80_FR_56684 80 FR 56503 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Principles-Based Approach To Prohibit the Misuse of Material Nonpublic Information by Market Makers

80 FR 56503 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Principles-Based Approach To Prohibit the Misuse of Material Nonpublic Information by Market Makers

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 181 (September 18, 2015)

Page Range56503-56506
FR Document2015-23400

Federal Register, Volume 80 Issue 181 (Friday, September 18, 2015)
[Federal Register Volume 80, Number 181 (Friday, September 18, 2015)]
[Notices]
[Pages 56503-56506]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23400]


=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75916; File No. SR-BOX-2015-31]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt 
a Principles-Based Approach To Prohibit the Misuse of Material 
Nonpublic Information by Market Makers

September 14, 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 September 3, 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.
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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 Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt a principles-based approach to 
prohibit the misuse of material nonpublic information by Market Makers 
by deleting BOX Rule 8090 (Limitation on Dealings). 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 adopt a principles-based approach to 
prohibit the misuse of material non-public information by Market Makers 
by deleting BOX Rule 8090 (Limitation on Dealing). In doing so, the 
Exchange would harmonize its rules governing BOX Participants and BOX 
Market Makers relating to protecting against the misuse of material, 
non-public information. The Exchange believes that BOX Rule 8090 is no 
longer necessary because all Market Makers are subject to the 
Exchange's general principles-based requirements governing the 
protection against the misuse of material, non-public information, 
pursuant to BOX Rule 3090 (Prevention of the Misuse of Material 
Nonpublic Information), which obviates the need for separately-
prescribed requirements for a subset of market participants on the 
Exchange. Additionally, there is no separate regulatory purpose served 
by having separate rules for Market Makers. The Exchange notes that 
this proposed rule change will not decrease the protections against the 
misuse of material, non-public information; instead, it is designed to 
provide more flexibility to Option Participants. This is a competitive 
filing that is based on a proposal recently submitted by NYSE MKT LLC 
(``NYSE MKT'') and approved by the Commission.\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 75432 (July 13, 
2015), 80 FR 42597 (July 17, 2015) (Order Approving SR-NYSEMKT-2015-
23).
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Background
    The Exchange has two classes of registered Options Participants. 
Pursuant to BOX Rule 100(a)(4), the term ``Options Participant'' or 
``Participant'' means a firm, or organization that is registered with 
the Exchange pursuant to the Rule 2000 Series (Participation) for 
purposes of participating in options trading on BOX as an ``Order Flow 
Provider'' or ``Market Maker''. Pursuant to Rule 100(a)(30) Market 
Maker means an Options Participant registered with the Exchange for the 
purpose of making markets in options contracts traded on the Exchange 
and that is vested with the rights and responsibilities specified in 
the Rule 8000 Series. All Market Makers are designated as specialists 
on the Exchange for all purposes under the Exchange Act or Rules 
thereunder.

[[Page 56504]]

