[Federal Register Volume 82, Number 149 (Friday, August 4, 2017)]
[Notices]
[Pages 36516-36519]
[FR Doc No: 2017-16403]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81268; File No. SR-NYSEARCA-2017-79]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Modify the NYSE
Arca Options Fee Schedule

July 31, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on July 20, 2017, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 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 proposes to modify the NYSE Arca Options Fee Schedule
(``Fee Schedule'') to add clarification and consistency, but the
Exchange is not proposing any changes to its fees. The Exchange
proposes to implement the fee change effective July 20, 2017. The
proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, 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 self-regulatory organization
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 those 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 parts of such statements.

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

1. Purpose
    The purpose of this filing is to make a number of textual changes
designed to clarify and add consistency to the Fee Schedule. The
Exchange is not proposing to make any substantive changes to its
current fees.
    Earlier this month, July 2017, the Exchange submitted a filing that
included clarifying changes to certain tables regarding Market Maker
incentives (the ``MM Cleanup Filing'').\4\ The first sets of proposed
changes are conforming changes, which are designed to align the text
used in other incentive programs described in the Fee Schedule with
those modified in the MM Cleanup Filing. Specifically, these conforming
changes include:
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    \4\ See Securities Exchange Act Release No. 81140 (July 13,
2017), 82 FR 33194 (July 19, 2017) (SR-NYSEArca-2017-77).
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     The Exchange proposes to re-locate the reference to
Endnote 15 from the beginning [sic] to the end [sic] of each of the
following tables: ``Customer and Professional Customer Monthly Posting
Credit Tiers and Qualifications for Executions in Penny Pilot Issues'';
``Customer and Professional Customer Incentive Program''; and [sic]
``Non-Customer Monthly Posting Credit Tiers and Qualifications for
Executions in Non-Penny Pilot Issues''; ``Take Fee Discount
Qualification for Penny Pilot Issues''; and ``Take Fee Discount
Qualification for Non-Penny Pilot Issues'' (the ``Modified Tables'').
Endnote 15 provides that the qualification thresholds set forth in the
applicable tables ``[i]ncludes transaction volume from the OTP Holder's
or OTP Firm's affiliates or its Appointed OFP or Appointed MM.'' \5\
Consistent with this proposed change, the Exchange proposes to remove
the language that appears at the end of each of the Modified Tables
providing that volume of an Appointed MM or Appointed OFP may be
included because it would be duplicative of text contained in Endnote
15.
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    \5\ See Fee Schedule, Endnote 15.
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     The Exchange proposes to replace reference to ``Total
Industry Customer equity and ETF option average daily volume'' with
``TCADV'' (as defined in Endnote 8) \6\ and to use this shorthand
reference in the Modified Tables. Given that TCADV is defined in
Endnote 8 and given that the ``Customer and Professional Customer
Monthly Posting Credit Tiers and Qualifications for Executions in Penny
Pilot Issues'' includes reference to Endnote 8, the Exchange proposes
to remove the following language from this table because it is
duplicative: ``Qualifications based in part on Total Industry Customer
equity and ETF option average daily volume (``TCADV'').''
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    \6\ See supra note 4, the MM Cleanup Filing (adding definition
of TCADV).
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     In each of the Modified Tables, the Exchange proposes to
replace reference to ``Posted Orders'' with ``posted interest'' and any
reference to ``orders'' with ``interest'' to make clear that, where
applicable, liquidity may include orders or quotes.
     For consistency, the Exchange proposes to remove any
capitalization from ``issues'' in reference to ``all issues'' in the
Modified Tables. The Exchange also proposes to capitalize ``Issues'' as
relates to ``Penny Pilot Issues,'' in the preamble to the ``Customer
and Professional Customer Monthly Posting Credit Tiers and
Qualifications for Executions in Penny Pilot Issues,'' and as relates
to ``non-Penny Pilot Issues,'' in the preamble to the ``Non-Customer
Monthly Posting Credit Tiers and Qualifications for Executions in Non-
Penny Pilot Issues.''
     The Exchange also proposes to add a comma and, where
applicable, the word ``or'', to signify an alternative qualification
basis in certain of the Modified Tables as well as to remove any
capitalization of the word ``Plus'' as relates to any alterative
qualification bases in the Modified Tables.
     The Exchange also proposes to alter the language in the
Modified Tables to clarify how the credits are applied, i.e., that
credit is applied to ``electronic executions of [the applicable] posted
interest'' in the applicable securities. For consistency and clarity,
the Exchange proposes to add ``Electronic'' to, as well as to
capitalize ``Non-Penny,'' in the table heading for the ``Non-Customer
Monthly Posting Credit Tiers and Qualifications for Executions in Non-
Penny Pilot Issues.''
     For ease of reference, the Exchange proposes to rename the
``Non-Customer Monthly Posting Credit Tiers and Qualifications for
Executions in Non-Penny Pilot Issues'' to ``Non-Customer, Non-Penny
Pilot Posting Credit Tiers.''
    In addition to the foregoing, the Exchange also proposes to
consistently utilize the term ``Customer'' to include Professional
Customers, unless otherwise specified. Per the current Fee Schedule,
regarding trade-related charges for standard options, the Exchange
specifies that ``[u]nless Professional Customer executions are
specifically delineated, such executions will be treated as Customer
executions for fee purposes.'' \7\ Although this language should
(arguably) apply to the sections that follow, including incentive
programs based on posted interest, the Exchange refers to both Customer
and Professional Customer volume being counted towards the same
incentives.\8\ Because the Exchange treats both Professional Customer
and Customer volume the same for purposes of achieving the Customer
Posting Tiers, the Exchange proposes to remove reference to
Professional Customer from these sections of the Fee Schedule.'' \9\
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    \7\ See Fee Schedule, NYSE Arca Options: Trade-Related Changes
for Standard Options. For additional clarity, the Exchange proposes
to revise this sentence to put Customer in quotations and to add
reference to credits. See proposed Fee Schedule, NYSE Arca Options:
Trade-Related Changes for Standard Options (providing that
``[u]nless Professional Customer executions are specifically
delineated, such executions will be treated as ``Customer''
executions for fee/credit purposes).
    \8\ See id., Customer and Professional Customer Monthly Posting
Credit Tiers and Qualifications for Executions in Penny Pilot
Issues; Customer and Professional Customer Incentive Program; and
Customer and Professional Customer Posting Credit Tiers In Non Penny
Pilot Issues (collectively, the ``Customer Posting Tiers'').
    \9\ See proposed Fee Schedule, the Customer Posting Tiers.

