81 FR 89525 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (“BOX”) Options Facility
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 238 (December 12, 2016)
Federal Register Volume 81, Issue 238 (December 12, 2016)
| Page Range | 89525-89527 | |
| FR Document | 2016-29659 |
[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)] [Notices] [Pages 89525-89527] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-29659] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79486; File No. SR-BOX-2016-54] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (``BOX'') Options Facility December 6, 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 November 23, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(ii). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is filing with the Securities and Exchange Commission (``Commission'') a proposed rule change to amend the Fee Schedule 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 December 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 [[Page 89526]] 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 amend Section IV. of the BOX Fee Schedule, Eligible Orders Routed to an Away Exchange. Currently, BOX uses third-party broker-dealers to route orders to other exchanges and incurs charges for each order routed to and executed at an away market, in addition to the transaction fees charged by other exchanges. To offset the fees charged to the Exchange for orders routed to other exchanges, the Exchange charges a $0.60 per contract fee for customer accounts. However, the Exchange charges no fee for non-Professional, Public Customer Directed Orders when: (i) Less than 45% of a Participants' monthly executions for such orders are routed to and executed at an Away Exchange; and (ii) 33% or more of a Participants' monthly executions for such orders occur through the PIP.\5\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 68149 (November 5, 2012), 77 FR 67693 (November 13, 2012) (Notice of Filing and Immediate Effectiveness SR-BOX-2012-017). --------------------------------------------------------------------------- The Exchange is now proposing to amend Section IV of the BOX Fee Schedule. Specifically, the Exchange proposes to delete the exception to Section IV which does not charge non-Professional, Public Customer Directed orders as discussed above. 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,\6\ 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- BOX believes that proposed changes to Section IV of the BOX Fee Schedule are reasonable, equitable and not unfairly discriminatory. Presently, the Exchange charges customer accounts $0.60 per contract executed on away exchanges and exempts non-Professional, Public Customer accounts from the routing fee for orders received by BOX via Directed Order when certain execution thresholds are met. The Exchange notes that it is not proposing to change the fee amount. The Exchange believes that the current fee amount is reasonable and appropriate as it is in line with what is currently charged by the industry.\7\ Additionally, the Exchange believes the proposed changes are equitable and not unfairly discriminatory, as the routing fee will now apply to all customer orders routed away from the Exchange. The Exchange notes that no other exchanges make this routing fee distinction based on execution thresholds as discussed above.\8\ Therefore, the Exchange believes that the proposed changes will simplify the Fee Schedule resulting in less investor confusion. --------------------------------------------------------------------------- \7\ See International Securities Exchange (``ISE'') Fee Schedule Section IV (f). The Exchange notes that ISE charges the same fee for Market Makers, Non-ISE Market Makers, Broker Dealers/Firm Proprietaries, and Professional Customers. Priority Customers, however, are assessed a lower fee. BOX proposes to assess the same per contract fee for all account types. See also NYSE Arca (``Arca'') Fee Schedule. \8\ Id. --------------------------------------------------------------------------- The Exchange notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues or providers of routing services if they deem fee levels to be excessive. Finally, the Exchange notes that it constantly evaluates its routing fees, including profit and loss attributable to routing and would consider future adjustments to the routing fee to the extent it was recouping a significant profit or loss from routing to away options exchanges. 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. 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 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-2016-54 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-2016-54. 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 [[Page 89527]] submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BOX- 2016-54, and should be submitted on or before January 3, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-29659 Filed 12-9-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Notices 89525
Internet Web site (http://www.sec.gov/ amend NYSE Arca Equities Rules 7.35 SECURITIES AND EXCHANGE
rules/sro.shtml). Copies of the (Auctions), 7.10 (Clearly Erroneous COMMISSION
submission, all subsequent Executions), 7.31 (Orders and
[Release No. 34–79486; File No. SR–BOX–
amendments, all written statements Modifiers), and 7.11 (Limit Up—Limit 2016–54]
with respect to the proposed rule Down Plan and Trading Pauses in
change that are filed with the Individual Securities Due to Self-Regulatory Organizations; BOX
Commission, and all written Extraordinary Market Volatility). The Options Exchange LLC; Notice of
communications relating to the proposed rule change was published for Filing and Immediate Effectiveness of
proposed rule change between the comment in the Federal Register on a Proposed Rule Change To Amend
Commission and any person, other than the Fee Schedule on the BOX Market
October 24, 2016.3 The Commission
those that may be withheld from the LLC (‘‘BOX’’) Options Facility
received no comments on the proposed
public in accordance with the
provisions of 5 U.S.C. 552, will be rule change. December 6, 2016.
