82_FR_34075 82 FR 33936 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the BOX Fee Schedule

82 FR 33936 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the BOX Fee Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 139 (July 21, 2017)

Page Range33936-33938
FR Document2017-15321

Federal Register, Volume 82 Issue 139 (Friday, July 21, 2017)
[Federal Register Volume 82, Number 139 (Friday, July 21, 2017)]
[Notices]
[Pages 33936-33938]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-15321]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81153; File No. SR-BOX-2017-24]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the BOX Fee Schedule

July 17, 2017.
    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 July 6, 2017, 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.
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    \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).
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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. The 
text of the proposed rule change is available from the principal office 
of the Exchange, at the Commission's Public

[[Page 33937]]

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 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 adopt transactions fees for Qualified Contingent Cross (``QCC'') 
transactions. A QCC Order is an originating order (Agency Order) to buy 
or sell at least 1,000 standard option contracts, or 10,000 mini-option 
contracts, that is identified as being part of a qualified contingent 
trade, coupled with a contra side order to buy or sell an equal number 
of contracts. The Exchange is proposing to establish fees for QCC 
Orders to coincide with the launch of QCC Orders on the Exchange 
beginning July 10, 2017.\5\
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    \5\ See Securities Exchange Act Release No. 80661 (May 11, 
2017), 82 FR 22682 (May 17, 2017) (Notice of Filing and Immediate 
Effectiveness SR-BOX-2017-14).
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    The Exchange proposes to establish a transaction fee for all Public 
Customer QCC Orders of $0.00 per contract side. Further, the Exchange 
proposes to establish a transaction fee for all non-Public Customer 
(Professional Customers, Broker Dealers and Market Makers) QCC Orders 
of $0.20 per contract side.\6\ In addition, the Exchange is proposing 
to adopt a $0.15 per contract rebate that will be applied to the Agency 
Order \7\ where at least one party to the QCC transaction is a Non-
Public Customer. The rebate will be paid to the Participant that 
entered the order into the BOX system. However, no rebates will be paid 
for QCC transactions in which both the Agency Order and the contra-side 
orders are Public Customers.
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    \6\ The Exchange notes that all QCC Orders will count toward 
Participant tier volume calculations.
    \7\ For QCC transactions, an Agency Order is the originating 
order to buy or sell at least 1,000 contracts or 10,000 mini-
contracts.
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    Additionally, the Exchange proposes to state explicitly in the Fee 
Schedule that a QCC transaction must be comprised of an originating 
order to buy or sell at least 1,000 contracts or 10,000 mini-option 
contracts,\8\ coupled with a contra-side order or orders totaling an 
equal number of contracts as the originating order.\9\ The Exchange 
notes that with regard to order entry, the first order submitted into 
the BOX system is marked as the Agency Order and the second order 
received by the BOX system is marked as the contra side order.
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    \8\ The Exchange notes that mini-options are not currently 
traded on BOX and are therefore not present in the BOX Fee Schedule.
    \9\ See BOX Rule 7110(c)(6).
---------------------------------------------------------------------------

    Lastly, the Exchange proposes to specify that QCC Orders will be 
exempt from the Liquidity Fees and Credits outlined in Section II of 
the BOX Fee Schedule.
    The purpose of these changes is to incentivize the sending of QCC 
Orders to the Exchange. The Exchange notes that other competing 
exchanges similarly provide fees and rebates on QCC Orders.\10\
---------------------------------------------------------------------------

