22598 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices 

as designated by the Commission. The Exchange 

satisfied this requirement. 

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

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘System’’ means the automated 

trading system used by the Exchange for the trading 

of securities. See Exchange Rule 100. 

4The term ‘‘Clearing Member’’ means a Member 

that has been admitted to membership in the 

Options Clearing Corporation (‘‘Clearing 

Corporation’’) pursuant to the provisions of the 

rules of the Clearing Corporation. See Exchange 

Rule 100. 

5The term ‘‘Exchange Transaction’’ means a 

transaction involving a security that is effected on 

the Exchange. See Exchange Rule 100. 

6The 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. 

7A Sponsored User may obtain and maintain 

authorized access to the System, only if such access 

is authorized in advance by one or more Sponsoring 

Members. See Exchange Rule 210(b). 

8Sponsored Users must enter into a sponsorship 

arrangement with a ‘‘Sponsoring Member,’’ which 

is defined as a Member that agrees to sponsor the 

Sponsored User’s access to the System. See 

Exchange Rule 210(b)(1). The Sponsoring Member 

is responsible for any and all actions taken by such 

Sponsored User and any person acting on behalf of 

or in the name of such Sponsored User. See 

Exchange Rule 210(b)(1)(ii)(B)(2). 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily 

temporarily suspend the proposed rule 

change if it appears to the Commission 

that this action is: (i) Necessary or 

appropriate in the public interest; (ii) for 

the protection of investors; or (iii) 

otherwise in furtherance of the purposes 

of the Act. If the Commission takes this 

action, it shall institute proceedings 

under Section 19(b)(2)(B) of the Act 22 to 

determine whether the proposed rule 

change 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 proposal is 

consistent with the Act. Comments may 

be submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File No. SR– 

BYX–2015–23 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File No. 

SR–BYX–2015–23. 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 the 

filing will also 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 No. SR–BYX–2015– 

23 and should be submitted on or before 

May 13, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–09269 Filed 4–21–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74744; File No. SR–MIAX– 

2015–29] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Exchange Rule 500 

April 16, 2015. 

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 April 7, 2015, 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend Exchange Rule 500. 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 

Exchange Rule 500, Access to and 

Conduct on the Exchange, to authorize 

the Exchange to share any Memberdesignated risk settings in the MIAX 

System 3 with the Clearing Member 4

that clears Exchange Transactions 5 on 

behalf of the Member 6 (or on behalf of 

any Sponsored User 7 for which the 

Member is a Sponsoring Member 8). 

Current Rule 500(a) states that ‘‘[U]nless 

otherwise provided in the Rules, no one 

but a Member or a person associated 

with a Member shall effect any 

Exchange Transactions.’’ The Exchange 

proposes to amend current Rule 500(a) 

to state that the Exchange may share any 

Member-designated risk settings in the 

MIAX System with the Clearing Member 


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Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices 22599 

9See Exchange Rule 507. 

10See Exchange Rule 513(b). 

11Exchange Rule 519, Order Size Protections, 

states that the System will prevent certain orders 

from executing or being placed on the Book if the 

size of the order exceeds the order size protection 

designated by the Member. 

12Pursuant to Exchange Rule 519A, Risk 

Protection Monitor (‘‘RPM’’), the MIAX System will 

count the number of orders entered and the number 

of contracts traded via an order entered by a 

Member on the Exchange within a specified time 

period that has been established by the Member 

and, when triggered, the RPM will (i) prevent the 

System from receiving any new orders in all series 

in all classes from the Member; or (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 or cancellation action by the System. 

13Pursuant to Exchange Rule 612, Aggregate Risk 

Manager (‘‘ARM’’), the MIAX System will count the 

number of contracts traded by a Market Maker in 

an assigned option class within a specified time 

period that has been established by the Market 

Maker. 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 

an ‘‘Allowable Engagement Percentage’’ specified 

by the Market Maker, the ARM will automatically 

remove the Market Maker’s quotations from the 

Exchange’s disseminated quotation in all series of 

that particular option class until the Market Maker 

submits a new revised quotation. 