available for Web site viewing and Section 19(b)(2) of the Act 4 provides Pursuant to Section 19(b)(1) of the
printing in the Commission’s Public that, within 45 days of the publication Securities Exchange Act of 1934 (the
Reference Room, 100 F Street NE., of notice of the filing of a proposed rule ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Washington, DC 20549 on official change, or within such longer period up notice is hereby given that on November
business days between the hours of to 90 days as the Commission may 23, 2016, BOX Options Exchange LLC
10:00 a.m. and 3:00 p.m. Copies of the designate if it finds such longer period (the ‘‘Exchange’’) filed with the
filing also will be available for to be appropriate and publishes its Securities and Exchange Commission
inspection and copying at the principal reasons for so finding or as to which the (‘‘Commission’’) the proposed rule
office of the Exchange. All comments self-regulatory organization consents, change as described in Items I, II, and
received will be posted without change; the Commission shall either approve the III below, which Items have been
the Commission does not edit personal proposed rule change, disapprove the prepared by the Exchange. The
identifying information from proposed rule change, or institute Exchange filed the proposed rule change
submissions. You should submit only pursuant to Section 19(b)(3)(A)(ii) of the
proceedings to determine whether the
information that you wish to make Act,3 and Rule 19b–4(f)(2) thereunder,4
available publicly. All submissions proposed rule change should be
which renders the proposal effective
should refer to File Number SR–NYSE– disapproved. The 45th day after
upon filing with the Commission. The
2016–75 and should be submitted on or publication of the notice for this
Commission is publishing this notice to
before January 3, 2017. proposed rule change is December 8,
solicit comments on the proposed rule
2016. The Commission is extending this change from interested persons.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated 45-day time period.
authority.16 The Commission finds that it is I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
Eduardo A. Aleman, appropriate to designate a longer period
of the Proposed Rule Change
Assistant Secretary. within which to take action on the
[FR Doc. 2016–29650 Filed 12–9–16; 8:45 am] proposed rule change so that it has The Exchange is filing with the
BILLING CODE 8011–01–P sufficient time to consider the proposed Securities and Exchange Commission
rule change. Accordingly, the (‘‘Commission’’) a proposed rule change
Commission, pursuant to Section to amend the Fee Schedule on the BOX
SECURITIES AND EXCHANGE 19(b)(2) of the Act,5 designates January Market LLC (‘‘BOX’’) options facility.
COMMISSION 22, 2017 as the date by which the While changes to the fee schedule
pursuant to this proposal will be
[Release No. 34–79480; File No. SR– Commission shall either approve or
effective upon filing, the changes will
NYSEArca–2016–130] disapprove or institute proceedings to
become operative on December 1, 2016.
determine whether to disapprove the
Self-Regulatory Organizations; NYSE The text of the proposed rule change is
proposed rule change (File Number SR– available from the principal office of the
Arca, Inc.; Notice of Designation of a NYSEArca–2016–130).
Longer Period for Commission Action Exchange, at the Commission’s Public
on Proposed Rule Change Amending For the Commission, by the Division of Reference Room and also on the
NYSE Arca Equities Rules 7.35 Trading and Markets, pursuant to delegated Exchange’s Internet Web site at http://
(Auctions), 7.10 (Clearly Erroneous authority.6 boxexchange.com.
Executions), 7.31 (Orders and Eduardo A. Aleman, II. Self-Regulatory Organization’s
Modifiers), and 7.11 (Limit Up—Limit Assistant Secretary. Statement of the Purpose of, and
Down Plan and Trading Pauses in [FR Doc. 2016–29652 Filed 12–9–16; 8:45 am] Statutory Basis for, the Proposed Rule
Individual Securities Due to BILLING CODE 8011–01–P Change
Extraordinary Market Volatility)
In its filing with the Commission, the
December 6, 2016. Exchange included statements
On October 4, 2016, NYSE Arca, Inc. concerning the purpose of and basis for
(‘‘NYSE Arca’’) filed with the Securities the proposed rule change and discussed
and Exchange Commission any comments it received on the
mstockstill on DSK3G9T082PROD with NOTICES
(‘‘Commission’’), pursuant to Section proposed rule change. The text of these
19(b)(1) of the Securities Exchange Act statements may be examined at the
of 1934 (‘‘Act’’) 1 and Rule 19b–4 places specified in Item IV below. The
thereunder,2 a proposed rule change to 3 See Securities Exchange Act Release No. 79107
(October 18, 2016), 81 FR 73159. 1 15 U.S.C. 78s(b)(1).
