81 FR 70224 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Non-Controversial Amendments to Its Rules
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 196 (October 11, 2016)
Federal Register Volume 81, Issue 196 (October 11, 2016)
| Page Range | 70224-70226 | |
| FR Document | 2016-24422 |
[Federal Register Volume 81, Number 196 (Tuesday, October 11, 2016)] [Notices] [Pages 70224-70226] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-24422] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79037; File No. SR-BOX-2016-46] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Non-Controversial Amendments to Its Rules 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 22, 2016, BOX Options Exchange LLC (the ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to make non-controversial amendments to its rules. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission's Public Reference Room and also on the Exchange's Internet Web site at http://boxexchange.com. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend Rule 7130(a) to clarify that the BOX HSVF is no longer provided to market participants at no cost. The BOX HSVF is a proprietary product that provides: (i) Trades and trade cancelation information; (ii) best-ranked price level to buy and the best-ranked price level to sell; (iii) instrument summaries (including information such as high, low, and last trade price and traded volume); (iv) the five best limit prices for each option instrument; (v) request for Quote messages; \3\ (vi) PIP Order, Improvement Order and Block Trade Order (Facilitation and Solicitation) information; \4\ (vii) orders exposed at NBBO; \5\ (viii) instrument dictionary (e.g., strike price, expiration date, underlying symbol, price threshold, and minimum trading increment for [[Page 70225]] instruments traded on BOX); (ix) options class and instrument status change notices (e.g., whether an instrument or class is in pre-opening, continuous trading, closed, halted, or prohibited from trading); (x) options class opening time; and (xi) Public Customer bid/ask volume at the best limit. --------------------------------------------------------------------------- \3\ See Exchange Rules 100(a)(57), 7070(h) and 8050. \4\ As set forth in Exchange Rules 7150 and 7270, respectively. \5\ As set forth in Exchange Rules 7130(b)(2) and 8040(d)(6), respectively. --------------------------------------------------------------------------- The Exchange recently amended its fees to establish a $750.00 per month fee for receiving the HSVF.\6\ The Exchange proposes to amend the language in BOX Rule 7130(a)(2) to reflect this change. --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 78565 (August 12, 2016), 81 FR 55251 (August 18, 2016) (SR-BOX-2016-40). --------------------------------------------------------------------------- 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 promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general protect investors and the public interest. The Exchange believes it is appropriate to make the proposed change to its rules so that market participants and investors have a clear and accurate understanding of the meaning of the Exchange's rules. By removing obsolete rule text, the Exchange is eliminating any potential for confusion by simplifying the Exchange Rules, ensuring that market participants, regulators and the public can more easily navigate the Exchange's Rulebook. The Exchange believes that the proposed rule change is not unfairly discriminatory because it treats all market participants equally and will not have an adverse impact on any market participant. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. In particular, the proposed change simply reflects the recent amendments to the BOX Fee Schedule.\9\ As such, 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. --------------------------------------------------------------------------- \9\ See supra note 6. --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) \10\ of the Act and Rule 19b- 4(f)(6) thereunder.\11\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \12\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest because it will allow the Exchange to immediately reflect recent amendments to its fee schedule, which will eliminate any potential for confusion.\14\ The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposed rule change operative upon filing.\15\ --------------------------------------------------------------------------- \12\ 17 CFR 240.19b-4(f)(6). \13\ 17 CFR 240.19b-4(f)(6)(iii). \14\ See supra note 6. \15\ For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BOX-2016-46 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-2016-46. 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- [[Page 70226]] 2016-46, and should be submitted on or before November 1, 2016. --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-24422 Filed 10-7-16; 8:45 am] BILLING CODE 8011-01-P
![70224 Federal Register / Vol. 81, No. 196 / Tuesday, October 11, 2016 / Notices
based rebates and fees increase only one method. The Commission will been prepared by the self-regulatory
intermarket and intramarket post all comments on the Commission’s organization. The Commission is
competition by incenting Participants to Internet Web site (http://www.sec.gov/ publishing this notice to solicit
direct their order flow to the exchange, rules/sro.shtml). Copies of the comments on the proposed rule change
which benefits all participants by submission, all subsequent from interested persons.
providing more trading opportunities amendments, all written statements
with respect to the proposed rule I. Self-Regulatory Organization’s
and improves competition on the
change that are filed with the Statement of the Terms of the Substance
Exchange.
