81_FR_70410 81 FR 70214 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Adopt Participant Fees on the BOX Market LLC (“BOX”) Options Facility

81 FR 70214 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Adopt Participant Fees on the BOX Market LLC (“BOX”) Options Facility

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 196 (October 11, 2016)

Page Range70214-70216
FR Document2016-24423

Federal Register, Volume 81 Issue 196 (Tuesday, October 11, 2016)
[Federal Register Volume 81, Number 196 (Tuesday, October 11, 2016)]
[Notices]
[Pages 70214-70216]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-24423]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79038; File No. SR-BOX-2016-47]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the Fee Schedule To Adopt Participant Fees on the BOX Market LLC 
(``BOX'') Options Facility

October 4, 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 September 28, 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 solicit comments on the proposed rule change from 
interested persons.
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    \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).
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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 
adopt Participant Fees 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 
October 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 establish two Participant Fees; a

[[Page 70215]]

monthly Participant Fee and a one-time Initiation Fee applicable to all 
BOX Participants.
    First, the Exchange proposes to adopt a Participant Fee of $1,500 
per month, applicable to all BOX Participants. Currently, the Exchange 
does not assess BOX Participants a fee to access its options market. 
The Exchange believes the Participant Fee is competitive with fees at 
other option exchanges.\5\
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    \5\ See The Chicago Board Options Exchange, Incorporated's Fees 
Schedule. Per month a Market Maker Trading Permit is $5,500, an SPX 
Tier Appointment is $3,000, a VIX Tier Appointment is $2,000, and an 
Electronic Access Permit is $1,600. See also the International 
Securities Exchange LLC's Schedule of Fees. Per month an Electronic 
Access Member is assessed $500.00 for membership and a market maker 
is assessed from $2,000 to $4,000 per membership depending on the 
type of market maker. See also C2 Options Exchange, Incorporated's 
Fees Schedule. Per month, a market-maker is assessed a $5,000 permit 
fee, an Electronic Access Permit is assessed a $1,000 permit fee. 
See also NYSE Arca, Inc.'s Fee Schedule. Per month, a Clearing Firm 
is assessed a $1,000 per month fee for the first Options Trading 
Permit (``OTP'') and $250 thereafter, and a market maker is assessed 
a permit based on the maximum number of OTPs held by an OTP Firm or 
OTP Holder during a calendar month ranging from $1,000 to $6,000 a 
month.
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    Next, the Exchange proposes to adopt a one-time Initiation Fee of 
$2,500 which will be assessed to all new BOX Participants upon their 
initial connection to the options market, so the Exchange can recoup 
some of the costs associated with processing and preparing technology 
in order for the new BOX Participant to be able to trade on BOX. The 
Exchange's proposed one-time Initiation Fee is similar to and generally 
lower than one time application fees in place at other options 
exchanges.\6\
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    \6\ The Chicago Board Options Exchange, Incorporated (``CBOE'') 
charges $3,000 for an individual applicant and $5,000 for an 
applicant organization and at the International Securities Exchange, 
LLC (``ISE'') charges $7,500 for a Primary Market Maker, $5,500 for 
a Competitive Market Maker and $3,500 for an Electronic Access 
Member.
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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, in general, and Section 
6(b)(4) and 6(b)(5) of the Act,\7\ 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.
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    \7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange's proposal to adopt a BOX Options Participant Fee of 
$1,500 per month is reasonable because the Exchange is seeking to 
recoup costs related to membership administration. The proposed fee is 
competitive with similar fees at other options exchanges.\8\ Lastly, 
the Exchange believes the Participant Fee of $1,500 is equitable and 
not unfairly discriminatory because the Participant Fee will be 
assessed uniformly to each BOX Participant, regardless of Participant 
type.
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    \8\ See supra note 5.
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    The Exchange also believes that its one-time Initiation Fee of 
$2,500 is reasonable, equitable and not unfairly discriminatory. As 
described above, the one-time Initiation Fee is comparable to other 
similar fees in place at other options exchanges and is designed to 
cover costs associated with processing and preparing technology in 
order for a Participant to begin trading on BOX. The Exchange believes 
that the Initiation Fee is equitable and not unfairly discriminatory, 
as it will be assessed uniformly to each new BOX Options Participant, 
regardless of Participant type.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. In terms of inter-market 
competition, the Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues if they deem fee levels at a particular venue to be 
excessive, or rebate opportunities available at other venues to be more 
favorable. In such an environment, the Exchange must continually adjust 
its fees to remain competitive with other exchanges and with 
alternative trading systems that have been exempted from compliance 
with the statutory standards applicable to exchanges. Because 
competitors are free to modify their own fees in response and because 
market participants may readily adjust their order routing practices, 
the Exchange believes that the degree to which fee changes in this 
market may impose any burden on competition is extremely limited.
    In terms of intra-market competition, the Exchange's proposal to 
adopt a BOX Options Participant Fee of $1,500 per month and a one-time 
Initiation Fee of $2,500 does not impose an undue burden on competition 
because the Exchange would uniformly assess the same Participant Fees 
to each BOX Options Participant. If the changes proposed herein are 
unattractive to market participants, it is likely that the Exchange 
will lose Participants. Accordingly, the Exchange does not believe that 
the proposed changes will impair the ability of members or competing 
order execution venues to maintain their competitive standing in the 
financial markets.

