81 FR 25473 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To (i) Amend BOX Rule 7280 (Bulk Cancellation of Trading Interest) To Adopt a Kill Switch and (ii) Amend BOX Rule 7110 (Order Entry) To Modify the Circumstances That Will Prevent a Session Order From Being Cancelled
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 82 (April 28, 2016)
Federal Register Volume 81, Issue 82 (April 28, 2016)
| Page Range | 25473-25475 | |
| FR Document | 2016-09900 |
[Federal Register Volume 81, Number 82 (Thursday, April 28, 2016)] [Notices] [Pages 25473-25475] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-09900] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77692; File No. SR-BOX-2016-16] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To (i) Amend BOX Rule 7280 (Bulk Cancellation of Trading Interest) To Adopt a Kill Switch and (ii) Amend BOX Rule 7110 (Order Entry) To Modify the Circumstances That Will Prevent a Session Order From Being Cancelled April 22, 2016. 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 April 11, 2016, BOX Options Exchange LLC (``BOX'' or the ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to (i) amend BOX Rule 7280 (Bulk Cancellation of Trading Interest) to adopt a Kill Switch and (ii) amend BOX Rule 7110 (Order Entry) to modify the circumstances that will prevent a Session Order from being cancelled. 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 is proposing enhancements to the risk controls on the Exchange. Specifically, the Exchange is proposing to amend BOX Rule 7280 (Bulk Cancellation of Trading Interest) to adopt a Kill Switch and to also amend BOX Rule 7110 (Order Entry) to modify the circumstances that will prevent a Session Order from being cancelled. Kill Switch The Exchange proposes to amend Rule 7280 (Bulk Cancellation of Trading Interest) to add new section (b) to adopt the Kill Switch. The Kill Switch will be an optional tool that enables Participants to initiate a message to the BOX system to remove a Participant's quotes and/or cancel the Participant's orders. When submitting a request to the system to remove/cancel quotes and/or orders, a Participant must provide the Options Participant identification number (``Participant ID''). Additionally, the Participant may, but is not required to, specify a specific underlying security, class, or account type when requesting the system to remove/cancel quotes and/or orders. The system will send an automated message to the Participant when a Kill Switch request has been processed by the system. A Participant may also call the MOC \3\ directly to request initiation of the Kill Switch if the Participant is not able to send the message to the BOX system directly. --------------------------------------------------------------------------- \3\ The term ``MOC'' or ``Market Operations Center'' means the BOX Market Operations Center, which provides market support for Options Participants during the trading day. --------------------------------------------------------------------------- When submitting a message to the system to initiate the Kill Switch, Participants may specify a lock-out instruction. The lock-out instruction prevents the entering of any additional orders and/or quotes from the specific Participant ID until re-entry has been enabled. If a lock-out is requested, all orders and quotes that originate from the Participant ID will be canceled, regardless of any other instructions in the message or any additional messages sent to the system. The Participant ID will remain locked-out until the Participant makes a verbal request to the MOC to re-enable the Participant ID. Session Orders The Exchange currently offers a Session Order designation.\4\ An order with a Session Order designation will remain active in the BOX trading system until one of the following events (``Triggering Event'') occurs: (1) The connection between the Participant and BOX that was used to enter the order is interrupted; (2) there is a disconnection between internal BOX components used to process orders, causing a component to lose its connection to the Participant or the Trading Host \5\ while in possession of the Session Order; (3) a component of the Trading Host experiences a system error in which it is unable to process open orders while in possession of the Session Order. --------------------------------------------------------------------------- \4\ See Rule 7110(e)(1)(iii). \5\ The term ``Trading Host'' means the automated trading system used by BOX for the trading of options contracts. --------------------------------------------------------------------------- Currently, a Session Order will not be cancelled and shall remain active if the order is not allowed to be cancelled pursuant to another Exchange Rule or it is being processed under certain Exchange Rules when the Triggering Event occurs. Specifically, the Session Order will not be cancelled when: (1) The order is being exposed to the BOX market pursuant to Rule 7130(b); (2) the order is a Directed Order to which the [[Page 25474]] Executing Participant (``EP'') has not yet responded pursuant to Rule 8040(d)(2); or (3) the order has been routed to an away exchange pursuant to Rule 15030; provided however, that any remainder of a Session Order returned by the away exchange will be cancelled upon its return to BOX. The Exchange is now proposing to amend the circumstances that will prevent a Session Order from being cancelled. Specifically, the Exchange is now proposing to allow an order with a Session Order designation to be cancelled when the order is being exposed to the BOX market and/or the order is a Directed Order to which the EP has not yet responded.