Commission, and all written of the Proposed Rule Change
C. Self-Regulatory Organization’s communications relating to the The Exchange proposes to make non-
Statement on Comments on the proposed rule change between the controversial amendments to its rules.
Proposed Rule Change Received From Commission and any person, other than The text of the proposed rule change is
Members, Participants, or Others those that may be withheld from the available from the principal office of the
No written comments were either public in accordance with the Exchange, at the Commission’s Public
solicited or received. provisions of 5 U.S.C. 552, will be Reference Room and also on the
available for Web site viewing and Exchange’s Internet Web site at http://
III. Date of Effectiveness of the
printing in the Commission’s Public boxexchange.com.
Proposed Rule Change and Timing for
Reference Room, 100 F Street NE.,
Commission Action II. Self-Regulatory Organization’s
Washington, DC 20549 on official
The foregoing rule change has become Statement of the Purpose of, and
business days between the hours of
effective pursuant to Section 10:00 a.m. and 3:00 p.m. Copies of such Statutory Basis for, the Proposed Rule
19(b)(3)(A)(ii) of the Exchange Act 7 and filing also will be available for Change
Rule 19b–4(f)(2) thereunder,8 because it inspection and copying at the principal In its filing with the Commission, the
establishes or changes a due, or fee. office of the Exchange. All comments self-regulatory organization included
At any time within 60 days of the received will be posted without change; statements concerning the purpose of,
filing of the proposed rule change, the the Commission does not edit personal and basis for, the proposed rule change
Commission summarily may identifying information from and discussed any comments it received
temporarily suspend the rule change if submissions. You should submit only on the proposed rule change. The text
it appears to the Commission that the information that you wish to make of these statements may be examined at
action is necessary or appropriate in the available publicly. All submissions the places specified in Item IV below.
public interest, for the protection of should refer to File Number SR–BOX– The self-regulatory organization has
investors, or would otherwise further 2016–49, and should be submitted on or prepared summaries, set forth in
the purposes of the Act. If the before November 1, 2016. Sections A, B, and C below, of the most
Commission takes such action, the For the Commission, by the Division of significant aspects of such statements.
Commission shall institute proceedings Trading and Markets, pursuant to delegated A. Self-Regulatory Organization’s
to determine whether the proposed rule authority.9
Statement of the Purpose of, and
should be approved or disapproved. Robert W. Errett, Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Deputy Secretary. Change
[FR Doc. 2016–24425 Filed 10–7–16; 8:45 am]
Interested persons are invited to 1. Purpose
BILLING CODE 8011–01–P
submit written data, views, and
The purpose of the proposed rule
arguments concerning the foregoing,
change is to amend Rule 7130(a) to
including whether the proposed rule SECURITIES AND EXCHANGE clarify that the BOX HSVF is no longer
change is consistent with the Act. COMMISSION provided to market participants at no
Comments may be submitted by any of
[Release No. 34–79037; File No. SR–BOX– cost. The BOX HSVF is a proprietary
the following methods:
2016–46] product that provides: (i) Trades and
Electronic Comments trade cancelation information; (ii) best-
• Use the Commission’s Internet Self-Regulatory Organizations; BOX ranked price level to buy and the best-
comment form (http://www.sec.gov/ Options Exchange LLC; Notice of ranked price level to sell; (iii)
rules/sro.shtml); or Filing and Immediate Effectiveness of instrument summaries (including
• Send an email to rule-comments@ a Proposed Rule Change To Make Non- information such as high, low, and last
sec.gov. Please include File Number SR– Controversial Amendments to Its trade price and traded volume); (iv) the
BOX–2016–49 on the subject line. Rules five best limit prices for each option
October 4, 2016.
