Notice2022-25666
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend IM-5050-6 (Short Term Option Series Program)
Primary source
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Published
November 25, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 226 (Friday, November 25, 2022)</title>
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[Federal Register Volume 87, Number 226 (Friday, November 25, 2022)]
[Notices]
[Pages 72572-72577]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-25666]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96355; File No. SR-BOX-2022-29]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend IM-5050-
6 (Short Term Option Series Program)
November 18, 2022.
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 November 16, 2022, BOX Exchange LLC (the ``Exchange'') filed
with the Securities and Exchange Commission (the ``Commission'') the
proposed rule change as described in Items I and II 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend IM-5050-6 (Short Term Option Series
Program). 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="https://rules.boxexchange.com/rulefilings">https://rules.boxexchange.com/rulefilings</a>.
[[Page 72573]]
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 IM-5050-6 (Short Term Option Series
Program). Specifically, the Exchange proposes to amend the Short Term
Option Series Rules to: (1) limit the number of Short Term Option
Expiration Dates for options on SPDR S&P 500 ETF Trust (SPY), the
INVESCO QQQ Trust SM, Series 1 (QQQ), and iShares Russell 2000 ETF
(IWM) from five to two expirations for Monday and Wednesday
expirations; and (2) expand the Short Term Option Series program to
permit the listing and trading of options series with Tuesday and
Thursday expirations for options on SPY and QQQ listed pursuant to the
Short Term Option Series Program, subject to the same proposed
limitation of two expirations. The Exchange also proposes to amend Rule
100(a)(66) which defines a Short Term Option Series. This is a
competitive filing that is based on a proposal recently submitted by
Nasdaq ISE, LLC (``Nasdaq ISE'') and approved by the Commission.\3\
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\3\ See Securities Exchange Act Release No. 96281 (November 9,
2022) (Order Approving SR-ISE-2022-18).
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Curtail Short Term Option Expiration Dates
Currently, after an option class has been approved for listing and
trading on the Exchange, the Exchange may open for trading on any
Thursday or Friday that is a business day (``Short Term Option Opening
Date'') series of options on that class that expire at the close of
business on each of the next five Fridays that are business days and
are not Fridays in which monthly options series or Quarterly Options
Series expire (``Short Term Option Expiration Dates''). The Exchange
may have no more than a total of five Short Term Option Expiration
Dates not including any Monday or Wednesday SPY, QQQ, and IWM
Expirations. Further, if the Exchange is not open for business on the
respective Thursday or Friday, the Short Term Option Opening Date will
be the first business day immediately prior to that respective Thursday
or Friday. Similarly, if the Exchange is not open for business on a
Friday, the Short Term Option Expiration Date will be the first
business day immediately prior to that Friday.
Today, with respect to Wednesday SPY, QQQ, and IWM Expirations, the
Exchange may open for trading on any Tuesday or Wednesday that is a
business day series of options on SPY, QQQ, and IWM to expire on any
Wednesday of the month that is a business day and is not a Wednesday in
which Quarterly Options Series expire (``Wednesday SPY Expirations,''
``Wednesday QQQ Expirations,'' and ``Wednesday IWM Expirations''). With
respect to Monday SPY, QQQ, and IWM Expirations, the Exchange may open
for trading on any Friday or Monday that is a business day series of
options on the SPY, QQQ, or IWM to expire on any Monday of the month
that is a business day and is not a Monday in which Quarterly Options
Series expire (``Monday SPY Expirations,'' ``Monday QQQ Expirations,''
and ``Monday IWM Expirations''), provided that Monday SPY Expirations,
Monday QQQ Expirations, and Monday IWM Expirations that are listed on a
Friday must be listed at least one business week and one business day
prior to the expiration. The Exchange may list up to five consecutive
Wednesday SPY Expirations, Wednesday QQQ Expirations, and Wednesday IWM
Expirations and five consecutive Monday SPY Expirations, Monday QQQ
Expirations, and Monday IWM Expirations at one time; the Exchange may
have no more than a total of five each of Wednesday SPY Expirations,
Wednesday QQQ Expirations, and Wednesday IWM Expirations and a total of
five each of Monday SPY Expirations, Monday QQQ Expirations, and Monday
IWM Expirations. Monday and Wednesday SPY Expirations, Monday and
Wednesday QQQ Expirations, and Monday and Wednesday IWM Expirations
will be subject to the provisions of IM-5050-6.