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 \9\ and Rule 19b-4(f)(2) 
thereunder,\10\ because it establishes or changes a due, or fee.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 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 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-2016-47 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-2016-47. 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

[[Page 70216]]

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-2016-47, and should be submitted on or before 
November 1, 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. 2016-24423 Filed 10-7-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                    70214                        Federal Register / Vol. 81, No. 196 / Tuesday, October 11, 2016 / Notices

                                                    Investment Transaction for all purposes                 may be, in such Co-Investment                         ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                    and subject to the other conditions set                 Transaction. If any transaction fee is to             notice is hereby given that on
                                                    forth in the application.                               be held by an Adviser pending                         September 28, 2016, BOX Options
                                                      9. The Non-Interested Directors of                    consummation of the transaction, the                  Exchange LLC (the ‘‘Exchange’’) filed
                                                    each Regulated Fund will be provided                    fee will be deposited into an account                 with the Securities and Exchange
                                                    quarterly for review all information                    maintained by such Adviser at a bank or               Commission (‘‘Commission’’) the
                                                    concerning Potential Co-Investment                      banks having the qualifications                       proposed rule change as described in
                                                    Transactions and Co-Investment                          prescribed in section 26(a)(1) of the Act,            Items I, II, and III below, which Items
                                                    Transactions, including investments                     and the account will earn a competitive               have been prepared by the Exchange.
                                                    made by other Regulated Funds or                        rate of interest that will also be divided            The Exchange filed the proposed rule
                                                    Affiliated Funds that the Regulated                     pro rata among the participating                      change pursuant to Section
                                                    Fund considered but declined to                         Regulated Funds and Affiliated Funds                  19(b)(3)(A)(ii) of the Act,3 and Rule
                                                    participate in, so that the Non-Interested              based on the amounts they invest in                   19b–4(f)(2) thereunder,4 which renders
                                                    Directors may determine whether all                     such Co-Investment Transaction. None                  the proposal effective upon filing with
                                                    investments made during the preceding                   of the Affiliated Funds, the Advisers,                the Commission. The Commission is
                                                    quarter, including those investments                    the other Regulated Funds or any                      publishing this notice to solicit
                                                    that the Regulated Fund considered but                  affiliated person of the Regulated Funds              comments on the proposed rule change
                                                    declined to participate in, comply with                 or Affiliated Funds will receive                      from interested persons.
                                                    the conditions of the Order. In addition,               additional compensation or                            I. Self-Regulatory Organization’s
                                                    the Non-Interested Directors will                       remuneration of any kind as a result of               Statement of the Terms of the Substance
                                                    consider at least annually the continued                or in connection with a Co-Investment                 of the Proposed Rule Change
                                                    appropriateness for the Regulated Fund                  Transaction (other than (a) in the case
                                                    of participating in new and existing Co-                of the Regulated Funds and the                           The Exchange is filing with the
                                                    Investment Transactions.                                Affiliated Funds, the pro rata                        Securities and Exchange Commission
                                                      10. Each Regulated Fund will                          transaction fees described above and                  (‘‘Commission’’) a proposed rule change
                                                    maintain the records required by section                fees or other compensation described in               to amend the Fee Schedule to adopt
                                                    57(f)(3) of the Act as if each of the                   condition 2(c)(iii)(C); and (b) in the case           Participant Fees on the BOX Market LLC
                                                    Regulated Funds were a BDC and each                     of an Adviser, investment advisory fees               (‘‘BOX’’) options facility. While changes
                                                    of the investments permitted under                      paid in accordance with the agreement                 to the fee schedule pursuant to this
                                                    these conditions were approved by the                                                                         proposal will be effective upon filing,
                                                                                                            between the Adviser and the Regulated
                                                    Required Majority under section 57(f) of                                                                      the changes will become operative on
                                                                                                            Fund or Affiliated Fund).
                                                    the Act.                                                                                                      October 1, 2016. The text of the
                                                                                                               14. If the Holders own in the aggregate
                                                      11. No Non-Interested Director of a                                                                         proposed rule change is available from
                                                                                                            more than 25% of the Shares of a
                                                    Regulated Fund will also be a director,                                                                       the principal office of the Exchange, at
                                                                                                            Regulated Fund, then the Holders will
