[Federal Register Volume 88, Number 237 (Tuesday, December 12, 2023)]
[Notices]
[Pages 86193-86197]
[FR Doc No: 2023-27161]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-99090; File No. SR-PEARL-2023-65]

Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX
Pearl Options Fee Schedule for Purge Ports

December 6, 2023.
    Pursuant to 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 November 22, 2023, MIAX PEARL, LLC (``MIAX Pearl'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
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 proposes to amend the MIAX Pearl Options Exchange Fee
Schedule (the ``Fee Schedule'') to amend fees for MIAX Express Network
(``MEO'') \3\ Purge Ports (``Purge Ports'').\4\
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    \3\ ``MEO Interface'' or ``MEO'' means a binary order interface
for certain order types as set forth in Rule 516 into the MIAX Pearl
System. See the Definitions Section of the Fee Schedule and Exchange
Rule 100.
    \4\ The proposed fee change is based on a recent proposal by
Nasdaq Phlx LLC (``Phlx'') to adopt fees for purge ports. See
Securities Exchange Act Release No. 97825 (June 30, 2023), 88 FR
43405 (July 7, 2023) (SR-Phlx-2023-28).
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    The text of the proposed rule change is available on the Exchange's
website at https://www.miaxglobal.com/markets/us-options/pearl-options/rule-filings at MIAX Pearl'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 is proposing to amend the fees for Purge Ports, which
is a function enabling the Exchange's two types of Members,\5\ Market
Makers \6\ and Electronic Exchange Members \7\ (``EEMs''), to cancel
all open orders or a subset of open orders through a single cancel
message. The Exchange currently provides Members the option to purchase
Purge Ports to assist in their quoting activity. Purge Ports provide
Members with the ability to send purge messages to the Exchange
System.\8\ Purge Ports are not capable of sending or receiving any
other type of messages or information. The use of Purge Ports is
completely optional and no rule or regulation requires that a Market
Maker utilize them.
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    \5\ The term ``Member'' means an individual or organization that
is registered with the Exchange pursuant to Chapter II of Exchange
Rules for purposes of trading on the Exchange as an ``Electronic
Exchange Member'' or ``Market Maker.'' Members are deemed
``members'' under the Exchange Act. See the Definitions Section of
the Fee Schedule and Exchange Rule 100.
    \6\ The term ``Market Maker'' or ``MM'' means a Member
registered with the Exchange for the purpose of making markets in
options contracts traded on the Exchange and that is vested with the
rights and responsibilities specified in Chapter VI of the Exchange
Rules. See the Definitions Section of the Fee Schedule and Exchange
Rule 100.
    \7\ The term ``Electronic Exchange Member'' or ``EEM'' means the
holder of a Trading Permit who is a Member representing as agent
Public Customer Orders or Non-Customer Orders on the Exchange and
those non-Market Maker Members conducting proprietary trading.
Electronic Exchange Members are deemed ``members'' under the
Exchange Act. See the Definitions Section of the Fee Schedule and
Exchange Rule 100.
    \8\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
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    The Exchange initially filed the proposal on September 29, 2023
(SR-PEARL-2023-52) (the ``Initial Proposal'').\9\ On November 22, 2023,
the Exchange withdrew the Initial Proposal and replaced it with this
filing.
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    \9\ See Securities Exchange Act Release No. 98733 (October 12,
2023), 88 FR 71907 (October 18, 2023) (SR-PEARL-2023-52).
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    Unlike other options exchanges that charge fees for Purge Ports on
a per port basis,\10\ the Exchange assesses a flat fee of $750 per
month, regardless of the number of Purge Ports utilized by a Market
Maker. Currently, a Market Maker may request and be allocated two (2)
Purge Ports per Matching Engine \11\ to which it connects and not all
Members connect to all of the Exchange's Matching Engines.
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    \10\ See Cboe BXZ Exchange, Inc. (``BZX'') Options Fee Schedule,
Options Logical Port Fees, Purge Ports ($750 per purge port per
month); Cboe EDGX Exchange, Inc. (``EDGX'') Options Fee Schedule,
Options Logical Port Fees, Purge Ports ($750 per purge port per
month); Cboe Exchange, Inc. (``Cboe'') Fee Schedule ($850 per purge
port per month). See also Nasdaq GEMX, Options 7, Pricing Schedule,
Section 6.C.(3). Nasdaq GEMX, LLC (``Nasdaq GEMX'') assesses its
members $1,250 per SQF Purge Port per month, subject to a monthly
cap of $17,500 for SQF Purge Ports and SQF Ports, applicable to
market makers. See also Securities Exchange Act Release No. 97825
(June 30, 2023), 88 FR 43405 (July 7, 2023) (SR-Phlx-2023-28).
    \11\ A Matching Engine is a part of the Exchange's electronic
system that processes options quotes and trades on a symbol-by-
symbol basis. Some matching engines will process option classes with
multiple root symbols, and other matching engines will be dedicated
to one single option root symbol (for example, options on SPY will
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.
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    The Exchange now proposes to amend the fee for Purge Ports to align
more closely with other exchanges who charge on a per port basis by
providing two (2) Purge Ports per Matching Engine for a monthly flat
fee of $600 per month per Matching Engine. The only difference with a
per port structure is that Members receive two (2) Purge Ports per
Matching Engine for the same proposed monthly fee, rather than being
charged a separate fee for each Purge Port. The Exchange proposes to
charge the proposed fee for Purge Ports per Matching Engine, instead on
a per Purge Port basis, due to its System architecture which provides
two (2) Purge Ports per Matching Engine for redundancy purposes. In
addition, the proposed fee is lower than the comparable fee charged by
competing exchanges that also charge on a per port basis,
notwithstanding that the Exchange is providing up to two (2) Purge
Ports for that same lower fee.\12\
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    \12\ See supra note 10.
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    Similar to a per port charge, Members are able to select the
Matching Engines that they want to connect to,\13\ based on the
business needs of each Market Maker, and pay the applicable fee based
on the number of Matching Engines and ports utilized. The Exchange
believes

