81 FR 25455 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (“BOX”) Options Facility
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 82 (April 28, 2016)
Federal Register Volume 81, Issue 82 (April 28, 2016)
| Page Range | 25455-25456 | |
| FR Document | 2016-09902 |
[Federal Register Volume 81, Number 82 (Thursday, April 28, 2016)] [Notices] [Pages 25455-25456] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-09902] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77695; File No. SR-BOX-2016-20] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (``BOX'') Options Facility April 22, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on April 21, 2016, BOX Options Exchange LLC (the ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is filing with the Securities and Exchange Commission (``Commission'') a proposed rule change to amend the BOX Volume Rebate (``BVR'') in Section I.B.2 of the Fee Schedule on the BOX Market LLC (``BOX'') options facility. 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 Exchange 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 Exchange 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 the Fee Schedule for trading on BOX. Specifically, the Exchange proposes to amend the BOX Volume Rebate (``BVR'') in Section I.B.2 of the Fee Schedule. Under the current BVR, the Exchange offers a tiered per contract rebate for all PIP Orders and COPIP Orders of 100 contracts and under that do not trade solely with their contra order. These PIP and COPIP executions are awarded a per contract rebate calculated on a monthly basis by totaling the Participant's PIP and COPIP volume submitted to BOX, relative to the total national Customer volume in multiply-listed options classes. The current per contract rebate for Participants in PIP and COPIP Transactions under the BVR is: ------------------------------------------------------------------------ Percentage thresholds Per contract rebate (all of national customer account types) Tier volume in multiply- ------------------------------- listed options classes (monthly) PIP COPIP ------------------------------------------------------------------------ 1................ 0.000% to 0.159%..... ($0.00) ($0.00) 2................ 0.160 to 0.339....... (0.04) (0.02) 3................ 0.340 to 0.99........ (0.11) (0.04) 4................ 1.00 and Above....... (0.14) (0.06) ------------------------------------------------------------------------ [[Page 25456]] The Exchange proposes to introduce an additional rebate in the BVR. Specifically, PIP Orders and COPIP Orders of 100 and under contracts that trade solely with their contra order will receive a $0.05 per contract rebate, regardless of tier. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act, in general, and Section 6(b)(4) and 6(b)(5) of the Act,\5\ in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among BOX Participants and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes the proposed amendment to the BVR is reasonable, equitable and non-discriminatory. The BVR was adopted to attract Public Customer order flow to the Exchange by offering these Participants incentives to submit their PIP and COPIP Orders to the Exchange. The Exchange believes it is reasonable and appropriate to adjust the BVR to provide additional incentives for Public Customers, which will result in greater liquidity and ultimately benefit all Participants trading on the Exchange. The Exchange believes it is reasonable, equitable and non- discriminatory to introduce a flat $0.05 rebate in the BVR for PIP Orders and COPIP Orders of 100 and under contracts that trade solely with their contra order. The Exchange recently amended the BVR to restrict the tiered per contract rebates in the BVR to only those PIP and COPIP Orders of 100 and under contracts that do not trade solely with their contra order.\6\ The Exchange now believes it is reasonable to instead give those orders a flat $0.05 rebate, regardless of tier. The BVR is intended to incentivize Participants to direct Customer order flow to the Exchange, and while the Exchange believes that the potentially higher BVR rebate tiers are not necessary for internalized PIP Orders that only trade against their contra order, a flat $0.05 rebate is the appropriate incentive for these orders. The Exchange also believes that a flat $0.05 rebate for internalized COPIP Orders that only trade against their contra order is a reasonable incentive. --------------------------------------------------------------------------- \6\ See SR-BOX-2106-17 [sic]. --------------------------------------------------------------------------- Further, the Exchange believes the proposed rebate is equitable and not unfairly discriminatory because Participants are eligible to receive a rebate provided they meet the order type requirements. 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. The Exchange believes the proposed fee change is reasonably designed to enhance competition in BOX transactions, particularly auction transactions. The proposed rule change amends the BVR to provide a flat rebate for PIP or COPIP Order [sic] that trade solely with their contra order. The Exchange does not believe that the proposed change burdens competition and will instead help promote competition by providing additional incentives for market participants to submit customer order flow to BOX and thus, create a greater opportunity for retail customers to receive additional price improvement. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Exchange Act \7\ and Rule 19b-4(f)(2) thereunder,\8\ because it establishes or changes a due, or fee. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A)(ii). \8\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend the rule change if it appears to the Commission that the action is necessary or appropriate in the public interest, for the protection of investors, or would otherwise further 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 CommentsUse 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-2016-20 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BOX-2016-20. 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 such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BOX-2016-20, and should be submitted on or before May 19, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-09902 Filed 4-27-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Notices 25455
Foundation (‘‘FAF’’), satisfied the It is ordered, pursuant to Section 109 Schedule on the BOX Market LLC
criteria for an accounting standard- of the Act, that the FASB may act in (‘‘BOX’’) options facility. The text of the
setting body under the Act, and accordance with this determination of proposed rule change is available from
recognizing the FASB’s financial the Commission. the principal office of the Exchange, at
accounting and reporting standards as By the Commission. the Commission’s Public Reference
‘‘generally accepted’’ under Section 108 Brent J. Fields, Room and also on the Exchange’s
of the Act.1 As a consequence of that Secretary.
