Notice2026-18650
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend SAIL Order Entry Port Fees
Primary source
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Published
September 14, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 176 (Monday, September 14, 2026)</title>
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[Federal Register Volume 91, Number 176 (Monday, September 14, 2026)]
[Notices]
[Pages 58228-58231]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18650]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106298; File No. SR-BOX-2026-18]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend SAIL
Order Entry Port Fees
September 9, 2026.
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 25, 2026 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 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 the Fee Schedule. Specifically, the
Exchange proposes to amend Section III.B. (Port Fees) to propose a
limit on the number of SAIL Order Entry Ports that a Participant may be
credentialed to use in a month and add language clarifying that the
Exchange currently offers two types of SAIL Ports. The Exchange is also
proposing to make certain technical and non-substantive changes within
the Fee Schedule. The text of the proposed rule change is available
from the principal office of the Exchange, and also 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.
[[Page 58229]]
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 Section III.B. (Port Fees) of the
Fee Schedule. Specifically, the Exchange proposes to amend Section
III.B.2. (SAIL) of the Fee Schedule to propose a limit on the number of
SAIL Order Entry Ports that a Participant may be credentialed to use in
a month. The Exchange notes that the proposed limitation is similar to
an existing limitation in place at another options exchange.\3\ The
Exchange is also proposing to add language to Section III.B.2.
clarifying that the Exchange currently offers two types of SAIL Ports--
Order Entry and Market Making.
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\3\ See Nasdaq Stock Market LLC (``Nasdaq'') Options 7, Section
3(i)(2) SQF Port Fee.
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Currently, BOX assesses monthly SOLA[supreg] Access Information
Language (``SAIL'') Port \4\ Fees on all Participants in each month a
Participant is credentialed to use a SAIL Port in the production
environment and based upon the number of credentialed SAIL Ports.
Participants are assessed a SAIL Order Entry Port fee of $540 per month
per port for the first five ports (1-5) and $162 per month for each
additional port.
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\4\ SAIL Market Making Ports are connections to BOX systems that
enable Market Makers to continuously quote on BOX, while SAIL Order
Entry Ports allow Market Makers and other Participants to submit
order flow to BOX.
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At this time, the Exchange proposes to limit a Participant to no
more than 200 SAIL Order Entry Ports per month.\5\ The Exchange notes
that in order to submit orders Participants must connect to a minimum
of one port via FIX or SAIL.\6\ While a Participant may elect to obtain
multiple SAIL Order Entry Ports for business purposes, in order to
submit orders a Participant is only required to connect to one port and
can choose between either FIX or SAIL Ports. The Exchange utilizes
ports as a secure method for Participants to submit orders and quotes
into the Trading System and for the Exchange to send messages related
to those orders and quotes to Participants. In order to properly
regulate its Participants and secure the trading environment, the
Exchange has taken measures to ensure access is monitored and
maintained with various controls. The Exchange believes that adopting
such limit will help to govern connectivity management and accommodate
overall demand on the Exchange by providing a means to efficiently
deploy Exchange resources, as no exchange has infinite capacity. In the
event a Participant were to reach the proposed limit of 200 SAIL Order
Entry Ports, such Participant would have the option to be credentialed
for additional FIX Ports for order entry. The Exchange notes that,
generally, there are no current limitations on the number of FIX Ports
that a Participant may be credentialed for per month. Accordingly, the
Exchange believes a limit of 200 SAIL Order Entry Ports will provide it
with the appropriate bandwidth to support future growth and new
Participant entrants.\7\ The Exchange will announce by Notice when it
will implement the 200 SAIL Order Entry Ports per month limit.
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\5\ The Exchange will also issue a Notice to announce the
limitation to Participants.
\6\ SAIL is the native protocol for SOLA[supreg], which offers
functionalities required by both Order Flow Providers and Market
Makers on BOX. SAIL is a proprietary protocol of BOX and allows
Participants to connect, send, and receive messages related to
orders and quotes. SAIL Ports offer lower latency as compared to
Financial Information eXchange (``FIX'') Ports, which may be
attractive to Participants depending on their trading behavior.