    BOX Rule 8040 (Market Maker Obligations) specifies the obligations 
of Market Makers. The heightened quoting obligations of Market Makers 
are set forth in BOX Rule 8050 (Market Maker Quotations).\4\ BOX Rule 
8090 requires Market Makers to maintain information barriers that are 
reasonably designed to prevent the misuse of material, non-public 
corporate or markets information in the possession of persons on one 
side of the barrier to persons on the other side of the barrier.
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    \4\ BOX Rule 8050(e), Continuous Quotes, On a daily basis, a 
Market Maker must during regular market hours make markets and enter 
into any resulting transactions consistent with the applicable 
quoting requirements specified in these rules, such that on a daily 
basis a Market Maker must post valid quotes at least sixty percent 
(60%) of the time that the classes are open for trading. These 
obligations will apply to all of the Market Maker's appointed 
classes collectively, rather than on a class-by-class basis.
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Proposed Rule Change
    The Exchange believes that the particularized guidelines in BOX 
Rule 8090 for Market Makers are no longer necessary and proposes to 
delete it. Rather, the Exchange believes that BOX Rule 3090 (Prevention 
of the Misuse of Material Nonpublic Information) governing the misuse 
of material, non-public information provides for an appropriate, 
principles-based approach to prevent the market abuses BOX Rule 8090 is 
designed to address. Specifically, BOX Rule 3090 requires every Options 
Participant to establish, maintain, and enforce written policies and 
procedures reasonably designed to prevent the misuse of material, non-
public information by such Participant or persons associated with such 
Participant. For purposes of this requirement, the misuse of material, 
non-public information includes, but is not limited to, the following:
    (1) Trading in any securities issued by a corporation, partnership, 
or a trust or similar entities, or in any related securities or related 
options or other derivative securities, or in any related non-U.S. 
currency, non-U.S. currency options, futures or options on futures on 
such currency, or any other derivatives based on such currency, or in 
any related commodity, related commodity futures or options on 
commodity futures or any other related commodity derivatives, while in 
possession of material nonpublic information concerning that issuer;
    (2) trading in an underlying security or related options or other 
derivative securities, or in any related non-U.S. currency, non-U.S. 
currency options, futures or options on futures on such currency, or in 
any related commodity, related commodity futures or options on 
commodity futures or any other related commodity derivatives, or any 
other derivatives based on such currency, while in possession of 
material nonpublic information concerning imminent transactions in the 
above; and
    (3) disclosing to another person any material nonpublic information 
involving a corporation, partnership, or Funds or a trust or similar 
entities whose shares are publicly traded or disclosing an imminent 
transaction in an underlying security or related securities or in the 
underlying non-U.S. currency or any related non-U.S. currency options, 
futures or options on futures on such currency, or in any related 
commodity, related commodity futures or options on commodity futures or 
any other related commodity derivatives, or any other derivatives based 
on such currency for the purpose of facilitating the possible misuse of 
such material nonpublic information.
    Because Options Participants are already subject to the 
requirements of BOX Rule 3090, the Exchange does not believe that it is 
necessary to separately require specific limitations on Market Makers. 
Deleting BOX Rule 8090 and requirements for specific procedures would 
provide Market Makers with the flexibility to adapt their policies and 
procedures as appropriate to reflect changes to their business model, 
business activities, or the securities market in a manner similar to 
how Options Participants on the Exchange currently operate and 
consistent with BOX Rule 3090.
    As noted above, Market Makers are distinguished under Exchange 
rules from other Options Participants only to the extent that Market 
Makers have heightened quiting [sic] obligations. However, none of 
these heightened obligations provides different or greater access to 
nonpublic information than any other Options Participant on the 
Exchange.\5\
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    \5\ See BOX Rules 8040 and 8050.
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    Accordingly, because Market Makers do not have any trading 
advantages at the Exchange due to their market role, the Exchange 
believes that they should be subject to the same rules regarding the 
protection against the misuse of material non-public information, which 
in this case, is existing BOX Rule 3090.\6\
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    \6\ The Exchange notes that by deleting BOX Rule 8090, the 
Exchange would no longer require specific information barriers for 
Market Makers or require pre-approval of any information barriers 
that a Market Maker would erect for purposes of protecting against 
the misuse of material non-public information. However, as is the 
case today with Options Participants, information barriers of new 
entrants, would be subject to review as part of a new firm 
application. Moreover, the policies and procedures of Market Makers, 
including those relating to information barriers, would be subject 
to review by FINRA, on behalf of the Exchange, pursuant to a 
Regulatory Services Agreement.
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    The Exchange notes that its proposed approach to use a principles-
based approach to protecting against the misuse of material non-public 
information for all of its registered Options Participants is 
consistent with recently filed rule changes for NYSE MKT and approved 
rule changes for, NYSE Arca Equities, Inc. (``NYSE Arca''), BATS 
Exchange, Inc.'s (``BATS''), and New York Stock Exchange LLC (``NYSE'') 
rules governing cash equity market makers on those respective 
exchanges.\7\ Except for prescribed rules relating to floor-based 
designated market makers on the NYSE, who have access to specified non-
public trading information, each of these exchanges have moved to a 
principles-based approach to protecting against the misuse of material 
non- public information. In connection with approving those rule 
changes, the Commission found that, with adequate oversight by the 
exchanges of their members, eliminating prescriptive information 
barrier requirements should not reduce the effectiveness of exchange 
rules requiring its members to establish and maintain systems to 
supervise the activities of its members, including written procedures 
reasonably designed to ensure compliance with applicable federal 
securities law and regulations, and with the rules of the applicable 
exchange.\8\
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    \7\ See Securities Exchange Act Release No. 75432 (July 13, 
2015), 80 FR 42597 (July 17, 2015) (Order Approving Adopting a 
Principles-Based Approach to Prohibit the Misuse of Material 
Nonpublic Information by Specialists and e-Specialists by Deleting 
Rule 927.3NY and Section (f) of Rule 927.5NY). See also Securities 
Exchange Act Release Nos. 60604 (Sept. 2, 2009), 76 FR 46272 (Sept. 
8, 2009) (SR-NYSEArca-2009-78) (Order approving elimination of NYSE 
Arca rule that required market makers to establish and maintain 
specifically prescribed information barriers, including discussion 
of NYSE Arca and Nasdaq rules) (``Arca Approval Order''); 61574 
(Feb. 23, 2010), 75 FR 9455 (Mar. 2, 2010) (SR-BATS-2010-003) (Order 
approving amendments to BATS Rule 5.5 to move to a principles-based 
approach to protecting against the misuse of material, non-public 
information, and noting that the proposed change is consistent with 
the approaches of NYSE Arca and Nasdaq) (``BATS Approval Order''); 
and 72534 (July 3, 2014), 79 FR 39440 (July 10, 2014), SR-NYSE-2014-
12) (Order approving amendments to NYSE Rule 98 governing designated 
market makers to move to a principles-based approach to prohibit the 
misuse of material non-public information) (``NYSE Approval 
Order'').
    \8\ See, e.g., BATS Approval Order, supra note 7 at 9458.
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    Comparable to members of cash equity markets, the Exchange believes 
that a principles-based rule applicable to members of options markets 
would be equally effective in protecting against

[[Page 56505]]

the misuse of material non-public information. Indeed, BOX Rule 3090 is 
currently applicable to Options Participants which already requires 
policies and procedures reasonably designed to protect against the 
misuse of material nonpublic information, which is similar to the 
respective NYSE MKT, NYSE Arca Equities, BATS and NYSE rules governing 
cash equity market makers. The Exchange believes BOX Rule 3090 provides 
appropriate protection against the misuse of material nonpublic 
information by Options Participants and there is no longer a need for 
prescriptive information barrier requirements in BOX Rule 8090.
    The Exchange notes that even with this proposed rule change, 
pursuant to BOX Rule 3090, an Options Participant would still be 
obligated to ensure that its policies and procedures reflect the 
current state of its business and continue to be reasonably designed to 
achieve compliance with applicable federal securities law and 
regulations, including Section 15(g) of the Act,\9\ and with applicable 
Exchange rules, including being reasonably designed to protect against 
the misuse of material, non-public information. While information 
barriers would not specifically be required under the proposal, BOX 
Rule 3090 already requires that an Options Participant consider its 
business model or business activities in structuring its policies and 
procedures, which may dictate that an information barrier or a 
functional separation be part of the appropriate set of policies and 
procedures that would be reasonably designed to achieve compliance with 
applicable securities law and regulations, and with applicable Exchange 
rules.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78o(g).
---------------------------------------------------------------------------