16 17 4 15 U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
1 15 U.S.C. 78s(b)(1). 5 Id. 3 15 U.S.C. 78s(b)(3)(A)(ii).
2 17 CFR 240.19b–4. 6 17 CFR 200.30–3(a)(31). 4 17 CFR 240.19b–4(f)(2).
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![Federal Register / Vol. 81, No. 238 / Monday, December 12, 2016 / Notices 89527
submissions. You should submit only II. Self-Regulatory Organization’s commenced on April 4, 2016. On
information that you wish to make Statement of the Purpose of, and September 13, 2016, the SEC exempted
available publicly. All submissions Statutory Basis for, the Proposed Rule the Participants from the requirement to
should refer to File Number SR–BOX– Change fully implement the Pilot on October 3,
2016–54, and should be submitted on or In its filing with the Commission, the 2016, to permit the Participants to
before January 3, 2017. self-regulatory organization included implement the pilot on a phased-in
statements concerning the purpose of, basis, as described in the Participants’
For the Commission, by the Division of exemptive request.11
Trading and Markets, pursuant to delegated and basis for, the proposed rule change
and discussed any comments it received The Plan is designed to allow the
authority.11 Commission, market participants, and
on the proposed rule change. The text
Eduardo A. Aleman, the public to study and assess the
of those statements may be examined at
Assistant Secretary. the places specified in Item IV below. impact of increment conventions on the
[FR Doc. 2016–29659 Filed 12–9–16; 8:45 am] The Exchange has prepared summaries, liquidity and trading of the common
BILLING CODE 8011–01–P set forth in sections A, B, and C below, stock of small-capitalization companies.
of the most significant parts of such Each Participant is required to comply,
statements. and to enforce compliance by its
SECURITIES AND EXCHANGE member organizations, as applicable,
A. Self-Regulatory Organization’s with the provisions of the Plan.
COMMISSION
Statement of the Purpose of, and The Exchange adopted rule
Statutory Basis for, the Proposed Rule amendments to implement the
[Release No. 34–79475; File No. SR– Change requirements of the Plan, including
NYSEMKT–2016–113] relating to the Plan’s data collection
1. Purpose
requirements and requirements relating
Self-Regulatory Organizations; NYSE On August 25, 2014, NYSE Group, to Web site data publication.12
MKT LLC; Notice of Filing and Inc., on behalf of the Exchange, New Specifically, with respect to the Web
Immediate Effectiveness of Proposed York Stock Exchange LLC, NYSE Arca, site data publication requirements
Rule Change Amending Rule 67— Inc., the Bats BZX Exchange, Inc. f/k/a pursuant to Section VII and Appendices
Equities To Modify the Web Site Data BATS Exchange, Inc. (‘‘BZX’’), BATS B and C to the Plan, Rule 67(b)(2)—
Publication Requirements Relating to BYX Exchange, Inc. f/k/a BATS Y- Equities provides, among other things,
the Regulation NMS Plan To Implement Exchange, Inc. (‘‘BYX’’), Bats EDGA that the Exchange shall make the data
a Tick Size Pilot Program Exchange, Inc., Bats EDGX Exchange, required by Items I and II of Appendix
Inc., Chicago Stock Exchange, Inc., B to the Plan, and collected pursuant to
December 6, 2016. Financial Industry Regulatory paragraph (b)(2) of Rule 67—Equities,
Pursuant to Section 19(b)(1) 1 of the Authority, Inc. (‘‘FINRA’’), NASDAQ publicly available on the Exchange’s
Securities Exchange Act of 1934 (the OMX BX, Inc., NASDAQ OMX PHLX Web site on a monthly basis at no
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 LLC, and the Nasdaq Stock Market LLC charge and shall not identify the
notice is hereby given that on November (collectively ‘‘Participants’’) filed with Trading Center that generated the data.
