8011-01p
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-100468; File No. SR-MIAX-2024-26]
Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Its Fee Schedule
July 9, 2024.
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 June 28, 2024, Miami International Securities
Exchange, LLC (“MIAX” 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.
I.

Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed
Rule Change
The Exchange is filing a proposal to amend the MIAX Fee Schedule (“Fee Schedule”) to

extend until September 30, 2024 the: (i) SPIKES Options Market Maker Incentive Program (the
“Incentive Program”); and (ii) waiver period for certain non-transaction fees applicable to
Market Makers3 that trade solely in Proprietary Products4.
The text of the proposed rule change is available on the Exchange’s website at
https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings, at MIAX’s
principal office, and at the Commission’s Public Reference Room.

15 U.S.C. 78s(b)(1).

17 CFR 240.19b-4.

The term “Market Makers” refers to “Lead Market Makers”, “Primary Lead Market Makers” and
“Registered Market Makers” collectively. See Exchange Rule 100.

The term “Proprietary Product” means a class of options that is listed exclusively on the Exchange. See
Exchange Rule 100.

II.

Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the Exchange included statements concerning the

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

Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
1.

Purpose

The Exchange proposes to amend the Fee Schedule to extend until September 30, 2024
the: (i) Incentive Program; and (ii) waiver period for certain non-transaction fees applicable to
Market Makers that trade solely in Proprietary Products.
Background
On October 12, 2018, the Exchange received approval from the U.S. Securities and
Exchange Commission (“Commission”) to list and trade on the Exchange options on the
SPIKES® Index, a new index that measures expected 30-day volatility of the SPDR S&P 500
ETF Trust (commonly known and referred to by its ticker symbol, “SPY”).5 The Exchange
adopted its initial SPIKES options transaction fees on February 15, 2019 and adopted a new
section of the Fee Schedule – Section 1)a)xi), SPIKES – for those fees.6 Options on the SPIKES
Index began trading on the Exchange on February 19, 2019.

See Securities Exchange Act Release No. 84417 (October 12, 2018), 83 FR 52865 (October 18, 2018) (SRMIAX-2018-14) (Order Granting Approval of a Proposed Rule Change by Miami International Securities
Exchange, LLC to List and Trade on the Exchange Options on the SPIKES® Index).

See Securities Exchange Release No. 85283 (March 11, 2019), 84 FR 9567 (March 15, 2019) (SR-MIAX2019-11). The Exchange initially filed the proposal on February 15, 2019 (SR-MIAX-2019-04). That filing
was withdrawn and replaced with SR-MIAX-2019-11. On September 30, 2020, the Exchange filed its
proposal to, among other things, reorganize the Fee Schedule to adopt new Section 1)b), Proprietary
Products Exchange Fees, and moved the fees and rebates for SPIKES options into new Section 1)b)i). See
Securities Exchange Act Release Nos. 90146 (October 9, 2020), 85 FR 65443 (October 15, 2020) (SRMIAX-2020-32); 90814 (December 29, 2020), 86 FR 327 (January 5, 2021) (SR-MIAX-2020-39).

On May 31, 2019, the Exchange filed its first proposal in a series of proposals with the
Commission to amend the Fee Schedule to waive certain non-transaction fees applicable to Market
Makers that trade solely in Proprietary Products (including options on the SPIKES Index)
beginning June 1, 2019, through June 30, 2024.7 In particular, the Exchange adopted fee waivers
for Membership Application fees, monthly Market Maker Trading Permit fees, Application
Programming Interface (“API”) Testing and Certification fees for Members8, and monthly MIAX
Express Interface (“MEI”) Port9 fees assessed to Market Makers that trade solely in Proprietary
Products (including options on SPIKES) throughout the entire period of June 1, 2019 through June
30, 2024.
On September 30, 2021, the Exchange filed its initial proposal to implement the Incentive
Program for SPIKES options to incentivize Market Makers to improve liquidity, available
volume, and the quote spread width of SPIKES options beginning October 1, 2021, and ending
December 31, 2021.10 Technical details regarding the Incentive Program were published in a
Regulatory Circular on September 30, 2021.11 On October 12, 2021, the Exchange withdrew SRMIAX-2021-45 and refiled its proposal to implement the Incentive Program to provide

