Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Reflect a Non-Substantive Name Change in the Market's Governing Documents, 44375-44377 [2018-18826]
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Federal Register / Vol. 83, No. 169 / Thursday, August 30, 2018 / Notices
investment company or series thereof,
their principal underwriters, and any
broker or dealer registered under the
1934 Act to sell shares of the
Underlying Funds to the Fund of Funds
in excess of the limits in section
12(d)(1)(B) of the Act.3 Applicants also
request an order of exemption under
sections 6(c) and 17(b) of the Act from
the prohibition on certain affiliated
transactions in section 17(a) of the Act
to the extent necessary to permit the
Underlying Funds to sell their shares to,
and redeem their shares from, the Funds
of Funds.4 Applicants state that such
transactions will be consistent with the
policies of each Fund of Funds and each
Underlying Fund and with the general
purposes of the Act and will be based
on the net asset values of the
Underlying Funds.
2. Applicants agree that any order
granting the requested relief will be
subject to the terms and conditions
stated in the application. Such terms
and conditions are designed to, among
other things, help prevent any potential
(i) undue influence over an Underlying
Fund that is not in the same ‘‘group of
investment companies’’ as the Fund of
Funds through control or voting power,
or in connection with certain services,
transactions, and underwritings, (ii)
excessive layering of fees, and (iii)
overly complex fund structures, which
are the concerns underlying the limits
in sections 12(d)(1)(A), (B), and (C) of
the Act.
3. Section 12(d)(1)(J) of the Act
provides that the Commission may
exempt any person, security, or
transaction, or any class or classes of
persons, securities, or transactions, from
any provision of section 12(d)(1) if the
exemption is consistent with the public
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3 Applicants
are not requesting relief for a Fund
of Funds to invest in BDCs and registered closedend investment companies that are not listed and
traded on a national securities exchange.
4 A Fund of Funds generally would purchase and
sell shares of an Underlying Fund that operates as
an ETF or closed-end fund through secondary
market transactions rather than through principal
transactions with the Underlying Fund. Applicants
nevertheless request relief from sections 17(a)(1)
and (2) to permit each ETF or closed-end fund that
is an affiliated person, or an affiliated person of an
affiliated person, as defined in section 2(a)(3) of the
Act, of a Fund of Funds, to sell shares to or redeem
shares from the Fund of Funds. This includes, in
the case of sales and redemptions of shares of ETFs,
the in-kind transactions that accompany such sales
and redemptions. Applicants are not seeking relief
from section 17(a) for, and the requested relief will
not apply to, transactions where an ETF, BDC or
closed-end fund could be deemed an affiliated
person, or an affiliated person of an affiliated
person, of a Fund of Funds because an investment
adviser to the ETF, BDC or closed-end fund or an
entity controlling, controlled by or under common
control with the investment adviser to the ETF,
BDC or closed-end fund, is also an investment
adviser to the Fund of Funds.
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interest and the protection of investors.
Section 17(b) of the Act authorizes the
Commission to grant an order
permitting a transaction otherwise
prohibited by section 17(a) if it finds
that (a) the terms of the proposed
transaction are fair and reasonable and
do not involve overreaching on the part
of any person concerned; (b) the
proposed transaction is consistent with
the policies of each registered
investment company involved; and (c)
the proposed transaction is consistent
with the general purposes of the Act.
Section 6(c) of the Act permits the
Commission to exempt any persons or
transactions from any provision of the
Act if such exemption is necessary or
appropriate in the public interest and
consistent with the protection of
investors and the purposes fairly
intended by the policy and provisions of
the Act.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–18776 Filed 8–29–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83949; File No. SR–BOX–
2018–26]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Reflect a
Non-Substantive Name Change in the
Market’s Governing Documents
August 27, 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 August
15, 2018, BOX Options Exchange LLC
(the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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 reflect a
non-substantive name change in the
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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44375
Market’s governing documents. 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 purpose of this filing is to reflect
a non-substantive name change in the
Market’s governing documents. On July
13, 2018, the BOX Market LLC Board of
Directors approved that the name of
BOX Market LLC be changed to ‘‘BOX
Options Market LLC’’ and that each
officer of the Company be, and hereby
is, authorized and directed to undertake
any actions required or advisable to
carry out the name change, including
with respect to the SEC and any
governmental or third parties. The
Exchange intends for these changes to
be effective upon filing.
