Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (“BOX”) Options Facility, 8803-8805 [2016-03527]
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Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Notices
to determine whether the proposed rule
change should be 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 modified by Amendment No.
1, 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 No. SR–
EDGA–2016–02 on the subject line.
Paper Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
• 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 No.
SR–EDGA–2016–02. 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 will also 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 No. SR–EDGA–
2016–02 and should be submitted on or
before March 14, 2016.
55 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
19:03 Feb 19, 2016
Jkt 238001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.55
Brent J. Fields,
Secretary.
[FR Doc. 2016–03524 Filed 2–19–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
8803
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Pamela
Dyson, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o Remi Pavlik-Simon,
100 F Street NE., Washington, DC 20549
or send an email to: PRA_Mailbox@
sec.gov. Comments must be submitted to
OMB within 30 days of this notice.
Dated: February 16, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016–03522 Filed 2–19–16; 8:45 am]
Extension:
Schedule 14D–1F, SEC File No. 270–338,
OMB Control No. 3235–0376.
BILLING CODE 8011–01–P
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget this
request for extension of the previously
approved collection of information
discussed below.
Schedule 14D–1F (17 CFR 240.14d–
102) is a form that may be used by any
person (the ‘‘bidder’’) making a cash
tender or exchange offer for securities of
any issuer (the ‘‘target’’) incorporated or
organized under the laws of Canada or
any Canadian province or territory that
is a foreign private issuer, where less
than 40% of the outstanding class of the
target’s securities that is the subject of
the offer is held by U.S. holders.
Schedule 14D–1F is designed to
facilitate cross-border transactions in
the securities of Canadian issuers. The
information required to be filed with the
Commission provides security holders
with material information regarding the
bidder as well as the transaction so that
they may make informed investment
decisions. The information provided is
mandatory and all information is made
available to the public upon request.
Schedule 14D–1F takes approximately 2
hours per response to prepare and is
filed by approximately 2 respondents
annually for a total reporting burden of
4 hours (2 hours per response × 2
responses).
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
The public may view the background
documentation for this information
collection at the following Web site,
www.reginfo.gov. Comments should be
SECURITIES AND EXCHANGE
COMMISSION
PO 00000
Frm 00123
Fmt 4703
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[Release No. 34–77144; File No. SR–BOX–
2016–07]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
the Fee Schedule on the BOX Market
LLC (‘‘BOX’’) Options Facility
February 16, 2016.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on February
5, 2016, BOX Options Exchange LLC
(the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘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 to make two
changes to the Volume Based Rebates
for Market Makers in Non-Auction
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
E:\FR\FM\22FEN1.SGM
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Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Notices
Transactions. First, the Exchange
proposes to specify that transactions
which are not the result of a Market
Maker quotation will be considered
exempt from the Tiered Volume Rebate
for Market Makers in Non-Auction
Transactions. Additionally, the
Exchange proposes to amend the
structure and distinguish between
whether the Market Maker is a liquidity
provider or a liquidity taker within the
transactions. Market Makers will no
longer be eligible for a rebate on their
Non-Auction Transactions which take
liquidity. Market Maker transactions
which take liquidity or are not the result
of a Market Maker quote will continue
to count toward the Market Maker’s
overall executed volume on BOX each
month. 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
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Section I.A.1 of the BOX Fee Schedule
(Tiered Volume Rebate for Non-Auction
Transactions).
The Exchange currently provides
tiered rebates to Public Customers and
Market Makers in Non-Auction
Transaction who achieve certain volume
based thresholds. The Exchange
calculates percentage thresholds on a
monthly basis by totaling the Market
Maker or Public Customer’s executed
volume on BOX, relative to the total
national Market Maker or Customer
volume in multiply-listed options
classes.
The Exchange proposes to make two
changes to the Volume Based Rebates
for Market Makers in Non-Auction
Transactions. First, the Exchange
proposes to specify that transactions
which are not the result of a Market
Maker quotation will be considered
exempt from the Tiered Volume Rebate
for Market Makers in Non-Auction
Transactions. Additionally, the
Exchange proposes to amend the
structure and distinguish between
whether the Market Maker is a liquidity
provider or a liquidity taker within the
transactions. Market Makers will no
longer be eligible for a rebate on their
Non-Auction Transactions which take
liquidity. Market Maker transactions
which take liquidity or are not the result
of a Market Maker quote will continue
to count toward the Market Maker’s
overall executed volume on BOX each
month.
The new per contract rebate for
Market Makers in Non-Auction
Transactions as set forth in Section
I.A.1. of the BOX Fee Schedule will be
as follows:
Percentage thresholds of national market maker volume in
multiply-listed options classes
(monthly)
Tier
1
2
3
4
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.
