81 FR 33568 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rule 12140 (Imposition of Fines for Minor Rule Violations) To Amend the Sanctions for Quotation Parameters and Permit the Aggregation of Violations for the Purpose of Determining What Is an Occurrence

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 102 (May 26, 2016)

Page Range		33568-33570
FR Document		2016-12385

Federal Register, Volume 81 Issue 102 (Thursday, May 26, 2016)

[Federal Register Volume 81, Number 102 (Thursday, May 26, 2016)]
[Notices]
[Pages 33568-33570]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-12385]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77877; File No. SR-BOX-2016-22]

Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend BOX Rule 12140 (Imposition of Fines for Minor Rule Violations) To
Amend the Sanctions for Quotation Parameters and Permit the Aggregation
of Violations for the Purpose of Determining What Is an Occurrence

May 20, 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 May 11, 2016, 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 the
Substance of the Proposed Rule Change

The Exchange proposes to amend BOX Rule 12140 (Imposition of Fines
for Minor Rule Violations) to amend the sanctions for Quotation
Parameters and permit the aggregation of violations for the purpose of
determining what is an occurrence. The text of the proposed rule change
is available from the principal office of the Exchange, at the
Commission's Public Reference Room and also on the Exchange's Internet
Web site at http://boxexchange.com.

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

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

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

1. Purpose
The Exchange proposes to amend BOX Rule 12140 (Imposition of Fines
for Minor Rule Violations) to amend the sanctions for Quotation
Parameters (Rule 12140(d)(5)) and permit the aggregation of violations
for the purpose of determining what is an occurrence.
The purpose of the proposed rule change is to amend the sanctions
that relate to Rule 8040(a)(7) regarding spread parameters for Market
Maker quotations under the Exchange's Minor Rule Violation Plan or
(``MRVP''). BOX Rule 8040(a)(7) \3\ governs quotation parameters which
establish the maximum permissible width between the bid and offer in a
particular series.\4\ The Exchange believes the proposed rule changes
[sic] will add clarity as to what is considered a violation with
respect to these quotation parameters under the MRVP.
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\3\ The Exchange's MRVP consists of preset fines, pursuant to
Rule 19d-1(c) under the Act 17 CFR 240.19d-1(c).
\4\ See Rule 8040(a)(7). The Exchange sets the maximum width at
no more than $5 between the bid and offer.
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First, the Exchange proposes to amend the sanctions applicable to
violations of Rule 8040(a)(7) pursuant to the Exchange's MRVP which are
laid out in BOX Rule 12140(d)(5). The sanctions would now consist of
Letters of Caution respecting the first three occurrences and three
fines thereafter ($250, $500 and $1,000), before the seventh occurrence
would result in referral to the Hearing Committee for disciplinary
action. In addition, the fine schedule would be administered on a one
year running calendar basis, such that violations within one year of
the last occurrence would count as the next ``occurrence''. The
Exchange then proposes to add language that will allow BOX to aggregate
individual quotation violations and treat such violations as a single
offense.
The Exchange believes that these changes are appropriate because
quoting on the Exchange is entirely electronic. Specifically, firms
rely on their quote

[[Page 33569]]

