Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (“BOX”) Options Facility To Amend SAIL Port Fees, 24832-24834 [2018-11500]

Download as PDF sradovich on DSK3GMQ082PROD with NOTICES 24832 Federal Register / Vol. 83, No. 104 / Wednesday, May 30, 2018 / Notices excluded: BNP Paribas Asset Management USA, Inc.; BNP Paribas Asset Management UK Limited; BNP Paribas Asset Management Singapore Limited; Bank of the West; First Hawaiian Bank; BancWest Investment Services, Inc.; and Bishop Street Capital Management Corp., to the extent these entities qualify as a ‘‘qualified professional asset manager’’ (as defined in Section VI(a) 11 of PTE 84–14) and rely on the relief provided by PTE 84– 14, and with respect to which BNP Paribas is an ‘‘affiliate’’ (as defined in Part VI(d) of PTE 84–14). The term ‘‘BNP Affiliated QPAM’’ excludes BNP Paribas USA, the entity implicated in the criminal conduct that is the subject of the 2018 Conviction, and BNP Paribas, the entity implicated in the 2015 Convictions. (c) The term ‘‘BNP Related QPAM’’ means any current or future ‘‘qualified professional asset manager’’ (as defined in section VI(a) of PTE 84–14) that relies on the relief provided by PTE 84–14, and with respect to which BNP Paribas owns a direct or indirect five percent or more interest, but with respect to which BNP Paribas is not an ‘‘affiliate’’ (as defined in Section VI(d)(1) of PTE 84– 14). (d) The term ‘‘BNP Convictions’’ mean the 2015 Convictions against BNP Paribas and the 2018 Conviction against BNP Paribas USA. More specifically: (1) The ‘‘2015 Convictions’’ refers to the judgments of conviction against BNP Paribas in: (A) Case number 14–cr– 00460 (LGS) in the United States District Court for the Southern District of New York for conspiracy to commit an offense against the United States in violation of Title 18, United States Code, Section 371, by conspiring to violate the International Emergency Economic Powers Act, codified at Title 50, United States Code, Section 1701 et seq., and regulations issued thereunder, and the Trading with the Enemy Act, codified at Title 50, United States Code Appendix, Section 1 et seq., and regulations issued thereunder; and (B) case number 2014 NY 051231 in the Supreme Court of the State of New York, County of New York for falsifying business records in the first degree, in violation of Penal Law § 175.10, and conspiracy in the fifth degree, in violation of Penal Law § 105.05(1). (2) The term ‘‘2018 Conviction’’ refers to the judgment of conviction against BNP Paribas USA for violation of the Sherman Antitrust Act, 15 U.S.C. 1, which is scheduled to be entered in the United States District Court for the Southern District of New York (the District Court) (case number 1:18–cr– 61–JSR, in connection with BNP Paribas USA for certain foreign exchange misconduct (the FX Misconduct). (e) The term ‘‘Conviction Date’’ means the date that a judgment of conviction against BNP Paribas USA is entered by the District Court in connection with the 2018 Conviction; (f) The term ‘‘Covered Plan’’ means a plan subject to Part 4 of Title I of ERISA (an ‘‘ERISA-covered plan’’) or a plan subject to section 4975 of the Code (an ‘‘IRA’’), in each case, with respect to which a BNP Affiliated QPAM relies on PTE 84–14, or with respect to which a BNP Affiliated QPAM (or any BNP Paribas affiliate) has expressly represented that the manager qualifies as a QPAM or relies on the QPAM class exemption (PTE 84–14). A Covered Plan does not include an ERISA-covered plan or IRA to the extent the BNP Affiliated QPAM has expressly disclaimed reliance on QPAM status or PTE 84–14 in entering into a contract, arrangement, or agreement with the ERISA-covered plan or IRA. (g) The term ‘‘Exemption Period’’ means one year from the Conviction Date. (h) The term ‘‘Plea Agreement’’ means the agreement that was entered into on January 19, 2018, as between BNP Paribas USA and the United States Department of Justice, and filed in the District Court, involving the FX Misconduct. Effective Date: This exemption is effective for one year from the Conviction Date. Signed at Washington, DC, this 23rd day of May, 2018. Lyssa Hall, Director of Exemption Determinations, Employee Benefits Security Administration, U.S. Department of Labor. [FR Doc. 2018–11473 Filed 5–29–18; 8:45 am] BILLING CODE 4510–29–P 11 In VerDate Sep<11>2014 17:04 May 29, 2018 Jkt 244001 The U.S. Nuclear Regulatory Commission (NRC) is correcting a notice that was published in the Federal Register (FR) on April 26, 2018, regarding the issuance of a draft environmental impact statement (DEIS) that is part of the review of the application for the early site permit, and to provide the public with an opportunity to comment on the DEIS process as defined in the regulations. This action is necessary to correct the end date of the comment period from July 10, 2018 to July 13, 2018. DATES: The document published at 83 FR 18354 on April 26, 2018, is corrected as of May 30, 2018. FOR FURTHER INFORMATION CONTACT: Tamsen Dozier, Office of New Reactors, U.S. Nuclear Regulatory Commission, Washington, DC 20555–0001; telephone: 301–415–2272, email: Tamsen.Dozier@ nrc.gov. SUPPLEMENTARY INFORMATION: In the Federal Register of April 26, 2018 (83 FR 18354), in FR Doc. 2018–08714, on page 18355, in the first column, in the DATES section, correct the comment period due date from ‘‘July 10, 2018’’ to ‘‘July 13, 2018.’’ SUMMARY: Dated at Rockville, Maryland, this 24th day of May, 2018. For the Nuclear Regulatory Commission. Andrew C. Campbell, Acting Director, Division of New Reactor Licensing, Office of New Reactors. [FR Doc. 2018–11550 Filed 5–29–18; 8:45 am] BILLING CODE 7590–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–83310; File No. SR–BOX– 2018–16] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Market LLC (‘‘BOX’’) Options Facility To Amend SAIL Port Fees May 23, 2018. NUCLEAR REGULATORY COMMISSION [NRC–2016–0119] general terms, a QPAM is an independent fiduciary that is a bank, savings and loan association, insurance company, or investment adviser that meets certain equity or net worth requirements and other licensure requirements and that has acknowledged in a written management agreement that it is a fiduciary with respect to each plan that has retained the QPAM. Draft environmental impact statement; public meetings and request for comment; correction. ACTION: Early Site Permit Application; Tennessee Valley Authority; Clinch River Nuclear Site; Correction Nuclear Regulatory Commission. AGENCY: PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 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 May 11, 2018, BOX Options Exchange LLC (the ‘‘Exchange’’) filed with the Securities and Exchange Commission 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. E:\FR\FM\30MYN1.SGM 30MYN1 Federal Register / Vol. 83, No. 104 / Wednesday, May 30, 2018 / Notices (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Exchange filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange is filing with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change to amend the Fee Schedule to on [sic] the BOX Market LLC (‘‘BOX’’) options facility. 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://boxexchange.com. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. sradovich on DSK3GMQ082PROD with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Section VI.B (Port Fees) of the BOX Fee Schedule. Specifically, the Exchange proposes to amend the SOLA® Access Information Language (‘‘SAIL’’) Port Fees on the Exchange. Currently, Market Makers are assessed a monthly fee of $1,000 for all Ports. The Exchange proposes to rename the ‘‘Market Maker’’ Port to ‘‘Market Making’’ Port. The Exchange notes that the monthly $1000 flat fee will remain for all Market Making Ports 5 on the Exchange. 3 15 U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 5 While Market Makers on BOX currently connect to at least 16 SAIL Market Making Ports to satisfy their quoting requirements, the Exchange notes that 4 17 VerDate Sep<11>2014 17:04 May 29, 2018 Jkt 244001 Additionally, the Exchange proposes to rename ‘‘Other Participants’’ to ‘‘Order Entry.’’ With this change, all SAIL Ports used solely for order entry purposes will be charged $500 per month per Port for Ports 1–5 and $150 per month per additional Port, regardless of account type. 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act, in general, and Section 6(b)(4) and 6(b)(5)of the Act,6 in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among BOX Participants and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The Exchange believes that the proposed changes are reasonable, equitable and not unfairly discriminatory. The Exchange recently established Port Fees for Participants. BOX Market Makers currently connect to a minimum of sixteen (16) SAIL Ports and pay a flat monthly fee for these connections.7 The Exchange now proposes to clarify that the current flat fee of $1,000 per month is for Ports used for market making purposes (i.e. quoting) only. As discussed above, the number of SAIL Port connections for market making purposes vary based on the Market Maker. The Exchange recognizes that the various BOX Market Makers may not need the same number of SAIL Port connections due to different technology architecture and trading systems. As such, the Exchange proposes the current flat fee of $1,000 for all Marketing Making SAIL Ports as to not disincentivize Market Makers from quoting on BOX. Further, the Exchange proposes to rename the ‘‘Other Participants’’ Port to ‘‘Order Entry’’ Port. The Exchange believes that this change provides clarity with respect to the types of SAIL Ports in use. With this change, all Participants will be charged $500 per month per Port for Ports 1–5 and $150 per month per additional Port. The Exchange believes that this proposed change is equitable and not unfairly discriminatory as the Order Entry Port fees are assessed to all Participants that use SAIL for order entry on BOX, the total number of SAIL Market Making Ports used varies based on the Market Maker. The Exchange believes that charging a flat fee for all market making Ports is reasonable and appropriate as the Exchange does not want to disincentivize Market Makers from quoting on BOX, regardless of how many Market Making Ports the Market Makers use. 6 15 U.S.C. 78f(b)(4) and (5). 