                                                    general partner, managing member or                                                                           the Commission’s Public Reference
                                                                                                            vote such Shares as directed by an
                                                    principal, or otherwise an ‘‘affiliated                                                                       Room and also on the Exchange’s
                                                                                                            independent third party when voting on
                                                    person’’ (as defined in the Act) of an                                                                        Internet Web site at http://
                                                                                                            (1) the election of directors; (2) the
                                                    Affiliated Fund.                                                                                              boxexchange.com.
                                                                                                            removal of one or more directors; or (3)
                                                      12. The expenses, if any, associated                  any other matter under either the Act or              II. Self-Regulatory Organization’s
                                                    with acquiring, holding or disposing of                 applicable State law affecting the                    Statement of the Purpose of, and
                                                    any securities acquired in a Co-                        Board’s composition, size or manner of                Statutory Basis for, the Proposed Rule
                                                    Investment Transaction (including,                      election.                                             Change
                                                    without limitation, the expenses of the                   For the Commission, by the Division of                 In its filing with the Commission, the
                                                    distribution of any such securities                     Investment Management, under delegated                Exchange included statements
                                                    registered for sale under the Securities                authority.                                            concerning the purpose of and basis for
                                                    Act) will, to the extent not payable by                 Robert W. Errett,                                     the proposed rule change and discussed
                                                    the Advisers under their respective                     Deputy Secretary.                                     any comments it received on the
                                                    investment advisory agreements with                                                                           proposed rule change. The text of these
                                                                                                            [FR Doc. 2016–24428 Filed 10–7–16; 8:45 am]
                                                    Affiliated Funds and the Regulated                                                                            statements may be examined at the
                                                                                                            BILLING CODE 8011–01–P
                                                    Funds, be shared by the Regulated                                                                             places specified in Item IV below. The
                                                    Funds and the Affiliated Funds in                                                                             Exchange has prepared summaries, set
                                                    proportion to the relative amounts of the                                                                     forth in Sections A, B, and C below, of
                                                                                                            SECURITIES AND EXCHANGE
                                                    securities held or to be acquired or                                                                          the most significant aspects of such
                                                                                                            COMMISSION
                                                    disposed of, as the case may be.                                                                              statements.
                                                      13. Any transaction fee 12 (including
                                                    break-up or commitment fees but                         [Release No. 34–79038; File No. SR–BOX–               A. Self-Regulatory Organization’s
                                                    excluding broker’s fees contemplated by                 2016–47]                                              Statement of the Purpose of, and
                                                    section 17(e) or 57(k) of the Act, as                                                                         Statutory Basis for, the Proposed Rule
                                                                                                            Self-Regulatory Organizations; BOX
                                                    applicable), received in connection with                                                                      Change
                                                                                                            Options Exchange LLC; Notice of
                                                    a Co-Investment Transaction will be                                                                           1. Purpose
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                            Filing and Immediate Effectiveness of
                                                    distributed to the participating                        a Proposed Rule Change To Amend
                                                    Regulated Funds and Affiliated Funds                                                                             The Exchange proposes to amend the
                                                                                                            the Fee Schedule To Adopt Participant                 Fee Schedule for trading on BOX to
                                                    on a pro rata basis based on the amounts                Fees on the BOX Market LLC (‘‘BOX’’)
                                                    they invested or committed, as the case                                                                       establish two Participant Fees; a
                                                                                                            Options Facility
                                                                                                                                                                    1 15 U.S.C. 78s(b)(1).
                                                      12 Applicants are not requesting and the staff is
                                                                                                            October 4, 2016.                                        2 17
                                                    not providing any relief for transaction fees                                                                        CFR 240.19b–4.
                                                    received in connection with any Co-Investment
                                                                                                              Pursuant to Section 19(b)(1) of the                   3 15 U.S.C. 78s(b)(3)(A)(ii).

