Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Include the Series 56 Examination Fee Information, 64258-64259 [2013-25293]

Download as PDF 64258 Federal Register / Vol. 78, No. 208 / Monday, October 28, 2013 / Notices SECURITIES AND EXCHANGE COMMISSION the most significant aspects of such statements. [Release No. 34–70735; File No. SR–BOX– 2013–49] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule To Include the Series 56 Examination Fee Information October 22, 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 October 16, 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 the Substance of the Proposed Rule Change The Exchange is filing with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change to amend the Fee Schedule on the BOX Market LLC (‘‘BOX’’) options facility to include the Series 56 examination fee information. 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 http://boxexchange.com. wreier-aviles on DSK5TPTVN1PROD with NOTICES 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 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 2 17 VerDate Mar<15>2010 14:52 Oct 25, 2013 Jkt 232001 1. Purpose The Exchange recently amended the Fee Schedule for trading on BOX to establish fees for the Proprietary Trader Program (S501) Continuing Education Regulatory Element Session.5 The Exchange now proposes to make a clarifying change to specify the fee for the corresponding Proprietary Trader Qualification Examination (‘‘Series 56’’) on the Fee Schedule. Specifically, the Exchange proposes to add the $195.00 fee per person, per Series 56 examination to the Fee Schedule. This fee reflects both the cost of the examination and the costs incurred in maintaining and developing the examination and continuing education program to ensure their content is and continues to be adequate in testing the competence and knowledge generally applicable to proprietary trading. The $60.00 per person, per session fee for the S501 continuing education requirement is already contained within the Fee Schedule and the Exchange believes including both fees in the Fee Schedule would clarify the full cost of the exam to Participants. The Series 56 examination is administered by the Financial Industry Regulatory Authority (‘‘FINRA’’) on behalf of the Exchange.6 The Exchange permits each person associated with a Participant who is included within the definition of Representative to register as a Limited Representative—Proprietary Trader if his activities in the investment banking or securities business are limited solely to proprietary trading; and he passes the appropriate Qualification Examination for Limited Representative—Proprietary Trader, the Series 56; and he is an associated person of a proprietary trading firm.7 5 See Securities Exchange Act Release No. 70255 (August 26, 2013), 78 FR 53812 (August 30, 2013) (Notice of Filing and Immediate Effectiveness of SR–BOX–2013–42). 6 Participants would continue to submit the exam fee, as well as the fee for continuing education, to FINRA; the Exchange will not invoice or collect these fees. 7 See Exchange Rule 2020(b)(2)(i). Under Exchange Rule 2020(e)(2) a proprietary trading firm is a Participant that trades its own capital, that does not have customers, and that is not a member of the Financial Industry Regulatory Authority. In addition, to qualify for this definition, the funds used by a proprietary trading firm must be exclusively firm funds, all trading must be in the firm’s accounts, and traders must be owners of, employees of, or contractors to the firm. PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 The Exchange’s Fee Schedule does not currently set forth the fees applicable for the Series 7 and its continuing education program (S101) as these programs are within FINRA’s jurisdiction and collected by FINRA from its members. On the contrary, the Series 56 and its continuing education requirements apply to Participants that are not required by Section 15(b)(8) of the Act 8 to become a FINRA member. Therefore, the Exchange believes including these fees in the Fee Schedule will clarify the costs related to this exam and its continuing education. Additionally, the Exchange proposes to make clarifying changes to the fee schedule to make certain that the differences between these two related fees, the Series 56 examination fee and the S501 continuing education fee, are clear. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act, in general, and Section 6(b)(4) and 6(b)(5)of the Act,9 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 is proposing to include additional information about a relevant fee for the sake of clarity. On behalf of the exchanges, FINRA incurs costs in maintaining and developing the examination and continuing education program to ensure their content is and continues to be adequate in testing the competence and knowledge generally applicable to proprietary trading. The Exchange believes the Series 56 examination fee is reasonable as it is designed to allow FINRA to cover its cost of administering the Series 56 exam program on behalf of the Exchange. The fee for the Series 56 exam is greater than the fee for continuing education because the exam fee is also designed to cover the costs associated with developing not just the Series 56 exam, but also the related S501 continuing education program. The Exchange also believes this fee is reasonable because it understands that other exchanges will be assessing an identical fee to be collected by FINRA for the Series 56 exam. In addition, the Exchange believes this fee is equitably allocated and not unfairly discriminatory as it will apply uniformly to all Participants 8 15 9 15 E:\FR\FM\28OCN1.SGM U.S.C. 78o(b)(8). U.S.C. 78f(b)(4) and (5). 28OCN1 Federal Register / Vol. 78, No. 208 / Monday, October 28, 2013 / Notices Paper Comments who chose to take the Series 56 examination. 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 proposed change is designed to provide greater specificity and clarity within the Fee Schedule with respect to the fees related to the Series 56 exam and does not impose any burden on intermarket competition because other exchanges will be assessing an identical fee for the Series 56 exam. 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 Effectiveness The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Exchange Act 10 and Rule 19b–4(f)(2) thereunder,11 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. 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: wreier-aviles on DSK5TPTVN1PROD with NOTICES • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–BOX–2013–49 on the subject line. 11 17 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). VerDate Mar<15>2010 14:52 Oct 25, 2013 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–25293 Filed 10–25–13; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF STATE [Public Notice 8508] Electronic Comments 10 15 • 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–2013–49. 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 (http://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– 2013–49 and should be submitted on or before November 18, 2013. U.S. Department of State Advisory Committee on Private International Law (ACPIL)—Online Dispute Resolution (ODR) Study Group The Office of the Assistant Legal Adviser for Private International Law, Department of State, hereby gives notice 12 17 Jkt 232001 PO 00000 CFR 200.30–3(a)(12). Frm 00066 Fmt 4703 Sfmt 4703 64259 that the ACPIL ODR Study Group will hold a public meeting. The ACPIL ODR Study Group will meet to discuss the next session of the UNCITRAL ODR Working Group, scheduled for November 18–22, 2013 in Vienna. This is not a meeting of the full Advisory Committee. The UNCITRAL ODR Working Group is charged with the development of legal instruments for resolving both business to business and business to consumer cross-border electronic commerce disputes. The Working Group is in the process of developing generic ODR procedural rules for resolution of crossborder electronic commerce disputes. For the reports of the first six sessions of the UNCITRAL ODR Working Group—December 13–17, 2010, in Vienna (A/CN.9/716); May 23–27, 2011, in New York (A/CN.9/721); Nov. 14–18, 2011, in Vienna (A/CN.9/739); May 21– 25, 2012, in New York (A/CN.9/744); November 5–9, 2012, in Vienna (A/ CN.9/762); and May 20–24, 2013, in New York (A/CN.9/769)—please follow the following link: http:// www.uncitral.org/uncitral/commission/ working_groups/3Online_Dispute_ Resolution.html. Documents relating to the upcoming session of the Working Group are available on the same link. Time and Place: The meeting of the ACPIL ODR Study Group will take place on Thursday, November 7, from 12:30 p.m. to 3:00 p.m. EDT at 2201 C Street NW., Harry S Truman Building, Room 4517. Participants should arrive at the C Street entrance of the Harry S Truman Building before 11:30 a.m. for visitor screening. Participants will be met inside the building at that entrance and will be escorted to Room 4517. If you are unable to attend the public meeting and would like to participate from a remote location, teleconferencing will be available. Public Participation: This meeting is open to the public, subject to the capacity of the meeting room. Access to building is strictly controlled. For pre-clearance purposes, those planning to attend in person are requested to email at pil@state.gov providing full name, address, date of birth, citizenship, driver’s license or passport number, affiliation, and email address. This will greatly facilitate entry. Participants will be met inside the diplomatic entrance at C Street and, once badges are obtained, escorted to the meeting room. A member of the public needing reasonable accommodation should provide an email requesting accommodations to pil@state.gov no later than a week before the meeting. Requests made after that date will be E:\FR\FM\28OCN1.SGM 28OCN1