Internet Web site at http://
recognition, the Commission undertook boxexchange.com.
[FR Doc. 2016–09930 Filed 4–27–16; 8:45 am]
a review of the FASB’s accounting
BILLING CODE 8011–01–P II. Self-Regulatory Organization’s
support fee for calendar year 2016.2 In
Statement of the Purpose of, and
connection with its review, the
Statutory Basis for, the Proposed Rule
Commission also reviewed the budget SECURITIES AND EXCHANGE Change
for the FAF and the FASB for calendar COMMISSION
year 2016. In its filing with the Commission, the
Section 109 of the Act also provides [Release No. 34–77695; File No. SR–BOX– Exchange included statements
2016–20] concerning the purpose of and basis for
that the standard setting body can have
additional sources of revenue for its the proposed rule change and discussed
Self-Regulatory Organizations; BOX
activities, such as earnings from sales of any comments it received on the
Options Exchange LLC; Notice of
publications, provided that each proposed rule change. The text of these
Filing and Immediate Effectiveness of
additional source of revenue shall not statements may be examined at the
a Proposed Rule Change To Amend
jeopardize, in the judgment of the places specified in Item IV below. The
the Fee Schedule on the BOX Market
Commission, the actual or perceived Exchange has prepared summaries, set
LLC (‘‘BOX’’) Options Facility
independence of the standard setter. In forth in Sections A, B, and C below, of
this regard, the Commission also April 22, 2016. the most significant aspects of such
considered the interrelation of the Pursuant to Section 19(b)(1) of the statements.
operating budgets of the FAF, the FASB, Securities Exchange Act of 1934 (the A. Self-Regulatory Organization’s
and the Governmental Accounting ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Statement of the Purpose of, and
Standards Board (‘‘GASB’’), the FASB’s notice is hereby given that on April 21,
Statutory Basis for, the Proposed Rule
sister organization, which sets 2016, BOX Options Exchange LLC (the
Change
accounting standards used by state and ‘‘Exchange’’) filed with the Securities
local government entities. The and Exchange Commission 1. Purpose
Commission has been advised by the (‘‘Commission’’) the proposed rule
The Exchange proposes to amend the
FAF that neither the FAF, the FASB, nor change as described in Items I, II, and
Fee Schedule for trading on BOX.
the GASB accept contributions from the III below, which Items have been
Specifically, the Exchange proposes to
accounting profession. prepared by the Exchange. The
amend the BOX Volume Rebate (‘‘BVR’’)
Exchange filed the proposed rule change
The Commission understands that the in Section I.B.2 of the Fee Schedule.
pursuant to Section 19(b)(3)(A)(ii) of the
Office of Management and Budget Under the current BVR, the Exchange
Act,3 and Rule 19b–4(f)(2) thereunder,4
(‘‘OMB’’) has determined the FASB’s offers a tiered per contract rebate for all
which renders the proposal effective
spending of the 2016 accounting PIP Orders and COPIP Orders of 100
upon filing with the Commission. The
support fee is sequestrable under the contracts and under that do not trade
Commission is publishing this notice to
Budget Control Act of 2011.3 So long as solely with their contra order. These PIP
solicit comments on the proposed rule
sequestration is applicable, we and COPIP executions are awarded a per
change from interested persons.
