83 FR 6281 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Amend the BOX Volume Rebate
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 30 (February 13, 2018)
Federal Register Volume 83, Issue 30 (February 13, 2018)
| Page Range | 6281-6283 | |
| FR Document | 2018-02865 |
[Federal Register Volume 83, Number 30 (Tuesday, February 13, 2018)] [Notices] [Pages 6281-6283] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-02865] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82655; File No. SR-BOX-2018-03] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Amend the BOX Volume Rebate February 7, 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 January 31, 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). --------------------------------------------------------------------------- [[Page 6282]] 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. While changes to the fee schedule pursuant to this proposal will be effective upon filing, the changes will become operative on February 1, 2018. 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 the Fee Schedule for trading on BOX. Specifically, the Exchange proposes to amend the BOX Volume Rebate (``BVR'') in Section I.B.2 of the Fee Schedule (Electronic Transaction Fees). Under the current BVR, the Exchange offers a tiered per contract rebate for all Public Customer PIP Orders and COPIP orders of 100 contracts and under that do not trade solely with their contra order. Percentage thresholds are calculated on a monthly basis by totaling the Participant's PIP and COPIP volume submitted to BOX, relative to the total national Customer volume in multiply-listed options classes. Further, Public Customer PIP Orders of 100 and under contracts that trade solely with their contra order receive a $0.03 per contract rebate, regardless of tier. The Exchange now proposes to increase the BVR contract threshold necessary to qualify for the tiered contract rebate for all Public Customer PIP Orders and COPIP Orders to 250 contracts and under that do not trade solely with their contra order. The calculation of the percentage threshold will remain based on a Participant's PIP and COPIP volume submitted to BOX, relative to the total national Customer volume in multiply-listed options classes. The Exchange also proposes to increase the BVR contract threshold for Public Customer PIP Orders that trade solely with their contra order to 250 contracts and under. These orders will continue to receive a $0.03 per contract rebate, regardless of tier. 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,\5\ 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes the proposed amendments to the BVR in Section I.B.2 are reasonable, equitable and not unfairly discriminatory. The BVR was adopted to attract Public Customer order flow to the Exchange by offering these Participants incentives to submit their PIP and COPIP Orders to the Exchange. Other Exchanges employ similar incentive programs.\6\ The Exchange believes it is reasonable and appropriate to provide incentives for Public Customers, which will result in greater liquidity and ultimately benefit all Participants trading on the Exchange. Further, the Exchange continues to believe that exempting Non-Public Customer PIP and COPIP Orders from the BVR is reasonable as specific incentives for Public Customer volume is common within the options industry.\7\ --------------------------------------------------------------------------- \6\ See Section B of the Phlx Pricing Schedule entitled ``Customer Rebate Program'' and CBOE's Volume Incentive Program (VIP). CBOE's Volume Incentive Program (``VIP'') pays certain tiered rebates to Trading Permit Holders for electronically executed multiply-listed option orders which include AIM orders. \7\ Id. --------------------------------------------------------------------------- As mentioned above, the BVR is intended to incentivize Public Customers to direct order flow to the Exchange. As such, the Exchange believes it is reasonable to increase the threshold eligibility for Public Customer PIP and COPIP Orders to 250 contracts and under. Increasing the BVR will result in greater liquidity and ultimately benefit all Participants trading on the Exchange. Further, the Exchange believes that the proposed change is equitable and not unfairly discriminatory as it will apply to all Public Customers uniformly. 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. The Exchange does not believe that the proposed change burdens competition and will instead help promote competition by continuing to providing incentives for market participants to submit customer order flow to BOX and thus, create a greater opportunity for price improvement. 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 \8\ and Rule 19b-4(f)(2) thereunder,\9\ because it establishes or changes a due, or fee. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(ii). \9\ 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: 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-2018-03 on the subject line. [[Page 6283]] 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-2018-03. 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-2018-03, and should be submitted on or before March 6, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-02865 Filed 2-12-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 30 / Tuesday, February 13, 2018 / Notices 6281
FB SPX Surcharge is intended to be III. Date of Effectiveness of the Reference Room, 100 F Street NE,
assessed on those Floor Brokers who Proposed Rule Change and Timing for Washington, DC 20549 on official
regularly conduct open outcry Commission Action business days between the hours of
transactions in SPX or SPX Weeklys The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
(i.e., Floor Brokers who are engaging in effective pursuant to Section 19(b)(3)(A) filing also will be available for
regular SPX trades), since those Floor of the Act 7 and paragraph (f) of Rule inspection and copying at the principal
Brokers are engaging in transactions for 19b–4 8 thereunder. At any time within office of the Exchange. All comments
which executing SPX trades is the 60 days of the filing of the proposed rule received will be posted without change.
primary purpose of such transactions (or change, the Commission summarily may Persons submitting comments are
are signing up to do so). Floor Brokers temporarily suspend such rule change if cautioned that we do not redact or edit
who only engage in SPX transactions it appears to the Commission that such personal identifying information from
through the execution of Multi-Class action is necessary or appropriate in the comment submissions. You should
Spread Orders with an SPX component public interest, for the protection of submit only information that you wish
are not engaging in such transactions investors, or otherwise in furtherance of to make available publicly. All
with primary purpose of executing an the purposes of the Act. If the submissions should refer to File
SPX order, but instead are just executing Commission takes such action, the Number SR–CBOE–2018–015 and
an SPX order as part of a larger Multi- Commission will institute proceedings
should be submitted on or before March
Class Spread Order. Additionally, all to determine whether the proposed rule
6, 2018.
