81 FR 7879 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7290 (Price Protection for Limit Orders) To Enhance the Protections Provided to Participants Executing Orders and Quotes on the Exchange
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 30 (February 16, 2016)
Federal Register Volume 81, Issue 30 (February 16, 2016)
| Page Range | 7879-7882 | |
| FR Document | 2016-02988 |
[Federal Register Volume 81, Number 30 (Tuesday, February 16, 2016)] [Notices] [Pages 7879-7882] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-02988] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77096; File No. SR-BOX-2016-05] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7290 (Price Protection for Limit Orders) To Enhance the Protections Provided to Participants Executing Orders and Quotes on the Exchange February 9, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on January 27, 2016, BOX Options Exchange LLC (the ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 7290 (Price Protection for Limit Orders) to enhance the protections provided to Participants executing orders and quotes on the Exchange. 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 [[Page 7880]] 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 7290 to enhance the protections provided to Participants executing orders and quotes on the Exchange. Specifically, BOX is proposing to expand the current price protections to (i) cover quotes, (ii) allow Participants to provide their own parameters, and (iii) make these price protections mandatory. Background Currently, the Exchange employs a filter on all incoming Limit Orders, including Limit Order modifications, pursuant to which the Trading Host \3\ will reject these orders if priced outside an acceptable price range based on price parameters set by BOX. Specifically, as the Exchange receives Limit Orders, the Trading Host compares the price of each order against the contra-side National Best Bid/Offer (``NBBO'') at the time of order entry to determine if the price is outside the acceptable price parameter.\4\ If the order is priced outside of the acceptable price parameter, it will be rejected. --------------------------------------------------------------------------- \3\ The term ``Trading Host'' means the automated trading system used by BOX for the trading of options contracts. See Rule 100(a)(66). \4\ The price parameter is set by the Exchange and is percentage of the NBBO on the opposite side of the incoming order. --------------------------------------------------------------------------- Unless determined otherwise by the Exchange and announced to the Participants via Informational Circular, the price parameters are currently set at the price 100% greater than the National Best Offer (``NBO'') (for incoming buy orders), and 100% less than the National Best Bid (``NBB'') (for incoming sell orders), when the NBB/NBO is priced at or below $0.25; and the price parameters are set at the price 50% greater than the NBO (for incoming orders), and 50% less than the NBB (for incoming sell orders), when the NBB/NBO is priced above $0.25. The Exchange rejects incoming buy (sell) orders that are priced above (below) these parameters. For example, if the NBO is $1.20, a buy order priced above $1.80 ($1.20 * 1.50) will be rejected. Likewise, if the NBB is $1.10, a sell order priced below $0.55 ($1.10 * 0.50) will be rejected. If the NBO is $0.10, a buy order priced above $0.20 ($0.10 * 2.00) will be rejected. However, for non-Complex Orders, if the NBB is less than or equal to $0.25, the default limits set above will result in all incoming sell orders being accepted regardless of their limit. The price protection feature is operational each trading day after the opening until the close of trading, and only applies to Limit Orders. This feature is available to all Participants; however, it is disabled until the Participant enables it by contacting the Exchange. Proposal BOX is now proposing to amend this price protection to expand and enhance the protections to Participants submitting orders and quotes to the Exchange. Specifically, the Exchange is proposing to: (i) Expand this price protection to cover quotes, (ii) allow Participants to provide their own parameters, and (iii) make these price protections mandatory. These proposed changes are designed to help Participants further control risk by checking prices against certain parameters. Quotes As previously mentioned, the current price protection is only available for Limit Orders. BOX is now proposing to expand this price protection to cover incoming quotes, including quote updates. Incoming quotes will be processed in the same way that Limit Orders are currently processed by this mechanism. Specifically, under the proposed rule, if an incoming quote is priced outside the price parameter it will be rejected by the Exchange.\5\ Under the proposed change, when the Exchange receives quotes, the Trading Host will compare the price of each quote against the contra-side NBBO at the time of quote entry to determine if the price is outside the acceptable price parameter. Therefore, the proposed price protection will now cover all incoming Limit Orders and quotes. The proposed price protection mechanism for quotes will be applied in the same manner as the price protections currently applicable to Limit Orders; all quotes will be evaluated against the contra-side NBBO to determine whether it is within an acceptable price range before it is accepted by the Trading Host. --------------------------------------------------------------------------- \5\ See Proposed Rule 7290(a). --------------------------------------------------------------------------- The Exchange believes that expanding this price protection mechanism to quotes will greatly enhance the risk protections available on the Exchange. The proposed enhancement will allow the Trading Host to reject quotes that likely resulted from human or operation error. Parameters The Exchange currently provides the values for the price parameters and Participants are not able to override them