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, 70222-70224 [2016-24425]
Download as PDF
<![CDATA[
70222
Federal Register / Vol. 81, No. 196 / Tuesday, October 11, 2016 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 45 and Rule 19b–
4(f)(6) thereunder.46
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.
The Exchange has requested that the
SEC waive the 30-day operative period.
The Commission believes that waiving
the 30-day operative delay is consistent
with the protection of investors and the
public interest because it will allow the
Exchange to implement the proposed
rules immediately thereby preventing
delays in the implementation of the
Plan. The Commission notes that the
Plan is scheduled to start on October 3,
2016. Therefore, the Commission hereby
waives the 30-day operative delay and
designates the proposed rule change to
be operative upon filing with the
Commission.47
IV. Solicitation of Comments
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–IEX–2016–16. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–IEX–
2016–16, and should be submitted on or
before November 1, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.48
Robert W. Errett,
Deputy Secretary.
Electronic Comments
asabaliauskas on DSK3SPTVN1PROD with NOTICES
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:
[FR Doc. 2016–24421 Filed 10–7–16; 8:45 am]
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR– IEX–2016–16 on the
subject line.
BILLING CODE 8011–01–P
45 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
47 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).
46 17
VerDate Sep<11>2014
20:12 Oct 07, 2016
Jkt 241001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79040; File No. SR–BOX–
2016–49]
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
October 4, 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
September 30, 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 amend
the Fee Schedule [sic] on the BOX
Market LLC (‘‘BOX’’) options facility.
While changes to the fee schedule
pursuant to this proposal will be
effective upon filing, the changes will
become operative on October 1, 2016.
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
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
48 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00138
Fmt 4703
Sfmt 4703
E:\FR\FM\11OCN1.SGM
11OCN1
70223
Federal Register / Vol. 81, No. 196 / Tuesday, October 11, 2016 / Notices
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 the
Fee Schedule for trading on BOX.
Specifically, the Exchange proposes to
revise certain qualification thresholds
and fees in Section I.B.2 of the BOX Fee
Schedule, the BOX Volume Rebate
(‘‘BVR’’).
.......................................................
.......................................................
.......................................................
.......................................................
.......................................................
0.000%
0.160%
0.340%
1.000%
1.250%
The Exchange proposes to adjust
certain BVR percentage thresholds and
fees within the BVR. Specifically, the
Exchange proposes to eliminate Tier 4
and adjust the percentage thresholds in
Tier 5 to ‘‘1.000% and Above.’’ The
Exchange then proposes to renumber
asabaliauskas on DSK3SPTVN1PROD with NOTICES
.......................................................
.......................................................
.......................................................
.......................................................
0.000%
0.160%
0.340%
1.000%
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 the proposed
amendments to the BVR in Section I.B.2
of the BOX Fee Schedule are reasonable,
equitable and non-discriminatory. The
BVR was adopted to attract Public
Customer order flow to the Exchange by
offering these Participants incentives to
submit their PIP and COPIP Orders to
the Exchange and the Exchange believes
it is appropriate to now amend the BVR.
5 15
U.S.C. 78f(b)(4) and (5).
VerDate Sep<11>2014
20:12 Oct 07, 2016
PIP
to 0.159% .....................................................................................
to 0.339% .....................................................................................
to 0.999% .....................................................................................
to 1.249% .....................................................................................
and Above ....................................................................................
Tier 5 to Tier 4. The quantity submitted
will continue to be calculated on a
monthly basis by totaling the
Participant’s PIP and COPIP volume
submitted to BOX, relative to the total
national Customer volume in multiplylisted options classes. Additionally, the
Jkt 241001
PO 00000
Frm 00139
Fmt 4703
Sfmt 4703
($0.00)
(0.02)
(0.04)
(0.07)
(0.12)
($0.00)
(0.02)
(0.04)
(0.06)
(0.06)
Per contract rebate
(all account types)
PIP
to 0.159% .....................................................................................
to 0.339% .....................................................................................
to 0.999% .....................................................................................
and Above ....................................................................................
The Exchange believes it is equitable
and not unfairly discriminatory to
amend the BVR, as all Participants have
the ability to qualify for a rebate, and
rebates are provided equally to
qualifying Participants. Finally, the
Exchange believes it is reasonable and
appropriate to continue to provide
incentives for Public Customers, which
will result in greater liquidity and
ultimately benefit all Participants
trading on the Exchange.
