Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the BOX Fee Schedule To Specify the Frequency With Which the Exchange May Change the Options Regulatory Fee, 69496-69497 [2013-27624]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 78, Number 223 (Tuesday, November 19, 2013)]
[Notices]
[Pages 69496-69497]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-27624]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70858; File No. SR-BOX-2013-52]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the BOX Fee Schedule To Specify the Frequency With Which the 
Exchange May Change the Options Regulatory Fee

November 13, 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 31, 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.
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    \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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing with the Commission a proposed rule change 
to amend the Fee Schedule to specify the frequency with which the 
Exchange may change the Options Regulatory Fee (``ORF'') on the BOX 
Market LLC (``BOX'') options facility. While changes to the fee 
schedule pursuant to this proposal will be effective upon filing, the 
changes will become operative on November 1, 2013. 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 the Fee Schedule for trading on BOX 
to specify the frequency with which the Exchange may change the ORF. 
The Exchange proposes to implement the change effective November 1, 
2013.
    The ORF is assessed by the Exchange on each BOX Options Participant 
for all options transactions executed or cleared by the BOX Options 
Participant that are cleared by The Options Clearing Corporation 
(``OCC'') in the customer range (i.e., transactions that clear in the 
customer account of the BOX Options Participant's clearing firm at OCC) 
regardless of the exchange on which the transaction occurs. The fee is 
collected indirectly from BOX Options Participants through their 
clearing firms by OCC on behalf of the Exchange. The dues and fees paid 
by BOX Options Participants go into the general funds of the Exchange, 
a portion of which is used to help pay the costs of regulation.
    In response to feedback from participants requesting greater 
certainty as to when ORF changes may occur, the Exchange proposes to 
specify in the Fee Schedule that the Exchange may only increase or 
decrease the ORF semi-annually, and any such fee change will be 
effective on the first business day of February or August. The Exchange 
has previously committed to monitor the amount of revenue collected 
from the ORF so that it, in combination with its other regulatory fees 
and fines, does not exceed regulatory costs. In addition to submitting 
a proposed rule change to the Securities and Exchange Commission 
(``Commission'') as required by the Act to increase or decrease the 
ORF, the Exchange will notify Participants via an Informational 
Circular of any anticipated change in the amount of the fee at least 30 
calendar days prior to the effective date of the change. The Exchange 
believes that by providing guidance on the timing of any changes to the 
ORF, the Exchange would make it easier for participants to ensure their 
systems are configured to properly account for the ORF.
    The proposed change is not intended to address any other issues, 
and the Exchange is not aware of any problems that BOX Options 
Participants would have in complying with the proposed change.
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,\5\ 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.
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    \5\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposed change to limit changes to 
the ORF to twice a year on specific dates with advance notice is 
reasonable because it will give participants certainty on the timing of 
changes, if any, and better enable them to properly account for ORF 
charges among their customers. The Exchange believes that the proposed 
change is equitable and not unfairly discriminatory because it will 
apply in the same manner to all BOX Options Participants that are 
subject to the ORF and provide them

[[Page 69497]]

with additional advance notice of changes to that fee.

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 not 
intended to address a competitive issue but rather to provide BOX 
Options Participants with better notice of any change that the Exchange 
may make to the ORF. In any event, because competitors are free to 
modify their own fees and credits in response, and because market 
participants may readily adjust their trading practices, the Exchange 
believes that the degree to which fee or credit changes in this market 
may impose any burden on competition is extremely limited. As a result 
of all of these considerations, the Exchange does not believe that the 
proposed change will impair the ability of BOX Options Participants, or 
competing order execution venues to maintain their competitive standing 
in the financial markets.

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 \6\ and Rule 19b-4(f)(2) 
thereunder,\7\ because it establishes or changes a due, or fee.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 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-2013-52 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-2013-52. 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 the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BOX-2013-52 and should be 
submitted on or before December 10, 2013.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-27624 Filed 11-18-13; 8:45 am]
BILLING CODE 8011-01-P