82 FR 19297 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend a Prior Rule Change, SR-BOX-2017-08, Which Contained a Portion of Text That Is Not Applicable to BOX

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 79 (April 26, 2017)

Page Range		19297-19298
FR Document		2017-08389
Federal Register, Volume 82 Issue 79 (Wednesday, April 26, 2017)
[Federal Register Volume 82, Number 79 (Wednesday, April 26, 2017)]
[Notices]
[Pages 19297-19298]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08389]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80495; File No. SR-BOX-2017-12]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend a Prior Rule Change, SR-BOX-2017-08, Which Contained a Portion of 
Text That Is Not Applicable to BOX

April 20, 2017.
    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 April 17, 2017, 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 a prior rule change, SR-BOX-2017-
08,\3\ which contained a portion of text that is not applicable to BOX. 
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.
---------------------------------------------------------------------------

    \3\ See Securities and Exchange Act Release No. 80247 (March 15, 
2017), 82 FR 14589 (March 21, 2017) (``Complex Order filing'').
---------------------------------------------------------------------------

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 Exchange proposes to amend the previously submitted filing SR-
BOX-2017-08 which contained a portion of text that is not applicable to 
BOX.
    Last year, the Exchange and other options exchanges adopted a new, 
harmonized rule related to the adjustment and nullification of 
erroneous options transactions, including a specific provision related 
to coordination in connection with large-scale events involving 
erroneous options transactions.\4\ Accordingly, the Exchange filed a 
proposed rule change detailing the handling of erroneous options 
transactions that result from the execution of complex orders.\5\ The 
purpose of this filing is to clarify that a portion of text found in 
the previous filing is not applicable to BOX. Specifically, the text 
states, ``The same concern is not present when a Complex Order executes 
against the leg market under IM-7170-4(a) because the Exchange is 
modifying its system in order to ensure the leg will execute at or 
within the NBBO of the leg markets.'' \6\ The Exchange seeks to clarify 
that BOX already has this NBBO functionality in place \7\ and will not 
be modifying its system.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 74911 (May 8, 2015), 
80 FR 27717 (May 14, 2015) (SR-BOX-2015-18) (the ``Initial 
Filing'').
    \5\ See Complex Order Filing supra note 3. The Exchange notes 
that this previous filing was based off of an industry filing.
    \6\ See Complex Order Filing supra note 3 at 14592.
    \7\ See BOX Rule 7240(b)(3)(iii).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\8\ in general, and Section 
6(b)(5) of the Act,\9\ in particular, in that it is designed to protect 
investors and the public interest, promote just and equitable 
principles of trade, and foster cooperation and coordination with 
persons engaged in facilitating transactions in securities by 
eliminating investor confusion with regard to the portion of text found 
in the previous filing that is not applicable to BOX.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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

    The proposed rule change will not impose any burden on competition 
not necessary or appropriate in furtherance of the purposes of the Act 
as the proposed rule change is simply seeking to eliminate investor 
confusion with regard to the provision in the previous filing that is 
not applicable to BOX.

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 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) of the Act \10\ 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 
states that the proposed rule change simply seeks to

[[Page 19298]]

eliminate investor confusion regarding the provision in the previous 
filing that is not applicable to BOX, as discussed above. For this 
reason, the Commission believes the waiver of the operative delay is 
consistent with the protection of investors and the public interest. 
Therefore, the Commission hereby waives the operative delay and 
designates the proposal operative upon filing.\14\
---------------------------------------------------------------------------

    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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 change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BOX-2017-12 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-2017-12. 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-
2017-12 and should be submitted on or before May 17, 2017.
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-08389 Filed 4-25-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 79 / Wednesday, April 26, 2017 / Notices 19297

