14598 Federal Register / Vol. 87, No. 50 / Tuesday, March 15, 2022 / Notices 

13The proposed amendments only create the 

option for dealers to conduct office inspections 

remotely through December 31, 2022. With that in 

mind, dealers should consider whether, under their 

particular operating conditions, reliance on remote 

inspections would be reasonable under the 

circumstances. 

14 15 U.S.C. 78o–4(b)(2)(C). 

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

16 17 CFR 240.19b–4(f)(6). 

17 17 CFR 200.30–3a(a)(2). 

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

2 17 CFR 240.19b–4. 

their offices while continuing to serve 

the important investor protection 

objectives of the inspection obligations 

under these unique circumstances. 

In a time when faced with unique 

challenges resulting from the sustained 

pandemic, the proposed rule change 

will afford dealers the ability to 

safeguard the health and safety of their 

personnel and to more effectively 

allocate resources to serve and promote 

the protection of investors, municipal 

entities, obligated persons and the 

public interest while much uncertainty 

still remains. In addition, the proposed 

rule change will also alleviate some of 

the operational challenges dealers may 

be experiencing, which will allow them 

to more effectively allocate resources to 

the operations that facilitate 

transactions in municipal securities and 

municipal financial products, to remove 

impediments to and perfect the 

mechanism of a free and open market in 

municipal securities and municipal 

financial products.13

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Section 15B(b)(2)(C) of the Act 

requires that MSRB rules be designed 

not to impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act.14 In fact, the MSRB 

does not believe that the proposed rule 

change will have any burden on 

competition because the proposed rule 

change treats all dealers equally in that 

all dealers have the option to elect to 

conduct remote inspections remotely 

through December 31, 2022. The goal of 

the proposed rule change is to grant 

additional time for dealers to assess 

their resources, establish office 

inspection schedules for the second half 

of 2022 and meet their office inspection 

obligations, under Supplementary 

Material .01 of Rule G–27, while also 

determining how to best implement 

their return to office plans in a safe and 

effective manner during the exigent 

circumstances of the COVID–19 

pandemic. The temporary relief afforded 

does not alter dealers underlying 

obligations under the rule and with 

applicable MSRB rules that directly 

serve investor protection. 

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 on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 15 and Rule 19b– 

4(f)(6) 16 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. 

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– 

MSRB–2022–01 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–MSRB–2022–01. 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 (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 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 

10:00 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 MSRB. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–MSRB–2022–01 and should 

be submitted on or before April 5, 2022. 

For the Commission, by the Office of 

Municipal Securities, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–05372 Filed 3–14–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94384; File No. SR–MIAX– 

2022–11] 

Self-Regulatory Organizations; Miami 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend the MIAX Options 

Fee Schedule To Adopt Fees for a New 

Data Product Called the Liquidity Taker 

Event Report—Complex Orders 

March 9, 2022. 

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 February 

25, 2022, Miami International Securities 

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

filed with the Securities and Exchange 

Commission (‘‘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 


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3See, generally, Exchange Rule 531(b). 

4See Securities Exchange Act Release No. 94135 

(February 2, 2022), 87 FR 7217 (February 8, 2022) 

(SR–MIAX–2022–06). 

5The 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. 

6See Exchange Rule 531(b). 

7See Securities Exchange Act Release Nos. 92081 

(June 1, 2021), 86 FR 30344 (June 7, 2021) (SR– 

MIAX–2021–21) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Amend 

Rule 531, Reports and Market Data Products, To 

Adopt the Liquidity Taker Event Report); 92208 

(June 17, 2021), 86 FR 33442 (June 24, 2021) (SR– 

MIAX–2021–25) (Notice of Filing and Immediate 

Effectiveness of a Proposed Rule Change To Amend 

Its Fee Schedule To Adopt Fees for a New Data 

Product Known as the Liquidity Taker Event 

Report). See Exchange Rule 531(a) for the rule text 

of the Simple Order Report. See also Fee Schedule, 

Section 7), Reports, for the fees for the Simple 

Order Report. 

