Federal Register / Vol. 86, No. 132 / Wednesday, July 14, 2021 / Notices 37197 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 91482 

(April 6, 2021), 86 FR 19067. Comments on the 

proposed rule change can be found on the 

Commission’s website at: https://www.sec.gov/ 

comments/sr-cboe-2021-020/srcboe2021020.htm. 

4See Securities Exchange Act Release No. 92011, 

86 FR 29334 (June 1, 2021). The Commission 

designated July 11, 2021, as the date by which it 

should approve, disapprove, or institute 

proceedings to determine whether to disapprove the 

proposed rule change. 

5 In Amendment No. 1, the Exchange: (1) 

Narrowed the list of index options that could be 

compressed to include only SPX options and 

limited the compression service to closing positions 

only, (2) expanded eligibility from only market 

makers to all TPHs, (3) added detail to the 

participation requirements to ensure that the 

proposed compression service is limited to 

legitimate compression purposes, (4) added further 

detail regarding the proposed compression service, 

and (5) added additional justification for the 

proposed rule change. 

ACTION: Notice. 

SUMMARY: The Postal Service gives 

notice of filing a request with the Postal 

Regulatory Commission to add a 

domestic shipping services contract to 

the list of Negotiated Service 

Agreements in the Mail Classification 

Schedule’s Competitive Products List. 

DATES: Date of required notice: July 14, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Sean Robinson, 202–268–8405. 

SUPPLEMENTARY INFORMATION: The 

United States Postal Service® hereby 

gives notice that, pursuant to 39 U.S.C. 

3642 and 3632(b)(3), on July 8, 2021, it 

filed with the Postal Regulatory 

Commission a USPS Request to Add 

Priority Mail Contract 711 to 

Competitive Product List. Documents 

are available at www.prc.gov, Docket 

Nos. MC2021–108, CP2021–110. 

Sean Robinson, 

Attorney, Corporate and Postal Business Law. 

[FR Doc. 2021–15000 Filed 7–13–21; 8:45 am] 

BILLING CODE 7710–12–P 

POSTAL SERVICE 

Product Change—Priority Mail and 

First-Class Package Service 

Negotiated Service Agreement 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 

SUMMARY: The Postal Service gives 

notice of filing a request with the Postal 

Regulatory Commission to add a 

domestic shipping services contract to 

the list of Negotiated Service 

Agreements in the Mail Classification 

Schedule’s Competitive Products List. 

DATES: Date of required notice: July 14, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Sean Robinson, 202–268–8405. 

SUPPLEMENTARY INFORMATION: The 

United States Postal Service® hereby 

gives notice that, pursuant to 39 U.S.C. 

3642 and 3632(b)(3), on July 9, 2021, it 

filed with the Postal Regulatory 

Commission a USPS Request to Add 

Priority Mail & First-Class Package 

Service Contract 198 to Competitive 

Product List. Documents are available at 

www.prc.gov, Docket Nos. MC2021–110, 

CP2021–112. 

Sean Robinson, 

Attorney, Corporate and Postal Business Law. 

[FR Doc. 2021–15002 Filed 7–13–21; 8:45 am] 

BILLING CODE 7710–12–P 

POSTAL SERVICE 

Product Change—Priority Mail 

Negotiated Service Agreement 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 

SUMMARY: The Postal Service gives 

notice of filing a request with the Postal 

Regulatory Commission to add a 

domestic shipping services contract to 

the list of Negotiated Service 

Agreements in the Mail Classification 

Schedule’s Competitive Products List. 

DATES: Date of required notice: July 14, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Sean Robinson, 202–268–8405. 

SUPPLEMENTARY INFORMATION: The 

United States Postal Service® hereby 

gives notice that, pursuant to 39 U.S.C. 

3642 and 3632(b)(3), on July 8, 2021, it 

filed with the Postal Regulatory 

Commission a USPS Request to Add 

Priority Mail Contract 710 to 

Competitive Product List. Documents 

are available at www.prc.gov, Docket 

Nos. MC2021–107, CP2021–109. 

