80_FR_13981 80 FR 13930 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rule 7170 To Provide for New Procedures To Account for Erroneous Trades Occurring From Disruptions and/or Malfunctions of Exchange Systems

80 FR 13930 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rule 7170 To Provide for New Procedures To Account for Erroneous Trades Occurring From Disruptions and/or Malfunctions of Exchange Systems

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 51 (March 17, 2015)

Page Range13930-13932
FR Document2015-06017

Federal Register, Volume 80 Issue 51 (Tuesday, March 17, 2015) 
[Federal Register Volume 80, Number 51 (Tuesday, March 17, 2015)]
[Notices]
[Pages 13930-13932]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-06017]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74474; File No. SR-BOX-2015-15]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend BOX Rule 7170 To Provide for New Procedures To Account for 
Erroneous Trades Occurring From Disruptions and/or Malfunctions of 
Exchange Systems

March 11, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on March 2, 2015, BOX Options Exchange LLC (the ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the self-regulatory organization. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend BOX Rule 7170 (Obvious and 
Catastrophic Errors) to provide for new procedures to account for 
erroneous trades occurring from disruptions and/or malfunctions of 
Exchange systems. The text of the proposed rule change is available 
from the principal office of the Exchange, at the Commission's Public 
Reference Room and also on the Exchange's Internet Web site at http://boxexchange.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in Sections A, B, and C below, of the 
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend BOX Rule 7170 to provide for new 
procedures to account for erroneous trades occurring from disruptions 
and/or malfunctions of Exchange systems. This is a competitive filing 
that is based on the rules of NYSE MKT LLC (``NYSE MKT'').\3\
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    \3\ See NYSE MKT Rule 975NY. The proposed rule change is also 
substantially similar to NYSE Arca, Inc. (``NYSE Arca'') Rule 6.89, 
Chicago Board Options Exchange, Inc. (``CBOE'') Rule 6.25 and is 
similar to NASDAQ OMX PHLX, LLC (``Phlx'') Rule 1092(c)(ii)(A).
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    Proposed new Rule 7170(m) would provide that any transactions that 
arise

[[Page 13931]]

out of a ``verifiable systems disruption or malfunction'' in the use or 
operation of an Exchange automated quotation, dissemination, execution, 
or communication system may either be nullified or adjusted by the 
Exchange. In addition, the proposed rule would provide that 
transactions that qualify for price adjustment will be adjusted to a 
Theoretical Price, as defined in paragraph (d) of Rule 7170. The 
Exchange notes that proposed Rule 7170(m) is virtually identical to 
NYSE MKT Rule 975NY(a)(9) and similar to rules in effect at other 
options exchanges that allow for the nullification or modification of 
transactions that resulted from verifiable disruptions and/or 
malfunctions of Exchanges [sic] systems.\4\
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    \4\ Id.
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    The proposed rule change would provide the Exchange with the same 
authority to nullify or adjust trades in the event of a ``verifiable 
disruption or malfunction'' in the use or operation of its systems as 
other exchanges have. The Exchange believes that it is appropriate to 
provide the flexibility and authority provided for in proposed Rule 
7170(m) so as not to limit the Exchange's ability to plan for and 
respond to unforeseen systems problems or malfunctions. For this 
reason, the Exchange believes that, in the interest of maintaining a 
fair and orderly market and for the protection of investors, authority 
to nullify trades in these circumstances, consistent with the authority 
on other exchanges, is warranted.
    The Exchange further proposes that, similar to NYSE MKT Rule 
975NY(b)(3), the Exchange may, on its own motion, review any 
transaction occurring on the Exchange that is believed to be a result 
of a verifiable disruption or malfunction of Exchange systems. The 
Exchange, when determining whether to review a transaction on its own 
motion pursuant to proposed Rule 7170(m), shall act as soon as possible 
after receiving notification of the transaction, and ordinarily would 
be expected to act on the same day as the transaction occurred. In no 
event shall the Exchange act later than 9:30 a.m. (ET) on the next 
trading day following the date of the transaction in question. The 
Exchange further notes that when acting under its own motion to nullify 
or adjust trades pursuant to proposed Rule 7170(m), the Exchange must 
consider whether taking such action would be in the interest of 
maintaining a fair and orderly market and for the protection of 
investors.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Securities Exchange Act of 1934 
(the ``Act''),\5\ in general, and Section 6(b)(5) of the Act,\6\ in 
particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general to protect investors and the 
public interest.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change would remove 
impediments to and perfect the mechanism of a free and open market and 
national market system and promote a fair and orderly market because it 
would provide authority for the Exchange to nullify or adjust trades 
that may have resulted from a verifiable systems disruption or 
malfunction. The Exchange believes that it is appropriate to provide 
the flexibility and authority provided for in proposed Rule 7170(m) so 
as not to limit the Exchange's ability to plan for and respond to 
unforeseen systems problems or malfunctions that may result in harm to 
the public. Allowing for the nullification or modification of 
transactions that result from verifiable disruptions and/or 
malfunctions of Exchange systems will offer market participants on the 
Exchange a level of relief presently not available. The Exchange 
further notes that when acting under its own motion to nullify or 
adjust trades pursuant to proposed Rule 7170(m), the Exchange must 
consider whether taking such action would be in the interest of 
maintaining a fair and orderly market and for the protection of 
investors. The Exchange notes that the proposed rule change is based on 
the rules of NYSE MKT and is similar to the rules of other markets.\7\
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    \7\ See supra, note 3.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change would 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. Rather, the Exchange 
believes that the proposed rule change is pro-competitive because it 
will better align the Exchange's rules with the rules of other markets, 
including NYSE MKT, CBOE, NYSE Arca, and Phlx. By adopting proposed 
Rule 7170(m), the Exchange will be in a position to treat transactions 
that are a result of a verifiable systems issue or malfunction in a 
manner similar to other exchanges.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6)(iii) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6)(iii). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or

