83 FR 24533 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (“BOX”) Options Facility To Amend Drop Copy Port Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 103 (May 29, 2018)

[Federal Register Volume 83, Number 103 (Tuesday, May 29, 2018)]
[Notices]
[Pages 24533-24534]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-11499]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83309; File No. SR-BOX-2018-19]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the Fee Schedule on the BOX Market LLC (``BOX'') Options Facility 
To Amend Drop Copy Port Fees

May 23, 2018.
    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 May 16, 2018, 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 t 
[sic] on the BOX Market LLC (``BOX'') options facility. 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 website 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 Section VI.B.3 (Drop Copy) of the 
BOX Fee Schedule. Specifically, the Exchange proposes to add language 
that states that drop copy fees will be capped at $2,000 per month. The 
Exchange notes that BOX will continue to assess Drop Copy Port Fees of 
$500 per port per month for each month a Participant is credentialed to 
use a Drop Copy Port, subject to the $2,000 cap.\5\
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    \5\ BOX Participants connected to a port as of the last trading 
day of each calendar month will be charged the applicable port fee 
for that month.
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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,\6\ 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.
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    \6\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed drop copy fee cap is 
reasonable, equitable and not unfairly discriminatory. The Exchange 
recently established Port Fees for Participants.\7\ BOX Participants 
are currently charged $500 per port per month for each month a 
Participant is credentialed to use a Drop Copy Port. After further 
review, the Exchange now proposes to cap Drop Copy Port Fees at $2,000 
per month. The purpose of this change is due to the different 
technology architecture used by various BOX Participants.\8\ Further, 
BOX believes that the proposed change is reasonable as other options 
exchanges have similar fee caps.\9\ Lastly, the Exchange believes that 
the proposed change is equitable and not unfairly discriminatory 
because the fee cap will apply to all BOX Participants, regardless of 
account type.
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    \7\ See Securities Exchange Act Release No. 83197 (May 9, 2018), 
83 FR 22567 (May 15, 2018)(SR-BOX-2018-15).
    \8\ The Exchange notes that some Participants are impacted 
differently by the current Drop Copy Port Fee because of the number 
of legacy connections to the Drop Copy Port. As such, the Exchange 
is proposing the fee cap in order to avoid significant fees for 
certain Participants due to these connections.
    \9\ See Nasdaq BX, Inc. (``BX'') Fee Schedule. BX charges $500 
per port, per month for their FIX Drop Port, but caps their monthly 
fees in the aggregate for their Ports (including FIX Port, CTI Port, 
FIX DROP Port, BX Depth Port and BX TOP Port) at $7,500 per month.
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 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. Instead the proposed change 
will allow the Exchange to not impose significant costs for 
Participants with legacy drop copy connections. Further, the Exchange 
does not believe that capping the Drop Copy Port Fees will impose an 
undue burden on intra-market competition because all Participants are 
eligible for the fee cap.

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 \10\ and Rule 19b-4(f)(2) 
thereunder,\11\ because it establishes or changes a due, or fee.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 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:

[[Page 24534]]

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-2018-19 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-2018-19. 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 website (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 website 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. 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-2018-19, and should be submitted on 
or before June 19, 2018.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Brent J. Fields,
Secretary.
[FR Doc. 2018-11499 Filed 5-25-18; 8:45 am]
 BILLING CODE 8011-01-P