Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposal To Extend a Pilot Program That Permits BOX to Have No Minimum Size Requirement for Orders Entered Into the Price Improvement Period, 39315-39317 [2012-16088]
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Federal Register / Vol. 77, No. 127 / Monday, July 2, 2012 / Notices
proposed rule change was published for
comment in the Federal Register on
May 17, 2012.3 The Commission
received no comments on the proposal.
Section 19(b)(2) of the Act 4 provides
that, within 45 days of the publication
of notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day for this filing
is July 1, 2012. The Commission is
extending this 45-day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposal.
The Benchmark Order would allow
NASDAQ members to enter a single
order in a single security that seeks to
match the performance of one of three
selected benchmarks—Volume
Weighted Average Price, Time Weighted
Average Price and Percent of Volume—
over a pre-determined period of time.
Benchmark Orders would not be
executed by the NASDAQ matching
engine, but would be directed to a
system application dedicated to
processing Benchmark Orders
(‘‘Application’’). The Application would
generate Child Orders to be sent to the
NASDAQ matching engine or to the
NASDAQ router, as necessary, to
achieve the desired benchmark selected
by the entering firm.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,5
designates August 15, 2012, as the date
by which the Commission should either
approve or disapprove or institute
proceedings to determine whether to
disapprove the proposed rule change.
mstockstill on DSK4VPTVN1PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–16089 Filed 6–29–12; 8:45 am]
BILLING CODE 8011–01–P
3 See
Securities Exchange Act Release No. 66972
(May 11, 2012), 77 FR 29435 (May 17, 2012)
(‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
5 15 U.S.C. 78s(b)(2).
6 17 CFR 200.30–3(a)(31).
VerDate Mar<15>2010
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Jkt 226001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67255; File No. SR–BOX–
2012–009)]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposal To Extend a Pilot Program
That Permits BOX to Have No Minimum
Size Requirement for Orders Entered
Into the Price Improvement Period
June 26, 2012.
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 June 25,
2012, BOX Options Exchange LLC (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
constituting a non-controversial rule
change under Rule 19b–4(f)(6) under the
Act,3 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
proposes to amend Interpretive Material
to Rule 7150 (Price Improvement Period
‘‘PIP’’) to extend a pilot program that
permits the Exchange to have no
minimum size requirement for orders
entered into the PIP (‘‘PIP Pilot
Program’’). The text of the proposed rule
change is available from the principal
office of the Exchange, on the
Exchange’s Web site at https://
boxexchange.com, at the Commission’s
Public Reference Room, and on the
Commission’s Web site at https://
www.sec.gov.
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
2 17
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39315
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 purpose of the proposed rule
change is to extend the PIP Pilot
Program for twelve additional months.
The PIP Pilot Program allows the
Exchange to have no minimum size
requirement for orders entered into the
PIP.4 The Exchange has committed to
provide certain data to the Commission
during the PIP Pilot Program.5 The
proposed rule change retains the text of
IM–7150–1 to Rule 7150 and seeks to
extend the operation of the PIP Pilot
Program until July 18, 2013.
The Exchange notes that the PIP Pilot
Program guarantees Participants the
right to trade with their customer orders
that are less than 50 contracts. In
particular, any order entered into the
PIP is guaranteed an execution at the
end of the auction at a price at least
equal to the national best bid or offer.
In further support of this proposed rule
change, the Exchange will submit to the
Commission monthly a PIP Pilot
Program Report, offering detailed data
from, and analysis of, the PIP Pilot
Program.
