Document ID: SEC-2017-0477-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: MIAX PEARL, LLC
Posted Date: 2017-03-21T04:00Z

[Federal Register Volume 82, Number 53 (Tuesday, March 21, 2017)]
[Notices]
[Pages 14558-14559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05500]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80251; File No. SR-PEARL-2017-11]

Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX 
PEARL Rules 100, 404, 515, 529, 601 and the Title Pages of Chapter VIII 
and Chapter XI

March 15, 2017.
    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 March 3, 2017, MIAX PEARL, LLC (``MIAX PEARL'' 
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 make minor corrective changes 
to Exchange Rules 100, 404.02(d), 515(f), 529(b)(2)(ii), 601(b), 
601(b)(2), 601(b)(4), 601(b)(5), 601(c)(1), 601(c)(1)(ii), 601(c)(2), 
601(c)(3), and the title pages to Chapter VIII and Chapter XI.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.miaxoptions.com/rule-filings/pearl at MIAX 
PEARL'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 make minor corrective changes to Exchange 
Rule 100, Definitions; Rule 404, Series of Option Contracts Open for 
Trading; Rule 515, Execution of Orders; Rule 529, Order Routing to 
Other Exchanges; Rule 601, Obligations of Market Maker Authorized 
Traders; and the title pages of Chapter VIII and Chapter XI. First, the 
Exchange proposes to amend Exchange Rule 100, Definitions, to correct a 
typographical error in the last word of the first sentence in the 
definition of Priority Customer. Currently, the definition reads, 
``[t]he term `Priority Customer' means a person or entity that (i) is 
not a broker or dealer in securities, and (ii) does not place more than 
390 orders in listed options per day on average during a calendar month 
for its own beneficial accounts(s).'' The word accounts should not be 
plural in this instance and instead should read, ``account(s)''. 
Therefore, the Exchange proposes to amend this rule to replace the word 
``accounts'' with ``account.''
    Second, the Exchange proposes to amend Exchange Rule 404, Series of 
Option Contracts Open for Trading, Interpretations and Policies .02, 
Short Term Option Series Program, to correct a typographical error in 
paragraph (d). The fourth sentence in the paragraph begins, ``Market 
makers,'' whereas ``makers'' should be capitalized. Therefore, the 
Exchange proposes to amend the rule to replace the term ``Market 
makers,'' with ``Market Makers.''
    Third, the Exchange proposes to amend Exchange Rule 515(f) to make 
a minor grammatical correction by removing a superfluous word from the 
last sentence which reads, ``[u]nexecuted contracts remaining from an 
ISO order will be immediately canceled. ISO is an acronym for 
Intermarket Sweep Order. Having the word ``order'' follow ISO is 
unnecessary and redundant. Therefore, the Exchange proposes to amend 
the rule to remove the word ``order'' from the sentence.
    Fourth, the Exchange proposes to amend Exchange Rule 529(b)(2)(ii) 
to make a minor grammatical correction by removing a superfluous word 
from the first sentence which reads, ``[t]he System will route ISO 
orders representing Eligible Orders to away markets disseminating 
prices better than the Exchange's disseminated market.'' ISO is an 
acronym for Intermarket Sweep Order. Having the word ``order'' follow 
ISO is unnecessary and redundant. Therefore, the Exchange proposes to 
amend the rule to remove the word ``order'' from the sentence. 
Additionally, the Exchange proposes to add an ``s'' to the end of 
``ISO'' to indicate that the reference is not for a singular order.
    Fifth, the Exchange proposes to amend Exchange Rule 601(b), 
601(b)(2), 601(b)(4), 601(b)(5), 601(c)(1), 601(c)(1)(ii), 601(c)(2), 
and 601(c)(3), to make minor grammatical corrections. The Exchange 
proposes to replace the indefinite article ``a'' in the phrase ``a 
MMAT'' with the indefinite article ``an'' to improve the readability 
and precision of the rule.
    Sixth, the Exchange proposes to amend the title page of Chapter 
VIII, Records, Reports and Audits, to correct a minor typographical 
error. The fourth sentence contains the number 2 whereas it should read 
``MIAX PEARL'' instead. Currently, the fourth sentence reads, 
``[s]olely by way of example, and not in limitation or exhaustion: the 
defined term ``Exchange'' in the Chapter VIII Rules shall be read to 
refer to MIAX PEARL; the defined term ``Rule'' in the Chapter VIII 
Rules shall be read to refer to the 2 Rule; [. . .].'' Therefore, the 
Exchange proposes to amend the Rule to replace the number 2 with the 
words ``MIAX PEARL.''

[[Page 14559]]

    Finally, the Exchange proposes to amend the title page of Chapter 
XI, Hearings, Review and Arbitration, to correct a minor typographical 
error. The fourth sentence contains the letters ``MI'' whereas it 
should read ``MIAX PEARL'' instead. Currently, the fourth sentence 
reads, ``[s]olely by way of example, and not in limitation or in 
exhaustion: the defined term `Exchange' in Chapter XI Rules shall be 
read to refer to MI;'' The Exchange proposes to amend the Rule to 
insert the word ``the'' preceding the word ``Chapter,'' and to replace 
``MI'' with ``MIAX PEARL.'' The proposed revised fourth sentence would 
then read, ``[s]olely by way of example, and not in limitation or in 
exhaustion: the defined term `Exchange' in the Chapter XI Rules shall 
be read to refer to MIAX PEARL;''.
2. Statutory Basis
    MIAX PEARL 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 the proposed changes promote just and 
equitable principles of trade, remove impediments to and perfect the 
mechanism of a free and open market and a national market system 
because they seek to correct typographical and grammatical errors to 
improve the readability of the rules. The Exchange notes that the 
proposed changes to Exchange Rule 100, 404.02(d), 515(f), 
529(b)(2)(ii), 601(b), 601(b)(2), 601(b)(4), 601(b)(5), 601(c)(1), 
601(c)(1)(ii), 601(c)(2), 601(c)(3), and the title pages of Chapter 
VIII and XI, do not alter the application of each rule. As such, the 
proposed amendments would foster cooperation and coordination with 
persons engaged in facilitating transaction in securities and would 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system. In particular, the Exchange 
believes that the proposed rule changes will provide greater clarity to 
Members and the public regarding the Exchange's Rules, and it is in the 
public interest for rules to be accurate and concise so as to eliminate 
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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule changes 
are not designed to address any competitive issues but rather are 
designed to add additional clarity and to remedy minor non-substantive 
issues in the text of various rules identified in this proposal.
    The Exchange does not believe that the proposed rule changes will 
impose any burden on intermarket competition as the Rules apply equally 
to all Exchange Members.

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-PEARL-2017-11 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-PEARL-2017-11. 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-PEARL-2017-11 and should be 
submitted on or before April 11, 2017.

    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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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05500 Filed 3-20-17; 8:45 am]
 BILLING CODE 8011-01-P