Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rule 7600(a)(4) (Qualified Open Outcry Orders-Floor Crossing), 50718-50720 [2018-21783]

Download as PDF 50718 Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Notices amozie on DSK3GDR082PROD with NOTICES1 19(b)(3)(A)(ii) of the Act.17 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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. received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–ISE– 2018–81 and should be submitted on or before October 30, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.18 Eduardo A. Aleman, Assistant Secretary. 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: [FR Doc. 2018–21786 Filed 10–5–18; 8:45 am] 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– ISE–2018–81 on the subject line. Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rule 7600(a)(4) (Qualified Open Outcry Orders—Floor Crossing) 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–ISE–2018–81. 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 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 September 20, 2018, BOX 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. BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–84340; File No. SR–BOX– 2018–30] October 2, 2018. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend BOX Rule 7600(a)(4) (Qualified Open Outcry Orders—Floor Crossing). 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 18 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 17 15 U.S.C. 78s(b)(3)(A)(ii). VerDate Sep<11>2014 19:13 Oct 05, 2018 Jkt 247001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 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 Rule 7600(a)(4) to provide the ability for the Exchange to determine the applicable number of legs for a Complex Qualified Open Outcry Orders (‘‘Complex QOO Order’’).3 Currently, Complex QOO Orders are limited to a maximum of four (4) legs on the BOX Trading Floor. The Exchange proposes to have the applicable number of legs now be determined by the Exchange.4 The Exchange notes that only orders that meet the definition of a Complex Order 5 are allowed to trade on the BOX Trading Floor.6 Any orders that are entered into the system as a Complex Order on the BOX Trading Floor that do not meet the definition of a Complex Order will be rejected. The Exchange will inform Participants in advance of any change to the number of legs via Informational Circular. The Exchange notes that another exchange in the industry has similar rules in place which provide flexibility in determining the maximum number of legs for complex orders at their respective exchange.7 3 A QOO Order is a two-sided order that is used by Floor Brokers to execute transactions from the Trading Floor. See Rule 7600. 4 The Exchange notes that the number of legs determined by the Exchange will apply to all classes. The Exchange also notes that the proposal discussed herein is not making any changes to the priority rules for Complex Orders. 5 The term ‘‘Complex Order’’ means any order involving the simultaneous purchase and/or sale of two or more different options series in the same underlying security, for the same account, in a ratio that is equal to or greater than one-to-three (.333) and less than or equal to three-to-one (3.00) and for the purpose of executing a particular investment strategy. See BOX Rule 7240(a)(7). 6 On the Trading Floor, a Floor Broker or such Floor Broker’s employee shall, contemporaneously upon receipt of an order, and prior to announcement of such an order in the trading crowd, record all options orders represented by such Floor Broker onto the Floor Broker’s order entry mechanism. See Rule 7580(e)(1). 7 See Cboe Exchange Inc. (‘‘Cboe’’) Rule 6.53.02. Cboe’s rule states that ‘‘[c]omplex orders of twelve (12) or less must be entered on a single order ticket at time of systemization. If permitted by the Exchange (which the Exchange will announce by E:\FR\FM\09OCN1.SGM 09OCN1 Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Notices The Exchange also proposes to correct the location of a misplaced comma in Rule 7600(a)(4). Rule 7600(a)(4), as amended, will make clear that the cross reference to Rule 7240(a)(5) applies to Complex QOO Orders and not multi-leg orders. The Exchange believes that this correction will add clarity with regard to Complex QOO Orders traded on the BOX Trading Floor. 2. Statutory Basis amozie on DSK3GDR082PROD with NOTICES1 The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Securities Exchange Act of 1934 (the ‘‘Act’’),8 in general, and Section 6(b)(5) of the Act,9 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, 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, which provides the Exchange with greater flexibility in determining the maximum number of legs for Complex QOO Orders, will benefit Floor Brokers and their customers by providing the potential for increased opportunities for executions on the BOX Trading Floor. Further, the Exchange believes that the proposed change will provide the potential for greater liquidity which should, in turn, benefit and protect investors and the public interest through the potential for greater volume of orders and executions on the BOX Trading Floor. As discussed above, the Exchange notes that another exchange has a similar rule which allows for the maximum number of legs for complex Regulatory Circular), complex orders of more than twelve (12) legs may be split across multiple order tickets . . .’’ BOX believes that this is similar to the proposal discussed herein. BOX’s reading of Cboe’s rule suggests that Cboe may determine the applicable number of legs for complex orders on their respective trading floor. As such, the Exchange believes that the proposed change is similar to the Cboe rule cited above. BOX does note, however, that [sic] is not proposing a twelve leg maximum but rather that the Exchange be responsible for determining the applicable number of legs for Complex Orders on the BOX Trading Floor. Further, the Exchange will communicate to Participants in advance of any change to the applicable number of legs via Informational Circular. See also EDGX Exchange, Inc (‘‘EDGX’’) Rule 21.20(a)(5). The Exchange notes that EDGX is an electronic exchange and as such, its rules apply to electronic trading only. 8 15 U.S.C. 78f(b). 9 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 19:13 Oct 05, 2018 Jkt 247001 orders to be determined by the exchange.10 Lastly, the Exchange believes that the proposed change to correct the inadvertent error in Rule 7600(a)(4) is reasonable as it will provide clarity with respect to QOO Orders on the Exchange. B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. In this regard and as indicated above, the Exchange notes that the proposed rule change is similar to the rules of another exchange.11 The Exchange does not believe the proposal will impose any burden on intermarket competition, as the proposed rule will allow BOX to compete with other options exchanges in the industry. The Exchange notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues who offer similar functionality. Lastly, the Exchange believes that the proposed change will not impose a burden on intramarket competition as the proposal will apply to all Participants that wish to submit Complex Orders on the BOX Trading Floor. 