Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the BOX Fee Schedule, 58072-58074 [2011-23975]
Download as PDF
58072
Federal Register / Vol. 76, No. 181 / Monday, September 19, 2011 / Notices
B. Self-Regulatory Organization’s
Statement on Burden on Competition
CME does not believe that the
proposed rule change will have any
impact, or impose any burden, on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
CME has not solicited, and does not
intend to solicit, comments regarding
this proposed rule change. CME has not
received any unsolicited written
comments from interested parties.
mstockstill on DSK4VPTVN1PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change was filed
pursuant to Section 19(b)(3)(A) of the
Act and paragraph (f)(4)(i) of Rule 19b–
4 and became effective on filing. At any
time within sixty days of the filing of
such 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.
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 may be
submitted by using the Commission’s
Internet comment form (https://
www.sec.gov/rules/sro.shtml), or send
an e-mail to rule-comments@sec.gov.
Please include File No. SR–CME–2011–
06 on the subject line.
• Paper comments should be sent 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–CME–2011–06. This file
number should be included on the
subject line if e-mail 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
VerDate Mar<15>2010
15:46 Sep 16, 2011
Jkt 223001
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. Copies of such
filing also will be available for
inspection and copying at the principal
office of CME. 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–CME–2011–06 and should
be submitted on or before October 11,
2011.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.5
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–23866 Filed 9–16–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65337; File No. SR–BX–
2011–064]
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Amend the
BOX Fee Schedule
September 14, 2011.
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
September 1, 2011, NASDAQ OMX BX,
Inc. (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 self-regulatory
organization. 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
5 17
CFR 200.30–3(a)(12).
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).
1 15
PO 00000
Frm 00126
Fmt 4703
Sfmt 4703
solicit comments on the proposed rule
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASDAQ OMX BX, Inc. (the
‘‘Exchange’’) proposes to amend the Fee
Schedule of the Boston Options
Exchange Group, LLC (‘‘BOX’’). The
changes to the BOX Fee Schedule
pursuant to this proposal will be
effective upon filing and operative on
September 1, 2011. The text of the
proposed changes is attached as Exhibit
5. 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://
nasdaqomxbx.cchwallstreet.com/
NASDAQOMXBX/Filings/.
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 implement
a routing fee structure that provides a
discount to BOX Options Participants
(‘‘Participants’’) that execute
transactions on BOX.
Public Customer Orders on BOX
which are not executable against the
BOX Book are routed to an away
exchange for execution. Currently, BOX
does not assess any fee to Participants
for doing so. The Exchange, however,
believes that exempting all outbound
customer orders from routing fees will
result in some Participants sending a
substantial and increasing amount of
non-executable orders to BOX so as to
evade fees on other exchanges. In order
to curtail this abusive use of BOX
routing, the Exchange proposes to
impose a routing fee structure that
provides a volume discount to
Participants that execute transactions on
BOX. The proposed change will have no
E:\FR\FM\19SEN1.SGM
19SEN1
Federal Register / Vol. 76, No. 181 / Monday, September 19, 2011 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
effect on the billing of orders of nonParticipants, including any orders
routed to BOX from away exchanges.
The Exchange proposes to continue to
route up to 200,000 contracts per month
of Participant customer orders to an
away exchange without imposing any
fee. For each contract thereafter, BOX
will assess a fee based on each
Participant’s total monthly volume of
contracts executed on BOX. Participants
that execute less than 300,000 contracts
on BOX per month will pay a routing
fee of $0.50 per contract. BOX
Participants that execute 300,000 or
more contracts on BOX per month will
pay a routing fee of $0.01 per contract.
Instructing BOX to route orders away
if they are non-executable on BOX is
voluntary for BOX Participants.
Participants may choose not to route
their customer orders to another
exchange. Participants may also avoid
paying the proposed routing fee by
choosing to designate their orders as Fill
and Kill (‘‘FAK’’). FAK orders are not
eligible for routing to away exchanges.
FAK orders are executed on BOX, if
possible, and then cancelled. Imposing
a routing fee structure that provides a
volume discount to Participants for
trading on BOX will allow BOX to
recoup a portion of its costs incurred in
providing routing services and provide
an incentive to Participants to trade on
BOX to benefit from the potential
discount on routing fees.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,5
in general, and Section 6(b)(4) of the
Act,6 in particular, in that it provides for
the equitable allocation of reasonable
dues, fees, and other charges among its
members and other persons using its
facilities. The Exchange believes the
changes proposed are an equitable
allocation of reasonable fees and charges
among BOX Options Participants.