\6\ --------------------------------------------------------------------------- \6\ See Proposed Rule 7110 (e)(1)(iii)(C). --------------------------------------------------------------------------- The Exchange will provide Participants with notice, via Information Circular, about the implementation date of these proposed enhancements to the protections offered by the Exchange. 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''),\7\ in general, and Section 6(b)(5) of the Act,\8\ 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, by enhancing the risk protections available to Participants. The proposal promotes policy goals of the Commission which has encouraged execution venues, exchange and non-exchange alike, to enhance risk protection tools and other mechanisms to decrease risk and increase stability. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The individual firm benefits of enhanced risk protections flow downstream to counterparties both at the Exchange and at other options exchanges, thereby increasing systemic protections as well. Additionally, because the Exchange offers this risk tool to all Participants, the Exchange believes it will encourage liquidity generally and remove impediments to and perfect the mechanism of a free and open market and a national market system, and protect investors and the public interest. This optional risk tool, as noted above, will be offered to all Participants on BOX. The Exchange further represents that its proposal will operate consistently with the firm quote obligations of a broker- dealer pursuant to Rule 602 of Regulation NMS and that the functionality is not mandatory. Specifically, any interest that is executable against a Participant's quotes or orders that are received by the Exchange prior to the time the Kill Switch is processed by the system will automatically execute at the price up to the Participant's size. The Kill Switch message will be accepted by the system in the order of receipt in the queue and will be processed in that order so any interest that is already accepted into the system will be processed prior to the Kill Switch message. Market Makers' obligations to provide continuous two-sided quotes on a daily basis are not diminished by the removal of such quotes and/ or orders by utilizing the Kill Switch. Market Makers will be required to provide continuous two-sided quotes on a daily basis. Market Makers that utilize the Kill Switch will not be relieved of the obligation to provide continuous two-sided quotes on a daily basis, nor will it prohibit the Exchange from taking disciplinary action against a Market Maker for failing to meet the continuous quoting obligations each trading day. With respect to the proposed changes to the Session Order designation, the Exchange believes they are reasonable because they will expand the protections available to Participants transacting on the Exchange. Specifically, the proposed changes will protect investors and the public interest by allowing Participants to cancel their orders when a system issue occurs that infringes on the ability of a Participant to communicate with the Exchange's systems. The Exchange believes the proposed changes to the Session Order designation, specifically the deletion of the two exceptions to the Triggering Events dealing with an order being exposed and an order that is a Directed Order,\9\ is reasonable because they are not considered core exchange functions and the deletion of these exceptions to the Triggering Events will not affect a fair and orderly market and national market system. Further, the Exchange believes it is reasonable to keep the remaining exception to the Triggering Events, specifically when an order has been routed to an away exchange pursuant to Rule 15030, in the rule text because it is out of the Exchange's control. --------------------------------------------------------------------------- \9\ See supra note 6. