Self-Regulatory Organizations; BOX Options Exchange LLC; Order Approving a Proposed Rule Change To Amend the Treatment of Quotes To Provide That All Quotes on BOX Are Liquidity Adding Only, 83322-83323 [2016-27891]
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Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Notices
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: (1) Necessary or appropriate in
the public interest; (2) for the protection
of investors; or (3) otherwise in
furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File No. SR–BatsBZX–
2016–75 and should be submitted on or
before December 12, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Brent J. Fields,
Secretary.
[FR Doc. 2016–27892 Filed 11–18–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Electronic Comments
• 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
No. SR–BatsBZX–2016–75 on the
subject line.
[Release No. 34–79311; File No. SR–BOX–
2016–45]
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 No.
SR–BatsBZX–2016–75. 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
November 15, 2016.
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
18:09 Nov 18, 2016
Jkt 241001
Self-Regulatory Organizations; BOX
Options Exchange LLC; Order
Approving a Proposed Rule Change To
Amend the Treatment of Quotes To
Provide That All Quotes on BOX Are
Liquidity Adding Only
I. Introduction
On September 13, 2016, BOX Options
Exchange LLC (‘‘BOX’’ 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
change to amend the treatment of quotes
to provide that all quotes on BOX are
liquidity adding only. The proposed
rule change was published for comment
in the Federal Register on October 3,
2016.3 The Commission received no
comments on the proposal. This order
approves the proposed rule change.
II. Description of the Proposal
The Exchange proposes to amend the
treatment of incoming quotes to BOX so
that they are only accepted if they are
liquidity adding.4 Under the Exchange’s
proposed rule change, if an incoming
quote or quote update is marketable
because it would execute against a
resting order or quote on the BOX
Book,5 it will be rejected. The Exchange
will not reject incoming quotes during
24 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 78946
(Septemeber 27, 2016), 81 FR 68069 (October 3,
2016) (‘‘Notice’’).
4 See Notice, supra note 3 (proposing a new IM–
8050–3 to Exchange Rule 8050).
5 The term ‘‘Central Order Book’’ or ‘‘BOX Book’’
means the electronic book of orders on each single
option series maintained by the BOX Trading Host.
See Exchange Rule 100(a)(10).
1 15
PO 00000
Frm 00127
Fmt 4703
Sfmt 4703
the opening of the market.6 As is the
case today, rejected quotes will not be
considered when determining a Market
Maker’s quoting obligations.7
The Exchange also proposes to amend
the treatment of incoming quotes after
they interact with the Price
Improvement Period (‘‘PIP’’).8
Currently, when an incoming quote is
on the same side as a PIP Order, it may
cause the PIP auction to end early, if, at
the time of submission, the price of the
incoming quote would cause an
execution to occur prior to the end of
the PIP.9 Under the proposal, the
incoming quote will continue to cause
the PIP auction to end early if the
conditions of Rule 7150(i) exist.
However, after the PIP auction is
concluded, if the incoming quote is
executable against resting orders or
quotes on the BOX Book, it will be
rejected. Additionally, currently, when
an incoming quote on the opposite side
of the PIP Order is received such that it
would cause an execution to occur prior
to the end of the PIP auction, the
incoming quote will be immediately
6 Transactions occurring on the opening are
deemed to neither add nor remove liquidity and
therefore are exempt from the liquidity fees and
credits on the Exchange. See Section II.C. of the
BOX Fee Schedule.
7 On a daily basis, a Market Maker must, during
regular market hours, make markets and enter into
any resulting transactions consistent with the
applicable quoting requirements, such that on a
daily basis a Market Maker must post valid quotes
at least sixty percent (60%) of the time that the
classes are open for trading. These obligations apply
to all of the Market Maker’s appointed classes
collectively, rather than on a class-by-class basis.
See Exchange Rule 8050(e); see also Exchange Rule
8040.
8 Options Participants, both Order Flow Providers
and Market Makers, executing agency orders may
designate Market Orders and marketable limit
Customer Orders for price improvement and
submission to the PIP. Customer Orders designated
for the PIP (‘‘PIP Orders’’) shall be submitted to
BOX with a matching contra order equal to the full
size of the PIP Order. See Exchange Rule 7150.
