83 FR 1651 - Self-Regulatory Organizations; BOX Options Exchange LLC; Order Approving a Proposed Rule Change To Amend the Minimum Order Size for the Floor Broker Guarantee Provided in BOX Rule 7600(f)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 9 (January 12, 2018)
Federal Register Volume 83, Issue 9 (January 12, 2018)
| Page Range | 1651-1651 | |
| FR Document | 2018-00407 |
[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)] [Notices] [Page 1651] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-00407] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82456; File No. SR-BOX-2017-33] Self-Regulatory Organizations; BOX Options Exchange LLC; Order Approving a Proposed Rule Change To Amend the Minimum Order Size for the Floor Broker Guarantee Provided in BOX Rule 7600(f) January 8, 2018. I. Introduction On November 6, 2017, BOX Options Exchange LLC (the ``Exchange'' or ``BOX'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to amend the minimum eligible order size from 500 contracts to 50 contracts to qualify for the Floor Broker guarantee described in BOX Rule 7600(f). The proposed rule change was published for comment in the Federal Register on November 24, 2017.\3\ The Commission received no comments on the proposed rule change. This order approves the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 82112 (November 17, 2017), 82 FR 55895 (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change 4 --------------------------------------------------------------------------- \4\ For a more detailed description of the proposed rule change, see Notice, supra note 3. --------------------------------------------------------------------------- Currently, BOX Rule 7600(f) provides that a Floor Broker holding an order of the eligible order size or greater 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, 40% of the remaining contracts in the order with other orders he is holding.\5\ Under the current rule, the Exchange may determine, on an option by option basis, the eligible order size for an order that may be transacted pursuant to BOX Rule 7600(f), but the minimum eligible order size may not be less than 500 contracts.\6\ Under the proposed rule change, the Exchange proposes to reduce the minimum eligible order size from 500 contracts to 50 contracts.\7\ --------------------------------------------------------------------------- \5\ See BOX Rule 7600(f). \6\ See BOX Rule 7600(f)(2). Pursuant to BOX Rule 7600(f)(2), the Exchange is required to communicate any changes to the eligible order size to Participants via circular. \7\ See proposed BOX Rule 7600(f)(2). --------------------------------------------------------------------------- III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange.\8\ In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,\9\ which requires, among other things, that the Exchange's rules be designed to prevent fraudulent and manipulative acts and practices, 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. --------------------------------------------------------------------------- \8\ In approving this proposed rule change, the Commission notes that it has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \9\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission notes that the proposed rule change does not modify the size of the Floor Broker guarantee, but rather modifies the size of the order necessary in order to receive the guarantee. Orders submitted by Floor Brokers for execution must execute at a price equal to or better than the NBBO and (1) may not trade through any equal or better priced Public Customer bids or offers on the BOX Book \10\ or any non- Public Customer bids or offers on the BOX Book that are ranked ahead of such equal or better priced Public Customer bids or offers, and (2) may not trade through any non-Public Customer bids or offers on the BOX Book that are priced better than the proposed execution price.\11\ In addition, the Commission notes that the proposed change is similar to the rules of other options exchanges \12\ and therefore, the Commission does not believe that the reduction in the minimum order size requirement raises any new regulatory issues. --------------------------------------------------------------------------- \10\ See BOX Rule 100(a)(10) (defining BOX Book). \11\ See BOX Rule 7600(c). \12\ See Cboe Options Rule 6.74(d) and NYSE Arca Inc. Rule 6.47- O(b)(1). --------------------------------------------------------------------------- For the foregoing reasons, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act \13\ and the rules and regulations thereunder applicable to a national securities exchange. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\14\ that the proposed rule change (SR-BOX-2017-33), be, and it hereby is, approved. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-00407 Filed 1-11-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 9 / Friday, January 12, 2018 / Notices 1651
public in accordance with the This order approves the proposed rule offers on the BOX Book 10 or any non-
provisions of 5 U.S.C. 552, will be change. Public Customer bids or offers on the
available for website viewing and BOX Book that are ranked ahead of such
II. Description of the Proposed Rule
printing in the Commission’s Public equal or better priced Public Customer
Change 4
Reference Room, 100 F Street NE, bids or offers, and (2) may not trade
Washington, DC 20549 on official Currently, BOX Rule 7600(f) provides through any non-Public Customer bids
business days between the hours of that a Floor Broker holding an order of or offers on the BOX Book that are
10:00 a.m. and 3:00 p.m. Copies of the the eligible order size or greater is priced better than the proposed
filing also will be available for entitled to cross, after all equal or better execution price.11 In addition, the
inspection and copying at the principal priced Public Customer bids or offers on Commission notes that the proposed
office of the Exchange. All comments the BOX Book and any non-Public change is similar to the rules of other
received will be posted without change. Customer bids or offers that are ranked options exchanges 12 and therefore, the
Persons submitting comments are ahead of such Public Customer bids or Commission does not believe that the
cautioned that we do not redact or edit offers are filled, 40% of the remaining reduction in the minimum order size
personal identifying information from contracts in the order with other orders requirement raises any new regulatory
comment submissions. You should he is holding.5 Under the current rule, issues.
