81 FR 46990 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Introduce New Risk Protections on the Exchange and Provide Enhancements to Current Risk Protections
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 138 (July 19, 2016)
Federal Register Volume 81, Issue 138 (July 19, 2016)
| Page Range | 46990-46994 | |
| FR Document | 2016-16974 |
[Federal Register Volume 81, Number 138 (Tuesday, July 19, 2016)] [Notices] [Pages 46990-46994] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-16974] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78312; File No. SR-BOX-2016-30] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Introduce New Risk Protections on the Exchange and Provide Enhancements to Current Risk Protections July 13, 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 July 1, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to introduce new risk protections on the Exchange and provide enhancements to current risk protections. 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. [[Page 46991]] A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to introduce new risk protections on the Exchange and provide enhancements to current risk protections designed to aid Participants in their risk management by supplementing current protections with new activity-based protections. In particular, the Exchange proposes to introduce new activity-based protections for orders and quotes, enhancements to the current protections available for Market Makers on the Exchange and provide maximum order and quote quantity. Maximum Order and Quote Quantity The Exchange proposes to adopt Rule 7320 (Maximum Order and Quote Quantity) to provide an additional risk protection for orders and quotes entered on BOX. Specifically, the system will prevent orders or quotes from executing or being placed on the BOX Book if the size of the order or quote exceeds the size protection designated by the Participant submitting the order or quote. The size protection is the maximum size of an order or quote that will be accepted by the system and Participants may designate the size protection on a class-by-class basis for non-auction transactions. For auction transactions, the Participant may designate a size protection applicable to all auction types only. For Complex Orders, if any leg fails the validation, then the entire Complex Order is rejected. In order to provide values for the size protection, Participants must contact the MOC.\3\ Additionally, the Exchange will provide default values for the size protection. The most restrictive (i.e., the smallest value) between the Exchange default and Participant-provided value will be used. The Exchange notes that this is not a novel proposal and another exchange already has this feature.\4\ --------------------------------------------------------------------------- \3\ The term ``Market Operations Center'' or ``MOC'' means the BOX Market Operations Center, which provides market support for Options Participants during the trading day. See Rule 100(a)(31). \4\ See Miami International Securities Exchange, LLC (``MIAX'') Rule 519(b). --------------------------------------------------------------------------- Activity-Based Protections The Exchange proposes to adopt Rule 7330 (Activity-Based Protections) to provide new risk protections. Specifically, the Exchange is proposing two new risk protections; one will cover executed orders and the other will cover executed orders and quotes. The Exchange proposes to adopt Rule 7330(a) (Traded Order Protection) to provide new risk protections for orders executed by Participants on the Exchange. The risk protections the Exchange is proposing are similar to those already available on BOX for quotes.\5\ The proposed risk protection will maintain a counting program for each participating Participant. Specifically, the Exchange shall maintain traded order counters for: (1) Maximum number of trades from orders,\6\ (2) maximum traded order volume,\7\ (3) maximum traded order value,\8\ (4) delta maximum order volume,\9\ and (5) delta maximum order value.\10\ Participants can provide values for these five counters and for the Time Interval, as described in further detail below. --------------------------------------------------------------------------- \5\ See Rule 8130. \6\ The maximum number of trades from orders counter will keep track of total trades in a class. \7\ The maximum traded order volume counter is designed to count the total volume traded in a class. \8\ The maximum traded order value counter is the absolute dollar value of contracts bought and sold in a class. \9\ The delta maximum order volume is the absolute value of the net position in a class between (i) calls purchased and puts sold, and (ii) calls sold and puts purchased. \10\ The delta maximum order value is the absolute value of the net position in a class between (i) calls purchased and sold, (ii) puts and calls purchased; (iii) puts purchased and sold; or (iv) puts and calls sold. --------------------------------------------------------------------------- When a Participant's order is executed, the system will look back over a specific period of time to determine whether the execution will cause the counters to be incremented. Specifically, if the difference between the time of the current trade and the time of the previous trade from the same Options Participant identification number (``Participant ID'') in the same class is greater than the Time Interval,\11\ then the counters will be reset before adding the current trade to them. If, however, the difference between the time of the current trade and the time of the previous trade from the same Participant ID in the same class is less than or equal to the Time Interval, then the counters will be incremented for the current trade without resetting them first. For example, assume the Time Interval is 2 seconds. If an order for 10 contracts in ABC is received at 10:31:02 and a second order for 50 contracts in ABC is received at 