Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7110 (Order Entry) and Rule 7130 (Execution and Price/Time Priority) Regarding Availability of Identity of Options Participants, 16465-16467 [2023-05446]
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Federal Register / Vol. 88, No. 52 / Friday, March 17, 2023 / Notices
notice by April 17, 2023 to (i)
www.reginfo.gov/public/do/PRAMain
and (ii) David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or by sending an email to:
PRA_Mailbox@sec.gov.
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–570, OMB Control No.
3235–0632]
lotter on DSK11XQN23PROD with NOTICES1
Submission for OMB Review;
Comment Request; Extension: Rule
12h–1(f)
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget this
request for extension of the previously
approved collection of information
discussed below.
Rule 12h–1(f) (17 CFR 240.12h–1(f))
under the Securities Exchange Act of
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exemption from the Exchange Act
Section 12(g) registration requirements
for compensatory employee stock
options of issuers that are not required
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under Exchange Act Rule 12h–1 is not
filed with the Commission. Exchange
Act Rule 12h–1(f) permits issuers to
provide the required information to the
option holders either by: (i) physical or
electronic delivery of the information;
or (ii) written notice to the option
holders of the availability of the
information on a password-protected
internet site. We estimate that it takes
approximately 2 burden hours per
response to prepare and provide the
information required under Rule 12h–
1(f) and it is prepared and provided by
approximately 40 respondents. We
estimate that 25% of the 2 hours per
response (0.5 hours per response) is
prepared by the company for a total
annual reporting burden of 20 hours (0.5
hours per response × 40 responses).
An agency may conduct or sponsor,
and a person is not required to respond
to, a collection of information unless it
displays a currently valid control
number.
The public may view background
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collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
VerDate Sep<11>2014
17:04 Mar 16, 2023
Jkt 259001
Dated: March 13, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–05437 Filed 3–16–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97127; File No. SR–BOX–
2023–08]
Self-Regulatory Organizations; BOX
Exchange LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 7110
(Order Entry) and Rule 7130 (Execution
and Price/Time Priority) Regarding
Availability of Identity of Options
Participants
March 13, 2023.
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 March 1,
2023, BOX Exchange LLC (‘‘BOX’’ or
‘‘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 BOX. 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
BOX Rule 7110 (Order Entry) and Rule
7130 (Execution and Price/Time
Priority) to codify in the BOX Rulebook
when the identity of Options
Participants is available. 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://rules.
boxexchange.com/rulefilings.
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
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00072
Fmt 4703
Sfmt 4703
16465
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 7110 (Order Entry) and Rule 7130
(Execution and Price/Time Priority) to
codify in the BOX Rulebook when the
identity of Options Participants is
available. Specifically, the Exchange is
proposing to codify in the BOX
Rulebook that the contra party Options
Participants identification number
(‘‘Participant ID’’) is available to all
Participants in their post trade
execution reports. The Exchange notes
that other exchanges also provide such
contra party information.3
Current Rule 7110(f) provides that the
identity of Options Participants who
submit orders to the Trading Host will
remain anonymous to market
participants at all times, except orders
submitted through the Directed Order
process, certain exposed orders as set
forth in 7130(b)(3)(iii), during error
resolution or through the normal
clearing process as set forth in Rule
7130. The Exchange proposes to amend
Rule 7110 to codify that the contra party
Options Participant ID is provided on
the execution reports that are sent to
each Participant that is party to a trade.
Specifically, the Exchange is proposing
to amend the language within 7110(f) to
provide that after execution, the identity
of Options Participants is available
during error resolution, through the
normal clearing process as set forth in
Rule 7130, and on the execution reports
sent to each Participant that is party to
a trade. As part of the proposed change,
3 Cboe Exchange, Inc. (‘‘Cboe Options’’) Rule 6.2,
Cboe BZX Exchange, Inc. (‘‘BZX Options’’) Rule
21.10, Cboe C2 Exchange, Inc. (‘‘C2 Options’’) Rule
6.2, and Cboe EDGX Exchange, Inc. (‘‘EDGX
Options’’) Rule 21.10 provide for the inclusion of
the contra party executing firm ID within
transaction reports. The NYSE Pillar Gateway FIX
Protocol Specification details the provision of
contra party Firm Identifier information. See NYSE
Pillar Gateway FIX Protocol Specification, available
at: https://www.nyse.com/publicdocs/nyse/NYSE_
Pillar_Options_Gateway_FIX_Protocol_
Specification.pdf. It is also the Exchange’s
understanding from discussions with market
participants that additional exchanges provide
similar post-trade information.
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16466
Federal Register / Vol. 88, No. 52 / Friday, March 17, 2023 / Notices
lotter on DSK11XQN23PROD with NOTICES1
the Exchange is reorganizing Rule
7110(f) so that the situations when
Participant information is available post
execution are grouped together, which
are the situations stated above.