As proposed, references to the
Market’s name will be deleted and
revised to state the new name, as
described more fully below. No other
substantive changes are being proposed
in this filing. The Exchange represents
that these changes are concerned solely
with the administration of the Market, a
facility of the Exchange, and do not
affect the meaning, administration, or
enforcement of any rules of the
Exchange or the rights, obligations, or
privileges of Exchange members or their
associated persons is any way.
Accordingly, this filing is being
submitted under Rule 19b–4(f)(3). In
lieu of providing a copy of the marked
name changes for all corporate
documents, the Exchange represents
that it will make the necessary nonsubstantive revisions described below to
the applicable corporate governance
documents and post updated versions of
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Federal Register / Vol. 83, No. 169 / Thursday, August 30, 2018 / Notices
each on the Exchange’s website
pursuant to Rule 19b–4(m)(2).
Market Name Change
In connection with the name change
of the Market, the Exchange is
proposing to amend the Market’s
operative documents. Specifically, the
Exchange proposes to amend the
Market’s Certificate of Amendment [sic],
and the BOX Market LLC Agreement.3
Within these documents the Exchange
proposes to delete all references to BOX
Market LLC (‘‘BOX Market’’ or ‘‘BOX’’)
and replace it with BOX Options Market
LLC (‘‘BOX Options Market’’ or ‘‘BOX
Options’’).
Additionally, in connection with the
name change of the Market, the
Exchange is proposing to make nonsubstantive conforming changes to the
BOX Holdings LLC Agreement and the
BOX Exchange LLC Agreement.
Specifically, the Exchange proposes to
delete all references to BOX Market LLC
and replace it with ‘‘BOX Options
Market LLC’’ in these documents.
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2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.4 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(1) 5 in that it enables the Exchange
to be so organized as to have the
capacity to be able to carry out the
purposes of the Exchange Act and to
comply, and to enforce compliance by
its exchange members and persons
associate with its exchange members,
with the provisions of the Exchange Act,
the rules and regulations thereunder,
and the rules of the Exchange.
In particular, the proposed change is
a non-substantive change and does not
impact the governance, ownership or
operations of the Exchange. The
Exchange believes that by ensuring that
the Exchanges operative documents
accurately reflect the new legal names,
the proposed rule change would reduce
potential investor or market participant
confusion.
3 The Exchange is also proposing to delete
obsolete references within the Market LLC
Agreement. Specifically, the Exchange proposes to
remove all references to the Boston Options
Exchange Group LLC (‘‘Old BOX’’), which merged
into what is now BOX Market LLC on May 12, 2012.
The Exchange believes references to the Old BOX
within the Market LLC agreement are no longer
necessary or appropriate within the BOX Options
Market LLC Amended and Restated Agreement.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
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Further, the Exchange believes that
the proposed deletion of obsolete
references would 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 because the
change would eliminate an obsolete
reference to Old BOX, thereby reducing
potential confusion. Market participants
and investors would not be harmed and
in fact could benefit from the increased
clarity and transparency in the Market
LLC Agreement, ensuring that market
participants could more easily
understand the Market LLC Agreement.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not intended to
address competitive issues but rather is
concerned solely with updating the
Exchange’s governance and operative
documents to reflect the
abovementioned name changes.
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
This proposed rule change is filed
pursuant to paragraph (A) of section
19(b)(3) of the Exchange Act 6 and Rule
19b–4(f)(3) thereunder in that the
proposed rule changes is concerned
solely with the administration of the
Exchange.7
At any time within 60 days of the
filing of the 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
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
6 15
7 17
PO 00000
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–2018–26 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–2018–26. 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, on official business
days between the hours of 10 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–2018–26 and should
be submitted on or before September 20,
2018.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(3).