that the proposed fee provides Members with flexibility to control
their Purge Port costs based on the number of Matching Engines each
Marker Maker elects to connect to based on each Market Maker's business
needs.
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    \13\ The Exchange notes that each Matching Engine corresponds to
a specified group of symbols. Certain Market Makers choose to only
quote in certain symbols while other Market Makers choose to quote
the entire market.
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* * * * *
    A logical port represents a port established by the Exchange within
the Exchange's System for trading and billing purposes. Each logical
port grants a Member the ability to accomplish a specific function,
such as order entry, order cancellation, access to execution reports,
and other administrative information.
    Purge Ports are designed to assist Members \14\ in the management
of, and risk control over, their orders, particularly if the firm is
dealing with a large number of securities. For example, if a Market
Maker detects market indications that may influence the execution
potential of their orders, the Market Maker may use Purge Ports to
reduce uncertainty and to manage risk by purging all orders in a number
of securities. This allows Members to seamlessly avoid unintended
executions, while continuing to evaluate the market, their positions,
and their risk levels. Purge Ports are used by Members that conduct
business activity that exposes them to a large amount of risk across a
number of securities. Purge Ports enable Members to cancel all open
orders, or a subset of open orders through a single cancel message. The
Exchange notes that Purge Ports increase efficiency of already existing
functionality enabling the cancellation of orders.
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    \14\ Members seeking to become registered as a Market Maker must
comply with the applicable requirements of Chapter VI of the
Exchange's Rules.
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    The Exchange operates highly performant systems with significant
throughput and determinism which allows participants to enter, update
and cancel orders at high rates. Members may currently cancel
individual orders through the existing functionality, such as through
the use of a mass cancel message by which a Market Maker may request
that the Exchange remove all or a subset of its quotations and block
all or a subset of its new inbound quotations.\15\ Other than Purge
Ports being a dedicated line for cancelling quotations, Purge Ports
operate in the same manner as a mass cancel message being sent over a
different type of port. For example, like Purge Ports, mass
cancellations sent over a logical port may be done at either the firm
or MPID level. As a result, Members can currently cancel orders in
rapid succession across their existing logical ports \16\ or through a
single cancel message, all open orders or a subset of open orders.
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    \15\ See Exchange Rule 519C(a) and (b).
    \16\ Current Exchange port functionality supports cancelation
rates that exceed one thousand messages per second and the
Exchange's research indicates that certain market participants rely
on such functionality and at times utilize such cancelation rates.
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    Similarly, Members may also use cancel-on-disconnect control when
they experience a disruption in connection to the Exchange to
automatically cancel all orders, as configured or instructed by the
Member or Market Maker.\17\ In addition, the Exchange already provides
similar ability to mass cancel orders through the Exchange's risk
controls, which are offered at no charge and enables Members to
establish pre-determined levels of risk exposure, and can be used to
cancel all open orders.\18\ Accordingly, the Exchange believes that the
Purge Ports provide an efficient option as an alternative to already
available services and enhance the Member's ability to manage their
risk.
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    \17\ See Exchange Rule 519C(c).
    \18\ See Exchange Rule 532.
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    The Exchange believes that market participants benefit from a
dedicated purge mechanism for specific Members and to the market as a
whole. Members will have the benefit of efficient risk management and
purge tools. The market will benefit from potential increased quoting
and liquidity as Members may use Purge Ports to manage their risk more
robustly. Only Members that request Purge Ports would be subject to the
proposed fees, and other Members can continue to operate in exactly the
same manner as they do today without dedicated Purge Ports, but with
the additional purging capabilities described above.
Implementation Date
    The proposed fees are immediately effective.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with section 6(b) of the Act,\19\ in general, and furthers the
objectives of section 6(b)(5) of the Act,\20\ in particular, in that it
is not designed to permit unfair discrimination among customers,
brokers, or dealers. The Exchange also believes that its proposed fee
is consistent with section 6(b)(4) of the Act \21\ because it
represents an equitable allocation of reasonable dues, fees and other
charges among market participants.
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    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(5).
    \21\ 15 U.S.C. 78f(b)(4).
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    The Exchange supports the proposed fee change with the below
justification because a similar justification was used in a recent 2023
proposal filed with the Commission by another national securities
exchange, Phlx, to adopt fees for purge ports, which the Commission
deemed acceptable by not suspending that filing during the applicable
60-day review period.\22\ In fact, the same justification Phlx utilized
was also used in similar recent proposals to adopt fees for purge ports
by two of Phlx's affiliated exchanges.\23\ Therefore, the Exchange
utilized the below justification based on this recent Commission
precedent from approximately one month ago.
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    \22\ See supra note 3.
    \23\ See Securities Exchange Act Release Nos. 98770 (October 18,
2023), 88 FR 73065 (October 24, 2023) (SR-BX-2023-026); and 98768
(October 18, 2023), 88 FR 73056 (October 24, 2023) (SR-NASDAQ-2023-
041). While the Exchange included a cost-based justification in a
related filing to amend fees for connectivity, it does not believe a
cost-based justification is require here because Purge Ports are
optional functionality and no cost-based justification was provided
by Phlx or any of its affiliates in their same filings to adopt fees
for purge ports. Nor does the Commission Staff's own fee guidance
include such a requirement. See Staff Guidance on SRO Rule Filings
Relating to Fees (May 21, 2019), available at https://www.sec.gov/tm/staff-guidance-sro-rule-filings-fees.
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    The Exchange believes that the proposed rule change would promote
just and equitable principles of trade and remove impediments to and
perfect the mechanism of a free and open market because offering
Members optional service and flexible fee structures which promotes
choice, flexibility, efficiency, and competition. The Exchange believes
Purge Ports enhance Members' ability to manage orders, which would, in
turn, improve their risk controls to the benefit of all market
participants. The Exchange believes that Purge Ports foster cooperation
and coordination with persons engaged in facilitating transactions in
securities because designating Purge Ports for purge messages may
encourage better use of such ports. This may, concurrent with the ports
that carry orders and other information necessary for market making
activities, enable more efficient, as well as fair and reasonable, use
of Members' resources. Similar connectivity and functionality is
offered by options exchanges, including the Exchange's own affiliated
options exchanges, and other equities exchanges.\24\ The Exchange
believes that

