81 FR 54147 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (“BOX”) Options Facility
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 157 (August 15, 2016)
Federal Register Volume 81, Issue 157 (August 15, 2016)
| Page Range | 54147-54149 | |
| FR Document | 2016-19319 |
[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)] [Notices] [Pages 54147-54149] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-19319] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78514; File No. SR-BOX-2016-38] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (``BOX'') Options Facility August 9, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on July 29, 2016, BOX Options Exchange LLC (the ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to [[Page 54148]] solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is filing with the Securities and Exchange Commission (``Commission'') a proposed rule change to amend the Fee Schedule to adjust certain fees in Section I.B. of the BOX Fee Schedule on the BOX Market LLC (``BOX'') options facility. While changes to the fee schedule pursuant to this proposal will be effective upon filing, the changes will become operative on August 1, 2016. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission's Public Reference Room and also on the Exchange's Internet Web site at http://boxexchange.com. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend the Fee Schedule for trading on BOX to adjust certain fees in Section I.B. of the BOX Fee Schedule. Exchange Fees Primary Improvement Order Under the tiered fee schedule for Primary Improvement Orders, the Exchange assesses a per contract execution fee to all Primary Improvement Order executions initiated by the particular Initiating Participant. Percentage thresholds are calculated on a monthly basis by totaling the Initiating Participant's Primary Improvement Order volume submitted to BOX, relative to the total national Customer volume in multiply-listed options classes. The Exchange proposes to adjust the fee assessed in Tier 5. Specifically, the Exchange proposes to reduce the fee to $0.02 from $0.05. The Exchange notes that it is not proposing any changes to the percentage thresholds and the quantity submitted will continue to be calculated on a monthly basis by totaling the Initiating Participant's Primary Improvement Order volume submitted to BOX, relative to the total national Customer volume in multiply- listed options classes. BOX Volume Rebate (``BVR'') Next, the Exchange proposes to adjust a rebate within the BVR. Under the BVR, the Exchange offers a tiered per contract rebate for all PIP Orders and COPIP orders of 100 contracts and under. Percentage thresholds are calculated on a monthly basis by totaling the Participant's PIP and COPIP volume submitted to BOX, relative to the total national Customer volume in multiply-listed options classes. The Exchange proposes to increase the rebate in Tier 5 for PIP Orders to $0.12 from $0.10. The Exchange notes that it is not proposing any changes to the percentage thresholds and the quantity submitted will continue to be calculated on a monthly basis by totaling the Participant's PIP and COPIP volume submitted to BOX, relative to the total national Customer volume in multiply-listed options classes. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act, in general, and Section 6(b)(4) and 6(b)(5)of the Act,\5\ in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among BOX Participants and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that reducing the Primary Improvement Order fee to $0.02 for Initiating Participants who reach Tier 5 is reasonable, equitable and not unfairly discriminatory. The reduced fee is equitable and not unfairly discriminatory as it is available to all BOX Options Participants that initiate Auction Transactions, and they may choose whether or not to take advantage of the discounted fees. The Exchange believes that the proposed fee remains reasonable and competitive when compared to the auction transaction fees on other exchanges.\6\ --------------------------------------------------------------------------- \6\ Comparative fees at other exchanges range from $0.05 to $0.20. See Section IV of the Phlx Pricing Schedule entitled ``PIXL Pricing''; International Securities Exchange (``ISE'') Schedule of Fees, Section I. Regular Order Fees and Rebates ``Select Symbols.'' --------------------------------------------------------------------------- The Exchange also believes the proposed change to the BVR in Section I.B. of the BOX Fee Schedule is reasonable, equitable and not unfairly discriminatory. The BVR was adopted to attract Public Customer order flow to the Exchange by offering these Participants incentives to submit their PIP and COPIP Orders to the Exchange and the Exchange believes it is appropriate to now amend a specific rebate within the BVR. The Exchange believes it is equitable and not unfairly discriminatory to amend the BVR, as all Participants have the ability to qualify for a rebate, and rebates are provided equally to qualifying Participants at each tier. Finally, the Exchange believes it is reasonable and appropriate to continue to provide incentives for Public Customers, which will result in greater liquidity and ultimately benefit all Participants trading on the Exchange. Other exchanges employ similar incentive programs;\7\ and the Exchange believes that the proposed change is reasonable and competitive when compared to incentive fees at other exchanges. --------------------------------------------------------------------------- \7\ See Section B of the PHLX Pricing Schedule entitled ``Customer Rebate Program;'' ISE Gemini's Qualifying Tier Thresholds (page 6 of the ISE Gemini Fee Schedule); and CBOE's Volume Incentive Program (VIP). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange is simply proposing to amend certain fees and rebates for Auction Transactions within the BOX Fee Schedule. The Exchange believes that the volume based rebates and fees increase intermarket and intramarket competition by incenting Participants to direct their order flow to the exchange, which benefits all participants by providing more trading opportunities and improves competition on the Exchange. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Exchange Act \8\ and [[Page 54149]] Rule 19b-4(f)(2) thereunder,\9\ because it establishes or changes a due, or fee. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(ii). \9\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend the rule change if it appears to the Commission that the action is necessary or appropriate in the public interest, for the protection of investors, or would otherwise further the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BOX-2016-38 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-2016-38. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street, NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BOX-2016-38, and should be submitted on or before September 6, 2016. --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-19319 Filed 8-12-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices 54147
is applicable when the monthly rate of (C) Clearing Agency’s Statement on Commission and any person, other than
return on investment of cash in the Comments on the Proposed Rule those that may be withheld from the
Clearing Fund is equal to or greater than Change Received From Members, public in accordance with the
0.25%. Participants, or Others provisions of 5 U.S.C. 552, will be
NSCC has not received or solicited available for Web site viewing and
Because the Clearing Fund
any written comments relating to this printing in the Commission’s Public
Maintenance Fee per member is
proposal. NSCC will notify the Reference Room, 100 F Street NE.,
proportional to the average monthly Washington, DC 20549 on official
cash deposit of the member to the Commission of any written comments
received by NSCC. business days between the hours of
Clearing Fund, members that generate 10:00 a.m. and 3:00 p.m. Copies of the
higher levels of activity and make III. Date of Effectiveness of the filing also will be available for
greater use of NSCC’s services will Proposed Rule Change and Timing for inspection and copying at the principal
generally be subject to a higher fee, Commission Action office of NSCC and on DTCC’s Web site
because such members typically The foregoing rule change has become (http://dtcc.com/legal/sec-rule-
maintain higher Clearing Fund deposits effective pursuant to Section filings.aspx). All comments received
pursuant to the Rules. 19(b)(3)(A) 9 of the Act and paragraph (f) will be posted without change; the
NSCC views the proposed of Rule 19b–4 10 thereunder. At any time Commission does not edit personal
implementation of the Clearing Fund within 60 days of the filing of the identifying information from
Maintenance Fee as a prudent way to proposed rule change, the Commission submissions. You should submit only
summarily may temporarily suspend information that you wish to make
minimize the magnitude of, and
such rule change if it appears to the available publicly. All submissions
mitigate the need for, potential future
Commission that such action is should refer to File Number SR–NSCC–
increases in other fees. 2016–002 and should be submitted on
necessary or appropriate in the public
The proposed change will take effect interest, for the protection of investors, or before September 6, 2016.
on August 1, 2016. or otherwise in furtherance of the For the Commission, by the Division of
2. Statutory Basis purposes of the Act. Trading and Markets, pursuant to delegated
authority.11
IV. Solicitation of Comments
Section 17A(b)(3)(D) of the Act 7 Robert W. Errett,
requires that NSCC’s Rules provide for Interested persons are invited to Deputy Secretary.
the equitable allocation of reasonable submit written data, views, and [FR Doc. 2016–19326 Filed 8–12–16; 8:45 am]
dues, fees, and other charges among its arguments concerning the foregoing, BILLING CODE 8011–01–P
including whether the proposed rule
participants. The proposed fee is
change is consistent with the Act.
equitably allocated among members
Comments may be submitted by any of SECURITIES AND EXCHANGE
because it is based on each member’s the following methods:
utilization of NSCC’s services, as COMMISSION
measured by their Clearing Fund Electronic Comments [Release No. 34–78514; File No. SR–BOX–
deposits. In addition, NSCC believes • Use the Commission’s Internet 2016–38]
that the proposed fee is reasonable comment form (http://www.sec.gov/
because it will enable NSCC to better Self-Regulatory Organizations; BOX
rules/sro.shtml); or
• Send an email to rule-comments@ Options Exchange LLC; Notice of
align its revenue with the costs and
sec.gov. Please include File Number SR– Filing and Immediate Effectiveness of
expenses required for NSCC to provide
NSCC–2016–002 on the subject line. a Proposed Rule Change To Amend
services to its members with a nominal
the Fee Schedule on the BOX Market
impact on members. Therefore, NSCC Paper Comments LLC (‘‘BOX’’) Options Facility
believes the proposed rule change is
• Send paper comments in triplicate
consistent with Section 17A(b)(3)(D).8 August 9, 2016.
