Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee Schedule for Trading on the BOX Options Market LLC Facility To Amend Section V. Manual Transaction Fees of the Fee Schedule To Increase QOO and FOO Order Fees in Non-Penny Interval Classes and To Increase the Floor Broker Enhanced Rebate in Non-Penny Interval Classes

Issuing agencies

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<title>Federal Register, Volume 91 Issue 200 (Monday, October 19, 2026)</title>
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[Federal Register Volume 91, Number 200 (Monday, October 19, 2026)]
[Notices]
[Pages 66176-66179]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21245]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106664; File No. SR-BOX-2026-20]


Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee 
Schedule for Trading on the BOX Options Market LLC Facility To Amend 
Section V. Manual Transaction Fees of the Fee Schedule To Increase QOO 
and FOO Order Fees in Non-Penny Interval Classes and To Increase the 
Floor Broker Enhanced Rebate in Non-Penny Interval Classes

October 14, 2026.
    Pursuant to Section 19(b)(1) under the Securities Exchange Act of 
1934 (the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby 
given that on September 30, 2026, BOX Exchange LLC (the ``Exchange'') 
filed with the Securities and Exchange Commission (the ``Commission'') 
the proposed rule change as described in Items I and II below, which 
Items have been prepared by the Exchange. The Exchange filed the 
proposed rule change pursuant to Section 19(b)(3)(A)(ii) of the Act,\3\ 
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange is filing with the Securities and Exchange Commission 
(``Commission'') a proposed rule change to amend the Fee Schedule on 
the BOX Options Market LLC (``BOX'') options facility. The Exchange 
proposes to increase QOO and FOO Order Fees in Non-Penny Interval 
classes and to increase the Floor Broker enhanced rebate in Non-Penny 
Interval classes in Section V. Manual Transaction Fees of the Fee 
Schedule. While changes to the fee schedule pursuant to this proposal 
will be effective upon filing, the changes will become operative on 
October 1, 2026. 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 Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Section V. Manual Transaction Fees 
of the Fee Schedule to: (1) increase Market Maker Qualified Open Outcry 
(``QOO'') and FLEX Open Outcry (``FOO'') Order fees in Non-Penny 
Interval classes from $0.50 to $1.00; and (2) increase the Floor Broker 
enhanced rebate in Non-Penny Interval classes from $0.20 to $0.25.
Background of Fees and Rebates for Transactions on the Trading Floor
    The Exchange assesses fees (and/or provides rebates) for 
transactions on the Trading Floor based on account type.\5\ For Public 
Customers the Exchange does

[[Page 66177]]