[[Page 13932]]

     Send an email to [email protected]. Please include 
File Number SR-BOX-2015-15 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BOX-2015-15. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BOX-2015-15, and should be 
submitted on or before April 7, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-06017 Filed 3-16-15; 8:45 am]
 BILLING CODE 8011-01-P

13930 Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices competitive with other exchanges. For file number should be included on the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 the reasons described above, the subject line if email is used. notice is hereby given that on March 2, Exchange believes that the proposed To help the Commission process and 2015, BOX Options Exchange LLC (the rule change reflects this competitive review your comments more efficiently, ‘‘Exchange’’) filed with the Securities environment. please use only one method. The and Exchange Commission Commission will post all comments on (‘‘Commission’’) the proposed rule C. Self-Regulatory Organization’s change as described in Items I and II Statement on Comments on the the Commission’s Internet Web site (http://www.sec.gov/rules/sro.shtml). below, which Items have been prepared Proposed Rule Change Received From by the self-regulatory organization. The Members, Participants, or Others Copies of the submission, all subsequent amendments, all written statements Commission is publishing this notice to No written comments were solicited with respect to the proposed rule solicit comments on the proposed rule or received with respect to the proposed change that are filed with the change from interested persons. rule change. Commission, and all written I. Self-Regulatory Organization’s III. Date of Effectiveness of the communications relating to the Statement of the Terms of the Substance Proposed Rule Change and Timing for proposed rule change between the of the Proposed Rule Change Commission Action Commission and any person, other than those that may be withheld from the The Exchange proposes to amend The foregoing rule change is effective public in accordance with the BOX Rule 7170 (Obvious and upon filing pursuant to Section provisions of 5 U.S.C. 552, will be Catastrophic Errors) to provide for new 19(b)(3)(A) 7 of the Act and available for Web site viewing and procedures to account for erroneous subparagraph (f)(2) of Rule 19b–4 8 printing in the Commission’s Public trades occurring from disruptions and/ thereunder, because it establishes a due, Reference Room, 100 F Street NE., or malfunctions of Exchange systems. fee, or other charge imposed by the The text of the proposed rule change is Washington, DC 20549, on official Exchange. available from the principal office of the business days between the hours of At any time within 60 days of the Exchange, at the Commission’s Public 10:00 a.m. and 3:00 p.m. Copies of the filing of such proposed rule change, the Reference Room and also on the filing will also be available for Commission summarily may Exchange’s Internet Web site at http:// inspection and copying at the NYSE’s temporarily suspend such rule change if boxexchange.com. principal office and on its Internet Web it appears to the Commission that such site at www.nyse.com. All comments II. Self-Regulatory Organization’s action is necessary or appropriate in the received will be posted without change; Statement of the Purpose of, and