81 FR 87991 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7260 by Extending the Penny Pilot Program Through June 30, 2017
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 234 (December 6, 2016)
Federal Register Volume 81, Issue 234 (December 6, 2016)
| Page Range | 87991-87993 | |
| FR Document | 2016-29174 |
[Federal Register Volume 81, Number 234 (Tuesday, December 6, 2016)] [Notices] [Pages 87991-87993] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-29174] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79429; File No. SR-BOX-2016-55] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7260 by Extending the Penny Pilot Program Through June 30, 2017 November 30, 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 November 29, 2016, BOX Options Exchange LLC (the ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I 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 7260 by extending the Penny Pilot Program through June 30, 2017. 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 [[Page 87992]] 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 extend the effective time period of the Penny Pilot Program that is currently scheduled to expire on December 31, 2016, until June 30, 2017.\3\ The Penny Pilot Program permits certain classes to be quoted in penny increments. The minimum price variation for all classes included in the Penny Pilot Program, except for PowerShares QQQ Trust (``QQQQ'')[supreg], SPDR S&P 500 Exchange Traded Funds (``SPY''), and iShares Russell 2000 Index Funds (``IWM''), will continue to be $0.01 for all quotations in options series that are quoted at less than $3 per contract and $0.05 for all quotations in options series that are quoted at $3 per contract or greater. QQQQ, SPY, and IWM will continue to be quoted in $0.01 increments for all options series. --------------------------------------------------------------------------- \3\ The Penny Pilot Program has been in effect on the Exchange since its inception in May 2012. See Securities Exchange Act Release Nos. 66871 (April 27, 2012), 77 FR 26323 (May 3, 2012) (File No.10- 206, In the Matter of the Application of BOX Options Exchange LLC for Registration as a National Securities Exchange Findings, Opinion, and Order of the Commission), 67328 (June 29, 2012), 77 FR 40123 (July 6, 2012) (SR-BOX-2012-007), 68425 (December 13, 2012), 77 FR 75234 (December 19, 2013) (SR-BOX-2012-021), 69789 (June 18, 2013), 78 FR 37854 (June 24, 2013) (SR-BOX-2013-31), 71056 (December 12, 2013), 78 FR 76691 (December 18, 2013) (SR-BOX-2013-56), 72348 (June 9, 2014), 79 FR 33976 (June 13, 2014) (SR-BOX-2014-17), 73822 (December 11, 2014), 79 FR 75606 (December 18, 2014) (SR-BOX-2014- 29), 75295 (June 25, 2015), 80 FR 37690 (July 1, 2015) (SR-BOX-2015- 23) and 78172 (June 28, 2016), 81 FR 43325 (July 1, 2016) (SR-BOX- 2016-24). The extension of the effective date and the revision of the date to replace issues that have been delisted are the only changes to the Penny Pilot Program being proposed at this time. --------------------------------------------------------------------------- The Exchange may replace, on a semi-annual basis, any Pilot Program classes that have been delisted on the second trading day following January 1, 2017. The Exchange notes that the replacement classes will be selected based on trading activity for the six month period beginning June 1, 2016 and ending November 30, 2016 for the January 2017 replacements. The Exchange will employ the same parameters to prospective replacement classes as approved and applicable under the Pilot Program, including excluding high-priced underlying securities. The Exchange will distribute a Regulatory Circular notifying Participants which replacement classes shall be included in the Penny Pilot Program. BOX is specifically authorized to act jointly with the other options exchanges participating in the Pilot Program in identifying any replacement class. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act,\4\ in general, and Section 6(b)(5) of the Act,\5\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to 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. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the proposed rule change, which extends the Penny Pilot until June 30, 2017 and changes the dates for replacing Penny Pilot issues that were delisted to the second trading day following January 1, 2017, will enable public customers and other market participants to express their true prices to buy and sell options for the benefit of all market participants. This is consistent with the Act. 