83 FR 31006 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing of Proposed Rule Change To Amend BOX Rule 7300 (Preferenced Orders) To Provide an Additional Allocation Preference to Preferred Market Makers
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 127 (July 2, 2018)
Federal Register Volume 83, Issue 127 (July 2, 2018)
| Page Range | 31006-31009 | |
| FR Document | 2018-14112 |
[Federal Register Volume 83, Number 127 (Monday, July 2, 2018)] [Notices] [Pages 31006-31009] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-14112] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83525; File No. SR-BOX-2018-20] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing of Proposed Rule Change To Amend BOX Rule 7300 (Preferenced Orders) To Provide an Additional Allocation Preference to Preferred Market Makers June 26, 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 June 13, 2018, 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 change 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 the Substance of the Proposed Rule Change The Exchange proposes to amend BOX Rule 7300 (Preferenced Orders) to provide an additional allocation preference to Preferred Market Makers. 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://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 The Exchange proposes to amend BOX Rule 7300 (Preferenced Orders) to provide an additional allocation preference to Preferred Market Makers. Specifically, the Exchange is proposing to provide Preferred Market Makers with a small size order allocation preference. Background The Exchange has rules to allow BOX Options Participants (``Participants'') to submit orders for which a Market Maker is designated to receive an allocation preference on the Exchange (``Preferenced Orders'').\3\ The rules provide for the enhanced allocation to the Preferred Market Maker \4\ only when the Preferred Market Maker is quoting at NBBO. --------------------------------------------------------------------------- \3\ See Rule 7300. \4\ The term ``Preferred Market Maker'' means a Market Maker designated as such by a Participant with respect to an order submitted by such Participant to BOX. See Rule 7300(a)(2). --------------------------------------------------------------------------- A Preferenced Order is any order submitted by a Participant to the Exchange for which a Preferred Market Maker is designated to receive execution priority, with respect to a portion of the Preferenced Order, upon meeting certain qualifications.\5\ Preferenced Orders are submitted by a Participant by designating an order as such and identifying a Preferred Market Maker when entering the order. --------------------------------------------------------------------------- \5\ See Rule 7300. --------------------------------------------------------------------------- In order for a Preferred Market Maker to be eligible to receive Preferenced Orders, they must maintain heightened quoting activity. Specifically, a Preferred Market Maker must maintain a continuous two- sided market, throughout the trading day, in 99% of the non-adjusted option series of each class for which it accepts Preferenced Orders, for 90% of the time the Exchange is open for trading in each such option class.\6\ A Preferred Market Maker is not required to quote in intra-day add-on series or series that have a time to expiration of nine months or more in the classes for which it receives Preferenced Orders. --------------------------------------------------------------------------- \6\ See Rule 7300(a)(2). --------------------------------------------------------------------------- Small Size Orders The Exchange is now proposing to amend Rule 7300 to provide an additional allocation preference to Preferred Market Makers. Specifically, the Exchange is proposing that small size Preferenced Orders will be allocated in full to the Preferred Market Maker, subject to certain conditions described below.\7\ Small size orders are defined as five (5) or fewer contracts. --------------------------------------------------------------------------- \7\ See proposed Rule 7300(e). --------------------------------------------------------------------------- In order for the Preferred Market Makers to be allocated the small size order, they must be quoting at the NBBO when they receive the Preferenced Order. As is the case with the current allocation of Preferenced Orders, all orders from the account of Public Customers, if any, will continue to be allocated for execution against the Preferenced Order first. The Preferred Market Maker will only receive the small size order allocation if there are contracts remaining after any Public Customer orders receive an allocation against the Preferenced Order. A Preferred Market Maker may only be allocated up to the size of their quote. The Exchange will monitor the frequency in which Preferred Market Makers receive the small size order allocation. Specifically, the Exchange will review the proposed provision quarterly and will maintain the small order size at a level that will not allow small size orders executed by Preferred Market Makers to account for more than 40% of the volume executed on the Exchange. The Exchange does not believe the proposal raises any new or novel issues. Currently, the vast majority of options exchanges provide a small lot allocation preference to specialists,\8\ with the [[Page 