technology and computer models to establish an option's price and
generate the quote electronically to the Exchange. The Exchange
believes when there is an electronic quoting error, it may affect every
series the Participant is quoting on in that particular technology,
generating potentially hundreds or thousands of instances of quote
spread parameter violations within a short amount of time. Rather than
fine the Participant for or submit each event to Formal Disciplinary
Action for an isolated technological error, the proposed changes would
allow the Exchange to treat an electronic quoting error as single
occurrence by aggregating the violations.\5\ The Exchange notes that
due to the nature of quotation parameter violations, aggregation is a
common practice in the options industry.\6\ Under the proposed rule
change a Market Maker on BOX would in most instances receive a Letter
of Caution before being subject to a sanction. The Exchange believes
this is appropriate because the relevant Letters of Caution or monetary
fines should serve as a deterrent against future violations, while
recognizing that a single programming error can have widespread effect.
Further, the Exchange believes that sanctions on quotation parameter
violations should not be considered [sic] excessively punitive; as this
could encourage a Market Maker [sic] only meet its minimum quoting
requirements, which would remove liquidity from the exchange.
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\5\ The Exchange notes that there is very little advantage to a
Market Maker quoting wide, when this happens they are no longer
considered part of the marketplace and any incoming orders will go
elsewhere.
\6\ The Minor Rule Violation Plans at most options exchanges
allow for aggregation of quotation parameter violations and EDGX
recently filed to add this language as well. See Securities Exchange
Act Release No. 77181 (February 19, 2016), 81 FR 9566 (February 25,
2016) (Notice of Filing and Immediate Effectiveness SR-EDGX-2016-
03).
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As with other violations covered under the Exchange's MRVP, the
Exchange may elect to forgo the MRVP and enforce any egregious
violation of its rules under the Exchange's formal disciplinary
process.
The Exchange notes that the proposed rule change is substantially
similar to the rules of the NASDAQ OMX PHLX, Inc. (``Phlx'') and the
sanctions that relate to the spread parameters for Market Maker
quotations on PHLX.\7\
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\7\ See PHLX Rule 1014(c)(i)(A) [sic] and Securities Exchange
Act Release No. 62147 (May 21, 2010), 75 FR 29792 (Order Approving
SR-Phlx-2010-43).
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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''),\8\ in general, and Section 6(b)(5) of the Act,\9\ 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. In particular, the Exchange believes that its proposal
is consistent with Sections 6(b)(1) and (6) of the Act,\10\ which
require that the rules of an exchange enforce compliance with, and
provide appropriate discipline for, violations of Commission and
Exchange rules. In addition, because existing BOX Rule 12140 provides
procedural rights to a person fined under the Exchange's MRVP to
contest the fine and permits a hearing on the matter, the Exchange
believes that the proposal is consistent with Sections 6(b)(7) and
6(d)(1) of the Act,\11\ by providing a fair procedure for the
disciplining of Participants and persons associated with Participants.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ 15 U.S.C. 78f(b)(1) and (6).
\11\ 15 U.S.C. 78f(b)(7) and (d)(1).
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In requesting the proposed changes to the sanctions under BOX Rule
12140(d)(5), the Exchange in no way minimizes the importance of
compliance with Exchange Rules and all other rules subject to the
imposition of fines under the MRVP. However, the MRVP provides a
reasonable means of addressing rule violations that do not rise to the
level of large sanctions and requiring formal disciplinary proceedings,
while providing greater flexibility in handling certain violations. The
Exchange will continue to conduct surveillance with due diligence and
make a determination based on its findings, on a case-by-case basis,
whether a fine of more or less than the recommended amount is
appropriate for a violation under the MRVP or whether a violation
requires a formal disciplinary action.

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 is
similar to the rules of PHLX.\12\ The Exchange believes that the
proposals will provide Participants protection from minor rule
violation sanctions that are a result of electronic quoting errors. The
proposed rule change is meant to take into account the possibility of
programming or technology errors that result in a Participant violating
the quote parameters set out in the Rule 8040(a)(7). The proposed rule
change will enable Participants to enter quotes without fear of
hundreds or thousands of minor rule violations, which in turn will
benefit investors through increased liquidity on the exchange. While
the Exchange believes that the proposed Letters of Caution and
subsequent fines should serve as a deterrent against future violations,
the Exchange may determine whether a violation is not minor in nature
and thereafter refer it to the Hearing Committee for disciplinary
action.\13\
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\12\ See supra, note 7.
\13\ See Rule 12140(a).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

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

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

Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \14\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of filing.\16\
Rule 19b-4(f)(6)(iii), however, permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest.\17\ The Exchange has asked the
Commission to waive the 30-day operative delay so that the proposal may
become operative upon filing. The Exchange has stated that the proposed
rule change is

[[Page 33570]]

substantially similar to the rules of Phlx, in particular, the
sanctions for violations of the spread parameters for Market Maker
quotations. Waiver of the 30-day operative delay will allow BOX to
aggregate violations of its spread parameter rule under its MRVP
without delay. Furthermore, the Commission notes that the Exchange's
MRVP and quote spread parameter rules are already in place; waiver will
clarify the Exchange's expectations of its Participants. For these
reasons, the Commission believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest. Therefore, the Commission designates the proposed rule change
to be operative upon filing.\18\
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\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ Id.
\18\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (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 rule-comments@sec.gov. Please include
File Number SR-BOX-2016-22 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-2016-22. 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 offices 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-2016-22,
and should be submitted on or before June 16, 2016.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-12385 Filed 5-25-16; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 102 / Thursday, May 26, 2016 / Notices 33569

