82 FR 55888 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7050 (Minimum Trading Increments)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 225 (November 24, 2017)
Federal Register Volume 82, Issue 225 (November 24, 2017)
| Page Range | 55888-55890 | |
| FR Document | 2017-25345 |
[Federal Register Volume 82, Number 225 (Friday, November 24, 2017)] [Notices] [Pages 55888-55890] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-25345] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82114; File No. SR-BOX-2017-34] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7050 (Minimum Trading Increments) November 17, 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 November 8, 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 Rule 7050 (Minimum Trading Increments). 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://boxoptions.com. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in 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 Currently, BOX Rule 7050(a) establishes minimum trading increments for single leg options contracts traded on BOX. Rule 7050(a) states that with regard to minimum trading increments for single leg options contracts, ``the following principles shall apply: (1) If the options contract is trading at less than $3.00 per option, five (5) cents; (2) if the options contract is trading at $3.00 per option or higher, ten (10) cents; and (3) if the options contract is traded pursuant to the procedures of the Improvement Period in Rules 7150 then one (1) cent.'' Further, BOX Rule 7050(b) establishes an exception \3\ to 7050(a) while Rule 7050(c) and (d) establish cross references to existing rules with [[Page 55889]] different minimum trading increments than those outlined in Rule 7050(a).\4\ --------------------------------------------------------------------------- \3\ Rule 7050(b) states that ``the Exchange will operate a pilot program to permit options classes to be quoted and traded in increments as low as one (1) cent.'' \4\ Rule 7050(c) states that ``the minimum trading increment for Mini Options shall be determined in accordance with IM-5050-10(d) to BOX Rule 5050.'' Rule 7050(d) states that the minimum trading increment for Jumbo SPY Options shall be determined in accordance with Rule 5050(e)(4). --------------------------------------------------------------------------- The purpose of the proposed rule change is to amend Rule 7050 to establish a cross reference to an existing rule about minimum trading increments with regard to Complex Orders. Specifically, the Exchange proposes Rule 7050(e) which states that notwithstanding any provision of Rule 7050, the minimum trading increment for Complex Orders shall be determined in accordance with Rule 7240(b)(1).\5\ The Exchange notes that the proposed change will provide clarity with respect to the Exchange's minimum trading increment rule and how it relates to Complex Orders on the Exchange. --------------------------------------------------------------------------- \5\ Bids and offers on Complex Orders may be expressed in any decimal price, and the leg(s) of a Complex Order may be executed in one cent increments, regardless of the minimum increments otherwise applicable to the individual legs of the order. See BOX Rule 7240(b)(1). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act,\6\ in general, and Section 6(b)(5) of the Act,\7\ in particular, in that it is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general protect investors and the public interest. The Exchange believes it is appropriate to make the proposed change to its rules so that market participants and investors have a clear and accurate understanding of the meaning of the Exchange's rules. By adding the proposed language, the Exchange is eliminating any potential for confusion and ensuring that market participants, regulators and the public can more easily navigate the Exchange's Rulebook. The Exchange believes that the proposed rule change is not unfairly discriminatory because it treats all market participants equally and will not have an adverse impact on any market participant. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. In particular, the Exchange does not believe that the proposal will impose a burden on intermarket competition because the proposed change simply attempts to clarify the Exchange rules and reduce any potential for investor confusion. Further, the Exchange does not believe that the proposed rule change imposes a burden on intramarket competition because the proposed provision applies to all market participants equally. As such, 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 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 \8\ and Rule 19b-4(f)(6) thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 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 \10\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \11\ 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 Commission believes that waiver of the operative delay is consistent with the protection of investors and the public interest because the proposal will provide additional clarity to the Exchange's rules and reduce the potential for investor confusion. As noted above, BOX Rule 7050 establishes the minimum trading increment for single options traded on the Exchange. The proposal modifies BOX Rule 7050 by adding a cross-reference to indicate that the trading increment for complex orders appears in existing BOX Rule 7240(b)(1). The Commission notes that the proposal does not modify the trading increment for complex orders. Accordingly, the Commission hereby waives the operative delay and designates the proposal as operative upon filing.\12\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ 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 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-2017-34 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-2017-34. 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 [[Page 55890]] 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. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-BOX-2017-34 and should be submitted on or before December 15, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-25345 Filed 11-22-17; 8:45 am] BILLING CODE 8011-01-P
![55888 Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Notices
contracts traded on the Exchange. To comments more efficiently, please use (‘‘Commission’’) the proposed rule
the extent that this purpose is achieved, only one method. The Commission will change as described in Items I and II
all the Exchange’s market participants post all comments on the Commission’s below, which Items have been prepared
should benefit from the improved Internet Web site (http://www.sec.gov/ by the self-regulatory organization. The
market liquidity. Enhanced market rules/sro.shtml). Copies of the Commission is publishing this notice to
quality and increased transaction submission, all subsequent solicit comments on the proposed rule
volume that results from the anticipated amendments, all written statements from interested persons.
