Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing of Proposed Rule Change To Adopt IM-8040-3 to Rule 8040, 7084-7086 [2018-03199]
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Federal Register / Vol. 83, No. 33 / Friday, February 16, 2018 / Notices
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Dated at Rockville, Maryland, on February
13, 2018.
For the Nuclear Regulatory Commission.
Russell E. Chazell,
Advisory Committee Management Officer.
[FR Doc. 2018–03264 Filed 2–15–18; 8:45 am]
BILLING CODE 7590–01–P
POSTAL REGULATORY COMMISSION
[Docket No. CP2018–167]
New Postal Products
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
negotiated service agreements. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: February 20,
2018.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
daltland on DSKBBV9HB2PROD with NOTICES
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
VerDate Sep<11>2014
19:24 Feb 15, 2018
Jkt 244001
Timothy J. Schwuchow; Comments Due:
February 20, 2018.
Table of Contents
I. Introduction
II. Docketed Proceeding(s)
I. Introduction
The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the market dominant or
the competitive product list, or the
modification of an existing product
currently appearing on the market
dominant or the competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3007.40.
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
II. Docketed Proceeding(s)
1. Docket No(s).: CP2018–167; Filing
Title: Notice of United States Postal
Service of Filing a Functionally
Equivalent Global Expedited Package
Services 7 Negotiated Service
Agreement and Application for NonPublic Treatment of Materials Filed
Under Seal; Filing Acceptance Date:
February 12, 2018; Filing Authority: 39
CFR 3015.5; Public Representative:
PO 00000
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This notice will be published in the
Federal Register.
Stacy L. Ruble,
Secretary.
[FR Doc. 2018–03250 Filed 2–15–18; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82690; File No. SR–BOX–
2018–06]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing of Proposed Rule Change To
Adopt IM–8040–3 to Rule 8040
February 12, 2018.
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, 2018, 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
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 adopt IM–
8040–3 to Rule 8040. 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 website 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.
1 15
2 17
E:\FR\FM\16FEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 83, No. 33 / Friday, February 16, 2018 / Notices
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
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1. Purpose
The Exchange proposes to adopt IM–
8040–3 to Rule 8040. Specifically, the
Exchange is proposing that Directed
Orders 3 may be submitted with an
Auction Only designation. Further, the
Exchange is proposing that a Directed
Order with an Auction Only designation
will be cancelled if it is not entered into
the PIP by the Executing Participant
(‘‘EP’’).4
Pursuant to Rule 8040(d), upon
receipt of a Directed Order from an
Order Flow Provider (‘‘OFP’’) 5 an EP
must either submit the Directed Order to
the PIP process or send the Directed
Order to the BOX Book. Further, a
Directed Order is sent to the BOX Book
if (i) the EP has not taken action within
one second of receipt of a Directed
Order,6 (ii) the Market Maker that the
order is directed to has not
systematically indicated that it is an
EP,7 (iii) a Guaranteed Directed Order 8
has been automatically generated and is
pending, then upon receipt of a
subsequent Directed Order for the same
EP for the same series and side of the
market,9 or (iv) a Directed Order is
modified once the Trading Host has
established a GDO.10 Therefore, under
the proposal, if the Directed Order with
an Auction Only designation is to be
sent to the BOX Book, regardless of the
reason, it will instead be cancelled back
to the OFP that submitted the Directed
3 The term ‘‘Directed Order’’ means any Customer
Order to buy or sell contracts on a single option
series which has been directed to a particular
Market Maker by an Order Flow Provider. See Rule
100(a)(19). Unlike all other orders submitted to the
BOX Trading Host, Directed Orders are not
anonymous. The Options Participant identification
number (‘‘Participant ID’’) of the OFP sending the
Directed Order will be given to the Market Maker
recipient. See Rule 8040(d).
4 An Executing Participant (‘‘EP’’) is a Market
Maker who desires to accept Directed Orders.
5 The terms ‘‘Order Flow Provider’’ or ‘‘OFP’’
mean those Options Participants representing as
agent Customer Orders on BOX and those nonMarket Maker Participants conducting proprietary
trading. See Rule 100(a)(46).
6 See Rule 8040(d)(4).
7 See Rule 8040(d)(1).
8 If a Directed Order is executable against the
current NBBO and the EP is also quoting at such
NBBO on the opposite side of the Directed Order,
then the Trading Host will immediately upon
receipt of the Directed Order take down the EP’s
quote and shall guarantee the EP’s execution of the
Directed Order for at least the price and size of the
EP’s quote. This guarantee shall be called a
Guaranteed Directed Order (‘‘GDO’’). The EP’s
quote shall not be reestablished until the Directed
Order has been processed pursuant to Rule 8040(d).
See Rule 8040(d)(2)(i).
9 See Rule 8040(d)(2)(ii).
10 See Rule 8040(d)(5).
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19:24 Feb 15, 2018
Jkt 244001
Order.11 The Auction Only designation
is automatically applied by the system
and the designation is not disclosed to
the EP. Therefore, the Exchange does
not believe the proposed designation
will alter the behavior of the EP or
provide any advantage to the EP.12
The Exchange notes that the proposed
Auction Only designation is an optional
designation that the submitting OFP
may decide to utilize. The Exchange
believes the proposed change will
provide increased flexibility to OFPs
when executing orders on the Exchange
as well as provide execution certainty
because the Directed Order will either
execute via the PIP or be cancelled back.
The Exchange further believes that the
proposed designation will make the
Directed Order process more attractive
to Participants that are searching for
liquidity 13 and the potential for price
improvement.
The Exchange will provide at least
two weeks’ notice to Participants via
Circular prior to the launch of the
proposed change. The Exchange
anticipates launching in the second
quarter of 2018.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),14 in general, and Section 6(b)(5)
of the Act,15 in particular, in that it is
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
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.
In particular, the Exchange believes
the proposed rule change is designed to
remove impediments to and perfect the
mechanisms of a free and open market
and a national market system by
providing an additional tool and greater
11 Interest on the BOX Book may still interact
with a Directed Order that has the Auction Only
designation via the PIP allocation. See Rule 7150(g).
12 The Exchange notes that there currently are
restrictions on an EP’s behavior that will continue
to apply. Specifically, an EP shall not submit to
BOX a contra order to the Directed Order for his
proprietary account during the one second
following his submission of the Directed Order to
BOX. See Rule 8040(d)(6)(i).
13 Pursuant to Rule 7150(f), a Customer Order that
is submitted to the PIP must be submitted with a
matching contra side order equal to the full size of
the Customer Order, as such, the order is
guaranteed to be fully executed.
14 15 U.S.C. 78f(b).
15 15 U.S.C. 78f(b)(5).
PO 00000
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7085
flexibility for Participants executing
orders on the Exchange as well as
providing execution certainty. The
Exchange also believes the proposal will
provide opportunity for Participants to
achieve better handling of orders by
providing Participants with this
additional functionality. As a result,
adopting this proposal to allow Directed
Orders to be submitted with the Auction
Only designation will promote just and
equitable principles of trade and foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities.
As mentioned above, the EP is not
notified that a Directed Order was
submitted with the Auction Only
designation and therefore there is no
unfair advantage bestowed on the EP as
a result of the proposal. As such, the
proposal is designed to prevent
fraudulent and manipulative acts and
practices.
The Exchange believes that the
proposal removes impediments to and
perfects the mechanism of a free and
open market by enhancing the
Exchange’s market by providing market
participants the ability to send Directed
Orders with an Auction Only
designation to the Exchange. As such,
BOX believes that the proposed change
will increase flexibility to OFPs when
executing orders on the Exchange.
The Exchange believes that the
proposed Auction Only designation will
provide OFPs with a valuable tool when
executing orders on the Exchange. As
such, the Exchange believes that the
proposed change removes impediments
to and perfects the mechanism of a free
and open market because the proposed
change further promotes competition
among options exchanges. The
Exchange believes that the proposed
additional functionality for executing
Directed Orders will protect investors
and the public interest by providing
OFPs with greater flexibility and
opportunity for their orders on the
Exchange. The Exchange believes this
increased opportunity will lead to
enhanced order flow to the Exchange,
which in turn will benefit and protect
investors and the public interest
through the potential for greater volume
of orders and executions on BOX. The
Exchange believes that the proposed
rule change is not designed to permit
unfair discrimination between
customers, issues, brokers, or dealers
because the proposed additional tool for
Directed Orders is open to all OFPs and
is completely voluntary. As such, the
Exchange believes the proposed change
is consistent with the Act.
E:\FR\FM\16FEN1.SGM
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7086
Federal Register / Vol. 83, No. 33 / Friday, February 16, 2018 / Notices
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 that is not
necessary or appropriate in furtherance
of the Act. On the contrary, the
Exchange believes that the proposed
feature to Directed Orders will enhance
competition in the U.S. option markets
by providing enhanced functionality
thereby making the Exchange more
competitive with other exchanges.
Additionally, respecting intra-market
competition, the additional feature for
Directed Orders will be available to all
OFPs that submit Directed Orders to the
Exchange.
