81_FR_52098 81 FR 51947 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the BOX Rules Regarding Participants and Associated Persons Who Are or Become Subject to a Statutory Disqualification

81 FR 51947 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the BOX Rules Regarding Participants and Associated Persons Who Are or Become Subject to a Statutory Disqualification

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 151 (August 5, 2016)

Page Range51947-51949
FR Document2016-18567

Federal Register, Volume 81 Issue 151 (Friday, August 5, 2016)
[Federal Register Volume 81, Number 151 (Friday, August 5, 2016)]
[Notices]
[Pages 51947-51949]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-18567]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78449; File No. SR-BOX-2016-26]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the BOX Rules Regarding Participants and Associated Persons Who 
Are or Become Subject to a Statutory Disqualification

August 1, 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 25, 2016, BOX Options Exchange LLC (the ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the self-regulatory organization. The 
Commission is publishing this notice to solicit comments on the 
proposed rule from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the BOX Rules regarding Participants 
and associated persons who are or become subject to a statutory 
disqualification. 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

[[Page 51948]]

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 purpose of the proposed rule change is to amend Rule 2040 
(Restrictions) to add language which provides the Exchange with the 
discretion to determine whether to permit a person to become an Options 
Participant or an associated person of a Participant or continue as a 
Participant or in association with a Participant on the Exchange.
    Currently, Rule 2040 restricts any persons from becoming an Options 
Participant or continuing as an Options Participant where (1) such 
person is other than a natural person and is not a registered broker or 
dealer, (2) such person is a natural person who is not either a 
registered broker or dealer or associated with a registered broker or 
dealer, (3) such person is subject to a statutory disqualification,\3\ 
except that a person may become a Participant or continue as a 
Participant where, pursuant to Rules 19d-1, 19d-2, 19d-3 and 19h-1 of 
the Act, the Commission has issued an order providing relief from such 
a disqualification and permitting such a person to become a 
Participant, or (4) such person is not a member of another registered 
national securities exchange or association.
---------------------------------------------------------------------------

    \3\ The Exchange uses the Securities Exchange Act of 1934 
definition of statutory disqualification. See 15 U.S.C. 78c(a)(39).
---------------------------------------------------------------------------

    The Exchange notes that the proposed rule changes below are 
substantially similar to the Rules of the International Securities 
Exchange (``ISE'').\4\ The Exchange first proposes to amend the 
language of Rule 2040 to give itself the discretion to determine if a 
restriction on a Participant becoming or continuing on as an Options 
Participant is appropriate.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Release No. 42455, 65 FR 11401 
(March 2, 2000) (Order Granting Registration as a National 
Securities Exchange).
---------------------------------------------------------------------------

    The Exchange then proposes to amend BOX Rule 2040(a)(3). 
Specifically, the Exchange proposes to add a reference to Section 
3(a)(39) of the Exchange Act for the definition of statutory 
disqualification within BOX Rule 2040(a)(3). The Exchange also proposes 
to delete the language that allows a person to become a Participant or 
continue as a Participant where, pursuant to Rules 19d-1, 19d-2, 19d-3 
and 19h-1 of the Act, the Commission has issued an order providing 
relief from such a disqualification and permitting such a person to 
become a Participant. The Exchange believes that this language is 
obsolete.
    The Exchange then proposes to add three more situations with regard 
to whether a person may become a Participant or continue as a 
Participant in any capacity on the Exchange. The additional 
restrictions are (1) when such person fails to meet any of the 
qualification requirements for becoming a Participant or associated 
with a Participant after approval thereof; (2) such person fails to 
meet any condition placed by the Exchange on such Participant or 
association with a Participant; and (3) such person violates any 
agreement with the Exchange. The Exchange proposes these additions in 
order to allow the Exchange more discretion in its determination as to 
whether a person may become or continue as a Participant or in 
association with a Participant.
    The Exchange also proposes to add language with regard to a 
Participant or associated person that becomes subject to a statutory 
disqualification under the Exchange Act. The proposed rule would allow 
a Participant or associated person who becomes subject to a statutory 
disqualification and who wants to continue as a Participant of the 
Exchange or in association with a Participant, to submit a request to 
the Exchange seeking to continue as a Participant or in association 
with a Participant notwithstanding the statutory disqualification.\5\
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    \5\ The Participant or person associated with a Participant must 
submit the request within thirty (30) days of becoming subject to a 
statutory disqualification.
---------------------------------------------------------------------------