The Exchange is also proposing to add
language within Rule 7130 to cite back
to the proposed exemption within Rule
7110(f) to make it clear that, for each
trade, contra party details will be made
available after the trade is executed to
Options Participants that were party to
the trade through the normal clearing
process and as otherwise provided
within Rule 7110(f).
The Exchange currently sends out
execution reports containing contra
party information, and the Exchange
believes codifying this information in
the Rules will provide more
transparency to market participants
regarding these execution reports. The
proposed rule change is consistent with
current Exchange and options industry
practices including the fact that clearing
information available through The
Options Clearing Corporation (‘‘OCC’’)
provides contra party information. As
indicated above, the Exchange believes
that the proposed rule change is
consistent with current rules and
practices in place at other options
exchanges.4
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’’),5 in general, and Section 6(b)(5)
of the Act,6 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 currently sends out post trade
execution reports containing contra
party information, and the Exchange
believes that codifying this information
in the Rules will provide more
transparency to market participants
regarding these execution reports which
will remove impediments to and perfect
the mechanism of a free and open
market and a national market system.
The Exchange believes the proposal
will serve to promote just and equitable
principles of trade, remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general protect investors and the public
interest because it will benefit investors
by providing more transparency on
when the identity of Options
Participants is available and clarifying
what is provided within these execution
reports. The Exchange currently
provides such contra party Options
Participant IDs within execution reports
and believes that aligning its rules with
current practices will benefit investors
by providing more transparency to
market participants regarding what is
provided within these execution
reports.
Based on the foregoing, the Exchange
believes the proposed changes to Rule
7110 and Rule 7130 are consistent with
Section 6(b)(5) of the Act 7 in particular,
in that they are designed to foster
cooperation and coordination with
persons engaged in clearing, settling,
processing information with respect to,
and facilitating transactions in
securities. In summary, the proposal
will help protect free and open market
by codifying in the BOX Rulebook that
the contra party Options Participant ID
is available to all Participants in their
post trade execution reports. The
Exchange notes that this contra party
information is also available on other
options exchanges.8 Additionally, the
proposal would not permit unfair
discrimination because the contra party
Options Participant ID is already
available to all Participants in their post
trade execution reports and the
Exchange is merely proposing to codify
this into the BOX Rulebook.
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
substantially similar to the rules and
practices of other options exchanges.9
The proposed rule change is intended
to codify in the BOX Rulebook that the
contra party Options Participant ID is
available to all Participants in their post
trade execution. The Exchange began
providing this contra party information
for Participants within execution reports
in response to Participant interest and
requests for such information. The
Exchange does not believe that the
4 Id.
7 15
5 15
8 See
U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
17:04 Mar 16, 2023
U.S.C. 78f(b)(5).
supra, note 3.
9 Id.
Jkt 259001
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
proposed rule change will impose any
burden on intermarket competition, as
the rule change is only intended to
codify in the BOX Rulebook that the
contra party Options Participant ID is
available to all Participants in their post
trade execution reports. The Exchange
believes that this proposal is consistent
with the rules and practices in place at
other options exchanges.10
Additionally, the clearing information
available through the OCC provides
contra party information.
The Exchange does not believe that
the proposed rule change will impose
any burden on intramarket competition,
as the rule change seeks to codify in the
BOX Rulebook that contra party
information is included within
execution reports, which are provided
to all Participants.
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 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 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)(iii) of the Act 11 and
subparagraph (f)(6) of Rule 19b–4
thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of filing. Rule 19b–4(f)(6)(iii),
however, permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. BOX
requested that the Commission waive
the operative delay to permit BOX to
codify within its Rulebook the inclusion
of contra party information in execution
reports, which BOX represents is
consistent with current Exchange and
option industry practices. The
10 Id.
11 15
U.S.C. 78s(b)(3)(A)(iii).
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.
12 17
E:\FR\FM\17MRN1.SGM
17MRN1
Federal Register / Vol. 88, No. 52 / Friday, March 17, 2023 / Notices
Commission believes that waiver of the
operative delay is consistent with the
protection of investors and the public
interest as the proposed rule change
does not raise new or novel issues.
Accordingly, the Commission hereby
waives the operative delay and
designates the proposal operative upon
filing.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: (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.