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule changes will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes the proposal will provide market participants with additional protections. The proposed rule change is meant to protect Participants in the event the Participant is suffering from a systems issue or from the occurrence of unusual or unexpected market activity that would require them to withdraw from the market. Reducing such risk will enable Participants to enter quotes and orders without fear of inadvertent exposure of excessive risk, which in turn will benefit investors through increased liquidity for the execution of their orders. Such increased liquidity benefits investors because they receive better prices and because it lowers volatility in the options market. The proposal does not impose an undue burden on intramarket competition because all Participants may avail themselves of the Kill Switch, which functionality will be optional. Additionally, the proposed protections relating to the Kill Switch are similar to those available on competing exchanges.\10\ For these reasons, the Exchange does not believe this proposal imposes an undue burden on inter-market competition; rather, the proposed rule change will have no impact on competition. --------------------------------------------------------------------------- \10\ See Ch. VI, Sec. 6(d) of the NASDAQ OMX BX, Inc. (``BX'') Rules, Ch. VI, Sec. 6(d) of the NASDAQ OMX (``NOM'') Rules. See also Securities Exchange Act Release Nos. 76116 (October 8, 2015), 80 FR 199 (October 15, 2015) (Order Approving SR-BX-2015-50) and 76123 (October 9, 2015), 80 FR 62591 (October 16, 2015) (Order Approving SR-NASDAQ-2015-096). --------------------------------------------------------------------------- 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 has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\ Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on [[Page 25475]] competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A)(iii). \12\ 17 CFR 240.19b-4(f)(6). \13\ 15 U.S.C. 78s(b)(3)(A). \14\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) under the Act \15\ normally does not become operative for 30 days after the date of filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange states that the proposed rule change is designed to protect Participants in the event a Participant is suffering from a systems issue or from the occurrence of unusual or unexpected market activity.\17\ To the extent that the Exchange's proposal provides member firms with greater control over their quotes and orders, and allows firms to remove quotes and cancel orders in an appropriate manner, then the proposal may encourage firms to provide liquidity on the Exchange and thus contribute to fair and orderly markets in a manner that protects the public interest, protects investors, and is not designed to permit unfair discrimination. The Commission notes that the proposal is similar to the rules of other exchanges \18\ and therefore does not raise any new, unique or substantive issues. Based on the foregoing, the Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest.\19\ The Commission hereby grants the Exchange's request and designates the proposal operative upon filing. --------------------------------------------------------------------------- \15\ 17 CFR 240.19b-4(f)(6). \16\ 17 CFR 240.19b-4(f)(6)(iii). \17\ See supra Section II.A.2. \18\ See supra note 10. \19\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-2016-16 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-2016-16. 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-2016-16, and should be submitted on or before May 19, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\20\ --------------------------------------------------------------------------- \20\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-09900 Filed 4-27-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Notices 25473
Notice, and in Amendment No. 1 to the Items I and II below, which Items have number (‘‘Participant ID’’).
proposed rule change. The Commission been prepared by the self-regulatory Additionally, the Participant may, but is
notes that a commenter has expressed organization. The Commission is not required to, specify a specific
support for the proposal.38 The publishing this notice to solicit underlying security, class, or account
Commission further notes that the Fund comments on the proposed rule from type when requesting the system to
and the Shares must comply with the interested persons. remove/cancel quotes and/or orders.
requirements of Nasdaq Rule 5735, The system will send an automated
I. Self-Regulatory Organization’s
including those set forth in this message to the Participant when a Kill
Statement of the Terms of the Substance
proposed rule change, as modified by Switch request has been processed by
of the Proposed Rule Change
Amendment No. 1 thereto, to be listed the system. A Participant may also call
and traded on the Exchange on an initial The Exchange proposes to (i) amend the MOC 3 directly to request initiation
and continuing basis. BOX Rule 7280 (Bulk Cancellation of of the Kill Switch if the Participant is
For the foregoing reasons, the Trading Interest) to adopt a Kill Switch not able to send the message to the BOX
Commission finds that the proposed and (ii) amend BOX Rule 7110 (Order system directly.