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 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 for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 12 and Rule 19b– 4(f)(6) thereunder.13 10 See supra, note 7. 11 Id. 12 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). As required under Rule 19b–4(f)(6)(iii), the Exchange provided the Commission with written notice of its 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. 13 17 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 50719 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 rule-comments@ sec.gov. Please include File Number SR– BOX–2018–30 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–2018–30. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit E:\FR\FM\09OCN1.SGM 09OCN1 50720 Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Notices 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–2018–30, and should be submitted on or before October 30, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–21783 Filed 10–5–18; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Securities Exchange Act of 1934; Release No. 34–84337/October 2, 2018] In the Matter of Chicago Stock Exchange, Inc., 440 South LaSalle Street, Suite 800, Chicago, IL 60605; File No. SR–CHX–2017–04; Order Setting Aside the Order by Delegated Authority Approving SR–CHX–2017–04 On February 10, 2017, the Chicago Stock Exchange, Inc. (‘‘Exchange’’ or ‘‘CHX’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to adopt the CHX Liquidity Enhancing Access Delay on a pilot basis. The proposed rule change was published for comment in the Federal Register on February 21, 2017.3 On April 3, 2017, the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved.4 On May 22, 2017, the Commission instituted proceedings under Section 19(b)(2)(B) of the Exchange Act 5 to determine whether to approve or disapprove the proposed rule change.6 On August 17, 2017, pursuant to Section 19(b)(2) of the Exchange Act,7 the Commission designated a longer period for Commission action on proceedings to 14 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. 80041 (February 14, 2017), 82 FR 11252. 4 See Securities Exchange Act Release No. 80364, 82 FR 17065 (April 7, 2017). 5 15 U.S.C. 78s(b)(2)(B). 6 See Securities Exchange Act Release No. 80740, 82 FR 24412 (May 26, 2017). 7 15 U.S.C. 78s(b)(2). amozie on DSK3GDR082PROD with NOTICES1 1 15 VerDate Sep<11>2014 19:13 Oct 05, 2018 Jkt 247001 determine whether to approve or disapprove the proposed rule change.8 On September 19, 2017, the Exchange filed Amendment No. 1 to the proposed rule change.9 On October 18, 2017, the Exchange filed Amendment No. 2 to the proposed rule change.10 On October 19, 2017, the Division of Trading and Markets, for the Commission pursuant to delegated authority,11 approved the proposed rule change, as modified by Amendments No. 1 and No. 2.12 On October 24, 2017, the Secretary of the Commission notified the Exchange that pursuant to Rule 431 of the Commission’s Rules of Practice,13 the Commission would review the Delegated Order and that the Delegated Order was stayed until the Commission ordered otherwise.14 On November 8, 2017, the Commission issued a scheduling order allowing the filing of additional statements.15 On July 25, 2018, CHX withdrew the proposed rule change (SR–CHX–2017– 04).16 Under Commission Rule of Practice 431(a), the Commission may ‘‘affirm, reverse, modify, set aside or remand for further proceedings, in whole or in part, any action made pursuant to’’ delegated authority.17 We find that, in light of the CHX’s withdrawal of the proposed rule change, it is appropriate to set aside the Delegated Order. Accordingly, it is ordered that the October 19, 2017 order approving by delegated authority CHX’s proposed rule change number SR–CHX–2017–04, be, and it hereby is, set aside. By the Commission. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018–21761 Filed 10–5–18; 8:45 am] BILLING CODE 8011–01–P 8 See Securities Exchange Act Release No. 81415, 82 FR 40051 (August 23, 2017). 9 The amendments to the proposed rule change are available at: https://www.sec.gov/comments/srchx-2017-04/chx201704.htm. 10 See supra note 9. 11 17 CFR 200.30–3(a)(12). 12 See Exchange Act Release No. 81913, 82 FR 49433 (October 25, 2017) (‘‘Delegated Order’’). 13 17 CFR 201.431. 14 See Letter from Secretary of the Commission to Albert (A.J.) Kim, VP and Associate General Counsel, Chicago Stock Exchange, Inc., dated October 24, 2017, available at https://www.sec.gov/ rules/sro/chx/2017/34-81913-letter-fromsecretary.pdf. 15 See Exchange Act Release No. 80234, 82 FR 52762 (November 14, 2017). 16 See letter from Albert J. Kim, Vice President and Associate General Counsel, CHX, to Eduardo A. Aleman, Assistant Secretary, Commission, dated July 25, 2018. 17 17 CFR 201.431(a). PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Extension: Rule 10f–3; SEC File No. 270–237, OMB Control No. 3235–0226 Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3520), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget a request for extension and approval of the collections of information discussed below. Section 10(f) of the Investment Company Act of 1940 (15 U.S.C. 80a) (the ‘‘Act’’) prohibits a registered investment company (‘‘fund’’) from purchasing any security during an underwriting or selling syndicate if the fund has certain relationships with a principal underwriter for the security. Congress enacted this provision in 1940 to protect funds and their shareholders by preventing underwriters from ‘‘dumping’’ unmarketable securities on affiliated funds. Rule 10f–3 (17 CFR 270.10f–3) permits a fund to engage in a securities transaction that otherwise would violate section 10(f) if, among other things: (i) The fund’s directors have approved procedures for purchases made in reliance on the rule, regularly review fund purchases to determine whether they comply with these procedures, and approve necessary changes to the procedures; and (ii) a written record of each transaction effected under the rule is maintained for six years, the first two of which in an easily accessible place. The written record must state: (i) From whom the securities were acquired; (ii) the identity of the underwriting syndicate’s members; (iii) the terms of the transactions; and (iv) the information or materials on which the fund’s board of directors has determined that the purchases were made in compliance with procedures established by the board. The rule also conditionally allows managed portions of fund portfolios to purchase securities offered in otherwise off-limits primary offerings. To qualify for this exemption, rule 10f–3 requires that the subadviser that is advising the purchaser be contractually prohibited from providing investment advice to any other portion of the fund’s portfolio E:\FR\FM\09OCN1.SGM 09OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 83, Number 195 (Tuesday, October 9, 2018)]
[Notices]
[Pages 50718-50720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21783]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84340; File No. SR-BOX-2018-30]


Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend BOX Rule 
7600(a)(4) (Qualified Open Outcry Orders--Floor Crossing)

October 2, 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 September 20, 2018, BOX 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 BOX Rule 7600(a)(4) (Qualified Open 
Outcry Orders--Floor Crossing). 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 Rule 7600(a)(4) to provide the 
ability for the Exchange to determine the applicable number of legs for 
a Complex Qualified Open Outcry Orders (``Complex QOO Order'').\3\ 
Currently, Complex QOO Orders are limited to a maximum of four (4) legs 
on the BOX Trading Floor. The Exchange proposes to have the applicable 
number of legs now be determined by the Exchange.\4\ The Exchange notes 
that only orders that meet the definition of a Complex Order \5\ are 
allowed to trade on the BOX Trading Floor.\6\ Any orders that are 
entered into the system as a Complex Order on the BOX Trading Floor 
that do not meet the definition of a Complex Order will be rejected.
---------------------------------------------------------------------------

    \3\ A QOO Order is a two-sided order that is used by Floor 
Brokers to execute transactions from the Trading Floor. See Rule 
7600.
    \4\ The Exchange notes that the number of legs determined by the 
Exchange will apply to all classes. The Exchange also notes that the 
proposal discussed herein is not making any changes to the priority 
rules for Complex Orders.
    \5\ The term ``Complex Order'' means any order involving the 
simultaneous purchase and/or sale of two or more different options 
series in the same underlying security, for the same account, in a 
ratio that is equal to or greater than one-to-three (.333) and less 
than or equal to three-to-one (3.00) and for the purpose of 
executing a particular investment strategy. See BOX Rule 7240(a)(7).
    \6\ On the Trading Floor, a Floor Broker or such Floor Broker's 
employee shall, contemporaneously upon receipt of an order, and 
prior to announcement of such an order in the trading crowd, record 
all options orders represented by such Floor Broker onto the Floor 
Broker's order entry mechanism. See Rule 7580(e)(1).
---------------------------------------------------------------------------