to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
(B) Clearing Agency’s Statement on Commission, 100 F Street NE., Securities Exchange Act of 1934 (the
Burden on Competition Washington, DC 20549. ‘‘Act’’),1 and Rule 19b–4 thereunder,2
All submissions should refer to File notice is hereby given that on July 29,
NSCC does not believe that the Number SR–NSCC–2016–002. This file
proposed rule change will impose a 2016, BOX Options Exchange LLC (the
number should be included on the ‘‘Exchange’’) filed with the Securities
burden on competition that is not subject line if email is used. To help the and Exchange Commission
necessary or appropriate in furtherance Commission process and review your (‘‘Commission’’) the proposed rule
of the purposes of the Act, because the comments more efficiently, please use change as described in Items I, II, and
proposed fee will be equitably allocated only one method. The Commission will III below, which Items have been
among members based on each post all comments on the Commission’s prepared by the Exchange. The
member’s utilization of NSCC’s services. Internet Web site (http://www.sec.gov/ Exchange filed the proposed rule change
Members that have a higher level of rules/sro.shtml). Copies of the pursuant to Section 19(b)(3)(A)(ii) of the
activities and greater use of NSCC’s submission, all subsequent Act,3 and Rule 19b–4(f)(2) thereunder,4
services will generally be subject to a amendments, all written statements which renders the proposal effective
sradovich on DSK3GMQ082PROD with NOTICES
higher Clearing Fund Maintenance Fee with respect to the proposed rule upon filing with the Commission. The
and members with lower usage will pay change that are filed with the Commission is publishing this notice to
less. Commission, and all written
communications relating to the 11 17 CFR 200.30–3(a)(12).
proposed rule change between the 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
7 15 U.S.C. 78q–1(b)(3)(D). 9 15 U.S.C. 78s(b)(3)(A). 3 15 U.S.C. 78s(b)(3)(A)(ii).
8 Id. 10 17 CFR 240.19b–4(f). 4 17 CFR 240.19b–4(f)(2).
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![Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices 54149
Rule 19b–4(f)(2) thereunder,9 because it office of the Exchange. All comments II. Self-Regulatory Organization’s
establishes or changes a due, or fee. received will be posted without change; Statement of the Purpose of, and
At any time within 60 days of the the Commission does not edit personal Statutory Basis for, the Proposed Rule
filing of the proposed rule change, the identifying information from Change
Commission summarily may submissions. You should submit only In its filing with the Commission, the
temporarily suspend the rule change if information that you wish to make self-regulatory organization included
it appears to the Commission that the available publicly. All submissions statements concerning the purpose of,
action is necessary or appropriate in the should refer to File Number SR–BOX– and basis for, the proposed rule change
public interest, for the protection of and discussed any comments it received
2016–38, and should be submitted on or
investors, or would otherwise further on the proposed rule change. The text
before September 6, 2016.
the purposes of the Act. If the of those statements may be examined at
Commission takes such action, the For the Commission, by the Division of
the places specified in Item IV below.
Commission shall institute proceedings Trading and Markets, pursuant to delegated
authority.10
The Exchange has prepared summaries,
to determine whether the proposed rule set forth in sections A, B, and C below,
should be approved or disapproved. Robert W. Errett, of the most significant parts of such