Proposal
At this time, the Exchange proposes to curtail the number of Short
Term Option Expiration Dates from five to two \4\ for SPY, QQQ and IWM
for Monday and Wednesday Expirations, as well as the proposed Tuesday
and Thursday Expirations in SPY and QQQ (``Short Term Option Daily
Expirations'').
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\4\ The Exchange proposes to list the two front months for Short
Term Option Daily Expirations.
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The Exchange proposes to create a new category of Short Term Option
Expirations Dates called ``Short Term Option Daily Expirations'' which
will only permit two Short Term Option Expiration Dates for each of
Monday, Tuesday, Wednesday, and Thursday expirations at one time. The
Exchange proposes to include a table, labelled ``Table 1'', within IM-
5050-6(a) which specifies each symbol that qualifies as a Short Term
Option Daily Expiration. The table would note the number of expirations
for each symbol as well as expiration days. The Exchange proposes to
include Monday and Wednesday expirations for SPY, QQQ, and IWM and
Tuesday and Thursday expirations for SPY and QQQ and list the number of
expirations as ``2'' for these symbols. The Exchange's proposal to
permit Tuesday and Thursday expirations for options on SPY and QQQ
listed pursuant to the Short Term Option Series Program is explained
below in more detail. In the event Short Term Option Daily Expirations
expire on the same day in the same class as a monthly options series or
a Quarterly Options Series, the Exchange would skip that week's listing
and instead list the following week; the two weeks of Short Term Option
Expiration Dates would therefore not be consecutive. Specifically, the
Exchange proposes to state within IM-5050-6(a),
In addition to the above, BOX may open for trading series of
options on the symbols provided in Table 1 below that expire at the
close of business on each of the next two Mondays, Tuesdays,
Wednesdays, and Thursdays, respectively, that are business days and
are not business days in which monthly options series or Quarterly
Options Series expire (``Short Term Option Daily Expirations''). BOX
may have no more than a total of two Short Term Option Daily
Expirations for each of Monday, Tuesday, Wednesday, and Thursday
expirations at one time. Short Term Option Daily Expirations would
be subject to IM-5050-6.
SPY, QQQ, and IWM Friday expirations and other option symbols expiring
on a Friday that are not noted in Table 1 will continue to have a total
of five Short Term Option Expiration Dates provided those Friday
expirations are not Fridays in which monthly options series or
Quarterly Options Series expire (``Friday Short Term Option Expiration
Dates''). These expirations would be
[[Page 72574]]
referred to as ``Short Term Option Weekly Expirations'' to distinguish
them from the proposed expirations that would be subject to Short Term
Option Daily Expirations. The Exchange proposes to add rule text to IM-
5050-6(a) which states that Monday Short Term Option Expiration Dates,
Tuesday Short Term Option Expiration Dates, Wednesday Short Term Option
Expiration Dates, and Thursday Short Term Option Expiration Dates,
together with Friday Short Term Option Expiration Dates, are
collectively ``Short Term Option Expiration Dates''.\5\
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\5\ Defining the term ``Short Term Option Expiration Dates''
will make clear that this term includes expiration dates for each
day Short Term Options are listed.
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Tuesday and Thursday Expirations
At this time, the Exchange proposes to expand the Short Term Option
Series Program to permit the listing and trading of no more than a
total of two consecutive Tuesday and Thursday ``Tuesday Short Term
Option Daily Expirations'' and ``Thursday Short Term Option Daily
Expirations'' each for SPY and QQQ at one time. Tuesday and Thursday
Short Term Option Daily Expirations would be subject to IM-5050-6.