rule change, as modified by Amendment Entry) to modify the circumstances that When submitting a message to the
No. 1 thereto, is consistent with Section will prevent a Session Order from being system to initiate the Kill Switch,
6(b)(5) of the Act 39 and the rules and cancelled. The text of the proposed rule Participants may specify a lock-out
regulations thereunder applicable to a change is available from the principal instruction. The lock-out instruction
national securities exchange. office of the Exchange, at the prevents the entering of any additional
Commission’s Public Reference Room orders and/or quotes from the specific
IV. Conclusion and also on the Exchange’s Internet Web Participant ID until re-entry has been
It is therefore ordered, pursuant to site at http://boxexchange.com. enabled. If a lock-out is requested, all
Section 19(b)(2) of the Act,40 that the II. Self-Regulatory Organization’s orders and quotes that originate from
proposed rule change (SR–NASDAQ– Statement of the Purpose of, and the Participant ID will be canceled,
2016–030), as modified by Amendment Statutory Basis for, the Proposed Rule regardless of any other instructions in
No. 1 thereto, be, and it hereby is, Change the message or any additional messages
approved. sent to the system. The Participant ID
In its filing with the Commission, the will remain locked-out until the
For the Commission, by the Division of self-regulatory organization included
Trading and Markets, pursuant to delegated Participant makes a verbal request to the
authority.41
statements concerning the purpose of, MOC to re-enable the Participant ID.
and basis for, the proposed rule change
Brent J. Fields, Session Orders
and discussed any comments it received
Secretary. on the proposed rule change. The text The Exchange currently offers a
[FR Doc. 2016–09897 Filed 4–27–16; 8:45 am] of these statements may be examined at Session Order designation.4 An order
BILLING CODE 8011–01–P the places specified in Item IV below. with a Session Order designation will
The self-regulatory organization has remain active in the BOX trading system
prepared summaries, set forth in until one of the following events
SECURITIES AND EXCHANGE Sections A, B, and C below, of the most (‘‘Triggering Event’’) occurs: (1) The
COMMISSION significant aspects of such statements. connection between the Participant and
[Release No. 34–77692; File No. SR–BOX– A. Self-Regulatory Organization’s BOX that was used to enter the order is
2016–16] interrupted; (2) there is a disconnection
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule between internal BOX components used
Self-Regulatory Organizations; BOX to process orders, causing a component
Options Exchange LLC; Notice of Change
to lose its connection to the Participant
Filing and Immediate Effectiveness of 1. Purpose or the Trading Host 5 while in
a Proposed Rule Change To (i) Amend The Exchange is proposing possession of the Session Order; (3) a
BOX Rule 7280 (Bulk Cancellation of enhancements to the risk controls on the component of the Trading Host
Trading Interest) To Adopt a Kill Exchange. Specifically, the Exchange is experiences a system error in which it
Switch and (ii) Amend BOX Rule 7110 proposing to amend BOX Rule 7280 is unable to process open orders while
(Order Entry) To Modify the (Bulk Cancellation of Trading Interest) in possession of the Session Order.
Circumstances That Will Prevent a to adopt a Kill Switch and to also Currently, a Session Order will not be
Session Order From Being Cancelled amend BOX Rule 7110 (Order Entry) to cancelled and shall remain active if the
April 22, 2016. modify the circumstances that will order is not allowed to be cancelled
Pursuant to Section 19(b)(1) of the prevent a Session Order from being pursuant to another Exchange Rule or it
Securities Exchange Act of 1934 cancelled. is being processed under certain
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange Rules when the Triggering
Kill Switch
notice is hereby given that on April 11, Event occurs. Specifically, the Session
The Exchange proposes to amend Order will not be cancelled when: (1)
2016, BOX Options Exchange LLC
Rule 7280 (Bulk Cancellation of Trading The order is being exposed to the BOX
(‘‘BOX’’ or the ‘‘Exchange’’) filed with
Interest) to add new section (b) to adopt market pursuant to Rule 7130(b); (2) the
the Securities and Exchange
the Kill Switch. The Kill Switch will be order is a Directed Order to which the
Commission (‘‘Commission’’) the an optional tool that enables
mstockstill on DSK3G9T082PROD with NOTICES
proposed rule change as described in Participants to initiate a message to the 3 The term ‘‘MOC’’ or ‘‘Market Operations Center’’
38 See
BOX system to remove a Participant’s means the BOX Market Operations Center, which
Anonymous Letter, supra note 4. provides market support for Options Participants
39 15 U.S.C. 78f(b)(5).
quotes and/or cancel the Participant’s
during the trading day.