10:31:03, then the maximum number of trades counter would be incremented by 1 for the second trade and the maximum traded volume counter would be incremented by 50 from the second trade. If, however, the second order was not received until 10:31:05, the system would reset all counters for ABC since the time between the second trade and the previous trade was greater than the Time Interval. After resetting the counters for ABC, the system will increment the maximum number of trades counter by 1 and the maximum traded volume by 50 contracts. --------------------------------------------------------------------------- \11\ The ``Time Interval'' is the highest value between the Exchange default and Participant-provided value. --------------------------------------------------------------------------- When a counter is triggered because it exceeds the maximum permissible value, all orders for that Participant ID in options on that class are cancelled unless such cancelation is not permitted under other rules.\12\ When both the Exchange and a Participant provide values (other than zero) for the parameters, the most restrictive (i.e., the smallest value for the five counters and the highest value for the Time Interval) will be used by the system when determining if a counter has been triggered. --------------------------------------------------------------------------- \12\ For a counter triggered for the incoming order side, action is taken following the trade that breached the limit. For a counter triggered for the resting order side, action is taken following the complete processing of the incoming order. As mentioned above, if a cancelation is not permitted under other BOX rules, the orders for that Participant ID will remain. For example, under BOX Rule 8050(d), Market Maker bids and offers are firm for the number of contracts specified in the bid or offer. --------------------------------------------------------------------------- The Exchange proposes to adopt Rule 7330(b) (Traded Activity Protection) to provide enhanced risk protections for orders and quotes. Specifically, the Exchange shall maintain traded activity counters for: (1) Maximum number of trades,\13\ (2) maximum traded volume,\14\ (3) maximum traded value,\15\ (4) delta maximum volume,\16\ and (5) delta maximum value.\17\ Participants can provide values for these five counters and for the Time Interval, as described in further detail below. These proposed counters are similar to those in proposed Rule 7330(a) with the exception that the counters in the [[Page 46992]] proposed Traded Activity Protection will count orders and quotes executed by a Participant, while the Automatic Order Cancellation only counts executed orders. Additionally, the Traded Activity Protection counts trades for all classes and not on a class-by-class basis as the Automatic Order Cancellation provides. --------------------------------------------------------------------------- \13\ The maximum number of trades counter will keep track of total trades involving orders and/or quotes in all classes. \14\ The maximum traded volume counter is designed to count the total volume traded involving orders and/or quotes in all classes. \15\ The maximum traded value counter is the absolute dollar value of contracts bought and sold in a class from trades involving orders and/or quotes. \16\ The delta maximum volume is the absolute value of the net position in all classes between (i) calls purchased and puts sold, and (ii) calls sold and puts purchased, for trades involving orders and/or quotes. \17\ The delta maximum value is the absolute value of the net position in all classes between (i) calls purchased and sold, (ii) puts and calls purchased; (iii) puts purchased and sold; or (iv) puts and calls sold, for trades involving orders and/or quotes. --------------------------------------------------------------------------- When a Participant's order and/or quote is executed, the system will look back over a specific period of time to determine whether the execution will cause the counters to be incremented. Specifically, if the difference between the time of the current trade and the time of the previous trade from the same Participant ID is greater than the Time Interval,\18\ then the counters will be reset before adding the current trade to them. If, however, the difference between the time of the current trade and the time of the previous trade from the same Participant ID is less than or equal to the Time Interval, then the counters will be incremented for the current trade. --------------------------------------------------------------------------- \18\ The ``Time Interval'' is the highest value between the Exchange default and Participant-provided value. --------------------------------------------------------------------------- When a counter is triggered because it exceeds the maximum permissible value, all orders and quotes for that Participant ID in all classes are cancelled unless such cancelation is not permitted under other rules.\19\ When both the Exchange and a Participant provide values (other than zero) for the parameters, the most restrictive (i.e., the smallest value for the five counters and the highest value for the Time Interval) will be used by the system when determining if a counter has been triggered. A Participant may also elect for the system to lock-out the Participant ID when a counter is triggered or if the Exchange default requires a lock-out. When a lock-out is triggered, the system will prevent that Participant ID from submitting orders and/or quotes. Additionally, any request from that Participant ID to initiate an auction will be prevented. To submit orders and/or quotes to the Exchange after the lock-out is triggered, a Participant must call the MOC \20\ directly to unlock the Participant ID. The Exchange notes that activity-based protections are not novel and other exchanges, including BOX, already have activity-based risk protections.