    \10\ See Chicago Board Options Exchange (``CBOE''), Fees 
Schedule, ``QCC Rate Table,'' Page 5; Miami International Securities 
Exchange LLC (``MIAX''), Fee Schedule, Section 1(a)(vi).
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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,\11\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes the proposed transaction fees for QCC Orders 
are reasonable and in line with the amount assessed at other Exchanges 
for similar transactions.\12\ Additionally, the same proposed fee would 
be charged to all non-Public Customer QCC Orders. The Exchange believes 
that charging Professional Customers and Broker Dealers and Market 
Makers more than Public Customers for QCC Orders is reasonable, 
equitable and not unfairly discriminatory. The securities markets 
generally, and BOX in particular, have historically aimed to improve 
markets for investors and develop various features within the market 
structure for Public Customer benefit. The Exchange believes that 
charging no fees to Public Customers in QCC transactions is reasonable 
and, ultimately, will benefit all Participants trading on the Exchange 
by attracting Public Customer order flow.
---------------------------------------------------------------------------

    \12\ See CBOE Fee Schedule. CBOE charges non-Public Customers 
$0.17 per contract and does not charge Public Customers. See also 
MIAX Fee Schedule. MIAX charges Non-Priority Customers $0.15 per 
contract and does not charge Priority Customers. (Priority Customers 
on MIAX are the equivalent to Public Customers on BOX).
---------------------------------------------------------------------------

    The Exchange believes the proposed rebate for the originating side 
of a QCC transaction is reasonable, as other competing exchanges also 
provide a rebate on the originating side of a QCC order. Additionally, 
the proposed rebate amount is in line with the rebates offered at other 
competing exchanges.\13\ The Exchange believes the proposed rebate is 
equitable and not unfairly discriminatory because it potentially 
applies to all Participants that enter the originating order (except 
for when both the agency order and contra-side orders are Public 
Customers) and because it is intended to incentivize the sending of 
more QCC Orders to the Exchange. The Exchange believes it is 
reasonable, equitable and not unfairly discriminatory to not provide a 
rebate for the originating order for QCC transactions when both the 
originating order and contra side orders are from Public Customers, 
since Public Customers are already incentivized by having no 
transaction fee for QCC Orders.
---------------------------------------------------------------------------

    \13\ CBOE and MIAX offer a $0.10 per contract credit or rebate 
paid on the initiating side of the QCC transaction.
---------------------------------------------------------------------------

    The Exchange believes that exempting QCC Orders from Section II 
(Liquidity Fees and Credits) is reasonable, equitable and not unfairly 
discriminatory. The Exchange's Liquidity Fees and Credits are intended 
to attract order flow to the Exchange by offering incentives to all 
market participants to submit orders to the Exchange and the Exchange 
believes that the proposed QCC fee structure will provide appropriate 
incentives to encourage Participants to submit QCC Orders to the 
Exchange. The Exchange believes that exempting QCC Orders from 
liquidity fees and credits is reasonable compared to similar fees and 
credits offered by another exchange.\14\ The Exchange believes that 
exempting QCC Orders from liquidity fees and credits is not unfairly 
discriminatory as the exemption from the liquidity fees and credits 
applies equally to all Participants on the Exchange.
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    \14\ CBOE does not apply Taker fees and Maker rebates to QCC 
orders. See CBOE Fee Schedule Footnote 44.

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[[Page 33938]]

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. The Exchange believes this 
proposal will not cause unnecessary burden on intermarket competition 
because the proposed changes will actually enhance the competiveness of 
the Exchange relative to other exchanges which offer comparable fees 
and rebates for QCC transactions. To the extent that the proposed 
changes make the Exchange a more attractive marketplace for market 
participants at other exchanges, such market participants are welcome 
to become market participants on the Exchange.

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 \15\ and Rule 19b-4(f)(2) 
thereunder,\16\ because it establishes or changes a due, or fee.
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    \15\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \16\ 17 CFR 240.19b-4(f)(2).
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    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 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-2017-24 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-2017-24. 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-2017-24, and should be 
submitted on or before August 11, 2017.
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    \17\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-15321 Filed 7-20-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                33936                            Federal Register / Vol. 82, No. 139 / Friday, July 21, 2017 / Notices