Sean Robinson, 

Attorney, Corporate and Postal Business Law. 

[FR Doc. 2021–14999 Filed 7–13–21; 8:45 am] 

BILLING CODE 7710–12–P 

POSTAL SERVICE 

Product Change—Priority Mail 

Negotiated Service Agreement 

AGENCY: Postal ServiceTM. 

ACTION: Notice. 

SUMMARY: The Postal Service gives 

notice of filing a request with the Postal 

Regulatory Commission to add a 

domestic shipping services contract to 

the list of Negotiated Service 

Agreements in the Mail Classification 

Schedule’s Competitive Products List. 

DATES: Date of required notice: July 14, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Sean Robinson, 202–268–8405. 

SUPPLEMENTARY INFORMATION: The 

United States Postal Service® hereby 

gives notice that, pursuant to 39 U.S.C. 

3642 and 3632(b)(3), on June 30, 2021, 

it filed with the Postal Regulatory 

Commission a USPS Request to Add 

Priority Mail Contract 709 to 

Competitive Product List. Documents 

are available at www.prc.gov, Docket 

Nos. MC2021–106, CP2021–108. 

Sean Robinson, 

Attorney, Corporate and Postal Business Law. 

[FR Doc. 2021–14998 Filed 7–13–21; 8:45 am] 

BILLING CODE 7710–12–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92354; File No. SR–CBOE– 

2021–020] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing of 

Amendment No. 1 and Order Granting 

Accelerated Approval of a Proposed 

Rule Change, as Modified by 

Amendment No. 1, To Adopt Rule 6.10 

To Introduce a Voluntary Multilateral 

Compression Service for SPX Options 

July 8, 2021. 

I. Introduction 

On March 24, 2021, Cboe Exchange, 

Inc. (‘‘Exchange’’ or ‘‘Cboe’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder,2 a proposed rule 

change to adopt new Cboe Rule 6.10 to 

introduce a voluntary compression 

service for market makers. The proposed 

rule change was published for comment 

in the Federal Register on April 12, 

2021.3 On May 25, 2021, the 

Commission designated a longer period 

within which to approve the proposed 

rule change, disapprove the proposed 

rule change, or institute proceedings to 

determine whether to disapprove the 

proposed rule change.4 On July 7, 2021, 

the Exchange filed Amendment No. 1 to 

the proposed rule change, which 

replaced and superseded the proposed 

rule change in its entirety.5 The 

Commission is publishing this notice to 

solicit comments on the Exchange’s 

proposal, as modified by Amendment 

No. 1, from interested persons and is 

approving the Exchange’s proposal, as 


lotter on DSK11XQN23PROD with NOTICES1
37198 Federal Register / Vol. 86, No. 132 / Wednesday, July 14, 2021 / Notices 

6Currently, the Exchange offers other methods by 

which TPHs can compress certain types of options 

holdings, including (1) Cboe Rule 5.6, which allows 

for compression orders in SPX options and (2) Cboe 

Rule 6.8, which allows TPHs to transfer positions 

off-exchange if the transfer does not result in a 

change of ownership and reduced the risk-weighted 

assets associated with those positions. 

7See Amendment No. 1, at 8–10. 

8See id. at 10. 

9See id. at 11. 

10See id. 

11See generally Amendment No. 1. 

12See Amendment No. 1, at 17. 

13See, e.g., proposed Cboe Rule 6.10(b)(2) 

(concerning a theoretical value ‘‘calculated in a 

manner of the compression participant’s 

choosing’’). 

14Proposed Cboe Rule 6.10(c)(2). 

15See id. 

16See proposed Cboe Rule 6.10(d). 

17See id. In Amendment No. 1, the Exchange 

represented that it will disseminate compression 

transaction information to OPRA. The Exchange 

further states that it has completed system work to 

apply an indicator to such information and is 

working with OPRA so that OPRA is able to 

incorporate that indicator. The Exchange expects 

OPRA to complete its work in 2021, but notes that 

the indicator may not be available upon 

implementation of the compression service. See 

Amendment No. 1, at 27. 

