Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / Notices 83065 

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

2 17 CFR 240.19b–4. 

3The term ‘‘ABBO’’ or ‘‘Away Best Bid or Offer’’ 

means the best bid(s) or offer(s) disseminated by 

other Eligible Exchange (defined in Rule 1400(g)) 

and calculated by the Exchange based on market 

information received by the Exchanges from OPRA. 

See Exchange Rule 100. 

4 ‘‘Opening Process’’ shall mean the process for 

opening or resuming trading pursuant to Exchange 

Rule 503 and shall include the process for 

determining the price at which Eligible Interest 

shall be executed at the open of trading for the day, 

or the open of trading for a halted option, and the 

process for executing that Eligible Interest. See 

Exchange Rule 503(a)(1). 

5See Exchange Rule 503(a)(2). 

6The Exchange notes that its affiliate exchanges, 

MIAX Pearl Options and MIAX Emerald, have 

similar language in their fee schedules. 

7See Cboe U.S. Options Fee Schedules, C2 

Options, Transaction Fees, Trades at the Open, 

available online at https://www.cboe.com/us/ 

options/membership/fee_schedule/ctwo/; and 

EDGX Options, Transaction Fees, Fee Codes and 

Associated Fees, Fee Code ‘‘OO,’’ available online 

at https://www.cboe.com/us/options/membership/ 

fee_schedule/edgx/. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4). 

10 15 U.S.C. 78f(b)(5). 

11The term ‘‘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 Exchange Rule 100. 

Company name search field, on the 

SEC’s EDGAR system. 

The SEC’s EDGAR system may be 

searched at http://www.sec.gov/edgar/ 

searchedgar/legacy/ 

companysearch.html. You may also call 

the SEC’s Public Reference Room at 

(202) 551–8090. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–23761 Filed 10–11–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101281; File No. SR– 

SAPPHIRE–2024–30] 

Self-Regulatory Organizations; MIAX 

Sapphire, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fee 

Schedule 

October 8, 2024. 

Pursuant to 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 27, 2024, MIAX Sapphire, 

LLC (‘‘MIAX Sapphire’’ 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 Sapphire Fee 

Schedule (the ‘‘Fee Schedule’’) to waive 

transaction rebates/fees applicable to 

transactions executed during the 

opening and transactions that uncross 

the Away Best Bid or Offer (‘‘ABBO’’).3

The text of the proposed rule change 

is available on the Exchange’s website at 

https://www.miaxglobal.com/markets/ 

us-options/miax-sapphire/rule-filings, at 

the Exchange’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 purpose of this proposed rule 

change is to amend the Exchange’s Fee 

Schedule to waive transaction rebates/ 

fees applicable to executions that occur 

as part of the Exchange’s Opening 

Process 4 as described in Rule 503 

(‘‘Openings on the Exchange’’) or that 

uncross the ABBO, as described in Rule 

515 (‘‘Execution of Orders’’). 

Under Rule 503, Openings on the 

Exchange, the Exchange will accept 

orders for queuing prior to the opening 

of trading in that series of options.5

While orders are queued prior to the 

Opening Process it is not possible to 

identify the order as either Maker or 

Taker, therefore the Exchange now 

proposes to add additional detail to its 

Fee Schedule by adopting new note (2), 

to clarify that, the per contract 

transaction rebates and fees shall be 

waived for transactions executed during 

the opening and for transactions that 

uncross the ABBO.6 Additionally, the 

Exchange notes other competing option 

exchanges do not assess transaction 

rebates/fees at the open.7

Implementation 

The proposed change will become 

effective on October 1, 2024. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its fee schedule is 

consistent with Section 6(b) of the Act 8

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 9 in particular, 

in that it is an equitable allocation of 

reasonable dues, fees, and other charges 

among its 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 10 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 customers, 

issuers, brokers and dealers. 

The proposal provides that executions 

that occur as part of the Exchange’s 

Opening Process will not incur any fees 

or receive any rebates. The Exchange 

believes that its proposal to waive 

transaction rebates/fees that occur as 

part of the Exchange’s Opening Process 

is reasonable, fair and equitable because 

it will incentivize Members 11 to send 

order flow to the Exchange, potentially 

providing greater liquidity on the 

Exchange. In addition, the Exchange 

believes that the foregoing is fair and 

equitable because it provides certainty 

for Members with respect to execution 

costs occurring as part of the Exchange’s 

Opening Process. Lastly, the Exchange 

also believes that the proposed pricing 

for executions occurring as part of the 

Opening on the Exchange is 

nondiscriminatory because it will apply 

equally to all Members. 