\21\ Additionally, the Exchange notes that the unlock feature mentioned above is not novel, as another exchange already has a similar feature as well.\22\ --------------------------------------------------------------------------- \19\ For a counter triggered for the incoming order or quote side, action is taken following the trade that breached the limit. For a counter triggered for the resting order or quote side, action is taken following the complete processing of the incoming order or quote. As mentioned above, if a cancelation is not permitted under other BOX rules, the orders for that Participant ID will remain. For example, under BOX Rule 8050(d), Market Maker bids and offers are firm for the number of contracts specified in the bid or offer. \20\ The term ``MOC'' or ``Market Operations Center'' means the BOX Market Operations Center, which provides market support for Options Participants during the trading day. \21\ See MIAX Rule 519A and BOX Rule 8130. \22\ See MIAX Rule 519A(b). MIAX's Risk Protection Monitor will remain engaged until the member communicates with the exchange's help desk to enable the acceptance of new orders. --------------------------------------------------------------------------- The Activity-based Protections are available to all Participants and are enabled when a Participant contacts the MOC and provides values for the parameters. The Exchange may also enable these features and provide default values for the parameters. Global Counter The last new protection mechanism that the Exchange is proposing is a Global Counter.\23\ The Global Counter will count the number of triggering events across the Exchange's protection mechanisms per Participant ID. Specifically, under proposed Rule 7340 the system will count the number of triggering events from the Traded Order Protection, Traded Activity Protection and Automatic Quote Cancellation mechanisms. If the difference between the time of the current triggering event and the time of the previous triggering event from the same Participant ID is greater than the Global Counter Time Interval, as described below, then the Global Counter will be reset before adding the current triggering event to it. If, however, the difference between the time of the current triggering event and the time of the previous triggering event from the same Participant ID is less than or equal to the Global Counter Time Interval, then the Global Counter will be incremented without resetting the Global Counter first. --------------------------------------------------------------------------- \23\ See Proposed Rule 7340 (Global Counter). --------------------------------------------------------------------------- If multiple counters within the same category of protection are triggered by the same trade, the Global Counter will only be incremented by one. If, however, multiple counters from different categories of protection are triggered by the same trade, the Global Counter will be incremented by one for each category of protection, regardless of the number of counters within the same category of protection that were triggered. For example, if the maximum traded order volume counter for the Traded Order Protections and the maximum traded volume for the Trade Activity Protection are triggered by the same trade, then the Global Counter will only be incremented by one. Participants will be allowed to provide a limit for the Global Counter (``Global Limit'') and the Exchange will also provide a default value for the Global Limit. If the Global Counter is triggered because it has reached or exceeded the Global Limit, the system will cancel all orders and/or quotes belonging to that Participant and the counter is reset. When determining if the Global Counter has been triggered, the system will use the most restrictive value for the Global Limit (i.e., the smallest value) between the Exchange default and Participant- provided limit. A Participant may also elect for the system to lock-out the Participant ID when the Global Counter is triggered or if the Exchange default requires a lock-out. When a lock-out is triggered, the system will prevent that Participant ID from submitting orders and/or quotes. Additionally, any request from that Participant ID to initiate an auction will be prevented. The Global Counter is available to all Participants and is enabled when a Participant contacts the MOC and provides values for the parameters. The Exchange may also enable this feature and provide default values for the parameters. The Exchange notes that the proposed Global Counter is not novel and another exchange has a similar counting program on its exchange.\24\ --------------------------------------------------------------------------- \24\ See MIAX Rule 612.02(b). --------------------------------------------------------------------------- Automatic Quote Cancellation Currently, the Exchange offers activity-based protections for Market Makers. Specifically, Rule 8130 (Automatic Quote Cancellation) provides activity-based protections for a Market Maker's quoting activity. The Automatic Quote Cancellation mechanism contains numerous triggering parameters for which a Market Maker can provide values. The Exchange is now proposing to amend the Automatic Quote Cancellation mechanism by adding an additional triggering parameter. Specifically, the Exchange is proposing to add a parameter that tracks the percentage of the Market Maker's quote that is traded. The Exchange notes that this is not a novel proposal and another exchange already has this feature.