Document ID: SEC-2019-1020-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: MIAX Emerald, LLC
Posted Date: 2019-07-18T04:00Z

[Federal Register Volume 84, Number 138 (Thursday, July 18, 2019)]
[Notices]
[Pages 34440-34444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15256]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86368; File No. SR-EMERALD-2019-25]

Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Its Fee Schedule

July 12, 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 June 28, 2019, MIAX Emerald, LLC (``MIAX 
Emerald'' or ``Exchange''), filed with the Securities and Exchange 
Commission (``Commission'') a proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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 Emerald Fee 
Schedule (the ``Fee Schedule'').
    While changes to the Fee Schedule pursuant to this proposal are 
effective upon filing, the Exchange has designated these changes to be 
operative on July 1, 2019.
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings/emerald, at MIAX's 
principal office, and at the Commission's Public Reference Room.

[[Page 34441]]

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 the Exchange Rebates/Fees set forth 
in Section 1)a)i of the Fee Schedule to provide Members \3\ a higher 
Simple Maker rebate of $0.50 \4\ per contract executed in SPY, QQQ and 
IWM options for Priority Customer \5\ Origin in Tiers 1, 2 and 3, 
instead of the rebate amount otherwise set forth in such Tiers.
---------------------------------------------------------------------------

    \3\ 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 
the Definitions Section of the Fee Schedule and Exchange Rule 100.
    \4\ The Exchange notes that rebates in the Fee Schedule are 
denoted using parentheses.
    \5\ The 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 account(s). The number of 
orders shall be counted in accordance with the following 
Interpretation and Policy .01 hereto. See the Definitions Section of 
the Fee Schedule and Exchange Rule 100.
---------------------------------------------------------------------------

Background
    The Commission has repeatedly expressed its preference for 
competition over regulatory intervention in determining prices, 
products, and services in the securities markets. In Regulation NMS, 
the Commission highlighted the importance of market forces in 
determining prices and SRO revenues and, also, recognized that current 
regulation of the market system ``has been remarkably successful in 
promoting market competition in its broader forms that are most 
important to investors and listed companies.'' \6\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005).
---------------------------------------------------------------------------

    There are currently 16 registered options exchanges competing for 
order flow. Based on publicly-available information, and excluding 
index-based options, no single exchange has exceeded approximately 17% 
of the market share of executed volume of multiply-listed equity and 
ETF options trades.\7\ Therefore, no exchange possesses significant 
pricing power in the execution of multiply-listed equity & ETF options 
order flow. More specifically, since the Exchange launched operations 
on March 1, 2019, the Exchange has had less than 1% market share in any 
month of executed volume of multiply-listed equity & ETF options 
trades.\8\ The Exchange believes that the ever-shifting market share 
among the exchanges from month to month demonstrates that market 
participants can shift order flow, or discontinue or reduce use of 
certain categories of products, in response to fee changes. 
Accordingly, competitive forces constrain options exchange transaction 
fees.
---------------------------------------------------------------------------

    \7\ The Options Clearing Corporation (``OCC'') publishes options 
and futures volume in a variety of formats, including daily and 
monthly volume by exchange, available here: https://www.theocc.com/market-data/volume/default.jsp.
    \8\ See id.
---------------------------------------------------------------------------

Proposed Rule Change
    The Exchange currently assesses transaction rebates and fees to all 
market participants which are based upon a threshold tier structure 
(``Tier'') that is applicable to transaction fees. Tiers are determined 
on a monthly basis and are based on three alternative calculation 
methods, as defined in Section 1)a)ii) of the Fee Schedule. The 
calculation method that results in the highest Tier achieved by the 
Member shall apply to all Origin types by the Member. The monthly 
volume thresholds for each method, associated with each Tier, are 
calculated as the total monthly volume executed by the Member in all 
options classes on MIAX Emerald in the relevant Origins and/or 
applicable liquidity, not including Excluded Contracts,\9\ (as the 
numerator) expressed as a percentage of (divided by) Customer Total 
Consolidated Volume (``CTCV'') (as the denominator). CTCV means 
Customer Total Consolidated Volume calculated as the total national 
volume cleared at The Options Clearing Corporation (``OCC'') in the 
Customer range in those classes listed on MIAX Emerald for the month 
for which fees apply, excluding volume cleared at the OCC in the 
Customer range executed during the period of time in which the Exchange 
experiences an ``Exchange System Disruption'' \10\ (solely in the 
option classes of the affected Matching Engine).\11\ In addition, the 
per contract transaction rebates and fees shall be applied 
retroactively to all eligible volume once the Tier has been reached by 
the Member. Members that place resting liquidity, i.e., orders on the 
MIAX Emerald System, will be assessed the specified ``maker'' rebate or 
fee (each a ``Maker'') and Members that execute against resting 
liquidity will be assessed the specified ``taker'' fee or rebate (each 
a ``Taker'').\12\
---------------------------------------------------------------------------

