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Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the MIAX Sapphire Options Exchange Fee Schedule To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail
Plain English Summary
The MIAX Sapphire Options Exchange has updated its fee schedule to include new fees for industry members. This change specifically relates to the historical costs of insurance for the Consolidated Audit Trail (CAT). The total insurance cost for CAT was $880,419, which covers expenses incurred during a previous period. Starting in 2020, CAT LLC evaluated different insurance options and decided to purchase cyber security liability insurance and directors' insurance based on their analysis of coverage and costs. Insurance agents should be aware of these new fees and consider how they may impact their clients who are industry members.
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(VIII) <span class="match">Insurance</span>
The <span class="match">insurance</span> costs of $880,419 represent the cost incurred for <span class="match">insurance</span> for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT <span class="match">insurance</span> policies, which included engaging in discussions with different <span class="match">insurance</span> companies and conducting cost comparisons of various alternative approaches to <span class="match">insurance</span>. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability <span class="match">insurance</span>, directors'