                                                    Transaction.                                            Securities Exchange Act of 1934 (the                    4 17 CFR 240.19b–4(f)(2).




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                                                                                 Federal Register / Vol. 81, No. 196 / Tuesday, October 11, 2016 / Notices                                             70215

                                                    monthly Participant Fee and a one-time                  The proposed fee is competitive with                   Accordingly, the Exchange does not
                                                    Initiation Fee applicable to all BOX                    similar fees at other options exchanges.8              believe that the proposed changes will
                                                    Participants.                                           Lastly, the Exchange believes the                      impair the ability of members or
                                                      First, the Exchange proposes to adopt                 Participant Fee of $1,500 is equitable                 competing order execution venues to
                                                    a Participant Fee of $1,500 per month,                  and not unfairly discriminatory because                maintain their competitive standing in
                                                    applicable to all BOX Participants.                     the Participant Fee will be assessed                   the financial markets.
                                                    Currently, the Exchange does not assess                 uniformly to each BOX Participant,
                                                                                                            regardless of Participant type.                        C. Self-Regulatory Organization’s
                                                    BOX Participants a fee to access its
                                                                                                              The Exchange also believes that its                  Statement on Comments on the
                                                    options market. The Exchange believes
                                                                                                            one-time Initiation Fee of $2,500 is                   Proposed Rule Change Received From
                                                    the Participant Fee is competitive with
                                                                                                            reasonable, equitable and not unfairly                 Members, Participants, or Others
                                                    fees at other option exchanges.5
                                                      Next, the Exchange proposes to adopt                  discriminatory. As described above, the                  No written comments were either
                                                    a one-time Initiation Fee of $2,500                     one-time Initiation Fee is comparable to               solicited or received.
                                                    which will be assessed to all new BOX                   other similar fees in place at other
                                                                                                            options exchanges and is designed to                   III. Date of Effectiveness of the
                                                    Participants upon their initial                                                                                Proposed Rule Change and Timing for
                                                    connection to the options market, so the                cover costs associated with processing
                                                                                                            and preparing technology in order for a                Commission Action
                                                    Exchange can recoup some of the costs
                                                    associated with processing and                          Participant to begin trading on BOX.                      The foregoing rule change has become
                                                    preparing technology in order for the                   The Exchange believes that the                         effective pursuant to Section
                                                    new BOX Participant to be able to trade                 Initiation Fee is equitable and not                    19(b)(3)(A)(ii) of the Exchange Act 9 and
                                                    on BOX. The Exchange’s proposed one-                    unfairly discriminatory, as it will be                 Rule 19b–4(f)(2) thereunder,10 because
                                                    time Initiation Fee is similar to and                   assessed uniformly to each new BOX                     it establishes or changes a due, or fee.
                                                    generally lower than one time                           Options Participant, regardless of                        At any time within 60 days of the
                                                    application fees in place at other                      Participant type.                                      filing of the proposed rule change, the
                                                    options exchanges.6                                                                                            Commission summarily may
                                                                                                            B. Self-Regulatory Organization’s
                                                                                                                                                                   temporarily suspend the rule change if
                                                    2. Statutory Basis                                      Statement on Burden on Competition
                                                                                                                                                                   it appears to the Commission that the
                                                       The Exchange believes that the                          The Exchange does not believe that                  action is necessary or appropriate in the
                                                    proposal is consistent with the                         the proposed rule change will impose                   public interest, for the protection of
                                                    requirements of Section 6(b) of the Act,                any burden on competition not                          investors, or would otherwise further
                                                    in general, and Section 6(b)(4) and                     necessary or appropriate in furtherance                the purposes of the Act. If the
                                                                                                            of the purposes of the Act. In terms of                Commission takes such action, the
                                                    6(b)(5) of the Act,7 in particular, in that
                                                                                                            inter-market competition, the Exchange                 Commission shall institute proceedings
                                                    it provides for the equitable allocation
                                                                                                            notes that it operates in a highly                     to determine whether the proposed rule
                                                    of reasonable dues, fees, and other
                                                                                                            competitive market in which market                     should be approved or disapproved.
