Notice2025-15424
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 5070 (Long-Term Options Contracts), Rule 7300 (Preferenced Orders), Rule 8040 (Obligations of Market Makers), Rule 8050 (Market Maker Quotations), IM-8050-2, and Rule 8510 (Obligations and Restrictions Applicable to Floor Market Makers)
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
August 14, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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[Federal Register Volume 90, Number 155 (Thursday, August 14, 2025)]
[Notices]
[Pages 39246-39253]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15424]
[[Page 39246]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103671; File No. SR-BOX-2025-20]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Rule
5070 (Long-Term Options Contracts), Rule 7300 (Preferenced Orders),
Rule 8040 (Obligations of Market Makers), Rule 8050 (Market Maker
Quotations), IM-8050-2, and Rule 8510 (Obligations and Restrictions
Applicable to Floor Market Makers)
August 11, 2025.
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 August 6, 2025, 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 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 Rule 5070 (Long-term Options
Contracts), Rule 7300 (Preferenced Orders), Rule 8040 (Obligations of
Market Makers), Rule 8050 (Market Maker Quotations), IM-8050-2, and
Rule 8510 (Obligations and Restrictions Applicable to Floor Market
Makers). The proposed rule change is intended to revise and clarify the
obligations of Market Makers on BOX. Specifically, the Exchange is
proposing to: (i) amend Rule 5070 to clarify continuous quoting
obligations do not apply to LEAPs; (ii) amend Rule 7300 to provide that
Quarterly Options Series are excluded from Preferred Market Makers'
continuous quoting obligations and add detail regarding the exclusion
of intra-day add-on series from Preferred Market Makers' continuous
quoting obligations; (iii) remove outdated requirements in Rules 8040
and 8510; (iv) amend Rule 8050 to provide additional detail on how
compliance with the Market Maker continuous quoting obligations are be
determined; (v) amend IM-8050-2 to provide that Quarterly Options
Series are excluded from Market Makers' continuous quoting obligations
and add detail regarding the exclusion of intra-day add-on series from
Market Makers' continuous quoting obligations; and (vi) add a missing
quotation mark in Rule 8040(d)(1). The text of the proposed rule change
is available from the principal office of the Exchange and on the
Exchange's internet website at <a href="https://rules.boxexchange.com/rulefilings">https://rules.boxexchange.com/rulefilings</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 amend Rule 5070
(Long-term Options Contracts), Rule 7300 (Preferenced Orders), Rule
8040 (Obligations of Market Makers), Rule 8050 (Market Maker
Quotations), IM-8050-2, and Rule 8510 (Obligations and Restrictions
Applicable to Floor Market Makers) to revise and clarify the Market
Maker obligations on BOX. Specifically, the Exchange is proposing to:
(i) amend Rule 5070 to clarify continuous quoting obligations do not
apply to LEAPs; (ii) amend Rule 7300 to provide that Quarterly Options
Series are excluded from Preferred Market Makers' continuous quoting
obligations and add detail regarding the exclusion of intra-day add-on
series from Preferred Market Makers' continuous quoting obligations;
(iii) remove outdated requirements in Rules 8040 and 8510; (iv) amend
Rule 8050 to provide additional detail on how compliance with the
Market Maker continuous quoting obligations are be determined; (v)
amend IM-8050-2 provide that Quarterly Options Series are excluded from
Market Makers' continuous quoting obligations and add detail regarding
the exclusion of intra-day add-on series from Market Makers' continuous
quoting obligations; and (vi) add a missing quotation mark in Rule
8040(d)(1). The Exchange is proposing to make the changes herein in
response to requests from Exchange Regulation Staff and Participants in
an effort to modernize its existing rules and further conform to the
rules in place at other exchanges to reduce compliance burden for the
benefit of market participants and to further contribute to the
maintenance of fair and orderly markets.
Each of these changes, which are described in greater detail below,
will make BOX's Market Maker obligations more consistent with market
maker obligations at other options exchanges and provide updates to the
rules that are consistent with modern market making practices. Overall,
the Exchange believes that having substantially similar Market Maker
requirements across its Exchange and other exchanges will reduce the
compliance burden and confusion for Market Makers that are members of
multiple exchanges industry wide. The Exchange believes further that
removing outdated provisions and adding clarifying detail into its
Market Maker Rules will reduce ambiguity in the Rules to the benefit of
Participants and allow the Exchange to more easily enforce compliance
by Participants.
Rule 5070 (Long-Term Options Contracts)
Rule 5070(a) describes Long-Term Options Contracts (``LEAPS'') as
option contracts that expire from twelve (12) to one hundred eighty
(180) months from the time they are listed. Rule 5070 further provides
``Strike price interval, bid/ask differential and continuity rules
shall not apply to such options series until the time to expiration is
less than nine (9) months.'' The Exchange is proposing to replace the
reference to continuity rules with continuous quoting. The Exchange is
not proposing to change existing surveillance or coverage, as the
continuous quoting obligations detailed in Rule 8050 do not currently
apply to LEAPS until the time to expiration of such series is less than
nine (9) months. The Exchange is merely proposing to update the
language to align with the existing rule text and more clearly cite to
the BOX continuous quoting rule. The Exchange again notes that this
change is being proposed to update the language in Rule 5070 to be more
consistent with the terminology used in Rule 8050 and will not change
the existing Market Maker quoting obligations, as LEAPS are currently
excluded from a Market Maker's continuous quoting obligations, until
the time to expiration of such series is less than nine (9) months. The
proposed change is intended to reduce ambiguity in Rule 5070 and make
it more clear within the rule text that LEAPS are excluded from a
Market
[[Page 39247]]
Maker's continuous quoting obligations until the time to expiration of
such series is less than nine (9) months by using consistent
terminology within both rules. The Exchange notes that another exchange
has a reference to continuous quoting in its Long-Term Options Series
rule.\3\
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\3\ See Miami International Securities Exchange, LLC (``MIAX'')
Rule 406 (Long-Term Options Contracts).