See Securities Exchange Act Release Nos. 86109 (June 14, 2019), 84 FR 28860 (June 20, 2019) (SRMIAX-2019-28); 87282 (October 10, 2019), 84 FR 55658 (October 17, 2019) (SR-MIAX-2019-43); 87897
(January 6, 2020), 85 FR 1346 (January 10, 2020) (SR-MIAX-2019-53); 89289 (July 10, 2020), 85 FR
43279 (July 16, 2020) (SR-MIAX-2020-22); 90146 (October 9, 2020), 85 FR 65443 (October 15, 2020)
(SR-MIAX-2020-32); 90814 (December 29, 2020), 86 FR 327 (January 5, 2021) (SR-MIAX-2020-39);
91498 (April 7, 2021), 86 FR 19293 (April 13, 2021) (SR-MIAX-2021-06); 93881 (December 30, 2021),
87 FR 517 (January 5, 2022) (SR-MIAX-2021-63); 95259 (July 12, 2022), 87 FR 42754 (July 17, 2022)
(SR-MIAX-2022-24); 96007 (October 7, 2022), 87 FR 62151 (October 13, 2022) (SR-MIAX-2022-32);
96588 (December 28, 2022), 88 FR 381 (January 4, 2023) (SR-MIAX-2022-47); 97887 (July 12, 2023), 88
FR 45936 (July 18, 2023) (SR-MIAX-2023-28); and 99047 (November 30, 2023), 88 FR 84861 (December
6, 2023) (SR-MIAX-2023-46).

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.

Full Service MEI Ports provide Market Makers with the ability to send Market Maker simple and complex
quotes, eQuotes, and quote purge messages to the MIAX System. Full Service MEI Ports are also capable
of receiving administrative information. Market Makers are limited to two Full Service MEI Ports per
matching engine. See Fee Schedule, Section 5)d)ii), footnote 28.

See SR-MIAX-2021-45.

See MIAX Options Regulatory Circular 2021-56, SPIKES Options Market Maker Incentive Program
(September 30, 2021) available at https://www.miaxglobal.com/sites/default/files/circularfiles/MIAX_Options_RC_2021_56.pdf.

additional details.12 In that filing, the Exchange specifically noted that the Incentive Program
would expire at the end of the period (December 31, 2021) unless the Exchange filed another
19b-4 Filing to amend the fees (or extend the Incentive Program).13
Between December 23, 2021, and April 3, 2024, the Exchange filed several proposals to
extend the Incentive Program, with the last extension period ending June 30, 2024.14 In each of
those filings, the Exchange specifically noted that the Incentive Program would expire at the end
of the then-current period unless the Exchange filed another 19b-4 Filing to amend the fees (or
extend the Incentive Program).15
Proposal to Extend the Incentive Program
The Exchange proposes to extend the Incentive Program for SPIKES options to continue
to incentivize Market Makers to improve liquidity, available volume, and the quote spread width
of SPIKES options. Currently, to be eligible to participate in the Incentive Program, a Market
Maker must meet certain minimum requirements related to quote spread width in certain in-themoney (ITM) and out-of-the-money (OTM) options as determined by the Exchange and
communicated to Members via Regulatory Circular.16 Market Makers must also satisfy a
minimum time in the market in the front 2 expiry months of 70%, and have an average quote size
of 25 contracts. The Exchange established two separate incentive compensation pools that are
used to compensate Market Makers that satisfy the criteria pursuant to the Incentive Program.

See Securities Exchange Act Release No. 93424 (October 26, 2021), 86 FR 60322 (November 1, 2021)
(SR-MIAX-2021-49).

See id.

See Securities Exchange Act Release Nos. 93881 (December 30, 2021), 87 FR 517 (January 5, 2022) (SRMIAX-2021-63); 94574 (April 1, 2022), 87 FR 20492 (April 7, 2022) (SR-MIAX-2022-12); 95259 (July
12, 2022), 87 FR 42754 (July 17, 2022) (SR-MIAX-2022-24); 96007 (October 7, 2022), 87 FR 62151
(October 13, 2022) (SR-MIAX-2022-32); 96588 (December 28, 2022), 88 FR 381 (January 4, 2023) (SRMIAX-2022-47); 97239 (April 3, 2023), 88 FR 20930 (April 7, 2023) (SR-MIAX-2023-13); 97883 (July
12, 2023), 88 FR 45941 (July 18, 2023) (SR-MIAX-2023-26); 99040 (November 29, 2023), 88 FR 84374
(December 5, 2023) (SR-MIAX-2023-47); and 99902 (April 3, 2024), 89 FR 24883 (April 9, 2024) (SRMIAX-2024-17).