A Short Term Option Series means a series in an option class that
is approved for listing and trading on the Exchange in which the series
is opened for trading on any Monday, Tuesday, Wednesday, Thursday or
Friday that is a business day and that expires on the Monday, Wednesday
or Friday of the following business week that is a business day, or, in
the case of a series that is listed on a Friday and expires on a
Monday, is listed one business week and one business day prior to that
expiration. If a Tuesday, Wednesday, Thursday or Friday is not a
business day, the series may be opened (or shall expire) on the first
business day immediately prior to that Tuesday, Wednesday, Thursday or
Friday. For a series listed pursuant to this section for Monday
expiration, if a Monday is not a business day, the series shall expire
on the first business day immediately following that Monday.
The Exchange proposes to amend the definition at Rule 100(a)(66) to
accommodate the listing of options series that expire on Tuesdays and
Thursdays. Specifically, the Exchange proposes to add Tuesday and
Thursdays to the permitted expiration days, which currently include
Monday, Wednesday, and Friday, that it may open for trading.
The Exchange also proposes corresponding changes within IM-5050-6,
which sets forth the requirements for SPY and QQQ options that are
listed pursuant to the Short Term Option Series Program as Short Term
Option Daily Expirations. Similar to Monday and Wednesday SPY, QQQ, and
IWM Short Term Option Daily Expirations within IM-5050-6, the Exchange
proposes that it may open for trading on any Monday or Tuesday that is
a business day series of options on the symbols provided in Table 1
that expire at the close of business on each of the next two Tuesdays
that are business days and are not business days in which monthly
options series or Quarterly Options Series expire (``Tuesday Short Term
Option Expiration Date'').
Likewise, the Exchange proposes that it may open for trading on any
Wednesday or Thursday that is a business day series of options on
symbols provided in Table 1 that expire at the close of business on
each of the next two Thursdays that are business days and are not
business days in which monthly options series or Quarterly Options
Series expire (``Thursday Short Term Option Expiration Date'').
In the event that options on SPY and QQQ expire on a Tuesday or
Thursday and that Tuesday or Thursday is the same day that a monthly
option series or Quarterly Options Series expires, the Exchange would
skip that week's listing and instead list the following week; the two
weeks would therefore not be consecutive. Today, Monday and Wednesday
Expirations in SPY, QQQ, and IWM skip the weekly listing in the event
the weekly listing expires on the same day in the same class as a
Quarterly Options Series. Currently, there is no rule text provision
that states that Monday and Wednesday Expirations in SPY, QQQ, and IWM
skip the weekly listing in the event the weekly listing expires on the
same day in the same class as a monthly option series. Practically
speaking, Monday and Wednesday Expirations in SPY, QQQ, and IWM would
not expire on the same day as a monthly expiration.
The interval between strike prices for the proposed Tuesday and
Thursday SPY and QQQ Short Term Option Daily Expirations will be the
same as those for the current Short Term Option Series for Monday,
Wednesday and Friday expirations applicable to the Short Term Option
Series Program.\6\ Specifically, the Tuesday and Thursday SPY and QQQ
Short Term Option Daily Expirations will have a $0.50 strike interval
minimum.\7\ As is the case with other equity options series listed
pursuant to the Short Term Option Series Program, the Tuesday and
Thursday SPY and QQQ Short Term Option Daily Expiration series will be
P.M.-settled.
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\6\ See IM-5050-6(b)(5).
\7\ Id.
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Pursuant to Rule 100(a)(66), with respect to the Short Term Option
Series Program, a Tuesday or Thursday expiration series shall expire on
the first business day immediately prior to that Tuesday or Thursday,
e.g., Monday or Wednesday of that week, respectively, if the Tuesday or
Thursday is not a business day.
