Document ID: SEC-2019-1090-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: MIAX Emerald, LLC
Posted Date: 2019-07-31T04:00Z

[Federal Register Volume 84, Number 147 (Wednesday, July 31, 2019)]
[Notices]
[Pages 37371-37372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16217]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86471; File No. SR-EMERALD-2019-26]

Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Make 
Corrective Edits to Exchange Rule 503, Openings on the Exchange

July 25, 2019.
    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 July 16, 2019, MIAX Emerald, LLC (``MIAX 
Emerald'' 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.
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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 Exchange Rule 503, 
Openings on the Exchange, to make minor non-substantive corrective 
edits to the rule text.
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings/emerald at MIAX 
Emerald'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 Exchange Rule 503, Openings on the 
Exchange, to make minor non-substantive corrective edits to the rule 
text. Currently, subsection (b) of Exchange Rule 503 provides as 
follows:
    The procedure described in this Rule will be used to reopen an 
option class after a trading halt. The order types that may participate 
in the opening process are set forth in Rule 516 (the ``Opening 
Process''). Post-Only OQs may participate in the Opening Process, 
however, the Post-Only instruction will be ignored for Post-Only OQs 
that participate in the Opening Process.
    The Exchange proposes to relocate the parenthetical ``(the 
``Opening Process'')'' from the end of the second sentence in 
subsection (b) to immediately follow the first time the lowercased 
words ``opening process'' appear in that subsection. This is because 
the term ``Opening Process'' is a capitalized, defined term that is 
used throughout the rest of the rule text. Further, Exchange Rule 516 
is titled ``Order Types Defined,'' and is not the correct rule citation 
for the Opening Process. Accordingly, because it is not the correct 
title for the citation to Exchange Rule 516, the Exchange also proposes 
to relocate the parenthetical ``(the ``Opening Process'')'' from the 
end of the second sentence of subsection (b) and replace it with the 
correct text for the title of Exchange Rule 516, Order Types Defined. 
With the proposed changes, subsection (b) will provide as follows:

[[Page 37372]]

    The procedure described in this Rule will be used to reopen an 
option class after a trading halt. The order types that may participate 
in the opening process (the ``Opening Process'') are set forth in Rule 
516, Order Types Defined. Post-Only OQs may participate in the Opening 
Process, however, the Post-Only instruction will be ignored for Post-
Only OQs that participate in the Opening Process.
    The Exchange does not propose to make any further changes or 
substantive changes.
2. Statutory Basis
    The Exchange believes that its proposed rule change is consistent 
with Section 6(b) of the Act \3\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \4\ 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.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes its proposal to relocate the parenthetical 
``(the ``Opening Process'')'' from the end of the second sentence in 
subsection (b) of Exchange Rule 503 and then replace the citation to 
Exchange Rule 516 with the correct title, removes impediments to and 
perfects the mechanisms of a free and open market by providing an 
accurate citation to Exchange Rule 516 and accurately defining a 
capitalized term throughout the Exchange's rulebook. The Exchange 
believes clarity and transparency benefits investors and the public and 
allows investors and the public to make informed decisions regarding 
the submission of orders to the Exchange and eliminates the potential 
for confusion.

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 Exchange does not believe 
that the proposed rule change will impose any burden on inter-market 
competition as the proposed rule changes make minor, non-substantive 
corrective edits to the rule text and clarify a citation in Exchange 
Rule 503 to Exchange Rule 516, as well as to the defined term, the 
``Opening Process.''
    Additionally, the Exchange does not believe that the proposed rule 
change will impose any burden on intra-market competition as the 
proposed changes affect all market participants equally, and only seek 
to clarify an incorrect citation in the Exchange's rulebook and 
capitalize a defined term. The Exchange does not believe that the 
proposed changes impose a burden on intra-market competition as the 
proposed changes are designed to provide clarity in the Exchange's 
rules and are not intended to influence competition among Members or 
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

    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 \5\ and Rule 19b-4(f)(6) \6\ 
thereunder.
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    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 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.
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    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-EMERALD-2019-26 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-EMERALD-2019-26. 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-EMERALD-2019-26 and should be submitted 
on or before August 21, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-16217 Filed 7-30-19; 8:45 am]
 BILLING CODE 8011-01-P