Document ID: SEC-2016-0106-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Miami International Securities Exchange, LLC
Posted Date: 2016-01-20T05:00Z

[Federal Register Volume 81, Number 12 (Wednesday, January 20, 2016)]
[Notices]
[Pages 3206-3207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-00971]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76892; File No. SR-MIAX-2016-01]

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

January 13, 2016.
    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 January 12, 2016, 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.
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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 (``Fee Schedule'') to eliminate certain Web CRD Fees which 
relate to Series 56 and will no longer apply from and after January 4, 
2016 and to include certain Web CRD Fees which relate to Series 57 and 
Web-based delivery of continuing education that will apply from and 
after January 4, 2016.
    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 purpose of the proposed rule change is to amend the Fee 
Schedule to delete the Continuing Education Fees and the Qualification 
Examination Fee which relate to the Series 56 registration category 
under the Regulatory Fees section of the Fee Schedule. The Financial 
Industry Regulatory Authority (``FINRA'') is retiring the Proprietary 
Traders Qualification Examination (Series 56) and the S501 Proprietary 
Traders Continuing Education Program and replacing them with the 
Securities Trader Qualification Examination (Series 57) and the S101 
Continuing Education Program, including via Web-based delivery.\3\
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    \3\ See Securities Exchange Act Release Nos. 75783 (August 28, 
2015), 80 FR 53369 (September 3, 2015) (approving SR-FINRA-2015-017) 
and 75581 (July 31, 2015), 80 FR 47018 (August 6, 2015) (approving 
SR-FINRA-2015-015) collectively referred to herein as the ``FINRA 
Amendments''. According to the approval orders, FINRA's expected 
effective date for the FINRA Amendments is January 4, 2016.
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    Specifically, the Exchange proposes to delete the (i) $60.00 
Continuing Education Fee for Series 56 and (ii) $195.00 Series 56 
Examination Fee. The Exchange also proposes to delete the phrase 
``except the Series 56'' with respect to the $100.00 Continuing 
Education Fee for All Registrations except the Series 56. The Exchange 
further proposes to add a (i) $55.00 Continuing Education Fee for All 
Registrations if Web-based and (ii) $120.00 Series 57 Examination Fee.
    MIAX is proposing such Fee Schedule amendments in consultation with 
FINRA and the other exchanges, and anticipates that the other exchanges 
will make corresponding changes to their respective fee schedules.\4\
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    \4\ See Securities Exchange Act Release Nos. 76391 (November 9, 
2015), 80 FR 70862 (November 16, 2015) (SR-FINRA-2015-044) and 75581 
(July 31, 2015), 80 FR 47018 (August 6, 2015) (SR-FINRA-2015-015).
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Background
    MIAX has amended its rules to establish the Securities Trader and 
Securities Trader Principal registration categories, to establish the 
Series 57 examination as the appropriate qualification examination for 
Securities Traders and retire the Series 56 examination for Proprietary 
Traders, and to establish S101 as the appropriate continuing education 
program for Securities Traders and retire the S501 continuing education 
program for Proprietary Traders, from and after January 4, 2016. The 
Exchange also amended its rules to provide for Web-based delivery of 
the continuing education Regulatory Element for registered persons from 
and after January 4, 2016.\5\
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    \5\ See Securities Exchange Act Release No. 76691 (December 18, 
2015), 80 FR 80425 (December 24, 2015) (SR-MIAX-2015-71).
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    In accordance with MIAX's amended rules relating to the new 
Securities Trader registration category, individual Members and 
associated persons of Members \6\ engaged in proprietary trading, the 
execution of transactions on an agency basis, or the direct supervision 
of such activities, with respect to transactions in equity, preferred 
or convertible debt securities, or foreign currency options on the 
Exchange, will be required to register with the Exchange as Securities 
Traders and be qualified by passing the new Securities Trader 
qualification examination (Series 57) being implemented by FINRA, 
unless grandfathered as provided for in the Rules. In addition, the 
Series 57 examination replaces the Series 56 examination for those 
exchange registration categories, such as the Proprietary Trader 
Principal registration category, where the Series 56 examination is 
currently an acceptable prerequisite.\7\
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    \6\ Other than any person associated with a Member whose trading 
activities are conducted principally on behalf of an investment 
company that is registered with the Commission pursuant to the 
Investment Company Act of 1940 and that controls, is controlled by 
or is under common control, with the Member. See id.
    \7\ See supra note 5. These amended rules will become effective 
as of January 4, 2016.
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    The Exchange has further amended its Rules, in consultation with 
FINRA and the other exchanges, to provide for Web-based delivery of the 
CE Regulatory Element for registered persons. The personalized S101 CE 
Program will be the required CE Program for all registered persons 
including Securities Traders.\8\
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    \8\ Id.
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Proposal
    The Exchange proposes to amend its Fee Schedule to delete the (i) 
$60.00 Continuing Education Fee for Series 56, (ii) $195.00 Series 56 
Examination Fee, and (iii) the phrase ``except the Series 56'' with 
respect to the $100.00 Continuing Education Fee for All