    The Exchange will inform Participants in advance of any change to 
the number of legs via Informational Circular. The Exchange notes that 
another exchange in the industry has similar rules in place which 
provide flexibility in determining the maximum number of legs for 
complex orders at their respective exchange.\7\
---------------------------------------------------------------------------

    \7\ See Cboe Exchange Inc. (``Cboe'') Rule 6.53.02. Cboe's rule 
states that ``[c]omplex orders of twelve (12) or less must be 
entered on a single order ticket at time of systemization. If 
permitted by the Exchange (which the Exchange will announce by 
Regulatory Circular), complex orders of more than twelve (12) legs 
may be split across multiple order tickets . . .'' BOX believes that 
this is similar to the proposal discussed herein. BOX's reading of 
Cboe's rule suggests that Cboe may determine the applicable number 
of legs for complex orders on their respective trading floor. As 
such, the Exchange believes that the proposed change is similar to 
the Cboe rule cited above. BOX does note, however, that [sic] is not 
proposing a twelve leg maximum but rather that the Exchange be 
responsible for determining the applicable number of legs for 
Complex Orders on the BOX Trading Floor. Further, the Exchange will 
communicate to Participants in advance of any change to the 
applicable number of legs via Informational Circular. See also EDGX 
Exchange, Inc (``EDGX'') Rule 21.20(a)(5). The Exchange notes that 
EDGX is an electronic exchange and as such, its rules apply to 
electronic trading only.

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[[Page 50719]]

    The Exchange also proposes to correct the location of a misplaced 
comma in Rule 7600(a)(4). Rule 7600(a)(4), as amended, will make clear 
that the cross reference to Rule 7240(a)(5) applies to Complex QOO 
Orders and not multi-leg orders. The Exchange believes that this 
correction will add clarity with regard to Complex QOO Orders traded on 
the BOX Trading Floor.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Securities Exchange Act of 1934 
(the ``Act''),\8\ in general, and Section 6(b)(5) of the Act,\9\ 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, 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the Exchange believes the proposed rule change, 
which provides the Exchange with greater flexibility in determining the 
maximum number of legs for Complex QOO Orders, will benefit Floor 
Brokers and their customers by providing the potential for increased 
opportunities for executions on the BOX Trading Floor. Further, the 
Exchange believes that the proposed change will provide the potential 
for greater liquidity which should, in turn, benefit and protect 
investors and the public interest through the potential for greater 
volume of orders and executions on the BOX Trading Floor. As discussed 
above, the Exchange notes that another exchange has a similar rule 
which allows for the maximum number of legs for complex orders to be 
determined by the exchange.\10\
---------------------------------------------------------------------------

    \10\ See supra, note 7.
---------------------------------------------------------------------------

    Lastly, the Exchange believes that the proposed change to correct 
the inadvertent error in Rule 7600(a)(4) is reasonable as it will 
provide clarity with respect to QOO Orders on the Exchange.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. In this regard and as indicated 
above, the Exchange notes that the proposed rule change is similar to 
the rules of another exchange.\11\ The Exchange does not believe the 
proposal will impose any burden on intermarket competition, as the 
proposed rule will allow BOX to compete with other options exchanges in 
the industry. The Exchange notes that it operates in a highly 
competitive market in which market participants can readily direct 
order flow to competing venues who offer similar functionality. Lastly, 
the Exchange believes that the proposed change will not impose a burden 
on intramarket competition as the proposal will apply to all 
Participants that wish to submit Complex Orders on the BOX Trading 
Floor.
---------------------------------------------------------------------------

    \11\ Id.
---------------------------------------------------------------------------

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

    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 for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate, it has become effective pursuant to Section 
19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its 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.
---------------------------------------------------------------------------

    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-2018-30 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-2018-30. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of such filing also will be available for inspection 
and copying at the principal office of the Exchange. All comments 
received will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit

[[Page 50720]]

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-2018-30, and should be 
submitted on or before October 30, 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. 2018-21783 Filed 10-5-18; 8:45 am]
 BILLING CODE 8011-01-P

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