    The Exchange also proposes to add language which allows 
Participants and associated persons whose request to become a 
Participant is denied or conditioned, or any person whose association 
with a Participant is denied or conditioned pursuant to the 
restrictions codified in Rule 2040(a), and any Participant or person 
associated with a Participant who is not permitted to continue as a 
Participant or be an associate with a Participant or to which 
association is conditioned to appeal the Exchange's decision under Rule 
1300 (Review of Certain Exchange Actions) of the Rules.
    Lastly, the Exchange proposes to add Interpretive Material which 
allows the Exchange to waive the provisions of Rule 2040 when a 
proceeding is pending before another self-regulatory organization 
(``SRO'') or similar association to determine whether to permit a 
Participant or associated person to become or continue being 
Participant or associated person notwithstanding a statutory 
disqualification. The Exchange notes that this proposed rule change is 
substantially similar to the comparable Rules of the Chicago Board 
Options Exchange (``CBOE'').\6\ Further, in the event the Exchange 
determines to waive the provisions of this Rule with respect to a 
Participant or associated person, the Exchange shall determine whether 
the Exchange will concur in any Exchange Act Rule 19h-1 filing made by 
another SRO or similar association with respect to the Participant or 
associated person.
---------------------------------------------------------------------------

    \6\ See Securities Exchange Release No. 43056, 65 FR 46524 (July 
28, 2000) (Order Approving Proposed Rule Change and Notice of Filing 
and Order Granting Accelerated Approval to Amendment No. 3 to the 
Proposed Rule Change by the Chicago Board Options Exchange, Inc. 
Relating to Membership Rules) (SR-CBOE-99-15).
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of section 6(b) of 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule changes are consistent 
with the requirements above. Specifically, the Exchange believes the 
proposed changes will better enable the Exchange to use its discretion 
in determining whether a person may become or continue as a Participant 
or associated person. Because of the discretionary language and 
additional restrictions, the Exchange may consider additional 
circumstances when determining whether a person may become or continue 
as a Participant or associated person on the Exchange.
    The Exchange believes that Proposed Rule 2040(c) regarding any 
person or Participant's ability to appeal a denied

[[Page 51949]]

or conditioned request to become or continue as a Participant or to 
associate with a Participant is reasonable because it provides a fair 
procedure for the Participants and persons associated with Participants 
pursuant to Rule 11000 (Summary Suspension).
    The Exchange also believes the proposed rule change regarding the 
waiver of the provisions of Rule 2040 will better enable the Exchange 
to focus Exchange resources on other matters while another SRO or 
similar association is determining whether to permit a Participant or 
associated person to become or continue being a Participant or 
associated person on the exchange.
    Lastly, the Exchange believes that amending the language in BOX 
Rule 2040(a)(3) is appropriate, as the added language which defers to 
the Exchange Act for a particular definition, will add clarity to the 
rules. Further, the Exchange believes is it reasonable to remove 
obsolete language in BOX Rule 2040(a)(3) because the Exchange is 
eliminating any potential for confusion by simplifying the Exchange 
Rules, ensuring that Participants, regulators, and the public can more 
easily navigate the Exchange's Rulebook.

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.