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. To the contrary, this proposal is pro-competitive because it allows Penny Pilot issues to continue trading on the Exchange. Moreover, the Exchange believes that the proposed rule change will allow for further analysis of the Pilot and a determination of how the Pilot should be structured in the future; and will serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. The Pilot is an industry wide initiative supported by all other option exchanges. The Exchange believes that extending the Pilot will allow for continued competition between market participants on the Exchange trading similar products as their counterparts on other exchanges, while at the same time allowing the Exchange to continue to compete for order flow with other exchanges in option issues trading as part of the Pilot. 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 \6\ and Rule 19b-4(f)(6) thereunder.\7\ 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 for 30 days after the date of the filing, 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)(iii) of the Act \8\ and Rule 19b- 4(f)(6) thereunder.\9\ --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(3)(A). \7\ 17 CFR 240.19b-4(f)(6). \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- 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 rule-comments@sec.gov. Please include File Number SR-BOX-2016-55 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. [[Page 87993]] All submissions should refer to File Number SR-BOX-2016-55. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, on official business days between the hours of 10:00 a.m. and 3:00 p.m., located at 100 F Street NE., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BOX- 2016-55 and should be submitted on or before December 27, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-29174 Filed 12-5-16; 8:45 am] BILLING CODE 8011-01-P
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B. Self-Regulatory Organization’s IV. Solicitation of Comments For the Commission, by the Division of
Statement on Burden on Competition Trading and Markets, pursuant to delegated
Interested persons are invited to authority.10
The Exchange does not believe that submit written data, views, and Eduardo A. Aleman,
the proposed rule change will impose
arguments concerning the foregoing, Assistant Secretary.
any burden on competition that is not
including whether the proposed rule [FR Doc. 2016–29161 Filed 12–5–16; 8:45 am]
necessary or appropriate in furtherance
change is consistent with the Act.
of the purposes of the Act. Specifically, BILLING CODE 8011–01–P
the Exchange believes that, by extending Comments may be submitted by any of
the expiration of the Pilot Program, the the following methods:
proposed rule change will allow for SECURITIES AND EXCHANGE
Electronic Comments COMMISSION
further analysis of the Penny Pilot
Program and a determination of how the • Use the Commission’s Internet
Program should be structured in the comment form (http://www.sec.gov/ [Release No. 34–79429; File No. SR–BOX–
future. In doing so, the proposed rule rules/sro.shtml); or 2016–55]
change will also serve to promote • Send an email to rule-comments@ Self-Regulatory Organizations; BOX
regulatory clarity and consistency, sec.gov. Please include File Number SR– Options Exchange LLC; Notice of
thereby reducing burdens on the MIAX–2016–45 on the subject line. Filing and Immediate Effectiveness of
marketplace, facilitating investor
a Proposed Rule Change To Amend
protection, and fostering a competitive Paper Comments
Rule 7260 by Extending the Penny
environment. In addition, consistent
with previous practices, the Exchange • Send paper comments in triplicate Pilot Program Through June 30, 2017
believes the other options exchanges to Secretary, Securities and Exchange November 30, 2016.
will be filing similar extensions of the Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the
Penny Pilot Program. Washington, DC 20549–1090. Securities Exchange Act of 1934
C. Self-Regulatory Organization’s All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Statement on Comments on the Number SR–MIAX–2016–45. This file notice is hereby given that on November
Proposed Rule Change Received From number should be included on the 29, 2016, BOX Options Exchange LLC
Members, Participants, or Others subject line if email is used. To help the (the ‘‘Exchange’’) filed with the
Commission process and review your Securities and Exchange Commission
Written comments were neither (‘‘Commission’’) the proposed rule
solicited nor received. comments more efficiently, please use
only one method. The Commission will change as described in Items I and II
III. Date of Effectiveness of the below, which Items have been prepared
post all comments on the Commission’s
Proposed Rule Change and Timing for by the self-regulatory organization. The
Internet Web site (http://www.sec.gov/
Commission Action Commission is publishing this notice to
rules/sro.shtml). Copies of the
solicit comments on the proposed rule
Because the foregoing proposed rule submission, all subsequent from interested persons.
