Notice2025-15838
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7350 (Reports and Market Data Products) and Section III.C.2. (Liquidity Taker Event Reports) of the Fee Schedule To Remove the Liquidity Taker Event Reports and the Related 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
August 20, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 159 (Wednesday, August 20, 2025)</title>
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[Federal Register Volume 90, Number 159 (Wednesday, August 20, 2025)]
[Notices]
[Pages 40684-40686]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15838]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103724; File No. SR-BOX-2025-21]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Rule
7350 (Reports and Market Data Products) and Section III.C.2. (Liquidity
Taker Event Reports) of the Fee Schedule To Remove the Liquidity Taker
Event Reports and the Related Fees
August 15, 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 8, 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 self-regulatory organization. The Commission is
publishing this notice to solicit comments on the proposed rule 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 BOX Rule 7350 (Reports and Market
Data Products) to remove the Liquidity Taker Event Reports and amend
the Fee Schedule to remove the fees for such products. Specifically,
the Exchange is proposing to amend Rule 7350 to delete subsection (b)
Liquidity Taker Event Report--Simple Order and subsection (c) Liquidity
Taker Event Report--Complex Orders in their entirety. The Exchange is
also proposing to amend the Fee Schedule to delete Section III.C.2
(Liquidity Taker Event Reports) in its entirety. 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 BOX Rule 7350
(Reports and Market Data Products) to remove the Liquidity Taker Event
Reports and amend the Fee Schedule to remove the fees for such
products. Specifically, the Exchange is proposing to amend Rule 7350 to
delete subsection (b) Liquidity Taker Event Report--Simple Order and
subsection (c)
[[Page 40685]]
Liquidity Taker Event Report--Complex Orders in their entirety. The
Exchange is also proposing to amend the Fee Schedule to delete Section
III.C.2 (Liquidity Taker Event Reports) in its entirety.
Background
The Exchange filed to adopt the Liquidity Taker Event Report rule
on March 18, 2022, and adopted a new section of the Fee Schedule to
adopt fees for the Liquidity Taker Event Report on May 31, 2022.\3\
Specifically, the Exchange adopted the Liquidity Taker Event Report--
Simple Orders (the ``Simple Order Report'') and the Liquidity Taker
Event Report--Complex Orders (the ``Complex Order Report''),
(collectively, the ``Reports'') which were intended to be made
available for purchase by Exchange Participants \4\ on a voluntary
basis. On May 24, 2022, BOX issued an Informational Circular describing
the Reports and providing that BOX would provide the official launch
date of these Reports in a future Informational Circular. However,
these Reports were never made available for purchase.
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\3\ On March 18, 2022, the Exchange filed its proposal to adopt
new Rule 7350 (Reports and Market Data Products) to adopt new data
products known as the Liquidity Taker Event Report. See Securities
Exchange Act Release No. 94563 (March 31, 2022), 87 FR 19985 (April
6, 2022) (SR-BOX-2022-10). On May 6, 2022, the Exchange filed its
proposal to amend Rule 7350 to provide for the new Liquidity Taker
Event Report--Complex Orders (the ``Complex Order Report''), and
change the name of the existing Liquidity Taker Event Report to
``Liquidity Taker Event Report--Simple Orders (the ``Simple Order
Report'')'' (collectively, the ``Reports'') which were intended to
be made available for purchase by Exchange Participants on a
voluntary basis. The Reports provide Participants with a chance to
learn more about better opportunities to access liquidity and
receive better execution rates. See Securities Exchange Act Release
No. 94920 (May 16, 2022), 87 FR 31013 (May 20, 2022) (SR-BOX-2022-
18). On March 31, 2022, the Exchange filed its proposal to adopt new
fees for the Liquidity Taker Event Report. See Securities Exchange
Act Release No. 95081 (June 9, 2022), 87 FR 36179 (June 15, 2022)
(SR-BOX-2022-20).
\4\ The term ``Participant'' means a firm, or organization that
is registered with the Exchange pursuant to the Rule 2000 Series for
purposes of participating in trading on a facility of the Exchange.
See BOX Rule 100(a)(42).
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By way of background, if launched, the Reports would have contained
daily reports that are able to provide a Participant (``Recipient
Participant'') with its liquidity response time details for executions
of an order resting on the BOX Book or Complex Order Book,\5\ where
that Recipient Participant attempted to execute against such resting
order \6\ within a certain timeframe. The purpose of the Reports is to
provide Participants the necessary data in a standardized format on a
T+1 basis to those that subscribe to the Simple Order Report and/or the
Complex Order Report on an equal basis. These Reports were intended to
be made available to Participants on a completely voluntary basis, but
were never made available for purchase by the Exchange.
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\5\ The term ``BOX Book'' means the electronic book of orders on
each single option series maintained by the BOX Trading Host. See
BOX Rule 100(a)(10). The term ``Complex Order Book'' means the
electronic book of Complex Orders maintained by the BOX Trading
Host. See BOX Rule 7240(a)(8).
\6\ Only displayed orders are included in the Simple Order
Report. The Exchange notes that it does not currently offer any non-
displayed order types on its options trading platform.
