Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing of Proposed Rule Change To Amend Rules 7150 and 7245, 25074-25076 [2018-11607]
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Federal Register / Vol. 83, No. 105 / Thursday, May 31, 2018 / Notices
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Asset-Based Distribution and/or Service
Fees
1. Section 17(d) of the Act and rule
17d–1 under the Act prohibit an
affiliated person of a registered
investment company, or an affiliated
person of such person, acting as
principal, from participating in or
effecting any transaction in connection
with any joint enterprise or joint
arrangement in which the investment
company participates unless the
Commission issues an order permitting
the transaction. In reviewing
applications submitted under section
17(d) and rule 17d–1, the Commission
considers whether the participation of
the investment company in a joint
enterprise or joint arrangement is
consistent with the provisions, policies
and purposes of the Act, and the extent
to which the participation is on a basis
different from or less advantageous than
that of other participants.
2. Rule 17d–3 under the Act provides
an exemption from section 17(d) and
rule 17d–1 to permit open-end
investment companies to enter into
distribution arrangements pursuant to
rule 12b–1 under the Act. Applicants
request an order under section 17(d) and
rule 17d–1 under the Act to the extent
necessary to permit the Fund to impose
asset-based distribution and/or service
fees. Applicants have agreed to comply
with rules 12b–1 and 17d–3 as if those
rules applied to closed-end investment
companies, which they believe will
resolve any concerns that might arise in
connection with a Fund financing the
distribution of its shares through assetbased fees.
For the reasons stated above,
applicants submit that the exemptions
requested under section 6(c) are
necessary and appropriate in the public
interest and are consistent with the
protection of investors and the purposes
fairly intended by the policy and
provisions of the Act. Applicants further
submit that the relief requested
pursuant to section 23(c)(3) will be
consistent with the protection of
investors and will insure that applicants
do not unfairly discriminate against any
holders of the class of securities to be
purchased. Finally, applicants state that
the Funds’ imposition of asset-based
distribution and/or service fees is
consistent with the provisions, policies
and purposes of the Act and does not
involve participation on a basis different
from or less advantageous than that of
other participants. Applicants therefore
believe that the requested relief meets
the standards of section 6(c) of the Act.
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Applicants’ Condition
Applicants agree that any order
granting the requested relief will be
subject to the following condition:
Each Fund relying on the order will
comply with the provisions of rules 6c–
10, 12b–1, 17d–3, 18f–3, 22d–1, and,
where applicable, 11a–3 under the Act,
as amended from time to time, as if
those rules applied to closed-end
management investment companies,
and will comply with the FINRA Sales
Charge Rule, as amended from time to
time, as if that rule applied to all closedend management investment
companies.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–11594 Filed 5–30–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83317; File No. SR–BOX–
2018–17]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing of Proposed Rule Change To
Amend Rules 7150 and 7245
May 24, 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 14,
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 amend
Rules 7150 and 7245. 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.
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Fmt 4703
Sfmt 4703
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rules 7150 (Price Improvement Period
(‘‘PIP’’)) and 7245 (Complex Price
Improvement Period (‘‘COPIP’’)) to
provide additional information in the
respective auction notifications.
Specifically, the Exchange is proposing
to provide the account type of the PIP
Order 3 and COPIP Order 4 as part of the
auction broadcast.5
The system commences a PIP and
COPIP Auction by broadcasting a
message via the High Speed Vendor
Feed (‘‘HSVF’’).6 Currently, the
broadcast: (1) States that a Primary
Improvement Order 7 has been
processed; (2) contains information
concerning series,8 size, start price, and
side of market; and (3) states when the
auction will conclude. The Exchange is
now proposing that, in addition to the
above information, the broadcast will
include the account type of the PIP and
COPIP Order.9 The Exchange notes that
other option exchanges provide account
type information for orders on their
electronic book as part of their data
feeds.10
3 A PIP Order is an order that is executed entirely
via the Price Improvement Period (‘‘PIP’’). See Rule
7150(f).
4 A COPIP Orders is a Complex Order that is
executed via the Complex Order Price Improvement
Period (‘‘COPIP’’). See Rule 7245(f).