    The Exchange believes that the proposed reliance on the principles-
based BOX Rule 3090 would ensure that an Options Participant would be 
required to protect against the misuse of any material non-public 
information. As noted above, BOX Rule 3090 already requires that firms 
refrain from trading while in possession of material non-public 
information concerning imminent transactions in the security or related 
product. The Exchange believes that moving to a principles-based 
approach rather than prescribing how and when to wall off a Market 
Maker from the rest of the firm would provide Market Makers with 
flexibility when managing risk across a firm, including integrating 
options positions with other positions of the firm or, as applicable, 
by the respective independent trading unit.
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 general to protect investors and the 
public interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 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 by 
adopting a principles- based approach to permit an Options Participant 
to maintain and enforce policies and procedures to, among other things, 
prohibit the misuse of material non-public information and provide 
flexibility on how a Market Maker structures its operations. The 
Exchange notes that the proposed rule change is based on an approved 
rule of the Exchange to which Options Participants--BOX Rule 3090--and 
harmonizes the rules governing Options Participants. Moreover, Market 
Makers would continue to be subject to federal and Exchange 
requirements for protecting material non- public order information.\12\ 
The Exchange believes that the proposed rule change would remove 
impediments to and perfect the mechanism of a free and open market 
because it would harmonize the Exchange's approach to protecting 
against the misuse of material nonpublic information and no longer 
subject Market Makers to prescriptive requirements. The Exchange does 
not believe that the existing prescriptive requirements applicable to 
Options Participants are narrowly tailored to their respective roles 
because neither market participant has access to Exchange trading 
information in a manner different from any other market participant on 
the Exchange.
---------------------------------------------------------------------------

    \12\ See 15 U.S.C. 78o(g) and BOX Rule 3090.
---------------------------------------------------------------------------

    The Exchange further believes the proposal is designed to prevent 
fraudulent and manipulative acts and practices and to promote just and 
equitable principles of trade because existing rules make clear to 
Options Participants the type of conduct that is prohibited by the 
Exchange. While the proposal eliminates prescriptive requirements 
relating to the misuse of material non-public information, Market 
Makers would remain subject to existing Exchange rules requiring them 
to establish and maintain systems to supervise their activities, and to 
create, implement, and maintain written procedures that are reasonably 
designed to comply with applicable securities laws and Exchange rules, 
including the prohibition on the misuse of material, nonpublic 
information. Additionally, the policies and procedures of Market 
Makers, including those relating to information barriers, would be 
subject to review by FINRA, on behalf of the Exchange.\13\
---------------------------------------------------------------------------

    \13\ See supra, note 6.
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    The Exchange notes that the proposed rule change would still 
require that Market Makers maintain and enforce policies and procedures 
reasonably designed to ensure compliance with applicable federal 
securities laws and regulations and with Exchange rules. Even though 
there would no longer be pre-approval of Market Maker information 
barriers, any Market Maker written policies and procedures would 
continue to be subject to oversight by the Exchange and therefore the 
elimination of prescribed restrictions should not reduce the 
effectiveness of the Exchange rules to protect against the misuse of 
material non-public information. Rather, Options Participants will be 
able to utilize a flexible, principles-based approach to modify their 
policies and procedures as appropriate to reflect changes to their 
business model, business activities, or to the securities market 
itself. Moreover, while specified information barriers may no longer be 
required, an Options Participant's business model or business 
activities may dictate that an information barrier or functional 
separation be part of the appropriate set of policies and procedures 
that would be reasonably designed to achieve compliance with applicable 
securities laws and regulations, and with applicable Exchange rules. 
The Exchange therefore believes that the proposed rule change will 
maintain the existing protection of investors and the public interest 
that is currently applicable to Market Makers, while at the same time 
removing impediments to and perfecting a free and open market by moving 
to a principles-based approach to protect against the misuse of 
material non-public information.

[[Page 56506]]

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 
competitive response to a filing submitted by NYSE MKT that was 
recently approved by the Commission.\14\
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    \14\ See supra, note 3.
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    To the contrary, the Exchange believes that the proposal will 
enhance competition by allowing Market Makers to comply with applicable 
Exchange rules in a manner best suited to their business models, 
business activities, and the securities markets, thus reducing 
regulatory burdens while still ensuring compliance with applicable 
securities laws and regulations and Exchange rules. The Exchange 
believes that the proposal will foster a fair and orderly marketplace 
without being overly burdensome upon Market Makers.
    Moreover, the Exchange believes that the proposed rule change would 
eliminate a burden on competition for Options Participants which 
currently exists as a result of disparate rule treatment between the 
options and equities markets regarding how to protect against the 
misuse of material non-public information. For those Options 
Participants that are also members of equity exchanges, their 
respective equity market maker operations are now subject to a 
principles-based approach to protecting against the misuse of material 
non-public information. The Exchange believes it would remove a burden 
on competition to enable Options Participants to similarly apply a 
principles-based approach to protecting against the misuse of material 
nonpublic information in the options space. To this end, the Exchange 
notes that BOX Rule 3090 still requires Market Makers to evaluate its 
business to assure that its policies and procedures are reasonably 
designed to protect against the misuse of material nonpublic 
information. However, with this proposed rule change, an Options 
Participant that trades equities and options could look at its firm 
more holistically to structure its operations in a manner that provides 
it with better tools to manage its risks across multiple security 
classes, while at the same time protecting against the misuse of 
material non-public information.