anticipate that the FAF will work with contract rebate calculated on a monthly
the Commission and Commission staff I. Self-Regulatory Organization’s basis by totaling the Participant’s PIP
as appropriate regarding its Statement of the Terms of the Substance and COPIP volume submitted to BOX,
implementation of sequestration. of the Proposed Rule Change relative to the total national Customer
After its review, the Commission The Exchange is filing with the volume in multiply-listed options
determined that the 2016 annual Securities and Exchange Commission classes.
accounting support fee for the FASB is (‘‘Commission’’) a proposed rule change The current per contract rebate for
consistent with Section 109 of the Act. to amend the BOX Volume Rebate Participants in PIP and COPIP
Accordingly, (‘‘BVR’’) in Section I.B.2 of the Fee Transactions under the BVR is:
Per contract rebate
Percentage thresholds of national customer volume in multiply-listed options classes (all account types)
Tier (monthly)
PIP COPIP
1 .......... 0.000% to 0.159% .................................................................................................................................. ($0.00) ($0.00)
2 .......... 0.160 to 0.339 ........................................................................................................................................ (0.04) (0.02)
3 .......... 0.340 to 0.99 .......................................................................................................................................... (0.11) (0.04)
4 .......... 1.00 and Above ...................................................................................................................................... (0.14) (0.06)
mstockstill on DSK3G9T082PROD with NOTICES
1 Financial
Reporting Release No. 70. 3 See ‘‘OMB Report Pursuant to the Sequestration 1 15 U.S.C. 78s(b)(1).
2 The
FAF’s Board of Trustees approved the Transparency Act of 2012’’ (Pub. L. 112–155), page 2 17 CFR 240.19b–4.
FASB’s budget on November 17, 2015. The FAF 222 of 224 at: http://www.whitehouse.gov/sites/ 3 15 U.S.C. 78s(b)(3)(A)(ii).
submitted the approved budget to the Commission default/files/omb/assets/legislative_reports/ 4 17 CFR 240.19b–4(f)(2).
on December 4, 2015. stareport.pdf.
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![25456 Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Notices
The Exchange proposes to introduce rebate provided they meet the order Electronic Comments
an additional rebate in the BVR. type requirements.
Specifically, PIP Orders and COPIP • Use the Commission’s Internet
B. Self-Regulatory Organization’s comment form (http://www.sec.gov/
Orders of 100 and under contracts that
Statement on Burden on Competition rules/sro.shtml); or
trade solely with their contra order will
receive a $0.05 per contract rebate, The Exchange does not believe that • Send an email to rule-comments@
regardless of tier. the proposed rule change will impose sec.gov. Please include File Number SR–
any burden on competition not BOX–2016–20 on the subject line.
2. Statutory Basis
necessary or appropriate in furtherance
The Exchange believes that the of the purposes of the Act. The Paper Comments
proposal is consistent with the Exchange believes the proposed fee
• Send paper comments in triplicate
requirements of Section 6(b) of the Act, change is reasonably designed to
in general, and Section 6(b)(4) and to Secretary, Securities and Exchange
enhance competition in BOX
6(b)(5) of the Act,5 in particular, in that transactions, particularly auction Commission, 100 F Street NE.,
it provides for the equitable allocation transactions. Washington, DC 20549–1090.
of reasonable dues, fees, and other The proposed rule change amends the All submissions should refer to File
charges among BOX Participants and BVR to provide a flat rebate for PIP or Number SR–BOX–2016–20. This file
other persons using its facilities and COPIP Order [sic] that trade solely with number should be included on the
does not unfairly discriminate between their contra order. The Exchange does subject line if email is used. To help the
customers, issuers, brokers or dealers. not believe that the proposed change Commission process and review your
The Exchange believes the proposed burdens competition and will instead comments more efficiently, please use
amendment to the BVR is reasonable, help promote competition by providing only one method. The Commission will
equitable and non-discriminatory. The additional incentives for market post all comments on the Commission’s
BVR was adopted to attract Public participants to submit customer order Internet Web site (http://www.sec.gov/
Customer order flow to the Exchange by flow to BOX and thus, create a greater rules/sro.shtml). Copies of the
offering these Participants incentives to opportunity for retail customers to submission, all subsequent
submit their PIP and COPIP Orders to receive additional price improvement.