5 BOX has the following account types: Public
Customer, Professional Customer, Broker Dealer,
Market Maker and Away Market Maker. See RC–
2014–05A for more details.
6 See Rules 7150(f) and 7245(f).
7 A Primary Improvement Order is a contra side
order equal to the full size of the PIP or COPIP
Order. See Rules 7150(f) and 7245(f).
8 For a COPIP, the strategy identifier is
broadcasted.
9 See proposed changes to Rules 7150(f) and
7245(f).
10 See Securities Exchange Act Release No. 74759
(April 17, 2015), 80 FR 22749 (Notice of Filing and
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Federal Register / Vol. 83, No. 105 / Thursday, May 31, 2018 / Notices
amozie on DSK3GDR082PROD with NOTICES1
The HSVF provides data to enhance
the ability of subscribers to analyze
market conditions and to create and test
trading models and analytical strategies.
In response to Participant feedback, the
Exchange is exploring the feasibility of
adding information (i.e. account type)
that market participants can use to gain
comprehensive insight into the trading
activity on the Exchange as well as
additional transparency with regard to
orders submitted to the Exchange. The
Exchange is proposing to first include
the account type of the PIP and COPIP
Order into the PIP Broadcast because
such a change can be implemented
quickly.11 The Exchange believes that
providing the proposed information is
important as it will provide additional
transparency to market participants so
they may have greater insight into the
order flow on the Exchange.
The Exchange does not believe the
proposed change will have a material
impact on competition. Specifically, the
Exchange does not believe that the
proposed change will have a noticeable
impact on competition or the level of
responses during an auction. The
Exchange believes that Participants will
ultimately make a determination on
whether to respond to the auction based
on price, size, current quote and market
conditions. The proposed information
will provide additional transparency to
Participants; however, it should not
materially affect participation during
the auctions. As such, the Exchange
believes the proposed change is not
unfairly discriminatory.12
Immediate Effectiveness SR–MIAX–2015–28). The
MIAX Order Feed provides, among other things, the
origin of each order for the entire order book to its
users. The Exchange notes there are certain
differences between the proposal and the MIAX
Order Feed. Specifically, the Exchange is only
proposing to provide the account type for PIP and
COPIP Orders while MIAX provides the account
type of each order for the entire order book, but not
for auctions. The Exchange believes this is a minor
difference because both exchanges are providing the
same information (i.e., account type) with BOX
providing it to a limited subset of orders where
MIAX is not providing such information. Further,
as expressed in the proposal, the Exchange does not
believe that the proposed information will have a
material impact on the participation during the PIP
and COPIP auctions. Therefore, the Exchange
believes it is reasonable and consistent with the Act
to provide the proposed information for PIP and
COPIP Orders. See also Securities Exchange Act
Release No. 66993 (May 15, 2012), 77 FR 30043
(Notice of Filing and Immediate Effectiveness SR–
PHLX–2012–63).
11 The Exchange notes that including the account
type of all orders on the BOX Book would take
substantially longer to implement. The Exchange
believes that providing the account type for PIP and
COPIP Orders can be implemented in a short time
frame and will allow the Exchange to assess
whether such information would be beneficial in
BOX’s HSVF.
12 The Exchange notes that PIP and COPIP Orders
are entered into the system with a contra-side order
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The Exchange anticipates
implementing the proposed change
during the third quarter of 2018,
pending approval of this filing. The
Exchange will provide at least two
weeks notification to Participants of the
exact implementation date via Circular.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 13 in general, and furthers the
objectives of Section 6(b)(5) of the Act 14
in particular, in that it is designed to
promote just and equitable principles of
trade, 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 additional information and
insight to Participants. Further, the
Exchange believes that the proposed
change will enhance Participants’
ability to make more informed and
timely trading decisions. Additionally,
as set forth above, the Exchange believes
that the proposed change is reasonable
and appropriate as another options
exchange disseminates account type
information on orders.15
The Exchange believes the proposed
change is not unfairly discriminatory
because the proposed information will
be available to all subscribers of the
HSVF. As such, the Exchange does not
believe the proposed change will have
an adverse impact on any market
participant. Additionally, as explained
above, the Exchange does not believe
the proposed change will have a
material impact on competition during
the auctions.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
This proposed change will give
market participants greater information
on which to base their trading strategies.
