Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Authorize the Exchange To Share Any Participant-Designated Risk Settings in the Trading System With the Clearing Participant That Clears Transactions on Behalf of the Participant, 30291-30293 [2015-12686]
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Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Notices
2. Labor arbitration information:
Records related to labor arbitration
proceedings in which USPS is a party.
[TEXT TO BE DELETED]
3. EEO staff position information:
Records related to candidates for EEO
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Security Number, Employee
Identification Number, date of birth,
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[CHANGE TO READ]
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information, capabilities, and
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[TEXT TO BE DELETED]
3. To accomplish EEO staff selection.
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agency decision writer qualifications.
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SAFEGUARDS
[CHANGE TO READ]
Paper records and computer storage
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mstockstill on DSK4VPTVN1PROD with NOTICES
RETENTION AND DISPOSAL
[CHANGE TO READ]
1. EEO discrimination complaint case
records: Precomplaint records are
retained for 1 year after submission of
a final report. Formal complaint records
of closed cases are removed from the
system of records quarterly, and
retained as follows: Official files are
retained for 4 years. Copies of official
files are retained for 1 year. Background
documents not in official files are
retained for 2 years. Records of closed
cases on computer storage media are
removed for 3 years after the closure
VerDate Sep<11>2014
16:45 May 26, 2015
Jkt 235001
date and moved to an inactive file for
future comparative analyses.
2. Labor arbitration records: Fieldlevel disciplinary and contract
application cases are retained for 5 years
from the date of final decision. Nationallevel contract interpretation cases and
court actions are retained for 15 years
from the date of expiration of the
agreement.
3. EEO staff selection records: Staff
selection records are retained for 3 years
from the date the position became
vacant.
4. ADR provider records: Records of
active providers are retained for 1 year
beyond the date the provider is removed
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their survey was received.
Records existing on paper are
destroyed by burning, pulping, or
shredding. Records existing on
computer storage media are destroyed
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sanitization practice.
30291
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Security Number or Employee
Identification Number, location, and
case number and year. Inquiries about
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records must be submitted to the system
manager.
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RECORD SOURCE CATEGORIES
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For EEO discrimination complaint
case information: Complainants,
witnesses, investigators, and
respondents. For labor arbitration
records: Employees and other
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Stanley F. Mires,
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SYSTEM MANAGER(S) AND ADDRESS
[FR Doc. 2015–12672 Filed 5–26–15; 8:45 am]
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Vice President, Labor Relations,
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20260–4101. Inquiries must include
PO 00000
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75001; File No. SR–BOX–
2015–20]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Authorize
the Exchange To Share Any
Participant-Designated Risk Settings in
the Trading System With the Clearing
Participant That Clears Transactions
on Behalf of the Participant
May 20, 2015.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 13,
2015, 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
from interested persons.
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\27MYN1.SGM
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30292
Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
BOX Rule 7000 (Access to and Conduct
on the BOX Market) to authorize the
Exchange to share any Participantdesignated risk settings in the trading
system with the Clearing Participant
that clears transactions on behalf of the
Participant. 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 https://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
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
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to amend
BOX Rule 7000 (Access to and Conduct
on the BOX Market) to authorize the
Exchange to share any Participantdesignated risk settings in the trading
system with the Clearing Participant 3
that clears transactions on behalf of the
Participant.4 Rule 7000 states that
‘‘[u]nless otherwise provided in the
Rules, no one but an Options Participant
or a person associated with an Options
Participant shall effect any BOX
Transactions.’’ 5 The Exchange proposes
to amend the rule by adding the
following sentence: ‘‘The Exchange may
share any Participant-designated risk
settings in the trading system with the
Clearing Participant that clears
3 The term ‘‘Clearing Participant’’ means an
Options Participant that is self-clearing or an
Options Participant that clears BOX Transactions
for other Options Participants of BOX. See Rule
100(a)(13).
4 The term ‘‘Options Participant’’ or ‘‘Participant’’
means a firm, or organization that is registered with
the Exchange pursuant to the Rule 2000 Series for
purposes of participating in options trading on BOX
as an ‘‘Order Flow Provider’’ or ‘‘Market Maker’’.
See Rule 100(a)(40).
5 See Rule 7000(a).
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16:45 May 26, 2015
Jkt 235001
transactions on behalf of the
Participant.’’ This is a competitive filing
that is based on a proposal recently
submitted by the International
Securities Exchange, LLC (‘‘ISE’’).6
Rule 7200 provides that every
Clearing Participant shall be responsible
for the clearance of BOX Transactions 7
of such Clearing Participants and of
each Participant that gives up such
Clearing Participant’s name pursuant to
a letter of authorization, letter of
guarantee or other authorization given
by such Clearing Participant to such
Participant, which authorization must
be submitted to the Exchange.8 The
Exchange believes that because Clearing
Participants guarantee all transactions
on behalf of a Participant, and therefore,
bear the risk associated with those
transactions, it is appropriate for
Clearing Participants to have knowledge
of what risk settings a Participant may
utilize within the trading system.
