Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange Fee Schedule To Update and Clarify Certain Fees Assessed Under Section V (Technology Fees), 41174-41176 [2013-16381]
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41174
Federal Register / Vol. 78, No. 131 / Tuesday, July 9, 2013 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69909; File No. SR–BOX–
2013–35]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
the Exchange Fee Schedule To Update
and Clarify Certain Fees Assessed
Under Section V (Technology Fees)
July 2, 2013.
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 July 1,
2013, BOX Options Exchange LLC (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A)(ii) of the
Act,3 and Rule 19b–4(f)(2) thereunder,4
which renders the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
to amend the Exchange Fee Schedule to
update and clarify certain fees assessed
under Section V (Technology Fees) on
the BOX Market LLC (‘‘BOX’’) options
facility. Changes to the fee schedule
pursuant to this proposal will be
effective upon filing. 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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in Sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, Proposed Rule
Change
1. Purpose
The Exchange proposes to amend the
Fee Schedule for trading on BOX to
update and clarify the technology fees
that are assessed on market participants.
The Exchange currently organizes
Section V (Technology Fees) into two
sections; a Point of Presence (‘‘PoP’’)
Connection Fee under Section V.A., and
a Back Office Trade Management
Software (‘‘TMS’’) Fee under Section
V.B. The Exchange proposes to rename
Section V.A. ‘‘Connectivity Fees’’ and
replace the text in Section V.A. with
text that clarifies how these fees are
assessed. Further, the Exchange
proposes to remove Section V.B. from
the BOX Fee Schedule.
Section V.A, currently titled ‘‘PoP
Connection Fee’’, was created to detail
the fees applicable to Participants who
connected to the BOX market network at
PoP sites. These sites are owned and
operated by third-party external
vendors, and the fees listed in this
section were meant to encompass what
fees could be charged based on each
Participant’s particular configuration.
These fees could either be billed
directly to the Participant by the vendor,
or passed through to the Participant by
BOX. Currently, in practice, a vast
majority of Participants are billed
directly by the vendor.
The Exchange is proposing to rename
Section V.A. ‘‘Connectivity Fees’’ and
replace the text in Section V.A. with
text that clarifies the fees applicable to
all market participants that connect to
the BOX network. Specifically, the
Exchange proposes to state that market
participants are required to connect to
the BOX network (including crossconnects),5 through datacenters owned
and operated by third-party vendors.
The Exchange also proposes to state that
while BOX does not assess Connectivity
Fees; these fees are assessed by the
datacenters and will be billed directly to
the market participant. BOX will no
longer be responsible for passing
through any of these fees. Connectivity
fees can include one-time set-up fees,
monthly charges, and other fees charged
by the third-party vendor in exchange
for the services provided to the market
participant. The Exchange notes that
this proposal does not change any of the
fees currently assessed by third party
vendors on market participants
connecting to BOX, but rather clarifies
how they will be billed.
The Exchange then proposes to detail
the two datacenters where market
participants may connect to the BOX
network: NY4, owned and operated by
Equinix; and 65 Broadway, owned and
operated by 365 Main; and the
connectivity fees applicable, depending
upon connection type, in the table set
forth below (and included in the
proposed Section V.A.).
NY4
mstockstill on DSK4VPTVN1PROD with NOTICES
Connection Type
One-time
set-up
POTS ...............................................................................................................
Ethernet ...........................................................................................................
T1 .....................................................................................................................
Cat 5/6 .............................................................................................................
COAX ...............................................................................................................
Single & Multi Mode Fiber ...............................................................................
Extended Cross Connect .................................................................................
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17
VerDate Mar<15>2010
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PO 00000
Frm 00150
Fmt 4703
Sfmt 4703
Monthly
$100
N/A
500
500
500
500
850
CFR 240.19b–4(f)(2).