31007]] majority of those exchanges restricting the number of specialists to one per class. The Exchange's proposal differs in that the Exchange is expanding the availability of the small lot allocation preference to all eligible Preferred Market Makers. The Exchange believes that providing this benefit to multiple Preferred Market Makers will be beneficial to the Exchange and the market by providing an incentive for vigorous quoting by multiple market makers per class since a Preferred Market Maker must be quoting at NBBO in order to receive the small lot allocation preference. Additionally, as explained above, Preferred Market Makers are responsible for heightened quoting obligations that must be met in order for them to receive Preferenced Orders. --------------------------------------------------------------------------- \8\ Cboe EDGX Rule 21.8(g)(2) provides a small lot allocation preference to Primary Market Makers, Nasdaq ISE Rule 713.01(c) provides a small lot allocation preference for Primary Market Makers, NYSE American Rule 964.2NY provides a small lot allocation preference to the Primary Specialist, Nasdaq BX Chap. VI, Section 10(c)(2) provides a small lot allocation preference for the Lead Market Maker, Nasdaq GEM [sic] Rule 713.01(c) provides a small lot allocation preference for Primary Market Makers, Nasdaq MRX provides a small lot allocation preference for Primary Market Makers, Nasdaq PHLX Rule 1014(g)(vii)(B)(1)(a) provides a small lot allocation preference to specialist, MIAX Rule 514(g)(2) provides a small lot allocation preference for the Primary Lead Market Maker, NYSE Arca Rule 6.76A-O(a)(1)(B) provides a small lot allocation preference for the Lead Market Maker, and Cboe Rule 6.45(c) provides a small lot allocation preference for the Designated Primary Market Makers or the Lead Market Maker. --------------------------------------------------------------------------- Further, the numerous options exchanges that provide exclusive specialist assignments afford the opportunity for a market maker to be the sole specialist in different classes on multiple exchanges. This can, and most likely does, result in a market maker having an exclusive specialist assignment in nearly every option class spread across multiple exchanges. Therefore, they are entitled to a small lot allocation preference in every option class. As a result of this, an order flow provider can direct small lot orders to a specific specialist by submitting the order to the exchange where the specialist is exclusive for that specific class and the specialist would have priority over all orders and quotes except those of Public Customers to trade against the small lot. The Exchange does not believe that providing the small lot allocation preference to all qualified Preferred Market Makers will alter this current behavior because, under the proposal, an order flow provider can achieve the same result by preferencing the order on BOX to a specific Preferred Market Maker. In addition, the Exchange notes that it has increased quoting requirements for market makers to be eligible to receive the small lot allocation preference. Specifically, a Preferred Market Maker must maintain a continuous two-sided market, pursuant to Rule 8050(c)(1), throughout the trading day, in 99% of the non-adjusted option series of each class for which it accepts Preferenced Orders, for 90% of the time the Exchange is open for trading in each such option class.\9\ The Exchange notes that these quoting requirements are higher than another exchange that currently provides a small-lot allocation preference.\10\ --------------------------------------------------------------------------- \9\ For purposes of this requirement, a Preferred Market Maker is not required to quote in intra-day add-on series or series that have a time to expiration of nine months or more in the classes for which it receives Preferenced Orders and a Market Maker may still be a Preferred Market Maker in any such series if the Market Maker otherwise complies with Rule 7300(a)(2). \10\ See Cboe EDGX Rule 22.6(d). --------------------------------------------------------------------------- Allocation Currently, the Exchange's Rules provide that at the final price level, where the remaining quantity of the Preferenced Order is less than the total quantity of orders on the Exchange available for execution, after all orders for the account of Public Customers, if any, are allocated against the Preferenced Order, then the Preferred Market Maker receives its allocation.\11\ Specifically, a Preferred Market Maker shall receive an allocation equal to forty percent (40%) of the remaining quantity of the Preferenced Order. However, if only one other executable, non-public Customer order (in addition to the quote of the Preferred Market Maker) matches the Preferenced Order at the final price level, then the allocation to the Preferred Market Maker shall be equal to fifty percent (50%) of the remaining quantity of the Preferenced Order. --------------------------------------------------------------------------- \11\ See Rule 7300(c)(2). --------------------------------------------------------------------------- The Exchange is now proposing to amend the Preferred Market Maker allocation when there is only one other non-Public Customer that matches the Preferenced Order at the final price level. Specifically, the Exchange is proposing to increase the Preferred Market Maker's allocation to 60% when there is only one other non-Public Customer that matches the Preferenced Order at the final price level. The Exchange notes that other exchanges currently provide a 60% allocation when there is only one other Participant that matches the Preferenced Order at the final price level.