83 FR 46003 - Self-Regulatory Organizations; BOX Options Exchange LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Adopt Rules Governing the Trading of Complex Qualified Contingent Cross Orders and Complex Customer Cross Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 176 (September 11, 2018)
Federal Register Volume 83, Issue 176 (September 11, 2018)
| Page Range | 46003-46005 | |
| FR Document | 2018-19639 |
[Federal Register Volume 83, Number 176 (Tuesday, September 11, 2018)] [Notices] [Pages 46003-46005] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-19639] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84031; File No. SR-BOX-2018-14] Self-Regulatory Organizations; BOX Options Exchange LLC; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Adopt Rules Governing the Trading of Complex Qualified Contingent Cross Orders and Complex Customer Cross Orders September 5, 2018. I. Introduction On May 22, 2018, BOX Options Exchange LLC (``BOX'' or the ``Exchange'') 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 adopt rules governing the trading of Complex Qualified Contingent Cross Orders (``QCC'') and Complex Customer Cross Orders. The proposed rule change was published for comment in the Federal Register on June 8, 2018.\3\ On July 16, 2018, pursuant to Section 19(b)(2) of the Act,\4\ the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to approve or disapprove the proposed rule change.\5\ The Commission has received no comment letters regarding the proposed rule change. This order institutes proceedings pursuant to Section 19(b)(2)(B) of the Act \6\ to determine whether to approve or disapprove 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. 83367 (June 4, 2018), 83 FR 26719 (``Notice''). \4\ 15 U.S.C. 78s(b)(2). \5\ See Securities Exchange Act Release No. 83647, 83 FR 34635 (July 20, 2018). The Commission designated September 6, 2018, as the date by which the Commission shall approve or disapprove, or institute proceedings to determine whether to approve or disapprove, the proposed rule change. \6\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- II. Description of the Proposal BOX has proposed to adopt rules governing the trading of Complex Customer Cross Orders \7\ and Complex QCC Orders.\8\ The proposal also applies two existing Complex Order price protections, the debit/credit check and the maximum price protection, to the proposed Complex Customer Cross and Complex QCC Orders.\9\ --------------------------------------------------------------------------- \7\ A Complex Customer Cross Order is comprised of one Public Customer Complex Order to buy and one Public Customer Complex Order to sell at the same price and for the same quantity. See proposed BOX Rule 7240(b)(4)(iii). \8\ A Complex QCC Order is comprised of an originating Complex Order to buy or sell where each component is at least 1,000 contracts that is identified as being part of a qualified contingent trade, as defined in IM-7110-2, coupled with a contra-side Complex Order or orders totaling an equal number of contracts. See proposed BOX Rule 7240(b)(4)(iv). A ``qualified contingent trade'' is a transaction consisting of two or more component orders, executed as agent or principal, where: (1) At least one component is an NMS Stock, as defined in Rule 600 of Regulation NMS under the Exchange Act; (2) all components are effected with a product or price contingency that either has been agreed to by all the respective counterparties or arranged for by a broker-dealer as principal or agent; (3) the execution of one component is contingent upon the execution of all other components at or near the same time; (4) the specific relationship between the component orders (e.g., the spread between the prices of the component orders) is determined by the time the contingent order is placed; (5) the component orders bear a derivative relationship to one another, represent different classes of shares of the same issuer, or involve the securities of participants in mergers or with intentions to merge that have been announced or cancelled; and (6) the transaction is fully hedged (without regard to any prior existing position) as a result of other components of the contingent trade. See BOX IM-7110-2. See Notice, supra note 3, for additional description of the proposed rule change, including examples demonstrating the operation of the proposed Complex Customer Cross and Complex QCC Orders. \9\ See proposed BOX IM-7240-1(a)(5) and (b)(5). --------------------------------------------------------------------------- Proposed BOX Rule 7110(c)(7) provides that a Complex Customer Cross order will be executed automatically upon entry provided that the execution (i) is at least $0.01 better than (inside) the cBBO \10\ and any Public Customer Complex Order on the Complex Order Book; (ii) is at or better than any non-Public Customer Complex Order on the Complex Order Book; and (iii) is at or between the cNBBO.