public interest, for the protection of the Commission does not edit personal Statutory Basis for, the Proposed Rule investors, or otherwise in furtherance of identifying information from Change the purposes of the Act. If the submissions. You should submit only Commission takes such action, the In its filing with the Commission, the information that you wish to make self-regulatory organization included Commission shall institute proceedings available publicly. All submissions under Section 19(b)(2)(B) 9 of the Act to statements concerning the purpose of, should refer to File Number SR– and basis for, the proposed rule change determine whether the proposed rule NYSEMKT–2015–12, and should be change should be approved or and discussed any comments it received submitted on or before April 7, 2015. on the proposed rule change. The text disapproved. For the Commission, by the Division of of these statements may be examined at IV. Solicitation of Comments Trading and Markets, pursuant to delegated the places specified in Item IV below. Interested persons are invited to authority.10 The self-regulatory organization has submit written data, views, and Brent J. Fields, prepared summaries, set forth in arguments concerning the foregoing, Secretary. Sections A, B, and C below, of the most including whether the proposed rule [FR Doc. 2015–06016 Filed 3–16–15; 8:45 am] significant aspects of such statements. change is consistent with the Act. BILLING CODE 8011–01–P A. Self-Regulatory Organization’s Comments may be submitted by any of Statement of the Purpose of, and the following methods: Statutory Basis for, the Proposed Rule SECURITIES AND EXCHANGE Change Electronic Comments COMMISSION • Use the Commission’s Internet 1. Purpose comment form (http://www.sec.gov/ [Release No. 34–74474; File No. SR–BOX– The Exchange proposes to amend rules/sro.shtml); or 2015–15] BOX Rule 7170 to provide for new • Send an email to rule- procedures to account for erroneous comments@sec.gov. Please include File Self-Regulatory Organizations; BOX trades occurring from disruptions and/ Number SR–NYSEMKT–2015–12 on the Options Exchange LLC; Notice of or malfunctions of Exchange systems. subject line. Filing and Immediate Effectiveness of This is a competitive filing that is based a Proposed Rule Change To Amend on the rules of NYSE MKT LLC (‘‘NYSE Paper Comments BOX Rule 7170 To Provide for New MKT’’).3 • Send paper comments in triplicate Procedures To Account for Erroneous Proposed new Rule 7170(m) would to Secretary, Securities and Exchange Trades Occurring From Disruptions provide that any transactions that arise mstockstill on DSK4VPTVN1PROD with NOTICES Commission, 100 F Street NE., and/or Malfunctions of Exchange Washington, DC 20549–1090. Systems 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. All submissions should refer to File March 11, 2015. 3 See NYSE MKT Rule 975NY. The proposed rule Number SR–NYSEMKT–2015–12. This Pursuant to Section 19(b)(1) of the change is also substantially similar to NYSE Arca, Securities Exchange Act of 1934 (the Inc. (‘‘NYSE Arca’’) Rule 6.89, Chicago Board 7 15 U.S.C. 78s(b)(3)(A). Options Exchange, Inc. (‘‘CBOE’’) Rule 6.25 and is 8 17 CFR 240.19b–4(f)(2). similar to NASDAQ OMX PHLX, LLC (‘‘Phlx’’) Rule 9 15 U.S.C. 78s(b)(2)(B). 10 17 CFR 200.30–3(a)(12). 1092(c)(ii)(A). VerDate Sep<11>2014 18:09 Mar 16, 2015 Jkt 235001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\17MRN1.SGM 17MRN1

Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices 13931 out of a ‘‘verifiable systems disruption 2. Statutory Basis including NYSE MKT, CBOE, NYSE or malfunction’’ in the use or operation The Exchange believes that the Arca, and Phlx. By adopting proposed of an Exchange automated quotation, proposal is consistent with the Rule 7170(m), the Exchange will be in dissemination, execution, or requirements of Section 6(b) of the a position to treat transactions that are communication system may either be Securities Exchange Act of 1934 (the a result of a verifiable systems issue or nullified or adjusted by the Exchange. In ‘‘Act’’),5 in general, and Section 6(b)(5) malfunction in a manner similar to addition, the proposed rule would of the Act,6 in particular, in that it is other exchanges. provide that transactions that qualify for designed to prevent fraudulent and C. Self-Regulatory Organization’s price adjustment will be adjusted to a manipulative acts and practices, to Statement on Comments on the Theoretical Price, as defined in promote just and equitable principles of Proposed Rule Change Received From paragraph (d) of Rule 7170. The trade, to foster cooperation and Members, Participants, or Others Exchange notes that proposed Rule coordination with persons engaged in facilitating transactions in securities, to The Exchange has neither solicited 7170(m) is virtually identical to NYSE remove impediments to and perfect the nor received comments on the proposed MKT Rule 975NY(a)(9) and similar to mechanism of a free and open market rule change. rules in effect at other options exchanges that allow for the and a national market system, and, in III. Date of Effectiveness of the nullification or modification of general to protect investors and the Proposed Rule Change and Timing for transactions that resulted from verifiable public interest. Commission Action The Exchange believes that the disruptions and/or malfunctions of Because the proposed rule change proposed rule change would remove Exchanges [sic] systems.4 does not (i) significantly affect the impediments to and perfect the The proposed rule change would mechanism of a free and open market protection of investors or the public provide the Exchange with the same and national market system and interest; (ii) impose any significant authority to nullify or adjust trades in promote a fair and orderly market burden on competition; and (iii) become the event of a ‘‘verifiable disruption or because it would provide authority for operative for 30 days from the date on malfunction’’ in the use or operation of the Exchange to nullify or adjust trades which it was filed, or such shorter time its systems as other exchanges have. The that may have resulted from a verifiable as the Commission may designate if Exchange believes that it is appropriate systems disruption or malfunction. The consistent with the protection of to provide the flexibility and authority Exchange believes that it is appropriate investors and the public interest, the provided for in proposed Rule 7170(m) to provide the flexibility and authority proposed rule change has become so as not to limit the Exchange’s ability provided for in proposed Rule 7170(m) effective pursuant to Section 19(b)(3)(A) to plan for and respond to unforeseen so as not to limit the Exchange’s ability of the Act 8 and Rule 19b-4(f)(6)(iii) systems problems or malfunctions. For to plan for and respond to unforeseen thereunder.9 this reason, the Exchange believes that, systems problems or malfunctions that At any time within 60 days of the in the interest of maintaining a fair and may result in harm to the public. filing of the proposed rule change, the orderly market and for the protection of Allowing for the nullification or Commission summarily may investors, authority to nullify trades in modification of transactions that result temporarily suspend such rule change if from verifiable disruptions and/or it appears to the Commission that such these circumstances, consistent with the malfunctions of Exchange systems will action is necessary or appropriate in the authority on other exchanges, is offer market participants on the public interest, for the protection of warranted. Exchange a level of relief presently not investors, or otherwise in furtherance of The Exchange further proposes that, available. The Exchange further notes the purposes of the Act. If the similar to NYSE MKT Rule 975NY(b)(3), that when acting under its own motion Commission takes such action, the the Exchange may, on its own motion, to nullify or adjust trades pursuant to Commission shall institute proceedings review any transaction occurring on the proposed Rule 7170(m), the Exchange to determine whether the proposed rule Exchange that is believed to be a result must consider whether taking such should be approved or disapproved. of a verifiable disruption or malfunction action would be in the interest of of Exchange systems. The Exchange, IV. Solicitation of Comments maintaining a fair and orderly market when determining whether to review a and for the protection of investors. The Interested persons are invited to transaction on its own motion pursuant Exchange notes that the proposed rule submit written data, views, and to proposed Rule 7170(m), shall act as change is based on the rules of NYSE arguments concerning the foregoing, soon as possible after receiving MKT and is similar to the rules of other including whether the proposed rule notification of the transaction, and markets.7 change is consistent with the Act. ordinarily would be expected to act on Comments may be submitted by any of B. Self-Regulatory Organization’s the same day as the transaction the following methods: Statement on Burden on Competition occurred. In no event shall the Exchange Electronic Comments act later than 9:30 a.m. (ET) on the next The Exchange does not believe that trading day following the date of the the proposed rule change would impose • Use the Commission’s Internet transaction in question. The Exchange any burden on competition that is not comment form (http://www.sec.gov/ necessary or appropriate in furtherance rules/sro.shtml); or further notes that when acting under its of the purposes of the Act. Rather, the own motion to nullify or adjust trades mstockstill on DSK4VPTVN1PROD with NOTICES Exchange believes that the proposed 8 15 U.S.C. 78s(b)(3)(A). pursuant to proposed Rule 7170(m), the rule change is pro-competitive because 9 17 CFR 240.19b–4(f)(6)(iii). As required under Exchange must consider whether taking it will better align the Exchange’s rules Rule 19b–4(f)(6)(iii), the Exchange provided the such action would be in the interest of with the rules of other markets, Commission with written notice of its intent to file maintaining a fair and orderly market the proposed rule change, along with a brief and for the protection of investors. description and the text of the proposed rule 5 15 U.S.C. 78f(b). change, at least five business days prior to the date 6 15 U.S.C. 78f(b)(5). of filing of the proposed rule change, or such 4 Id. 7 See supra, note 3. shorter time as designated by the Commission. VerDate Sep<11>2014 18:09 Mar 16, 2015 Jkt 235001 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 E:\FR\FM\17MRN1.SGM 17MRN1

