16044 Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Notices 

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

2 17 CFR 240.19b–4. 

3 ‘‘MIAX Market Maker’’ for purposes of the 

proposed sliding scale means any MIAX Market 

Maker including RMM, LMM, PLMM, DLMM, and 

DPLMM. 

4See Securities Exchange Act Release Nos. 55193 

(January 30, 2007), 72 FR 5476 (February 6, 2007) 

(SR–CBOE–2006–111); 57191 (January 24, 2008), 73 

FR 5611 (January 30, 2008); 58321 (August 6, 2008), 

73 FR 46955 (SR–CBOE–2008–78). See also CBOE 

Fees Schedule, p. 3. The Exchange notes that CBOE 

does not charge market makers a differentiated 

transaction fee for non-Penny Pilot option classes. 

reports since the period ending 

September 30, 2008, or any reports since 

June 2011. 

The Commission is of the opinion that 

the public interest and the protection of 

investors require a suspension of trading 

in the securities of Winsonic. 

Therefore, it is ordered, pursuant to 

Section 12(k) of the Securities Exchange 

Act of 1934, that trading in the 

securities of Winsonic is suspended for 

the period from 9:30 a.m. EDT on March 

24, 2015, through 11:59 p.m. EDT on 

April 7, 2015. 

By the Commission. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–07040 Filed 3–24–15; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold an Open Meeting 

on March 30, 2015, at 10:30 a.m., in 

Room 10800 at the Commission’s 

headquarters building, to hear oral 

argument in cross-appeals by Francis V. 

Lorenzo and the Division of 

Enforcement from an initial decision of 

an administrative law judge. 

On December 31, 2013, the law judge 

found that Lorenzo violated the 

antifraud provisions of Section 17(a) of 

the Securities Act of 1933, Section 10(b) 

of the Securities Exchange Act of 1934, 

and Exchange Act Rule 10b–5 when he 

sent two potential investors emails 

containing false and misleading 

information about his firm’s client. The 

law judge ordered Lorenzo to cease and 

desist from violations of the antifraud 

provisions, barred him from the 

securities industry, and ordered him to 

pay a civil money penalty of $15,000. 

The issues likely to be considered at 

oral argument include whether Lorenzo 

violated the antifraud provisions as 

alleged and, if so, the extent to which 

he should be sanctioned for those 

violations. 

The duty officer determined that no 

earlier notice thereof was possible. For 

further information, please contact the 

Office of the Secretary at (202) 551– 

5400. 

Dated: March 24, 2015. 

Brent J. Fields. 

Secretary. 

[FR Doc. 2015–07048 Filed 3–24–15; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74555; File No. SR–MIAX– 

2015–20] 

Self-Regulatory Organizations; Miami 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Its Fee Schedule 

March 20, 2015. 

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 March 11, 

2015, Miami International Securities 

Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the 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 text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.miaxoptions.com/filter/

wotitle/rule_filing, 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 its 

current MIAX Market Maker 3 sliding 

scale for transaction fees to: (i) Adopt 

transaction fees for non-Penny Pilot 

options classes; and (ii) provide for 

additional incentives for achieving 

certain Priority Customer Rebate 

Program volume tiers. 

The sliding scale for MIAX Market 

Maker transaction fees is based on the 

substantially similar fees of the Chicago 

Board Options Exchange, Incorporated 

(‘‘CBOE’’).4 Currently, the program 

reduces a MIAX Market Maker’s per 

contract transaction fee based on 

percentages of total national Market 

Maker volume of any options classes 

that trade on the exchange during the 

calendar month, based on the following 

scale: 

Tier 

Percentage of 

national Market 

Maker volume 

Transaction 

fee per 

contract 

1 ........ 0.00%–0.05% ............ $0.25 

2 ........ Above 0.05%–0.50% 0.17 

3 ........ Above 0.50%–0.80% 0.12 

4 ........ Above 0.80%–1.50% 0.07 

5 ........ Above 1.50% ............. 0.05 

The Exchange proposes to amend its 

current MIAX Market Maker sliding 

scale for transactions to adopt 

transaction fees for non-Penny Pilot 

options classes. Specifically, the 

Exchange proposes to reduce a MIAX 

Market Maker’s per contract transaction 

fee based on percentages of total 

national Market Maker volume of any 

options classes that trade on the 

exchange during the calendar month, 

based on the following scale: 

Tier 

Percentage of 

national Market 

Maker volume 

Non-Penny 

Pilot classes 

transaction 

fee per 

contract 

1 ........ 0.00%–0.05% ............ $0.29 

2 ........ Above 0.05%–0.50% 0.21 

3 ........ Above 0.50%–0.80% 0.16 

4 ........ Above 0.80%–1.50% 0.11 

5 ........ Above 1.50% ............. 0.09 

The proposed sliding scale would 

apply to all MIAX Market Makers for 

transactions in all non-Penny Pilot 

options classes except mini-options. A 

MIAX Market Maker’s initial $0.29 per 

contract rate will be reduced if the 

MIAX Market Maker reaches the volume 

thresholds set forth in the sliding scale 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Notices 16045 

5See MIAX Options Fee Schedule, Section 1(a)(i). 