amendments, all written statements
the Exchange. The Exchange believes it
C. Self-Regulatory Organization’s with respect to the proposed rule
is reasonable and appropriate to adjust
Statement on Comments on the change that are filed with the
the BVR to provide additional
Proposed Rule Change Received From Commission, and all written
incentives for Public Customers, which
Members, Participants, or Others communications relating to the
will result in greater liquidity and
ultimately benefit all Participants No written comments were either proposed rule change between the
trading on the Exchange. solicited or received. Commission and any person, other than
The Exchange believes it is those that may be withheld from the
III. Date of Effectiveness of the public in accordance with the
reasonable, equitable and non-
Proposed Rule Change and Timing for provisions of 5 U.S.C. 552, will be
discriminatory to introduce a flat $0.05
Commission Action available for Web site viewing and
rebate in the BVR for PIP Orders and
COPIP Orders of 100 and under The foregoing rule change has become printing in the Commission’s Public
contracts that trade solely with their effective pursuant to Section Reference Room, 100 F Street NE.,
contra order. The Exchange recently 19(b)(3)(A)(ii) of the Exchange Act 7 and Washington, DC 20549 on official
amended the BVR to restrict the tiered Rule 19b–4(f)(2) thereunder,8 because it business days between the hours of
per contract rebates in the BVR to only establishes or changes a due, or fee. 10:00 a.m. and 3:00 p.m. Copies of such
those PIP and COPIP Orders of 100 and At any time within 60 days of the filing also will be available for
under contracts that do not trade solely filing of the proposed rule change, the inspection and copying at the principal
with their contra order.6 The Exchange Commission summarily may office of the Exchange. All comments
now believes it is reasonable to instead temporarily suspend the rule change if received will be posted without change;
give those orders a flat $0.05 rebate, it appears to the Commission that the the Commission does not edit personal
regardless of tier. The BVR is intended action is necessary or appropriate in the identifying information from
to incentivize Participants to direct public interest, for the protection of submissions. You should submit only
Customer order flow to the Exchange, investors, or would otherwise further information that you wish to make
and while the Exchange believes that the purposes of the Act. If the available publicly. All submissions
the potentially higher BVR rebate tiers Commission takes such action, the should refer to File Number SR–BOX–
are not necessary for internalized PIP Commission shall institute proceedings 2016–20, and should be submitted on or
Orders that only trade against their to determine whether the proposed rule
before May 19, 2016.
contra order, a flat $0.05 rebate is the should be approved or disapproved.
appropriate incentive for these orders. For the Commission, by the Division of
The Exchange also believes that a flat IV. Solicitation of Comments Trading and Markets, pursuant to delegated
$0.05 rebate for internalized COPIP Interested persons are invited to authority.9
Orders that only trade against their submit written data, views, and Brent J. Fields,
contra order is a reasonable incentive. arguments concerning the foregoing,
mstockstill on DSK3G9T082PROD with NOTICES
Secretary.
Further, the Exchange believes the including whether the proposed rule [FR Doc. 2016–09902 Filed 4–27–16; 8:45 am]
proposed rebate is equitable and not change is consistent with the Act. BILLING CODE 8011–01–P
unfairly discriminatory because Comments may be submitted by any of
Participants are eligible to receive a the following methods:
5 15 U.S.C. 78f(b)(4) and (5). 7 15 U.S.C. 78s(b)(3)(A)(ii).
6 See SR–BOX–2106–17 [sic]. 8 17 CFR 240.19b–4(f)(2). 9 17 CFR 200.30–3(a)(12).
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Document Created: 2016-04-28 01:05:32
Document Modified: 2016-04-28 01:05:32
| 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 | 81 FR 25455 |
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