See id.

See supra note 11.

The first pool (Incentive 1) has a total amount of $40,000 per month, which is allocated
to Market Makers that meet the minimum requirements of the Incentive Program. Market
Makers are required to meet minimum spread width requirements in a select number of ITM and
OTM SPIKES option contracts as determined by the Exchange and communicated to Members
via Regulatory Circular.17 A complete description of how the Exchange calculates the minimum
spread width requirements in ITM and OTM SPIKES options can be found in the published
Regulatory Circular.18 Market Makers are also required to maintain the minimum spread width,
described above, for at least 70% of the time in the front two (2) SPIKES options contract expiry
months and maintain an average quote size of at least 25 SPIKES options contracts. The amount
available to each individual Market Maker is capped at $10,000 per month for satisfying the
minimum requirements of the Incentive Program. In the event that more than four Market
Makers meet the requirements of the Incentive Program, each qualifying Market Maker is
entitled to receive a pro-rated share of the $40,000 monthly compensation pool dependent upon
the number of qualifying Market Makers in that particular month.
The second pool (Incentive 2 Pool) is capped at a total amount of $100,000 per month
which is used during the Incentive Program to further incentivize Market Makers who meet or
exceed the requirements of Incentive 1 (“qualifying Market Makers”) to provide tighter quote
width spreads. The Exchange ranks each qualifying Market Maker’s quote width spread relative
to each other qualifying Market Maker’s quote width spread. Market Makers with tighter
spreads in certain strikes, as determined by the Exchange and communicated to Members via
Regulatory Circular,19 are eligible to receive a pro-rated share of the compensation pool as
calculated by the Exchange and communicated to Members via Regulatory Circular,20 not to
exceed $25,000 per Member per month. Qualifying Market Makers are ranked relative to each
See id.

See id.

See id.

See id.

other based on the quality of their spread width (i.e., tighter spreads are ranked higher than wider
spreads) and the Market Maker with the best quality spread width receives the highest rebate,
while other eligible qualifying Market Makers receive a rebate relative to their quality spread
width.
The Exchange proposes to extend the Incentive Program until September 30, 2024. The
Exchange does not propose to make any amendments to how it calculates any of the incentives
provided for in Incentive Pools 1 or 2. The details of the Incentive Program can continue to be
found in the Regulatory Circular that was published on September 30, 2021, to all Exchange
Members.21 The purpose of this extension is to continue to incentivize Market Makers to
improve liquidity, available volume, and the quote spread width of SPIKES options. The
Exchange will announce the extension of the Incentive Program to all Members via a Regulatory
Circular.22
Proposal to Extend the Fee Waivers for Market Markets that Trade Solely
in Proprietary Products (including Spikes options)
The Exchange also proposes to extend the fee waiver for Membership Application fees,
monthly Market Maker Trading Permit fees, Member API Testing and Certification fees, and
monthly MEI Port fees assessed to Market Makers that trade solely in Proprietary Products
(including options on SPIKES) until September 30, 2024.
Membership Application Fees
The Exchange currently assesses a one-time Membership Application fee for applications
of potential Members. The Exchange assesses a one-time Membership Application fee on the
earlier of (i) the date the applicant is certified in the membership system, or (ii) once an
application for MIAX membership is finally denied. The one-time application fee is based upon

See id.

The Exchange notes that at the end of the extension period, the Incentive Program will expire unless the
Exchange files another 19b-4 Filing to amend the terms or extend the Incentive Program.