not currently assess a per contract fee (or provide a rebate) for QOO 
and FOO \6\ Orders in all Penny Interval Classes and Non-Penny Interval 
Classes. The Exchange assesses a $0.10 per contract fee for QOO and FOO 
orders in Penny Interval Classes and Non-Penny Interval Classes, for 
the Professional Customer account type. The Exchange assesses a $0.25 
per contract fee for QOO and FOO orders in Penny Interval Classes and 
Non-Penny Interval Classes, for the Broker Dealer account type. The 
Exchange does not assess a fee (or provide a rebate) for QOO and FOO 
orders in Penny Interval Classes and Non-Penny Interval Classes, for 
the Broker Dealer facilitating a Public Customer account type. The 
Exchange assesses the Market Maker account type a fee of $0.50 per 
contract for QOO and FOO orders in Penny Interval Classes and Non-Penny 
Interval Classes.
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    \5\ See Fee Schedule Section V.A.
    \6\ See Rules 7600 and 7605.
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    The Exchange provides Floor Brokers a rebate of $0.10 per contract 
for all Broker Dealer and Market Maker QOO and FOO Orders presented on 
the Trading Floor and $0.05 per contract rebate for all Professional 
Customer QOO and FOO Orders presented on the Trading Floor.\7\ The 
rebate does not apply to Public Customer executions, executions subject 
to the Strategy QOO Order Fee Cap and Rebate & Strategy FOO Order Fee 
Cap and Rebate, or Broker Dealer executions where the Broker Dealer is 
facilitating a Public Customer. Floor Brokers that submit QOO and FOO 
Orders receive a $0.20 per contract enhanced rebate for executions that 
trade with a Floor Market Maker, in lieu of the $0.10 and $0.05 per 
contract rebates described above. The enhanced rebate does not apply to 
Public Customer executions, executions subject to the Strategy QOO 
Order Fee Cap and Rebate & Strategy FOO Order Fee Cap and Rebate, or 
Broker Dealer executions where the Broker Dealer is facilitating a 
Public Customer.
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    \7\ See Fee Schedule Section V.C.
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Proposal To Increase QOO and FOO Order Fees in Non-Penny Interval 
Classes for Market Makers
    The Exchange proposes to amend the QOO and FOO Order fees in 
Section V.A. of the Fee Schedule to increase the fee assessed to Market 
Maker account types in Non-Penny Interval Classes. Currently, the 
Exchange assesses Market Makers a fee of $0.50 per contract for QOO and 
FOO Orders in Non-Penny Interval Classes. The Exchange now proposes to 
assess Market Makers a fee of $1.00 per contract for QOO and FOO Orders 
in Non-Penny Interval Classes. The purpose of this change is for 
business and competitive reasons. The Exchange believes that even with 
the proposed increased fee, the Exchange's transaction fees for Market 
Maker account types will remain competitive with the fees assessed by 
other equity options exchanges that offer trading floors for 
transactions by their market makers in non-penny classes when trading 
against all other account types.\8\
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    \8\ See Nasdaq PHLX LLC (``PHLX'') Rules, Options 7: Pricing 
Schedule, Section 4 (assessing PHLX market makers a fee of $1.00 per 
contract for floor transactions in non-penny symbols); NYSE American 
LLC (``NYSE American'') Options Fee Schedule, Section I.A. 
(assessing NYSE American market makers a fee of $0.90 per contract 
for manual transactions in non-penny classes); NYSE Arca, Inc. 
(``NYSE Arca'') Options Fees and Charges, Transaction Fee for Manual 
Executions--Per Contract (assessing NYSE Arca market makers a fee of 
$0.90 per contract for manual transactions in non-penny classes); 
MIAX Sapphire, LLC (``Sapphire'') Fee Schedule Section 1)c)i) 
(assessing Sapphire Floor Market Makers a fee of $0.94 per contract 
for QFO and cQFO transactions in non-penny classes).
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Proposal To Increase the Enhanced Floor Broker Rebate for QOO and FOO 
Orders in Non-Penny Interval Classes
    Next, the Exchange proposes to amend Section V.C. (QOO and FOO 
Order Rebate) of the Fee Schedule to increase the per contract enhanced 
Floor Broker rebate in Non-Penny Interval Classes. Currently, the 
Exchange provides a Floor Broker enhanced rebate of $0.20 per contract 
for QOO and FOO Orders for executions that trade with a Floor Market 
Maker in Penny Interval and Non-Penny Interval Classes. The Exchange 
now proposes to increase the Floor Broker enhanced rebate to $0.25 per 
contract for QOO and FOO Orders for executions that trade with a Floor 
Market Maker in Non-Penny Interval Classes. The Exchange notes that the 
enhanced rebate does not apply to Public Customer executions, 
executions subject to Section V.D (Strategy QOO Order Fee Cap and 
Rebate & Strategy FOO Order Fee Cap and Rebate), or Broker Dealer 
executions where the Broker Dealer is facilitating a Public Customer. 
The purpose of this change is for business and competitive reasons.\9\ 
The Exchange believes this change may encourage additional Floor Broker 
liquidity in Non-Penny Interval Classes. Additional liquidity in Non-
Penny Interval Classes may benefit all market participants because it 
will attract additional liquidity to BOX by providing more trading 
opportunities. Further, additional liquidity helps contribute to a 
robust trading environment on the BOX Trading Floor.
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    \9\ See Sapphire Fee Schedule Section 1)c)i) (providing $0.25 
Floor Broker Breakup Credit for Non-Penny Classes). The Exchange 
notes that BOX refers to this incentive as an enhanced rebate while 
Sapphire refers to it as a breakup credit.
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act, in general, and Section 
6(b)(4) and 6(b)(5) of the Act,\10\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among Participants and other persons using its facilities and 
does not unfairly discriminate between customers, issuers, brokers or 
dealers.
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    \10\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes the proposal to amend the Market Maker 
account type to increase the fee to $1.00 per contract for QOO and FOO 
Order transactions in Non-Penny Interval Classes is reasonable, 
equitably allocated, and not unfairly discriminatory because, even with 
the proposed increase, the Exchange believes the proposed fee will not 
discourage Floor Market Maker order flow. The Exchange notes that even 
with the proposed increase to the Floor Market Maker fee for 
transactions in Non-Penny Interval Classes proposed herein, the 
Exchange's proposed fee of $1.00 per contract for the Market Maker 
account type in Non-Penny Interval Classes remains competitive with the 
fee charged by other equity options exchanges to their floor market 
makers for transactions in non-penny classes.\11\
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    \11\ See supra note 8.
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    The Exchange believes that increasing fees for QOO and FOO Order 
transactions by Market Makers, but not for other market participants, 
represents an equitable, non-discriminatory allocation of fees because 
the proposal is based on the type of business transacted by Floor 
Market Makers on BOX, and Floor Market Makers are not obligated to 
engage in transactions on the Trading Floor. Rather, Floor Market 
Makers trade for their own accounts and benefit from having access to 
interact with orders that are made available in open outcry on the 
Trading Floor.
    The Exchange believes the proposal to increase the Floor Broker 
enhanced rebate to $0.25 per contract for QOO and FOO Order 
transactions in Non-Penny Interval Classes is reasonable, equitably 
allocated and not unfairly discriminatory because the Exchange believes 
this change may encourage additional Floor Broker liquidity in Non-
Penny Interval Classes. The Exchange believes additional liquidity in 
Non-Penny Interval Classes, to the extent the proposed change 
accomplishes this goal, may benefit all