\12\ --------------------------------------------------------------------------- \12\ See MIAX Rule 514(g); see also ISE Supplementary Material .03 to Rule 713. --------------------------------------------------------------------------- The quantity of the allocation to the Preferred Market Maker will continue to be limited by the total quantity of the Preferred Market Maker quote. Executions are allocated in numbers of whole contracts and, to ensure the allocation priority afforded to Preferred Market Makers does not exceed the applicable 40% or proposed 60%, allocations of fractional contracts to Preferred Market Makers in the Preferred allocation step are rounded down to the nearest whole number, which is not less than one (1) contract. Legging Orders will not be considered when determining whether the Preferred Market Maker is allocated 40% or the proposed 60% in this step. As a result, in no case will a Preferred Market Maker receive an allocation preference (above what it would otherwise receive if executed in normal price-time priority) in excess of 40% of the remaining quantity of the Preferenced Order after Public Customer orders are filled (or the proposed 60% if only one other non- Public Customer matches) at the final price level. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Securities Exchange Act of 1934 (the ``Act''),\13\ in general, and Section 6(b)(5) of the Act,\14\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the Exchange believes this proposed rule change is a reasonable modification designed to provide incentives and enhanced allocation to Preferred Market Makers when it is quoting at NBBO. The Exchange also believes that the proposed rule change will increase the number of transactions on the Exchange by attracting additional order flow to the Exchange, which will ultimately enhance competition and provide customers with additional opportunities for execution. The Exchange believes these changes are consistent with the goals to remove impediments to and to perfect the mechanism for a free and open market and a national market system. Specifically, the Exchange believes that the proposal will result in increased liquidity available at improved prices, with more competitive pricing outside the control of any single Participant. The proposed rule change should promote and foster competition. The Exchange believes the proposed changes to the Preferenced Order allocation to provide a small lot [[Page 31008]] allocation preference is an improvement over the current allocation algorithm, and will benefit all market participants submitting Preferenced Orders on the Exchange. As a result of the proposed changes, the Exchange believes that existing and additional Participants will use Preferenced Orders to increase the number of orders that are submitted to the Exchange. Additionally, the Exchange believes that the proposed change to the Preferenced Order allocation algorithm will encourage greater participation by Market Makers to provide quotes on the Exchange as Preferred Market Makers. These additional responses should encourage greater competition on the Exchange, which should, in turn, benefit and protect investors and the public interest through the potential for greater volume of orders and executions. The proposed rule change continues to provide priority of Public Customer orders over Preferred Market Makers at the same price. The Exchange believes this priority is consistent with the purposes of the Act. The Exchange believes the Preferenced Order allocation proposal is designed to promote just and equitable principles of trade and to protect investors and the public interest, because it recognizes the unique status of Pubic Customers in the marketplace by ensuring Public Customers maintain priority before any allocations afforded to Preferred Market Makers. The Exchange believes that the proposed Preferenced Order allocation changes are reasonable, equitable and not unfairly discriminatory. Giving Preferred Market Makers the small lot allocation preference and allocation priority of 60% of the remaining quantity of the Preferenced Order in certain circumstances will provide important incentives for Preferred Market Makers to provide liquidity on BOX, which provides greater opportunity for executions, tighter spreads, and better pricing for all Participants. While the Commission has, in the past, been concerned about locking up larger portions of order flow from intra-market price competition, the Exchange believes that the proposed preferred allocation methods adequately balance the aim of rewarding Preferred Market Makers by limiting the volume of small size orders executed by Preferred Market Makers to account for no more than 40% of the volume executed on the Exchange. The Exchange believes that the Preferred Market Maker allocation is designed to promote just and equitable principles of trade and to protect investors and the public interest, because it strikes a reasonable balance between encouraging vigorous price competition and rewarding Market Makers for their unique duties. In order to receive an allocation preference, Preferred Market Makers must meet heightened quoting requirements as Market Makers, and also be quoting at the NBBO at the time the Preferenced Order is received. Heightened quoting requirements mean that Preferred Market Makers must maintain a continuous two-sided market throughout the trading day, in 99% of the non-adjusted option series of each class for which it accepts Preferenced Orders, for 90% of the time the Exchange is open for trading in each such option class.