                                                Budget, Room 10102, New Executive                        determine whether an applicant meets                  Consideration will be given to
                                                Office Building, Washington, DC 20503,                   the standards for registration set forth in           comments and suggestions submitted in
                                                or by sending an email to: Shagufta_                     Section 17A of the Exchange Act, (ii)                 writing within 60 days of this
                                                Ahmed@omb.eop.gov; and (ii) Pamela                       enforce compliance with the Exchange                  publication.
                                                Dyson, Director/Chief Information                        Act’s registration requirement, and (iii)               An agency may not conduct or
                                                Officer, Securities and Exchange                         provide information about specific                    sponsor, and a person is not required to
                                                Commission, c/o Remi Pavlik-Simon,                       registered clearing agencies for                      respond to, a collection of information
                                                100 F St NE., Washington, DC 20549 or                    compliance and investigatory purposes.                under the PRA unless it displays a
                                                send an email to: PRA_Mailbox@                           Without Rule 17Ab2–1, the Commission                  currently valid OMB control number.
                                                sec.gov. Comments must be submitted to                   could not perform these duties as                       Please direct your written comments
                                                OMB within 30 days of this notice.                       statutorily required.                                 to: Pamela Dyson, Director/Chief
                                                  Dated: July 17, 2017.                                     The Commission staff estimates that                Information Officer, Securities and
                                                                                                         the average Form CA–1 requires                        Exchange Commission, c/o Remi Pavlik-
                                                Eduardo A. Aleman,
                                                                                                         approximately 130 hours to complete                   Simon, 100 F Street NE., Washington,
                                                Assistant Secretary.                                                                                           DC 20549, or send an email to: PRA_
                                                                                                         and submit for approval. This burden is
                                                [FR Doc. 2017–15295 Filed 7–20–17; 8:45 am]              composed primarily of a one-time                      Mailbox@sec.gov.
                                                BILLING CODE P                                           reporting burden that reflects the                    Eduardo A. Aleman,
                                                                                                         applicant’s staff time (i.e. internal labor
                                                                                                                                                               Assistant Secretary.
                                                                                                         costs) to prepare and submit the Form
                                                SECURITIES AND EXCHANGE                                  to the Commission. This estimate                      [FR Doc. 2017–15296 Filed 7–20–17; 8:45 am]
                                                COMMISSION                                               includes the burden associated with                   BILLING CODE 8011–01–P

