80 FR 30291 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Authorize the Exchange To Share Any Participant-Designated Risk Settings in the Trading System With the Clearing Participant That Clears Transactions on Behalf of the Participant
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 101 (May 27, 2015)
Federal Register Volume 80, Issue 101 (May 27, 2015)
| Page Range | 30291-30293 | |
| FR Document | 2015-12686 |
[Federal Register Volume 80, Number 101 (Wednesday, May 27, 2015)] [Notices] [Pages 30291-30293] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-12686] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75001; File No. SR-BOX-2015-20] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Authorize the Exchange To Share Any Participant-Designated Risk Settings in the Trading System With the Clearing Participant That Clears Transactions on Behalf of the Participant May 20, 2015. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on May 13, 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 from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- [[Page 30292]] I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend BOX Rule 7000 (Access to and Conduct on the BOX Market) to authorize the Exchange to share any Participant- designated risk settings in the trading system with the Clearing Participant that clears transactions on behalf of the Participant. 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 7000 (Access to and Conduct on the BOX Market) to authorize the Exchange to share any Participant- designated risk settings in the trading system with the Clearing Participant \3\ that clears transactions on behalf of the Participant.\4\ Rule 7000 states that ``[u]nless otherwise provided in the Rules, no one but an Options Participant or a person associated with an Options Participant shall effect any BOX Transactions.'' \5\ The Exchange proposes to amend the rule by adding the following sentence: ``The Exchange may share any Participant-designated risk settings in the trading system with the Clearing Participant that clears transactions on behalf of the Participant.'' This is a competitive filing that is based on a proposal recently submitted by the International Securities Exchange, LLC (``ISE'').\6\ --------------------------------------------------------------------------- \3\ The term ``Clearing Participant'' means an Options Participant that is self-clearing or an Options Participant that clears BOX Transactions for other Options Participants of BOX. See Rule 100(a)(13). \4\ The term ``Options Participant'' or ``Participant'' means a firm, or organization that is registered with the Exchange pursuant to the Rule 2000 Series for purposes of participating in options trading on BOX as an ``Order Flow Provider'' or ``Market Maker''. See Rule 100(a)(40). \5\ See Rule 7000(a). \6\ See Securities Exchange Act Release No. 74623 (April 1, 2015), 80 FR 18447 (April 6, 2015) (Notice of SR-ISE-2015-12). --------------------------------------------------------------------------- Rule 7200 provides that every Clearing Participant shall be responsible for the clearance of BOX Transactions \7\ of such Clearing Participants and of each Participant that gives up such Clearing Participant's name pursuant to a letter of authorization, letter of guarantee or other authorization given by such Clearing Participant to such Participant, which authorization must be submitted to the Exchange.\8\ The Exchange believes that because Clearing Participants guarantee all transactions on behalf of a Participant, and therefore, bear the risk associated with those transactions, it is appropriate for Clearing Participants to have knowledge of what risk settings a Participant may utilize within the trading system. --------------------------------------------------------------------------- \7\ The term ``BOX Transaction'' means a transaction involving an options contract that is effected on or through BOX or its facilities or systems. See Rule 100(a)(8). \8\ See Rule 7200(b). --------------------------------------------------------------------------- The Exchange notes that while not all Participants are Clearing Participants, all Participants require a Clearing Participant's consent to clear transactions on their behalf in order to conduct business on the Exchange. As the Clearing Participant ultimately bears all the risk for a trade they clear on any Participant's behalf, the Exchange believes it is reasonable to provide Clearing Participants with information relating to the risk settings used by each Participant whose transactions they are clearing. To the extent that a Clearing Participant might reasonably require a Participant to provide access to its risk settings as a prerequisite to continue to clear trades on the Participant's behalf, the Exchange's proposal to share those risk settings directly reduces the administrative burden on Participants and ensures that Clearing Participants are receiving information that is up-to-date and conforms to the settings active in the trading system. The Exchange further notes that any broker-dealer is free to become a clearing member of the Options Clearing Corporation (the ``OCC''), which would enable that Participant to avoid sharing risk settings with any third party, if they so choose. For these reasons, the Exchange believes that the proposal is consistent with the Act as it provides Clearing Participants with additional risk-related information that may aid them in complying with the Act, notably Rule 15c3-5 and, as noted, Participants that do not wish to share such settings with a Clearing Participant can do so by becoming a clearing member of the OCC. The risk settings that would be shared pursuant to the proposed rule are currently codified in Rule 8130.