Notice2023-02950
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule on the BOX Options Market LLC Facility To Reflect Adjustments to FINRA Registration Fees and Fingerprinting Processing Fees
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
February 10, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 28 (Friday, February 10, 2023)</title>
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[Federal Register Volume 88, Number 28 (Friday, February 10, 2023)]
[Notices]
[Pages 8947-8949]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-02950]
[[Page 8947]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96830; File No. SR-BOX-2023-07]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee
Schedule on the BOX Options Market LLC Facility To Reflect Adjustments
to FINRA Registration Fees and Fingerprinting Processing Fees
February 7, 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 January 31, 2023, BOX Exchange LLC (``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared by the Exchange. The Exchange filed the proposed rule
change pursuant to section 19(b)(3)(A)(ii) of the Act,\3\ and Rule 19b-
4(f)(2) thereunder,\4\ which renders the proposal effective upon filing
with the Commission. The 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The Exchange is filing with the Securities and Exchange Commission
(``Commission'') a proposed rule change to amend the Fee Schedule to
amend the Fee Schedule [sic] to reflect adjustments to FINRA
Registration Fees and Fingerprinting Processing Fees on the BOX Options
Market LLC (``BOX'') options facility. While changes to the fee
schedule pursuant to this proposal will be effective upon filing, the
Exchange designates that the FINRA Annual System Processing Fee
Assessed only during Renewals become operative on January 2, 2024.\5\
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>.
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\5\ See Securities Exchange Act Release No. 90176 (October 14,
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032) (Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Adjust FINRA Fees To Provide Sustainable Funding for FINRA's
Regulatory Mission).
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II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fee Schedule for trading on BOX
to reflect adjustments to FINRA Registration Fees and Fingerprinting
Processing Fees.
This proposal amends BOX's Fee Schedule to reflect adjustments to
FINRA Registration Fees and Fingerprinting Processing Fees.\6\ The
FINRA fees are collected and retained by FINRA via Web CRD for the
registration of employees of BOX members and member organizations that
are not FINRA members (``Non-FINRA members''). The Exchange is merely
listing these fees on its Fee Schedule. The Exchange does not collect
or retain these fees.
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\6\ FINRA operates Web CRD, the central licensing and
registration system for the U.S. securities industry. FINRA uses Web
CRD to maintain the qualification, employment and disciplinary
histories of registered associated persons of broker-dealers.
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The Exchange proposes to amend: (1) the $110 fee for the additional
processing of each initial or amended Form U4, Form U5 or Form BD that
includes the initial reporting, amendment, or certification or one or
more disclosure events or proceedings to $155; (2) the $45 FINRA Annual
System Processing Fee Assessed only during Renewals to $70; and (3) the
$15 Second Submission (Electronic) Fingerprinting Processing Fee to
$20. Each of these fees are listed within Section II.A of the BOX Fee
Schedule. These amendments are being made in accordance with a FINRA
rule change to adjust to its fees.\7\
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\7\ See note 5. FINRA noted in its rule change that it was
adjusting its fees to provide sustainable funding for FINRA's
regulatory mission.
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The Exchange also proposes to amend the following Fingerprinting
Processing Fees: (1) the $29.50 Initial Submission (Electronic) fee to
$31.25; \8\ (2) the $44.50 Initial Submission (non-electronic) fee to
$41.25; \9\ (3) the $29.50 Third Submission (Electronic) fee to $31.25;
\10\ and (4) the $44.50 Third Submission (non-electronic) fee to
$41.25.\11\ Specifically, today, the FBI fingerprint charge is $11.25
\12\ and the FINRA electronic Fingerprinting Processing Fee has
increased from $15 to $20 in 2023.\13\ While FINRA did not amend the
non-electronic Fingerprinting Processing Fee, previously the FBI Fee
was reduced from $14.50 to $11.25.\14\ The non-electronic
Fingerprinting Processing Fees are not currently reflecting the amount
assessed by FINRA.\15\ The amendment to the non-electronic
Fingerprinting Processing Fees will conform these fees with those of
FINRA.
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\8\ This fee includes a $20.00 FINRA fee and $11.25 FBI fee. See
<a href="https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees">https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees</a>.
\9\ This fee includes a $30.00 FINRA Fee and a $11.25 FBI fee.
See <a href="https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees">https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees</a>.
\10\ This fee includes a $20 FINRA fee and $11.25 FBI fee. See
<a href="https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees">https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees</a>.
\11\ This fee includes a $30 FINRA Fee and a $11.25 FBI fee. See
<a href="https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees">https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees</a>.
\12\ See Securities Exchange Act Release No. 67247 (June 25,
2012) 77 FR 38866 (June 29, 2012) (SR-FINRA-2012-030) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Sections 4 and 6 of Schedule A to the FINRA By-Laws Regarding Fees
Relating to the Central Registration Depository) (``2012 Rule
Change'').
\13\ See note 5.
\14\ See 2012 Rule Change at note 12. The FBI does not charge
its fee on a second fingerprint transaction when it identifies the
first set of fingerprints as illegible for the same individual.
\15\ The fees for the non-electronic first card submission and
non-electronic third card submission are the only non-electronic
fees impacted by FINRA's fee change.