                                                    charges among BOX Participants and
                                                                                                            participants can readily favor competing
                                                    other persons using its facilities and                                                                         IV. Solicitation of Comments
                                                                                                            venues if they deem fee levels at a
                                                    does not unfairly discriminate between
                                                                                                            particular venue to be excessive, or                     Interested persons are invited to
                                                    customers, issuers, brokers or dealers.
                                                                                                            rebate opportunities available at other                submit written data, views, and
                                                       The Exchange’s proposal to adopt a
                                                                                                            venues to be more favorable. In such an                arguments concerning the foregoing,
                                                    BOX Options Participant Fee of $1,500
                                                                                                            environment, the Exchange must                         including whether the proposed rule
                                                    per month is reasonable because the
                                                                                                            continually adjust its fees to remain                  change is consistent with the Act.
                                                    Exchange is seeking to recoup costs                     competitive with other exchanges and
                                                    related to membership administration.                                                                          Comments may be submitted by any of
                                                                                                            with alternative trading systems that                  the following methods:
                                                      5 See The Chicago Board Options Exchange,
                                                                                                            have been exempted from compliance
                                                                                                            with the statutory standards applicable                Electronic Comments
                                                    Incorporated’s Fees Schedule. Per month a Market
                                                    Maker Trading Permit is $5,500, an SPX Tier             to exchanges. Because competitors are                    • Use the Commission’s Internet
                                                    Appointment is $3,000, a VIX Tier Appointment is        free to modify their own fees in                       comment form (http://www.sec.gov/
                                                    $2,000, and an Electronic Access Permit is $1,600.      response and because market
                                                    See also the International Securities Exchange
                                                                                                                                                                   rules/sro.shtml); or
                                                    LLC’s Schedule of Fees. Per month an Electronic         participants may readily adjust their                    • Send an email to rule-
                                                    Access Member is assessed $500.00 for membership        order routing practices, the Exchange                  comments@sec.gov. Please include File
                                                    and a market maker is assessed from $2,000 to           believes that the degree to which fee                  Number SR–BOX–2016–47 on the
                                                    $4,000 per membership depending on the type of          changes in this market may impose any                  subject line.
                                                    market maker. See also C2 Options Exchange,
                                                    Incorporated’s Fees Schedule. Per month, a market-      burden on competition is extremely
                                                                                                                                                                   Paper Comments
                                                    maker is assessed a $5,000 permit fee, an Electronic    limited.
                                                    Access Permit is assessed a $1,000 permit fee. See         In terms of intra-market competition,                 • Send paper comments in triplicate
                                                    also NYSE Arca, Inc.’s Fee Schedule. Per month, a       the Exchange’s proposal to adopt a BOX                 to Secretary, Securities and Exchange
                                                    Clearing Firm is assessed a $1,000 per month fee
                                                    for the first Options Trading Permit (‘‘OTP’’) and      Options Participant Fee of $1,500 per                  Commission, 100 F Street NE.,
                                                    $250 thereafter, and a market maker is assessed a       month and a one-time Initiation Fee of                 Washington, DC 20549–1090.
                                                    permit based on the maximum number of OTPs              $2,500 does not impose an undue                        All submissions should refer to File
                                                    held by an OTP Firm or OTP Holder during a              burden on competition because the
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    calendar month ranging from $1,000 to $6,000 a
                                                                                                                                                                   Number SR–BOX–2016–47. This file
                                                    month.                                                  Exchange would uniformly assess the                    number should be included on the
                                                      6 The Chicago Board Options Exchange,                 same Participant Fees to each BOX                      subject line if email is used. To help the
                                                    Incorporated (‘‘CBOE’’) charges $3,000 for an           Options Participant. If the changes                    Commission process and review your
                                                    individual applicant and $5,000 for an applicant        proposed herein are unattractive to                    comments more efficiently, please use
                                                    organization and at the International Securities
                                                    Exchange, LLC (‘‘ISE’’) charges $7,500 for a Primary
                                                                                                            market participants, it is likely that the             only one method. The Commission will
                                                    Market Maker, $5,500 for a Competitive Market           Exchange will lose Participants.
                                                    Maker and $3,500 for an Electronic Access Member.                                                                9 15   U.S.C. 78s(b)(3)(A)(ii).
                                                      7 15 U.S.C. 78f(b)(4) and (5).                          8 See   supra note 5.                                  10 17   CFR 240.19b–4(f)(2).