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Federal Register / Vol. 83, No. 169 / Thursday, August 30, 2018 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–18826 Filed 8–29–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83940; File No. SR–DTC–
2018–006]
Self-Regulatory Organizations; The
Depository Trust Company; Order
Granting Approval of Proposed Rule
Change To Amend Rule 35 To Provide
for Designated Accounts for Use With
Designated Collateral Management
Service Providers
August 24, 2018.
On July 9, 2018, The Depository Trust
Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) proposed rule change
SR–DTC–2018–006 pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder.2 The proposed rule change
was published for comment in the
Federal Register on July 24, 2018.3 The
Commission did not receive any
comment letters on the proposed rule
change. For the reasons discussed
below, the Commission approves the
proposed rule change.
I. Description of the Proposed Rule
Change
The proposed rule change would
amend the Rules, By-Laws and
Organization Certificate of The
Depository Trust Company (‘‘DTC
Rules’’) 4 to revise DTC’s current Rule
35—CMS Reporting (‘‘Rule 35’’).
A. Background
Currently, Rule 35 provides that a
Participant of DTC (‘‘Participant’’) may
establish a collateral management
service (‘‘CMS’’) 5 sub-account (‘‘CMS
Sub-Account’’), which authorizes DTCC
Euroclear Global Collateral Ltd.
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No.83667
(July 18, 2018), 83 FR 35044 (July 24, 2018) (SR–
DTC–2018–006) (‘‘Notice’’).
4 Available at https://www.dtcc.com/legal/rulesand-procedures.aspx. Each capitalized term not
otherwise defined herein has its respective meaning
as set forth in the DTC Rules.
5 Collateral management generally involves
calculating collateral requirements and facilitating
the transfer of collateral between counterparties.
See Securities Exchange Act Release No. 64796
(July 1, 2011), 76 FR 39963, 39964 (July 7, 2011)
(S7–28–11).
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1 15
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(‘‘DEGCL’’) 6 to receive from DTC (i) a
CMS report that provides information
regarding securities credited to the CMS
Sub-Account of such Participant at the
time of the report (‘‘CMS Report’’), and
(ii) CMS delivery information that
provides real-time information
regarding any delivery or pledge from,
or delivery or release to, the CMS SubAccount (‘‘CMS Delivery
Information’’).7
B. The Proposed Rule Change
DTC proposes five changes to Rule 35:
(1) Adding the term ‘‘CMSP’’ (i.e., a
CMS provider) and its associated
function; (2) adding the term ‘‘CMSP
Accounts’’ and its associated function;
(3) adding the term ‘‘CMSP Reports’’
and its associated function; (4)
authorizing a CMSP to submit CMSP
instructions (‘‘CMSP Instructions’’) on
behalf of a Participant or a Pledgee of
DTC (‘‘Pledgee’’); and (5) making
ministerial changes to conform with the
proposed changes, as well as making
stylistic edits.8 Each of these proposed
changes is described below.
1. CMSP
The proposal would add to Rule 35
the term and function of a CMSP, which
a Participant or Pledgee could then
designate to act on its behalf under the
rule, pursuant to the proposed changes.9
The term CMSP would replace the
existing, singular designation of DEGCL
to act under Rule 35 as a collateral
management provider.10 A partnership,
corporation, or other organization or
entity could become a CMSP, under the
proposed changes to Rule 35, if it
satisfies three proposed criteria: (1) One
or more Participants or Pledgees
designate the entity as a CMSP for
purposes of Rule 35; (2) the entity (i)
satisfies at least one of the qualifications
set forth in Section 1(a)–(h) of Rule 3 11
6 DEGCL is a joint venture of The Depository
Trust & Clearing Corporation, the corporate parent
of DTC, and Euroclear S.A./N.V. and was formed for
the purpose of offering global information, record
keeping, and processing services for derivatives
collateral transactions and other types of financing
transactions. DEGCL offers service options for the
selection of collateral to satisfy the collateral
obligations of its users (‘‘DEGCL CMS’’). See
Securities Exchange Act Release No. 80280 (March
20, 2017), 82 FR 15081 (March 24, 2017) (SR–DTC–
2017–001) (‘‘CMS Order’’) (providing additional
information on DEGCL and DEGCL CMS). One
option relates exclusively to Securities held at DTC,
and is dependent on Rule 35. Id.