    \9\ ``Excluded Contracts'' means any contracts routed to an away 
market for execution.
    \10\ The term ``Exchange System Disruption'' means an outage of 
a Matching Engine or collective Matching Engines for a period of two 
consecutive hour or more, during trading hours. See the Definitions 
Section of the Fee Schedule.
    \11\ A ``Matching Engine'' is a part of the MIAX Emerald 
electronic system that processes options orders and trades on a 
symbol-by-symbol basis. Some Matching Engines will process option 
classes with multiple root symbols, and other Matching Engines may 
be dedicated to one single option root symbol (for example, options 
on SPY may be processed by one single Matching Engine that is 
dedicated only to SPY). A particular root symbol may only be 
assigned to a single designated Matching Engine. A particular root 
symbol may not be assigned to multiple Matching Engines. See the 
Definitions Section of the Fee Schedule.
    \12\ For a Priority Customer complex order taking liquidity in 
both a Penny class and non-Penny class against Origins other than 
Priority Customer, the Priority Customer order will receive a rebate 
based on the Tier achieved.
---------------------------------------------------------------------------

    Currently, transaction rebates and fees for Penny and Non-Penny 
classes are assessed according to the following tables:

[[Page 34442]]

                                                      Members and Their Affiliates In Penny Classes
                                                              [Simple/Complex/PRIME/cPRIME]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Simple                       Complex                       PRIME/cPRIME [diam]
                                                         -----------------------------------------------------------------------------------------------
                                                                                     Maker       Maker
                   Origin                        Tier                               (contra     (contra
                                                             Maker       Taker    origins ex   priority      Taker      Agency      Contra     Responder
                                                                      [supcaret]   priority    customer
                                                                                   customer)    origin)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Market Maker................................           1     ($0.35)       $0.50       $0.10       $0.47       $0.50       $0.05       $0.05       $0.05
                                                       2      (0.35)        0.50        0.10        0.47        0.50        0.05        0.05        0.05
                                                       3      (0.35)        0.50        0.10        0.47        0.50        0.05        0.05        0.05
                                                       4      (0.45)        0.48        0.10        0.47        0.50        0.05        0.05        0.05
Non-MIAX Emerald Market Maker...............           1      (0.25)        0.50        0.20        0.50        0.50        0.05        0.05        0.05
                                                       2      (0.25)        0.50        0.20        0.50        0.50        0.05        0.05        0.05
                                                       3      (0.25)        0.50        0.20        0.50        0.50        0.05        0.05        0.05
                                                       4      (0.25)        0.48        0.20        0.50        0.50        0.05        0.05        0.05
Firm Proprietary/Broker-Dealer..............           1      (0.25)        0.50        0.20        0.50        0.50        0.05        0.05        0.05
                                                       2      (0.25)        0.50        0.20        0.50        0.50        0.05        0.05        0.05
                                                       3      (0.25)        0.50        0.20        0.50        0.50        0.05        0.05        0.05
                                                       4      (0.25)        0.49        0.20        0.50        0.50        0.05        0.05        0.05
Non-Priority Customer.......................           1      (0.25)        0.50        0.20        0.50        0.50        0.05        0.05        0.05
                                                       2      (0.25)        0.50        0.20        0.50        0.50        0.05        0.05        0.05
                                                       3      (0.25)        0.50        0.20        0.50        0.50        0.05        0.05        0.05
                                                       4      (0.25)        0.49        0.20        0.50        0.50        0.05        0.05        0.05
Priority Customer *.........................           1      (0.48)        0.47      (0.25)      (0.25)      (0.25)        0.00        0.05        0.05
                                                       2      (0.48)        0.47      (0.40)      (0.40)      (0.40)        0.00        0.05        0.05
                                                       3      (0.48)        0.47      (0.45)      (0.45)      (0.45)        0.00        0.05        0.05
                                                       4      (0.53)        0.45      (0.50)      (0.50)      (0.50)        0.00        0.05        0.05
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                    Members and Their Affiliates In Non-Penny Classes
                                                              [Simple/Complex/PRIME/cPRIME]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Simple                       Complex                       PRIME/cPRIME [diam]
                                                         -----------------------------------------------------------------------------------------------