increase in order flow directed to the with respect to the proposed rule
Exchange will benefit all market change that are filed with the I. Self-Regulatory Organization’s
participants and improve competition Commission, and all written Statement of the Terms of Substance of
on the Exchange. communications relating to the the Proposed Rule Change
proposed rule change between the
C. Self-Regulatory Organization’s Commission and any person, other than The Exchange proposes to amend
Statement on Comments on the those that may be withheld from the Rule 7050 (Minimum Trading
Proposed Rule Change Received From public in accordance with the Increments). The text of the proposed
Members, Participants, or Others provisions of 5 U.S.C. 552, will be rule change is available from the
The Exchange has not solicited, and available for Web site viewing and principal office of the Exchange, at the
does not intend to solicit, comments on printing in the Commission’s Public Commission’s Public Reference Room
this proposed rule change. The Reference Room, 100 F Street NE., and also on the Exchange’s Internet Web
Exchange has not received any written Washington, DC 20549 on official site at http://boxoptions.com.
comments from members or other business days between the hours of
II. Self-Regulatory Organization’s
interested parties. 10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for Statement of the Purpose of, and
III. Date of Effectiveness of the inspection and copying at the principal Statutory Basis for, the Proposed Rule
Proposed Rule Change and Timing for office of the Exchange. All comments Change
Commission Action received will be posted without change. In its filing with the Commission, the
The foregoing rule change has become Persons submitting comments are self-regulatory organization included
effective pursuant to Section 19(b)(3)(A) cautioned that we do not redact or edit
statements concerning the purpose of,
of the Act 26 and paragraph (f) of Rule personal identifying information from
and basis for, the proposed rule change
19b–4 thereunder.27 At any time within comment submissions. You should
60 days of the filing of the proposed rule submit only information that you wish and discussed any comments it received
change, the Commission summarily may to make available publicly. All on the proposed rule change. The text
temporarily suspend such rule change if submissions should refer to File of these statements may be examined at
it appears to the Commission that such Number SR–BatsEDGX–2017–50, and the places specified in Item IV below.
action is necessary or appropriate in the should be submitted on or before The self-regulatory organization has
public interest, for the protection of December 15, 2017. prepared summaries, set forth in
investors, or otherwise in furtherance of Sections A, B, and C below, of the most
For the Commission, by the Division of
the purposes of the Act. Trading and Markets, pursuant to delegated
significant aspects of such statements.
authority.28 A. Self-Regulatory Organization’s
IV. Solicitation of Comments
Eduardo A. Aleman, Statement of the Purpose of, and
Interested persons are invited to Assistant Secretary. Statutory Basis for, the Proposed Rule
submit written data, views, and [FR Doc. 2017–25352 Filed 11–22–17; 8:45 am] Change
arguments concerning the foregoing,
BILLING CODE 8011–01–P
including whether the proposed rule 1. Purpose
change is consistent with the Act.
Comments may be submitted by any of Currently, BOX Rule 7050(a)
SECURITIES AND EXCHANGE
the following methods: establishes minimum trading
COMMISSION
increments for single leg options
Electronic Comments [Release No. 34–82114; File No. SR–BOX– contracts traded on BOX. Rule 7050(a)
• Use the Commission’s Internet 2017–34] states that with regard to minimum
comment form (http://www.sec.gov/ trading increments for single leg options
Self-Regulatory Organizations; BOX
rules/sro.shtml); or contracts, ‘‘the following principles
• Send an email to rule-comments@ Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of shall apply: (1) If the options contract is
sec.gov. Please include File Number SR– trading at less than $3.00 per option,
BatsEDGX–2017–50 on the subject line. a Proposed Rule Change To Amend
Rule 7050 (Minimum Trading five (5) cents; (2) if the options contract
Paper Comments Increments) is trading at $3.00 per option or higher,
ten (10) cents; and (3) if the options
• Send paper comments in triplicate November 17, 2017. contract is traded pursuant to the
to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the procedures of the Improvement Period
Commission, 100 F Street NE., Securities Exchange Act of 1934 in Rules 7150 then one (1) cent.’’
Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Further, BOX Rule 7050(b) establishes
sradovich on DSK3GMQ082PROD with NOTICES
All submissions should refer to File notice is hereby given that on November an exception 3 to 7050(a) while Rule
Number SR–BatsEDGX–2017–50. This 8, 2017, BOX Options Exchange LLC 7050(c) and (d) establish cross
file number should be included on the (the ‘‘Exchange’’) filed with the references to existing rules with
subject line if email is used. To help the Securities and Exchange Commission
Commission process and review your 3 Rule 7050(b) states that ‘‘the Exchange will
28 17 CFR 200.30–3(a)(12). operate a pilot program to permit options classes to
26 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
be quoted and traded in increments as low as one
27 17 CFR 240.19b–4(f). 2 17 CFR 240.19b–4. (1) cent.’’
VerDate Sep<11>2014 18:19 Nov 22, 2017 Jkt 244001 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 E:\FR\FM\24NON1.SGM 24NON1](https://thefederalregister.org/doc/82_FR_56113/page/1.svg)
![55890 Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Notices
Commission, and all written net asset value (‘‘NAV’’); (c) certain Chief Counsel, at (202) 551–6825
communications relating to the Funds to pay redemption proceeds, (Division of Investment Management,
proposed rule change between the under certain circumstances, more than Chief Counsel’s Office).
Commission and any person, other than seven days after the tender of shares for SUPPLEMENTARY INFORMATION: The
those that may be withheld from the redemption; (d) certain affiliated following is a summary of the
public in accordance with the persons of a Fund to deposit securities application. The complete application
provisions of 5 U.S.C. 552, will be into, and receive securities from, the may be obtained via the Commission’s
available for Web site viewing and Fund in connection with the purchase Web site by searching for the file
printing in the Commission’s Public and redemption of Creation Units; and number, or for an applicant using the
Reference Room, on official business (e) certain registered management Company name box, at http://
days between the hours of 10:00 a.m. investment companies and unit www.sec.gov/search/search.htm or by
and 3:00 p.m., located at 100 F Street investment trusts outside of the same calling (202) 551–8090.
NE., Washington, DC 20549. Copies of group of investment companies as the
Funds (‘‘Funds of Funds’’) to acquire Summary of the Application
such filing also will be available for
inspection and copying at the principal shares of the Funds. 1. Applicants request an order that
office of the Exchange. All comments would allow Funds to operate as index
received will be posted without change. APPLICANTS: Motley Fool Asset exchange traded funds (‘‘ETFs’’).1 Fund
Persons submitting comments are Management, LLC (the ‘‘Initial shares will be purchased and redeemed
cautioned that we do not redact or edit Adviser’’), a Delaware limited liability at their NAV in Creation Units only. All
personal identifying information from company registered as an investment orders to purchase Creation Units and
comment submissions. You should adviser under the Investment Advisers all redemption requests will be placed
submit only information that you wish Act of 1940; The RBB Fund, Inc. (the by or through an ‘‘Authorized
to make available publicly. All ‘‘Company’’), a Maryland corporation Participant’’, which will have signed a
submissions should refer to File registered under the Act as an open-end participant agreement with the
Number SR–BOX–2017–34 and should management investment company with Distributor. Shares will be listed and
be submitted on or before December 15, multiple series; and Quasar Distributors, traded individually on a national
2017. LLC (the ‘‘Distributor’’), a Delaware securities exchange, where share prices
limited liability company and broker- will be based on the current bid/offer
For the Commission, by the Division of market. Any order granting the
dealer registered under the Securities
Trading and Markets, pursuant to delegated
authority.13 Exchange Act of 1934 (‘‘Exchange Act’’). requested relief would be subject to the
DATES: The application was filed on July terms and conditions stated in the
Eduardo A. Aleman,
21, 2017, and amended on October 20, application.
Assistant Secretary. 2. Each Fund will hold investment
2017, and November 14, 2017.