proper risk management, including the ability to efficiently cancel
multiple orders quickly when necessary, is similarly valuable to firms
that trade in the equities market, including Members that have
heightened quoting obligations that are not applicable to other market
participants.
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    \24\ See supra notes 4 and 10. See also Securities Exchange Act
Release No. 77613 (April 13, 2016), 81 FR 23023 (April 19, 2016).
See also Securities Exchange Act Release Nos. 79956 (February 3,
2017), 82 FR 10102 (February 9, 2017) (SR-BatsBZX-2017-05); 79957
(February 3, 2017), 82 FR 10070 (February 9, 2017) (SR-BatsEDGX-
2017-07); 83201 (May 9, 2018), 83 FR 22546 (May 15, 2018) (SR-C2-
2018-006).
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    Purge Ports do not relieve Members of their quoting obligations or
firm quote obligations under Regulation NMS Rule 602.\25\ Specifically,
any interest that is executable against a Member's or Market Maker's
orders that is received by the Exchange prior to the time of the
removal of orders request will automatically execute. Members that
purge their orders will not be relieved of the obligation to provide
continuous two-sided orders on a daily basis, nor will it prohibit the
Exchange from taking disciplinary action against a Market Maker for
failing to meet their continuous quoting obligation each trading
day.\26\
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    \25\ See Exchange Rule 604. See also generally Chapter VI of the
Exchange's Rules.
    \26\ Id.
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    The Exchange is not the only exchange to offer this functionality
and to charge associated fees.\27\ The Exchange believes the proposed
fee for Purge Ports is reasonable because it is lower than the fees
currently charged by other exchanges for similar port functionality.
For example, BZX and EDGX charge a fee of $750 per purge port per
month, Cboe charges $850 per purge port per month, Nasdaq GEMX assesses
its members $1,250 per SQF Purge Port per month, subject to a monthly
cap of $17,500 for SQF Purge Ports and SQF Ports.\28\
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    \27\ See supra notes 4 and 10.
    \28\ See supra note 10.
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    The Exchange believes it is reasonable to charge $600 per month for
Purge Ports as proposed because such ports were specially developed to
allow Members to send a single message to cancel multiple orders,
thereby assisting firms in effectively managing risk. The Exchange also
believes that a Member that chooses to utilize Purge Ports may, in the
future, reduce their need for additional ports by consolidating cancel
messages to their dedicated Purge Port and thus freeing up some
capacity of the existing logical ports and, therefore, allowing for
increased message traffic without paying for additional logical ports.
Purge Ports provide the ability to cancel multiple orders with a single
message over a dedicated port, and, therefore, may create efficiencies
for firms and provide a more efficient solution for them based on their
risk management needs. In addition, Purge Port requests may cancel
orders submitted over numerous ports and contain added functionality to
purge only a subset of these orders. Effective risk management is
important both for individual market participants that choose to
utilize risk features provided by the Exchange, as well as for the
market in general. As a result, the Exchange believes that it is
appropriate to charge fees for such functionality as doing so aids in
the maintenance of a fair and orderly market.
    The Exchange also believes that its ability to set fees for Purge
Ports is subject to significant substitution-based forces because
Members are able to rely on currently available services both free and
those they receive when using existing trading protocols. If the value
of the efficiency introduced through the Purge Port functionality is
not worth the proposed fees, Members will simply continue to rely on
the existing functionality and not pay for Purge Ports. In that regard,
Members may currently cancel individual orders through the existing
