Document ID: SEC-2019-1198-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Miami International Securities Exchange, LLC
Posted Date: 2019-08-20T04:00Z

[Federal Register Volume 84, Number 161 (Tuesday, August 20, 2019)]
[Notices]
[Pages 43212-43216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17846]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86682; File No. SR-MIAX-2019-37]

Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing of a Proposed Rule Change To Amend 
Exchange Rule 518, Complex Orders, To Adopt New Interpretation and 
Policy .07

August 14, 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 August 9, 2019, Miami International Securities 
Exchange, LLC (``MIAX Options'' or the ``Exchange'') filed with the 
Securities and Exchange Commission (``Commission'') a proposed rule 
change as described in Items I and II 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 518, 
Complex Orders, to adopt new Interpretation and Policy .07.
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings/ at MIAX Options' 
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 518, Complex Orders, 
to adopt new Interpretation and Policy .07, SPIKES Combo Orders, to 
further facilitate delta neutral transactions for investors that use 
complex orders to trade SPIKES options.
Complex Orders on the Exchange
    Under the Exchange's current rule a ``complex order'' is any order 
involving the concurrent purchase and/or sale of two or more different 
options in the same underlying security (the ``legs'' or ``components'' 
of the complex order), for the same account, in a ratio that is equal 
to or greater than one-to-three (.333) and less than or equal to three-
to-one (3.00) and for the purposes of executing a particular investment 
strategy.\3\ This allows the Exchange to place the complex strategy \4\ 
on the Exchange's Strategy Book.\5\ All strategies placed on the 
Exchange's Strategy Book conform to this allowable ratio (``conforming 
strategy'').\6\ The ratio between the size of the smallest sized option 
component and the largest sized option component must be equal to or 
greater than one-to-three (1:3) or less than or equal to three-to-one 
(3:1). (e.g., Buy 30 XYZ May 18 Calls, Sell 10 XYZ April 16 Calls 
(30:10 or 3:1))
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    \3\ See Exchange Rule 518(a)(5).
    \4\ The term ``complex strategy'' means a particular combination 
of components and their ratios to one another. New Complex 
strategies can be created as the result of the receipt of a complex 
order or by the Exchange for a complex strategy that is not 
currently in the System. The Exchange may limit the number of new 
complex strategies that may be in the System at a particular time 
and will communicate this limitation to Members via Regulatory 
Circular. See Exchange Rule 518(a)(6).
    \5\ The ``Strategy Book'' is the Exchange's electronic book or 
complex orders and complex quotes. See Exchange Rule 518(a)(17).
    \6\ The Exchange notes that orders representing non-conforming 
strategies are rejected.
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    A complex order can also be a ``stock-option order.'' A stock-
option order is an order to buy or sell a stated number of units of an 
underlying security (stock or Exchange Traded Fund Share (``ETF'')) or 
a security convertible into the underlying stock (``convertible 
security'') coupled with the purchase or sale of options contract(s) on 
the opposite side of the market representing either (i) the same number 
of units of the underlying security or convertible security, or (ii) 
the number of units of the underlying stock necessary to create a delta 
neutral position, but in no case in a ratio greater than eight-to-one 
(8.00), where the ratio represents the total number of units of the 
underlying security or convertible security (i.e., contracts) in the 
option leg to the total number of units of the underlying security 
(i.e., 100 shares) or convertible security in the stock leg.\7\
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    \7\ See Exchange Rule 518(a)(5).
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    An option's price can be influenced by a number of different 
factors. Some of these are known as the ``Greeks'' because they are 
commonly abbreviated with Greek letters; Delta, Gamma, Theta, and Vega.
Delta
    The Delta ([Delta]) is a measure of the change in an option's price 
(premium of an option) resulting from a change in the underlying 
security. The value of Delta ranges from -100 to 0 for puts and 0 to 
100 for calls (multiplied by 100 to shift the decimal). Puts generate 
negative delta because they have a negative relationship with the 
underlying; that is, put premiums fall when the underlying rises and 
vice versa.
    Conversely, call options have a positive relationship with the 
price of the underlying: If the underlying rises, so does the call 
premium provided there are no changes in other variables such as 
implied volatility or time remaining until expiration. If the price of 
the underlying falls, the call premium will also decline provided all 
other things remain constant.\8\
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    \8\ John Summa, Option Greeks: The 4 Factors to Measure Risks, 
Investopedia (July 18, 2019), https://www.investopedia.com/trading/getting-to-know-the-greeks/
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    Delta changes as an option becomes more valuable or in-the-money. 
In-the-money means that the value of the option increases due to the 
option's strike price being more favorable to the underlying's price. 
As the option gets further in the money, Delta approaches 100 on a call 
and -100 on a put with the extremes eliciting a one-for-one 
relationship between changes in the option price and changes in the 
price of the underlying. In effect, at Delta values of -100 and 100, 
the option behaves like the underlying in terms of price changes.\9\
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    \9\ See id.
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Gamma
    The Gamma ([Gamma]), sometimes referred to as the option's 
curvature, is the rate of change in the delta as the underlying price 
changes. The gamma is usually expressed in deltas gained or lost per