Currently, for each option class eligible for participation in the
Short Term Option Series Program, the Exchange is limited to opening
thirty (30) series for each expiration date for the specific class.\8\
The thirty (30) series restriction does not include series that are
open by other securities exchanges under their respective weekly rules;
the Exchange may list these additional series that are listed by other
options exchanges.\9\ This thirty (30) series restriction would apply
to Tuesday and Thursday SPY and QQQ Short Term Option Daily Expiration
series as well. In addition, the Exchange will be able to list series
that are listed by other exchanges, assuming they file similar rules
with the Commission to list SPY and QQQ options expiring on Tuesdays
and Thursdays with a limit of two Tuesday Short Term Daily Expirations
and two Thursday Short Term Daily Expirations.
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\8\ See IM-5050-6(b)(1).
\9\ Id.
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Finally, the Exchange is amending IM-5050-6(b)(2), to conform the
rule text to the usage of the term ``Short Term Option Daily
Expirations.'' Today, with the exception of Monday and Wednesday SPY
Expirations, Monday and Wednesday QQQ Expirations, and Monday and
Wednesday IWM Expirations, no Short Term Option Series may expire in
the same week in which monthly option series on the same class expire.
With this proposal, Tuesday and Thursday SPY Expirations and Tuesday
and Thursday QQQ Expirations would be treated similarly to existing
Monday and Wednesday SPY, QQQ, and IWM Expirations. With respect to
monthly option series, Short Term Option Daily Expirations will be
permitted to expire in the same week in which monthly option series on
the same class expire. Not listing Short Term Option Daily Expirations
for one week every month because there was a monthly on that same class
on the Friday of that week would create investor confusion.
[[Page 72575]]
Further, as with Monday and Wednesday SPY, QQQ, and IWM
Expirations, the Exchange would not permit Tuesday and Thursday Short
Term Option Daily Expirations to expire on a business day in which
monthly options series or Quarterly Options Series expire.\10\
Therefore, all Short Term Option Daily Expirations would expire at the
close of business on each of the next two Mondays, Tuesdays,
Wednesdays, and Thursdays, respectively, that are business days and are
not business days in which monthly options series or Quarterly Options
Series expire. The Exchange believes that it is reasonable to not
permit two expirations on the same day in which a monthly options
series or a Quarterly Options Series would expire.
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\10\ While the Exchange proposes to add rule text within IM-
5050-6 with respect to Monday Expirations, Tuesday Expirations, and
Wednesdays Expirations stating that those expirations would not
expire on business days that are business days in which monthly
options series expire, practically speaking this would not occur.
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The Exchange does not believe that any market disruptions will be
encountered with the introduction of P.M.-settled Tuesday and Thursday
Short Term Option Daily Expirations. The Exchange has the necessary
capacity and surveillance programs in place to support and properly
monitor trading in the proposed Tuesday and Thursday Short Term Option
Daily Expirations. The Exchange currently trades P.M.-settled Short
Term Option Series that expire Monday and Wednesday for SPY, QQQ and
IWM and has not experienced any market disruptions nor issues with
capacity. Today, the Exchange has surveillance programs in place to
support and properly monitor trading in Short Term Option Series that
expire Monday and Wednesday for SPY, QQQ and IWM. The Exchange notes
that Monday and Wednesday Expirations in SPY, QQQ, and IWM that were
listed prior to the proposed changes discussed herein will continue to
be listed on the Exchange until those options expire pursuant to the
current Short Term Option Series rules.
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''),\11\ in general, and section 6(b)(5) of the Act,\12\ 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.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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The proposal is consistent with the Act as the overall reduction
offered by this proposal reduces the number of Short Term Option
Expirations to be listed on the Exchange. This reduction would remove
impediments to and perfect the mechanism of a free and open market by
encouraging Market Makers to continue to deploy capital more
efficiently and improve market quality. Also, the Exchange's proposal
curtails the number of Monday, Tuesday, Wednesday, and Thursday
expirations in SPY, QQQ, and IWM without reducing the classes of
options available for trading on the Exchange. The Exchange believes
that despite the proposed curtailment of expirations, Participants will
continue to be able to expand hedging tools and tailor their investment
and hedging needs more effectively in SPY, QQQ, and IWM.
