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, Issue 103 (May 29, 2018)
| Page Range | 24533-24534 | |
| FR Document | 2018-11499 |
[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] ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A)(ii). \11\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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 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-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. --------------------------------------------------------------------------- \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
![Federal Register / Vol. 83, No. 103 / Tuesday, May 29, 2018 / Notices 24533
For the Commission, by the Division of concerning the purpose of and basis for have similar fee caps.9 Lastly, the
Trading and Markets, pursuant to delegated the proposed rule change and discussed Exchange believes that the proposed
authority.99 any comments it received on the change is equitable and not unfairly
Eduardo A. Aleman, proposed rule change. The text of these discriminatory because the fee cap will
Assistant Secretary. statements may be examined at the apply to all BOX Participants, regardless
[FR Doc. 2018–11395 Filed 5–25–18; 8:45 am] places specified in Item IV below. The of account type.
BILLING CODE 8011–01–P Exchange has prepared summaries, set
forth in Sections A, B, and C below, of B. Self-Regulatory Organization’s
the most significant aspects of such Statement on Burden on Competition
SECURITIES AND EXCHANGE statements. The Exchange does not believe that
COMMISSION the proposed rule change will impose
A. Self-Regulatory Organization’s
[Release No. 34–83309; File No. SR–BOX– any burden on competition not
Statement of the Purpose of, and
2018–19] necessary or appropriate in furtherance
Statutory Basis for, the Proposed Rule
of the purposes of the Act. Instead the
Change
Self-Regulatory Organizations; BOX proposed change will allow the
Options Exchange LLC; Notice of 1. Purpose Exchange to not impose significant costs
Filing and Immediate Effectiveness of The Exchange proposes to amend for Participants with legacy drop copy
a Proposed Rule Change To Amend Section VI.B.3 (Drop Copy) of the BOX connections. Further, the Exchange does
the Fee Schedule on the BOX Market Fee Schedule. Specifically, the not believe that capping the Drop Copy
LLC (‘‘BOX’’) Options Facility To Exchange proposes to add language that Port Fees will impose an undue burden
Amend Drop Copy Port Fees states that drop copy fees will be capped on intra-market competition because all
at $2,000 per month. The Exchange Participants are eligible for the fee cap.
May 23, 2018.
Pursuant to Section 19(b)(1) of the notes that BOX will continue to assess C. Self-Regulatory Organization’s
Securities Exchange Act of 1934 (the Drop Copy Port Fees of $500 per port Statement on Comments on the
‘‘Act’’),1 and Rule 19b–4 thereunder,2 per month for each month a Participant Proposed Rule Change Received From
notice is hereby given that on May 16, is credentialed to use a Drop Copy Port, Members, Participants, or Others
2018, BOX Options Exchange LLC (the subject to the $2,000 cap.5
No written comments were either
‘‘Exchange’’) filed with the Securities 2. Statutory Basis solicited or received.
and Exchange Commission
The Exchange believes that the III. Date of Effectiveness of the
(‘‘Commission’’) the proposed rule
proposal is consistent with the Proposed Rule Change and Timing for
change as described in Items I, II, and
requirements of Section 6(b) of the Act, Commission Action
III below, which Items have been
in general, and Section 6(b)(4) and
prepared by the Exchange. The The foregoing rule change has become
6(b)(5)of the Act,6 in particular, in that
Exchange filed the proposed rule change effective pursuant to Section
it provides for the equitable allocation
pursuant to Section 19(b)(3)(A)(ii) of the 19(b)(3)(A)(ii) of the Exchange Act 10
of reasonable dues, fees, and other
Act,3 and Rule 19b–4(f)(2) thereunder,4 and Rule 19b–4(f)(2) thereunder,11
charges among BOX Participants and
which renders the proposal effective because it establishes or changes a due,
other persons using its facilities and
upon filing with the Commission. The or fee.
does not unfairly discriminate between
Commission is publishing this notice to At any time within 60 days of the
customers, issuers, brokers or dealers.
solicit comments on the proposed rule The Exchange believes that the filing of the proposed rule change, the
change from interested persons. proposed drop copy fee cap is Commission summarily may
I. Self-Regulatory Organization’s reasonable, equitable and not unfairly temporarily suspend the rule change if
Statement of the Terms of the Substance discriminatory. The Exchange recently it appears to the Commission that the
of the Proposed Rule Change established Port Fees for Participants.7 action is necessary or appropriate in the
BOX Participants are currently charged public interest, for the protection of
The Exchange is filing with the
$500 per port per month for each month investors, or would otherwise further
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change a Participant is credentialed to use a the purposes of the Act. If the
to amend the Fee Schedule t [sic] on the Drop Copy Port. After further review, Commission takes such action, the
BOX Market LLC (‘‘BOX’’) options the Exchange now proposes to cap Drop Commission shall institute proceedings
facility. The text of the proposed rule Copy Port Fees at $2,000 per month. to determine whether the proposed rule
change is available from the principal The purpose of this change is due to the should be approved or disapproved.