18See id. 

19 In approving this proposed rule change, the 

Commission has considered the proposed rule’s 

impact on efficiency, competition, and capital 

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

20 15 U.S.C. 78f(b)(5). 

modified by Amendment No. 1, on an 

accelerated basis. 

II. Description of the Proposed Rule 

Change, as Modified by Amendment 

No. 1 

The Exchange proposes to adopt new 

Cboe Rule 6.10 to provide Trading 

Permit Holders (‘‘TPHs’’) with an 

additional voluntary compression tool 

that they can use to reduce required 

capital attributable to their S&P 500 

Index (‘‘SPX’’) options holdings.6 The 

Exchange’s proposal is designed to 

address the impact on liquidity 

providers of the limited amount of 

capital available from clearing brokerdealers that is a consequence of, among 

other things, the fact that a number of 

clearing TPHs are now subsidiaries of 

U.S. bank holding companies that must, 

as a result of this affiliation, comply 

with additional bank capital regulatory 

requirements. In particular, bank capital 

rules do not currently permit 

deductions for hedged securities or 

offsetting options positions to the same 

extent that the federal securities laws 

and self-regulatory organization rules do 

for securities. The impact of this 

dynamic most acutely impacts SPX 

options due to the popularity of SPX 

options and the significant number of 

open index options positions combined 

with their large notional value. 

In its filing, the Exchange explains 

that it has observed that these bank 

capital rules have caused clearing 

broker-dealers to impose stricter 

position limits on their clearing 

members, which can impact the 

liquidity that TPHs, notably market 

makers who are frequently the 

counterparties to a significant portion of 

SPX option trades, might be able to 

supply.7 This impact would be most 

pronounced when markets are volatile, 

precisely at the time when the market 

would benefit from increased liquidity 

provision. 

The bank regulatory agencies have 

approved replacing the Current 

Exposure Method (‘‘CEM’’) with the 

Standardized Approach to Counterparty 

Credit Risk (‘‘SA–CCR’’) in the near 

future, and the Exchange believes SA– 

CCR will be ‘‘less punitive’’ to clearing 

broker-dealers because SA–CCR ‘‘will 

help correct many of CEM’s flaws by 

incorporating risk-sensitive principles, 

such as delta weighting options 

positions and more beneficial netting of 

derivative contracts that have 

economically meaningful 

relationships.’’ 8 Nevertheless, the 

Exchange believes that SA–CCR ‘‘will 

not eliminate [TPHs’] need for 

compression’’ as the ability to compress 

SPX positions can ‘‘enable them to 

provide more meaningful liquidity to 

the market, particularly during times of 

volatility when the market needs this 

liquidity most.’’ 9 The Exchange further 

asserts that ‘‘this additional liquidity 

may result in tighter spreads and more 

execution opportunities, which benefits 

all investors.’’ 10

As described more fully in the Notice, 

as modified by Amendment No. 1, in 

order to be able to participate in the new 

multilateral compression service, a TPH 

must request access to the service and 

complete a standard test to demonstrate 

its capacity to participate. While the 

Exchange initially proposed that only 

registered market makers would be 

eligible to participate and a larger 

number of index options would be 

eligible for inclusion, the Exchange has 

modified its proposal to allow any TPH 

to request access and to limit the service 

to SPX options only, where the need for 

compression is most present.11

The Exchange will offer multilateral 

compression periodically, initially twice 

per month, in order to allow TPHs to 

respond to intra-month reviews of 

regulatory capital for their positions by 

their clearing broker-dealers.12 To 

participate, a TPH must submit a 

‘‘position list’’ after the close of trading 

on the specified day that details all of 

the open SPX positions it would like to 

close out and compress. The list must 

specify the amount of capital reduction 

associated with each closing position, 

the theoretical value of each position, 

the maximum cost the TPH is willing to 

accept to compress all of the positions 

(in the aggregate), the maximum cost per 

unit of capital reduction the TPH is 

willing to accept, and at least one risk 

constraint of the TPH’s choosing 

including a minimum and maximum 

value. TPHs have flexibility in choosing 

these values as specified in the 

proposed rule.13

After the deadline for submission of 

the position lists, the Exchange runs an 

automated process to match offsetting 

positions in an anonymized manner. 