                                                                                     Maker       Maker
                   Origin                        Tier                               (contra     (contra
                                                             Maker       Taker    origins ex   priority     Taker ~     Agency      Contra     Responder
                                                                      [supcaret]   priority    customer
                                                                                   customer)    origin)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Market Maker................................           1     ($0.45)       $0.99       $0.20       $0.86       $0.88       $0.05       $0.05       $0.05
                                                       2      (0.45)        0.99        0.20        0.86        0.88        0.05        0.05        0.05
                                                       3      (0.45)        0.99        0.20        0.86        0.86        0.05        0.05        0.05
                                                       4      (0.75)        0.94        0.20        0.86        0.86        0.05        0.05        0.05
Non-MIAX Emerald Market Maker...............           1      (0.25)        0.99        0.20        0.88        0.88        0.05        0.05        0.05
                                                       2      (0.25)        0.99        0.20        0.88        0.88        0.05        0.05        0.05
                                                       3      (0.25)        0.99        0.20        0.88        0.88        0.05        0.05        0.05
                                                       4      (0.25)        0.94        0.20        0.88        0.88        0.05        0.05        0.05
Firm Proprietary/Broker-Dealer..............           1      (0.25)        0.99        0.20        0.88        0.88        0.05        0.05        0.05
                                                       2      (0.25)        0.99        0.20        0.88        0.88        0.05        0.05        0.05
                                                       3      (0.25)        0.99        0.20        0.88        0.88        0.05        0.05        0.05
                                                       4      (0.25)        0.94        0.20        0.88        0.88        0.05        0.05        0.05
Non-Priority Customer.......................           1      (0.25)        0.99        0.20        0.88        0.88        0.05        0.05        0.05
                                                       2      (0.25)        0.99        0.20        0.88        0.88        0.05        0.05        0.05
                                                       3      (0.25)        0.99        0.20        0.88        0.88        0.05        0.05        0.05
                                                       4      (0.25)        0.94        0.20        0.88        0.88        0.05        0.05        0.05
Priority Customer*..........................           1      (0.85)        0.85      (0.40)      (0.40)      (0.40)        0.00        0.05        0.05
                                                       2      (0.85)        0.85      (0.60)      (0.60)      (0.60)        0.00        0.05        0.05
                                                       3      (0.85)        0.85      (0.70)      (0.70)      (0.75)        0.00        0.05        0.05
                                                       4      (1.05)        0.82      (0.87)      (0.87)      (0.85)        0.00        0.05        0.05
--------------------------------------------------------------------------------------------------------------------------------------------------------
[caret] Contra to Priority Customer Simple Orders, Origins ex Priority Customer Simple Orders will be charged $0.50 and Priority Customer Simple Orders
  will be charged $0.49 in Penny classes, and Origins ex Priority Customer Simple Orders will be charged $1.10 and Priority Customer Simple Orders will
  be charged $0.85 in Non-Penny classes.
* Priority Customer Complex Orders contra to Priority Customer Complex Orders are neither charged nor rebated. Priority Customer Complex Orders that leg
  into the Simple book are neither charged nor rebated.
~ A $0.05 Complex surcharge for Origins ex Priority Customer for Complex Orders that take liquidity from the Complex Order Book in Non-Penny classes.
# For orders in a Complex Auction, Priority Customer Complex Orders will receive the Complex Taker rebate based on the tier achieved when contra to an
  Origin that is not a Priority Customer. Origins that are not a Priority Customer will be charged the applicable Maker fee depending on the contra,
  based on the tier achieved.
[diam] For PRIME and cPRIME, the per contract rebate or fee for the preexisting contra-side interest that trades with the Agency side will be waived.
  PRIME/cPRIME Responder side interest that trades with unrelated Agency side interest trades as Taker will be subject to Simple or Complex rates, as
  applicable.

Notes Accompanying Tables Above

    During the Opening Rotation and the ABBO uncrossing, the per 
contract rebate or fee will be waived for all Origins.
    The Exchange proposes to amend the Exchange Rebates/Fees set forth 
in Section 1)a)i of the Fee Schedule to provide Members a higher Simple 
Maker rebate in Penny classes of $0.50 per contract executed in SPY, 
QQQ and IWM options for Priority Customer Origin in Tiers 1, 2 and 3, 
instead of the rebate amount otherwise set forth in such Tiers.
    The Exchange proposes to insert the new symbol ``[dtri]'' following 
the ``($0.48)'' rebate listed in Tiers 1, 2 and 3 for Simple Maker 
rebates in Penny classes in Section 1)a)i) of the Fee Schedule to 
designate a new footnote representing the proposed higher rebate of 
$0.50 for SPY, QQQ, and IWM. The

