Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7260 by Extending the Penny Pilot Program Through December 31, 2018, 30471-30473 [2018-13887]
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Federal Register / Vol. 83, No. 125 / Thursday, June 28, 2018 / Notices
Public Representative: Gregory Stanton;
Comments Due: July 2, 2018.
This Notice will be published in the
Federal Register.
Stacy L. Ruble,
Secretary.
[FR Doc. 2018–13930 Filed 6–27–18; 8:45 am]
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[FR Doc. 2018–13879 Filed 6–27–18; 8:45 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
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amozie on DSK3GDR082PROD with NOTICES1
[Release No. 34–83499; File No. SR–BOX–
2018–17)]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Withdrawal of Proposed Rule Change
To Amend Rules 7150 and 7245
June 22, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.4
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–13886 Filed 6–27–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83500; File No. SR–BOX–
2018–23]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
Rule 7260 by Extending the Penny
Pilot Program Through December 31,
2018
June 22, 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 June 18,
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
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 7260 by extending the Penny Pilot
Program through December 31, 2018.
The text of the proposed rule change is
available from the principal office of the
Exchange, at the Commission’s Public
1 15
On May 14, 2018, BOX Options
Exchange LLC (the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
VerDate Sep<11>2014
Exchange Act of 1934 1 and Rule 19b–
4 thereunder,2 a proposed rule change
to amend Rules 7150 and 7245 to
provide certain account type
information in its Price Improvement
Period and Complex Price Improvement
Period auction notifications. The
proposed rule change was published for
comment in the Federal Register on
May 31, 2018.3 The Commission
received no comment letters on the
proposal. On June 20, 2018, the
Exchange withdrew the proposed rule
change (SR–BOX–2018–17).
17:08 Jun 27, 2018
Jkt 244001
U.S.C. 78s(b)(1).
17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 83317
(May 24, 2018), 83 FR 25074.
4 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
2
PO 00000
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30471
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 extend the
effective time period of the Penny Pilot
Program that is currently scheduled to
expire on June 30, 2018, until December
31, 2018.3 The Penny Pilot Program
permits certain classes to be quoted in
penny increments. The minimum price
variation for all classes included in the
Penny Pilot Program, except for
PowerShares QQQ Trust (‘‘QQQQ’’)®,
SPDR S&P 500 Exchange Traded Funds
(‘‘SPY’’), and iShares Russell 2000 Index
Funds (‘‘IWM’’), will continue to be
$0.01 for all quotations in options series
that are quoted at less than $3 per
contract and $0.05 for all quotations in
options series that are quoted at $3 per
contract or greater. QQQQ, SPY, and
3 The Penny Pilot Program has been in effect on
the Exchange since its inception in May 2012. See
Securities Exchange Act Release Nos. 66871 (April
27, 2012), 77 FR 26323 (May 3, 2012) (File No. 10–
206, In the Matter of the Application of BOX
Options Exchange LLC for Registration as a
National Securities Exchange Findings, Opinion,
and Order of the Commission), 67328 (June 29,
2012), 77 FR 40123 (July 6, 2012) (SR–BOX–2012–
007), 68425 (December 13, 2012), 77 FR 75234
(December 19, 2013) (SR–BOX–2012–021), 69789
(June 18, 2013), 78 FR 37854 (June 24, 2013) (SR–
BOX–2013–31), 71056 (December 12, 2013), 78 FR
76691 (December 18, 2013) (SR–BOX–2013–56),
72348 (June 9, 2014), 79 FR 33976 (June 13, 2014)
(SR–BOX–2014–17), 73822 (December 11, 2014), 79
FR 75606 (December 18, 2014) (SR–BOX–2014–29),
75295 (June 25, 2015), 80 FR 37690 (July 1,
2015)(SR–BOX–2015–23), 78172 (June 28, 2016), 81
FR 43325 (July 1, 2016)(SR–BOX–2016–24), 79429
(November 30, 2016), 81 FR 87991 (December 6,
2016)(SR–BOX–2016–55); 80828 (May 31, 2017), 82
FR 26175 (June 6, 2017) (SR–BOX–2017–18) and
82353 (December 19, 2017), 82 FR 61087 (December
26, 2017). The extension of the effective date and
the revision of the date to replace issues that have
been delisted are the only changes to the Penny
Pilot Program being proposed at this time.
