Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7260 by Extending the Penny Pilot Program Through December 31, 2019, 27388-27390 [2019-12343]
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Federal Register / Vol. 84, No. 113 / Wednesday, June 12, 2019 / Notices
Exchange’s Regulation Department.17
The Commission believes that the
Exchange could leverage its knowledge
of its markets and members, its
experience with investigation and
enforcement work, and its surveillance,
investigation, and enforcement staff, in
helping it to effectively and efficiently
conduct the reallocated investigation
and enforcement activities. The
Commission also notes that the proposal
would be an incremental reallocation of
operational responsibility because the
staff of the Exchange’s Regulation
Department currently performs the same
investigative and enforcement work on
behalf of Nasdaq PHLX LLC, Nasdaq
ISE, LLC, Nasdaq GEMX, LLC, and
Nasdaq MRX, LLC.18 Moreover, the
Commission recently approved a similar
proposal by Nasdaq to reallocate
operational responsibility for specific
investigation and enforcement activities
from FINRA to Nasdaq.19 In addition,
the Exchange states that BX Regulation
has instituted the requisite
infrastructure to accommodate the
internalization of the investigative and
enforcement work on behalf of the
Exchange.20 Furthermore, the Exchange
states that BX Regulation has developed
comprehensive plans covering the
transition and has met regularly for
more than one year to ensure a smooth
transition of the work and prevent any
gaps in regulatory coverage.21
Accordingly, the Commission believes
that the proposed rule change, as
modified by Amendment No. 1, is
consistent with the Act.
IV. Solicitation of Comments on
Amendment No. 1 to the Proposed Rule
Change
Interested persons are invited to
submit written data, views, and
arguments concerning whether
Amendment No. 1 is consistent with the
17 See
supra notes 7–9 and accompanying text.
Amendment No. 1, supra note 4 at 7. As
noted above, the staff that comprises the Exchange’
Regulation Department is the same that comprises
the Nasdaq Regulation Department. See supra note
7.
19 See Securities Exchange Act Release No. 85505
(April 3, 2019), 84 FR 14170 (April 9, 2019) (SR–
NASDAQ–2019–007).
20 See Amendment No. 1, supra note 4 at 8.
Specifically, BX has created a new investigation
and enforcement group to perform the functions
covered by this proposal, which included hiring
additional staff. See id. at 9. The Exchange would
also leverage its existing staff of analysts, lawyers,
programmers, and market structure experts to assist,
where necessary, with performing the new
functions covered by this proposal. See id.
21 See id. The investigatory and disciplinary
processes and related rules applicable to Exchange
members that FINRA currently follows on the
Exchange’s behalf (i.e., the Series 8000 and 9000
rules) will remain the same. See id. at 9 n.17.
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18 See
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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–
BX–2019–002 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–BX–2019–002. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BX–2019–002 and should
be submitted on or before July 3, 2019.
V. Accelerated Approval of Proposed
Rule Change, as Modified by
Amendment No. 1
The Commission finds good cause to
approve the proposed rule change, as
modified by Amendment No. 1, prior to
the thirtieth day after the date of
publication of notice of the filing of
Amendment No. 1 in the Federal
Register. The Commission notes that, in
Amendment No. 1, the Exchange
provided additional information to
PO 00000
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Fmt 4703
Sfmt 4703
clarify and support the proposal, and
did not materially change the substance
of the proposal. The Commission also
notes that the original proposal was
subject to a 21-day comment period and
no comments were received.
Accordingly, the Commission finds
good cause, pursuant to Section 19(b)(2)
of the Act,22 to approve the proposed
rule change, as modified by Amendment
No. 1, on an accelerated basis.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,23 that the
proposed rule change (SR–BX–2019–
002), as modified by Amendment No. 1
be, and hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–12341 Filed 6–11–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86053; File No. SR–BOX–
2019–20]
Self-Regulatory Organizations; BOX
Exchange LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 7260 by
Extending the Penny Pilot Program
Through December 31, 2019
June 6, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 3,
2019, 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
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 7260 by extending the Penny Pilot
Program through December 31, 2019.
The text of the proposed rule change is
22 15
U.S.C. 78s(b)(2).