with their own more restrictive values. The Exchange is now expanding this price protection to allow Participants to provide their own parameters. Specifically, Participants will be allowed to provide values, on an underlying security basis, for: (i) The cut-off price,\6\ (ii) the price parameters, and (iii) minimum price variation, as described in further detail below. Participants will be able to update the values on a daily basis with such changes taking effect on the following trading day. The Exchange will still provide Exchange default values on an underlying security basis and will use the most restrictive parameters between the Participant-provided values and the Exchange defaults. Unless determined otherwise by the Exchange and announced to Participants via Informational Circular, the Exchange defaults shall be: 100% for the contra-side NBB or NBO priced at or below $0.25; and 50% for the contra-side NBB or NBO priced above $0.25. Any changes to the Exchange default values would take effect no earlier than the following trading day. For example, assume for a particular option series the NBO is $0.80 and the NBB is $0.70. Also assume that the cut-off price provided by the Participant is $0.50 and the Exchange default is $0.25. The Participant provides a price parameter of 20% for options above the cut-off price and the Exchange default for above the cut-off price is 50%. The Exchange will use the 20% price parameter when validating incoming orders and quotes from the Participant because it is the most restrictive between the Exchange default and Participant-provided parameter. Therefore, the Exchange will reject any order or quote to buy at a price above $0.96 (0.80 * 1.20) or any order or quote to sell at a price below $0.56 (0.70 * .80). --------------------------------------------------------------------------- \6\ The ``cut-off price'' is the price level where options priced above and below it will have different price parameters. It is designed to allow Participants to have additional control by being able to apply different price parameters depending how high or low the price of the options series is. --------------------------------------------------------------------------- A minimum price variation will apply when using the price parameters from either the Participant or Exchange to [[Page 7881]] calculate the acceptable price range.\7\ Specifically, the minimum price variation is the minimum amount that can be added or subtracted from the contra-side NBB or NBO. The Exchange will apply the smallest minimum price variation between the Exchange default and the value provided by the Participant. For example, assume in the example above that instead of providing a price parameter of 20% the Participant provides a price parameter of 5%. Also, assume that the Participant provides a minimum price variation of $0.05 and the Exchange default is $0.10. The 5% price parameter would provide an acceptable price range of $0.84 to $0.665. However, the Exchange would use the minimum price variation provided by the Participant so the acceptable price range for incoming Limit Orders and quotes would be $0.85 to $0.65. --------------------------------------------------------------------------- \7\ See Proposed IM-7290-1 to Rule 7290. --------------------------------------------------------------------------- Mandatory The current price protections for Limit Orders are not mandatory; a Participant may elect to use them but they are not required. BOX is now proposing that use of this price protection mechanism will be mandatory for all Limit Orders \8\ and quotes on the Exchange. Additionally, as mentioned above, the Exchange will provide default values to ensure that all orders and quotes receive a baseline of protection. By providing Exchange default values and making this price protection mandatory, BOX is attempting to ensure that orders and quotes will have a minimum level of protection from executing at potentially erroneous prices even if a Participant does not provide its own price parameters or selects price parameters that are not restrictive enough. --------------------------------------------------------------------------- \8\ The proposed price protections will cover Intermarket Sweep Orders (``ISO''), as defined in Rule 15000(h). --------------------------------------------------------------------------- Additional Changes The rule change also clarifies what happens when the NBBO on the opposite side is not available and how the acceptable price range is calculated for complex orders. First, proposed Rule 7290(b)(3) will clarify that for Limit Complex Orders the cNBBO \9\ will be used when calculating the acceptable price range. The Exchange will apply the price parameters to the cNBBO when determining the acceptable price range for an incoming Limit Complex Order. Next, the Exchange is proposing to clarify how the acceptable price range will be calculated when the NBBO on the opposite side of an incoming order or quote is not available. In this situation, the Exchange will use the NBBO on the same side of the incoming order or quote when calculating the acceptable price range.\10\ If there is also no NBBO on the same side of the order or quote, no price protection will apply to such incoming order or quote.