                                                [SEC File No. 270–203, OMB Control No.                   filing amendments to Form CA–1,
                                                3235–0195]                                               which is required when certain
                                                                                                         information contained in an applicant’s               SECURITIES AND EXCHANGE
                                                Proposed Collection; Comment                             or registrant’s Form CA–1 becomes                     COMMISSION
                                                Request                                                  inaccurate, misleading, or incomplete.                [Release No. 34–81153; File No. SR–BOX–
                                                Upon Written Request, Copies Available                   (The time burden related to preparing                 2017–24]
                                                 From: Securities and Exchange                           and submitting an amendment widely
                                                                                                         varies depending on the nature of the                 Self-Regulatory Organizations; BOX
                                                 Commission, Office of FOIA Services,                                                                          Options Exchange LLC; Notice of
                                                 100 F Street NE., Washington, DC                        information that needs to be updated.)
                                                                                                         The Commission staff estimates that                   Filing and Immediate Effectiveness of
                                                 20549–2736                                                                                                    a Proposed Rule Change To Amend
                                                                                                         compliance staff work at applicant or
                                                Extension:                                                                                                     the BOX Fee Schedule
                                                  Rule 17Ab2–1, Form CA–1.
                                                                                                         registrant clearing agencies to comply
                                                                                                         with Rule 17Ab2–1 and complete Form                   July 17, 2017.
                                                   Notice is hereby given that pursuant                  CA–1 will result in an internal cost of
                                                to the Paperwork Reduction Act of 1995                                                                            Pursuant to Section 19(b)(1) of the
                                                                                                         compliance, at an estimated hourly                    Securities Exchange Act of 1934 (the
                                                (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the                  wage of $283, of $36,790 per year per                 ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                Securities and Exchange Commission                       clearing agency (130 hours × $283 per                 notice is hereby given that on July 6,
                                                (‘‘Commission’’) is soliciting comments                  hour = $36,790 per year). Therefore, the              2017, BOX Options Exchange LLC (the
                                                on the collection of information                         aggregate annual internal cost of                     ‘‘Exchange’’) filed with the Securities
                                                provided for Rule 17Ab2–1 (17 CFR                        compliance for the approximately one                  and Exchange Commission
                                                240.17Ab2–1) and Form CA–1:                              clearing agency each year to comply                   (‘‘Commission’’) the proposed rule
                                                Registration of Clearing Agencies (17                    with Rule 17Ab2–1 is also $36,790. The                change as described in Items I, II, and
                                                CFR 249b.200) under the Securities                       external costs associated with work on                III below, which Items have been
                                                Exchange Act of 1934 (‘‘Exchange Act’’)                  Form CA–1 include fees charged by                     prepared by the Exchange. The
                                                (15 U.S.C. 78a et seq.). The Commission                  outside lawyers and accountants to                    Exchange filed the proposed rule change
                                                plans to submit this existing collection                 assist the applicant or registrant collect            pursuant to Section 19(b)(3)(A)(ii) of the
                                                of information to the Office of                          and prepare the information sought by                 Act,3 and Rule 19b–4(f)(2) thereunder,4
                                                Management and Budget (‘‘OMB’’) for                      the form (though such consultations are               which renders the proposal effective
                                                extension and approval.                                  not required by the Commission) and                   upon filing with the Commission. The
                                                   Rule 17Ab2–1 and Form CA–1 require                    are estimated to be approximately a total             Commission is publishing this notice to
                                                clearing agencies to register with the                   amount of $19,029 ($19,029 times one                  solicit comments on the proposed rule
                                                Commission and to meet certain                           registrant per year).                                 change from interested persons.
                                                requirements with regard to, among                          Written comments are invited on: (a)
                                                other things, the clearing agency’s                      Whether the proposed collection of                    I. Self-Regulatory Organization’s
                                                organization, capacities, and rules. The                 information is necessary for the proper               Statement of the Terms of the Substance
                                                information is collected from the                        performance of the functions of the                   of the Proposed Rule Change
                                                clearing agency upon the initial                         Commission, including whether the                        The Exchange is filing with the
                                                application for registration on Form                     information shall have practical utility;             Securities and Exchange Commission
                                                CA–1. Thereafter, information is                         (b) the accuracy of the Commission’s                  (‘‘Commission’’) a proposed rule change
                                                collected by amendment to the initial                    estimates of the burden of the proposed               to amend the Fee Schedule. The text of
sradovich on DSK3GMQ082PROD with NOTICES




                                                Form CA–1 when changes in                                collection of information; (c) ways to                the proposed rule change is available
                                                circumstances that render certain                        enhance the quality, utility, and clarity             from the principal office of the
                                                information on Form CA–1 inaccurate,                     of the information to be collected; and               Exchange, at the Commission’s Public
                                                misleading, or incomplete necessitate                    (d) ways to minimize the burden of the
                                                modification of the information                          collection of information on                            1 15 U.S.C. 78s(b)(1).
                                                previously provided to the Commission.                   respondents, including through the use                  2 17 CFR 240.19b–4.
                                                   The Commission uses the information                   of automated collection techniques or                   3 15 U.S.C. 78s(b)(3)(A)(ii).

                                                disclosed on Form CA–1 to (i)                            other forms of information technology.                  4 17 CFR 240.19b–4(f)(2).