IV. Solicitation of Comments Deputy Secretary. statements.
[FR Doc. 2016–19319 Filed 8–12–16; 8:45 am]
Interested persons are invited to A. Self-Regulatory Organization’s
submit written data, views, and BILLING CODE 8011–01–P
Statement of the Purpose of, and the
arguments concerning the foregoing, Statutory Basis for, the Proposed Rule
including whether the proposed rule Change
change is consistent with the Act. SECURITIES AND EXCHANGE
Comments may be submitted by any of COMMISSION 1. Purpose
the following methods: The Exchange proposes to amend
[Release No. 34–78512; File No. SR–NYSE– Rule 123D relating to when a DMM may
Electronic Comments 2016–53] reopen a security electronically. The
• Use the Commission’s Internet proposed rule changes would provide
comment form (http://www.sec.gov/ Self-Regulatory Organizations; New greater specificity regarding the
rules/sro.shtml); or York Stock Exchange LLC; Notice of applicable reference price for
• Send an email to rule-comments@ Filing and Immediate Effectiveness of determining when a DMM may effect a
sec.gov. Please include File Number SR– Proposed Rule Change Amending Rule reopening transaction electronically.
BOX–2016–38 on the subject line. 123D Relating to When a DMM May
Background
Paper Comments Reopen a Security Electronically
The Exchange recently amended Rule
• Send paper comments in triplicate August 9, 2016. 123D to specify when DMMs may effect
to Secretary, Securities and Exchange an opening of a security electronically.4
Commission, 100 F Street NE., Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the Rule 123D(a)(1)(B) provides that
Washington, DC 20549–1090. openings may be effectuated manually
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
All submissions should refer to File or electronically (as provided for in Rule
Number SR–BOX–2016–38. This file notice is hereby given that on July 28,
104(b)(ii)) and that Exchange systems
number should be included on the 2016, New York Stock Exchange LLC
will not permit a DMM to open a
subject line if email is used. To help the (‘‘NYSE’’ or the ‘‘Exchange’’) filed with security electronically if a DMM has
Commission process and review your the Securities and Exchange manually entered Floor interest. Rule
comments more efficiently, please use Commission (the ‘‘Commission’’) the 123D(a)(1)(B)(i) further provides that,
only one method. The Commission will proposed rule change as described in except under the conditions set forth in
post all comments on the Commission’s Items I, II, and III below, which Items paragraph (a)(1)(B)(ii) of Rule 123D, a
Internet Web site (http://www.sec.gov/ have been prepared by the self- DMM may not effect an opening
rules/sro.shtml). Copies of the regulatory organization. The electronically if the opening transaction
submission, all subsequent Commission is publishing this notice to will be at a price more than 4% away
amendments, all written statements solicit comments on the proposed rule from the Official Closing Price, as
with respect to the proposed rule change from interested persons. defined in Rule 123C(1)(e), or the
change that are filed with the matched volume will be more than: (a)
Commission, and all written I. Self-Regulatory Organization’s
150,000 shares for securities with an
communications relating to the Statement of the Terms of Substance of
average opening volume of 100,000
proposed rule change between the the Proposed Rule Change shares or fewer in the previous calendar
Commission and any person, other than The Exchange proposes to amend quarter; or (b) 500,000 shares for
those that may be withheld from the Rule 123D relating to when a DMM may securities with an average opening
public in accordance with the volume of over 100,000 shares in the
reopen a security electronically. The
provisions of 5 U.S.C. 552, will be previous calendar quarter.
proposed rule change is available on the
available for Web site viewing and Rule 123D(a)(1)(B)(ii) provides that if
printing in the Commission’s Public Exchange’s Web site at www.nyse.com, as of 9:00 a.m. Eastern Time, the E-mini
at the principal office of the Exchange, S&P 500 Futures are ± 2% from the prior
sradovich on DSK3GMQ082PROD with NOTICES
Reference Room, 100 F Street, NE.,
Washington, DC 20549 on official and at the Commission’s Public day’s closing price of the E-mini S&P
business days between the hours of Reference Room.
10:00 a.m. and 3:00 p.m. Copies of such 4 See Securities Exchange Act Release Nos. 78228
filing also will be available for 10 17 CFR 200.30–3(a)(12). (July 5, 2016), 81 FR 44907(July 11, 2016) (SR–
NYSE–2016–24) (Approval Order) and 77491
inspection and copying at the principal 1 15 U.S.C.78s(b)(1).
(March 31, 2016), 81 FR 20030 (April 6, 2016) (SR–
2 15 U.S.C. 78a.
NYSE–2016–24) (Notice of Filing) (‘‘Opening
9 17 CFR 240.19b–4(f)(2). 3 17 CFR 240.19b–4. Filing’’).
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Document Created: 2016-08-13 02:22:01
Document Modified: 2016-08-13 02:22:01
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 54147 |
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