```

[Federal Register Volume 89, Number 235 (Friday, December 6, 2024)]
[Notices]
[Pages 97138-97140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28546]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101789; File No. SR-MIAX-2024-41]

Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Fee Schedule

December 2, 2024.
    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 November 19, 2024, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the MIAX Options Exchange Fee 
Schedule (``Fee Schedule'') to (1) update the Exchange's email domain; 
and (2) delete all references and transaction fees and rebates for 
mini-options.
    The text of the proposed rule change is available on the Exchange's 
website at https://www.miaxglobal.com/markets/us-options/miax-options/rule-filings, 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 the Fee Schedule to (1) update the 
Exchange's email domain; and (2) delete all references and transaction 
fees and rebates for mini-options.
Proposal To Amend the Footnote Definition of ``Affiliate'' in Section 
1)a)i) of the Fee Schedule
    The Exchange proposes to amend the MIAX email domain in footnote #1 
of the Members and Their Affiliates In Priority Customer Rebate Program 
Volume Tier 3 or Higher table in Section 1)a)i) of the Fee Schedule.
    Currently, footnote #1 in the Fee Schedule provides, in relevant 
part, that ``. . . A MIAX Market Maker appoints an EEM and an EEM 
appoints a MIAX Market Maker, for the purposes of the Fee Schedule, by 
each completing and sending an executed Volume Aggregation Request Form 
by email to [email protected] no later than 2 business days 
prior to the first business day of the month in which the designation 
is to become effective . . .'' MIAX started using the new domain 
(@miaxglobal.com), instead of the old domain (@miaxoptions.com), and 
all firms are required to include the new domain (@miaxglobal.com) as 
of June 1, 2023.\3\ The Exchange now proposes to replace the old email 
domain ([email protected]) with the new email domain 
([email protected]) in footnote #1 in the Fee Schedule. 
Accordingly, with the proposed changes, footnote #1 will read as 
follows:
---------------------------------------------------------------------------

    \3\ See ``MIAX Exchange Group--Options and Equities Markets--
Final Reminder: New email domain,'' available at https://www.miaxglobal.com/alert/2023/06/01/miax-exchange-group-options-and-equities-markets-final-reminder-new-email-1.

    For purposes of the MIAX Options Fee Schedule, the term 
``Affiliate'' means (i) an affiliate of a Member of at least 75% 
common ownership between the firms as reflected on each firm's Form 
BD, Schedule A, (``Affiliate''), or (ii) the Appointed Market Maker 
of an Appointed EEM (or, conversely, the Appointed EEM of an 
Appointed Market Maker). An ``Appointed Market Maker'' is a MIAX 
Market Maker (who does not otherwise have a corporate affiliation 
based upon common ownership with an EEM) that has been appointed by 
an EEM and an ``Appointed EEM'' is an EEM (who does not otherwise 
have a corporate affiliation based upon common ownership with a MIAX 
Market Maker) that has been appointed by a MIAX Market Maker, 
pursuant to the following process. A MIAX Market Maker appoints an 
EEM and an EEM appoints a MIAX Market Maker, for the purposes of the 
Fee Schedule, by each completing and sending an executed Volume 
Aggregation Request Form by email to [email protected] no 
later than 2 business days prior to the first business day of the 
month in which the designation is to become effective. Transmittal 
of a validly completed and executed form to the Exchange along with 
the Exchange's acknowledgement of the effective designation to each 
of the Market Maker and EEM will be viewed as acceptance of the 
appointment. The Exchange will only recognize one designation per 
Member. A Member may make a designation not more than once every 12 
months (from the date of its most recent designation), which 
designation shall remain in effect unless or until the Exchange 
receives written notice submitted 2 business days prior to the first 
business day of the month from either Member indicating that the 
appointment has been terminated. Designations will become operative 
on the first business day of the effective month and may not be 
terminated prior to the end of the month. Execution data and reports 
will be provided to both parties.
Proposal To Delete All References to Mini-Options
    The Exchange proposes to delete all outdated references to mini-
options in the Fee Schedule. On April 17, 2013, the Exchange began 
listing and trading mini-options that were options contracts on a 
select number of high-priced and

[[Page 97139]]

actively traded securities, each with a unit of trading ten times lower 
than that of standard-sized options contracts.\4\ Mini-options never 
gained significant market acceptance and have not achieved the expected 
level of traction or success in its target market. Accordingly, all 
mini-options were delisted several years ago and the Exchange does not 
have plans to re-list them in the foreseeable future. As the Exchange 
no longer offers mini-option contracts, the Exchange proposes to delete 
all references to mini-options to provide greater clarity to Members 
\5\ and the public regarding the Exchange's offerings and Fee Schedule. 