functionality, such as through the use of a mass cancel message by
which a Market Maker may request that the Exchange remove all or a
subset of its quotations and block all or a subset of its new inbound
quotations. Already Members can also cancel orders individually and by
utilizing Exchange protocols that allow them to develop proprietary
systems that can send cancel messages at a high rate.\29\ In addition,
the Exchange already provides similar ability to mass cancel orders
through the Exchange's risk controls, which are offered at no charge
that enables Members to establish pre-determined levels of risk
exposure, and can be used to cancel all open orders.\30\
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    \29\ Current Exchange port functionality supports cancellation
rates that exceed one thousand messages per second and the
Exchange's research indicates that certain Participants rely on such
functionality and at times utilize such cancellation rates.
    \30\ See Exchange Rule 532.
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    Further, like Purge Ports, Members may also cancel all or a subset
of its orders in the System, by firm name or by MPID, over their
existing ports, or by requesting the Exchange staff to effect such
cancellations.\31\
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    \31\ See Exchange Rule 519C(a).
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    Similarly, Members may use cancel-on-disconnect control when they
experience a disruption in their connection to the Exchange and
immediately cancel all pending quotes in the Exchange's System.\32\
Finally, this existing purging functionality will allow Members to
achieve essentially the same outcome in canceling orders as they would
by utilizing the Purge Ports. Accordingly, the Exchange believes that
the proposed Purge Ports fee is reasonable because it is related to the
efficiency of Purge Ports and to other means and services already
available which are either free or already a part of a fee assessed to
the Members for existing connectivity. Accordingly, because Purge Ports
provide additional optional functionality, excessive fees would simply
serve to reduce or eliminate demand for this optional product.
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    \32\ See Exchange Rule 519C(c).
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    The Exchange also believes that offering Purge Ports at the
Matching Engine level promotes risk management across the industry, and
thereby facilitates investor protection. Some market participants, in
particular the larger firms, could and do build similar risk
functionality (as described above) in their trading systems that permit
the flexible cancellation of orders entered on the Exchange at a high
rate. Offering Matching Engine level protections ensures that such
functionality is widely available to all firms, including smaller firms
that may otherwise not be willing to incur the costs and development
work necessary to support their own customized mass cancel
functionality.
    As noted above, the Exchange is not the only exchange to offer
dedicated Purge Ports, and the proposed rate is lower than that charged
by other exchanges for similar functionality. The Exchange also
believes that moving to a per Matching Engine fee is reasonable due to
the Exchange's architecture that provides it the ability to provide two
(2) Purge Ports per Matching Engine for a fee that would still be lower
than competing exchanges that charge on a per port basis. Generally
speaking, restricting the Exchange's ability to charge fees for these
services discourages innovation and competition. Specifically in this
case, the Exchange's inability to offer similar services to those
offered by other exchanges, and charge reasonable and equitable fees
for such services, would put the Exchange at a significant competitive
disadvantage and, therefore, serve to restrict competition in the
market--especially when other exchanges assess comparable fees higher
than those proposed by the Exchange.
    The Exchange believes that the proposed Purge Port fees are
equitable because the proposed Purge Ports are

