Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Notices 14421 

18 17 CFR 200.30–3(a)(12). 

1 17 CFR 242.612(c). 

2At the time it filed the original proposal to adopt 

the Retail Liquidity Program, NYSE MKT went by 

the name NYSE Amex LLC. On May 14, 2012, the 

Exchange filed a proposed rule change, 

immediately effective upon filing, to change its 

name from NYSE Amex LLC to NYSE MKT LLC. 

See Securities Exchange Act Release No. 67037 

(May 21, 2012), 77 FR 31415 (May 25, 2012) (SR– 

NYSEAmex–2012–32). 

3See Securities Exchange Act Release No. 67347 

(July 3, 2012), 77 FR 40673 (July 10, 2012) (SR– 

NYSE–2011–55; SR–NYSEAmex–2011–84) 

(‘‘Order’’). 

4See id. 

5The pilot term of the Programs was originally 

scheduled to end on July 31, 2013, but the 

Exchanges initially extended the term for an 

additional year, through July 31, 2014, see 

Securities Exchange Act Release Nos. 70096 

(August 2, 2013), 78 FR 48520 (August 8, 2013) 

(SR–NYSE–2013–48), and 70100 (August 2, 2013), 

78 FR 48535 (August 8, 2013) (SR–NYSEMKT– 

2013–60), and then subsequently extended the term 

again through March 31, 2015, see Securities 

Exchange Act Release Nos. 72629 (July 16, 2014), 

79 FR 42564 (July 22, 2014) (SR–NYSE–2014–35), 

and 72625 (July 16, 2014), 79 FR 42566 (July 22, 

2014) (SR–NYSEMKT–2014–60). Each time the 

pilot term of the Programs was extended, the 

Commission granted the Exchanges’ requests to also 

extend the Sub-Penny Exemption through July 31, 

2014, see Securities Exchange Act Release No. 

70085 (July 31, 2013), 78 FR 47807 (August 6, 

2013), and March 31, 2015, see Securities Exchange 

Act Release No. 72732 (July 31, 2014), 79 FR 45851 

(August 6, 2014), respectively. 

6See Letter from Martha Redding, Senior 

Counsel, NYSE, to Brent J. Fields, Secretary, 

Securities and Exchange Commission, dated 

February 27, 2015. 

7See Securities Exchange Act Release Nos. 34– 

74454 (March 6, 2015), 80 FR 13054 (March 12, 

2015) (SR–NYSE–2015–10), and 34–74455 (March 

6, 2015), 80 FR 13047 (March 12, 2015) (SR– 

NYSEMKT–2015–14). 

8See Order, supra note 3, 77 FR at 40681. 

9 17 CFR 200.30–3(a)(83). 

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 Web site (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 Web site 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 such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

ISEGemini–2015–06, and should be 

submitted on or before April 9, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06263 Filed 3–18–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74507; File Nos. SR–NYSE– 

2011–55; SR–NYSEAmex–2011–84] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; NYSE MKT 

LLC; Order Granting an Extension to 

Limited Exemptions From Rule 612(c) 

of Regulation NMS in Connection With 

the Exchanges’ Retail Liquidity 

Programs Until September 30, 2015 

March 13, 2015. 

On July 3, 2012, the Securities and 

Exchange Commission (‘‘Commission’’) 

issued an order pursuant to its authority 

under Rule 612(c) of Regulation NMS 

(‘‘Sub-Penny Rule’’) 1 that granted the 

New York Stock Exchange LLC 

(‘‘NYSE’’) and NYSE MKT LLC2

(‘‘NYSE MKT’’ and, together with 

NYSE, the ‘‘Exchanges’’) limited 

exemptions from the Sub-Penny Rule in 

connection with the operation of the 

Exchanges’ respective Retail Liquidity 

Programs (the ‘‘Programs’’).3 The 

limited exemptions were granted 

concurrently with the Commission’s 

approval of the Exchanges’ proposals to 

adopt their respective Programs for oneyear pilot terms.4 The exemptions were 

granted coterminous with the 

effectiveness of the pilot Programs; both 

the pilot Programs and exemptions are 

scheduled to expire on March 31, 2015.5

The Exchanges now seek to extend 

the exemptions until September 30, 

2015.6 The Exchanges’ request was 

made in conjunction with immediately 

effective filings that extend the 

operation of the Programs through the 

same date.7 In their request to extend 

the exemptions, the Exchanges note that 

the participation in the Programs has 

increased more recently. Accordingly, 

the Exchanges have asked for additional 

time to allow themselves and the 

Commission to analyze more robust data 

concerning the Programs, which the 

Exchanges committed to provide to the 

Commission.8 For this reason and the 

reasons stated in the Order originally 

granting the limited exemptions, the 

Commission finds that extending the 

exemptions, pursuant to its authority 

under Rule 612(c) of Regulation NMS, is 

appropriate in the public interest and 

consistent with the protection of 

investors. 