\11\ --------------------------------------------------------------------------- \9\ The term ``cNBBO'' means the best net bid and offer price for a Complex Order Strategy based on the NBBO for the individual options components of such Strategy. See Rule 7240(a)(3). \10\ See Propose Rule 7290(b)(2). \11\ For Complex Orders, there is always a cNBBO calculated even if no NBBO exists on the individual options components of such Complex Order. --------------------------------------------------------------------------- The Exchange notes that these proposed enhancements to the Exchange's price protections are intended to protect market participants from executions at prices that are significantly outside the Exchange's displayed market. BOX believes that Participants that submit orders and quotes on the Exchange generally intend to receive executions at or near the Exchange's displayed market. An order or quote that is priced significantly outside the Exchange's displayed market could be indicative of an error (e.g., mistake in intended price, series, put/call) and could result in executions occurring at prices that have little or no relation to the theoretical price of the option. Accordingly, the Exchange believes these enhancements will help prevent erroneous orders and quotes, dramatic price swings and, potentially, executions qualifying as obvious errors \12\ on the Exchange. The Exchange also believes that orders that are significantly priced outside the Exchange's displayed market have the potential to create market volatility by trading at different price levels until executed in their entirety. As such, BOX believes these enhancements to the price protections may also help limit unnecessary volatility. --------------------------------------------------------------------------- \12\ See Rule 7170. --------------------------------------------------------------------------- The Exchange also proposes to fix a typographical error with the original rule text of Rule 7290. Specifically, BOX is proposing to capitalize Limit Orders in the text of Rule 7290 to make it consistent with the rest of the Exchange's Rulebook. The Exchange will provide Participants with notice, via Information Circular, about the implementation date of these proposed enhancements to the price protections. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act,\13\ in general, and Section 6(b)(5) of the Act,\14\ 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, BOX believes that expanding the price protection to incoming quotes assures that executions will not occur at erroneous prices, thereby promoting fair and orderly markets. The Exchange believes that this proposed change is reasonable as it will protect Participants by mitigating the risk of having orders executed at erroneous prices. BOX believes the propose rule change furthers the objectives of Section 6(b)(5) of the Act in that it permits the Exchange to address the entry of orders and quotes that are priced significantly away from the market that are likely to have resulted from human or operational error.\15\ By being able to quickly and efficiently reject orders that likely resulted from such error, the proposed use of the price protections would promote a fair and orderly market. Additionally, by providing Participants with the flexibility to determine the price parameters while still providing Exchange defaults, the Exchange is ensuring that all Limit Orders and quotes will have at least a minimum level of protection while, at the same time, allowing Participants to apply more restrictive controls when needed. --------------------------------------------------------------------------- \15\ The Exchange believes that these principles are equally applicable to ISOs. In an effort to protect market participants from the consequences of such order entry errors and prevent market disruptions that may be caused by erroneously placed orders, the Exchange has determined to apply price protections to ISOs on the Exchange. --------------------------------------------------------------------------- The proposed price protections are similar to the protections available at other exchanges.\16\ Accordingly, the Exchange believes that this proposal is designed to promote just and equitable principles of trade, remove impediments to, and perfect the mechanism of, a free and open market. --------------------------------------------------------------------------- \16\ See NYSE Arca Rules 6.60 and 6.61, and NYSE MKT Rules 967NY and 967.1NY. The price protections at NYSE Arca and NYSE MKT are different in that the exchanges provide the price parameters and does not allow for a Participant to provide their own values. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. BOX believes [[Page 7882]] the proposal will provide market participants with additional protection against erroneous executions. The Exchange does not believe the proposed rule change imposes any burden on intramarket competition as the feature is available to all Limit Orders and quotes of all Participants. Nor will the proposal impose a burden on competition among the options exchanges, because of the vigorous competition for order flow among the options exchanges. The Exchange competes with many other options exchanges. In this highly competitive market, market participants can easily and readily direct order flow to competing venues. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \17\ and Rule 19b-4(f)(6) thereunder.\18\ Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78s(b)(3)(A)(iii). \18\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \19\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\20\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the Exchange may implement the proposed rule change without undue delay. In support of its request, the Exchange states the proposed rule change will provide additional protections against executions that are priced significantly away from the market as a result of human or operational error. 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.\21\ --------------------------------------------------------------------------- \19\ 17 CFR 240.19b-4(f)(6). \20\ 17 CFR 240.19b-4(f)(6)(iii). \21\ For purposes only of waiving the operative date of this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-BOX-2016-05 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-2016-05. 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-2016-05 and should be submitted on or before March 8, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-02988 Filed 2-12-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 30 / Tuesday, February 16, 2016 / Notices 7879
Exchange believes that the proposed or otherwise in furtherance of the 2016–05 and should be submitted on or
rule change would increase both purposes of the Act. If the Commission before March 8, 2016.