7 See SR–BOX–2018–15. PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 24833 regardless of account type. Lastly, the Exchange believes that the proposed change is reasonable and appropriate as other exchanges in the industry assess market making port fees separate from order entry port fees.8 B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. Unilateral action by BOX in establishing fees for services provided to its Participants and others using its facilities will not have an impact on competition. As a small Exchange in the already highly competitive environment for options trading, BOX does not have the market power necessary to set prices for services that are unreasonable or unfairly discriminatory in violation of the Exchange Act. BOX’s proposed fees, as described herein, are comparable to and generally lower than fees charged by other options exchanges for the same or similar services. Lastly, the Exchange believes the proposed change will not impose a burden on intramarket competition as the proposed fees are applicable to all Participants who connect to BOX. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Exchange Act 9 and 8 See Miami International Securities Exchange LLC (‘‘MIAX’’) Fee Schedule. MIAX charges its Market Makers monthly MEI Port Fees based on Market Maker Class Assignment. Additionally, they assess all Members (Market Makers included) FIX Port fees which allows such Members to enter orders on the exchange. Members are assessed $550 per month for the 1st FIX Port, $350 per month per Port for FIX Ports 2 through 5 and $150 per month per Port for additional FIX Ports over 5. See also Nasdaq Options Market (‘‘NOM’’) Fee Schedule. NOM also charges its Market Makers monthly Quote Port Fees based on number of Ports. They also assess an Order Entry Port Fee of $650 per month per mnemonic that Market Makers may also use if entering orders on the Exchange. BOX notes that the SAIL Port is slightly different than the above ports, as both Market Makers and other BOX Participants may connect through the SAIL Port to enter orders on the Exchange. 9 15 U.S.C. 78s(b)(3)(A)(ii). E:\FR\FM\30MYN1.SGM 30MYN1 24834 Federal Register / Vol. 83, No. 104 / Wednesday, May 30, 2018 / Notices Rule 19b–4(f)(2) thereunder,10 because it establishes or changes a due, or fee. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend the rule change if it appears to the Commission that the action is necessary or appropriate in the public interest, for the protection of investors, or would otherwise further the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: 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– BOX–2018–16 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–2018–16. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet 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 10 17 CFR 240.19b–4(f)(2). VerDate Sep<11>2014 17:04 May 29, 2018 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–2018–16, and should be submitted on or before June 20, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Brent J. Fields, Secretary. [FR Doc. 2018–11500 Filed 5–29–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meetings 3:00 p.m. on Thursday, May 31, 2018. PLACE: Closed Commission Hearing Room 10800. STATUS: This meeting will be closed to the public. MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the closed meeting. Certain staff members who have an interest in the matters also may be present. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR 200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10), permit consideration of the scheduled matters at the closed meeting. Commissioner Peirce, as duty officer, voted to consider the items listed for the closed meeting in closed session. The subject matters of the closed meeting will be: TIME AND DATE: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; Resolution of litigation claims; and Other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting items. CONTACT PERSON FOR MORE INFORMATION: For further information and to ascertain what, if any, matters have been added, deleted or postponed; please contact 11 17 Jkt 244001 PO 00000 CFR 200.30–3(a)(12). Frm 00118 Fmt 4703 Sfmt 4703 Brent J. Fields from the Office of the Secretary at (202) 551–5400. Dated: May 24, 2018. Brent J. Fields, Secretary. [FR Doc. 2018–11630 Filed 5–25–18; 11:15 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–83311; File No. SR–ICEEU– 2018–007] Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amendments to the Clearing Rules To Implement the European Union General Data Protection Regulation May 23, 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 May 22, 2018, ICE Clear Europe Limited (‘‘ICE Clear Europe’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule changes described in Items I and II below, which Items have been prepared by ICE Clear Europe. ICE Clear Europe filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 so that the proposal was immediately effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Clearing Agency’s Statement of the Terms of Substance of the Proposed Rule Change, Security-Based Swap Submission, or Advance Notice ICE Clear Europe proposes to make certain amendments to its Clearing Rules (the ‘‘Rules’’) to comply with certain requirements of the European Union General Data Protection Regulation (‘‘GDPR’’) 5. II. Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change, Security-Based Swap Submission or Advance Notice In its filing with the Commission, ICE Clear Europe included statements 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 5 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data. 2 17 E:\FR\FM\30MYN1.SGM 30MYN1