\25\ Additionally, the Exchange is proposing that it may provide default values for some or all of the parameters in Rule 8130; however, any Participant-provided value will override any Exchange defaults. --------------------------------------------------------------------------- \25\ See MIAX Rule 612(b)(1). --------------------------------------------------------------------------- Additionally, the Exchange is proposing to provide clarity on when the counters will be reset. Specifically, the counters in Rule 8130 are reset [[Page 46993]] when (i) the Participant provides an update to the value of one of the parameters, (ii) the time interval between a trade and its previous trade surpasses the time period, or (iii) the triggering of any of the time related counters. Quote Removal Mechanism Upon Technical Disconnect The Exchange is proposing to amend Rule 8140 to provide that when a Market Maker is disconnected from the Trading Host, the Market Maker's quotes will be cancelled. As part of this proposed change, the Exchange is proposing to remove one of the triggering parameters currently in Rule 8130. Specifically, the Exchange is proposing to remove the first triggering parameter for when a Market Maker experiences a duration of no technical connectivity for between one and nine seconds. The Exchange believes that this parameter is no longer needed since the Exchange's proposed change for Rule 8140 will cover when a Market Maker is disconnected. 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. Additionally, any changes to any Exchange provided defaults will be communicated to Participants via Information Circular. 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''),\26\ in general, and Section 6(b)(5) of the Act,\27\ 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 proposed rule filing 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. --------------------------------------------------------------------------- \26\ 15 U.S.C. 78f(b). \27\ 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 these risk tools 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. These risk protections, 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. Specifically, for a counter triggered for the resting order or quote side, action is taken following the complete processing of the incoming order or quote. Additionally, a Market Maker's obligation to provide continuous two- sided quotes on a daily basis is not diminished by the removal of such quotes through one of the risk protections. A Market Maker will be required to provide continuous two-sided quotes on a daily basis. The Exchange believes that the proposed rule change will assist with the maintenance of a fair and orderly market by establishing new activity-based risk protections for orders and quotes. The Exchange believes that these proposed risk protections, in addition to the current risk protections available on the Exchange, will enable Participants to better manage their risk when trading on the Exchange. BOX believes the proposed risk controls will remove impediments to and perfect the mechanism of a free and open market by providing Participants with greater control over their activity. 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. BOX believes the proposal will provide market participants with additional protections while submitting orders and quotes to the Exchange. The Exchange does not believe the proposal will impose a burden on competition among the options exchanges, because of vigorous competition for order flow among the options exchanges. The Exchange competes with many other options exchanges. In this highly competitive market, market participants can easily and readily direct order flow to competing venues. The proposal does not impose an undue burden on intramarket competition because all Participants may avail themselves of the risk controls on the Exchange. Additionally, the proposed activity-based protections are similar to those available on competing exchanges.\28\ For these reasons, the Exchange does not believe this proposal imposes an undue burden on inter-market competition; rather, the proposed rule changes will have no impact on competition. --------------------------------------------------------------------------- \28\ See supra notes 4, 20 and 22. --------------------------------------------------------------------------- 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 \29\ and Rule 19b-4(f)(6) thereunder.\30\ Because the 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 prior to 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 and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \29\ 15 U.S.C. 78s(b)(3)(A)(iii). \30\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \31\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\32\ the Commission may 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 Exchange may provide Participants with additional risk protections while trading on the Exchange without undue delay. The Commission believes that waiving the 30-day operative delay is consistent [[Page 46994]] with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposed rule change operative upon filing.\33\ --------------------------------------------------------------------------- \31\ 17 CFR 240.19b-4(f)(6). \32\ 17 CFR 240.19b-4(f)(6)(iii). \33\ For purposes only of waiving the operative date of this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 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-2016-30 on the subject line. Paper Comments Send paper comments in triplicate toecretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-BOX-2016-30. 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, on official business days between the hours of 10:00 a.m. and 3:00 p.m., located at 100 F Street, NE., Washington, DC 20549. 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-2016-30 and should be submitted on or before August 9, 2016. --------------------------------------------------------------------------- \34\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\34\ Jill M. Peterson, Assistant Secretary. [FR Doc. 2016-16974 Filed 7-18-16; 8:45 am] BILLING CODE 8011-01-P
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appropriate in the public interest, and the requirements of Rule 10b–17 with SECURITIES AND EXCHANGE
consistent with the protection of respect to the transactions in the Shares COMMISSION
investors to grant the Trust an of the Fund.