The proposal further provides that 

executions that uncross the ABBO will 

not be assessed any fees or receive any 

rebates. The Exchange believes that its 

proposal to waive transaction rebates/ 

fees that uncross the ABBO is 

reasonable, fair and equitable because it 

will incentivize Members to send 

greater order flow to the Exchange in 


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83066 Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / Notices 

12See ‘‘Market Share, MTD Average’’ on the 

Exchange’s website, available at https://

www.miaxglobal.com/. 

13See supra note 7. 

14 15 U.S.C. 78s(b)(3)(A)(ii). 

15 17 CFR 240.19b–4(f)(2). 

this scenario, potentially providing 

greater liquidity on the Exchange. In 

addition, the Exchange believes that the 

foregoing is fair and equitable because it 

provides certainty for Members with 

respect to execution costs across all 

trades which uncross the ABBO. Lastly, 

the Exchange also believes that the 

proposed pricing for executions 

occurring in this scenario is 

nondiscriminatory because it will apply 

equally to all Members. 

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. 

Intra-Market Competition 

The proposal does not impose an 

undue burden on intra-market 

competition as transaction rebates and 

fees will be waived for transactions 

executed during the opening and for 

transactions that uncross the ABBO 

uniformly for all Members. The 

Exchange believes its proposal will 

encourage Members to submit orders to 

the Exchange which will increase 

liquidity and benefit all market 

participants by providing more trading 

opportunities and better execution 

prices. Accordingly, the Exchange 

believes that the proposed changes will 

not impose any burden on competition 

that is not necessary or appropriate in 

furtherance of the purposes of the Act 

because it will continue to encourage 

order flow, which provides greater 

volume and liquidity, benefiting all 

market participants by providing more 

trading opportunities and better 

execution prices. 

Inter-Market Competition 

The proposal does not impose an 

undue burden on inter-market 

competition. The Exchange believes its 

proposal remains competitive with 

other options markets and will offer 

market participants with another choice 

on where to route their orders for 

execution. 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. There are currently 18 

registered options exchanges competing 

for order flow. For the month of August 

2024, based on publicly-available 

information, and excluding index-based 

options, no single exchange exceeded 

approximately 14–15% of the market 

share of executed volume of multiplylisted equity and exchange-traded fund 

(‘‘ETF’’) options.12 Therefore, no 

exchange possesses significant pricing 

power in the execution of multiplylisted equity and ETF options order 

flow. In such an environment, the 

Exchange must propose transaction fees 

and rebates to be competitive with other 

exchanges and to attract order flow. The 

Exchange believes that the Exchange’s 

proposal reflects this competitive 

environment, to the extent this is 

achieved, all of the Exchange’s market 

participants should benefit from the 

quality of the Exchange’s market. 

The Exchange notes that this rule 

change is being proposed at a time when 

other options exchanges are offering 

similar pricing for similar market 

scenarios.13 As a result of the 

competitive environment, Members will 

have various pricing and execution 

models to choose from in making 

determinations on where to enter orders 

prior to the opening of trading or which 

may potentially uncross the ABBO. The 

Exchange notes that it operates in a 

highly competitive market in which 

Members can readily direct order flow 

to competing venues if they deem fee 

levels to be excessive. 

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,14 and Rule 

19b–4(f)(2) 15 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 (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number 

SR–SAPPHIRE–2024–30 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–SAPPHIRE–2024–30. 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–SAPPHIRE–2024–30 and should be 

submitted on or before November 5, 

2024. 


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Federal Register / Vol. 89, No. 199 / Tuesday, October 15, 2024 / Notices 83067 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19d–1(c)(2). 

3 17 CFR 240.19d–1(c)(1). 

4The Commission adopted amendments to 

paragraph (c) of Rule 19d–1 to allow SROs to 

submit for Commission approval plans for the 

abbreviated reporting of minor disciplinary 

infractions. See Securities Exchange Act Release 

No. 21013 (June 1, 1984), 49 FR 23828 (June 8, 

1984). Any disciplinary action taken by an SRO 

against any person for violation of a rule of the SRO 

which has been designated as a minor rule violation 

pursuant to such a plan filed with and declared 

effective by the Commission shall not be considered 

‘‘final’’ for purposes of Section 19(d)(1) of the Act 

if the sanction imposed consists of a fine not 

exceeding $2,500 and the sanctioned person has not 

sought an adjudication, including a hearing, or 

otherwise exhausted his administrative remedies. 

5 17 CFR 240.19d–1(c)(2). 

6The Exchange received its grant of registration 

on July 15, 2024, which included approving the 

rules that govern the Exchange. 

