchange Act Release No. 79072 

(October 7, 2014), 81 FR 71131 (October 14, 2016) 

(SR–MIAX–2016–26). 

6The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

7The 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. 

8See supra note 3. 

9See Fee Schedule 5)d)iii). 

10 15 U.S.C. 78f(b). 

11 15 U.S.C. 78f(b)(4). 

12 15 U.S.C. 78f(b)(5). 

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. 

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/rulefilings, at MIAX’s principal office, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Fee Schedule to adopt a stock handling 

fee for stock-option orders (including 

stock-option eQuotes) executed against 

other stock-option orders in the 

complex order book, which the 

Exchange must route to an outside 

venue. 

The Exchange recently amended 

Exchange Rule 518, Complex Orders, to 

update its rule text regarding stockoption orders, in connection with the 

upcoming launch of such orders on the 

Exchange.3 Complex orders began 

trading on the Exchange on October 24, 

2016.4 In its rule filing to establish the 

trading of complex orders, the Exchange 

adopted rules for handling stock-option 

orders.5 The Exchange also indicated 

that it would determine when stockoption orders would be made available 

for trading in the System 6 and would 

communicate such determination to 

Members 7 via Regulatory Circular.8 The 

Exchange made certain changes to its 

rule text, in connection with the 

upcoming launch of such orders on the 

Exchange, which is scheduled for Q3 

2018. 

The Exchange proposes to adopt a 

stock handling fee applicable to stockoption orders (including stock-option 

eQuotes) executed against other stockoption orders in the complex order 

book, which the Exchange must route to 

an outside venue. Specifically, the 

Exchange proposes to adopt a stock 

handling fee of $0.0010 per share for the 

stock leg of stock-option orders 

executed against other stock-option 

orders in the complex order book, 

which are routed to an outside venue. 

This stock handling fee to be assessed 

by the Exchange will cover all fees 

charged by the outside venue that prints 

the trade, and it is also intended to 

compensate the Exchange for matching 

these stock-option orders against other 

stock-option orders on the complex 

order book. A maximum of $50 per 

order, per day, will be assessed under 

this fee. The cap is intended to give 

market participants assurance that they 

will not pay more than the capped 

amount for the execution of the stock 

leg of their stock-option orders. The 

Exchange believes that by limiting this 

fee to a maximum of $50 per order, per 

day, the Exchange addresses the 

possibility that a GTC order could be 

executed over multiple days. For 

example, if such an order was partiallyexecuted on a Monday, and then the 

remainder was fully-executed on a 

Tuesday, the total maximum fee charged 

to the market participant would be $100 

($50 per day). In addition to the 

Exchange’s fee, the Exchange will also 

pass through to the Member any fees 

assessed by the routing broker-dealer 

utilized by the Exchange with respect to 

the execution of the stock leg of any 

such order (with such fees to be passed 

through at cost). For example, the 

Exchange anticipates that the routing 

broker-dealer will bill the Exchange for 

Section 31 fees and FINRA Trading 

Activity Fees with respect to the 

execution of the stock leg of any such 

order. The Exchange will pass such fees 

through to the Member, at cost (that is, 

without any additional mark-up). 

Separately, the Exchange also notes 

that it currently charges fees to Members 

who subscribe to an Exchange-provided 

data feed that contains real-time 

clearing trade updates, which includes 

trades in its complex order book. 

Specifically, through the Exchange’s 

Clearing Trade Drop (‘‘CTD’’) port, it 

provides updates, including the 

Member’s clearing trade messages, on a 

low latency, real-time basis.9 With 

respect to stock-option orders, the 

Exchange notes that while such CTD 

port will now include information 

relating to the execution of both the 

option leg(s) and the stock leg(s) of a 

stock-option order, the Exchange will 

not charge an additional CTD fee for the 

stock leg(s) of a stock-option order. 

The proposed rule change is 

scheduled to become operative on 

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 10

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 11 in 

particular, in that it provides for the 

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 12

in that it is designed to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism 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. 

The Exchange believes that the 

proposed stock handling fee for stockoption orders (including stock-option 

eQuotes) is consistent with Section 

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

equitable and not unfairly 

discriminatory. The Exchange believes 

the proposed stock handling fee for 


sradovich on DSK3GMQ082PROD with NOTICES
40112 Federal Register / Vol. 83, No. 156 / Monday, August 13, 2018 / Notices 

13See ISE Schedule of Fees, Section II; see also 

Securities Exchange Act Release No. 74117 (January 

22, 2015), 80 FR 4600 (January 28, 2015) (SR–ISE– 

2015–03). 

14 15 U.S.C. 78f(b)(5). 

15See supra note 13. 

16 15 U.S.C. 78s(b)(3)(A)(ii). 

17 17 CFR 240.19b–4(f)(2). 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 83520 

(June 26, 2018), 83 FR 31014 (July 2, 2018). 

4All comments on the proposed rule change are 

available on the Commission’s website at: https:// 

www.sec.gov/comments/sr-cboebzx-2018-040/ 

cboebzx2018040.htm. 

stock-option orders is reasonable and 

equitable as the proposed fee will cover 

the costs of developing and maintaining 

the systems that allow for the matching 

and processing of the stock legs of stockoption orders executed in the complex 

order book, as well as all fees charged 

by the outside venue that prints the 

trade. The Exchange also believes it is 

reasonable and equitable to pass 

through to the Member any fees 

assessed by the routing broker-dealer 

utilized by the Exchange with respect to 

the execution of the stock leg of any 

such order (with such fees to be passed 

through at cost). The Exchange notes 

that another exchange has a comparable 

fee for the handling of the stock leg of 

stock-option orders. Specifically, 

Nasdaq ISE (‘‘ISE’’) charges a stock 

handling fee of $0.0010 per share which 

is capped at $50 per order.13 The 

Exchange also believes that its proposal 

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

Act 14 because it will be uniformly 

applied to all Members that execute 

stock-option orders in the complex 

order book on the Exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed fee is similar to and within the 

range of fees charged by the Exchange’s 

competitor.15 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 

fees to remain competitive with other 

exchanges and to attract order flow to 

the Exchange. For the reasons stated 

above, the Exchange believes that the 

proposed rule change reflects this 

competitive environment. 

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,16 and Rule 

19b–4(f)(2)17 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– 

MIAX–2018–18 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–MIAX–2018–18. 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–2018–18 and should 

be submitted on or before September 4, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–17253 Filed 8–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83792; File No. SR– 

CboeBZX–2018–040] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on a Proposed 

Rule Change To List and Trade Shares 

of SolidX Bitcoin Shares Issued by the 

VanEck SolidX Bitcoin Trust 

August 7, 2018. 

On June 20, 2018, Cboe BZX 

Exchange, Inc. (‘‘BZX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

list and trade shares of SolidX Bitcoin 

Shares issued by the VanEck SolidX 

Bitcoin Trust, under BZX Rule 

14.11(e)(4), Commodity-Based Trust 

Shares. The proposed rule change was 

published for comment in the Federal 

Register on July 2, 2018.3 As of August 

6, 2018, the Commission has received 

more than 1,300 comments on the 

proposed rule change.4


sradovich on DSK3GMQ082PROD with NOTICES