76424 Federal Register / Vol. 79, No. 245 / Monday, December 22, 2014 / Notices 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3MIAX initially filed a similar proposal for only 

SPY options on November 25, 2014, and indicated 

in its filing that it would implement the new fee 

on December 1, 2014. See File No. MIAX–2014–60. 

On December 10, 2014, MIAX withdrew that filing 

and submitted this filing. 

4See MIAX Options Fee Schedule, Section 

(1)(a)(ii). 

5The Commission notes that the symbols MIAX 

lists in this sentence refer to the respective 

overlying options class. 

6 Id. 

7The Exchange notes that in a companion filing, 

the Exchange recently filed to add an additional 

marketing fee of $0.12 per contract for Priority 

Customers in EEM, GLD, IWM, QQQ, and SPY 

options posted on the Exchange’s Book. See MIAX– 

2014–62. 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549. 

All submissions should refer to File 

Number SR–MIAX–2014–62. 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– 

2014–62 and should be submitted on or 

before January 12, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29817 Filed 12–19–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73850 ; File No. SR–MIAX– 

2014–63] 

Self-Regulatory Organizations: Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change by Miami 

International Securities Exchange, LLC 

To Amend Its Fee Schedule 

December 16, 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 December 10, 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.3 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 its Fee Schedule. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

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

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 

Fee Schedule to: (i) Adopt a transaction 

fee for options overlying EEM, GLD, 

IWM, QQQ, and SPY executed by nonMIAX Market Makers; and (ii) provide 

an additional incentive for achieving 

certain Priority Customer Rebate 

Program volume tiers. 

The Exchange proposes to adopt a 

$0.55 per contract transaction fee for 

non-MIAX Market Makers for options 

overlying EEM, GLD, IWM, QQQ, and 

SPY. The Exchange notes that the 

transaction fees for non-MIAX Market 

Makers in all other options classes will 

not change and thus will continue to be 

charged the same amount for non-Penny 

Pilot options classes and Penny Pilot 

options classes as they do today. 

The Exchange proposes to offer nonMIAX Market Makers the opportunity to 

reduce transaction fees by $0.02 per 

contract in standard options in EEM, 

GLD, IWM, QQQ, and SPY in the same 

manner as Penny Pilot options classes 

and non-Penny Pilot options classes.4

Specifically, any Member or its affiliates 

of at least 75% common ownership 

between the firms as reflected on each 

firm’s Form BD, Schedule A, that 

qualifies for Priority Customer Rebate 

Program volume tiers 3, 4, or 5 and is 

a non-MIAX Market Maker will be 

assessed $0.53 per contract for standard 

options in EEM, GLD, IWM, QQQ, and 

SPY. The Exchange believes that these 

incentives will encourage non-MIAX 

Market Makers to transact a greater 

number of orders on the Exchange. 

The purpose of the proposed fee 

change is to increase the transaction fee 

for non-MIAX Market Makers in EEM, 

GLD, IWM, QQQ, and SPY 5 so that the 

transaction fees for Market Makers in 

EEM, GLD, IWM, QQQ, and SPY 6

remain lower as compared to non-MIAX 

Market Makers.7 For example, assume 

both member and non-member market 

makers execute against a Priority 

Customer order in SPY posted on the 

Exchange’s book and executes enough 

monthly transaction volume to qualify 

for tier 1 of the Market Maker sliding 

scale: MIAX–MM1 fees = $0.54 [(0.17 

transaction fee) + (0.25 marketing fee) + 

(0.12 posted liquidity marketing fee)] 

and Away-MM2 fees = $0.55. Absent 

this proposal, Away-MM2 would be 

assessed $0.47 per contract which 

would be less than the $0.54 per 

contract of MIAX–MM1. The Exchange 

notes that maintaining this fee 

differential encourages market 

participants to become members and 

register as Market Makers versus 

otherwise sending orders to the 

Exchange as a non-MIAX Market Maker 

in order to avoid a higher transaction 

fee. 

At this time, the Exchange does not 

propose a change in the corresponding 

fees for mini options. Mini options are 

not traded in significant volume across 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 245 / Monday, December 22, 2014 / Notices 76425 

8The Exchange notes that mini options are 

currently listed on SPY, AAPL, GLD, GOOGL, and 

AMZN. If the Exchange were to extend the new 

Marketing Fee to mini options, since there are no 

mini options on EEM, IWM, and QQQ, the 

Exchange would not be able to assess an additional 

marketing fee for mini options in such symbols, but 

instead would be limited to assessing the additional 

fee on SPY and GLD. See SR–MIAX–2014–62. 