8The term ‘‘Strategy Book’’ means the Exchange’s 

electronic book of complex orders and complex 

quotes. See Exchange Rule 518(a)(17). 

9Only displayed orders will be included in the 

Complex Order Report. The Exchange notes that it 

does not currently offer any non-displayed orders 

types on its options trading platform. 

10The term ‘‘affiliate’’ of or person ‘‘affiliated 

with’’ another person means a person who, directly, 

or indirectly, controls, is controlled by, or is under 

common control with, such other person. See 

Exchange Rule 100. 

11The Report will simply indicate whether the 

Recipient Member is Affiliate of the Member that 

entered the resting order and not include any other 

information that may indicate the identity of the 

Member that entered the resting order. 

12The term ‘‘Priority Customer’’ means a person 

or entity that (i) is not a broker or dealer in 

securities, and (ii) does not place more than 390 

orders in listed options per day on average during 

a calendar month for its own beneficial account(s). 

The number of orders shall be counted in 

accordance with Interpretation and Policy .01 to 

Exchange Rule 100. See Exchange Rule 100. 

13The term ‘‘Market Maker’’ refers to ‘‘Lead 

Market Makers’’, ‘‘Primary Lead Market Makers’’ 

and ‘‘Registered Market Makers’’ collectively. See 

Exchange Rule 100. 

14This is the same type of information included 

in the Simple Order Report, with the only 

difference being the information is for Complex 

Orders on the Strategy Book. The Exchange notes 

that the displayed price and size are also 

disseminated via the Exchange’s proprietary data 

feeds. The Exchange also notes that the displayed 

price of the resting order may be different than the 

ultimate execution price. This may occur when a 

resting order is displayed and ranked at different 

prices upon entry to avoid a locked or crossed 

market. 

15The term ‘‘MBBO’’ means the Exchange’s best 

bid or offer. See Exchange Rule 100. The Complex 

MBBO for a particular Complex Strategy is 

calculated using the Implied Complex MIAX Best 

Bid or Offer (‘‘icMBBO’’) combined with the best 

price currently available for that particular Complex 

Strategy on the Strategy Book to establish the 

Exchange’s best net bid or offer for that Complex 

Strategy. The icMBBO is calculated using the best 

price from the Simple Order Book for each 

component of a Complex Strategy including 

displayed and non-displayed trading interest. For 

stock-option orders, the icMBBO for a Complex 

Strategy is calculated using the best price (whether 

displayed or non-displayed) on the Simple Order 

Book in the individual option component(s), and 

the NBBO in the stock component. See Exchange 

Rule 518(a)(11). 

16Exchange Rule 531(b)(1)(ii)(A) provides that if 

the resting order executes against multiple contraside responses, only the Complex MBBO at the time 

of the execution against the first response will be 

included. 

17The term ‘‘ABBO’’ or ‘‘Away Best Bid or Offer’’ 

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

other Eligible Exchanges (defined in Exchange Rule 

1400(g)) and calculated by the Exchange based on 

market information received by the Exchange from 

the Options Price Reporting Authority (‘‘OPRA’’). 

See Exchange Rule 100. The Complex ABBO is 

calculated using the ABBO for each component of 

a Complex Strategy to establish the away markets’ 

best net bid or offer for a Complex Strategy. 

18Exchange Rule 531(b)(1)(ii)(B) further provides 

that if the resting order executes against multiple 

contra-side responses, only the Complex ABBO at 

the time of the execution against the first response 

will be included. 

19The time the Exchange received the response 

order would be in nanoseconds and would be the 

time the response was received by the Exchange’s 

network, which is before the time the response 

would be received by the System. 

20The time difference would be provided in 

nanoseconds. 