Therefore, it is hereby ordered that, 

pursuant to Rule 612(c) of Regulation 

NMS, each Exchange is granted a 

limited exemption from Rule 612 of 

Regulation NMS that allows it to accept 

and rank orders priced equal to or 

greater than $1.00 per share in 

increments of $0.001, in connection 

with the operation of its Retail Liquidity 

Program, until September 30, 2015. 

The limited and temporary 

exemptions extended by this Order are 

subject to modification or revocation if 

at any time the Commission determines 

that such action is necessary or 

appropriate in furtherance of the 

purposes of the Securities Exchange Act 

of 1934. Responsibility for compliance 

with any applicable provisions of the 

Federal securities laws must rest with 

the persons relying on the exemptions 

that are the subject of this Order. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06265 Filed 3–18–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74496; File No. SR–MIAX– 

2015–03] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Order Granting Approval to Proposed 

Rule Change, as Modified by 

Amendment No. 1 Thereto, To Adopt a 

‘‘Risk Protection Monitor’’ 

Functionality Under Proposed MIAX 

Rule 519A and Amend the ‘‘Aggregate 

Risk Monitor’’ Functionality Under 

MIAX Rule 612 

March 13, 2015. 

I. Introduction 

On January 8, 2015, Miami 

International Securities Exchange LLC 

(‘‘MIAX’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to section 

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


Rmajette on DSK2VPTVN1PROD with NOTICES
14422 Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Notices 

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

2 17 CFR 240.19b–4. 

3 In Amendment No. 1, the Exchange proposed 

changes to the Form 19b–4, Exhibit 1, and Exhibit 

5 to clarify that once triggered, the Risk Protection 

Monitor described therein will apply to orders in 

all series in all classes of options from the Exchange 

Member. 

4See Securities Exchange Act Release No. 74118 

(January 22, 2015), 80 FR 4605 (‘‘Notice’’). 

5 In its filing, the Exchange noted that members 

may establish different specified time periods for 

the purpose of counting orders and the purpose of 

counting contracts traded via an order entered by 

the member under the RPM, and thus, the length 

of the specified time period for each purpose need 

not be the same. See Notice, supra note 4, at 4605 

n.7. 

6 In the Notice, the Exchange provided examples 

demonstrating how the System will determine 

when the Allowable Order Rate or Allowable 

Contract Execution Rate for an individual member 

is exceeded. See Notice, supra note 4, at 4606–07. 

7 Interpretation and Policy .02 to new MIAX Rule 

519A provides that PRIME Orders, PRIME 

Solicitation Orders, and GTC Orders will not 

participate in the RPM. The System will include 

PRIME Orders, PRIME Solicitation Orders, and GTC 

Orders in the counting program for purposes 

determining when the RPM is triggered. PRIME 

Orders, PRIME Solicitation Orders and Customerto-Customer Orders will each be counted as two 

orders for the purpose of calculating the Allowable 

Order Rate. Once engaged, however, the RPM will 

not cancel any existing PRIME Orders, PRIME 

Solicitation Orders, AOC Orders, OPG Orders, or 

GTC Orders that are marked as Day orders. 

8See Notice, supra note 4, at 4606 n.10. 9 In the Notice, the Exchange provided examples 

demonstrating how the System will determine 

when the Allowable Order Rate or Allowable 

Contract Execution Rate is exceeded for a group. 

See Notice, supra note 4, at 4608. 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

establish a voluntary Risk Protection 

Monitor functionality for orders (the 

‘‘RPM’’) and codify existing 

functionality regarding the Exchange’s 

Aggregate Risk Manager for quotes (the 

‘‘ARM’’). On January 20, 2105, the 

Exchange filed Amendment No.1 to the 

proposal.3 The proposed rule change, as 

modified by Amendment No. 1, was 

published for comment in the Federal 

Register on January 28, 2015.4 The 

Commission did not receive any 

comments on the proposed rule change. 

This order approves the proposed rule 

change, as modified by Amendment No. 

1. 