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Rule 7300 (Preferenced Orders)
Rule 7300, in relevant part, provides, ``A Preferred Market Maker
must maintain a continuous two-sided market, pursuant to Rule
8050(c)(1), throughout the trading day, in 99% of the non-adjusted
option series of each class for which it accepts Preferenced Orders,
for 90% of the time the Exchange is open for trading in each such
option class; provided, however, that for purposes of this requirement,
a Preferred Market Maker is not required to quote in intra-day add-on
or series that have a time to expiration of nine months or more in the
classes for which it receives Preferenced Orders and a Market Maker may
still be a Preferred Market Maker in any such series if the Market
Maker otherwise complies with this Rule 7300(a)(2).'' The Exchange is
proposing to amend Rule 7300 to provide that Quarterly Options Series
are excluded from the Preferred Market Makers' continuous quoting
obligations set forth in Rule 7300. The Exchange is also proposing to
add detail to the exclusion of intra-day add-on series to codify that
intra-day add-on series are excluded on the day such series are added
for trading. Specifically, the Exchange is proposing to amend the third
sentence of Rule 7300(a)(2) to provide, ``. . . A Preferred Market
Maker is not required to quote in intra-day add-on series on the day
during which such series was added for trading, any Quarterly Options
Series, or series that have a time to expiration of nine months or more
in the classes for which it receives Preferenced Orders and a Market
Maker may still be a Preferred Market Maker in any such series if the
Market Maker otherwise complies with this Rule 7300(a)(2).''
Intra-day add-on series can be added to the Trading System after
the opening of trading on the Exchange. These series may be added at
any time during the trading day and differ from other newly added
series, which are added prior to the opening of trading. The Exchange
believes that the proposed rule change to update a Preferred Market
Maker's continuous quoting obligations, by adding language codifying
that intra-day add-on series are only excluded on the day during which
such series was added for trading will add clarifying detail and
transparency for market participants as they seek to comply with the
Preferred Market Maker Requirements on BOX. The Exchange notes that it
is not proposing to change how compliance with this requirement is
determined, it is only intending to codify the existing exclusion and
reduce ambiguity in the Rule. The Exchange also notes this proposed
language is consistent with the rules at another options exchange.\4\
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\4\ See Cboe Exchange, Inc. (``Cboe'') Rule 5.56. Cboe Rule
5.56(a)(1) provides, in relevant part, ``this obligation does not
apply to any adjusted series or intra-day add-on series on the day
during which such series are added for trading.''
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Quarterly Options Series are series in an options class that is
approved for listing and trading on the Exchange in which the series is
opened for trading on any business day and that expire at the close of
business on the last business day of a calendar quarter. BOX may list
Quarterly Options Series for up to five (5) currently listed options
classes that are either index options or options on exchange traded
funds (or ``Exchange-Traded Fund Shares'') as defined in Rule 5020.\5\
In addition, BOX may also list Quarterly Options Series on any options
classes that are selected by other securities exchanges that employ a
similar program under their respective rules.\6\ The Exchange believes
that the proposed rule change to update a Preferred Market Maker's
continuous quoting obligations by excluding Quarterly Options Series
will reduce the compliance burden and confusion for Preferred Market
Makers on the Exchange that are members of multiple exchanges. The
Exchange notes this proposed language is consistent with the rules at
other options exchanges.\7\ As is the case today, Preferred Market
Makers may continue to choose to quote intra-day add-on series on the
day such series are added for trading and Quarterly Options Series.
However, such quotations will not be considered when determining
whether a Preferred Market Maker has met the continuous quoting
obligation contained in Rule 7300. The Exchange does not believe that
the proposed rule change will adversely affect the quality of the
Exchange's markets or lead to a material decrease in liquidity as
Preferred Market Makers will still be able to provide quotes in intra-
day add-on series on the day such series are added and Quarterly
Options Series as they deem appropriate. Rather the Exchange believes
that making its Preferred Market Maker obligations more consistent with
the obligations at other options exchanges may increase the number of
Market Makers willing to be designated as Preferred Market Makers to
make markets and provide liquidity at the Exchange.
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\5\ See Rule 5020 (Criteria for Underlying Securities) and IM-
5050-4 (Quarterly Options Series Program). Rule 5020(h) provides the
criteria for listing and trading options on Exchange-Traded Fund
Shares on the Exchange and IM-5050-4 details the criteria for
listing and trading options under the Quarterly Options Series
Program.
\6\ As of June 25, 2025, BOX lists 16 Quarterly Options Series.
\7\ See Nasdaq ISE, LLC (``ISE'') Options 2, Section 5(e)(3) and
Nasdaq GEMX, LLC (``GEMX'') Options 2, Section 5(e)(3).
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Rule 8040 (Obligations of Market Makers)
The Exchange proposes to remove the following rule text from Rule
8040, which has been in place since BOX's inception:
(a)(9) Except in unusual market conditions, refrain from
purchasing a call option or a put option at a price more than $0.25
below parity, although a larger amount may be appropriate
considering the particular market conditions. In the case of calls,
parity is measured by the bid in the underlying security, and in the
case of puts, parity is measured by the offer in the underlying
security. The $0.25 amount above may be increased, or the provisions
of this paragraph may be waived, by the Exchange on a series-by-
series basis.
This proposed rule text was previously within Cboe prior Rule 8.7
and was removed from Cboe's Rulebook in 2019,\8\ and ISE within Options
2, Section 4(a) and was removed from ISE's Rulebook in 2021.\9\ The
Exchange
[[Page 39248]]
likewise desires to remove this restriction on Market Makers which does
not exist on other options exchanges.\10\ The Exchange is proposing to
remove this requirement from Rule 8040 as the Exchange does not desire
to enforce this provision in the future.