technology and computer models to requirements of Section 6(b) of the proposed is similar to the rules of
establish an option’s price and generate Securities Exchange Act of 1934 (the PHLX.12 The Exchange believes that the
the quote electronically to the Exchange. ‘‘Act’’),8 in general, and Section 6(b)(5) proposals will provide Participants
The Exchange believes when there is an of the Act,9 in particular, in that it is protection from minor rule violation
electronic quoting error, it may affect designed to prevent fraudulent and sanctions that are a result of electronic
every series the Participant is quoting manipulative acts and practices, to quoting errors. The proposed rule
on in that particular technology, promote just and equitable principles of change is meant to take into account the
generating potentially hundreds or trade, to foster cooperation and possibility of programming or
thousands of instances of quote spread coordination with persons engaged in technology errors that result in a
parameter violations within a short facilitating transactions in securities, to Participant violating the quote
amount of time. Rather than fine the remove impediments to and perfect the parameters set out in the Rule
Participant for or submit each event to mechanism of a free and open market 8040(a)(7). The proposed rule change
Formal Disciplinary Action for an and a national market system, and, in will enable Participants to enter quotes
isolated technological error, the general to protect investors and the without fear of hundreds or thousands
proposed changes would allow the public interest. In particular, the of minor rule violations, which in turn
Exchange to treat an electronic quoting Exchange believes that its proposal is will benefit investors through increased
error as single occurrence by aggregating consistent with Sections 6(b)(1) and (6) liquidity on the exchange. While the
the violations.5 The Exchange notes that of the Act,10 which require that the rules Exchange believes that the proposed
due to the nature of quotation parameter of an exchange enforce compliance Letters of Caution and subsequent fines
violations, aggregation is a common with, and provide appropriate should serve as a deterrent against
practice in the options industry.6 Under discipline for, violations of Commission future violations, the Exchange may
the proposed rule change a Market and Exchange rules. In addition, determine whether a violation is not
Maker on BOX would in most instances because existing BOX Rule 12140 minor in nature and thereafter refer it to
receive a Letter of Caution before being provides procedural rights to a person the Hearing Committee for disciplinary
subject to a sanction. The Exchange fined under the Exchange’s MRVP to action.13
believes this is appropriate because the contest the fine and permits a hearing
on the matter, the Exchange believes C. Self-Regulatory Organization’s
relevant Letters of Caution or monetary
that the proposal is consistent with Statement on Comments on the
fines should serve as a deterrent against
Sections 6(b)(7) and 6(d)(1) of the Act,11 Proposed Rule Change Received From
future violations, while recognizing that
by providing a fair procedure for the Members, Participants, or Others
a single programming error can have
widespread effect. Further, the disciplining of Participants and persons The Exchange has neither solicited
Exchange believes that sanctions on associated with Participants. nor received comments on the proposed
quotation parameter violations should In requesting the proposed changes to rule change.
not be considered [sic] excessively the sanctions under BOX Rule
12140(d)(5), the Exchange in no way III. Date of Effectiveness of the
punitive; as this could encourage a Proposed Rule Change and Timing for
Market Maker [sic] only meet its minimizes the importance of
compliance with Exchange Rules and all Commission Action
minimum quoting requirements, which
would remove liquidity from the other rules subject to the imposition of Because the foregoing proposed rule
exchange. fines under the MRVP. However, the change does not: (i) Significantly affect
As with other violations covered MRVP provides a reasonable means of the protection of investors or the public
under the Exchange’s MRVP, the addressing rule violations that do not interest; (ii) impose any significant
Exchange may elect to forgo the MRVP rise to the level of large sanctions and burden on competition; and (iii) become
and enforce any egregious violation of requiring formal disciplinary operative for 30 days from the date on
its rules under the Exchange’s formal proceedings, while providing greater which it was filed, or such shorter time
disciplinary process. flexibility in handling certain violations. as the Commission may designate, it has
The Exchange notes that the proposed The Exchange will continue to conduct become effective pursuant to Section
rule change is substantially similar to surveillance with due diligence and 19(b)(3)(A)(iii) of the Act 14 and
the rules of the NASDAQ OMX PHLX, make a determination based on its subparagraph (f)(6) of Rule 19b–4
Inc. (‘‘Phlx’’) and the sanctions that findings, on a case-by-case basis, thereunder.15
relate to the spread parameters for whether a fine of more or less than the A proposed rule change filed under
Market Maker quotations on PHLX.7 recommended amount is appropriate for Rule 19b–4(f)(6) normally does not
a violation under the MRVP or whether become operative prior to 30 days after
2. Statutory Basis a violation requires a formal the date of filing.16 Rule 19b–4(f)(6)(iii),
The Exchange believes that the disciplinary action. however, permits the Commission to
proposal is consistent with the B. Self-Regulatory Organization’s designate a shorter time if such action
Statement on Burden on Competition is consistent with the protection of
5 The Exchange notes that there is very little investors and the public interest.17 The
advantage to a Market Maker quoting wide, when The Exchange does not believe that Exchange has asked the Commission to
this happens they are no longer considered part of the proposed rule change will impose
the marketplace and any incoming orders will go
waive the 30-day operative delay so that
elsewhere.
any burden on competition not the proposal may become operative
6 The Minor Rule Violation Plans at most options necessary or appropriate in furtherance upon filing. The Exchange has stated
sradovich on DSK3TPTVN1PROD with NOTICES