40 15 U.S.C. 78s(b)(2). orders. When submitting a request to the 4 See Rule 7110(e)(1)(iii).
41 17 CFR 200.30–3(a)(12). system to remove/cancel quotes and/or 5 The term ‘‘Trading Host’’ means the automated
1 15 U.S.C. 78s(b)(1). orders, a Participant must provide the trading system used by BOX for the trading of
2 17 CFR 240.19b–4. Options Participant identification options contracts.
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![Federal Register / Vol. 81, No. 82 / Thursday, April 28, 2016 / Notices 25475
competition; and (iii) become operative At any time within 60 days of the submissions. You should submit only
for 30 days from the date on which it filing of the proposed rule change, the information that you wish to make
was filed, or such shorter time as the Commission summarily may available publicly. All submissions
Commission may designate, if temporarily suspend such rule change if should refer to File Number SR–BOX–
consistent with the protection of it appears to the Commission that such 2016–16, and should be submitted on or
investors and the public interest, the action is necessary or appropriate in the before May 19, 2016.
proposed rule change has become public interest, for the protection of For the Commission, by the Division of
effective pursuant to Section 19(b)(3)(A) investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated
of the Act 13 and Rule 19b–4(f)(6) the purposes of the Act. If the authority.20
thereunder.14 Commission takes such action, the Brent J. Fields,
A proposed rule change filed under Commission shall institute proceedings Secretary.
Rule 19b–4(f)(6) under the Act 15 to determine whether the proposed rule [FR Doc. 2016–09900 Filed 4–27–16; 8:45 am]
normally does not become operative for should be approved or disapproved.
BILLING CODE 8011–01–P
30 days after the date of filing. However, IV. Solicitation of Comments
Rule 19b–4(f)(6)(iii) 16 permits the
Commission to designate a shorter time Interested persons are invited to
SECURITIES AND EXCHANGE
if such action is consistent with the submit written data, views, and
COMMISSION
protection of investors and the public arguments concerning the foregoing,
including whether the proposed rule [Release No. 34–77699; File No. SBSDR–
interest. The Exchange has asked the 2016–01]
change is consistent with the Act.
Commission to waive the 30-day
Comments may be submitted by any of
operative delay so that the proposal may Security-Based Swap Data
the following methods:
become operative immediately upon Repositories; ICE Trade Vault, LLC;
filing. The Exchange states that the Electronic Comments Notice of Filing of Application for
proposed rule change is designed to • Use the Commission’s Internet Registration as a Security-Based Swap
protect Participants in the event a comment form (http://www.sec.gov/ Data Repository
Participant is suffering from a systems rules/sro.shtml); or April 22, 2016.
