Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Fee Schedule to Permit the Exchange to Exclude from Its Average Daily Volume Calculations Any Trading Day on Which the Exchange Is Closed for Trading Due To an Early Closing Or a Market-Wide Trading Halt, 75644-75645 [2013-29624]
Download as PDF
75644
Federal Register / Vol. 78, No. 239 / Thursday, December 12, 2013 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71025; File No. SR–BOX–
2013–55]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change to Amend the
Fee Schedule to Permit the Exchange
to Exclude from Its Average Daily
Volume Calculations Any Trading Day
on Which the Exchange Is Closed for
Trading Due To an Early Closing Or a
Market-Wide Trading Halt
December 6, 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 November
27, 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.
maindgalligan on DSK5TPTVN1PROD with NOTICES
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 Fee Schedule for trading
on the BOX Market LLC (‘‘BOX’’)
options facility the Fee Schedule to
permit the Exchange to adjust the
average daily volume calculation for any
trading day on which the Exchange is
closed for trading due to an early
closing or a market-wide trading halt.
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
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
16:45 Dec 11, 2013
Jkt 232001
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
permit the Exchange to adjust the
average daily volume (‘‘ADV’’)
calculation for any trading day on
which the Exchange is closed for trading
due to an early closing or a market-wide
trading halt.
In Section I (Exchange Fees) of the
BOX Fee Schedule, the Exchange
provides volume-based incentives for
certain transaction fees. In Section I.A
the Exchange provides a volume-based
incentive to Initiating Participants that
submit Primary Improvement Orders,
Facilitation Orders, or Solicitation
Orders and, on a daily basis, trade a
monthly ADV of more than 5,000
contracts in Auction Transactions on
BOX. Similarly, in Section I.B. the
Exchange provides a volume-based
incentive on all standard transaction
fees to Market Makers that, on a daily
basis, trade a monthly ADV of more
than 5,000 contracts on BOX. In both
Sections the Participant’s monthly ADV
is calculated at the end of each month.
The Exchange is proposing to amend
the BOX Fee Schedule to permit the
Exchange to adjust the ADV calculation
for any trading day where the market is
not open for the entire trading day.
Specifically, in these situations the
Exchange could count any day when the
market closes early due to a holiday
observance as a half day in the
calculation, or exclude from the
calculation any day where the Exchange
declares a trading halt in all securities
or honors a market-wide trading halt
declared by another market. For
example, this would have allowed the
Exchange to exclude August 22, 2013
when trading was halted in Nasdaqlisted securities for three hours across
all exchanges. The Exchange is not
proposing any changes to the monthly
ADV thresholds required to achieve
each volume tier and will issue an
information circular to inform
Participants of any trading day where
the monthly ADV calculations will be
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
adjusted in connection with this
proposed rule change.
The Exchange believes it is
appropriate to adjust the calculation of
monthly ADV for these days because a
Participant will have artificially low
trading volume if the market is not open
for the entire trading day. In the
corresponding monthly ADV
calculation, the numerator for the
calculation (trading volume) will
decrease, while the denominator (the
number of trading days) will remain the
same and not reflect the irregularity that
caused the decrease. This would result
in a lower monthly ADV for the
Participant and could mean that the
Participant is not eligible for a higher
volume tier, and corresponding lower
fee. Accordingly, giving the Exchange
the ability to exclude these days from
the monthly ADV calculation will
ensure this scenario no longer occurs.
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.
The Exchange believes that it is
equitable and reasonable to adjust the
monthly ADV calculations for any
trading day on which the Exchange is
closed for trading due to an early
closing or a market-wide trading halt
because it preserves the Exchange’s
intent behind adopting volume based
fees. The proposed change is nondiscriminatory because it applies
equally to all Participants and to all
volume tiers.
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. With respect
to monthly ADV calculations, the
Exchange notes that there are very few
instances where this change will
actually be invoked, and when invoked,
the Exchange believes the rule will have
little or no impact on trading decisions
or execution quality. To the contrary,
the Exchange believes that the proposed
modification to its ADV calculation is
pro-competitive and will result in lower
total costs to Participants, a positive
5 15
E:\FR\FM\12DEN1.SGM
U.S.C. 78f(b)(4) and (5).
12DEN1
Federal Register / Vol. 78, No. 239 / Thursday, December 12, 2013 / Notices
outcome of competitive markets.
Moreover, other options exchanges have
adopted rules that are similar to the
change in ADV calculation being
proposed by the Exchange.6
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 7 and
Rule 19b–4(f)(2) thereunder,8 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:
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–2013–55 on the subject line.
Paper Comments
maindgalligan on DSK5TPTVN1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
6 See
Securities Exchange Act Release Nos. 70472
(September 23, 2013), 78 FR 59738 (September 27,
2013)(Notice of Filing and Immediate Effectiveness
of SR–PHLX–2013–93); 70470 (September 23, 2013)
78 FR 59740 (September 27, 2013)(Notice of Filing
and Immediate Effectiveness of SR–NASDAQ–
2013–117); and 70657 (October 10, 2013), 78 FR
62899 (October 22, 2013)(Notice of Filing and
Immediate Effectiveness of SR–ISE–2013–51).
7 15 U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b–4(f)(2).
VerDate Mar<15>2010
16:45 Dec 11, 2013
Jkt 232001
All submissions should refer to File
Number SR–BOX–2013–55. 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–
2013–55 and should be submitted on or
before January 2, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013–29624 Filed 12–11–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71011; File No. SR–BX–
2013–057]
75645
27, 2013, NASDAQ OMX BX, Inc. (‘‘BX’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing this proposed
rule change with respect to amendments
of the Restated Certificate of
Incorporation (the ‘‘Charter’’) and ByLaws (the ‘‘By-Laws’’) of its parent
corporation, The NASDAQ OMX Group,
Inc. (‘‘NASDAQ OMX’’ or the
‘‘Company’’). The proposed
amendments will be implemented on a
date designated by NASDAQ OMX
following approval by the Commission.