BOX believes it is reasonable,
equitable and not unfairly
discriminatory to adjust the monthly
Percentage Thresholds of National
Customer Volume in Multiply-Listed
Options Classes and their applicable
rebates. The volume thresholds and
rebates are meant to incentivize
Participants to direct order flow to the
Exchange to obtain the benefit of the
rebate, which will in turn benefit all
market participants by increasing
COPIP
Exchange proposes to decrease the fee
[sic] in the revised Tier 4 for PIP
transactions to $0.11 from $0.12.
The new BVR set forth in Section
I.B.2 of the BOX Fee Schedule will be
as follows:
Percentage thresholds of national customer volume
in multiply-listed options classes
(monthly)
Tier
1
2
3
4
Per contract rebate
(all account types)
Percentage thresholds of national customer volume
in multiply-listed options classes
(monthly)
Tier
1
2
3
4
5
Under the current BVR, the Exchange
offers a tiered per contract rebate for all
Public Customer PIP Orders and COPIP
orders of 100 contracts and under that
do not trade solely with their contra
order. Percentage thresholds are
calculated on a monthly basis by
totaling the Participant’s PIP and COPIP
volume submitted to BOX, relative to
the total national Customer volume in
multiply-listed options classes.
The current per contract rebate for
Participants in PIP and COPIP
Transactions under the BVR is:
($0.00)
(0.02)
(0.04)
(0.11)
COPIP
($0.00)
(0.02)
(0.04)
(0.06)
liquidity on the Exchange. Other
exchanges employ similar incentive
programs; 6 and the Exchange believes
that the proposed changes to the volume
thresholds and rebates are reasonable
and competitive when compared to
incentive structures at other exchanges.
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 is simply proposing to revise
certain qualification thresholds and fees
in Section I.B. of the BOX Fee Schedule.
The Exchange believes that the volume
6 See Section B of the PHLX Pricing Schedule
entitled ‘‘Customer Rebate Program;’’ ISE Gemini’s
Qualifying Tier Thresholds (page 6 of the ISE
Gemini Fee Schedule); and CBOE’s Volume
Incentive Program (VIP).
E:\FR\FM\11OCN1.SGM
11OCN1
70224
Federal Register / Vol. 81, No. 196 / Tuesday, October 11, 2016 / Notices
based rebates and fees increase
intermarket and intramarket
competition by incenting Participants to
direct their order flow to the exchange,
which benefits all participants by
providing more trading opportunities
and improves competition on the
Exchange.
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
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–
2016–49, and should be submitted on or
before November 1, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016–24425 Filed 10–7–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79037; File No. SR–BOX–
2016–46]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Make NonControversial Amendments to Its
Rules
Paper Comments
asabaliauskas on DSK3SPTVN1PROD with NOTICES
• 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–2016–49 on the subject line.
October 4, 2016.
• 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–2016–49. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
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
September 22, 2016, BOX Options
Exchange LLC (the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
7 15
U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
20:12 Oct 07, 2016
1 15
Jkt 241001
PO 00000
Frm 00140
Fmt 4703
Sfmt 4703
been prepared by the self-regulatory
organization. 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 proposes to make noncontroversial amendments to its rules.
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
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 amend Rule 7130(a) to
clarify that the BOX HSVF is no longer
provided to market participants at no
cost. The BOX HSVF is a proprietary
product that provides: (i) Trades and
trade cancelation information; (ii) bestranked price level to buy and the bestranked price level to sell; (iii)
instrument summaries (including
information such as high, low, and last
trade price and traded volume); (iv) the
five best limit prices for each option
instrument; (v) request for Quote
messages; 3 (vi) PIP Order, Improvement
Order and Block Trade Order
(Facilitation and Solicitation)
information; 4 (vii) orders exposed at
NBBO; 5 (viii) instrument dictionary
(e.g., strike price, expiration date,
underlying symbol, price threshold, and
minimum trading increment for
3 See Exchange Rules 100(a)(57), 7070(h) and
8050.
4 As set forth in Exchange Rules 7150 and 7270,
respectively.
5 As set forth in Exchange Rules 7130(b)(2) and
8040(d)(6), respectively.
E:\FR\FM\11OCN1.SGM
11OCN1
]]>Agencies
[Federal Register Volume 81, Number 196 (Tuesday, October 11, 2016)]
[Notices]
[Pages 70222-70224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-24425]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79040; File No. SR-BOX-2016-49]
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
October 4, 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 September 30, 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
amend the Fee Schedule [sic] on the BOX Market LLC (``BOX'') options
facility. While changes to the fee schedule pursuant to this proposal
will be effective upon filing, the changes will become operative on
October 1, 2016. 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
[[Page 70223]]
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 the Fee Schedule for trading on BOX.