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–2023–08 on the subject line.
lotter on DSK11XQN23PROD with NOTICES1
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–2023–08. 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
13 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
VerDate Sep<11>2014
17:04 Mar 16, 2023
Jkt 259001
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–BOX–2023–08, and should
be submitted on or before April 7, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–05446 Filed 3–16–23; 8:45 am]
BILLING CODE 8011–01–P
16467
on the Exchange’s website at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
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
SECURITIES AND EXCHANGE
COMMISSION
1. Purpose
[Release No. 34–97125; File No. SR–
NYSEAMER–2023–17]
The Exchange plans to transition its
options trading platform to its Pillar
technology platform. The Exchange’s
affiliated options exchange, NYSE Arca,
Inc. (‘‘NYSE Arca’’ or ‘‘Arca Options’’)
is currently operating on Pillar, as are
the Exchange’s national securities
exchange affiliates’ cash equity
markets.3 For this transition, the
Exchange proposes to use the same
Pillar technology already in operation
on Arca Options.4 In doing so, the
Exchange will be able to offer not only
common specifications for connecting to
both of its options markets, but also
common trading functions. The
Exchange plans to roll out the new
technology platform over a period of
time based on a range of symbols
beginning on October 23, 2023.5
In this regard, the Exchange recently
filed a proposal to add new rules to
reflect the priority and allocation of
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing of
Proposed New Rule 980NYP and
Conforming Amendments to Rule
935NY
March 13, 2023.
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 February
28, 2023, NYSE American LLC (‘‘NYSE
American’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The 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 Substance of
the Proposed Rule Change
The Exchange proposes new Rule
980NYP (Electronic Complex Order
Trading) to reflect the implementation
of the Exchange’s Pillar trading
technology on its options market and to
make conforming amendments to Rule
935NY (Order Exposure Requirements).
The proposed rule change is available
14 17
CFR 200.30–3(a)(12), (59).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
Background
3 The Exchange’s national securities exchange
affiliates’ cash equity markets include: the New
York Stock Exchange LLC, NYSE Arca, Inc., NYSE
National, Inc., and NYSE Chicago, Inc. (collectively,
the ‘‘NYSE Equities Exchanges’’).
4 See Arca Options Rule 6.91P–O. See also
Securities Exchange Act Release No. 92563 (August
4, 2021), 86 FR 43704 (August 10, 2021) (Notice of
Filing of Amendment Nos. 1 and 2 and Order
Granting Accelerated Approval of a Proposed Rule
Change, as Modified by Amendment Nos. 1 and 2,
to Adopt New Exchange Rule 980NYP, regarding
complex order trading on Pillar) (‘‘Arca Options
Approval Order’’).
5 See Trader Update, January 30, 2023
(announcing Pillar Migration Launch date of
October 23, 2023 for the Exchange), available here,
https://www.nyse.com/trader-update/
history#110000530919.
E:\FR\FM\17MRN1.SGM
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]]>Agencies
[Federal Register Volume 88, Number 52 (Friday, March 17, 2023)]
[Notices]
[Pages 16465-16467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-05446]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97127; File No. SR-BOX-2023-08]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 7110
(Order Entry) and Rule 7130 (Execution and Price/Time Priority)
Regarding Availability of Identity of Options Participants
March 13, 2023.
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 March 1, 2023, BOX Exchange LLC (``BOX'' or ``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 BOX. 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 BOX Rule 7110 (Order Entry) and Rule
7130 (Execution and Price/Time Priority) to codify in the BOX Rulebook
when the identity of Options Participants is available. 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://rules.boxexchange.com/rulefilings.
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 7110 (Order Entry) and Rule
7130 (Execution and Price/Time Priority) to codify in the BOX Rulebook
when the identity of Options Participants is available. Specifically,
the Exchange is proposing to codify in the BOX Rulebook that the contra
party Options Participants identification number (``Participant ID'')
is available to all Participants in their post trade execution reports.
The Exchange notes that other exchanges also provide such contra party
information.\3\
---------------------------------------------------------------------------
\3\ Cboe Exchange, Inc. (``Cboe Options'') Rule 6.2, Cboe BZX
Exchange, Inc. (``BZX Options'') Rule 21.10, Cboe C2 Exchange, Inc.
(``C2 Options'') Rule 6.2, and Cboe EDGX Exchange, Inc. (``EDGX
Options'') Rule 21.10 provide for the inclusion of the contra party
executing firm ID within transaction reports. The NYSE Pillar
Gateway FIX Protocol Specification details the provision of contra
party Firm Identifier information. See NYSE Pillar Gateway FIX
Protocol Specification, available at: https://www.nyse.com/publicdocs/nyse/NYSE_Pillar_Options_Gateway_FIX_Protocol_Specification.pdf. It is
also the Exchange's understanding from discussions with market
participants that additional exchanges provide similar post-trade
information.