the applicant’s status as either a Market Maker or an Electronic Exchange Member (“EEM”).23
A Market Maker is assessed a one-time Membership Application fee of $3,000.
The Exchange proposes that the waiver for the one-time Membership Application fee of
$3,000 for Market Makers that trade solely in Proprietary Products (including options on
SPIKES) will be extended from June 30, 2024 until September 30, 2024, which the Exchange
proposes to state in the Fee Schedule. The purpose of this proposed change is to continue to
provide an incentive for potential Market Makers to submit membership applications, which
should result in an increase of potential liquidity in Proprietary Products, including options on
SPIKES. Even though the Exchange proposes to extend the waiver of this particular fee, the
overall structure of the fee is outlined in the Fee Schedule so that there is general awareness that
the Exchange intends to assess such a fee after September 30, 2024.
Trading Permit Fees
The Exchange issues Trading Permits that confer the ability to transact on the Exchange.
MIAX Trading Permits are issued to Market Makers and EEMs. Members receiving Trading
Permits during a particular calendar month are assessed monthly Trading Permit fees as set forth
in the Fee Schedule. As it relates to Market Makers, MIAX currently assesses a monthly
Trading Permit fee in any month the Market Maker is certified in the membership system, is
credentialed to use one or more MIAX MEI Ports in the production environment and is assigned
to quote in one or more classes. MIAX assesses the monthly Market Maker Trading Permit fee
for its Market Makers based on the greatest number of classes listed on MIAX that the MIAX
Market Maker was assigned to quote in on any given day within a calendar month and the
applicable fee rate is the lesser of either the per class basis or percentage of total national average

The term “Electronic Exchange Member” or “EEM” means the holder of a Trading Permit who is not a
Market Maker. Electronic Exchange Members are deemed “members” under the Exchange Act. See
Exchange Rule 100.

daily volume measurements. A MIAX Market Maker is assessed a monthly Trading Permit fee
according to the following table:24

Type of
Trading
Permit

Market Maker
(includes
RMM, LMM,
PLMM)

Monthly MIAX
Trading Permit
Fee

Per Class

% of National Average Daily
Volume

$7,000.00

Up to 10 Classes

Up to 20% of Classes by
volume

$12,000.00

Up to 40 Classes

Up to 35% of Classes by
volume

$17,000.00*

Up to 100 Classes

Up to 50% of Classes by
volume

Over 100 Classes

Over 50% of Classes by
volume up to all Classes listed
on MIAX

$22,000.00*

*

Market Maker Assignments
(the lesser of the applicable measurements below) 

Excludes Proprietary Products.
For these Monthly MIAX Trading Permit Fee levels, if the Market Maker’s total monthly executed volume during
the relevant month is less than 0.060% of the total monthly executed volume reported by OCC in the market maker
account type for MIAX-listed option classes for that month, then the fee will be $15,500 instead of the fee otherwise
applicable to such level.

MIAX proposes that the waiver for the monthly Trading Permit fee for Market Makers
that trade solely in Proprietary Products (including options on SPIKES) will be extended from
June 30, 2024 to September 30, 2024, which the Exchange proposes to state in the Fee Schedule.
The purpose of this proposed change is to continue to provide an incentive for Market Makers to
provide liquidity in Proprietary Products on the Exchange, which should result in increasing
potential order flow and volume in Proprietary Products, including options on SPIKES. Even
though the Exchange proposes to extend the waiver of this particular fee, the overall structure of
the fee is outlined in the Fee Schedule so that there is general awareness to potential Members
seeking a Trading Permit that the Exchange intends to assess such a fee after September 30,
2024.
The Exchange also proposes that Market Makers who trade Proprietary Products
(including options on SPIKES) along with multi-listed classes will continue to not have

See Fee Schedule, Section 3)b).

Proprietary Products (including SPIKES) counted toward those Market Makers’ class assignment
count or percentage of total national average daily volume. This exclusion is noted with the
symbol “” following the table that shows the monthly Trading Permit fees currently assessed to
Market Makers in Section 3)b) of the Fee Schedule.
API Testing and Certification Fee
The Exchange assesses an API Testing and Certification fee to all Members depending
upon Membership type. An API makes it possible for Members’ software to communicate with
MIAX software applications, and is subject to Members testing with, and certification by,
MIAX. The Exchange offers four types of interfaces: (i) the Financial Information Exchange
Port (“FIX Port”)25, which enables the FIX Port user (typically an EEM or a Market Maker) to
submit simple and complex orders electronically to MIAX; (ii) the MEI Port, which enables
Market Makers to submit simple and complex electronic quotes to MIAX; (iii) the Clearing
Trade Drop Port (“CTD Port”) 26, which provides real-time trade clearing information to the
participants to a trade on MIAX and to the participants’ respective clearing firms; and (iv) the
FIX Drop Copy Port (“FXD Port”)27, which provides a copy of real-time trade execution,
correction and cancellation information through a FIX Port to any number of FIX Ports
designated by an EEM to receive such messages.