The Exchange notes that while not all
Participants are Clearing Participants,
all Participants require a Clearing
Participant’s consent to clear
transactions on their behalf in order to
conduct business on the Exchange. As
the Clearing Participant ultimately bears
all the risk for a trade they clear on any
Participant’s behalf, the Exchange
believes it is reasonable to provide
Clearing Participants with information
relating to the risk settings used by each
Participant whose transactions they are
clearing. To the extent that a Clearing
Participant might reasonably require a
Participant to provide access to its risk
settings as a prerequisite to continue to
clear trades on the Participant’s behalf,
the Exchange’s proposal to share those
risk settings directly reduces the
administrative burden on Participants
and ensures that Clearing Participants
are receiving information that is up-todate and conforms to the settings active
in the trading system.
The Exchange further notes that any
broker-dealer is free to become a
clearing member of the Options Clearing
Corporation (the ‘‘OCC’’), which would
enable that Participant to avoid sharing
risk settings with any third party, if they
so choose. For these reasons, the
Exchange believes that the proposal is
consistent with the Act as it provides
Clearing Participants with additional
risk-related information that may aid
them in complying with the Act,
6 See Securities Exchange Act Release No. 74623
(April 1, 2015), 80 FR 18447 (April 6, 2015) (Notice
of SR–ISE–2015–12).
7 The term ‘‘BOX Transaction’’ means a
transaction involving an options contract that is
effected on or through BOX or its facilities or
systems. See Rule 100(a)(8).
8 See Rule 7200(b).
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
notably Rule 15c3–5 and, as noted,
Participants that do not wish to share
such settings with a Clearing Participant
can do so by becoming a clearing
member of the OCC.
The risk settings that would be shared
pursuant to the proposed rule are
currently codified in Rule 8130.9 The
risk settings are designed to mitigate the
potential risks of multiple executions
against a Participant’s trading interest
that, in today’s highly automated and
electronic trading environment, can
occur simultaneously across multiple
series and multiple option classes. The
proposed rule will allow the Exchange
to share a Participant’s risk settings with
the Clearing Participant that guarantees
the Participant’s transactions, and
therefore has a financial interest in
understanding the risk tolerance of a
Participant.
Because the letter of guarantee
codifies the relationship between a
Participant and the Clearing Participant,
the Exchange is on notice of which
Clearing Participants have relationships
with which Participants. The proposed
rule change would simply provide the
Exchange with authority to directly
provide Clearing Participants with
information that may otherwise be
available to such Clearing Participants
by virtue of their relationship with the
respective Participant.
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’’),10 in general, and Section 6(b)(5)
of the Act,11 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
9 Under BOX Rule 8130 there are five triggering
parameters that Market Makers can enable on a
class-by-class basis. These are when the Market
Maker: (1) Experiences a duration of no technical
connectivity for between one and nine seconds; (2)
trades a specified number of contracts in the
aggregate across all series of an options class; (3)
trades a specified absolute dollar value of contracts
bought and sold in a class; (4) trades a specified
number of contracts in a class of the net between
(i) calls purchased plus puts sold, and (ii) calls sold
and puts purchased; or, (5) trades a specified
absolute dollar value of the net position in a class
between (i) calls purchased and sold, (ii) puts and
calls purchased; (iii) puts purchased and sold; or
(iv) puts and calls sold.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
E:\FR\FM\27MYN1.SGM
27MYN1
Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Notices
general to protect investors and the
public interest.
The Exchange believes that the
proposed rule change removes
impediments to and perfects the
mechanism of a free and open market by
codifying that the Exchange may
directly provide to Clearing Participants
which guarantee that Participant’s
transactions on the Exchange the
Participant-designated risk settings in
the trading system, which are designed
to mitigate the potential risk of ‘‘rapid
fire’’ executions that could result in
large and unintended principal
positions and expose the Participant to
unnecessary market risk. The Exchange
believes that the proposed rule change
is consistent with the protection of
investors and the public interest
because it will permit Clearing
Participants with a financial interest in
a Participant’s risk settings to better
monitor and manage the potential risks
assumed by Participants with whom the
Clearing Participant has entered into a
letter of guarantee, thereby providing
Clearing Participants with greater
control and flexibility over setting their
own risk tolerance and exposure.
mstockstill on DSK4VPTVN1PROD with NOTICES
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
and as indicated above, the Exchange
notes that the rule change is being
proposed as a response to a filing
submitted by ISE.12 The proposed rule
change is not designed to address any
competitive issues and does not pose an
undue burden on non-Clearing
Participants because, unlike Clearing
Participants, non-Clearing Participants
do not guarantee the execution of a
Participant’s BOX Transactions. The
proposed rule change would provide
authority for the Exchange to directly
share risk settings with Clearing
Participants regarding the Participants
with whom the Clearing Participant has
executed a letter of guarantee so the
Clearing Participant can better monitor
and manage the potential risks assumed
by the Participants, thereby providing
them with greater control and flexibility
over setting their own risk tolerance and
exposure. The proposed rule change is
structured to offer the same
enhancement to all Clearing
Participants, regardless of size, and
would not impose a competitive burden
on any participant.
