[Federal Register Volume 79, Number 28 (Tuesday, February 11, 2014)]
[Notices]
[Pages 8212-8213]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-02873]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71480; File No. SR-BOX-2014-07]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change to
Amend the Fee Schedule
February 5, 2014.
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 January 23, 2014, 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 Securities and Exchange Commission
(``Commission'') a proposed rule change to amend the Fee Schedule on
the BOX Market LLC (``BOX'') options facility to remove the reference
to the Nasdaq 100 Index (NDX) as well as to modify language in the
footnotes. 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
Statutory Basis for, Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule for trading on BOX
to remove the reference to the Nasdaq 100 Index (NDX) and to modify
language in the footnotes.
Because the Exchange has delisted the Nasdaq 100 Index (NDX),\5\
the Exchange proposes to remove the reference to NDX from the BOX Fee
Schedule. Currently, Section I Exchange Fees of the BOX Fee Schedule
provides for a surcharge to be applied to options on any index traded
on BOX; which includes a $0.22 per contract surcharge for options on
NDX. The Exchange has since delisted options on NDX and they are no
longer traded on BOX. As such, no related surcharge will apply, and the
Exchange is proposing to remove the reference to the BOX Fee Schedule.
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\5\ See Securities Exchange Act Release No. 71084 (December 16,
2013), 78 FR 77185 (December 20, 2013) (SR-BOX-2013-58) (Notice of
Filing and Immediate Effectiveness).
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In addition, the Exchange is proposing to amend the language in
footnotes 6 and 7 in Sections I.A. and I.B. of the Fee Schedule. The
Exchange recently added these footnotes to permit the Exchange to
adjust the average daily volume calculation for any trading day on
which the Exchange is closed for trading due to an early closing or a
market-wide trading halt.\6\ The Exchange proposes to modify the
language in these footnotes to state ``For purposes of calculating
monthly ADV, BOX will count as a half day any day that the market
closes early for a holiday observance.'' The Exchange believes this
proposed change will reduce investor confusion by clarifying when the
Exchange will make adjustments to the monthly Average Daily Volume
(``ADV'') calculation.
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\6\ See Securities Exchange Act Release No. 71025 (December 6,
2013), 78 FR 75644 (December 12, 2013) (SR-BOX-2013-55) (Notice of
Filing and Immediate Effectiveness).
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Specifically, all days where the Exchange closes early for holiday
observance will be counted as a half day in the monthly ADV
calculation. While Participants are always aware in advance of early
close days, these are typically low volume days and the Exchange
believes counting these days as a full day for purposes of the ADV
calculation would not be fair to Participants. This will clarify that
the Exchange will not make any adjustments to the ADV calculation on
days where trading in all securities was halted for a period of time.
While certain exchanges remove these days from their ADV
calculations,\7\ the Exchange believes that the timing and impact of
trading halts can vary substantially, and removing these days entirely
from the ADV calculation is not always appropriate. Since trading halts
occur very rarely, the Exchange believes it is reasonable to always
include these days in the ADV calculation and that doing so will reduce
investor confusion about what instances qualify for the ADV adjustment.
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\7\ NASDAQ OMX PHLX, LLC (``PHLX''), NASDAQ Options Market
(``NOM'') and the International Securities Exchange, LLC (``ISE'')
all exclude days from their respective ADV calculations if there a
trading halt in all securities or the exchange is honoring a market-
wide trading halt declared by another market.
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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,\8\ 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. In particular, this proposed change removes from the BOX
Fee Schedule a reference to a fee that is no longer applicable since
options on NDX have been delisted and are no longer traded on BOX.
Additionally, the proposed modification to the language in footnotes 6
and 7 will provide greater clarity to the Exchange's procedures for
making adjustments in calculating monthly ADV on days when the market
[[Page 8213]]
closes early for holiday observances thereby reducing investor
confusion.
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\8\ 15 U.S.C. 78f(b)(4) and (5).
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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 changes are not
designed to address any competitive issue but rather would remove the
reference to NDX that is no longer applicable because options on NDX
have been delisted and are no longer traded on BOX and would provide
clarification to the Exchange's procedures for making adjustments in
calculating monthly ADV on days when the market closes early for
holiday observances.
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 \9\ and Rule 19b-4(f)(2)
thereunder,\10\ because it establishes or changes a due, or fee.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 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-2014-07 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-2014-07. 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 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; 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-2014-07 and should be
submitted on or before March 4, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-02873 Filed 2-10-14; 8:45 am]
BILLING CODE 8011-01-P