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

10 15 U.S.C. 78f(b)(4). 

11The Commission notes that the symbols MIAX 

lists in this sentence refer to the respective 

overlying options class. 

12See MIAX Rules 603, 604, 605. 

13The Commission notes that the symbols MIAX 

lists in this sentence refer to the respective 

overlying options class. 

14 Id. 15 Id. 

the industry and, as such, MIAX does 

not seek to incentivize order routers to 

send such orders to MIAX by extending 

the new marketing fee to posted Priority 

Customer orders in mini options on SPY 

and GLD.8 Thus, the Exchange believes 

it is unnecessary to increase the nonMIAX Market Maker transaction fee in 

mini options since there is no 

corresponding change in the marketing 

fees in mini options to compensate for. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its fee schedule is 

consistent with Section 6(b) of the Act 9

in general, and furthers the objectives of 

Section 6(b)(4) of the Act 10 in 

particular, in that it is an equitable 

allocation of reasonable fees and other 

charges among Exchange members. 

The Exchange’s proposed transaction 

fees for non-MIAX Market Makers in 

EEM, GLD, IWM, QQQ, and SPY 11 are 

reasonable in order for the net 

transaction fee for non-MIAX Market 

Makers to remain higher than Market 

Makers in a manner that is designed to 

encourage market participants to 

become members and register as Market 

Makers versus otherwise sending orders 

to the Exchange as a non-MIAX Market 

Maker in order to avoid a higher 

transaction fee. The Exchange’s 

proposal to increase the transaction fees 

for non-MIAX Market Makers in options 

overlying EEM, GLD, IWM, QQQ, and 

SPY is equitable and not unfairly 

discriminatory because the increase 

applies equally to all non-MIAX Market 

Makers. In addition, maintaining a 

higher transaction fee for non-MIAX 

Market Makers versus Market Markers is 

equitable and not unfairly 

discriminatory because Market Markers 

on the Exchange have enhanced quoting 

obligations measured in both quantity 

(% time) and quality (minimum bid-ask 

differentials) that other market 

participants do not have.12 In addition, 

charging non-members higher 

transaction fees is a common practice 

amongst exchanges because Members 

are subject to other fees and dues 

associated with their membership to the 

Exchange that do not apply to nonmembers. The proposed differentiation 

as between non-MIAX Market Makers, 

Market Makers, and other market 

participants recognizes the differing 

contributions made to the liquidity and 

trading environment on the Exchange by 

these market participants. Maintaining a 

lower transaction fee for Market Makers 

should incent market participants and 

market makers on other exchanges to 

register as Market Makers on the 

Exchange, which will enhance the 

quality of quoting and increase the 

volume of contracts traded in options 

listed on MIAX. To the extent that this 

purpose is achieved, all the Exchange’s 

market participants should benefit from 

the improved market liquidity. 

Enhanced market quality and increased 

transaction volume that results from the 

increase in Market Maker activity on the 

Exchange will benefit all market 

participants and improve competition 

on the Exchange. 

The Exchange’s proposal to offer nonMIAX Market Makers the opportunity to 

reduce transaction fees by $0.02 per 

contract in standard options in EEM, 

GLD, IWM, QQQ, and SPY in the same 

manner as Penny Pilot options classes 

and non-Penny Pilot options classes, 

provided certain criteria are met, is 

reasonable because the Exchange desires 

to offer all such market participants an 

opportunity to lower their transaction 

fees. The Exchange’s proposal to offer 

non-MIAX Market Makers the 

opportunity to reduce transaction fees 

by $0.02 per contract in standard 

options in EEM, GLD, IWM, QQQ, and 

SPY, provided certain criteria are met, 

is equitable and not unfairly 

discriminatory because the Exchange 

will offer all non-MIAX Market Makers 

in EEM, GLD, IWM, QQQ, and SPY 13 a 

means to reduce transaction fees by 

qualifying for volume tiers in the 

Priority Customer Rebate Program. The 

Exchange believes that offering nonMIAX Market Makers that transaction 

[sic] in EEM, GLD, IWM, QQQ, and 

SPY 14 the same opportunity as nonMIAX Maker Makers in other options 

classes, to lower transaction fees by 

incentivizing them to transact Priority 

Customer order flow, in turn benefits all 

market participants. 