Similar to SPY, QQQ and IWM Monday and Wednesday Expirations
(proposed to be SPY, QQQ and IWM Monday and Wednesday Short Term Daily
Expirations), the introduction of SPY and QQQ Tuesday and Thursday
Short Term Daily Expirations is consistent with the Act as it will,
among other things, expand hedging tools available to market
participants and continue the reduction of the premium cost of buying
protection. The Exchange believes that SPY and QQQ Tuesday and Thursday
expirations (renamed SPY and QQQ Tuesday and Thursday Short Term Daily
Expirations) will allow market participants to purchase SPY and QQQ
options based on their timing as needed and allow them to tailor their
investment and hedging needs more effectively. Further, the proposal to
permit Tuesday and Thursday Short Term Daily Expirations for options on
SPY and QQQ listed pursuant to the Short Term Option Series Program,
subject to the proposed limitation of two expirations, would protect
investors and the public interest by providing the investing public and
other market participants more flexibility to closely tailor their
investment and hedging decisions in SPY and QQQ options, thus allowing
them to better manage their risk exposure.
In particular, the Exchange believes the Short Term Option Series
Program has been successful to date and that Tuesday and Thursday SPY
and QQQ Short Term Daily Expirations should simply expand the ability
of investors to hedge risk against market movements stemming from
economic releases or market events that occur throughout the month in
the same way that the Short Term Option Series Program has expanded the
landscape of hedging. Similarly, the Exchange believes Tuesday and
Thursday SPY and QQQ Short Term Daily Expirations should create greater
trading and hedging opportunities and flexibility, and will provide
customers with the ability to tailor their investment objectives more
effectively. The Exchange currently lists Monday and Wednesday SPY,
QQQ, and IWM Expirations (renamed SPY, QQQ, and IWM Monday and
Wednesday Short Term Daily Expirations).
Today, with the exception of Monday and Wednesday SPY Expirations,
Monday and Wednesday QQQ Expirations, and Monday and Wednesday IWM
Expirations, no Short Term Option Series may expire in the same week in
which monthly option series on the same class expire. With this
proposal, Tuesday and Thursday SPY Expirations and Tuesday and Thursday
QQQ Expirations would be treated similarly to existing Monday and
Wednesday SPY, QQQ, and IWM Expirations. The Exchange believes that
permitting Short Term Option Daily Expirations to expire in the same
week that standard monthly options expire on Fridays is consistent with
Act. Not listing Short Term Option Daily Expirations for one week every
month because there was a monthly on that same class on the Friday of
that week would create investor confusion.
Further, as with Monday and Wednesday SPY, QQQ, and IWM
Expirations, the Exchange would not permit Tuesday and Thursday Short
Term Option Daily Expirations to expire on a business day in which
monthly options series or Quarterly Options Series expire. Therefore,
all Short Term Option Daily Expirations would expire at the close of
business on each of the next two Mondays, Tuesdays, Wednesdays, and
Thursdays, respectively, that are business days and are not business
days in which monthly options series or Quarterly Options Series
expire. The Exchange believes that it is consistent with the Act to not
permit two expirations on the same day in which a monthly options
series or a Quarterly Options Series would expire similar to Monday and
Wednesday SPY, QQQ, and IWM Expirations.
There are no material differences in the treatment of Wednesday SPY
and QQQ expirations for Short Term Option Series as compared to the
proposed
[[Page 72576]]
Tuesday and Thursday SPY and QQQ Short Term Daily Expirations. Given
the similarities between Wednesday SPY, QQQ and IWM Expirations and the
proposed Tuesday and Thursday SPY and QQQ Short Term Daily Expirations,
the Exchange believes that applying the provisions in IM-5050-6 that
currently apply to Wednesday SPY, QQQ and IWM Expirations to Tuesday
and Thursday SPY and QQQ Short Term Daily Expirations is justified.