completely voluntary as they relate solely to optional risk management
functionality.
    The Exchange also believes that the proposed amendments to its Fee
Schedule are not unfairly discriminatory because they will apply
uniformly to all Members that choose to use the optional Purge Ports.
Purge Ports are completely voluntary and, as they relate solely to
optional risk management functionality, no Market Maker is required or
under any regulatory obligation to utilize them. All Members that
voluntarily select this service option will be charged the same amount
for the same services. All Members have the option to select any
connectivity option, and there is no differentiation among Members with
regard to the fees charged for the services offered by the Exchange.

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. Purge Ports are completely
voluntary and are available to all Members on an equal basis at the
same cost. While the Exchange believes that Purge Ports provide a
valuable service, Members can choose to purchase, or not purchase,
these ports based on their own determination of the value and their
business needs. No Member is required or under any regulatory
obligation to utilize Purge Ports. Accordingly, the Exchange believes
that Purge Ports offer appropriate risk management functionality to
firms that trade on the Exchange without imposing an unnecessary or
inappropriate burden on competition.
    Furthermore, the Exchange operates in a highly competitive
environment, and its ability to price the Purge Ports is constrained by
competition among exchanges that offer similar functionality. As
discussed, there are currently a number of similar offers available to
market participants for higher fees at other exchanges. Proposing fees
that are excessively higher than established fees for similar
functionality would simply serve to reduce demand for the Purge Ports,
which as discussed, market participants are under no obligation to
utilize. It could also cause firms to shift trading to other exchanges
that offer similar functionality at a lower cost, adversely impacting
the overall trading on the Exchange and reducing market share. In this
competitive environment, potential purchasers are free to choose which,
if any, similar product to purchase to satisfy their need for risk
management. As a result, the Exchange believes this proposed rule
change permits fair competition among national securities exchanges.
    The Exchange also does not believe the proposal would cause any
unnecessary or inappropriate burden on intermarket competition as other
exchanges are free to introduce their own purge port functionality and
lower their prices to better compete with the Exchange's offering. The
Exchange does not believe the proposed rule change would cause any
unnecessary or inappropriate burden on intramarket competition.
Particularly, the proposal would apply uniformly to any market
participant, in that it does not differentiate between Members. The
proposal would allow any interested Members to purchase Purge Port
functionality based on their business needs.