Alternatively, FIX is an order management protocol widely used by
professional trading systems and many order management systems. BOX
provides a FIX interface that allows Participants, who are already
using the FIX protocol for order routing and management to other
options markets, a streamlined way to connect to the BOX Trading
System.
\7\ The Exchange will periodically review the SAIL Order Entry
Port limit. If the Exchange elects to amend the limit in the future,
it will file a rule proposal with the Commission.
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Finally, the Exchange is proposing to make a few technical edits to
the Fee Schedule. Specifically, the Exchange proposes to amend Section
II. C. (Options Regulatory Fee) to remove obsolete text regarding an
ORF rate that is no longer in effect, to amend III. (Technology Fees)
to add the word ``Section'' to the heading for consistency with the
other section headings within the Fee Schedule, to correct an internal
cross reference within current endnote 36, and to renumber certain
endnotes within the Fee Schedule to conform with the changes proposed
herein.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\8\ in general, and Section
6(b)(5) of the Act,\9\ in particular, in that it is designed 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, in general to protect investors and the public interest.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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The Exchange's proposal to limit a Participant to no more than 200
SAIL Order Entry Ports per month is consistent with the Act because it
will allow the Exchange to ensure rational and efficient use of
resources in its overall connectivity management. Additionally, the
Exchange believes that the proposed rule change will further the
purposes of the Act by providing an additional means to the Exchange
for managing its finite resources, as no exchange has unlimited
capacity. The proposed limit on SAIL Order Entry Ports is being
proposed in order to manage capacity and resources is designed to
assist with the maintenance of a fair and orderly market, promote just
and equitable principles of trade, and prevent fraudulent and
manipulative acts and practices, as it ensures that the Exchange is
utilizing its resources in an effective and efficient manner.
The Exchange utilizes ports as a secure method for Participants to
submit orders and quotes into the Trading System and for the Exchange
to send messages related to those orders and quotes to Participants.
Only approved Participants may utilize a SAIL Order Entry Port. Once
approved, Participants may be credentialed to use SAIL Order Entry
Ports to submit orders into the Exchange. While a Participant may elect
to obtain multiple SAIL Order Entry Ports for business purposes, in
order to submit orders a Participant is only required to connect to one
port and can choose between either FIX or SAIL. In the event a
Participant were to reach the proposed limit of 200 SAIL Order Entry
Ports, such Participant would have the option to be credentialed for
additional FIX Ports for order entry. The Exchange notes that,
generally, there are no current limitations on the number of FIX Ports
that a Participant may be credentialed for per month. In order to
properly regulate its Participants and secure the trading environment,
the Exchange has taken measures to ensure access is monitored and
maintained with various controls that will protect investors and the
public interest. Specifically, the Exchange ensures that information
security safeguards, upgrades, and general port management are in
effect for all SAIL Order Entry Ports regardless of whether the SAIL
Order Entry Port is actively in use. As a result of these efforts, the
Exchange incurs costs to manage and maintain its SAIL Order Entry Ports
and the secure environment surrounding its platform.
The Exchange's proposal is intended to assist the Exchange in
continuing to govern its connectivity management in a reasonable manner
while protecting investors and the general public by encouraging the
efficient and effective use of the Exchange's resources with the
[[Page 58230]]
limit on SAIL Order Entry Ports. The Exchange believes that its
proposal is consistent with the Act in that it will provide the
Exchange the ability to maintain the appropriate bandwidth to support
future growth and new entrants thereby removing impediments to and
perfect the mechanism of a free and open market.
The Exchange believes further that adding language to Section
III.B.2. clarifying that the Exchange currently offers two types of
SAIL Ports, Order Entry and Market Making, is consistent with the Act
because the proposed change will provide greater clarity to market
participants regarding the Exchange's Fee Schedule. The Exchange
believes that this additional detail relating to its current SAIL Port
offerings will reduce the potential for investor confusion and make its
existing fees more clear.