The process identifies the outcome that 

would result in the maximum aggregate 

capital reduction among all 

participating TPHs (picking at random 

from among equal outcomes). The 

Exchange determines the compression 

price for each option, which will be ‘‘as 

close as possible to the midpoint of the 

[national best bid and offer] at the close 

of the trading day or the daily marking 

time, subject to adjustment using 

generally accepted volatility and 

options pricing models in the event of 

wide markets, market volatility, or other 

unusual circumstances.’’ 14

The Exchange then notifies the TPH 

participants of each TPH’s individual 

compression proposal.15 Each TPH with 

at least one offsetting position must 

notify the Exchange whether it accepts 

its individual proposal.16 If all 

compression participants accept their 

individual proposals, then the Exchange 

effects the transactions at the specified 

prices off the exchange.17 If one 

compression participant declines, then 

no compression transactions are 

effected.18

III. Discussion and Commission 

Findings 

After careful review of the proposal 

and the comments received, all of which 

supported the proposal and 

recommended that the Commission 

approve it, the Commission finds that 

the proposed rule change, as modified 

by Amendment No. 1, is consistent with 

the Act and the rules and regulations 

thereunder applicable to a national 

securities exchange.19 In particular, the 

Commission finds that the proposed 

rule change, as modified by Amendment 

No. 1, is consistent with Section 6(b)(5) 

of the Act,20 which requires, among 

other things, that the rules of a national 

securities exchange be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to remove 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 86, No. 132 / Wednesday, July 14, 2021 / Notices 37199 

21See Amendment No. 1, at 37. 

22See id. 

23See id. at 38. 

24See id. 

25See id. 

26See id. at 41. Two commenters supported the 

proposed rule change, asserting that the proposed 

compression service procedure would provide an 

additional risk management tool that can be used 

by Cboe market makers to efficiently manage the 

capital and margin requirements of their portfolios. 

See Letters to Vanessa Countryman, Secretary, 

Commission, from Joanna Mallers, Secretary, FIA 

Principal Traders Group, dated May 3, 2021, at 2; 

and Michael Golding, Head of Trading, Optiver US 

LLC and Aldo van Audenaerde, Head of Trading, 

AMS Derivatives B.V., dated April 22, 2021, at 1. 

27See, e.g., Securities Exchange Act Release No. 

91079 (October 14, 2020), 85 FR 66590 (October 20, 

2020) (order granting approval of proposed rule 

change to adopt position compression cross orders 

in SPX options). 

28See supra note 17. 

29 15 U.S.C. 78f(b)(5). 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. 