\9\ The risk settings are designed to mitigate the potential risks of multiple executions against a Participant's trading interest that, in today's highly automated and electronic trading environment, can occur simultaneously across multiple series and multiple option classes. The proposed rule will allow the Exchange to share a Participant's risk settings with the Clearing Participant that guarantees the Participant's transactions, and therefore has a financial interest in understanding the risk tolerance of a Participant. --------------------------------------------------------------------------- \9\ Under BOX Rule 8130 there are five triggering parameters that Market Makers can enable on a class-by-class basis. These are when the Market Maker: (1) Experiences a duration of no technical connectivity for between one and nine seconds; (2) trades a specified number of contracts in the aggregate across all series of an options class; (3) trades a specified absolute dollar value of contracts bought and sold in a class; (4) trades a specified number of contracts in a class of the net between (i) calls purchased plus puts sold, and (ii) calls sold and puts purchased; or, (5) trades a specified absolute dollar value of the net position in a class between (i) calls purchased and sold, (ii) puts and calls purchased; (iii) puts purchased and sold; or (iv) puts and calls sold. --------------------------------------------------------------------------- Because the letter of guarantee codifies the relationship between a Participant and the Clearing Participant, the Exchange is on notice of which Clearing Participants have relationships with which Participants. The proposed rule change would simply provide the Exchange with authority to directly provide Clearing Participants with information that may otherwise be available to such Clearing Participants by virtue of their relationship with the respective Participant. 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''),\10\ in general, and Section 6(b)(5) of the Act,\11\ 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 [[Page 30293]] general to protect investors and the public interest. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that the proposed rule change removes impediments to and perfects the mechanism of a free and open market by codifying that the Exchange may directly provide to Clearing Participants which guarantee that Participant's transactions on the Exchange the Participant-designated risk settings in the trading system, which are designed to mitigate the potential risk of ``rapid fire'' executions that could result in large and unintended principal positions and expose the Participant to unnecessary market risk. The Exchange believes that the proposed rule change is consistent with the protection of investors and the public interest because it will permit Clearing Participants with a financial interest in a Participant's risk settings to better monitor and manage the potential risks assumed by Participants with whom the Clearing Participant has entered into a letter of guarantee, thereby providing Clearing Participants with greater control and flexibility over setting their own risk tolerance and exposure. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. In this regard and as indicated above, the Exchange notes that the rule change is being proposed as a response to a filing submitted by ISE.\12\ The proposed rule change is not designed to address any competitive issues and does not pose an undue burden on non-Clearing Participants because, unlike Clearing Participants, non-Clearing Participants do not guarantee the execution of a Participant's BOX Transactions. The proposed rule change would provide authority for the Exchange to directly share risk settings with Clearing Participants regarding the Participants with whom the Clearing Participant has executed a letter of guarantee so the Clearing Participant can better monitor and manage the potential risks assumed by the Participants, thereby providing them with greater control and flexibility over setting their own risk tolerance and exposure. The proposed rule change is structured to offer the same enhancement to all Clearing Participants, regardless of size, and would not impose a competitive burden on any participant. --------------------------------------------------------------------------- \12\ See supra, note 6. --------------------------------------------------------------------------- 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 foregoing 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, it has become effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b- 4(f)(6) \14\ thereunder. 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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f)(6). 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. --------------------------------------------------------------------------- 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-BOX-2015-20 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-2015-20. 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 the filing will also 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-2015-20 and should be submitted on or before June 17, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-12686 Filed 5-26-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Notices 30291
2. Labor arbitration information: date and moved to an inactive file for complaint name, complainant Social
Records related to labor arbitration future comparative analyses. Security Number or Employee
proceedings in which USPS is a party. 2. Labor arbitration records: Field- Identification Number, location, and
[TEXT TO BE DELETED] level disciplinary and contract case number and year. Inquiries about
3. EEO staff position information: application cases are retained for 5 years labor arbitration records, mediator
Records related to candidates for EEO from the date of final decision. National- provider, contract investigator, and
staff positions, including name, Social level contract interpretation cases and contract final agency decision writer
Security Number, Employee court actions are retained for 15 years records must be submitted to the system
Identification Number, date of birth, from the date of expiration of the manager.
