Self-Regulatory Organizations; BOX Options Exchange LLC; Order Granting Approval of a Proposed Rule Change To Adopt IM-7130-1 to Rule 7130, 33969-33970 [2018-15290]

Download as PDF Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Notices IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: • 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– NASDAQ–2018–051 on the subject line. Paper Comments amozie on DSK3GDR082PROD with NOTICES1 • 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–NASDAQ–2018–051. 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 the 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–NASDAQ–2018–051, and should be submitted on or before August 8, 2018. 19:19 Jul 17, 2018 [FR Doc. 2018–15289 Filed 7–17–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments VerDate Sep<11>2014 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.22 Eduardo A. Aleman, Assistant Secretary. Jkt 244001 [Release No. 34–83624; File No. SR–BOX– 2018–18] Self-Regulatory Organizations; BOX Options Exchange LLC; Order Granting Approval of a Proposed Rule Change To Adopt IM–7130–1 to Rule 7130 July 12, 2018. I. Introduction On May 16, 2018, BOX Options Exchange LLC (the ‘‘Exchange’’ or ‘‘BOX’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to adopt IM– 7130–1 to BOX Rule 7130 to provide certain BOX Book 3 information to Participants 4 upon request. The proposed rule change was published for comment in the Federal Register on May 31, 2018.5 The Commission received no comments on the proposed rule change. This order approves the proposed rule change. II. Description of the Proposed Rule Change BOX proposes to adopt new IM– 7130–1 to Rule 7130 to provide that, upon request, the Exchange may make available to a Participant the amount of any priority interest on the BOX Book. For purposes of the proposed new rule, the term ‘‘priority interest’’ means the number of Public Customer contracts and Non-Public Customer contracts that are ranked ahead of such Public Customer contracts at a given price for CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 The term ‘‘BOX Book’’ means the electronic book of orders on each single option series maintained by the BOX Trading Host. See BOX Rule 100(a)(10). 4 The term ‘‘Participant’’ means a firm, or organization that is registered with the Exchange pursuant to the BOX Rule 2000 Series for purposes of participating in options trading on BOX as an ‘‘Order Flow Provider’’ or ‘‘Market Maker.’’ See BOX Rule 100(a)(41). 5 See Securities Exchange Act Release No. 83318 (May 24, 2018), 83 FR 25079 (‘‘Notice’’). PO 00000 22 17 1 15 Frm 00053 Fmt 4703 Sfmt 4703 33969 a specific option class.6 The information would be verbally provided to Participants for no fee, on a best efforts basis, and would be for advisory purposes only.7 All BOX Book information would be provided on an anonymous basis.8 Under the proposed rule, Floor Brokers would inquire with an Options Exchange Official or his or her designee, and all other Participants would inquire with BOX’s Market Operations Center.9 Participants would be required to request this information each time and the Exchange would not provide continuous updated information.10 The Exchange represents that an Options Exchange Official will provide the requested information when doing so does not interfere with their regulatory responsibilities.11 The Exchange believes that the proposed rule change will provide Participants greater clarity on the composition and availability of liquidity on the BOX Book.12 With respect to the BOX Trading Floor, the Exchange believes that the availability of this information will lead to increased interaction with the BOX Book, because Floor Brokers will be aware of the liquidity available on the BOX Book that could interact with their Qualified Open Outcry Order (‘‘QOO Order’’) 13 and may choose to use such liquidity when executing orders from the Trading Floor or using a separate order to sweep that interest.14 III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national 6 See proposed BOX Rule IM–7130–1. ‘‘Public Customer’’ means a person that is not a broker or dealer in securities. See BOX Rule 100(a)(52). 7 See proposed BOX Rule IM–7130–1. 8 See id. 9 See id. The term ‘‘Market Operations Center’’ or ‘‘MOC’’ means the BOX Market Operations Center, which provides market support for Options Participants during the trading day. See BOX Rule 100(a)(32). 10 See proposed BOX Rule IM–7130–1. 11 See Notice, supra note 5, at 25080 n.5. 12 See Notice, supra note 5, at 25080. 13 A QOO Order has two sides; the initiating side and the contra-side. The initiating side is the order which must be filled in its entirety. The contra-side must guarantee the full size of the initiating side of the QOO Order and may provide a book sweep size as provided in BOX Rule 7600(h). See BOX Rule 7600(a)(1). The initiating side of a QOO Order will execute against Public Customer Orders on the BOX Book and any other orders or quotes ranked ahead of such Public Customer Orders at the execution price first. See BOX Rule 7600(d)(2). 14 See Notice, supra note 5, at 25080. E:\FR\FM\18JYN1.SGM 18JYN1 33970 Federal Register / Vol. 83, No. 138 / Wednesday, July 18, 2018 / Notices securities exchange.15 In particular, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,16 which requires, among other things, that the Exchange’s rules be designed to prevent fraudulent and manipulative acts and practices, 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. The Commission notes that the proposed rule change, which would make priority interest information available upon request for all Participants, will provide increased transparency to Participants, which the Exchange believes has the potential to result in more liquidity on the Exchange and increased interaction with the BOX Book. The Commission also notes that the proposed rule change, with respect to floor trading, is similar to the procedures of another options exchange that operates a trading floor.17 For the foregoing reasons, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act 18 and the rules and regulations thereunder applicable to a national securities exchange. IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,19 that the proposed rule change (SR–BOX–2018– 18) be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.20 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–15290 Filed 7–17–18; 8:45 am] BILLING CODE 8011–01–P amozie on DSK3GDR082PROD with NOTICES1 15 In approving this proposed rule change the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 16 15 U.S.C. 78f(b)(5). 