[[Page 66178]]

Floor Participants because it will attract additional liquidity to BOX 
by providing more trading opportunities. Further, additional liquidity 
helps contribute to a robust trading environment on the BOX Trading 
Floor.
    The Exchange believes the proposed increased Floor Broker enhanced 
rebate in Non-Penny Interval Classes is equitable and not unfairly 
discriminatory because it will apply equally to all Floor Brokers who 
submit orders in Non-Penny Interval Classes on the Trading Floor and 
have those orders trade with a Floor Market Maker. The Exchange 
believes the Floor Broker enhanced rebate is consistent with Section 
6(b)(4) of the Act \12\ because it will continue to encourage market 
participants to execute orders on the Trading Floor. The Exchange 
believes that the Floor Broker enhanced rebate could continue to 
improve liquidity on BOX to the benefit of all market participants. The 
Exchange notes that providing enhanced rebates to certain market 
participants is not new or novel. BOX currently provides Floor Broker 
enhanced rebates in the Fee Schedule.\13\ Additionally, Sapphire 
provides a Floor Broker Breakup Credit of $0.25 for QFO and cQFO 
transactions in Non-Penny Classes.\14\
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    \12\ 15 U.S.C. 78f(b)(4).
    \13\ See Fee Schedule Section V.C.
    \14\ See supra note 9.
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    In addition, the proposal is also consistent with Section 6(b)(5) 
of the Act \15\ because it perfects the mechanisms of a free and open 
market and a national market system and protects investors and the 
public interest because it applies equally to all eligible Floor Broker 
QOO and FOO Orders and access to the Exchange is offered on terms that 
are not unfairly discriminatory.
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    \15\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes it is equitable to apply the proposed 
enhanced rebate only to Floor Brokers and not Floor Market Makers. 
Floor Market Makers represent their own interest on the Trading Floor 
and, therefore, the Exchange believes these market participants may not 
need a similar incentive. Additionally, Floor Market Makers may choose 
to conduct their business on a trading floor or in an electronic 
market, unlike Floor Brokers, who have a business model that is 
naturally tied to the physical trading space. The Exchange believes the 
proposed rule change is equitable because the proposed rebate is based 
on the amount and type of business transacted on BOX, and Floor Brokers 
may elect to earn the proposed enhanced rebate if they choose. The 
Exchange also believes that providing the proposed rebate to Floor 
Brokers is equitable because it is intended to support Floor Brokers' 
role in facilitating the execution of open outcry orders, a function 
which benefits all market participants on the Trading Floor.