The Exchange also notes that other exchanges filed similar proposals to 
delete references to mini-options.\6\ In the event that the Exchange 
desires to list mini-options in the future, the Exchange will file a 
rule change with the Securities and Exchange Commission (the 
``Commission'') to adopt rules to list mini-options and corresponding 
fees and rebates for transactions in mini-options, if applicable.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 69136 (March 14, 
2013), 78 FR 17259 (March 20, 2013) (SR-MIAX-2013-06).
    \5\ The 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.
    \6\ See Securities Exchange Act Release No. 88374 (March 12, 
2020), 85 FR 15522 (March 18, 2020) (SR-Phlx-2020-08) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Certain Phlx Rules To Remove References to Mini Options); see also 
Securities Exchange Act Release No. 88458 (March 23, 2020), 85 FR 
17372 (March 27, 2020) (SR-MRX-2020-07) (Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Related to the 
Removal of Obsolete Listing Rules); see also Securities Exchange Act 
Release No. 88456 (March 23, 2020), 85 FR 17126 (March 26, 2020) 
(SR-ISE-2020-11) (Notice of Filing and Immediate Effectiveness of 
Proposed Rule Change Related to the Removal of Obsolete Listing 
Rules).
---------------------------------------------------------------------------

    Specifically, the Exchange proposes to delete ``except mini-
options'' at the end of the second sentence of the explanatory 
paragraph and delete ``MIAX Market Makers will be assessed a $0.02 per 
executed contract fee for transactions in mini-options,'' which is the 
third sentence of the explanatory paragraph below the Members and Their 
Affiliates In Priority Customer Rebate Program Volume Tier 3 or Higher 
table in Section 1)a)i) of the Fee Schedule. The Exchange proposes to 
delete the two columns for mini-options transaction fees in Section 
1)a)ii) of the Fee Schedule. The Exchange proposes to delete ``mini-
options,'' in the first explanatory paragraph below cPRIME Agency Order 
Break-up Table in Section 1)a)iii) of the Fee Schedule. The Exchange 
proposes to delete ``mini-options,'' in the last explanatory paragraph 
below the cPRIME Agency Order Break-up Table in Section 1)a)iii) of the 
Fee Schedule. The Exchange proposes to delete ``mini-options,'' in the 
first explanatory paragraph below the Professional Rebate Program fee 
table in Section 1)a)iv) of the Fee Schedule. The Exchange proposes to 
delete the sentence that states ``Transaction fees in mini-options will 
be 1/10th of the standard per contract fee or rebate described in the 
table above for the PRIME Auction.'' in the explanatory paragraph in 
Section 1)a)v) of the Fee Schedule. The Exchange proposes to delete 
``including mini options,'' in the first sentence of the first 
explanatory paragraph in Section 1)a)xi) of the Fee Schedule. The 
Exchange proposes to delete the last two rows of the table that 
provides the marketing fee for mini-options in Section 1)a)xi) of the 
Fee Schedule. The Exchange proposes to delete ``including Mini 
Options,'' in the first sentence of the explanatory paragraph of 
Section 2)b) of the Fee Schedule.
2. Statutory Basis
    The Exchange believes that the proposed changes are consistent with 
Section 6(b) of the Act \7\ in general, and further the objectives of 
Section 6(b)(1) of the Act,\8\ in particular, in that they are designed 
to enforce compliance by the Exchange's Members and persons associated 
with its Members, with the provisions of the rules of the Exchange. In 
particular, the Exchange believes that the proposed changes will 
provide greater clarity to Members and the public regarding the 
Exchange's Fee Schedule by updating the Exchange's new email domain and 
removing outdated references to mini-options that are no longer offered 
by the Exchange. The proposed changes will also make it easier for 
Members and non-Members to interpret the Exchange's Fee Schedule.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(1).