9 Specifically, the submission to BOX of a Market
Order on the same side as a PIP Order will
prematurely terminate the PIP when, at the time of
the submission of the Market Order, the best
Improvement Order is equal to or better than the
NBBO on the same side of the market as the best
Improvement Order. The submission to BOX of an
executable Limit Order or generation of an
executable Legging Order on the same side as a PIP
Order will prematurely terminate the PIP if at the
time of submission: (1) The Buy (Sell) Limit Order
or Legging Order price is equal to or higher (lower)
than the National Best Offer (Bid) and either: (i) The
BOX Best Offer (Bid) is equal to the National Best
Offer (Bid); or (ii) the BOX Best Offer (Bid) is higher
(lower) than the National Best Offer (Bid) and the
price of the best Improvement Order is equal to or
lower (higher) than the National Best Offer (Bid); or
(2) the Buy (Sell) Limit Order or Legging Order
price is lower (higher) than the National Best Offer
(Bid) and its limit price equals or crosses the price
of the best Improvement Order. See Exchange Rule
7150(i).
E:\FR\FM\21NON1.SGM
21NON1
Federal Register / Vol. 81, No. 224 / Monday, November 21, 2016 / Notices
executed.10 Under the proposal, any
remaining balance of the incoming
quote that did not execute against the
PIP Order, and that would execute
against a resting order or quote on the
BOX Book, will be rejected.
The Exchange represents that it will
provide BOX Participants with notice,
via Information Circular, about the
implementation date of the proposed
rule change.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
III. Discussion and Commission
Findings
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange and, in particular,
with Section 6(b) of the Act.11
Specifically, the Commission finds that
the proposed rule change is consistent
with Section 6(b)(5) of the Act,12 which
requires, among other things, that a
national securities exchange have rules
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, 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 of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Commission
believes that the proposed rule change
is designed to help Market Makers more
efficiently submit quotes to provide
liquidity on BOX, which could benefit
investors. The Commission notes that
Market Makers still will be able to take
liquidity on BOX by submitting orders
in or out of their appointed classes.13 In
addition, according to the Exchange, the
10 Specifically, a Market Order on the opposite
side of a PIP Order will immediately execute
against the PIP Order when, at the time of the
submission of the Market Order, the best
Improvement Order does not cross the NBBO on the
same side of the market as the PIP Order. The
submission to BOX of an executable Limit Order or
generation of an executable Legging Order on the
opposite side of a PIP Order will immediately
execute against a PIP Order when the Sell (Buy)
Limit Order price is equal to or crosses the National
Best Bid (Offer), and: (1) The BOX Best Bid (Offer)
is equal to the National Best Bid (Offer); or (2) the
BOX Best Bid (Offer) is lower (higher) than the
National Best Bid (Offer) and neither the best
Improvement Order nor BOX Best Offer (Bid) is
equal to or crosses the National Best Bid (Offer). See
Exchange Rule 7150(j).
11 15 U.S.C. 78f(b). In approving this proposed
rule change, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
12 15 U.S.C. 78f(b)(5).
13 Id.
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18:09 Nov 18, 2016
Jkt 241001
proposed rule change will not alter a
Market Maker’s obligations pursuant
BOX Rules 8040 and 8050, including
the obligation to provide continuous
two-sided quotes on a daily basis.14
Further, the Commission notes that
other options exchanges offer liquidity
adding only order types.15
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,16 that the
proposed rule change (SR–BOX–2016–
45) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Brent J. Fields,
Secretary.
[FR Doc. 2016–27891 Filed 11–18–16; 8:45 am]
83323
publication of this notice to the
Selective Service System, Reports
Clearance Officer, 1515 Wilson
Boulevard, Arlington, Virginia 22209–
2425.
A copy of the comments should be
sent to the Office of Information and
Regulatory Affairs, Attention: Desk
Officer, Selective Service System, Office
of Management and Budget, New
Executive Office Building, Room 3235,
Washington, DC 20503.
Dated: November 9, 2016.
Lawrence Romo,
Director.
[FR Doc. 2016–27921 Filed 11–18–16; 8:45 am]
BILLING CODE 8015–01–P
SELECTIVE SERVICE SYSTEM
BILLING CODE 8011–01–P
SELECTIVE SERVICE SYSTEM
Forms Submitted to the Office of
Management and Budget for Extension
of Clearance
Selective Service System.
ACTION: Notice.
AGENCY:
The following forms have been
submitted to the Office of Management
and Budget (OMB) for extension of
clearance in compliance with the
Paperwork Reduction Act (44 U.S.C.
Chapter 35):
SSS Form—402
Title: Uncompensated Registrar
Appointment Form.
Purpose: Is used to verify the official
status of applicants for the position of
Uncompensated Registrars and to
establish authority for those appointed
to perform as Selective Service System
Registrars.
Respondents: United States citizens
over the age of 18.
Frequency: One time.