[[Page 3207]]

Registrations except the Series 56, since such CE fee will become 
applicable to all registration categories without exception. The 
Exchange further proposes to add a (i) $55.00 Continuing Education Fee 
for All Registrations which will be applicable for Web-based delivery 
of the CE Regulatory Element for registered persons, and (ii) $120.00 
Series 57 Examination Fee which will be applicable with respect to the 
new Securities Trader Qualification Examination (Series 57).
    The $100.00 fee charged for administration of the S101 CE program 
applicable to registrants required to take examinations other than the 
Series 56 will remain in effect, and become applicable to all 
registrants, if a CE session is conducted at a testing center from 
January 4, 2016 through no later than six months thereafter when the CE 
program will no longer be offered at testing centers. A new $55.00 fee 
will be applicable to all registrants from and after January 4, 2016 
for Web-based administration of the S101 CE program. The $195.00 fee 
currently charged for the Series 56 examination will be replaced with a 
$120.00 fee for the Series 57 examination from and after January 4, 
2016. Therefore, the Exchange is proposing to add the $55.00 Web-based 
delivery CE fee and $120.00 Series 57 examination fee to the current 
Fee Schedule. Additionally, the $60.00 fee currently charged for 
administration of the S501 CE Program applicable to Series 56 is being 
retired from and after January 4, 2016. Therefore, the Exchange is 
proposing to delete both the $195.00 Series 56 examination fee and 
$60.00 S501 CE fee from the current Fee Schedule.
    Since the Series 57 and the S101 CE Program will fall within 
FINRA's jurisdiction, the related fees will be billed directly through 
FINRA commencing as of January 4, 2016.\9\
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    \9\ See supra note 4.
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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 \10\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \11\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members and issuers and other persons 
using its facilities.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that the proposal is fair, equitable and not 
unreasonably discriminatory because the fee change applies equally to 
all Members and persons associated with Members. The proposed deletion 
of the S501 Continuing Education Fees and Series 56 Qualification 
Examination Fee is further reasonable because such CE program and exam 
will be replaced by the S101 CE program (including via Web-based 
delivery) and Series 57 Qualification Examination program. In addition, 
the Exchange believes that the fees added to the Fee Schedule and 
amended fee are equitably allocated and not unfairly discriminatory as 
they will apply uniformly to all Members and persons associated with 
the Members who choose [sic] to take the Series 57 examination and 
participate in the continuing education program through FINRA.

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 Exchange 
further believes that the proposal does not impose any burden on 
competition because it believes that the other exchanges will also be 
making the same changes to their fee schedules.\12\
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    \12\ See supra notes 3 and 4.
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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 rule-comments@sec.gov. Please include 
File Number SR-MIAX-2016-01 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-2016-01. 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; 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-2016-01 and 
should be submitted on or before February 10, 2016.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00971 Filed 1-19-16; 8:45 am]
BILLING CODE 8011-01-P