[[Page 43213]]

one-point change in the underlying, with the delta increasing by the 
amount of gamma when the underlying rises and falling by the amount of 
the gamma when the underlying falls. If an option has a gamma of 5, for 
each point rise (fall) in the price of the underlying, the option will 
gain (lose) 5 deltas. If the option initially has a delta of 25 and the 
underlying moves up (down) one full point, the new delta will be 30 
(20).\10\
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    \10\ Sheldon Natenberg, Option Volatility & Pricing 105 (McGraw 
Hill Education., 2nd ed. 2015).
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Theta
    An option's value is made up of intrinsic value \11\ and time 
value.\12\ As time passes, the time-value portion gradually disappears 
until, at expiration, the option is worth exactly its intrinsic value. 
The theta ([Theta]), or time decay, is the rate at which an option 
loses value as time passes, assuming that all other market conditions 
remain unchanged. It is usually expressed as value lost per one day's 
passage of time. An option with a theta of 0.05 will lose 0.05 in value 
for each day that passes with no movement in the underlying contract. 
If its theoretical value today is 4.00, one day later it will be worth 
3.95. Two days later it will be worth 3.90.\13\
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    \11\ The intrinsic value or an option is the difference between 
the price of the underlying asset and the strike price.
    \12\ Time value is equal to the option premium minus its 
intrinsic value.
    \13\ Sheldon Natenberg, Option Volatility & Pricing 108 (2nd ed. 
2015).
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Vega
    Just as option values are sensitive to changes in the underlying 
price (delta) and to the passage of time (theta), they are also 
sensitive to changes in volatility. Although the terms delta, gamma, 
and theta are used by all option traders, there is no one generally 
accepted term for the sensitivity of an option's theoretical value to a 
change in volatility. The most commonly used term in the trading 
community is vega.\14\
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    \14\ Sheldon Natenberg, Option Volatility & Pricing 110 (2nd ed. 
2015).
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    The vega of an option is usually expressed as the change in 
theoretical value for each one percentage point change in volatility. 
Because all options gain value with rising volatility, the vega for 
both calls and puts is positive. If an option has a vega of 0.15, for 
each percentage point increase (decrease) in volatility, the option 
will gain (lose) 0.15 in theoretical value. If the option has a 
theoretical value of 3.25 at a volatility of 20 percent, then it will 
have a theoretical value of 3.40 at a volatility of 21 percent and a 
theoretical value of 3.10 at a volatility of 19 percent.\15\
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    \15\ See id.
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    Options can be traded not only for profits attributable to 
movements in the underlying, but also for profits attributable to 
changes in other factors such as volatility or the amount of time left 
until expiration. An investor may seek exposure to the Greeks (i.e., 
Delta, Gamma, Theta, and Vega) while minimizing exposure to movements 
in the price of the underlying by creating a delta neutral position. An 
options position could be hedged with options exhibiting a delta that 
is opposite to that of the current options holding to maintain a delta 
neutral position.
Delta Neutral
    Delta hedging is an options strategy that aims to reduce or hedge, 
the risk associated with price movements in the underlying asset.\16\ 
Strategies that involve creating a delta neutral position are typically 
used for one of three main purposes. They can be used to profit from 
time decay, or from volatility, or they can be used to hedge an 
existing position and protect it against small price movements.\17\
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    \16\ James Chen, Delta Hedging, Investopedia (May 22, 2019), 
https://www.investopedia.com/terms/d/deltahedging.asp.
    \17\ Delta Neutral Options Strategies, OptionsTrading.Org, 
https://www.optionstrading.org/strategies/other/delta-neutral/.
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    A delta neutral position is one in which the overall delta is 
approximately zero, which minimizes the options' price movements in 
relation to the underlying asset. For example, assume an investor holds 
one call option with a delta of 0.50, which indicates the option is at-
the-money and wishes to maintain a delta neutral position. The investor 
could purchase an at-the-money put option with a delta of -0.50 to 
offset the positive delta, which would make the position have a delta 
of zero, thereby minimizing unwanted exposure to the price of the 
underlying and allowing the investor to focus instead on the desired 
exposure (i.e., Delta, Gamma, Theta, or Vega).
    An options position could also be delta hedged using shares of the 
underlying stock. One share of the underlying stock has a delta of one 
as the stock's value changes by $1. For example, assume an investor is 
long one call option on a stock with a delta of 0.75--or 75 since 
options have a multiplier of 100. In this case, the investor could 
delta hedge the call option by selling 75 shares of the underlying 
stock.\18\
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    \18\ See supra note 16.
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    Following is an example of a delta neutral stock-option order which 
provides the investor volatility exposure.
Example #1
Strategy 1: Buy 8 XYZ May 18 Calls and Sell 100 Shares XYZ 
Underlying (25 times)

