[Federal Register Volume 78, Number 223 (Tuesday, November 19, 2013)]
[Notices]
[Pages 69496-69497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-27624]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70858; File No. SR-BOX-2013-52]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend the BOX Fee Schedule To Specify the Frequency With Which the
Exchange May Change the Options Regulatory Fee
November 13, 2013.
Pursuant to Section 19(b)(1) under the Securities Exchange Act of
1934 (the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby
given that on October 31, 2013, BOX Options Exchange LLC (the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the Exchange. The
Exchange filed the proposed rule change pursuant to Section
19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\
which renders the proposal effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is filing with the Commission a proposed rule change
to amend the Fee Schedule to specify the frequency with which the
Exchange may change the Options Regulatory Fee (``ORF'') on the BOX
Market LLC (``BOX'') options facility. While changes to the fee
schedule pursuant to this proposal will be effective upon filing, the
changes will become operative on November 1, 2013. 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 Web site 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule for trading on BOX
to specify the frequency with which the Exchange may change the ORF.
The Exchange proposes to implement the change effective November 1,
2013.
The ORF is assessed by the Exchange on each BOX Options Participant
for all options transactions executed or cleared by the BOX Options
Participant that are cleared by The Options Clearing Corporation
(``OCC'') in the customer range (i.e., transactions that clear in the
customer account of the BOX Options Participant's clearing firm at OCC)
regardless of the exchange on which the transaction occurs. The fee is
collected indirectly from BOX Options Participants through their
clearing firms by OCC on behalf of the Exchange. The dues and fees paid
by BOX Options Participants go into the general funds of the Exchange,
a portion of which is used to help pay the costs of regulation.
In response to feedback from participants requesting greater
certainty as to when ORF changes may occur, the Exchange proposes to
specify in the Fee Schedule that the Exchange may only increase or
decrease the ORF semi-annually, and any such fee change will be
effective on the first business day of February or August. The Exchange
has previously committed to monitor the amount of revenue collected
from the ORF so that it, in combination with its other regulatory fees
and fines, does not exceed regulatory costs. In addition to submitting
a proposed rule change to the Securities and Exchange Commission
(``Commission'') as required by the Act to increase or decrease the
ORF, the Exchange will notify Participants via an Informational
Circular of any anticipated change in the amount of the fee at least 30
calendar days prior to the effective date of the change. The Exchange
believes that by providing guidance on the timing of any changes to the
ORF, the Exchange would make it easier for participants to ensure their
systems are configured to properly account for the ORF.
The proposed change is not intended to address any other issues,
and the Exchange is not aware of any problems that BOX Options
Participants would have in complying with the proposed change.
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.
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\5\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes that the proposed change to limit changes to
the ORF to twice a year on specific dates with advance notice is
reasonable because it will give participants certainty on the timing of
changes, if any, and better enable them to properly account for ORF
charges among their customers. The Exchange believes that the proposed
change is equitable and not unfairly discriminatory because it will
apply in the same manner to all BOX Options Participants that are
subject to the ORF and provide them
[[Page 69497]]
with additional advance notice of changes to that fee.
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 proposed change is not
intended to address a competitive issue but rather to provide BOX
Options Participants with better notice of any change that the Exchange
may make to the ORF. In any event, because competitors are free to
modify their own fees and credits in response, and because market
participants may readily adjust their trading practices, the Exchange
believes that the degree to which fee or credit changes in this market
may impose any burden on competition is extremely limited. As a result
of all of these considerations, the Exchange does not believe that the
proposed change will impair the ability of BOX Options Participants, or
competing order execution venues to maintain their competitive standing
in the financial markets.
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 \6\ and Rule 19b-4(f)(2)
thereunder,\7\ because it establishes or changes a due, or fee.
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\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend the rule
change if it appears to the Commission that the action is necessary or
appropriate in the public interest, for the protection of investors, or
would otherwise further the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please
include File Number SR-BOX-2013-52 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BOX-2013-52. 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 Web site (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 Web site 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 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; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-BOX-2013-52 and should be
submitted on or before December 10, 2013.
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\8\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-27624 Filed 11-18-13; 8:45 am]
BILLING CODE 8011-01-P