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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) by order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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 website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
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–2018–06, and should
be submitted on or before March 9,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–03199 Filed 2–15–18; 8:45 am]
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–2018–06 on the subject line.
daltland on DSKBBV9HB2PROD with NOTICES
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:
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a
Proposed Rule Change Relating to
Simplified Arbitration
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE, Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BOX–2018–06. This file
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Jkt 244001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82693; File No. SR–FINRA–
2018–003]
February 12, 2018.
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 January
29, 2018, Financial Industry Regulatory
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared by FINRA. 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 Substance of
the Proposed Rule Change
FINRA is proposing to amend FINRA
Rules 12600 and 12800 of the Code of
Arbitration Procedure for Customer
Disputes (‘‘Customer Code’’) and 13600
and 13800 of the Code of Arbitration
Procedure for Industry Disputes
(‘‘Industry Code,’’ and together with the
Customer Code, the ‘‘Codes’’), to amend
the hearing provisions to provide an
additional hearing option for parties in
arbitration with claims of $50,000 or
less, excluding interest and expenses.
The text of the proposed rule change
is available on FINRA’s website at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA 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 Codes provide two methods for
administering arbitration cases with
claims involving $50,000 or less,
excluding interest and expenses. The
default method is a decision by a single
arbitrator based on the parties’
pleadings and other materials submitted
by the parties. The alternative method
involves a full hearing with a single
arbitrator. Under the Customer Code, a
customer may request a hearing
(regardless of whether the customer is a
claimant or respondent),3 and under the
Industry Code, the claimant may request
1 15
PO 00000
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3 See
E:\FR\FM\16FEN1.SGM
FINRA Rule 12800(c).
16FEN1
]]>Agencies
[Federal Register Volume 83, Number 33 (Friday, February 16, 2018)]
[Notices]
[Pages 7084-7086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03199]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82690; File No. SR-BOX-2018-06]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing of Proposed Rule Change To Adopt IM-8040-3 to Rule 8040
February 12, 2018.
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, 2018, 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
change 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 the
Substance of the Proposed Rule Change
The Exchange proposes to adopt IM-8040-3 to Rule 8040. 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 website 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.
[[Page 7085]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to adopt IM-8040-3 to Rule 8040.
Specifically, the Exchange is proposing that Directed Orders \3\ may be
submitted with an Auction Only designation. Further, the Exchange is
proposing that a Directed Order with an Auction Only designation will
be cancelled if it is not entered into the PIP by the Executing
Participant (``EP'').\4\
---------------------------------------------------------------------------
\3\ The term ``Directed Order'' means any Customer Order to buy
or sell contracts on a single option series which has been directed
to a particular Market Maker by an Order Flow Provider. See Rule
100(a)(19). Unlike all other orders submitted to the BOX Trading
Host, Directed Orders are not anonymous. The Options Participant
identification number (``Participant ID'') of the OFP sending the
Directed Order will be given to the Market Maker recipient. See Rule
8040(d).
\4\ An Executing Participant (``EP'') is a Market Maker who
desires to accept Directed Orders.
---------------------------------------------------------------------------
Pursuant to Rule 8040(d), upon receipt of a Directed Order from an
Order Flow Provider (``OFP'') \5\ an EP must either submit the Directed
Order to the PIP process or send the Directed Order to the BOX Book.
Further, a Directed Order is sent to the BOX Book if (i) the EP has not
taken action within one second of receipt of a Directed Order,\6\ (ii)
the Market Maker that the order is directed to has not systematically
indicated that it is an EP,\7\ (iii) a Guaranteed Directed Order \8\
has been automatically generated and is pending, then upon receipt of a
subsequent Directed Order for the same EP for the same series and side
of the market,\9\ or (iv) a Directed Order is modified once the Trading
Host has established a GDO.\10\ Therefore, under the proposal, if the
Directed Order with an Auction Only designation is to be sent to the
BOX Book, regardless of the reason, it will instead be cancelled back
to the OFP that submitted the Directed Order.\11\ The Auction Only
designation is automatically applied by the system and the designation
is not disclosed to the EP. Therefore, the Exchange does not believe
the proposed designation will alter the behavior of the EP or provide
any advantage to the EP.\12\
---------------------------------------------------------------------------
\5\ The terms ``Order Flow Provider'' or ``OFP'' mean those
Options Participants representing as agent Customer Orders on BOX
and those non-Market Maker Participants conducting proprietary
trading. See Rule 100(a)(46).
\6\ See Rule 8040(d)(4).
\7\ See Rule 8040(d)(1).