‘‘cross connect’’ occurs when the affected
third-party system is located at the same datacenter
2 17
65 Broadway
$25
N/A
100
245
245
350
1000
One-time
set-up
$50
250
N/A
250
250
325
N/A
Monthly
$25
225
N/A
225
200
500
N/A
site where BOX systems are located, and the thirdparty connects to BOX through the datacenter.
E:\FR\FM\09JYN1.SGM
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Federal Register / Vol. 78, No. 131 / Tuesday, July 9, 2013 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
The Exchange believes the proposed
changes to Section V.A. will more
accurately explain the costs of
connecting to the Exchange.
Further, the Exchange is proposing to
remove Section V.B. ‘‘Back Office Trade
Management Software (‘‘TMS’’)’’ from
the Fee Schedule. The TMS Software is
optional software to which BOX
Participants may subscribe in order to
manage their post trade data. The
Exchange currently charges a monthly
per user fee, depending upon the
number of users per Participant.
The Exchange proposes to remove
Section V.B. and offer TMS Software to
all BOX Participants at no cost. The
Exchange believes that offering TMS
Software at no cost will allow more
Participants to subscribe to the service
and therefore will give them the
opportunity to better manage their
trading on the Exchange.
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 Sections 6(b)(4) and
6(b)(5) of the Act,7 in particular, in that
it provides for the equitable allocation
of reasonable dues, fees, and other
charges among BOX Participants and
other persons using its facilities and
does not unfairly discriminate between
customers, issuers, brokers or dealers.
The Exchange believes it is
reasonable, equitable and not unfairly
discriminatory to clarify that
connectivity fees are assessed on all
market participants that establish
connections to BOX through a thirdparty and that these fees will be billed
directly to the market participant.
Specifically, the Exchange is proposing
to amend the connectivity fee section of
the Fee Schedule in a way that is similar
to a comparable section of the Miami
International Securities Exchange, LLC
(‘‘MIAX’’).8
The Exchange believes that the
proposed amendments to Section V.A.
of the Fee Schedule are reasonable as
they do not change any of the fees
currently assessed by third party
vendors on market participants
connecting to BOX, but rather clarify
how these fees will be billed.
Further, the Exchange believes that
the proposed Connectivity Fees
constitute an equitable allocation of
fees, and are not unfairly
discriminatory, as all similarly situated
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
8 See MIAX Options Fee Schedule as of June 1,
2013, available at https://www.miaxoptions.com/
sites/default/files/MIAX_Options_Fee_Schedule_
06032013.pdf
7 15
VerDate Mar<15>2010
17:44 Jul 08, 2013
Jkt 229001
market participants are charged the
same amount depending on the services
they receive.
The Exchange believes that the
proposed removal of TMS Software fees
is non-discriminatory because it applies
equally to all Participants on the
Exchange. Further, the Exchange
believes that offering the TMS Software
at no cost will remove impediments to
and better provide for a free and open
market. Moreover, the removal of the
TMS Software fees is reasonable
because it will allow all Participants to
access the software at no cost.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange believes that the proposed
amendments to the Fee Schedule will
not impose a burden on competition
among various Exchange Participants.
The proposed change is designed to
provide greater specificity and clarity
within the Fee Schedule and does not
place any Participants at a disadvantage
compared to other Participants. Further,
the Exchange does not believe this rule
change will have an impact on
intermarket competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act 9 and
Rule 19b–4(f)(2) thereunder,10 because
it establishes or changes a due, or fee.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend the rule change if
it appears to the Commission that the
action is necessary or appropriate in the
public interest, for the protection of
investors, or would otherwise further
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
PO 00000
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
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–2013–35 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–2013–35. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of 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–
2013–35 and should be submitted on or
before July 30, 2013.
10 17
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41175
E:\FR\FM\09JYN1.SGM
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41176
Federal Register / Vol. 78, No. 131 / Tuesday, July 9, 2013 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013–16381 Filed 7–8–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–69920; File No. SR–Phlx–
2013–73]
Self-Regulatory Organizations;
NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Amending
Rule 1012 To Permit the Exchange To
List Additional Strike Prices Until the
Close of Trading on the Second
Business Day Prior to Monthly
Expiration
July 2, 2013.