Burden: The reporting burden is three
minutes or less per respondent.
Copies of the above identified form
can be obtained upon written request to
the Selective Service System, Reports
Clearance Officer, 1515 Wilson
Boulevard, Arlington, Virginia 22209–
2425.
Written comments and
recommendations for the proposed
extension of clearance of the form
should be sent within 60 days of the
14 Id.
at 68070–71.
id. (citing International Securities
Exchange, LLC (‘‘ISE’’) Rule 715(n) and NYSE Arca
Options, Inc. (‘‘NYSE Arca’’) Rule 6.62(t)).
16 15 U.S.C. 78s(b)(2).
17 17 CFR 200.30–3(a)(12).
15 See
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
Forms Submitted to the Office of
Management and Budget for Extension
of Clearance
Selective Service System.
Notice.
AGENCY:
ACTION:
The following forms have been
submitted to the Office of Management
and Budget (OMB) for extension of
clearance in compliance with the
Paperwork Reduction Act (44 U.S.C.
Chapter 35):
SSS Form—404
Title: Potential Board Member
Information.
Purpose: Is used to identify
individuals willing to serve as members
of local, appeal or review boards in the
Selective Service System.
Respondents: Potential Board
Members.
Burden: A burden of 15 minutes or
less on the individual respondent.
Copies of the above identified form
can be obtained upon written request to
the Selective Service System, Reports
Clearance Officer, 1515 Wilson
Boulevard, Arlington, Virginia 22209–
2425.
Written comments and
recommendations for the proposed
extension of clearance of the form
should be sent within 60 days of the
publication of this notice to the
Selective Service System, Reports
Clearance Officer, 1515 Wilson
Boulevard, Arlington, Virginia 22209–
2425.
A copy of the comments should be
sent to the Office of Information and
Regulatory Affairs, Attention: Desk
Officer, Selective Service System, Office
of Management and Budget, New
Executive Office Building, Room 3235,
Washington, DC 20503.
E:\FR\FM\21NON1.SGM
21NON1
]]>Agencies
[Federal Register Volume 81, Number 224 (Monday, November 21, 2016)]
[Notices]
[Pages 83322-83323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27891]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-79311; File No. SR-BOX-2016-45]
Self-Regulatory Organizations; BOX Options Exchange LLC; Order
Approving a Proposed Rule Change To Amend the Treatment of Quotes To
Provide That All Quotes on BOX Are Liquidity Adding Only
November 15, 2016.
I. Introduction
On September 13, 2016, BOX Options Exchange LLC (``BOX'' 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 change to amend the treatment of quotes to provide that
all quotes on BOX are liquidity adding only. The proposed rule change
was published for comment in the Federal Register on October 3,
2016.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 78946 (Septemeber
27, 2016), 81 FR 68069 (October 3, 2016) (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
The Exchange proposes to amend the treatment of incoming quotes to
BOX so that they are only accepted if they are liquidity adding.\4\
Under the Exchange's proposed rule change, if an incoming quote or
quote update is marketable because it would execute against a resting
order or quote on the BOX Book,\5\ it will be rejected. The Exchange
will not reject incoming quotes during the opening of the market.\6\ As
is the case today, rejected quotes will not be considered when
determining a Market Maker's quoting obligations.\7\
---------------------------------------------------------------------------
\4\ See Notice, supra note 3 (proposing a new IM-8050-3 to
Exchange Rule 8050).
\5\ The term ``Central Order Book'' or ``BOX Book'' means the
electronic book of orders on each single option series maintained by
the BOX Trading Host. See Exchange Rule 100(a)(10).
\6\ Transactions occurring on the opening are deemed to neither
add nor remove liquidity and therefore are exempt from the liquidity
fees and credits on the Exchange. See Section II.C. of the BOX Fee
Schedule.
\7\ On a daily basis, a Market Maker must, during regular market
hours, make markets and enter into any resulting transactions
consistent with the applicable quoting requirements, such that on a
daily basis a Market Maker must post valid quotes at least sixty
percent (60%) of the time that the classes are open for trading.
These obligations apply to all of the Market Maker's appointed
classes collectively, rather than on a class-by-class basis. See
Exchange Rule 8050(e); see also Exchange Rule 8040.