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

    The Exchange believes that the foregoing proposed rule change may 
take effect upon filing with the Commission pursuant to Section 
19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder 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 after its filing date, or such shorter time as the Commission may 
designate.
    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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
     Send an email to [email protected]. Please include 
File Number SR-BOX-2015-31 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-2015-31. 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-2015-31 and should be 
submitted on or before October 9, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-23400 Filed 9-17-15; 8:45 am]
BILLING CODE 8011-01-P



                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices                                                  56503

                                              I. Introduction                                         SECURITIES AND EXCHANGE                               A. Self-Regulatory Organization’s
                                                                                                      COMMISSION                                            Statement of the Purpose of, and
                                                 On September 11, 2015, the Postal                                                                          Statutory Basis for, the Proposed Rule
                                              Service filed notice that it has entered                                                                      Change
                                                                                                      [Release No. 34–75916; File No. SR–BOX–
                                              into an additional Global Expedited
                                                                                                      2015–31]                                              1. Purpose
                                              Package Services 3 (GEPS 3) negotiated
                                              service agreement (Agreement).1                         Self-Regulatory Organizations; BOX                      The Exchange proposes to adopt a
                                                 To support its Notice, the Postal                    Options Exchange LLC; Notice of                       principles-based approach to prohibit
                                              Service filed a copy of the Agreement,                  Filing and Immediate Effectiveness of                 the misuse of material non-public
                                              a copy of the Governors’ Decision                       Proposed Rule Change To Adopt a                       information by Market Makers by
                                              authorizing the product, a certification                Principles-Based Approach To Prohibit                 deleting BOX Rule 8090 (Limitation on
                                              of compliance with 39 U.S.C. 3633(a),                   the Misuse of Material Nonpublic                      Dealing). In doing so, the Exchange
                                              and an application for non-public                       Information by Market Makers                          would harmonize its rules governing
                                              treatment of certain materials. It also                                                                       BOX Participants and BOX Market
                                              filed supporting financial workpapers.                  September 14, 2015.                                   Makers relating to protecting against the
                                                                                                         Pursuant to Section 19(b)(1) of the                misuse of material, non-public
                                              II. Notice of Commission Action                                                                               information. The Exchange believes that
                                                                                                      Securities Exchange Act of 1934
                                                                                                      (‘‘Act’’),1 and Rule 19b–4 thereunder,2               BOX Rule 8090 is no longer necessary
                                                The Commission establishes Docket
                                                                                                      notice is hereby given that on                        because all Market Makers are subject to
                                              No. CP2015–137 for consideration of                                                                           the Exchange’s general principles-based
                                              matters raised by the Notice.                           September 3, 2015, BOX Options
                                                                                                                                                            requirements governing the protection
                                                The Commission invites comments on                    Exchange LLC (the ‘‘Exchange’’) filed
                                                                                                                                                            against the misuse of material, non-
                                              whether the Postal Service’s filing is                  with the Securities and Exchange                      public information, pursuant to BOX
                                              consistent with 39 U.S.C. 3632, 3633, or                Commission (‘‘Commission’’) the                       Rule 3090 (Prevention of the Misuse of
                                              3642, 39 CFR part 3015, and 39 CFR                      proposed rule change as described in                  Material Nonpublic Information), which
                                              part 3020, subpart B. Comments are due                  Items I and II below, which Items have                obviates the need for separately-
                                              no later than September 21, 2015. The                   been prepared by the self-regulatory                  prescribed requirements for a subset of
                                              public portions of the filing can be                    organization. The Commission is                       market participants on the Exchange.
                                              accessed via the Commission’s Web site                  publishing this notice to solicit                     Additionally, there is no separate
                                              (http://www.prc.gov).                                   comments on the proposed rule from                    regulatory purpose served by having
                                                                                                      interested persons.                                   separate rules for Market Makers. The
                                                The Commission appoints Curtis E.                                                                           Exchange notes that this proposed rule
                                              Kidd to serve as Public Representative                  I. Self-Regulatory Organization’s
                                                                                                                                                            change will not decrease the protections
                                              in this docket.                                         Statement of the Terms of Substance of
                                                                                                                                                            against the misuse of material, non-
                                                                                                      the Proposed Rule Change
                                              III. Ordering Paragraphs                                                                                      public information; instead, it is
                                                                                                         The Exchange proposes to adopt a                   designed to provide more flexibility to
                                                It is ordered:                                        principles-based approach to prohibit                 Option Participants. This is a
                                                1. The Commission establishes Docket                  the misuse of material nonpublic                      competitive filing that is based on a
                                              No. CP2015–137 for consideration of the                 information by Market Makers by                       proposal recently submitted by NYSE
                                              matters raised by the Postal Service’s                  deleting BOX Rule 8090 (Limitation on                 MKT LLC (‘‘NYSE MKT’’) and approved
                                              Notice.                                                                                                       by the Commission.3
                                                                                                      Dealings). The text of the proposed rule
                                                2. Pursuant to 39 U.S.C. 505, Curtis E.               change is available from the principal                Background
                                              Kidd is appointed to serve as an officer                office of the Exchange, at the
                                                                                                      Commission’s Public Reference Room                       The Exchange has two classes of
                                              of the Commission to represent the
                                                                                                      and also on the Exchange’s Internet Web               registered Options Participants.
                                              interests of the general public in this                                                                       Pursuant to BOX Rule 100(a)(4), the
                                              proceeding (Public Representative).                     site at http://boxexchange.com.
                                                                                                                                                            term ‘‘Options Participant’’ or
                                                3. Comments are due no later than                     II. Self-Regulatory Organization’s                    ‘‘Participant’’ means a firm, or
                                              September 21, 2015.                                     Statement of the Purpose of, and                      organization that is registered with the
                                                4. The Secretary shall arrange for                    Statutory Basis for, the Proposed Rule                Exchange pursuant to the Rule 2000
                                              publication of this order in the Federal                Change                                                Series (Participation) for purposes of
                                              Register.                                                                                                     participating in options trading on BOX
                                                                                                        In its filing with the Commission, the              as an ‘‘Order Flow Provider’’ or ‘‘Market
                                               By the Commission.                                     self-regulatory organization included                 Maker’’. Pursuant to Rule 100(a)(30)
                                              Ruth Ann Abrams,                                        statements concerning the purpose of,                 Market Maker means an Options
                                              Acting Secretary.                                       and basis for, the proposed rule change               Participant registered with the Exchange
                                              [FR Doc. 2015–23431 Filed 9–17–15; 8:45 am]             and discussed any comments it received                for the purpose of making markets in
                                              BILLING CODE 7710–FW–P
                                                                                                      on the proposed rule change. The text                 options contracts traded on the
                                                                                                      of these statements may be examined at                Exchange and that is vested with the
                                                                                                      the places specified in Item IV below.                rights and responsibilities specified in
                                                                                                      The self-regulatory organization has                  the Rule 8000 Series. All Market Makers
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                                      prepared summaries, set forth in                      are designated as specialists on the
                                                1 Notice of United States Postal Service of Filing    Sections A, B, and C below, of the most               Exchange for all purposes under the
                                              a Functionally Equivalent Global Expedited              significant aspects of such statements.               Exchange Act or Rules thereunder.
                                              Package Services 3 Negotiated Service Agreement
                                              and Application for Non-Public Treatment of                                                                      3 See Securities Exchange Act Release No. 75432
                                                                                                        1 15 U.S.C. 78s(b)(1).
                                              Materials Filed Under Seal, September 11, 2015                                                                (July 13, 2015), 80 FR 42597 (July 17, 2015) (Order
                                              (Notice).                                                 2 17 CFR 240.19b–4.                                 Approving SR–NYSEMKT–2015–23).



