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Federal Register / Vol. 86, No. 156 / Tuesday, August 17, 2021 / Notices
II. Self-Regulatory Organizations 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 Organizations Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the MIAX Pearl Options Fee Schedule to adopt a tiered-pricing structure for the 10 gigabit Gb ultra-low latency ULL fiber connection available to Members 3 and non-Members. The Exchange believes a tiered-pricing structure will encourage Members and non-Members to be more efficient and economical when determining how to connect to the Exchange. This should also enable the Exchange to better monitor and provide access to the Exchanges network to ensure sufficient capacity and headroom in the System.4

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10Gb ULL Tiered-Pricing Structure The Exchange proposes to amend Sections 5ab of the Fee Schedule to provide for a tiered-pricing structure for 10Gb ULL connections for Members and non-Members. Currently, the Exchange assesses Members and non-Members a flat monthly fee of $10,000 per 10Gb ULL connection for access to the Exchanges primary and secondary facilities.
The Exchange now proposes to move from a flat monthly fee per connection to a tiered-pricing structure per connection under which the monthly fee would vary depending on the number of 10Gb ULL connections each Member or non-Member elects to purchase per exchange. Specifically, the Exchange proposes to decrease the fee 3 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.
4 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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for the first and second 10Gb ULL
connections for each Member and nonMember from the current flat monthly fee of $10,000 to $9,000 per connection.
To encourage more efficient connectivity usage, the Exchange proposes to increase the per connection fee for Members and non-Members that purchase more than two 10Gb ULL
connections. Specifically, i the third and fourth 10Gb ULL connections for each Member or non-Member will increase from the current flat monthly fee of $10,000 to $11,000 per connection; and ii for the fifth 10Gb ULL connection, and for each 10Gb ULL
connection for each Member and nonMember purchased thereafter, the fee will increase from the flat monthly fee of $10,000 to $13,000 per connection.
The proposed 10Gb ULL tiered-pricing structure and fees are collectively referred to herein as the Proposed Access Fees.
The Exchange will continue to assess monthly Member and non-Member network connectivity fees for connectivity to the primary and secondary facilities in any month the Member or non-Member is credentialed to use any of the MIAX Pearl APIs or market data feeds in the production environment. The Exchange proposes to pro-rate the fees when a Member or nonMember makes a change to the connectivity by adding or deleting connections with such pro-rated fees based on the number of trading days that the Member or non-Member has been credentialed to utilize any of the MIAX Pearl APIs or market data feeds in the production environment through such connection, divided by the total number of trading days in such month multiplied by the applicable monthly rate. The Exchange will continue to assess monthly Member and nonMember network connectivity fees for connectivity to the disaster recovery facility in each month during which the Member or non-Member has established connectivity with the disaster recovery facility.
The Exchanges MIAX Express Network Interconnect MENI can be configured to provide Members and non-Members of the Exchange network connectivity to the trading platforms, market data systems, test systems, and disaster recovery facilities of both the Exchange and its affiliate, Miami International Securities Exchange, LLC
MIAX, via a single, shared connection. Members and non-Members utilizing the MENI to connect to the trading platforms, market data systems, test systems, and disaster recovery facilities of the Exchange and MIAX via a single, shared connection will
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continue to only be assessed one monthly connectivity fee per connection, regardless of the trading platforms, market data systems, test systems, and disaster recovery facilities accessed via such connection.
Further, utilizing the proposed tieredpricing structure, any firm that is a Member of both MIAX Pearl Options and MIAX and purchases three or four total 10Gb ULL connections, can effectively allocate one or two 10Gb ULL connections to the Exchange at the lowest rate and the other one or two 10Gb ULL connections to MIAX at the lowest rate, providing additional cost saving benefits to those Members and non-Members, due to the shared MENI
infrastructure of MIAX Pearl and MIAX.
Implementation Date The proposed fee changes will become effective on August 1, 2021.
2. Statutory Basis The Exchange believes that its proposal to amend its Fee Schedule is consistent with Section 6b of the Act 5
in general, and furthers the objectives of Section 6b4 of the Act 6 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among Exchange Members and issuers and other persons using any facility or system which the Exchange operates or controls. The Exchange also believes the proposal furthers the objectives of Section 6b5 of the Act 7
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 notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive. In such an environment, the Exchange must continually adjust its fees for services and products, in addition to order flow, to remain competitive with other exchanges. The Exchange believes that the proposed changes reflect this competitive environment.
The Exchange believes the proposal to move from a flat fee per month for the 10Gb ULL connection to a tiered-pricing structure is reasonable, equitably allocated and not unfairly 5 15

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