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\8\ Prior Interpretation and Policy .02 to Cboe Rule 8.7
provided, ``Market-Makers are expected ordinarily to refrain from
purchasing a call option or a put option at a price more than $0.25
below parity, although a larger amount may be appropriate
considering the particular market conditions. In the case of calls,
parity is measured by the bid in the underlying security, and in the
case of puts, parity is measured by the offer in the underlying
security. The $0.25 amount above may be increased, or the provisions
of this Interpretation may be waived, by the Exchange on a series-
by-series basis.'' Cboe's rule change merely noted, with respect to
the removal of Cboe's parity rule, that the filing ``makes non-
substantive changes to the rule governing a Market-Maker's general
obligations (current Rule 8.7, in part), most of which remove
redundant provisions that are already covered under the umbrella of
a Market-Maker's obligation to engage in dealing to maintain fair
and orderly markets.'' No specific argument is provided with respect
to removing this provision. See Securities Exchange Act Release No.
87024 (September 19, 2019), 84 FR 50545 (September 25, 2019) (SR-
CBOE-2019-059) (Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Certain Rules Relating To Market-
Makers Upon Migration to the Trading System Used by Cboe Affiliated
Exchanges).
\9\ ISE Options 2, Section 4(a) provided: ``Ordinarily, Market
Makers are expected to: (1) Refrain from purchasing a call option or
a put option at a price more than $0.25 below parity, although a
larger amount may be appropriate considering the particular market
conditions. In the case of calls, parity is measured by the bid in
the underlying security, and in the case of puts, parity is measured
by the offer in the underlying security. (2) The $0.25 amount above
may be increased, or the provisions of this Rule may be waived, by
the Exchange on a series-by-series basis.'' ISE's rule change noted
that ISE is proposing to remove this rule text, that does not exist
on Cboe or other Nasdaq affiliated markets, as ISE does not desire
to enforce this provision in the future and believes that this
market maker provision is not necessary to maintain fair and orderly
markets. See Securities Exchange Act Release No. 92226 (June 22,
2021), 86 FR 34096 (June 28, 2021) (SR-ISE-2021-14) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Options 2, Section 4 (Obligations of Market Makers), Options 4,
Section 3 (Criteria for Underlying Securities), Options 4, Section 8
(Long-Term Options Contracts), and Options 4A, Section 12 (Terms of
Index Options Contracts)).
\10\ See Nasdaq PHLX LLC (``PHLX''), The Nasdaq Options Market
LLC (`Nasdaq'') and Nasdaq BX, Inc. (``BX'') at Options 2, Section 4
(Obligations of Market Makers).
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This requirement was initially adopted as a guideline for Market
Makers as they seek to comply with the general obligations to compete
with other Market Makers to improve the market in all series of options
classes to which the Market Maker is appointed, update quotations in
response to changed market conditions in their appointed options
classes, and to assure that any market quote it causes to be
disseminated is accurate. The Exchange believes that this requirement
is outdated and no longer necessary with modern market making. Today,
BOX incentivizes Market Makers through pricing to provide tighter
spreads. Market Makers also have other obligations with respect to
market making \11\ in addition to other quoting obligations \12\ that
they must abide by when quoting on BOX that the Exchange believes
provide sufficient quoting obligations on Market Makers. Additionally,
since the adoption of the Rule, BOX has adopted the obvious error
rule,\13\ which permits the Exchange to review a transaction as
potentially erroneous based on a theoretical price. Also, BOX orders
are subject to trade-through compliance, thereby limiting the prices at
which orders may execute.\14\ The Exchange believes that the
requirements relating to obvious errors and trade-through compliance
broadly serve a similar function to the obligation to refrain from
purchasing a call option or a put option at a price more than $0.25
below parity by providing general guidelines for pricing on the
Exchange. As such, the Exchange believes that this provision is no
longer necessary and should be eliminated. Taking the totality of the
other incentives, guidelines, and obligations applicable to Market
Makers on the Exchange, the Exchange believes it is appropriate to
remove the obligation to refrain from purchasing a call option or a put
option at a price more than $0.25 below parity provided in Rule
8040(a)(9) at this time.
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\11\ See Rule 8040. BOX Market Makers must for example: (1)
Compete with other Market Makers to improve the market in all series
of options classes to which the Market Maker is appointed; (2) make
markets that will be honored for the number of contracts entered
into the Exchange's System in all series of options classes to which
the Market Maker is appointed; (3) update quotations in response to
changed market conditions in all series of options classes to which
the Market Maker is appointed; and (4) price options contracts
fairly by, among other things, bidding and offering so as to create
differences of no more than $5 between the bid and offer following
the opening rotation in an equity or index options contract. See
Rule 8040(a).
\12\ See Rule 8050 (Market Maker Quotations).
\13\ See Rule 7170 (Nullification and Adjustment of Options
Transactions including Obvious Errors).
\14\ See Rule 15010 (Order Protection).
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Market Makers are relied upon to provide liquidity on BOX, which
benefits other Participants who have an opportunity to interact with
the order flow. The Exchange believes that the obligation to refrain
from purchasing a call option or a put option at a price more than
$0.25 below parity places an obligation on BOX Market Makers that is
not required on other options exchanges.\15\ Further, the Exchange
believes that this additional obligation is not necessary to maintain
fair and orderly markets and the removal of this provision would remove
an impediment to and perfect the mechanism of a free and open market
and a national market system, because, as mentioned above, the Exchange
has alternative methods to ensure Market Makers quote tightly in their
assigned options. The Exchange also notes that removing this provision
will bring the BOX Market Maker obligations more in line with the rules
of other options exchanges.\16\ The Exchange is also proposing to
remove Rule 8040(b) which provides: ``An Exchange Official may waive
the provisions of Rule 8040(a)(9) and Rule 8040(a)(10) in an index
option when the primary underlying securities market for that index is
not trading.'' The Exchange is proposing to remove the contents of
subsection (b) in its entirety and mark the subsection as reserved for
future use. The Exchange is proposing to make this change to correspond
with the above proposed removal of Rule 8040(a)(9). The Exchange notes
that the Rule 8040(a)(10) provision that is also cited within Rule
8040(b) was removed from the Rulebook by the Exchange in 2017.\17\ As
such, the Exchange is proposing to remove this provision in its
entirety to remove an obsolete rule cite and conform with the proposed
changes to remove Rule 8040(a)(9) detailed above.
