Document ID: SEC-2018-1715-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Miami International Securities Exchange, LLC
Posted Date: 2018-11-07T05:00Z

[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Notices]
[Pages 55776-55780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24307]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84519; File No. SR-MIAX-2018-27]

Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Exchange Rule 515A, MIAX Price 
Improvement Mechanism (``PRIME'') and PRIME Solicitation Mechanism, and 
Rule 518, Complex Orders

November 1, 2018.
    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 October 24, 2018, 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, 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 Rule 515A, MIAX Price 
Improvement Mechanism (``PRIME'') and PRIME Solicitation Mechanism, and 
Rule 518, Complex Orders [sic] 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 Rule 515A, MIAX Price Improvement 
Mechanism (``PRIME'') and PRIME Solicitation Mechanism, Interpretations 
and Policies .12, to clarify and organize existing rule text for ease 
of reference and to adopt new rule text to describe additional 
scenarios which cause a cPRIME Auction \3\ to terminate early. The 
Exchange also proposes to amend Rule 518, Interpretations and Policies 
.05(f), to add additional detail pertaining to the operation of the 
Complex MIAX Price Collar (``MPC''), specifically to adopt new rule 
text for the use of a Temporary MIAX Price Collar (``TMPC'') during a 
cPRIME Auction or Complex Auction \4\ in the limited instance when an 
MPC has not been assigned. The Exchange notes that its proposal does 
not introduce any new functionality and is designed to codify existing 
functionality to add additional detail and clarity to the Exchange's 
rules.
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    \3\ Members may use PRIME to execute complex orders at a net 
price. ``cPRIME'' is the process by which a Member may 
electronically submit a cPRIME Order (as defined in Rule 518(b)(7)) 
it represents as agent (a ``cPRIME Agency Order'') against principal 
or solicited interest for execution (a ``cPRIME Auction''). See 
Exchange Rule 515A, Interpretations and Policies .12(a).
    \4\ See Exchange Rule 518(d).
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    The Exchange proposes to amend Rule 515A, Interpretations and 
Policies .12, PRIME for Complex Orders. The current rule provides that, 
``. . . the provisions of Rule 515A(a) . . . shall be applicable to the 
trading of complex orders (as defined in Rule 518) on PRIME. The 
Exchange will determine, on a class-by-class basis, the option classes 
in which complex orders are available for trading on PRIME on the 
Exchange, and will announce such classes to Members \5\ via Regulatory 
Circular.'' The Exchange now proposes to replace the word ``on'' which 
precedes ``PRIME'' with the phrase ``in the'' to more accurately 
describe Exchange functionality and maintain consistency with how the 
functionality is described in other areas of the rule.\6\
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    \5\ 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.
    \6\ See Exchange Rule 515A.01, 515A.03, 515A.04, and 515A.05, 
which references usage of ``the PRIME.''
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    The Exchange also proposes to amend Rule 515A, Interpretations and 
Policies .12(d), to organize the rule for clarity

[[Page 55777]]