23 Id.
24 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 84, No. 113 / Wednesday, June 12, 2019 / Notices
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
jbell on DSK3GLQ082PROD with NOTICES
The Exchange proposes to extend the
effective time period of the Penny Pilot
Program that is currently scheduled to
expire on June 30, 2019, until December
31, 2019.3 The Penny Pilot Program
permits certain classes to be quoted in
penny increments. The minimum price
variation for all classes included in the
Penny Pilot Program, except for
PowerShares QQQ Trust (‘‘QQQQ’’)®,
SPDR S&P 500 Exchange Traded Funds
(‘‘SPY’’), and iShares Russell 2000 Index
Funds (‘‘IWM’’), will continue to be
$0.01 for all quotations in options series
3 The Penny Pilot Program has been in effect on
the Exchange since its inception in May 2012. See
Securities Exchange Act Release Nos. 66871 (April
27, 2012), 77 FR 26323 (May 3, 2012) (File No.10–
206, In the Matter of the Application of BOX
Options Exchange LLC for Registration as a
National Securities Exchange Findings, Opinion,
and Order of the Commission), 67328 (June 29,
2012), 77 FR 40123 (July 6, 2012) (SR–BOX–2012–
007), 68425 (December 13, 2012), 77 FR 75234
(December 19, 2013) (SR–BOX–2012–021), 69789
(June 18, 2013), 78 FR 37854 (June 24, 2013) (SR–
BOX–2013–31), 71056 (December 12, 2013), 78 FR
76691 (December 18, 2013) (SR–BOX–2013–56),
72348 (June 9, 2014), 79 FR 33976 (June 13, 2014)
(SR–BOX–2014–17), 73822 (December 11, 2014), 79
FR 75606 (December 18, 2014) (SR–BOX–2014–29),
75295 (June 25, 2015), 80 FR 37690 (July 1, 2015)
(SR–BOX–2015–23), 78172 (June 28, 2016), 81 FR
43325 (July 1, 2016) (SR–BOX–2016–24), 79429
(November 30, 2016), 81 FR 87991 (December 6,
2016) (SR–BOX–2016–55), 80828 (May 31, 2017),
82 FR 26175 (June 6, 2017) (SR–BOX–2017–18),
82353 (December 19, 2017) 82 FR 61087 (December
26, 2017) (SR–BOX–2017–37), and 83500 (June 22,
2018), 83 FR 30471 (June 28, 2018) (SR–BOX–2018–
23), and 84869 (December 19, 2018), 83 FR 66806
(December 27, 2018) (SR–BOX–2018–38). The
extension of the effective date is the only change
to the Penny Pilot Program being proposed at this
time.
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27389
that are quoted at less than $3 per
contract and $0.05 for all quotations in
options series that are quoted at $3 per
contract or greater. QQQQ, SPY, and
IWM will continue to be quoted in $0.01
increments for all options series.
The Exchange may replace any Pilot
Program classes that have been delisted
on the second trading day in the first
month of each quarter. The Exchange
notes that the replacement classes will
be selected based on trading activity in
the previous six months. The Exchange
will employ the same parameters to
prospective replacement classes as
approved and applicable under the Pilot
Program, including excluding highpriced underlying securities. The
Exchange will distribute a Regulatory
Circular notifying Participants which
replacement classes shall be included in
the Penny Pilot Program.
BOX is specifically authorized to act
jointly with the other options exchanges
participating in the Pilot Program in
identifying any replacement class.
Pilot and a determination of how the
Pilot should be structured in the future;
and will serve to promote regulatory
clarity and consistency, thereby
reducing burdens on the marketplace
and facilitating investor protection. The
Pilot is an industry wide initiative
supported by all other option
exchanges. The Exchange believes that
extending the Pilot will allow for
continued competition between market
participants on the Exchange trading
similar products as their counterparts
on other exchanges, while at the same
time allowing the Exchange to continue
to compete for order flow with other
exchanges in option issues trading as
part of the Pilot.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,4
in general, and Section 6(b)(5) of the
Act,5 in particular, in that it is designed
to prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general protect investors and the public
interest.
In particular, the proposed rule
change, which extends the Penny Pilot
until December 31, 2019, will enable
public customers and other market
participants to express their true prices
to buy and sell options for the benefit
of all market participants. This is
consistent with the Act.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A) of the Act 6 and Rule 19b–
4(f)(6) 7 thereunder. Because the
foregoing 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 after the date of
the filing, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to 19(b)(3)(A) of the
Act 8 and Rule 19b–4(f)(6) 9 thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) 10 normally does not
become operative prior to 30 days after
the date of filing. However, pursuant to
Rule 19b–4(f)(6)(iii),11 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, this proposal is procompetitive because it allows Penny
Pilot issues to continue trading on the
Exchange. Moreover, the Exchange
believes that the proposed rule change
will allow for further analysis of the
4 15
5 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00159
Fmt 4703
Sfmt 4703
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.