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\15\ See supra notes 8 and 9.
\16\ Id.
\17\ See Securities Exchange Act Release No. 79891 (January 27,
2017), 82 FR 9101 (February 2, 2017) (SR-BOX-2017-03)(Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Rule 8040 (Obligations of Market Makers) to eliminate
subsection (a)(10), the provision providing for bids (offers) to be
no more than $1 lower (higher) than the last receding transaction
plus or minus the aggregate change in the last sale price of the
underlying).
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Lastly, the Exchange is proposing to add a missing quotation mark
to the definition of LOFP within Rule 8040(d)(1). This is a non-
substantive change that corrects a typographical error and is not
intended to change the meaning or operation of the rule.
Rule 8050 (Market Maker Quotations)
The Exchange is proposing to amend Rule 8050(e) to add detail and
clarify how compliance with the continuous quoting obligation is
determined. Rule 8050(e) Continuous Quotes provides, in relevant part:
``On a daily basis, a Market Maker must during regular market hours
make markets and enter into any resulting transactions consistent with
the applicable quoting requirements specified in these rules, such that
on a daily basis a Market Maker must post valid quotes at least sixty
percent (60%) of the time that the classes are open for trading. These
obligations will apply to all of the Market Maker's appointed classes
collectively, rather than on a class-by-class basis.'' The Exchange is
now proposing to add language to make it clear how compliance with the
Market Maker continuous quoting obligations is determined.
Specifically, the Exchange is proposing to adopt new rule text that
provides: ``Compliance with this requirement is determined on a monthly
basis; however, determining compliance with this requirement on a
monthly basis does not relieve a Market Maker from meeting this quoting
requirement on a daily basis, nor does it prohibit the Exchange from
taking disciplinary action against a Market Maker for failing to meet
this requirement each trading day.'' The Exchange is not proposing to
make any substantive changes to existing surveillance or compliance
standards relating to this requirement. The Exchange is merely
proposing to codify existing quoting compliance
[[Page 39249]]
standards into the rule text to provide greater clarity for
Participants. The Exchange notes that this language is already in place
on BOX for Preferred Market Makers and on other options exchanges.\18\
The Exchange believes that this proposed change will harmonize the
language concerning the determination of compliance with the continuous
quoting obligations for Preferred Market Makers and Market Makers on
the Exchange and increase transparency for Participants. The Exchange
again notes that the proposed change is consistent with the market
maker rules of other options exchanges.\19\
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\18\ See BOX Rule 7300(a)(2) and Cboe Rule 5.52(d)(2)(B) and ISE
Options 2, Section 5(e)(5) and Miami International Securities
Exchange, LLC (``MIAX'') Rule 604(e)(3)(i) and MIAX Pearl, LLC
(``MIAX Pearl'') Rule 605(d)(3) and MIAX Emerald, LLC (``MIAX
Emerald'') Rule 604(e)(3)(i) and NYSE Arca, Inc. (``NYSE Arca'')
Rule 6.37-O(c) and PHLX Options 2, Section 5(c)(3).
\19\ Id.
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IM-8050-2
IM-8050-2 currently provides, ``The obligations set forth in
subsection (e) of this rule shall not apply to Market Makers with
respect to adjusted option series. For purposes of this Rule, an
adjusted option series is an option series wherein, as a result of a
corporate action by the issuer of the underlying security, one option
contract in the series represents the delivery of other than 100 shares
of underlying stock or Exchange-Traded Fund Shares.'' The Exchange is
proposing to amend IM-8050-2 to provide that Quarterly Options Series
are excluded from the Market Makers' continuous quoting obligations set
forth in Rule 8050(e). The Exchange is also proposing to add language
to clarify that intra-day add-on series on the day such series are
added for trading are excluded from the continuous quoting obligations
set forth in Rule 8050(e). Specifically, The Exchange is proposing to
amend the first sentence of IM-8050-2 to provide, ``The obligations set
forth in subsection (e) of this rule shall not apply to Market Makers
with respect to adjusted option series, intra-day add-on series on the
day during which such series was added for trading, and any Quarterly
Options Series.''
The Exchange notes that intra-day add-on series on the day during
which such series was added for trading and Quarterly Options Series
are explicitly excluded from the market maker obligations at other
options exchanges.\20\ The Exchange believes that having substantially
similar Market Maker requirements across its Exchange and other options
exchanges will reduce the compliance burden and potential for confusion
for Market Makers that are members of multiple exchanges.
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\20\ See Cboe Rule 5.52(d)(2) and MEMX LLC (``MEMX'') Rule
22.6.(d)(1) and MIAX Rule 604(e)(3) and MIAX Emerald Rule 604(e)(3)
and MIAX Pearl Rule 605(d)(6) and Nasdaq ISE Options 2, Section 5
and PHLX Options 2, Section 5.
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As detailed above, intra-day add-on series can be added to the
Trading System after the opening of trading on the Exchange and
Quarterly Options Series are series in an options class that is
approved for listing and trading on the Exchange in which the series is
opened for trading on any business day and that expires at the close of
business on the last business day of a calendar quarter. The Exchange
believes that the proposed changes to IM-8050-2 to exclude Quarterly
Options Series from a Market Makers' continuous quoting obligations and
add language to codify that intra-day add-on series on the day such
series are added for trading are excluded from the continuous quoting
obligations will align the BOX Market Maker obligations more closely
with the rules at other options exchanges and continue to ensure that
Market Makers create a fair and orderly market in the option classes to
which they are assigned. As is the case today, Market Makers may
continue to choose to quote intra-day add-on series on the day such
series are added for trading and Quarterly Options Series. However,
such quotations will not be considered when determining whether a
Market Maker has met the obligation contained in Rule 8050(e).