office of the Exchange, at the different technology architecture used
IV. Solicitation of Comments
Commission’s Public Reference Room by various BOX Participants.8 Further,
BOX believes that the proposed change Interested persons are invited to
and also on the Exchange’s internet
is reasonable as other options exchanges submit written data, views, and
website at http://boxexchange.com.
arguments concerning the foregoing,
II. Self-Regulatory Organization’s 5 BOX Participants connected to a port as of the including whether the proposed rule
Statement of the Purpose of, and last trading day of each calendar month will be change is consistent with the Act.
Statutory Basis for, the Proposed Rule charged the applicable port fee for that month.
6 15 U.S.C. 78f(b)(4) and (5).
Comments may be submitted by any of
Change 7 See Securities Exchange Act Release No. 83197
the following methods:
daltland on DSKBBV9HB2PROD with NOTICES
In its filing with the Commission, the (May 9, 2018), 83 FR 22567 (May 15, 2018)(SR–
9 See Nasdaq BX, Inc. (‘‘BX’’) Fee Schedule. BX
Exchange included statements BOX–2018–15).
8 The Exchange notes that some Participants are charges $500 per port, per month for their FIX Drop
impacted differently by the current Drop Copy Port Port, but caps their monthly fees in the aggregate
99 17 CFR 200.30–3(a)(12).
Fee because of the number of legacy connections to for their Ports (including FIX Port, CTI Port, FIX
1 15 U.S.C. 78s(b)(1). the Drop Copy Port. As such, the Exchange is DROP Port, BX Depth Port and BX TOP Port) at
2 17 CFR 240.19b–4.
proposing the fee cap in order to avoid significant $7,500 per month.
3 15 U.S.C. 78s(b)(3)(A)(ii). 10 15 U.S.C. 78s(b)(3)(A)(ii).
fees for certain Participants due to these
4 17 CFR 240.19b–4(f)(2). connections. 11 17 CFR 240.19b–4(f)(2).
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![24534 Federal Register / Vol. 83, No. 103 / Tuesday, May 29, 2018 / Notices
Electronic Comments SECURITIES AND EXCHANGE request a hearing by writing to the
COMMISSION Commission’s Secretary and serving
• Use the Commission’s internet applicants with a copy of the request,
comment form (http://www.sec.gov/ [Investment Company Act Release No.
33103; 812–14885]
personally or by mail. Hearing requests
rules/sro.shtml); or should be received by the Commission
• Send an email to rule-comments@ DMS ETF Trust I, et al. by 5:30 p.m. on June 18, 2018, and
sec.gov. Please include File Number SR– should be accompanied by proof of
BOX–2018–19 on the subject line. May 22, 2018. service on applicants, in the form of an
AGENCY: Securities and Exchange affidavit, or for lawyers, a certificate of
Paper Comments Commission (‘‘Commission’’). service. Pursuant to rule 0–5 under the
ACTION: Notice. Act, hearing requests should state the
• Send paper comments in triplicate
nature of the writer’s interest, any facts
to Secretary, Securities and Exchange Notice of an application for an order bearing upon the desirability of a
Commission, 100 F Street NE, under section 6(c) of the Investment hearing on the matter, the reason for the
Washington, DC 20549–1090. Company Act of 1940 (the ‘‘Act’’) for an request, and the issues contested.
All submissions should refer to File exemption from sections 2(a)(32), Persons who wish to be notified of a
5(a)(1), 22(d), and 22(e) of the Act and hearing may request notification by
Number SR–BOX–2018–19. This file
rule 22c–1 under the Act, under writing to the Commission’s Secretary.
number should be included on the
sections 6(c) and 17(b) of the Act for an ADDRESSES: Secretary, Securities and
subject line if email is used. To help the
exemption from sections 17(a)(1) and Exchange Commission, 100 F Street NE,
Commission process and review your 17(a)(2) of the Act, and under section
comments more efficiently, please use Washington, DC 20549–1090;
12(d)(1)(J) for an exemption from Applicants: Michael W. Mundt, Esq.
