[Federal Register Volume 85, Number 95 (Friday, May 15, 2020)]
[Notices]
[Pages 29497-29499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10392]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88850; File No. SR-MIAX-2020-09]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Its Fee Schedule

May 11, 2020.
    Pursuant to the provisions of Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4

[[Page 29498]]

thereunder,\2\ notice is hereby given that on April 29, 2020, Miami 
International Securities Exchange LLC (``MIAX Options'' 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 Options Fee 
Schedule (the ``Fee Schedule'').
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings, 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 Exchange proposes to amend the list of MIAX Select Symbols \3\ 
contained in the Priority Customer Rebate Program (the ``Program'') \4\ 
of the Exchange's Fee Schedule to delete the Select Symbol ``S,'' 
associated with the Sprint Corporation (``Sprint''), from the Select 
Symbols list.
---------------------------------------------------------------------------

    \3\ The term ``MIAX Select Symbols'' means options overlying 
AAL, AAPL, AIG, AMAT, AMD, AMZN, BA, BABA, BB, BIDU, BP, C, CAT, 
CLF, CVX, DAL, EBAY, EEM, FB, FCX, GE, GILD, GLD, GM, GOOGL, GPRO, 
HAL, INTC, IWM, JCP, JNJ, JPM, KMI, KO, MO, MRK, NFLX, NOK, ORCL, 
PBR, PFE, PG, QCOM, QQQ, RIG, S, SPY, T, TSLA, USO, VALE, WBA, WFC, 
WMB, X, XHB, XLE, XLF, XLP, XOM and XOP.
    \4\ See section 1(a)(iii) of the Fee Schedule for a complete 
description of the Program.
---------------------------------------------------------------------------

    The Exchange initially created the list of MIAX Select Symbols on 
March 1, 2014,\5\ and has added and removed option classes from that 
list since that time.\6\ Select Symbols are rebated slightly higher in 
certain Program tiers than non-Select Symbols. The Exchange notes that 
on April 1, 2020, Sprint and T-Mobile US, Inc. (``T-Mobile'') announced 
the completion of a merger of the two companies, with T-Mobile 
continuing as the surviving company and Sprint shares converting into 
the right to receive T-Mobile shares.\7\ Further, the combined company 
will continue to trade under the symbol for T-Mobile, ``TMUS.'' Options 
on Sprint were authorized to be listed for trading on the Exchange 
pursuant to Rule 402, but are no longer listed for trading since Sprint 
is no longer the registered stock symbol for the merged company and as 
such, Sprint shares are no longer listed for trading on equity trading 
venues under the symbol ``S.'' The Exchange has also determined not to 
add the merged company, T-Mobile, to the MIAX Select Symbols list for 
business and competitive reasons.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 71700 (March 12, 
2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-2014-13).
    \6\ See Securities Exchange Act Release Nos. 87964 (January 14, 
2020), 85 FR 3435 (January 21, 2020) (SR-MIAX-2020-01); 87790 
(December 18, 2019), 84 FR 71037 (December 26, 2019) (SR-MIAX-2019-
49); 85314 (March 14, 2019), 84 FR 10359 (March 20, 2019) (SR-MIAX-
2019-07); 81998 (November 2, 2017), 82 FR 51897 (November 8, 2017) 
(SR-MIAX-2017-45); 81019 (June 26, 2017), 82 FR 29962 (June 30, 
2017) (SR-MIAX-2017-29); 79301 (November 14, 2016), 81 FR 81854 
(November 18, 2016) (SR-MIAX-2016-42); 74291 (February 18, 2015), 80 
FR 9841 (February 24, 2015) (SR-MIAX-2015-09); 74288 (February 18, 
2015), 80 FR 9837 (February 24, 2015) (SR-MIAX-2015-08); 73328 
(October 9, 2014), 79 FR 62230 (October 16, 2014) (SR-MIAX-2014-50); 
72567 (July 8, 2014), 79 FR 40818 (July 14, 2014) (SR-MIAX-2014-34); 
72356 (June 10, 2014), 79 FR 34384 (June 16, 2014) (SR-MIAX-2014-
26); 71700 (March 12, 2014), 79 FR 15188 (March 18, 2014) (SR-MIAX-
2014-13).
    \7\ See T-Mobile Completes Merger with Sprint to Create the New 
T-Mobile (April 1, 2020), available at https://newsroom.sprint.com/tmobile-completes-merger-with-sprint.htm.
---------------------------------------------------------------------------

    Accordingly, the Exchange is amending its Fee Schedule to delete 
the symbol ``S'' from the list of MIAX Select Symbols contained in the 
Program. This amendment is intended to eliminate any potential 
confusion and to make it clear to market participants that ``S'' will 
not be a MIAX Select Symbol contained in the Program as ``S'' options 
are no longer listed on the Exchange.
2. Statutory Basis
    The Exchange believes that its proposal to amend the Fee Schedule 
is consistent with Section 6(b) of the Act \8\ in general, and furthers 
the objectives of Section 6(b)(4) of the Act,\9\ in that it is an 
equitable allocation of reasonable dues, fees and other charges among 
Exchange members and issuers and other persons using its facilities, 
and 6(b)(5) of the Act,\10\ 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(4).
    \10\ 15 U.S.C. 78f(b)(1) and (b)(5).
---------------------------------------------------------------------------

    In particular, the proposal to delete the symbol ``S'' from the 
list of MIAX Select Symbols contained in the Program is consistent with 
Section 6(b)(4) of the Act because the proposed changes will allow for 
continued benefit to investors by providing them an updated list of 
MIAX Select Symbols contained in the Program on the Exchange's Fee 
Schedule.
    The Exchange believes that the proposal to amend an option class 
that qualifies for the credit for transactions in MIAX Select Symbols 
is fair, equitable and not unreasonably discriminatory. The Exchange 
believes that the Program itself is reasonably designed because it 
incentivizes providers of Priority Customer \11\ order flow to send 
that Priority Customer order flow to the Exchange in order to receive a 
credit in a manner that enables the Exchange to improve its overall 
competitiveness and strengthen its market quality for all market 
participants. The Program, which provides increased incentives in 
certain tiers in high volume select symbols, is also reasonably 
designed to increase the competitiveness of the Exchange with other 
options exchanges that also offer increased incentives to higher volume 
symbols.
---------------------------------------------------------------------------

    \11\ 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). See 
Exchange Rule 100.
---------------------------------------------------------------------------

    The Exchange also believes that its proposal is consistent with 
Section 6(b)(5) of the Act because it will apply equally to all 
Priority Customer orders in MIAX Select Symbols in the Program. All 
similarly situated Priority Customer orders in MIAX Select Symbols are 
subject to the same rebate schedule, and access to the Exchange is 
offered on terms that are not unfairly discriminatory.

[[Page 29499]]

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
rule change is a not a competitive filing but rather is designed to 
update the list of MIAX Select Symbols contained in the Program in 
order to avoid potential confusion on the part of market participants.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act,\12\ and Rule 19b-4(f)(2) \13\ 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 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-MIAX-2020-09 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-MIAX-2020-09. 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-2020-09 and should be submitted on 
or before June 5, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-10392 Filed 5-14-20; 8:45 am]
BILLING CODE 8011-01-P