instrument; (v) request for Quote
Paper Comments messages; 3 (vi) PIP Order, Improvement
Pursuant to Section 19(b)(1) of the
• Send paper comments in triplicate Securities Exchange Act of 1934 (the
Order and Block Trade Order
to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2 (Facilitation and Solicitation)
Commission, 100 F Street NE., notice is hereby given that on information; 4 (vii) orders exposed at
Washington, DC 20549–1090. September 22, 2016, BOX Options NBBO; 5 (viii) instrument dictionary
(e.g., strike price, expiration date,
asabaliauskas on DSK3SPTVN1PROD with NOTICES
All submissions should refer to File Exchange LLC (the ‘‘Exchange’’) filed
Number SR–BOX–2016–49. This file with the Securities and Exchange underlying symbol, price threshold, and
number should be included on the Commission (‘‘Commission’’) the minimum trading increment for
subject line if email is used. To help the proposed rule change as described in 3 See Exchange Rules 100(a)(57), 7070(h) and
Commission process and review your Items I and II below, which Items have 8050.
comments more efficiently, please use 4 As set forth in Exchange Rules 7150 and 7270,
9 17 CFR 200.30–3(a)(12). respectively.
7 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1). 5 As set forth in Exchange Rules 7130(b)(2) and
8 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4. 8040(d)(6), respectively.
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![70226 Federal Register / Vol. 81, No. 196 / Tuesday, October 11, 2016 / Notices
2016–46, and should be submitted on or SECURITIES AND EXCHANGE an Intermarket Sweep Order (‘‘ISO’’) 4
before November 1, 2016. COMMISSION designated Immediate-or-Cancel (‘‘IOC’’)
For the Commission, by the Division of
during a Short Sale Period.5 Rule
Trading and Markets, pursuant to delegated [Release No. 34–79034; File No. SR– 7.16P(f)(5)(F) currently provides that
authority.16 NYSEArca–2016–134] during a Short Sale Period, IOC orders
will be traded to the extent possible at
Robert W. Errett, a Permitted Price 6 and higher and then
Self-Regulatory Organizations; NYSE
Deputy Secretary. Arca, Inc.; Notice of Filing and cancelled, and the working price will
[FR Doc. 2016–24422 Filed 10–7–16; 8:45 am] Immediate Effectiveness of Proposed not be adjusted.7 An IOC ISO with a
BILLING CODE 8011–01–P Rule Change Amending Rule 7.16P limit price at or below the NBB, on the
other hand, is treated unlike an IOC
October 4, 2016. order during a Short Sale Period and
SECURITIES AND EXCHANGE Pursuant to Section 19(b)(1) 1 of the similar to a Day ISO. Rule 7.16P(f)(5)(G)
COMMISSION Securities Exchange Act of 1934 (the currently provides that a Day ISO will
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 be rejected if the limit price is at or
Investment Company Act of 1940; notice is hereby given that, on below the NBB. The Exchange proposes
Release No. 32302/October 4, 2016 September 26, 2016, NYSE Arca, Inc. to amend Rule 7.16P(f)(5)(G) to specify
(the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed that an IOC ISO and a Day ISO are both
In the Matter of: Advisors Series Trust, 615 with the Securities and Exchange handled in a similar manner by the
East Michigan Street, Milwaukee, WI Commission (the ‘‘Commission’’) the Exchange. The Exchange proposes to
53202; Orinda Asset Management, LLC, 4 proposed rule change as described in make this change by deleting the word
Orinda Way, Suite 100B, Orinda, CA Items I and II below, which Items have ‘Day’ from Rule 7.16P(f)(5)(G).8 Given
94563; (File No. 812–13889) been prepared by the self-regulatory that during a Short Sale Period, an IOC
Order Under Section 38(a) of the organization. The Commission is ISO and a Day ISO are both treated in
Investment Company Act of 1940 publishing this notice to solicit a similar manner, the Exchange believes
Rescinding a Prior Order comments on the proposed rule change the proposed change will provide
from interested persons. specificity to the Exchange’s rules that
On September 8, 2016, the during a Short Sale Period, all ISOs will
I. Self-Regulatory Organization’s
Commission issued a notice (Investment Statement of the Terms of Substance of be rejected if the limit price is at or
Company Act Release No. 32254) of its the Proposed Rule Change below the NBB.