A FIX Port is an interface with MIAX systems that enables the Port user (typically an Electronic Exchange
Member or a Market Maker) to submit simple and complex orders electronically to MIAX. See Fee
Schedule, Section 5)d)i).

Clearing Trade Drop (“CTD”) provides Exchange members with real-time clearing trade updates. The
updates include the Member’s clearing trade messages on a low latency, real-time basis. The trade
messages are routed to a Member’s connection containing certain information. The information includes,
among other things, the following: (i) trade date and time; (ii) symbol information; (iii) trade price/size
information; (iv) Member type (for example, and without limitation, Market Maker, Electronic Exchange
Member, Broker-Dealer); (v) Exchange Member Participant Identifier (“MPID”) for each side of the
transaction, including Clearing Member MPID; and (vi) strategy specific information for complex
transactions. CTD Port Fees will be assessed in any month the Member is credentialed to use the CTD Port
in the production environment. See Fee Schedule, Section 5)d)iii.

The FIX Drop Copy Port (“FXD”) is a messaging interface that will provide a copy of real-time trade
execution, trade correction and trade cancellation information for simple and complex orders to FIX Drop
Copy Port users who subscribe to the service. FIX Drop Copy Port users are those users who are designated
by an EEM to receive the information and the information is restricted for use by the EEM only. FXD Port
Fees will be assessed in any month the Member is credentialed to use the FXD Port in the production
environment. See Fee Schedule, Section 5)d)iv).

API Testing and Certification fees for Market Makers are assessed (i) initially per API for
CTD and MEI ports in the month the Market Maker has been credentialed to use one or more
ports in the production environment for the tested API and the Market Maker has been assigned
to quote in one or more classes, and (ii) each time a Market Maker initiates a change to its
system that requires testing and certification. API Testing and Certification fees will not be
assessed in situations where the Exchange initiates a mandatory change to the Exchange’s
system that requires testing and certification. The Exchange currently assesses a Market Maker
an API Testing and Certification fee of $2,500. The API Testing and Certification fees represent
costs incurred by the Exchange as it works with each Member for testing and certifying that the
Member’s software systems communicate properly with MIAX’s interfaces.
MIAX proposes to extend the waiver of the API Testing and Certification fee for Market
Makers that trade solely in Proprietary Products (including options on SPIKES) from June 30,
2024 until September 30, 2024, which the Exchange proposes to state in the Fee Schedule. The
purpose of this proposed change is to continue to provide an incentive for potential Market
Makers to develop software applications to trade in Proprietary Products, including options on
SPIKES. Even though the Exchange proposes to extend the waiver of this particular fee, the
overall structure of the fee is outlined in the Fee Schedule so that there is general awareness that
the Exchange intends to assess such a fee after September 30, 2024.
MEI Port Fees
MIAX assesses monthly MEI Port fees to Market Makers in each month the Member has
been credentialed to use the MEI Port in the production environment and has been assigned to
quote in at least one class. The amount of the monthly MEI Port fee is based upon the number of
classes in which the Market Maker was assigned to quote on any given day within the calendar
month, and upon the class volume percentages set forth in the Fee Schedule. The class volume
percentage is based on the total national average daily volume in classes listed on MIAX in the
prior calendar quarter. Newly listed option classes are excluded from the calculation of the

monthly MEI Port fee until the calendar quarter following their listing, at which time the newly
listed option classes will be included in both the per class count and the percentage of total
national average daily volume. The Exchange assesses MIAX Market Makers the monthly MEI
Port fee based on the greatest number of classes listed on MIAX that the MIAX Market Maker
was assigned to quote in on any given day within a calendar month and the applicable fee rate
that is the lesser of either the per class basis or percentage of total national average daily volume
measurement. MIAX assesses MEI Port fees on Market Makers according to the following
table:28

Monthly MIAX MEI Fees
$5,000.00
$10,000.00
$14,000.00
$17,500.00*
$20,500.00*

Market Maker Assignments
(the lesser of the applicable measurements below)
% of National Average Daily
Per Class
Volume
Up to 5 Classes
Up to 10% of Classes by volume
Up to 10 Classes
Up to 20% of Classes by volume
Up to 40 Classes
Up to 35% of Classes by volume
Up to 100 Classes
Up to 50% of Classes by volume
Over 50% of Classes by volume up
Over 100 Classes
to all Classes listed on MIAX

 Excludes Proprietary Products.
*

For these Monthly MIAX MEI Fees levels, if the Market Maker’s total monthly executed volume during the
relevant month is less than 0.060% of the total monthly executed volume reported by OCC in the market maker
account type for MIAX-listed option classes for that month, then the fee will be $14,500 instead of the fee
otherwise applicable to such level.