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 ‘‘Fee Schedule’’) to adopt fees for a 

new data product known as the 

Liquidity Taker Event Report—Complex 

Orders.3

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings, 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 recently established a 

new data product known as the 

Liquidity Taker Event Report—Complex 

Orders (the ‘‘Complex Order Report’’),4

which will be available for purchase by 

Exchange Members 5 on a voluntary 

basis. The Exchange now proposes to 

adopt fees for the Complex Order 

Report, which is described under 

Exchange Rule 531(b).6 The Complex 

Order Report is an optional product 

available to Members. The Exchange 

notes that the proposed fees for the 

Complex Order Report are identical to 

the fees the Exchange recently 

established for subscribers to a similar 

report known as the Liquidity Taker 

Event Report—Simple Orders (the 

‘‘Simple Order Report’’).7 As further 

described below, the Exchange proposes 

to also offer a discounted combined fee 

for Members who purchase annual 

subscriptions to both the Simple Order 

Report and Complex Order Report. 

By way of background, the Complex 

Order Report is a daily report that 

provides a Member (‘‘Recipient 

Member’’) with its liquidity response 

time details for executions of a Complex 

Order resting on the Strategy Book,8

where that Recipient Member attempted 

to execute against such resting Complex 

Order 9 within a certain timeframe. It is 

important to note that the content of the 

Complex Order Report is specific to the 

Recipient Member and the Complex 

Order Report will not include any 

information related to any Member 

other than the Recipient Member. 

The following information is included 

in the Complex Order Report regarding 

the resting order: (A) The time the 

resting order was received by the 

Exchange; (B) symbol; (C) order 

reference number, which is a unique 

reference number assigned to a new 

Complex Order at the time of receipt; 

(D) whether the Recipient Member is an 

Affiliate 10 of the Member that entered 

the resting order; 11 (E) origin type (e.g., 

Priority Customer,12 Market Maker 13); 

(F) side (buy or sell); and (G) displayed 

price and size of the resting order.14

The following information is included 

in the Complex Order Report regarding 

the execution of the resting order: (A) 

The Complex MBBO 15 at the time of 

execution; 16 (B) the Complex ABBO 17

at the time of execution; 18 (C) the time 

first response that executes against the 

resting order was received by the 

Exchange and the size of the execution 

and type of the response; 19 (D) the time 

difference between the time the resting 

order was received by the Exchange and 

the time the first response that executes 

against the resting order was received by 

the Exchange; 20 and (E) whether the 

response was entered by the Recipient 

Member. If the resting order executes 

against multiple contra-side responses, 


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21 For purposes of calculating this duration of 

time, the Exchange will use the time the resting 

order and the Recipient Member’s response(s) is 

received by the Exchange’s network, both of which 

would be before the order and response(s) would 

be received by the System. This time difference 

would be provided in nanoseconds. 

only the Complex MBBO and Complex 

ABBO at the time of the execution 

against the first response will be 

included. 

The following information is included 

in the Complex Order Report regarding 

response(s) sent by the Recipient 

Member: (A) Recipient Member 

identifier; (B) the time difference 

between the time the first response that 

executes against the resting order was 

received by the Exchange and the time 

of each Complex Order sent by the 

Recipient Member, regardless of 

whether it executed or not; 21 (C) size 

and type of each Complex Order 

submitted by Recipient Member; and (D) 

response reference number, which is a 

unique reference number attached to the 

response by the Recipient Member. 

The Complex Order Report includes 

the data set for executions and contraside responses that occurred within 200 

microseconds of the time the resting 

order was received by the Exchange. 

The Complex Order Report contains 

historical data from the prior trading 

day and will be available after the end 

of the trading day, generally on a T+1 

basis. The Complex Order Report does 

not include real-time data. 

The Exchange believes the additional 

data points from the matching engine 

outlined above may help Members gain 

a better understanding about their own 

interactions with the Exchange. The 

Exchange believes the Complex Order 

Report will provide Members with an 

opportunity to learn more about better 

opportunities to access liquidity and 

receive better execution rates. The 

Complex Order Report will increase 

transparency and democratize 

information so that all firms that 

subscribe to the Complex Order Report 

have access to the same information on 

an equal basis, even for firms that do not 

have the appropriate resources to 

generate a similar report regarding 

interactions with the Exchange. 

