17122 Federal Register / Vol. 80, No. 61 / Tuesday, March 31, 2015 / Notices 

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 SR–BOX–2015–03. As noted in the VPR 

Filing, certain aspects of the Program require 

changes to the company governance documents, 

including the acquisition of equity ownership and 

any right related to such ownership, are contingent 

upon Commission approval of a separate company 

governance proposed rule change, which has yet to 

be filed. 

6The Industry ADV for a period is calculated by 

multiplying (i) two (2) times (ii) the quotient of (A) 

the aggregate number of cleared U.S. options 

transactions executed on a U.S. national exchange 

or facility thereof in U.S. listed securities on trading 

days during the period, as reported by the Options 

Clearing Corporation (‘‘OCC’’), divided by (B) the 

number of trading days during the period. A 

‘‘trading day’’ is generally any day on which the 

BOX market is open for business, subject to certain 

qualifications to be defined in the Members 

Agreement. Certain industry transactions are 

excluded from the calculation of Industry ADV as 

described on pages 9—10 of 49 of the VPR Filing. 

7Each VPR also includes 8.5 unvested new Class 

C Membership Units of Holdings. See page 5 of 49 

of the VPR Filing. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid 

control number. 

The public may view the background 

documentation for this information 

collection at the following Web site, 

www.reginfo.gov . Comments should be 

directed to: (i) Desk Officer for the 

Securities and Exchange Commission, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503, 

or by sending an email to: Shagufta_

Ahmed@omb.eop.gov; and (ii) Pamela 

Dyson, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o Remi Pavlik-Simon, 

100 F Street NE., Washington, DC 20549 

or send an email to: PRA_Mailbox@

sec.gov. Comments must be submitted to 

OMB within 30 days of this notice. 

Dated: March 25, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07251 Filed 3–30–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74576; File No. SR–BOX– 

2015–16] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Clarify 

Certain Statements Made in SR–BOX– 

2015–03, a Proposed Rule Change 

Filed by the Exchange on January 9, 

2015 

March 25, 2015. 

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 March 16, 

2015, BOX Options Exchange LLC (the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘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 clarify certain statements made in 

SR–BOX–2015–03, a rule change filed 

by the Exchange on January 9, 2015, to 

implement an equity rights program (the 

‘‘VPR Filing’’). There are no proposed 

changes to any rule text. 

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 

On January 9, 2015, the Exchange 

filed the VPR Filing to implement an 

equity rights program (the ‘‘VPR 

Program’’).5 As provided on page 4 of 49 

of the VPR Filing, Subscribers in the 

VPR Program have the right to acquire 

equity in, and receive distributions 

from, BOX Holdings Group LLC 

(‘‘Holdings’’), an affiliate of the 

Exchange, in exchange for the 

achievement of certain order flow 

volume commitment thresholds on the 

Exchange over a period of five (5) years 

(and a nominal initial cash payment). 

Specifically, each Volume Performance 

Right (‘‘VPR’’) issued to Subscribers 

under the VPR Program includes an 

average daily transaction volume 

commitment (‘‘VPR Volume 

Commitment’’) with respect to 

Qualifying Contract Equivalents (as 

defined on page 6 of 49 of the VPR 

Filing) equal to 0.0055% of the Industry 

ADV 6 for a total of five (5) years.7 The 

calculation of a Contract Equivalent 

depends on the type of account that 

sends the order flow to BOX, each of 

which has a predetermined ratio 

assigned to it under the Program: Public 

Customer (0.71), Market Maker (1.10), 

Broker/Dealer (1.35) and Professional 

Customer (1.35). This predetermined 

ratio is then multiplied by the quantity 

of options contracts executed by the 

Subscriber on BOX for the Subscriber’s 

own or customer account over a certain 

period to determine the number of 

Contract Equivalents attributed to the 

Subscriber for that period. 

In describing how Contract 

Equivalents are calculated in the VPR 

Filing, the Exchange inadvertently used 

the term ‘‘orders’’ to describe the option 

contracts executed by the Subscriber. 

Specifically, on pages 5 and 20–21 of 49 

of the VPR Filing, the Exchange 

explained that the Contract Equivalent 

calculation for each of the four 

categories of account types would be 

based on the quantity of orders 

executed, multiplied by the 

predetermined ratio assigned to each 

category. However, this description was 

intended to convey that, in calculating 

the Contract Equivalent for each of the 

four categories of account types under 

the Program, the Exchange measures the 

number of contracts executed, and then 

multiples the executed contracts by the 

predetermined ratio for the appropriate 

category. Accordingly, if a Subscriber 

were to send a single order of 1,000 

option contracts to the Exchange, and 

all 1,000 option contracts are executed 

on BOX (assuming none are Excluded 

Member Contracts, as defined on pages 

9–10 of the VPR Filing), then the 

number of Contract Equivalents for that 

Subscriber would be calculated by 

multiplying the 1,000 contracts (not the 

single order) by the predetermined ratio 

for the appropriate account type. 