Agencies

[Federal Register Volume 83, Number 104 (Wednesday, May 30, 2018)]
[Notices]
[Pages 24832-24834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11500]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83310; File No. SR-BOX-2018-16]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the Fee Schedule on the BOX Market LLC (``BOX'') Options Facility 
To Amend SAIL Port Fees

May 23, 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 May 11, 2018, BOX Options Exchange LLC (the ``Exchange'') filed 
with the Securities and Exchange Commission

[[Page 24833]]

(``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the Exchange. The 
Exchange filed the proposed rule change pursuant to Section 
19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\ 
which renders the proposal effective upon filing with the Commission. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange is filing with the Securities and Exchange Commission 
(``Commission'') a proposed rule change to amend the Fee Schedule to on 
[sic] the BOX Market LLC (``BOX'') options facility. 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://boxexchange.com.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Section VI.B (Port Fees) of the BOX 
Fee Schedule. Specifically, the Exchange proposes to amend the 
SOLA[supreg] Access Information Language (``SAIL'') Port Fees on the 
Exchange. Currently, Market Makers are assessed a monthly fee of $1,000 
for all Ports. The Exchange proposes to rename the ``Market Maker'' 
Port to ``Market Making'' Port. The Exchange notes that the monthly 
$1000 flat fee will remain for all Market Making Ports \5\ on the 
Exchange. Additionally, the Exchange proposes to rename ``Other 
Participants'' to ``Order Entry.'' With this change, all SAIL Ports 
used solely for order entry purposes will be charged $500 per month per 
Port for Ports 1-5 and $150 per month per additional Port, regardless 
of account type.
---------------------------------------------------------------------------

