Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 10177 

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

12 17 CFR 240.19b–4(f)(6)(iii). As required under 

Rule 19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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. 

13For 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 

15 U.S.C. 78c(f). 14 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

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 for 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 11 and Rule 19b–4(f)(6)(iii) 

thereunder.12

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest, as it 

will allow the obvious error pilot 

program to continue uninterrupted 

while the industry gains further 

experience operating under the Plan, 

and avoid any investor confusion that 

could result from a temporary 

interruption in the pilot program. For 

this reason, the Commission designates 

the proposed rule change to be operative 

upon filing.13

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 

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 rulecomments@sec.gov. Please include File 

Number SR–ISEGemini–2015–05 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISEGemini–2015–05. 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 Web site (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 Web site 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

ISEGemini–2015–05, and should be 

submitted on or before March 18, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03822 Filed 2–24–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74306; File No. SR–BOX– 

2015–13] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Extend 

the Pilot Program That Suspends 

Certain Obvious Error Provisions 

During Limit Up-Limit Down States in 

Securities That Underlie Options 

Traded on the Exchange 

February 19, 2015. 

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 February 

18, 2015, BOX Options 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

Interpretive Material 1 to Rule 7080 to 

extend, through October 23, 2015, the 

pilot program that suspends certain 

obvious error provisions during limit 

up-limit down states in securities that 

underlie options traded on the 

Exchange. 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 Web 

site 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 

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. 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
10178 Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 

3The dataset will include the options for each 

underlying security that reaches a limit or straddle 

state and has at least one (1) trade on the Exchange 

during the straddle or limit state. For each of those 

options affected the data record will contain the 

stock symbol, option symbol, time at the start of the 

straddle or limit state, an indicator for whether it 

is a straddle or limit state. For activity on the 

Exchange the data record will contain the executed 

volume, time-weighted quoted bid-ask spread, timeweighted average quoted depth at the bid, timeweighted average quoted depth at the offer, high 

execution price, low execution price, number of 

trades for which a request for review for error was 

received during straddle or limit states, an indicator 

variable for whether those options outlined above 

have a price change exceeding 30% during the 

underlying stock’s straddle or limit state compared 

to the last available option price as reported by 

OPRA before the start of the straddle or limit state 

(1 if observe 30% and 0 otherwise), and another 

indicator variable for whether the option price 

within five minutes of the underlying stock leaving 

straddle or limit state (or halt if applicable) is 30% 

away from the price before the start of the straddle 

or limit state. 

4 15 U.S.C. 78f(b). 

5 15 U.S.C. 78f(b)(5). 

6See Securities Exchange Act Release No. 74110 

(January 21, 2015), 80 FR 4321 (January 27, 2015) 

(Joint Industry Plan; Notice of Filing of the Eighth 

Amendment to the National Market System Plan to 

Address Extraordinary Market Volatility). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6)(iii). As required under 

Rule 19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to extend 

through October 23, 2015 the pilot that 

permits the Exchange to suspend certain 

provisions in BOX Rule 7170 (Obvious 

and Catastrophic Errors) during limit 

up-limit down states in securities that 

underlie options traded on the Exchange 

(‘‘Pilot’’). The Pilot is currently 

scheduled to expire on February 20, 

2015. 

The Pilot allows the Exchange to 

exclude transactions executed during a 

Limit State or Straddle State from 

provisions in BOX Rule 7170. This does 

not include Rule 7170(e) and (f), which 

specify when a trade resulting from an 

erroneous print or quote in the 

underlying security may be adjusted or 

busted. 

The remaining provisions in BOX 

Rule 7170 provide a process by which 

a transaction may be busted or adjusted 

when the execution price of a 

transaction deviates from the option’s 

theoretical price by a certain amount. 

Under these provisions, the theoretical 

price is the national best bid price for 

the option with respect to a sell order 

and the national best offer for the option 

with respect to a buy order. During a 

Limit State or Straddle State, options 

prices may deviate substantially from 

those available prior to or following the 

limit state. Consequently, the Exchange 

believed that these provisions would be 

impracticable given the lack of a reliable 

national best bid or offer in the options 

market during Limit States and Straddle 

States, and could produce undesirable 

effects. 

The Exchange proposes to extend the 

operation of this Pilot to analyze the 

impact of the Limit and Straddle States. 

The Exchange will also continue to 

evaluate whether adopting a provision 

for reviewing trades on its own motion 

during Limit and Straddle States is 

necessary and appropriate. 