and ease of reference and to codify two additional scenarios to new 
proposed subsections (d)(vi) and (d)(vii) describing conditions which 
will terminate a cPRIME Auction. Specifically, the Exchange proposes to 
consolidate current subsection (d)(v) and current subsection (d)(vi) 
into new subsection (d)(v). Current subsection (d)(v) provides that a 
cPRIME Auction will terminate if, ``a simple order or quote in a 
component of the strategy on the same side of the market as the cPRIME 
Agency Order locks or crosses the NBBO \7\ for such component.'' 
Current subsection (d)(vi) similarly provides that a cPRIME Auction 
will terminate if, ``a simple order or quote in a component of the 
strategy on the opposite side of the market as the cPRIME Agency Order: 
(A) locks or crosses the NBBO for such component. . . .''
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    \7\ The term ``NBBO'' means the national best bid or offer as 
calculated by the Exchange based on market information received by 
the Exchange from OPRA. See Exchange Rule 100.
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    The Exchange now proposes to combine subsection (d)(v) and (d)(vi) 
into a single rule under new subsection (d)(v) that provides that a 
cPRIME Auction will terminate if, ``a simple order or quote in a 
component of the strategy on either side of the market as the cPRIME 
Agency Order locks or crosses the NBBO for such component;''. The 
proposed change simplifies the rule text and clarifies two similar 
scenarios that will terminate a cPRIME Auction when interest is 
received on either side of the market as the cPRIME Agency Order. The 
Exchange believes that the proposed changes promote the protection of 
investors and the public interest by improving the accuracy and 
precision of the Exchange's rules.
    Additionally, the Exchange proposes to adopt new subsections 
(d)(vi) and (d)(vii) to include additional scenarios that will cause a 
cPRIME Auction to terminate when interest is received on the same or 
opposite side of the market, respectively, as the cPRIME Agency Order. 
Specifically, proposed subsection (d)(vi) will provide that a cPRIME 
Auction shall conclude at the earlier of the end of the RFR period,\8\ 
or when, ``a simple order or quote in a component of the strategy, 
eligible to rest on the Simple Order Book,\9\ is received on the same 
side of the market as the cPRIME Agency Order and causes the icMBBO 
\10\ to lock or cross the best price opposite the cPRIME Agency 
Order;'' This provision ensures that a cPRIME Agency Order will always 
receive the best price \11\ on the Exchange while simultaneously 
preserving the integrity of the simple market by preventing orders 
executed in a cPRIME Auction from possibly trading through the 
Exchange's simple market.
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    \8\ See Exchange Rule 515A.12(d)(i).
    \9\ The term ``Simple Order Book'' is the Exchange's regular 
electronic book of orders and quotes. See Exchange Rule 518(a)(15).
    \10\ The term ``icMBBO'' means the Implied Complex MIAX Best Bid 
or Offer. The icMBBO is a calculation that uses the best price from 
the Simple Order Book for each component of a complex strategy 
including displayed and non-displayed trading interest. See Exchange 
Rule 518(a)(11).
    \11\ The best price for an Agency Order to buy (sell) is the 
lowest offer (highest bid) on the Exchange, comprised of all 
available interest.
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    An example of this scenario is illustrated below.

Example 1--A Simple Order or Quote on the Same Side as the Agency Order 
Causes the icMBBO to Equal the Best Price Opposite the Agency Order

MIAX--LMM \12\ Mar 50 Call 5.80-6.30 (10x10)
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    \12\ The term ``Lead Market Maker'' means a Member registered 
with the Exchange for the purposes of making markets in securities 
traded on the Exchange and that is vested with the rights and 
responsibilities specified in Chapter VI of the Exchange's Rules 
with respect to Lead Market Makers. See Exchange Rule 100.
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MIAX--LMM Mar 55 Call 2.90-3.30 (10x10)

    Strategy: Buy 1 Mar 50 Call, Sell 1 Mar 55 Call.
    The icMBBO is 2.50 debit bid and 3.40 credit offer.
    The Exchange receives a cPRIME Order with the cPRIME Agency 
Order representing the purchase of the Strategy at a net debit of 
3.00, 500 times. (Auto-match is not enabled and there are no orders 
for the Strategy on the Strategy Book.) \13\
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    \13\ The term ``Strategy Book'' is the Exchange's electronic 
book of complex orders and complex quotes. See Exchange Rule 
518(a)(17).
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    Since the order price is at least $0.01 better than (inside) the 
icMBBO and the best net price of any order for the Strategy on the 
Strategy Book, a cPRIME Auction can begin.
    A Request for Responses (``RFR'') is broadcast to all 
subscribers and the RFR period is started.
    The following responses are received:

