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 


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Federal Register / Vol. 86, No. 132 / Wednesday, July 14, 2021 / Notices 37201 

options-and-miax-pearl-options-reminder-andupdates-deprecation-10g-ll and https:// 

www.miaxoptions.com/alerts/2021/03/29/miaxoptions-and-miax-pearl-options-3rd-reminderdeprecation-10g-ll. 

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

6 15 U.S.C. 78f(b)(4) and (5). 

7See supra note 4. 8The Exchange notes that no Member or nonMember transferred from the 10Gb connection to a 

1Gb connection and no Member or non-Member 

disconnected from the Exchange. 9See Exchange Rule 210. 

means that all Members and nonMembers utilizing the 10Gb fiber 

connection would have to migrate their 

connections to either the 1Gb fiber 

connection or the 10Gb ULL fiber 

connection. Members and non-Members 

utilizing the 10Gb fiber connection 

could perform the migration from April 

12, 2021 until June 30, 2021. 

The Exchange now proposes to amend 

the Fee Schedule to remove references 

and fees associated with the 10Gb fiber 

connection. The Exchange proposes to 

remove the references to the 10Gb fiber 

connection from the tables in Sections 

4)c)–d) of the Fee Schedule, which are 

related to Member and non-Member 

network connectivity testing and 

certification fees. The Exchange will 

continue to offer the 10 Gb ULL 

connection and does not propose to 

amend the fees for Member and nonMember network connectivity testing 

and certification. The Exchange also 

proposes to amend the tables in 

Sections 5)a)–b) of the Fee Schedule, 

related to Member and non-Member 

monthly network connectivity fees, to 

remove the fee columns for the 10Gb 

fiber connection. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Fee Schedule is 

consistent with Section 6(b) of the Act 5

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 6 in particular, 

in that it is an equitable allocation of 

reasonable fees and other charges among 

its members and issuers and other 

persons using its facilities. The 

Exchange also believes the proposal 

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

of the Act in that it is designed 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, in general to protect 

investors and the public interest and is 

not designed to permit unfair 

discrimination between customers, 

issuers, brokers and dealers. 

The Exchange believes the 

elimination of the 10Gb fiber connection 

fee and related rule text is reasonable 

because the Exchange will no longer 

offer this functionality as of July 1, 

2021, thus making the fees irrelevant 

going forward. The Exchange notes that, 

because the 10Gb fiber connection is 

outdated technology and that Members 

and non-Members have other 

connectivity options, the Exchange 

planned to phase out this connectivity 

service in its entirety on or before July 

1, 2021.7

The Exchange believes the proposed 

change is reasonable, equitably 

allocated and not unfairly 

discriminatory because the Exchange 

has experienced a steady decrease in the 

number of Members and non-Members 

that purchase the 10Gb connection over 

the past few years. Further, as a 

consequence of more firms choosing to 

purchase the 10Gb ULL connection over 

the 10Gb connection, the Exchange 

believes that, if it did not decommission 

the 10Gb connections, it would be 

unable to provide the current level of 

support to those firms that have such 

connections. The Exchange notes that 

from the time the Exchange initially 

issued its notice that it would 

decommission the 10Gb connection to 

now, 11 Members and 2 non-Members 

migrated their 10Gb connections to 

10Gb ULL connections.8 The Exchange 

also believes the proposed changes are 

reasonable as the Exchange provided 

Members and non-Members six months’ 

notice that the Exchange planned to 

make these changes. During that time, 

Members and non-Members had the 

ability to make the business decision to: 

(1) Switch to the Exchange’s 1Gb or 

10Gb ULL connections; (2) access the 

Exchange through another Exchange 

Member as a Sponsored User; 9 or (3) no 

longer access the Exchange. Market 

participants can also choose from 15 

competing options markets. In the event 

that a market participant views the 

Exchange’s connectivity and access fees 

as more or less attractive than 

competing markets, that market 

participant can choose to connect to the 

Exchange indirectly or may choose not 

to connect to the Exchange and connect 

instead to one or more of the other 15 

options markets. 

Further, the Exchange notes that there 

is no regulatory or legal requirement for 

any Member or non-Member to connect 

to the Exchange. It is a business 

decision of each Member and nonMember whether to connect to the 

Exchange and, if so, whether to connect 

via 1Gb, 10Gb, or 10Gb ULL connection. 

The Exchange believes the proposed 

rule change to remove the fees and rule 

text related to the 10Gb fiber connection 

is reasonable as the Exchange has 

observed a minimal amount of Members 

and non-Members utilize the 10Gb fiber 

connection and, therefore, the 

continuation of this connectivity 

alternative does not warrant the 

infrastructure and ongoing Systems 

maintenance required to support this 

connectivity alternative. The Exchange 

notes that its affiliate, MIAX Emerald, 

LLC (‘‘MIAX Emerald’’), never offered 

the 10Gb fiber connection as a 

connectivity alternative. The Exchange 

believes that the proposed rule change 

is equitable and not unfairly 

discriminatory because the Exchange 

will no longer offer the 10Gb connection 

to all Members and non-Members while 

continuing to offer both 1Gb and 10Gb 

ULL connectivity to all. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed changes eliminate the fees and 

related rule text that apply to the 10Gb 

fiber connection, which the Exchange 

will no longer offer as of July 1, 2021. 

As noted above, while there are a very 

small number of Members and nonMembers that utilized the 10Gb fiber 

connection, Members and non-Members 

are not required to utilize this 

connectivity alternative. As discussed 

above, decommissioning of the 10Gb 

connection should have minimal to no 

impact on Members and non-Members 

as those Members that utilize a 10Gb 

connection have other means to access 

the Exchange, either by to transitioning 

to the 1Gb or 10Gb ULL connection, or 

access the Exchange through a 

Sponsored User. Accordingly, the 

Exchange does not believe that its 

proposal imposes any burden on intramarket competition, or places certain 

market participants at a relative 

disadvantage compared to other market 

participants. 

In terms of inter-market competition, 

the Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges. Because competitors are free 

to modify their own fees in response, 

the Exchange believes that the degree to 

which fee changes in this market may 

impose any burden on competition is 

extremely limited. 


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37202 Federal Register / Vol. 86, No. 132 / Wednesday, July 14, 2021 / Notices 

10 15 U.S.C. 78s(b)(3)(A). 

11 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 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. 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The 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. 

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 for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to 19(b)(3)(A) 

of the Act 10 and Rule 19b–4(f)(6) 11

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– 

PEARL–2021–28 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–PEARL–2021–28. 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–PEARL–2021–28 and 

should be submitted on or before 

August 4, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–14904 Filed 7–13–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92351; File No. SR–MIAX– 

2021–27] 

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 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, Miami International Securities 

Exchange, LLC (‘‘MIAX Options’’ 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 is filing a proposal to 

amend the MIAX 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/ at MIAX Options’ 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 


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