exchanges allow for aggregation of quotation of the purposes of the Act. In this regard that the proposed rule change is
parameter violations and EDGX recently filed to and as indicated above, the Exchange
add this language as well. See Securities Exchange notes that the rule change is being 12 See supra, note 7.
Act Release No. 77181 (February 19, 2016), 81 FR 13 See
9566 (February 25, 2016) (Notice of Filing and Rule 12140(a).
8 15 U.S.C. 78f(b). 14 15 U.S.C. 78s(b)(3)(A)(iii).
Immediate Effectiveness SR–EDGX–2016–03).
7 See PHLX Rule 1014(c)(i)(A) [sic] and Securities 9 15 U.S.C. 78f(b)(5). 15 17 CFR 240.19b–4(f)(6).
10 15 U.S.C. 78f(b)(1) and (6). 16 17 CFR 240.19b–4(f)(6)(iii).
Exchange Act Release No. 62147 (May 21, 2010), 75
FR 29792 (Order Approving SR–Phlx–2010–43). 11 15 U.S.C. 78f(b)(7) and (d)(1). 17 Id.

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33570 Federal Register / Vol. 81, No. 102 / Thursday, May 26, 2016 / Notices

substantially similar to the rules of Phlx, Internet Web site (http://www.sec.gov/ and to adopt generic listing standards
in particular, the sanctions for rules/sro.shtml). Copies of the for Managed Fund Shares.3 The
violations of the spread parameters for submission, all subsequent proposed rule change was published for
Market Maker quotations. Waiver of the amendments, all written statements comment in the Federal Register on
30-day operative delay will allow BOX with respect to the proposed rule November 27, 2015.4
to aggregate violations of its spread change that are filed with the On November 23, 2015, the Exchange
parameter rule under its MRVP without Commission, and all written filed Amendment No. 1 to the proposed
delay. Furthermore, the Commission communications relating to the rule change, which amended and
notes that the Exchange’s MRVP and proposed rule change between the replaced the original proposal in its
quote spread parameter rules are already Commission and any person, other than entirety. On January 4, 2016, pursuant
in place; waiver will clarify the those that may be withheld from the to Section 19(b)(2) of the Act,5 the
Exchange’s expectations of its public in accordance with the Commission designated a longer period
Participants. For these reasons, the provisions of 5 U.S.C. 552, will be within which to approve the proposed
Commission believes that waiver of the available for Web site viewing and rule change, disapprove the proposed
30-day operative delay is consistent printing in the Commission’s Public rule change, or institute proceedings to
with the protection of investors and the Reference Room, 100 F Street NE., determine whether to disapprove the
public interest. Therefore, the Washington, DC 20549 on official proposed rule change.6 On January 21,
Commission designates the proposed business days between the hours of 2016, the Exchange withdrew
rule change to be operative upon 10:00 a.m. and 3:00 p.m. Copies of such Amendment No. 1 and filed
filing.18 filing also will be available for Amendment No. 2 to the proposed rule
At any time within 60 days of the inspection and copying at the principal change.7 The proposed rule change, as
filing of the proposed rule change, the offices of the Exchange. All comments modified by Amendment No. 2 thereto,
Commission summarily may received will be posted without change; was published for comment in the
temporarily suspend such rule change if the Commission does not edit personal Federal Register on February 1, 2016.8
it appears to the Commission that such identifying information from On February 11, 2016, the Exchange
action is: (i) Necessary or appropriate in submissions. You should submit only filed Amendment No. 3 to the proposed
the public interest; (ii) for the protection information that you wish to make rule change.9 On February 16, 2016, the
of investors; or (iii) otherwise in available publicly. All submissions Exchange filed Amendment No. 4 to the
furtherance of the purposes of the Act. should refer to File Number SR–BOX– proposed rule change.10
If the Commission takes such action, the 2016–22, and should be submitted on or
Commission shall institute proceedings before June 16, 2016. 3 See NYSE Arca Equities Rule 8.600(c)(1)

to determine whether the proposed rule For the Commission, by the Division of
(defining Managed Fund Shares).
4 See Securities Exchange Act Release No. 76486
should be approved or disapproved. Trading and Markets, pursuant to delegated (Nov. 20, 2015), 80 FR 74169 (‘‘Notice’’).
IV. Solicitation of Comments authority.19 5 15 U.S.C. 78s(b)(2).