 @50 milliseconds BD1 response, cAOC Order \14\ @2.95 credit 
sell of 100 arrives
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    \14\ A Complex Auction-or-Cancel or ``cAOC'' order is a complex 
limit order used to provide liquidity during a specific Complex 
Auction with a time in force that corresponds with that event. cAOC 
orders are not displayed to any market participant, and are not 
eligible for trading outside of the event. See Exchange Rule 
518(b)(3).
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 @70 milliseconds MM1 response, cAOC eQuote \15\ @2.98 
credit sell of 500 arrives
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    \15\ A ``Complex Auction or Cancel eQuote'' or ``cAOC eQuote,'' 
which is an eQuote submitted by a Market Maker that is used to 
provide liquidity during a specific Complex Auction with a time in 
force that corresponds with the duration of a Complex Auction. See 
Exchange Rule 518.02(c)(1).

    The cPRIME Auction process will continue until the Response Time 
Interval \16\ ends or an event eligible to cause the cPRIME Auction 
to end sooner occurs.
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    \16\ The ``Response Time Interval'' means the period of time 
during which responses to the RFR may be entered. See Exchange Rule 
518(d)(3).

 @85 milliseconds a simple order bid to pay 6.25 for 10 MAR 
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50 Calls arrives

    The icMBBO is now 2.95 debit bid and 3.40 credit offer. Since 
the bid side of the icMBBO is now equal to the best price opposite 
the Agency Order [BD1 response, 2.95 credit sell of 100], the cPRIME 
Auction is concluded prior to the end of the Response Time Interval.

    The cPRIME Auction process will trade the cPRIME Agency Order 
with the best priced responses. The cPRIME Agency order will be 
filled as follows: \17\
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    \17\ See Exchange Rule 515A(a)(2)(iii).

 The cPRIME Agency Order buys 100 from BD1 @2.95
 The cPRIME Agency Order buys 400 from MM1 @2.98

    Similarly, proposed subsection (d)(vii) will provide that a cPRIME 
Auction shall conclude at the earlier of the end of the RFR period or 
if, ``a simple order or quote in a component of the strategy, eligible 
to rest on the Simple Order Book, is received on the opposite side of 
the market from the cPRIME Agency Order and Order Book and causes the 
icMBBO to lock or cross the initiating price.'' This provision ensures 
that a cPRIME Agency Order will always receive the best price on the 
Exchange while simultaneously preserving the integrity of the simple 
market by preventing orders executed in a cPRIME Auction from possibly 
trading through the Exchange's simple market.
    An example of this scenario is illustrated below.

Example 2--A Simple Order or Quote on the Opposite Side From the Agency 
Order Causes the icMBBO to Equal the Initiating Price

MIAX--LMM Mar 50 Call 5.80-6.30 (10x10)
MIAX--LMM Mar 55 Call 2.90-3.30 (10x10)

    Strategy: Buy 1 Mar 50 Call, Sell 1 Mar 55 Call.
    The icMBBO is 2.50 debit bid and 3.40 credit offer.
    The Exchange receives a cPRIME Order with the cPRIME Agency 
Order representing the purchase of the Strategy at a net debit of 
3.00, 500 times. (Auto-match is not enabled and there are no orders 
for the Strategy on the Strategy Book.)
    Since the order price is at least $0.01 better than (inside) the 
icMBBO and the best net price of any order for the Strategy on the 
Strategy Book, a cPRIME Auction can begin.
    An RFR is broadcast to all subscribers and the RFR period is 
started.
    The following responses are received:

 @40 milliseconds BD1 response, cAOC Order @2.95 credit sell 
of 100 arrives

[[Page 55778]]

 @50 milliseconds MM1 response, cAOC eQuote @2.98 credit 
sell of 500 arrives

    The cPRIME Auction process will continue until the Response Time 
Interval ends or an event eligible to cause the cPRIME Auction to 
end sooner occurs.

