82 FR 55895 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing of Proposed Rule Change To Amend the Minimum Order Size for the Floor Broker Guarantee Provided in Rule 7600(f)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 225 (November 24, 2017)

Page Range		55895-55896
FR Document		2017-25356

Federal Register, Volume 82 Issue 225 (Friday, November 24, 2017)

[Federal Register Volume 82, Number 225 (Friday, November 24, 2017)]
[Notices]
[Pages 55895-55896]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-25356]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82112; File No. SR-BOX-2017-33]

Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing of Proposed Rule Change To Amend the Minimum Order Size for
the Floor Broker Guarantee Provided in Rule 7600(f)

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 6, 2017, BOX Options Exchange LLC (``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 change
from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to amend Rule 7600 to amend the minimum order
size for the Floor Broker guarantee provided in Rule 7600(f). The text
of the proposed rule change is available from the principal office of
the Exchange, at the Commission's Public Reference Room and also on the
Exchange's Internet Web site at http://boxexchange.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in 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 Rule 7600(f). Specifically, the
Exchange is proposing to amend the minimum order size for the Floor
Broker guarantee provided in Rule 7600(f).
Currently, on the Trading Floor, when a Floor Broker holds an order
of the eligible order size or greater, the Floor Broker is entitled to
cross a certain percentage of the order with other orders that he is
holding. The Exchange may determine, on an option by option basis, the
eligible size for an order that may be transacted pursuant to Rule
7600(f); however, the eligible order size may not be less than 500
contracts. The percentage of the order which a Floor Broker is entitled
to cross, after all equal or better priced Public Customer bids or
offers on the BOX Book and any non-Public Customer bids or offers that
are ranked ahead of such Public Customer bids or offers are filled, is
40% of the remaining contracts in the order.
The Exchange is now proposing to decrease the required minimum
eligible order size for the Floor Broker guarantee from 500 contracts
to 50 contracts.\3\ The proposed change would align the eligible order
size with that of another exchange.\4\ The Exchange notes that it may
still determine the eligible order size, provided that it is at least
50 contracts. Changes to the eligible order size will be communicated
to Participants via Regulatory Circular pursuant to BOX Rule
7600(f)(2).
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\3\ The Exchange notes that Participants have requested this
change. The Exchange believes that the proposed change will result
in more transactions on the BOX Trading Floor.
\4\ See CBOE Rule 6.74(d). The Exchange notes that CBOE Rule
6.74(d) also refers to facilitation and solicitation orders. The
Exchange does not currently differentiate between facilitated orders
or solicited orders on the BOX Trading Floor.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \5\ in general, and furthers the objectives of Section
6(b)(5) of the Act \6\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest.
Specifically, the Exchange believes that the proposed change offers
Floor Brokers a greater incentive to execute transactions on the BOX
Trading Floor. Further, the Exchange believes that the proposed change
is appropriate as a similar minimum eligible order size is present at
another options exchange with a trading floor. Further, the Exchange
believes that the proposed change will benefit market participants as
the decreased minimum eligible order size may result in more
transactions on the exchange.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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In addition, the proposed rule change would promote a free and open
market by permitting the Exchange to compete with other options
exchanges. In this regard, competition would result in benefits to the
investing public. As noted above, the proposed change would align the
eligible order size with the rules of another options exchange with an
open outcry trading floor.\7\ As such, permitting the Exchange to
operate on an even playing field relative to other exchanges removes
impediments to and perfects the mechanism for a free and open market
and a national market system.
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\7\ See CBOE Rule 6.74(d).

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[[Page 55896]]

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 that is not necessary or appropriate
in furtherance of the purposes of the Act. As discussed above, the
proposed change simply aligns the eligible order size for the Floor
Broker guarantee with that of another exchange with a trading floor. As
such, the proposed change will allow the Exchange to compete with other
options exchanges currently offering a reduced eligible order size with
regard to the Floor Broker guarantee.