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.
Intermarket Competition
    The proposal does not impose an undue burden on intermarket 
competition. The Exchange believes its proposal remains competitive 
with other options exchanges that charge similar fees and provide 
rebates and this proposal will offer market participants with another 
choice of where to transact options.\16\ The Exchange notes that it 
operates in a highly competitive market in which market participants 
can readily favor competing venues if they deem fee levels at a 
particular venue to be excessive, or rebate opportunities available at 
other venues to be more favorable. In such an environment, the Exchange 
must continually adjust its fees and rebates to remain competitive with 
other exchanges. Because competitors are free to modify their own fees 
or rebates in response, and because market participants may readily 
adjust their order routing practices, the Exchange believes that the 
degree to which fee and rebate changes in this market may impose any 
burden on competition is extremely limited. The Exchange believes that 
the proposed rule change reflects this competitive environment because 
it modifies the Exchange's fees and rebates in a manner designed to 
continue to incentivize participants on the Trading Floor to direct 
trading interest to BOX, to provide liquidity and to attract additional 
order flow. For the reasons described above, the Exchange believes that 
the proposed rule change reflects this competitive environment.
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    \16\ See supra notes 8 and 9.
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Intra-Market Competition
    The proposal does not impose an undue burden on intra-market 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. The Exchange believes that the proposed change 
would encourage the submission of additional liquidity to a public 
exchange, thereby promoting market depth, price discovery and 
transparency and enhancing order execution opportunities for all market 
participants. As a result, the Exchange believes that the proposed 
change furthers the Commission's goal in adopting Regulation NMS of 
fostering integrated competition among orders. The proposed changes are 
designed to attract additional order flow to the Trading Floor.
    The Exchange believes that the proposed fee assessed to Floor 
Market Maker orders in Non-Penny Interval Classes and the proposed 
enhanced Floor Broker rebate in Non-Penny Interval Classes would 
encourage Floor Broker open outcry order flow and would not 
disincentivize Floor Market Maker activity on the Trading Floor. The 
Exchange does not believe that Floor Market Makers will be discouraged 
from transacting on the Trading Floor, as Floor Market Makers trade for 
their own accounts and benefit from having access to interact with 
orders that are made available in open outcry on the Trading Floor. The 
Exchange also believes that Floor Market Maker fees relative to other 
market participants do not impose an undue burden on competition 
because Floor Market Makers are not obligated to engage in transactions 
on the Trading Floor. To the extent that there is an additional 
competitive burden on Floor Market Makers, the Exchange believes that 
any such burden would be appropriate because Floor Brokers serve an 
important function in facilitating the execution of orders and price 
discovery for all market participants. Further, to the extent this 
proposal is successful, it will increase trading opportunities for 
Floor Market Makers because Floor Market Makers trade for their own 
accounts and benefit from having the opportunity to interact with 
orders that are made available in open outcry on the Trading Floor. 
Greater liquidity benefits all market participants on BOX and increased 
order flow would increase opportunities for execution of other trading 
interest. The proposed modifications would apply and be available to 
all similarly-situated market participants that execute open outcry 
orders on the Trading Floor, and, accordingly, the proposed changes 
would not impose a disparate burden on competition among market 
participants on BOX.

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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Exchange Act \17\ and Rule 19b-4(f)(2) 
thereunder,\18\ because it establishes or changes a due, or fee.
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    \17\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \18\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend the rule 
change if it appears to the Commission that the action is necessary or 
appropriate in the public interest, for the protection of investors, or 
would otherwise further the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

    <bullet> Use the Commission's internet comment form (<a href="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#93e1e6fff6bef0fcfefef6fde7e0d3e0f6f0bdf4fce5"><span class="__cf_email__" data-cfemail="4230372e276f212d2f2f272c3631023127216c252d34">[email&#160;protected]</span></a>. Please include 
file number SR-BOX-2026-20 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-2026-20. 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-2026-20 and should be submitted on 
or before November 9, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-21245 Filed 10-16-26; 8:45 am]
BILLING CODE 8011-01-P


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