 @75 milliseconds a simple order offer to sell 10 MAR 50 
Calls @5.90 arrives

    The icMBBO is now 2.50 debit bid and 3.00 credit offer. Since 
the offer side of the icMBBO is now equal to the initiating price, 
the cPRIME Auction is concluded prior to the end of the Response 
Time Interval.
    The cPRIME Auction process will trade the cPRIME Agency Order 
with the best priced responses. The cPRIME Agency order will be 
filled as follows:

 The cPRIME Agency Order buys 100 from BD1 @2.95
 The cPRIME Agency Order buys 400 from MM1 @2.98

    The Exchange believes that terminating a cPRIME Auction when these 
conditions are present ensures that the execution of the cPRIME Agency 
Order improves the best price on the Exchange at the time of receipt, 
and that there is no interference between the simple and complex 
markets. (The System will reject cPRIME Agency Orders submitted with an 
initiating price that is equal to or worse than (outside) the icMBBO or 
any other complex orders on the Strategy Book.) \18\ This provision 
ensures that a cPRIME Agency Order will always receive the best price 
on the Exchange while simultaneously preserving the integrity of the 
simple market by preventing orders executed in a cPRIME Auction from 
possibly trading through the Exchange's simple market. The Exchange 
believes that including these scenarios in the rules will provide 
additional detail concerning the operation of cPRIME Auctions and the 
conditions which will terminate a cPRIME Auction. The Exchange believes 
that the proposed 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 minimize the 
potential for confusion.
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    \18\ See Exchange Rule 515 A, Interpretations and Policies 
.12(a)(i).
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    The Exchange also proposes to amend Rule 518, Interpretations and 
Policies .05, to add additional detail to the rule regarding the 
establishment of the MIAX Price Collar (``MPC'') under various 
circumstances. The MPC is a price protection feature designed to help 
maintain a fair and orderly market by helping to mitigate the potential 
risk of executions at prices that are extreme and potentially 
erroneous. The MPC prevents complex orders from automatically executing 
at potentially erroneous prices by establishing a price range outside 
of which a complex order will not be executed.
    The Exchange now proposes to amend Rule 518, Interpretations and 
Policies .05, by removing current subsection (f)(3) and replacing it 
with new proposed subsections (f)(3), (f)(4) and (f)(5), current 
subsection (f)(4) will remain intact and become new subsection (f)(6), 
and current subsection (f)(5) will remain intact and become new 
subsection (f)(7). New subsection (f)(3) will provide that, ``[t]he MPC 
Price is established: (i) Upon receipt of the complex order or eQuote 
during free trading, or (ii) if the complex order or eQuote is not 
received during free trading, at the opening (or reopening following a 
halt) of trading in the complex strategy; or (iii) upon evaluation of 
the Strategy Book by the System when a wide market condition, as 
described in Interpretations and Policies .05(e)(1) of this Rule, no 
longer exists.'' \19\
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    \19\ The Exchange notes that if wide market conditions exist 
(any individual option component of a complex strategy has a 
displayed MBBO quote width that is wider than the permissible simple 
market quote width) when an order is received, an MPC will not be 
calculated until the wide market conditions are resolved. See 
Exchange Rule 518.05(e)(1).
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    New subsection (f)(5) will provide that, ``[a] Temporary MPC Price 
(`TMPC Price') is established solely for use during a Complex Auction 
(as defined in Rule 518(d)) or a cPRIME Auction (as defined in Rule 
515A, Interpretations and Policies .12) for (i) any complex order 
resting on the Strategy Book that does not have an MPC assigned and is 
eligible to participate in a Complex Auction or a cPRIME Auction in 
that strategy; or (ii) any complex order or eQuote received during a 
cPRIME Auction \20\ if a wide market condition existed in a component 
of the strategy at the start of the cPRIME Auction. The TMPC Price 
shall be the auction start price \21\ (the auction start price of a 
cPRIME Agency Order for a cPRIME Auction is defined in Rule 
515A.12(a)(i) and the auction start price for a Complex Auction is 
defined in Rule 518(d)(1)) plus (minus) the MPC Setting \22\ if the 
order is a buy (sell). If the complex order or eQuote eligible to 
participate in the Complex Auction or cPRIME Auction is priced more 
aggressively than the TMPC Price (i.e., the complex order or eQuote 
price is greater than the TMPC Price for a buy order, or the complex 
order or eQuote price is lower than the TMPC Price for a sell order) 
the complex order or eQuote may participate in the auction but will not 
trade through its TMPC Price.'' The minimum MPC Setting is $0.00 and 
the maximum MPC Setting is $1.00, as determined by the Exchange and 
communicated to Members via Regulatory Circular.\23\ A TMPC Price will 
be calculated for use during the length of the auction for any complex 
order resting on the Strategy Book that does not have an MPC assigned 
and is eligible to participate in a Complex Auction or cPRIME Auction 
in that strategy, or any complex order or eQuote received during a 
cPRIME Auction if a wide market condition existed in a component of the 
strategy at the start of the cPRIME Auction.
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    \20\ The Exchange notes that if a wide market condition exists 
for a component of a complex strategy, trading in the strategy will 
be suspended, except as otherwise set forth in Exchange Rule 
518.05(e)(1)(iii), which states that a wide market condition shall 
have no impact on the trading of cPRIME Orders and processing of 
cPRIME Auctions (including the processing of cPRIME Auction 
responses) pursuant to Rule 515A, Interpretations and Policies .12. 
See Exchange Rule 518.05(e)(1)(i).
    \21\ The auction start price for a cPRIME Auction is the 
initiating price of a cPRIME Agency Order as described in Exchange 
Rule 515A.12(a)(i). The auction start price for a Complex Auction is 
the initiating order's limit price as described in Exchange Rule 
518(d)(1).
    \22\ See Exchange Rule 518.05(f).
    \23\ See Exchange Rule 518.05(f)(2). The Exchange notes the 
current setting is $.25.
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    An example of the TMPC Price being established and used is provided 
below.

