64642 Federal Register / Vol. 79, No. 210 / Thursday, October 30, 2014 / Notices 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6)(iii). As required under 

Rule 19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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. 

11For 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). 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Program. The proposed rule change 

allows for an extension of the Program 

for the benefit of market participants. 

Additionally, the Exchange believes that 

there is demand for the expirations 

offered under the Program and believes 

that that EOWs and EOMs will continue 

to provide the investing public and 

other market participants increased 

opportunities to better manage their risk 

exposure. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Specifically, 

the Exchange believes that, by extending 

the expiration of the Program, the 

proposed rule change will allow for 

further analysis of the Program and a 

determination of how the Program shall 

be structured in the future. In doing so, 

the proposed rule change will also serve 

to promote regulatory clarity and 

consistency, thereby reducing burdens 

on the marketplace and facilitating 

investor protection. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the 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 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) 

of the Act 9 and Rule 19b–4(f)(6)(iii) 

thereunder.10

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest, as it 

will allow the pilot program to continue 

uninterrupted, thereby avoiding 

investor confusion that could result 

from a temporary interruption in the 

pilot program. For this reason, the 

Commission designates the proposed 

rule change to be operative upon 

filing.11

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– 

CBOE–2014–079 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–2014–079. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room at 100 F Street NE., 

Washington, DC 20549–1090 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–CBOE– 

2014–079 and should be submitted on 

or before November 20, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–25779 Filed 10–29–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73425; File No. SR–MIAX– 

2014–55] 

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 

October 24, 2014. 

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 October 16, 2014, 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, 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’’). 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.miaxoptions.com/filter/


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 210 / Thursday, October 30, 2014 / Notices 64643 

3The proposal is based on a substantially similar 

filing by the Chicago Board Options Exchange, 

Incorporated. See Securities Exchange Act Release 

No. 68131 (November 1, 2012), 77 FR 67032 

(November 8, 2012) (SR–CBOE–2012–101). 

4See MIAX Options Fee Schedule, Section (1)(b), 

entitled Marketing Fee for more detail regarding the 

marketing fee. 

5See CBOE Fees Schedule, fn. 6; NASDAQ OMX 

Phlx, LLC (‘‘Phlx’’) Pricing Schedule, section on 

Payment for Order Flow Fee; NYSE Amex Options 

Fee Schedule, fn. 10; International Securities 

Exchange, LLC (‘‘ISE’’) Schedule of Fees, Section 

IV(D)[sic]. None of which contain requirements that 

a PLMM or LMM (or similar position) have an 

appointment in the class in which a Directed Order 

(or similar order type) is received and executed nor 

the additional requirement of a minimum number 

of options class appointments in order to have 

access to the marketing fee funds generated from 

that Preferred order. 

6See id. 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78f(b)(4). 

wotitle/rule_filing, at MIAX’s principal 

office, and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

marketing fee.3 The marketing fee is 

assessed on certain transactions of all 

Market Makers.4 The funds collected via 

this marketing fee are then put into 

pools controlled by Primary Lead 

Market Makers (‘‘PLMMs’’) and LMMs. 

The PLMM or LMM controlling a 

certain pool of funds can then 

determine the Electronic Exchange 

Member(s) (‘‘EEM’’) to which the funds 

should be directed in order to encourage 

such EEM(s) to send orders to the 

Exchange. In accordance with Exchange 

Rule 514, an EEM can designate an 

order (‘‘Directed Order’’) to a specific 

LMM. 

Currently, Section (1)(b) of the Fee 

Schedule, provides that to qualify for a 

marketing fee allocation for an 

applicable month, an LMM must either: 

(i) Have an appointment in the relevant 

option class at the time of being directed 

the order; or (ii) for the month preceding 

the applicable month (the ‘‘qualifying 

month’’) have an appointment as an 

LMM for at least ten (10) trading days 

in a minimum of fifty percent (50%) of 

the option classes listed on the 

Exchange for the entire qualifying 

month. For non-directed orders and 

orders directed to non-qualifying LMMs, 

applicable Marketing Fees are allocated 

to the PLMM’s Marketing Fee ‘‘pool.’’ 

All Market Makers that participated in 

such transactions will pay the 

applicable Marketing Fee to the 

Exchange, which will allocate such 

funds to the Member that controls the 

distribution of the Marketing Fee 

‘‘pool.’’ Each month the Member will 

submit written instructions to MIAX 

describing how MIAX is to distribute 

the Marketing Fees in the ‘‘pool’’ to 

Electronic Exchange Members identified 

by the Member. 

However, other options exchanges 

allow an LMM (or similar position) to 

have access to the marketing fee funds 

generated from a Directed Order (or 

similar order type) regardless of whether 

the LMM has an appointment in a class 

in which the Directed Order is received 

and executed without the additional 

requirement for an LMM to have at least 

ten (10) trading days in a minimum of 

fifty percent (50%) of the option classes 

listed on the Exchange for the entire 

qualifying month.5 The Exchange now 

proposes to remove this additional 

requirement so that its marketing fee 

program operates in a manner more 

similar to that of competing options 

exchanges that offer similar programs. 