\15\ Overall, the proposed changes to the Preferred Market Maker allocations represent a careful balancing by the Exchange with regard to the rewards and obligations of various types of market participants. The Exchange believes these requirements of Preferred Market Makers will provide an incentive for Market Makers to assume these additional responsibilities beyond those already required for Market Makers, which will facilitate improved trading opportunities on BOX for all Participants. --------------------------------------------------------------------------- \15\ For purposes of this requirement, a Preferred Market Maker is not required to quote in intra-day add-on series or series that have a time to expiration of nine months or more in the classes for which it receives Preferenced Orders and a Market Maker may still be a Preferred Market Maker in any such series if the Market Maker otherwise complies with Rule 7300(a)(2). --------------------------------------------------------------------------- The Exchange believes this proposed rule change is a reasonable modification designed to provide further incentives and enhanced allocation to a Preferred Market Maker when it is quoting at NBBO. The Exchange also believes that the proposed rule change will increase the number of transactions on the Exchange by attracting additional activity to the Exchange, which will ultimately enhance competition and provide customers with additional opportunities for execution. The Exchange believes the proposed changes to the Preferenced Order allocations are an improvement over the current allocation algorithm, and will benefit all market participants submitting Preferenced Orders on the Exchange. Additionally, the Exchange believes that the proposed Preferenced Order allocation algorithm will encourage greater participation by Market Makers to provide quotes on the Exchange as Preferred Market Makers. These additional responses should encourage greater competition on the Exchange, which should, in turn, benefit and protect investors and the public interest through the potential for greater volume of orders and executions. For the foregoing reasons, the Exchange believes this proposal is a reasonable modification to its rules, designed to facilitate increased interaction of orders on the Exchange, and to do so in a manner that ensures a dynamic, real-time trading mechanism that maximizes opportunities for trading executions of orders. The Exchange believes it is appropriate and consistent with the Act to adopt the proposed changes. 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. In this regard, the Exchange notes that the rule change is being proposed as a competitive response to the options exchanges with specialists. The Exchange believes that the proposed change will allow the Exchange to further compete with competitors that provide specialist assignments. With respect to intra- market competition, the Exchange believes that the proposed change will promote competition by allowing multiple competing Preferred Market Makers per class. 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. [[Page 31009]] 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-2018-20 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-BOX-2018-20. 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-2018-20, and should be submitted on or before July 23, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-14112 Filed 6-29-18; 8:45 am] BILLING CODE 8011-01-P
![31006 Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Notices
Reference Room, 100 F Street NE, Exchange, at the Commission’s Public Preferred Market Maker must maintain
Washington, DC 20549, on official Reference Room and also on the a continuous two-sided market,
business days between the hours of Exchange’s internet website at http:// throughout the trading day, in 99% of
10:00 a.m. and 3:00 p.m. Copies of the boxoptions.com. the non-adjusted option series of each
filing also will be available for class for which it accepts Preferenced
II. Self-Regulatory Organization’s
inspection and copying at the principal Orders, for 90% of the time the
office of the Exchange. All comments Statement of the Purpose of, and Exchange is open for trading in each
received will be posted without change. Statutory Basis for, the Proposed Rule such option class.6 A Preferred Market
Persons submitting comments are Change Maker is not required to quote in intra-
cautioned that we do not redact or edit In its filing with the Commission, the day add-on series or series that have a
personal identifying information from self-regulatory organization included time to expiration of nine months or
comment submissions. You should statements concerning the purpose of, more in the classes for which it receives
submit only information that you wish and basis for, the proposed rule change Preferenced Orders.