[[Page 34443]]

Exchange proposes that, following the fee table for Non-Penny classes 
in Section 1(a)(i) of the Fee Schedule, the Exchange will insert text 
describing the proposed higher rebate with new footnote ``[dtri]'' as 
follows: ``Simple Maker rebate in SPY, QQQ and IWM is ($0.50) for 
Priority Customer Origin in Tiers 1, 2 and 3.'' The Exchanges notes 
that Simple Maker rebates in Penny classes for Priority Customer Origin 
in all options classes other than SPY, QQQ, and IWM will remain at 
$0.48 for Tiers 1 through 3. Further, Simple Maker rebates in Penny 
classes for all options classes, including options in SPY, QQQ and IWM, 
will remain at $0.53 for Tier 4.
    The purpose of the proposed change is to incentivize Members to 
send Priority Customer Origin orders to the Exchange in SPY, QQQ and 
IWM options. The Exchange believes that the proposal to increase the 
Simple Maker rebate in SPY, QQQ and IWM to $0.50 for Priority Customer 
Origin in Tiers 1, 2 and 3 may increase the volume of Priority Customer 
order flow in those classes. The Exchange believes that the increased 
order flow will result in increased liquidity, which benefits all 
Exchange participants by providing more trading opportunities and 
tighter spreads. The proposed rebates do not apply differently to 
different sizes of market participants based on Tier achieved.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Fee Schedule 
is consistent with Section 6(b) of the Act \13\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \14\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among its members and issuers and other persons using 
its facilities. The Exchange also believes the proposal furthers the 
objectives of Section 6(b)(5) of the Act in that it is designed to 
promote just and equitable principles of trade, to remove impediments 
to and perfect the mechanism of a free and open market and a national 
market system, and, in general to protect investors and the public 
interest and is not designed to permit unfair discrimination between 
customers, issuers, brokers and dealers.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The proposal to offer higher Simple Maker rebates in SPY, QQQ and 
IWM options for Priority Customer Origin in Tiers 1, 2 and 3 provides 
for the equitable allocation of reasonable dues and fees and is not 
unfairly discriminatory for the following reasons. First, the Exchange 
operates in a highly competitive market. The Commission has repeatedly 
expressed its preference for competition over regulatory intervention 
in determining prices, products, and services in the securities 
markets. In Regulation NMS, the Commission highlighted the importance 
of market forces in determining prices and SRO revenues and, also, 
recognized that current regulation of the market system ``has been 
remarkably successful in promoting market competition in its broader 
forms that are most important to investors and listed companies.'' \15\ 
There are currently 16 registered options exchanges competing for order 
flow. Based on publicly-available information, and excluding index-
based options, no single exchange has exceeded approximately 17% of the 
market share of executed volume of multiply-listed equity and ETF 
options trades.\16\ Therefore, no exchange possesses significant 
pricing power in the execution of multiply-listed equity & ETF options 
order flow. More specifically, since the Exchange launched operations 
on March 1, 2019, the Exchange has had less than 1% market share in any 
month of executed volume of multiply-listed equity & ETF options 
trades.\17\ The Exchange believes that the ever-shifting market share 
among the exchanges from month to month demonstrates that market 
participants can shift order flow, or discontinue or reduce use of 
certain categories of products, in response to fee changes. 
Accordingly, competitive forces constrain options exchange transaction 
fees.
---------------------------------------------------------------------------

    \15\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496 (June 29, 2005).
    \16\ See supra note 7.
    \17\ See supra note 7.
---------------------------------------------------------------------------