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

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

16See NYSE Arca, Inc. Rule 6.2A(a); NYSE MKT 

LLC Rule 902.1NY.(a); NASDAQ OMX PHLX LLC 

Rule 1016; and BATS Exchange, Inc. Rule 21.17. 

17 Id. 

that clears Exchange Transactions on 

behalf of the Member. 

All Exchange Transactions must be 

submitted for clearance to the Options 

Clearing Corporation (the ‘‘Clearing 

Corporation’’) and are subject to the 

Rules of the Clearing Corporation. For 

each Exchange Transaction in which it 

participates, a Member must 

immediately give up the name of the 

Clearing Member through whom the 

Exchange Transaction will be cleared.9

Every Clearing Member is responsible 

for the clearance of the Exchange 

Transactions of such Clearing Member 

and of each Member who gives up such 

Clearing Member’s name pursuant to a 

letter of authorization, letter of 

guarantee or other authorization given 

by such Clearing Member to such 

Member, which authorization must be 

submitted to the Exchange.10

Thus, while not all Members are 

Clearing Members, all Exchange 

Members require a Clearing Member’s 

consent to clear Exchange Transactions 

on their behalf in order to conduct 

business on the Exchange. The letter of 

authorization or guarantee, or other 

authorization, describes the relationship 

between the Member and Clearing 

Member and provides the Exchange 

with notice of which Clearing Members 

have relationships with which Exchange 

Members. The Clearing Member that 

guarantees the Member’s Exchange 

Transactions has a financial interest in 

understanding the risk tolerance of the 

Member. The instant proposal would 

provide the Exchange with authority to 

provide Clearing Members directly with 

information that may otherwise be 

available to such Clearing Members by 

virtue of their relationship with the 

respective Members. 

Specifically, the proposal would 

permit the Exchange to share any 

Member-designated risk settings in the 

MIAX System with the Clearing Member 

that clears Exchange Transactions on 

behalf of the Member. The risk settings 

currently covered by this proposal relate 

to limitations on executions and are set 

forth in Exchange Rule 519,11 Rule 

519A,12 and Rule 612.13 The Exchange 

may adopt additional rules providing 

for Member-designated risk settings 

other than those provided in Exchange 

Rules 519, 519A, and 612 that could be 

shared with a Member’s Clearing 

Member under the proposal, and the 

Exchange would announce these 

additional risk settings by issuing a 

Regulatory Circular. 

2. Statutory Basis 

MIAX believes that its proposed rule 

change is consistent with Section 6(b) of 

the Act 14 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 15

in particular, in that it is 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 facilitating 

transactions in securities, to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. 

The proposed rule change will allow 

the Exchange to provide a Member’s 

designated risk settings directly to the 

Clearing Member that clears Exchange 

Transactions on behalf of the Member. 

Because a Clearing Member that 

executes a clearing letter of guarantee or 

authorization on behalf of a Member 

guarantees all Exchange Transactions of 

that Member, and therefore bears the 

risk associated with those Exchange 

Transactions, it is appropriate for the 

Clearing Member to have knowledge of 

what risk settings the Member may 

apply within the MIAX System. The 

proposal will permit Clearing Members 

who have a financial interest in the risk 

settings of Members with whom they 

have entered into a clearing letter of 

guarantee or agreement to better monitor 

and manage the potential risks assumed 

by Clearing Members, thereby providing 

Clearing Members with greater control 

and flexibility in managing their own 

risk tolerance and exposure and aiding 

Clearing Members in complying with 

the Act. 

Additionally, to the extent a Clearing 

Member might reasonably require a 

Member to provide access to its risk 

settings as a prerequisite to continuing 

to clear trades on such Member’s behalf, 

the Exchange’s proposal to share those 

risk settings directly with the Clearing 

Member reduces the administrative 

burden on the Member and ensures that 

Clearing Members are receiving 

information that is up to date and 

conforms to the settings active in the 

MIAX System. 