    Buy 8(25x) XYZ May18 Calls
    Sell 100(25x) Shares XYZ Underlying

    Buy 8 XYZ May 18 Calls (12.5 delta)
    Sell 100 XYZ Shares (100 delta) (where 100 shares of the 
underlying = 1 option contract)
    (8 * 12.5 delta) + (-1 * 100 delta)
    +100 delta - 100 delta = 0 delta

    Strategy 1 Position = +200 XYZ May 18 Calls--2500 shares of XYZ
Creation of a Synthetic Underlying Position
    Buying a call on an equity stock and selling a put on an equity 
stock, (or selling a call on an equity stock and buying a put on an 
equity stock), with the same expiration date and strike price results 
in the creation of a synthetic stock position. For example, assume a 
call and put for XYZ have a strike price of $15. Buying a call gives 
the buyer the right, but not the obligation, to purchase the stock 
(XYZ) at the strike price ($15). Selling a put imposes upon the seller 
the obligation, (and not just the right), to purchase the stock (XYZ) 
at the strike price ($15), should the put be exercised.
    If the stock price of XYZ is greater than the strike price of the 
call option ($15) at expiration, the call option may be exercised and 
the holder of the call option has the right to purchase XYZ at $15 
resulting in a long position of 100 shares of XYZ. If the stock price 
of XYZ is greater than the strike price of the put option ($15), the 
put expires worthless as the holder of the put can sell shares on the 
open market at a price greater than the option's strike price.
    If the stock price of XYZ is less than the strike price of the call 
option ($15), the call option expires worthless as it is cheaper to 
purchase the stock on the open market. If the stock price of XYZ is 
less than the strike price of the put option at expiration, the put 
will be exercised and the seller of the put will be obligated to 
purchase 100 shares of XYZ.
    The net result is that the combination of buying a call and selling 
a put with the same expiration date and strike price results in an 
effective (or synthetic) long position of 100 shares of XYZ stock, 
regardless of whether the stock price is above or below the strike 
price of the call or put option. Similarly, selling the call and buying 
the put for the same expiration date and strike price would result in 
an effective (or

[[Page 43214]]

synthetic) short position of 100 shares of XYZ stock (-100).
    Example #2 below provides an example of a synthetic underlying.
Example #2 (Reversal or Conversion)
Strategy 2: Sell 1 XYZ May 15 Call, Buy 1 XYZ May 15 Put and Buy 100 
XYZ Stock (25 times)

    Combination:
    Sell 1(25x) XYZ May 15 Calls
    Buy 1(25x) XYZ May 15 Puts

    Stock:
    Buy 100(25x) shares XYZ Stock

    Sell 1 XYZ May 15 Call (55 delta)
    Buy 1 XYZ May 15 Put (45 delta)
    Buy 100 XYZ shares (100 delta) (where 100 shares of stock = 1 
option)
    (-1 * 55 delta) + (1 * -45 delta) + (1 * 100 delta)
    -55 + (-45) + 100 = 0

    Strategy 2 Position = -25 May 15 Calls +25 May 15 Puts + 2500 
XYZ Stock
Example #3 (Combining the Positions of Strategy 1 and 2)
Strategy 1 Position: +200 XYZ May 18 Calls - 2500 XYZ Stock
Strategy 2 Position: -25 XYZ May 15 Calls +25 XYZ May 15 Put + 2500 
XYZ Stock

    Net Position:
    + 200 XYZ May 18 Calls -25 XYZ May 15 Calls +25 XYZ May 15 Puts

 
 
 
+2500 deltas (200 x 12.5)
-2500 deltas (-25 x 55) + (25 x -45)
------------------------------------------------------------------------
0 net deltas
 

Combined the equation may be expressed as: (200 x 12.5) + (-25 x 55) 
+ (25 x -45) = 0