17 See NYSE Arca Regulatory Bulletin RB–16–04 (February 19, 2016) (stating that Floor Brokers on NYSE Arca may inquire with the Trading Official at the post to the amount of any priority interest on NYSE Arca’s electronic book). In addition, the Commission notes that some other options exchanges provide similar information on a realtime basis to data feed subscribers. See, e.g., Securities Exchange Act Release No. 74759 (April 17, 2018), 82 FR 22749 (April 23, 2015) (SR–MIAX– 2015–28) (describing MIAX Order Feed which provides the origin of orders on the MIAX order book). 18 15 U.S.C. 78f(b)(5). 19 15 U.S.C. 78s(b)(2). 20 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 19:19 Jul 17, 2018 Jkt 244001 kin in the event of an emergency or death of an employee. DEPARTMENT OF STATE [Public Notice: 10465] On March 24, 2018, the Department of State published a notice in the Federal Register (83 FR 17873) that records in State-12 were being consolidated with ‘‘Employee Contact Records, State-40’’ into a single modified State-40, because the records and system purposes are substantially similar. DATES: Town Hall Meeting on Modernizing the Columbia River Treaty Regime Department of State. Notice of meeting. AGENCY: ACTION: The Department of State (Department) will hold a Town Hall meeting in Portland, Oregon, to discuss the modernization of the Columbia River Treaty (CRT) regime. DATES: The meeting will be held on September 6, 2018, from 5:30 p.m. to approximately 7:00 p.m., Pacific Time. ADDRESSES: The meeting will be held in the Bonneville Power Administration’s Rates Hearing Room, 1201 Lloyd Blvd. Suite 200, Portland, OR 97232. FOR FURTHER INFORMATION CONTACT: Susan May, ColumbiaRiverTreaty@ state.gov, 202–647–2170. SUPPLEMENTARY INFORMATION: This Town Hall is part of the Department’s public engagement on the modernization of the CRT regime. The meeting is open to the public, up to the capacity of the room. Requests for reasonable accommodation should be made to the email listed above, on or before August 30, 2018. The Department will consider requests made after that date, but might not be able to accommodate them. Information regarding the proposed agenda, and other information about the meeting, can be found at https://www.state.gov/p/ wha/ci/ca/topics/c78892.htm or by emailing the email address listed above. If you are unable to attend in person, you can listen to the Town Hall via phone by calling 1–888–330–1716 and entering the passcode 19431467#. SUMMARY: Cynthia A. Kierscht, Director, Office of Canadian Affairs, Department of State. [FR Doc. 2018–15306 Filed 7–17–18; 8:45 am] BILLING CODE 4710–29–P Questions can be submitted by mail, email, or by calling Mary Avery, the Senior Agency Official for Privacy (SAOP), on (202) 663–2215. If mail, please write to: U.S. Department of State; Office of Global Information Systems, Privacy Staff, A/GIS/PRV; SA– 2, Suite 8100; Washington, DC 20522– 0208. If email, please address the email to the Senior Agency Official for Privacy (SAOP), Mary R. Avery, at Privacy@ state.gov. Please write ‘‘Foreign Service Employee Locator/Notification Records, State-12’’ on the envelope or the subject line of your email. ADDRESSES: FOR FURTHER INFORMATION CONTACT: Mary R. Avery, Senior Agency Official for Privacy (SAOP); U.S. Department of State; Office of Global Information Services, A/GIS/PRV; SA–2, Suite 8100; Washington, DC 20522–0208 or by calling (202) 663–2215. The records in ‘‘Foreign Service Employee Locator/Notification Records, State-12’’ (previously published at 42 FR 49705) were consolidated with ‘‘Employee Contact Records, State-40’’ (previously published at 75 FR 67431). The new SORN reflecting the consolidated system of records ‘‘Employee Contact Records, State-40’’ was published at 83 FR 17873 on March 24, 2018. SUPPLEMENTARY INFORMATION: SYSTEM NAME AND NUMBER Foreign Service Employee Locator/ Notification Records, State-12. HISTORY: DEPARTMENT OF STATE [Public Notice: 10466] Privacy Act of 1974; System of Records Department of State. Rescindment of a System of Records Notice. AGENCY: ACTION: ‘‘Foreign Service Employee Locator/Notification Records, State-12’’, which is being rescinded, contains information used to forward employees’ mail and for the notification of next of SUMMARY: PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 ‘‘Foreign Service Employee Locator/ Notification Records, State-12’’ was previously published at 42 FR 49705 and ‘‘Employee Contact Records, State40’’ was previously published at 75 FR 67431 before being modified and republished at 83 FR 17873. Mary R. Avery, Senior Agency Official for Privacy, Senior Advisor, Office of Global Information Services, Bureau of Administration, Department of State. [FR Doc. 2018–15308 Filed 7–17–18; 8:45 am] BILLING CODE 4710–24–P E:\FR\FM\18JYN1.SGM 18JYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 83, Number 138 (Wednesday, July 18, 2018)]
[Notices]
[Pages 33969-33970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15290]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83624; File No. SR-BOX-2018-18]