To aid the Commission in its
evaluation of the PIP Pilot Program, the
Exchange provides the following
additional information each month: (1)
The number of orders of 50 contracts or
greater entered into the PIP auction; (2)
The percentage of all orders of 50
contracts or greater sent to the Exchange
that are entered into the PIP auction; (3)
The spread in the option, at the time an
order of 50 contracts or greater is
submitted to the PIP auction; (4) The
percentage of PIP trades executed at the
National Best Bid or Offer (‘‘NBBO’’)
plus $.01, plus $.02, plus $.03, etc.; and
(5) The number of orders submitted by
Order Flow Providers (‘‘OFPs’’) when
the spread was at a particular increment
(e.g., $.05, $.10, $.15, etc.). Also, relative
to item 5 above, for each spread, BOX
provides the percentage of contracts in
orders of fewer than 50 contracts
submitted to the PIP that were traded
4 The Pilot Program is currently set to expire on
July 18, 2012. See Securities Exchange Act Release
No. 66871 (April 27, 2012) 77 FR 26323 (May 3,
2012) (File No.10–206, In the Matter of the
Application of BOX Options Exchange LLC for
Registration as a National Securities Exchange
Findings, Opinion, and Order of the Commission).
5 Id. at 26334.
E:\FR\FM\02JYN1.SGM
02JYN1
mstockstill on DSK4VPTVN1PROD with NOTICES
39316
Federal Register / Vol. 77, No. 127 / Monday, July 2, 2012 / Notices
by: (a) The OFP that submitted the order
to the PIP; (b) BOX Market Makers
assigned to the class; (c) other BOX
Participants; (d) Public Customer Orders
(including Customer PIP Orders
(‘‘CPOs’’)); and (e) unrelated orders
(orders in standard increments entered
during the PIP). Additionally, for each
spread, BOX provides the percentage of
contracts in orders of 50 contracts or
greater submitted to the PIP that were
traded by: (a) The OFP that submitted
the order to the PIP; (b) BOX Market
Makers assigned to the class; (c) other
BOX Participants; (d) Public Customer
Orders (including Customer PIP Orders
(‘‘CPOs’’)); and (e) unrelated orders.
Further, BOX provides, for the first and
third Wednesday of each month, the: (a)
Total number of PIP auctions on that
date; (b) number of PIP auctions where
the order submitted to the PIP was fewer
than 50 contracts; (c) number of PIP
auctions where the order submitted to
the PIP was 50 contracts or greater; (d)
number of PIP auctions where the
number of Participants (excluding the
Initiating Participant) was zero, one,
two, three, four, etc. Finally, during the
PIP Pilot, BOX provides information
each month with respect to situations in
which the PIP is terminated prematurely
or a Market Order, Limit Order, or BOX–
Top Order immediately execute with a
PIP Order before the PIP’s conclusion.
The following information is provided:
(1) The number of times that a Market
Order, Limit Order, or BOX–Top Order
in the same series on the same side of
the market as the PIP Order prematurely
terminated the PIP, and (a) the number
of times such orders were entered by the
same (or affiliated) firm that initiated
the PIP that was terminated, and (b) the
number of times such orders were
entered by a firm (or an affiliate of such
firm) that participated in the execution
of the PIP Order; (2) For the orders
addressed in each of 1(a) and 1(b) above,
the percentage of PIP premature
terminations due to the receipt, during
the PIP, of a Market Order, Limit Order,
or BOX–Top Order in the same series on
the same side of the market as the PIP
Order; and the average amount of price
improvement provided to the PIP Order
where the PIP is prematurely
terminated; (3) The number of times that
a Market Order, Limit Order, or BOX–
Top Order in the same series on the
opposite side of the market as the PIP
Order immediately executed against the
PIP Order, and (a) the number of times
such orders were entered by the same
(or affiliated) firm that initiated the PIP,
and (b) the number of times such orders
were entered by a firm (or an affiliate of
such firm) that participated in the
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17:22 Jun 29, 2012
Jkt 226001
execution of the PIP Order; (4) For the
orders addressed in each of 3(a) and 3(b)
above, the percentage of PIP early
executions due to the receipt, during the
PIP, of a Market Order, Limit Order, or
BOX–Top Order in the same series on
the opposite side of the market as the
PIP Order; and the average amount of
price improvement provided to the PIP
Order where the PIP Order is
immediately executed; and (5) The
average amount of price improvement
provided to the PIP Order when the PIP
runs for one hundred milliseconds.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,6
in general, and Section 6(b)(5) of the
Act,7 in particular, in that it is designed
to foster cooperation and coordination
with persons engaged in regulating,
clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism for a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The Exchange believes
that the data demonstrates that there is
sufficient investor interest and demand
to extend the PIP Pilot Program for an
additional twelve months. The
Exchange represents that the Pilot
Program is designed to provide
investors with real and significant price
improvement regardless of the size of
the order.