In support of its proposal, the 

Exchange states that compression 

transactions under Cboe Rule 6.10 will 

have a narrow scope and are intended 

and designed to achieve the limited 

purpose of capital reduction.21 The 

Exchange further explains that it 

understands that TPHs have no need for 

price discovery or price improvement 

for compression transactions, because 

the purpose of the transfer is to reduce 

capital requirements attributable to the 

TPHs’ positions and the price of the 

compression transaction is a secondary 

concern.22 The Exchange further states 

that its proposal is needed because 

liquidity providers accumulate SPX 

positions to accommodate executions of 

customer orders, and do so at increasing 

levels during times of market 

volatility.23 While TPHs hold these 

positions prior to expiration, many may 

have little to no value and closure of 

these positions may have little impact 

on the risk exposure of the TPH’s 

portfolio.24 Yet, maintenance of these 

positions requires ongoing risk 

management and capital, which can 

impact the capital the TPHs have 

available to trade.25 The Exchange 

asserts that its proposal will limit the 

use of the compression service to 

legitimate compression purposes and 

provide an objective process to allow 

TPHs to manage capital and margin 

requirements so that they have 

sufficient capital available to provide to 

the markets, which will benefit all 

market participants.26

The Commission believes that the 

Exchange’s proposal will provide a 

narrowly-tailored, objective, and not 

unfairly discriminatory mechanism for 

TPHs to efficiently compress open SPX 

positions for the purpose of reducing 

required capital. As the Commission has 

previously observed, the affiliation of 

clearing brokers with bank holding 

companies has introduced the need for 

liquidity providers and their clearing 

firms to more conservatively manage 

holdings to comply with applicable 

bank regulatory capital requirements.27

The ability to compress positions in an 

efficient, cost-effective manner can help 

liquidity providers and their clearing 

firms manage associated bank capital 

constraints. Tailored compression tools 

that are carefully designed to directly 

address the greatest need for 

compression, where portfolio holdings 

have a material impact on available 

capital, can have beneficial effects on 

the market and available liquidity 

especially during periods of volatile 

trading without impacting trading or 

conferring any inappropriate benefits on 

any market participant. 

The proposal’s focus on closing 

positions in SPX options appropriately 

recognizes the role SPX options play as 

major component of the capital impact 

felt by clearing broker-dealers and the 

TPHs for whom they clear, which 

results from the large notional value and 

popularity of SPX options as a 

frequently traded product with large 

open interest. Compression trades are 

unlike arm’s length transactions as their 

sole purpose is to close open positions 

to compress SPX portfolio positions to 

reduce required capital charges. The 

Exchange’s proposal is a narrowlytailored means of doing so and, as a 

result, should facilitate the ability of 

compression participants to provide 

liquidity and trade, especially during 

volatile periods. As such, the 

Exchange’s proposal removes 

impediments to and perfects the 

mechanism of a free and open market 

and a national market system, and, in 

general, protects investors and the 

public interest. 

Further, the mechanics of the 

compression service are reasonably 

designed to provide an objective process 

by which TPHs can avail themselves of 

the ability to potentially compress their 

open SPX positions for capital reduction 

purposes. The proposed process does 

not prioritize any TPH but rather aims 

to find the greatest aggregate capital 

reduction among the SPX options 

submitted for consideration, and honors 

each TPH’s customized risk constraints 

in doing so. Ultimately, however, all 

TPHs selected for participation must 

approve of the compression transaction 

proposed by the Exchange and if any 

one TPH declines the proposed 

transaction then the compression 

transaction for all TPHs will not occur. 

If approved, transactions take place after 

the close of regular trading hours and 

the trades will be reported to OPRA 

with an indicator attached to note they 

are compression trades,28 thus 

providing public transparency of these 

compression trades. 

Accordingly, for the reasons 

discussed above, the Commission finds 

that the proposed rule change, as 

modified by Amendment No. 1, is 

consistent with the Act, including 

Section 6(b)(5) of the Act 29 and the 

rules and regulations thereunder 

applicable to a national securities 

exchange. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as modified by Amendment No. 

1, 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– 

CBOE–2021–020 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–CBOE–2021–020. 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 


lotter on DSK11XQN23PROD with NOTICES1
37200 Federal Register / Vol. 86, No. 132 / Wednesday, July 14, 2021 / Notices 

30 15 U.S.C. 78s(b)(2). 

31 Id. 

32 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 ‘‘Member’’ means an individual or organization 

that is registered with the Exchange pursuant to 

Chapter II of Exchange Rules for purposes of trading 

on the Exchange as an ‘‘Electronic Exchange 

Member’’ or ‘‘Market Maker.’’ Members are deemed 

‘‘members’’ under the Exchange Act. See Exchange 

Rule 100. 

4See https://www.miaxoptions.com/alerts/2021/ 

02/04/miax-options-and-miax-pearl-optionsdeprecation-10g-ll-infrastructure-and. The 

Exchanged issued two subsequent alerts on March 

4, 2021 and March 29, 2021 reminding market 

participants of its intent to decommission 10 Gb 

connectivity in June 2021. See https://

www.miaxoptions.com/alerts/2021/03/04/miaxbusiness 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–CBOE–2021–020, and 

should be submitted on or before 

August 4, 2021. 