Additionally, the Exchange represents 

that it will conduct its own analysis 

concerning the elimination of the 

obvious error rule during Limit and 

Straddle States and agrees to provide 

the Commission with relevant data to 

assess the impact of the Pilot. As part of 

its analysis, the Exchange will evaluate 

(1) the options market quality during 

Limit and Straddle States, (2) assess the 

character of incoming order flow and 

transactions during Limit and Straddle 

States, and (3) review any complaints 

from members and their customers 

concerning executions during Limit and 

Straddle States. The Exchange also 

agrees to provide to the Commission 

data requested to evaluate the impact of 

the elimination of the obvious error 

rule, including data relevant to 

assessing the various analyses noted 

above. 

Specifically, the Exchange agrees to 

provide the following data to the 

Commission and the public to help 

evaluate the impact of the Pilot. By May 

29, 2015 the Exchange shall provide an 

assessment relating to the impact of the 

Plan and calibration of the Percentage 

Parameters. On a monthly basis, the 

Exchange shall provide both the 

Commission and public a dataset 

containing the data for each Straddle 

and Limit State in optionable stocks.3

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,4

in general, and Section 6(b)(5) of the 

Act,5 in particular, in that it is designed 

to foster cooperation and coordination 

with persons engaged in regulating, 

clearing, settling, processing 

information with respect to, and 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism for a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. In particular, the 

proposed extension will allow the Pilot 

to remain in effect until the end of the 

pilot period of the Plan to Address 

Extraordinary Market Volatility 

(‘‘Plan’’).6 The Exchange believes that it 

continues to be necessary and 

appropriate in the interest of promoting 

fair and orderly markets to exclude 

transactions executed during a Limit 

State or Straddle State from the 

provision of BOX Rule 7170. 

Specifically the Exchange believes the 

application of the current rule will be 

impracticable given the lack of a reliable 

national best bid or offer in the options 

market during Limit States and Straddle 

States, and that the resulting actions 

(i.e., busted trades or adjusted prices) 

may not be appropriate given market 

conditions. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

Because the proposed rule change 

does not impose any new or additional 

burden on BOX Options Participants, 

and only extends the current Pilot, 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 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 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 7 and Rule 19b–4(f)(6)(iii) 

thereunder.8

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest, as it 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 10179 

9For 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 

15 U.S.C. 78c(f). 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

will allow the obvious error pilot 

program to continue uninterrupted 

while the industry gains further 

experience operating under the Plan, 

and avoid any investor confusion that 

could result from a temporary 

interruption in the pilot program. For 

this reason, the Commission designates 

the proposed rule change to be operative 

upon filing.9

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 

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–2015–13 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–BOX–2015–13. 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 Web site (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 Web site 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; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–BOX– 

2015–13, and should be submitted on or 

before March 18, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03814 Filed 2–24–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74310; File No. SR–BX– 

2015–010] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Modify and 

Reorganize Chapter VI (Trading 

Systems), Section 8 (BX Opening and 

Halt Cross) of the Exchange’s Options 

Rules 

February 19, 2015. 

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 February 

9, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ 

or ‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange proposes to modify and 

reorganize Chapter VI (Trading 

Systems), Section 8 (BX Opening and 

Halt Cross) of the Exchange’s Options 

rules. The proposal would update or 

add Section 1 and Section 8 definitions 

in respect of the BX Opening and Halt 

Cross. The proposal would also make 

changes regarding: The criteria for 

opening of trading or resumption of 

trading after a halt; BX posting on its 

Web site any changes to the 

dissemination interval or prior Order 

Imbalance Indicator; the procedure if 

more than one price exists; the 

procedure if there are unexecuted 

contracts; and the ability of firms to 

elect that orders be returned in symbols 

that were not opened on BX before the 

conclusion of the Opening Order Cancel 

Timer. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqomxbx.cchwallstreet 

.com/, at the principal office of the 

Exchange, and at the Commission’s 

Public Reference Room. 

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 purpose of the proposed rule 

change is to modify BX Chapter VI, 

Section 1 and Section 8 to update or add 

definitions, which include Current 

Reference Price, BX Opening Cross, 

Eligible Interest, Valid Width National 

Best Bid or Offer (‘‘Valid Width 

NBBO’’), Away Best Bid or Offer 

(‘‘ABBO’’), and On the Open Order 

(‘‘OPG’’). The purpose is to also make 

changes regarding: The criteria for 

opening of trading or resumption of 

trading after a halt; BX posting on its 

Web site any changes to the 

dissemination interval or prior Order 

Imbalance Indicator; the procedure if 

more than one price exists; the 

procedure if there are unexecuted 

contracts; and the ability of firms to 

elect that orders be returned in symbols 


asabaliauskas on DSK5VPTVN1PROD with NOTICES