Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Options Market LLC (“BOX”) Facility To Modify Certain Agency Order Fees for Facilitation and Solicitation Transactions, 5521-5523 [2019-02900]
Download as PDF
Federal Register / Vol. 84, No. 35 / Thursday, February 21, 2019 / Notices
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
because it would provide ETP Holders
with the option for orders with a MTS
Modifier to trade on entry only with
individual orders that each meets the
MTS of the incoming order, thereby
providing ETP Holders with more
control in how such orders could
execute. The proposed rule change is
based on similar options available for
users of minimum trade size
functionality on the Exchange’s affiliate,
NYSE American, as well as Nasdaq, IEX,
and the Cboe Equity Exchanges.17 The
Exchange further believes that this
proposed option would remove
impediments to, and perfect the
mechanism of, a free and open market
and a national market system because it
would allow ETP Holders to provide an
instruction that an order with an MTS
Modifier would not trade with orders
that are smaller in size than the MTS for
such order, thereby providing ETP
Holders with more control over when an
order with an MTS Modifier may be
executed.
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
Exchange believes that the proposed
rule change is designed to increase
competition by making available on the
Exchange functionality that is already
available on Nasdaq, IEX, and the Cboe
Equity Exchanges. The Exchange also
believes that the proposed rule change
would promote competition by
providing market participants with an
additional venue to which to route nondisplayed, non-routable orders with an
MTS Modifier.
amozie on DSK3GDR082PROD with NOTICES1
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to 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
17 See
supra notes 9 and 11.
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17:08 Feb 20, 2019
Jkt 247001
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 18 and Rule 19b–
4(f)(6) thereunder.19
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
5521
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NYSENAT–2019–02, and
should be submitted on or before March
14, 2019.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Eduardo A. Aleman,
Deputy Secretary.
Electronic Comments
[FR Doc. 2019–02898 Filed 2–20–19; 8:45 am]
• 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–
NYSENAT–2019–02 on the subject line.
BILLING CODE 8011–01–P
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–NYSENAT–2019–02. 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
18 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.
19 17
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Frm 00118
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85139; File No. SR–BOX–
2019–02]
Self-Regulatory Organizations; BOX
Exchange LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the Fee
Schedule on the BOX Options Market
LLC (‘‘BOX’’) Facility To Modify Certain
Agency Order Fees for Facilitation and
Solicitation Transactions
February 14, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on February
1, 2019, BOX 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 Exchange. The
Exchange filed the proposed rule change
pursuant to Section 19(b)(3)(A)(ii) of the
Act,3 and Rule 19b–4(f)(2) thereunder,4
which renders the proposal effective
upon filing with the Commission. The
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
1 15
E:\FR\FM\21FEN1.SGM
21FEN1
5522
Federal Register / Vol. 84, No. 35 / Thursday, February 21, 2019 / Notices
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
to amend the Fee Schedule to amend
the Fee Schedule [sic] on the BOX
Options Market LLC (‘‘BOX’’) options
facility. 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://boxexchange.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
Exchange 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
Exchange 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 the
Fee Schedule for trading on BOX to
amend Section I.C (Facilitation and
Solicitation Transactions).5 Specifically,
the Exchange proposes to decrease the
Agency Order 6 fees for Professional
Customers, Broker Dealers and Market
Makers from $0.15 to $0.00 for Penny
Pilot and Non-Penny Pilot Classes.
amozie on DSK3GDR082PROD with NOTICES1
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,
in general, and Section 6(b)(4) and
6(b)(5)of the Act,7 in particular, in that
it provides for the equitable allocation
of reasonable dues, fees, and other
charges among BOX Participants and
5 Transactions
executed through the Solicitation
Auction mechanism and Facilitation Auction
mechanism.
6 An Agency Order is a block-size order that an
Order Flow Provider seeks to facilitate as agent
through the Facilitation Auction or Solicitation
Auction mechanism.
7 15 U.S.C. 78f(b)(4) and (5).