\11\ The system will reject a Complex Customer Cross Order if, at the time of receipt of the Complex Customer Cross Order: (i) The strategy is subject to an ongoing auction (including the COPIP, Facilitation, and Solicitation auctions); or (ii) there is an exposed order on the strategy pursuant to BOX Rule 7240(b)(3)(B).\12\ Complex Customer Cross Orders will be cancelled automatically if they cannot be executed, and Complex Customer Cross Orders may only be entered in the minimum trading increments applicable to Complex Orders under BOX Rule 7240(b)(1).\13\ BOX proposes to apply BOX IM-7140-1 to the entry and execution of Complex Customer Cross Orders.\14\ --------------------------------------------------------------------------- \10\ The cBBO is the best net bid and offer price for a Complex Order Strategy based on the BBO on the BOX Book for the individual options components of the Strategy. See BOX Rule 7240(a)(1). The BOX Book is the electronic book of orders on each single option series maintained by the BOX Trading Host. See BOX Rule 100(a)(10). \11\ The cNBBO is the best net bid and offer price for a Complex Order Strategy based on the NBBO for the individual options components of the Strategy. See BOX Rule 7240(a)(3). \12\ See proposed BOX Rule 7110(c)(7). \13\ See proposed BOX Rule 7110(c)(7)(i) and (ii). \14\ See proposed BOX Rule 7110(c)(7)(iii). BOX IM-7140-1 provides: ``[BOX Rule 7140(b)] prevents an Options Participant executing agency orders to increase its economic gain from trading against the order without first giving other trading interest on BOX an opportunity to trade with the agency order pursuant to Rule 7150 (Price Improvement Period), Rule 7245 (Complex Order Price Improvement Period) or Rule 7270 (Block Trades). However, the Exchange recognizes that it may be possible for an Options Participant to establish a relationship with a Customer or other person (including affiliates) to deny agency orders the opportunity to interact on BOX and to realize similar economic benefits as it would achieve by executing agency orders as principal. It will be a violation of [BOX Rule 7140(b)] for an Options Participant to circumvent [BOX Rule 7140(b)] by providing an opportunity for a Customer or other person (including affiliates) to execute against agency orders handled by the Options Participant immediately upon their entry into the Trading Host.'' --------------------------------------------------------------------------- [[Page 46004]] BOX also proposes to adopt rules governing Complex QCC Orders. Proposed BOX Rule 7110(c)(8) provides that a Complex QCC Orders will be automatically executed upon entry provided that the execution (i) is not at the same price as a Public Customer Complex Order; (ii) is at least $0.01 better than (inside) the cBBO; (iii) is at or better than any non-Public Customer Complex on the Complex Order Book; and (iv) each option leg executes at or between the NBBO. The system will reject a Complex QCC Order if, at the time of receipt of the Complex QCC Order, the strategy is subject to an ongoing auction (including COPIP, Facilitation, and Solicitation auctions) or there is an exposed order on the strategy pursuant to BOX Rule 7240(b)(3)(B).\15\ Complex QCC Orders will be automatically cancelled if they cannot be executed, and Complex QCC Orders may only be entered in the minimum trading increments applicable to Complex Orders under BOX Rule 7240(b)(1).\16\ --------------------------------------------------------------------------- \15\ See proposed BOX Rule 7110(c)(8). \16\ See proposed BOX Rules 7110(c)(8)(i) and (ii). --------------------------------------------------------------------------- BOX acknowledges that, unlike the rules of the Miami International Securities Exchange, LLC (``MIAX''), BOX's proposed rules will not require that each component leg of a Complex QCC Order execute at a price that is better than Public Customer Orders on the BOX Book.\17\ Thus, BOX's proposed rule does not provide the same price protection for Public Customers as MIAX's Complex QCC rule.\18\ BOX notes, however, that its proposed requirement that a Complex QCC Order execute at a price that is at least $0.01 better than the cBBO is consistent with BOX's general approach to Complex Orders and that this approach respects all interest on the regular Book, not just the interest of Public Customers, thereby providing a level of protection to all Participants.\19\ BOX further notes that its proposal respects resting Complex Order interest by requiring a Complex QCC Order to execute at a price that is better than resting Public Customer Complex Orders and the same or better than resting non-Public Customer Complex Orders.