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Federal Register / Vol. 86, No. 39 / Tuesday, March 2, 2021 / Notices
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provides real-time trade clearing information to the participants to a trade on MIAX Emerald and to the participants respective clearing firms;
and iv the FIX Drop Copy FXD
Port,19 which provides a copy of realtime trade execution, correction and cancellation information through a FIX
Port to any number of FIX Ports designated by an Electronic Exchange Member EEM 20 to receive such messages. The Exchange also proposes to increase the monthly fee for each Additional Limited Service MEI Port per matching engine for Market Makers, as described below.
Since the launch of the Exchange, all Port fees have been waived by the Exchange in order to incentivize market participants to connect to the Exchange, except for Additional Limited Service MEI Ports. However, also at launch, the Exchange introduced the structure of Port fees on its Fee Schedule without proposing the actual fee amounts, in order to indicate to market participants that Port fees would ultimately apply upon expiration of the Waiver Period.
The Exchange now proposes to assess monthly Port fees for Members and nonMembers in each month the market participant is credentialed to use a Port in the production environment and based upon the number of credentialed Ports that a user is entitled to use. MIAX
Emerald has Primary and Secondary Facilities and a Disaster Recovery Facility. Each type of Port provides access to all Exchange facilities for a single fee. The Exchange notes that, unless otherwise specifically set forth in the Fee Schedule, the Port fees include the information communicated through the Port. That is, unless otherwise specifically set forth in the Fee Schedule, there is no additional charge for the information that is communicated through the Port apart from what the user is assessed for each Port.21
Exchange MPID for each side of the transaction, including Clearing Member MPID. See the Definitions Section of the Fee Schedule.
19 The FIX Drop Copy FXD Port is a messaging interface that will provide a copy of realtime trade execution, trade correction and trade cancellation information to FXD Port users who subscribe to the service. FXD 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. 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 5div.
20 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 and the Definitions Section of the Fee Schedule.
21 An example of one such exception where there is an additional charge for information that is
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FIX Port Fees Since the launch of the Exchange, fees for FIX Ports have been waived for the Waiver Period. The Exchange now proposes to assess a monthly FIX Port fee to Members in each month the Member is credentialed to use a FIX
Port in the production environment and based upon the number of credentialed FIX Ports, as follows: $550 for the first FIX Port; $350 for FIX Ports two through five; and $150 for each FIX Port over five.
Below is the proposed table showing the FIX Port fees:
MIAX Emerald monthly Port Fees includes connectivity to the Primary, Secondary and Disaster Recovery data centers
FIX Port fees
1st FIX Port
FIX Ports 2 through 5
Additional FIX Ports over 5

$550.00
350.00
150.00

MEI Port Fees MIAX Emerald offers different options of MEI Ports depending on the services required by Market Makers. Since the launch of the Exchange, fees for MEI
Ports have been waived for the Waiver Period. The Exchange now proposes to assess monthly MEI Port Fees to Market Makers based upon the number of classes or class volume accessed by the Market Maker. Market Makers are allocated two 2 Full Service MEI
Ports 22 and two 2 Limited Service MEI
Ports 23 per Matching Engine 24 to which they connect. The Full Service MEI
Ports, Limited Service MEI Ports and the Additional Limited Service MEI Ports all include access to the Exchanges Primary and Secondary data centers and its Disaster Recovery center.
Specifically, the Exchange proposes to adopt MEI Port fees assessable to Market Makers based upon the number of classes or class volume accessed by the Market Maker. The Exchange proposes to adopt the following MEI Port fees: i communicated through a Port is for certain market data products, such as ToM, AIS, and MOR, that are received via a direct connection to the Exchange.
See Sections 6ac of the Fee Schedule.
22 See supra note 4.
23 See id.
24 A matching engine is a part of the MIAX
Emerald 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. See the Definitions Section of the Fee Schedule.

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$5,000 for Market Maker Assignments in up to 5 option classes or up to 10% of option classes by volume; ii $10,000
for Market Maker Assignments in up to 10 option classes or up to 20% of option classes by volume; iii $14,000 for Market Maker Assignments in up to 40
option classes or up to 35% of option classes by volume; iv $17,500 for Market Maker Assignments in up to 100
option classes or up to 50% of option classes by volume; and v $20,500 for Market Maker Assignments in over 100
option classes or over 50% of option classes by volume up to all option classes listed on MIAX Emerald.
The Exchange also proposes to adopt new footnote D for its MEI Port fees that will apply to the Market Makers who fall within the following MEI Port fee levels, which represent the 4th and 5th levels of the fee table: Market Makers who have i Assignments in up to 100 option classes or up to 50% of option classes by volume and ii Assignments in over 100 option classes or over 50% of option classes by volume up to all option classes listed on MIAX
Emerald. Specifically, the Exchange proposes for these monthly MEI Port tier levels, if the Market Makers total monthly executed volume during the relevant month is less than 0.025% of the total monthly executed volume reported by OCC in the customer account type for MIAX Emerald-listed option classes for that month, then the fee will be $14,500 instead of the fee otherwise applicable to such level.
The purpose of this proposed lower monthly MEI Port fee is to provide a lower fixed cost to those Market Makers who are willing to quote the entire Exchange market or substantial amount of the Exchange market, as objectively measured by either number of classes assigned or national ADV, but who do not otherwise execute a significant amount of volume on the Exchange. The Exchange believes that, by offering lower fixed costs to Market Makers that execute less volume, the Exchange will retain and attract smaller-scale Market Makers, which are an integral component of the option industry marketplace, but have been decreasing in number in recent years, due to industry consolidation and lower market maker profitability. Since these smaller-scale Market Makers utilize less Exchange capacity due to lower overall volume executed, the Exchange believes it is reasonable and appropriate to offer such Market Makers a lower fixed cost.
The Exchange notes that other options exchanges assess certain of their fees at different rates, based upon a members
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