Members generally would use a 

liquidity accessing Complex Order if 

there is a high probability that it will 

execute against an order resting on the 

Exchange’s Strategy Book. The Complex 

Order Report identifies by how much 

time an order that may have been 

marketable missed an execution. The 

Complex Order Report will provide 

greater visibility into the missed trading 

execution, which will allow Members to 

optimize their models and trading 

patterns to yield better execution 

results. 

The Complex Order Report will be a 

Member-specific report and will help 

Members to better understand by how 

much time a particular order missed 

executing against a specific resting 

order, thus allowing that Member to 

determine whether it wants to invest in 

the necessary resources and technology 

to mitigate missed executions against 

certain resting orders on the Exchange’s 

Strategy Book. 

The Exchange proposes to provide the 

Complex Order Report in response to 

Member demand for data concerning the 

timeliness of their incoming Complex 

Orders and executions against resting 

Complex Orders. Members have 

periodically requested from the 

Exchange’s trading operations personnel 

information concerning the timeliness 

of their incoming orders and efficacy of 

their attempts to execute against resting 

liquidity on the Exchange’s Strategy 

Book. The purpose of the Complex 

Order Report is to provide Members the 

necessary data in a standardized format 

on a T+1 basis to those that subscribe to 

the Complex Order Report on an equal 

basis. 

The product is offered to Members on 

a completely voluntary basis in that the 

Exchange is not required by any rule or 

regulation to make this data available 

and potential subscribers may purchase 

the Complex Order Report only if they 

voluntarily choose to do so. It is a 

business decision of each Member 

whether to subscribe to the Complex 

Order Report or not. 

The Exchange proposes to assess the 

same fees that it currently charges for 

Members that subscribe to the similar 

Simple Order Report. As such, the 

Exchange proposes to amend Section 7), 

Reports, of the Fee Schedule to provide 

that Members may purchase the 

Complex Order Report on a monthly or 

annual (12 month) basis. In particular, 

the Exchange proposes to assess 

Members a fee of $4,000 per month or 

$24,000 per year for a 12 month 

subscription to the Complex Order 

Report. Members may cancel their 

subscription at any time. Just as it does 

for the Simple Order Report, the 

Exchange proposes to specify that for 

mid-month subscriptions to the 

Complex Order Report, new subscribers 

will be charged for the full calendar 

month for which they subscribe and 

will be provided Complex Order Report 

data for each trading day of the calendar 

month prior to the day on which they 

subscribed. 

The Exchange also proposes to 

provide a discounted rate of $40,000 per 

year to Members that purchase 12 

month annual subscriptions to both the 

Simple and Complex Order Reports (as 

compared to the 12 month subscription 

rate of $24,000 for each report on an 

individual subscription basis). The 

Exchange also proposes to pro-rate the 

discounted 12 month subscription fee 

for Members that seek to add either their 

Simple Order Report or the Complex 

Order Report to an existing 

subscription. In particular, the Exchange 

proposes that for those Members with 

an existing 12 month subscription to 

either the Simple Order Report or 

Complex Order Report, but not both, 

may add a subscription to the Simple 

Order Report or Complex Order Report 

during their current 12 month 

subscription. In such case, the fee for 

the added report will be pro-rated based 

on the $40,000 combined rate for the 12 

month subscription discount for the 

remainder of the subscriber’s current 12 

month subscription, and the number of 

months remaining in the existing 

subscription until the Member’s renewal 

date. Members would then receive the 

12 month discount ($40,000 annually) 

for subscribing to both reports on the 

renewal date of their original 

subscription. For example, assume 

‘‘Member A’’ previously subscribed to 

the Simple Order Report on September 

1, 2021 and paid $24,000 for a 12 month 

subscription to the Simple Order 

Report. ‘‘Member A’s’’ current 

subscription expires on August 31, 2022 

for the Simple Order Report. Before 

‘‘Member A’s’’ subscription to the 

Simple Order Report expires, ‘‘Member 

A’’ decides to subscribe to the Complex 

Order Report, beginning March 1, 2022. 