E:\FR\FM\28JNN1.SGM
28JNN1
30472
Federal Register / Vol. 83, No. 125 / Thursday, June 28, 2018 / Notices
IWM will continue to be quoted in $0.01
increments for all options series.
The Exchange may replace, on a semiannual basis, any Pilot Program classes
that have been delisted on the second
trading day following July 1, 2018. The
Exchange notes that the replacement
classes will be selected based on trading
activity for the six month period
beginning December 1, 2017 and ending
May 31, 2018 for the July 2018
replacements. The Exchange will
employ the same parameters to
prospective replacement classes as
approved and applicable under the Pilot
Program, including excluding highpriced underlying securities. The
Exchange will distribute a Regulatory
Circular notifying Participants which
replacement classes shall be included in
the Penny Pilot Program.
BOX is specifically authorized to act
jointly with the other options exchanges
participating in the Pilot Program in
identifying any replacement class.
amozie on DSK3GDR082PROD with NOTICES1
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,4
in general, and Section 6(b)(5) of the
Act,5 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, and to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general protect investors and the public
interest.
In particular, the proposed rule
change, which extends the Penny Pilot
until December 31, 2018 and changes
the dates for replacing Penny Pilot
issues that were delisted to the second
trading day following July 1, 2018, will
enable public customers and other
market participants to express their true
prices to buy and sell options for the
benefit of all market participants. This
is consistent with the Act.
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. To the
contrary, this proposal is procompetitive because it allows Penny
Pilot issues to continue trading on the
Exchange. Moreover, the Exchange
4 15
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Sep<11>2014
17:08 Jun 27, 2018
Jkt 244001
believes that the proposed rule change
will allow for further analysis of the
Pilot and a determination of how the
Pilot should be structured in the future;
and will serve to promote regulatory
clarity and consistency, thereby
reducing burdens on the marketplace
and facilitating investor protection. The
Pilot is an industry wide initiative
supported by all other option
exchanges. The Exchange believes that
extending the Pilot will allow for
continued competition between market
participants on the Exchange trading
similar products as their counterparts
on other exchanges, while at the same
time allowing the Exchange to continue
to compete for order flow with other
exchanges in option issues trading as
part of the Pilot.
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
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(6) thereunder.7 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 8 normally does not
become operative prior to 30 days after
the date of the filing.9 However,
pursuant to Rule 19b–4(f)(6)(iii),10 the
Commission may designate a shorter
time if such action is consistent with the
6 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
8 17 CFR 240.19b–4(f)(6).
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied this pre-filing requirement.
10 17 CFR 240.19b–4(f)(6)(iii).
7 17
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest
because doing so will allow the Pilot
Program to continue without
interruption in a manner that is
consistent with the Commission’s prior
approval of the extension and expansion
of the Pilot Program and will allow the
Exchange and the Commission
additional time to analyze the impact of
the Pilot Program.11 Accordingly, the
Commission designates the proposed
rule change as operative upon filing
with the Commission.12
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 13 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments.
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BOX–2018–23 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–2018–23. This file
11 See Securities Exchange Act Release No. 61061
(November 24, 2009), 74 FR 62857 (December 1,
2009) (SR–NYSEArca–2009–44).
12 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
13 15 U.S.C. 78s(b)(2)(B).
E:\FR\FM\28JNN1.SGM
28JNN1
Federal Register / Vol. 83, No. 125 / Thursday, June 28, 2018 / Notices
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, on official business
days between the hours of 10:00 a.m.
and 3:00 p.m., located at 100 F Street
NE, Washington, DC 20549. Copies of
such filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BOX–2018–23 and should
be submitted on or before July 19, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–13887 Filed 6–27–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83498; File No. SR–
NYSEAMER–2018–30]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 7.35E
amozie on DSK3GDR082PROD with NOTICES1
June 22, 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 June 18,
2018, NYSE American LLC (the
‘‘Exchange’’ or ‘‘NYSE American’’) filed
14 17
CFR 200.30–3(a)(12).
1 15 U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
VerDate Sep<11>2014
17:08 Jun 27, 2018
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 Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 7.35E (Auctions) to revise the
securities for which it will report an
Official Closing Price. 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.