\20\ --------------------------------------------------------------------------- \17\ See Notice, 83 FR at 26722. MIAX Rule 515(h)(4) provides that Complex Qualified Contingent Cross Orders (``cQCC Orders'') are automatically executed upon entry provided that, with respect to each option leg of the cQCC Order, the execution (i) is not at the same price as a Priority Customer Order on the Exchange's Book; and (ii) is at or between the NBBO. \18\ See supra note 17. \19\ See Notice, 83 FR at 26722. \20\ See id. and proposed BOX Rule 7110(c)(8). --------------------------------------------------------------------------- III. Proceedings To Determine Whether To Approve or Disapprove SR-BOX- 2018-14 and Grounds for Disapproval Under Consideration The Commission is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act \21\ to determine whether the proposed rule change should be approved or disapproved. Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposal, as discussed below. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide additional comment on the proposed rule change. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- Pursuant to Section 19(b)(2)(B) of the Act,\22\ the Commission is providing notice of the grounds for disapproval under consideration. BOX proposes to allow Complex QCC Orders to be automatically executed upon entry provided that the execution (i) is not at the same price as a Public Customer Complex Order; (ii) is at least $0.01 better than (inside) the cBBO; (iii) is at or better than any non-Public Customer Complex Order on the Complex Order Book; and (iv) each option leg executes at or between the NBBO. As discussed above, BOX's proposed rules do not require that each component options leg of a Complex QCC Order execute at a price that is better than resting Public Customer interest on the BOX Book. Thus, under BOX's proposal, if there is customer interest on the BOX Book at the best bid or offer on each component leg of a Complex QCC Order, the Complex QCC Order would be able to trade ahead of resting customer interest at the same price on one or more legs of the Complex QCC Order. The Commission is concerned about allowing Complex QCC Orders to execute as a ``clean'' cross ahead of resting Public Customer interest on the BOX Book. The Commission notes that, unlike in BOX's Complex Order Price Improvement Period, Facilitation Auction, and Solicitation Auction,\23\ Public Customer interest on the BOX Book would not have an opportunity to trade with a Complex QCC Order because Complex QCC Orders would be executed automatically upon entry. The Commission is concerned that Public Customers' inability to participate in a Complex QCC transaction, and the ability of Complex QCC Orders to trade ahead of resting Public Customer interest at the same price, would unduly disadvantage resting Public Customer interest on the BOX Book. --------------------------------------------------------------------------- \22\ Id. \23\ See BOX Rule 7245, IM-7270-7, and IM- 7270-8. --------------------------------------------------------------------------- The Commission is instituting proceedings to allow for additional analysis of, and input from commenters with respect to, the consistency of the proposal with Sections 6(b)(5) \24\ and 6(b)(8) \25\ of the Act. Section 6(b)(5) of the Act requires that the rules of a national securities exchange be designed, among other things, 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, and not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. Section 6(b)(8) of the Act requires that the rules of a national securities exchange not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. --------------------------------------------------------------------------- \24\ 15 U.S.C. 78f(b)(5). \25\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- IV. Procedure: Request for Written Comments The Commission requests that interested persons provide written submissions of their data, views, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal. In particular, the Commission invites the written views of interested persons concerning whether the proposed rule change is consistent with Section 6(b)(5), 6(b)(8), or any other provisions of the Act, or rules and regulations thereunder. Although there does not appear to be any issues relevant to approval or disapproval which would be facilitated by an oral presentation of data, views, and arguments, the Commission will consider, pursuant to Rule 19b-4 under the Act,\26\ any request for an opportunity to make an oral presentation.