\8\ If a Directed Order is executable against the current NBBO
and the EP is also quoting at such NBBO on the opposite side of the
Directed Order, then the Trading Host will immediately upon receipt
of the Directed Order take down the EP's quote and shall guarantee
the EP's execution of the Directed Order for at least the price and
size of the EP's quote. This guarantee shall be called a Guaranteed
Directed Order (``GDO''). The EP's quote shall not be reestablished
until the Directed Order has been processed pursuant to Rule
8040(d). See Rule 8040(d)(2)(i).
\9\ See Rule 8040(d)(2)(ii).
\10\ See Rule 8040(d)(5).
\11\ Interest on the BOX Book may still interact with a Directed
Order that has the Auction Only designation via the PIP allocation.
See Rule 7150(g).
\12\ The Exchange notes that there currently are restrictions on
an EP's behavior that will continue to apply. Specifically, an EP
shall not submit to BOX a contra order to the Directed Order for his
proprietary account during the one second following his submission
of the Directed Order to BOX. See Rule 8040(d)(6)(i).
---------------------------------------------------------------------------
The Exchange notes that the proposed Auction Only designation is an
optional designation that the submitting OFP may decide to utilize. The
Exchange believes the proposed change will provide increased
flexibility to OFPs when executing orders on the Exchange as well as
provide execution certainty because the Directed Order will either
execute via the PIP or be cancelled back. The Exchange further believes
that the proposed designation will make the Directed Order process more
attractive to Participants that are searching for liquidity \13\ and
the potential for price improvement.
---------------------------------------------------------------------------
\13\ Pursuant to Rule 7150(f), a Customer Order that is
submitted to the PIP must be submitted with a matching contra side
order equal to the full size of the Customer Order, as such, the
order is guaranteed to be fully executed.
---------------------------------------------------------------------------
The Exchange will provide at least two weeks' notice to
Participants via Circular prior to the launch of the proposed change.
The Exchange anticipates launching in the second quarter of 2018.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Securities Exchange Act of 1934
(the ``Act''),\14\ in general, and Section 6(b)(5) of the Act,\15\ in
particular, in that it is 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 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.
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\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes the proposed rule change is
designed to remove impediments to and perfect the mechanisms of a free
and open market and a national market system by providing an additional
tool and greater flexibility for Participants executing orders on the
Exchange as well as providing execution certainty. The Exchange also
believes the proposal will provide opportunity for Participants to
achieve better handling of orders by providing Participants with this
additional functionality. As a result, adopting this proposal to allow
Directed Orders to be submitted with the Auction Only designation will
promote just and equitable principles of trade and foster cooperation
and coordination with persons engaged in facilitating transactions in
securities.
As mentioned above, the EP is not notified that a Directed Order
was submitted with the Auction Only designation and therefore there is
no unfair advantage bestowed on the EP as a result of the proposal. As
such, the proposal is designed to prevent fraudulent and manipulative
acts and practices.
The Exchange believes that the proposal removes impediments to and
perfects the mechanism of a free and open market by enhancing the
Exchange's market by providing market participants the ability to send
Directed Orders with an Auction Only designation to the Exchange. As
such, BOX believes that the proposed change will increase flexibility
to OFPs when executing orders on the Exchange.
The Exchange believes that the proposed Auction Only designation
will provide OFPs with a valuable tool when executing orders on the
Exchange. As such, the Exchange believes that the proposed change
removes impediments to and perfects the mechanism of a free and open
market because the proposed change further promotes competition among
options exchanges. The Exchange believes that the proposed additional
functionality for executing Directed Orders will protect investors and
the public interest by providing OFPs with greater flexibility and
opportunity for their orders on the Exchange. The Exchange believes
this increased opportunity will lead to enhanced order flow to the
Exchange, which in turn will benefit and protect investors and the
public interest through the potential for greater volume of orders and
executions on BOX. The Exchange believes that the proposed rule change
is not designed to permit unfair discrimination between customers,
issues, brokers, or dealers because the proposed additional tool for
Directed Orders is open to all OFPs and is completely voluntary. As
such, the Exchange believes the proposed change is consistent with the
Act.
[[Page 7086]]
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 that is not necessary or appropriate
in furtherance of the Act. On the contrary, the Exchange believes that
the proposed feature to Directed Orders will enhance competition in the
U.S. option markets by providing enhanced functionality thereby making
the Exchange more competitive with other exchanges. Additionally,
respecting intra-market competition, the additional feature for
Directed Orders will be available to all OFPs that submit Directed
Orders to the Exchange.
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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) by order approve or disapprove the proposed rule change, or
(B) institute proceedings 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 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 [email protected]. Please include
File Number SR-BOX-2018-06 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BOX-2018-06. 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 website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal 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-2018-06, and should be submitted on
or before March 9, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-03199 Filed 2-15-18; 8:45 am]
BILLING CODE 8011-01-P