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
1. Purpose
The Exchange proposes to amend
Exchange Rule 7.35E (Auctions) to
revise the securities for which it will
report an Official Closing Price.4 Rule
7.35E(d)(4) currently states that the
Exchange reports an Official Closing
Price for all securities that trade on the
Exchange. This includes not only
securities for which the Exchange is the
primary listing market, but also all UTP
Securities that are traded on the
Exchange.5 Because the Exchange does
not calculate an Official Closing Price
for UTP Securities when the Exchange
reports an Official Closing Price for such
securities, the Exchange uses either the
closing price calculated by the primary
listing market or, if no closing price has
been disseminated by the primary
4 The
term ‘‘Official Closing Price’’ is defined in
Exchange Rule 1.1E(gg)(1).
5 The term ‘‘UTP Securities’’ is defined in Rule
1.1E(ii).
Jkt 244001
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Fmt 4703
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30473
listing market, the last consolidated lastsale price for such security.
The Exchange proposes to amend
Rule 7.35E(d)(4) to provide that the
Exchange would disseminate an Official
Closing Price for Auction-Eligible
Securities only. An Auction-Eligible
Security is defined as all ‘‘securities for
which the Exchange is the primary
listing market and UTP Securities
designated by the Exchange.’’ 6 As a
result, the Exchange would report an
Official Closing Price for only those
securities for which the Exchange
calculates an Official Closing Price
pursuant to Rule 1.1E(gg). The Exchange
believes that, by ceasing reporting an
Official Closing Price in securities that
are not auction-eligible on the
Exchange, it would reduce the
likelihood of disparate or duplicative
prices being disseminated and
identified as a UTP Security’s formal
closing price.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Sections 6(b)(5) of the Act,8
in particular, because 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 regulating, clearing,
settling, processing information with
respect to, and facilitating transactions
in securities, to remove impediments to,
and perfect the mechanisms of, a free
and open market and a national market
system and, in general, to protect
investors and the public interest and
because it is not designed to permit
unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that the
proposed rule change would remove
impediments to, and perfect the
mechanisms of, a free and open market
and a national market system and, in
general, protect investors and the public
interest because the Exchange would
cease disseminating a closing price for
UTP Securities and only disseminate an
Official Closing Price for AuctionEligible Securities. The Exchange
believes that this proposed rule change
would reduce the likelihood of
disparate or duplicative prices being
disseminated and identified as a UTP
Security’s formal closing price.
Therefore, the proposed rule change
6 See Exchange Rule 7.35E(a)(1). To date, the
Exchange has not designated any UTP Securities as
an Auction-Eligible Security.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
E:\FR\FM\28JNN1.SGM
28JNN1
]]>Agencies
[Federal Register Volume 83, Number 125 (Thursday, June 28, 2018)]
[Notices]
[Pages 30471-30473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13887]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83500; File No. SR-BOX-2018-23]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Rule 7260 by Extending the Penny Pilot Program Through December
31, 2018
June 22, 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 June 18, 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 from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 7260 by extending the Penny
Pilot Program through December 31, 2018. 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 extend the effective time period of the
Penny Pilot Program that is currently scheduled to expire on June 30,
2018, until December 31, 2018.\3\ The Penny Pilot Program permits
certain classes to be quoted in penny increments. The minimum price
variation for all classes included in the Penny Pilot Program, except
for PowerShares QQQ Trust (``QQQQ'')[supreg], SPDR S&P 500 Exchange
Traded Funds (``SPY''), and iShares Russell 2000 Index Funds (``IWM''),
will continue to be $0.01 for all quotations in options series that are
quoted at less than $3 per contract and $0.05 for all quotations in
options series that are quoted at $3 per contract or greater. QQQQ,
SPY, and
[[Page 30472]]
IWM will continue to be quoted in $0.01 increments for all options
series.