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                                                    70216                          Federal Register / Vol. 81, No. 196 / Tuesday, October 11, 2016 / Notices

                                                    post all comments on the Commission’s                   change as described in Items I and II                 A. Self-Regulatory Organization’s
                                                    Internet Web site (http://www.sec.gov/                  below, which Items have been prepared                 Statement of the Purpose of, and the
                                                    rules/sro.shtml). Copies of the                         by the self-regulatory organization. The              Statutory Basis for, the Proposed Rule
                                                    submission, all subsequent                              Commission is publishing this notice to               Change
                                                    amendments, all written statements                      solicit comments on the proposed rule
                                                                                                                                                                  1. Purpose
                                                    with respect to the proposed rule                       change from interested persons.
                                                    change that are filed with the                                                                                   The Exchange proposes to establish
                                                                                                            I. Self-Regulatory Organization’s                     rules to require its members to comply
                                                    Commission, and all written
                                                                                                            Statement of the Terms of Substance of                with the requirements of the Plan,
                                                    communications relating to the
                                                                                                            the Proposed Rule Change                              which is designed to study and assess
                                                    proposed rule change between the
                                                    Commission and any person, other than                      IEX is filing with the Commission a                the impact of increment conventions on
                                                    those that may be withheld from the                     proposed rule change to adopt rules                   the liquidity and trading of the common
                                                    public in accordance with the                           under IEX Rule 11.340 to implement the                stocks of small capitalization
                                                    provisions of 5 U.S.C. 552, will be                     quoting and trading provisions of the                 companies. The Exchange proposes
                                                    available for Web site viewing and                      Regulation NMS Plan to Implement a                    changes to its rules for a two-year pilot
                                                    printing in the Commission’s Public                     Tick Size Pilot Program submitted to the              period that coincides with the Pilot
                                                    Reference Room, 100 F Street NE.,                       Commission pursuant to Rule 608 of                    Period for the Plan, which is currently
                                                    Washington, DC 20549 on official                        Regulation NMS 4 under the Act (the                   scheduled as a two-year pilot to begin
                                                    business days between the hours of                      ‘‘Plan’’),5 and to describe changes to IEX            on October 3, 2016.
                                                    10:00 a.m. and 3:00 p.m. Copies of such                 system functionality necessary to
                                                                                                                                                                  Background
                                                    filing also will be available for                       implement the Plan. The proposed rule
                                                    inspection and copying at the principal                 change is substantially similar to                       On August 25, 2014, NYSE Group,
                                                    office of the Exchange. All comments                    proposed rule changes published by the                Inc., on behalf of BATS Exchange, Inc.,
                                                    received will be posted without change;                 Commission for the NASDAQ Stock                       BATS Y-Exchange, Inc., Chicago Stock
                                                    the Commission does not edit personal                   Market LLC (‘‘Nasdaq’’) to adopt                      Exchange, Inc., EDGA Exchange, Inc.,
                                                    identifying information from                            NASDAQ Rule 4770, which also                          EDGX Exchange, Inc., Financial
                                                    submissions. You should submit only                     implemented the quoting and trading                   Industry Regulatory Authority, Inc.
                                                    information that you wish to make                       provisions of the Plan.6 Accordingly,                 (‘‘FINRA’’), NASDAQ OMX BX, Inc.,
                                                    available publicly. All submissions                     the Exchange has designated this                      NASDAQ OMX PHLX LLC, the Nasdaq