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

    (a) This proposed rule change is filed pursuant to paragraph (A) of 
section 19(b)(3) of the Exchange Act \9\ and Rule 19b-4(f)(6) 
thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    (b) This proposed rule change does not significantly affect the 
protection of investors or the public interest, does not impose any 
significant burden on competition, and, by its terms, does not become 
operative for 30 days after the date of the filing, or such shorter 
time as the Commission may designate, it has become effective pursuant 
to section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder.
    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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BOX-2016-26 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-2016-26. 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-2016-26 and 
should be submitted on or before August 26, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-18567 Filed 8-4-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                 Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices                                                 51947

                                                  NextShares will provide investors with                  Commission summarily may                              information that you wish to make
                                                  transparency of trading costs, and the                  temporarily suspend such rule change if               available publicly. All submissions
                                                  ability to control trading costs using                  it appears to the Commission that such                should refer to File Number SR–
                                                  limit orders, that is not available for                 action is: (i) Necessary or appropriate in            NASDAQ–2016–105 and should be
                                                  conventionally traded ETFs.                             the public interest; (ii) for the protection          submitted on or before August 26, 2016.
                                                     These developments could                             of investors; or (iii) otherwise in                     For the Commission, by the Division of
                                                  significantly enhance competition to the                furtherance of the purposes of the Act.               Trading and Markets, pursuant to delegated
                                                  benefit of the markets and investors.                   If the Commission takes such action, the              authority.10
                                                  C. Self-Regulatory Organization’s                       Commission shall institute proceedings                Robert W. Errett,
                                                  Statement on Comments on the                            to determine whether the proposed rule                Deputy Secretary.
                                                  Proposed Rule Change Received From                      should be approved or disapproved                     [FR Doc. 2016–18569 Filed 8–4–16; 8:45 am]
                                                  Members, Participants, or Others                        IV. Solicitation of Comments                          BILLING CODE 8011–01–P