to make available publicly. All and discussed any comments it received
Small Size Orders
submissions should refer to File on the proposed rule change. The text
Number SR–NASDAQ–2018–048 and of these statements may be examined at The Exchange is now proposing to
should be submitted on or before July the places specified in Item IV below. amend Rule 7300 to provide an
23, 2018. The self-regulatory organization has additional allocation preference to
prepared summaries, set forth in Preferred Market Makers. Specifically,
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Sections A, B, and C below, of the most the Exchange is proposing that small
authority.17 significant aspects of such statements. size Preferenced Orders will be
Eduardo A. Aleman, allocated in full to the Preferred Market
A. Self-Regulatory Organization’s Maker, subject to certain conditions
Assistant Secretary. Statement of the Purpose of, and described below.7 Small size orders are
[FR Doc. 2018–14118 Filed 6–29–18; 8:45 am] Statutory Basis for, the Proposed Rule defined as five (5) or fewer contracts.
BILLING CODE 8011–01–P Change In order for the Preferred Market
1. Purpose Makers to be allocated the small size
order, they must be quoting at the NBBO
SECURITIES AND EXCHANGE The Exchange proposes to amend when they receive the Preferenced
COMMISSION BOX Rule 7300 (Preferenced Orders) to Order. As is the case with the current
[Release No. 34–83525; File No. SR–BOX– provide an additional allocation allocation of Preferenced Orders, all
2018–20] preference to Preferred Market Makers. orders from the account of Public
Specifically, the Exchange is proposing Customers, if any, will continue to be
Self-Regulatory Organizations; BOX to provide Preferred Market Makers allocated for execution against the
Options Exchange LLC; Notice of with a small size order allocation Preferenced Order first. The Preferred
Filing of Proposed Rule Change To preference. Market Maker will only receive the
Amend BOX Rule 7300 (Preferenced small size order allocation if there are
Orders) To Provide an Additional Background
contracts remaining after any Public
Allocation Preference to Preferred The Exchange has rules to allow BOX Customer orders receive an allocation
Market Makers Options Participants (‘‘Participants’’) to against the Preferenced Order. A
submit orders for which a Market Maker Preferred Market Maker may only be
June 26, 2018.
is designated to receive an allocation allocated up to the size of their quote.
Pursuant to Section 19(b)(1) of the
preference on the Exchange The Exchange will monitor the
Securities Exchange Act of 1934 (the
(‘‘Preferenced Orders’’).3 The rules frequency in which Preferred Market
‘‘Act’’),1 and Rule 19b–4 thereunder,2
provide for the enhanced allocation to Makers receive the small size order
notice is hereby given that on June 13,
the Preferred Market Maker 4 only when allocation. Specifically, the Exchange
2018, BOX Options Exchange LLC (the
the Preferred Market Maker is quoting at will review the proposed provision
‘‘Exchange’’) filed with the Securities
NBBO. quarterly and will maintain the small
and Exchange Commission A Preferenced Order is any order
(‘‘Commission’’) the proposed rule order size at a level that will not allow
submitted by a Participant to the small size orders executed by Preferred
change as described in Items I and II Exchange for which a Preferred Market
below, which Items have been prepared Market Makers to account for more than
Maker is designated to receive execution 40% of the volume executed on the
by the self-regulatory organization. The priority, with respect to a portion of the
Commission is publishing this notice to Exchange.
Preferenced Order, upon meeting The Exchange does not believe the
solicit comments on the proposed rule certain qualifications.5 Preferenced
change from interested persons. proposal raises any new or novel issues.