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17:08 Feb 20, 2019
Jkt 247001
other persons using its facilities and
does not unfairly discriminate between
customers, issuers, brokers or dealers.
The Exchange believes that the
proposed changes are reasonable as the
Exchange is eliminating the fees for
Professional Customers, Broker Dealers
and Market Makers for their Agency
Orders in the Facilitation and
Solicitation mechanism.8 The Exchange
believes that eliminating these fees will
attract order flow to these mechanisms
which will result in greater liquidity
and ultimately benefit all Participants
trading on the Exchange. Further, the
Exchange believes that the proposed
change is equitable and not unfairly
discriminatory, as the proposed change
applies to all Professional Customers,
Broker Dealers and Market Makers. The
Exchange notes that there is no fee
charged to Public Customers for their
Agency Orders in the Facilitation and
Solicitation mechanism.
Finally, the Exchange notes that it
operates in a highly competitive market
in which market participants can
readily favor competing exchanges. In
such an environment, the Exchange
must continually review, and consider
adjusting, its fees to remain competitive
with other exchanges. For the reasons
described above, the Exchange believes
that the proposed rule change reflects
this competitive environment.
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. The
Exchange believes that the proposed
changes to the Facilitation and
Solicitation Transaction fees will not
impose a burden on competition among
various Exchange Participants. Rather,
BOX believes that the changes will
result in the Participants being charged
appropriately for these transactions and
are designed to enhance competition in
the Facilitation and Solicitation
mechanisms. Submitting an order is
entirely voluntary and Participants can
determine which order type they wish
to submit, if any, to the Exchange.
Further, the Exchange believes that this
proposal will enhance competition
between exchanges because it is
designed to allow the Exchange to better
compete with other exchanges for order
flow. The Exchange does not believe
that the proposed change will burden
8 The Exchange notes that it previously did not
charge Broker Dealers, Professional Customers and
Market Makers for Agency Orders in the Facilitation
and Solicitation mechanism. See SR–BOX–2015–
29.
PO 00000
Frm 00119
Fmt 4703
Sfmt 4703
competition by creating a disparity
between the fees an initiator pays and
the fees a competitive responder pays
that would result in certain Participants
being unable to compete with initiators.
In fact, the Exchange believes that these
changes will not impair these
Participants from adding liquidity and
competing in the Facilitation and
Solicitation mechanisms, and will help
promote competition by providing
incentives for market participants to
submit Agency Orders, and thus benefit
all Participants trading on the Exchange
by attracting customer order flow.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act 9 and
Rule 19b–4(f)(2) thereunder,10 because
it establishes or changes a due, or fee.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend the rule change if
it appears to the Commission that the
action is necessary or appropriate in the
public interest, for the protection of
investors, or would otherwise further
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–2019–02 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.
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10 17
E:\FR\FM\21FEN1.SGM
21FEN1
Federal Register / Vol. 84, No. 35 / Thursday, February 21, 2019 / Notices
All submissions should refer to File
Number SR–BOX–2019–02. 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
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–2019–02, and should
be submitted on or before March 14,
2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–02900 Filed 2–20–19; 8:45 am]
amozie on DSK3GDR082PROD with NOTICES1
BILLING CODE 8011–01–P
11 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:08 Feb 20, 2019
Jkt 247001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85137; File No. SR–FICC–
2018–013]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Designation of Longer Period for
Commission Action and Reopening the
Period for Comment on Proposed Rule
Change To Expand Sponsoring
Member Eligibility in the Government
Securities Division Rulebook and Make
Other Changes
February 14, 2019.