                                                    Written comments were neither                           Interested persons are invited to
                                                  solicited nor received.                                 submit written data, views, and
                                                                                                                                                                SECURITIES AND EXCHANGE
                                                  III. Date of Effectiveness of the                       arguments concerning the foregoing,
                                                                                                                                                                COMMISSION
                                                  Proposed Rule Change and Timing for                     including whether the proposed rule
                                                  Commission Action                                       change is consistent with the Act.                    [Release No. 34–78449; File No. SR–BOX–
                                                                                                          Comments may be submitted by any of                   2016–26]
                                                     Because the foregoing proposed rule                  the following methods:
                                                  change does not: (i) Significantly affect                                                                     Self-Regulatory Organizations; BOX
                                                  the protection of investors or the public               Electronic Comments                                   Options Exchange LLC; Notice of
                                                  interest; (ii) impose any significant                     • Use the Commission’s Internet                     Filing and Immediate Effectiveness of
                                                  burden on competition; and (iii) become                 comment form (http://www.sec.gov/                     a Proposed Rule Change To Amend
                                                  operative for 30 days from the date on                  rules/sro.shtml); or                                  the BOX Rules Regarding Participants
                                                  which it was filed, or such shorter time                  • Send an email to rule-                            and Associated Persons Who Are or
                                                  as the Commission may designate, the                    comments@sec.gov. Please include File                 Become Subject to a Statutory
                                                  proposed rule change has become                         Number SR–NASDAQ–2016–105 on the                      Disqualification
                                                  effective pursuant to section 19(b)(3)(A)               subject line.
                                                                                                                                                                August 1, 2016.
                                                  of the Act 7 and Rule 19b–4(f)(6)                       Paper Comments                                           Pursuant to section 19(b)(1) of the
                                                  thereunder.8 The Exchange believes that                                                                       Securities Exchange Act of 1934
                                                  this proposed rule change is properly                      • Send paper comments in triplicate
                                                                                                          to Secretary, Securities and Exchange                 (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                  designated as non-controversial because                                                                       notice is hereby given that on July 25,
                                                  it enhances clarity and operational                     Commission, 100 F Street NE.,
                                                                                                          Washington, DC 20549–1090.                            2016, BOX Options Exchange LLC (the
                                                  transparency without modifying                                                                                ‘‘Exchange’’) filed with the Securities
                                                  members’ rights or obligations.                         All submissions should refer to File
                                                                                                          Number SR–NASDAQ–2016–105. This                       and Exchange Commission
                                                     The Exchange has asked the
                                                                                                          file number should be included on the                 (‘‘Commission’’) the proposed rule
                                                  Commission to waive the 30-day
                                                                                                          subject line if email is used. To help the            change as described in Items I, II, and
                                                  operative delay so that the proposal may
                                                                                                          Commission process and review your                    III below, which Items have been
                                                  become operative immediately upon
                                                                                                          comments more efficiently, please use                 prepared by the self-regulatory
                                                  filing. The Exchange argues that waiver
                                                                                                          only one method. The Commission will                  organization. The Commission is
                                                  of the 30-day operative delay is
                                                                                                          post all comments on the Commission’s                 publishing this notice to solicit
                                                  consistent with the protection of
                                                                                                          Internet Web site (http://www.sec.gov/                comments on the proposed rule from
                                                  investors and the public interest
                                                                                                          rules/sro.shtml). Copies of the                       interested persons.
                                                  because the proposed changes to the
                                                  Fund are consistent with the Exchange                   submission, all subsequent                            I. Self-Regulatory Organization’s
                                                  arguments and Commission findings                       amendments, all written statements                    Statement of the Terms of Substance of
                                                  made in the Prior Release for the listing               with respect to the proposed rule                     the Proposed Rule Change
                                                  and trading of NextShares on the                        change that are filed with the
                                                                                                                                                                   The Exchange proposes to amend the
                                                  Exchange. In the context of the unique                  Commission, and all written
                                                                                                                                                                BOX Rules regarding Participants and
                                                  pricing and trading mechanisms of                       communications relating to the
                                                                                                                                                                associated persons who are or become
                                                  NextShares, the Commission believes                     proposed rule change between the
                                                                                                                                                                subject to a statutory disqualification.
                                                  that waiver of the 30-day operative                     Commission and any person, other than
                                                                                                                                                                The text of the proposed rule change is
                                                  delay with respect to these proposed                    those that may be withheld from the
                                                                                                                                                                available from the principal office of the
                                                  changes to the Fund is consistent with                  public in accordance with the
                                                                                                                                                                Exchange, at the Commission’s Public
                                                  the protection of investors and the                     provisions of 5 U.S.C. 552, will be
                                                                                                                                                                Reference Room and also on the
                                                  public interest and hereby waives the                   available for Web site viewing and
                                                                                                                                                                Exchange’s Internet Web site at http://
                                                  30-day operative delay and designates                   printing in the Commission’s Public
                                                                                                                                                                boxexchange.com.
                                                  the proposed rule change to be operative                Reference Room, 100 F Street NE.,
                                                  upon filing.9                                           Washington, DC 20549, on official                     II. Self-Regulatory Organization’s
                                                     At any time within 60 days of the                    business days between the hours of                    Statement of the Purpose of, and
                                                  filing of the proposed rule change, the                 10:00 a.m. and 3:00 p.m. Copies of such               Statutory Basis for, the Proposed Rule
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                          filing will also be available for                     Change
                                                    7 15  U.S.C. 78s(b)(3)(A).                            inspection and copying at the principal                  In its filing with the Commission, the
                                                    8 17  CFR 240.19b–4(f)(6).                            office of the Exchange. All comments                  self-regulatory organization included
                                                     9 For purposes only of waiving the 30-day
                                                                                                          received will be posted without change;
                                                  operative delay, the Commission has also
                                                  considered the proposed rule’s impact on
                                                                                                          the Commission does not edit personal                   10 17 CFR 200.30–3(a)(12).
                                                  efficiency, competition, and capital formation. See     identifying information from                            1 15 U.S.C. 78s(b)(1).
                                                  15 U.S.C. 78c(f).                                       submissions. You should submit only                     2 17 CFR 240.19b–4.




