Notice2022-09046
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Reorganize Various Fees Within the Exchange Fee Schedule
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 28, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 82 (Thursday, April 28, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Notices]
[Pages 25318-25320]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-09046]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94780; File No. SR-BOX-2022-14]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Reorganize
Various Fees Within the Exchange Fee Schedule
April 22, 2022.
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 April 8, 2022, 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 reorganize various fees within the
Exchange Fee Schedule. 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 <a href="http://boxoptions.com">http://boxoptions.com</a>.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in Sections A, B, and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to reorganize various
fees within the Exchange's Fee Schedule. The reorganized Exchange Fee
Schedule reflects the current fees, which remain unchanged.
The Exchange is proposing to organize the Exchange Fee Schedule by
grouping certain fees together. Specifically, the Exchange is proposing
that the fees that are not related to trading activity on a facility of
the Exchange would be grouped together in the first three sections of
the Exchange Fee Schedule.\3\ The first three sections of fees are not
transactional based fees applicable to a facility of the Exchange, BOX
Options Market, an options trading facility of the Exchange under
3(a)(2) of the Exchange Act.\4\ Following that, Sections IV-VII of the
Exchange Fee Schedule \5\ will include fees that are specific to
activity on the BOX Options Market (``BOX''). The last section, Section
VIII,\6\ applies to billing generally, including aggregate billing and
billing disputes. BSTX fees will be filed as a separate rule filing
from this proposal.
---------------------------------------------------------------------------
\3\ See Section I (Participant Fees), Section II (Regulatory
Fees), and Section III (Technology Fees).
\4\ BOX is currently the only facility of the Exchange that is
actively trading. The rules for the Exchange's other proposed
facility, BSTX LLC, were recently approved by the SEC (See
Securities Exchange Act Release No. 94092 (January 27, 2022), 87 FR
5881 (February 2, 2022).
\5\ See Section IV (Electronic Transaction Fees), Section V
(Manual Transaction Fees), Section VI (Complex Order Transaction
Fees), and Section VII (Eligible Orders Routed to an Away Exchange).
\6\ See Section VIII (Exchange Billing).
---------------------------------------------------------------------------
The Exchange believes that this proposed reorganization of the
Exchange Fee Schedule provides a clearer structure. As part of the
reorganization, the Exchange is adding a section header with a
corresponding description,\7\ adding clarifying detail throughout the
Exchange Fee Schedule, and making conforming changes throughout to
reflect the renumbered sections. In addition, the Exchange is amending
Section VIII by replacing ``BOX'' with the ``Exchange'' where it
references the Fee Schedule to add clarity to the section. Further, the
Exchange is reordering the fees in the Regulatory Fee Section but not
proposing to amend or alter any of the fees in the Regulatory Fee
Section. The Exchange believes that these proposed changes make the
Exchange Fee Schedule easier to read and provides clarity to the end-
user on the fees of the Exchange.
---------------------------------------------------------------------------
\7\ See proposed new preamble to Sections IV-VII of the Exchange
Fee Schedule, and revised title for Section VIII.
---------------------------------------------------------------------------
The Exchange is proposing to clarify that the fees outlined in
Sections IV-VII are transactional based fees applicable to BOX Options
Market.\8\ To clarify the nature of these fees and avoid any potential
confusion, the Exchange is including a section header and description
for Sections IV-VII that explains the fees are directly related to the
BOX Options Market. The Exchange is also making conforming changes
throughout the Fee Schedule to reflect these changes. The Exchange
notes that these changes are purely clerical and do not amend any fee
or rebate in the Exchange Fee Schedule.
---------------------------------------------------------------------------
\8\ Section VII covers fees for orders routed to an away
exchange from BOX. Although these fees do not apply to transactions
that occur directly on BOX, they nonetheless are directly related to
options transactions. Therefore, the Exchange believes it is
appropriate to group them with the other transactional based fees
for BOX Options Market.
---------------------------------------------------------------------------
The Exchange is also proposing to move all the footnotes in the
Exchange Fee Schedule to endnotes. The Exchange believes this change
simplifies the Exchange Fee Schedule, makes it easier to read, and is
similar to how other exchanges organize their fee schedules.\9\ Lastly,
the Exchange is making non-substantive clean-up changes to add
precision to the rulebook
[[Page 25319]]
and facilitate better understanding of the Exchange's rulebook. The
Exchange believes that these changes will make the Exchange Fee
Schedule clearer and more consistent for the end user.
---------------------------------------------------------------------------
\9\ See Cboe Exchange, Inc. Fee Schedule.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\10\ in general, and Section
6(b)(5) of the Act,\11\ in particular, in that it is designed 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, to protect investors and the public
interest by reorganizing the Exchange Fee Schedule in such a way that
makes the fees easy to locate by grouping certain fees together. The
Exchange also believes that enhancing the section titles, by renaming
certain sections, adding section headers, and including clarifying
details, provides greater clarity to the Exchange Fee Schedule and
allows Participants to more readily locate and understand the
applicability of fees within the Exchange Fee Schedule and improves the
structure of the Fee Schedule. The Exchange believes that these
proposed changes, to make clarifying and non-substantive edits, will
provide greater clarity to Participants and the public regarding the
Exchange Fee Schedule and that it is in the public interest for the
Exchange Fee Schedule to be clear so as to eliminate the potential for
confusion. As such, the Exchange believes the proposed rule change is
in the public interest, and therefore, consistent with the Act.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purpose of the Act. The proposed rule
change is not a competitive filing but rather is designed to reorganize
the Exchange Fee Schedule. In addition, the Exchange does not believe
the proposal will impose any burden on inter-market or intra-market
competition as the proposal does not address any competitive issues and
does not change any fees currently in the Exchange Fee Schedule.
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) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and 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.
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\15\ 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 it can
immediately reflect the proposed organizational changes to its Fee
Schedule. The Commission is waiving the 30-day operative delay as the
proposal raises no new or novel issue and waiving the operative delay
is thereby consistent with the protection of investors and the public
interest. Accordingly, the Commission hereby waives the operative delay
and designates the proposed rule change operative upon filing.\16\
---------------------------------------------------------------------------
\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission also has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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 change 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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#156760797038767a7878707b6166556670763b727a63"><span class="__cf_email__" data-cfemail="7705021b125a14181a1a121903043704121459101801">[email protected]</span></a>. Please include
File Number SR-BOX-2022-14 on the subject line.
Paper Comments
<bullet> 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-2022-14. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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-2022-14 and should be submitted on
or before May 19, 2022.
[[Page 25320]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------
\17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-09046 Filed 4-27-22; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on April 28, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.