\27\ --------------------------------------------------------------------------- \26\ 17 CFR 240.19b-4. \27\ Section 19(b)(2) of the Act, as amended by the Securities Acts Amendments of 1975, Public Law 94-29 (June 4, 1975), grants to the Commission flexibility to determine what type of proceeding-- either oral or notice and opportunity for written comments--is appropriate for consideration of a particular proposal by a self- regulatory organization. See Securities Acts Amendments of 1975, Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). --------------------------------------------------------------------------- [[Page 46005]] Interested persons are invited to submit written data, views, and arguments regarding whether the proposed rule change should be approved or disapproved by October 2, 2018. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by October 16, 2018. The Commission asks that commenters address the sufficiency and merit of the Exchange's statements in support of the proposal, in addition to any other comments they may wish to submit about the proposed rule change. 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 rule-comments@sec.gov. Please include File No. SR-BOX-2018-14 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 No. SR-BOX-2018-14. The 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 a.m. and 3 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 No. SR-BOX-2018-14 and should be submitted by October 2, 2018. Rebuttal comments should be submitted by October 16, 2018. --------------------------------------------------------------------------- \28\ 17 CFR 200.30-3(a)(12); 17 CFR 200.30-3(a)(57). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\28\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-19639 Filed 9-10-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Notices 46003
number should be included on the and Exchange Commission two existing Complex Order price
subject line if email is used. To help the (‘‘Commission’’), pursuant to Section protections, the debit/credit check and
Commission process and review your 19(b)(1) of the Securities Exchange Act the maximum price protection, to the
comments more efficiently, please use of 1934 (‘‘Act’’) 1 and Rule 19b–4 proposed Complex Customer Cross and
only one method. The Commission will thereunder,2 a proposed rule change to Complex QCC Orders.9
post all comments on the Commission’s adopt rules governing the trading of Proposed BOX Rule 7110(c)(7)
internet website (http://www.sec.gov/ Complex Qualified Contingent Cross provides that a Complex Customer Cross
rules/sro.shtml). Copies of the Orders (‘‘QCC’’) and Complex Customer order will be executed automatically
submission, all subsequent Cross Orders. The proposed rule change upon entry provided that the execution
amendments, all written statements was published for comment in the (i) is at least $0.01 better than (inside)
with respect to the proposed rule Federal Register on June 8, 2018.3 On the cBBO 10 and any Public Customer
change that are filed with the July 16, 2018, pursuant to Section Complex Order on the Complex Order
Commission, and all written 19(b)(2) of the Act,4 the Commission Book; (ii) is at or better than any non-
communications relating to the designated a longer period within which Public Customer Complex Order on the
proposed rule change between the to approve the proposed rule change, Complex Order Book; and (iii) is at or
Commission and any person, other than disapprove the proposed rule change, or between the cNBBO.11 The system will
those that may be withheld from the institute proceedings to determine reject a Complex Customer Cross Order
public in accordance with the whether to approve or disapprove the if, at the time of receipt of the Complex
provisions of 5 U.S.C. 552, will be proposed rule change.5 The Commission Customer Cross Order: (i) The strategy is
available for website viewing and has received no comment letters subject to an ongoing auction (including
printing in the Commission’s Public regarding the proposed rule change. the COPIP, Facilitation, and Solicitation
Reference Room, 100 F Street NE, This order institutes proceedings auctions); or (ii) there is an exposed
Washington, DC 20549, on official pursuant to Section 19(b)(2)(B) of the order on the strategy pursuant to BOX
business days between the hours of 10 Act 6 to determine whether to approve Rule 7240(b)(3)(B).12 Complex Customer
a.m. and 3 p.m. Copies of the filing also or disapprove the proposed rule change. Cross Orders will be cancelled
will be available for inspection and automatically if they cannot be
II. Description of the Proposal
copying at the principal office of the executed, and Complex Customer Cross
Exchange. All comments received will BOX has proposed to adopt rules Orders may only be entered in the
be posted without change. Persons governing the trading of Complex minimum trading increments applicable
submitting comments are cautioned that Customer Cross Orders 7 and Complex to Complex Orders under BOX Rule
we do not redact or edit personal QCC Orders.8 The proposal also applies 7240(b)(1).13 BOX proposes to apply
identifying information from comment BOX IM–7140–1 to the entry and
1 15 U.S.C. 78s(b)(1).