Example 3--A TMPC Price Is Established for an Order or eQuote Received 
During a cPRIME Auction

    MIAX--LMM Mar 50 Call 1.00-6.50 (10x10) (Wide Market)
    MIAX--LMM Mar 55 Call 2.90-3.30 (10x10)
    ABBO--Mar 50 Call 6.00-6.30 (10x10)
    ABBO--Mar 55 Call 3.00-3.30 (10x10)
    NBBO--Mar 50 Call 6.00-6.30 (10x10)
    NBBO--Mar 55 Call 3.00-3.30 (10x20)

    Strategy: Buy 1 Mar 50 Call, Sell 1 Mar 55 Call
    The cNBBO is 2.70 debit bid and 3.30 credit offer
    The MPC Setting is $.25.
    The Exchange receives a cPRIME Order with the cPRIME Agency 
Order representing the purchase of the Strategy at a net debit of 
3.00, 500 times. Auto-match is not enabled and there are no orders 
for the Strategy on the Strategy Book.
    A TMPC Price will be calculated for use during the length of the 
auction for any complex order or eQuote received during a cPRIME 
Auction if a wide market condition existed in a component of the 
strategy at the start of the cPRIME Auction. The TMPC Price will be 
the cPRIME auction start price +/- the MPC Setting. In this example 
the auction start price is $3.00. The TMPC Price is $2.75 ($3.00-
$.25) for sell orders, and $3.25 ($3.00 + $.25) for buy orders.
    An RFR is broadcast to all subscribers and the RFR period is 
started.
    The following responses are received:

[[Page 55779]]

 @ 20 milliseconds BD1 response, cAOC Order @ 2.95 credit 
sell of 200 arrives
 @ 30 milliseconds MM1 response, cAOC eQuote @ 2.90 credit 
sell of 200 arrives
 @ 50 milliseconds C1 response, cAOC Order @ 2.70 credit 
sell of 100 arrives

    The cPRIME Auction process will continue until the Response Time 
Interval ends. When the 100 millisecond Response Time Interval ends, 
the cPRIME Auction process will trade the Agency Order with the best 
priced responses. The Agency Order will be filled as follows:

 The cPRIME Agency Order buys 100 from C1 @ 2.75
 The cPRIME Agency Order buys 200 from MM1 @ 2.90
 The cPRIME Agency Order buys 200 from BD1 @ 2.95

    Note that C1 is prevented from selling at 2.70 by the cPRIME 
Auction TMPC Price limit of 2.75.

