Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 37853 

37 17 CFR 200.30–3(a)(12). 

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). 

5See Miami International Securities Exchange 

LLC (‘‘MIAX’’) Fee Schedule. MIAX charges its 

Members and non-Members a monthly fee of $1,100 

for each 1 Gigabit connection and $5,500 for each 

10 Gigabit connection to MIAX’s Primary/ 

Secondary Facility. The Exchange notes a minor 

difference between MIAX’s connectivity fees and 

BOX’s proposal. MIAX prorates their connectivity 

fees when a Member makes a change to their 

connectivity (by adding or deleting connections). 

BOX notes that, like the Exchange’s Port Fees and 

HSVF Fees, Participants or non-Participants 

connected as of the last trading day of each calendar 

month will be charged the applicable Connectivity 

Fee for that month. 

6The Exchange notes that with the proposed 

change discussed herein, Participants and nonParticipants credentialed to use the HSVF Port who 

also have physical connections to the BOX system 

will be charged for both the HSVF monthly fee and 

the applicable amount for their physical 

connections to BOX. For example, if nonParticipant X is credentialed to use the HSVF Port 

and has three (3) physical non-10Gb connections to 

BOX, non-Participant X will be charged $1,500 for 

the monthly HSVF Port Fee and $3,000 for the three 

non-10Gb physical connections to BOX. 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–MIAX–2018–16 and should 

be submitted on or before August 23, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.37

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–16528 Filed 8–1–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83728; File No. SR–BOX– 

2018–24] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

the Fee Schedule on the BOX Market 

LLC (‘‘BOX’’) Options Facility To 

Establish BOX Connectivity Fees for 

Participants and Non-Participants Who 

Connect to the BOX Network 

July 27, 2018. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 19, 

2018, BOX Options Exchange LLC (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act,3 and Rule 19b–4(f)(2) thereunder,4

which renders the proposal effective 

upon filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

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 

Market LLC (‘‘BOX’’) options facility. 

The text of the proposed rule change is 

available from the principal office of the 

Exchange, at the Commission’s Public 

Reference Room and also on the 

Exchange’s internet website at http://

boxexchange.com. 

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 VI. (Technology Fees) of the 

BOX Fee Schedule to establish BOX 

Connectivity Fees for Participants and 

non-Participants who connect to the 

BOX network. Connectivity fees will be 

based upon the amount of bandwidth 

that will be used by the Participant or 

non-Participant. Further, BOX 

Participants or non-Participants 

connected as of the last trading day of 

each calendar month will be charged the 

applicable Connectivity Fee for that 

month. The Connectivity Fees will be as 

follows: 

Connection type Monthly fees 

Non-10 Gb Connection.$1,000 per connection. 

10 Gb Connection ..... 5,000 per connection. 

The Exchange also proposes to amend 

certain language and numbering in 

Section VI.A to reflect the changes 

discussed above. Specifically, BOX 

proposes to add the title ‘‘Third Party 

Connectivity Fees’’ under Section VI.A. 

Further, the Exchange proposes to add 

Section VI.A.2 which details the 

proposed BOX Connectivity Fees 

discussed above. 

Participants and non-Participants 

with ten (10) Gigabit Connections will 

be charged a monthly fee of $5,000 per 

connection. Participants and nonParticipants with non-10 Gigabits 

Connections will be charged a monthly 

fee of $1,000 per connection. The 

Exchange notes that another exchange 

in the industry has similar connectivity 

fees.5 The Exchange also notes that 

certain fees will continue to be assessed 

by the datacenters and will be billed 

directly to the market participant. 

Next, the Exchange is amending 

Section VI.C. High Speed Vendor Feed 

(‘‘HSVF’’) of the Fee Schedule. 