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                                                  51948                           Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices

                                                  statements concerning the purpose of,                   statutory disqualification within BOX                   Lastly, the Exchange proposes to add
                                                  and basis for, the proposed rule change                 Rule 2040(a)(3). The Exchange also                    Interpretive Material which allows the
                                                  and discussed any comments it received                  proposes to delete the language that                  Exchange to waive the provisions of
                                                  on the proposed rule change. The text                   allows a person to become a Participant               Rule 2040 when a proceeding is
                                                  of these statements may be examined at                  or continue as a Participant where,                   pending before another self-regulatory
                                                  the places specified in Item IV below.                  pursuant to Rules 19d–1, 19d–2, 19d–3                 organization (‘‘SRO’’) or similar
                                                  The self-regulatory organization has                    and 19h–1 of the Act, the Commission                  association to determine whether to
                                                  prepared summaries, set forth in                        has issued an order providing relief                  permit a Participant or associated
                                                  sections A, B, and C below, of the most                 from such a disqualification and                      person to become or continue being
                                                  significant aspects of such statements.                 permitting such a person to become a                  Participant or associated person
                                                                                                          Participant. The Exchange believes that               notwithstanding a statutory
                                                  A. Self-Regulatory Organization’s
                                                                                                          this language is obsolete.                            disqualification. The Exchange notes
                                                  Statement of the Purpose of, and                           The Exchange then proposes to add                  that this proposed rule change is
                                                  Statutory Basis for, the Proposed Rule                  three more situations with regard to                  substantially similar to the comparable
                                                  Change                                                  whether a person may become a                         Rules of the Chicago Board Options
                                                  1. Purpose                                              Participant or continue as a Participant              Exchange (‘‘CBOE’’).6 Further, in the
                                                     The purpose of the proposed rule                     in any capacity on the Exchange. The                  event the Exchange determines to waive
                                                  change is to amend Rule 2040                            additional restrictions are (1) when such             the provisions of this Rule with respect
                                                  (Restrictions) to add language which                    person fails to meet any of the                       to a Participant or associated person, the
                                                  provides the Exchange with the                          qualification requirements for becoming               Exchange shall determine whether the
                                                  discretion to determine whether to                      a Participant or associated with a                    Exchange will concur in any Exchange
                                                  permit a person to become an Options                    Participant after approval thereof; (2)               Act Rule 19h–1 filing made by another
                                                  Participant or an associated person of a                such person fails to meet any condition               SRO or similar association with respect
                                                  Participant or continue as a Participant                placed by the Exchange on such                        to the Participant or associated person.
                                                  or in association with a Participant on                 Participant or association with a
                                                                                                                                                                2. Statutory Basis
                                                  the Exchange.                                           Participant; and (3) such person violates
                                                                                                          any agreement with the Exchange. The                     The Exchange believes that the
                                                     Currently, Rule 2040 restricts any
                                                                                                          Exchange proposes these additions in                  proposal is consistent with the
                                                  persons from becoming an Options
                                                                                                          order to allow the Exchange more                      requirements of section 6(b) of the Act,7
                                                  Participant or continuing as an Options
                                                                                                          discretion in its determination as to                 in general, and section 6(b)(5) of the
                                                  Participant where (1) such person is
                                                                                                          whether a person may become or                        Act,8 in particular, in that it is designed
                                                  other than a natural person and is not
                                                                                                          continue as a Participant or in                       to prevent fraudulent and manipulative
                                                  a registered broker or dealer, (2) such
                                                                                                          association with a Participant.                       acts and practices, to promote just and
                                                  person is a natural person who is not
                                                                                                             The Exchange also proposes to add                  equitable principles of trade, to foster
                                                  either a registered broker or dealer or
                                                                                                          language with regard to a Participant or              cooperation and coordination with
                                                  associated with a registered broker or
                                                                                                          associated person that becomes subject                persons engaged in facilitating
                                                  dealer, (3) such person is subject to a
                                                                                                          to a statutory disqualification under the             transactions in securities, to remove
                                                  statutory disqualification,3 except that a
