Justia Agencies And Commissions Securities And Exchange Commission Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Interpretive Material to Rule 7150 (Price Improvement Period “PIP”) and Interpretive Material to Rule 7245 (Complex Order Price Improvement Period “COPIP”) To Extend the Pilot Period That Permit the Exchange To Have No Minimum Size Requirement for Orders Entered Into the PIP and COPIP Until July 18, 2015, 75211-75213 [2014-29621]

Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Interpretive Material to Rule 7150 (Price Improvement Period “PIP”) and Interpretive Material to Rule 7245 (Complex Order Price Improvement Period “COPIP”) To Extend the Pilot Period That Permit the Exchange To Have No Minimum Size Requirement for Orders Entered Into the PIP and COPIP Until July 18, 2015, 75211-75213 [2014-29621]

Download as PDF Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices customers, as well as retaining existing customers. The Exchange has witnessed competitors creating new products and innovative pricing in this space over the course of the past year. NASDAQ continues to see firms challenge its pricing on the basis of the Exchange’s explicit fees being higher than the zeropriced fees from other competitors such as BATS. In all cases, firms make decisions on how much and what types of data to consume on the basis of the total cost of interacting with NASDAQ or other exchanges. Of course, the explicit data fees are but one factor in a total platform analysis. Some competitors have lower transactions fees and higher data fees, and others are vice versa. For example, NOM offers one distributor fee which allows firms to access both the BONO and ITTO data feeds. The market for this information is highly competitive and continually evolves as products develop and change. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. mstockstill on DSK4VPTVN1PROD with NOTICES 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 Act.6 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 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, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: • Send an email to rule-comments@ sec.gov. Please include File Number SR– NASDAQ–2014–119 on the subject line. Paper Comments • Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2014–119. 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 Website 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 offices 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– NASDAQ–2014–119, and should be submitted on or before January 7, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–29499 Filed 12–16–14; 8:45 am] BILLING CODE 8011–01–P Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73831; File No. SR–BOX– 2014–27] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Interpretive Material to Rule 7150 (Price Improvement Period ‘‘PIP’’) and Interpretive Material to Rule 7245 (Complex Order Price Improvement Period ‘‘COPIP’’) To Extend the Pilot Period That Permit the Exchange To Have No Minimum Size Requirement for Orders Entered Into the PIP and COPIP Until July 18, 2015 December 12, 2014. 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 December 5, 2014, BOX Options Exchange LLC (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Interpretive Material to Rule 7150 (Price Improvement Period ‘‘PIP’’) and Interpretive Material to Rule 7245 (Complex Order Price Improvement Period ‘‘COPIP’’) to extend the pilot programs that permit the Exchange to have no minimum size requirement for orders entered into the PIP (‘‘PIP Pilot Program’’) and COPIP (‘‘COPIP Pilot Program’’). 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 self-regulatory organization 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 1 15 6 15 U.S.C. 78s(b)(3)(a)[sic](ii). VerDate Sep<11>2014 19:49 Dec 16, 2014 7 17 Jkt 235001 PO 00000 CFR 200.30–3(a)(12). Frm 00098 Fmt 4703 2 17 Sfmt 4703 75211 E:\FR\FM\17DEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 17DEN1 75212 Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices the places specified in Item IV below. The self-regulatory organization 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 mstockstill on DSK4VPTVN1PROD with NOTICES 1. Purpose The purpose of the proposed rule change is to extend the PIP and COPIP Pilot Programs for an additional seven months or until the date on which the pilot programs are approved on a permanent basis, whichever is earlier. The PIP and COPIP Pilot Programs allow the Exchange to have no minimum size requirement for orders entered into the PIP 3 and the COPIP.4 The Exchange has committed to provide 3 The PIP Pilot Program is currently set to expire on December 18, 2014. See Securities Exchange Act Release Nos. 66871 (April 27, 2012) 77 FR 26323 (May 3, 2012) (File No.10–206, In the Matter of the Application of BOX Options Exchange LLC for Registration as a National Securities Exchange Findings, Opinion, and Order of the Commission), 67255 (June 26, 2012) 77 FR 39315 (July 2, 2013) (SR–BOX–2012–009) (Notice of Filing and Immediate Effectiveness of a Proposal To Extend a Pilot Program That Permits BOX to Have No