---------------------------------------------------------------------------
The Exchange also proposes to amend the treatment of incoming
quotes after they interact with the Price Improvement Period
(``PIP'').\8\ Currently, when an incoming quote is on the same side as
a PIP Order, it may cause the PIP auction to end early, if, at the time
of submission, the price of the incoming quote would cause an execution
to occur prior to the end of the PIP.\9\ Under the proposal, the
incoming quote will continue to cause the PIP auction to end early if
the conditions of Rule 7150(i) exist. However, after the PIP auction is
concluded, if the incoming quote is executable against resting orders
or quotes on the BOX Book, it will be rejected. Additionally,
currently, when an incoming quote on the opposite side of the PIP Order
is received such that it would cause an execution to occur prior to the
end of the PIP auction, the incoming quote will be immediately
[[Page 83323]]
executed.\10\ Under the proposal, any remaining balance of the incoming
quote that did not execute against the PIP Order, and that would
execute against a resting order or quote on the BOX Book, will be
rejected.
---------------------------------------------------------------------------
\8\ Options Participants, both Order Flow Providers and Market
Makers, executing agency orders may designate Market Orders and
marketable limit Customer Orders for price improvement and
submission to the PIP. Customer Orders designated for the PIP (``PIP
Orders'') shall be submitted to BOX with a matching contra order
equal to the full size of the PIP Order. See Exchange Rule 7150.
\9\ Specifically, the submission to BOX of a Market Order on the
same side as a PIP Order will prematurely terminate the PIP when, at
the time of the submission of the Market Order, the best Improvement
Order is equal to or better than the NBBO on the same side of the
market as the best Improvement Order. The submission to BOX of an
executable Limit Order or generation of an executable Legging Order
on the same side as a PIP Order will prematurely terminate the PIP
if at the time of submission: (1) The Buy (Sell) Limit Order or
Legging Order price is equal to or higher (lower) than the National
Best Offer (Bid) and either: (i) The BOX Best Offer (Bid) is equal
to the National Best Offer (Bid); or (ii) the BOX Best Offer (Bid)
is higher (lower) than the National Best Offer (Bid) and the price
of the best Improvement Order is equal to or lower (higher) than the
National Best Offer (Bid); or (2) the Buy (Sell) Limit Order or
Legging Order price is lower (higher) than the National Best Offer
(Bid) and its limit price equals or crosses the price of the best
Improvement Order. See Exchange Rule 7150(i).
\10\ Specifically, a Market Order on the opposite side of a PIP
Order will immediately execute against the PIP Order when, at the
time of the submission of the Market Order, the best Improvement
Order does not cross the NBBO on the same side of the market as the
PIP Order. The submission to BOX of an executable Limit Order or
generation of an executable Legging Order on the opposite side of a
PIP Order will immediately execute against a PIP Order when the Sell
(Buy) Limit Order price is equal to or crosses the National Best Bid
(Offer), and: (1) The BOX Best Bid (Offer) is equal to the National
Best Bid (Offer); or (2) the BOX Best Bid (Offer) is lower (higher)
than the National Best Bid (Offer) and neither the best Improvement
Order nor BOX Best Offer (Bid) is equal to or crosses the National
Best Bid (Offer). See Exchange Rule 7150(j).
---------------------------------------------------------------------------
The Exchange represents that it will provide BOX Participants with
notice, via Information Circular, about the implementation date of the
proposed rule change.
III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities exchange
and, in particular, with Section 6(b) of the Act.\11\ Specifically, the
Commission finds that the proposed rule change is consistent with
Section 6(b)(5) of the Act,\12\ which requires, among other things,
that a national securities exchange have rules designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, 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 of a
free and open market and a national market system, and, in general, to
protect investors and the public interest. The Commission believes that
the proposed rule change is designed to help Market Makers more
efficiently submit quotes to provide liquidity on BOX, which could
benefit investors. The Commission notes that Market Makers still will
be able to take liquidity on BOX by submitting orders in or out of
their appointed classes.\13\ In addition, according to the Exchange,
the proposed rule change will not alter a Market Maker's obligations
pursuant BOX Rules 8040 and 8050, including the obligation to provide
continuous two-sided quotes on a daily basis.\14\ Further, the
Commission notes that other options exchanges offer liquidity adding
only order types.\15\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78f(b). In approving this proposed rule change,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\12\ 15 U.S.C. 78f(b)(5).
\13\ Id.
\14\ Id. at 68070-71.
\15\ See id. (citing International Securities Exchange, LLC
(``ISE'') Rule 715(n) and NYSE Arca Options, Inc. (``NYSE Arca'')
Rule 6.62(t)).
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\16\ that the proposed rule change (SR-BOX-2016-45) be, and hereby
is, approved.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------
\17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Brent J. Fields,
Secretary.
[FR Doc. 2016-27891 Filed 11-18-16; 8:45 am]
BILLING CODE 8011-01-P