[FR Doc. 2017–25345 Filed 11–22–17; 8:45 am] positions selected to correspond closely
HEARING OR NOTIFICATION OF HEARING: An
BILLING CODE 8011–01–P
order granting the requested relief will to the performance of an underlying
be issued unless the Commission orders index. In the case of self-indexing
a hearing. Interested persons may Funds, an affiliated person, as defined
SECURITIES AND EXCHANGE in section 2(a)(3) of the Act (‘‘Affiliated
COMMISSION request a hearing by writing to the
Commission’s Secretary and serving Person’’), or an affiliated person of an
[Investment Company Act Release No. Affiliated Person (‘‘Second-Tier
applicants with a copy of the request,
32899; 812–14804] Affiliate’’), of the Company or a Fund,
personally or by mail. Hearing requests
of an Adviser, of any sub-adviser to or
should be received by the Commission
Motley Fool Asset Management, LLC, promoter of a Fund, or of the Distributor
by 5:30 p.m. on December 12, 2017, and
et al.; Notice of Application will compile, create, sponsor, or
should be accompanied by proof of
maintain the underlying index.2
November 17, 2017 service on applicants, in the form of an 3. Shares will be purchased and
AGENCY: Securities and Exchange affidavit, or for lawyers, a certificate of redeemed in Creation Units and
Commission (‘‘Commission’’). service. Pursuant to rule 0–5 under the generally on an in-kind basis. Except
ACTION: Notice of an application for an Act, hearing requests should state the where the purchase or redemption will
order under section 6(c) of the nature of the writer’s interest, any facts include cash under the limited
Investment Company Act of 1940 (the bearing upon the desirability of a
‘‘Act’’) for an exemption from sections hearing on the matter, the reason for the 1 Applicants request that the order apply to the
2(a)(32), 5(a)(1), 22(d), and 22(e) of the request, and the issues contested. existing series of the Company that are index ETFs
Act and rule 22c–1 under the Act, under Persons who wish to be notified of a and any additional series of the Company, and any
hearing may request notification by other open-end management investment company
sections 6(c) and 17(b) of the Act for an or series thereof, that may be created in the future
exemption from sections 17(a)(1) and writing to the Commission’s Secretary. (each, included in the term ‘‘Fund’’), each of which
17(a)(2) of the Act, and under section ADDRESSES: Secretary, Securities and will operate as an ETF and will track a specified
Exchange Commission, 100 F Street NE., index comprised of domestic or foreign equity and/
12(d)(1)(J) for an exemption from or fixed income securities (each, an ‘‘Underlying
sections 12(d)(1)(A) and 12(d)(1)(B) of Washington, DC 20549–1090; Index’’). Any Fund will (a) be advised by the Initial
the Act. The requested order would Applicants: The Initial Adviser, 2000 Adviser or an entity controlling, controlled by, or
permit (a) index-based series of certain Duke Street, Suite 175, Alexandria, under common control with the Initial Adviser
Virginia 22134; the Company, 615 East (each, an ‘‘Adviser’’) and (b) comply with the terms
sradovich on DSK3GMQ082PROD with NOTICES
open-end management investment and conditions of the application.
companies (‘‘Funds’’) to issue shares Michigan Street, 4th Floor, Milwaukee, 2 Each Self-Indexing Fund will post on its Web
redeemable in large aggregations only Wisconsin 53202; the Distributor, 777 site the identities and quantities of the investment
(‘‘Creation Units’’); (b) secondary market East Wisconsin Avenue, 6th Floor, positions that will form the basis for the Fund’s
transactions in Fund shares to occur at Milwaukee, Wisconsin 53202. calculation of its NAV at the end of the day.
Applicants believe that requiring Self-Indexing
negotiated market prices rather than at FOR FURTHER INFORMATION CONTACT: Nick
Funds to maintain full portfolio transparency will
Cordell, Senior Counsel, at (202) 551– help address, together with other protections,
13 17 CFR 200.30–3(a)(12). 5496; or Holly Hunter-Ceci, Assistant conflicts of interest with respect to such Funds.
VerDate Sep<11>2014 18:19 Nov 22, 2017 Jkt 244001 PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 E:\FR\FM\24NON1.SGM 24NON1](https://thefederalregister.org/doc/82_FR_56113/page/3.svg)
Document Created: 2017-11-22 23:33:57
Document Modified: 2017-11-22 23:33:57
| 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 55888 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR