Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7050 (Minimum Trading Increments), 55888-55890 [2017-25345]
Download as PDF
55888
Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Notices
contracts traded on the Exchange. To
the extent that this purpose is achieved,
all the Exchange’s market participants
should benefit from the improved
market liquidity. Enhanced market
quality and increased transaction
volume that results from the anticipated
increase in order flow directed to the
Exchange will benefit all market
participants and improve competition
on the Exchange.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any written
comments from members or other
interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 26 and paragraph (f) of Rule
19b–4 thereunder.27 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.
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:
sradovich on DSK3GMQ082PROD with NOTICES
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–
BatsEDGX–2017–50 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–BatsEDGX–2017–50. 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BatsEDGX–2017–50, and
should be submitted on or before
December 15, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–25352 Filed 11–22–17; 8:45 am]
BILLING CODE 8011–01–P
27 17
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82114; File No. SR–BOX–
2017–34]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
Rule 7050 (Minimum Trading
Increments)
November 17, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on November
8, 2017, BOX Options Exchange LLC
(the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
18:19 Nov 22, 2017
Jkt 244001
PO 00000
Frm 00090
Fmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 7050 (Minimum Trading
Increments). 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://boxoptions.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
28 17
26 15
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
from interested persons.
Sfmt 4703
Currently, BOX Rule 7050(a)
establishes minimum trading
increments for single leg options
contracts traded on BOX. Rule 7050(a)
states that with regard to minimum
trading increments for single leg options
contracts, ‘‘the following principles
shall apply: (1) If the options contract is
trading at less than $3.00 per option,
five (5) cents; (2) if the options contract
is trading at $3.00 per option or higher,
ten (10) cents; and (3) if the options
contract is traded pursuant to the
procedures of the Improvement Period
in Rules 7150 then one (1) cent.’’
Further, BOX Rule 7050(b) establishes
an exception 3 to 7050(a) while Rule
7050(c) and (d) establish cross
references to existing rules with
3 Rule 7050(b) states that ‘‘the Exchange will
operate a pilot program to permit options classes to
be quoted and traded in increments as low as one
(1) cent.’’
E:\FR\FM\24NON1.SGM
24NON1
Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Notices
different minimum trading increments
than those outlined in Rule 7050(a).4
The purpose of the proposed rule
change is to amend Rule 7050 to
establish a cross reference to an existing
rule about minimum trading increments
with regard to Complex Orders.
Specifically, the Exchange proposes
Rule 7050(e) which states that
notwithstanding any provision of Rule
7050, the minimum trading increment
for Complex Orders shall be determined
in accordance with Rule 7240(b)(1).5
The Exchange notes that the proposed
change will provide clarity with respect
to the Exchange’s minimum trading
increment rule and how it relates to
Complex Orders on the Exchange.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,6
in general, and Section 6(b)(5) of the
Act,7 in particular, in that it is designed
to promote just and equitable principles
of trade, remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general protect investors
and the public interest. The Exchange
believes it is appropriate to make the
proposed change to its rules so that
market participants and investors have
a clear and accurate understanding of
the meaning of the Exchange’s rules. By
adding the proposed language, the
Exchange is eliminating any potential
for confusion and ensuring that market
participants, regulators and the public
can more easily navigate the Exchange’s
Rulebook. The Exchange believes that
the proposed rule change is not unfairly
discriminatory because it treats all
market participants equally and will not
have an adverse impact on any market
participant.
sradovich on DSK3GMQ082PROD with NOTICES
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will result in
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. In particular,
the Exchange does not believe that the
4 Rule 7050(c) states that ‘‘the minimum trading
increment for Mini Options shall be determined in
accordance with IM–5050–10(d) to BOX Rule
5050.’’ Rule 7050(d) states that the minimum
trading increment for Jumbo SPY Options shall be
determined in accordance with Rule 5050(e)(4).
5 Bids and offers on Complex Orders may be
expressed in any decimal price, and the leg(s) of a
Complex Order may be executed in one cent
increments, regardless of the minimum increments
otherwise applicable to the individual legs of the
order. See BOX Rule 7240(b)(1).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
18:19 Nov 22, 2017
Jkt 244001
proposal will impose a burden on
intermarket competition because the
proposed change simply attempts to
clarify the Exchange rules and reduce
any potential for investor confusion.
Further, the Exchange does not believe
that the proposed rule change imposes
a burden on intramarket competition
because the proposed provision applies
to all market participants equally. As
such, 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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the 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 8 and Rule 19b–
4(f)(6) thereunder.9
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiver of the operative delay is
consistent with the protection of
investors and the public interest
because the proposal will provide
additional clarity to the Exchange’s
rules and reduce the potential for
investor confusion. As noted above,
BOX Rule 7050 establishes the
8 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
9 17
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
55889
minimum trading increment for single
options traded on the Exchange. The
proposal modifies BOX Rule 7050 by
adding a cross-reference to indicate that
the trading increment for complex
orders appears in existing BOX Rule
7240(b)(1). The Commission notes that
the proposal does not modify the
trading increment for complex orders.
Accordingly, the Commission hereby
waives the operative delay and
designates the proposal as operative
upon filing.12
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
change 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–2017–34 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–2017–34. 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
12 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
E:\FR\FM\24NON1.SGM
24NON1
55890
Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Notices
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, on official business
days between the hours of 10:00 a.m.
and 3:00 p.m., located at 100 F Street
NE., Washington, DC 20549. 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BOX–2017–34 and should
be submitted on or before December 15,
2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–25345 Filed 11–22–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
32899; 812–14804]
Motley Fool Asset Management, LLC,
et al.; Notice of Application
November 17, 2017
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application for an
order under section 6(c) of the
Investment Company Act of 1940 (the
‘‘Act’’) for an exemption from sections
2(a)(32), 5(a)(1), 22(d), and 22(e) of the
Act and rule 22c–1 under the Act, under
sections 6(c) and 17(b) of the Act for an
exemption from sections 17(a)(1) and
17(a)(2) of the Act, and under section
12(d)(1)(J) for an exemption from
sections 12(d)(1)(A) and 12(d)(1)(B) of
the Act. The requested order would
permit (a) index-based series of certain
open-end management investment
companies (‘‘Funds’’) to issue shares
redeemable in large aggregations only
(‘‘Creation Units’’); (b) secondary market
transactions in Fund shares to occur at
negotiated market prices rather than at
sradovich on DSK3GMQ082PROD with NOTICES
AGENCY:
13 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
18:19 Nov 22, 2017
Jkt 244001
net asset value (‘‘NAV’’); (c) certain
Funds to pay redemption proceeds,
under certain circumstances, more than
seven days after the tender of shares for
redemption; (d) certain affiliated
persons of a Fund to deposit securities
into, and receive securities from, the
Fund in connection with the purchase
and redemption of Creation Units; and
(e) certain registered management
investment companies and unit
investment trusts outside of the same
group of investment companies as the
Funds (‘‘Funds of Funds’’) to acquire
shares of the Funds.
Motley Fool Asset
Management, LLC (the ‘‘Initial
Adviser’’), a Delaware limited liability
company registered as an investment
adviser under the Investment Advisers
Act of 1940; The RBB Fund, Inc. (the
‘‘Company’’), a Maryland corporation
registered under the Act as an open-end
management investment company with
multiple series; and Quasar Distributors,
LLC (the ‘‘Distributor’’), a Delaware
limited liability company and brokerdealer registered under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’).
DATES: The application was filed on July
21, 2017, and amended on October 20,
2017, and November 14, 2017.
HEARING OR NOTIFICATION OF HEARING: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on December 12, 2017, and
should be accompanied by proof of
service on applicants, in the form of an
affidavit, or for lawyers, a certificate of
service. Pursuant to rule 0–5 under the
Act, hearing requests should state the
nature of the writer’s interest, any facts
bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
ADDRESSES: Secretary, Securities and
Exchange Commission, 100 F Street NE.,
Washington, DC 20549–1090;
Applicants: The Initial Adviser, 2000
Duke Street, Suite 175, Alexandria,
Virginia 22134; the Company, 615 East
Michigan Street, 4th Floor, Milwaukee,
Wisconsin 53202; the Distributor, 777
East Wisconsin Avenue, 6th Floor,
Milwaukee, Wisconsin 53202.
FOR FURTHER INFORMATION CONTACT: Nick
Cordell, Senior Counsel, at (202) 551–
5496; or Holly Hunter-Ceci, Assistant
APPLICANTS:
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
Chief Counsel, at (202) 551–6825
(Division of Investment Management,
Chief Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
Web site by searching for the file
number, or for an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
Summary of the Application
1. Applicants request an order that
would allow Funds to operate as index
exchange traded funds (‘‘ETFs’’).1 Fund
shares will be purchased and redeemed
at their NAV in Creation Units only. All
orders to purchase Creation Units and
all redemption requests will be placed
by or through an ‘‘Authorized
Participant’’, which will have signed a
participant agreement with the
Distributor. Shares will be listed and
traded individually on a national
securities exchange, where share prices
will be based on the current bid/offer
market. Any order granting the
requested relief would be subject to the
terms and conditions stated in the
application.
2. Each Fund will hold investment
positions selected to correspond closely
to the performance of an underlying
index. In the case of self-indexing
Funds, an affiliated person, as defined
in section 2(a)(3) of the Act (‘‘Affiliated
Person’’), or an affiliated person of an
Affiliated Person (‘‘Second-Tier
Affiliate’’), of the Company or a Fund,
of an Adviser, of any sub-adviser to or
promoter of a Fund, or of the Distributor
will compile, create, sponsor, or
maintain the underlying index.2
3. Shares will be purchased and
redeemed in Creation Units and
generally on an in-kind basis. Except
where the purchase or redemption will
include cash under the limited
1 Applicants request that the order apply to the
existing series of the Company that are index ETFs
and any additional series of the Company, and any
other open-end management investment company
or series thereof, that may be created in the future
(each, included in the term ‘‘Fund’’), each of which
will operate as an ETF and will track a specified
index comprised of domestic or foreign equity and/
or fixed income securities (each, an ‘‘Underlying
Index’’). Any Fund will (a) be advised by the Initial
Adviser or an entity controlling, controlled by, or
under common control with the Initial Adviser
(each, an ‘‘Adviser’’) and (b) comply with the terms
and conditions of the application.
2 Each Self-Indexing Fund will post on its Web
site the identities and quantities of the investment
positions that will form the basis for the Fund’s
calculation of its NAV at the end of the day.
Applicants believe that requiring Self-Indexing
Funds to maintain full portfolio transparency will
help address, together with other protections,
conflicts of interest with respect to such Funds.
E:\FR\FM\24NON1.SGM
24NON1
Agencies
[Federal Register Volume 82, Number 225 (Friday, November 24, 2017)]
[Notices]
[Pages 55888-55890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25345]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82114; File No. SR-BOX-2017-34]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Rule 7050 (Minimum Trading Increments)
November 17, 2017.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on November 8, 2017, 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 been prepared by the self-regulatory organization. The Commission
is publishing this notice to solicit comments on the proposed rule from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 7050 (Minimum Trading
Increments). 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://boxoptions.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
Currently, BOX Rule 7050(a) establishes minimum trading increments
for single leg options contracts traded on BOX. Rule 7050(a) states
that with regard to minimum trading increments for single leg options
contracts, ``the following principles shall apply: (1) If the options
contract is trading at less than $3.00 per option, five (5) cents; (2)
if the options contract is trading at $3.00 per option or higher, ten
(10) cents; and (3) if the options contract is traded pursuant to the
procedures of the Improvement Period in Rules 7150 then one (1) cent.''
Further, BOX Rule 7050(b) establishes an exception \3\ to 7050(a) while
Rule 7050(c) and (d) establish cross references to existing rules with
[[Page 55889]]
different minimum trading increments than those outlined in Rule
7050(a).\4\
---------------------------------------------------------------------------
\3\ Rule 7050(b) states that ``the Exchange will operate a pilot
program to permit options classes to be quoted and traded in
increments as low as one (1) cent.''
\4\ Rule 7050(c) states that ``the minimum trading increment for
Mini Options shall be determined in accordance with IM-5050-10(d) to
BOX Rule 5050.'' Rule 7050(d) states that the minimum trading
increment for Jumbo SPY Options shall be determined in accordance
with Rule 5050(e)(4).
---------------------------------------------------------------------------
The purpose of the proposed rule change is to amend Rule 7050 to
establish a cross reference to an existing rule about minimum trading
increments with regard to Complex Orders. Specifically, the Exchange
proposes Rule 7050(e) which states that notwithstanding any provision
of Rule 7050, the minimum trading increment for Complex Orders shall be
determined in accordance with Rule 7240(b)(1).\5\ The Exchange notes
that the proposed change will provide clarity with respect to the
Exchange's minimum trading increment rule and how it relates to Complex
Orders on the Exchange.
---------------------------------------------------------------------------
\5\ Bids and offers on Complex Orders may be expressed in any
decimal price, and the leg(s) of a Complex Order may be executed in
one cent increments, regardless of the minimum increments otherwise
applicable to the individual legs of the order. See BOX Rule
7240(b)(1).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\6\ in general, and Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to promote
just and equitable principles of trade, remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general protect investors and the public interest. The
Exchange believes it is appropriate to make the proposed change to its
rules so that market participants and investors have a clear and
accurate understanding of the meaning of the Exchange's rules. By
adding the proposed language, the Exchange is eliminating any potential
for confusion and ensuring that market participants, regulators and the
public can more easily navigate the Exchange's Rulebook. The Exchange
believes that the proposed rule change is not unfairly discriminatory
because it treats all market participants equally and will not have an
adverse impact on any market participant.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. In particular,
the Exchange does not believe that the proposal will impose a burden on
intermarket competition because the proposed change simply attempts to
clarify the Exchange rules and reduce any potential for investor
confusion. Further, the Exchange does not believe that the proposed
rule change imposes a burden on intramarket competition because the
proposed provision applies to all market participants equally. As such,
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.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the 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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \10\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The
Commission believes that waiver of the operative delay is consistent
with the protection of investors and the public interest because the
proposal will provide additional clarity to the Exchange's rules and
reduce the potential for investor confusion. As noted above, BOX Rule
7050 establishes the minimum trading increment for single options
traded on the Exchange. The proposal modifies BOX Rule 7050 by adding a
cross-reference to indicate that the trading increment for complex
orders appears in existing BOX Rule 7240(b)(1). The Commission notes
that the proposal does not modify the trading increment for complex
orders. Accordingly, the Commission hereby waives the operative delay
and designates the proposal as operative upon filing.\12\
---------------------------------------------------------------------------
\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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 change 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-2017-34 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-2017-34. 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
[[Page 55890]]
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, on official business days
between the hours of 10:00 a.m. and 3:00 p.m., located at 100 F Street
NE., Washington, DC 20549. 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. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-BOX-2017-34 and should be
submitted on or before December 15, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-25345 Filed 11-22-17; 8:45 am]
BILLING CODE 8011-01-P