The Exchange believes that 

establishing different pricing for EEM, 

GLD, IWM, QQQ, and SPY options and 

Penny Pilot options is reasonable, 

equitable, and not unfairly 

discriminatory because EEM, GLD, 

IWM, and SPY options are more liquid 

options as compared to other Penny 

Pilot options and the Exchange wants to 

incentivize to encourage market 

participants to become members and 

register as Market Makers versus 

otherwise sending orders to the 

Exchange as a non-MIAX Market Maker 

in order to avoid a higher transaction fee 

in these high volume symbols. Finally, 

the Exchange believes that the proposal 

to assess a higher transaction fee for 

standard transactions and not mini 

options is reasonable because of the lack 

of significant volume and limited 

demand in the industry to trade mini 

options and also because there is no 

corresponding change in the marketing 

fees in mini options in these symbols to 

compensate for. 

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 proposal 

is designed to maintain Market Maker 

transaction fees in EEM, GLD, IWM, 

QQQ, and SPY 15 that are lower than 

non-MIAX Market Makers. To the extent 

that there is additional competitive 

burden on non-MIAX Market Makers, 

the Exchange believes that this is 

appropriate because charging nonmembers higher transaction fees is a 

common practice amongst exchanges 

and Members are subject to other fees 

and dues associated with their 

membership to the Exchange that do not 

apply to non-members. The proposed 

differentiation as between non-MIAX 

Market Makers, Market Makers, and 

other market participants recognizes the 

differing contributions made to the 

liquidity and trading environment on 

the Exchange by these market 

participants. Maintaining a lower 

transaction fee for Market Makers 

should incent market participants and 

market makers on other exchanges to 

register as Market Makers on the 

Exchange, which will enhance the 

quality of quoting and increase the 

volume of contracts traded in options 

listed on MIAX. To the extent that this 

purpose is achieved, all the Exchange’s 

market participants should benefit from 

the improved market liquidity. 

Enhanced market quality and increased 

transaction volume that results from the 

anticipated increase in order flow 

directed to the Exchange will benefit all 

market participants and improve 

competition on the Exchange. The 

Exchange notes that it operates in a 


tkelley on DSK3SPTVN1PROD with NOTICES
76426 Federal Register / Vol. 79, No. 245 / Monday, December 22, 2014 / Notices 

16 15 U.S.C. 78s(b)(3)(A)(ii). 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 67672 

(August 15, 2012), 77 FR 50750 (August 22, 2012). 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and to attract order flow. The 

Exchange believes that the proposal 

reflects this competitive environment. 

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.16 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–2014–63 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–2014–63. 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– 

2014–63 and should be submitted on or 

before January 12, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29819 Filed 12–19–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73847; File No. SR– 

NYSEMKT–2014–106] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Commentary 

.07 to Rule 904 To Extend the Pilot 

Program That Eliminated the Position 

Limits for Options on SPDR S&P 500 

ETF 

December 16, 2014. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

12, 2014, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

Commentary .07 to Rule 904 to extend 

the pilot program that eliminated the 

position limits for options on SPDR S&P 

500 ETF (‘‘SPY’’) (‘‘SPY Pilot Program’’). 

The text of the proposed rule change is 

available on the Exchange’s Web site at 

www.nyse.com, at the principal office of 

the Exchange, 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 

self-regulatory organization 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 those 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 parts 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 

Commentary .07 to Rule 904 to extend 

the time period of the SPY Pilot 

Program,3 which is currently scheduled 

to expire on December 15, 2014, through 

July 12, 2015. 

This filing does not propose any 

substantive changes to the SPY Pilot 

Program. In proposing to extend the 

SPY Pilot Program, the Exchange 

reaffirms its consideration of several 

factors that supported the original 

proposal of the SPY Pilot Program, 

including (1) the availability of 

economically equivalent products and 

their respective position limits, (2) the 

liquidity of the option and the 

underlying security, (3) the market 

capitalization of the underlying security 

and the related index, (4) the reporting 

of large positions and requirements 

surrounding margin, and (5) the 

potential for market on close volatility. 


tkelley on DSK3SPTVN1PROD with NOTICES