Specifically, MIAX Market Makers will be assessed 

$0.25 per contract for tier 1, $0.17 per contract for 

tier 2, $0.12 per contract for tier 3, $0.07 per 

contract for tier 4, and $0.05 per contract for tier 

5 for transactions in standard options in Penny Pilot 

options classes as currently provided in the Market 

Maker sliding scale. 

6See Securities Exchange Act Release Nos. 55193 

(January 30, 2007), 72 FR 5476 (February 6, 2007) 

(SR–CBOE–2006–111); 58321 (August 6, 2008), 73 

FR 46955 (SR–CBOE–2008–78); 71295 (January 14, 

2014), 79 FR 3443 (January 21, 2014) (SR–CBOE– 

2013–129). The Exchange notes that CBOE does not 

charge market makers a differentiated transaction 

fee for non-Penny Pilot option classes. 

7See, e.g., International Securities Exchange, 

LLC, Schedule of Fees, Section IV, C; NASDAQ 

Options Market, Chapter XV, Section 2. 

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

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

10See NASDAQ OMX PHLX LLC Pricing 

Schedule, Section II (assessing differentiated 

transaction fees for Penny Pilot and non-Penny 

Pilot options classes); NYSE Amex Options Fee 

Schedule, p. 6 (assessing differentiated transaction 

fees for Penny Pilot and non-Penny Pilot options 

classes); Chicago Board Options Exchange, 

Incorporated, Fee Schedule, p. 1 (assessing 

differentiated transaction fees for Penny Pilot and 

non-Penny Pilot options classes). See also 

Securities Exchange Act Release No. 68556 (January 

2, 2013), 78 FR 1293 (January 8, 2013) (SR–BX– 

2012–074). Please note that neither of these 

exchanges currently has differentiated pricing for 

non-Penny Pilot options classes in a tiered volume 

scale for market makers. 

in a month. As a MIAX Market Maker’s 

monthly volume increases, its per 

contract transaction fee would decrease. 

The Market Maker sliding scale will 

continue to apply to MIAX Market 

Maker (RMM, LMM, DLMM, PLMM, 

DPLMM) transaction fees in all nonPenny Pilot options classes except minioptions. MIAX Market Makers will 

continue to be assessed a $0.02 per 

executed contract fee for transactions in 

mini-options. The Exchange notes that 

MIAX Market Makers will continue to 

be assessed transactions fees for Penny 

Pilot options classes pursuant to the 

current Market Maker sliding scale.5

The Exchange believes the proposed 

sliding scale for non-Penny Pilot 

options classes is objective in that the 

fee reductions are based solely on 

reaching stated volume thresholds. The 

specific volume thresholds of the tiers 

were set based upon business 

determinations and an analysis of 

current volume levels. The specific 

volume thresholds and rates were set in 

order to encourage MIAX Market 

Makers to reach for higher tiers. The 

Exchange believes that the proposed 

changes to the tiered fee schedule may 

incent firms to display their orders on 

the Exchange and increase the volume 

of contracts traded here in order to 

qualify for lower fee rates in the higher 

tiers. 

As mentioned above, the Exchange 

notes that the proposed sliding fee scale 

for MIAX Market Makers structured on 

contract volume thresholds is based on 

the substantially similar fees of the 

CBOE.6 The Exchange also notes that a 

number of other exchanges have tiered 

fee schedules which offer different 

transaction fee rates depending on the 

monthly ADV of liquidity providing 

executions on their facilities.7

The Exchange proposes to offer MIAX 

Market Makers the opportunity to 

reduce transaction fees by $0.02 per 

contract in standard options in nonPenny Pilot options classes in the same 

manner as Penny Pilot options classes. 

As proposed, any Member or its 

affiliates of at least 75% common 

ownership between the firms as 

reflected on each firm’s Form BD, 

Schedule A, that qualifies for Priority 

Customer Rebate Program volume tiers 

3, 4, or 5 and is a MIAX Market Maker 

will be assessed $0.27 per contract for 

tier 1, $0.19 per contract for tier 2, $0.14 

per contract for tier 3, $0.09 per contract 

for tier 4, and $0.07 per contract for tier 

5 for transactions in standard options in 

non-Penny Pilot options classes in lieu 

of the applicable transaction fees in the 

Market Maker sliding scale. 

The Exchange believes that these 

incentives will encourage MIAX Market 

Makers to transact a greater number of 

orders on the Exchange. 

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 fees and other charges among 

Exchange members. 

The Exchange believes that its 

proposal to assess transaction fees in 

non-Penny Pilot options classes, which 

differs from Penny Pilot options classes, 

is consistent with other options markets 

that also assess different transaction fees 

for non-Penny Pilot options classes as 

compared to Penny Pilot options 

classes. The Exchange believes that 

establishing different pricing for nonPenny Pilot options and Penny Pilot 

options is reasonable, equitable, and not 

unfairly discriminatory because Penny 

Pilot options are more liquid options as 

compared to non-Penny Pilot options. 