Floor Brokers who only engage in SPX change should be approved or
transactions through the execution of disapproved. For the Commission, by the Division of
Multi-Class Spread Orders with an SPX Trading and Markets, pursuant to delegated
IV. Solicitation of Comments authority.9
component will have the opportunity to
be excluded from the FB SPX Surcharge. Interested persons are invited to Eduardo A. Aleman,
submit written data, views, and
Assistant Secretary.
B. Self-Regulatory Organization’s arguments concerning the foregoing,
Statement on Burden on Competition [FR Doc. 2018–02859 Filed 2–12–18; 8:45 am]
including whether the proposed rule
change is consistent with the Act. BILLING CODE 8011–01–P
The Exchange does not believe that Comments may be submitted by any of
the proposed rule change will impose the following methods:
any burdens on competition that are not SECURITIES AND EXCHANGE
necessary or appropriate in furtherance Electronic Comments COMMISSION
of the purposes of the Act. The • Use the Commission’s internet
Exchange does not believe the proposed comment form (http://www.sec.gov/ [Release No. 34–82655; File No. SR–BOX–
rule change will impose any burden on rules/sro.shtml); or 2018–03]
intramarket competition that is not • Send an email to rule-comments@
necessary or appropriate in furtherance sec.gov. Please include File Number SR– Self-Regulatory Organizations; BOX
of the purposes of the Act, because the CBOE–2018–015 on the subject line. Options Exchange LLC; Notice of
proposed rule change provides Floor Paper Comments Filing and Immediate Effectiveness of
Brokers not engaged in regular SPX a Proposed Rule Change To Amend
trades with an opportunity to be • Send paper comments in triplicate
the Fee Schedule To Amend the BOX
excluded from the FB SPX Surcharge, to Secretary, Securities and Exchange
Volume Rebate
which is intended to be assessed on Commission, 100 F Street NE,
those Floor Brokers who engage in Washington, DC 20549–1090. February 7, 2018.
transactions for which executing SPX All submissions should refer to File
Pursuant to Section 19(b)(1) of the
trades is the primary purpose of such Number SR–CBOE–2018–015. This file
number should be included on the Securities Exchange Act of 1934 (the
transactions (or are signing up to do so). ‘‘Act’’),1 and Rule 19b–4 thereunder,2
The Exchange does not believe that the subject line if email is used. To help the
Commission process and review your notice is hereby given that on January
proposed rule changes will impose any 31, 2018, BOX Options Exchange LLC
burden on intermarket competition that comments more efficiently, please use
only one method. The Commission will (the ‘‘Exchange’’) filed with the
is not necessary or appropriate in Securities and Exchange Commission
furtherance of the purposes of the Act post all comments on the Commission’s
internet website (http://www.sec.gov/ (‘‘Commission’’) the proposed rule
because the proposed rule change only change as described in Items I, II, and
affects trading on the Exchange’s trading rules/sro.shtml). Copies of the
submission, all subsequent III below, which Items have been
floor. To the extent that the proposed
amendments, all written statements prepared by the Exchange. The
changes make Cboe Options a more
with respect to the proposed rule Exchange filed the proposed rule change
attractive marketplace for market
change that are filed with the pursuant to Section 19(b)(3)(A)(ii) of the
participants at other exchanges, such
Commission, and all written Act,3 and Rule 19b–4(f)(2) thereunder,4
market participants are welcome to
communications relating to the which renders the proposal effective
become Cboe Options market
proposed rule change between the upon filing with the Commission. The
participants.
Commission and any person, other than Commission is publishing this notice to
sradovich on DSK3GMQ082PROD with NOTICES
C. Self-Regulatory Organization’s those that may be withheld from the solicit comments on the proposed rule
Statement on Comments on the public in accordance with the change from interested persons.
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be
Members, Participants, or Others available for website viewing and 9 17 CFR 200.30–3(a)(12).
printing in the Commission’s Public 1 15 U.S.C. 78s(b)(1).
The Exchange neither solicited nor 2 17 CFR 240.19b–4.
received comments on the proposed 7 15 U.S.C. 78s(b)(3)(A). 3 15 U.S.C. 78s(b)(3)(A)(ii).
rule change. 8 17 CFR 240.19b–4(f). 4 17 CFR 240.19b–4(f)(2).
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![Federal Register / Vol. 83, No. 30 / Tuesday, February 13, 2018 / Notices 6283
Paper Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and
• Send paper comments in triplicate Statutory Basis for, the Proposed Rule
to Secretary, Securities and Exchange Change
[Release No. 34–82649; File No. SR–Phlx–
Commission, 100 F Street NE,
2018–15] 1. Purpose
Washington, DC 20549–1090.