postal assignment information, work agreement. * * * * *
contact information, finance number(s), 3. EEO staff selection records: Staff
duty location, and pay location. selection records are retained for 3 years RECORD SOURCE CATEGORIES
[CHANGE TO READ] from the date the position became [CHANGE TO READ]
3. Contractor provider information: vacant.
Records related to mediation providers, 4. ADR provider records: Records of For EEO discrimination complaint
contract investigators, and contract final active providers are retained for 1 year case information: Complainants,
agency decision writers including name beyond the date the provider is removed witnesses, investigators, and
of individual or entity, contact from or voluntarily withdraws from the respondents. For labor arbitration
information, capabilities, and program or is otherwise notified of their records: Employees and other
performance. decertification. Records of prospective individuals involved in arbitration;
providers who are rejected are retained counsel or other representatives for
* * * * *
for 1 year beyond the year in which parties involved in a case; and
PURPOSE(S) their survey was received. arbitrators. For mediation provider,
* * * * * Records existing on paper are contract investigator, and final agency
[TEXT TO BE DELETED] destroyed by burning, pulping, or decision writer records, the service
3. To accomplish EEO staff selection. shredding. Records existing on contract provider.
[CHANGE TO READ] computer storage media are destroyed * * * * *
3. To determine mediation service according to the applicable USPS media Stanley F. Mires,
provider, contract investigator, and final sanitization practice.
agency decision writer qualifications. Attorney, Federal Compliance.
SYSTEM MANAGER(S) AND ADDRESS [FR Doc. 2015–12672 Filed 5–26–15; 8:45 am]
* * * * *
[CHANGE TO READ] BILLING CODE 7710–12–P
SAFEGUARDS Vice President, Labor Relations,
[CHANGE TO READ] United States Postal Service, 475
Paper records and computer storage L’Enfant Plaza SW., Washington, DC
media are located in secure file cabinets 20260. SECURITIES AND EXCHANGE
within locked rooms or within locked [TEXT TO BE DELETED] COMMISSION
filing cabinets. Computers are For records of non REDRESS ADR
maintained in offices or rooms that can staff providers: Senior Vice President, [Release No. 34–75001; File No. SR–BOX–
be locked when users are not present General Counsel, United States Postal 2015–20]
and their contents are protected by user Service, 475 L’Enfant Plaza SW.,
IDs and passwords. Access to records is Washington, DC 20260. Self-Regulatory Organizations; BOX
limited to individuals whose official Options Exchange LLC; Notice of
NOTIFICATION PROCEDURE Filing and Immediate Effectiveness of
duties require such access. Contractors
and licensees are subject to contract [CHANGE TO READ] Proposed Rule Change To Authorize
controls and unannounced on-site Inquires about EEO discrimination the Exchange To Share Any
audits and inspections. The use of complaint case records regarding claims Participant-Designated Risk Settings in
computer systems is regulated with filed by field employees must be the Trading System With the Clearing
installed security software, computer submitted to the Manager, EEO Participant That Clears Transactions
logon identifications, and operating Compliance and Appeals, located in the on Behalf of the Participant
system controls including access appropriate Regional Office, Eastern and
Northeast Areas (Region 4)—8 Griffin May 20, 2015.
controls, terminal and transaction
logging, and file management software. Road North, Windsor CT 06095–1578, Pursuant to Section 19(b)(1) of the
Southern and Capital Metro Areas Securities Exchange Act of 1934
RETENTION AND DISPOSAL (Region 3)—225 North Humphreys (‘‘Act’’),1 and Rule 19b–4 thereunder,2
[CHANGE TO READ] Blvd., Memphis TN 38166–0978, notice is hereby given that on May 13,
1. EEO discrimination complaint case Southern and Great Lakes Areas (Region 2015, BOX Options Exchange LLC (the
records: Precomplaint records are 2)—P.O. Box 223863, Dallas TX 75222– ‘‘Exchange’’) filed with the Securities
retained for 1 year after submission of 3663, and Pacific and Western Areas and Exchange Commission
a final report. Formal complaint records (Region 1)—P.O. Box 880546, San (‘‘Commission’’) the proposed rule
of closed cases are removed from the Francisco CA 94188–0546. Inquiries change as described in Items I and II
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system of records quarterly, and regarding claims filed by employees at below, which Items have been prepared
retained as follows: Official files are Postal Service Headquarters and by the self-regulatory organization. The
retained for 4 years. Copies of official Headquarter Field Units and employees Commission is publishing this notice to
files are retained for 1 year. Background of the Inspection Service must be solicit comments on the proposed rule
documents not in official files are submitted to the Headquarters National from interested persons.
retained for 2 years. Records of closed EEO Compliance and Appeals Office at
cases on computer storage media are 475 L’Enfant Plaza SW., Washington DC 1 15 U.S.C. 78s(b)(1).
removed for 3 years after the closure 20260–4101. Inquiries must include 2 17 CFR 240.19b–4.