7 CMS Order, 82 FR at 21838.
8 Notice, 83 FR at 35044–45.
9 Notice, 83 FR at 35045.
10 Id.
11 Sections 1(a)–(h) of Rule 3 provide the
qualifications for a partnership, corporation or other
organization or entity to be eligible to become a
Participant. See DTC Rules, Rule 3, Sections 1(a)–
(h), supra note 4.
PO 00000
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44377
or (ii) is organized in a country other
than the United States, is regulated by
a financial regulatory authority in the
country in which it is organized, and
demonstrates that it has notified the
Commission in writing of its intention
to operate under Rule 35; 12 and (3) the
entity establishes a connection to DTC,
in accordance with the reasonable
requirements of DTC, in order to be able
to receive position and transaction
information and to submit instructions
to DTC in accordance with the DTC
Rules and Procedures.13
As proposed, DTC may decline to
accept an entity as a CMSP if it would
present material risk to DTC, its
Participants and Pledgees, or impose
material costs to DTC.14 DTC states that
some examples of circumstances in
which DTC might reject an applicant as
a CMSP include when DTC reasonably
believes that acceptance of the applicant
as a CMSP would (i) subject DTC to
additional legal or regulatory regimes, to
which it is not otherwise subject; (ii)
expose DTC to additional technology
risk; or (iii) cause DTC to be in violation
of applicable law or regulation.15
2. CMSP Account
The proposed rule change would add
the term and function of a ‘‘CMSP
Account’’ to Rule 35.16 Currently, Rule
35 requires a Participant looking to
utilize the services offered through Rule
35 to designate an account for such
12 DTC states that in order to protect DTC, its
Participants and Pledgees, a CMSP that wishes to
act under the proposed changes to Rule 35 would
need to be subject to regulatory oversight
comparable to a Participant, as provided in
proposed Section 2(b)(i) of Rule 35, or, if the entity
is organized in a country other than the United
States (a ‘‘non-U.S. entity’’), it would need to be
regulated by a financial regulatory authority in the
country in which it is organized, as provided in
proposed Section 2(b)(ii) of Rule 35. Notice, 83 FR
at 35045. Further, the proposed rule change would
require that, in order to be eligible to become a
CMSP, the non-U.S. entity must notify the
Commission in writing of its intention to operate
under Rule 35, as modified by the proposed
changes. Id. While DTC reserves the right to request
documentation and/or information relating to a
CMSP’s compliance with the requirements of
proposed Section 2 of Rule 35, it would be the sole
responsibility of the Participant or Pledgee to
evaluate and choose an appropriate CMSP that, at
a minimum, satisfies the requirements. Id. Under
proposed Section 2 of Rule 35, the designating
Participant or Pledgee would remain liable as
principal for the actions of its designated CMSP(s)
on its behalf, and would indemnify DTC for any
loss, liability, or expense as a result of any claim
arising from (i) any act or omission of the CMSP,
(ii) the provision of CMSP Reports to the CMSP by
DTC, or (iii) DTC’s compliance with instructions of
the CMSP. Id.
13 Id.
14 Id.
15 Id.
16 Id.
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]]>Agencies
[Federal Register Volume 83, Number 169 (Thursday, August 30, 2018)]
[Notices]
[Pages 44375-44377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-18826]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83949; File No. SR-BOX-2018-26]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Reflect a Non-Substantive Name Change in the Market's Governing
Documents
August 27, 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 August 15, 2018, BOX Options Exchange LLC (the ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III 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 reflect a non-substantive name change in
the Market's governing documents. 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 purpose of this filing is to reflect a non-substantive name
change in the Market's governing documents. On July 13, 2018, the BOX
Market LLC Board of Directors approved that the name of BOX Market LLC
be changed to ``BOX Options Market LLC'' and that each officer of the
Company be, and hereby is, authorized and directed to undertake any
actions required or advisable to carry out the name change, including
with respect to the SEC and any governmental or third parties. The
Exchange intends for these changes to be effective upon filing.