                                                    should refer to File Number SR–BOX–                     proposal as a ‘‘non-controversial’’                   Stock Market LLC, New York Stock
                                                    2016–47, and should be submitted on or                  proposed rule change pursuant to                      Exchange LLC (‘‘NYSE’’), NYSE MKT
                                                    before November 1, 2016.                                Section 19(b)(3)(A) of the Act 7 and                  LLC, and NYSE Arca, Inc. (collectively
                                                                                                            provided the Commission with the                      ‘‘Participants’’), filed with the
                                                      For the Commission, by the Division of                                                                      Commission, pursuant to Section 11A of
                                                    Trading and Markets, pursuant to delegated              notice required by Rule 19b–4(f)(6)(iii)
                                                    authority.11                                            under the Act.8                                       the Act 9 and Rule 608 of Regulation
                                                                                                               The text of the proposed rule change               NMS thereunder, the Plan to Implement
                                                    Robert W. Errett,
                                                                                                            is available at the Exchange’s Web site               a Tick Size Pilot Program (‘‘Pilot’’).10
                                                    Deputy Secretary.
                                                                                                            at www.iextrading.com, at the principal               The Participants filed the Plan to
                                                    [FR Doc. 2016–24423 Filed 10–7–16; 8:45 am]                                                                   comply with an order issued by the
                                                                                                            office of the Exchange, and at the
                                                    BILLING CODE 8011–01–P                                                                                        Commission on June 24, 2014 (the ‘‘June
                                                                                                            Commission’s Public Reference Room.
                                                                                                                                                                  2014 Order’’).11 The Plan 12 was
                                                                                                            II. Self-Regulatory Organization’s                    published for comment in the Federal
                                                    SECURITIES AND EXCHANGE                                 Statement of the Purpose of, and                      Register on November 7, 2014,13 and
                                                    COMMISSION                                              Statutory Basis for, the Proposed Rule                approved by the Commission, as
                                                    [Release No. 34–79036; File No. SR–IEX–                 Change                                                modified, on May 6, 2015.14 An
                                                    2016–16]                                                   In its filing with the Commission, the             amendment to the Plan adding IEX as a
                                                                                                            self-regulatory organization included                 Participant became effective on August
                                                    Self-Regulatory Organizations;                          statements concerning the purpose of                  5, 2016.15
                                                    Investors Exchange LLC; Notice of                       and basis for the proposed rule change                   The Plan is designed to allow the
                                                    Filing and Immediate Effectiveness of                   and discussed any comments it received                Commission, market participants, and
                                                    Proposed Rule Change To Adopt Rules                     on the proposed rule change. The text                 the public to study and assess the
                                                    To Implement the Quoting and Trading                    of these statement may be examined at                 impact of increment conventions on the
                                                    Provisions of the Tick Size Pilot                       the places specified in Item IV below.
                                                    Program and To Describe Related                         The self-regulatory organization has                    9 15  U.S.C. 78k–1
                                                    Changes to IEX System Functionality                     prepared summaries, set forth in                        10 See  Letter from Brendon J. Weiss, Vice
                                                                                                                                                                  President, Intercontinental Exchange, Inc., to
                                                    October 4, 2016.                                        Sections A, B, and C below, of the most               Secretary, Commission, dated August 25, 2014.
                                                       Pursuant to Section 19(b)(1) 1 of the                significant aspects of such statements.                  11 See Securities Exchange Act Release No. 72460