intermarket and intramarket takes such action, the Commission shall For the Commission, by the Division of
competition by incenting Members to institute proceedings to determine Trading and Markets, pursuant to delegated
direct orders for the account(s) of whether the proposed rule should be authority.10
Professionals to the Exchange, which approved or disapproved. Brent J. Fields,
should enhance the quality of the Secretary.
Exchange’s markets and increase the IV. Solicitation of Comments
[FR Doc. 2016–02989 Filed 2–12–16; 8:45 am]
volume of contracts traded here. To the Interested persons are invited to BILLING CODE 8011–01–P
extent that this purpose is achieved, all submit written data, views, and
the Exchange’s market participants
arguments concerning the foregoing,
should benefit from the improved SECURITIES AND EXCHANGE
including whether the proposed rule
market liquidity. Enhanced market COMMISSION
change is consistent with the Act.
quality and increased transaction
Comments may be submitted by any of [Release No. 34–77096; File No. SR–BOX–
volume that results from the anticipated
increase in order flow directed to the the following methods: 2016–05]
Exchange will benefit all market Electronic Comments Self-Regulatory Organizations; BOX
participants and improve competition Options Exchange LLC; Notice of
on the Exchange. The Exchange notes • Use the Commission’s Internet
Filing and Immediate Effectiveness of
that it operates in a highly competitive comment form (http://www.sec.gov/
a Proposed Rule Change To Amend
market in which market participants can rules/sro.shtml); or
Rule 7290 (Price Protection for Limit
readily favor competing venues if they • Send an email to rule-comments@ Orders) To Enhance the Protections
deem fee levels at a particular venue to sec.gov. Please include File Number SR– Provided to Participants Executing
be excessive. In such an environment, MIAX–2016–05 on the subject line. Orders and Quotes on the Exchange
the Exchange must continually adjust its
fees to remain competitive with other Paper Comments February 9, 2016.
exchanges and to attract order flow to Pursuant to Section 19(b)(1) of the
the Exchange. The Exchange believes • Send paper comments in triplicate
Securities Exchange Act of 1934
that the proposed rule change reflects to Secretary, Securities and Exchange
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
this competitive environment because it Commission, 100 F Street NE.,
notice is hereby given that on January
reduces the Exchange’s fees through Washington, DC 20549–1090.
27, 2016, BOX Options Exchange LLC
rebates in a manner that encourages All submissions should refer to File (the ‘‘Exchange’’) filed with the
market participants to direct their Number SR–MIAX–2016–05. This file Securities and Exchange Commission
customer order flow, to provide number should be included on the (‘‘Commission’’) the proposed rule
liquidity, and to attract additional subject line if email is used. To help the change as described in Items I and II
transaction volume to the Exchange. Commission process and review your below, which Items have been prepared
Given the robust competition for comments more efficiently, please use by the self-regulatory organization. The
volume among options markets, many of only one method. The Commission will Commission is publishing this notice to
which offer the same products, post all comments on the Commission’s solicit comments on the proposed rule
implementing a volume increase based Internet Web site (http://www.sec.gov/ from interested persons.