.......................................................
.......................................................
.......................................................
.......................................................
Per contract rebate
Maker
0.000%–0.069% ........................................................................................
0.070%–0.249% ........................................................................................
0.250%–0.299% ........................................................................................
0.300% and Above ....................................................................................
$0.00
($0.03)
($0.05)
($0.10)
Taker
$0.00
$0.00
$0.00
$0.00
Per contract rebate
Percentage thresholds of national customer
volume in multiply-listed options classes
(monthly)
Tier
Penny pilot classes
Maker
mstockstill on DSK4VPTVN1PROD with NOTICES
1
2
3
4
....................................
....................................
....................................
....................................
0.000%–0.129% ...................................................
0.130%–0.339% ...................................................
0.340%–0.549% ...................................................
0.550% and Above ..............................................
The Exchange also proposes to make
non-substantive technical changes to the
date and volume based fees and rebates
within the BOX Fee Schedule.
Specifically, the Exchange proposes to
relabel the highest tier within each
structure to clarify what percentage of
volume is needed to qualify for the tier.
The Exchange also proposes to remove
the reference date at the beginning of
the BOX Fee Schedule.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,
VerDate Sep<11>2014
19:03 Feb 19, 2016
Jkt 238001
$0.00
($0.15)
($0.25)
($0.40)
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 the
proposed changes to the Tiered Volume
Rebates for Market Makers in NonAuction Transactions are reasonable,
equitable and not unfairly
discriminatory.
5 15
PO 00000
U.S.C. 78f(b)(4) and (5).
Frm 00124
Fmt 4703
Sfmt 4703
Non-Penny pilot classes
Taker
$0.00
($0.15)
($0.25)
($0.40)
Maker
$0.00
($0.40)
($0.50)
($0.90)
Taker
$0.00
($0.40)
($0.50)
($0.70)
Specifically, the Exchange believes
that exempting transactions which are
not the result of Market Maker quote
from the Market Maker Tiered Volume
Rebate is reasonable, equitable and not
unfairly discriminatory. BOX provides
these volume based rebates to
incentivize Market Makers to direct
order flow to the Exchange to obtain the
benefit of the rebate, which will in turn
benefit all market participants by
increasing liquidity on the Exchange.
The Exchange believes by providing a
rebate to only those transactions that are
the result of a quote, Market Makers will
E:\FR\FM\22FEN1.SGM
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Federal Register / Vol. 81, No. 34 / Monday, February 22, 2016 / Notices
be further encouraged to direct liquidity
to BOX.
The Exchange believes it is reasonable
to amend the structure of the Tiered
Volume Rebates for Market Makers in
Non-Auction Transactions to
distinguish whether the Market Maker is
a liquidity provider or liquidity taker,
and remove the rebate for Market
Makers that take liquidity. As stated
above, the volume thresholds and
applicable rebates are meant to
incentivize Market Makers to direct
order flow to the Exchange to obtain the
benefit of the rebate, which will in turn
benefit all market participants by
increasing liquidity on the Exchange.
The Exchange notes that, while certain
Market Maker transactions will no
longer receive a rebate, Market Maker
Non-Auction transaction fees remain
lower than other account types and are
in line with the Market Maker fees at
other exchanges.6
In summary, the proposed changes to
the Market Maker Tiered Volume Rebate
are intended to attract order flow to the
Exchange by incentivizing Market
Makers to post liquidity on BOX. The
practice of providing incentives to
increase order flow is, and has been, a
common practice in the options
markets. Further, the Exchange believes
it is appropriate to provide incentives
for Market Makers which will result in
greater liquidity and ultimately benefit
all Participants trading on the Exchange.
The Exchange believes that the nonsubstantive technical changes to the
BOX Fee Schedule are reasonable,
equitable and not unfairly
discriminatory. Specifically, the
Exchange believes it is reasonable and
appropriate to clarify the parameters of
those tiers in order for Participants to
better understand what percentage of
volume qualifies for a rebate. The
Exchange also believes it is reasonable
to remove the reference date, as doing
so will reduce investor confusion.
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.
mstockstill on DSK4VPTVN1PROD with NOTICES
6 Market
Makers are charged anywhere from to
$0.05 to $0.29 on the Miami International Securities
Exchange, LLC (‘‘MIAX’’), See the MIAX Fee
Schedule Section I(a)(i) ‘‘Market Maker Transaction
Fees’’ and ‘‘Market Maker Sliding Scale’’; and
charged $0.39 to $0.95 on the NASDAQ OMX BX,
Inc. (‘‘BX Options’’) Chapter XV, Section 2 BX
Options Market—Fees and Rebates; and charged
$0.35 to $1.10 on NASDAQ Stock Market LLC
(‘‘NOM’’) Chapter XV, Section 2 NASDAQ Options
Market—Fees and Rebates.