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 July 1,
2013, NASDAQ OMX PHLX LLC (the
‘‘Exchange’’ or ‘‘Phlx’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
mstockstill on DSK4VPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing with the
Commission a proposal to amend Rule
1012 (Series of Options Open for
Trading) to permit the Exchange to list
additional strike prices until the close of
trading on the second business day prior
to the expiration of a monthly, or
standard, option in the event of unusual
market conditions.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
nasdaqomxphlx.cchwallstreet.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
17:44 Jul 08, 2013
Jkt 229001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend Rule 1012(a)(i)(B) to
permit the Exchange to add additional
strikes until the close of trading on the
second business day prior to a monthly
expiration in the event of unusual
market conditions.
This is a competitive filing that is
based on two recently approved filings
submitted by NYSE MKT LLC (‘‘NYSE
MKT’’) and NYSE, Arca, Inc. (‘‘NYSE
Arca’’) and an immediately effective
filing submitted by Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’).3 The NYSE MKT and NYSE
Arca filings both made changes to their
respective rules governing the last day
on which strikes may be added for
individual stock and exchange traded
fund (‘‘ETF’’) options. Similar to current
Rule 1012(a)(i)(B), NYSE MKT, NYSE
Arca, and CBOE had rules that
permitted the opening of additional
series of individual stock and ETF
options until the first calendar day of
the month in which the option expires
or until the fifth business day prior to
expiration if unusual market conditions
exist. NYSE MKT, NYSE Arca, and
CBOE amended their rules to permit the
opening of additional series of
individual stocks and ETF options until
the close of trading on the second
business day prior to the expiration of
a monthly, or standard, option in the
event of unusual market conditions. The
Exchange is proposing to amend its
rules in respect of equity and ETF
3 See Securities Exchange Act Release Nos. 68460
(December 18, 2012), 77 FR 76145 (December 26,
2012) (SR–NYSEMKT–2012–41) (approval order)
(‘‘NYSE MKT filing’’); 68461 (December 18, 2012),
77 FR 76155 (December 26, 2012) (SR–NYSEArca–
2012–94) (approval order) (‘‘NYSE Arca filing’’);
and 68606 (January 9, 2013), 78 FR 3065 (January
15, 2013) (SR–CBOE–2012–131) (notice of filing
and immediate effectiveness) (‘‘CBOE filing’’).
PO 00000
Frm 00152
Fmt 4703
Sfmt 4703
options to permit the opening of
additional strike prices until the close of
trading on the second business day prior
to the expiration of a standard (monthly)
option.
Options market participants generally
prefer to focus their trading in strike
prices that immediately surround the
price of the underlying security.
However, if the price of the underlying
stock or ETF moves significantly, there
may be a market need for additional
strike prices to adequately account for
market participants’ risk management
needs in a stock or ETF. In these
situations, the Exchange has the ability
to add additional series at strike prices
that are better tailored to the risk
management needs of market
participants. The Exchange may make
the determination to open additional
series for trading when the Exchange
deems it necessary to maintain an
orderly market, to meet customer
demand, or when the market price of
the underlying stock or ETF moves more
than five strike prices from the initial
exercise price or prices.4
If the market need occurs prior to five
business days prior to expiration, then
the market participants may have access
to an option contract that is more
tailored to the movement in the
underlying stock or ETF. Under current
Rule 1012, however, the Exchange is
unable to open additional series in
response to unusual market conditions
that occur between five and two days
prior to expiration and market
participants may be left without a
contract that is tailored to manage their
risk. Because of the current five days
before expiration restriction, investors
may be unable to tailor their hedging
activities in options and effectively
manage their risk going into expiration.
