FR 2025-00181

The document from the Federal Register details a proposed rule change by MIAX PEARL, LLC that has been filed with the Securities and Exchange Commission (SEC). This rule change seeks to modify the fee schedule by introducing a discount program for the Open-Close Report. Filed on December 20, 2024, the proposal is intended for immediate effectiveness. The SEC is soliciting public comments on this proposal, with submissions due by January 23, 2025.

Summary of the Proposal

The proposal involves a fee discount program targeting the Open-Close Report at MIAX PEARL, LLC, a securities exchange. This filing has been made immediately effective, suggesting that it is operational without waiting for additional approvals, although the SEC maintains the authority to suspend and review the change within 60 days if necessary. The document provides web links where details of the change can be found and outlines the process for submitting comments electronically or by other means.

Significant Issues and Concerns

A notable issue with the document is its lack of transparency regarding the specifics of the fee discount program. Important details about how the discounts will be applied, eligibility criteria, or potential limits are not specified. This absence of information could lead to confusion or misinterpretation by stakeholders and the public.

The language, while regulatory by necessity, could be seen as moderately complex for lay readers, potentially hindering full comprehension by those not conversant with financial regulation jargon. Simplifying legal references might encourage a broader audience to understand and engage with the proposal.

Furthermore, the document does not discuss the full breadth of impacts the fee discount could have on different stakeholder groups or the market. For instance, there's no information on whether the discounts will disproportionately benefit certain participants over others. There is also no mention of potential downsides or disadvantages, such as reduced revenue for the exchange or unintended market effects.

Impact on the Public and Stakeholders

Broadly, the impact of this fee discount program on the public can be positive if it leads to greater accessibility to the Open-Close Report data, potentially benefitting analysts, investors, and financial firms who rely on this information for informed decision-making.

For specific stakeholders, such as smaller trading entities or new market participants, the proposed discount may provide financial relief and an opportunity to compete more effectively against larger players who typically have greater resources. However, without specific details, it is unclear if this benefit is equitable across different participant categories.

Conversely, if the change leads to a significant decrease in revenue for MIAX PEARL, there might be longer-term implications, such as cost-cutting measures or shifts in market focus, which could negatively impact other services provided by the exchange.

Encouragement of Stakeholder Feedback

While the process for submitting comments is described clearly, there is a missed opportunity to emphasize the importance of these public submissions beyond procedural requirements. Potential commenters, who might often be industry experts or affected parties, are valuable in providing practical insights or in raising valid concerns that may have been overlooked.

In conclusion, while the document outlines a significant regulatory change, much remains to be clarified for it to be fully understood and assessed by both the public and stakeholders. Enhanced transparency and engagement would likely benefit the SEC’s review process and ultimately serve the interests of all parties involved.