Federal Register / Vol. 87, No. 54 / Monday, March 21, 2022 / Notices 16039 

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). 

5A ‘‘short stock interest strategy’’ is defined as a 

transaction done to achieve a short stock interest 

arbitrage involving the purchase, sale, and exercise 

of in-the-money options of the same class. A ‘‘long 

stock interest strategy’’ is defined as a transaction 

done to achieve long stock involving the purchase, 

sale, and exercise of in-the-money options of the 

same class. A ‘‘merger strategy’’ is defined as 

transactions done to achieve a merger arbitrage 

involving the purchase, sale and exercise of options 

of the same class and expiration date, each executed 

prior to the date on which shareholders of record 

are required to elect their respective form of 

consideration, i.e., cash or stock. A ‘‘reversal 

strategy’’ is established by combining a short 

security position with a short put and a long call 

position that shares the same strike and expiration. 

A ‘‘conversion strategy’’ is established by 

combining a long position in the underlying 

security with a long put and a short call position 

that shares the same strike and expiration. A ‘‘jelly 

roll strategy’’ is created by entering into two 

separate positions simultaneously. One position 

involves buying a put and selling a call with the 

same strike price and expiration. The second 

position involves selling a put and buying a call, 

with the same strike price, but with a different 

expiration from the first position. A ‘‘box spread 

strategy’’ is a strategy that synthesizes long and 

short stock positions to create a profit. Specifically, 

a long call and short put at one strike is combined 

with a short call and long put at a different strike 

to create synthetic long and synthetic short stock 

positions, respectively. 

6A ‘‘dividend strategy’’ is defined as a transaction 

done to achieve a dividend arbitrage involving the 

purchase, sale and exercise of in-the-money options 

of the same class, executed the first business day 

prior to the date on which the underlying stock goes 

ex-dividend. 

7The Exchange notes that the daily fee cap for 

dividend strategies is similar to a fee cap at another 

options exchange in the industry. See Nasdaq Phlx 

LLC (‘‘Phlx’’) Fee Schedule. On Phlx, Lead Marker 

Makers, Market Makers, Professionals, Firms and 

Broker-Dealers receive a fee cap of $1,100 for 

dividend strategies executed on the same trading 

day in the same options class when such members 

are trading in their own proprietary account or on 

an agency basis. 

8See NYSE American LLC (‘‘NYSE American’’) 

Options Fee Schedule Section I.J. At NYSE 

American, there is a $1,000 cap on transaction fees 

for options Strategy Executions involving reversals 

and conversions, box spreads, short stock interest 

spreads, merger spreads, and jelly rolls; however, 

the cap is reduced to $200 on transactions fees for 

qualifying strategies traded on the same trading day 

for those ATP Holders that trade at least 25,000 

monthly billable contract sides in qualifying 

Strategy Executions. See also Nasdaq Phlx LLC 

(‘‘Phlx’’) Pricing Schedule, Options 7, Section 4. 

Phlx offers merger, short stock interest and box 

spread strategy cap, which is applicable to Lead 

Market Makers, Market Makers, Professionals, 

Firms and Broker-Dealers, of $1,000 (daily) if more 

than one class of options, and $700 (daily) if only 

in a single class of options. Further, Phlx offers a 

daily strategy cap for reversal and conversion and 

jelly roll strategies on the same trading day of $200 

(daily). 

9 15 U.S.C. 78f(b)(4) and (5). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94416; File No. SR–BOX– 

2022–09] 

Self-Regulatory Organizations; BOX 

Exchange LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fee 

Schedule on the BOX Options Market 

LLC Facility 

March 15, 2022. 

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 1, 

2022, BOX Exchange LLC (‘‘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 to amend 

Section II.D (Strategy QOO Order Fee 

Cap and Rebate) on the BOX Options 

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 II.D (Strategy QOO Order Fee 

Cap and Rebate) of the BOX Fee 

Schedule. Specifically, the Exchange 

proposes to decrease the daily fee cap 

for short stock interest, long stock 

interest, merger, reversal, conversion, 

jelly roll, and box spread strategies 5

executed on the same trading day from 

$1,000 to $500. Lastly, the Exchange 

notes that the daily fee cap for dividend 

strategies 6 will continue to be $1,000 

per day per customer. As such, the 

Exchange proposes to add clarifying 

language to the Fee Schedule that states 

that for dividend strategies, the rebate of 

$500 per customer will apply once the 

$1,000 fee cap is met.7

The intent of the above change is to 

increase order flow in certain strategy 

QOO Orders on the BOX Trading Floor, 

which will benefit all market 

participants. The Exchange notes that 

these changes will apply equally to all 

Participants, regardless of Participant 

type or size of the Participant. The 

Exchange notes that similar fee caps 

exist at other options exchanges for 

these order types.8

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,9 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’s proposal to decrease 

the daily fee cap for short stock interest, 

long stock interest, merger, reversal, 

conversion, jelly roll, and box spread 

strategies is reasonable as the Exchange 

believes it will incentivize Participants 

to execute a greater number of these 

strategy types on the BOX Trading Floor 

for the opportunity to qualify for the 

lower daily strategy cap. Strategy fee 

caps limit fees for Participants executing 

these strategy types. 

Further, the Exchange’s proposal to 

decrease the daily fee cap for short stock 

interest, long stock interest, merger, 

reversal, conversion, jelly roll, and box 

spread strategies is equitable and not 

unfairly discriminatory because all 

account types may qualify for the 

strategy cap provided those strategies 

are executed on the same trading day. 

As discussed above, the Exchange 

believes the proposed change will 

incentivize order flow in certain QOO 

Strategy Orders, and the Exchange 

believes that the decreased fee cap will 


khammond on DSKJM1Z7X2PROD with NOTICES
16040 Federal Register / Vol. 87, No. 54 / Monday, March 21, 2022 / Notices 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

11 17 CFR 240.19b–4(f)(2). 

12 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

result in increased participation in these 

types of orders on the BOX Trading 

Floor. As such, the Exchange believes 

that increased participation on the 

Trading Floor will result in increased 

liquidity on the BOX Floor which will 

benefit all market 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. The 

Exchange does not believe that the 

proposed change burdens competition 

and will instead help promote 

competition by continuing to provide 

incentives for market participants to 

submit strategy orders to the BOX 

Trading Floor. Further, the Exchange 

does not believe that the proposed 

change will impose an undue burden on 

intra-market competition because all 

Floor Participants are subject to the 

proposed change, regardless of account 

type. 

Finally, the Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily favor competing venues. In such 

an environment, the Exchange must 

continually review, and consider 

adjusting, its fees and credits to remain 

competitive with other exchanges. For 

the reasons described above, the 

Exchange believes that the proposed 

rule change reflects this competitive 

environment. 

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 10

and Rule 19b–4(f)(2) thereunder,11

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–2022–09 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–2022–09. 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–2022–09, and should 

be submitted on or before April 11, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–05839 Filed 3–18–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94415; File No. SR– 

NYSEAMER–2022–14] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Pilot 

Related to the Market-Wide Circuit 

Breaker in Rule 7.12E 

March 15, 2022. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on March 8, 

2022, NYSE American LLC (‘‘NYSE 

American’’ or 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 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 Substance of 

the Proposed Rule Change 

The Exchange proposes to extend the 

pilot related to the market-wide circuit 

breaker in Rule 7.12E to the close of 

business on April 18, 2022. The 

proposed rule change is available on the 

Exchange’s website at www.nyse.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 

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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 


khammond on DSKJM1Z7X2PROD with NOTICES