Minimum Size Requirement for Orders Entered Into the Price Improvement Period), 69846 (June 25, 2013) 78 FR 39365 (July 1, 2013) (SR–BOX–2013– 33) (Notice of Filing and Immediate Effectiveness of a Proposal To Extend a Pilot Program That Permits BOX to Have No Minimum Size Requirement for Orders Entered Into the Price Improvement Period), 72545 (July 7, 2014) 79 FR 40182 (July 11, 2014) (SR–BOX–2014–19) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to amend Interpretive Material to Rule 7150 (Price Improvement Period ‘‘PIP’’) and Interpretive Material to Rule 7245 (Complex Order Price Improvement Period ‘‘COPIP’’), and 73314 (October 7, 2014) 79 FR 61682 (October 14, 2014) (SR–BOX– 2014–23) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Programs That Permit the Exchange To Have No Minimum Size Requirement for Orders Entered Into the PIP (‘‘PIP Pilot Program’’) and COPIP (‘‘COPIP Pilot Program’’) Until December 18, 2014). 4 The COPIP Pilot Program is currently set to expire on December 18, 2014. See Securities Exchange Act Release Nos. 71148 (December 19, 2013) 78 FR 78437 (December 26, 2013) (Notice of Filing of Amendment Nos. 1 and 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, to Permit Complex Orders to Participate in Price Improvement Periods), 72545 (July 7, 2014) 79 FR 40182 (July 11, 2014) (SR–BOX–2014–19) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to amend Interpretive Material to Rule 7150 (Price Improvement Period ‘‘PIP’’) and Interpretive Material to Rule 7245 (Complex Order Price Improvement Period ‘‘COPIP’’), and 73314 (October 7, 2014) 79 FR 61682 (October 14, 2014) (SR–BOX–2014–23) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Programs That Permit the Exchange To Have No Minimum Size Requirement for Orders Entered Into the PIP (‘‘PIP Pilot Program’’) and COPIP (‘‘COPIP Pilot Program’’) Until December 18, 2014). VerDate Sep<11>2014 19:49 Dec 16, 2014 Jkt 235001 certain data to the Commission during the PIP and COPIP Pilot Programs.5 The proposed rule change retains the text of IM–7150–1 to Rule 7150 and IM–7245– 1 to Rule 7245; and seeks to extend the operation of the PIP and COPIP Pilot Programs until July 18, 2015. The Exchange notes that the PIP and COPIP Pilot Programs permit Participants to trade with their customer orders that are less than 50 contracts. In particular, any order entered into the PIP is guaranteed an execution at the end of the auction at a price at least equal to the national best bid or offer. Any order entered into the COPIP is guaranteed an execution at the end of the auction at a price at least equal to or better than the cNBBO,6 cBBO 7 and BBO on the Complex Order Book for the Strategy at the time of commencement. In further support of this proposed rule change, the Exchange will submit to the Commission monthly a PIP Pilot Program Report and a COPIP Pilot Program Report, offering detailed data from, and analysis of, the PIP Pilot Program and COPIP Pilot Program. The Exchange believes that, by extending the expiration of the PIP and COPIP Pilot Programs, the proposed rule change will allow for further analysis of the PIP and COPIP Pilot Programs and a determination of how the PIP and COPIP Pilot Programs shall be structured in the future. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act,8 in general, and Section 6(b)(5) of the Act,9 in particular, in that it is designed to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism for a free and open market and a national market system and, in general, to protect investors and the public interest. The Exchange believes that the data demonstrates that there is sufficient investor interest and demand to extend the PIP and COPIP Pilot Programs for an additional seven 5 See supra note 3 at 26334 and note 4 at 78441. defined in BOX Rule 7240(a)(3), the term ‘‘cNBBO’’ means the best net bid and offer price for a Complex Order Strategy based on the NBBO for the individual options components of such Strategy. 7 As defined in BOX Rule 7240(a)(1), the term ‘‘cBBO’’ means the best net bid and offer price for a Complex Order Strategy based on the BBO on the BOX Book for the individual options components of such Strategy. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(5). months or until the date on which the pilot programs are approved on a permanent basis, whichever is earlier. The Exchange represents that the PIP and COPIP Pilot Programs are designed to create tighter markets and ensure that each order receives the best possible price. 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. Specifically, the Exchange believes that, by extending the expiration of the PIP and COPIP Pilot Programs, the proposed rule change will allow for further analysis of the PIP and COPIP Pilot Programs and a determination of how the PIP and COPIP Pilot Programs shall be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 10 and Rule 19b–4(f)(6) 11 thereunder because the proposal does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) by its terms, become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest.12 A proposed rule change filed under Rule 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing. However, Rule 19b– 6 As PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 10 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 12 In addition, Rule 19b–4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange’s intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 11 17 E:\FR\FM\17DEN1.SGM 17DEN1 Federal Register / Vol. 79, No. 242 / Wednesday, December 17, 2014 / Notices 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– 2014–27 and should be submitted on or before January 7, 2015. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Kevin M. O’Neill, Deputy Secretary. 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–2014–27 on the subject line. mstockstill on DSK4VPTVN1PROD with NOTICES 4(f)(6)(iii) 13 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay period so the pilot programs can continue without interruption. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest, as it will allow the pilot programs to continue uninterrupted, thereby avoiding any potential investor confusion that could result from a temporary interruption in the pilot programs. For these reasons, the Commission designates the proposed rule change to be operative on December 18, 2014.14 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 Act.15 SECURITIES AND EXCHANGE COMMISSION Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–BOX–2014–27. 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 13 17 CFR 240.19b–4(f)(6)(iii). purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 15 15 U.S.C. 78s(b)(3)(C). 14 For VerDate Sep<11>2014 19:49 Dec 16, 2014 Jkt 235001 [FR Doc. 2014–29621 Filed 12–16–14; 8:45 am] 75213 change to amend Rule 6.2A to authorize the Exchange to share any Userdesignated risk settings in Exchange systems with the Clearing Member 3 that clears transactions on behalf of the User.4 The proposed rule change was published for comment in the Federal Register on October 7, 2014.5 On November 19, 2014, the Exchange submitted Amendment No. 1 to the proposed rule change.6 On November 21, 2014, pursuant to Section 19(b)(2) of the Exchange Act,7 the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.8 The Commission received no comments on the proposal. The Commission is publishing this notice to solicit comments from interested persons on Amendment No. 1 to the proposed rule change and is approving the proposed rule change, as modified by Amendment No. 1 thereto, on an accelerated basis. II. Description of the Proposal The Exchange proposes to amend Exchange Rule 6.2A (Access to and Conduct on OX) to state that the Exchange may share any Userdesignated risk settings in the BILLING CODE 8011–01–P [Release No. 34–73818; File No. SR– NYSEArca–2014–110] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1 Thereto, Amending Rule 6.2A To Authorize the Exchange to Share Any User-Designated Risk Settings in Exchange Systems With the Clearing Member That Clears Transactions on Behalf of the User December 11, 2014. I. Introduction On September 19, 2014, NYSE Arca, Inc., (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 3 See Exchange Rule 6.1(b)(3) defining ‘‘Clearing Member’’ as ‘‘an Exchange OTP Firm or OTP Holder which has been admitted to membership in the Options Clearing Corporation pursuant to the provisions of the Rules of the Options Clearing Corporation.’’ 4 See Exchange Rule 6.1A(a)(19) defining ‘‘User’’ as ‘‘any OTP Holder, OTP Firm or Sponsored Participant that is authorized to obtain access to OX pursuant to Rule 6.2A.’’ 5 See Securities Exchange Act Release No. 73281 (October 1, 2014), 79 FR 60552 (‘‘Notice’’). 6 In Amendment No. 1, the Exchange provided additional justification for why the Exchange believes the proposed rule change is consistent with the Act. In Amendment No. 1, the Exchange states, among other things, that the Exchange believes that sharing a User’s risk settings directly with its Clearing Member could reduce the administrative burden on Users to provide that information to their Clearing Members themselves and notes that any User could become a Clearing Member, which would allow the User to avoid sharing its risk settings with any third party. Amendment No. 1 has been placed in the public comment file for SR– NYSEArca–2014–110 at https://www.sec.gov/ comments/sr-nysearca-2014-110/nysearca20141101.pdf (See letter to Kevin M. O’Neill, Deputy Secretary, Commission, from Martha Redding, Chief Counsel and Assistant Corporate Secretary, New York Stock Exchange, dated November 20, 2014) and is also available on the Exchange’s Web site. 7 15 U.S.C. 78s(b)(2). 8 See Securities Exchange Act Release No. 34– 73668, 79 FR 70607 (November 26, 2014). The Commission designated January 5, 2014 as the date by which it should approve, disapprove, or institute proceedings to determine whether to disapprove the proposed rule change. E:\FR\FM\17DEN1.SGM 17DEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 79, Number 242 (Wednesday, December 17, 2014)]
[Notices]
[Pages 75211-75213]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-29621]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73831; File No. SR-BOX-2014-27]

Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Interpretive Material to Rule 7150 (Price Improvement Period
``PIP'') and Interpretive Material to Rule 7245 (Complex Order Price
Improvement Period ``COPIP'') To Extend the Pilot Period That Permit
the Exchange To Have No Minimum Size Requirement for Orders Entered
Into the PIP and COPIP Until July 18, 2015

December 12, 2014.
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 December 5, 2014, BOX Options Exchange LLC (``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I and II below, which Items have been
prepared by the self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule from
interested persons.
---------------------------------------------------------------------------

\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to amend Interpretive Material to Rule 7150
(Price Improvement Period ``PIP'') and Interpretive Material to Rule
7245 (Complex Order Price Improvement Period ``COPIP'') to extend the
pilot programs that permit the Exchange to have no minimum size
requirement for orders entered into the PIP (``PIP Pilot Program'') and
COPIP (``COPIP Pilot Program''). 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 self-regulatory organization
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

[[Page 75212]]

the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
The purpose of the proposed rule change is to extend the PIP and
COPIP Pilot Programs for an additional seven months or until the date
on which the pilot programs are approved on a permanent basis,
whichever is earlier. The PIP and COPIP Pilot Programs allow the
Exchange to have no minimum size requirement for orders entered into
the PIP \3\ and the COPIP.\4\ The Exchange has committed to provide
certain data to the Commission during the PIP and COPIP Pilot
Programs.\5\ The proposed rule change retains the text of IM-7150-1 to
Rule 7150 and IM-7245-1 to Rule 7245; and seeks to extend the operation
of the PIP and COPIP Pilot Programs until July 18, 2015.
---------------------------------------------------------------------------

\3\ The PIP Pilot Program is currently set to expire on December
18, 2014. See Securities Exchange Act Release Nos. 66871 (April 27,
2012) 77 FR 26323 (May 3, 2012) (File No.10-206, In the Matter of
the Application of BOX Options Exchange LLC for Registration as a
National Securities Exchange Findings, Opinion, and Order of the
Commission), 67255 (June 26, 2012) 77 FR 39315 (July 2, 2013) (SR-
BOX-2012-009) (Notice of Filing and Immediate Effectiveness of a
Proposal To Extend a Pilot Program That Permits BOX to Have No
Minimum Size Requirement for Orders Entered Into the Price
Improvement Period), 69846 (June 25, 2013) 78 FR 39365 (July 1,
2013) (SR-BOX-2013-33) (Notice of Filing and Immediate Effectiveness
of a Proposal To Extend a Pilot Program That Permits BOX to Have No
Minimum Size Requirement for Orders Entered Into the Price
Improvement Period), 72545 (July 7, 2014) 79 FR 40182 (July 11,
2014) (SR-BOX-2014-19) (Notice of Filing and Immediate Effectiveness
of a Proposed Rule Change to amend Interpretive Material to Rule
7150 (Price Improvement Period ``PIP'') and Interpretive Material to
Rule 7245 (Complex Order Price Improvement Period ``COPIP''), and
73314 (October 7, 2014) 79 FR 61682 (October 14, 2014) (SR-BOX-2014-
23) (Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change To Extend the Pilot Programs That Permit the Exchange To Have
No Minimum Size Requirement for Orders Entered Into the PIP (``PIP
Pilot Program'') and COPIP (``COPIP Pilot Program'') Until December
18, 2014).
\4\ The COPIP Pilot Program is currently set to expire on
December 18, 2014. See Securities Exchange Act Release Nos. 71148
(December 19, 2013) 78 FR 78437 (December 26, 2013) (Notice of
Filing of Amendment Nos. 1 and 2 and Order Granting Accelerated
Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1
and 2, to Permit Complex Orders to Participate in Price Improvement
Periods), 72545 (July 7, 2014) 79 FR 40182 (July 11, 2014) (SR-BOX-
2014-19) (Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change to amend Interpretive Material to Rule 7150 (Price
Improvement Period ``PIP'') and Interpretive Material to Rule 7245
(Complex Order Price Improvement Period ``COPIP''), and 73314
(October 7, 2014) 79 FR 61682 (October 14, 2014) (SR-BOX-2014-23)
(Notice of Filing and Immediate Effectiveness of a Proposed Rule
Change To Extend the Pilot Programs That Permit the Exchange To Have
No Minimum Size Requirement for Orders Entered Into the PIP (``PIP
Pilot Program'') and COPIP (``COPIP Pilot Program'') Until December
18, 2014).
\5\ See supra note 3 at 26334 and note 4 at 78441.
---------------------------------------------------------------------------