Orders are submitted by a Participant by Currently, the vast majority of options
I. Self-Regulatory Organization’s designating an order as such and exchanges provide a small lot allocation
Statement of the Terms of the Substance identifying a Preferred Market Maker preference to specialists,8 with the
of the Proposed Rule Change when entering the order.
The Exchange proposes to amend In order for a Preferred Market Maker 6 See Rule 7300(a)(2).
BOX Rule 7300 (Preferenced Orders) to to be eligible to receive Preferenced 7 See proposed Rule 7300(e).
provide an additional allocation Orders, they must maintain heightened 8 Cboe EDGX Rule 21.8(g)(2) provides a small lot
daltland on DSKBBV9HB2PROD with NOTICES
quoting activity. Specifically, a allocation preference to Primary Market Makers,
preference to Preferred Market Makers. Nasdaq ISE Rule 713.01(c) provides a small lot
The text of the proposed rule change is 3 See
allocation preference for Primary Market Makers,
Rule 7300. NYSE American Rule 964.2NY provides a small lot
available from the principal office of the 4 The term ‘‘Preferred Market Maker’’ means a allocation preference to the Primary Specialist,
Market Maker designated as such by a Participant Nasdaq BX Chap. VI, Section 10(c)(2) provides a
17 17 CFR 200.30–3(a)(12). with respect to an order submitted by such small lot allocation preference for the Lead Market
1 15 U.S.C. 78s(b)(1). Participant to BOX. See Rule 7300(a)(2). Maker, Nasdaq GEM [sic] Rule 713.01(c) provides
2 17 CFR 240.19b–4. 5 See Rule 7300. a small lot allocation preference for Primary Market
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![Federal Register / Vol. 83, No. 127 / Monday, July 2, 2018 / Notices 31009
Comments may be submitted by any of SECURITIES AND EXCHANGE I. Self-Regulatory Organization’s
the following methods: COMMISSION Statement of the Terms of Substance of
the Proposed Rule Change
Electronic Comments Sunshine Act Meetings The Exchange proposes to modify the
• Use the Commission’s internet FEDERAL REGISTER CITATION OF PREVIOUS
NYSE American Options Fee Schedule
comment form (http://www.sec.gov/ ANNOUNCEMENT: 83 FR 29582, 25 Jun
(‘‘Fee Schedule’’). The Exchange
rules/sro.shtml); or 2018. proposes to implement the fee change
• Send an email to rule-comments@ effective June 11, 2018.4 The proposed
PREVIOUSLY ANNOUNCED TIME AND DATE OF
sec.gov. Please include File Number SR– change is available on the Exchange’s
THE MEETING: Thursday, June 28, 2018 at
BOX–2018–20 on the subject line. website at www.nyse.com, at the
10:00 a.m. principal office of the Exchange, and at
Paper Comments CHANGES IN THE MEETING: The following the Commission’s Public Reference
item will not be considered during the Room.
• Send paper comments in triplicate Open Meeting on Thursday, June 28,
to Brent J. Fields, Secretary, Securities 2018: II. Self-Regulatory Organization’s
and Exchange Commission, 100 F Street • Whether the Commission should Statement of the Purpose of, and
NE, Washington, DC 20549–1090. enter into a revised memorandum of Statutory Basis for, the Proposed Rule
understanding with the Commodity Change
All submissions should refer to File
Futures Trading Commission that would In its filing with the Commission, the
Number SR–BOX–2018–20. This file
update and supersede the existing self-regulatory organization included
number should be included on the
regulatory coordination memorandum statements concerning the purpose of,
subject line if email is used. To help the of understanding between the two and basis for, the proposed rule change
Commission process and review your agencies. and discussed any comments it received
comments more efficiently, please use on the proposed rule change. The text
CONTACT PERSON FOR MORE INFORMATION:
only one method. The Commission will of those statements may be examined at
post all comments on the Commission’s For further information and to ascertain
what, if any, matters have been added, the places specified in Item IV below.