rebate program to attract order flow like rules/sro.shtml). Copies of the
the one being proposed in this filing is I. Self-Regulatory Organization’s
submission, all subsequent
consistent with the above-mentioned Statement of the Terms of Substance of
amendments, all written statements
goals of the Act. the Proposed Rule Change
with respect to the proposed rule
change that are filed with the The Exchange proposes to amend
C. Self-Regulatory Organization’s Rule 7290 (Price Protection for Limit
Statement on Comments on the Commission, and all written
communications relating to the Orders) to enhance the protections
Proposed Rule Change Received From provided to Participants executing
Members, Participants, or Others proposed rule change between the
Commission and any person, other than orders and quotes on the Exchange. The
Written comments were neither those that may be withheld from the text of the proposed rule change is
solicited nor received. public in accordance with the available from the principal office of the
III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be Exchange, at the Commission’s Public
Proposed Rule Change and Timing for available for Web site viewing and Reference Room and also on the
Commission Action printing in the Commission’s Public Exchange’s Internet Web site at http://
Reference Room, 100 F Street NE., boxexchange.com.
The foregoing rule change has become
effective pursuant to Section Washington, DC 20549, on official II. Self-Regulatory Organization’s
19(b)(3)(A)(ii) of the Act,8 and Rule business days between the hours of Statement of the Purpose of, and
19b–4(f)(2) 9 thereunder. At any time 10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule
within 60 days of the filing of the filing also will be available for Change
proposed rule change, the Commission inspection and copying at the principal
In its filing with the Commission, the
office of the Exchange. All comments
mstockstill on DSK4VPTVN1PROD with NOTICES
summarily may temporarily suspend self-regulatory organization included
such rule change if it appears to the received will be posted without change;
statements concerning the purpose of,
Commission that such action is the Commission does not edit personal
and basis for, the proposed rule change
necessary or appropriate in the public identifying information from
and discussed any comments it received
interest, for the protection of investors, submissions. You should submit only
information that you wish to make 10 17 CFR 200.30–3(a)(12).
8 15 U.S.C. 78s(b)(3)(A)(ii). available publicly. All submissions 1 15 U.S.C. 78s(b)(1).
9 17 CFR 240.19b–4(f)(2). should refer to File Number SR–MIAX– 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 22:15 Feb 12, 2016 Jkt 238001 PO 00000 Frm 00138 Fmt 4703 Sfmt 4703 E:\FR\FM\16FEN1.SGM 16FEN1](https://thefederalregister.org/doc/81_FR_7909/page/1.svg)
![7882 Federal Register / Vol. 81, No. 30 / Tuesday, February 16, 2016 / Notices
the proposal will provide market delay. In support of its request, the Commission, and all written
participants with additional protection Exchange states the proposed rule communications relating to the
against erroneous executions. The change will provide additional proposed rule change between the
Exchange does not believe the proposed protections against executions that are Commission and any person, other than
rule change imposes any burden on priced significantly away from the those that may be withheld from the
intramarket competition as the feature is market as a result of human or public in accordance with the
available to all Limit Orders and quotes operational error. The Commission provisions of 5 U.S.C. 552, will be
of all Participants. Nor will the proposal believes that waiving the 30-day available for Web site viewing and
impose a burden on competition among operative delay is consistent with the printing in the Commission’s Public
the options exchanges, because of the protection of investors and the public Reference Room, 100 F Street NE.,
vigorous competition for order flow interest. Therefore, the Commission Washington, DC 20549 on official
among the options exchanges. The hereby waives the operative delay and business days between the hours of
Exchange competes with many other designates the proposed rule change 10:00 a.m. and 3:00 p.m. Copies of such
options exchanges. In this highly operative upon filing.21 filing also will be available for
competitive market, market participants At any time within 60 days of the inspection and copying at the principal
can easily and readily direct order flow filing of the proposed rule change, the office of the Exchange. All comments
to competing venues. Commission summarily may received will be posted without change;
C. Self-Regulatory Organization’s temporarily suspend such rule change if the Commission does not edit personal
Statement on Comments on the it appears to the Commission that such identifying information from
Proposed Rule Change Received From action is necessary or appropriate in the submissions. You should submit only
Members, Participants, or Others public interest, for the protection of information that you wish to make
investors, or otherwise in furtherance of available publicly. All submissions
The Exchange has neither solicited the purposes of the Act. If the
nor received comments on the proposed should refer to File Number SR–BOX–
Commission takes such action, the 2016–05 and should be submitted on or
rule change. Commission shall institute proceedings before March 8, 2016.
