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Federal Register / Vol. 86, No. 39 / Tuesday, March 2, 2021 / Notices provide sufficient and equal access to the MIAX Emerald System to all Members. Absent the proposed increase in available MEI Ports, the Exchange projects that its current inventory will be depleted and it will lack sufficient capacity to continue to meet Members access needs.
Purge Port Fees The Exchange also offers Market Makers the ability to request and be allocated two 2 Purge Ports 28 per Matching Engine to which it connects.
Purge Ports provide Market Makers with the ability to send quote purge messages to the MIAX Emerald System. Purge Ports are not capable of sending or receiving any other type of messages or information. Since the launch of the Exchange, fees for Purge Ports have been waived for the Waiver Period. The Exchange now proposes to amend its Fee Schedule to adopt fees for Purge Ports. For each month in which the MIAX Emerald Market Maker has been credentialed to use Purge Ports in the production environment and has been assigned to quote in at least one class, the Exchange proposes to assess the MIAX Emerald Market Maker a flat fee $1,500, regardless of the number of Purge Ports allocated to the MIAX
Emerald Market Maker.

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CTD Port Fees The Exchange proposes to assess a CTD Port fee as a monthly fixed amount, not tied to transacted volume of the Member. This fixed fee structure is the same structure in place at Nasdaq PHLX
with respect to the proposed CTD Port Fees.29 Since the launch of the Exchange, CTD Port Fees have been waived for the Waiver Period. CTD
provides Exchange members with realtime clearing trade updates. The updates include the Members clearing trade messages on a low latency, realtime basis. The trade messages are routed to a Members 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, 28 Purge Ports provide Market Makers with the ability to send quote purge messages to the MIAX
Emerald System. Purge Ports are not capable of sending or receiving any other type of messages or information. See the Definitions Section of the Fee Schedule.
29 See Nasdaq PHLX Pricing Schedule, Options 7, Section 9, Other Member Fees, B. Port Fees.

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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.
The Exchange proposes to assess a CTD
Port fee of $450 per month.
Below is the proposed table for the CTD Port fees:
Description
Monthly fee
Real-Time CTD Information

$450.00

FXD Port Fee The Exchange proposes to assess an FXD Port Fee as a monthly fixed amount, not tied to transacted volume of the Member. This fixed fee structure is the same structure in place at Nasdaq PHLX with respect to FXD Port Fees.30
Since the launch of the Exchange, FXD
Port Fees have been waived for the Waiver Period. FXD is a messaging interface that will provide a copy of real-time 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. The Exchange proposes to assess an FXD Port fee of $500 per month. Below is the proposed table for the FXD Port fees:

Description
MIAX Emerald monthly Port Fees includes connectivity to the Primary, Secondary and Disaster Recovery data centers
FIX Drop Copy Port

$500.00

10Gb ULL Connectivity Fee The Exchange proposes to amend Sections 5a and b of the Fee Schedule to increase the monthly network connectivity fees for the 10Gb ULL fiber connection, which is charged to both Members and non-Members of the Exchange for connectivity to the Exchanges primary/secondary facility.
The Exchange offers to both Members and non-Members two bandwidth alternatives for connectivity to the Exchange, to its primary and secondary facilities, consisting of a 1Gb fiber connection and a 10Gb ULL fiber connection. The 10Gb ULL offering uses an ultra-low latency switch, which 30 Id.

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provides faster processing of messages sent to it in comparison to the switch used for the other types of connectivity.
The Exchange now proposes to increase its monthly network connectivity fee for its 10Gb ULL connection to $10,000 for Members and non-Members.

MIAX Emerald believes that exchanges, in setting fees of all types, should meet very high standards of transparency to demonstrate why each new fee or fee increase meets the requirements of the Act that fees be reasonable, equitably allocated, not unfairly discriminatory, and not create an undue burden on competition among members and markets. MIAX Emerald believes this high standard is especially important when an exchange imposes various access fees for market participants to access an exchanges marketplace. MIAX Emerald deems Port fees and Connectivity fees to be access fees, and that Ports and Connectivity are inextricably linked components of the network. Accordingly, the Exchange believes that it is reasonable and appropriate that the costs and revenues for both should be considered together, as the services associated with connectivity and ports are linked pieces of the networks infrastructure, both of which are necessary for a market participant to access and use the trading System of the Exchange. Finally, both Connectivity fee and Port fee revenue are consolidated into a single line item Access Fees on the Exchanges financial statements. The Exchange believes that it is important to demonstrate that these fees are based on its costs to provide access to the Exchanges network and reasonable business needs. Accordingly, the Exchange believes the Proposed Access Fees will allow the Exchange to offset expense the Exchange has and will incur, and that the Exchange is providing sufficient transparency as described below into how the Exchange determined to charge such fees.
Accordingly, the Exchange is providing an analysis of its revenues, costs, and profitability associated with the Proposed Access Fees. This analysis includes information regarding its methodology for determining the costs and revenues associated with the Proposed Access Fees.
In order to determine the Exchanges costs associated with providing the Proposed Access Fees, the Exchange conducted an extensive cost review in which the Exchange analyzed every expense item in the Exchanges general expense ledger to determine whether each such expense relates to the
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