only one method. The Commission will sections 12(d)(1)(A) and 12(d)(1)(B) of
post all comments on the Commission’s and Matthew R. DiClemente, Esq.,
the Act. The requested order would Stradley Ronon Stevens & Young, LLP,
internet website (http://www.sec.gov/ permit (a) actively-managed series of
rules/sro.shtml). Copies of the 1250 Connecticut Avenue NW, Ste. 500,
certain open-end management Washington, DC 20036; William H.
submission, all subsequent investment companies (‘‘Funds’’) to Woolverton, DMS ETF Solutions, LLC,
amendments, all written statements issue shares redeemable in large 130 West 42nd Street, Ste. 1050, New
with respect to the proposed rule aggregations only (‘‘Creation Units’’); (b) York, NY 10036.
change that are filed with the secondary market transactions in Fund
FOR FURTHER INFORMATION CONTACT:
Commission, and all written shares to occur at negotiated market
prices rather than at net asset value Matthew B. Archer-Beck, Senior
communications relating to the
(‘‘NAV’’); (c) certain Funds to pay Counsel, at (202) 551–5044, or Kaitlin C.
proposed rule change between the
redemption proceeds, under certain Bottock, Branch Chief, at (202) 551–
Commission and any person, other than 6825 (Division of Investment
those that may be withheld from the circumstances, more than seven days
after the tender of shares for Management, Chief Counsel’s Office).
public in accordance with the
redemption; (d) certain affiliated SUPPLEMENTARY INFORMATION: The
provisions of 5 U.S.C. 552, will be
persons of a Fund to deposit securities following is a summary of the
available for website viewing and application. The complete application
printing in the Commission’s Public into, and receive securities from, the
Fund in connection with the purchase may be obtained via the Commission’s
Reference Room, 100 F Street NE, website by searching for the file
Washington, DC 20549 on official and redemption of Creation Units; (e)
certain registered management number, or for an applicant using the
business days between the hours of Company name box, at http://
investment companies and unit
10:00 a.m. and 3:00 p.m. Copies of such www.sec.gov/search/search.htm or by
investment trusts outside of the same
filing also will be available for calling (202) 551–8090.
group of investment companies as the
inspection and copying at the principal Funds (‘‘Funds of Funds’’) to acquire
office of the Exchange. All comments Summary of the Application
shares of the Funds; and (f) certain
received will be posted without change. 1. Applicants request an order that
Funds (‘‘Feeder Funds’’) to create and
Persons submitting comments are would allow Funds to operate as
redeem Creation Units in-kind in a
cautioned that we do not redact or edit actively-managed exchange traded
master-feeder structure.
personal identifying information from funds (‘‘ETFs’’).1 Fund shares will be
APPLICANTS: DMS ETF Trust I and DMS purchased and redeemed at their NAV
comment submissions. You should ETF Trust II (each a ‘‘Trust’’ and
submit only information that you wish in Creation Units only. All orders to
together, the ‘‘Trusts’’), each a Delaware purchase Creation Units and all
to make available publicly. All statutory trust that will be registered
submissions should refer to File redemption requests will be placed by
under the Act as an open-end or through an ‘‘Authorized Participant,’’
Number SR–BOX–2018–19, and should management investment company with which will have signed a participant
be submitted on or before June 19, 2018. multiple series, and DMS ETF agreement with a broker-dealer
For the Commission, by the Division of Solutions, LLC (‘‘Initial Adviser’’), a registered under the Securities
Trading and Markets, pursuant to delegated Delaware limited liability company that
authority.12 will be registered as an investment 1 Applicants request that the order apply to the
Brent J. Fields, adviser under the Investment Advisers Initial Funds, as well as to future series of either
daltland on DSKBBV9HB2PROD with NOTICES
Act of 1940. Trust, and any other open-end management
Secretary. investment companies or series thereof (each,
FILING DATES: The application was filed included in the term ‘‘Fund’’), each of which will
[FR Doc. 2018–11499 Filed 5–25–18; 8:45 am]
on March 12, 2018. operate as an actively-managed ETF. Any Fund will
BILLING CODE 8011–01–P
HEARING OR NOTIFICATION OF HEARING: (a) be advised by the Initial Adviser or an entity
controlling, controlled by, or under common
An order granting the requested relief control with the Initial Adviser (each, an
will be issued unless the Commission ‘‘Adviser’’) and (b) comply with the terms and
12 17 CFR 200.30–3(a)(12). orders a hearing. Interested persons may conditions of the application.
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Document Created: 2018-05-26 00:48:09
Document Modified: 2018-05-26 00:48:09
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 24533 |
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