Furthermore, in describing how the 

Contract Equivalent ratio was 

determined for each of the four account 

type categories under the Program, the 

Exchange noted, on pages 6, 16, and 20– 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 61 / Tuesday, March 31, 2015 / Notices 17123 

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

9 15 U.S.C. 78s(b)(3)(A)(ii). 

10 17 CFR 240.19b–4(f)(2). 

21 of 49 of the VPR Filing, that the 

ratios are weighted in accordance with 

the Exchange’s Fee Schedule, such that 

those account types that are charged 

higher fees by the Exchange have 

Contract Equivalent ratios that are 

weighted more heavily. While the 

Exchange believes the operating 

principles of the VPR Program are 

evident from the VPR Filing, we 

understand the description of the 

weight assigned to each predetermined 

Contract Equivalent ratio may be 

confusing, and seek to clarify it. 

Specifically, the Contract Equivalent 

ratios assigned to each of the four 

account types escalate in accordance 

with the fees charged to the same four 

account types in the Exchange’s Fee 

Schedule. Thus, the categories for 

which the Exchange earns the highest 

fees for any executed contract (Broker/ 

Dealer and Professional Customer) also 

have the highest Contract Equivalent 

ratio, and vice versa. Having a higher 

Contract Equivalent ratio requires 

additional contracts to be executed to 

achieve the number of Qualifying 

Contract Equivalents required to meet 

the Subscriber’s VPR Volume 

Commitment. Put another way, having a 

lower Contract Equivalent ratio allows a 

Subscriber to reach their VPR Volume 

Commitment faster as compared to 

submitting contracts with a higher 

Contract Equivalent ratio. Accordingly, 

a Subscriber executing contracts for the 

Broker/Dealer and Professional 

Customer account types will take longer 

to reach their VPR Volume Commitment 

as compared to executing contracts for 

the Market Maker and Public Customer 

account types, in that more executions 

will be required to achieve the VPR 

Volume Commitment because it takes 

1.35 Broker/Dealer or Professional 

Customer executed contracts to equal 

one (1) Qualifying Contract Equivalent. 

In contrast, a Subscriber executing 

contracts for the Public Customer 

account type, for which the Exchange 

earns the lowest fees, will reach their 

VPR Volume Commitment faster as 

compared to executing contracts for the 

Market Maker, Professional Customer 

and Broker/Dealer account types, in that 

less contracts will need to be executed 

on behalf of Public Customer accounts 

than any other type of account in order 

to meet the VPR Volume Commitment 

because it only takes .71 Public 

Customer executed contracts to equal 

one (1) Qualifying Contract Equivalent. 

For example if a Subscriber is trying to 

reach 1000 Qualifying Contract 

Equivalents it would only take 710 

executed Public Customer contracts 

(1000*0.71 = 710) or 1350 executed 

Broker/Dealer contracts (1000*1.35 = 

1350) to reach the 1000 Qualifying 

Contract Equivalents. This example 

illustrates how a Subscriber can reach 

their VPR Volume Commitment faster 

and through fewer transactions by 

executing Public Customer contracts as 

compared to executing Broker/Dealer 

contracts. 

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. In 

particular, the proposed rule change is 

reasonable, equitable and not unfairly 

discriminatory because it proposes to 

clarify aspects of the VPR Filing, 

thereby helping ensure that investors 

and current Subscribers to the VPR 

Program clearly understand how the 

VPR Program operates. In addition, 

because the first quarter of the VPR 

Program has not yet completed as of the 

time of filing this proposed rule change, 

no Quarterly Volume Commitment (as 

defined on page 30 of 49 of the VPR 

Filing) calculations have been made 

under the Program for any Subscribers. 

Accordingly, this proposed rule filing 

should provide current Subscribers will 

sufficient time to resolve any potential 

confusion that stemmed from the 

description of the VPR Program and, 

specifically, the Contract Equivalent 

calculation and Contract Equivalent 

ratios, in the VPR Filing before the first 

Quarterly Volume Commitment under 

the Program is calculated for 

Subscribers. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes that the proposed 

rule change will improve competition 

by clarifying certain aspects of the VPR 

Filing for all market participants. 

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 9 and 

Rule 19b–4(f)(2) thereunder,10 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–2015–16 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–2015–16. 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 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
17124 Federal Register / Vol. 80, No. 61 / Tuesday, March 31, 2015 / Notices 

11 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. 78q–1. 

4 17 CFR 240.17Ad–22. 

5 15 U.S.C. 78q–1(b)(3)(F). 