MIAX proposes to extend the waiver of the monthly MEI Port fee for Market Makers
that trade solely in Proprietary Products (including options on SPIKES) from June 30, 2024 until
September 30, 2024, which the Exchange proposes to state in the Fee Schedule. The purpose of
this proposal is to continue to provide an incentive to Market Makers to connect to MIAX
through the MEI Port such that they will be able to trade in MIAX Proprietary Products. Even
though the Exchange proposes to extend the waiver of this particular fee, the overall structure of
the fee is outlined in the Fee Schedule so that there is general awareness that the Exchange
intends to assess such a fee after September 30, 2024.

See Fee Schedule 5)d)ii).

The Exchange notes that for the purposes of this proposed change, other Market Makers
who trade MIAX Proprietary Products (including options on SPIKES) along with multi-listed
classes will continue to not have Proprietary Products (including SPIKES) counted toward those
Market Makers’ class assignment count or percentage of total national average daily volume.
This exclusion is noted by the symbol “” following the table that shows the monthly MEI Port
Fees currently assessed for Market Makers in Section 5)d)ii) of the Fee Schedule.
The proposed extension of the fee waivers are targeted at market participants, particularly
market makers, who are not currently members of MIAX, who may be interested in being a
Market Maker in Proprietary Products on the Exchange. The Exchange estimates that there are
fewer than ten (10) such market participants that could benefit from the extension of these fee
waivers. The proposed extension of the fee waivers does not apply differently to different sizes
of market participants, however the fee waivers do only apply to Market Makers (and not
EEMs).
Market Makers, unlike other market participants, take on a number of obligations,
including quoting obligations that other market participants do not have. Further, Market
Makers have added market making and regulatory requirements, which normally do not apply to
other market participants. For example, Market Makers have obligations to maintain continuous
markets, engage in a course of dealings reasonably calculated to contribute to the maintenance of
a fair and orderly market, and to not make bids or offers or enter into transactions that are
inconsistent with a course of dealing. Accordingly, the Exchange believes it is reasonable and
not unfairly discriminatory to continue to offer the fee waivers to Market Makers because the
Exchange is seeking additional liquidity providers for Proprietary Products, in order to enhance
liquidity and spreads in Proprietary Products, which is traditionally provided by Market Makers,
as opposed to EEMs.
Implementation
The proposed fee changes are effective beginning July 1, 2024.

2.

Statutory Basis

The Exchange believes that its proposal to amend its Fee Schedule is consistent with
Section 6(b) of the Act29 in general, and furthers the objectives of Section 6(b)(4) of the Act30 in
particular, in that it is an equitable allocation of reasonable fees and other charges among its
Members and issuers and other persons using its facilities. The Exchange also believes the
proposal furthers the objectives of Section 6(b)(5) of the Act in that it is designed to promote just
and equitable principles of trade, to remove impediments to and perfect the mechanism of a free
and open market and a national market system, and, in general to protect investors and the public
interest and is not designed to permit unfair discrimination between customers, issuers, brokers
and dealers.
The Exchange believes that it is reasonable, equitable, and not unfairly discriminatory to
extend the Incentive Program for Market Makers in SPIKES options until September 30, 2024.
The Incentive Program is reasonably designed because it will continue to incentivize Market
Makers to provide quotes and increased liquidity in select SPIKES options contracts. The
Incentive Program is reasonable, equitably allocated and not unfairly discriminatory because all
Market Makers in SPIKES options may continue to qualify for Incentive 1 and Incentive 2,
dependent upon each Market Maker’s quoting in SPIKES options in a particular month.
Additionally, if a SPIKES Market Maker does not satisfy the requirements of Incentive Pool 1 or
2, then it simply will not receive the rebate offered by the Incentive Program for that month.
The Exchange believes that it is reasonable, equitable and not unfairly discriminatory to
continue to offer this financial incentive to SPIKES Market Makers because it will continue to
benefit all market participants trading in SPIKES options. SPIKES options is a Proprietary
Product on the Exchange and the continuation of the Incentive Program encourages SPIKES
Market Makers to satisfy a heightened quoting standard, average quote size, and time in market.