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
8 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
7 17
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Federal Register / Vol. 84, No. 113 / Wednesday, June 12, 2019 / Notices
the proposal may become operative
immediately upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because doing so will
allow the Pilot Program to continue
without interruption in a manner that is
consistent with the Commission’s prior
approval of the extension and expansion
of the Pilot Program.12 Accordingly, the
Commission designates the proposed
rule change as operative upon filing
with the Commission.13
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–2019–20 on the subject line.
jbell on DSK3GLQ082PROD with NOTICES
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–2019–20. 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
12 See Securities Exchange Release No. 61061
(November 24, 2009), 74 FR 62857 (December 1,
2009) (SR–NYSEArca–2009–44).
13 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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17:00 Jun 11, 2019
Jkt 247001
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, on official business
days between the hours of 10:00 a.m.
and 3:00 p.m., located at 100 F Street
NE, Washington, DC 20549. Copies of
such filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–BOX–2019–20 and should
be submitted on or before July 3, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–12343 Filed 6–11–19; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice: 10794]
Review of the Designation as a Foreign
Terrorist Organization of Shining Path
(and Other Aliases)
Based upon a review of the
Administrative Record assembled
pursuant to Section 219(a)(4)(C) of the
Immigration and Nationality Act, as
amended (8 U.S.C. 1189(a)(4)(C))
(‘‘INA’’), and in consultation with the
Attorney General and the Secretary of
the Treasury, I conclude that the
circumstances that were the basis for the
designation of the aforementioned
organization as a Foreign Terrorist
Organization have not changed in such
a manner as to warrant revocation of the
designation and that the national
security of the United States does not
warrant a revocation of the designation.
Therefore, I hereby determine that the
designation of the aforementioned
organization as a Foreign Terrorist
Organization, pursuant to Section 219 of
14 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00160
Fmt 4703
Sfmt 4703
the INA (8 U.S.C. 1189), shall be
maintained.
This determination shall be published
in the Federal Register.
Dated: May 23, 2019.
John J. Sullivan,
Deputy Secretary of State, Department of
State.
[FR Doc. 2019–12381 Filed 6–11–19; 8:45 am]
BILLING CODE 4710–AD–P
DEPARTMENT OF STATE
[Public Notice 10788]
60 Day Notice of Proposed Information
Collection: Statement of Consent:
Issuance of a U.S. Passport to a Minor
Notice of request for public
comment.
ACTION:
The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
In accordance with the Paperwork
Reduction Act of 1995, we are
requesting comments on this collection
from all interested individuals and
organizations. The purpose of this
notice is to allow 60 days for public
comment preceding submission of the
collection to OMB.
DATES: The Department will accept
comments from the public up to August
12, 2019.
ADDRESSES: You may submit comments
by any of the following methods:
• Web: Persons with access to the
internet may comment on this notice by
going to www.Regulations.gov. You can
search for the document by entering
‘‘Docket Number: DOS–2019–0015’’ in
the Search field. Then click the
‘‘Comment Now’’ button and complete
the comment form.
• Email: PPTFormsOfficer@state.gov.
• Regular Mail: Send written
comments to: PPT Forms Officer, U.S.
Department of State, CA/PPT/S/PMO/
CR, 44132 Mercure Cir, PO Box 1199,
Sterling, VA 20166–1199.
You must include the DS form
number (if applicable), information
collection title, and the OMB control
number in any correspondence.
SUPPLEMENTARY INFORMATION:
• Title of Information Collection:
Statement of Consent: Issuance of a U.S.
Passport to a Minor.
• OMB Control Number: 1405–0129.
• Type of Request: Revision of a
Currently Approved Collection.
• Originating Office: Bureau of
Consular Affairs, Passport Services,
Office of Program Management and
Operational Support (CA/PPT/S/PMO/
CR).
SUMMARY:
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]]>Agencies
[Federal Register Volume 84, Number 113 (Wednesday, June 12, 2019)]
[Notices]
[Pages 27388-27390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12343]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86053; File No. SR-BOX-2019-20]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Rule
7260 by Extending the Penny Pilot Program Through December 31, 2019
June 6, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 3, 2019, 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 from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 7260 by extending the Penny
Pilot Program through December 31, 2019. The text of the proposed rule
change is
[[Page 27389]]
available from the principal office of the Exchange, at the
Commission's Public Reference Room and also on the Exchange's internet
website at https://boxoptions.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to extend the effective time period of the
Penny Pilot Program that is currently scheduled to expire on June 30,
2019, until December 31, 2019.\3\ The Penny Pilot Program permits
certain classes to be quoted in penny increments. The minimum price
variation for all classes included in the Penny Pilot Program, except
for PowerShares QQQ Trust (``QQQQ'')[supreg], SPDR S&P 500 Exchange
Traded Funds (``SPY''), and iShares Russell 2000 Index Funds (``IWM''),
will continue to be $0.01 for all quotations in options series that are
quoted at less than $3 per contract and $0.05 for all quotations in
options series that are quoted at $3 per contract or greater. QQQQ,
SPY, and IWM will continue to be quoted in $0.01 increments for all
options series.