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

Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be 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 rule-comments@sec.gov. Please include
File Number SR-BOX-2017-33 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-2017-33. 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 the 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-2017-33 and should be
submitted on or before December 15, 2017.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-25356 Filed 11-22-17; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Notices 55895

disapproving the proposed rule change change as described in Items I and II order size for the Floor Broker guarantee
by not more than 60 days if the below, which Items have been prepared from 500 contracts to 50 contracts.3 The
Commission determines that a longer by the self-regulatory organization. The proposed change would align the
period is appropriate and publishes the Commission is publishing this notice to eligible order size with that of another
reasons for such determination. The solicit comments on the proposed rule exchange.4 The Exchange notes that it
proposed rule change was published for change from interested persons. may still determine the eligible order
notice and comment in the Federal size, provided that it is at least 50
I. Self-Regulatory Organization’s
Register on May 22, 2017. November 18, contracts. Changes to the eligible order
Statement of the Terms of Substance of
2017 is 180 days from that date, and size will be communicated to
the Proposed Rule Change
January 17, 2018 is 240 days from that
The Exchange proposes to amend Participants via Regulatory Circular
date.
The Commission finds it appropriate Rule 7600 to amend the minimum order pursuant to BOX Rule 7600(f)(2).
to designate a longer period within size for the Floor Broker guarantee 2. Statutory Basis
which to issue an order approving or provided in Rule 7600(f). The text of the
disapproving the proposed rule change proposed rule change is available from The Exchange believes that its
so that it has sufficient time to consider the principal office of the Exchange, at proposal is consistent with Section 6(b)
this proposed rule change, the issues the Commission’s Public Reference of the Act 5 in general, and furthers the
raised in the comment letters that have Room and also on the Exchange’s objectives of Section 6(b)(5) of the Act 6
been submitted in connection therewith, Internet Web site at http:// in particular, in that it is designed to
and the Exchange’s responses to the boxexchange.com. promote just and equitable principles of
comments. The Commission also notes II. Self-Regulatory Organization’s trade, to remove impediments to and
that any data received, or analyses or Statement of the Purpose of, and perfect the mechanism of a free and
studies received by the Commission or Statutory Basis for, the Proposed Rule open market and a national market
performed by Commission staff, will be Change system, and, in general to protect
posted on the Commission’s Internet investors and the public interest.
Web site at https://www.sec.gov/ In its filing with the Commission, the
self-regulatory organization included Specifically, the Exchange believes that
comments/sr-batsbzx-2017-34/batsbzx
statements concerning the purpose of, the proposed change offers Floor
201734.htm. Accordingly, the
Commission, pursuant to Section and basis for, the proposed rule change Brokers a greater incentive to execute
19(b)(2) of the Act,10 designates January and discussed any comments it received transactions on the BOX Trading Floor.
17, 2018, as the date by which the on the proposed rule change. The text Further, the Exchange believes that the
Commission should either approve or of these statements may be examined at proposed change is appropriate as a
disapprove the proposed rule change the places specified in Item IV below. similar minimum eligible order size is
(File No. SR–BatsBZX–2017–34). The self-regulatory organization has present at another options exchange
prepared summaries, set forth in with a trading floor. Further, the
For the Commission, by the Division of Sections A, B, and C below, of the most
Trading and Markets, pursuant to delegated Exchange believes that the proposed
authority.11 significant aspects of such statements. change will benefit market participants
Eduardo A. Aleman, A. Self-Regulatory Organization’s as the decreased minimum eligible
Assistant Secretary. Statement of the Purpose of, and order size may result in more
[FR Doc. 2017–25353 Filed 11–22–17; 8:45 am] Statutory Basis for, the Proposed Rule transactions on the exchange.
BILLING CODE 8011–01–P Change In addition, the proposed rule change
1. Purpose would promote a free and open market
by permitting the Exchange to compete
SECURITIES AND EXCHANGE The Exchange proposes to amend
Rule 7600(f). Specifically, the Exchange with other options exchanges. In this
COMMISSION regard, competition would result in
is proposing to amend the minimum
[Release No. 34–82112; File No. SR–BOX– order size for the Floor Broker guarantee benefits to the investing public. As
2017–33] provided in Rule 7600(f). noted above, the proposed change
Currently, on the Trading Floor, when would align the eligible order size with
Self-Regulatory Organizations; BOX the rules of another options exchange
a Floor Broker holds an order of the
Options Exchange LLC; Notice of with an open outcry trading floor.7 As
eligible order size or greater, the Floor
Filing of Proposed Rule Change To such, permitting the Exchange to
Broker is entitled to cross a certain
Amend the Minimum Order Size for the percentage of the order with other operate on an even playing field relative
Floor Broker Guarantee Provided in orders that he is holding. The Exchange to other exchanges removes
Rule 7600(f) may determine, on an option by option impediments to and perfects the
November 17, 2017. basis, the eligible size for an order that mechanism for a free and open market
Pursuant to Section 19(b)(1) of the may be transacted pursuant to Rule and a national market system.
Securities Exchange Act of 1934 7600(f); however, the eligible order size
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 may not be less than 500 contracts. The 3 The Exchange notes that Participants have