The Exchange proposes to permit the
listing of additional strikes until the
close of trading on the second business
day prior to expiration in unusual
market conditions. Since expiration of
standard options on individual stocks
and ETFs is on a Saturday, the close of
trading on the second business day prior
to expiration will typically fall on a
Thursday. However, in cases where
Friday is a holiday during which the
Exchange is closed, the close of trading
on the second business day will occur
on a Wednesday. The Exchange will
continue to make the determination to
open additional series for trading when
the Exchange deems it necessary to
maintain an orderly market, to meet
customer demand, or when certain price
movements take place in the underlying
market. The proposed change will
4 See
E:\FR\FM\09JYN1.SGM
Rule 1012(a)(i)(B).
09JYN1
]]>Agencies
[Federal Register Volume 78, Number 131 (Tuesday, July 9, 2013)]
[Notices]
[Pages 41174-41176]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-16381]
[[Page 41174]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69909; File No. SR-BOX-2013-35]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend the Exchange Fee Schedule To Update and Clarify Certain Fees
Assessed Under Section V (Technology Fees)
July 2, 2013.
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 July 1, 2013, BOX Options Exchange LLC (the ``Exchange'')
filed with the Securities and Exchange Commission (the ``Commission'')
the proposed rule change as described in Items I, II, and III below,
which Items have been prepared by the Exchange. The Exchange filed the
proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\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
The Exchange is filing with the Securities and Exchange Commission
(``Commission'') a proposed rule change to amend the Exchange Fee
Schedule to update and clarify certain fees assessed under Section V
(Technology Fees) on the BOX Market LLC (``BOX'') options facility.
Changes to the fee schedule pursuant to this proposal will be effective
upon filing. 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 Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule for trading on BOX
to update and clarify the technology fees that are assessed on market
participants. The Exchange currently organizes Section V (Technology
Fees) into two sections; a Point of Presence (``PoP'') Connection Fee
under Section V.A., and a Back Office Trade Management Software
(``TMS'') Fee under Section V.B. The Exchange proposes to rename
Section V.A. ``Connectivity Fees'' and replace the text in Section V.A.
with text that clarifies how these fees are assessed. Further, the
Exchange proposes to remove Section V.B. from the BOX Fee Schedule.
Section V.A, currently titled ``PoP Connection Fee'', was created
to detail the fees applicable to Participants who connected to the BOX
market network at PoP sites. These sites are owned and operated by
third-party external vendors, and the fees listed in this section were
meant to encompass what fees could be charged based on each
Participant's particular configuration. These fees could either be
billed directly to the Participant by the vendor, or passed through to
the Participant by BOX. Currently, in practice, a vast majority of
Participants are billed directly by the vendor.
The Exchange is proposing to rename Section V.A. ``Connectivity
Fees'' and replace the text in Section V.A. with text that clarifies
the fees applicable to all market participants that connect to the BOX
network. Specifically, the Exchange proposes to state that market
participants are required to connect to the BOX network (including
cross-connects),\5\ through datacenters owned and operated by third-
party vendors. The Exchange also proposes to state that while BOX does
not assess Connectivity Fees; these fees are assessed by the
datacenters and will be billed directly to the market participant. BOX
will no longer be responsible for passing through any of these fees.
Connectivity fees can include one-time set-up fees, monthly charges,
and other fees charged by the third-party vendor in exchange for the
services provided to the market participant. The Exchange notes that
this proposal does not change any of the fees currently assessed by
third party vendors on market participants connecting to BOX, but
rather clarifies how they will be billed.
---------------------------------------------------------------------------
\5\ A ``cross connect'' occurs when the affected third-party
system is located at the same datacenter site where BOX systems are
located, and the third-party connects to BOX through the datacenter.
---------------------------------------------------------------------------
The Exchange then proposes to detail the two datacenters where
market participants may connect to the BOX network: NY4, owned and
operated by Equinix; and 65 Broadway, owned and operated by 365 Main;
and the connectivity fees applicable, depending upon connection type,
in the table set forth below (and included in the proposed Section
V.A.).