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    Consistent with this change, the Exchange proposes the following
changes to the Customer Posting Tiers:
     The Exchange proposes to re-name the ``Customer and
Professional Customer Monthly Posting Credit Tiers and Qualifications
for Executions in Penny Pilot Issues,'' as ``Customer Penny Pilot
Posting Credit Tiers.'' Consistent with certain of the conforming
changes referenced above regarding how the applicable credits are the
[sic] applied, the Exchange also proposes to modify the preamble to
provide that ``OTP Holders and OTP Firms meeting the qualifications
below will receive the corresponding posting credit on all electronic
executions of Customer posted interest in Penny Pilot Issues.'' In
addition, the Exchange proposes to update cross-references to this
newly named table as appears in the Firm and Broker Dealer Monthly Fee
Cap.
     The Exchange proposes to add a title to signify the
incentive program for ``Customer and Professional Customer Posting
Credit Tiers In Non Penny Pilot Issues,'' which title would be
``Customer Posting Credit Tiers in Non-Penny Pilot Issues.'' The
Exchange proposes to add a hyphen to the word ``Non Penny'' as appears
in the table, for internal consistency. The Exchange also proposes to
add a preamble to this table, which provides that ``OTP Holders and OTP
Firms meeting the qualifications below will receive the corresponding
credit on all electronic executions of Customer posted interest in Non-
Penny Pilot issues,'' and to reference Endnotes 8 and 15, which
describe what is included in eligible monthly volume and how that
volume is calculated. Consistent with the proposed reference to Endnote
8 at the beginning of this table, which includes a description of
qualifying ADV of Retail Orders of U.S. Equity Market Share on the NYSE
Arca Equity Market, the Exchange proposes to remove duplicative
references to Endnote 8 that appear throughout this table.
     For avoidance of doubt, the Exchange proposes to add a
sentence to Endnote 8 which provides that repeats that [sic] ``[u]nless
Professional Customer executions are specifically delineated, such
executions will be treated as ``Customer'' executions executions [sic]
in calculating qualifications for monthly posting credits or
discounts.''
    The Exchange also proposes to define ``Non-Customers,'' as used in
the Fee Schedule, to include Firms, Broker Dealers, and Market
Makers.\10\ Consistent with this change, the Exchange proposes to
utilize, as shorthand, the defined term Non-Customer in place of
references to Firms, Broker Dealers and Market Makers.\11\
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    \10\ See proposed Fee Schedule, NYSE Arca Options: Trade-Related
Changes for Standard Options (providing that ``Firms, Broker
Dealers, and Market Makers are collectively referred to herein as
``Non-Customers'').
    \11\ See proposed Fee Schedule, Discount in Take Liquidity Fees
for Professional Customer and Non-Customer Liquidity Removing
Interest; Take Fee Discount Qualification for Penny Pilot Issues
(providing alternative threshold of at least 2.00% of TCADV from
Professional Customer and Non-Customer Liquidity Removing interest
in all issues.''
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    Finally, the Exchange also proposes to re-locate the Market Maker
Incentive For Penny Pilot Issues; the Market Maker Incentive For Non-
Penny Pilot Issues; and the MM Tiers (collectively, the ``MM Tables''),
without altering the substance of these tables.\12\ Specifically, the
Exchange proposes to move the MM Tables immediately below the current
Discount in Take Liquidity Fees for Professional Customer, Market
Maker, Firm, and Broker Dealer Liquidity Removing Orders,\13\ which
would place the MM Tables Immediately before the recently modified
``Market Maker Penny Pilot and SPY Posting Credit Tiers.'' \14\ The
Exchange believes moving table applicable to certain participants
adjacent to each other would add to the clarity of the Fee Schedule and
make it easier to navigate and comprehend.
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    \12\ See supra note 4, the MM Cleanup Filing (includes
modifications to the text of the MM Tables).
    \13\ See supra note 10 (proposing to re-name this table).
    \14\ See supra note 4, the MM Cleanup Filing (includes
modifications to the text of the MM Tables).
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    To the extent not specifically noted herein, the Exchange has also
corrected certain typographical errors (such as missing hyphens or
redundant endnote markings) as well as streamlined certain text to add
clarity and transparency to the Fee Schedule.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\15\ in general, and furthers the
objectives of Sections 6(b)(4) and (5) of the Act,\16\ in particular,
because it provides for the equitable allocation of reasonable dues,
fees, and other charges among its members, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers or dealers. There are no changes to actual
fees in this filing.
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    \15\ 15 U.S.C. 78f(b).
    \16\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes the proposed non-substantive changes to the
Fee Schedule are reasonable, equitable, and not unfairly discriminatory
because the changes would add clarity, transparency and internal
consistency to the Fee Schedule making it easier to navigate and
comprehend, which would benefit all market participants.
    For these reasons, the Exchange believes that the proposal is
consistent with the Act.