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. As discussed
above, other option exchanges include
account type information in their data
feeds. Additionally, the Exchange does
guaranteeing the full size of the PIP or COPIP Order.
Therefore, the PIP and COPIP Order is fully
guaranteed and will always receive a full execution
once submitted to the system.
13 15 U.S.C. 78f(b).
14 15 U.S.C. 78f(b)(5).
15 See supra note 10.
PO 00000
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25075
not believe that the proposed change
will have a material impact on
competition during the auction.
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 rule-comments@
sec.gov. Please include File Number SR–
BOX–2018–17 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–2018–17. 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
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Federal Register / Vol. 83, No. 105 / Thursday, May 31, 2018 / Notices
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–2018–17, and should
be submitted on or before June 21, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–11607 Filed 5–30–18; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83324; File No. SR–
NYSEArca–2018–31]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend NYSE Arca
Rule 5.3–E To Exclude Certain
Categories of Issuers From the
Exchange’s Annual Meeting
Requirement
amozie on DSK3GDR082PROD with NOTICES1
May 24, 2018.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’),2 and Rule 19b–4 thereunder,3
notice is hereby given that, on May 16,
2018, NYSE Arca, Inc. (the ‘‘Exchange’’
or ‘‘NYSE Arca’’) filed with the
Securities and Exchange Commission
(the ‘‘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.
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Jkt 241001
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 those 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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
16 17
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
NYSE Arca Rule 5.3–E to exclude
certain categories of issuers from the
Exchange’s annual meeting requirement.
The proposed rule change is available
on the Exchange’s website at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
1. Purpose
NYSE Arca proposes to amend NYSE
Arca Rule 5.3–E to exclude certain
categories of issuers from the
Exchange’s annual meeting requirement.
NYSE Arca Rule 5.3–E(e) provides
that a listed company is required to hold
an annual meeting of shareholders to
elect directors and to take action on
other corporate matters in accordance
with its charter, by-laws and applicable
state or other laws. The preamble to
Rule 5.3–E provides that preferred and
debt listings, passive business
organizations (such as royalty trusts),
derivative and special purpose
securities 4 are not required to comply
with certain of the Corporate
Governance and Disclosure Policies set
forth in NYSE Arca Rule 5.3–E.5
However, the preamble does not
exclude the obligation to hold an annual
meeting pursuant to NYSE Arca Rule
5.3–E(e) from those requirements with
which such issuers must comply.
Holders of non-voting preferred and
debt securities, securities of passive
4 Derivative and special purpose securities are
securities listed pursuant to Rules 5.2–E(h), 5.2–
E(j)(2)–(6) and Rule 8–E (8.100–E, 8.200–E, 8.201–
E, 8.202–E, 8.203–E, 8.204–E, 8.300–E, 8.400–E,
8.600–E and 8.700–E), including Exchange Traded
Funds (‘‘ETFs’’) and similar products.
5 See Securities Exchange Act Release No. 49810
(June 4, 2004), 69 FR 32647 (June 10, 2004).
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
business organizations (such as royalty
trusts) and derivative and special
purpose securities either do not have
the right to elect directors at annual
meetings or have the right to elect
directors only in very limited
circumstances. For example, holders of
non-voting preferred securities may
have the right to temporarily elect
directors if dividends on such securities
have not been paid for a specified
period of time. Absent such special
circumstances, in no event do holders of
the securities listed above elect directors
on an annual basis. Despite the fact that
there is no matter with respect to which
holders of these securities have an
annual voting right under state law or
their governing documents, NYSE Arca
rules currently do not exclude the
issuers of such securities from the
requirement that they hold an annual
meeting of shareholders.
