Document ID: SEC-2017-1834-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Miami International Securities Exchange, LLC
Posted Date: 2017-11-08T05:00Z

[Federal Register Volume 82, Number 215 (Wednesday, November 8, 2017)]
[Notices]
[Pages 51897-51899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24252]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81998; File No. SR-MIAX-2017-45]

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

November 2, 2017.
    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 October 30, 2017, Miami International Securities Exchange LLC 
(``MIAX Options'' or ``Exchange'') filed with the Securities and 
Exchange Commission (``Commission'') the 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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/rule-filings, 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 list of MIAX Select Symbols \3\ 
contained in the Priority Customer Rebate Program (the ``Program'') \4\ 
of the Exchange's Fee Schedule to 1. delete the symbol ``SUNE'' 
associated with SunEdison, Inc. (``SunEdison'') and 2. replace the 
symbol ``BBRY'' with ``BB'' associated with BlackBerry Limited 
(``BlackBerry'').
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    \3\ The term ``MIAX Select Symbols'' means options overlying 
AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BBRY, BIDU, BP, C, CAT, 
CBS, CELG, CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, 
GOOGL, GPRO, HAL, HTZ, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, 
NFLX, NOK, NQ, ORCL, PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, SUNE, T, 
TSLA, USO, VALE, VXX, WBA, WFC, WMB, WY, X, XHB, XLE, XLF, XLP, XOM, 
and XOP.
    \4\ See section 1)a)iii) of the Fee Schedule for a complete 
description of the Program.
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    The Exchange initially created the list of MIAX Select Symbols on 
March 1, 2014,\5\ and has added and removed option classes from that 
list since that

[[Page 51898]]

time.\6\ On April 26, 2016, the New York Stock Exchange announced that 
it was delisting SunEdison since it was no longer suitable for listing. 
SunEdison had announced on the same day that it and certain of its 
domestic and international subsidiaries had filed voluntary petitions 
for reorganization under Chapter 11 of the U.S. Bankruptcy Code.\7\
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    \5\ See Securities Exchange Act Release No. 71700 (March 12, 
2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
    \6\ See Securities Exchange Act Release Nos. 8109 (June 26, 
2017), 82 FR 29962 (June 30, 2017) (SR-MIAX-2017-29); 79301 
(November 14, 2016), 81 FR 81854 (November 18, 2016) (SR-MIAX-2016-
42); 74291(February 18, 2015), 80 FR 9841 (February 24, 2015) (SR-
MIAX-2015-09); 74288 (February 18, 2015), 80 FR 9837 (February 24, 
2015) (SR-MIAX-2015-08); 73328 (October 9, 2014), 79 FR 62230 
(October 16, 2014) (SR-MIAX-2014-50); 72567 (July 8, 2014), 79 FR 
40818 (July 14, 2014) (SR-MIAX-2014-34); 72356 (June 10, 2014), 79 
FR 34384 (June 16, 2014) (SR-MIAX-2014-26); 71700 (March 12, 2014), 
79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
    \7\ See the press release located at http://ir.theice.com/press/press-releases/nyse-regulation/2016/042116suspensionrelease.
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    As a result, the Exchange delisted SunEdison options. Accordingly, 
the Exchange is amending its Fee Schedule to delete the symbol SUNE 
from the list of MIAX Select Symbols contained in the Program to 
correspond with the delisting. This amendment is intended to eliminate 
any potential confusion and to make it clear to market participants 
that SunEdison will not be a MIAX Select Symbol contained in the 
Program as SunEdison options are no longer listed on the Exchange.
    BlackBerry recently announced that it was transferring its listing 
from the Nasdaq Global Select Market to the New York Stock Exchange 
and, as a result, BlackBerry changed its symbol from ``BBRY'' and is 
now trading under the new symbol ``BB'' effective October 16, 2017.\8\ 
The Exchange is amending its Fee Schedule to change BlackBerry's symbol 
in the MIAX Select Symbols from ``BBRY'' to ``BB'' to correspond with 
this change. This amendment is designed to ensure that there is no 
confusion amongst market participants that BlackBerry, under its new 
ticker, will continue to remain in the MIAX Selected Symbols.
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    \8\ See the press release located at https://us.blackberry.com/company/newsroom/press?id=21b4315.
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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 that it is an 
equitable allocation of reasonable fees and other charges among 
Exchange members and other persons using its facilities, and 6(b)(5) of 
the Act,\11\ 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.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
    \11\ 15 U.S.C. 78f(b)(1) and (b)(5).
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    In particular, the proposal to delete the symbol SUNE from the list 
of MIAX Select Symbols contained in the Program and to change the 
symbol from BBRY to BB is consistent with Section 6(b)(4) of the Act 
because the proposed changes will allow for continued benefit to 
investors by providing them an updated list of MIAX Select Symbols 
contained in the Program on the Fee Schedule. In particular, the 
proposal to change the BlackBerry symbol to its new designation is 
consistent with the Act because the proposed change is merely updating 
the corresponding symbol to allow for BlackBerry to continue to remain 
in the MIAX Select Symbols.
    The Exchange believes that the proposal to amend an option class 
that qualifies for the credit for transactions in MIAX Select Symbols 
is fair, equitable and not unreasonably discriminatory. The Exchange 
believes that the Program itself is reasonably designed because it 
incentivizes providers of Priority Customer \12\ order flow to send 
that Priority Customer order flow to the Exchange in order to receive a 
credit in a manner that enables the Exchange to improve its overall 
competitiveness and strengthen its market quality for all market 
participants. The Program, which provides increased incentives in 
certain tiers in high volume select symbols, is also reasonably 
designed to increase the competitiveness of the Exchange with other 
options exchanges that also offer increased incentives to higher volume 
symbols.
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    \12\ The term ``Priority Customer'' means a person or entity 
that 1. is not a broker or dealer in securities, and 2. does not 
place more than 390 orders in listed options per day on average 
during a calendar month for its own beneficial account(s). See 
Exchange Rule 100.
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    The Exchange also believes that its proposal is consistent with 
Section 6(b)(5) of the Act because it will apply equally to all 
Priority Customer orders in MIAX Select Symbols in the Program. All 
similarly situated Priority Customer orders in MIAX Select Symbols are 
subject to the same rebate schedule, and access to the Exchange is 
offered on terms that are not unfairly discriminatory.

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. The proposed 
rule change is a not a competitive filing but rather is designed to 
update the list of MIAX Select Symbols contained in the Program in 
order to avoid potential confusion on the part of market participants.

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,\13\ and Rule 19b-4(f)(2) \14\ 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.
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    \13\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \14\ 17 CFR 240.19b-4(f)(2).
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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 [email protected]. Please include 
File Number SR-MIAX-2017-45 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.

[[Page 51899]]

All submissions should refer to File Number SR-MIAX-2017-45. 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 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-MIAX-2017-45 and should be 
submitted on or before November 29, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24252 Filed 11-7-17; 8:45 am]
 BILLING CODE 8011-01-P