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
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and Rule
19b–4(f)(6) thereunder.9 Because the
proposed rule change does not: (i)
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 15 U.S.C. 78s(b)(3)(A)(iii).
9 17 CFR 240.19b–4(f)(6).
7 15
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 10 and Rule 19b–4(f)(6)(iii)
thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative for 30 days after the
date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii) 13 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange requested that the
Commission waive the 30-day operative
delay. The Exchange noted that such
waiver will permit the PIP Pilot Program
to continue without interruption.
The Commission believes that
waiving operative delay as of July 18,
2012 is consistent with the protection of
investors and the public interest, as it
will allow the pilot program to continue
uninterrupted, thereby avoiding any
potential investor confusion that could
result from a temporary interruption in
the pilot program. Further, the
Commission notes that, because the
filing was submitted for immediate
effectiveness on June 25, 2012 the fact
that the current rule provision does not
expire until July 18, 2012 will afford
interested parties the opportunity to
comment on the proposal before the
Exchange requires it to become
operative. For this reason, the
Commission designates the proposed
rule change to be operative on July 18,
2012.14
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
10 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and 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. The Exchange
has satisfied this requirement.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 For purposes only of waiving the operative
delay, the Commission has considered the proposed
rule’s impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
11 17
E:\FR\FM\02JYN1.SGM
02JYN1
Federal Register / Vol. 77, No. 127 / Monday, July 2, 2012 / Notices
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
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
No. SR–BOX–2012–009 on the subject
line.
Paper Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
• 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 No.
SR–BOX–2012–009. 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
a.m. and 3 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 No. SR–BOX–2012–
009 and should be submitted on or
before July 23, 2012.
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17:22 Jun 29, 2012
Jkt 226001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–16088 Filed 6–29–12; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 7939]
30-Day Notice of Proposed Information
Collection, DS–5520, Supplemental
Questionnaire to Determine Identity for
a U.S. Passport, 1405–XXXX
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:
Supplemental Questionnaire to
Determine Identity for a U.S. Passport.
• OMB Control Number: None.
• Type of Request: Existing Collection
in Use Without an OMB Control
Number.
• Originating Office: Bureau of
Consular Affairs, Passport Services,
Office of Project Management and
Operational Support, Program
Coordination (CA/PPT/PMO/PC).
• Form Number: DS–5520.
• Respondents: Individuals applying
for a U.S. passport.
• Estimated Number of Respondents:
69,011.
• Estimated Number of Responses:
69,011.
• Average Hours per Response: 45
Minutes.
• Total Estimated Burden: 51,758
hours.
• Frequency: On occasion.
• Obligation to Respond: Required to
Obtain a Benefit.
DATES: Submit comments to the Office
of Management and Budget (OMB) for
up to 30 days from July 2, 2012.
ADDRESSES: U.S. Department of State,
Bureau of Consular Affairs, Passport
Services, Office of Program Management
and Operational Support, 2201 C Street
NW., Washington, DC 20037.
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:
SUMMARY:
15 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00110
Fmt 4703
Sfmt 4703
39317
• Email: 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 PPT Forms Officer,
U.S. Department of State, 2100
Pennsylvania Ave. NW., Room 3031,
Washington, DC 20037, who may be
reached on 202–663–2457 or at
PPTFormsOfficer@state.gov.
SUPPLEMENTARY INFORMATION: 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.
Abstract of Proposed Collection
The primary purpose for soliciting
this information is to validate an
identity claim for a U.S. Passport Book
or Passport Card in the narrow category
of cases in which the evidence
presented by an applicant is insufficient
to establish identity. The information
may also be used in adjudicating
applications for other travel documents
and services, and in connection with
law enforcement, fraud prevention,
border security, counterterrorism,
litigation activities, and administrative
purposes.