As proposed, references to the Market's name will be deleted and
revised to state the new name, as described more fully below. No other
substantive changes are being proposed in this filing. The Exchange
represents that these changes are concerned solely with the
administration of the Market, a facility of the Exchange, and do not
affect the meaning, administration, or enforcement of any rules of the
Exchange or the rights, obligations, or privileges of Exchange members
or their associated persons is any way. Accordingly, this filing is
being submitted under Rule 19b-4(f)(3). In lieu of providing a copy of
the marked name changes for all corporate documents, the Exchange
represents that it will make the necessary non-substantive revisions
described below to the applicable corporate governance documents and
post updated versions of
[[Page 44376]]
each on the Exchange's website pursuant to Rule 19b-4(m)(2).
Market Name Change
In connection with the name change of the Market, the Exchange is
proposing to amend the Market's operative documents. Specifically, the
Exchange proposes to amend the Market's Certificate of Amendment [sic],
and the BOX Market LLC Agreement.\3\ Within these documents the
Exchange proposes to delete all references to BOX Market LLC (``BOX
Market'' or ``BOX'') and replace it with BOX Options Market LLC (``BOX
Options Market'' or ``BOX Options'').
---------------------------------------------------------------------------
\3\ The Exchange is also proposing to delete obsolete references
within the Market LLC Agreement. Specifically, the Exchange proposes
to remove all references to the Boston Options Exchange Group LLC
(``Old BOX''), which merged into what is now BOX Market LLC on May
12, 2012. The Exchange believes references to the Old BOX within the
Market LLC agreement are no longer necessary or appropriate within
the BOX Options Market LLC Amended and Restated Agreement.
---------------------------------------------------------------------------
Additionally, in connection with the name change of the Market, the
Exchange is proposing to make non-substantive conforming changes to the
BOX Holdings LLC Agreement and the BOX Exchange LLC Agreement.
Specifically, the Exchange proposes to delete all references to BOX
Market LLC and replace it with ``BOX Options Market LLC'' in these
documents.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(1) \5\ in that it enables the Exchange to be so organized
as to have the capacity to be able to carry out the purposes of the
Exchange Act and to comply, and to enforce compliance by its exchange
members and persons associate with its exchange members, with the
provisions of the Exchange Act, the rules and regulations thereunder,
and the rules of the Exchange.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the proposed change is a non-substantive change and
does not impact the governance, ownership or operations of the
Exchange. The Exchange believes that by ensuring that the Exchanges
operative documents accurately reflect the new legal names, the
proposed rule change would reduce potential investor or market
participant confusion.
Further, the Exchange believes that the proposed deletion of
obsolete references would 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 because the
change would eliminate an obsolete reference to Old BOX, thereby
reducing potential confusion. Market participants and investors would
not be harmed and in fact could benefit from the increased clarity and
transparency in the Market LLC Agreement, ensuring that market
participants could more easily understand the Market LLC Agreement.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
not intended to address competitive issues but rather is concerned
solely with updating the Exchange's governance and operative documents
to reflect the abovementioned name changes.
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
This proposed rule change is filed pursuant to paragraph (A) of
section 19(b)(3) of the Exchange Act \6\ and Rule 19b-4(f)(3)
thereunder in that the proposed rule changes is concerned solely with
the administration of the Exchange.\7\
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(3).
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At any time within 60 days of the filing of the 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 to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-BOX-2018-26 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-2018-26. 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, on official business days
between the hours of 10 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-2018-26 and should be
submitted on or before September 20, 2018.
[[Page 44377]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-18826 Filed 8-29-18; 8:45 am]
BILLING CODE 8011-01-P