II. Description of the Proposal 

The Exchange proposes new MIAX 

Rule 519A to establish a voluntary RPM 

that will be available to all MIAX 

members. The Exchange also proposes 

clarifying amendments to current MIAX 

Rule 612, which describes the 

Exchange’s ARM functionality that is 

applicable to quoting activity by MIAX 

Market Makers. 

A. Risk Protection Monitor 

According to the Exchange, the RPM 

is intended to provide new risk 

protection functionality for orders 

entered by members. Under new MIAX 

Rule 519A, MIAX’s automated trading 

system (the ‘‘System’’) will maintain a 

counting program (the ‘‘counting 

program’’) for each participating 

member. Member participation in the 

counting program will be voluntary. The 

counting program will count (i) the 

number of orders entered by the 

member on the Exchange within a 

specified time period that has been 

established by the member (the 

‘‘specified time period’’), and (ii) the 

number of contracts traded via an order 

entered by the member on the Exchange 

within the specified time period.5 The 

Exchange will establish a maximum 

duration for any specified time period 

and announce that maximum duration 

via a Regulatory Circular. To use the 

RPM functionality, members must 

establish an Allowable Order Rate and/ 

or an Allowable Contract Execution 

Rate. The Allowable Order Rate is the 

maximum number of permissible orders 

(as specified by the member) entered 

during the specified time period 

designated by the member. The 

Allowable Contract Execution Rate is 

the maximum number of permissible 

contracts (as specified by the member) 

executed during the specified time 

period designated by the member. 

If the RPM functionality is elected by 

a member, the System will trigger the 

RPM whenever the counting program 

determines that the member has entered 

a number of orders that exceeds the 

member’s specified Allowable Order 

Rate during the specified time period, or 

executed a number of contracts that 

exceeds the member’s specified 

Allowable Contract Execution Rate 

during the specified time period.6

Under new MIAX Rule 519A, a 

member may establish whether the 

RPM, once triggered, will: (i) Prevent 

the System from receiving any new 

orders in all series in all classes from 

the member; (ii) prevent the System 

from receiving any new orders in all 

series in all classes from the member 

and cancel all existing Day orders in all 

series in all classes from the member; or 

(iii) send a notification that the RPM has 

been triggered without any further 

preventative actions or cancellations by 

the System. Once engaged, the RPM will 

automatically take whatever action has 

been specified in advance by the 

member. However, PRIME Orders, 

PRIME Solicitation Orders, Auction or 

Cancel Orders (‘‘AOC Order’’), Opening 

Orders (‘‘OPG Order’’), or Good ‘til 

Cancel Orders (‘‘GTC Order’’) will not 

participate in the RPM. 7 When engaged, 

the RPM will allow the member to 

interact with existing orders that were 

entered prior to the member exceeding 

the Allowable Order Rate or the 

Allowable Contract Execution Rate, 

including sending cancel order 

messages and receiving trade executions 

from those orders. The RPM will remain 

engaged until the member 

communicates with the Exchange’s help 

desk (the ‘‘Help Desk’’) to re-enable the 

System to accept new orders from the 

member. The Exchange noted that this 

communication from the member to the 

Help Desk may be sent either via email 

or phone.8

In addition, the Exchange also 

proposes to allow members to group 

with other members so that the RPM 

would apply collectively to the group. 

The members in such a group must 

designate a group owner and may form 

a group together if: (i) There is at least 

75% common ownership between the 

group’s members, as reflected on each 

firm’s Form BD, Schedule A; or (ii) there 

is written authorization signed by all 

members in the group, and the group 

owner maintains exclusive control of all 

orders sent to the Exchange from each 

MPID within the group. A clearing firm 

also may elect to group together with 

several members so that the RPM 

applies collectively to that group of 

members, provided that: (i) The clearing 

firm must be designated as the group 

owner; (ii) the clearing firm must serve 

as the clearing firm for all the MPIDs of 

the group; and (iii) there must be 

written authorization signed by the 

clearing firm and each member of the 

group. 

In general, the RPM for groups will 

operate in the same manner as it does 

for individual members, except that that 

the counting program and RPM 

protections will apply to the group as a 

whole. Thus, the counting program will 

count the number of orders entered and 

the number of contracts traded resulting 

from orders entered by all MPIDs in the 

group collectively, and the System will 

trigger the RPM when the group 

collectively exceeds either the 

Allowable Order Rate or Allowable 

Contract Execution Rate for the group.9

Once engaged, pursuant to the group 

owner’s instructions, the RPM will 

automatically either: (i) Prevent the 

System from receiving any new orders 

in all series in all classes from each 

MPID in the group; (ii) prevent the 

System from receiving any new orders 

in all series in all classes from each 

MPID in the group and cancel all 

existing Day orders in all series in all 

classes from the group, or (iii) send a 

notification without any further 


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Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Notices 14423 

10See Notice, supra note 4, at 4609. 