                                                                                                          Exchange Act. The proposed rule would                 impediments to and perfect the
                                                  person may become a Participant or
                                                                                                          allow a Participant or associated person              mechanism of a free and open market
                                                  continue as a Participant where,
                                                                                                          who becomes subject to a statutory                    and a national market system, and, in
                                                  pursuant to Rules 19d–1, 19d–2, 19d–3
                                                                                                          disqualification and who wants to                     general to protect investors and the
                                                  and 19h–1 of the Act, the Commission
                                                                                                          continue as a Participant of the                      public interest.
                                                  has issued an order providing relief
                                                                                                          Exchange or in association with a                        The Exchange believes that the
                                                  from such a disqualification and
                                                                                                          Participant, to submit a request to the               proposed rule changes are consistent
                                                  permitting such a person to become a
                                                                                                          Exchange seeking to continue as a                     with the requirements above.
                                                  Participant, or (4) such person is not a
                                                                                                          Participant or in association with a                  Specifically, the Exchange believes the
                                                  member of another registered national
                                                                                                          Participant notwithstanding the                       proposed changes will better enable the
                                                  securities exchange or association.
                                                                                                          statutory disqualification.5                          Exchange to use its discretion in
                                                     The Exchange notes that the proposed
                                                                                                             The Exchange also proposes to add                  determining whether a person may
                                                  rule changes below are substantially
                                                                                                          language which allows Participants and                become or continue as a Participant or
                                                  similar to the Rules of the International
                                                                                                          associated persons whose request to                   associated person. Because of the
                                                  Securities Exchange (‘‘ISE’’).4 The
                                                                                                          become a Participant is denied or                     discretionary language and additional
                                                  Exchange first proposes to amend the
                                                                                                          conditioned, or any person whose                      restrictions, the Exchange may consider
                                                  language of Rule 2040 to give itself the
                                                                                                          association with a Participant is denied              additional circumstances when
                                                  discretion to determine if a restriction
                                                                                                          or conditioned pursuant to the                        determining whether a person may
                                                  on a Participant becoming or continuing
                                                                                                          restrictions codified in Rule 2040(a),                become or continue as a Participant or
                                                  on as an Options Participant is
                                                                                                          and any Participant or person associated              associated person on the Exchange.
                                                  appropriate.                                                                                                     The Exchange believes that Proposed
                                                     The Exchange then proposes to                        with a Participant who is not permitted
                                                                                                          to continue as a Participant or be an                 Rule 2040(c) regarding any person or
                                                  amend BOX Rule 2040(a)(3).
                                                                                                          associate with a Participant or to which              Participant’s ability to appeal a denied
                                                  Specifically, the Exchange proposes to
                                                  add a reference to Section 3(a)(39) of the              association is conditioned to appeal the
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                                                                                  6 See Securities Exchange Release No. 43056, 65
                                                  Exchange Act for the definition of                      Exchange’s decision under Rule 1300
                                                                                                                                                                FR 46524 (July 28, 2000) (Order Approving
                                                                                                          (Review of Certain Exchange Actions) of               Proposed Rule Change and Notice of Filing and
                                                    3 The Exchange uses the Securities Exchange Act       the Rules.                                            Order Granting Accelerated Approval to
                                                  of 1934 definition of statutory disqualification. See                                                         Amendment No. 3 to the Proposed Rule Change by
                                                  15 U.S.C. 78c(a)(39).                                     5 The Participant or person associated with a       the Chicago Board Options Exchange, Inc. Relating
                                                    4 See Securities Exchange Release No. 42455, 65       Participant must submit the request within thirty     to Membership Rules) (SR–CBOE–99–15).
                                                                                                                                                                  7 15 U.S.C. 78f(b).
                                                  FR 11401 (March 2, 2000) (Order Granting                (30) days of becoming subject to a statutory
                                                  Registration as a National Securities Exchange).        disqualification.                                       8 15 U.S.C. 78f(b)(5).