---------------------------------------------------------------------------
\3\ The Penny Pilot Program has been in effect on the Exchange
since its inception in May 2012. See Securities Exchange Act Release
Nos. 66871 (April 27, 2012), 77 FR 26323 (May 3, 2012) (File No. 10-
206, In the Matter of the Application of BOX Options Exchange LLC
for Registration as a National Securities Exchange Findings,
Opinion, and Order of the Commission), 67328 (June 29, 2012), 77 FR
40123 (July 6, 2012) (SR-BOX-2012-007), 68425 (December 13, 2012),
77 FR 75234 (December 19, 2013) (SR-BOX-2012-021), 69789 (June 18,
2013), 78 FR 37854 (June 24, 2013) (SR-BOX-2013-31), 71056 (December
12, 2013), 78 FR 76691 (December 18, 2013) (SR-BOX-2013-56), 72348
(June 9, 2014), 79 FR 33976 (June 13, 2014) (SR-BOX-2014-17), 73822
(December 11, 2014), 79 FR 75606 (December 18, 2014) (SR-BOX-2014-
29), 75295 (June 25, 2015), 80 FR 37690 (July 1, 2015)(SR-BOX-2015-
23), 78172 (June 28, 2016), 81 FR 43325 (July 1, 2016)(SR-BOX-2016-
24), 79429 (November 30, 2016), 81 FR 87991 (December 6, 2016)(SR-
BOX-2016-55); 80828 (May 31, 2017), 82 FR 26175 (June 6, 2017) (SR-
BOX-2017-18) and 82353 (December 19, 2017), 82 FR 61087 (December
26, 2017). The extension of the effective date and the revision of
the date to replace issues that have been delisted are the only
changes to the Penny Pilot Program being proposed at this time.
---------------------------------------------------------------------------
The Exchange may replace, on a semi-annual basis, any Pilot Program
classes that have been delisted on the second trading day following
July 1, 2018. The Exchange notes that the replacement classes will be
selected based on trading activity for the six month period beginning
December 1, 2017 and ending May 31, 2018 for the July 2018
replacements. The Exchange will employ the same parameters to
prospective replacement classes as approved and applicable under the
Pilot Program, including excluding high-priced underlying securities.
The Exchange will distribute a Regulatory Circular notifying
Participants which replacement classes shall be included in the Penny
Pilot Program.
BOX is specifically authorized to act jointly with the other
options exchanges participating in the Pilot Program in identifying any
replacement class.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\4\ in general, and Section
6(b)(5) of the Act,\5\ 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, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general protect investors
and the public interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the proposed rule change, which extends the Penny
Pilot until December 31, 2018 and changes the dates for replacing Penny
Pilot issues that were delisted to the second trading day following
July 1, 2018, will enable public customers and other market
participants to express their true prices to buy and sell options for
the benefit of all market participants. This is consistent with the
Act.
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. To the contrary, this proposal
is pro-competitive because it allows Penny Pilot issues to continue
trading on the Exchange. Moreover, the Exchange believes that the
proposed rule change will allow for further analysis of the Pilot and a
determination of how the Pilot should be structured in the future; and
will serve to promote regulatory clarity and consistency, thereby
reducing burdens on the marketplace and facilitating investor
protection. The Pilot is an industry wide initiative supported by all
other option exchanges. The Exchange believes that extending the Pilot
will allow for continued competition between market participants on the
Exchange trading similar products as their counterparts on other
exchanges, while at the same time allowing the Exchange to continue to
compete for order flow with other exchanges in option issues trading as
part of the Pilot.
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) \8\ normally
does not become operative prior to 30 days after the date of the
filing.\9\ However, pursuant to Rule 19b-4(f)(6)(iii),\10\ the
Commission may designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because doing so will allow the Pilot Program to continue without
interruption in a manner that is consistent with the Commission's prior
approval of the extension and expansion of the Pilot Program and will
allow the Exchange and the Commission additional time to analyze the
impact of the Pilot Program.\11\ Accordingly, the Commission designates
the proposed rule change as operative upon filing with the
Commission.\12\
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\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this pre-filing requirement.
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ See Securities Exchange Act Release No. 61061 (November 24,
2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44).
\12\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(2)(B).
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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-2018-23 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-2018-23. This file
[[Page 30473]]
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, on official business days
between the hours of 10:00 a.m. and 3:00 p.m., located at 100 F Street
NE, Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-BOX-2018-23 and should be
submitted on or before July 19, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13887 Filed 6-27-18; 8:45 am]
BILLING CODE 8011-01-P