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                                              56504                       Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices

                                                BOX Rule 8040 (Market Maker                           related commodity futures or options on                   The Exchange notes that its proposed
                                              Obligations) specifies the obligations of               commodity futures or any other related                 approach to use a principles-based
                                              Market Makers. The heightened quoting                   commodity derivatives, or any other                    approach to protecting against the
                                              obligations of Market Makers are set                    derivatives based on such currency,                    misuse of material non-public
                                              forth in BOX Rule 8050 (Market Maker                    while in possession of material                        information for all of its registered
                                              Quotations).4 BOX Rule 8090 requires                    nonpublic information concerning                       Options Participants is consistent with
                                              Market Makers to maintain information                   imminent transactions in the above; and                recently filed rule changes for NYSE
                                              barriers that are reasonably designed to                   (3) disclosing to another person any                MKT and approved rule changes for,
                                              prevent the misuse of material, non-                    material nonpublic information                         NYSE Arca Equities, Inc. (‘‘NYSE
                                              public corporate or markets information                 involving a corporation, partnership, or               Arca’’), BATS Exchange, Inc.’s
                                              in the possession of persons on one side                Funds or a trust or similar entities                   (‘‘BATS’’), and New York Stock
                                              of the barrier to persons on the other                  whose shares are publicly traded or                    Exchange LLC (‘‘NYSE’’) rules
                                              side of the barrier.                                    disclosing an imminent transaction in                  governing cash equity market makers on
                                                                                                      an underlying security or related                      those respective exchanges.7 Except for
                                              Proposed Rule Change
                                                                                                      securities or in the underlying non-U.S.               prescribed rules relating to floor-based
                                                The Exchange believes that the                        currency or any related non-U.S.                       designated market makers on the NYSE,
                                              particularized guidelines in BOX Rule                   currency options, futures or options on                who have access to specified non-public
                                              8090 for Market Makers are no longer                    futures on such currency, or in any                    trading information, each of these
                                              necessary and proposes to delete it.                    related commodity, related commodity                   exchanges have moved to a principles-
                                              Rather, the Exchange believes that BOX                  futures or options on commodity futures                based approach to protecting against the
                                              Rule 3090 (Prevention of the Misuse of                  or any other related commodity                         misuse of material non- public
                                              Material Nonpublic Information)                         derivatives, or any other derivatives                  information. In connection with
                                              governing the misuse of material, non-                  based on such currency for the purpose                 approving those rule changes, the
                                              public information provides for an                      of facilitating the possible misuse of                 Commission found that, with adequate
                                              appropriate, principles-based approach                  such material nonpublic information.                   oversight by the exchanges of their
                                              to prevent the market abuses BOX Rule                      Because Options Participants are                    members, eliminating prescriptive
                                              8090 is designed to address.                            already subject to the requirements of                 information barrier requirements should
                                              Specifically, BOX Rule 3090 requires                    BOX Rule 3090, the Exchange does not                   not reduce the effectiveness of exchange
                                              every Options Participant to establish,                 believe that it is necessary to separately             rules requiring its members to establish
                                              maintain, and enforce written policies                                                                         and maintain systems to supervise the
                                                                                                      require specific limitations on Market
                                              and procedures reasonably designed to                                                                          activities of its members, including
                                                                                                      Makers. Deleting BOX Rule 8090 and
                                              prevent the misuse of material, non-                                                                           written procedures reasonably designed
                                                                                                      requirements for specific procedures
                                              public information by such Participant                                                                         to ensure compliance with applicable
                                                                                                      would provide Market Makers with the
                                              or persons associated with such                                                                                federal securities law and regulations,
                                                                                                      flexibility to adapt their policies and
                                              Participant. For purposes of this                                                                              and with the rules of the applicable
                                                                                                      procedures as appropriate to reflect
                                              requirement, the misuse of material,                                                                           exchange.8
                                                                                                      changes to their business model,
                                              non-public information includes, but is                                                                           Comparable to members of cash
                                                                                                      business activities, or the securities
                                              not limited to, the following:                                                                                 equity markets, the Exchange believes
                                                (1) Trading in any securities issued by               market in a manner similar to how
                                                                                                      Options Participants on the Exchange                   that a principles-based rule applicable
                                              a corporation, partnership, or a trust or                                                                      to members of options markets would be
                                              similar entities, or in any related                     currently operate and consistent with
                                                                                                                                                             equally effective in protecting against
                                              securities or related options or other                  BOX Rule 3090.
                                              derivative securities, or in any related                   As noted above, Market Makers are
                                                                                                                                                             new firm application. Moreover, the policies and
                                              non-U.S. currency, non-U.S. currency                    distinguished under Exchange rules                     procedures of Market Makers, including those
                                              options, futures or options on futures on               from other Options Participants only to                relating to information barriers, would be subject to
                                                                                                      the extent that Market Makers have                     review by FINRA, on behalf of the Exchange,
                                              such currency, or any other derivatives                                                                        pursuant to a Regulatory Services Agreement.
                                              based on such currency, or in any                       heightened quiting [sic] obligations.                     7 See Securities Exchange Act Release No. 75432