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; 

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– 

2015–16 and should be submitted on or 

before April 21, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–07257 Filed 3–30–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74583; File No. SR–ICEEU– 

2015–008] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Clearance of New Natural Gas Futures 

Contracts 

March 25, 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 March 18, 

2015, ICE Clear Europe Limited (‘‘ICE 

Clear Europe’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I, II and III 

below, which Items have been prepared 

primarily by ICE Clear Europe. 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 Substance of 

the Proposed Rule Change 

The principal purpose of the 

proposed rule change is to modify the 

ICE Clear Europe Delivery Procedures 

with respect to the settlement of certain 

European natural gas futures contracts 

that are currently traded or will be 

traded on the ICE Endex market and 

cleared by ICE Clear Europe. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, ICE 

Clear Europe included statements 

concerning the purpose of and basis for 

the proposed rule change. The text of 

these statements may be examined at 

the places specified in Item IV below. 

ICE Clear Europe 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 rule amendments 

is to modify the ICE Clear Europe 

Delivery Procedures in connection with 

the launch by the ICE Endex market of 

certain new natural gas futures contracts 

that will be cleared by ICE Clear Europe, 

namely the ICE Endex TTF Natural Gas 

Daily Futures Contracts, ICE Endex 

Gaspool Natural Gas Daily Futures 

Contracts, ICE Endex NCG Natural Gas 

Daily Futures Contracts and ICE Endex 

ZTP Natural Gas Daily Futures 

Contracts (the ‘‘New Futures 

Contracts’’). These contracts are daily 

versions of existing monthly natural gas 

futures contracts traded on ICE Endex 

and cleared by ICE Clear Europe. ICE 

Clear Europe also proposes to make 

clarifying and conforming amendments 

for certain existing natural gas contracts 

that are covered by the Delivery 

Procedures. ICE Clear Europe does not 

otherwise propose to amend its clearing 

rules or procedures in connection with 

the New Futures Contracts. 

The amendments adopt new subparts 

of Parts E, F, G and H of the Delivery 

Procedures, applicable to the ICE Endex 

TTF Natural Gas Daily Futures 

Contracts, ICE Endex Gaspool Natural 

Gas Daily Futures Contracts, ICE Endex 

NCG Natural Gas Daily Futures 

Contracts and ICE Endex ZTP Natural 

Gas Daily Futures Contracts, 

respectively. The amendments add 

references, as appropriate, to the New 

Futures Contracts in the applicable Parts 

of the Delivery Procedures. The 

amendments provide, among other 

matters, specifications for delivery of 

natural gas under a New Futures 

Contract, including relevant definitions 

and a detailed delivery timetable for the 

contracts. The amendments also address 

invoicing and payment for delivery. The 

amendments provide for calculation by 

ICE Clear Europe of buyer’s and seller’s 

security to cover delivery obligations 

and related liabilities, costs or charges, 

as well as procedures to address failed 

deliveries. The revised procedures also 

set out various documentation 

requirements for the relevant parties. In 

addition, changes are made to paragraph 

5.1 of the Delivery Procedures to 

include the New Futures Contracts in 

the list of contracts for which parties 

may nominate transferors and 

transferees to make and take delivery. 

Other changes are made throughout 

the Delivery Procedures to conform the 

names of certain contracts to those used 

in the relevant exchange rules, 

including for the ICE Endex Gaspool 

Natural Gas Futures Contract, ICE Endex 

NCG Natural Gas Futures Contract and 

ICE Endex ZTP Natural Gas Futures 

Contract. (Related changes and 

clarifications to defined terms have also 

been made.) Throughout relevant Parts 

of the Delivery Procedures, references to 

the ‘‘HIT report’’ have been replaced 

with the ‘‘MPFE report’’ (which is the 

current form of futures expiry report 

indicating positions that have gone to 

expiry). Certain drafting clarifications to 

the term ‘‘Invoice Period’’ have been 

made in the Delivery Procedures. 

Changes have also made to the 

settlement timetable for existing ICE 

Futures UK Natural Gas Daily Futures in 

paragraph 5.2 of Part D and the delivery 

documentation requirements table in 

paragraph 8.1 of Part D (including as to 

the timetable and documentation for 

nominations of transferors and 

transferees). Parallel and conforming 

changes have been made in Parts E 

through H for other existing natural gas 

contracts. The existing Schedule of 

Forms and Reports appended to the 

Delivery Procedures has been removed 

as obsolete and unnecessary. 

2. Statutory Basis 

ICE Clear Europe believes that the 

changes described herein are consistent 

with the requirements of Section 17A of 

the Act 3 and the regulations thereunder 

applicable to it, including the standards 

under Rule 17Ad–22,4 and are 

consistent with the prompt and accurate 

clearance of and settlement of securities 

transactions and, to the extent 

applicable, derivative agreements, 

contracts and transactions, the 

safeguarding of securities and funds in 

the custody or control of ICE Clear 

Europe or for which it is responsible 

and the protection of investors and the 

public interest, within the meaning of 

Section 17A(b)(3)(F) of the Act.5 The 

New Futures Contracts have similar 


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