III. Date of Effectiveness of the to determine whether the proposed rule
should be approved or disapproved. For the Commission, by the Division of
Proposed Rule Change and Timing for
Trading and Markets, pursuant to delegated
Commission Action IV. Solicitation of Comments authority.22
The Exchange has filed the proposed Brent J. Fields,
Interested persons are invited to
rule change pursuant to Section
submit written data, views and Secretary.
19(b)(3)(A)(iii) of the Act 17 and Rule
19b–4(f)(6) thereunder.18 Because the arguments concerning the foregoing, [FR Doc. 2016–02988 Filed 2–12–16; 8:45 am]
proposed rule change does not: (i) including whether the proposed rule BILLING CODE 8011–01–P
Significantly affect the protection of change is consistent with the Act.
investors or the public interest; (ii) Comments may be submitted by any of
impose any significant burden on the following methods: SECURITIES AND EXCHANGE
competition; and (iii) become operative Electronic Comments COMMISSION
prior to 30 days from the date on which
• Use the Commission’s Internet
it was filed, or such shorter time as the [Release No. 34–77085; File No. SR–
comment form (http://www.sec.gov/
Commission may designate, if NYSEMKT–2016–19]
rules/sro.shtml); or
consistent with the protection of
investors and the public interest, the • Send an email to rule-comments@ Self-Regulatory Organizations; NYSE
proposed rule change has become sec.gov. Please include File Number SR–
MKT LLC; Notice of Filing and
effective pursuant to Section 19(b)(3)(A) BOX–2016–05 on the subject line.
Immediate Effectiveness of Proposed
of the Act and Rule 19b–4(f)(6)(iii) Paper Comments Rule Change Amending Rule 990NY(8)
thereunder. To Correct a Typographical Error
A proposed rule change filed under • Send paper comments in triplicate
Rule 19b–4(f)(6) 19 normally does not to Secretary, Securities and Exchange February 9, 2016.
become operative prior to 30 days after Commission, 100 F Street NE.,
Washington, DC 20549–1090. Pursuant to Section 19(b)(1) 1 of the
the date of the filing. However, pursuant Securities Exchange Act of 1934 (the
to Rule 19b4(f)(6)(iii),20 the Commission All submissions should refer to File
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
may designate a shorter time if such Number SR–BOX–2016–05. This file
notice is hereby given that on February
action is consistent with the protection number should be included on the
3 2016, NYSE MKT LLC (the
of investors and the public interest. The subject line if email is used. To help the
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
Exchange has asked the Commission to Commission process and review your
the Securities and Exchange
waive the 30-day operative delay so that comments more efficiently, please use
Commission (the ‘‘Commission’’) the
the Exchange may implement the only one method. The Commission will
proposed rule change as described in
proposed rule change without undue post all comments on the Commission’s
Items I and II below, which Items have
Internet Web site (http://www.sec.gov/
been prepared by the self-regulatory
17 15 U.S.C. 78s(b)(3)(A)(iii). rules/sro.shtml). Copies of the
organization. The Commission is
18 17 CFR 240.19b–4(f)(6). As required under Rule submission, all subsequent
mstockstill on DSK4VPTVN1PROD with NOTICES
19b–4(f)(6)(iii), the Exchange provided the publishing this notice to solicit
amendments, all written statements
Commission with written notice of its intent to file comments on the proposed rule change
the proposed rule change, along with a brief with respect to the proposed rule
from interested persons.
description and the text of the proposed rule change that are filed with the
change, at least five business days prior to the date
22 17 CFR 200.30–3(a)(12).
of filing of the proposed rule change, or such 21 For purposes only of waiving the operative date
shorter time as designated by the Commission. 1 15 U.S.C. 78s(b)(1).
of this proposal, the Commission has considered
19 17 CFR 240.19b–4(f)(6). 2 15 U.S.C. 78a.
the proposed rule’s impact on efficiency,
20 17 CFR 240.19b–4(f)(6)(iii). competition, and capital formation. 15 U.S.C. 78c(f). 3 17 CFR 240.19b–4.
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Document Created: 2016-02-13 03:13:25
Document Modified: 2016-02-13 03:13:25
| 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 7879 |
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