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Proposal
The Exchange is now proposing to amend BOX Rule 7350 to delete
subsections (b) (Liquidity Taker Event Report--Simple Orders) and (c)
(Liquidity Taker Event Report--Complex Orders) in their entirety. The
Exchange is also proposing to remove the fees assessed for the
Liquidity Taker Event Reports from the Fee Schedule. Specifically, the
Exchange is proposing to delete subsections (b) and (c) of Rule 7350
and Section III.C.2 of the Fee Schedule in their entirety because the
Reports have never been made available to Participants for purchase and
the Exchange believes that the continued presence of the Reports in the
Rulebook and Fee Schedule could lead to confusion for Participants.
Accordingly, the Exchange proposes to remove Rules 7350(b) and 7350(c)
from the Rulebook and Section III.C.2 of the Fee Schedule, to remove
any confusion surrounding the Exchange's current market data offerings.
To the extent the Exchange seeks to introduce these Reports in the
future, the Exchange would file a separate proposal with the Commission
to reintroduce the Reports.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\7\ in general, and Section
6(b)(5) of the Act,\8\ in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and
to protect investors and the public interest, and that it is not
designed to permit unfair discrimination among customers, brokers, or
dealers. The Exchange also believes that its proposal to amend the Fee
Schedule to remove the fees related to the Reports is consistent with
Section 6(b) of the Act in general, and further the objectives of
Section 6(b)(4) of the Act \9\ in particular, in that it provides for
an equitable allocation of reasonable dues, fees and other charges
among its members and other recipients of Exchange data.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ 15 U.S.C. 78f(b)(4).
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The Exchange believes the proposed changes promote just and
equitable principles of trade and remove impediments to and perfect the
mechanism of a free and open market and a national market system
because the proposed changes remove references to the Reports, which
were never made available for purchase, from the Rulebook and Fee
Schedule. The proposed changes are intended to prevent confusion among
Participants and the public about what market data products the
Exchange offers and the associated fees for such products, by updating
the BOX Rulebook and Fee Schedule to reflect the Exchange's existing
market data offerings. As such, the Exchange believes the proposed
change will provide greater clarity to Participants and the public
regarding the Exchange's market data products that are currently
available for purchase by removing references to the Reports from the
Exchange's Rulebook and Fee Schedule.
As detailed above, these Reports were intended to be made available
to Participants on a completely voluntary basis, but were never made
available for purchase by the Exchange. The Exchange is proposing to
remove the references to the Reports and the related fees from the
Rulebook and Fee Schedule, respectively, because the continued presence
of the Reports in the Rulebook and Fee Schedule could lead to confusion
for Participants. The Exchange believes it is in the public interest
for the Exchange's Rulebook and Fee Schedule to accurately reflect its
current market data offerings so as to eliminate the potential for
confusion. Further, as discussed above, the Exchange notes that the
Reports have never been made available for purchase, so there are no
existing subscribers to the Reports that would be impacted by the
proposal.
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.
[[Page 40686]]
Intramarket Competition
The Exchange believes that the proposal to remove the Reports from
the Rulebook and the associated fees for the Reports would have no
impact on intramarket competition because it applies to all
Participants equally. Additionally, as noted above, these Reports were
intended to be offered to Participants on a completely voluntary basis
in that the Exchange is not required by any rule of regulation to make
this data available and potential subscribers would have been permitted
to purchase the Reports if they voluntarily choose to do so. Further,
the Reports have never been made available for purchase, so there are
no existing subscribers to the Reports that would be impacted by the
proposal. The proposal therefore will not cause any unnecessary or
inappropriate burden on intramarket competition.
Intermarket Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the
proposed removal of the rule text and associated fees applies only to
the Reports, which were never made available for purchase to
Participants of the Exchange. The proposed change to remove the rule
text and associated fees for the Reports will have no impact on
competition as it not designed to address any competitive issue but
rather is designed to remove references to the Reports, which were
never made available for purchase, from the Rulebook and Fee Schedule.
The proposal is intended prevent confusion among Participants about
what reports the Exchange offers and the associated fees for such
products, ensuring that both the BOX Rulebook and Fee Schedule reflect
the Exchange's existing market data offerings.
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 \10\ and Rule 19b-4(f)(6) thereunder.\11\
Because the 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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6)(iii) thereunder.\13\
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\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, 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 under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission to waive the 30-day operative delay so
that the proposal may become operative immediately upon filing. The
Exchange states that a waiver of the operative delay would allow the
Exchange to immediately remove references to the Reports from the
Rulebook and Fee Schedule and thereby ensure that both the Rulebook and
Fee Schedule accurately reflect the Exchange's current market data
offerings and the associated fees. The Commission believes that the
proposed rule change presents no novel legal or regulatory 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 30-day operative delay and designates the
proposed rule change operative upon filing.\16\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 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 will institute proceedings under
Section 19(b)(2)(B) \17\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\17\ 15 U.S.C. 78s(b)(2)(B).
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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#0d7f786168206e6260606863797e4d7e686e236a627b"><span class="__cf_email__" data-cfemail="384a4d545d155b5755555d564c4b784b5d5b165f574e">[email protected]</span></a>. Please include
file number SR-BOX-2025-21 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-2025-21. 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-2025-21 and should be submitted on
or before September 10, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12), (59).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025-15838 Filed 8-19-25; 8:45 am]
BILLING CODE 8011-01-P
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