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

    In accordance with Section 6(b)(8) of the Act,\17\ the Exchange
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 believes that the proposed
textual changes are not intended to have any impact on competition, but
instead are designed to make the Fee Schedule easier for market
participants to navigate and digest, which is in the public interest.
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    \17\ 15 U.S.C. 78f(b)(8).
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    The Exchange notes that it operates in a highly competitive market
in which market participants can readily favor competing venues. In
such an environment, the Exchange must continually review, and consider
adjusting, its fees and credits to remain competitive with other
exchanges. For the reasons described above, the Exchange believes that
the proposed rule change reflects this competitive environment.

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

    No written comments were solicited or received with respect to the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The foregoing rule change is effective upon filing pursuant to
Section 19(b)(3)(A) \18\ of the Act and subparagraph (f)(2) of Rule
19b-4 \19\ thereunder, because it establishes a due, fee, or other
charge imposed by the Exchange.
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    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such 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 under
Section 19(b)(2)(B) \20\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \20\ 15 U.S.C. 78s(b)(2)(B).
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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_ADDRESS>Please include
File Number SR-NYSEArca-2017-79 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-NYSEArca-2017-79. 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 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 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; 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-NYSEArca-2017-79, and should
be submitted on or before August 25, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-16403 Filed 8-3-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Notices]
[Pages 55776-55780]
[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

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).
---------------------------------------------------------------------------

    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).
---------------------------------------------------------------------------

 @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.
---------------------------------------------------------------------------

    \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
---------------------------------------------------------------------------
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

 @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.
---------------------------------------------------------------------------

    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:

 @ 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.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78f(b).
    \25\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.

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\
---------------------------------------------------------------------------

    \28\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-24307 Filed 11-6-18; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 75, Number 67 (Thursday, April 8, 2010)]
[Notices]
[Pages 17928-17929]
[FR Doc No: 2010-7955]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2010-F-0103]

Nisso America, Inc.; Filing of Food Additive Petition

AGENCY:  Food and Drug Administration, HHS.

ACTION:  Notice.

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SUMMARY:  The Food and Drug Administration (FDA) is announcing that
Nisso America, Inc., has filed a petition proposing that the food
additive regulations for hydroxypropyl cellulose be amended by lowering
the minimum viscosity from 145 centipoises (cPs) to 10 cPs and to
permit its use as a binder in dietary supplements.

FOR FURTHER INFORMATION CONTACT:  Laura Dye, Center for Food Safety and
Applied Nutrition (HFS-265), Food and Drug Administration, 5100 Paint
Branch Pkwy., College Park, MD 20740-3835,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Under the Federal Food, Drug, and Cosmetic
Act (sec. 409(b)(5) (21 U.S.C. 348(b)(5))), notice is given that a food
additive petition (FAP 0A4780) has been filed by Nisso America, Inc.,
45 Broadway, suite 2120, New York, NY 10006. The petition proposes to
amend the food additive regulations in Sec.  172.870 Hydroxypropyl
cellulose (21 CFR 172.870) by lowering the minimum permitted viscosity
of hydroxypropyl cellulose identified in paragraph (a)(1) of this
regulation from 145 cPs to 10 cPs and to permit its use as a binder in
dietary supplements.
    The agency has determined under 21 CFR 25.32(k) that this action is
of a type that does not individually or cumulatively have a significant
effect on the human environment. Therefore, neither an environmental
assessment

nor an environmental impact statement is required.

    Dated: March 17, 2010.
Mitchell A. Cheeseman,
Acting Director, Office of Food Additive Safety, Center for Food Safety
and Applied Nutrition.
[FR Doc. 2010-7955 Filed 4-7-10; 8:45 am]
BILLING CODE 4160-01-S