FR 2025-04322

This document is a notice from the Securities and Exchange Commission (SEC) regarding a proposed fee change filed by MIAX Emerald, LLC. The proposed rule changes how market participants can access its testing systems. Specifically, MIAX intends to establish a fee for market participants choosing to use the Exchange's testing systems environment through a dedicated cross connection. This proposal has been filed for immediate effect but is also open for public comments until April 8, 2025. Additional details on the fee change and how it fits within regulatory frameworks can be found on both the MIAX and SEC websites.

General Summary

MIAX Emerald, a U.S. options exchange, is proposing fees targeting market participants who require a special connection to their testing systems. The official filing was made on March 5, 2025, and is effective immediately, meaning that the rules are enacted even as feedback is solicited. Comments on the proposed fee can be submitted through various channels established by the SEC, with the official deadline for submissions on April 8, 2025. The SEC will compile and publish these public comments.

Significant Issues and Concerns

One major concern is the lack of an abstract in the metadata section which could have offered a concise overview of the document's content. For lay readers, the document's heavy use of legal and regulatory terminology—such as references to "Section 19(b)(1)" or "Rule 19b-4"—might prove challenging to decipher. Furthermore, the proposed fee is presented without much detail regarding its need or potential impact, which could lead some to question why it is necessary and how it might affect them.

The process for collecting public comments could be clarified further to facilitate broad public engagement, ensuring that everyone can participate if they wish to. Additionally, the online access provided for more information may not be fully accessible to individuals without internet access or those unfamiliar with navigating such technical sites.

Public Impact

Broadly, introducing a fee for connecting to the testing systems could raise operational costs for market participants who utilize these connections. This financial impact may ultimately trickle down to end-users or investors if costs are passed along. The SEC's request for public comments suggests an openness to refining or reconsidering aspects of the proposal based on stakeholder feedback, making public engagement an essential component.

Stakeholder Impact

For market participants—brokers, traders, and others who actively engage with MIAX's platforms—the rule change presents both potential costs and benefits. While it could lead to increased operational costs, having a dedicated line could offer more stable and reliable access.

Meanwhile, even though everyday investors might not directly feel these changes, any increase in costs for brokers and traders can be passed down in terms of higher trading costs or fees. Thus, even secondary stakeholders should be engaged in this discussion.

In summary, while the proposed rule change seeks to amend MIAX Emerald's fee structure, it raises questions about its broader implications and highlights the need for transparent communication and accessibility of pertinent information. Public participation is critical, and all stakeholders are encouraged to weigh in on this proposed change.