The Exchange believes that assessing
a fee to Participants for routing orders
to other market venues is reasonable,
equitable, and non-discriminatory in
that the fee will allow BOX to recoup a
portion of its transactions costs
attendant with offering routing services.
BOX uses third-party broker-dealers to
route orders to other exchanges and
incurs charges for each order routed to
an away market, in addition to the fees
charged by other exchanges. BOX has
been providing its routing services to
Participants at no cost and has been able
to cover such costs with revenue
5 15
U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4).
VerDate Mar<15>2010
15:46 Sep 16, 2011
Jkt 223001
generated from transactions on BOX. In
order to better recover costs for routing
orders, the Exchange is proposing a
routing fee structure to provide a
discounted fee for Participants that
trade a certain amount of volume on
BOX.
The Exchange believes the proposed
volume discount being provided to
Participants that execute orders on BOX
is equitable and not unfairly
discriminatory because they are open to
all Participants on an equal basis. The
Exchange believes it is equitable to
provide Participants that trade on BOX
a discount on fees for routing customer
orders that may not be executed on BOX
because transactions executed on BOX
increase BOX market activity and
market quality. Greater liquidity and
additional volume executed on BOX
aids the price and volume discovery
process. The Exchange believes it is
reasonable and equitable to provide
incentives to Participants to trade on
BOX. Participant trading on BOX also
results in revenue that BOX is able to
use to provide routing services at a
discounted cost to Participants.
Accordingly, the Exchange believes that
the proposal is not unfairly
discriminatory because it promotes
enhancing BOX market quality. The
changes proposed by this filing are
intended to provide an incentive to BOX
Participants to submit orders for
execution on BOX and not engage in
abusive and predatory practices to
evade fees on other exchanges.
Finally, the Exchange notes that
although routing is available to BOX
Participants for customer orders,
Participants are not required to use the
routing services, but instead, BOX
routing services are completely
optional. As discussed above, BOX
Participants can manage their own
routing to different options exchanges or
can utilize a myriad of other routing
solutions that are available to market
participants.
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.
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.
PO 00000
Frm 00127
Fmt 4703
Sfmt 4703
58073
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 7 and
Rule 19b–4(f)(2) thereunder,8 because it
establishes or changes a due, fee, or
other charge applicable only to a
member.
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.
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 e-mail to rulecomments@sec.gov. Please include File
Number SR–BX–2011–064 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–BX–2011–064. This file
number should be included on the
subject line if e-mail 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
7 15
8 17
E:\FR\FM\19SEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
19SEN1
58074
Federal Register / Vol. 76, No. 181 / Monday, September 19, 2011 / Notices
printing in the Commission’s Public
Reference Room, 100 F Street, NW.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. The text of the proposed
rule change is available on the
Commission’s Web site at https://
www.sec.gov. 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–BX–
2011–064 and should be submitted on
or before October 11, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–23975 Filed 9–16–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65224; File No. SR–CBOE–
2011–081]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the
Compliance Deadline for Qualification
Pursuant to Rule 3.6A
August 30, 2011.
Correction
In notice document 2011–22774
appearing on pages 55447–55449 in the
issue of September 7, 2011, make the
following correction:
On page 55447, in the first column,
the Release No. and File No., which
were inadvertently omitted from the
document heading, are added to read as
set forth above.
[FR Doc. C1–2011–22774 Filed 9–16–11; 8:45 am]
mstockstill on DSK4VPTVN1PROD with NOTICES
BILLING CODE 1505–01–P
9 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
15:46 Sep 16, 2011
Jkt 223001
[Public Notice: 7588]
30-Day Notice of Proposed Information
Collection: DS–7001 and DS–7005,
DOS-Sponsored Academic Exchange
Program Application, OMB Control
Number 1405–0138
Notice of request for public
comment and submission to OMB of
proposed collection of information.
ACTION:
The Department of State has
submitted the following information
collection request to the Office of
Management and Budget (OMB) for
approval in accordance with the
Paperwork Reduction Act of 1995.
• Title of Information Collection:
DOS-Sponsored Academic Exchange
Program Application.
• OMB Control Number: 1405–0138.
• Type of Request: Extension of a
Currently Approved Collection.
