[Federal Register Volume 89, Number 190 (Tuesday, October 1, 2024)]
[Notices]
[Pages 79985-79987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-22414]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101191; File No. SR-MIAX-2024-38]


Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Make a Number of Minor, Non-Substantive Edits 
to Exchange's Rulebook and Delete All References to Mini-Options in the 
Rulebook

September 25, 2024.
    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 September 17, 2024, Miami International 
Securities Exchange, LLC (``MIAX'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``Commission'') a proposed rule 
change as described in Items I and II below, which Items have been 
prepared by the Exchange. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to make a number of minor, non-substantive 
edits to Exchange's Rulebook and delete all references to mini-options 
in the Rulebook.
    The text of the proposed rule change is available on the Exchange's 
website at https://www.miaxglobal.com/markets/us-options/miax-options/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
Proposal To Amend Exchange Rule 100
    The Exchange proposes to amend Exchange Rule 100 to make minor, 
non-substantive edits and clarifying changes to provide accuracy and 
precision within the rule text.
    Specifically, the Exchange proposes to amend the definition of 
Market Makers \3\ in Exchange Rule 100 to move the comma after ``Lead 
Market Makers'' from outside to inside the quotation marks for 
grammatical correctness and clarity in the rule text. Additionally, the 
Exchange proposes to add a comma before the conjunction ``and'' (i.e. 
between ``Primary Lead Market Makers'' and ``Registered Market 
Makers''), where the comma will be placed inside the closing quotation 
mark. Accordingly, with the proposed changes, the definition of Market 
Makers in Exchange Rule 100 will read as follows:
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    \3\ The term ``Market Makers'' refers to ``Lead Market Makers'', 
``Primary Lead Market Makers'' and ``Registered Market Makers'' 
collectively. See Exchange Rule 100.

    The term ``Market Makers'' refers to ``Lead Market Makers,'' 
``Primary Lead Market Makers,'' and ``Registered Market Makers'' 
collectively.
Proposal To Amend Interpretations and Policies .01 of Exchange Rule 521
    The Exchange proposes to amend Interpretations and Policies .01 of 
Exchange Rule 521 to make a minor, non-substantive edit to provide 
accuracy and precision within the rule text.
    Specifically, the Exchange proposes to amend Interpretations and 
Policies .01

[[Page 79986]]

of Exchange Rule 521 to add a closing parenthesis at the end of the 
first sentence for grammatical correctness and clarity in the rule 
text. Accordingly, with the proposed changes, the Interpretations and 
Policies .01 of Exchange Rule 521 will read as follows:

    .01 Limit Up-Limit Down State. An execution will not be subject 
to review as an Obvious Error or Catastrophic Error pursuant to 
paragraph (c) or (d) of this Rule if it occurred while the 
underlying security was in a ``Limit State'' or ``Straddle State,'' 
as defined in the Regulation NMS Plan to Address Extraordinary 
Market Volatility (the ``Limit Up-Limit Down Plan'' or the 
``Plan''). Nothing in this provision shall prevent such execution 
from being reviewed on an Official's own motion pursuant to sub-
paragraph (c)(3) of this Rule, or a bust or adjust pursuant to 
paragraphs (e) through (k) of this Rule.
Proposal To Amend Interpretations and Policies .02 of Exchange Rule 
1809
    The Exchange proposes to amend Interpretations and Policies .02 of 
Exchange Rule 1809 to make a minor, clarifying change to provide 
accuracy and precision within the rule text. Interpretation and Policy 
.02 of Exchange Rule 1809 discusses the Quarterly Options Series \4\ 
Program and that the Exchange may list Quarterly Options Series for 
index options.
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    \4\ The term ``Quarterly Options Series'' is a series in an 
options class that is approved for listing and trading on the 
Exchange in which the series is opened for trading on any business 
day and that expires at the close of business on the last business 
day of a calendar quarter. See Exchange Rule 100.
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    Specifically, the Exchange proposes to amend Interpretations and 
Policies .02 of Exchange Rule 1809 to delete ``pilot'' at the end of 
the last sentence. The Exchange notes that other exchanges have 
permanently established quarterly options series programs.\5\ 
Accordingly, with the proposed changes, Interpretations and Policies 
.02 of Exchange Rule 1809 will read as follows:
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    \5\ See e.g., Securities Exchange Act Release No. 60164 (June 
23, 2009), 74 FR 31333 (June 30, 2009) (SR-CBOE-2009-029) (Order 
Approving a Proposed Rule Change To Permanently Establish the 
Quarterly Option Series Program); see also Securities Exchange Act 
Release No. 60275 (July 9, 2009), 74 FR 34809 (July 17, 2009) (SR-
ISE-2009-50) (Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change To Permanently Establish the Quarterly Options 
Series Pilot Program).

