Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Rule 7110 Regarding Session Orders, 71647-71649 [2012-29074]
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Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices
a proposal that was recently approved
by the Commission, and does not raise
any new regulatory issues.22 For these
reasons, the Commission designates the
proposed rule change as operative upon
filing.
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.
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
Number SR–Phlx–2012–132 on the
subject line.
emcdonald on DSK67QTVN1PROD with NOTICES
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–Phlx–2012–132. 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
22 See Securities Exchange Act Release No. 68086
(October 23, 2012), 77 FR 65600 (October 29, 2012)
(SR–CBOE–2012–066).
VerDate Mar<15>2010
14:30 Nov 30, 2012
Jkt 229001
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2012–132 and should be submitted on
or before December 24, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.23
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–29073 Filed 11–30–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68294; File No. SR–BOX–
2012–019]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change to Rule 7110
Regarding Session Orders
November 27, 2012.
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 November
19, 2012, BOX Options Exchange LLC
(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 Commission is
publishing this notice to 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
The Exchange proposes to amend its
rules to amend Rule 7110 regarding
Session Orders. 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.
23 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
71647
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 purpose of this proposed rule
change is to amend Rule
7110(e)(1)(iii)(C) to add a provision
related to an exception to the manner in
which certain Session Orders are
handled when they have been routed to
an away exchange. Specifically, the
Exchange proposes to add a provision in
Rule 7110(e)(1)(iii)(C)(3) to provide that
any remaining quantity of a Session
Order that has been routed away, if a
Triggering Event occurs while the order
is routed away and receives a partial
execution, will be cancelled by BOX
upon the return of the remainder to
BOX from the away exchange.3
Exchange Rule 7110(e)(1)(iii) provides
that a Session Order will remain active
in the BOX trading system until a
‘‘Triggering Event’’ occurs that causes a
BOX Participant to lose its connection
to the BOX system, or causes BOX to be
unable to process the Session Order.4
The following are ‘‘Triggering Events’’:
(1) The connection between the
Participant and BOX that was used to
enter the order is interrupted; (2) there
is a disconnection between internal
BOX components used to process
orders, causing a component to lose its
connection to the Participant or the
Trading Host while in possession of the
Session Order; or (3) a component of the
3 Note that the Triggering Event does not need to
be ongoing at the time the remainder is returned to
BOX for it to be cancelled.
4 See Securities Exchange Act Release No. 62959
(September 21, 2010) 75 FR 59304 (September 27,
2010) (Notice of Filing and Immediate Effectiveness
To Provide an Additional Order Type Which Will
Give Options Participants Greater Control Over the
Circumstances in Which Their Orders Are
Executed) (BX–2010–065). See also BOX
Informational Circular IC–2010–005 (New Order
Duration Type—Session Order) available on the
BOX Web site here: https://boxexchange.com/
f_circulars/_BOX_Informational_Circular_2010005_Session_Order.pdf.
E:\FR\FM\03DEN1.SGM
03DEN1
71648
Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices
emcdonald on DSK67QTVN1PROD with NOTICES
Trading Host experiences a system error
in which it is unable to process open
orders while in possession of the
Session Order. Upon the occurrence of
a Triggering Event, Session Orders
within the affected BOX system are
cancelled.
Currently, Rule 7110(e)(1)(iii)(C)
provides certain exceptions to the
cancellation of Session Orders.
Specifically, the rule provides that a
Session Order will not be cancelled and
shall remain active in the BOX market
if the order is in one of the following
BOX system processes when a
Triggering Event occurs:
(1) The order is being exposed to the
BOX market pursuant to Rule 7130(b);
(2) The order is a Directed Order to
which the Executing Participant has not
yet responded pursuant to Rule
8040(d)(2);
(3) The order has been routed to an
away exchange pursuant to Rule 15030.
Exchange Rule 15030 provides that
certain orders that are specifically
designated by Options Participants as
eligible for routing will be routed to an
Away Exchange (‘‘Eligible Orders’’). If
BOX cannot execute or book an Eligible
Order, then it will route the Eligible
Order to an Away Exchange on behalf
of the Options Participant who
submitted the Eligible Order through a
third-party broker dealer. The full
quantity of an Eligible Order is routed
to one or more Away Exchange(s) as
Immediate or Cancel limit order(s)
priced at the current NBBO. If the
Eligible Order routed away is not
executed in its entirety at the Away
Exchange(s) and its limit price is
reached, then it is returned to BOX.
A technology system upgrade will
now allow BOX to cancel any remaining
quantity of a Session Order if a
Triggering Event occurs while the order
has been routed away, received a partial
execution, and is returned to BOX by
the away exchange. As such, the
Exchange is proposing to add a
provision to Rule 7110(e)(1)(iii)(C)(3).
Upon the effectiveness of this proposed
rule change, BOX will inform Options
Participants via Information Circular
about the implementation date of this
change in the manner in which certain
Session Orders are handled when they
have been routed to an away exchange.