submissions. You should submit only execution of Complex Customer Cross
2 17 CFR 240.19b–4.
information that you wish to make 3 See Securities Exchange Act Release No. 83367
Orders.14
available publicly. All submissions (June 4, 2018), 83 FR 26719 (‘‘Notice’’).
should refer to File Number SR–Phlx– 4 15 U.S.C. 78s(b)(2). prior existing position) as a result of other
2018–57 and should be submitted on or 5 See Securities Exchange Act Release No. 83647,
components of the contingent trade. See BOX IM–
7110–2. See Notice, supra note 3, for additional
before October 2, 2018. 83 FR 34635 (July 20, 2018). The Commission
description of the proposed rule change, including
designated September 6, 2018, as the date by which
For the Commission, by the Division of examples demonstrating the operation of the
the Commission shall approve or disapprove, or
Trading and Markets, pursuant to delegated proposed Complex Customer Cross and Complex
institute proceedings to determine whether to
authority.15 QCC Orders.
approve or disapprove, the proposed rule change. 9 See proposed BOX IM–7240–1(a)(5) and (b)(5).
6 15 U.S.C. 78s(b)(2)(B).
Eduardo A. Aleman, 10 The cBBO is the best net bid and offer price
7 A Complex Customer Cross Order is comprised
Assistant Secretary. for a Complex Order Strategy based on the BBO on
of one Public Customer Complex Order to buy and
[FR Doc. 2018–19641 Filed 9–10–18; 8:45 am] one Public Customer Complex Order to sell at the the BOX Book for the individual options
same price and for the same quantity. See proposed components of the Strategy. See BOX Rule
BILLING CODE 8011–01–P
BOX Rule 7240(b)(4)(iii). 7240(a)(1). The BOX Book is the electronic book of
8 A Complex QCC Order is comprised of an
orders on each single option series maintained by
the BOX Trading Host. See BOX Rule 100(a)(10).
originating Complex Order to buy or sell where
SECURITIES AND EXCHANGE each component is at least 1,000 contracts that is
11 The cNBBO is the best net bid and offer price
COMMISSION identified as being part of a qualified contingent for a Complex Order Strategy based on the NBBO
trade, as defined in IM–7110–2, coupled with a for the individual options components of the
[Release No. 34–84031; File No. SR–BOX– contra-side Complex Order or orders totaling an Strategy. See BOX Rule 7240(a)(3).
2018–14] equal number of contracts. See proposed BOX Rule
12 See proposed BOX Rule 7110(c)(7).
13 See proposed BOX Rule 7110(c)(7)(i) and (ii).
7240(b)(4)(iv). A ‘‘qualified contingent trade’’ is a
Self-Regulatory Organizations; BOX transaction consisting of two or more component 14 See proposed BOX Rule 7110(c)(7)(iii). BOX
Options Exchange LLC; Order orders, executed as agent or principal, where: (1) At IM–7140–1 provides: ‘‘[BOX Rule 7140(b)] prevents
Instituting Proceedings To Determine least one component is an NMS Stock, as defined an Options Participant executing agency orders to
in Rule 600 of Regulation NMS under the Exchange increase its economic gain from trading against the
Whether To Approve or Disapprove a Act; (2) all components are effected with a product order without first giving other trading interest on
Proposed Rule Change To Adopt Rules or price contingency that either has been agreed to BOX an opportunity to trade with the agency order
Governing the Trading of Complex by all the respective counterparties or arranged for pursuant to Rule 7150 (Price Improvement Period),
Qualified Contingent Cross Orders and by a broker-dealer as principal or agent; (3) the Rule 7245 (Complex Order Price Improvement
execution of one component is contingent upon the Period) or Rule 7270 (Block Trades). However, the
Complex Customer Cross Orders execution of all other components at or near the Exchange recognizes that it may be possible for an
same time; (4) the specific relationship between the Options Participant to establish a relationship with
September 5, 2018.