    The net position that results from combining Strategy 1 from 
Example #1 above and Strategy 2 from Example #2 above is a long 
position of 200 May 18 Calls--the May 15 Combination 25x (a short 
synthetic stock position of 2,500 shares as a result of selling a call 
and buying a put with the same expiration date and strike price.) \19\
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    \19\ Strategy 1 and Strategy 2 may currently be entered and 
executed on the Exchange under the Exchange's current rules.
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Proposal
    The Exchange now proposes to adopt Interpretation and Policy .07 to 
Rule 518, to codify and further facilitate delta neutral hedging for 
SPIKES options. Members \20\ on the Exchange that transact in SPIKES 
options currently have the ability to submit complex orders which are 
delta neutral, so long as the component ratio conforms to the current 
rule for complex orders of 1:3/3:1.\21\
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    \20\ The term ``Member'' means an individual or organization 
approved to exercise the trading rights associated with a Trading 
Permit. Members are deemed ``members'' under the Exchange Act. See 
Exchange Rule 100.
    \21\ See Exchange Rule 518(a)(5).
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    The Exchange now proposes to adopt a definition of a ``SPIKES 
Combination'' as a purchase (sale) of a SPIKES call option and the sale 
(purchase) of a SPIKES put option having the same expiration date and 
strike price. The Exchange also proposes to adopt a definition for 
``delta'' as the positive (negative) number of SPIKES Combinations that 
must be sold (purchased) to establish a market neutral hedge with one 
or more SPIKES option series. Additionally, the Exchange proposes to 
adopt a definition for a ``SPIKES Combo Order'' as an order to purchase 
or sell one or more SPIKES option series and the offsetting number of 
SPIKES Combinations defined by the delta.
    The Exchange proposes to adopt a provision that states for the 
purposes of this Rule a SPIKES Combo Order may not have a ratio greater 
than eight options to one SPIKES Combination (8:1). The Exchange 
proposes to use this ratio as it is already a defined conforming ratio 
in the Exchange's System \22\ used for stock-option orders and it will 
allow the Exchange to implement the trading of SPIKES Combo Orders in a 
fashion similar to stock-option orders. Currently, stock-options may be 
traded in a ratio of eight-to-one, where the ratio represents contracts 
to the underlying security. Similarly, the Exchange proposes to use the 
same ratio for SPIKES Combo Orders where the ratio would represent 
contracts to SPIKES Combination Orders. Lastly, the Exchange proposes 
to add an internal cross reference to state that SPIKES Combo Orders 
will be subject to the same provisions of Rule 518 that complex orders 
on the Exchange are subject to, with the exception of the 1:3/3:1 ratio 
requirement as described in Rule 518.
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    \22\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
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    SPIKES options do not have an underlying that can serve as a hedge, 
as the option is based on an Index. However, a synthetic underlying 
position may be created by purchasing a call and selling a put (or 
selling a call and purchasing a put), as discussed above. A SPIKES 
Combination Order creates a synthetic underlying position that is the 
functional equivalent of the stock leg in stock-option orders. 
Therefore, the Exchange proposes to amend the ratio from 1:3/3:1 to 8:1 
for SPIKES Combo Orders to align the treatment of these orders to that 
of stock-option orders. This will allow for more transactions with 
better hedging opportunities.
    Below is an example of a SPIKES delta neutral strategy that 
provides the investor exposure to the Greeks that may be created under 
the Exchange's proposal to allow SPIKES Combo Orders to leverage the 
8:1 ratio afforded stock-option orders.
Example #4
Strategy A: Buy 8 SPIKES May 18 Calls, Sell 1 SPIKES May 15 Call, 
and Buy 1 SPIKES May 15 Put (25 times)

    Calls:
    Buy 8(25) SPIKES May 18 Calls

    Combination:
    Sell 1(25) SPIKES May 15 Call
    Buy 1(25) SPIKES May 15 Puts
    Buy 8 SPIKES May 18 Calls (12.5 delta)
    Sell 1 SPIKES May 15 Call (55 delta)
    Buy 1 SPIKES May 15 Put (45 delta)
    (8 * 12.5) + (-1 * 55) + (1 * -45)
    100 - 55 - 45 = 0

    Net Position: + 200 SPIKES May 18 Calls -25 SPIKES May 15 Calls 
+25 SPIKES May 15 Puts

 
 
 
+2500 deltas (200 x 12.5)
-2500 deltas (-25 x 55) + (25 x -45)
------------------------------------------------------------------------
0 net delta
 

