Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rules 4020 (Opening of Accounts), 4050 (Discretionary Accounts), and 4060 (Confirmation to Public Customers) To Conform to the Corresponding Rules of FINRA, 64046-64048 [2013-25119]

Download as PDF 64046 Federal Register / Vol. 78, No. 207 / Friday, October 25, 2013 / Notices B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed change is being made to rationalize the continued listing standards for operating companies listed on the Exchange. As the Exchange’s research has indicated that this change will be unlikely to have any meaningful effect on the number of companies that will be delisted, the Exchange believes that it will not have any effect on the competition among listing markets and will result in no burden on competition. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) by order approve or disapprove the proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. emcdonald on DSK67QTVN1PROD with NOTICES 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– NYSE–2013–67 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. VerDate Mar<15>2010 17:55 Oct 24, 2013 Jkt 232001 All submissions should refer to File Number SR–NYSE–2013–67. 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–NYSE– 2013–67 and should be submitted on or before November 15, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–25120 Filed 10–24–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–70726; File No. SR–BOX– 2013–50] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rules 4020 (Opening of Accounts), 4050 (Discretionary Accounts), and 4060 (Confirmation to Public Customers) To Conform to the Corresponding Rules of FINRA October 21, 2013. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 12 17 PO 00000 CFR 200.30–3(a)(12). Frm 00088 Fmt 4703 Sfmt 4703 (‘‘Exchange Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on October 9, 2013, BOX Options Exchange LLC (the ‘‘Exchange’’ or ‘‘BOX’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been substantially prepared by the Exchange. BOX has designated the proposed rule change as constituting a ‘‘non-controversial’’ rule change under Exchange Act Rule 19b–4(f)(6),3 which renders the proposal effective upon receipt of this filing by 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 the BOX Rules to conform to the corresponding rules of the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’). 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend BOX Rules 4020 (Opening of Accounts), 4050 (Discretionary Accounts), and 4060 (Confirmation to Public Customers) to conform to the corresponding rules of FINRA.4 The Exchange believes the proposed amendments would clarify to Order 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 4 See FINRA Rule 2360(b)(12), (16), and (18). 2 17 E:\FR\FM\25OCN1.SGM 25OCN1 emcdonald on DSK67QTVN1PROD with NOTICES Federal Register / Vol. 78, No. 207 / Friday, October 25, 2013 / Notices Flow Providers (‘‘OFPs’’) their requirements with respect to supervision of their public customer options business and confirmations to public customers. In addition, the Exchange believes that the proposed amendments would align the Exchange’s rules with FINRA’s rules, thereby facilitating FINRA’s enforcement of the Exchange’s rules. First, the Exchange proposes to amend BOX Rule 4020(f)(3) to clarify the person responsible for approving accounts that do not meet the specific criteria and standards for writing uncovered short options transactions and for maintaining written records of the reasons for every account so approved. Specifically, the Exchange proposes to replace the terms ‘‘Senior Options Principal and/or Compliance Options Principal’’ with the term ‘‘a specific Options Principal(s).’’ The terms ‘‘Senior Options Principal and/or Compliance Options Principal’’ are not used anywhere else in the BOX Rules, while the term ‘‘Options Principal’’ is used in similar provisions and is already defined in the BOX Rules.5 The new term would have the same significance as the terms it is replacing, as the Exchange currently treats these three terms interchangeably when deciding if the OFP has met it supervision requirements. Moreover, the Exchange believes that using the term ‘‘a specific Options Principal(s)’’ in Rule 4020(f)(3) would align its rule with the corresponding FINRA rule,6 thereby facilitating FINRA’s enforcement of the Exchange’s rules. In addition, the Exchange proposes to amend Rule 4050. First, the Exchange proposes to remove section (a)(2). The Exchange believes that the requirement found in section (a)(2)—that each discretionary order be reviewed and approved on a daily basis—is no longer necessary and consequently overly burdensome. Second, the Exchange proposes to add a new section to Rule 4050, entitled ‘‘Discretion as to Price or Time Excepted’’. The Exchange believes that adding this section would clarify the duration and circumstances surrounding a price and time discretion exemption as well as facilitate FINRA’s enforcement of the BOX Rules. In addition, the Exchange believes that removing section (a)(2) and adding the new language would align BOX Rule 4050 with the corresponding FINRA rule,7 thereby facilitating FINRA’s enforcement of the Exchange’s rules. 