---------------------------------------------------------------------------
Current Rule 7110(f) provides that the identity of Options
Participants who submit orders to the Trading Host will remain
anonymous to market participants at all times, except orders submitted
through the Directed Order process, certain exposed orders as set forth
in 7130(b)(3)(iii), during error resolution or through the normal
clearing process as set forth in Rule 7130. The Exchange proposes to
amend Rule 7110 to codify that the contra party Options Participant ID
is provided on the execution reports that are sent to each Participant
that is party to a trade. Specifically, the Exchange is proposing to
amend the language within 7110(f) to provide that after execution, the
identity of Options Participants is available during error resolution,
through the normal clearing process as set forth in Rule 7130, and on
the execution reports sent to each Participant that is party to a
trade. As part of the proposed change,
[[Page 16466]]
the Exchange is reorganizing Rule 7110(f) so that the situations when
Participant information is available post execution are grouped
together, which are the situations stated above.
The Exchange is also proposing to add language within Rule 7130 to
cite back to the proposed exemption within Rule 7110(f) to make it
clear that, for each trade, contra party details will be made available
after the trade is executed to Options Participants that were party to
the trade through the normal clearing process and as otherwise provided
within Rule 7110(f).
The Exchange currently sends out execution reports containing
contra party information, and the Exchange believes codifying this
information in the Rules will provide more transparency to market
participants regarding these execution reports. The proposed rule
change is consistent with current Exchange and options industry
practices including the fact that clearing information available
through The Options Clearing Corporation (``OCC'') provides contra
party information. As indicated above, the Exchange believes that the
proposed rule change is consistent with current rules and practices in
place at other options exchanges.\4\
---------------------------------------------------------------------------
\4\ Id.
---------------------------------------------------------------------------
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''),\5\ in general, and Section 6(b)(5) of the Act,\6\ 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 currently sends out post
trade execution reports containing contra party information, and the
Exchange believes that codifying this information in the Rules will
provide more transparency to market participants regarding these
execution reports which will remove impediments to and perfect the
mechanism of a free and open market and a national market system.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes the proposal will serve to promote just and
equitable principles of trade, remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general protect investors and the public interest because it will
benefit investors by providing more transparency on when the identity
of Options Participants is available and clarifying what is provided
within these execution reports. The Exchange currently provides such
contra party Options Participant IDs within execution reports and
believes that aligning its rules with current practices will benefit
investors by providing more transparency to market participants
regarding what is provided within these execution reports.
Based on the foregoing, the Exchange believes the proposed changes
to Rule 7110 and Rule 7130 are consistent with Section 6(b)(5) of the
Act \7\ in particular, in that they are designed to foster cooperation
and coordination with persons engaged in clearing, settling, processing
information with respect to, and facilitating transactions in
securities. In summary, the proposal will help protect free and open
market by codifying in the BOX Rulebook that the contra party Options
Participant ID is available to all Participants in their post trade
execution reports. The Exchange notes that this contra party
information is also available on other options exchanges.\8\
Additionally, the proposal would not permit unfair discrimination
because the contra party Options Participant ID is already available to
all Participants in their post trade execution reports and the Exchange
is merely proposing to codify this into the BOX Rulebook.
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\7\ 15 U.S.C. 78f(b)(5).
\8\ See supra, note 3.
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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
substantially similar to the rules and practices of other options
exchanges.\9\
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\9\ Id.
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The proposed rule change is intended to codify in the BOX Rulebook
that the contra party Options Participant ID is available to all
Participants in their post trade execution. The Exchange began
providing this contra party information for Participants within
execution reports in response to Participant interest and requests for
such information. The Exchange does not believe that the proposed rule
change will impose any burden on intermarket competition, as the rule
change is only intended to codify in the BOX Rulebook that the contra
party Options Participant ID is available to all Participants in their
post trade execution reports. The Exchange believes that this proposal
is consistent with the rules and practices in place at other options
exchanges.\10\ Additionally, the clearing information available through
the OCC provides contra party information.
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\10\ Id.
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The Exchange does not believe that the proposed rule change will
impose any burden on intramarket competition, as the rule change seeks
to codify in the BOX Rulebook that contra party information is included
within execution reports, which are provided to all Participants.
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 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 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)(iii) of the Act \11\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 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) normally does
not become operative prior to 30 days after the date of filing. Rule
19b-4(f)(6)(iii), however, permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest. BOX requested that the Commission
waive the operative delay to permit BOX to codify within its Rulebook
the inclusion of contra party information in execution reports, which
BOX represents is consistent with current Exchange and option industry
practices. The
[[Page 16467]]
Commission believes that waiver of the operative delay is consistent
with the protection of investors and the public interest as the
proposed rule change does not raise new or novel issues. Accordingly,
the Commission hereby waives the operative delay and designates the
proposal operative upon filing.\13\
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\13\ For purposes only of waiving the 30-day operative delay,
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: (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.
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-2023-08 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-2023-08. 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-BOX-2023-08, and should be submitted on
or before April 7, 2023.
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), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-05446 Filed 3-16-23; 8:45 am]
BILLING CODE 8011-01-P