intention to rescind, at the request of 2. Statutory Basis
Advisors Series Trust and Orinda Asset The Exchange proposes to amend
Management, LLC, pursuant to section Rule 7.16P. The proposed rule change is The proposed rule change is
38(a) of the Investment Company Act of available on the Exchange’s Web site at consistent with Section 6(b) of the Act,9
1940 (the ‘‘Act’’), a prior order issued to www.nyse.com, at the principal office of in general, and furthers the objectives of
the Exchange, and at the Commission’s Section 6(b)(5),10 in particular, because
Advisors Series Trust and Orinda Asset
Public Reference Room. it is designed to prevent fraudulent and
Management, LLC under section 6(c) of
manipulative acts and practices, to
the Act that granted an exemption from II. Self-Regulatory Organization’s promote just and equitable principles of
section 15(a) of the Act and rule 18f–2 Statement of the Purpose of, and trade, to foster cooperation and
under the Act, as well as from certain Statutory Basis for, the Proposed Rule coordination with persons engaged in
disclosure requirements (Investment Change facilitating transactions in securities, to
Company Act Release No. 30065 (May In its filing with the Commission, the remove impediments to, and perfect the
21, 2012)) (the ‘‘Prior Order’’). self-regulatory organization included mechanism of, a free and open market
The notice gave interested persons an statements concerning the purpose of, and a national market system and, in
opportunity to request a hearing and and basis for, the proposed rule change general, to protect investors and the
stated that an order rescinding the Prior and discussed any comments it received public interest.
Order would be issued unless a hearing on the proposed rule change. The text Specifically, the Exchange believes
was ordered. No request for a hearing of those statements may be examined at that the proposed rule change would
has been filed. the places specified in Item IV below. promote just and equitable principles of
The Exchange has prepared summaries,
Accordingly, 4 An ISO is a Limit Order that does not route and
set forth in sections A, B, and C below,
It is ordered, pursuant to section 38(a) meets the requirements of Rule 600(b)(30) of
of the most significant parts of such Regulation NMS. See Rule 7.31P(e)(3).
of the Act, that the Prior Order be, and statements. 5 Short Sale Period is the period of time that the
hereby is, rescinded. Short Sale Price Test remains in effect if the Short
A. Self-Regulatory Organization’s Sale Price Test is triggered by the listing market
By the Commission. Statement of the Purpose of, and the with respect to a covered security. See Rule
Robert W. Errett, Statutory Basis for, the Proposed Rule 7.16P(f)(4).
Deputy Secretary. Change 6 Permitted Price is the working price and/or
display price adjusted one minimum price
[FR Doc. 2016–24427 Filed 10–7–16; 8:45 am] 1. Purpose increment above the current NBB for short sale
asabaliauskas on DSK3SPTVN1PROD with NOTICES
BILLING CODE 8011–01–P orders during a Short Sale Period that have a
The Exchange proposes to amend working price and/or display price equal to or
Rule 7.16P (Short Sales). Specifically, lower than the NBB. See Rule 7.16P(f)(5)(A).
7 See Rule 7.16P(f)(5)(F).
the Exchange proposes to amend Rule
8 The Exchange proposes a non-substantive
7.16P(f)(5)(G) regarding the treatment of
amendment to delete the term ‘‘Order’’ in Rule
7.16P(f)(5)(G) as such term is redundant of the term
1 15 U.S.C. 78s(b)(1). ISO, which includes the term ‘‘Order.’’
2 15 U.S.C. 78a. 9 15 U.S.C. 78f(b).
16 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. 10 15 U.S.C. 78f(b)(5).
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Document Created: 2018-02-13 16:33:39
Document Modified: 2018-02-13 16:33:39
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 81 FR 70224 |
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