In registering as a Market Maker on BOX, a Participant commits to
various obligations. Transactions of a Market Maker in its market
making capacity must constitute a course of dealings reasonably
calculated to contribute to the maintenance of a fair and orderly
market, and should not make bids or offers or enter into transactions
that are inconsistent with such course of dealings.\21\ Additionally, a
Market Maker must maintain a two-sided market,\22\ during trading
hours, in those option classes in which the Market Maker is appointed,
in a manner that enhances the depth, liquidity and competitiveness of
the market. Market Makers are also expected to: (1) compete with other
Market Makers to improve the market in all series of options classes to
which the Market Maker is appointed; (2) make markets that will be
honored for the number of contracts entered into BOX in all series of
options classes to which the Market Maker is appointed; and (3) update
quotations in response to changed market conditions in their appointed
options classes and to assure that any market quote it causes to be
disseminated is accurate. In light of the other numerous Market Maker
obligations on BOX, the Exchange does not believe that the proposed
rule change to exclude Quarterly Options Series from the Market Maker
continuous quoting obligation will adversely affect the quality of the
Exchange's markets or lead to a material decrease in liquidity. Rather,
the Exchange believes that the proposal may in fact increase market
making activity on the Exchange, by establishing quoting compliance
standards that are more modernized and are already in place on other
options exchanges.
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\21\ See BOX Rule 8040 (Obligations of Market Makers).
\22\ See BOX Rule 8050(c)(1). A Market Maker that enters a bid
(offer) in a class in which he is appointed on BOX must enter an
offer (bid) within the spread allowable under BOX Rule 8040.
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Rule 8510 (Obligations and Restrictions Applicable to Floor Market
Makers)
The Exchange proposes to amend Rule 8510 to eliminate Rule
8510(d)(2), the provision providing for bids (offers) to be no more
than $1 lower (higher) than the last preceding transaction plus or
minus the aggregate change in the last sale price of the underlying
(``the one point rule''). The one point rule was originally adopted as
a guideline by Cboe in 1987.\23\ Since the one point rule was
established, various market changes have rendered the rule obsolete and
unnecessary. For example, Market Makers now stream electronic quotes
and are subject to various electronic quotation requirements.
Additionally, Floor Market Makers are currently subject to various
quotation requirements, including bid/ask quote width requirements
contained in Rule 8510.\24\ The one point rule was adopted for Floor
Market Makers in the original BOX Trading Floor filing in 2017.\25\ The
Exchange originally adopted this standard as a guideline for Floor
Market Makers in order to provide consistency between the Market Maker
and Floor Market Maker obligations; however, today in modern markets,
this restriction is no longer necessary given the existing Floor Market
Maker quotation requirements, including the quote width requirements.
The Exchange also notes that it previously
[[Page 39250]]
removed the one point rule from Rule 8040 (Obligations of Market
Makers) in 2017.\26\ At this time, the Exchange believes that this
provision is obsolete and should be eliminated.
---------------------------------------------------------------------------
\23\ See Securities Exchange Act Release No. 24040 (January 30,
1987), 52 FR 4070 (February 9, 1987) (SR-CBOE-86-34) and Securities
Exchange Act Release No. 60295 (July 13, 2009), 74 FR 35215 (July
20, 2009) (SR-CBOE-2009-049).
\24\ See BOX Rule 8510.
\25\ See Securities Exchange Act Release No. 81292 (August 2,
2017), 82 FR 37144 (August 8, 2017) (SR-BOX-2016-48).
\26\ See supra note 17.
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As stated above, the Exchange is proposing to amend its Market
Maker requirements to further align with the requirements of other
options exchanges. Overall, the Exchange believes that having
substantially similar Market Maker requirements across its Exchange and
other exchanges will reduce the compliance burden and potential for
confusion for Market Makers that are members of multiple exchanges
industry wide. The Exchange believes further that removing outdated
provisions and adding clarifying detail into its Market Maker Rules
will reduce ambiguity in the Rulebook to the benefit of market
participants and will also allow the Exchange to more easily enforce
compliance by Participants.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\27\ in general, and Section
6(b)(5) of Act,\28\ in particular, in that the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5)
requirements that the rules of an exchange be designed to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts, to remove impediments to and to perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest.
---------------------------------------------------------------------------
\27\ 15 U.S.C. 78f(b).
\28\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the proposed changes to amend Rule 5070,
Rule 7300, Rule 8040, Rule 8050, IM-8050-2, and Rule 8510 to update
existing requirements and remove outdated provisions will add detail
and clarity to the Rulebook to the benefit of benefit market
participants by reducing the potential for confusion. The Exchange also
notes that the proposal will bring its Market Maker Rules more in line
with the rules already in place at other options exchanges, which will
reduce the compliance burden on Participants that are members of other
options exchanges. The Exchange does not believe that the proposed rule
change to will adversely affect the quality of the Exchange's markets
or lead to a material decrease in liquidity. Rather, the Exchange
believes that the proposal may in fact increase market making activity
on the Exchange, by establishing Market Maker requirements that are
more modernized in today's market and are already in place on other
options exchanges.
Rule 5070 (Long-Term Options Contracts)
The Exchange believes that amending Rule 5070(a) to replace the
reference to ``continuity rules'' with ``continuous quoting rules'' is
consistent with the Act, as the proposed change seeks to update the
language to align with the existing rule text and more clearly cite to
the BOX continuous quoting rule. The Exchange believes that this
proposed change will provide greater transparency and reduce confusion
regarding the obligations imposed on Market Makers by more clearly
citing to the continuous quoting obligation. The Exchange is not
proposing to change existing surveillance or coverage, as the
continuous quoting obligations detailed in Rule 8050 do not currently
apply to LEAPS until the time to expiration of such series is less than
nine months. The Exchange again notes that this change is being
proposed to update the language in Rule 5070(a) to be more consistent
with the terminology used in Rule 8050 and will not change the existing
Market Maker quoting obligations on BOX.
The proposed change is intended to reduce ambiguity in Rule 5070 to
make it more clear within the Rule that LEAPS are excluded from a
Market Maker's continuous quoting obligations until the time to
expiration of such series is less than nine (9) months by using
consistent terminology within both Rules. The Exchange believes that
this proposed change will provide greater transparency to the existing
BOX Market Maker obligations with respect to LEAPS and will benefit
market participants by reducing potential confusion or uncertainty as
Participants seek to comply with these obligations.