The Exchange notes that the PIP and COPIP Pilot Programs permit
Participants to trade with their customer orders that are less than 50
contracts. In particular, any order entered into the PIP is guaranteed
an execution at the end of the auction at a price at least equal to the
national best bid or offer. Any order entered into the COPIP is
guaranteed an execution at the end of the auction at a price at least
equal to or better than the cNBBO,\6\ cBBO \7\ and BBO on the Complex
Order Book for the Strategy at the time of commencement. In further
support of this proposed rule change, the Exchange will submit to the
Commission monthly a PIP Pilot Program Report and a COPIP Pilot Program
Report, offering detailed data from, and analysis of, the PIP Pilot
Program and COPIP Pilot Program.
---------------------------------------------------------------------------

\6\ As defined in BOX Rule 7240(a)(3), the term ``cNBBO'' means
the best net bid and offer price for a Complex Order Strategy based
on the NBBO for the individual options components of such Strategy.
\7\ As defined in BOX Rule 7240(a)(1), the term ``cBBO'' means
the best net bid and offer price for a Complex Order Strategy based
on the BBO on the BOX Book for the individual options components of
such Strategy.
---------------------------------------------------------------------------

The Exchange believes that, by extending the expiration of the PIP
and COPIP Pilot Programs, the proposed rule change will allow for
further analysis of the PIP and COPIP Pilot Programs and a
determination of how the PIP and COPIP Pilot Programs shall be
structured in the future.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\8\ in general, and Section
6(b)(5) of the Act,\9\ in particular, in that it is designed to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism for a free and open market and a national market
system and, in general, to protect investors and the public interest.
The Exchange believes that the data demonstrates that there is
sufficient investor interest and demand to extend the PIP and COPIP
Pilot Programs for an additional seven months or until the date on
which the pilot programs are approved on a permanent basis, whichever
is earlier. The Exchange represents that the PIP and COPIP Pilot
Programs are designed to create tighter markets and ensure that each
order receives the best possible price.
---------------------------------------------------------------------------

\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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. Specifically, the Exchange
believes that, by extending the expiration of the PIP and COPIP Pilot
Programs, the proposed rule change will allow for further analysis of
the PIP and COPIP Pilot Programs and a determination of how the PIP and
COPIP Pilot Programs shall be structured in the future. In doing so,
the proposed rule change will also serve to promote regulatory clarity
and consistency, thereby reducing burdens on the marketplace and
facilitating investor protection.

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

The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) \11\ thereunder
because the proposal does not: (i) Significantly affect the protection
of investors or the public interest; (ii) impose any significant burden
on competition; and (iii) by its terms, become operative for 30 days
from the date on which it was filed, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to
give the Commission written notice of the Exchange's intent to file
the proposed rule change, along with a brief description and text of
the proposed rule change, at least five business days prior to the
date of filing of the proposed rule change, or such shorter time as
designated by the Commission. The Exchange has satisfied this
requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.
However, Rule 19b-

[[Page 75213]]

4(f)(6)(iii) \13\ permits the Commission to designate a shorter time if
such action is consistent with the protection of investors and the
public interest. The Exchange has requested that the Commission waive
the 30-day operative delay period so the pilot programs can continue
without interruption. The Commission believes that waiving the 30-day
operative delay is consistent with the protection of investors and the
public interest, as it will allow the pilot programs to continue
uninterrupted, thereby avoiding any potential investor confusion that
could result from a temporary interruption in the pilot programs. For
these reasons, the Commission designates the proposed rule change to be
operative on December 18, 2014.\14\
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\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 Act.\15\
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\15\ 15 U.S.C. 78s(b)(3)(C).
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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-2014-27 on the subject line.

Paper Comments

Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-BOX-2014-27. 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-2014-27 and should be
submitted on or before January 7, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-29621 Filed 12-16-14; 8:45 am]
BILLING CODE 8011-01-P

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