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                                                                                 Federal Register / Vol. 82, No. 139 / Friday, July 21, 2017 / Notices                                                      33937

                                                Reference Room and also on the                           Order and the contra-side orders are                  generally, and BOX in particular, have
                                                Exchange’s Internet Web site at http://                  Public Customers.                                     historically aimed to improve markets
                                                boxexchange.com.                                           Additionally, the Exchange proposes                 for investors and develop various
                                                                                                         to state explicitly in the Fee Schedule               features within the market structure for
                                                II. Self-Regulatory Organization’s
                                                                                                         that a QCC transaction must be                        Public Customer benefit. The Exchange
                                                Statement of the Purpose of, and
                                                Statutory Basis for, the Proposed Rule                   comprised of an originating order to buy              believes that charging no fees to Public
                                                Change                                                   or sell at least 1,000 contracts or 10,000            Customers in QCC transactions is
                                                                                                         mini-option contracts,8 coupled with a                reasonable and, ultimately, will benefit
                                                   In its filing with the Commission, the                contra-side order or orders totaling an               all Participants trading on the Exchange
                                                Exchange included statements                             equal number of contracts as the                      by attracting Public Customer order
                                                concerning the purpose of and basis for                  originating order.9 The Exchange notes                flow.
                                                the proposed rule change and discussed                   that with regard to order entry, the first               The Exchange believes the proposed
                                                any comments it received on the                          order submitted into the BOX system is                rebate for the originating side of a QCC
                                                proposed rule change. The text of these                  marked as the Agency Order and the                    transaction is reasonable, as other
                                                statements may be examined at the                        second order received by the BOX                      competing exchanges also provide a
                                                places specified in Item IV below. The                   system is marked as the contra side                   rebate on the originating side of a QCC
                                                Exchange has prepared summaries, set                     order.                                                order. Additionally, the proposed rebate
                                                forth in Sections A, B, and C below, of                     Lastly, the Exchange proposes to                   amount is in line with the rebates
                                                the most significant aspects of such                     specify that QCC Orders will be exempt                offered at other competing exchanges.13
                                                statements.                                              from the Liquidity Fees and Credits                   The Exchange believes the proposed
                                                A. Self-Regulatory Organization’s                        outlined in Section II of the BOX Fee                 rebate is equitable and not unfairly
                                                Statement of the Purpose of, and                         Schedule.                                             discriminatory because it potentially
                                                Statutory Basis for, the Proposed Rule                      The purpose of these changes is to                 applies to all Participants that enter the
                                                Change                                                   incentivize the sending of QCC Orders                 originating order (except for when both
                                                                                                         to the Exchange. The Exchange notes                   the agency order and contra-side orders
                                                1. Purpose                                               that other competing exchanges                        are Public Customers) and because it is
                                                   The Exchange proposes to amend the                    similarly provide fees and rebates on                 intended to incentivize the sending of
                                                Fee Schedule for trading on BOX to                       QCC Orders.10                                         more QCC Orders to the Exchange. The
                                                adopt transactions fees for Qualified                                                                          Exchange believes it is reasonable,
                                                Contingent Cross (‘‘QCC’’) transactions.                 2. Statutory Basis
                                                                                                                                                               equitable and not unfairly
                                                A QCC Order is an originating order                         The Exchange believes that the                     discriminatory to not provide a rebate
                                                (Agency Order) to buy or sell at least                   proposal is consistent with the                       for the originating order for QCC
                                                1,000 standard option contracts, or                      requirements of Section 6(b) of the Act,              transactions when both the originating
                                                10,000 mini-option contracts, that is                    in general, and Section 6(b)(4) and                   order and contra side orders are from
                                                identified as being part of a qualified                  6(b)(5)of the Act,11 in particular, in that           Public Customers, since Public
                                                contingent trade, coupled with a contra                  it provides for the equitable allocation              Customers are already incentivized by
                                                side order to buy or sell an equal                       of reasonable dues, fees, and other                   having no transaction fee for QCC
                                                number of contracts. The Exchange is                     charges among BOX Participants and                    Orders.
                                                proposing to establish fees for QCC                      other persons using its facilities and                   The Exchange believes that exempting
                                                Orders to coincide with the launch of                    does not unfairly discriminate between                QCC Orders from Section II (Liquidity
                                                QCC Orders on the Exchange beginning                     customers, issuers, brokers or dealers.               Fees and Credits) is reasonable,
                                                July 10, 2017.5                                             The Exchange believes the proposed                 equitable and not unfairly
                                                   The Exchange proposes to establish a                  transaction fees for QCC Orders are                   discriminatory. The Exchange’s
                                                transaction fee for all Public Customer                  reasonable and in line with the amount                Liquidity Fees and Credits are intended
                                                QCC Orders of $0.00 per contract side.                   assessed at other Exchanges for similar               to attract order flow to the Exchange by
                                                Further, the Exchange proposes to                        transactions.12 Additionally, the same                offering incentives to all market
                                                establish a transaction fee for all non-                 proposed fee would be charged to all                  participants to submit orders to the
                                                Public Customer (Professional                            non-Public Customer QCC Orders. The                   Exchange and the Exchange believes
                                                Customers, Broker Dealers and Market                     Exchange believes that charging                       that the proposed QCC fee structure will
                                                Makers) QCC Orders of $0.20 per                          Professional Customers and Broker                     provide appropriate incentives to
                                                contract side.6 In addition, the Exchange                Dealers and Market Makers more than                   encourage Participants to submit QCC
                                                is proposing to adopt a $0.15 per                        Public Customers for QCC Orders is                    Orders to the Exchange. The Exchange
                                                contract rebate that will be applied to                  reasonable, equitable and not unfairly                believes that exempting QCC Orders
                                                the Agency Order 7 where at least one                    discriminatory. The securities markets                from liquidity fees and credits is
                                                party to the QCC transaction is a Non-                                                                         reasonable compared to similar fees and
                                                Public Customer. The rebate will be                         8 The Exchange notes that mini-options are not
                                                                                                                                                               credits offered by another exchange.14
                                                paid to the Participant that entered the                 currently traded on BOX and are therefore not
                                                                                                                                                               The Exchange believes that exempting
                                                order into the BOX system. However, no                   present in the BOX Fee Schedule.
                                                                                                            9 See BOX Rule 7110(c)(6).                         QCC Orders from liquidity fees and
                                                rebates will be paid for QCC                                10 See Chicago Board Options Exchange              credits is not unfairly discriminatory as
                                                transactions in which both the Agency                    (‘‘CBOE’’), Fees Schedule, ‘‘QCC Rate Table,’’ Page   the exemption from the liquidity fees
                                                                                                         5; Miami International Securities Exchange LLC        and credits applies equally to all
sradovich on DSK3GMQ082PROD with NOTICES