change does not: (i) Significantly affect amendments, all written statements
the protection of investors or the public with respect to the proposed rule I. Self-Regulatory Organization’s
interest; (ii) impose any significant change that are filed with the Statement of the Terms of Substance of
burden on competition; and (iii) become Commission, and all written the Proposed Rule Change
operative for 30 days after the date of communications relating to the The Exchange proposes to amend
the filing, or such shorter time as the proposed rule change between the Rule 7260 by extending the Penny Pilot
Commission may designate, it has Commission and any person, other than Program through June 30, 2017. The text
become effective pursuant to 19(b)(3)(A) those that may be withheld from the of the proposed rule change is available
of the Act 8 and Rule 19b–4(f)(6) 9 public in accordance with the from the principal office of the
thereunder. Exchange, at the Commission’s Public
provisions of 5 U.S.C. 552, will be
At any time within 60 days of the Reference Room and also on the
filing of the proposed rule change, the available for Web site viewing and
printing in the Commission’s Public Exchange’s Internet Web site at http://
Commission summarily may boxexchange.com.
temporarily suspend such rule change if Reference Room, 100 F Street NE.,
it appears to the Commission that such Washington, DC 20549–1090, on official II. Self-Regulatory Organization’s
action is necessary or appropriate in the business days between the hours of Statement of the Purpose of, and
public interest, for the protection of 10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule
investors, or otherwise in furtherance of filing also will be available for Change
the purposes of the Act. If the inspection and copying at the principal
In its filing with the Commission, the
Commission takes such action, the office of the Exchange. All comments self-regulatory organization included
Commission shall institute proceedings received will be posted without change; statements concerning the purpose of,
to determine whether the proposed rule the Commission does not edit personal and basis for, the proposed rule change
should be approved or disapproved. identifying information from and discussed any comments it received
submissions. You should submit only on the proposed rule change. The text
8 15 U.S.C. 78s(b)(3)(A). information that you wish to make
mstockstill on DSK3G9T082PROD with NOTICES
9 17
of these statements may be examined at
CFR 240.19b–4(f)(6). In addition, Rule 19b– available publicly. All submissions
4(f)(6)(iii) requires a self-regulatory organization to the places specified in Item IV below.
give the Commission written notice of its intent to should refer to File Number SR–MIAX– The self-regulatory organization has
file the proposed rule change along with a brief 2016–45 and should be submitted on or prepared summaries, set forth in
description and the text of the proposed rule before December 27, 2016.
change, at least five business days prior to the date
10 17 CFR 200.30–3(a)(12).
of filing of the proposed rule change, or such
1 15 U.S.C. 78s(b)(1).
shorter time as designated by the Commission. The
Exchange has satisfied this requirement. 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 81, No. 234 / Tuesday, December 6, 2016 / Notices 87993
All submissions should refer to File The General Counsel of the Rule 19b–4(f)(2) thereunder,4 which
Number SR–BOX–2016–55. This file Commission, or her designee, has renders the proposed rule change
number should be included on the certified that, in her opinion, one or effective upon filing with the
subject line if email is used. To help the more of the exemptions set forth in 5 Commission. The Commission is
Commission process and review your U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) publishing this notice to solicit
comments more efficiently, please use and 17 CFR 200.402(a)(3), (a)(5), (a)(7), comments on the proposed rule change
only one method. The Commission will (a)(9)(ii) and (a)(10), permit from interested persons.
post all comments on the Commission’s consideration of the scheduled matter at
I. Self-Regulatory Organization’s
Internet Web site (http://www.sec.gov/ the closed meeting.
Commissioner Piwowar, as duty Statement of the Terms of the Substance
rules/sro.shtml). Copies of the of the Proposed Rule Change
submission, all subsequent officer, voted to consider the items
amendments, all written statements listed for the closed meeting in closed The Exchange filed a proposal to
with respect to the proposed rule session, and determined that no earlier make several non-substantive changes to
change that are filed with the notice thereof was possible. the fee schedule applicable to
Commission, and all written The subject matter of the closed Members 5 and non-members of the
communications relating to the meeting will be: Institution and Exchange pursuant to Exchange Rules
proposed rule change between the settlement of injunctive actions; 15.1(a) and (c).
Commission and any person, other than Institution and settlement of The text of the proposed rule change
those that may be withheld from the administrative proceedings; Formal is available at the Exchange’s Web site
public in accordance with the order of investigation; and Other matters at www.batstrading.com, at the
provisions of 5 U.S.C. 552, will be relating to enforcement proceedings. principal office of the Exchange, and at
available for Web site viewing and At times, changes in Commission the Commission’s Public Reference
printing in the Commission’s Public priorities require alterations in the Room.
Reference Room, on official business scheduling of meeting items.