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I. Self-Regulatory Organization’s transactions on behalf of the notably Rule 15c3–5 and, as noted,
Statement of the Terms of Substance of Participant.’’ This is a competitive filing Participants that do not wish to share
the Proposed Rule Change that is based on a proposal recently such settings with a Clearing Participant
The Exchange proposes to amend submitted by the International can do so by becoming a clearing
BOX Rule 7000 (Access to and Conduct Securities Exchange, LLC (‘‘ISE’’).6 member of the OCC.
on the BOX Market) to authorize the Rule 7200 provides that every The risk settings that would be shared
Exchange to share any Participant- Clearing Participant shall be responsible pursuant to the proposed rule are
designated risk settings in the trading for the clearance of BOX Transactions 7 currently codified in Rule 8130.9 The
system with the Clearing Participant of such Clearing Participants and of risk settings are designed to mitigate the
that clears transactions on behalf of the each Participant that gives up such potential risks of multiple executions
Participant. The text of the proposed Clearing Participant’s name pursuant to against a Participant’s trading interest
rule change is available from the a letter of authorization, letter of that, in today’s highly automated and
principal office of the Exchange, at the guarantee or other authorization given electronic trading environment, can
Commission’s Public Reference Room by such Clearing Participant to such occur simultaneously across multiple
and also on the Exchange’s Internet Web Participant, which authorization must series and multiple option classes. The
site at http://boxexchange.com. be submitted to the Exchange.8 The proposed rule will allow the Exchange
Exchange believes that because Clearing to share a Participant’s risk settings with
II. Self-Regulatory Organization’s Participants guarantee all transactions the Clearing Participant that guarantees
Statement of the Purpose of, and on behalf of a Participant, and therefore, the Participant’s transactions, and
Statutory Basis for, the Proposed Rule bear the risk associated with those therefore has a financial interest in
Change transactions, it is appropriate for understanding the risk tolerance of a
In its filing with the Commission, the Clearing Participants to have knowledge Participant.
self-regulatory organization included of what risk settings a Participant may
utilize within the trading system. Because the letter of guarantee
statements concerning the purpose of, codifies the relationship between a
and basis for, the proposed rule change The Exchange notes that while not all
Participants are Clearing Participants, Participant and the Clearing Participant,
and discussed any comments it received the Exchange is on notice of which
on the proposed rule change. The text all Participants require a Clearing
Participant’s consent to clear Clearing Participants have relationships
of these statements may be examined at with which Participants. The proposed
the places specified in Item IV below. transactions on their behalf in order to
conduct business on the Exchange. As rule change would simply provide the
The self-regulatory organization has Exchange with authority to directly
prepared summaries, set forth in the Clearing Participant ultimately bears
all the risk for a trade they clear on any provide Clearing Participants with
Sections A, B, and C below, of the most information that may otherwise be
significant aspects of such statements. Participant’s behalf, the Exchange
believes it is reasonable to provide available to such Clearing Participants
A. Self-Regulatory Organization’s Clearing Participants with information by virtue of their relationship with the
Statement of the Purpose of, and relating to the risk settings used by each respective Participant.