5 See BOX Rule 100(a)(41). Rule 2360(b)(16)(E)(iii). 7 FINRA Rule 2360(b)(18)(A)(ii). 6 FINRA VerDate Mar<15>2010 17:55 Oct 24, 2013 Jkt 232001 Finally, the Exchange proposes to add language to Rule 4060(b) to state that written confirmations relating to options transactions do not need to specify the exchange or exchanges on which an option is executed. The Exchange believes that requiring written confirmations relating to options transactions specify the exchange or exchanges on which an option is executed is overly burdensome in light of the recent increase in order routing to away exchanges.8 Furthermore, even with this information removed from the transaction confirmation, a Public Customer would be able to receive this detail upon request. Finally, the Exchange believes that this change would help FINRA enforce the BOX Rules by aligning Rule 4060(b) with the corresponding FINRA rule.9 The Exchange believes the proposed rule change would provide greater certainty to OFPs regarding the Exchange’s rules by aligning them more closely with the corresponding FINRA rules. Moreover, the Exchange believes that aligning these rules more closely with the corresponding FINRA rules would aid in FINRA’s enforcement of the Exchange’s rules. Finally, the Exchange believes the proposed rule change would remove provisions that are no longer necessary and are now overly burdensome. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Exchange Act Section 6(b),10 in general, and Exchange Act Section 6(b)(5),11 in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest. 8 The Exchange is a participant in the Options Order Protection and Locked/Crossed Market Plan (‘‘Plan’’). The Plan requires the Participating Options Exchanges to adopt rules ‘‘reasonably designed to prevent Trade Throughs.’’ Under the Plan, the Exchange cannot execute orders at a price that is inferior to the National Best Bid and Offer, nor can the Exchange place an order on its books that would cause the Exchange’s best bid or offer to lock or cross another exchange’s quote. If the Exchange cannot execute or book an order, it will route the order to an Away Exchange on behalf of the Options Participant who submitted the Eligible Order through a third-party broker dealer. 9 FINRA Rule 2360(b)(12). 10 15 U.S.C. 78f(b). 11 15 U.S.C. 78f(b)(5). PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 64047 In particular, the Exchange believes the proposed rule change would promote consistency between the Exchange’s rules and FINRA’s rules and provide uniform rules governing how OFPs conduct business with the public. By promoting consistency with FINRA’s rules, the Exchange believes the proposed rule change would facilitate FINRA’s enforcement of the Exchange’s rules. By providing uniform rules governing how OFPs conduct business with the public, the Exchange believes the proposed rule change would foster certainty for market participants. Accordingly, the Exchange believes that the proposed rule change would promote a free and open market and a national market system and the protection of investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition As stated above, the Exchange believes that the proposed rule change would clarify certain provisions of the Exchange’s rules and make them substantially similar to the corresponding FINRA rules.12 Specifically, the Exchange believes the proposed rule change is necessary to establish uniform rules regarding how OFPs conduct business with the public. The Exchange does not believe that the proposed rule change would impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Exchange Act. In this regard, the Exchange does not believe the proposed rule change would impose any burden on any intramarket competition as it applies to all OFPs. In addition, the Exchange does not believe the proposed rule change would bring any unnecessary burden on intermarket competition as it is consistent with the corresponding FINRA rules. Therefore, the Exchange does not believe the proposed rule change would impose a burden on competition. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant 12 See E:\FR\FM\25OCN1.SGM supra note 4. 25OCN1 64048 Federal Register / Vol. 78, No. 207 / Friday, October 25, 2013 / Notices burden on competition; and (iii) become operative for 30 days from date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Exchange Act Section 19(b)(3)(A) 13 and Rule 19b– 4(f)(6) thereunder.