    The Exchange believes that amending the rule to codify the use of a 
TMPC Price, which is applicable only in the limited circumstance when 
an MPC has not been assigned, and exists only for the duration of a 
Complex Auction or cPRIME Auction, adds additional detail to the 
Exchange's rules and provides greater transparency of Exchange 
functionality. The use of a TMPC Price provides protection for orders 
that participate in either a Complex Auction or a cPRIME Auction when 
the order does not have an assigned MPC Price as described above. This 
price protection ensures that orders are not executed at potentially 
erroneous prices during the auction. The Exchange believes that the 
proposed changes promote the protection of investors and the public 
interest by providing greater clarity and specificity of Exchange 
functionality, and it is in the public interest for the Exchange's 
rules to be accurate and concise so as to minimize the potential for 
confusion.
2. Statutory Basis
    The Exchange believes that its proposed rule change is consistent 
with Section 6(b) of the Act \24\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \25\ 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 regulating, 
clearing, settling, processing information with respect to, and 
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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    \24\ 15 U.S.C. 78f(b).
    \25\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the proposed changes promote just and 
equitable principles of trade and remove impediments to and perfect the 
mechanism of a free and open market and a national market system 
because they seek to add additional detail to, and improve the accuracy 
of, the Exchange's rules. In particular, the Exchange believes that the 
proposed rule changes will provide clarity and transparency of the 
Exchange's rules to Members and the public, and it is in the public 
interest for rules to be accurate and concise so as to minimize the 
potential for confusion.
    Additionally, the Exchange believes that including additional 
scenarios which will terminate a cPRIME Auction promotes just and 
equitable principles of trade and removes impediments to a free and 
open market by providing greater transparency concerning the operation 
of Exchange functionality. This provision ensures that a cPRIME Agency 
Order will always receive the best price on the Exchange while 
simultaneously preserving the integrity of the simple market.
    Further, the Exchange believes that providing a TMPC Price during a 
Complex Auction or a cPRIME Auction protects investors against 
executions at potentially erroneous prices. Additionally, the Exchange 
believes that adding additional detail to the Exchange's rules 
regarding the operation of MIAX Options Price Collars, and including 
the method of calculating a TMPC Price for the limited circumstances 
when one is used, promotes just and equitable principles of trade and 
removes impediments to a free and open market by providing greater 
transparency concerning the operation of Exchange functionality.

B. Self-Regulatory Organization's Statement on Burden on Competition

    MIAX Options 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 Exchange's proposal is 
not designed to address any competitive issues. As discussed above the 
proposal is designed to make minor non substantive corrections to the 
rule text and to organize rule text in a fashion that makes it easier 
to read and understand. The changes to the Exchange rules concerning 
the use of a TMPC Price, and the addition of new scenarios which will 
terminate a cPRIME Auction, are designed to add additional detail to 
the rules to further clarify the operation of Exchange functionality 
and to minimize the potential for confusion.
    Additionally, the Exchange does not believe the proposed rule 
change will impose any burden on intra-market competition as the Rules 
apply equally to all Members of the Exchange.

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 \26\ and Rule 19b-4(f)(6) \27\ 
thereunder.
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    \26\ 15 U.S.C. 78s(b)(3)(A).
    \27\ 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 [email protected]. Please include 
File Number SR-MIAX-2018-27 on the subject line.

[[Page 55780]]

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-2018-27. 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-MIAX-2018-27 and should be submitted on 
or before November 28, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-24307 Filed 11-6-18; 8:45 am]
BILLING CODE 8011-01-P