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)(5) of the
Act,6 in particular, in that it is designed
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Mar<15>2010
14:30 Nov 30, 2012
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. In particular, the
Exchange believes that this proposed
rule change will benefit the marketplace
and protect investors because,
consistent with the purpose of Session
Orders, it will further reduce the risk of
erroneous or stale orders on BOX in the
event that an Options Participant loses
connectivity with the BOX system.
Furthermore, Session Orders are
intended to provide for the protection of
Options Participants and their
customers, who must bear the burden of
market risk for stale orders caused by
circumstances outside of their control.
The additional provision to the
exception to provide for when a
Triggering Event occurs while a Session
Order has been routed to an away
exchange, so that any remaining
quantity that might be returned to BOX
will be cancelled, is consistent with the
purpose of the Session Order, and
would further provide for the protection
of investors and the efficiency and
fairness of the market. As such, the
Exchange believes the proposed change
is consistent with the Act.
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
This proposed rule change is filed
pursuant to paragraph (A) of section
19(b)(3) of the Exchange Act 7 and Rule
19b–4(f)(6) thereunder.8 This proposed
rule change does not significantly affect
the protection of investors or the public
interest, does not impose any significant
burden on competition, and, by its
terms, does not become operative for 30
days after the date of the filing, or such
shorter time as the Commission may
designate if consistent with the
7 15
8 17
Jkt 229001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
Frm 00076
Fmt 4703
Sfmt 4703
protection of investors and the public
interest.9
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.
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
Number SR–BOX–2012–019 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–BOX–2012–019. 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
9 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.
E:\FR\FM\03DEN1.SGM
03DEN1
Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BOX–
2012–019 and should be submitted on
or before December 24, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–29074 Filed 11–30–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68300; File No. SR–ICC–
2012–21]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Correct One Term in
the ICC Rules
November 27, 2012.
emcdonald on DSK67QTVN1PROD with NOTICES
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 November
13, 2012, ICE Clear Credit LLC (‘‘ICC’’)
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 primarily by ICC.
ICC filed the proposal pursuant to
Section 19(b)(3)(A)(iii) of the Act,3 and
Rule 19b–4(f)(3) 4 thereunder, so that the
proposal was 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 purpose of the proposed rule
change is to change the word
‘‘customer’’ to ‘‘client’’ in the defined
term ‘‘Client Omnibus Margin Account’’
in one instance in Section 20–605(d) in
order to ensure consistency of defined
10 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)(iii).
4 17 CFR 240.19b–4(f)(3).
1 15
VerDate Mar<15>2010
14:30 Nov 30, 2012
terms throughout the ICE Clear Credit
Rules.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, ICC
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. ICC 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
ICC is updating one word in Section
20–605(d) of the Rules to change the
word ‘‘customer’’ to ‘‘client’’ in the
defined term ‘‘Client Omnibus Margin
Account.’’ ICC is making this correction
in order to ensure that the defined terms
in the ICC Rules are consistent. This
change does not require any changes to
the ICC risk management framework.
The only change submitted is the
correction of one defined term in ICC
Rule 20–605(d).
Section 17A(b)(3)(F) of the Act 5
requires, among other things, that the
rules of a clearing agency be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions and, to the extent
applicable, derivative agreements,
contracts, and transactions. ICC believes
that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to ICC, in
particular, to Section 17A(b)(3)(F),
because the correction of ‘‘customer’’ to
‘‘client’’ in the defined term ‘‘Client
Omnibus Margin Account’’ in ICC Rule
20–605(d) will facilitate the prompt and
accurate settlement of securities
transactions and contribute to the
safeguarding of securities and funds
associated with swap transactions
which are in the custody of control of
ICC or for which it is responsible. ICC
believes the proposed change will
alleviate any potential confusion with
defined terms in the ICC Rules.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
ICC does not believe the proposed
rule change would 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
Written comments relating to the
proposed rule changes have not been
solicited or received. ICC will notify the
Commission of any written comments
received by ICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A)(iii) 6 of the Act and Rule
19b–4(f)(3) 7 thereunder because it is
concerned solely with the
administration of the self-regulatory
organization. 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.8
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
Number SR–ICC–2012–21 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–ICC–2012–21. 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
6 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(3).
8 15 U.S.C. 78s(b)(3)(C).
7 17
5 15
Jkt 229001
PO 00000
U.S.C. 78q–1(b)(3)(F).
Frm 00077
Fmt 4703
Sfmt 4703
71649
E:\FR\FM\03DEN1.SGM
03DEN1
]]>Agencies
[Federal Register Volume 77, Number 232 (Monday, December 3, 2012)]
[Notices]
[Pages 71647-71649]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29074]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68294; File No. SR-BOX-2012-019]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change to Rule
7110 Regarding Session Orders
November 27, 2012.