daltland on DSKBBV9HB2PROD with NOTICES
component orders (e.g., the spread between the a Customer or other person (including affiliates) to
I. Introduction prices of the component orders) is determined by deny agency orders the opportunity to interact on
the time the contingent order is placed; (5) the BOX and to realize similar economic benefits as it
On May 22, 2018, BOX Options component orders bear a derivative relationship to would achieve by executing agency orders as
Exchange LLC (‘‘BOX’’ or the one another, represent different classes of shares of principal. It will be a violation of [BOX Rule
the same issuer, or involve the securities of 7140(b)] for an Options Participant to circumvent
‘‘Exchange’’) filed with the Securities participants in mergers or with intentions to merge [BOX Rule 7140(b)] by providing an opportunity for
that have been announced or cancelled; and (6) the a Customer or other person (including affiliates) to
15 17 CFR 200.30–3(a)(12). transaction is fully hedged (without regard to any Continued
VerDate Sep<11>2014 18:49 Sep 10, 2018 Jkt 244001 PO 00000 Frm 00129 Fmt 4703 Sfmt 4703 E:\FR\FM\11SEN1.SGM 11SEN1](https://thefederalregister.org/doc/83_FR_46179/page/1.svg)
![Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Notices 46005
Interested persons are invited to information that you wish to make Dated: September 6, 2018.
submit written data, views, and available publicly. All submissions Brent J. Fields,
arguments regarding whether the should refer to File No. SR–BOX–2018– Secretary.
proposed rule change should be 14 and should be submitted by October [FR Doc. 2018–19791 Filed 9–7–18; 11:15 am]
approved or disapproved by October 2, 2, 2018. Rebuttal comments should be BILLING CODE 8011–01–P
2018. Any person who wishes to file a submitted by October 16, 2018.
rebuttal to any other person’s For the Commission, by the Division of
submission must file that rebuttal by Trading and Markets, pursuant to delegated SECURITIES AND EXCHANGE
October 16, 2018. The Commission asks authority.28 COMMISSION
that commenters address the sufficiency Eduardo A. Aleman, [Release No. 34–84033; File No. SR–ICEEU–
and merit of the Exchange’s statements Assistant Secretary. 2018–009]
in support of the proposal, in addition
[FR Doc. 2018–19639 Filed 9–10–18; 8:45 am]
to any other comments they may wish Self-Regulatory Organizations; ICE
BILLING CODE 8011–01–P
to submit about the proposed rule Clear Europe Limited; Order Approving
change. Proposed Rule Change Relating to
Comments may be submitted by any Amendments to the ICE Clear Europe
SECURITIES AND EXCHANGE
of the following methods: CDS End-of-Day Price Discovery
COMMISSION
Electronic Comments Policy (‘‘Price Discovery Policy’’)
Sunshine Act Meetings
• Use the Commission’s internet September 5, 2018.
comment form (http://www.sec.gov/
TIME AND DATE: 2:00 p.m. on Thursday, I. Introduction
rules/sro.shtml); or
September 13, 2018.