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

    The Exchange received one comment letter on the proposal.\33\ This
comment letter was submitted not only on this proposal, but also the
proposals by the Exchange and its affiliates to amend fees for 10Gb ULL
connectivity and certain ports. Overall, the Exchange believes that the
issues raised by the commenter are not germane to this proposal because
they apply primarily to the other fee filings. Also, the commenter's
raised concerns with the current environment surrounding exchange non-
transaction fee proposals that should be addressed by the Commission
through rule making, or Congress, more holistically and not through an
individual exchange fee filings. However, the commenter does raise one
issue that concerns this proposal whereby it asserts that the
Exchange's comparison to fees charged by other exchanges for similar
ports is irrelevant and unpersuasive. The core of the issue raised is
regarding the cost to connect to one exchange compared to the cost to
connect to others. A thorough response to this comment would require
the Exchange to obtain competitively sensitive information about other
exchange architecture and how their members connect. The Exchange is
not privy to this information. Further, the commenter compares the
Exchange's proposed rate to other exchanges that offer purge port
functionality across all matching engines for a single fee, but fails
to provide the same comparison to other exchanges that charge for purge
functionality like proposed here. The Exchange does not have insight
into the technical architecture of other exchanges so it is difficult
to ascertain the number of purge ports a firm would need to connect to
another exchange's entire market. Therefore, the Exchange is limited to
comparing its proposed fee to other exchanges' purge port fees as
listed in their fee schedules.
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    \33\ See letter from Thomas M. Merritt, Deputy General Counsel,
Virtu Financial, Inc. (``Virtu''), to Vanessa Countryman, Secretary,
Commission, dated November 8, 2023.
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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,\34\ and Rule 19b-4(f)(2) \35\ 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.
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    \34\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \35\ 17 CFR 240.19b-4(f)(2).
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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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
file number SR-PEARL-2023-65 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-PEARL-2023-65. 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 (https://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 a.m. and 3
p.m. Copies of the filing also will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-PEARL-2023-65 and should be submitted on
or before January 2, 2024.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
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    \36\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-27161 Filed 12-11-23; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: March 24, 2009 (Volume 74, Number 55)]
[Notices]
[Page 12356]
[DOCID:fr24mr09-61]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. QF09-261-000]

Lafarge Midwest, Inc.; Notice of Filing of Notice of Self-
Certification of Qualifying Status of a Cogeneration Facility

March 17, 2009.
    Take notice that on March 11, 2009, Lafarge Midwest, Inc., of 1435
Ford Avenue, Alpena, MI 49707 filed with the Federal Energy Regulatory
Commission (Commission) a notice of self-certification of a facility as
a qualifying cogeneration facility, pursuant to 18 CFR 292.207(a) of
the Commission's regulations.
    The facility produces cement as its primary activity. Waste heat
from this process is used to create steam, which serves as the primary
energy source for the production of electricity. Five turbines are
driven by the steam; each turbine is linked to a generator. The
combined nameplate capacity of the cogeneration facility is 48.75 MW.
    Excess power results from the aforesaid cogeneration process will
be sold to Alpena Power Company, which is interconnected with the
Qualifying Facility.
    A notice of self-certification does not institute a proceeding
regarding qualifying facility status; a notice of self-certification
provides notice that the entity making the filing has determined the
Facility meets the applicable criteria to be a qualifying facility. Any
person seeking to challenge such qualifying facility status may do so
by filing a motion pursuant to 18 CFR 292.207(d)(iii).
    This filing is accessible on-line at http://www.ferc.gov, using the
``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.

Kimberly D. Bose,
Secretary.
[FR Doc. E9-6284 Filed 3-23-09; 8:45 am]


[Federal Register Volume 79, Number 54 (Thursday, March 20, 2014)]
[Notices]
[Pages 15618-15619]
[FR Doc No: 2014-06124]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71727; File No. SR-BATS-2014-005]

Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Related to
Fees for Use of BATS Exchange, Inc.