7While Rule 1014 allows the Exchange to 

administer fines up to $5,000, the Exchange is only 

seeking relief from the reporting requirements of 

paragraph (c)(1) of Rule 19d–1 for fines 

administered under Rule 1014(d) that do not exceed 

$2,500. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–23658 Filed 10–11–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101283; File No. 4–844] 

Self-Regulatory Organizations; MIAX 

Sapphire, LLC; Notice of Filing of 

Proposed Minor Rule Violation Plan 

October 8, 2024. 

Pursuant to Section 19(d)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19d–1(c)(2) 

thereunder,2 notice is hereby given that 

on October 1, 2024, MIAX Sapphire, 

LLC (‘‘Sapphire’’ or the ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed minor rule violation plan 

(‘‘MRVP’’) with sanctions not exceeding 

$2,500 which would not be subject to 

the provisions of Rule 19d–1(c)(1) of the 

Act 3 requiring that a self-regulatory 

organization (‘‘SRO’’) promptly file 

notice with the Commission of any final 

disciplinary action taken with respect to 

any person or organization.4 In 

accordance with Rule 19d–1(c)(2) under 

the Act,5 the Exchange proposes to 

designate certain specified rule 

violations as minor rule violations, and 

requests that it be relieved of the prompt 

reporting requirements regarding such 

violations, provided it gives notice of 

such violations to the Commission on a 

quarterly basis. 

The Exchange proposes to include in 

its MRVP the procedures and violations 

currently included in Exchange Rule 

1014 (‘‘Imposition of Fines for Minor 

Rule Violations’’).6 According to the 

Exchange’s proposed MRVP, under Rule 

1014, the Exchange may impose a fine 

(not to exceed $2,500) on any Member, 

or person associated with or employed 

by a Member, for any rule violation 

listed in Rule 1014(d).7 The Exchange 

shall serve the person against whom a 

fine is imposed with a written statement 

setting forth the rule or rules allegedly 

violated, the act or omission 

constituting each such violation, the 

fine imposed for each violation, and the 

date by which such determination 

becomes final or by which such 

determination must be paid or 

contested. If the person against whom 

the fine is imposed pays the fine, such 

payment shall be deemed to be a waiver 

of such person’s right to a disciplinary 

proceeding and any review of the matter 

under the Exchange rules. Any person 

against whom a fine is imposed may 

contest the Exchange’s determination by 

filing with the Exchange a written 

answer, at which point the matter shall 

become a disciplinary proceeding. 

The Exchange proposes that, as set 

forth in Exchange Rule 1014(d), 

violations of the following rules would 

be appropriate for disposition under the 

MRVP: Rule 307 (Position Limits); Rule 

803 (Focus Reports); Rule 804 (Requests 

for Trade Data); Rule 520 (Order Entry); 

Rule 605 (Execution of Orders in 

Appointed Options); Rule 314 

(Mandatory Systems Testing); Rule 700 

(Exercise of Option Contracts); Rule 309 

(Exercise Limits); Rule 310 (Reports 

Related to Position Limits); Rule 403 

(Trading in Restricted Classes); Rule 605 

(Market Maker Quotations); Rule 1904 

(Failure to Timely File Amendments to 

Form U4, Form U5, and Form BD); and 

Rules 1701–1713 (Failure to Comply 

with the Consolidated Audit Trail 

Compliance Rule Under Chapter XVII). 

The Exchange states that it is 

specifically excluding Rule 1014(d)(4), 

Conduct and Decorum Policies, from 

this filing. 

Upon the Commission’s declaration of 

effectiveness of the MRVP, the Exchange 

will provide to the Commission a 

quarterly report for any actions taken on 

minor rule violations under the MRVP. 

The quarterly report will include: the 

disposition date, the name of the firm/ 

individual, the Exchange’s internal 

enforcement number, the review period, 

the nature of the violation type, the 

number of the rule that was violated, the 

number of instances the violation 

occurred, and the sanction imposed. 

Based on compliance with the above, 

the Exchange requests that the rule 

violations designated in Rule 1014(d) be 

designated as minor rule violations 

subject to a minor rule violation 

reporting plan and that the Exchange be 

relieved of the current reporting 

requirements regarding such violations. 

In addition, going forward, to the extent 

that there are any changes to the rules 

applicable to the Exchange’s MRVP, the 

Exchange requests that the Commission 

deem such changes to be modifications 

to the Exchange’s MRVP. 

I. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed MRVP 

is consistent with the Act. Comments 

may be submitted by any of the 

following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File No. 4–844 

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. 

4–844. 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 MRVP that 

are filed with the Commission, and all 

written communications relating to the 

proposed MRVP 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 proposed 

MRVP also will be available for 

inspection and copying at the principal 

office of the Exchange. Do not include 


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