received will be posted without change; II. Self-Regulatory Organization’s Act,9 in particular, in that it is designed
the Commission does not edit personal Statement of the Purpose of, and to protect investors and the public
identifying information from Statutory Basis for, the Proposed Rule interest, promote just and equitable
submissions. You should submit only Change principles of trade, and foster
information that you wish to make In its filing with the Commission, the cooperation and coordination with
available publicly. All submissions self-regulatory organization included persons engaged in facilitating
should refer to File Number SR– statements concerning the purpose of, transactions in securities by eliminating
NYSEMKT–2017–22, and should be and basis for, the proposed rule change investor confusion with regard to the
submitted on or before May 17, 2017. and discussed any comments it received portion of text found in the previous
For the Commission, by the Division of on the proposed rule change. The text filing that is not applicable to BOX.
Trading and Markets, pursuant to delegated of these statements may be examined at B. Self-Regulatory Organization’s
authority.36 the places specified in Item IV below. Statement on Burden on Competition
Eduardo A. Aleman, The self-regulatory organization has The proposed rule change will not
Assistant Secretary. prepared summaries, set forth in impose any burden on competition not
[FR Doc. 2017–08391 Filed 4–25–17; 8:45 am] Sections A, B, and C below, of the most necessary or appropriate in furtherance
BILLING CODE 8011–01–P
significant aspects of such statements. of the purposes of the Act as the
A. Self-Regulatory Organization’s proposed rule change is simply seeking
Statement of the Purpose of, and to eliminate investor confusion with
SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule regard to the provision in the previous
COMMISSION Change filing that is not applicable to BOX.
1. Purpose C. Self-Regulatory Organization’s
[Release No. 34–80495; File No. SR–BOX– Statement on Comments on the
2017–12] The Exchange proposes to amend the Proposed Rule Change Received From
previously submitted filing SR–BOX– Members, Participants, or Others
Self-Regulatory Organizations; BOX 2017–08 which contained a portion of
Options Exchange LLC; Notice of text that is not applicable to BOX. The Exchange has neither solicited
Filing and Immediate Effectiveness of Last year, the Exchange and other nor received comments on the proposed
a Proposed Rule Change To Amend a options exchanges adopted a new, rule change.
Prior Rule Change, SR–BOX–2017–08, harmonized rule related to the III. Date of Effectiveness of the
Which Contained a Portion of Text adjustment and nullification of Proposed Rule Change and Timing for
That Is Not Applicable to BOX erroneous options transactions, Commission Action
including a specific provision related to
April 20, 2017.
coordination in connection with large- Because the proposed rule change
Pursuant to Section 19(b)(1) of the does not (i) significantly affect the
scale events involving erroneous
Securities Exchange Act of 1934 protection of investors or the public
options transactions.4 Accordingly, the
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 interest; (ii) impose any significant
Exchange filed a proposed rule change
notice is hereby given that on April 17, burden on competition; and (iii) become
detailing the handling of erroneous
2017, BOX Options Exchange LLC (the operative for 30 days from the date on
options transactions that result from the
‘‘Exchange’’) filed with the Securities which it was filed, or such shorter time
execution of complex orders.5 The
and Exchange Commission as the Commission may designate, it has
purpose of this filing is to clarify that a
(‘‘Commission’’) the proposed rule become effective pursuant to Section
portion of text found in the previous
change as described in Items I and II 19(b)(3)(A) of the Act 10 and Rule 19b–
filing is not applicable to BOX.
below, which Items have been prepared 4(f)(6) thereunder.11
Specifically, the text states, ‘‘The same A proposed rule change filed
by the self-regulatory organization. The concern is not present when a Complex pursuant to Rule 19b–4(f)(6) under the
Commission is publishing this notice to Order executes against the leg market Act 12 normally does not become
solicit comments on the proposed rule under IM–7170–4(a) because the operative for 30 days after the date of its
from interested persons. Exchange is modifying its system in filing. However, Rule 19b–4(f)(6)(iii) 13
order to ensure the leg will execute at permits the Commission to designate a
I. Self-Regulatory Organization’s
or within the NBBO of the leg shorter time if such action is consistent
Statement of the Terms of Substance of
markets.’’ 6 The Exchange seeks to with the protection of investors and the
the Proposed Rule Change
clarify that BOX already has this NBBO public interest. The Exchange has asked
The Exchange proposes to amend a functionality in place 7 and will not be the Commission to waive the 30-day
prior rule change, SR–BOX–2017–08,3 modifying its system. operative delay so that the proposal may
which contained a portion of text that 2. Statutory Basis become operative immediately upon
is not applicable to BOX. The text of the filing. The Exchange states that the
proposed rule change is available from The Exchange believes that the
proposal is consistent with the proposed rule change simply seeks to
the principal office of the Exchange, at
the Commission’s Public Reference requirements of Section 6(b) of the Act,8 9 15 U.S.C. 78f(b)(5).
Room and also on the Exchange’s in general, and Section 6(b)(5) of the 10 15 U.S.C. 78s(b)(3)(A).
Internet Web site at http:// 11 17 CFR 240.19b–4(f)(6). As required under Rule
mstockstill on DSK30JT082PROD with NOTICES