issue or from the occurrence of unusual • Send an email to rule-comments@
or unexpected market activity.17 To the sec.gov. Please include File Number SR– I. Introduction
extent that the Exchange’s proposal BOX–2016–16 on the subject line. On March 29, 2016, and as amended
provides member firms with greater
Paper Comments on April 18, 2016, ICE Trade Vault, LLC
control over their quotes and orders,
(‘‘ICE Trade Vault’’) filed with the
and allows firms to remove quotes and • Send paper comments in triplicate Securities and Exchange Commission
cancel orders in an appropriate manner, to Secretary, Securities and Exchange (‘‘Commission’’) a Form SDR seeking
then the proposal may encourage firms Commission, 100 F Street NE., registration as a security-based swap
to provide liquidity on the Exchange Washington, DC 20549–1090. data repository (‘‘SDR’’) under Section
and thus contribute to fair and orderly All submissions should refer to File 13(n) of the Securities Exchange Act of
markets in a manner that protects the Number SR–BOX–2016–16. This file 1934 (‘‘Exchange Act’’) 1 and the
public interest, protects investors, and is number should be included on the Commission’s rules promulgated
not designed to permit unfair subject line if email is used. To help the thereunder.2 ICE Trade Vault proposes
discrimination. The Commission notes Commission process and review your to operate as a registered SDR for
that the proposal is similar to the rules comments more efficiently, please use security-based swap (‘‘SBS’’)
of other exchanges 18 and therefore does only one method. The Commission will transactions in the credit derivatives
not raise any new, unique or substantive post all comments on the Commission’s asset class. The Commission is
issues. Based on the foregoing, the Internet Web site (http://www.sec.gov/ publishing this notice to solicit
Commission believes that waiving the rules/sro.shtml). Copies of the comments from interested persons
30-day operative delay is consistent submission, all subsequent regarding ICE Trade Vault’s Form SDR,3
with the protection of investors and the amendments, all written statements and the Commission will consider any
public interest.19 The Commission with respect to the proposed rule comments it receives in making its
hereby grants the Exchange’s request change that are filed with the
and designates the proposal operative Commission, and all written 20 17 CFR 200.30–3(a)(12).
upon filing. communications relating to the 1 15 U.S.C. 78m(n)(3).
proposed rule change between the 2 17 CFR 240.13n–1 through 240.13n–12.
3 ICE Trade Vault filed its Form SDR, including
13 15 U.S.C. 78s(b)(3)(A). Commission and any person, other than
the exhibits thereto, electronically with the
14 In addition, Rule 19b–4(f)(6)(iii) requires the those that may be withheld from the Commission. The descriptions set forth in this
Exchange to give the Commission written notice of public in accordance with the
the Exchange’s intent to file the proposed rule notice regarding the structure and operations of ICE
change, along with a brief description and text of provisions of 5 U.S.C. 552, will be Trade Vault have been derived, excerpted, and/or
the proposed rule change, at least five business days available for Web site viewing and summarized from information in ICE Trade Vault’s
Form SDR application, and principally from ICE
prior to the date of filing of the proposed rule printing in the Commission’s Public Trade Vault’s Guidebook (Exhibit GG.2), which
change, or such shorter time as designated by the Reference Room, 100 F Street NE.,
Commission. The Exchange has satisfied this outlines the applicant’s policies and procedures
requirement. Washington, DC 20549 on official designed to address its statutory and regulatory
business days between the hours of obligations as an SDR registered with the
mstockstill on DSK3G9T082PROD with NOTICES
15 17 CFR 240.19b–4(f)(6).
Commission. ICE Trade Vault’s Form SDR
16 17 CFR 240.19b–4(f)(6)(iii). 10:00 a.m. and 3:00 p.m. Copies of such application and non-confidential exhibits thereto
17 See supra Section II.A.2. filing also will be available for are available in EDGAR at http://www.sec.gov/cgi-
18 See supra note 10.
inspection and copying at the principal bin/browse-edgar?CIK=0001658496&owner=
19 For purposes only of waiving the 30-day exclude&action=getcompany&Find=Search. In
office of the Exchange. All comments
operative delay, the Commission has also addition, the public may access copies of these
considered the proposed rule’s impact on
received will be posted without change; materials on the Commission’s Web site at: http://
efficiency, competition, and capital formation. See the Commission does not edit personal www.sec.gov/rules/other/2016/ice-trade-vault-form-
15 U.S.C. 78c(f). identifying information from sdr-htm.
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Document Created: 2016-04-28 01:05:39
Document Modified: 2016-04-28 01:05:39
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| FR Citation | 81 FR 25473 |
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