11The Allowable Engagement Percentage cannot 

be less than 100%. The System calculates the 

Allowable Engagement Percentage by first 

determining the percentage that the number of 

contracts executed in an individual option in a 

class represents relative to the Market Maker’s 

disseminated Standard quote and/or Day eQuote in 

that individual option (‘‘option percentage’’). See 

MIAX Rule 612(b)(2)(i). When the System calculates 

the option percentage, the number of contracts 

executed in that option class will be automatically 

offset by the number of contracts that are executed 

on the opposite side of the market in the same 

option class during the specified time period. See 

MIAX Rule 612(b)(3). The counting program will 

then combine the individual option percentages to 

determine the option class percentage (‘‘class 

percentage’’). See MIAX Rule 612(b)(2)(ii). When 

the class percentage equals or exceeds the Market 

Maker’s Allowable Engagement Percentage, the 

ARM will be triggered. See id. 

12An eQuote ‘‘is a quote with a specific time in 

force that does not automatically cancel and replace 

a previous Standard quote or eQuote,’’ and ‘‘can be 

cancelled by the Market Maker at any time, or can 

be replaced by another eQuote that contains 

specific instructions to cancel an existing eQuote.’’ 

See MIAX Rule 517(a)(2). 

13See Notice, supra note 4, at 4609. 

14 15 U.S.C. 78f. In approving this proposed rule 

change, the Commission notes that it has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

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

16See, e.g., BATS Exchange (‘‘BATS’’) Rule 21.16 

(Risk Monitor Mechanism available to all BATS 

Users); NASDAQ Options Market (‘‘NOM’’) Rule 

Chapter VI, Section 19 (Risk Monitor Mechanism 

available to all NOM Participants); BOX Options 

Exchange Rule 7280 (Bulk Cancellation of Trading 

Interest available to Options Participants); and 

Chicago Board Options Exchange (‘‘CBOE’’) Rule 

8.18 (Quote Risk Monitor Mechanism available to 

certain CBOE Market-Makers and CBOE Trading 

Permit Holders associated with certain CBOE 

Market-Makers). 

17See Securities Exchange Act Release Nos. 

37619A (Sept. 6, 1996), 61 FR 48290 (Sept. 12, 

1996) (‘‘Order Handling Rules Release’’); 51808 

Continued 

preventative action or cancellations by 

the System. Only the designated group 

owner may re-enable the acceptance of 

new orders for all the members of the 

group, via a request to the Help Desk. 

In instances when a clearing firm has 

grouped several members for the 

purpose of the RPM, the clearing firm 

may only elect to receive warning 

notifications indicating that a specific 

percentage of an Allowable Order Rate 

or an Allowable Contract Execution Rate 

has been met, unless one member of the 

group maintains exclusive control of all 

orders routed through all MPIDs within 

the group. 

In addition, members may elect to 

receive warning notifications from 

MIAX indicating that a specific 

percentage of an Allowable Order Rate 

or an Allowable Contract Execution Rate 

has been met. The Exchange also 

proposes that, at the request of a 

member, or if necessary to maintain a 

fair and orderly market, the Help Desk 

may pause and restart the specified time 

period used by the counting program or 

clear and reset any calculated Allowable 

Order Rate or Allowable Contract 

Execution Rate. 

B. Aggregate Risk Manager 

The Exchange also proposes to codify 

what it represents is existing 

functionality regarding the ARM under 

MIAX Rule 612.10 Under MIAX Rule 

612, the System maintains a counting 

program for each Market Maker who is 

required to submit continuous twosided quotations pursuant to MIAX Rule 

604 in each of its assigned option 

classes. The ARM counting program 

counts the number of contracts traded 

by a Market Maker’s quotes in an 

assigned option class within a specified 

time period that has been established by 

the Market Maker; MIAX Rule 612 states 

that the specified time period for the 

ARM cannot exceed 15 seconds. Under 

the ARM, a Market Maker also 

establishes for each option class an 

Allowable Engagement Percentage. The 

System engages the ARM in a particular 

option class when the counting program 

has determined that a Market Maker has 

traded during the specified time period 

a number of contracts equal to or above 

its Allowable Engagement Percentage.11

Once engaged, the ARM automatically 

removes the Market Maker’s quotations 

on MIAX in all series of that particular 

option class until the Market Maker 

submits a new revised quotation. 