submit only information that you wish the Exchange may determine, on an For the foregoing reasons, the
to make available publicly. All option by option basis, the eligible order Commission finds that the proposed
submissions should refer to File size for an order that may be transacted rule change is consistent with Section
Number CboeEDGX–2017–010 and pursuant to BOX Rule 7600(f), but the 6(b)(5) of the Act 13 and the rules and
should be submitted on or before minimum eligible order size may not be regulations thereunder applicable to a
February 2, 2018. less than 500 contracts.6 Under the national securities exchange.
proposed rule change, the Exchange
For the Commission, by the Division of proposes to reduce the minimum IV. Conclusion
Trading and Markets, pursuant to delegated eligible order size from 500 contracts to
authority.25 It is therefore ordered, pursuant to
50 contracts.7 Section 19(b)(2) of the Act,14 that the
Eduardo A. Aleman,
III. Discussion and Commission proposed rule change (SR–BOX–2017–
Assistant Secretary.
Findings 33), be, and it hereby is, approved.
[FR Doc. 2018–00413 Filed 1–11–18; 8:45 am]
After careful review, the Commission For the Commission, by the Division of
BILLING CODE 8011–01–P
Trading and Markets, pursuant to delegated
finds that the proposed rule change is authority.15
consistent with the requirements of the
Eduardo A. Aleman,
SECURITIES AND EXCHANGE Act and the rules and regulations
COMMISSION thereunder applicable to a national Assistant Secretary.
securities exchange.8 In particular, the [FR Doc. 2018–00407 Filed 1–11–18; 8:45 am]
[Release No. 34–82456; File No. SR–BOX– Commission finds that the proposed BILLING CODE 8011–01–P
2017–33] rule change is consistent with Section
6(b)(5) of the Act,9 which requires,
Self-Regulatory Organizations; BOX among other things, that the Exchange’s SOCIAL SECURITY ADMINISTRATION
Options Exchange LLC; Order rules be designed to prevent fraudulent
Approving a Proposed Rule Change To [Docket No: SSA–2017–0069]
and manipulative acts and practices, to
Amend the Minimum Order Size for the promote just and equitable principles of Agency Information Collection
Floor Broker Guarantee Provided in trade, to remove impediments to and Activities: Proposed Request and
BOX Rule 7600(f) perfect the mechanism of a free and Comment Request
open market and a national market
January 8, 2018. The Social Security Administration
system, and, in general, to protect
I. Introduction investors and the public interest. (SSA) publishes a list of information
The Commission notes that the collection packages requiring clearance
On November 6, 2017, BOX Options by the Office of Management and
proposed rule change does not modify
Exchange LLC (the ‘‘Exchange’’ or Budget (OMB) in compliance with
the size of the Floor Broker guarantee,
‘‘BOX’’) filed with the Securities and Public Law 104–13, the Paperwork
but rather modifies the size of the order
Exchange Commission (‘‘Commission’’), Reduction Act of 1995, effective October
necessary in order to receive the
pursuant to Section 19(b)(1) of the 1, 1995. This notice includes revisions
guarantee. Orders submitted by Floor
Securities Exchange Act of 1934 of OMB-approved information
Brokers for execution must execute at a
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a collections.
price equal to or better than the NBBO
proposed rule change to amend the SSA is soliciting comments on the
and (1) may not trade through any equal
minimum eligible order size from 500 accuracy of the agency’s burden
or better priced Public Customer bids or
contracts to 50 contracts to qualify for estimate; the need for the information;
the Floor Broker guarantee described in 4 For a more detailed description of the proposed its practical utility; ways to enhance its
BOX Rule 7600(f). The proposed rule rule change, see Notice, supra note 3. quality, utility, and clarity; and ways to
change was published for comment in 5 See BOX Rule 7600(f).
minimize burden on respondents,
the Federal Register on November 24, 6 See BOX Rule 7600(f)(2). Pursuant to BOX Rule
including the use of automated
sradovich on DSK3GMQ082PROD with NOTICES
2017.3 The Commission received no 7600(f)(2), the Exchange is required to communicate
comments on the proposed rule change. any changes to the eligible order size to Participants
10 See BOX Rule 100(a)(10) (defining BOX Book).
via circular.
7 See proposed BOX Rule 7600(f)(2). 11 See BOX Rule 7600(c).
25 17 CFR 200.30–3(a)(12). 8 In approving this proposed rule change, the 12 See Cboe Options Rule 6.74(d) and NYSE Arca
1 15 U.S.C. 78s(b)(1). Commission notes that it has considered the Inc. Rule 6.47–O(b)(1).
2 17 CFR 240.19b–4. 13 15 U.S.C. 78f(b)(5).
proposed rule’s impact on efficiency, competition,
3 See Securities Exchange Act Release No. 82112 and capital formation. See 15 U.S.C. 78c(f). 14 15 U.S.C. 78s(b)(2).
(November 17, 2017), 82 FR 55895 (‘‘Notice’’). 9 15 U.S.C. 78f(b)(5). 15 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 17:47 Jan 11, 2018 Jkt 244001 PO 00000 Frm 00047 Fmt 4703 Sfmt 4703 E:\FR\FM\12JAN1.SGM 12JAN1](https://thefederalregister.org/doc/83_FR_1660/page/1.svg)
Document Created: 2018-10-26 09:51:44
Document Modified: 2018-10-26 09:51:44
| 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 | 83 FR 1651 |
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