                                              related commodity, related commodity                    However, none of these heightened                      (July 13, 2015), 80 FR 42597 (July 17, 2015) (Order
                                              futures or options on commodity futures                 obligations provides different or greater              Approving Adopting a Principles-Based Approach
                                              or any other related commodity                          access to nonpublic information than                   to Prohibit the Misuse of Material Nonpublic
                                                                                                      any other Options Participant on the                   Information by Specialists and e-Specialists by
                                              derivatives, while in possession of                                                                            Deleting Rule 927.3NY and Section (f) of Rule
                                              material nonpublic information                          Exchange.5                                             927.5NY). See also Securities Exchange Act Release
                                              concerning that issuer;                                    Accordingly, because Market Makers                  Nos. 60604 (Sept. 2, 2009), 76 FR 46272 (Sept. 8,
                                                (2) trading in an underlying security                 do not have any trading advantages at                  2009) (SR–NYSEArca–2009–78) (Order approving
                                                                                                      the Exchange due to their market role,                 elimination of NYSE Arca rule that required market
                                              or related options or other derivative                                                                         makers to establish and maintain specifically
                                              securities, or in any related non-U.S.                  the Exchange believes that they should                 prescribed information barriers, including
                                              currency, non-U.S. currency options,                    be subject to the same rules regarding                 discussion of NYSE Arca and Nasdaq rules) (‘‘Arca
                                              futures or options on futures on such                   the protection against the misuse of                   Approval Order’’); 61574 (Feb. 23, 2010), 75 FR
                                                                                                      material non-public information, which                 9455 (Mar. 2, 2010) (SR–BATS–2010–003) (Order
                                              currency, or in any related commodity,                                                                         approving amendments to BATS Rule 5.5 to move
                                                                                                      in this case, is existing BOX Rule 3090.6              to a principles-based approach to protecting against
                                                4 BOX Rule 8050(e), Continuous Quotes, On a                                                                  the misuse of material, non-public information, and
                                                                                                        5 See BOX Rules 8040 and 8050.                       noting that the proposed change is consistent with
                                              daily basis, a Market Maker must during regular
                                              market hours make markets and enter into any              6 The Exchange notes that by deleting BOX Rule       the approaches of NYSE Arca and Nasdaq) (‘‘BATS
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                                              resulting transactions consistent with the applicable   8090, the Exchange would no longer require             Approval Order’’); and 72534 (July 3, 2014), 79 FR
                                              quoting requirements specified in these rules, such     specific information barriers for Market Makers or     39440 (July 10, 2014), SR–NYSE–2014–12) (Order
                                              that on a daily basis a Market Maker must post valid    require pre-approval of any information barriers       approving amendments to NYSE Rule 98 governing
                                              quotes at least sixty percent (60%) of the time that    that a Market Maker would erect for purposes of        designated market makers to move to a principles-
                                              the classes are open for trading. These obligations     protecting against the misuse of material non-public   based approach to prohibit the misuse of material
                                              will apply to all of the Market Maker’s appointed       information. However, as is the case today with        non-public information) (‘‘NYSE Approval Order’’).
                                              classes collectively, rather than on a class-by-class   Options Participants, information barriers of new         8 See, e.g., BATS Approval Order, supra note 7 at

                                              basis.                                                  entrants, would be subject to review as part of a      9458.



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                                                                            Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices                                          56505