Statutory Basis for, the Proposed Rule Participant whose transactions they are 2. Statutory Basis
Change clearing. To the extent that a Clearing
Participant might reasonably require a The Exchange believes that the
1. Purpose proposal is consistent with the
Participant to provide access to its risk
The Exchange proposes to amend settings as a prerequisite to continue to requirements of Section 6(b) of the
BOX Rule 7000 (Access to and Conduct clear trades on the Participant’s behalf, Securities Exchange Act of 1934 (the
on the BOX Market) to authorize the the Exchange’s proposal to share those ‘‘Act’’),10 in general, and Section 6(b)(5)
Exchange to share any Participant- risk settings directly reduces the of the Act,11 in particular, in that it is
designated risk settings in the trading administrative burden on Participants designed to prevent fraudulent and
system with the Clearing Participant 3 and ensures that Clearing Participants manipulative acts and practices, to
that clears transactions on behalf of the are receiving information that is up-to- promote just and equitable principles of
Participant.4 Rule 7000 states that date and conforms to the settings active trade, to foster cooperation and
‘‘[u]nless otherwise provided in the in the trading system. coordination with persons engaged in
Rules, no one but an Options Participant The Exchange further notes that any facilitating transactions in securities, to
or a person associated with an Options broker-dealer is free to become a remove impediments to and perfect the
Participant shall effect any BOX clearing member of the Options Clearing mechanism of a free and open market
Transactions.’’ 5 The Exchange proposes Corporation (the ‘‘OCC’’), which would and a national market system, and, in
to amend the rule by adding the enable that Participant to avoid sharing
following sentence: ‘‘The Exchange may risk settings with any third party, if they 9 Under BOX Rule 8130 there are five triggering
share any Participant-designated risk so choose. For these reasons, the parameters that Market Makers can enable on a
settings in the trading system with the class-by-class basis. These are when the Market
Exchange believes that the proposal is Maker: (1) Experiences a duration of no technical
Clearing Participant that clears consistent with the Act as it provides connectivity for between one and nine seconds; (2)
Clearing Participants with additional trades a specified number of contracts in the
3 The term ‘‘Clearing Participant’’ means an aggregate across all series of an options class; (3)
risk-related information that may aid
Options Participant that is self-clearing or an trades a specified absolute dollar value of contracts
Options Participant that clears BOX Transactions them in complying with the Act, bought and sold in a class; (4) trades a specified
mstockstill on DSK4VPTVN1PROD with NOTICES
for other Options Participants of BOX. See Rule number of contracts in a class of the net between
100(a)(13). 6 See Securities Exchange Act Release No. 74623 (i) calls purchased plus puts sold, and (ii) calls sold
4 The term ‘‘Options Participant’’ or ‘‘Participant’’ (April 1, 2015), 80 FR 18447 (April 6, 2015) (Notice and puts purchased; or, (5) trades a specified
means a firm, or organization that is registered with of SR–ISE–2015–12). absolute dollar value of the net position in a class
the Exchange pursuant to the Rule 2000 Series for 7 The term ‘‘BOX Transaction’’ means a between (i) calls purchased and sold, (ii) puts and
purposes of participating in options trading on BOX transaction involving an options contract that is calls purchased; (iii) puts purchased and sold; or
as an ‘‘Order Flow Provider’’ or ‘‘Market Maker’’. effected on or through BOX or its facilities or (iv) puts and calls sold.
See Rule 100(a)(40). systems. See Rule 100(a)(8). 10 15 U.S.C. 78f(b).
5 See Rule 7000(a). 8 See Rule 7200(b). 11 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Notices 30293
general to protect investors and the C. Self-Regulatory Organization’s number should be included on the
public interest. Statement on Comments on the subject line if email is used. To help the
The Exchange believes that the Proposed Rule Change Received From Commission process and review your
proposed rule change removes Members, Participants, or Others comments more efficiently, please use
impediments to and perfects the The Exchange has neither solicited only one method. The Commission will
mechanism of a free and open market by nor received comments on the proposed post all comments on the Commission’s
codifying that the Exchange may rule change. Internet Web site (http://www.sec.gov/
directly provide to Clearing Participants rules/sro.shtml). Copies of the
which guarantee that Participant’s III. Date of Effectiveness of the submission, all subsequent
transactions on the Exchange the Proposed Rule Change and Timing for amendments, all written statements
Participant-designated risk settings in Commission Action with respect to the proposed rule
the trading system, which are designed Because the foregoing proposed rule change that are filed with the
to mitigate the potential risk of ‘‘rapid change does not: (i) Significantly affect Commission, and all written
fire’’ executions that could result in the protection of investors or the public communications relating to the
large and unintended principal interest; (ii) impose any significant proposed rule change between the
positions and expose the Participant to burden on competition; and (iii) become Commission and any person, other than