4 See Securities Exchange Act Release No. 74911
boxexchange.com. 19b–4(f)(6)(iii), the Exchange provided the
(May 8, 2015), 80 FR 27717 (May 14, 2015) (SR– Commission with written notice of its intent to file
BOX–2015–18) (the ‘‘Initial Filing’’). the proposed rule change, along with a brief
36 17 CFR 200.30–3(a)(12). 5 See Complex Order Filing supra note 3. The
description and the text of the proposed rule
1 15 U.S.C. 78s(b)(1). Exchange notes that this previous filing was based change, at least five business days prior to the date
2 17 CFR 240.19b–4. off of an industry filing. of filing of the proposed rule change, or such
3 See Securities and Exchange Act Release No. 6 See Complex Order Filing supra note 3 at 14592. shorter time as designated by the Commission.
7 See BOX Rule 7240(b)(3)(iii). 12 17 CFR 240.19b–4(f)(6).
80247 (March 15, 2017), 82 FR 14589 (March 21,
2017) (‘‘Complex Order filing’’). 8 15 U.S.C. 78f(b). 13 17 CFR 240.19b–4(f)(6)(iii).

VerDate Sep<11>2014 18:43 Apr 25, 2017 Jkt 241001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\26APN1.SGM 26APN1
19298 Federal Register / Vol. 82, No. 79 / Wednesday, April 26, 2017 / Notices