    .02 Quarterly Options Series Program: Notwithstanding the 
restriction in Rule 1809(a)(3), the Exchange may list and trade 
options series that expire at the close of business on the last 
business day of a calendar quarter (``Quarterly Options Series''). 
The Exchange may list Quarterly Options Series for up to five (5) 
currently listed options classes that are either index options or 
options on exchange traded funds (``ETFs''). In addition, the 
Exchange may also list Quarterly Options Series on any options 
classes that are selected by other securities exchanges that employ 
a similar program under their respective rules.
Proposal To Delete All References to Mini-Options
    The Exchange proposes to delete all outdated references to mini-
options in the rule text.\6\ On April 17, 2013, the Exchange began 
listing and trading mini-options that were options contracts on a 
select number of high-priced and actively traded securities, each with 
a unit of trading ten times lower than that of standard-sized options 
contracts.\7\ Mini-options never gained significant market acceptance 
and have not achieved the expected level of traction or success in its 
target market. Accordingly, all mini-options were delisted several 
years ago and the Exchange does not have plans to re-list them in the 
foreseeable future. As the Exchange no longer offers mini-option 
contracts, the Exchange proposes to delete all references to mini-
options to provide greater clarity to Members \8\ and the public 
regarding the Exchange's offerings and Rulebook. The Exchange also 
notes that other exchanges filed similar proposals to delete references 
to mini-options.\9\
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    \6\ The Exchange anticipates it will file a separate rule filing 
pursuant to Rule 19b-4 of the Exchange Act with the Commission to 
remove references to ``mini-options'' in the MIAX Options Exchange 
Fee Schedule, including outdated tables that still list fees (or 
rebates) for transactions by market participants in mini-options.
    \7\ See Securities Exchange Act Release No. 69136 (March 14, 
2013), 78 FR 17259 (March 20, 2013) (SR-MIAX-2013-06).
    \8\ 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.
    \9\ See Securities Exchange Act Release No. 88374 (March 12, 
2020), 85 FR 15522 (March 18, 2020) (SR-Phlx-2020-08) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Certain Phlx Rules To Remove References to Mini Options); see also 
Securities Exchange Act Release No. 88458 (March 23, 2020), 85 FR 
17372 (March 27, 2020) (SR-MRX-2020-07) (Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Related to the 
Removal of Obsolete Listing Rules); see also Securities Exchange Act 
Release No. 88456 (March 23, 2020), 85 FR 17126 (March 26, 2020) 
(SR-ISE-2020-11) (Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change Related to the Removal of Obsolete Listing 
Rules).
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    Specifically, the Exchange proposes to delete the content in 
Interpretations and Policies .03 of Exchange Rule 307 and then insert 
``Reserved'' so as to keep the remainder of the Rulebook as currently 
formatted. The Exchange proposes to delete the content in 
Interpretations and Policies .08 of Exchange Rule 404 and then insert 
``Reserved'' so as to keep the remainder of the Rulebook as currently 
formatted. The Exchange proposes to delete the content in subparagraph 
(c) of Exchange Rule 509 and then insert ``Reserved'' so as to keep the 
remainder of the Rulebook as currently formatted. The Exchange proposes 
to delete the content in Interpretations and Policies .02 of Exchange 
Rule 510 and then insert ``Reserved'' so as to keep the remainder of 
the Rulebook as currently formatted. The Exchange proposes to delete 
``or 5,000 mini-option contracts'' at the end of subparagraph (b)(1)(i) 
of Exchange Rule 515A. The Exchange proposes to delete ``or 10,000 
mini-option contracts,'' in the first sentence of subparagraph (j) of 
Exchange Rule 516. In addition, the Exchange proposes to delete the 
sentence that ``Mini-options may only be part of a complex order that 
includes other mini-options.'' in subparagraph (a)(5) of Exchange Rule 
518.
2. Statutory Basis
    The Exchange believes that the proposed changes are consistent with 
Section 6(b) of the Act \10\ in general, and further the objectives of 
Section 6(b)(1) of the Act \11\ in particular, in that they are 
designed to enforce compliance by the Exchange's Members and persons 
associated with its Members, with the provisions of the rules of the 
Exchange. In particular, the Exchange believes that the proposed 
changes will provide greater clarity to Members and the public 
regarding the Exchange's Rulebook by correcting grammatical errors, 
removing obsolete rule text, and providing accuracy and consistency 
within the Exchange's Rulebook. The proposed changes will also make it 
easier for Members to interpret the Exchange's Rulebook.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(1).
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    The Exchange believes that the proposed rule changes also further 
the objectives of Section 6(b)(5) of the Act. In particular, they are 
designed to prevent fraudulent and manipulative acts and practices, 
promote just and equitable principles of trade, foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, remove impediments to and perfect the mechanisms of a 
free and open market and a national market system and, in general, 
protect investors and the public interest. The Exchange believes the 
proposed changes promote just and equitable principles of trade and 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system