On December 13, 2018, Fixed Income
Clearing Corporation (‘‘FICC’’) 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 proposed rule
change SR–FICC–2018–013 to expand
sponsoring member eligibility and make
other changes.3 The proposed rule
change was published for comment in
the Federal Register on December 31,
2018.4 As of February 13, 2019, the
Commission has received five comment
letters to the proposed rule change,5
including a response letter from FICC.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 On December 13, 2018, FICC also filed the
proposal contained in the proposed rule change as
advance notice SR–FICC–2018–802 with the
Commission pursuant to Section 806(e)(1) of the
Dodd-Frank Wall Street Reform and Consumer
Protection Act entitled the Payment, Clearing, and
Settlement Supervision Act of 2010 (‘‘Clearing
Supervision Act’’), 12 U.S.C. 5465(e)(1), and Rule
19b–4(n)(1)(i) of the Act, 17 CFR 240.19b–4(n)(1)(i).
4 Securities Exchange Act Release No. 84951
(December 21, 2018), 83 FR 67801 (December 31,
2018) (SR–FICC–2018–013) (‘‘Notice’’).
5 See letter from Robert E. Pooler, Jr., Chief
Financial Officer, Ronin Capital, LLC, dated January
18, 2019, to Brent J. Fields, Secretary, Commission
(‘‘Ronin Letter’’); letter from James Tabacchi,
Chairman, Independent Dealer and Trade
Association, dated January 22, 2019, to Brent J.
Fields, Secretary, Commission (‘‘IDTA Letter’’);
letter from Robert Toomey, Managing Director and
Associate General Counsel, Securities Industry and
Financial Markets Association, dated January 22,
2019, to Brent J. Fields, Secretary, Commission
(‘‘SIFMA Letter’’); letter from Stephen John Berger,
Managing Director, Government & Regulatory
Policy, Citadel, dated January 30, 2019, to Brent J.
Fields, Secretary, Commission (‘‘Citadel Letter’’);
and letter from Murray Pozmanter, Managing
Director, DTCC, dated February 4, 2019, to Brent J.
Fields, Secretary, Commission (‘‘FICC Response
Letter’’). See comments on the proposed rule
change (SR–FICC–2018–013), available at https://
www.sec.gov/comments/sr-ficc-2018-013/srficc
2018013.htm. Because the proposal contained in
the proposed rule change was also filed as an
advance notice, supra note 3, the Commission is
considering all public comments received on the
proposal regardless of whether the comments were
submitted to the advance notice or the proposed
rule change.
2 17
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
5523
Section 19(b)(2) of the Act 6 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day after
publication of the notice for the
proposed rule change is February 14,
2019.
The Commission is extending the 45day time period for Commission action
on the proposed rule change. The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider and take action on the
proposed rule change.
Accordingly, pursuant to Section
19(b)(2) of the Act 7 and for the reasons
stated above, the Commission
designates March 31, 2019 as the date
by which the Commission shall either
approve, disapprove, or institute
proceedings to determine whether to
disapprove the proposed rule change
(File No. SR–FICC–2018–013).
The Commission also seeks additional
comment to help further inform its
analysis of the proposed rule change.
The comment period for the proposed
rule change ended on January 22, 2019.8
As of February 13, 2019, the
Commission has received five comment
letters to the proposed rule change.9 The
Commission is reopening the comment
period for the proposed rule change to
allow interested persons additional time
to analyze the issues and prepare their
comments. Accordingly, the
Commission designates [insert date 21
days from publication in the Federal
Register] as the date comments should
be submitted on or before.
Specifically, the Commission invites
interested persons to provide views,
data, and arguments concerning the
proposed rule change, including
whether the proposed rule change is
consistent with the Act and the
applicable rules or regulations
thereunder. Please note that comments
previously received on the substance of
the proposed rule change will be
considered together with comments
6 15
U.S.C. 78s(b)(2).
U.S.C. 78s(b)(2).