V. Accelerated Approval of Proposed 

Rule Change, as Modified by 

Amendment No. 1 

The Commission finds good cause to 

approve the proposed rule change, as 

modified by Amendment No. 1, prior to 

the 30th day after the date of 

publication of notice of the filing of 

Amendment No. 1 in the Federal 

Register. Amendment No. 1 narrowed 

the scope of parts of the proposed rule 

change and also provided additional 

rationale and support for the proposed 

rule change. Specifically, in 

Amendment No. 1, the Exchange: (1) 

Narrowed the list of index options that 

could be compressed to include only 

SPX options and limited the 

compression service to closing positions 

only, (2) expanded eligibility from only 

market makers to all TPHs, (3) added 

detail to the participation requirements 

to ensure that the proposed compression 

service is limited to legitimate 

compression purposes, (4) added further 

detail regarding the proposed 

compression service, and (5) added 

additional justification for the proposed 

rule change. 

The changes to the proposal and 

additional information provided in 

Amendment No. 1 focus the proposal on 

SPX and closing-only positions, expand 

eligibility to the compression service, 

and add necessary detail to the rule text 

to more fully and clearly reflect the 

applicable requirements and describe 

how the compression service will 

operate. Collectively, these changes, 

supported by the additional and 

clarified rationale, better calibrate the 

proposal to the greatest need for 

compression and remove potential 

ambiguity about how the service will 

work without introducing material new 

concepts over the original proposal. The 

changes in Amendment No. 1 assist the 

Commission in evaluating the 

Exchange’s proposal and in determining 

that it is consistent with the Act. 

Accordingly, the Commission finds 

good cause, pursuant to Section 19(b)(2) 

of the Act,30 to approve the proposed 

rule change, as modified by Amendment 

No. 1, on an accelerated basis. 

VI. Conclusion 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,31 that the 

proposed rule change (SR–CBOE–2021– 

020), as modified by Amendment No. 1, 

be, and hereby is, approved on an 

accelerated basis. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.32

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–14901 Filed 7–13–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92348; File No. SR– 

PEARL–2021–28] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the MIAX Pearl 

Options Fee Schedule To Remove 

References and Fees Associated With 

the 10Gb Fiber Connection 

July 8, 2021. 

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 June 28, 

2021, MIAX PEARL, LLC (‘‘MIAX Pearl’’ 

or ‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) a 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 proposes to amend the 

MIAX Pearl Options Fee Schedule (the 

‘‘Fee Schedule’’) to remove text 

pertaining to 10 gigabit (‘‘Gb’’) 

connectivity that will no longer be 

offered by the Exchange and the 

corresponding fees for those services. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/pearl at MIAX Pearl’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 remove references and 

fees for the 10Gb fiber connection for 

Members 3 and non-Members. The 

Exchange will cease offering 10Gb 

connectivity as of July 1, 2021. The 

Exchange will continue to offer 10Gb 

ultra-low latency (‘‘ULL’’) connectivity. 

The Exchange currently offers various 

bandwidth alternatives for connectivity 

to the Exchange, including its primary 

and secondary facilities. These 

connectivity offerings consist of a 1Gb 

fiber connection, a 10Gb fiber 

connection, and a 10Gb ULL fiber 

connection. The Exchange’s MIAX 

Express Network Interconnect (‘‘MENI’’) 

can be configured to provide Members 

and non-Members of the Exchange 

network connectivity to the trading 

platforms, market data systems, test 

systems, and disaster recovery facilities 

of both the Exchange and its affiliate, 

Miami International Securities 

Exchange, LLC (‘‘MIAX’’), via a single, 

shared connection. 

On February 4, 2021, the Exchange 

issued a notice that MIAX Pearl and 

MIAX would decommission the 10Gb 

fiber connection in June 2021.4 This 


lotter on DSK11XQN23PROD with NOTICES1