exemption under paragraph (e) of Rule This exemptive relief is subject to the [Release No. 34–78312; File No. SR–BOX–
102 of Regulation M with respect to the following conditions: 2016–30]
Fund, thus permitting the Fund to
redeem Shares of the Fund during the • The Trust will comply with Rule
Self-Regulatory Organizations; BOX
continuous offering of such Shares. 10b–17, except for Rule 10b–
17(b)(1)(v)(a) and (b); and Options Exchange LLC; Notice of
Rule 10b–17 Filing and Immediate Effectiveness of
• The Trust will provide the a Proposed Rule Change To Introduce
Rule 10b–17, with certain exceptions, information required by Rule 10b–
requires an issuer of a class of publicly New Risk Protections on the Exchange
17(b)(1)(v)(a) and (b) to the Exchange as and Provide Enhancements to Current
traded securities to give notice of certain soon as practicable before trading begins
specified actions (for example, a Risk Protections
on the ex-dividend date, but in no event
dividend distribution) relating to such later than the time when the Exchange July 13, 2016.
class of securities in accordance with last accepts information relating to
Rule 10b–17(b). Based on the Pursuant to Section 19(b)(1) of the
distributions on the day before the ex-
representations and the facts presented Securities Exchange Act of 1934
dividend date.
in the Letter, and subject to the (‘‘Act’’),1 and Rule 19b–4 thereunder,2
conditions below, the Commission finds This exemptive relief is subject to notice is hereby given that on July 1,
that it is appropriate in the public modification or revocation at any time 2016, BOX Options Exchange LLC (the
interest, and consistent with the the Commission determines that such ‘‘Exchange’’) filed with the Securities
protection of investors, to grant the action is necessary or appropriate in and Exchange Commission
Trust a conditional exemption from furtherance of the purposes of the (‘‘Commission’’) the proposed rule
Rule 10b–17 because market Exchange Act. This exemption is based change as described in Items I and II
participants will receive timely on the facts presented and the
below, which Items have been prepared
notification of the existence and timing representations made in the Letter. Any
by the self-regulatory organization. The
of a pending distribution, and thus the different facts or representations may
Commission is publishing this notice to
concerns that the Commission raised in require a different response. Persons
solicit comments on the proposed rule
adopting Rule 10b–17 will not be relying upon this exemptive relief shall
discontinue transactions involving the from interested persons.
implicated.6
Shares of the Fund, pending I. Self-Regulatory Organization’s
Conclusion presentation of the facts for the Statement of the Terms of Substance of
IT IS HEREBY ORDERED, pursuant to Commission’s consideration, in the the Proposed Rule Change
Rule 101(d) of Regulation M, that the event that any material change occurs
Trust, based on the representations and with respect to any of the facts or The Exchange proposes to introduce
facts presented in the Letter, is exempt representations made by the Requestors, new risk protections on the Exchange
from the requirements of Rule 101 with and as is the case with all preceding and provide enhancements to current
respect to the Fund, thus permitting letters, particularly with respect to the risk protections. The text of the
persons who may be deemed to be close alignment between the market proposed rule change is available from
participating in a distribution of Shares price of Shares and the Fund’s NAV. In the principal office of the Exchange, at
of the Fund to bid for or purchase such addition, persons relying on this the Commission’s Public Reference
Shares during their participation in exemption are directed to the anti-fraud Room and also on the Exchange’s
such distribution. and anti-manipulation provisions of the Internet Web site at http://
IT IS FURTHER ORDERED, pursuant Exchange Act, particularly Sections 9(a), boxexchange.com.
to Rule 102(e) of Regulation M, that the 10(b), and Rule 10b–5 thereunder.