Rule 7300 (Preferenced Orders)
The Exchange believes that amending Rule 7300 to provide that
Quarterly Options Series are also excluded from the Preferred Market
Maker continuous quoting obligations set forth in Rule 7300 and add
detail to the exclusion of intra-day add-on series to state that intra-
day add-on series are excluded on the day such series are added for
trading is reasonable and appropriate. The Exchange believes the
proposed change is consistent with the Act in that it seeks to remove
impediments to and to perfect the mechanism of a free and open market
and a national market system, and, in general, to protect investors and
the public interest because it will provide greater transparency into
the existing Preferred Market Maker quoting requirements and reduce the
compliance burden for Preferred Market Makers that are members of
multiple exchanges.
The Exchange believes that the proposed language codifying that
intra-day add-on series are only excluded on the day during which such
series was added for trading will add clarifying detail and
transparency for market participants as they seek to comply with the
Preferred Market Maker Requirements on BOX. The Exchange again notes
that it is not proposing to change how compliance with this requirement
is determined, it is only intending to codify how intra-day add-on
series are excluded today. The Exchange is proposing to add this
additional detail to clarify the exclusion for the benefit of market
participants by reducing ambiguity in the Rule. The Exchange also notes
this proposed language is consistent with the rules at another options
exchange.\29\
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\29\ See Cboe Rule 5.56. Cboe Rule 5.56(a)(1) provides, in
relevant part, ``this obligation does not apply to any adjusted
series or intra-day add-on series on the day during which such
series are added for trading.''
---------------------------------------------------------------------------
The Exchange further believes that the proposed change to update a
Preferred Market Maker's continuous quoting obligations by excluding
Quarterly Options Series is consistent with the Act, in that it will
reduce the compliance burden and confusion for Preferred Market Makers
on the Exchange that are members of multiple exchanges. The Exchange
notes this proposed language is consistent with the rules at other
options exchanges.\30\
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\30\ See supra note 7.
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Rule 8040 (Obligations of Market Makers)
The Exchange's proposal to remove certain rule text from Rule 8040,
that requires Market Makers to refrain from purchasing a call option or
a put option at a price more than $0.25 below parity, except in unusual
market conditions, is consistent with the Act, as this requirement is
outdated and not necessary to maintain fair and orderly markets. The
Exchange desires to remove this restriction on Market Makers which does
not exist on other options exchanges.\31\ The Exchange believes that
this Market Maker provision is no longer necessary. Today, BOX
incentivizes Market Makers through pricing to provide tighter spreads.
Market Makers also have other obligations with respect to market
[[Page 39251]]
making \32\ in addition to other quoting obligations \33\ that they
must abide by when quoting on BOX. Additionally, BOX has an obvious
error rule, which permits the Exchange to review a transaction as
potentially erroneous based on a theoretical price.\34\ Also, orders on
BOX are subject to trade-through compliance, thereby limiting the
prices at which orders may execute.\35\ Market Makers are relied upon
to provide liquidity on BOX, which benefits other Participants who have
an opportunity to interact with the order flow. The Exchange believes
that the obligation to refrain from purchasing a call option or a put
option at a price more than $0.25 below parity places an obligation on
BOX Market Makers that is not required on other options exchanges.\36\
The Exchange believes that the requirements relating to obvious errors
and trade-through compliance broadly serve a similar function to the
obligation to refrain from purchasing a call option or a put option at
a price more than $0.25 below parity by providing general guidelines
for pricing on the Exchange. As such, the Exchange believes that this
additional obligation is outdated and not necessary to maintain fair
and orderly markets and the removal of this provision would remove an
impediment to and perfect the mechanism of a free and open market and a
national market system. The Exchange also notes that removing this
provision will bring the BOX Market Maker obligations more in line with
the rules of other options exchanges.\37\ As discussed above, the
Exchange believes the proposed change to eliminate Rule 8040(a)(9) is
reasonable and appropriate, as other options exchanges have filed to
remove the language, on the basis that the rule was obsolete and
unnecessary.\38\
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\31\ See supra notes 8 and 9.
\32\ See BOX Rule 8040. BOX Market Makers must for example: (1)
Compete with other Market Makers to improve the market in all series
of options classes to which the Market Maker is appointed; (2) make
markets that will be honored for the number of contracts entered
into the Exchange's System in all series of options classes to which
the Market Maker is appointed; (3) update quotations in response to
changed market conditions in all series of options classes to which
the Market Maker is appointed; and (4) price options contracts
fairly by, among other things, bidding and offering so as to create
differences of no more than $5 between the bid and offer following
the opening rotation in an equity or index options contract. See
Rule 8040(a).
\33\ See BOX Rule 8050 (Market Maker Quotations).
\34\ See BOX Rule 7170 (Nullification and Adjustment of Options
Transactions including Obvious Errors).
\35\ See BOX Rule 15010 (Order Protection).
\36\ See supra notes 8 and 9.
\37\ Id.
\38\ Id.
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The Exchange believes the proposal to remove Rule 8040(b) which
provides: ``An Exchange Official may waive the provisions of Rule
8040(a)(9) and Rule 8040(a)(10) in an index option when the primary
underlying securities market for that index is not trading'' is
consistent with the Act. The Exchange is proposing to make this change
to correspond with the above proposed removal of Rule 8040(a)(9). The
Exchange notes that the Rule 8040(a)(10) provision cited within Rule
8040(b) above, was removed from the Rulebook by the Exchange in
2017.\39\ As such, the Exchange is proposing to remove this provision
in its entirety and mark it as reserved for future use to remove an
obsolete rule cite and conform with the proposed change to remove Rule
8040(a)(9) detailed above. The Exchange believes the proposed change to
remove Rule 8040(a)(10) is consistent with the Act, in that it will add
clarity to its rules by removing an outdated rule cite and conforming
to the above proposed change to remove Rule 8040(a)(9).
---------------------------------------------------------------------------
\39\ See supra note 17.