Specifically, the Exchange proposes to revise certain qualification
thresholds and fees in Section I.B.2 of the BOX Fee Schedule, the BOX
Volume Rebate (``BVR'').
Under the current BVR, the Exchange offers a tiered per contract
rebate for all Public Customer PIP Orders and COPIP orders of 100
contracts and under that do not trade solely with their contra order.
Percentage thresholds are calculated on a monthly basis by totaling the
Participant's PIP and COPIP volume submitted to BOX, relative to the
total national Customer volume in multiply-listed options classes.
The current per contract rebate for Participants in PIP and COPIP
Transactions under the BVR is:
----------------------------------------------------------------------------------------------------------------
Percentage thresholds of Per contract rebate (all
national customer volume in account types)
Tier multiply-listed options classes -------------------------------
(monthly) PIP COPIP
----------------------------------------------------------------------------------------------------------------
1............................................. 0.000% to 0.159%................ ($0.00) ($0.00)
2............................................. 0.160% to 0.339%................ (0.02) (0.02)
3............................................. 0.340% to 0.999%................ (0.04) (0.04)
4............................................. 1.000% to 1.249%................ (0.07) (0.06)
5............................................. 1.250% and Above................ (0.12) (0.06)
----------------------------------------------------------------------------------------------------------------
The Exchange proposes to adjust certain BVR percentage thresholds
and fees within the BVR. Specifically, the Exchange proposes to
eliminate Tier 4 and adjust the percentage thresholds in Tier 5 to
``1.000% and Above.'' The Exchange then proposes to renumber Tier 5 to
Tier 4. The quantity submitted will continue to be calculated on a
monthly basis by totaling the Participant's PIP and COPIP volume
submitted to BOX, relative to the total national Customer volume in
multiply-listed options classes. Additionally, the Exchange proposes to
decrease the fee [sic] in the revised Tier 4 for PIP transactions to
$0.11 from $0.12.
The new BVR set forth in Section I.B.2 of the BOX Fee Schedule will
be as follows:
----------------------------------------------------------------------------------------------------------------
Percentage thresholds of Per contract rebate (all
national customer volume in account types)
Tier multiply-listed options classes -------------------------------
(monthly) PIP COPIP
----------------------------------------------------------------------------------------------------------------
1............................................. 0.000% to 0.159%................ ($0.00) ($0.00)
2............................................. 0.160% to 0.339%................ (0.02) (0.02)
3............................................. 0.340% to 0.999%................ (0.04) (0.04)
4............................................. 1.000% and Above................ (0.11) (0.06)
----------------------------------------------------------------------------------------------------------------
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 the proposed amendments to the BVR in Section
I.B.2 of the BOX Fee Schedule are reasonable, equitable and non-
discriminatory. The BVR was adopted to attract Public Customer order
flow to the Exchange by offering these Participants incentives to
submit their PIP and COPIP Orders to the Exchange and the Exchange
believes it is appropriate to now amend the BVR. The Exchange believes
it is equitable and not unfairly discriminatory to amend the BVR, as
all Participants have the ability to qualify for a rebate, and rebates
are provided equally to qualifying Participants. Finally, the Exchange
believes it is reasonable and appropriate to continue to provide
incentives for Public Customers, which will result in greater liquidity
and ultimately benefit all Participants trading on the Exchange.
BOX believes it is reasonable, equitable and not unfairly
discriminatory to adjust the monthly Percentage Thresholds of National
Customer Volume in Multiply-Listed Options Classes and their applicable
rebates. The volume thresholds and rebates are meant to incentivize
Participants 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. Other exchanges employ similar
incentive programs; \6\ and the Exchange believes that the proposed
changes to the volume thresholds and rebates are reasonable and
competitive when compared to incentive structures at other exchanges.
---------------------------------------------------------------------------
\6\ See Section B of the PHLX Pricing Schedule entitled
``Customer Rebate Program;'' ISE Gemini's Qualifying Tier Thresholds
(page 6 of the ISE Gemini Fee Schedule); and CBOE's Volume Incentive
Program (VIP).
---------------------------------------------------------------------------
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 is simply
proposing to revise certain qualification thresholds and fees in
Section I.B. of the BOX Fee Schedule. The Exchange believes that the
volume
[[Page 70224]]
based rebates and fees increase intermarket and intramarket competition
by incenting Participants to direct their order flow to the exchange,
which benefits all participants by providing more trading opportunities
and improves competition on the Exchange.
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-2016-49 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-2016-49. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (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-2016-49, and should be
submitted on or before November 1, 2016.
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-24425 Filed 10-7-16; 8:45 am]
BILLING CODE 8011-01-P