                                                  5 See Securities Exchange Act Release No. 80661        (‘‘MIAX’’), Fee Schedule, Section 1(a)(vi).
                                                (May 11, 2017), 82 FR 22682 (May 17, 2017) (Notice          11 15 U.S.C. 78f(b)(4) and (5).
                                                                                                                                                               Participants on the Exchange.
                                                of Filing and Immediate Effectiveness SR–BOX–               12 See CBOE Fee Schedule. CBOE charges non-
                                                2017–14).                                                Public Customers $0.17 per contract and does not        13 CBOE and MIAX offer a $0.10 per contract
                                                  6 The Exchange notes that all QCC Orders will                                                                credit or rebate paid on the initiating side of the
                                                                                                         charge Public Customers. See also MIAX Fee
                                                count toward Participant tier volume calculations.       Schedule. MIAX charges Non-Priority Customers         QCC transaction.
                                                  7 For QCC transactions, an Agency Order is the         $0.15 per contract and does not charge Priority         14 CBOE does not apply Taker fees and Maker

                                                originating order to buy or sell at least 1,000          Customers. (Priority Customers on MIAX are the        rebates to QCC orders. See CBOE Fee Schedule
                                                contracts or 10,000 mini-contracts.                      equivalent to Public Customers on BOX).               Footnote 44.