NYSE Arca now proposes to change
the preamble to Rule 5.3–E to provide
that issuers of these securities would
not need to satisfy the requirement to
hold an annual meeting under Rule 5.3–
E(e)(1). The Exchange also proposes to
clarify that the exclusions for preferred
stock set forth in that provision are
specifically applicable only to nonvoting preferred stock. Notwithstanding
the exclusions noted above, if an issuer
also lists common stock or voting
preferred stock, or their equivalent, such
issuer must still hold an annual meeting
for the holders of that common stock or
voting preferred stock, or their
equivalent. The Exchange further
proposes to clarify NYSE Arca Rule 5.3–
E(e)(1) by specifying that the annual
meeting requirement contained in such
rule is applicable to issuers listing
common stock or voting preferred stock,
and their equivalents 6 and that such
annual meeting requirement is
inapplicable to preferred and debt
listings, passive business organizations
(such as royalty trusts), and certain
categories of derivative and special
purpose securities listed pursuant to
Rules 5.2–E(h), 5.2–E(j)(2)–(6) and 8–E
(8.100–E, 8.200–E, 8.201–E, 8.202–E,
8.203–E, 8.204–E, 8.300–E, 8.400–E,
8.600–E and 8.700–E).
The Exchange notes that the listing
rules of the NASDAQ Stock Market LLC
(‘‘NASDAQ’’), Cboe BZX Exchange, Inc.
(‘‘Cboe BZX’’) and NYSE American LLC
(‘‘NYSE American’’) all provide explicit
exclusions for issuers of ETFs and other
derivative securities products from the
annual meeting requirements in their
6 This language is identical to that used in the
NASDAQ annual meeting rule. See NASDAQ
Marketplace Rules IM–5620.
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]]>Agencies
[Federal Register Volume 83, Number 105 (Thursday, May 31, 2018)]
[Notices]
[Pages 25074-25076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11607]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83317; File No. SR-BOX-2018-17]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing of Proposed Rule Change To Amend Rules 7150 and 7245
May 24, 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 14, 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 amend Rules 7150 and 7245. 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.
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 Rules 7150 (Price Improvement Period
(``PIP'')) and 7245 (Complex Price Improvement Period (``COPIP'')) to
provide additional information in the respective auction notifications.
Specifically, the Exchange is proposing to provide the account type of
the PIP Order \3\ and COPIP Order \4\ as part of the auction
broadcast.\5\
---------------------------------------------------------------------------
\3\ A PIP Order is an order that is executed entirely via the
Price Improvement Period (``PIP''). See Rule 7150(f).
\4\ A COPIP Orders is a Complex Order that is executed via the
Complex Order Price Improvement Period (``COPIP''). See Rule
7245(f).
\5\ BOX has the following account types: Public Customer,
Professional Customer, Broker Dealer, Market Maker and Away Market
Maker. See RC-2014-05A for more details.
---------------------------------------------------------------------------
The system commences a PIP and COPIP Auction by broadcasting a
message via the High Speed Vendor Feed (``HSVF'').\6\ Currently, the
broadcast: (1) States that a Primary Improvement Order \7\ has been
processed; (2) contains information concerning series,\8\ size, start
price, and side of market; and (3) states when the auction will
conclude. The Exchange is now proposing that, in addition to the above
information, the broadcast will include the account type of the PIP and
COPIP Order.\9\ The Exchange notes that other option exchanges provide
account type information for orders on their electronic book as part of
their data feeds.\10\
---------------------------------------------------------------------------
\6\ See Rules 7150(f) and 7245(f).
\7\ A Primary Improvement Order is a contra side order equal to
the full size of the PIP or COPIP Order. See Rules 7150(f) and
7245(f).
\8\ For a COPIP, the strategy identifier is broadcasted.
\9\ See proposed changes to Rules 7150(f) and 7245(f).