Self-Regulatory Organizations; BOX Options Exchange LLC; Order 
Granting Approval of a Proposed Rule Change To Adopt IM-7130-1 to Rule 
7130

July 12, 2018.

I. Introduction

    On May 16, 2018, BOX Options Exchange LLC (the ``Exchange'' or 
``BOX'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to adopt IM-7130-1 to BOX Rule 7130 to provide 
certain BOX Book \3\ information to Participants \4\ upon request. The 
proposed rule change was published for comment in the Federal Register 
on May 31, 2018.\5\ The Commission received no comments on the proposed 
rule change. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The term ``BOX Book'' means the electronic book of orders on 
each single option series maintained by the BOX Trading Host. See 
BOX Rule 100(a)(10).
    \4\ The term ``Participant'' means a firm, or organization that 
is registered with the Exchange pursuant to the BOX Rule 2000 Series 
for purposes of participating in options trading on BOX as an 
``Order Flow Provider'' or ``Market Maker.'' See BOX Rule 
100(a)(41).
    \5\ See Securities Exchange Act Release No. 83318 (May 24, 
2018), 83 FR 25079 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    BOX proposes to adopt new IM-7130-1 to Rule 7130 to provide that, 
upon request, the Exchange may make available to a Participant the 
amount of any priority interest on the BOX Book. For purposes of the 
proposed new rule, the term ``priority interest'' means the number of 
Public Customer contracts and Non-Public Customer contracts that are 
ranked ahead of such Public Customer contracts at a given price for a 
specific option class.\6\ The information would be verbally provided to 
Participants for no fee, on a best efforts basis, and would be for 
advisory purposes only.\7\ All BOX Book information would be provided 
on an anonymous basis.\8\
---------------------------------------------------------------------------