                                                    Securities Exchange Act of 1934 (the                                                                          (June 24, 2014), 79 FR 36840 (June 30, 2014).
                                                                                                              4 17  CFR 242.608.                                     12 Unless otherwise specified, capitalized terms
                                                    ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                    5 See  Securities and Exchange Act Release No.      used in this rule filing are based on the defined
                                                    notice is hereby given that, on October                 74892 (May 6, 2015), 80 FR 27513 (File No. 4–657)     terms of the Plan.
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    3, 2016, the Investors Exchange LLC                     (‘‘Tick Plan Approval Order’’). See also Securities      13 See Securities Exchange Act Release No. 72460

                                                    (‘‘IEX’’ or the ‘‘Exchange’’) filed with the            and Exchange Act Release No. 76382 (November 6,       (June 24, 2014), 79 FR 36840 (June 30, 2014).
                                                    Securities and Exchange Commission                      2015) (File No. 4–657), 80 FR 70284 (File No. 4–         14 See Tick Plan Approval Order, supra note 5.
                                                                                                            657) (November 13, 2015), which extended the pilot    See also Securities Exchange Act Release No. 77277
                                                    (the ‘‘Commission’’) the proposed rule                  period commencement date from May 6, 2015 to          (March 3, 2016), 81 FR 12162 (March 8, 2016) (File
                                                                                                            October 3, 2016.                                      No. 4–657), which amended the Plan to add
                                                      11 17 CFR 200.30–3(a)(12).                               6 See Securities and Exchange Act Release No.
                                                                                                                                                                  National Stock Exchange, Inc. as a Participant.
                                                      1 15 U.S.C. 78s(b)(1).                                78251 (July 7, 2016); 81 FR 45315 (July 13, 2016.        15 See Securities Exchange Act Release No. 78703
                                                      2 15 U.S.C. 78a.                                         7 15 U.S.C. 78s(b)(3)(a).
                                                                                                                                                                  (August 26, 2016; 81 FR 60397 (September 1, 2016)
                                                      3 17 CFR 240.19b–4.                                      8 17 CFR 240.19b–4(f)(6)(iii).                     (File No. 4–631).



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Document Created: 2018-02-13 16:33:33
Document Modified: 2018-02-13 16:33:33
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 70214 

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