13932 Federal Register / Vol. 80, No. 51 / Tuesday, March 17, 2015 / Notices • Send an email to rule-comments@ SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s sec.gov. Please include File Number SR– COMMISSION Statement of the Purpose of, and BOX–2015–15 on the subject line. Statutory Basis for, the Proposed Rule [Release No. 34–74477; File No. SR–BOX– Change Paper Comments 2015–14] 1. Purpose • Send paper comments in triplicate The Exchange is a limited liability to Brent J. Fields, Secretary, Securities Self-Regulatory Organizations; BOX company, organized under the laws of and Exchange Commission, 100 F Street Options Exchange LLC; Notice of the State of Delaware on August 26, NE., Washington, DC 20549–1090. Filing and Immediate Effectiveness of 2010. The Exchange’s charter is a a Proposed Rule Change Regarding Limited Liability Company Agreement, All submissions should refer to File the Transfer of Ownership Interest in Number SR–BOX–2015–15. This file dated as of May 10, 2012 (the ‘‘Exchange the Exchange LLC Agreement’’). SI became a Member number should be included on the subject line if email is used. To help the March 11, 2015. of the Exchange on May 10, 2012. BOX Holdings is a limited liability Commission process and review your Pursuant to Section 19(b)(1) of the company, organized under the laws of comments more efficiently, please use Securities Exchange Act of 1934 the State of Delaware on August 26, only one method. The Commission will (‘‘Act’’),1 and Rule 19b–4 thereunder,2 2010. BOX Holdings is the sole owner post all comments on the Commission’s notice is hereby given that on February of BOX Market LLC, a facility of the Internet Web site (http://www.sec.gov/ 26, 2015, BOX Options Exchange LLC Exchange (‘‘BOX Market’’). The BOX rules/sro.shtml). Copies of the (the ‘‘Exchange’’) filed with the Holdings charter is a Limited Liability submission, all subsequent Securities and Exchange Commission Company Agreement, dated as of May amendments, all written statements (‘‘Commission’’) the proposed rule 10, 2012 (the ‘‘Holdings LLC with respect to the proposed rule change as described in Items I and II Agreement’’). SI became a Member of change that are filed with the below, which Items have been prepared BOX Holdings on May 10, 2012. 6,445 Commission, and all written by the self-regulatory organization. The Economic Units and 4,990 Voting Units communications relating to the represent SI’s ownership interest in the Commission is publishing this notice to proposed rule change between the Exchange, comprising 6.455% of all solicit comments on the proposed rule Commission and any person, other than outstanding interests and 4.99% of all from interested persons. outstanding voting interests of the those that may be withheld from the public in accordance with the I. Self-Regulatory Organization’s Exchange, respectively (the ‘‘Exchange provisions of 5 U.S.C. 552, will be Statement of the Terms of Substance of Units’’). 