For further information and to II. Self-Regulatory Organization’s
days between the hours of 10:00 a.m. Statement of the Purpose of, and
ascertain what, if any, matters have been
and 3:00 p.m., located at 100 F Street Statutory Basis for, the Proposed Rule
added, deleted or postponed; please
NE., Washington, DC 20549. Copies of Change
contact Brent J. Fields from the Office of
such filing also will be available for the Secretary at (202) 551–5400. In its filing with the Commission, the
inspection and copying at the principal
Dated: December 1, 2016. Exchange included statements
office of the Exchange. All comments
Brent J. Fields, concerning the purpose of and basis for
received will be posted without change;
Secretary.
the proposed rule change and discussed
the Commission does not edit personal
any comments it received on the
identifying information from [FR Doc. 2016–29296 Filed 12–2–16; 11:15 am]
proposed rule change. The text of these
submissions. You should submit only BILLING CODE 8011–01–P
statements may be examined at the
information that you wish to make
places specified in Item IV below. The
available publicly. All submissions
SECURITIES AND EXCHANGE Exchange has prepared summaries, set
should refer to File Number SR–BOX–
COMMISSION forth in Sections A, B, and C below, of
2016–55 and should be submitted on or
the most significant parts of such
before December 27, 2016. [Release No. 34–79430; File No. SR– statements.
For the Commission, by the Division of BatsBYX–2016–36]
Trading and Markets, pursuant to delegated A. Self-Regulatory Organization’s
authority.10 Self-Regulatory Organizations; Bats Statement of the Purpose of, and
Eduardo A. Aleman, BYX Exchange, Inc.; Notice of Filing Statutory Basis for, the Proposed Rule
Assistant Secretary. and Immediate Effectiveness of a Change
Proposed Rule Change To Make Non-
[FR Doc. 2016–29174 Filed 12–5–16; 8:45 am] 1. Purpose
Substantive Changes to the Fee
BILLING CODE 8011–01–P The Exchange proposes to make
Schedule
certain clarifying and non-substantive
November 30, 2016. changes to its fee schedule in order to
SECURITIES AND EXCHANGE Pursuant to Section 19(b)(1) of the improve formatting, eliminate certain
COMMISSION Securities Exchange Act of 1934 (the redundancies, increase overall
‘‘Act’’),1 and Rule 19b–4 thereunder,2 readability, and provide users with
Sunshine Act Meeting notice is hereby given that on November straightforward descriptions to augment
Notice is hereby given, pursuant to 18, 2016, Bats BYX Exchange, Inc. (the overall comprehensibility and usability
‘‘Exchange’’ or ‘‘BYX’’) filed with the of the existing fee schedule. The
the provisions of the Government in the
Securities and Exchange Commission Exchange notes that these changes are
Sunshine Act, Public Law 94–409, that
(the ‘‘Commission’’) the proposed rule purely clerical and do not substantively
the Securities and Exchange
change as described in Items I, II, and amend any fee or rebate, nor do they
Commission will hold a closed meeting
III below, which Items have been alter the manner in which the Exchange
on Thursday, December 8, 2016 at 3
prepared by the Exchange. The assesses fees or calculates rebates. The
p.m.
Exchange has designated the proposed proposed changes are simply intended
Commissioners, Counsel to the
mstockstill on DSK3G9T082PROD with NOTICES
rule change as one establishing or to provide greater transparency to
Commissioners, the Secretary to the changing a member due, fee, or other
Commission, and recording secretaries market participants regarding how the
charge imposed by the Exchange under Exchange assesses fees and calculates
will attend the closed meeting. Certain Section 19(b)(3)(A)(ii) of the Act 3 and
staff members who have an interest in 4 17CFR 240.19b–4(f)(2).
the matters also may be present. 1 15 U.S.C. 78s(b)(1). 5A Member is defined as ‘‘any registered broker
2 17 CFR 240.19b–4.
or dealer that has been admitted to membership in
10 17 CFR 200.30–3(a)(12). 3 15 U.S.C. 78s(b)(3)(A)(ii). the Exchange.’’ See Exchange Rule 1.5(n).
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Document Created: 2016-12-06 02:18:25
Document Modified: 2016-12-06 02:18:25
| 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 87991 |
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