
[Federal Register Volume 78, Number 44 (Wednesday, March 6, 2013)]
[Notices]
[Pages 14617-14619]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-05166]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69007; File No. SR-MIAX-2013-05]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Establish the MIAX Top of Market (``ToM'') Data Product

February 28, 2013.
    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 February 15, 2013, Miami International 
Securities Exchange LLC (``MIAX'' or ``Exchange'') filed with the 
Securities and Exchange Commission (``Commission'') a proposed rule 
change as described in Items I, II, and III below, which Items have 
been prepared by the Exchange. The Commission is publishing this notice 
to solicit comments on the proposed rule change from interested 
persons.
---------------------------------------------------------------------------

    \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 establish a market data 
product related to the trading of standardized options on MIAX. 
Specifically, the Exchange is proposing to provide the MIAX Top of 
Market (``ToM''), a direct data feed that features the Exchange's best 
bid and offer, with aggregate size and last sale information on the 
MIAX system.
    The text of the proposed rule change is also available on the 
Exchange's Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at MIAX's principal office, and at the Commission's Public 
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to establish the ToM 
market data product. ToM provides a direct data feed that includes the 
Exchange's best bid and offer, with aggregate size, based on 
displayable order and quoting interest on the Exchange. The ToM data 
feed includes data that is identical to the data sent to the processor 
for the Options Price Reporting Authority (``OPRA''). The ToM and OPRA 
data leave the MIAX system at the same time, as required under Section 
5.2(c)(iii)(B) of the Limited Liability Company Agreement of the 
Options Price Reporting Authority LLC (the ``OPRA Plan''), which 
prohibits the dissemination of proprietary information on any more 
timely basis than the same information is furnished to the OPRA System 
for inclusion in OPRA's consolidated dissemination of options 
information.
    In addition to MIAX's best bid and offer, with aggregate size and 
last sale information, subscribers to ToM will also receive: Opening 
imbalance condition information; opening and intra-day routing 
information; Expanded

[[Page 14618]]

Quote Range \3\ information; Post-Halt Notification \4\ and Liquidity 
Refresh \5\ condition information. MIAX Market Makers receive this 
additional information by way of connectivity with the MIAX Express 
Interface (``MEI''); \6\ those who are not MIAX Market Makers must 
subscribe to ToM in order to receive the additional information.
---------------------------------------------------------------------------

    \3\ Where there is an imbalance at the price at which the 
maximum number of contracts can trade that is also at or within the 
highest valid width quote bid and lowest valid width quote offer, 
the System will calculate an Expanded Quote Range (``EQR''). The EQR 
will be recalculated any time a Route Timer or Imbalance Timer 
expires if material conditions of the market (imbalance size, ABBO 
price or size, liquidity price or size, etc.) have changed during 
the timer. Once calculated, the EQR will represent the limits of the 
range in which transactions may occur during the opening process. 
See Exchange Rule 503(f)(5).
    \4\ After the Exchange has determined to end a trading system 
halt, the System will broadcast to subscribers of the Exchange's 
data feeds a Post-Halt Notification. See Exchange Rule 504(d).
    \5\ If a Market Maker quote was all or part of the MIAX Best Bid 
or Offer (``MBBO'') and the Market Maker's quote was exhausted by 
the partial execution of the initiating order, the System will pause 
the market for a time period not to exceed one second to allow 
additional orders or quotes refreshing the liquidity at the MBBO to 
be received (``liquidity refresh pause''). See Exchange Rule 
515(c)(1)(iii)(A).
    \6\ MEI is a connection to MIAX systems that enables Market 
Makers to submit electronic quotes to MIAX.
---------------------------------------------------------------------------

    The Exchange expects to file with the Commission to assess fees 
applicable to ToM. Such fees will not be assessed until the first full 
calendar month during which MIAX lists and trades options overlying at 
least 100 underlying securities. Once MIAX begins listing and trading 
options overlying at least 100 underlying securities, and subject to 
filing with the Commission, MIAX will assess market data fees 
applicable to ToM.
2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with 
Section 6(b) \7\ of the Act in general, and furthers the objectives of 
Section 6(b)(5) \8\ of the Act 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, and it is not designed to 
permit unfair discrimination among customers, brokers, or dealers.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The ToM product is designed to promote just and equitable 
principles of trade by providing all subscribers with top of market 
data that should enable them to make informed decisions on trading in 
MIAX options by using the ToM data to assess current market conditions 
that directly affect such decisions. The market data provided by ToM 
removes impediments to, and is designed to further perfect, the 
mechanisms of a free and open market and a national market system by 
making the MIAX market more transparent and accessible to market 
participants making routing decisions concerning their options orders.
    The ToM market data product is also designed to protect investors 
and the public interest by providing data to subscribers that is 
already currently available on other exchanges \9\ and will enable MIAX 
to compete with such other exchanges, thereby offering market 
participants with additional data in order to seek the market center 
with the best price and the most liquidity on which to execute their 
transactions, all to the benefit of investors and the public interest, 
and to the marketplace as a whole.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 60459 (August 7, 
2009), 74 FR 41466 (August 17, 2009) (SR-Phlx-2009-54) (Order 
Approving a Proposed Rule Change to Establish Fees for the Top of 
PHLX Options Direct Data Feed Product).
---------------------------------------------------------------------------

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.
    On the contrary, the Exchange believes that the ToM market data 
product will enhance competition in the U.S. options markets by 
providing similar data to that which is currently provided on another 
options exchange.\10\
---------------------------------------------------------------------------

    \10\ Id.
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments were neither solicited or 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 \11\ and Rule 19b-4(f)(6) \12\ 
thereunder.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-MIAX-2013-05 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-MIAX-2013-05. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the

[[Page 14619]]

public in accordance with the provisions of 5 U.S.C. 552, will be 
available for Web site viewing and printing in the Commission's Public 
Reference Room, 100 F Street NE., Washington, DC 20549, on official 
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of 
such filing also will be available for inspection and copying at the 
principal office of the Exchange. All comments received will be posted 
without change; the Commission does not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-MIAX-2013-05 and should be submitted on or before March 
27, 2013.

For the Commission, by the Division of Trading and Markets, pursuant 
to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-05166 Filed 3-5-13; 8:45 am]
BILLING CODE 8011-01-P