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                                                33938                                Federal Register / Vol. 82, No. 139 / Friday, July 21, 2017 / Notices

                                                B. Self-Regulatory Organization’s                             • Send an email to rule-comments@     SECURITIES AND EXCHANGE
                                                Statement on Burden on Competition                          sec.gov. Please include File Number SR– COMMISSION
                                                   The Exchange does not believe that                       BOX–2017–24 on the subject line.
                                                the proposed rule change will impose                        Paper comments:                                           [Release No. 34–81155; File No. SR–
                                                any burden on competition not                                                                                         NYSEArca–2016–176]
                                                necessary or appropriate in furtherance                       • Send paper comments in triplicate
                                                of the purposes of the Act. The                             to Secretary, Securities and Exchange                     Self-Regulatory Organizations; NYSE
                                                Exchange believes this proposal will not                    Commission, 100 F Street NE.,                             Arca, Inc.; Notice of Designation of a
                                                cause unnecessary burden on                                                                                           Longer Period for Commission Action
                                                                                                            Washington, DC 20549–1090.
                                                intermarket competition because the                                                                                   on Proceedings To Determine Whether
                                                proposed changes will actually enhance                      All submissions should refer to File                      To Approve or Disapprove a Proposed
                                                the competiveness of the Exchange                           Number SR–BOX–2017–24. This file                          Rule Change Relating to the Listing
                                                relative to other exchanges which offer                     number should be included on the                          and Trading of Shares of the
                                                comparable fees and rebates for QCC                         subject line if email is used. To help the                EtherIndex Ether Trust Under NYSE
                                                transactions. To the extent that the                        Commission process and review your                        Arca Equities Rule 8.201
                                                proposed changes make the Exchange a                        comments more efficiently, please use                     July 17, 2017.
                                                more attractive marketplace for market                      only one method. The Commission will
                                                                                                            post all comments on the Commission’s                        On December 30, 2016, NYSE Arca,
                                                participants at other exchanges, such
                                                                                                            Internet Web site (http://www.sec.gov/                    Inc. filed with the Securities and
                                                market participants are welcome to
                                                                                                                                                                      Exchange Commission (‘‘Commission’’),
                                                become market participants on the                           rules/sro.shtml). Copies of the
                                                                                                                                                                      pursuant to Section 19(b)(1) of the
                                                Exchange.                                                   submission, all subsequent
                                                                                                                                                                      Securities Exchange Act of 1934
                                                                                                            amendments, all written statements
                                                C. Self-Regulatory Organization’s                                                                                     (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
                                                Statement on Comments on the                                with respect to the proposed rule                         proposed rule change to list and trade
                                                Proposed Rule Change Received From                          change that are filed with the                            shares of the EtherIndex Ether Trust
                                                Members, Participants, or Others                            Commission, and all written                               under NYSE Arca Equities Rule 8.201.
                                                                                                            communications relating to the                            The proposed rule change was
                                                  No written comments were either                           proposed rule change between the                          published for comment in the Federal
                                                solicited or received.                                      Commission and any person, other than                     Register on January 23, 2017.3
                                                III. Date of Effectiveness of the                           those that may be withheld from the                          On February 23, 2017, pursuant to
                                                Proposed Rule Change and Timing for                         public in accordance with the                             Section 19(b)(2) of the Act,4 the
                                                Commission Action                                           provisions of 5 U.S.C. 552, will be                       Commission designated a longer period
                                                   The foregoing rule change has become                     available for Web site viewing and                        within which to approve the proposed
                                                effective pursuant to Section                               printing in the Commission’s Public                       rule change, disapprove the proposed
                                                19(b)(3)(A)(ii) of the Exchange Act 15                      Reference Room, 100 F Street NE.,                         rule change, or institute proceedings to
                                                and Rule 19b–4(f)(2) thereunder,16                          Washington, DC 20549 on official                          determine whether to disapprove the
                                                because it establishes or changes a due,                    business days between the hours of                        proposed rule change.5 On April 21,
                                                or fee.                                                     10:00 a.m. and 3:00 p.m. Copies of such                   2017, the Commission instituted
                                                   At any time within 60 days of the                        filing also will be available for                         proceedings to determine whether to
                                                filing of the proposed rule change, the                     inspection and copying at the principal                   approve or disapprove the proposed
                                                Commission summarily may                                    office of the Exchange. All comments                      rule change.6 The Commission has
                                                temporarily suspend the rule change if                      received will be posted without change;                   received nine comments on the
                                                it appears to the Commission that the                       the Commission does not edit personal                     proposed rule change.7
                                                action is necessary or appropriate in the                   identifying information from
                                                public interest, for the protection of                      submissions. You should submit only                         1 15  U.S.C. 78s(b)(1).
                                                                                                                                                                        2 17  CFR 240.19b–4.
                                                investors, or would otherwise further                       information that you wish to make                            3 See Securities Exchange Act Release No. 79792
                                                the purposes of the Act. If the                             available publicly. All submissions                       (Jan. 13, 2017), 82 FR 7891.
                                                Commission takes such action, the                           should refer to File Number SR–BOX–                          4 15 U.S.C. 78s(b)(2).
                                                Commission shall institute proceedings                      2017–24, and should be submitted on or                       5 See Securities Exchange Act Release No. 80094,