Rather than being immediately charged 

$40,000 for the 12 month subscription 

discount for subscribing to both reports 

(‘‘Member A’’ already paid $24,000 

upfront for the Simple Order Report 12 

month subscription), ‘‘Member A’’ 

would only be charged an additional 

$8,000 to add the Complex Order Report 

for the remaining months of ‘‘Member 

A’s’’ current 12 month subscription to 

the Simple Order Report. On September 

1, 2022, assuming ‘‘Member A’’ decided 

to keep both reports, ‘‘Member A’’ 

would then be charged the 12 month 

discounted rate of $40,000 for both 

reports for the next year. 

The Exchange proposes to determine 

the pro-rated fee described above as 

follows: On the date that ‘‘Member A’’ 

wanted to begin subscribing to the 

Complex Order Report (March 1, 2022), 

there were six months remaining on 

‘‘Member A’s’’ existing 12 month 

subscription to the Simple Order Report 

(March, April, May, June, July and 

August). The added cost would be 


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22 15 U.S.C. 78f(b). 

23 15 U.S.C. 78f(b)(5). 

24 15 U.S.C. 78f(b). 

25 15 U.S.C. 78f(b)(4). 

26 See ‘‘The Market at a Glance,’’ (last visited 

February 10, 2022), available at https://

www.miaxoptions.com/. 

27 See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(‘‘Regulation NMS Adopting Release’’). 

28 See supra note 7. 

29 Cboe Exchange, Inc. (‘‘Cboe’’) assesses a 

$24,000 annual fee for an intra-day subscription to 

Open-Close Data. See https://datashop.cboe.com/ 

options-summary-subscription. 

calculated as ((6 months remaining/12 

months total) * ($40,000 discounted 

annual subscription for both 

reports¥$24,000 for annual 

subscription to each report individually) 

= $8,000 for remaining 6 months. 

Beginning September 1, 2022 (the 

original renewal date for the Simple 

Order Report), ‘‘Member A’’ would then 

be charged the discounted 12 month 

subscription rate of $40,000, assuming 

‘‘Member A’’ renews their subscriptions 

to both the Simple Order Report and the 

Complex Order Report. 

The Exchange intends to begin to offer 

the Complex Order Report and charge 

the proposed fees on March 1, 2022. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,22 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act,23 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, 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 to protect investors and the 

public interest, and that it is not 

designed to permit unfair 

discrimination among customers, 

brokers, or dealers. The Exchange also 

believes that its proposal to adopt fees 

for the Complex Order Report is 

consistent with Section 6(b) of the Act 24

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 25 in 

particular, in that it is an equitable 

allocation of dues, fees and other 

charges among its Members and other 

recipients of Exchange data. 

In adopting Regulation NMS, the 

Commission granted self-regulatory 

organizations (‘‘SROs’’) and brokerdealers increased authority and 

flexibility to offer new and unique 

market data to the public. It was 

believed that this authority would 

expand the amount of data available to 

consumers, and also spur innovation 

and competition for the provision of 

market data. The Exchange believes that 

the Report further broadens the 

availability of U.S. option market data to 

investors consistent with the principles 

of Regulation NMS. The Complex Order 

Report also promotes increased 

transparency through the dissemination 

of the Complex Order Report. 

Particularly, the Complex Order Report 

will benefit investors by facilitating 

their prompt access to the value added 

information that is included in the 

Complex Order Report. The Complex 

Order Report will allow Members to 

access information regarding their 

trading activity that they may utilize to 

evaluate their own trading behavior and 

order interactions. 