• Send an email to rule-comments@ On July 11, 2018, ICE Clear Europe
sec.gov. Please include File No. SR– PLACE: Closed Commission Hearing, Limited (‘‘ICE Clear Europe’’) filed with
BOX–2018–14 on the subject line. Room 10800. the Securities and Exchange
STATUS: This meeting will be closed to Commission (‘‘Commission’’), pursuant
Paper Comments
the public. to Section 19(b)(1) of the Securities
• Send paper comments in triplicate Exchange Act of 1934 (‘‘Act’’),1 and
to Secretary, Securities and Exchange MATTERS TO BE CONSIDERED:
Rule 19b–4 thereunder,2 a proposed rule
Commission, 100 F Street NE, Commissioners, Counsel to the
change (SR–ICEEU–2018–009) to revise
Washington, DC 20549–1090. Commissioners, the Secretary to the
ICE Clear Europe’s CDS End-of-Day
All submissions should refer to File No. Commission, and recording secretaries
Price Discovery Policy (‘‘Price Discovery
SR–BOX–2018–14. The file number will attend the closed meeting. Certain
Policy’’) related to the bid-offer width
should be included on the subject line staff members who have an interest in
(‘‘BOW’’) methodology for pricing
if email is used. To help the the matters also may be present.
single-name credit default swap
Commission process and review your The General Counsel of the (‘‘CDS’’) instruments.3 The proposed
comments more efficiently, please use Commission, or his designee, has rule change was published for comment
only one method. The Commission will certified that, in his opinion, one or in the Federal Register on July 24,
post all comments on the Commission’s more of the exemptions set forth in 5 2018.4 The Commission did not receive
internet website (http://www.sec.gov/ U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) comments on the proposed rule change.
rules/sro.shtml). Copies of the and (10) and 17 CFR 200.402(a)(3), For the reasons discussed below, the
submission, all subsequent (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and Commission is approving the proposed
amendments, all written statements (a)(10), permit consideration of the rule change.
with respect to the proposed rule scheduled matters at the closed meeting.
change that are filed with the Commissioner Peirce, as duty officer, II. Description of the Proposed Rule
Commission, and all written voted to consider the items listed for the Change
communications relating to the closed meeting in closed session. Currently, ICE Clear Europe uses end-
proposed rule change between the The subject matters of the closed of-day (‘‘EOD’’) price levels for risk
Commission and any person, other than meeting will be: management purposes.5 Each business
those that may be withheld from the Institution and settlement of day, ICE Clear Europe determines EOD
public in accordance with the injunctive actions; prices in accordance with its Price
provisions of 5 U.S.C. 552, will be Institution and settlement of Discovery Policy.6 Specifically, ICE
available for website viewing and administrative proceedings;
1 15 U.S.C. 78s(b)(1).
printing in the Commission’s Public Resolution of litigation claims; and 2 17 CFR 240.19b–4.
Reference Room, 100 F Street NE, Other matters relating to enforcement 3 The Price Discovery Policy uses the term
Washington, DC 20549, on official proceedings. ‘‘instrument’’ to refer to the complete set of
business days between the hours of 10 contractual terms that affect the value of a CDS
At times, changes in Commission
a.m. and 3 p.m. Copies of the filing also contract. For single-name CDS contracts, these
priorities require alterations in the terms include the reference entity, currency, debt
will be available for inspection and
scheduling of meeting items. tier, document clause, coupon, and scheduled
copying at the principal office of the termination date.
Exchange. All comments received will CONTACT PERSON FOR MORE INFORMATION: 4 Securities Exchange Act Release No. 34–83665
be posted without change. Persons For further information and to ascertain
daltland on DSKBBV9HB2PROD with NOTICES
(July 18, 2018), 83 FR 35048 (July 24, 2018) (SR–
submitting comments are cautioned that what, if any, matters have been added, ICEEU–2018–009) (‘‘Notice’’).
we do not redact or edit personal deleted or postponed; please contact 5 Capitalized terms used herein but not otherwise
Brent J. Fields from the Office of the defined have the meaning set forth in the ICE Clear
identifying information from comment Europe Clearing Rules, which is available at https://
submissions. You should submit only Secretary at (202) 551–5400. www.theice.com/publicdocs/clear_europe/
rulebooks/rules/Clearing_Rules.pdf, or in the Price
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 28 17 CFR 200.30–3(a)(12); 17 CFR 200.30– Discovery Policy.
(1975). 3(a)(57). 6 Notice, 83 FR at 35049.
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Document Created: 2018-09-11 01:03:01
Document Modified: 2018-09-11 01:03:01
| 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 46003 |
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