    \6\ See proposed BOX Rule IM-7130-1. ``Public Customer'' means a 
person that is not a broker or dealer in securities. See BOX Rule 
100(a)(52).
    \7\ See proposed BOX Rule IM-7130-1.
    \8\ See id.
---------------------------------------------------------------------------

    Under the proposed rule, Floor Brokers would inquire with an 
Options Exchange Official or his or her designee, and all other 
Participants would inquire with BOX's Market Operations Center.\9\ 
Participants would be required to request this information each time 
and the Exchange would not provide continuous updated information.\10\ 
The Exchange represents that an Options Exchange Official will provide 
the requested information when doing so does not interfere with their 
regulatory responsibilities.\11\
---------------------------------------------------------------------------

    \9\ See id. The term ``Market Operations Center'' or ``MOC'' 
means the BOX Market Operations Center, which provides market 
support for Options Participants during the trading day. See BOX 
Rule 100(a)(32).
    \10\ See proposed BOX Rule IM-7130-1.
    \11\ See Notice, supra note 5, at 25080 n.5.
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change will provide 
Participants greater clarity on the composition and availability of 
liquidity on the BOX Book.\12\ With respect to the BOX Trading Floor, 
the Exchange believes that the availability of this information will 
lead to increased interaction with the BOX Book, because Floor Brokers 
will be aware of the liquidity available on the BOX Book that could 
interact with their Qualified Open Outcry Order (``QOO Order'') \13\ 
and may choose to use such liquidity when executing orders from the 
Trading Floor or using a separate order to sweep that interest.\14\
---------------------------------------------------------------------------

    \12\ See Notice, supra note 5, at 25080.
    \13\ A QOO Order has two sides; the initiating side and the 
contra-side. The initiating side is the order which must be filled 
in its entirety. The contra-side must guarantee the full size of the 
initiating side of the QOO Order and may provide a book sweep size 
as provided in BOX Rule 7600(h). See BOX Rule 7600(a)(1). The 
initiating side of a QOO Order will execute against Public Customer 
Orders on the BOX Book and any other orders or quotes ranked ahead 
of such Public Customer Orders at the execution price first. See BOX 
Rule 7600(d)(2).
    \14\ See Notice, supra note 5, at 25080.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national

[[Page 33970]]

securities exchange.\15\ In particular, the Commission finds that the 
proposed rule change is consistent with Section 6(b)(5) of the Act,\16\ 
which requires, among other things, that the Exchange's rules be 
designed to prevent fraudulent and manipulative acts and practices, 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.
---------------------------------------------------------------------------

    \15\ In approving this proposed rule change the Commission notes 
that it has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
    \16\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission notes that the proposed rule change, which would 
make priority interest information available upon request for all 
Participants, will provide increased transparency to Participants, 
which the Exchange believes has the potential to result in more 
liquidity on the Exchange and increased interaction with the BOX Book. 
The Commission also notes that the proposed rule change, with respect 
to floor trading, is similar to the procedures of another options 
exchange that operates a trading floor.\17\ For the foregoing reasons, 
the Commission finds that the proposed rule change is consistent with 
Section 6(b)(5) of the Act \18\ and the rules and regulations 
thereunder applicable to a national securities exchange.
---------------------------------------------------------------------------

    \17\ See NYSE Arca Regulatory Bulletin RB-16-04 (February 19, 
2016) (stating that Floor Brokers on NYSE Arca may inquire with the 
Trading Official at the post to the amount of any priority interest 
on NYSE Arca's electronic book). In addition, the Commission notes 
that some other options exchanges provide similar information on a 
real-time basis to data feed subscribers. See, e.g., Securities 
Exchange Act Release No. 74759 (April 17, 2018), 82 FR 22749 (April 
23, 2015) (SR-MIAX-2015-28) (describing MIAX Order Feed which 
provides the origin of orders on the MIAX order book).
    \18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\19\ that the proposed rule change (SR-BOX-2018-18) be, and hereby 
is, approved.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78s(b)(2).
    \20\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-15290 Filed 7-17-18; 8:45 am]
 BILLING CODE 8011-01-P

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