    Second, the Exchange believes that the proposed higher Simple Maker 
rebate in SPY, QQQ and IWM options for Priority Customer Origin in 
Tiers 1, 2 and 3 is consistent with Section 6(b)(4) of the Act in that 
it is reasonable, equitable and not unfairly discriminatory because it 
applies equally to all Members for their Priority Customer Origin order 
flow in those options.
    The Exchange operates in highly competitive market. In particular, 
since the Exchange launched trading on March 1, 2019, the Exchange has 
had less than a 1% market share in any month. Therefore, the Exchange 
does not possess significant pricing power in the execution of options 
order flow. The Exchange believes that the ever-shifting market share 
among the exchanges from month to month demonstrates that market 
participants can shift order flow, or discontinue to reduce use of 
certain categories of products, in response to fee changes. 
Accordingly, competitive forces constrain exchange transaction fees. 
Stated otherwise, changes to exchange transaction fees can have a 
direct effect on the ability of an exchange to compete for order flow.
    The Exchange believes the proposed change is reasonable because, as 
noted above, the Exchange operates in a highly competitive environment, 
particularly for attracting order flow that provides liquidity on the 
Exchange. The Exchange believes it is reasonable to provide a higher 
rebate for Members that trade in SPY, QQQ and IWM options in Priority 
Customer Origin for Tiers 1 through 3 because, to date, no Members have 
reached Tier 4 using the Priority Customer Maker method only (which may 
be different than their effective tier), and, additionally the Simple 
fees and rebates are essentially the same for the Priority Customer 
Tiers 1 through 3. The Exchange believes the proposed higher rebate is 
reasonable as it would provide an additional incentive for Members to 
provide liquidity in SPY, QQQ and IWM options, and provide meaningful 
added levels of liquidity, thereby contributing to the depth and market 
quality on the Exchange.
    The Exchange believes that defining the proposed increased rebate 
with the new symbol ``[dtri]'' on the Fee Schedule promotes just and 
equitable principles of trade, removes impediments to and perfects the 
mechanism of a free and open market and a national market system, and, 
in general protects investors and the public interest by creating a 
clear understanding of the increased rebate.
    The proposed increased rebate is reasonable, equitable, and not 
unfairly discriminatory because it will apply similarly to all market 
participants who provide liquidity on the Simple Order Book for their 
Priority Customer Origin in SPY, QQQ and IWM options in Tiers 1, 2 and 
3. All similarly situated market participants are subject to the same 
transaction rebate schedule, and access to the Exchange is offered on 
terms that are not unfairly discriminatory.
    The Exchange believes that the proposal is reasonable because it 
will incentivize providers of SPY, QQQ, and IWM Priority Customer order 
flow to send that Priority Customer order flow to the Exchange in order 
to obtain the highest volume threshold and receive a Simple Maker 
rebate in a manner that enables the Exchange to improve its

[[Page 34444]]

overall competitiveness and strengthen its market quality for all 
market participants.

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. As described above, the 
Exchange believes that the proposed change would encourage the 
submission of additional orders in SPY, QQQ and IWM options, thereby 
promoting market depth, price discovery and transparency and enhancing 
order execution opportunities for Members.
Intra-Market Competition
    The Exchange does not believe that the proposed rule change would 
place other market participants at the Exchange at a relative 
disadvantage compared to providers of SPY, QQQ, and IWM Priority 
Customer order flow. The Exchange believes that establishing higher 
rebates for these select products for Priority Customers is reasonable, 
equitable, and not unfairly discriminatory because these select 
products are generally more liquid than other option classes and the 
Exchange believes that the proposed change is designed to attract 
additional order flow to the Exchange. The Exchange believes that the 
proposed increased rebates would continue to incentivize market 
participants to provide order flow to the Exchange. Greater liquidity 
benefits all market participants on the Exchange by providing more 
trading opportunities and encourages Members to send orders thereby 
contributing to robust levels of liquidity, which benefits all market 
participants. The proposed higher rebates would be available to all 
similarly-situated market participants, and, as such, the proposed 
change would not impose a disparate burden on competition among market 
participants on the Exchange.
Inter-Market Competition
    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily favor competing venues if they 
deem fee levels at a particular venue to be excessive. In such an 
environment, the Exchange must continually adjust its fees to remain 
competitive with other exchanges and to attract order flow to the 
Exchange. The Exchange notes that since the Exchange launched 
operations on March 1, 2019, the Exchange's market share has been less 
than 1% in any month. In such an environment, the Exchange must 
continually adjust its fees and rebates to remain competitive with 
other exchanges and with off-exchange venues. Because competitors are 
free to modify their own fees and credits in response, and because 
market participants may readily adjust their order routing, the 
Exchange does not believe its proposed increased rebate can impose any 
burden on competition. The Exchange believes that the proposed change 
could promote competition between the Exchange and other execution 
venues, including those that currently offer similar order types and 
comparable transaction pricing, by encouraging additional orders to be 
sent to the Exchange for execution. The Exchange also believes that the 
proposed change is designed to provide the public and investors with a 
Schedule of Fees and Rebates that is clear and consistent, thereby 
reducing burdens on the marketplace and facilitating investor 
protection.

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,\18\ and Rule 19b-4(f)(2) \19\ 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.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \19\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-EMERALD-2019-25 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-EMERALD-2019-25. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-EMERALD-2019-25 and should be submitted 
on or before August 8, 2019.
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-15256 Filed 7-17-19; 8:45 am]
 BILLING CODE 8011-01-P