the Commission, pursuant to Section Rule 67(b)(3)(C)—Equities, provides,
30, 2016, NYSE MKT LLC (the
11A of the Act 4 and Rule 608 of among other things, that the Exchange
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
Regulation NMS thereunder,5 the Plan shall make the data required by Item IV
the Securities and Exchange to Implement a Tick Size Pilot
Commission (the ‘‘Commission’’) the of Appendix B to the Plan, and collected
Program.6 The Participants filed the pursuant to paragraph (b)(3)(A) of Rule
proposed rule change as described in Plan to comply with an order issued by 67—Equities, publicly available on the
Items I and II below, which Items have the Commission on June 24, 2014.7 The Exchange’s Web site on a monthly basis
been prepared by the self-regulatory Plan was published for comment in the at no charge and shall not identify the
organization. The Commission is Federal Register on November 7, 2014, Trading Center that generated the data.
publishing this notice to solicit and approved by the Commission, as Supplementary Material .70 to Rule
comments on the proposed rule change modified, on May 6, 2015.8 The
from interested persons. Commission approved the Pilot on a 11 See Letter from David S. Shillman, Associate
two-year basis, with implementation to Director, Division of Trading and Markets,
I. Self-Regulatory Organization’s Commission, to Eric Swanson, EVP, General
begin no later than May 6, 2016.9 On
Statement of the Terms of Substance of Counsel and Secretary, Bats Global Markets, Inc.,
November 6, 2015, the SEC exempted dated September 13, 2016; see also Letter from Eric
the Proposed Rule Change the Participants from implementing the Swanson, EVP, General Counsel and Secretary, Bats
Pilot until October 3, 2016.10 Under the Global Markets, Inc., to Brent J. Fields, Secretary,
The Exchange proposes to amend Commission, dated September 9, 2016.
Rule 67—Equities to modify the Web revised Pilot implementation date, the 12 See Securities Exchange Act Release No. 77478
site data publication requirements Pre-Pilot data collection period (March 30, 2016), 81 FR 19665 (April 5, 2016)
relating to the Regulation NMS Plan to (Immediate Effectiveness of Proposed Rule Change
4 15 U.S.C. 78k–1. Adopting Requirements for the Collection and
Implement a Tick Size Pilot Program 5 17 CFR 242.608. Transmission of Data Pursuant to Appendices B and
(‘‘Plan’’). The proposed rule change is 6 See Letter from Brendon J. Weiss, Vice C of Regulation NMS Plan to Implement a Tick Size
available on the Exchange’s Web site at President, Intercontinental Exchange, Inc., to Pilot Program) (SR–NYSEMKT–2016–40); see also
Secretary, Commission, dated August 25, 2014. Securities Exchange Act Release No. 78817
www.nyse.com, at the principal office of (September 12, 2016), 81 FR 63811 (September 16,
mstockstill on DSK3G9T082PROD with NOTICES
7 See Securities Exchange Act Release No 72460
the Exchange, and at the Commission’s (June 24, 2014), 79 FR 36840 (June 30, 2014).
2016) (Immediate Effectiveness of Proposed Rule
Public Reference Room. 8 See Securities Exchange Act Release No. 74892
Change to Amend Rule 67-Equities to Modify
Certain Data Collection Requirements of the
(May 6, 2015), 80 FR 27513 (May 13, 2015) Regulation NMS Plan to Implement a Tick Size
11 17
(‘‘Approval Order’’). Pilot Program) (SR–NYSEMKT–2016–84); see also
CFR 200.30–3(a)(12). 9 See Approval Order at 27533 and 27545.
1 15 Letter from John C. Roeser, Associate Director,
U.S.C. 78s(b)(1). 10 See Securities Exchange Act Release No. 76382 Division of Trading and Markets, Commission, to
2 15 U.S.C. 78a.
(November 6, 2015), 80 FR 70284 (November 13, Sherry Sandler, Associate General Counsel, NYSE
3 17 CFR 240.19b–4. 2015). MKT, dated April 4, 2016.
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Document Created: 2018-02-14 09:05:17
Document Modified: 2018-02-14 09:05:17
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 89525 |
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