Combined the equation may be expressed as: (200 x 12.5) + (-25 x 55) 
+ (25 x -45) = 0

    Example #4 illustrates a delta neutral position in SPIKES which is 
identical to the net delta neutral position demonstrated in Example #1 
for a stock-option order. This position may be accomplished in a single 
transaction by using the proposed SPIKES Combo Order which includes a 
SPIKES Combination order. The SPIKES Combination order (sell call, buy 
put with the same expiration date and strike price) creates the 
synthetic underlying position for the SPIKES option, similar to the way 
selling the XYZ call and buying the XYZ put creates the synthetic stock 
position demonstrated in Example #3.
    Under the Exchange's proposal, SPIKES Combination orders would be 
treated similar to the stock-leg component of a stock-option order. As 
demonstrated in Example #3 above, the stock leg component of a stock-
option order can be created synthetically by selling a call and buying 
a put option with the same expiration date and strike price. The 
Exchange proposes to define this transaction as a SPIKES Combination 
order and allow SPIKES Combo Orders to be treated similarly to stock-
option orders by permitting these orders to leverage the 8-1 ratio 
defined for stock-option orders. The Exchange believes that a ratio 
greater than three-

[[Page 43215]]

to-one, but not greater than eight-to-one, would allow investors the 
opportunity to create additional delta neutral transactions with SPIKES 
Index options. Therefore, the Exchange proposes to adopt new rule text 
to state that for the purposes of Rule 518 a SPIKES Combo Order may not 
have a ratio greater than eight-to-one, in order to facilitate hedging 
SPIKES options with SPIKES Combo Orders.
    The Exchange represents that it has the System capacity and 
capability to handle the potential increase in transaction rates. 
Further, the Exchange represents that it has surveillances in place to 
surveil for conduct that violates the Exchange's rules, specifically as 
it pertains to delta neutral transactions as described herein.
2. Statutory Basis
    MIAX Options believes that its proposed rule change is consistent 
with Section 6(b) of the Act \23\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \24\ 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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    \23\ 15 U.S.C. 78f(b).
    \24\ 15 U.S.C. 78f(b)(5).
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    The Exchange's proposal promotes just and equitable principles of 
trade and removes impediments to and perfects the mechanisms of a free 
and open market and a national market system and, in general, protects 
investors and the public interest, by further facilitating the creation 
of delta neutral transactions in SPIKES options. Delta neutral 
strategies protect investors and the public interest by providing a 
means to gain exposure to other elements related to the price of an 
option while reducing the risk associated with changes in the price of 
the underlying. Permitting additional delta neutral transactions will 
improve liquidity in the marketplace which will benefit all investors. 
Additionally, the Exchange's proposal protects investors and the public 
interest as all the rules applicable to complex orders on the Exchange 
will apply equally to SPIKES Combo Orders, with the exception of the 
3:1/1:3 ratio limitation.
    The proposed 8:1 ratio for SPIKES Combo Orders is already a 
conforming ratio on the Exchange for stock-option orders. The 
Exchange's proposal promotes just and equitable principles of trade and 
removes impediments to and perfects the mechanisms of a free and open 
market and a national market system and, in general, protects investors 
and the public interest, by providing similar hedging capabilities as 
afforded stock-option orders.
    Additionally, other exchanges that offer options on index products 
provide for the creation of delta neutral strategies.\25\ Providing 
investors the ability to create delta neutral transactions similar to 
those created on other exchanges reduces investor confusion and in turn 
strengthens investor confidence in the marketplace by providing 
consistency among exchanges.
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    \25\ See NYSE American Rule 965NY and Cboe Exchange Rule 24.20.
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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's proposal will 
not impose any burden on inter-market competition as the Exchange's 
proposal is specifically for SPIKES Index options which are a 
Proprietary Product \26\ of the Exchange, and are not listed or traded 
on any other venue.
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    \26\ The term ``Proprietary Product'' means a class of options 
that is listed exclusively on the Exchange and any of its 
affiliates. See Exchange Rule 100.
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    The Exchange does not believe the proposed rule change will impose 
any burden on intra-market competition as the rules of the Exchange are 
applicable to all Members equally. Any Member of the Exchange may trade 
SPIKES options and all Members can benefit from the creation of delta 
neutral transactions as described in this proposal.
    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.

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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be 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-MIAX-2019-37 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-MIAX-2019-37. 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

[[Page 43216]]

to make available publicly. All submissions should refer to File Number 
SR-MIAX-2019-37, and should be submitted on or before September 10, 
2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-17846 Filed 8-19-19; 8:45 am]
 BILLING CODE 8011-01-P