---------------------------------------------------------------------------
\3\ The Penny Pilot Program has been in effect on the Exchange
since its inception in May 2012. See Securities Exchange Act Release
Nos. 66871 (April 27, 2012), 77 FR 26323 (May 3, 2012) (File No.10-
206, In the Matter of the Application of BOX Options Exchange LLC
for Registration as a National Securities Exchange Findings,
Opinion, and Order of the Commission), 67328 (June 29, 2012), 77 FR
40123 (July 6, 2012) (SR-BOX-2012-007), 68425 (December 13, 2012),
77 FR 75234 (December 19, 2013) (SR-BOX-2012-021), 69789 (June 18,
2013), 78 FR 37854 (June 24, 2013) (SR-BOX-2013-31), 71056 (December
12, 2013), 78 FR 76691 (December 18, 2013) (SR-BOX-2013-56), 72348
(June 9, 2014), 79 FR 33976 (June 13, 2014) (SR-BOX-2014-17), 73822
(December 11, 2014), 79 FR 75606 (December 18, 2014) (SR-BOX-2014-
29), 75295 (June 25, 2015), 80 FR 37690 (July 1, 2015) (SR-BOX-2015-
23), 78172 (June 28, 2016), 81 FR 43325 (July 1, 2016) (SR-BOX-2016-
24), 79429 (November 30, 2016), 81 FR 87991 (December 6, 2016) (SR-
BOX-2016-55), 80828 (May 31, 2017), 82 FR 26175 (June 6, 2017) (SR-
BOX-2017-18), 82353 (December 19, 2017) 82 FR 61087 (December 26,
2017) (SR-BOX-2017-37), and 83500 (June 22, 2018), 83 FR 30471 (June
28, 2018) (SR-BOX-2018-23), and 84869 (December 19, 2018), 83 FR
66806 (December 27, 2018) (SR-BOX-2018-38). The extension of the
effective date is the only change to the Penny Pilot Program being
proposed at this time.
---------------------------------------------------------------------------
The Exchange may replace any Pilot Program classes that have been
delisted on the second trading day in the first month of each quarter.
The Exchange notes that the replacement classes will be selected based
on trading activity in the previous six months. The Exchange will
employ the same parameters to prospective replacement classes as
approved and applicable under the Pilot Program, including excluding
high-priced underlying securities. The Exchange will distribute a
Regulatory Circular notifying Participants which replacement classes
shall be included in the Penny Pilot Program.
BOX is specifically authorized to act jointly with the other
options exchanges participating in the Pilot Program in identifying any
replacement class.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\4\ in general, and Section
6(b)(5) of the Act,\5\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general protect investors
and the public interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the proposed rule change, which extends the Penny
Pilot until December 31, 2019, will enable public customers and other
market participants to express their true prices to buy and sell
options for the benefit of all market participants. This is consistent
with the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, this proposal
is pro-competitive because it allows Penny Pilot issues to continue
trading on the Exchange. Moreover, the Exchange believes that the
proposed rule change will allow for further analysis of the Pilot and a
determination of how the Pilot should be structured in the future; and
will serve to promote regulatory clarity and consistency, thereby
reducing burdens on the marketplace and facilitating investor
protection. The Pilot is an industry wide initiative supported by all
other option exchanges. The Exchange believes that extending the Pilot
will allow for continued competition between market participants on the
Exchange trading similar products as their counterparts on other
exchanges, while at the same time allowing the Exchange to continue to
compete for order flow with other exchanges in option issues trading as
part of the Pilot.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) \7\ thereunder. Because
the foregoing 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 after the date of the filing, or such shorter time as the
Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6)
\9\ thereunder.
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6).
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative prior to 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that
[[Page 27390]]
the proposal may become operative immediately upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because doing so will allow the Pilot Program to continue without
interruption in a manner that is consistent with the Commission's prior
approval of the extension and expansion of the Pilot Program.\12\
Accordingly, the Commission designates the proposed rule change as
operative upon filing with the Commission.\13\
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
\12\ See Securities Exchange Release No. 61061 (November 24,
2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44).
\13\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of 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-2019-20 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-2019-20. 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 10:00 a.m. and 3:00 p.m., located at 100 F Street
NE, Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change. Persons submitting
comments are cautioned that we do not redact or edit personal
identifying information from comment submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-BOX-2019-20 and should be
submitted on or before July 3, 2019.
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,
Deputy Secretary.
[FR Doc. 2019-12343 Filed 6-11-19; 8:45 am]
BILLING CODE 8011-01-P