15 U.S.C. 78f(b).

15 U.S.C. 78f(b)(4) and (5).

A continued increase in quoting activity and tighter quotes may yield a corresponding increase in
order flow from other market participants, which benefits all investors by deepening the
Exchange’s liquidity pool, potentially providing greater execution incentives and opportunities,
while promoting market transparency and improving investor protection.
The Exchange believes that the Incentive Program is equitable and not unfairly
discriminatory because it will continue to promote an increase in SPIKES options liquidity,
which may facilitate tighter spreads and an increase in trading opportunities to the benefit of all
market participants. The Exchange believes it is reasonable to operate the Incentive Program for
a continued limited period of time to strengthen market quality for all market participants. The
resulting increased volume and liquidity will benefit those Members who are eligible to
participate in the Incentive Program and will also continue to benefit those Members who are not
eligible to participate in the Incentive Program by providing more trading opportunities and
tighter spreads.
Additionally, the Exchange believes that the proposal to extend the fee waiver period for
certain non-transaction fees for Market Makers that trade solely in Proprietary Products is an
equitable allocation of reasonable fees because the proposal continues to waive non-transaction
fees for a limited period of time in order to enable the Exchange to improve its overall
competitiveness and strengthen its market quality for all market participants in MIAX’s
Proprietary Products, including options on SPIKES. The Exchange believe the proposed
extension of the fee waivers is fair and equitable and not unreasonably discriminatory because it
applies to all market participants not currently registered as Market Makers at the Exchange.
Any market participant may choose to satisfy the additional requirements and obligations of
being a Market Maker and trade solely in Proprietary Products in order to qualify for the fee
waivers.
The Exchange believes that the proposed extension of the fee waivers is equitable and not
unfairly discriminatory for Market Makers as compared to EEMs because Market Makers, unlike

other market participants, take on a number of obligations, including quoting obligations that
other market participants do not have.31 Further, Market Makers have added market making and
regulatory requirements, which normally do not apply to other market participants. For example,
Market Makers have obligations to maintain continuous markets, engage in a course of dealings
reasonably calculated to contribute to the maintenance of a fair and orderly market, and to not
make bids or offers or enter into transactions that are inconsistent with a course of dealing.
The Exchange believes it is reasonable and equitable to continue to waive the one-time
Membership Application fee, monthly Trading Permit Fee, API Testing and Certification fee,
and monthly MEI Port fee for Market Makers that trade solely in Proprietary Products (including
options on SPIKES) until September 30, 2024, since the waiver of such fees provides incentives
to interested market participants to trade in Proprietary Products. This should result in increasing
potential order flow and liquidity in MIAX Proprietary Products, including options on SPIKES.
The Exchange believes it is reasonable and equitable to continue to waive the API
Testing and Certification fee assessable to Market Makers that trade solely in Proprietary
Products (including options on SPIKES) until September 30, 2024, since the waiver of such fees
provides incentives to interested Members to develop and test their APIs sooner. Determining
system operability with the Exchange’s system will in turn provide MIAX with potential order
flow and liquidity providers in Proprietary Products.
The Exchange believes it is reasonable, equitable and not unfairly discriminatory that
Market Makers who trade in Proprietary Products along with multi-listed classes will continue to
not have Proprietary Products counted toward those Market Makers’ class assignment count or
percentage of total national average daily volume for monthly Trading Permit fees and monthly
MEI Port fees in order to incentivize existing Market Makers who currently trade in multi-listed
classes to also trade in Proprietary Products, without incurring certain additional fees.

See, generally, Exchange Rule 603.