Moreover, the proposed rule change is 

consistent with rules that are currently 

operative on other exchanges.16

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not designed to 

address any competitive issues and does 

not pose an undue burden on nonClearing Members because, unlike 

Clearing Members, non-Clearing 

Members do not guarantee the execution 

of a Member’s Exchange Transactions. 

The proposal is structured to offer the 

same enhancement to all Clearing 

Members, regardless of size, and would 

not impose a competitive burden on any 

participant. Any Member that does not 

wish to share its designated risk settings 

with its Clearing Member could avoid 

sharing such settings by becoming a 

clearing member of OCC. 

The Exchange notes that the rule 

change is being proposed as a response 

to rules that are already operative on 

other exchanges.17

For all the reasons stated, 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. 


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22600 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices 

18The Exchange has satisfied this requirement. 

19 15 U.S.C. 78s(b)(3)(A). 

20 17 CFR 240.19b–4(f)(6). 

21 Id. 

22 17 CFR 240.19b–4(f)(6)(iii). 

23For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

24 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. 74247 

(February 11, 2015), 80 FR 8720 (‘‘Notice’’). See 

also Securities Exchange Act Release No. 74247A 

(February 26, 2015), 80 FR 11695 (March 4, 2015) 

(correcting file number in Notice heading to be 

‘‘SR–BATS–2015–09’’). 

4On June 5, 2014, Chair Mary Jo White asked all 

national securities exchanges to conduct a 

comprehensive review of each order type offered to 

members and how it operates in practice. See Mary 

Jo White, Chair, Commission, Speech at the Sandler 

O’Neill & Partners, L.P. Global Exchange and 

Brokerage Conference, (June 5, 2014) (available at 

http://www.sec.gov/News/Speech/Detail/Speech/

1370542004312#.VD2HW610w6Y). 

5Exchange Rule 1.5(aa) defines ‘‘System’’ as ‘‘the 

electronic communications and trading facility 

designated by the Board through which securities 

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 

Because the foregoing rule 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 if consistent 

with the protection of investors and the 

public interest, provided that the selfregulatory organization has given the 

Commission written notice of its intent 

to file 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,18 the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 19 and 

Rule 19b–4(f)(6) thereunder.20

A proposed rule change filed under 

Rule 19b–4(f)(6) 21 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),22 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has requested 

that the Commission waive the 30-day 

operative delay to allow the Exchange to 

respond to current demand for the 

expeditious sharing of risk settings 

between Clearing Members and 

Members on whose behalf they clear 

Exchange Transactions. The proposal 

does not raise any novel or unique 

issues, and is substantially similar to 

rules that are currently operative on 

other options exchanges. Therefore, the 

Commission believes that waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest and designates the 

proposed rule change as operative upon 

filing.23

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

MIAX–2015–29 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–MIAX–2015–29. 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 the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

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–2015–29 and should 

be submitted on or before May 13, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–09263 Filed 4–21–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74738; File No. SR–BATS– 

2015–09] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Order Granting 

Approval of a Proposed Rule Change 

To Amend Rules 11.9, 11.12, and 11.13 

of BATS Exchange, Inc. 

April 16, 2015. 

I. Introduction 

On January 30, 2015, BATS Exchange, 

Inc. (‘‘BATS’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’ or 

‘‘Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Exchange Rules 11.9, 11.12, and 

11.13. The proposed rule change was 

published for comment in the Federal 

Register on February 18, 2015.3 The 

Commission received no comments on 

the proposal. This order grants approval 

of the proposed rule change. 

II. Description of the Proposed Rule 

Change 

The Exchange conducted a 

comprehensive review of its system 

functionality.4 The proposal adds 

additional clarity and specificity 

regarding the current functionality of 

the Exchange’s System,5 including the 


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