Agencies

[Federal Register Volume 78, Number 208 (Monday, October 28, 2013)]
[Notices]
[Pages 64258-64259]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-25293]



[[Page 64258]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70735; File No. SR-BOX-2013-49]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the Fee Schedule To Include the Series 56 Examination Fee 
Information

October 22, 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 October 16, 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 the 
Substance of the Proposed Rule Change

    The Exchange is filing with the Securities and Exchange Commission 
(``Commission'') a proposed rule change to amend the Fee Schedule on 
the BOX Market LLC (``BOX'') options facility to include the Series 56 
examination fee information. 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 http://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, the Proposed Rule Change

1. Purpose
    The Exchange recently amended the Fee Schedule for trading on BOX 
to establish fees for the Proprietary Trader Program (S501) Continuing 
Education Regulatory Element Session.\5\ The Exchange now proposes to 
make a clarifying change to specify the fee for the corresponding 
Proprietary Trader Qualification Examination (``Series 56'') on the Fee 
Schedule.
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 70255 (August 26, 
2013), 78 FR 53812 (August 30, 2013) (Notice of Filing and Immediate 
Effectiveness of SR-BOX-2013-42).
---------------------------------------------------------------------------

    Specifically, the Exchange proposes to add the $195.00 fee per 
person, per Series 56 examination to the Fee Schedule. This fee 
reflects both the cost of the examination and the costs incurred in 
maintaining and developing the examination and continuing education 
program to ensure their content is and continues to be adequate in 
testing the competence and knowledge generally applicable to 
proprietary trading. The $60.00 per person, per session fee for the 
S501 continuing education requirement is already contained within the 
Fee Schedule and the Exchange believes including both fees in the Fee 
Schedule would clarify the full cost of the exam to Participants. The 
Series 56 examination is administered by the Financial Industry 
Regulatory Authority (``FINRA'') on behalf of the Exchange.\6\
---------------------------------------------------------------------------

    \6\ Participants would continue to submit the exam fee, as well 
as the fee for continuing education, to FINRA; the Exchange will not 
invoice or collect these fees.
---------------------------------------------------------------------------

    The Exchange permits each person associated with a Participant who 
is included within the definition of Representative to register as a 
Limited Representative--Proprietary Trader if his activities in the 
investment banking or securities business are limited solely to 
proprietary trading; and he passes the appropriate Qualification 
Examination for Limited Representative--Proprietary Trader, the Series 
56; and he is an associated person of a proprietary trading firm.\7\
---------------------------------------------------------------------------

    \7\ See Exchange Rule 2020(b)(2)(i). Under Exchange Rule 
2020(e)(2) a proprietary trading firm is a Participant that trades 
its own capital, that does not have customers, and that is not a 
member of the Financial Industry Regulatory Authority. In addition, 
to qualify for this definition, the funds used by a proprietary 
trading firm must be exclusively firm funds, all trading must be in 
the firm's accounts, and traders must be owners of, employees of, or 
contractors to the firm.
---------------------------------------------------------------------------

    The Exchange's Fee Schedule does not currently set forth the fees 
applicable for the Series 7 and its continuing education program (S101) 
as these programs are within FINRA's jurisdiction and collected by 
FINRA from its members. On the contrary, the Series 56 and its 
continuing education requirements apply to Participants that are not 
required by Section 15(b)(8) of the Act \8\ to become a FINRA member. 
Therefore, the Exchange believes including these fees in the Fee 
Schedule will clarify the costs related to this exam and its continuing 
education.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78o(b)(8).
---------------------------------------------------------------------------

    Additionally, the Exchange proposes to make clarifying changes to 
the fee schedule to make certain that the differences between these two 
related fees, the Series 56 examination fee and the S501 continuing 
education fee, are clear.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act, in general, and Section 
6(b)(4) and 6(b)(5)of the Act,\9\ 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange is proposing to include additional information about a 
relevant fee for the sake of clarity. On behalf of the exchanges, FINRA 
incurs costs in maintaining and developing the examination and 
continuing education program to ensure their content is and continues 
to be adequate in testing the competence and knowledge generally 
applicable to proprietary trading. The Exchange believes the Series 56 
examination fee is reasonable as it is designed to allow FINRA to cover 
its cost of administering the Series 56 exam program on behalf of the 
Exchange. The fee for the Series 56 exam is greater than the fee for 
continuing education because the exam fee is also designed to cover the 
costs associated with developing not just the Series 56 exam, but also 
the related S501 continuing education program. The Exchange also 
believes this fee is reasonable because it understands that other 
exchanges will be assessing an identical fee to be collected by FINRA 
for the Series 56 exam. In addition, the Exchange believes this fee is 
equitably allocated and not unfairly discriminatory as it will apply 
uniformly to all Participants

[[Page 64259]]

who chose to take the Series 56 examination.

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 proposed change is designed 
to provide greater specificity and clarity within the Fee Schedule with 
respect to the fees related to the Series 56 exam and does not impose 
any burden on intermarket competition because other exchanges will be 
assessing an identical fee for the Series 56 exam.

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 Effectiveness

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Exchange Act \10\ and Rule 19b-4(f)(2) 
thereunder,\11\ because it establishes or changes a due, or fee.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend the rule 
change if it appears to the Commission that the action is necessary or 
appropriate in the public interest, for the protection of investors, or 
would otherwise further the purposes of the Act. 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-BOX-2013-49 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-2013-49. 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 (http://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-2013-49 and should be 
submitted on or before November 18, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-25293 Filed 10-25-13; 8:45 am]
BILLING CODE 8011-01-P