VerDate Sep<11>2014
19:03 Feb 19, 2016
Jkt 238001
The Exchange believes that amending
the proposed rebate structure for Marker
[sic] Maker Non-Auction Transactions
will not impose a burden on
competition among various Exchange
Participants. The Exchange believes that
the proposed changes will result in
Market Makers being rebated
appropriately for these transactions.
Further, the Exchange believes that this
proposal will enhance competition
between exchanges because it is
designed to allow the Exchange to better
compete with other exchanges for order
flow.
Finally, the Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing exchanges. In
such an environment, the Exchange
must continually review, and consider
adjusting, its fees and credits to remain
competitive with other exchanges. For
the reasons described above, the
Exchange believes that the proposed
rule change reflects this competitive
environment.
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 Act7 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:
7 15
8 17
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00125
Fmt 4703
Sfmt 9990
8805
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–2016–07 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–2016–07. 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–
2016–07, and should be submitted on or
before March 14, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Brent J. Fields,
Secretary.
[FR Doc. 2016–03527 Filed 2–19–16; 8:45 am]
BILLING CODE 8011–01–P
9 17
E:\FR\FM\22FEN1.SGM
CFR 200.30–3(a)(12).
22FEN1
]]>Agencies
[Federal Register Volume 81, Number 34 (Monday, February 22, 2016)]
[Notices]
[Pages 8803-8805]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03527]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77144; File No. SR-BOX-2016-07]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend the Fee Schedule on the BOX Market LLC (``BOX'') Options Facility
February 16, 2016.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 5, 2016, BOX Options Exchange LLC (the ``Exchange'')
filed with the Securities and Exchange Commission (``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 to
make two changes to the Volume Based Rebates for Market Makers in Non-
Auction
[[Page 8804]]
Transactions. First, the Exchange proposes to specify that transactions
which are not the result of a Market Maker quotation will be considered
exempt from the Tiered Volume Rebate for Market Makers in Non-Auction
Transactions. Additionally, the Exchange proposes to amend the
structure and distinguish between whether the Market Maker is a
liquidity provider or a liquidity taker within the transactions. Market
Makers will no longer be eligible for a rebate on their Non-Auction
Transactions which take liquidity. Market Maker transactions which take
liquidity or are not the result of a Market Maker quote will continue
to count toward the Market Maker's overall executed volume on BOX each
month. 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, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Section I.A.1 of the BOX Fee
Schedule (Tiered Volume Rebate for Non-Auction Transactions).
The Exchange currently provides tiered rebates to Public Customers
and Market Makers in Non-Auction Transaction who achieve certain volume
based thresholds. The Exchange calculates percentage thresholds on a
monthly basis by totaling the Market Maker or Public Customer's
executed volume on BOX, relative to the total national Market Maker or
Customer volume in multiply-listed options classes.
The Exchange proposes to make two changes to the Volume Based
Rebates for Market Makers in Non-Auction Transactions. First, the
Exchange proposes to specify that transactions which are not the result
of a Market Maker quotation will be considered exempt from the Tiered
Volume Rebate for Market Makers in Non-Auction Transactions.
Additionally, the Exchange proposes to amend the structure and
distinguish between whether the Market Maker is a liquidity provider or
a liquidity taker within the transactions. Market Makers will no longer
be eligible for a rebate on their Non-Auction Transactions which take
liquidity. Market Maker transactions which take liquidity or are not
the result of a Market Maker quote will continue to count toward the
Market Maker's overall executed volume on BOX each month.