notice is hereby given that on November percentage of the order which a Floor requested this change. The Exchange believes that
6, 2017, BOX Options Exchange LLC Broker is entitled to cross, after all equal the proposed change will result in more
sradovich on DSK3GMQ082PROD with NOTICES

(‘‘Exchange’’) filed with the Securities or better priced Public Customer bids or transactions on the BOX Trading Floor.
4 See CBOE Rule 6.74(d). The Exchange notes that
and Exchange Commission offers on the BOX Book and any non-
CBOE Rule 6.74(d) also refers to facilitation and
(‘‘Commission’’) the proposed rule Public Customer bids or offers that are
solicitation orders. The Exchange does not currently
ranked ahead of such Public Customer differentiate between facilitated orders or solicited
10 Id. bids or offers are filled, is 40% of the orders on the BOX Trading Floor.
11 17 CFR 200.30–3(a)(57). remaining contracts in the order. 5 15 U.S.C. 78f(b).

1 15 U.S.C. 78s(b)(1). The Exchange is now proposing to 6 15 U.S.C. 78f(b)(5).

2 17 CFR 240.19b–4. decrease the required minimum eligible 7 See CBOE Rule 6.74(d).

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55896 Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Notices

B. Self-Regulatory Organization’s Commission process and review your (‘‘MIAX Options’’ or ‘‘Exchange’’) filed
Statement on Burden on Competition comments more efficiently, please use with the Securities and Exchange
The Exchange does not believe that only one method. The Commission will Commission (‘‘Commission’’) a
the proposed rule change will impose post all comments on the Commission’s proposed rule change as described in
any burden on competition that is not Internet Web site (http://www.sec.gov/ Items I, II, and III below, which Items
necessary or appropriate in furtherance rules/sro.shtml). Copies of the have been prepared by the Exchange.
of the purposes of the Act. As discussed submission, all subsequent The Commission is publishing this
above, the proposed change simply amendments, all written statements notice to solicit comments on the
aligns the eligible order size for the with respect to the proposed rule proposed rule change from interested
Floor Broker guarantee with that of change that are filed with the persons.
another exchange with a trading floor. Commission, and all written
I. Self-Regulatory Organization’s
As such, the proposed change will allow communications relating to the
Statement of the Terms of Substance of
the Exchange to compete with other proposed rule change between the
the Proposed Rule Change
Commission and any person, other than
options exchanges currently offering a The Exchange is filing a proposal to
those that may be withheld from the
reduced eligible order size with regard amend Exchange Rule 612, Aggregate
public in accordance with the
to the Floor Broker guarantee. Risk Manager (‘‘ARM’’).
provisions of 5 U.S.C. 552, will be
C. Self-Regulatory Organization’s available for Web site viewing and The text of the proposed rule change
Statement on Comments on the printing in the Commission’s Public is available on the Exchange’s Web site
Proposed Rule Change Received From Reference Room, 100 F Street NE., at http://www.miaxoptions.com/rule-
Members, Participants, or Others Washington, DC 20549 on official filings, at MIAX’s principal office, and
business days between the hours of at the Commission’s Public Reference
The Exchange has neither solicited Room.
nor received comments on the proposed 10:00 a.m. and 3:00 p.m. Copies of the
rule change. filing also will be available for II. Self-Regulatory Organization’s
inspection and copying at the principal Statement of the Purpose of, and
III. Date of Effectiveness of the office of the Exchange. All comments Statutory Basis for, the Proposed Rule
Proposed Rule Change and Timing for received will be posted without change. Change
Commission Action Persons submitting comments are