---------------------------------------------------------------------------

    The Exchange believes that the proposed changes also further the 
objectives of Section 6(b)(5) of the Act. In particular, they are 
designed to prevent fraudulent and manipulative acts and practices, 
promote just and equitable principles of trade, foster cooperation and 
coordination with persons engaged in regulating, clearing, settling, 
processing information with respect to, and facilitating transactions 
in securities, remove impediments to and perfect the mechanisms of a 
free and open market and a national market system and, in general, 
protect investors and the public interest. The Exchange believes the 
proposed changes promote just and equitable principles of trade and 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system because the proposed changes will 
provide greater clarity to Members and the public regarding the 
Exchange's Fee Schedule by updating the Exchange's new email domain and 
removing outdated references to mini-options that are no longer offered 
by the Exchange. The proposed changes to remove obsolete language in 
the Fee Schedule include the removal of outdated references to mini-
options. Mini-options are no longer offered by the Exchange since mini-
options failed to gain significant market acceptance and did not 
achieve the expected level of traction or success in its target market. 
Removing references to mini-options would render the Exchange's Fee 
Schedule more accurate and reduce potential investor confusion. The 
Exchange does not propose to amend any fees to be assessed to Members 
or non-Members. It is in the public interest for the Exchange's Fee 
Schedule to be accurate and consistent so as to eliminate the potential 
for confusion.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed changes will impose 
any burden on competition not necessary or appropriate in furtherance 
of the purposes of the Act. Specifically, the Exchange believes the 
proposed changes will not impose any burden on intra-market competition 
as there is no functional change to the Exchange's System \9\ or the 
Exchange's fees and because the Exchange's Fee Schedule applies to all 
market participants equally. The proposal will have no impact on 
competition as it is not designed to address any competitive issue but 
rather is designed to remedy minor issues and provide added clarity to 
the Fee Schedule, including removing outdated references to mini-
options that are no longer offered by the Exchange. Mini-options failed 
to gain significant market acceptance and have not achieved the 
expected level of traction or success in its target market; 
accordingly, the Exchange delisted all mini-options several years ago 
and does not have plans to re-list them in the

[[Page 97140]]

foreseeable future.\10\ The proposed changes would apply uniformly to 
all market participants. The proposed changes do not favor certain 
categories of market participants in a manner that would impose an 
undue burden on competition.
---------------------------------------------------------------------------

    \9\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \10\ The Exchange notes that other exchanges filed similar 
proposals to delete references to mini-options. See supra note 6.
---------------------------------------------------------------------------

    In addition, the Exchange does not believe the proposal will impose 
any burden on inter-market competition as the proposal does not address 
any competitive issues and is intended to protect investors by 
providing further transparency regarding the Exchange's email domain 
and offerings. Removing outdated references to mini-options that are no 
longer offered by the Exchange is to provide more clarity within the 
Fee Schedule by deleting obsolete language in the Fee Schedule. Mini-
options failed to gain significant market acceptance and have not 
achieved the expected level of traction or success in its target 
market, so the Exchange delisted all mini-options several years ago and 
does not have plans to re-list them in the foreseeable future. The 
Exchange does not believe that the proposal will harm another 
exchange's ability to compete. Accordingly, the Exchange does not 
believe the proposal imposes any burden on competition that is not 
necessary or appropriate in furtherance of the purposes of the Act.

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 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 prior to 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, the proposed 
rule change has become effective pursuant to Section 19(b)(3)(A)(iii) 
of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of 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. 
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has asked 
the Commission to waive the 30-day operative delay so that the proposal 
may become operative immediately upon filing. The Exchange states that 
removing references to mini-options would render the Exchange's Fee 
Schedule more accurate and reduce potential investor confusion by 
removing outdated references to a type of option that is no longer 
offered by the Exchange. The Exchange also states that competing 
exchanges have removed references to mini-options in their rulebooks 
because they no longer trade mini-options. The Exchange further states 
that the proposal to update the email domain is a minor, non-
substantive edit that will provide greater clarity to Members and the 
public regarding the Exchange's Fee Schedule. For these reasons, and 
because the proposal does not raise any new or novel issues, the 
Commission believes that waiver of the operative delay is consistent 
with the protection of investors and the public interest. Accordingly, 
the Commission hereby waives the 30-day operative delay and designates 
the proposal operative upon filing.\15\
---------------------------------------------------------------------------

    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 under 
Section 19(b)(2)(B) \16\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
file number SR-MIAX-2024-41 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-2024-41. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for website viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE, 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of the filing also will be available for 
inspection and copying at the principal office of the Exchange. Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to file number SR-MIAX-2024-41 and should be 
submitted on or before December 27, 2024.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

    \17\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-28546 Filed 12-5-24; 8:45 am]
BILLING CODE 8011-01-P
```