----------------------------------------------------------------------------------------------------------------
NY4 65 Broadway
---------------------------------------------------------------
Connection Type One-time set- One-time set-
up Monthly up Monthly
----------------------------------------------------------------------------------------------------------------
POTS............................................ $100 $25 $50 $25
Ethernet........................................ N/A N/A 250 225
T1.............................................. 500 100 N/A N/A
Cat 5/6......................................... 500 245 250 225
COAX............................................ 500 245 250 200
Single & Multi Mode Fiber....................... 500 350 325 500
Extended Cross Connect.......................... 850 1000 N/A N/A
----------------------------------------------------------------------------------------------------------------
[[Page 41175]]
The Exchange believes the proposed changes to Section V.A. will
more accurately explain the costs of connecting to the Exchange.
Further, the Exchange is proposing to remove Section V.B. ``Back
Office Trade Management Software (``TMS'')'' from the Fee Schedule. The
TMS Software is optional software to which BOX Participants may
subscribe in order to manage their post trade data. The Exchange
currently charges a monthly per user fee, depending upon the number of
users per Participant.
The Exchange proposes to remove Section V.B. and offer TMS Software
to all BOX Participants at no cost. The Exchange believes that offering
TMS Software at no cost will allow more Participants to subscribe to
the service and therefore will give them the opportunity to better
manage their trading on the Exchange.
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 Sections
6(b)(4) and 6(b)(5) of the Act,\7\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among BOX Participants and other persons using its facilities
and does not unfairly discriminate between customers, issuers, brokers
or dealers.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes it is reasonable, equitable and not unfairly
discriminatory to clarify that connectivity fees are assessed on all
market participants that establish connections to BOX through a third-
party and that these fees will be billed directly to the market
participant. Specifically, the Exchange is proposing to amend the
connectivity fee section of the Fee Schedule in a way that is similar
to a comparable section of the Miami International Securities Exchange,
LLC (``MIAX'').\8\
---------------------------------------------------------------------------
\8\ See MIAX Options Fee Schedule as of June 1, 2013, available
at https://www.miaxoptions.com/sites/default/files/MIAX_Options_Fee_Schedule_06032013.pdf
---------------------------------------------------------------------------
The Exchange believes that the proposed amendments to Section V.A.
of the Fee Schedule are reasonable as they do not change any of the
fees currently assessed by third party vendors on market participants
connecting to BOX, but rather clarify how these fees will be billed.
Further, the Exchange believes that the proposed Connectivity Fees
constitute an equitable allocation of fees, and are not unfairly
discriminatory, as all similarly situated market participants are
charged the same amount depending on the services they receive.
The Exchange believes that the proposed removal of TMS Software
fees is non-discriminatory because it applies equally to all
Participants on the Exchange. Further, the Exchange believes that
offering the TMS Software at no cost will remove impediments to and
better provide for a free and open market. Moreover, the removal of the
TMS Software fees is reasonable because it will allow all Participants
to access the software at no cost.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange believes that the
proposed amendments to the Fee Schedule will not impose a burden on
competition among various Exchange Participants. The proposed change is
designed to provide greater specificity and clarity within the Fee
Schedule and does not place any Participants at a disadvantage compared
to other Participants. Further, the Exchange does not believe this rule
change will have an impact on intermarket competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act \9\ and Rule 19b-4(f)(2)
thereunder,\10\ because it establishes or changes a due, or fee.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend the rule
change if it appears to the Commission that the action is necessary or
appropriate in the public interest, for the protection of investors, or
would otherwise further the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BOX-2013-35 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-2013-35. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of 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-2013-35 and should be
submitted on or before July 30, 2013.
[[Page 41176]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-16381 Filed 7-8-13; 8:45 am]
BILLING CODE 8011-01-P