    \5\ While Market Makers on BOX currently connect to at least 16 
SAIL Market Making Ports to satisfy their quoting requirements, the 
Exchange notes that the total number of SAIL Market Making Ports 
used varies based on the Market Maker. The Exchange believes that 
charging a flat fee for all market making Ports is reasonable and 
appropriate as the Exchange does not want to disincentivize Market 
Makers from quoting on BOX, regardless of how many Market Making 
Ports the Market Makers use.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act, in general, and Section 
6(b)(4) and 6(b)(5)of the Act,\6\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among BOX Participants and other persons using its facilities 
and does not unfairly discriminate between customers, issuers, brokers 
or dealers.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed changes are reasonable, 
equitable and not unfairly discriminatory. The Exchange recently 
established Port Fees for Participants. BOX Market Makers currently 
connect to a minimum of sixteen (16) SAIL Ports and pay a flat monthly 
fee for these connections.\7\ The Exchange now proposes to clarify that 
the current flat fee of $1,000 per month is for Ports used for market 
making purposes (i.e. quoting) only. As discussed above, the number of 
SAIL Port connections for market making purposes vary based on the 
Market Maker. The Exchange recognizes that the various BOX Market 
Makers may not need the same number of SAIL Port connections due to 
different technology architecture and trading systems. As such, the 
Exchange proposes the current flat fee of $1,000 for all Marketing 
Making SAIL Ports as to not disincentivize Market Makers from quoting 
on BOX.
---------------------------------------------------------------------------

    \7\ See SR-BOX-2018-15.
---------------------------------------------------------------------------

    Further, the Exchange proposes to rename the ``Other Participants'' 
Port to ``Order Entry'' Port. The Exchange believes that this change 
provides clarity with respect to the types of SAIL Ports in use. With 
this change, all Participants will be charged $500 per month per Port 
for Ports 1-5 and $150 per month per additional Port. The Exchange 
believes that this proposed change is equitable and not unfairly 
discriminatory as the Order Entry Port fees are assessed to all 
Participants that use SAIL for order entry on BOX, regardless of 
account type. Lastly, the Exchange believes that the proposed change is 
reasonable and appropriate as other exchanges in the industry assess 
market making port fees separate from order entry port fees.\8\
---------------------------------------------------------------------------

    \8\ See Miami International Securities Exchange LLC (``MIAX'') 
Fee Schedule. MIAX charges its Market Makers monthly MEI Port Fees 
based on Market Maker Class Assignment. Additionally, they assess 
all Members (Market Makers included) FIX Port fees which allows such 
Members to enter orders on the exchange. Members are assessed $550 
per month for the 1st FIX Port, $350 per month per Port for FIX 
Ports 2 through 5 and $150 per month per Port for additional FIX 
Ports over 5. See also Nasdaq Options Market (``NOM'') Fee Schedule. 
NOM also charges its Market Makers monthly Quote Port Fees based on 
number of Ports. They also assess an Order Entry Port Fee of $650 
per month per mnemonic that Market Makers may also use if entering 
orders on the Exchange. BOX notes that the SAIL Port is slightly 
different than the above ports, as both Market Makers and other BOX 
Participants may connect through the SAIL Port to enter orders on 
the Exchange.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. Unilateral action by BOX in 
establishing fees for services provided to its Participants and others 
using its facilities will not have an impact on competition. As a small 
Exchange in the already highly competitive environment for options 
trading, BOX does not have the market power necessary to set prices for 
services that are unreasonable or unfairly discriminatory in violation 
of the Exchange Act. BOX's proposed fees, as described herein, are 
comparable to and generally lower than fees charged by other options 
exchanges for the same or similar services. Lastly, the Exchange 
believes the proposed change will not impose a burden on intramarket 
competition as the proposed fees are applicable to all Participants who 
connect to BOX.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Exchange Act \9\ and

[[Page 24834]]

Rule 19b-4(f)(2) thereunder,\10\ because it establishes or changes a 
due, or fee.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend the rule 
change if it appears to the Commission that the action is necessary or 
appropriate in the public interest, for the protection of investors, or 
would otherwise further the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BOX-2018-16 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-2018-16. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet 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-2018-16, and should be submitted on 
or before June 20, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2018-11500 Filed 5-29-18; 8:45 am]
 BILLING CODE 8011-01-P
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