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The FINRA Web CRD Fees are user-based and there is no distinction
in the cost incurred by FINRA if the user is a FINRA member or a Non-
FINRA member. Accordingly, the proposed fees mirror those currently
assessed by FINRA.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act, in general, and Section
6(b)(4) and 6(b)(5) of the Act,\16\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among BOX Participants and other persons using its facilities
and
[[Page 8948]]
does not unfairly discriminate between customers, issuers, brokers or
dealers.
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\16\ 15 U.S.C. 78f(b)(4) and (5).
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The Exchange believes it is reasonable to increase: (1) the $110
fee for the additional processing of each initial or amended Form U4,
Form U5 or Form BD that includes the initial reporting, amendment, or
certification or one or more disclosure events or proceedings to $155;
(2) the $45 FINRA Annual System Processing Fee Assessed only during
Renewals to $70; and (3) the electronic Fingerprinting Processing Fees
for second submissions from $15 to $20 in accordance with an adjustment
to FINRA's fees \17\ because the proposed fees are identical to those
adopted by FINRA for use of Web CRD for disclosure and the registration
of FINRA members and their associated persons.
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\17\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee
except for the second fingerprint transaction.
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These costs are borne by FINRA when a Non-FINRA member uses Web
CRD. The Exchange's rule text will reflect the current registration and
electronic fingerprint rates that are assessed by FINRA for the
additional processing of each initial or amended Form U4, Form U5 or
Form BD and Second Submission (Electronic) Fingerprinting Processing
Fee and the registration rates that will be assessed by FINRA as of
January 2, 2024 for the FINRA Annual System Processing Fee Assessed
only during Renewals.\18\
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\18\ See note 5.
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The Exchange believes it is reasonable to correct the non-
electronic Fingerprinting Processing Fees to reflect the reduced FBI
Fee of $11.25.\19\ The amendments to the non-electronic Fingerprinting
Processing Fees will provide all BOX members and member organizations
with the correct fees.
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\19\ See 2012 Rule Change at note 12. The FBI does not charge
its fee on a second fingerprint transaction when it identifies the
first set of fingerprints as illegible for the same individual.
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The Exchange believes it is equitable and not unfairly
discriminatory to increase: (1) the $110 fee for the additional
processing of each initial or amended Form U4, Form U5 or Form BD that
includes the initial reporting, amendment, or certification or one or
more disclosure events or proceedings to $155; (2) the $45 FINRA Annual
System Processing Fee Assessed only during Renewals to $70; and (3) the
electronic Fingerprinting Processing Fees from $15 to $20 in accordance
with an adjustment to FINRA's fees \20\ because the Exchange will not
be collecting or retaining these fees, therefore, the Exchange will not
be in a position to apply them in an inequitable or unfairly
discriminatory manner. Similarly, the Exchange believes it is equitable
and not unfairly discriminatory to correct the non-electronic
Fingerprinting Processing Fees to reflect the reduced FBI Fee of $11.25
\21\ because the Exchange will not be collecting or retaining these
fees, therefore, the Exchange will not be in a position to apply them
in an inequitable or unfairly discriminatory manner.
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\20\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee
except for the second fingerprint transaction.
\21\ See 2012 Rule Change at note 12. The FBI does not charge
its fee on a second fingerprint transaction when it identifies the
first set of fingerprints as illegible for the same individual.
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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. The Exchange believes that its
proposal to increase: (1) the $110 fee for the additional processing of
each initial or amended Form U4, Form U5 or Form BD that includes the
initial reporting, amendment, or certification or one or more
disclosure events or proceedings to $155; (2) the $45 FINRA Annual
System Processing Fee Assessed only during Renewals to $70; and (3) the
electronic Fingerprinting Processing Fees for the second card
submission from $15 to $20 in accordance with an adjustment to FINRA's
fees \22\ does not impose an undue burden on competition because the
Exchange will not be collecting or retaining these fees, therefore, the
Exchange will not be in a position to apply them in an inequitable or
unfairly discriminatory manner. Similarly, the Exchange believes it
does not impose an undue burden on competition to correct the non-
electronic Fingerprinting Processing Fees to reflect the reduced FBI
Fee of $11.25 because the Exchange will not be collecting or retaining
these fees, therefore, the Exchange will not be in a position to apply
them in an inequitable or unfairly discriminatory manner.
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\22\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee
except for the second fingerprint transaction.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act \23\ and Rule 19b-4(f)(2)
thereunder,\24\ because it establishes or changes a due, or fee.
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\23\ 15 U.S.C. 78s(b)(3)(A)(ii).
\24\ 17 CFR 240.19b-4(f)(2).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend the rule
change if it appears to the Commission that the action is necessary or
appropriate in the public interest, for the protection of investors, or
would otherwise further the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<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#bdcfc8d1d890ded2d0d0d8d3c9cefdced8de93dad2cb"><span class="__cf_email__" data-cfemail="f785829b92da94989a9a92998384b7849294d9909881">[email protected]</span></a>. Please include
File Number SR-BOX-2023-07 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-2023-07. 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
[[Page 8949]]
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-
2023-07, and should be submitted on or before March 3, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-02950 Filed 2-9-23; 8:45 am]
BILLING CODE 8011-01-P
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