The new per contract rebate for Market Makers in Non-Auction
Transactions as set forth in Section I.A.1. of the BOX Fee Schedule
will be as follows:
----------------------------------------------------------------------------------------------------------------
Percentage thresholds of Per contract rebate
national market maker volume in -------------------------------
Tier multiply-listed options classes
(monthly) Maker Taker
----------------------------------------------------------------------------------------------------------------
1............................................. 0.000%-0.069%................... $0.00 $0.00
2............................................. 0.070%-0.249%................... ($0.03) $0.00
3............................................. 0.250%-0.299%................... ($0.05) $0.00
4............................................. 0.300% and Above................ ($0.10) $0.00
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Percentage Per contract rebate
thresholds of ---------------------------------------------------------------
national Penny pilot classes Non-Penny pilot classes
customer volume ---------------------------------------------------------------
Tier in multiply-
listed options
classes Maker Taker Maker Taker
(monthly)
----------------------------------------------------------------------------------------------------------------
1............................. 0.000%-0.129%... $0.00 $0.00 $0.00 $0.00
2............................. 0.130%-0.339%... ($0.15) ($0.15) ($0.40) ($0.40)
3............................. 0.340%-0.549%... ($0.25) ($0.25) ($0.50) ($0.50)
4............................. 0.550% and Above ($0.40) ($0.40) ($0.90) ($0.70)
----------------------------------------------------------------------------------------------------------------
The Exchange also proposes to make non-substantive technical
changes to the date and volume based fees and rebates within the BOX
Fee Schedule. Specifically, the Exchange proposes to relabel the
highest tier within each structure to clarify what percentage of volume
is needed to qualify for the tier. The Exchange also proposes to remove
the reference date at the beginning of the BOX Fee Schedule.
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 the proposed changes to the Tiered
Volume Rebates for Market Makers in Non-Auction Transactions are
reasonable, equitable and not unfairly discriminatory.
Specifically, the Exchange believes that exempting transactions
which are not the result of Market Maker quote from the Market Maker
Tiered Volume Rebate is reasonable, equitable and not unfairly
discriminatory. BOX provides these volume based rebates to incentivize
Market Makers to direct order flow to the Exchange to obtain the
benefit of the rebate, which will in turn benefit all market
participants by increasing liquidity on the Exchange. The Exchange
believes by providing a rebate to only those transactions that are the
result of a quote, Market Makers will
[[Page 8805]]
be further encouraged to direct liquidity to BOX.
The Exchange believes it is reasonable to amend the structure of
the Tiered Volume Rebates for Market Makers in Non-Auction Transactions
to distinguish whether the Market Maker is a liquidity provider or
liquidity taker, and remove the rebate for Market Makers that take
liquidity. As stated above, the volume thresholds and applicable
rebates are meant to incentivize Market Makers to direct order flow to
the Exchange to obtain the benefit of the rebate, which will in turn
benefit all market participants by increasing liquidity on the
Exchange. The Exchange notes that, while certain Market Maker
transactions will no longer receive a rebate, Market Maker Non-Auction
transaction fees remain lower than other account types and are in line
with the Market Maker fees at other exchanges.\6\
---------------------------------------------------------------------------
\6\ Market Makers are charged anywhere from to $0.05 to $0.29 on
the Miami International Securities Exchange, LLC (``MIAX''), See the
MIAX Fee Schedule Section I(a)(i) ``Market Maker Transaction Fees''
and ``Market Maker Sliding Scale''; and charged $0.39 to $0.95 on
the NASDAQ OMX BX, Inc. (``BX Options'') Chapter XV, Section 2 BX
Options Market--Fees and Rebates; and charged $0.35 to $1.10 on
NASDAQ Stock Market LLC (``NOM'') Chapter XV, Section 2 NASDAQ
Options Market--Fees and Rebates.
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In summary, the proposed changes to the Market Maker Tiered Volume
Rebate are intended to attract order flow to the Exchange by
incentivizing Market Makers to post liquidity on BOX. The practice of
providing incentives to increase order flow is, and has been, a common
practice in the options markets. Further, the Exchange believes it is
appropriate to provide incentives for Market Makers which will result
in greater liquidity and ultimately benefit all Participants trading on
the Exchange.
The Exchange believes that the non-substantive technical changes to
the BOX Fee Schedule are reasonable, equitable and not unfairly
discriminatory. Specifically, the Exchange believes it is reasonable
and appropriate to clarify the parameters of those tiers in order for
Participants to better understand what percentage of volume qualifies
for a rebate. The Exchange also believes it is reasonable to remove the
reference date, as doing so will reduce investor confusion.
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 Exchange believes that amending the proposed rebate structure
for Marker [sic] Maker Non-Auction Transactions will not impose a
burden on competition among various Exchange Participants. The Exchange
believes that the proposed changes will result in Market Makers being
rebated appropriately for these transactions. Further, the Exchange
believes that this proposal will enhance competition between exchanges
because it is designed to allow the Exchange to better compete with
other exchanges for order flow.
Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing exchanges. In such an environment, the Exchange must
continually review, and consider adjusting, its fees and credits to
remain competitive with other exchanges. For the reasons described
above, the Exchange believes that the proposed rule change reflects
this competitive environment.
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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 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-2016-07 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-2016-07. 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-2016-07, and should be
submitted on or before March 14, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Brent J. Fields,
Secretary.
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\9\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2016-03527 Filed 2-19-16; 8:45 am]
BILLING CODE 8011-01-P