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 November 19, 2012, BOX Options Exchange LLC (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
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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules to amend Rule 7110
regarding Session Orders. 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 purpose of this proposed rule change is to amend Rule
7110(e)(1)(iii)(C) to add a provision related to an exception to the
manner in which certain Session Orders are handled when they have been
routed to an away exchange. Specifically, the Exchange proposes to add
a provision in Rule 7110(e)(1)(iii)(C)(3) to provide that any remaining
quantity of a Session Order that has been routed away, if a Triggering
Event occurs while the order is routed away and receives a partial
execution, will be cancelled by BOX upon the return of the remainder to
BOX from the away exchange.\3\
---------------------------------------------------------------------------
\3\ Note that the Triggering Event does not need to be ongoing
at the time the remainder is returned to BOX for it to be cancelled.
---------------------------------------------------------------------------
Exchange Rule 7110(e)(1)(iii) provides that a Session Order will
remain active in the BOX trading system until a ``Triggering Event''
occurs that causes a BOX Participant to lose its connection to the BOX
system, or causes BOX to be unable to process the Session Order.\4\ The
following are ``Triggering Events'': (1) The connection between the
Participant and BOX that was used to enter the order is interrupted;
(2) there is a disconnection between internal BOX components used to
process orders, causing a component to lose its connection to the
Participant or the Trading Host while in possession of the Session
Order; or (3) a component of the
[[Page 71648]]
Trading Host experiences a system error in which it is unable to
process open orders while in possession of the Session Order. Upon the
occurrence of a Triggering Event, Session Orders within the affected
BOX system are cancelled.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 62959 (September 21,
2010) 75 FR 59304 (September 27, 2010) (Notice of Filing and
Immediate Effectiveness To Provide an Additional Order Type Which
Will Give Options Participants Greater Control Over the
Circumstances in Which Their Orders Are Executed) (BX-2010-065). See
also BOX Informational Circular IC-2010-005 (New Order Duration
Type--Session Order) available on the BOX Web site here: https://boxexchange.com/f_circulars/_BOX_Informational_Circular_2010-005_Session_Order.pdf.
---------------------------------------------------------------------------
Currently, Rule 7110(e)(1)(iii)(C) provides certain exceptions to
the cancellation of Session Orders. Specifically, the rule provides
that a Session Order will not be cancelled and shall remain active in
the BOX market if the order is in one of the following BOX system
processes when a Triggering Event occurs:
(1) The order is being exposed to the BOX market pursuant to Rule
7130(b);
(2) The order is a Directed Order to which the Executing
Participant has not yet responded pursuant to Rule 8040(d)(2);
(3) The order has been routed to an away exchange pursuant to Rule
15030.
Exchange Rule 15030 provides that certain orders that are
specifically designated by Options Participants as eligible for routing
will be routed to an Away Exchange (``Eligible Orders''). If BOX cannot
execute or book an Eligible Order, then it will route the Eligible
Order to an Away Exchange on behalf of the Options Participant who
submitted the Eligible Order through a third-party broker dealer. The
full quantity of an Eligible Order is routed to one or more Away
Exchange(s) as Immediate or Cancel limit order(s) priced at the current
NBBO. If the Eligible Order routed away is not executed in its entirety
at the Away Exchange(s) and its limit price is reached, then it is
returned to BOX.
A technology system upgrade will now allow BOX to cancel any
remaining quantity of a Session Order if a Triggering Event occurs
while the order has been routed away, received a partial execution, and
is returned to BOX by the away exchange. As such, the Exchange is
proposing to add a provision to Rule 7110(e)(1)(iii)(C)(3). Upon the
effectiveness of this proposed rule change, BOX will inform Options
Participants via Information Circular about the implementation date of
this change in the manner in which certain Session Orders are handled
when they have been routed to an away exchange.
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)(5) of the Act,\6\ in particular, in that it is designed 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. In particular, the Exchange believes that this
proposed rule change will benefit the marketplace and protect investors
because, consistent with the purpose of Session Orders, it will further
reduce the risk of erroneous or stale orders on BOX in the event that
an Options Participant loses connectivity with the BOX system.
Furthermore, Session Orders are intended to provide for the protection
of Options Participants and their customers, who must bear the burden
of market risk for stale orders caused by circumstances outside of
their control. The additional provision to the exception to provide for
when a Triggering Event occurs while a Session Order has been routed to
an away exchange, so that any remaining quantity that might be returned
to BOX will be cancelled, is consistent with the purpose of the Session
Order, and would further provide for the protection of investors and
the efficiency and fairness of the market. As such, the Exchange
believes the proposed change is consistent with the Act.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
This proposed rule change is filed pursuant to paragraph (A) of
section 19(b)(3) of the Exchange Act \7\ and Rule 19b-4(f)(6)
thereunder.\8\ This proposed rule change does not significantly affect
the protection of investors or the public interest, does not impose any
significant burden on competition, and, by its terms, does not become
operative for 30 days after the date of the filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest.\9\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ 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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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.
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-2012-019 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BOX-2012-019. 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
[[Page 71649]]
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
such filing also will be available for inspection and copying at the
principal office of the Exchange. All comments received will be posted
without change; the Commission does not edit personal identifying
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-BOX-2012-019 and should be submitted on or before
December 24, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-29074 Filed 11-30-12; 8:45 am]
BILLING CODE 8011-01-P