The Exchange proposes amending the 

Fee Schedule to allow LMMs to receive 

an allocation of marketing fees 

generated by Directed Orders sent to the 

LMM without any additional 

requirements. Specifically, the 

Exchange proposes to remove the 

requirements that provide that an LLM, 

in order to qualify to be allocated 

Marketing Fees for Directed Orders for 

an applicable month, must either: (i) 

Have an appointment in the relevant 

option class at the time of being directed 

the order; or (ii) for the month preceding 

the applicable month (the ‘‘qualifying 

month’’) have an appointment as an 

LMM for at least ten (10) trading days 

in a minimum of fifty percent (50%) of 

the option classes listed on the 

Exchange for the entire qualifying 

month. The proposed changes will more 

closely align the Exchange’s marketing 

fee program with the requirements of 

other competing exchanges that offer 

similar programs.6

Permitting LMMs to be allocated 

marketing fees generated from a 

Directed Order without these additional 

requirements would allow LMMs to 

encourage greater order flow to be sent 

to the Exchange. This increased order 

flow would benefit all market 

participants on the Exchange, such as 

customers with resting orders on the 

Exchange and LMMs that have an 

appointment and quote in the relevant 

option. Allowing LMMs to be allocated 

marketing fees generated from a 

Directed Order in the manner that is 

proposed would provide LMMs with an 

incentive to encourage the routing of 

order flow into classes in which the 

LMM otherwise would not. Further, the 

proposal will also provide LMMs with 

more flexibility to determine which 

classes that they choose to be appointed 

in and still receive payment for order 

flow without the restrictive criteria; as 

they will not have to be concerned with 

whether or not they have met the 

minimum class appointment threshold 

prior to making arrangements to paying 

for order flow in a specific class. 

The proposed fee changes are to take 

effect on November 1, 2014. 

2. Statutory Basis 

MIAX believes that its proposed rule 

change is consistent with Section 6(b) of 

the Act 7 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 8

in particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, to remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. 

The Exchange believes that this 

proposal to remove a requirement that 

other exchanges do not share, perfects 

the mechanism for a free and open 

market and a national market system by 

allowing the Exchange’s marketing fee 

program to operate in a manner similar 

to competing options exchanges. In 

addition, the proposal promotes just and 

equitable principles of trade by 

encouraging greater order flow to be 

sent to the Exchange through Directed 

Orders in a manner that will benefit all 

market participants on the Exchange. 

The Exchange also believes that the 

proposed changes to the marketing fee 

is consistent with Section 6(b)(4) of the 

Act 9 which provides that Exchange 


tkelley on DSK3SPTVN1PROD with NOTICES
64644 Federal Register / Vol. 79, No. 210 / Thursday, October 30, 2014 / Notices 

10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 200.30–3(a)(12). 

rules may provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

other persons using its facilities. The 

proposed change is reasonable because 

it will allow LMMs greater access to 

marketing fee funds. The proposed 

change is equitable and not unfairly 

discriminatory because it is designed to 

allow LMMs to encourage greater order 

flow to be sent to the Exchange. A LMM 

could be able to amass a greater pool of 

funds with which to use to incent order 

flow providers to send order flow to the 

Exchange. This increased order flow 

would benefit all market participants on 

the Exchange. Further, allowing 

additional LMMs to access marketing 

fee funds generated from a Directed 

Order would provide LMMs with an 

incentive to encourage the routing of 

order flow into classes in which the 

LMM otherwise would not. 

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 rule change would place the 

Exchange on equal footing as other 

exchanges that allow their LMM 

equivalents to be allocated marketing 

fees generated by Directed Orders. The 

Exchange believes that such an even 

playing field will promote competition 

among options exchanges. The 

Exchange notes that it operates in a 

highly competitive market in which 

market participants can readily direct 

order flow to competing venues who 

offer similar fee structures. Many 

competing venues offer similar fee 

structures to market participants. To 

this end, the Exchange is proposing a 

market enhancement to encourage 

market participants to trade on the 

Exchange. The Exchange believes the 

proposed rule change is procompetitive 

because it would enable the Exchange to 

provide member organizations with a 

fee structure that is similar to that of 

other exchanges. 

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.10 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–2014–55 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549. 

All submissions should refer to File 

Number SR–MIAX–2014–55. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–MIAX– 

2014–55 and should be submitted on or 

before November 20, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–25780 Filed 10–29–14; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Reporting and Recordkeeping 

Requirements Under OMB Review 

AGENCY: Small Business Administration. 

ACTION: 30-Day notice. 

SUMMARY: The Small Business 

Administration (SBA) is publishing this 

notice to comply with requirements of 

the Paperwork Reduction Act (PRA) (44 

U.S.C. Chapter 35), which requires 

agencies to submit proposed reporting 

and recordkeeping requirements to 

OMB for review and approval, and to 

publish a notice in the Federal Register 

notifying the public that the agency has 

made such a submission. This notice 

also allows an additional 30 days for 

public comments. 

DATES: Submit comments on or before 

December 1, 2014. 

ADDRESSES: Comments should refer to 

the information collection by name and/ 

or OMB Control Number and should be 

sent to: Agency Clearance Officer, Curtis 

Rich, Small Business Administration, 

409 3rd Street SW., 5th Floor, 

Washington, DC 20416; and SBA Desk 

Officer, Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, New 

Executive Office Building, Washington, 

DC 20503. 

FOR FURTHER INFORMATION CONTACT: 

Curtis Rich, Agency Clearance Officer, 

(202) 205–7030 curtis.rich@sba.gov 

Copies: A copy of the Form OMB 83– 

1, supporting statement, and other 

documents submitted to OMB for 

review may be obtained from the 

Agency Clearance Officer. 

SUPPLEMENTARY INFORMATION: The Small 

Business Investment Act authorizes 

SBA to guarantee a debenture issued by 

a Certified Development Company 

(CDC). The proceeds from each 


tkelley on DSK3SPTVN1PROD with NOTICES