                                              the misuse of material non-public                         2. Statutory Basis                                    proposal eliminates prescriptive
                                              information. Indeed, BOX Rule 3090 is                        The Exchange believes that the                     requirements relating to the misuse of
                                              currently applicable to Options                           proposal is consistent with the                       material non-public information, Market
                                              Participants which already requires                       requirements of Section 6(b) of the                   Makers would remain subject to existing
                                              policies and procedures reasonably                        Securities Exchange Act of 1934 (the                  Exchange rules requiring them to
                                              designed to protect against the misuse of                 ‘‘Act’’),10 in general, and Section 6(b)(5)           establish and maintain systems to
                                              material nonpublic information, which                     of the Act,11 in particular, in that it is            supervise their activities, and to create,
                                              is similar to the respective NYSE MKT,                    designed to prevent fraudulent and                    implement, and maintain written
                                              NYSE Arca Equities, BATS and NYSE                         manipulative acts and practices, to                   procedures that are reasonably designed
                                              rules governing cash equity market                        promote just and equitable principles of              to comply with applicable securities
                                              makers. The Exchange believes BOX                         trade, to foster cooperation and                      laws and Exchange rules, including the
                                              Rule 3090 provides appropriate                            coordination with persons engaged in
                                              protection against the misuse of material                                                                       prohibition on the misuse of material,
                                                                                                        facilitating transactions in securities, to           nonpublic information. Additionally,
                                              nonpublic information by Options                          remove impediments to and perfect the
                                              Participants and there is no longer a                                                                           the policies and procedures of Market
                                                                                                        mechanism of a free and open market                   Makers, including those relating to
                                              need for prescriptive information barrier                 and a national market system, and, in
                                              requirements in BOX Rule 8090.                                                                                  information barriers, would be subject
                                                                                                        general to protect investors and the
                                                 The Exchange notes that even with                                                                            to review by FINRA, on behalf of the
                                                                                                        public interest.
                                              this proposed rule change, pursuant to                       The Exchange believes that the                     Exchange.13
                                              BOX Rule 3090, an Options Participant                     proposed rule change would remove                        The Exchange notes that the proposed
                                              would still be obligated to ensure that                   impediments to and perfect the                        rule change would still require that
                                              its policies and procedures reflect the                   mechanism of a free and open market by                Market Makers maintain and enforce
                                              current state of its business and                         adopting a principles- based approach                 policies and procedures reasonably
                                              continue to be reasonably designed to                     to permit an Options Participant to                   designed to ensure compliance with
                                              achieve compliance with applicable                        maintain and enforce policies and                     applicable federal securities laws and
                                              federal securities law and regulations,                   procedures to, among other things,
                                              including Section 15(g) of the Act,9 and                                                                        regulations and with Exchange rules.
                                                                                                        prohibit the misuse of material non-                  Even though there would no longer be
                                              with applicable Exchange rules,                           public information and provide
                                              including being reasonably designed to                                                                          pre-approval of Market Maker
                                                                                                        flexibility on how a Market Maker                     information barriers, any Market Maker
                                              protect against the misuse of material,                   structures its operations. The Exchange
                                              non-public information. While                                                                                   written policies and procedures would
                                                                                                        notes that the proposed rule change is
                                              information barriers would not                                                                                  continue to be subject to oversight by
                                                                                                        based on an approved rule of the
                                              specifically be required under the                                                                              the Exchange and therefore the
                                                                                                        Exchange to which Options
                                              proposal, BOX Rule 3090 already                           Participants—BOX Rule 3090—and                        elimination of prescribed restrictions
                                              requires that an Options Participant                      harmonizes the rules governing Options                should not reduce the effectiveness of
                                              consider its business model or business                   Participants. Moreover, Market Makers                 the Exchange rules to protect against the
                                              activities in structuring its policies and                would continue to be subject to federal               misuse of material non-public
                                              procedures, which may dictate that an                     and Exchange requirements for                         information. Rather, Options
                                              information barrier or a functional                       protecting material non- public order                 Participants will be able to utilize a
                                              separation be part of the appropriate set                 information.12 The Exchange believes                  flexible, principles-based approach to
                                              of policies and procedures that would                     that the proposed rule change would                   modify their policies and procedures as
                                              be reasonably designed to achieve                         remove impediments to and perfect the                 appropriate to reflect changes to their
                                              compliance with applicable securities                     mechanism of a free and open market                   business model, business activities, or
                                              law and regulations, and with                             because it would harmonize the                        to the securities market itself. Moreover,
                                              applicable Exchange rules.                                Exchange’s approach to protecting
                                                 The Exchange believes that the                                                                               while specified information barriers
                                                                                                        against the misuse of material nonpublic              may no longer be required, an Options
                                              proposed reliance on the principles-                      information and no longer subject
                                              based BOX Rule 3090 would ensure that                                                                           Participant’s business model or business
                                                                                                        Market Makers to prescriptive                         activities may dictate that an
                                              an Options Participant would be                           requirements. The Exchange does not
                                              required to protect against the misuse of                                                                       information barrier or functional
                                                                                                        believe that the existing prescriptive                separation be part of the appropriate set
                                              any material non-public information. As                   requirements applicable to Options
                                              noted above, BOX Rule 3090 already                                                                              of policies and procedures that would
                                                                                                        Participants are narrowly tailored to
                                              requires that firms refrain from trading                                                                        be reasonably designed to achieve
                                                                                                        their respective roles because neither
                                              while in possession of material non-                      market participant has access to                      compliance with applicable securities
                                              public information concerning                             Exchange trading information in a                     laws and regulations, and with
                                              imminent transactions in the security or                  manner different from any other market                applicable Exchange rules. The
                                              related product. The Exchange believes                    participant on the Exchange.                          Exchange therefore believes that the
                                              that moving to a principles-based                            The Exchange further believes the                  proposed rule change will maintain the
                                              approach rather than prescribing how                      proposal is designed to prevent                       existing protection of investors and the
                                              and when to wall off a Market Maker                       fraudulent and manipulative acts and                  public interest that is currently
                                              from the rest of the firm would provide                   practices and to promote just and                     applicable to Market Makers, while at
                                              Market Makers with flexibility when                       equitable principles of trade because                 the same time removing impediments to
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                                              managing risk across a firm, including                    existing rules make clear to Options                  and perfecting a free and open market
                                              integrating options positions with other                  Participants the type of conduct that is              by moving to a principles-based
                                              positions of the firm or, as applicable,                  prohibited by the Exchange. While the                 approach to protect against the misuse
                                              by the respective independent trading
                                                                                                                                                              of material non-public information.
                                              unit.                                                       10 15 U.S.C. 78f(b).
                                                                                                          11 15 U.S.C. 78f(b)(5).
                                                9 15   U.S.C. 78o(g).                                     12 See 15 U.S.C. 78o(g) and BOX Rule 3090.            13 See   supra, note 6.