Additionally, other competing options 

exchanges differentiate pricing in a 

similar manner today in other types of 

transaction fees.10

The proposed volume based discount 

fee structure is not discriminatory in 

that all MIAX Market Makers are 

eligible to submit (or not submit) 

liquidity, and may do so at their 

discretion in the daily volumes they 

choose during the course of the billing 

period. All similarly situated MIAX 

Market Makers are subject to the same 

fee structure, and access to the 

Exchange is offered on terms that are 

not unfairly discriminatory. Volume 

based discounts have been widely 

adopted by options and equities 

markets, and are equitable because they 

are open to all MIAX Market Makers on 

an equal basis and provide discounts 

that are reasonably related to the value 

of an exchange’s market quality 

associated with higher volumes. The 

proposed fee levels and volume 

thresholds are reasonably designed to be 

comparable to those of other options 

exchanges employing similar fee 

programs, and also to attract additional 

liquidity and order flow to the 

Exchange. 

The Exchange’s proposal to provide 

MIAX Market Makers the opportunity to 

reduce transaction fees by $0.02 per 

contract in standard options in nonPenny Pilot option classes, provided 

certain criteria are met, is reasonable 

because the Exchange desires to offer all 

such market participants an opportunity 

to lower their transaction fees. The 

Exchange’s proposal to offer MIAX 

Market Makers the opportunity to 

reduce transaction fees by $0.02 per 

contract in standard options in nonPenny Pilot option classes, provided 

certain criteria are met, is equitable and 

not unfairly discriminatory because the 

Exchange offers all market participants, 

excluding Priority Customers, a means 

to reduce transaction fees by qualifying 

for volume tiers in the Priority Customer 

Rebate Program. The Exchange believes 

that offering all such market 

participants the opportunity to lower 

transaction fees by incentivizing them to 

transact Priority Customer order flow in 

turn benefits all market participants. 

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 

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. The 

Exchange believes that the proposed 

rule change reflects this competitive 

environment because it modifies the 

Exchange’s fees in a manner that 

mstockstill on DSK4VPTVN1PROD with NOTICES

16046 Federal Register / Vol. 80, No. 58 / Thursday, March 26, 2015 / Notices 

11 15 U.S.C. 78s(b)(3)(A)(ii). 

12 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. 74200 

(February 4, 2015), 80 FR 7515 (‘‘Notice’’). 

4 Id. at 7516. 

5 Id. 

6 Id. 

7 Id. 

8See Notice, supra note 3, at 7516. In the notice, 

the Exchange provided examples of how this 

occurs. Id. at 7516–7. 

9 In approving this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

encourages market participants to 

provide liquidity and to send order flow 

to the Exchange. 

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.11 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–2015–20 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–2015–20. 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 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 

offices 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–MIAX– 

2015–20, and should be submitted on or 

before April 16, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–06889 Filed 3–25–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74551; File No. SR–CBOE– 

2015–010] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Order Approving a 

Proposed Rule Change To Amend 

Rules 6.41 and 24.8 

March 20, 2015. 

On January 22, 2015, the Chicago 

Board Options Exchange, Incorporated 

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

the Securities and Exchange 

Commission (the ‘‘Commission’’), 

pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

proposed rules to describe the process 

of establishing final leg execution prices 

when a broker receives from a customer 

a complex order for open-outcry 

handling at a total cash price for the 

order. The proposal was published for 

comment in the Federal Register on 

February 10, 2015.3 The Commission 

received no comments regarding the 

proposal. This order approves the 

proposed rule change. 

Currently Exchange Rules 6.41 (with 

respect to equities) and 24.8 (with 

respect to indexes), provide that bids 

and offers must be expressed in terms of 

dollars per unit of the underlying 

security or index, as applicable. 

However, the Exchange explains that 

sometimes a customer will request an 

execution in a complex order at a total 

cash price for the order (rather than at 

a price per contract for each leg) and the 

total number of contracts of each leg.4 In 

this situation, a broker may represent 

the order to the trading crowd at the 

total order price, and Trading Permit 

Holders may respond to trade with the 

order at that total order price.5 The 

Exchange notes that in some instances, 

due to the complexity of the order and 

the price and number of contracts 

involved, the complex order may not 

break down into a per-unit price for 

each leg based on the existing market for 

the leg that corresponds to the total 

order price.6

Accordingly, the Exchange proposes 

to adopt Interpretation and Policy .01 to 

each of Exchange Rules 6.41 and 24.8. 

The Interpretations will impose 

requirements requiring how brokers 

must determine final leg execution 

prices when a broker receives from a 

customer a complex order for openoutcry handling at a total cash price, 

and the complex order does not break 

down into a per-unit price for each leg 

based on the existing market for the leg 

that corresponds to the total price.7

Specifically, the Interpretations will 

provide that when the complex order 

does not break down into a per-unit 

price for each leg, the broker must 

resolve any difference in a manner that 

provides price improvement to the 

customer (i.e. the broker must determine 

leg prices that correspond to a total 

purchase (sale) price that is less (greater) 

than the total order price).8

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 applicable to a national 

securities exchange.9 In particular, the 

Commission finds that the proposed 

rule change is consistent with Section 

mstockstill on DSK4VPTVN1PROD with NOTICES