The Exchange proposes to amend 

MIAX Rule 612 in two regards. First, the 

Exchange proposes to codify in its rules 

an existing requirement for a Market 

Maker to send a message to MIAX 

specifically to disengage the ARM and 

allow quoting before the Market Maker 

can begin to quote again in that class. As 

noted above, MIAX Rule 612 currently 

provides that once engaged, the ARM 

will automatically remove the Market 

Maker’s quotations from MIAX in all 

series of that particular option class 

until the Market Maker submits a new 

revised quotation. The Exchange 

proposes to add rule text to MIAX Rule 

612(b)(1) requiring a Market Maker also 

to send a notification to the System of 

its intent to reengage quoting in order to 

disengage the ARM. Second, the 

Exchange proposes to clarify, in new 

Interpretation and Policy .01 to Rule 

612, that eQuotes 12 do not participate in 

the ARM. The Exchange states that the 

System does not include contracts 

traded through the use of an eQuote in 

the counting program for purposes of 

Rule 612, and that eQuotes will remain 

in the System available for trading when 

the Aggregate Risk Manager is 

engaged.13

III. Discussion and Commission 

Findings 

After careful review, the Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder that are applicable to a 

national securities exchange.14 In 

particular, the Commission finds that 

the proposed rule change is consistent 

with section 6(b)(5) of the Act,15 which 

requires, among other things, that the 

rules of a national securities exchange 

be 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 

regulating, clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, 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. The Commission 

believes that the RPM may help 

members, and member groups, to 

mitigate the potential risks associated 

with the execution of an unacceptable 

level of orders that result from, e.g., 

technology issues with electronic 

trading systems. The Commission also 

notes that other exchanges have 

established risk protection mechanisms 

for members and/or market makers that 

are similar in many respects to MIAX’s 

proposal.16 While the concept of 

member groups may be unique to 

MIAX’s proposal, the Commission 

believes that MIAX has designed that 

portion of the proposed rule to be 

consistent with the Act, including 

section 6(b)(5), as it may foster 

cooperation and coordination with 

clearing transactions and protect 

investors and the public interest by 

providing a mechanism to reduce the 

risk of abnormal trading activity across 

multiple participants under common 

control or where the group otherwise 

provides written opt-in consent. 

The Commission notes that the RPM 

is a voluntary mechanism. The 

Commission reminds members electing 

to use the RPM to be mindful of their 

obligations to, among other things, seek 

best execution of orders they handle on 

an agency basis. A broker-dealer has a 

legal duty to seek to obtain best 

execution of customer orders, and the 

decision to utilize the RPM, including 

the parameters set by the member for 

the RPM, must be consistent with this 

duty.17 For instance, under the 


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14424 Federal Register / Vol. 80, No. 53 / Thursday, March 19, 2015 / Notices 

(June 9, 2005), 70 FR 37496, 37537–8 (June 29, 

2005). 

18The Commission reminds broker-dealers that 

they must examine their procedures for seeking to 

obtain best execution in light of market and 

technology changes and modify those practices if 

necessary to enable their customers to obtain the 

best reasonably available prices. See Order 

Handling Rules Release, supra note 17, at 48323. 

19For example, a marketable agency order that 

would have otherwise executed on MIAX might be 

prevented from reaching MIAX on account of other 

interest from the member that causes it to exceed 

its Allowable Order Rate and, thus, triggers the 

RPM, resulting in the System blocking new orders 

from the member. 

20See supra note 7. 

21For example, the Exchange argues that PRIME 

Orders submitted pursuant to MIAX Rule 515A 

have been guaranteed an execution at the time of 

acceptance into the System and, therefore, should 

not be cancelled when the RPM is engaged, because 

the execution has effectively already occurred. See 

Notice, supra note 4, at 4609. 

22 15 U.S.C. 78s(b)(2). 