unnecessary market risk. The Exchange operative for 30 days from the date on those that may be withheld from the
believes that the proposed rule change which it was filed, or such shorter time public in accordance with the
is consistent with the protection of as the Commission may designate, it has provisions of 5 U.S.C. 552, will be
investors and the public interest become effective pursuant to Section available for Web site viewing and
because it will permit Clearing 19(b)(3)(A) of the Act 13 and Rule 19b– printing in the Commission’s Public
Participants with a financial interest in 4(f)(6) 14 thereunder. At any time within Reference Room, 100 F Street NE.,
a Participant’s risk settings to better 60 days of the filing of the proposed rule Washington, DC 20549, on official
monitor and manage the potential risks change, the Commission summarily may business days between the hours of
assumed by Participants with whom the temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the
Clearing Participant has entered into a it appears to the Commission that such filing will also be available for
letter of guarantee, thereby providing action is necessary or appropriate in the inspection and copying at the principal
Clearing Participants with greater public interest, for the protection of office of the Exchange. All comments
control and flexibility over setting their investors, or otherwise in furtherance of received will be posted without change;
own risk tolerance and exposure. the purposes of the Act. If the the Commission does not edit personal
Commission takes such action, the identifying information from
B. Self-Regulatory Organization’s submissions. You should submit only
Statement on Burden on Competition Commission will institute proceedings
to determine whether the proposed rule information that you wish to make
The Exchange does not believe that change should be approved or available publicly. All submissions
the proposed rule change will impose disapproved. should refer to File Number SR–BOX–
any burden on competition not 2015–20 and should be submitted on or
necessary or appropriate in furtherance IV. Solicitation of Comments before June 17, 2015.
of the purposes of the Act. In this regard Interested persons are invited to For the Commission, by the Division of
and as indicated above, the Exchange submit written data, views, and Trading and Markets, pursuant to delegated
notes that the rule change is being arguments concerning the foregoing, authority.15
proposed as a response to a filing including whether the proposed rule Robert W. Errett,
submitted by ISE.12 The proposed rule change is consistent with the Act. Deputy Secretary.
change is not designed to address any Comments may be submitted by any of [FR Doc. 2015–12686 Filed 5–26–15; 8:45 am]
competitive issues and does not pose an the following methods: BILLING CODE 8011–01–P
undue burden on non-Clearing
Electronic Comments
Participants because, unlike Clearing
Participants, non-Clearing Participants • Use the Commission’s Internet SECURITIES AND EXCHANGE
do not guarantee the execution of a comment form (http://www.sec.gov/ COMMISSION
Participant’s BOX Transactions. The rules/sro.shtml); or
proposed rule change would provide • Send an email to rule-comments@ [Release No. IC–31615; File No. 812–14468]
authority for the Exchange to directly sec.gov. Please include File Number SR–
BOX–2015–20 on the subject line. Citicorp, et al.; Notice of Application
share risk settings with Clearing
and Temporary Order
Participants regarding the Participants Paper Comments
with whom the Clearing Participant has May 20, 2015.
executed a letter of guarantee so the • Send paper comments in triplicate AGENCY: Securities and Exchange
Clearing Participant can better monitor to Brent J. Fields, Secretary, Securities Commission (‘‘Commission’’)
and manage the potential risks assumed and Exchange Commission, 100 F Street
ACTION: Temporary order and notice of
by the Participants, thereby providing NE., Washington, DC 20549–1090.
All submissions should refer to File application for a permanent order under
them with greater control and flexibility section 9(c) of the Investment Company
over setting their own risk tolerance and Number SR–BOX–2015–20. This file
Act of 1940 (‘‘Act’’).
exposure. The proposed rule change is
mstockstill on DSK4VPTVN1PROD with NOTICES
13 15 U.S.C. 78s(b)(3)(A).
structured to offer the same 14 17 SUMMARY OF APPLICATION: Applicants
CFR 240.19b–4(f)(6). As required under Rule
enhancement to all Clearing 19b–4(f)(6)(iii), the Exchange provided the have received a temporary order
Participants, regardless of size, and Commission with written notice of its intent to file (‘‘Temporary Order’’) exempting them
would not impose a competitive burden the proposed rule change, along with a brief from section 9(a) of the Act, with
on any participant. description and the text of the proposed rule
change, at least five business days prior to the date respect to a guilty plea entered on May
of filing of the proposed rule change, or such
12 See supra, note 6. shorter time as designated by the Commission. 15 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 16:45 May 26, 2015 Jkt 235001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\27MYN1.SGM 27MYN1](https://thefederalregister.org/doc/80_FR_30392/page/3.svg)
Document Created: 2015-12-15 15:36:05
Document Modified: 2015-12-15 15:36:05
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 30291 |
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