The Exchange operates in a highly 

competitive environment. Indeed, there 

are currently 16 registered options 

exchanges that trade options. Based on 

publicly available information, no single 

options exchange has more than 12– 

13% of the equity options market share 

and currently the Exchange represents 

only approximately 5.90% of the market 

share.26 The Commission has repeatedly 

expressed its preference for competition 

over regulatory intervention in 

determining prices, products, and 

services in the securities markets. 

Particularly, in Regulation NMS, the 

Commission highlighted the importance 

of market forces in determining prices 

and SRO revenues and, also, recognized 

that current regulation of the market 

system ‘‘has been remarkably successful 

in promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 27

Making similar data products available 

to market participants fosters 

competition in the marketplace, and 

constrains the ability of exchanges to 

charge supra-competitive fees. In the 

event that a market participant views 

one exchange’s data product as more 

attractive than the competition, that 

market participant can, and often does, 

switch between similar products. The 

proposed fees are a result of the 

competitive environment of the U.S. 

options industry as the Exchange seeks 

to adopt fees to attract purchasers of the 

recently introduced Complex Order 

Report. 

The Exchange believes the proposed 

fees are reasonable as the proposed fees 

are both modest and identical to the fees 

assessed by the Exchange for its 

substantially similar Simple Order 

Report.28 Indeed, if the Exchange 

proposed fees that market participants 

viewed as excessively high, then the 

proposed fees would simply serve to 

reduce demand for the Exchange’s data 

product, which as noted, is entirely 

optional. Other options exchanges are 

also free to introduce their own 

comparable data products with lower 

prices to better compete with the 

Exchange’s offering. As such, the 

Exchange believes that the proposed 

fees are reasonable and set at a level to 

compete with other options exchanges 

that may choose to offer similar reports. 

Moreover, if a market participant views 

another exchange’s potential report as 

more attractive, then such market 

participant can merely choose not to 

purchase the Exchange’s Complex Order 

Report and instead purchase another 

exchange’s similar data product, which 

may offer similar data points, albeit 

based on that other market’s trading 

activity. 

The Exchange also believes providing 

an annual subscription for an overall 

lower fee than a monthly subscription is 

equitable and reasonable because it 

would enable the Exchange to gauge 

long-term interest in the Complex Order 

Report. A lower annual subscription fee 

would also incentivize Members to 

subscribe to the Complex Order Report 

on a long-term basis, thereby improving 

the efficiency by which the Exchange 

may deliver the Complex Order Report 

by doing so on a regular basis over a 

prolonged and set period of time. The 

Exchange notes it provides an identical 

annual subscription for its Simple Order 

Report data and that other exchanges 

provide annual subscriptions for reports 

concerning their data product 

offerings.29

The Exchange also believes the 

proposed fees are reasonable as they 

would support the introduction of a 

new market data product to Members 

that are interested in gaining insight 

into latency in connection with 

Complex Orders that failed to execute 

against a Complex Order resting on the 

Exchange’s Strategy Book. The Complex 

Order Report accomplishes this by 

providing those Members data to 

analyze by how much time their order 

may have missed an execution against a 

contra-side order resting on the Strategy 

Book. Members may use this data to 

optimize their models and trading 

patterns in an effort to yield better 

execution results by calculating by how 

much time their order may have missed 

an execution. 

Selling market data, such as the 

Complex Order Report, is also a means 

by which exchanges compete to attract 

business. To the extent that the 

Exchange is successful in attracting 

subscribers for the Complex Order 

Report, it may earn trading revenues 

and further enhance the value of its data 

products. If the market deems the 


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30 15 U.S.C. 78s(b)(3)(A)(ii). 

31 17 CFR 240.19b–4(f)(2). 

proposed fees to be unfair or 

inequitable, firms can diminish or 

discontinue their use of the data. The 

Exchange therefore believes that the 

proposed fees for the Complex Order 

Report reflect the competitive 

environment and would be properly 

assessed on Member users. The 

Exchange also believes the proposed 

fees are equitable and not unfairly 

discriminatory as the fees would apply 

equally to all users who choose to 

purchase such data. It is a business 

decision of each Member that chooses to 

purchase the Complex Order Report. 