Robert W. Errett, 6 See Securities Exchange Act Release No. 76819,
Interested persons are invited to 81 FR 987 (Jan. 8, 2016). The Commission
Deputy Secretary.
submit written data, views, and designated February 25, 2016 as the date by which
[FR Doc. 2016–12385 Filed 5–25–16; 8:45 am]
arguments concerning the foregoing, the Commission shall either approve or disapprove,
BILLING CODE 8011–01–P or institute proceedings to determine whether to
including whether the proposed rule
disapprove, the proposed rule change. See id.
change is consistent with the Act. 7 In Amendment No. 2 to the proposed rule
Comments may be submitted by any of change, the Exchange added provisions to the
SECURITIES AND EXCHANGE
the following methods: proposed generic listing criteria relating to non-U.S.
COMMISSION Component Stocks, convertible securities, and
Electronic Comments [Release No. 34–77872; File No. SR– listed swaps, among other changes. Amendment
• Use the Commission’s Internet NYSEArca–2015–110] No. 2, which amended and replaced the original
proposal in its entirety, is available on the
comment form (http://www.sec.gov/ Commission’s Web site at: http://www.sec.gov/
rules/sro.shtml); or Self-Regulatory Organizations; NYSE comments/sr-nysearca-2015-110/nysearca2015110-
• Send an email to rule-comments@ Arca, Inc.; Notice of Designation of a 3.pdf.
sec.gov. Please include File Number SR– Longer Period for Commission Action 8 See Securities Exchange Act Release No. 76974

BOX–2016–22 on the subject line. on Proceedings To Determine Whether (Jan. 26, 2016), 81 FR 5149.
9 In Amendment No. 3 to the proposed rule
To Approve or Disapprove a Proposed
Paper Comments Rule Change, as Modified by change, the Exchange (a) revised the provisions
relating to convertible securities, (b) clarified the
• Send paper comments in triplicate Amendment No. 4 Thereto, Amending limitations on non-exchange-traded American
to Secretary, Securities and Exchange NYSE Arca Equities Rule 8.600 To Depositary Receipts, (c) eliminated redundant
Commission, 100 F Street, NE., Adopt Generic Listing Standards for provisions relating to limitations on leveraged and
inverse-leveraged Derivative Securities Products,
Washington, DC 20549–1090. Managed Fund Shares (d) revised the provision relating to limitations on
All submissions should refer to File May 20, 2016. listed derivatives, (e) clarified that, for purposes of
Number SR–BOX–2016–22. This file the limitations relating to listed and over-the-
On November 6, 2015, NYSE Arca, counter derivatives, a portfolio’s investment in
number should be included on the Inc. (‘‘Exchange’’) filed with the listed and over-the-counter derivatives will be
subject line if email is used. To help the Securities and Exchange Commission calculated as the total absolute notional value of
Commission process and review your (‘‘Commission’’), pursuant to Section these derivatives, and (f) provided additional
comments more efficiently, please use information regarding the statutory basis of the
sradovich on DSK3TPTVN1PROD with NOTICES

19(b)(1) of the Securities Exchange Act proposal. Amendment No. 3, which amended and
only one method. The Commission will of 1934 (‘‘Act’’) 1 and Rule 19b–4 replaced the proposed rule change, as modified by
post all comments on the Commission’s thereunder,2 a proposed rule change to Amendment No. 2 thereto, in its entirety, is
available on the Commission’s Web site at: http://
18 For purposes only of waiving the 30-day
amend NYSE Arca Equities Rule 8.600 www.sec.gov/comments/sr-nysearca-2015-110/
operative delay, the Commission also has nysearca2015110-4.pdf.
19 17 CFR 200.30–3(a)(12).
considered the proposed rule’s impact on 10 In Amendment No. 4 to the proposed rule
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See change, the Exchange (a) modified the proposed
15 U.S.C. 78c(f). 2 17 CFR 240.19b–4. generic listing rules to require compliance of the

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Document Created: 2016-05-26 01:13:54
Document Modified: 2016-05-26 01:13:54

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 33568