                                                to determine whether the proposed rule                      before August 11, 2017.                                   82 FR 12268 (Mar. 1, 2017).
                                                should be approved or disapproved.                                                                                       6 See Securities Exchange Act Release No. 80501,
                                                                                                              For the Commission, by the Division of                  82 FR 19397 (Apr. 27, 2017). Specifically, the
                                                IV. Solicitation of Comments                                Trading and Markets, pursuant to delegated                Commission instituted proceedings to allow for
                                                                                                            authority.17                                              additional analysis of the proposed rule change’s
                                                  Interested persons are invited to                                                                                   consistency with Section 6(b)(5) of the Act, which
                                                submit written data, views, and                             Eduardo A. Aleman,                                        requires, among other things, that the rules of a
                                                arguments concerning the foregoing,                         Assistant Secretary.                                      national securities exchange be ‘‘designed to
                                                                                                                                                                      prevent fraudulent and manipulative acts and
                                                including whether the proposed rule                         [FR Doc. 2017–15321 Filed 7–20–17; 8:45 am]
                                                                                                                                                                      practices, to promote just and equitable principles
                                                change is consistent with the Act.                          BILLING CODE 8011–01–P                                    of trade,’’ and ‘‘to protect investors and the public
                                                Comments may be submitted by any of                                                                                   interest.’’ See id. at 19397.
                                                the following methods:                                                                                                   7 See Letters from Andrew Quentson (Apr. 26,

                                                                                                                                                                      2017); Charles K. Massey, III, Venture Private
sradovich on DSK3GMQ082PROD with NOTICES




                                                Electronic Comments                                                                                                   Equity Investment (Apr. 26, 2017); Anita Desai
                                                                                                                                                                      (Apr. 29, 2017); Luc Jean (May 3, 2017); Tisho P.
                                                  • Use the Commission’s Internet                                                                                     (May 10, 2017); Kevin McSheehan (May 14, 2017);
                                                comment form (http://www.sec.gov/                                                                                     Bruce Granger (May 16, 2017); Bruce Granger (May
                                                rules/sro.shtml); or                                                                                                  16, 2017); and Alen Lee (May 18, 2017). All
                                                                                                                                                                      comments on the proposed rule change are
                                                                                                                                                                      available on the Commission’s Web site at: https://
                                                  15 15   U.S.C. 78s(b)(3)(A)(ii).                                                                                    www.sec.gov/comments/sr-nysearca-2016-176/
                                                  16 17   CFR 240.19b–4(f)(2).                                   17 17   CFR 200.30–3(a)(12).                         nysearca2016176.htm.



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Document Created: 2017-07-21 06:00:25
Document Modified: 2017-07-21 06:00:25
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 33936 

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