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                                                                                 Federal Register / Vol. 81, No. 151 / Friday, August 5, 2016 / Notices                                                 51949

                                                  or conditioned request to become or                     19(b)(3)(A) of the Act and Rule 19b–                  the Commission does not edit personal
                                                  continue as a Participant or to associate               4(f)(6) thereunder.                                   identifying information from
                                                  with a Participant is reasonable because                   At any time within 60 days of the                  submissions. You should submit only
                                                  it provides a fair procedure for the                    filing of the proposed rule change, the               information that you wish to make
                                                  Participants and persons associated                     Commission summarily may                              available publicly.
                                                  with Participants pursuant to Rule                      temporarily suspend such rule change if                 All submissions should refer to File
                                                  11000 (Summary Suspension).                             it appears to the Commission that such                Number SR–BOX–2016–26 and should
                                                     The Exchange also believes the                       action is necessary or appropriate in the             be submitted on or before August 26,
                                                  proposed rule change regarding the                      public interest, for the protection of                2016.
                                                  waiver of the provisions of Rule 2040                   investors, or otherwise in furtherance of
                                                                                                                                                                  For the Commission, by the Division of
                                                  will better enable the Exchange to focus                the purposes of the Act. If the                       Trading and Markets, pursuant to delegated
                                                  Exchange resources on other matters                     Commission takes such action, the                     authority.11
                                                  while another SRO or similar                            Commission shall institute proceedings                Robert W. Errett,
                                                  association is determining whether to                   to determine whether the proposed rule
                                                                                                                                                                Deputy Secretary.
                                                  permit a Participant or associated                      should be approved or disapproved.
                                                                                                                                                                [FR Doc. 2016–18567 Filed 8–4–16; 8:45 am]
                                                  person to become or continue being a                    IV. Solicitation of Comments                          BILLING CODE 8011–01–P
                                                  Participant or associated person on the
                                                                                                            Interested persons are invited to
                                                  exchange.
                                                                                                          submit written data, views and
                                                     Lastly, the Exchange believes that                   arguments concerning the foregoing,                   SECURITIES AND EXCHANGE
                                                  amending the language in BOX Rule                       including whether the proposed rule                   COMMISSION
                                                  2040(a)(3) is appropriate, as the added                 change is consistent with the Act.
                                                  language which defers to the Exchange                                                                         [Release No. 34–78405; File No. SR–BX–
                                                                                                          Comments may be submitted by any of                   2016–044]
                                                  Act for a particular definition, will add               the following methods:
                                                  clarity to the rules. Further, the                                                                            Self-Regulatory Organizations;
                                                  Exchange believes is it reasonable to                   Electronic Comments
                                                                                                                                                                NASDAQ BX, Inc.; Notice of Filing and
                                                  remove obsolete language in BOX Rule                      • Use the Commission’s Internet                     Immediate Effectiveness of Proposed
                                                  2040(a)(3) because the Exchange is                      comment form (http://www.sec.gov/                     Rule Change To Update Public
                                                  eliminating any potential for confusion                 rules/sro.shtml); or                                  Disclosure of Exchange Usage of
                                                  by simplifying the Exchange Rules,                        • Send an email to rule-comments@                   Market Data
                                                  ensuring that Participants, regulators,                 sec.gov. Please include File Number SR–
                                                  and the public can more easily navigate                 BOX–2016–26 on the subject line.                      July 25, 2016.
                                                  the Exchange’s Rulebook.
                                                                                                          Paper Comments                                        Correction
                                                  B. Self-Regulatory Organization’s                         • Send paper comments in triplicate                    In notice document 2016–17908
