Document ID: SEC-2015-1123-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Miami International Securities Exchange, LLC
Posted Date: 2015-07-07T04:00Z

[Federal Register Volume 80, Number 129 (Tuesday, July 7, 2015)]
[Notices]
[Pages 38782-38783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16545]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75335; File No. SR-MIAX-2015-43]

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

June 30, 2015.
    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 June 24, 2015, 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.
---------------------------------------------------------------------------

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

I. Self-Regulatory Organization's Statement of the Terms of the 
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/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 the MIAX Options Fee Schedule (the 
``Fee Schedule'') to modify the fees for FIX Ports. Specifically, the 
Exchange proposes to adopt the following fees for FIX Ports: (i) $500 
per month for the first FIX Port; (ii) $300 per month for each FIX Port 
2 through 5; and (iii) $100 per month for each additional FIX Port over 
5.
    Currently, MIAX assesses monthly FIX Port fees on Members based 
upon the number of FIX Ports used by the Member submitting orders to 
the Exchange. The Exchange currently assesses a fee of $250 per month 
for the first FIX Port, $150 per month for each FIX Port 2 through 5; 
and $50 per month for each additional FIX Port over 5. The FIX Ports 
include access to MIAX's primary and secondary data centers and its 
disaster recovery center.
    The Exchange notes that another competing exchange charges 
substantially more for the use of similar ports.\3\ The Exchange 
established the current lower rates in order to encourage additional 
market participants to become Members of the Exchange and use the 
service. Now that the Exchange has grown its market share and 
membership base, the Exchange proposes to modify its fees charged to 
Members for use of FIX Ports in an effort to increase the Exchange's 
revenues from non-transaction fee sources and also more closely align 
the fees with the rates charged by another competing options exchange. 
Accordingly, the Exchange proposes to increase the fees charged to 
Members for use of FIX Ports. Specifically, the Exchange proposes to: 
(i) increase the fee for the first FIX Port, from $250 to $500 per 
month; (ii) increase the fee for each FIX Port 2 through 5, from $150 
to $300 per month; and (iii) increase the fee for each FIX Port over 5, 
from $50 to $100 per month.
---------------------------------------------------------------------------

    \3\ See NASDAQ OMX PHLX LLC (``PHLX'') Pricing Schedule, Section 
VII. PHLX assesses members an Order Entry Port Fee of $650 per month 
per mnemonic.
---------------------------------------------------------------------------

    The Exchange proposes to implement the fee changes beginning July 
1, 2015.
2. Statutory Basis
    The Exchange believes that its proposal to amend its fee schedule 
is consistent with Section 6(b) of the Act \4\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act \5\ in particular, in that 
it is an equitable allocation of reasonable fees and other charges.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that the proposed fees are reasonable, 
equitable and not unfairly discriminatory because Members are free to 
add and remove FIX Ports and will only be charged for the amount of FIX 
Ports that they desire to use. The proposed fee is fair and

[[Page 38783]]

equitable and not unreasonably discriminatory because it applies 
equally to all Members regardless of type. All similarly situated 
Members, with the same number of FIX Ports, will be subject to the same 
fee, and access to the Exchange is offered on terms that are not 
unfairly discriminatory. The Exchange believes that the proposed fees 
are reasonable in that the rates are within the range of that charged 
by another competing options exchange.

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act, as amended. The 
Exchange believes that the proposal increases both intermarket and 
intramarket competition by increasing FIX Port fees for Members on the 
Exchange in the range of comparable fees on another exchange. 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. In such an environment, 
the Exchange must continually adjust its fees to remain competitive 
with other exchanges and in order to attract market participants to use 
its services. The Exchange believes that the proposal reflects this 
competitive environment because it increases the Exchange's fees in a 
manner that continues to encourage market participants to register as 
Members on the Exchange, to provide liquidity, and to attract order 
flow. To the extent that this purpose is achieved, all the Exchange's 
market participants should benefit from the improved market liquidity.

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.\6\ 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------

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-2015-43 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 20549-1090.

All submissions should refer to File Number SR-MIAX-2015-43. 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-2015-43, and should be 
submitted on or before July 28, 2015.
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-16545 Filed 7-6-15; 8:45 am]
BILLING CODE 8011-01-P