The Exchange believes that the proposed extension of the fee waivers constitutes an
equitable allocation of reasonable fees and other charges among its Members and issuers and
other persons using its facilities. The proposed extension of the fee waivers means that all
prospective market makers that wish to become Market Maker Members of the Exchange and
quote solely in Proprietary Products may do so and have the above-mentioned fees waived until
September 30, 2024. The proposed extension of the fee waivers will continue to not apply to
potential EEMs because the Exchange is seeking to enhance the quality of its markets in
Proprietary Products through introducing more competition among Market Makers in Proprietary
Products. In order to increase the competition, the Exchange believes that it must continue to
waive entry type fees for such Market Makers. EEMs do not provide the benefit of enhanced
liquidity which is provided by Market Makers, therefore the Exchange believes it is reasonable
and not unfairly discriminatory to continue to only offer the proposed fee waivers to Market
Makers (and not EEMs). Further, the Exchange believes it is reasonable and not unfairly
discriminatory to continue to exclude Proprietary Products from an existing Market Maker’s
permit fees and port fees, in order to incentive such Market Makers to quote in Proprietary
Products. The amount of a Market Maker’s permit and port fee is determined by the number of
classes quoted and volume of the Market Maker. By excluding Proprietary Products from such
fees, the Exchange is able to incentivize Market Makers to quote in Proprietary Products. EEMs
do not pay permit and port fees based on the classes traded or volume, so the Exchange believes
it is reasonable, equitable, and not unfairly discriminatory to only offer the exclusion to Market
Makers (and not EEMs).
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.
Intra-Market Competition

The Exchange believes that the proposed extension of the Incentive Program to
September 30, 2024, would continue to increase intra-market competition by incentivizing
Market Makers to quote SPIKES options, which will continue to enhance the quality of quoting
and increase the volume of contracts available to trade in SPIKES options. To the extent that
this purpose is achieved, all the Exchange’s market participants should benefit from the
improved market liquidity for SPIKES options. Enhanced market quality and increased
transaction volume in SPIKES options that results from the anticipated increase in Market Maker
activity on the Exchange will benefit all market participants and improve competition on the
Exchange.
Additionally, the Exchange believes that the proposal to extend certain of the nontransaction fee waivers until September 30, 2024 for Market Makers that trade solely in
Proprietary Products would increase intra-market competition by incentivizing new potential
Market Makers to quote in Proprietary Products, which will enhance the quality of quoting and
increase the volume of contracts in Proprietary Products traded on MIAX, including options on
SPIKES. To the extent that this purpose is achieved, all the Exchange’s market participants
should benefit from the improved market liquidity for the Exchange’s Proprietary Products.
Enhanced market quality and increased transaction volume in Proprietary Products that results
from the anticipated increase in Market Maker activity on the Exchange will benefit all market
participants and improve competition on the Exchange.
The Exchange does not believe that the proposed rule change will impose any burden on
intra-market competition that is not necessary or appropriate in furtherance of the purposes of the
Act because the proposed changes for each separate type of market participant (new Market
Makers and existing Market Makers) will be assessed equally to all such market participants.
While different fees are assessed to different market participants in some circumstances, these
different market participants have different obligations and different circumstances as discussed

above. For example, Market Makers have quoting obligations that other market participants
(such as EEMs) do not have.
Inter-Market Competition
The Exchange does not believe that the proposed rule changes will impose any burden on
inter-market competition that is not necessary or appropriate in furtherance of the purposes of the
Act because the proposed extension of the Incentive Program applies only to the Market Makers
in SPIKES options, which are traded exclusively on the Exchange.
Additionally, the Exchange does not believe that the proposed rule changes will impose
any burden on inter-market competition that is not necessary or appropriate in furtherance of the
purposes of the Act because the proposed extension of the fee waivers applies only to the
Exchange’s Proprietary Products (including options on SPIKES), which are traded exclusively
on 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
The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the

Act,32 and Rule 19b-4(f)(2)33 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.

15 U.S.C. 78s(b)(3)(A)(ii).

17 CFR 240.19b-4(f)(2).

IV.

Solicitation of Comments
Interested persons are invited to submit written data, views and arguments concerning the

foregoing, including whether the proposed rule change is consistent with the Act. Comments
may be submitted by any of the following methods:
Electronic Comments:
•

Use the Commission’s internet comment form
(https://www.sec.gov/rules/sro.shtml); or

•

Send an email to rule-comments@sec.gov. Please include file number
SR-MIAX-2024-26 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-MIAX-2024-26. 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-MIAX-2024-26 and should be
submitted on or before [INSERT DATE 21 DAYS AFTER DATE OF PUBLICATION IN THE
FEDERAL REGISTER].
For the Commission, by the Division of Trading and Markets, pursuant to delegated
authority.34
J. Matthew DeLesDernier,
Deputy Secretary.

[FR Doc. 2024-15399 Filed: 7/12/2024 8:45 am; Publication Date: 7/15/2024]

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