---------------------------------------------------------------------------
The Exchange is also proposing to add a missing quotation mark to
the definition of LOFP in Rule 8040(d)(1). The Exchange believes that
this change will remove impediments to and perfect the mechanism of a
free and open market by correcting a typographical error that may
inhibit a clear reading of the Rules. This change is non-substantive
and is not intended to change the meaning of the Rule or its operation.
Rule 8050 (Market Maker Quotations)
The Exchange is proposing to amend Rule 8050(e) to clarify how
compliance with the Market Maker continuous quoting obligation is
determined. The Exchange believes that amending Rule 8050(e) to provide
detail on how the Market Maker continuous quoting obligation is
determined is consistent with the Act. The Exchange is not proposing to
make any substantive changes to existing surveillance or compliance
standards relating to this requirement. The Exchange is merely
proposing to codify existing quoting compliance standards into the rule
text to provide greater clarity for Participants. The Exchange believes
the proposed change will reduce any ambiguity in the Rule and provide
greater specificity relating to the Exchange's compliance standards to
Participants as they seek to comply with such Market Maker
requirements. The Exchange notes that this language is already in place
on BOX for Preferred Market Makers and on other options exchanges.\40\
The Exchange believes the proposed change is consistent with the Act in
that it seeks to remove impediments to and to 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 providing greater
transparency into its existing quoting compliance standards. The
Exchange further believes that this proposed change will harmonize the
language concerning the determination of compliance with the continuous
quoting obligations for Preferred Market Makers and Market Makers on
the Exchange.
---------------------------------------------------------------------------
\40\ See Rule 7300(a)(2) and Cboe Rule 5.52(B) and ISE Options
2, Section 5(e)(5) and MIAX Rule 604(e)(3)(i) and MIAX Pearl Rule
605(d)(3) and MIAX Emerald Rule 604(e)(3)(i) and NYSE Arca Rule
6.37-O (c) and PHLX Options 2, Section 5(c)(3).
---------------------------------------------------------------------------
IM-8050-2
The Exchange is proposing to amend IM-8050-2 to clarify that intra-
day add-on series on the day such series are added for trading are
excluded from the Market Makers' continuous quoting obligations and
provide that Quarterly Options Series are excluded from the Market
Makers' continuous quoting obligations. The Exchange believes that the
proposed language codifying that intra-day add-on series are only
excluded on the day during which such series was added for trading will
add clarifying detail and transparency for market participants as they
seek to comply with the Market Maker Requirements on BOX. The Exchange
again notes that it is not proposing to change how compliance with this
requirement is determined, it is only intending to codify how intra-day
add-on series are excluded today. The Exchange is proposing to add this
additional detail to clarify the exclusion for the benefit of market
participants by reducing ambiguity in the Rule. The Exchange believes
that the proposed change to update a Market Maker's continuous quoting
obligations by excluding Quarterly Options Series is consistent with
the Act, in that, it will reduce the compliance burden and potential
for confusion for Market Makers on the Exchange that are members of
multiple exchanges. The Exchange notes that intra-day add-on series on
the day during which such series was added for trading and Quarterly
Options Series are explicitly excluded from the Market Maker
obligations at other options exchanges.\41\ As is the case today,
Market Makers may continue to choose to quote intra-day add-on series
on the
[[Page 39252]]
day such series are added for trading and Quarterly Options Series.
However, such quotations will not be considered when determining
whether a Market Maker has met the obligation contained in Rule
8050(e).
---------------------------------------------------------------------------
\41\ See supra note 20.
---------------------------------------------------------------------------
The Exchange is proposing to further conform its Market Maker
continuous quoting obligations with those at other options exchanges.
The Exchange believes the proposed change is consistent with the Act in
that it seeks to remove impediments to and to 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 providing greater
transparency into its Market Maker quoting requirements and further
aligning such requirements with those already in place at other options
exchanges. The Exchange also believes the proposed change will reduce
ambiguity and provide greater specificity relating to the Exchange's
Market Maker quoting requirements for Participants as they seek to
comply with such Market Maker requirements. The Exchange does not
believe that the proposed rule change to exclude Quarterly Options
Series from the Market Maker continuous quoting obligation will
adversely affect the quality of the Exchange's markets or lead to a
material decrease in liquidity. Rather, the Exchange believes that the
proposal may in fact increase market making activity on the Exchange,
by establishing quoting compliance standards that are more reasonable
and are already in place on other options exchanges.
Rule 8510 (Obligations and Restrictions Applicable to Floor Market
Makers)
The Exchange is proposing to amend Rule 8510 (Obligations and
Restrictions Applicable to Floor Market Makers) to eliminate the one
point rule. The Exchange believes the elimination of Rule 8510(d)(2) is
reasonable and appropriate as various market changes have rendered the
rule obsolete and unnecessary. For example, Market Makers now stream
electronic quotes and are subject to various electronic quotation
requirements. Additionally, Floor Market Makers are currently subject
to various quotation requirements, including bid/ask quote width
requirements contained in Rule 8510.\42\ The Exchange originally
adopted this standard as a guideline for Floor Market Makers in order
to provide consistency between the Market Maker and Floor Market Maker
obligations; however, today in modern markets, this restriction is no
longer necessary given the existing Floor Market Maker quotation
requirements, including the quote width requirements. As discussed
above, the Exchange further believes the proposed change to Rule
8510(d)(2) is reasonable and appropriate, as the Exchange removed the
corresponding Rule for electronic Market Makers in the past.\43\
---------------------------------------------------------------------------
\42\ See BOX Rule 8510.
\43\ See supra note 17.
---------------------------------------------------------------------------
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 does not believe
that the proposed change will impose a burden on intermarket or
intramarket competition. The Exchange does not believe that the
proposed non-controversial change will impose a burden on competition,
or is competitive in nature, as the majority of the proposed updates
seek to remove outdated provisions and provide additional detail
regarding current functionality to mitigate any potential investor
confusion. The proposed changes to Rule 5070, Rule 7300, Rule 8040,
Rule 8050, IM-8050-2, and Rule 8510 will apply equally to all market
participants. The proposal is intended to provide more clarity within
the Rules and creates more uniformity and consistency amongst the
Exchange's Rules and the rules of other options exchanges. In this
regard and as discussed above, the Exchange believes that the proposed
rule change is similar to rules at other options exchanges in the
industry.