March 14, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on March 4, 2014, BATS Exchange, Inc. (the ``Exchange'' or
``BATS'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Exchange has designated the proposed rule change as one establishing or
changing a member due, fee, or other charge imposed by the Exchange
under Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ which renders the proposed rule change effective upon
filing with the Commission. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange filed a proposal to amend the fee schedule applicable
to Members \5\ and non-members of the Exchange pursuant to BATS Rules
15.1(a) and (c). Changes to the fee schedule pursuant to this proposal
are effective upon filing.
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    \5\ A Member is any registered broker or dealer that has been
admitted to membership in the Exchange.
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    The text of the proposed rule change is available at the Exchange's
Web site at http://www.batstrading.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 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 parts 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 modify the ``Equities Pricing'' section of
its fee schedule effective March 3, 2014, in order to amend the fees
for certain routing strategies based on a change of fees at the New
York Stock Exchange LLC (``NYSE''). The Exchange also proposes to
remove certain unnecessary language from the definition of ``TCV'', or
total consolidated volume.
    The Exchange has previously provided a discounted fee for
Destination Specific Orders routed to certain of the largest market
centers measured by volume (NYSE, NYSE Arca and NASDAQ), which, in each
instance has been $0.0001 less per share for orders routed to such
market centers by the Exchange than such market centers currently
charge for removing liquidity (referred to by the Exchange as ``One
Under'' pricing). NYSE is implementing certain pricing changes
effective March 1, 2014, including modification from a fee to remove
liquidity of $0.0025 per share to a fee of $0.0026 per share.\6\ Based
on the changes in pricing at NYSE, BATS is proposing to increase its
fee for Destination Specific Orders \7\ executed at NYSE so that the
fee remains $0.0001 less per share for orders routed to NYSE.
Specifically, the Exchange proposes to increase the fee charged for
BATS + NYSE Destination Specific Orders executed at NYSE from $0.0024
per share to $0.0025 per share.
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    \6\ See SR-NYSE-2014-09, filed February 24, 2014, available at:
http://www.nyse.com/nysenotices/nyse/rule-filings/list.
    \7\ As defined in Exchange Rule 11.9(c)(12).
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    In addition, the Exchange offers a variety of routing strategies,
including ``SLIM'' and ``TRIM,'' each of which has a specific fee for
an execution that occurs at NYSE.\8\ Consistent with its One Under
pricing model, the Exchange currently charges $0.0024 per share for
executions that occur at NYSE through SLIM and TRIM. Based on the
increased fee at NYSE, the Exchange proposes to increase the fee
charged for SLIM and

TRIM orders executed at NYSE from $0.0024 per share to $0.0025 per
share.
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    \8\ See Exchange Rule 11.13(a)(3)(G) for a description of the
TRIM routing strategy and Exchange Rule 11.13(a)(3)(H) for a
description of the SLIM routing strategy.
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    In addition to the changes described above related to orders routed
to NYSE through certain Exchange routing strategies, the Exchange
proposes to eliminate certain unnecessary language from the fee
schedule. Beginning on December 9, 2013, the Exchange temporarily
excluded odd lot executions from the calculation of average daily TCV,
as defined on the Exchange's fee schedule as it relates to ``Equities
Pricing.'' \9\ Specifically, odd lots were excluded from the
calculation of TCV through January 31, 2014. The Exchange proposes to
remove language regarding the exclusion of odd lots, as such exclusion
has expired and is thus no longer necessary.
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    \9\ See Securities Exchange Act Release No. 71140 (December 19,
2013), 78 FR 78460 (December 26, 2013) (SR-BATS-2013-063).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the requirements of Section 6 of the Act.\10\
Specifically, the Exchange believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\11\ in that it provides for
the equitable allocation of reasonable dues, fees and other charges
among members and other persons using any facility or system which the
Exchange operates or controls. The Exchange notes that it operates in a
highly competitive market in which market participants can readily
direct order flow to competing venues if they deem fee levels at a
particular venue to be excessive. The Exchange believes that the
proposed changes to certain of the Exchange's non-standard routing fees
and strategies are equitably allocated, fair and reasonable, and non-
discriminatory in that they are equally applicable to all Members and
are designed to provide a reduced fee for orders routed to NYSE through
Exchange routing strategies as compared to applicable fees for
executions if such routed orders were instead executed directly by the
Member at NYSE.
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    \10\ 15 U.S.C. 78f.
    \11\ 15 U.S.C. 78f(b)(4).
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    The Exchange also believes that its removal of language from the
definition of TCV regarding the odd lot exclusion that has expired is
consistent with the Act. This change will help to avoid confusion and
does not substantively change the fees imposed by the Exchange.

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, as amended.
Because the market for order execution is extremely competitive,
Members may readily opt to disfavor the Exchange's routing services if
they believe that alternatives offer them better value. For an order
routed through the Exchange and executed at NYSE through the applicable
routing strategies, the proposed fee change is designed to maintain a
slight discount compared to the fee the Member would have paid if such
routed order was instead executed directly by a Member at NYSE. The
proposed change to remove the language for the exclusion of odd lots
imposes no burden on competition because such exclusion explicitly
expired on January 31, 2014.

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.

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) of the Act \12\ and paragraph (f) of Rule 19b-4
thereunder.\13\ 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.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f).
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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-BATS-2014-005 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-BATS-2014-005. 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 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-BATS-2014-005 and should be
submitted on or before April 10, 2014.
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    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-06124 Filed 3-19-14; 8:45 am]
BILLING CODE 8011-01-P