internet website (http://www.sec.gov/ The Exchange has prepared summaries,
deleted or postponed, please contact the
rules/sro.shtml). Copies of the set forth in sections A, B, and C below,
Office of the Secretary at (202) 551–
submission, all subsequent of the most significant parts of such
5400.
amendments, all written statements statements.
with respect to the proposed rule Dated: June 28, 2018.
change that are filed with the Brent J. Fields, A. Self-Regulatory Organization’s
Commission, and all written Secretary. Statement of the Purpose of, and the
communications relating to the [FR Doc. 2018–14280 Filed 6–28–18; 4:15 pm] Statutory Basis for, the Proposed Rule
proposed rule change between the BILLING CODE 8011–01–P
Change
Commission and any person, other than 1. Purpose
those that may be withheld from the
SECURITIES AND EXCHANGE The purpose of this filing is to modify
public in accordance with the
COMMISSION the Fee Schedule, effective June 11,
provisions of 5 U.S.C. 552, will be
2018. Specifically, the Exchange
available for website viewing and
proposes to modify certain transaction
printing in the Commission’s Public [Release No. 34–83524; File No. SR–
NYSEAMER–2018–29]
fees.
Reference Room, 100 F Street NE,
Washington, DC 20549 on official Rates To Incentivize Non-Customer,
business days between the hours of Self-Regulatory Organizations; NYSE Non-Market Maker Volume
10:00 a.m. and 3:00 p.m. Copies of such American LLC; Notice of Filing and
Immediate Effectiveness of Proposed First, the Exchange proposes to
filing also will be available for eliminate the reduced rates available to
inspection and copying at the principal Change To Modify the NYSE American
Options Fee Schedule ATP Holders that transact a certain
office of the Exchange. All comments amount of Electronic volume as ‘‘Non-
received will be posted without change. June 26, 2018 Customer, Non-Market Maker’’ (i.e.,
Persons submitting comments are Pursuant to Section 19(b)(1) 1 of the Electronic volume as a Broker-Dealer,
cautioned that we do not redact or edit Securities Exchange Act of 1934 Firm, Non-NYSE American Market
personal identifying information from (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Maker, or Professional Customer).
comment submissions. You should notice is hereby given that, on June 11, Currently, an ATP Holder that transacts
submit only information that you wish 2018, NYSE American LLC (‘‘Exchange’’ Electronic volume as a Non-Customer,
to make available publicly. All or ‘‘NYSE American’’) filed with the Non-Market Maker at least 0.05% above
submissions should refer to File Securities and Exchange Commission that ATP Holder’s 2nd Quarter 2017
Number SR–BOX–2018–20, and should (‘‘Commission’’) the proposed rule Non-Customer, Non-Market Maker
be submitted on or before July 23, 2018. change as described in Items I, II, and Electronic volume is charged $0.36 per
For the Commission, by the Division of III below, which Items have been contract (as opposed to $0.50) for Penny
Trading and Markets, pursuant to delegated prepared by the self-regulatory Pilot Issues and $0.60 (as opposed to
authority.16 organization. The Commission is $0.75) per contract in Non-Penny Pilot
daltland on DSKBBV9HB2PROD with NOTICES
Eduardo A. Aleman, publishing this notice to solicit Issues.5 The Exchange proposes to
comments on the proposed rule change
Assistant Secretary. 4 The Exchange originally filed to amend the Fee
from interested persons.
[FR Doc. 2018–14112 Filed 6–29–18; 8:45 am] Schedule on June 1, 2018 (SR–NYSEAmer–2018–
25) and withdrew such filing on June 11, 2018.
BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). 5 Such calculations exclude volume in CUBE,
2 15 U.S.C. 78a. QCC, Strategy Executions, or volume attributable to
16 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. Continued
VerDate Sep<11>2014 17:40 Jun 29, 2018 Jkt 244001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\02JYN1.SGM 02JYN1](https://thefederalregister.org/doc/83_FR_31133/page/4.svg)
Document Created: 2018-06-30 00:18:06
Document Modified: 2018-06-30 00:18:06
| 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 31006 |
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