• Originating Office: Bureau of
Educational and Cultural Affairs, ECA/
A/E/EUR.
• Form Number: DS–7001, DS–7005.
• Respondents: Applicants for the
Academic Exchange Program.
• Estimated Number of Respondents:
7160 (For DS–7001, 3842 estimated; for
DS–7005, 3318 estimated).
• Estimated Number of Responses:
7160 (For DS–7001, 3842 estimated; for
DS–7005, 3318 estimated).
• Average Hours per Response: 0.75.
• Total Estimated Burden: 5370
hours.
• Frequency: Annually.
Obligation to Respond: Voluntary.
DATES: Submit comments to the Office
of Management and Budget (OMB) for
up to 30 days from September 19, 2011.
ADDRESSES: Direct comments to the
Department of State Desk Officer in the
Office of Information and Regulatory
Affairs at the Office of Management and
Budget (OMB). You may submit
comments by the following methods:
• E-mail:
oira_submission@omb.eop.gov. You
must include the DS form number,
information collection title, and OMB
control number in the subject line of
your message.
• Fax: 202–395–5806. Attention: Desk
Officer for Department of State.
FOR FURTHER INFORMATION CONTACT: You
may obtain copies of the proposed
information collection and supporting
documents from Micaela S. Iovine, U.S.
Department of State, Bureau of
Educational and Cultural Affairs, Floor
4, 2200 C St., NW., Washington, DC
20522–0504, who may be reached on
202–632–3256 or at iovinems@state.gov.
SUMMARY:
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
We are
soliciting public comments to permit
the Department to:
• Evaluate whether the proposed
information collection is necessary to
properly perform our functions.
• Evaluate the accuracy of our
estimate of the burden of the proposed
collection, including the validity of the
methodology and assumptions used.
• Enhance the quality, utility, and
clarity of the information to be
collected.
• Minimize the reporting burden on
those who are to respond.
SUPPLEMENTARY INFORMATION:
DEPARTMENT OF STATE
Abstract of Proposed Collection
The Department of State collects this
information to identify qualified
candidates from Eurasia and South
Central Asia for exchange activities
sponsored by the Office of Academic
Exchange Programs.
Methodology
Applications are delivered physically
to the foreign country offices of the
grantee organization, submitted
electronically, or through the mail.
Additional Information: None.
Dated: September 1, 2011.
Marianne Craven,
Acting Deputy Assistant Secretary, Bureau
of Educational and Cultural Affairs,
Department of State.
[FR Doc. 2011–23888 Filed 9–16–11; 8:45 am]
BILLING CODE 4710–05–P
DEPARTMENT OF STATE
[Public Notice: 7590]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘Sanja
´
Ivekovic: Sweet Violence’’
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), Executive Order 12047 of March
27, 1978, the Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, and Delegation of
Authority No. 236–3 of August 28, 2000
(and, as appropriate, Delegation of
Authority No. 257 of April 15, 2003), I
hereby determine that the objects to be
included in the exhibition ‘‘Sanja
´
Ivekovic: Sweet Violence,’’ imported
from abroad for temporary exhibition
within the United States, are of cultural
significance. The objects are imported
pursuant to loan agreements with the
foreign owners or custodians. I also
determine that the exhibition or display
of the exhibit objects at the Museum of
SUMMARY:
E:\FR\FM\19SEN1.SGM
19SEN1
Agencies
[Federal Register Volume 76, Number 181 (Monday, September 19, 2011)]
[Notices]
[Pages 58072-58074]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-23975]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65337; File No. SR-BX-2011-064]
Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
BOX Fee Schedule
September 14, 2011.
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 September 1, 2011, NASDAQ OMX BX, Inc. (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 self-regulatory organization. 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 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NASDAQ OMX BX, Inc. (the ``Exchange'') proposes to amend the Fee
Schedule of the Boston Options Exchange Group, LLC (``BOX''). The
changes to the BOX Fee Schedule pursuant to this proposal will be
effective upon filing and operative on September 1, 2011. The text of
the proposed changes is attached as Exhibit 5. 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://nasdaqomxbx.cchwallstreet.com/NASDAQOMXBX/Filings/.
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 implement a routing fee structure that
provides a discount to BOX Options Participants (``Participants'') that
execute transactions on BOX.