The proposed change to Rule 5070(a) to replace the reference to
``continuity rules'' with ``continuous quoting rules'' is intended
update the language in 5070(a) to be more consistent with the
terminology used in Rule 8050 and will not change the existing Market
Maker quoting obligations on BOX. The Exchange is proposing this change
to alleviate potential investor confusion by making it clearer that
LEAPS are excluded from a Market Maker's continuous quoting obligations
by using consistent terminology within the Rulebook and is not intended
to address competitive issues.
The proposed amendment to Rule 7300 to exclude Quarterly Options
Series from a Preferred Market Maker's continuous quoting obligations
and add language codifying that intra-day add-on series are only
excluded on the day during which such series was added for trading is
intended to clarify a Preferred Market Maker's continuous quoting
obligations and further conform its continuous quoting obligations with
those at other options exchanges.\44\ The proposed exclusion of
Quarterly Options Series from a Preferred Market Maker's continuous
quoting obligations is intended to reduce the compliance burden and
confusion for Preferred Market Makers on the Exchange that are members
of multiple exchanges. The proposed change is not intended to address
competitive issues and instead is being proposed in an effort to
further conform the Exchange's quoting requirements to those in place
at another options exchange and add transparency to the Rulebook to
reduce the potential for any investor confusion relating to Preferred
Market Maker quoting requirements on BOX.
---------------------------------------------------------------------------
\44\ See supra notes 4 and 7.
---------------------------------------------------------------------------
The proposed amendment to Rule 8040(a)(9) to remove the provision
requiring Market Makers to refrain from purchasing a call option or a
put option at a price more than $0.25 below parity, except in unusual
market conditions, is designed to remove an additional restriction on
BOX Market Makers that the Exchange believes is unnecessary and does
not exist on other options exchanges.\45\ The Exchange is also
proposing to remove Rule 8040(b) in its entirety and mark it as
reserved for future use to remove an obsolete rule cite and conform
with the proposed changes to remove Rule 8040(a)(9) detailed above. The
proposed change to add a missing quotation mark in Rule 8040(d)(1) will
have no impact on trading on the Exchange as the proposed rule changes
are non-substantive in nature. The proposed changes to Rule 8040 are
not intended to address competitive issues and instead are intended to
remove outdated sections, correct a typographical error, and further
conform the Rule to those at other options exchanges.
---------------------------------------------------------------------------
\45\ See supra notes 8 and 9.
---------------------------------------------------------------------------
The Exchange is proposing to amend Rule 8050(e) to clarify how
compliance with the continuous quoting obligation is determined. The
Exchange is not proposing to make any substantive changes to existing
surveillance or compliance standards relating to this requirement. The
Exchange is merely proposing to codify existing quoting compliance
standards into the rule text to provide greater transparency investors.
The Exchange notes that this language is already in place on BOX for
Preferred Market Makers and on other options exchanges.\46\ The
proposed
[[Page 39253]]
change is not intended to address competitive issues, as it is being
proposed to reduce any ambiguity in the Rule and provide greater
transparency relating to the Exchange's existing compliance standards.
---------------------------------------------------------------------------
\46\ See supra note 18.
---------------------------------------------------------------------------
The proposed amendment to IM-8050-2 to clarify that intra-day add-
on series on the day such series are added for trading are excluded
from the Market Makers' continuous quoting obligations and provide that
Quarterly Options Series are excluded from the Market Makers'
continuous quoting is intended to further conform its Market Maker
continuous quoting obligations with those at other options exchanges.
The proposed language adding detail to the exclusion of intra-day add-
on series is intended to codify current functionality and reduce
ambiguity. The proposed exclusion of Quarterly Options Series from a
Market Maker's continuous quoting obligations is intended to reduce the
compliance burden and confusion for Market Makers on the Exchange that
are members of multiple exchanges. The proposed change is not intended
to address competitive issues and instead is being proposed in an
effort to further conform the Exchange's quoting requirements to those
in place at other exchanges to reduce the potential for any investor
confusion relating to existing Market Maker quoting requirements on BOX
and add transparency into the Rulebook.
The Exchange is also proposing to amend Rule 8510 to eliminate the
one point rule as various market changes have rendered the rule
obsolete and unnecessary. The proposed change to eliminate the one
point rule in Rule 8510, is not intended to address competitive issues,
but is intended to remove an unnecessary and outdated Rule.
As discussed above, the proposed changes to remove outdated
provisions, add detail into existing rules, and conform the
requirements to those in place at other exchanges are designed to make
the Rulebook more transparent thereby mitigating any potential investor
confusion and to reduce the compliance burden for Participants that are
members of multiple exchanges. The Exchange believes the majority of
the changes are non-substantive changes or provide additional detail
regarding current functionality. The Exchange also notes that proposed
changes will make the Exchange's Market Maker obligations more
consistent with the obligations in already in place at other options
exchanges and provide updates to the rules that are consistent with
modern market making practices. For the foregoing reasons, 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.
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 \47\ and Rule 19b-
4(f)(6) thereunder.\48\
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\47\ 15 U.S.C. 78s(b)(3)(A).
\48\ 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.
---------------------------------------------------------------------------
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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#daa8afb6bff7b9b5b7b7bfb4aea99aa9bfb9f4bdb5ac"><span class="__cf_email__" data-cfemail="3042455c551d535f5d5d555e4443704355531e575f46">[email protected]</span></a>. Please include
file number SR-BOX-2025-20 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-2025-20. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-BOX-2025-20 and should be submitted on
or before September 4, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\49\
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\49\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Vanessa A. Countryman,
Secretary.
[FR Doc. 2025-15424 Filed 8-13-25; 8:45 am]
BILLING CODE 8011-01-P
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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.