Methodology
The Supplemental Questionnaire to
Determine Identity for a U.S. Passport is
intended to verify the respondent’s
identity for purposes of determining
eligibility for a U.S. passport. This form
is used to supplement an existing
passport application and solicits
information relating to the respondent’s
employment and residences that is
needed to corroborate an applicant’s
identity claim prior to passport
issuance.
Additional Information
The DS–5520 is questionnaire is
designed to help determine the identity
of passport applicants. The DS–5520 is
not designed to replace the DS–11,
Application for a U.S. Passport, but
rather to supplement the application
E:\FR\FM\02JYN1.SGM
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]]>Agencies
[Federal Register Volume 77, Number 127 (Monday, July 2, 2012)]
[Notices]
[Pages 39315-39317]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16088]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67255; File No. SR-BOX-2012-009)]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposal To Extend a Pilot
Program That Permits BOX to Have No Minimum Size Requirement for Orders
Entered Into the Price Improvement Period
June 26, 2012.
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 June 25, 2012, BOX Options Exchange LLC (the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange has
designated the proposed rule change as constituting a non-controversial
rule change under Rule 19b-4(f)(6) under the Act,\3\ 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\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend proposes to amend Interpretive
Material to Rule 7150 (Price Improvement Period ``PIP'') to extend a
pilot program that permits the Exchange to have no minimum size
requirement for orders entered into the PIP (``PIP Pilot Program'').
The text of the proposed rule change is available from the principal
office of the Exchange, on the Exchange's Web site at https://boxexchange.com, at the Commission's Public Reference Room, and on the
Commission's Web site at https://www.sec.gov.
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 purpose of the proposed rule change is to extend the PIP Pilot
Program for twelve additional months. The PIP Pilot Program allows the
Exchange to have no minimum size requirement for orders entered into
the PIP.\4\ The Exchange has committed to provide certain data to the
Commission during the PIP Pilot Program.\5\ The proposed rule change
retains the text of IM-7150-1 to Rule 7150 and seeks to extend the
operation of the PIP Pilot Program until July 18, 2013.
---------------------------------------------------------------------------
\4\ The Pilot Program is currently set to expire on July 18,
2012. See Securities Exchange Act Release No. 66871 (April 27, 2012)
77 FR 26323 (May 3, 2012) (File No.10-206, In the Matter of the
Application of BOX Options Exchange LLC for Registration as a
National Securities Exchange Findings, Opinion, and Order of the
Commission).
\5\ Id. at 26334.
---------------------------------------------------------------------------
The Exchange notes that the PIP Pilot Program guarantees
Participants the right to trade with their customer orders that are
less than 50 contracts. In particular, any order entered into the PIP
is guaranteed an execution at the end of the auction at a price at
least equal to the national best bid or offer. In further support of
this proposed rule change, the Exchange will submit to the Commission
monthly a PIP Pilot Program Report, offering detailed data from, and
analysis of, the PIP Pilot Program.
To aid the Commission in its evaluation of the PIP Pilot Program,
the Exchange provides the following additional information each month:
(1) The number of orders of 50 contracts or greater entered into the
PIP auction; (2) The percentage of all orders of 50 contracts or
greater sent to the Exchange that are entered into the PIP auction; (3)
The spread in the option, at the time an order of 50 contracts or
greater is submitted to the PIP auction; (4) The percentage of PIP
trades executed at the National Best Bid or Offer (``NBBO'') plus $.01,
plus $.02, plus $.03, etc.; and (5) The number of orders submitted by
Order Flow Providers (``OFPs'') when the spread was at a particular
increment (e.g., $.05, $.10, $.15, etc.). Also, relative to item 5
above, for each spread, BOX provides the percentage of contracts in
orders of fewer than 50 contracts submitted to the PIP that were traded
[[Page 39316]]
by: (a) The OFP that submitted the order to the PIP; (b) BOX Market
Makers assigned to the class; (c) other BOX Participants; (d) Public
Customer Orders (including Customer PIP Orders (``CPOs'')); and (e)
unrelated orders (orders in standard increments entered during the
PIP). Additionally, for each spread, BOX provides the percentage of
contracts in orders of 50 contracts or greater submitted to the PIP
that were traded by: (a) The OFP that submitted the order to the PIP;
(b) BOX Market Makers assigned to the class; (c) other BOX
Participants; (d) Public Customer Orders (including Customer PIP Orders
(``CPOs'')); and (e) unrelated orders. Further, BOX provides, for the
first and third Wednesday of each month, the: (a) Total number of PIP
auctions on that date; (b) number of PIP auctions where the order