500 Class A Units represent SI’s available for Web site viewing and the Proposed Rule Change ownership interest in BOX Holdings, comprising 4.203% of all outstanding printing in the Commission’s Public The Exchange proposes to repurchase ownership interests of BOX Holdings Reference Room, 100 F Street NE., the ownership interest in the Exchange (the ‘‘Holdings Units’’ and, together Washington, DC 20549 on official with the Exchange Units, the ‘‘SI held by Strategic Investments II Inc. business days between the hours of Units’’). (‘‘SI’’) and BOX Holdings Group LLC, an 10:00 a.m. and 3:00 p.m. Copies of such Each of the Exchange and BOX affiliate of the Exchange (‘‘BOX filing also will be available for Holdings has agreed with SI to purchase Holdings’’), proposes to repurchase the inspection and copying at the principal the SI Units. Accordingly, it is proposed ownership interest in BOX Holdings office of the Exchange. All comments that SI transfer all of the Exchange Units held by SI. The text of the proposed rule received will be posted without change; to the Exchange and all of the Holdings change is available from the principal the Commission does not edit personal Units to BOX Holdings (the ‘‘Transfer’’). office of the Exchange, at the identifying information from After the Transfer, the SI Units will no Commission’s Public Reference Room longer be outstanding, references to SI submissions. You should submit only and also on the Exchange’s Internet Web in each of the Exchange LLC Agreement information that you wish to make site at http://boxexchange.com. and the Holdings LLC Agreement will available publicly. All submissions should refer to File Number SR–BOX– II. Self-Regulatory Organization’s be removed, and SI will have no 2015–15, and should be submitted on or Statement of the Purpose of, and remaining rights under the Exchange before April 7, 2015. Statutory Basis for, the Proposed Rule LLC Agreement or the Holdings LLC Change Agreement. For the Commission, by the Division of As provided in Section 7.3(f) of the Trading and Markets, pursuant to delegated Exchange LLC Agreement, ‘‘no Person, In its filing with the Commission, the authority.10 alone or together with any Related self-regulatory organization included Brent J. Fields, statements concerning the purpose of, Persons, shall own, directly or Secretary. and basis for, the proposed rule change indirectly, of record or beneficially, an [FR Doc. 2015–06017 Filed 3–16–15; 8:45 am] and discussed any comments it received aggregate Economic Percentage Interest BILLING CODE 8011–01–P on the proposed rule change. The text greater than 40% (or 20% if such Person of these statements may be examined at is a BOX Options Participant) (the the places specified in Item IV below. ‘‘Economic Ownership Limit’’).’’ mstockstill on DSK4VPTVN1PROD with NOTICES Accordingly, because the total number The self-regulatory organization has of outstanding Economic Units of the prepared summaries, set forth in Exchange are reduced in the Transfer, Sections A, B, and C below, of the most outstanding Economic Units held by significant aspects of such statements. any remaining Members of the Exchange will be cancelled to the extent necessary 1 15 U.S.C. 78s(b)(1). to ensure compliance with the 10 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. Economic Ownership Limit. VerDate Sep<11>2014 18:09 Mar 16, 2015 Jkt 235001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 E:\FR\FM\17MRN1.SGM 17MRN1


Document Created: 2015-12-18 12:01:46
Document Modified: 2015-12-18 12:01:46
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 13930 
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