8 Notice, 83 FR at 67808.
9 See supra note 5.
7 15
E:\FR\FM\21FEN1.SGM
21FEN1
Agencies
[Federal Register Volume 84, Number 35 (Thursday, February 21, 2019)]
[Notices]
[Pages 5521-5523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02900]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85139; File No. SR-BOX-2019-02]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee
Schedule on the BOX Options Market LLC (``BOX'') Facility To Modify
Certain Agency Order Fees for Facilitation and Solicitation
Transactions
February 14, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 1, 2019, BOX 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 Exchange. The Exchange filed the
proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The
[[Page 5522]]
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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange is filing with the Securities and Exchange Commission
(``Commission'') a proposed rule change to amend the Fee Schedule to
amend the Fee Schedule [sic] on the BOX Options Market LLC (``BOX'')
options facility. 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://boxexchange.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 Exchange 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 Exchange 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 the Fee Schedule for trading on BOX
to amend Section I.C (Facilitation and Solicitation Transactions).\5\
Specifically, the Exchange proposes to decrease the Agency Order \6\
fees for Professional Customers, Broker Dealers and Market Makers from
$0.15 to $0.00 for Penny Pilot and Non-Penny Pilot Classes.
---------------------------------------------------------------------------
\5\ Transactions executed through the Solicitation Auction
mechanism and Facilitation Auction mechanism.
\6\ An Agency Order is a block-size order that an Order Flow
Provider seeks to facilitate as agent through the Facilitation
Auction or Solicitation Auction mechanism.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act, in general, and Section
6(b)(4) and 6(b)(5)of the Act,\7\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among BOX Participants and other persons using its facilities
and does not unfairly discriminate between customers, issuers, brokers
or dealers.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that the proposed changes are reasonable as
the Exchange is eliminating the fees for Professional Customers, Broker
Dealers and Market Makers for their Agency Orders in the Facilitation
and Solicitation mechanism.\8\ The Exchange believes that eliminating
these fees will attract order flow to these mechanisms which will
result in greater liquidity and ultimately benefit all Participants
trading on the Exchange. Further, the Exchange believes that the
proposed change is equitable and not unfairly discriminatory, as the
proposed change applies to all Professional Customers, Broker Dealers
and Market Makers. The Exchange notes that there is no fee charged to
Public Customers for their Agency Orders in the Facilitation and
Solicitation mechanism.
---------------------------------------------------------------------------
\8\ The Exchange notes that it previously did not charge Broker
Dealers, Professional Customers and Market Makers for Agency Orders
in the Facilitation and Solicitation mechanism. See SR-BOX-2015-29.
---------------------------------------------------------------------------
Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing exchanges. In such an environment, the Exchange must
continually review, and consider adjusting, its fees to remain
competitive with other exchanges. For the reasons described above, the
Exchange believes that the proposed rule change reflects this
competitive environment.
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. The Exchange believes that the
proposed changes to the Facilitation and Solicitation Transaction fees
will not impose a burden on competition among various Exchange
Participants. Rather, BOX believes that the changes will result in the
Participants being charged appropriately for these transactions and are
designed to enhance competition in the Facilitation and Solicitation
mechanisms. Submitting an order is entirely voluntary and Participants
can determine which order type they wish to submit, if any, to the
Exchange. Further, the Exchange believes that this proposal will
enhance competition between exchanges because it is designed to allow
the Exchange to better compete with other exchanges for order flow. The
Exchange does not believe that the proposed change will burden
competition by creating a disparity between the fees an initiator pays
and the fees a competitive responder pays that would result in certain
Participants being unable to compete with initiators. In fact, the
Exchange believes that these changes will not impair these Participants
from adding liquidity and competing in the Facilitation and
Solicitation mechanisms, and will help promote competition by providing
incentives for market participants to submit Agency Orders, and thus
benefit all Participants trading on the Exchange by attracting customer
order flow.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act \9\ and Rule 19b-4(f)(2)
thereunder,\10\ because it establishes or changes a due, or fee.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend the rule
change if it appears to the Commission that the action is necessary or
appropriate in the public interest, for the protection of investors, or
would otherwise further 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-2019-02 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.
[[Page 5523]]
All submissions should refer to File Number SR-BOX-2019-02. 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 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-2019-02, and should be submitted on
or before March 14, 2019.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-02900 Filed 2-20-19; 8:45 am]
BILLING CODE 8011-01-P