The Exchange’s proposed fees would 

not differentiate between subscribers 

that purchase the Complex Order Report 

and are set at a modest level that would 

allow any interested Member to 

purchase such data based on their 

business needs. 

The Exchange reiterates that the 

decision as to whether or not to 

purchase the Complex Order Report is 

entirely optional for all potential 

subscribers. Indeed, no market 

participant is required to purchase the 

Complex Order Report, and the 

Exchange is not required to make the 

Complex Order Report available to all 

investors. It is entirely a business 

decision of each Member to subscribe to 

the Complex Order Report. The 

Exchange offers the Complex Order 

Report as a convenience to Members to 

provide them with additional 

information regarding trading activity 

on the Exchange on a delayed basis after 

the close of regular trading hours. A 

Member that chooses to subscribe to the 

Complex Order Report may discontinue 

receiving the Complex Order Report at 

any time if that Member determines that 

the information contained in the 

Complex Order Report is no longer 

useful. 

The Exchange also believes providing 

a 12 month discounted fee for 

subscribers of both the Simple and 

Complex Order Reports is equitable and 

reasonable because it would enable the 

Exchange to gauge long-term interest in 

both reports. The Exchange believes that 

a lower annual combined subscription 

fee may incentivize Members to 

subscribe to both reports on a long-term 

basis, thereby allowing the Exchange to 

better gauge demand for both reports 

over a longer period of time. Doing so 

will enable the Exchange to better 

predict the future demand for both 

reports. This will allow the Exchange to 

better prepare and adjust resources for 

the production and delivery of both 

reports to Members, improving the 

efficiency by which the Exchange may 

deliver both reports over a prolonged 

and set period of time. The Exchange 

also believes that it is reasonable, 

equitable and not unfairly 

discriminatory to offer a 12 month 

discounted fee for Members that 

subscribe to both reports because all 

Members may subscribe to both reports 

and receive the discounted rate. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will result in 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange made the Complex Order 

Report available in order to keep pace 

with changes in the industry and 

evolving customer needs and demands, 

and believes the data product will 

contribute to robust competition among 

national securities exchanges. As a 

result, the Exchange believes this 

proposed rule change permits fair 

competition among national securities 

exchanges. 

The Exchange believes the proposed 

fees would not cause any unnecessary 

or inappropriate burden on intermarket 

competition as other exchanges are free 

to introduce their own comparable data 

product with lower prices to better 

compete with the Exchange’s offering. 

The Exchange operates in a highly 

competitive environment, and its ability 

to price the Complex Order Report is 

constrained by competition among 

exchanges who choose to adopt a 

similar product. The Exchange must 

consider this in its pricing discipline in 

order to compete for the market data. 

For example, proposing fees that are 

excessively higher than fees for 

potentially similar data products would 

simply serve to reduce demand for the 

Exchange’s data product, which as 

discussed, market participants are under 

no obligation to utilize. In this 

competitive environment, potential 

purchasers are free to choose which, if 

any, similar product to purchase to 

satisfy their need for market 

information. As a result, the Exchange 

believes this proposed rule change 

permits fair competition among national 

securities exchanges. 

The Exchange also believes that the 

proposed fees do not cause any 

unnecessary or inappropriate burden on 

intermarket competition because the 

latency information that would be 

provided in the Complex Order Report 

would enhance competition between 

exchanges that offer complex order 

functionality. Members that subscribe to 

the Complex Order Report could use the 

information in the report to recalibrate 

their models and trading strategies to 

improve their overall trading experience 

on the Exchange. This may improve the 

Exchange’s overall trading environment 

resulting in increased liquidity and 

order flow on the Exchange. In 

response, other exchanges may similarly 

seek ways to provide latency related 

data in an effort to improve their own 

market quality for complex orders. 