[[Page 79987]]

because the proposed rule changes will provide greater clarity to 
Members and the public regarding the Exchange's Rulebook by correcting 
grammatical errors and removing obsolete rule text. The proposed 
changes to remove obsolete rule text include the removal of outdated 
references to mini-options. Mini-options are no longer offered by the 
Exchange since mini-options failed to gain significant market 
acceptance and have not achieved the expected level of traction or 
success in its target market. Removing references to mini-options would 
render the rules more accurate and reduce potential investor confusion. 
It is in the public interest for the Exchange's Rulebook to be accurate 
and concise so as to eliminate the potential for confusion.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed changes will impose 
any burden on competition not necessary or appropriate in furtherance 
of the purposes of the Act. Specifically, the Exchange believes the 
proposed changes will not impose any burden on intra-market competition 
as there is no functional change to the Exchange's System \12\ and 
because the rules of the Exchange apply to all Members equally. The 
proposed rule changes will have no impact on competition as they are 
not designed to address any competitive issue but rather are designed 
to remedy minor, non-substantive issues and provide added clarity to 
the Exchange's Rulebook, including removing outdated references to 
mini-options that are no longer offered by the Exchange. Mini-options 
failed to gain significant market acceptance and have not achieved the 
expected level of traction or success in its target market, so the 
Exchange delisted all mini-options several years ago and does not have 
plans to re-list them in the foreseeable future.\13\ In addition, the 
Exchange does not believe the proposal will impose any burden on inter-
market competition as the proposal does not address any competitive 
issues and is intended to protect investors by providing further 
transparency and accuracy regarding the Exchange's Rulebook.
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    \12\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \13\ The Exchange notes that other exchanges filed similar 
proposals to delete references to mini-options. See supra note 9.
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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

    Because the foregoing proposed rule change does not: (i) 
significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \14\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed 
rule change be approved or disapproved.
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    \16\ 15 U.S.C. 78s(b)(2)(B).
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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 (https://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#493b3c252c642a2624242c273d3a093a2c2a672e263f"><span class="__cf_email__" data-cfemail="2e5c5b424b034d4143434b405a5d6e5d4b4d00494158">[email protected]</span></a>. Please include 
file number SR-MIAX-2024-38 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-2024-38. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-MIAX-2024-38 and should be 
submitted on or before October 22, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-22414 Filed 9-30-24; 8:45 am]
BILLING CODE 8011-01-P


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