Public Customer Orders on BOX which are not executable against the
BOX Book are routed to an away exchange for execution. Currently, BOX
does not assess any fee to Participants for doing so. The Exchange,
however, believes that exempting all outbound customer orders from
routing fees will result in some Participants sending a substantial and
increasing amount of non-executable orders to BOX so as to evade fees
on other exchanges. In order to curtail this abusive use of BOX
routing, the Exchange proposes to impose a routing fee structure that
provides a volume discount to Participants that execute transactions on
BOX. The proposed change will have no
[[Page 58073]]
effect on the billing of orders of non-Participants, including any
orders routed to BOX from away exchanges.
The Exchange proposes to continue to route up to 200,000 contracts
per month of Participant customer orders to an away exchange without
imposing any fee. For each contract thereafter, BOX will assess a fee
based on each Participant's total monthly volume of contracts executed
on BOX. Participants that execute less than 300,000 contracts on BOX
per month will pay a routing fee of $0.50 per contract. BOX
Participants that execute 300,000 or more contracts on BOX per month
will pay a routing fee of $0.01 per contract.
Instructing BOX to route orders away if they are non-executable on
BOX is voluntary for BOX Participants. Participants may choose not to
route their customer orders to another exchange. Participants may also
avoid paying the proposed routing fee by choosing to designate their
orders as Fill and Kill (``FAK''). FAK orders are not eligible for
routing to away exchanges. FAK orders are executed on BOX, if possible,
and then cancelled. Imposing a routing fee structure that provides a
volume discount to Participants for trading on BOX will allow BOX to
recoup a portion of its costs incurred in providing routing services
and provide an incentive to Participants to trade on BOX to benefit
from the potential discount on routing fees.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\5\ in general, and Section
6(b)(4) of the Act,\6\ in particular, in that it provides for the
equitable allocation of reasonable dues, fees, and other charges among
its members and other persons using its facilities. The Exchange
believes the changes proposed are an equitable allocation of reasonable
fees and charges among BOX Options Participants.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that assessing a fee to Participants for
routing orders to other market venues is reasonable, equitable, and
non-discriminatory in that the fee will allow BOX to recoup a portion
of its transactions costs attendant with offering routing services. BOX
uses third-party broker-dealers to route orders to other exchanges and
incurs charges for each order routed to an away market, in addition to
the fees charged by other exchanges. BOX has been providing its routing
services to Participants at no cost and has been able to cover such
costs with revenue generated from transactions on BOX. In order to
better recover costs for routing orders, the Exchange is proposing a
routing fee structure to provide a discounted fee for Participants that
trade a certain amount of volume on BOX.
The Exchange believes the proposed volume discount being provided
to Participants that execute orders on BOX is equitable and not
unfairly discriminatory because they are open to all Participants on an
equal basis. The Exchange believes it is equitable to provide
Participants that trade on BOX a discount on fees for routing customer
orders that may not be executed on BOX because transactions executed on
BOX increase BOX market activity and market quality. Greater liquidity
and additional volume executed on BOX aids the price and volume
discovery process. The Exchange believes it is reasonable and equitable
to provide incentives to Participants to trade on BOX. Participant
trading on BOX also results in revenue that BOX is able to use to
provide routing services at a discounted cost to Participants.
Accordingly, the Exchange believes that the proposal is not unfairly
discriminatory because it promotes enhancing BOX market quality. The
changes proposed by this filing are intended to provide an incentive to
BOX Participants to submit orders for execution on BOX and not engage
in abusive and predatory practices to evade fees on other exchanges.
Finally, the Exchange notes that although routing is available to
BOX Participants for customer orders, Participants are not required to
use the routing services, but instead, BOX routing services are
completely optional. As discussed above, BOX Participants can manage
their own routing to different options exchanges or can utilize a
myriad of other routing solutions that are available to market
participants.
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.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act \7\ and Rule 19b-4(f)(2)
thereunder,\8\ because it establishes or changes a due, fee, or other
charge applicable only to a member.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 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.
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 e-mail to rule-comments@sec.gov. Please include
File Number SR-BX-2011-064 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-BX-2011-064. This file
number should be included on the subject line if e-mail 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
[[Page 58074]]
printing in the Commission's Public Reference Room, 100 F Street, NW.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. The text of the proposed rule change is available on
the Commission's Web site at https://www.sec.gov. 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-BX-2011-064 and should be submitted on or before October 11, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-23975 Filed 9-16-11; 8:45 am]
BILLING CODE 8011-01-P