Trust, based on the representations and II. Self-Regulatory Organization’s
Responsibility for compliance with
the facts presented in the Letter, is Statement of the Purpose of, and
these and any other applicable
exempt from the requirements of Rule Statutory Basis for, the Proposed Rule
provisions of the federal securities laws
102 with respect to the Fund, thus Change
must rest with the persons relying on
permitting the Fund to redeem Shares of
this exemption. This Order should not In its filing with the Commission, the
the Fund during the continuous offering
be considered a view with respect to self-regulatory organization included
of such Shares.
IT IS FURTHER ORDERED, pursuant any other question that the proposed statements concerning the purpose of,
to Rule 10b–17(b)(2), that the Trust, transactions may raise, including, but and basis for, the proposed rule change
based on the representations and the not limited to, the adequacy of the and discussed any comments it received
facts presented in the Letter and subject disclosure concerning, and the on the proposed rule change. The text
to the conditions below, is exempt from applicability of other federal or state of these statements may be examined at
laws to, the proposed transactions. the places specified in Item IV below.
6 We also note that timely compliance with Rule
For the Commission, by the Division of The self-regulatory organization has
10b–17(b)(1)(v)(a) and (b) would be impractical in Trading and Markets, pursuant to delegated
light of the Fund’s nature because it is not possible
prepared summaries, set forth in
mstockstill on DSK3G9T082PROD with NOTICES
for the Fund to accurately project ten days in authority.7 Sections A, B, and C below, of the most
advance what dividend, if any, would be paid on Robert W. Errett, significant aspects of such statements.
a particular record date. Further, the Commission
finds, based upon the representations of the
Deputy Secretary.
Requestors in the Letter, that the provision of the [FR Doc. 2016–16999 Filed 7–18–16; 8:45 am]
notices as described in the Letter would not BILLING CODE 8011–01–P
constitute a manipulative or deceptive device or
1 15 U.S.C. 78s(b)(1).
contrivance comprehended within the purpose of
Rule 10b–17. 7 17 CFR 200.30–3(a)(6) and (9). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 19:39 Jul 18, 2016 Jkt 238001 PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 E:\FR\FM\19JYN1.SGM 19JYN1](https://thefederalregister.org/doc/81_FR_47128/page/1.svg)
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with the protection of investors and the available for Web site viewing and At times, changes in Commission
public interest. Therefore, the printing in the Commission’s Public priorities require alterations in the
Commission hereby waives the Reference Room, on official business scheduling of meeting items.
operative delay and designates the days between the hours of 10:00 a.m. For further information and to
proposed rule change operative upon and 3:00 p.m., located at 100 F Street, ascertain what, if any, matters have been
filing.33 NE., Washington, DC 20549. Copies of added, deleted or postponed, please
At any time within 60 days of the such filing also will be available for contact Brent J. Fields from the Office of
filing of the proposed rule change, the inspection and copying at the principal the Secretary at (202) 551–5400.
Commission summarily may office of the Exchange. All comments Dated: July 15, 2016.
temporarily suspend such rule change if received will be posted without change; Brent J. Fields,
it appears to the Commission that such the Commission does not edit personal
Secretary.
action is necessary or appropriate in the identifying information from
[FR Doc. 2016–17168 Filed 7–15–16; 4:15 pm]
public interest, for the protection of submissions. You should submit only
investors, or otherwise in furtherance of information that you wish to make BILLING CODE 8011–01–P
the purposes of the Act. If the available publicly. All submissions
Commission takes such action, the should refer to File Number SR–BOX–
Commission shall institute proceedings 2016–30 and should be submitted on or
OFFICE OF THE UNITED STATES
to determine whether the proposed rule before August 9, 2016.