Finally, the Exchange proposes to remove obsolete text regarding an
ORF rate that is no longer in effect, to add the word ``Section'' to
existing section heading III. (Technology Fees) for consistency with
the other section headings within the Fee Schedule, to correct an
internal cross reference within current endnote 36, and to renumber
certain endnotes within the Fee Schedule to conform with the changes
proposed herein. The Exchange believes that these proposed technical
and non-substantive changes will 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
change will provide greater clarity to market participants regarding
the Exchange's Fee Schedule. It is in the public interest for the
Exchange's Fee Schedule to be clear and accurate so as to eliminate the
potential for confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
change is not intended to address competitive issues and instead is
being proposed to assist with the maintenance of a fair and orderly
market by providing the Exchange with the ability govern its
connectivity management in a reasonable manner and to encourage the
efficient and rational use of the Exchange's finite resources. The
Exchange also notes that the proposed limit is similar to an existing
limitation in place at another options exchange.\10\
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\10\ See supra note 3.
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Intramarket Competition. The Exchange believes the proposed rule
change to amend Section III.B. (Port Fees) of the Fee Schedule to
propose a limit on the number of SAIL Order Entry Ports that a
Participant may be credentialed to use in a month, would not place an
unfair burden on intramarket competition because it is designed to
encourage the efficient use of the Exchange's resources and to provide
the Exchange the ability to maintain the appropriate bandwidth to
support future growth. The Exchange does not believe that its proposal
will place any category of market participant at a competitive
disadvantage because all Participants will uniformly be permitted to be
credentialed to use no more than 200 SAIL Order Entry Ports in a month.
Today, no Participant has exceeded 200 SAIL Order Entry Ports.
Intermarket Competition. The Exchange believes the proposal would
not place an unfair burden on intermarket competition as it is not
intended to address any competitive issues but is instead designed
solely to encourage the efficient use of the Exchange's resources and
to allow the Exchange to continue to reasonably govern its connectivity
management. The Exchange believes that the proposal to limit the number
of SAIL Order Entry Ports that a Participant may be credentialed to use
each month will help ensure that the Exchange has adequate tools at its
disposal to maintain the appropriate bandwidth to support future growth
and new entrants, which, in turn, will sustain the Exchange's overall
competitiveness. The Exchange also notes that nothing prevents other
options exchanges, as applicable, from electing to adopt a similar
limit.\11\
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\11\ The Exchange notes that Nasdaq and Nasdaq PHLX LLC (PHLX'')
currently prohibit Market Makers from subscribing to more than 250
SQF Ports per month. See Nasdaq Options 7, Section 3(i)(2) SQF Port
Fee and PHLX Options 7, Section 9(B)(i)(3), respectively.
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The Exchange also does not believe the proposed technical and
clarifying changes will have any unnecessary or inappropriate burden on
competition because these changes will apply equally to all
Participants and are intended to provide greater clarity to market
participants regarding the Exchange's Fee Schedule to reduce potential
investor confusion.
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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \14\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \15\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing. The
proposed limit is similar to an existing limitation in place at another
options exchange \16\ and raises no new or novel issues. Accordingly,
it is consistent with the protection of investors and the public
interest to waive the 30-day operative delay.\17\
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\14\ 17 CFR 240.19b-4(f)(6).
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ See supra note 3.
\17\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. 15 U.S.C. 78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the
[[Page 58231]]
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="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#b5c7c0d9d098d6dad8d8d0dbc1c6f5c6d0d69bd2dac3"><span class="__cf_email__" data-cfemail="493b3c252c642a2624242c273d3a093a2c2a672e263f">[email protected]</span></a>. Please include
File Number SR-BOX-2026-18 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-2026-18. 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-2026-18 and should be submitted on
or before October 5, 2026.
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).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-18650 Filed 9-11-26; 8:45 am]
BILLING CODE 8011-01-P
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