cautioned that we do not redact or edit In its filing with the Commission, the
Within 45 days of the date of Exchange included statements
publication of this notice in the Federal personal identifying information from
comment submissions. You should concerning the purpose of and basis for
Register or within such longer period the proposed rule change and discussed
up to 90 days (i) as the Commission may submit only information that you wish
to make available publicly. All any comments it received on the
designate if it finds such longer period proposed rule change. The text of these
to be appropriate and publishes its submissions should refer to File
Number SR–BOX–2017–33 and should statements may be examined at the
reasons for so finding or (ii) as to which places specified in Item IV below. The
the self-regulatory organization be submitted on or before December 15,
2017. Exchange has prepared summaries, set
consents, the Commission will: forth in sections A, B, and C below, of
(A) By order approve or disapprove For the Commission, by the Division of the most significant aspects of such
the proposed rule change, or Trading and Markets, pursuant to delegated statements.
(B) institute proceedings to determine authority.8
whether the proposed rule change Eduardo A. Aleman, A. Self-Regulatory Organization’s
should be disapproved. Assistant Secretary. Statement of the Purpose of, and
[FR Doc. 2017–25356 Filed 11–22–17; 8:45 am] Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments Change
BILLING CODE 8011–01–P
Interested persons are invited to
submit written data, views and 1. Purpose
arguments concerning the foregoing, SECURITIES AND EXCHANGE The Exchange proposes to amend
including whether the proposed rule COMMISSION Exchange Rule 612, Aggregate Risk
change is consistent with the Act. Manager (‘‘ARM’’), subsection (b)(1)
Comments may be submitted by any of [Release No. 34–82111; File No. SR–MIAX– Aggregate Risk Manager, and
2017–47] Interpretations and Policies .01, to make
the following methods:
non-substantive technical changes to
Electronic Comments Self-Regulatory Organizations; Miami
add additional detail to the rule text, all
• Use the Commission’s Internet International Securities Exchange,
existing Exchange functionality
LLC; Notice of Filing and Immediate
comment form (http://www.sec.gov/ discussed in this proposal will remain
Effectiveness of a Proposed Rule
rules/sro.shtml); or intact.
• Send an email to rule-comments@ Change To Amend MIAX Options Rule
Exchange Rule 612(b)(1) provides that
sec.gov. Please include File Number SR– 612, Aggregate Risk Manager (‘‘ARM’’)
the System 3 will engage the Aggregate
BOX–2017–33 on the subject line. November 17, 2017. Risk Manager in a particular option
Paper Comments Pursuant to the provisions of Section class when the counting program has
19(b)(1) of the Securities Exchange Act determined that a Market Maker 4 has
• Send paper comments in triplicate
sradovich on DSK3GMQ082PROD with NOTICES

of 1934 (‘‘Act’’) 1 and Rule 19b–4 traded during the specified time period
to Secretary, Securities and Exchange thereunder,2 notice is hereby given that
Commission, 100 F Street NE., on November 14, 2017, Miami 3 The term ‘‘System’’ means the automated

Washington, DC 20549–1090. International Securities Exchange, LLC trading system used by the Exchange for the trading
All submissions should refer to File of securities. See Exchange Rule 100.
4 The term ‘‘Market Makers’’ refers to ‘‘Lead
Number SR–BOX–2017–33. This file 8 17 CFR 200.30–3(a)(12). Market Makers’’, ‘‘Primary Lead Market Makers’’
number should be included on the 1 15 U.S.C. 78s(b)(1). and ‘‘Registered Market Makers’’ collectively. See
subject line if email is used. To help the 2 17 CFR 240.19b–4. Exchange Rule 100.

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Document Created: 2017-11-22 23:33:55
Document Modified: 2017-11-22 23:33:55

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 55895