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 investors, or otherwise in furtherance of the purposes of the Exchange 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 Exchange 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–2013–50 on the subject line. Paper Comments emcdonald on DSK67QTVN1PROD with NOTICES 13 15 U.S.C. 78s(b)(3)(A). 14 17 CFR 240.19b–4(f)(6). Pursuant to Exchange Act Rule 19b–4(f)(6)(iii), the Exchange is required to provide 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 the filing of the proposed rule change, or such shorter time as designated by the Commission. The Commission has determined to waive the requirement that the Exchange provide the Commission with written notice of its intent to file the proposed rule change at least five business days prior to the filing date. 17:55 Oct 24, 2013 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–25119 Filed 10–24–13; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF TRANSPORTATION • 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–2013–50. 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 VerDate Mar<15>2010 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, on official business days between the hours of 10:00 a.m. and 3:00 p.m., located at 100 F Street NE., Washington, DC 20549. 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–2013–50 and should be submitted on or before November 15, 2013. Jkt 232001 Intelligent Transportation Systems Program Advisory Committee; Notice of Meeting ITS Joint Program Office, Research and Innovative Technology Administration, U.S. Department of Transportation. ACTION: Notice. AGENCY: The Intelligent Transportation Systems (ITS) Program Advisory Committee (ITSPAC) will hold a meeting by web conference on November 18, 2013, from 1:00 p.m. to 5:00 p.m. (EDT). The ITSPAC, established under Section 5305 of Public Law 109–59, Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, August 10, 2005, and re-established under Section 53003 of Public Law 112–141, Moving Ahead for Progress in the 21st Century, July 6, 2012, was created to advise the Secretary of Transportation on all matters relating to the study, development, and implementation of 15 17 PO 00000 CFR 200.30–3(a)(12). Frm 00090 Fmt 4703 Sfmt 4703 intelligent transportation systems. Through its sponsor, the ITS Joint Program Office (JPO), the ITSPAC makes recommendations to the Secretary regarding ITS Program needs, objectives, plans, approaches, content, and progress. The following is a summary of the meeting tentative agenda: (1) Welcome and Introductions, (2) Safety Pilot Update, (3) Review of Deployment Incentives Report, (4) Review of Draft Final Recommendations, and (5) Next Steps and Remaining Tasks. The web conference will be open to the public, but limited conference lines will be available on a first-come, firstserved basis. Members of the public who wish to participate in the web conference must request approval from Mr. Stephen Glasscock, the Committee Designated Federal Official, at (202) 366–9126, not later than November 11, 2013. You must request Mr. Glasscock’s approval also to present oral statements during the web conference. Questions about the agenda or written comments may be submitted by U.S. Mail to: U.S. Department of Transportation, Research and Innovative Technology Administration, ITS Joint Program Office, Attention: Stephen Glasscock, 1200 New Jersey Avenue SE., HOIT, Washington, DC 20590 or faxed to (202) 493–2027. The ITS Joint Program Office requests that written comments be submitted not later than November 11, 2013. Notice of this meeting is provided in accordance with the Federal Advisory Committee Act and the General Services Administration regulations (41 CFR part 102–3) covering management of Federal advisory committees. Issued in Washington, DC, on the 22nd day of October 2013. John Augustine, Managing Director, ITS Joint Program Office. [FR Doc. 2013–25183 Filed 10–24–13; 8:45 am] BILLING CODE 4910–HY–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Noise Exposure Map Notice for Bob Hope Airport, Burbank, California Federal Aviation Administration, (FAA), DOT. ACTION: Notice. AGENCY: The FAA announces its determination that the noise exposure maps submitted by Burbank-GlendalePasadena Airport Authority, for Bob Hope Airport under the provisions of 49 U.S.C. 47501 et. seq (Aviation Safety SUMMARY: E:\FR\FM\25OCN1.SGM 25OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 78, Number 207 (Friday, October 25, 2013)]
[Notices]
[Pages 64046-64048]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-25119]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70726; File No. SR-BOX-2013-50]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend BOX Rules 4020 (Opening of Accounts), 4050 (Discretionary 
Accounts), and 4060 (Confirmation to Public Customers) To Conform to 
the Corresponding Rules of FINRA