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                                              56506                         Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices

                                              B. Self-Regulatory Organization’s                         C. Self-Regulatory Organization’s                     post all comments on the Commission’s
                                              Statement on Burden on Competition                        Statement on Comments on the                          Internet Web site (http://www.sec.gov/
                                                                                                        Proposed Rule Change Received From                    rules/sro.shtml). Copies of the
                                                 The Exchange does not believe that                     Members, Participants, or Others                      submission, all subsequent
                                              the proposed rule change will impose                                                                            amendments, all written statements
                                              any burden on competition not                               The Exchange has neither solicited
                                                                                                        nor received comments on the proposed                 with respect to the proposed rule
                                              necessary or appropriate in furtherance                                                                         change that are filed with the
                                              of the purposes of the Act. In this regard                rule change.
                                                                                                                                                              Commission, and all written
                                              and as indicated above, the Exchange                      III. Date of Effectiveness of the                     communications relating to the
                                              notes that the rule change is being                       Proposed Rule Change and Timing for                   proposed rule change between the
                                              proposed as a competitive response to a                   Commission Action                                     Commission and any person, other than
                                              filing submitted by NYSE MKT that was                                                                           those that may be withheld from the
                                              recently approved by the Commission.14                       The Exchange believes that the
                                                                                                        foregoing proposed rule change may                    public in accordance with the
                                                 To the contrary, the Exchange                          take effect upon filing with the                      provisions of 5 U.S.C. 552, will be
                                              believes that the proposal will enhance                   Commission pursuant to Section                        available for Web site viewing and
                                              competition by allowing Market Makers                     19(b)(3)(A) of the Act and Rule 19b–                  printing in the Commission’s Public
                                              to comply with applicable Exchange                        4(f)(6) thereunder because the foregoing              Reference Room, 100 F Street NE.,
                                              rules in a manner best suited to their                    proposed rule change does not (i)                     Washington, DC 20549, on official
                                              business models, business activities,                     significantly affect the protection of                business days between the hours of
                                              and the securities markets, thus                          investors or the public interest, (ii)                10:00 a.m. and 3:00 p.m. Copies of the
                                              reducing regulatory burdens while still                   impose any significant burden on                      filing will also be available for
                                              ensuring compliance with applicable                       competition, and (iii) become operative               inspection and copying at the principal
                                              securities laws and regulations and                       for 30 days after its filing date, or such            office of the Exchange. All comments
                                              Exchange rules. The Exchange believes                     shorter time as the Commission may                    received will be posted without change;
                                              that the proposal will foster a fair and                  designate.                                            the Commission does not edit personal
                                              orderly marketplace without being                            At any time within 60 days of the                  identifying information from
                                              overly burdensome upon Market                             filing of the proposed rule change, the               submissions. You should submit only
                                              Makers.                                                   Commission summarily may                              information that you wish to make
                                                 Moreover, the Exchange believes that                   temporarily suspend such rule change if               available publicly. All submissions
                                              the proposed rule change would                            it appears to the Commission that such                should refer to File Number SR–BOX–
                                              eliminate a burden on competition for                     action is: (i) Necessary or appropriate in            2015–31 and should be submitted on or
                                              Options Participants which currently                      the public interest; (ii) for the protection          before October 9, 2015.
                                              exists as a result of disparate rule                      of investors; or (iii) otherwise in                     For the Commission, by the Division of
                                              treatment between the options and                         furtherance of the purposes of the Act.               Trading and Markets, pursuant to delegated
                                              equities markets regarding how to                         If the Commission takes such action, the              authority.15
                                              protect against the misuse of material                    Commission shall institute proceedings                Brent J. Fields,
                                              non-public information. For those                         to determine whether the proposed rule                Secretary.
                                              Options Participants that are also                        should be approved or disapproved.                    [FR Doc. 2015–23400 Filed 9–17–15; 8:45 am]
                                              members of equity exchanges, their                                                                              BILLING CODE 8011–01–P
                                              respective equity market maker                            IV. Solicitation of Comments
                                              operations are now subject to a                             Interested persons are invited to
                                              principles-based approach to protecting                   submit written data, views, and                       SECURITIES AND EXCHANGE
                                              against the misuse of material non-                       arguments concerning the foregoing,                   COMMISSION
                                              public information. The Exchange                          including whether the proposed rule
                                              believes it would remove a burden on                      change is consistent with the Act.                    Proposed Collection; Comment
                                              competition to enable Options                             Comments may be submitted by any of                   Request
                                              Participants to similarly apply a                         the following methods:
                                              principles-based approach to protecting                                                                         Upon Written Request Copies Available
                                              against the misuse of material nonpublic                  Electronic Comments                                    From: Securities and Exchange
                                              information in the options space. To                        • Use the Commission’s Internet                      Commission, Office of FOIA Services,
                                              this end, the Exchange notes that BOX                     comment form (http://www.sec.gov/                      100 F Street NE., Washington, DC
                                              Rule 3090 still requires Market Makers                    rules/sro.shtml); or                                   20549–2736
                                              to evaluate its business to assure that its                 • Send an email to rule-comments@                   Extension:
                                              policies and procedures are reasonably                    sec.gov. Please include File Number SR–                 Interactive Data; SEC File No. 270–330,
                                              designed to protect against the misuse of                 BOX–2015–31 on the subject line.                          OMB Control No. 3235–0645
                                              material nonpublic information.                                                                                    Notice is hereby given that, pursuant
                                                                                                        Paper Comments
                                              However, with this proposed rule                                                                                to the Paperwork Reduction Act of 1995
                                              change, an Options Participant that                         • Send paper comments in triplicate                 (44 U.S.C. 3501 et seq.), the Securities
                                              trades equities and options could look at                 to Brent J. Fields, Secretary, Securities             and Exchange Commission
                                              its firm more holistically to structure its               and Exchange Commission, 100 F Street                 (‘‘Commission’’) is soliciting comments
                                              operations in a manner that provides it                   NE., Washington, DC 20549–1090.                       on the collection of information
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                                              with better tools to manage its risks                     All submissions should refer to File                  summarized below. The Commission
                                              across multiple security classes, while                   Number SR–BOX–2015–31. This file                      plans to submit this existing collection
                                              at the same time protecting against the                   number should be included on the                      of information to the Office of
                                              misuse of material non-public                             subject line if email is used. To help the            Management and Budget for extension
                                              information.                                              Commission process and review your                    and approval.
                                                                                                        comments more efficiently, please use
                                                14 See   supra, note 3.                                 only one method. The Commission will                    15 17   CFR 200.30–3(a)(12).



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Document Created: 2015-12-15 09:28:14
Document Modified: 2015-12-15 09:28:14
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 56503 

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