Self-Regulatory Organizations; Nasdaq Exchange Rule 1092 provides rules
All submissions should refer to File
PHLX LLC; Notice of Filing and and procedures with respect to the
Number SR–BOX–2018–03. This file
nullification and adjustment of options
number should be included on the Immediate Effectiveness of Proposed
transactions including obvious errors.
subject line if email is used. To help the Rule Change To Delete Cross-
Rule 1092(l) governs appeals to the
Commission process and review your Reference to Rule 124(d) From Rule
Exchange Review Council of
comments more efficiently, please use 1092 nullification and adjustment decisions
only one method. The Commission will by Options Exchange Officials.3 It
February 7, 2018.
post all comments on the Commission’s provides that a party affected by a
internet website (http://www.sec.gov/ Pursuant to Section 19(b)(1) of the determination made under Rule 1092
rules/sro.shtml). Copies of the Securities Exchange Act of 1934 (the may request the Exchange Review
submission, all subsequent ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Council to review that determination
amendments, all written statements notice is hereby given that on February ‘‘in accordance with Exchange Rule
with respect to the proposed rule 5, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or 124(d).’’ However, Rule 124, Disputes-
change that are filed with the ‘‘Exchange’’) filed with the Securities Options, section (d) applies by its terms
Commission, and all written and Exchange Commission only to appeals to the Exchange Review
communications relating to the (‘‘Commission’’) the proposed rule Council of Options Exchange Official
proposed rule change between the change as described in Items I and II decisions regarding trading disputes
Commission and any person, other than below, which Items have been prepared occurring on, and relating to, the trading
those that may be withheld from the by the Exchange. The Commission is floor. In fact, Rule 124(a) specifically
public in accordance with the publishing this notice to solicit states that Rule 124 shall not apply to
provisions of 5 U.S.C. 552, will be comments on the proposed rule change options transactions that are the result
available for website viewing and from interested persons. of an obvious error or catastrophic error
printing in the Commission’s Public as defined in Rule 1092, and that
I. Self-Regulatory Organization’s options transactions that are the result
Reference Room, 100 F Street NE, Statement of the Terms of the Substance of an obvious error or catastrophic error
Washington, DC 20549 on official of the Proposed Rule Change shall be subject to the provisions and
business days between the hours of
procedures set forth in Rule 1092.
10:00 a.m. and 3:00 p.m. Copies of such The Exchange proposes to amend The cross-reference to Rule 124(d) in
filing also will be available for Rule 1092, Nullification and Rule 1092 is therefore incorrect and
inspection and copying at the principal Adjustment of Options Transactions inappropriate, and needlessly
office of the Exchange. All comments including Obvious Errors, by deleting a confusing. Moreover, it is unnecessary
received will be posted without change. cross-reference to Rule 124(d). as Rule 1092 itself provides the
Persons submitting comments are The text of the proposed rule change necessary process for requesting and
cautioned that we do not redact or edit is available on the Exchange’s website at obtaining an appeal by the Exchange
personal identifying information from http://nasdaqphlx.cchwallstreet.com/, Review Council of nullification and
comment submissions. You should at the principal office of the Exchange, adjustment decisions. The Exchange
submit only information that you wish and at the Commission’s Public therefore proposes to remove the cross-
to make available publicly. All Reference Room. reference.
submissions should refer to File 2. Statutory Basis
Number SR–BOX–2018–03, and should II. Self-Regulatory Organization’s
be submitted on or before March 6, Statement of the Purpose of, and The Exchange believes that its
2018. Statutory Basis for, the Proposed Rule proposal is consistent with Section 6(b)
Change of the Act,4 in general, and furthers the
For the Commission, by the Division of objectives of Section 6(b)(5) of the Act,5
Trading and Markets, pursuant to delegated In its filing with the Commission, the in particular, in that it is designed to
authority.10 Exchange included statements promote just and equitable principles of
Eduardo A. Aleman, concerning the purpose of and basis for trade, to remove impediments to and
Assistant Secretary. the proposed rule change and discussed perfect the mechanism of a free and
[FR Doc. 2018–02865 Filed 2–12–18; 8:45 am] any comments it received on the open market and a national market
BILLING CODE 8011–01–P proposed rule change. The text of these
3 An Options Exchange Official is an Exchange
statements may be examined at the
staff member or contract employee designated as
places specified in Item IV below. The such by the Chief Regulatory Officer. A list of
Exchange has prepared summaries, set individual Options Exchange Officials is displayed
forth in sections A, B, and C below, of on the Exchange website. The Chief Regulatory
sradovich on DSK3GMQ082PROD with NOTICES
Officer maintains the list of Options Exchange
the most significant aspects of such Officials and updates the website each time a name
statements. is added to, or deleted from, the list of Options
Exchange Officials. In the event no Options
Exchange Official is available to rule on a particular
matter, the Chief Regulatory Officer or his/her
designee rules on the matter.
1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b).
10 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. 5 15 U.S.C. 78f(b)(5).
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Document Created: 2018-02-13 02:32:34
Document Modified: 2018-02-13 02:32:34
| 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 6281 |
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