October 21, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby 
given that on October 9, 2013, BOX Options Exchange LLC (the 
``Exchange'' or ``BOX'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been substantially prepared by 
the Exchange. BOX has designated the proposed rule change as 
constituting a ``non-controversial'' rule change under Exchange Act 
Rule 19b-4(f)(6),\3\ which renders the proposal effective upon receipt 
of this filing by 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 the BOX Rules to conform to the 
corresponding rules of the Financial Industry Regulatory Authority, 
Inc. (``FINRA''). 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend BOX Rules 4020 (Opening of 
Accounts), 4050 (Discretionary Accounts), and 4060 (Confirmation to 
Public Customers) to conform to the corresponding rules of FINRA.\4\ 
The Exchange believes the proposed amendments would clarify to Order

[[Page 64047]]

Flow Providers (``OFPs'') their requirements with respect to 
supervision of their public customer options business and confirmations 
to public customers. In addition, the Exchange believes that the 
proposed amendments would align the Exchange's rules with FINRA's 
rules, thereby facilitating FINRA's enforcement of the Exchange's 
rules.
---------------------------------------------------------------------------

    \4\ See FINRA Rule 2360(b)(12), (16), and (18).
---------------------------------------------------------------------------

    First, the Exchange proposes to amend BOX Rule 4020(f)(3) to 
clarify the person responsible for approving accounts that do not meet 
the specific criteria and standards for writing uncovered short options 
transactions and for maintaining written records of the reasons for 
every account so approved. Specifically, the Exchange proposes to 
replace the terms ``Senior Options Principal and/or Compliance Options 
Principal'' with the term ``a specific Options Principal(s).'' The 
terms ``Senior Options Principal and/or Compliance Options Principal'' 
are not used anywhere else in the BOX Rules, while the term ``Options 
Principal'' is used in similar provisions and is already defined in the 
BOX Rules.\5\ The new term would have the same significance as the 
terms it is replacing, as the Exchange currently treats these three 
terms interchangeably when deciding if the OFP has met it supervision 
requirements. Moreover, the Exchange believes that using the term ``a 
specific Options Principal(s)'' in Rule 4020(f)(3) would align its rule 
with the corresponding FINRA rule,\6\ thereby facilitating FINRA's 
enforcement of the Exchange's rules.
---------------------------------------------------------------------------

    \5\ See BOX Rule 100(a)(41).
    \6\ FINRA Rule 2360(b)(16)(E)(iii).
---------------------------------------------------------------------------

    In addition, the Exchange proposes to amend Rule 4050. First, the 
Exchange proposes to remove section (a)(2). The Exchange believes that 
the requirement found in section (a)(2)--that each discretionary order 
be reviewed and approved on a daily basis--is no longer necessary and 
consequently overly burdensome. Second, the Exchange proposes to add a 
new section to Rule 4050, entitled ``Discretion as to Price or Time 
Excepted''. The Exchange believes that adding this section would 
clarify the duration and circumstances surrounding a price and time 
discretion exemption as well as facilitate FINRA's enforcement of the 
BOX Rules. In addition, the Exchange believes that removing section 
(a)(2) and adding the new language would align BOX Rule 4050 with the 
corresponding FINRA rule,\7\ thereby facilitating FINRA's enforcement 
of the Exchange's rules.
---------------------------------------------------------------------------

    \7\ FINRA Rule 2360(b)(18)(A)(ii).
---------------------------------------------------------------------------

    Finally, the Exchange proposes to add language to Rule 4060(b) to 
state that written confirmations relating to options transactions do 
not need to specify the exchange or exchanges on which an option is 
executed. The Exchange believes that requiring written confirmations 
relating to options transactions specify the exchange or exchanges on 
which an option is executed is overly burdensome in light of the recent 
increase in order routing to away exchanges.\8\ Furthermore, even with 
this information removed from the transaction confirmation, a Public 
Customer would be able to receive this detail upon request. Finally, 
the Exchange believes that this change would help FINRA enforce the BOX 
Rules by aligning Rule 4060(b) with the corresponding FINRA rule.\9\
---------------------------------------------------------------------------

    \8\ The Exchange is a participant in the Options Order 
Protection and Locked/Crossed Market Plan (``Plan''). The Plan 
requires the Participating Options Exchanges to adopt rules 
``reasonably designed to prevent Trade Throughs.'' Under the Plan, 
the Exchange cannot execute orders at a price that is inferior to 
the National Best Bid and Offer, nor can the Exchange place an order 
on its books that would cause the Exchange's best bid or offer to 
lock or cross another exchange's quote. If the Exchange cannot 
execute or book an order, it will route the order to an Away 
Exchange on behalf of the Options Participant who submitted the 
Eligible Order through a third-party broker dealer.
    \9\ FINRA Rule 2360(b)(12).
---------------------------------------------------------------------------

    The Exchange believes the proposed rule change would provide 
greater certainty to OFPs regarding the Exchange's rules by aligning 
them more closely with the corresponding FINRA rules. Moreover, the 
Exchange believes that aligning these rules more closely with the 
corresponding FINRA rules would aid in FINRA's enforcement of the 
Exchange's rules. Finally, the Exchange believes the proposed rule 
change would remove provisions that are no longer necessary and are now 
overly burdensome.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Exchange Act Section 6(b),\10\ in general, and Exchange 
Act Section 6(b)(5),\11\ in particular, in that it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the Exchange believes the proposed rule change would 
promote consistency between the Exchange's rules and FINRA's rules and 
provide uniform rules governing how OFPs conduct business with the 
public. By promoting consistency with FINRA's rules, the Exchange 
believes the proposed rule change would facilitate FINRA's enforcement 
of the Exchange's rules. By providing uniform rules governing how OFPs 
conduct business with the public, the Exchange believes the proposed 
rule change would foster certainty for market participants. 
Accordingly, the Exchange believes that the proposed rule change would 
promote a free and open market and a national market system and the 
protection of investors and the public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    As stated above, the Exchange believes that the proposed rule 
change would clarify certain provisions of the Exchange's rules and 
make them substantially similar to the corresponding FINRA rules.\12\ 
Specifically, the Exchange believes the proposed rule change is 
necessary to establish uniform rules regarding how OFPs conduct 
business with the public. The Exchange does not believe that the 
proposed rule change would impose any burden on competition not 
necessary or appropriate in furtherance of the purposes of the Exchange 
Act. In this regard, the Exchange does not believe the proposed rule 
change would impose any burden on any intramarket competition as it 
applies to all OFPs. In addition, the Exchange does not believe the 
proposed rule change would bring any unnecessary burden on intermarket 
competition as it is consistent with the corresponding FINRA rules. 
Therefore, the Exchange does not believe the proposed rule change would 
impose a burden on competition.
---------------------------------------------------------------------------

    \12\ See supra note 4.
---------------------------------------------------------------------------

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not: (i) Significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant

[[Page 64048]]

burden on competition; and (iii) become operative for 30 days from date 
on which it was filed, or such shorter time as the Commission may 
designate, it has become effective pursuant to Exchange Act Section 
19(b)(3)(A) \13\ and Rule 19b-4(f)(6) thereunder.\14\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6). Pursuant to Exchange Act Rule 19b-
4(f)(6)(iii), the Exchange is required to provide 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 the filing 
of the proposed rule change, or such shorter time as designated by 
the Commission. The Commission has determined to waive the 
requirement that the Exchange provide the Commission with written 
notice of its intent to file the proposed rule change at least five 
business days prior to the filing date.
---------------------------------------------------------------------------

    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 Exchange 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 Exchange 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-2013-50 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-2013-50. 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, on official business days between 
the hours of 10:00 a.m. and 3:00 p.m., located at 100 F Street NE., 
Washington, DC 20549. 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-2013-50 and 
should be submitted on or before November 15, 2013.

    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. 2013-25119 Filed 10-24-13; 8:45 am]
BILLING CODE 8011-01-P

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