\10\ See Securities Exchange Act Release No. 74759 (April 17,
2015), 80 FR 22749 (Notice of Filing and Immediate Effectiveness SR-
MIAX-2015-28). The MIAX Order Feed provides, among other things, the
origin of each order for the entire order book to its users. The
Exchange notes there are certain differences between the proposal
and the MIAX Order Feed. Specifically, the Exchange is only
proposing to provide the account type for PIP and COPIP Orders while
MIAX provides the account type of each order for the entire order
book, but not for auctions. The Exchange believes this is a minor
difference because both exchanges are providing the same information
(i.e., account type) with BOX providing it to a limited subset of
orders where MIAX is not providing such information. Further, as
expressed in the proposal, the Exchange does not believe that the
proposed information will have a material impact on the
participation during the PIP and COPIP auctions. Therefore, the
Exchange believes it is reasonable and consistent with the Act to
provide the proposed information for PIP and COPIP Orders. See also
Securities Exchange Act Release No. 66993 (May 15, 2012), 77 FR
30043 (Notice of Filing and Immediate Effectiveness SR-PHLX-2012-
63).
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[[Page 25075]]
The HSVF provides data to enhance the ability of subscribers to
analyze market conditions and to create and test trading models and
analytical strategies. In response to Participant feedback, the
Exchange is exploring the feasibility of adding information (i.e.
account type) that market participants can use to gain comprehensive
insight into the trading activity on the Exchange as well as additional
transparency with regard to orders submitted to the Exchange. The
Exchange is proposing to first include the account type of the PIP and
COPIP Order into the PIP Broadcast because such a change can be
implemented quickly.\11\ The Exchange believes that providing the
proposed information is important as it will provide additional
transparency to market participants so they may have greater insight
into the order flow on the Exchange.
---------------------------------------------------------------------------
\11\ The Exchange notes that including the account type of all
orders on the BOX Book would take substantially longer to implement.
The Exchange believes that providing the account type for PIP and
COPIP Orders can be implemented in a short time frame and will allow
the Exchange to assess whether such information would be beneficial
in BOX's HSVF.
---------------------------------------------------------------------------
The Exchange does not believe the proposed change will have a
material impact on competition. Specifically, the Exchange does not
believe that the proposed change will have a noticeable impact on
competition or the level of responses during an auction. The Exchange
believes that Participants will ultimately make a determination on
whether to respond to the auction based on price, size, current quote
and market conditions. The proposed information will provide additional
transparency to Participants; however, it should not materially affect
participation during the auctions. As such, the Exchange believes the
proposed change is not unfairly discriminatory.\12\
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\12\ The Exchange notes that PIP and COPIP Orders are entered
into the system with a contra-side order guaranteeing the full size
of the PIP or COPIP Order. Therefore, the PIP and COPIP Order is
fully guaranteed and will always receive a full execution once
submitted to the system.
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The Exchange anticipates implementing the proposed change during
the third quarter of 2018, pending approval of this filing. The
Exchange will provide at least two weeks notification to Participants
of the exact implementation date via Circular.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \13\ in general, and furthers the objectives of Section
6(b)(5) of the Act \14\ in particular, in that it is designed to
promote just and equitable principles of trade, 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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\13\ 15 U.S.C. 78f(b).
\14\ 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 additional
information and insight to Participants. Further, the Exchange believes
that the proposed change will enhance Participants' ability to make
more informed and timely trading decisions. Additionally, as set forth
above, the Exchange believes that the proposed change is reasonable and
appropriate as another options exchange disseminates account type
information on orders.\15\
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\15\ See supra note 10.
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The Exchange believes the proposed change is not unfairly
discriminatory because the proposed information will be available to
all subscribers of the HSVF. As such, the Exchange does not believe the
proposed change will have an adverse impact on any market participant.
Additionally, as explained above, the Exchange does not believe the
proposed change will have a material impact on competition during the
auctions.
B. Self-Regulatory Organization's Statement on Burden on Competition
This proposed change will give market participants greater
information on which to base their trading strategies. 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. As discussed above, other option exchanges
include account type information in their data feeds. Additionally, the
Exchange does not believe that the proposed change will have a material
impact on competition during the auction.
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-2018-17 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-2018-17. 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
[[Page 25076]]
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-
2018-17, and should be submitted on or before June 21, 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. 2018-11607 Filed 5-30-18; 8:45 am]
BILLING CODE 8011-01-P