Specifically, BOX is proposing to delete 

Section VI.C. and reclassify the HSVF 

Connection as a Port Fee. The Exchange 

believes this reclassification is more 

accurate, as HSVF subscription is not 

dependent on a physical connection to 

the Exchange. Instead, subscribers must 

be credentialed by BOX to receive the 

HSVF. The HSVF Fee will remain 

unchanged, BOX will assess a HSVF 

Port Fee of $1,500 per month 6 for each 

month a Participant or non-Participant 

is credentialed to use the HSVF Port. 

The Exchange notes that another 


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37854 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 

7See Cboe Data Services, LLC. (‘‘Cboe CDS’’) Fee 

Schedule. Cboe CDS charges its Customers that 

receive data through a direct connection to CDS or 

through a connection to CDS provided by an 

extranet provider $500 per port per month. Cboe 

CDS’s port fee applies to receipt of any Cboe 

Options data feed but is only assessed once per data 

port. In addition to the data port fee, Cboe Exchange 

Inc. (‘‘Cboe’’) charges connectivity fees based on the 

bandwidth used to connect to the Exchange to 

receive such data. See Cboe Fee Schedule. 

8 15 U.S.C. 78f(b)(4) and (5). 

9See supra note 7. 

10 Id. 

11 15 U.S.C. 78s(b)(3)(A)(ii). 

12 17 CFR 240.19b–4(f)(2). 13 17 CFR 200.30–3(a)(12). 

exchange in the industry charges similar 

fees.7

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,8 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees, and other 

charges among BOX Participants and 

other persons using its facilities and 

does not unfairly discriminate between 

customers, issuers, brokers or dealers. 

The Exchange believes that the 

proposed Connectivity Fees in general 

constitute an equitable allocation of 

fees, and are not unfairly 

discriminatory, because they allow the 

Exchange to recover costs associated 

with offering access through the 

network connections. The proposed 

Connectivity Fees are also expected to 

offset the costs BOX incurs in 

maintaining, and implementing ongoing 

improvements to the trading systems, 

including connectivity costs, costs 

incurred on software and hardware 

enhancements and resources dedicated 

to software development, quality 

assurance, and technology support. The 

Exchange believes that its proposed fees 

are reasonable in that they are 

competitive with those charged by 

another exchange. Further, the 

Exchange believes that the proposed 

Connectivity Fees are not unfairly 

discriminatory as they are assessed to 

all market participants who wish to 

connect to the BOX network. 

The Exchange believes that the 

proposed HSVF Port Fee is reasonable 

as it is similar to fees assessed at 

another exchange in the industry.9

Further, the Exchange believes that 

charging Participants and nonParticipants for both the HSVF monthly 

fee and applicable physical connection 

fees as outlined in the example above is 

reasonable as it is in line with another 

exchange in the industry.10 Further, the 

Exchange believes that the proposed 

change is equitable and not unfairly 

discriminatory because it allows the 

Exchange to recoup ongoing 

expenditures made by the Exchange in 

order to offer such services to 

Participants and non-Participants. 

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. Unilateral 

action by BOX in establishing fees for 

services provided to its Participants and 

others using its facilities will not have 

an impact on competition. As a small 

Exchange in the already highly 

competitive environment for options 

trading, BOX does not have the market 

power necessary to set prices for 

services that are unreasonable or 

unfairly discriminatory in violation of 

the Exchange Act. BOX’s proposed fees, 

as described herein, are comparable to 

and generally lower than fees charged 

by other options exchanges for the same 

or similar services. Lastly, the Exchange 

believes the proposed change will not 

impose a burden on intramarket 

competition as the proposed fees are 

applicable to all Participants and others 

using its facilities that connect to BOX. 

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 11

and Rule 19b–4(f)(2) thereunder,12

because it establishes or changes a due, 

or fee. 

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 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BOX–2018–24 on the subject line. 

Paper Comments 

• 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–2018–24. 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 (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–BOX–2018–24, and should 

be submitted on or before August 23, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2018–16531 Filed 8–1–18; 8:45 am] 

BILLING CODE 8011–01–P 


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