                                                  Statement on Burden on Competition                      to Secretary, Securities and Exchange                 appearing on pages 50041–50042 in the
                                                    The Exchange does not believe that                    Commission, 100 F Street NE.,                         issue of July 29, 2016, make the
                                                  the proposed rule change will impose                    Washington, DC 20549–1090.                            following correction:
                                                  any burden on competition not                           All submissions should refer to File                     On page 50041, in the first column,
                                                  necessary or appropriate in furtherance                 Number SR–BOX–2016–26. This file                      the File No. in the heading is corrected
                                                  of the purposes of the Act.                             number should be included on the                      to read as set forth above.
                                                                                                          subject line if email is used. To help the
                                                  C. Self-Regulatory Organization’s                                                                             [FR Doc. C1–2016–17908 Filed 8–4–16; 8:45 am]
                                                                                                          Commission process and review your
                                                  Statement on Comments on the                                                                                  BILLING CODE 1505–01–D
                                                                                                          comments more efficiently, please use
                                                  Proposed Rule Change Received From
                                                                                                          only one method. The Commission will
                                                  Members, Participants, or Others
                                                                                                          post all comments on the Commission’s                 SECURITIES AND EXCHANGE
                                                    The Exchange has neither solicited                    Internet Web site (http://www.sec.gov/                COMMISSION
                                                  nor received comments on the proposed                   rules/sro.shtml). Copies of the
                                                  rule change.                                            submission, all subsequent                            [Release No. 34–78450; File No. SR–CBOE–
                                                                                                          amendments, all written statements                    2016–051)
                                                  III. Date of Effectiveness of the
                                                  Proposed Rule Change and Timing for                     with respect to the proposed rule
                                                                                                          change that are filed with the                        Self-Regulatory Organizations;
                                                  Commission Action                                                                                             Chicago Board Options Exchange,
                                                                                                          Commission, and all written
                                                    (a) This proposed rule change is filed                communications relating to the                        Incorporated; Notice of Filing and
                                                  pursuant to paragraph (A) of section                    proposed rule change between the                      Immediate Effectiveness of a Proposed
                                                  19(b)(3) of the Exchange Act 9 and Rule                 Commission and any person, other than                 Rule Change Relating to the Series 9/
                                                  19b–4(f)(6) thereunder.10                               those that may be withheld from the                   10 Examination Program
                                                    (b) This proposed rule change does                    public in accordance with the                         August 1, 2016.
                                                  not significantly affect the protection of              provisions of 5 U.S.C. 552, will be                      Pursuant to Section 19(b)(1) of the
                                                  investors or the public interest, does not              available for Web site viewing and                    Securities Exchange Act of 1934 (the
                                                  impose any significant burden on                        printing in the Commission’s Public                   ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                  competition, and, by its terms, does not                Reference Room, on official business
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                                                                                notice is hereby given that on July 27,
                                                  become operative for 30 days after the                  days between the hours of 10:00 a.m.                  2016, Chicago Board Options Exchange,
                                                  date of the filing, or such shorter time                and 3:00 p.m., located at 100 F Street                Incorporated (the ‘‘Exchange’’ or
                                                  as the Commission may designate, it has                 NE., Washington, DC 20549. Copies of                  ‘‘CBOE’’) filed with the Securities and
                                                  become effective pursuant to section                    such filing also will be available for
                                                                                                          inspection and copying at the principal                 11 17CFR 200.30–3(a)(12).
                                                    9 15 U.S.C. 78s(b)(3)(A).                             office of the Exchange. All comments                    1 15 U.S.C. 78s(b)(1).
                                                    10 17 CFR 240.19b–4(f)(6).                            received will be posted without change;                 2 17 CFR 240.19b–4.




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Document Created: 2016-08-05 06:43:17
Document Modified: 2016-08-05 06:43:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 51947 

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