TRADE REPRESENTATIVE
should be approved or disapproved. For the Commission, by the Division of
IV. Solicitation of Comments Trading and Markets, pursuant to delegated Request for Public Comments To
authority.34 Compile the National Trade Estimate
Interested persons are invited to Jill M. Peterson, Report on Foreign Trade Barriers
submit written data, views and Assistant Secretary.
arguments concerning the foregoing, AGENCY: Office of the United States
[FR Doc. 2016–16974 Filed 7–18–16; 8:45 am]
including whether the proposed rule Trade Representative.
BILLING CODE 8011–01–P
change is consistent with the Act. ACTION: Notice.
Comments may be submitted by any of
the following methods: SUMMARY: Pursuant to section 181 of the
SECURITIES AND EXCHANGE
Trade Act of 1974, as amended (19
Electronic Comments COMMISSION
U.S.C. 2241), the Office of the United
• Use the Commission’s Internet Sunshine Act Meeting States Trade Representative (USTR) is
comment form (http://www.sec.gov/ required to publish annually the
rules/sro.shtml); or Notice is hereby given, pursuant to National Trade Estimate Report on
• Send an email to rule- the provisions of the Government in the Foreign Trade Barriers (NTE). With this
comments@sec.gov. Please include File Sunshine Act, Public Law 94–409, that notice, the Trade Policy Staff Committee
Number SR–BOX–2016–30 on the the Securities and Exchange (TPSC) is requesting interested persons
subject line. Commission will hold a Closed Meeting to submit comments to assist it in
on Friday, July 22, 2016 at 11:30 a.m. identifying significant barriers to U.S.
Paper Comments
Commissioners, Counsel to the exports of goods, services, and U.S.
• Send paper comments in triplicate Commissioners, the Secretary to the foreign direct investment for inclusion
toecretary, Securities and Exchange Commission, and recording secretaries in the NTE. The TPSC invites written
Commission, 100 F Street NE., will attend the Closed Meeting. Certain comments from the public on issues that
Washington, DC 20549–1090. staff members who have an interest in USTR should examine in preparing the
All submissions should refer to File the matters also may be present. NTE.
Number SR–BOX–2016–30. This file The General Counsel of the Section 1377 of the Omnibus Trade
number should be included on the Commission, or her designee, has and Competitiveness Act of 1988 (19
subject line if email is used. To help the certified that, in her opinion, one or U.S.C. 3106) (‘‘Section 1377’’) requires
Commission process and review your more of the exemptions set forth in 5 the USTR to review annually the
comments more efficiently, please use U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) operation and effectiveness of all U.S.
only one method. and 17 CFR 200.402(a)(3), (5), (7), 9(ii) trade agreements regarding
The Commission will post all and (10), permit consideration of the telecommunications products and
comments on the Commission’s Internet scheduled matter at the Closed Meeting. services that are in force with respect to
Web site (http://www.sec.gov/rules/ Commissioner Piwowar, as duty the United States. USTR is collecting
sro.shtml). Copies of the submission, all officer, voted to consider the items information regarding the trade barriers
subsequent amendments, all written listed for the Closed Meeting in closed pertinent to the conduct of the review
statements with respect to the proposed session. called for in Section 1377 through this
rule change that are filed with the The subject matter of the Closed notice.
Commission, and all written Meeting will be: DATES: Public comments are due not
communications relating to the Institution and settlement of injunctive later than 11:59 p.m., October 27, 2016.
proposed rule change between the actions; ADDRESSES: Submissions should be
Commission and any person, other than Institution and settlement of made via the Internet at
mstockstill on DSK3G9T082PROD with NOTICES
those that may be withheld from the administrative proceedings; www.regulations.gov docket number
public in accordance with the Adjudicatory matters; USTR 2016–0007. For alternatives to on-
provisions of 5 U.S.C. 552, will be Opinion; and line submissions please contact Yvonne
Other matters relating to enforcement Jamison (202) 395–3475. The public is
33 For purposes only of waiving the operative date
proceedings. strongly encouraged to file submissions
of this proposal, the Commission has considered
the proposed rule’s impact on efficiency, electronically rather than by facsimile or
competition, and capital formation. 15 U.S.C. 78c(f). 34 17 CFR 200.30–3(a)(12). mail.
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Document Created: 2016-07-19 01:10:52
Document Modified: 2016-07-19 01:10:52
| 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 46990 |
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