12 See
supra, note 6.
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16:45 May 26, 2015
Jkt 235001
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
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 13 and Rule 19b–
4(f)(6) 14 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change 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:
30293
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 (https://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 will also 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–
2015–20 and should be submitted on or
before June 17, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–12686 Filed 5–26–15; 8:45 am]
BILLING CODE 8011–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BOX–2015–20 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–2015–20. This file
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
14 17
PO 00000
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. IC–31615; File No. 812–14468]
Citicorp, et al.; Notice of Application
and Temporary Order
May 20, 2015.
Securities and Exchange
Commission (‘‘Commission’’)
ACTION: Temporary order and notice of
application for a permanent order under
section 9(c) of the Investment Company
Act of 1940 (‘‘Act’’).
AGENCY:
Applicants
have received a temporary order
(‘‘Temporary Order’’) exempting them
from section 9(a) of the Act, with
respect to a guilty plea entered on May
SUMMARY OF APPLICATION:
15 17
E:\FR\FM\27MYN1.SGM
CFR 200.30–3(a)(12).
27MYN1
]]>Agencies
[Federal Register Volume 80, Number 101 (Wednesday, May 27, 2015)]
[Notices]
[Pages 30291-30293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12686]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75001; File No. SR-BOX-2015-20]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To
Authorize the Exchange To Share Any Participant-Designated Risk
Settings in the Trading System With the Clearing Participant That
Clears Transactions on Behalf of the Participant
May 20, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 13, 2015, 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 from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
[[Page 30292]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend BOX Rule 7000 (Access to and Conduct
on the BOX Market) to authorize the Exchange to share any Participant-
designated risk settings in the trading system with the Clearing
Participant that clears transactions on behalf of the Participant. 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 https://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 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 7000 (Access to and Conduct
on the BOX Market) to authorize the Exchange to share any Participant-
designated risk settings in the trading system with the Clearing
Participant \3\ that clears transactions on behalf of the
Participant.\4\ Rule 7000 states that ``[u]nless otherwise provided in
the Rules, no one but an Options Participant or a person associated
with an Options Participant shall effect any BOX Transactions.'' \5\
The Exchange proposes to amend the rule by adding the following
sentence: ``The Exchange may share any Participant-designated risk
settings in the trading system with the Clearing Participant that
clears transactions on behalf of the Participant.'' This is a
competitive filing that is based on a proposal recently submitted by
the International Securities Exchange, LLC (``ISE'').\6\
---------------------------------------------------------------------------
\3\ The term ``Clearing Participant'' means an Options
Participant that is self-clearing or an Options Participant that
clears BOX Transactions for other Options Participants of BOX. See
Rule 100(a)(13).
\4\ The term ``Options Participant'' or ``Participant'' means a
firm, or organization that is registered with the Exchange pursuant
to the Rule 2000 Series for purposes of participating in options
trading on BOX as an ``Order Flow Provider'' or ``Market Maker''.
See Rule 100(a)(40).
\5\ See Rule 7000(a).
\6\ See Securities Exchange Act Release No. 74623 (April 1,
2015), 80 FR 18447 (April 6, 2015) (Notice of SR-ISE-2015-12).
---------------------------------------------------------------------------
Rule 7200 provides that every Clearing Participant shall be
responsible for the clearance of BOX Transactions \7\ of such Clearing
Participants and of each Participant that gives up such Clearing
Participant's name pursuant to a letter of authorization, letter of
guarantee or other authorization given by such Clearing Participant to
such Participant, which authorization must be submitted to the
Exchange.\8\ The Exchange believes that because Clearing Participants
guarantee all transactions on behalf of a Participant, and therefore,
bear the risk associated with those transactions, it is appropriate for
Clearing Participants to have knowledge of what risk settings a
Participant may utilize within the trading system.
---------------------------------------------------------------------------
\7\ The term ``BOX Transaction'' means a transaction involving
an options contract that is effected on or through BOX or its
facilities or systems. See Rule 100(a)(8).
\8\ See Rule 7200(b).