submitted to the PIP was fewer than 50 contracts; (c) number of PIP
auctions where the order submitted to the PIP was 50 contracts or
greater; (d) number of PIP auctions where the number of Participants
(excluding the Initiating Participant) was zero, one, two, three, four,
etc. Finally, during the PIP Pilot, BOX provides information each month
with respect to situations in which the PIP is terminated prematurely
or a Market Order, Limit Order, or BOX-Top Order immediately execute
with a PIP Order before the PIP's conclusion. The following information
is provided: (1) The number of times that a Market Order, Limit Order,
or BOX-Top Order in the same series on the same side of the market as
the PIP Order prematurely terminated the PIP, and (a) the number of
times such orders were entered by the same (or affiliated) firm that
initiated the PIP that was terminated, and (b) the number of times such
orders were entered by a firm (or an affiliate of such firm) that
participated in the execution of the PIP Order; (2) For the orders
addressed in each of 1(a) and 1(b) above, the percentage of PIP
premature terminations due to the receipt, during the PIP, of a Market
Order, Limit Order, or BOX-Top Order in the same series on the same
side of the market as the PIP Order; and the average amount of price
improvement provided to the PIP Order where the PIP is prematurely
terminated; (3) The number of times that a Market Order, Limit Order,
or BOX-Top Order in the same series on the opposite side of the market
as the PIP Order immediately executed against the PIP Order, and (a)
the number of times such orders were entered by the same (or
affiliated) firm that initiated the PIP, and (b) the number of times
such orders were entered by a firm (or an affiliate of such firm) that
participated in the execution of the PIP Order; (4) For the orders
addressed in each of 3(a) and 3(b) above, the percentage of PIP early
executions due to the receipt, during the PIP, of a Market Order, Limit
Order, or BOX-Top Order in the same series on the opposite side of the
market as the PIP Order; and the average amount of price improvement
provided to the PIP Order where the PIP Order is immediately executed;
and (5) The average amount of price improvement provided to the PIP
Order when the PIP runs for one hundred milliseconds.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\6\ in general, and Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism for a free and open market and a national market
system and, in general, to protect investors and the public interest.
The Exchange believes that the data demonstrates that there is
sufficient investor interest and demand to extend the PIP Pilot Program
for an additional twelve months. The Exchange represents that the Pilot
Program is designed to provide investors with real and significant
price improvement regardless of the size of the order.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(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.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-
4(f)(6)(iii) thereunder.\11\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires the Exchange to give the Commission written
notice of the Exchange's intent to file the proposed rule change
along with a brief description and 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. The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \13\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requested
that the Commission waive the 30-day operative delay. The Exchange
noted that such waiver will permit the PIP Pilot Program to continue
without interruption.
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
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The Commission believes that waiving operative delay as of July 18,
2012 is consistent with the protection of investors and the public
interest, as it will allow the pilot program to continue uninterrupted,
thereby avoiding any potential investor confusion that could result
from a temporary interruption in the pilot program. Further, the
Commission notes that, because the filing was submitted for immediate
effectiveness on June 25, 2012 the fact that the current rule provision
does not expire until July 18, 2012 will afford interested parties the
opportunity to comment on the proposal before the Exchange requires it
to become operative. For this reason, the Commission designates the
proposed rule change to be operative on July 18, 2012.\14\
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\14\ For purposes only of waiving the operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
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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
[[Page 39317]]
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
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 No. SR-BOX-2012-009 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 No. SR-BOX-2012-009. 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
a.m. and 3 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 No. SR-BOX-2012-009 and should be
submitted on or before July 23, 2012.
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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-16088 Filed 6-29-12; 8:45 am]
BILLING CODE 8011-01-P