23 17 CFR 200.30–3(a)(12). 

proposal, members have unfettered 

discretion to set the Allowable Order 

Rate and Allowable Contract Execution 

Rate for the RPM. While MIAX 

neglected to affirmatively establish 

minimum and maximum permissible 

settings for the RPM in its rule, the 

Commission expects MIAX periodically 

to assess whether the RPM functionality 

is operating in a manner that is 

consistent with the promotion of fair 

and orderly markets. In addition, the 

Commission expects that members will 

consider their best execution obligations 

when establishing the minimum and 

maximum parameters for the RPM.18

For example, an abnormally low 

Allowable Order Rate set over an 

abnormally long specified time period 

should be carefully scrutinized, 

particularly if a member’s order flow to 

MIAX contains agency orders. To the 

extent that the RPM is set to overlysensitive parameters, a member should 

consider the effect of its chosen settings 

on its ability to receive a timely 

execution on marketable agency orders 

that it sends to MIAX in various market 

conditions.19 The Commission cautions 

that brokers considering their best 

execution obligations should be aware 

that the agency orders they represent 

may be rejected on account of the RPM. 

In addition, under the proposal, once 

the RPM is engaged, PRIME Orders, 

PRIME Solicitation Orders, GTC Orders, 

AOC Orders, and OPG Orders will not 

participate in the RPM.20 The 

Commission notes that these are unique 

order types.21 The Commission believes 

that these exceptions appear to be 

reasonably designed to not interfere 

with the operation of the PRIME and 

PRIME Solicitation auctions and also to 

restrict application of the RPM to 

specific types of orders, whose terms 

limit their application to specialized 

purposes for which members may not 

want or need order protection to apply. 

The proposed rule change also 

codifies existing functionality in the 

ARM with respect to the procedures for 

resuming quoting and the nonparticipation of eQuotes. The 

Commission notes that the clarification 

of ARM procedures in Rule 612 could 

eliminate potential confusion for 

members regarding the need to 

affirmatively notify MIAX that the 

member wishes to re-start quoting 

following an ARM event as well as 

internal inconsistency in the rule about 

the inapplicability of ARM to eQuotes. 

IV. Conclusion 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act,22 that the 

proposed rule change (SR–MIAX–2015– 

03), as modified by Amendment No. 1, 

be, and hereby is, approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06262 Filed 3–18–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE., Washington, DC 

20549–2736. 

Extension: Rule 11a1–1(T). 

SEC File No. 270–428, OMB Control No. 

3235–0478. 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Rule 11a1–1(T) (17 CFR 240.11a1–1(T)), 

under the Securities Exchange Act of 

1934 (15 U.S.C. 78a et seq.) (‘‘Exchange 

Act’’). 

On January 27, 1976, the Commission 

adopted Rule 11a1–1(T), to exempt 

certain transactions of exchange 

members for their own accounts that 

would otherwise be prohibited under 

Section 11(a) of the Exchange Act. The 

rule provides that a member’s 

proprietary order may be executed on 

the exchange of which the trader is a 

member, if, among other things: (1) The 

member discloses that a bid or offer for 

its account is for its account to any 

member with whom such bid or offer is 

placed or to whom it is communicated; 

(2) any such member through whom 

that bid or offer is communicated 

discloses to others participating in 

effecting the order that it is for the 

account of a member; and (3) 

immediately before executing the order, 

a member (other than a specialist in 

such security) presenting any order for 

the account of a member on the 

exchange clearly announces or 

otherwise indicates to the specialist and 

to other members then present that he 

is presenting an order for the account of 

a member. 

Without these requirements, it would 

not be possible for the Commission to 

monitor its mandate under the Exchange 

Act to promote fair and orderly markets 

and ensure that exchange members 

have, as the principal purpose of their 

exchange memberships, the conduct of 

a public securities business. 

There are approximately 663 

respondents that require an aggregate 

total of 19 hours to comply with this 

rule. Each of these approximately 663 

respondents makes an estimated 20 

annual responses, for an aggregate of 

13,260 responses per year. Each 

response takes approximately 5 seconds 

to complete. Thus, the total compliance 

burden per year is 19 hours (13,260 × 5 

seconds/60 seconds per minute/60 

minutes per hour = 19 hours). The 

approximate cost per hour is $323, 

resulting in a total cost of compliance 

for the annual burden of $6,137 (19 

hours @$323). 

Compliance with Rule 11a–1(T) is 

necessary for exchange members to 

make transactions for their own 

accounts under a specific exemption 

from the general prohibition of such 

transactions under Section 11(a) of the 

Exchange Act. Compliance with Rule 

11a–1(T) does not involve the collection 

of confidential information. Rule 11a– 

1(T) does not have a record retention 

requirement per se. However, responses 

made pursuant to Rule 11a–1(T) may be 

subject to the recordkeeping 

requirements of Rules 17a–3 and 17a–4. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following Web site: 

www.reginfo.gov. Comments should be 

directed to (i) Desk Officer for the 


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