The Exchange does not believe the 

proposed rule change would cause any 

unnecessary or inappropriate burden on 

intramarket competition. Particularly, 

the proposed product and fees apply 

uniformly to any purchaser in that the 

Exchange does not differentiate between 

subscribers that purchase the Complex 

Order Report. The proposed fees are set 

at a modest level that would allow any 

interested Member to purchase such 

data based on their business needs. 

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,30 and Rule 

19b–4(f)(2) 31 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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

MIAX–2022–11 on the subject line. 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 50 / Tuesday, March 15, 2022 / Notices 14603 

32 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See, generally, Exchange Rule 531(b). 

4See Securities Exchange Act Release No. 94136 

(February 2, 2022), 87 FR 7223 (February 8, 2022) 

(SR–EMERALD–2022–02). 

5The 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 

the Definitions Section of the Fee Schedule and 

Exchange Rule 100. 

6See Exchange Rule 531(b). 

7See Securities Exchange Act Release Nos. 91787 

(May 6, 2021), 86 FR 26111 (May 12, 2021) (SR– 

EMERALD–2021–09) (Order Approving Proposed 

Rule Change To Adopt Exchange Rule 531(a), 

Reports, To Provide for a New ‘‘Liquidity Taker 

Event Report’’); 92028 (May 26, 2021), 86 FR 29608 

(June 2, 2021) (SR–EMERALD–2021–19) (Notice of 

Filing and Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fee Schedule To Adopt 

Fees for a New Data Product Known as the 

Liquidity Taker Event Report). See Exchange Rule 

531(a) for the rule text of the Simple Order Report. 

See also Fee Schedule, Section 7), Reports, for the 

fees for the Simple Order Report. 

8The term ‘‘Strategy Book’’ means the Exchange’s 

electronic book of complex orders and complex 

quotes. See Exchange Rule 518(a)(17). 

9Only displayed orders will be included in the 

Complex Order Report. The Exchange notes that it 

does not currently offer any non-displayed orders 

types on its options trading platform. 

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–2022–11. 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 (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 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 

10:00 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. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–MIAX–2022–11, and 

should be submitted on or before April 

5, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.32

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–05373 Filed 3–14–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94386; File No. SR– 

EMERALD–2022–08] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the MIAX 

Emerald Fee Schedule To Adopt Fees 

for a New Data Product Called the 

Liquidity Taker Event Report— 

Complex Orders 

March 9, 2022. 

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 February 

25, 2022, MIAX Emerald, LLC (‘‘MIAX 

Emerald’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘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 Emerald Fee Schedule 

(the ‘‘Fee Schedule’’) to adopt fees for a 

new data product known as the 

Liquidity Taker Event Report—Complex 

Orders.3

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/emerald, 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 recently established a 

new data product known as the 

Liquidity Taker Event Report—Complex 

Orders (the ‘‘Complex Order Report’’),4

which will be available for purchase by 

Exchange Members 5 on a voluntary 

basis. The Exchange now proposes to 

adopt fees for the Complex Order 

Report, which is described under 

Exchange Rule 531(b).6 The Complex 

Order Report is an optional product 

available to Members. The Exchange 

notes that the proposed fees for the 

Complex Order Report are identical to 

the fees the Exchange recently 

established for subscribers to a similar 

report known as the Liquidity Taker 

Event Report—Simple Orders (the 

‘‘Simple Order Report’’).7 As further 

described below, the Exchange proposes 

to also offer a discounted combined fee 

for Members who purchase annual 

subscriptions to both the Simple Order 

Report and Complex Order Report. 

By way of background, the Complex 

Order Report is a daily report that 

provides a Member (‘‘Recipient 

Member’’) with its liquidity response 

time details for executions of a Complex 

Order resting on the Strategy Book,8

where that Recipient Member attempted 

to execute against such resting Complex 

Order 9 within a certain timeframe. It is 

important to note that the content of the 

Complex Order Report is specific to the 

Recipient Member and the Complex 


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