Finally, the Exchange represents that it has an adequate
surveillance program in place to detect manipulative trading in the
proposed Tuesday and Thursday SPY and QQQ Short Term Daily Expirations,
in the same way that it monitors trading in the current Short Term
Option Series and trading in Monday and Wednesday SPY, QQQ, and IWM
Expirations. The Exchange also represents that it has the necessary
systems capacity to support the new options series. Finally, the
Exchange does not believe that any market disruptions will be
encountered with the introduction of Tuesday and Thursday SPY and QQQ
Short Term Daily Expirations.
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 rule change is being proposed as a
response to a filing submitted by Nasdaq ISE that was recently approved
by the Commission.\13\
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\13\ See supra, note 3.
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Further, the Exchange believes the proposal will provide an overall
reduction in the number of Short Term Option Expirations to be listed
on the Exchange. The Exchange believes this reduction will not impose
an undue burden on competition, rather, it should encourage Market
Makers to continue to deploy capital more efficiently and improve
market quality. Also, the Exchange's proposal curtails the number of
weekly expirations in SPY, QQQ, and IWM without reducing the classes of
options available for trading on the Exchange. The Exchange believes
that despite the proposed curtailment of weekly expirations,
Participants will continue to be able to expand hedging tools and
tailor their investment and hedging needs more effectively in SPY, QQQ,
and IWM.
Similar to SPY, QQQ and IWM Monday and Wednesday Expirations, the
introduction of SPY and QQQ Tuesday and Thursday Short Term Daily
Expirations does not impose an undue burden on competition. The
Exchange believes that it will, among other things, expand hedging
tools available to market participants and continue the reduction of
the premium cost of buying protection. The Exchange believes that SPY
and QQQ Tuesday and Thursday Short Term Daily Expirations will allow
market participants to purchase SPY and QQQ options based on their
timing as needed and allow them to tailor their investment and hedging
needs more effectively.
The Exchange does not believe the proposal will impose any burden
on inter- market competition, as nothing prevents the other options
exchanges from proposing similar rules to list and trade Short-Term
Option Series with Tuesday and Thursday Short Term Daily Expirations.
The Exchange notes that having Tuesday and Thursday SPY and QQQ
expirations is not a novel proposal, as Wednesday SPY, QQQ and IWM
Expirations are currently listed on the Exchange.
Further, the Exchange does not believe the proposal will impose any
burden on intra-market competition, as all market participants will be
treated in the same manner under this proposal.
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)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
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 \16\ and subparagraph (f)(6) of
Rule 19b-4 thereunder.\17\
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\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 17 CFR 240.19b-4(f)(6).
\16\ 15 U.S.C. 78s(b)(3)(A)(iii).
\17\ 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.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \18\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \19\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing. The
Commission notes that it recently approved Nasdaq ISE's substantially
similar proposal.\20\ The Exchange has stated that waiver of the 30-day
operative delay will ensure fair competition among the exchanges and
align its rules with identical rules currently in place at another
exchange. For these reasons, the Commission believes that the proposed
rule change presents no novel issues and that waiver of the 30-day
operative delay is 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.\21\
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\18\ 17 CFR 240.19b-4(f)(6).
\19\ 17 CFR 240.19b-4(f)(6)(iii).
\20\ See Securities Exchange Act Release No. 96281 (November 9,
2022) (SR-ISE-2022-18).
\21\ For purposes only of waiving the 30-day operative delay,
the Commission has also 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:
[[Page 72577]]
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#fb898e979ed6989496969e958f88bb889e98d59c948d"><span class="__cf_email__" data-cfemail="b8cacdd4dd95dbd7d5d5ddd6cccbf8cbdddb96dfd7ce">[email protected]</span></a>. Please include
File Number SR-BOX-2022-29 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-2022-29. 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 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-2022-29 and should be submitted on
or before December 16, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12), (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-25666 Filed 11-23-22; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on November 25, 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.