FR 2025-01994

The document under discussion presents a notice from MIAX Emerald, LLC, which has proposed changes to its Fee Schedule. The intention is to initiate a fee for market participants who opt to use the Exchange's testing systems environment through a dedicated cross connection. Submitted to the Securities and Exchange Commission (SEC) on January 14, 2025, the proposal has been designated for immediate effectiveness. Being filed under such a designation allows the rule change to be enacted swiftly, pending a public comment period that ends on February 21, 2025. Interested parties may access the proposal via the MIAX or SEC websites.

General Summary

The heart of the document focuses on the procedural aspects of the proposed fee amendment. It articulates how the Exchange seeks to manage access to its testing environment and establishes a cost associated with this access. By incorporating these fees, the MIAX Emerald likely aims to regulate usage, offset operational costs, or potentially create a revenue stream. Readers are encouraged to partake in the public consultation phase by submitting comments, which underscores the democratic element innate to SEC's rule-making process.

Significant Issues or Concerns

Upon review, several areas raise potential concerns:

• Lack of Transparency on Fee Details: The document does not specify the exact fee amount or structure being proposed. Without clear information about the fee, stakeholders may find it challenging to assess its reasonableness or necessity.

• Comparative Analysis Omitted: There is no provided comparison with existing fees or similar services at other exchanges. This absence makes it difficult for stakeholders to evaluate whether the proposed fees align with industry standards.

• Privacy Concerns in Comment Submission: While encouraging public comment, the document warns against including personally identifiable information due to potential public posting. This could dissuade individuals from participating, impacting the breadth and depth of feedback.

• Potential Withholding of Information: The mention of materials being available for inspection, coupled with clauses allowing withholding under certain legal provisions, might limit transparency. It could raise concerns over which documents will be accessible to the public.

Impact on the Public

Broadly, the introduction of new fees could affect any market participant looking to use the Exchange’s testing systems environment. Additional costs might discourage smaller firms or new entrants who are particularly price-sensitive. Conversely, larger entities might absorb these costs more readily, potentially impacting market competition.

Impact on Specific Stakeholders

• Market Participants: The direct impact falls on these users as they navigate the potential new costs. For entities heavily reliant on such testing environments, this could lead to increased operational expenses.

• Competitors and Peer Exchanges: Observing this move, peer exchanges might evaluate their own fee structures, potentially leading to sector-wide changes in how fees are approached.

• Regulators and Commentators: The document provides regulators, advocacy groups, and industry experts a chance to weigh in. Their role in shaping and balancing stakeholder interests is crucial, given their ability to influence public discourse through their feedback.

In conclusion, while the proposal is a routine part of regulatory processes maintaining market integrity and infrastructure innovation, the lack of detailed fee information, privacy concerns in the feedback process, and potential transparency issues necessitate mindful scrutiny. Stakeholders are advised to engage actively during the comment period to ensure that the final outcome considers diverse views and needs.