eliminate investor confusion regarding proposed rule change between the holdings in the issuer with the
the provision in the previous filing that Commission and any person, other than Commission. Form 5 (17 CFR 249.105)
is not applicable to BOX, as discussed those that may be withheld from the is an annual statement of beneficial
above. For this reason, the Commission public in accordance with the ownership of securities. The
believes the waiver of the operative provisions of 5 U.S.C. 552, will be information disclosure provided on
delay is consistent with the protection available for Web site viewing and Form 5 is mandatory. All information is
of investors and the public interest. printing in the Commission’s Public provided to the public for review. We
Therefore, the Commission hereby Reference Room, on official business estimate that approximately 5,939
waives the operative delay and days between the hours of 10:00 a.m. reporting persons file Form 5 annually
designates the proposal operative upon and 3:00 p.m., located at 100 F Street and we estimate that it takes
filing.14 NE., Washington, DC 20549. Copies of approximately one hour to prepare the
At any time within 60 days of the such filing also will be available for form for a total of 5,939 annual burden
filing of the proposed rule change, the inspection and copying at the principal hours.
Commission summarily may office of the Exchange. All comments An agency may not conduct or
temporarily suspend such rule change if received will be posted without change; sponsor, and a person is not required to
it appears to the Commission that such the Commission does not edit personal respond to, a collection of information
action is necessary or appropriate in the identifying information from unless it displays a currently valid
public interest, for the protection of submissions. You should submit only control number.
investors, or otherwise in furtherance of information that you wish to make The public may view the background
the purposes of the Act. If the available publicly. All submissions documentation for this information
Commission takes such action, the should refer to File Number SR–BOX– collection at the following Web site,
Commission shall institute proceedings 2017–12 and should be submitted on or www.reginfo.gov. Comments should be
to determine whether the proposed rule before May 17, 2017. directed to: (i) Desk Officer for the
change should be approved or For the Commission, by the Division of Securities and Exchange Commission,
disapproved. Trading and Markets, pursuant to delegated Office of Information and Regulatory
IV. Solicitation of Comments authority.15 Affairs, Office of Management and
Eduardo A. Aleman, Budget, Room 10102, New Executive
Interested persons are invited to
Assistant Secretary. Office Building, Washington, DC 20503,
submit written data, views and
[FR Doc. 2017–08389 Filed 4–25–17; 8:45 am] or by sending an email to: Shagufta_
arguments concerning the foregoing,
BILLING CODE 8011–01–P Ahmed@omb.eop.gov; and (ii) Pamela
including whether the proposed rule
Dyson, Director/Chief Information
change is consistent with the Act.
Officer, Securities and Exchange
Comments may be submitted by any of
SECURITIES AND EXCHANGE Commission, c/o Remi Pavlik-Simon,
the following methods:
COMMISSION 100 F Street NE., Washington, DC 20549
Electronic Comments or send an email to: PRA_Mailbox@
Submission for OMB Review; sec.gov. Comments must be submitted to
• Use the Commission’s Internet
Comment Request OMB within 30 days of this notice.
comment form (http://www.sec.gov/
rules/sro.shtml); or Upon Written Request Copies Available Dated: April 21, 2017.
• Send an email to rule-comments@ From: Securities and Exchange Eduardo A. Aleman,
sec.gov. Please include File Number SR– Commission, Office of FOIA Services, Assistant Secretary.
BOX–2017–12 on the subject line. 100 F Street NE., Washington, DC [FR Doc. 2017–08432 Filed 4–25–17; 8:45 am]
Paper Comments 20549–2736. BILLING CODE 8011–01–P
Extension:
• Send paper comments in triplicate Form 5, SEC File No. 270–323, OMB
to Secretary, Securities and Exchange Control No. 3235–0362
Commission, 100 F Street NE., SECURITIES AND EXCHANGE
Washington, DC 20549–1090. Notice is hereby given that, pursuant COMMISSION
to the Paperwork Reduction Act of 1995 [Investment Company Act Release No.
All submissions should refer to File
(44 U.S.C. 3501 et seq.), the Securities 32608; 812–14750]
Number SR–BOX–2017–12. This file
and Exchange Commission
number should be included on the
(‘‘Commission’’) has submitted to the TriLine Index Solutions, LLC, et al.
subject line if email is used. To help the
Office of Management and Budget this
Commission process and review your April 21, 2017.
request for extension of the previously
comments more efficiently, please use AGENCY: Securities and Exchange
approved collection of information
only one method. The Commission will discussed below. Commission (‘‘Commission’’).
post all comments on the Commission’s Under Section 16(a) of the Securities ACTION: Notice.
Internet Web site (http://www.sec.gov/ Exchange Act of 1934 (‘‘Exchange Act’’)
rules/sro.shtml). Copies of the (15 U.S.C. 78a et seq.) every person who Notice of an application for an order
submission, all subsequent is directly or indirectly the beneficial under section 6(c) of the Investment
amendments, all written statements owner of more than 10 percent of any Company Act of 1940 (the ‘‘Act’’) for an
with respect to the proposed rule class of any equity security (other than exemption from sections 2(a)(32),
change that are filed with the an exempted security) which registered 5(a)(1), 22(d), and 22(e) of the Act and
mstockstill on DSK30JT082PROD with NOTICES

Commission, and all written pursuant to Section 12 of the Exchange rule 22c–1 under the Act, under
communications relating to the Act, or who is a director or an officer of sections 6(c) and 17(b) of the Act for an
the issuer of such security (collectively exemption from sections 17(a)(1) and
14 For purposes only of waiving the 30-day
‘‘reporting persons’’), must file 17(a)(2) of the Act, and under section
operative delay, the Commission has also
considered the proposed rule’s impact on statements setting forth their security 12(d)(1)(J) for an exemption from
efficiency, competition, and capital formation. See sections 12(d)(1)(A) and 12(d)(1)(B) of
15 U.S.C. 78c(f). 15 17 CFR 200.30–3(a)(12). the Act. The requested order would

VerDate Sep<11>2014 18:43 Apr 25, 2017 Jkt 241001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\26APN1.SGM 26APN1
Document Created: 2017-04-26 03:15:47
Document Modified: 2017-04-26 03:15:47
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		82 FR 19297