---------------------------------------------------------------------------
The Exchange notes that while not all Participants are Clearing
Participants, all Participants require a Clearing Participant's consent
to clear transactions on their behalf in order to conduct business on
the Exchange. As the Clearing Participant ultimately bears all the risk
for a trade they clear on any Participant's behalf, the Exchange
believes it is reasonable to provide Clearing Participants with
information relating to the risk settings used by each Participant
whose transactions they are clearing. To the extent that a Clearing
Participant might reasonably require a Participant to provide access to
its risk settings as a prerequisite to continue to clear trades on the
Participant's behalf, the Exchange's proposal to share those risk
settings directly reduces the administrative burden on Participants and
ensures that Clearing Participants are receiving information that is
up-to-date and conforms to the settings active in the trading system.
The Exchange further notes that any broker-dealer is free to become
a clearing member of the Options Clearing Corporation (the ``OCC''),
which would enable that Participant to avoid sharing risk settings with
any third party, if they so choose. For these reasons, the Exchange
believes that the proposal is consistent with the Act as it provides
Clearing Participants with additional risk-related information that may
aid them in complying with the Act, notably Rule 15c3-5 and, as noted,
Participants that do not wish to share such settings with a Clearing
Participant can do so by becoming a clearing member of the OCC.
The risk settings that would be shared pursuant to the proposed
rule are currently codified in Rule 8130.\9\ The risk settings are
designed to mitigate the potential risks of multiple executions against
a Participant's trading interest that, in today's highly automated and
electronic trading environment, can occur simultaneously across
multiple series and multiple option classes. The proposed rule will
allow the Exchange to share a Participant's risk settings with the
Clearing Participant that guarantees the Participant's transactions,
and therefore has a financial interest in understanding the risk
tolerance of a Participant.
---------------------------------------------------------------------------
\9\ Under BOX Rule 8130 there are five triggering parameters
that Market Makers can enable on a class-by-class basis. These are
when the Market Maker: (1) Experiences a duration of no technical
connectivity for between one and nine seconds; (2) trades a
specified number of contracts in the aggregate across all series of
an options class; (3) trades a specified absolute dollar value of
contracts bought and sold in a class; (4) trades a specified number
of contracts in a class of the net between (i) calls purchased plus
puts sold, and (ii) calls sold and puts purchased; or, (5) trades a
specified absolute dollar value of the net position in a class
between (i) calls purchased and sold, (ii) puts and calls purchased;
(iii) puts purchased and sold; or (iv) puts and calls sold.
---------------------------------------------------------------------------
Because the letter of guarantee codifies the relationship between a
Participant and the Clearing Participant, the Exchange is on notice of
which Clearing Participants have relationships with which Participants.
The proposed rule change would simply provide the Exchange with
authority to directly provide Clearing Participants with information
that may otherwise be available to such Clearing Participants by virtue
of their relationship with the respective Participant.
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''),\10\ in general, and Section 6(b)(5) of the Act,\11\ 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
[[Page 30293]]
general to protect investors and the public interest.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change removes
impediments to and perfects the mechanism of a free and open market by
codifying that the Exchange may directly provide to Clearing
Participants which guarantee that Participant's transactions on the
Exchange the Participant-designated risk settings in the trading
system, which are designed to mitigate the potential risk of ``rapid
fire'' executions that could result in large and unintended principal
positions and expose the Participant to unnecessary market risk. The
Exchange believes that the proposed rule change is consistent with the
protection of investors and the public interest because it will permit
Clearing Participants with a financial interest in a Participant's risk
settings to better monitor and manage the potential risks assumed by
Participants with whom the Clearing Participant has entered into a
letter of guarantee, thereby providing Clearing Participants with
greater control and flexibility over setting their own risk tolerance
and exposure.
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 and as indicated
above, the Exchange notes that the rule change is being proposed as a
response to a filing submitted by ISE.\12\ The proposed rule change is
not designed to address any competitive issues and does not pose an
undue burden on non-Clearing Participants because, unlike Clearing
Participants, non-Clearing Participants do not guarantee the execution
of a Participant's BOX Transactions. The proposed rule change would
provide authority for the Exchange to directly share risk settings with
Clearing Participants regarding the Participants with whom the Clearing
Participant has executed a letter of guarantee so the Clearing
Participant can better monitor and manage the potential risks assumed
by the Participants, thereby providing them with greater control and
flexibility over setting their own risk tolerance and exposure. The
proposed rule change is structured to offer the same enhancement to all
Clearing Participants, regardless of size, and would not impose a
competitive burden on any participant.
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\12\ See supra, note 6.
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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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) \14\ thereunder. At any time within 60 days of the filing of
the proposed rule change, the Commission summarily may temporarily
suspend such rule change if it appears to the Commission that such
action is necessary or appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes of
the Act. If the Commission takes such action, the Commission will
institute proceedings to determine whether the proposed rule change
should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BOX-2015-20 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-2015-20. 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 Web site (https://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 will also 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-2015-20 and should be
submitted on or before June 17, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-12686 Filed 5-26-15; 8:45 am]
BILLING CODE 8011-01-P