The text of the proposed rule change is
available on the Exchange’s Web site at
https://nasdaqomxbx.cchwallstreet.com,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
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
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
of Proposed Rule Change To Amend
the Restated Certificate of
Incorporation and By-Laws of the
NASDAQ OMX Group, Inc.
1. Purpose
December 6, 2013.
At NASDAQ OMX’s 2012 annual
meeting held on May 22, 2012,
NASDAQ OMX’s stockholders
considered two proposals submitted by
individual stockholders. The first
proposal, which passed with 68% of the
votes cast, requested that NASDAQ
OMX’s Board take steps to replace each
supermajority voting standard in the
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
NASDAQ OMX is proposing to make
certain amendments to its Charter and
By-Laws.
(i) Background
E:\FR\FM\12DEN1.SGM
12DEN1
Agencies
[Federal Register Volume 78, Number 239 (Thursday, December 12, 2013)]
[Notices]
[Pages 75644-75645]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-29624]
[[Page 75644]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71025; File No. SR-BOX-2013-55]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change to
Amend the Fee Schedule to Permit the Exchange to Exclude from Its
Average Daily Volume Calculations Any Trading Day on Which the Exchange
Is Closed for Trading Due To an Early Closing Or a Market-Wide Trading
Halt
December 6, 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 November 27, 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 Fee Schedule for
trading on the BOX Market LLC (``BOX'') options facility the Fee
Schedule to permit the Exchange to adjust the average daily volume
calculation for any trading day on which the Exchange is closed for
trading due to an early closing or a market-wide trading halt. 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 permit the Exchange to adjust the average daily volume (``ADV'')
calculation for any trading day on which the Exchange is closed for
trading due to an early closing or a market-wide trading halt.
In Section I (Exchange Fees) of the BOX Fee Schedule, the Exchange
provides volume-based incentives for certain transaction fees. In
Section I.A the Exchange provides a volume-based incentive to
Initiating Participants that submit Primary Improvement Orders,
Facilitation Orders, or Solicitation Orders and, on a daily basis,
trade a monthly ADV of more than 5,000 contracts in Auction
Transactions on BOX. Similarly, in Section I.B. the Exchange provides a
volume-based incentive on all standard transaction fees to Market
Makers that, on a daily basis, trade a monthly ADV of more than 5,000
contracts on BOX. In both Sections the Participant's monthly ADV is
calculated at the end of each month.
The Exchange is proposing to amend the BOX Fee Schedule to permit
the Exchange to adjust the ADV calculation for any trading day where
the market is not open for the entire trading day. Specifically, in
these situations the Exchange could count any day when the market
closes early due to a holiday observance as a half day in the
calculation, or exclude from the calculation any day where the Exchange
declares a trading halt in all securities or honors a market-wide
trading halt declared by another market. For example, this would have
allowed the Exchange to exclude August 22, 2013 when trading was halted
in Nasdaq-listed securities for three hours across all exchanges. The
Exchange is not proposing any changes to the monthly ADV thresholds
required to achieve each volume tier and will issue an information
circular to inform Participants of any trading day where the monthly
ADV calculations will be adjusted in connection with this proposed rule
change.
The Exchange believes it is appropriate to adjust the calculation
of monthly ADV for these days because a Participant will have
artificially low trading volume if the market is not open for the
entire trading day. In the corresponding monthly ADV calculation, the
numerator for the calculation (trading volume) will decrease, while the
denominator (the number of trading days) will remain the same and not
reflect the irregularity that caused the decrease. This would result in
a lower monthly ADV for the Participant and could mean that the
Participant is not eligible for a higher volume tier, and corresponding
lower fee. Accordingly, giving the Exchange the ability to exclude
these days from the monthly ADV calculation will ensure this scenario
no longer occurs.
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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that it is equitable and reasonable to adjust
the monthly ADV calculations for any trading day on which the Exchange
is closed for trading due to an early closing or a market-wide trading
halt because it preserves the Exchange's intent behind adopting volume
based fees. The proposed change is non-discriminatory because it
applies equally to all Participants and to all volume tiers.
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. With respect to monthly ADV
calculations, the Exchange notes that there are very few instances
where this change will actually be invoked, and when invoked, the
Exchange believes the rule will have little or no impact on trading
decisions or execution quality. To the contrary, the Exchange believes
that the proposed modification to its ADV calculation is pro-
competitive and will result in lower total costs to Participants, a
positive
[[Page 75645]]
outcome of competitive markets. Moreover, other options exchanges have
adopted rules that are similar to the change in ADV calculation being
proposed by the Exchange.\6\
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release Nos. 70472 (September
23, 2013), 78 FR 59738 (September 27, 2013)(Notice of Filing and
Immediate Effectiveness of SR-PHLX-2013-93); 70470 (September 23,
2013) 78 FR 59740 (September 27, 2013)(Notice of Filing and
Immediate Effectiveness of SR-NASDAQ-2013-117); and 70657 (October
10, 2013), 78 FR 62899 (October 22, 2013)(Notice of Filing and
Immediate Effectiveness of SR-ISE-2013-51).
---------------------------------------------------------------------------
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 \7\ and Rule 19b-4(f)(2)
thereunder,\8\ because it establishes or changes a due or fee.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BOX-2013-55 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-2013-55. 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-2013-55 and should be
submitted on or before January 2, 2014.
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-29624 Filed 12-11-13; 8:45 am]
BILLING CODE 8011-01-P