2692 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

21 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3A ‘‘Bona fide Error’’ is defined as (i) the 

inaccurate conveyance or execution of any term of 

an order including, but not limited to, price, 

number of shares or other unit of trading; 

identification of the security; identification of the 

account for which securities are purchased or sold; 

lost or otherwise misplaced order tickets; short 

sales that were instead sold long or vice versa; or 

the execution of an order on the wrong side of a 

market; (ii) the unauthorized or unintended 

purchase, sale, or allocation of securities, or the 

failure to follow specific client instructions; (iii) the 

incorrect entry of data into relevant systems, 

including reliance on incorrect cash positions, 

withdrawals, or securities positions reflected in an 

account; or (iv) a delay, outage, or failure of a 

communication system used to transmit market 

data prices or to facilitate the delivery or execution 

of an order. See Securities Exchange Act Release 

No. 55884 (June 8, 2007), 72 FR 32926 (June 14, 

2007) (Order Exempting Certain Error Correction 

Transactions from Rule 611 of Regulation NMS 

under the Securities Exchange Act of 1934). 

All submissions should refer to File 

Number SR–PEARL–2017–40. 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 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–PEARL–2017–40 and 

should be submitted on or before 

February 8, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00724 Filed 1–17–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82491; File No. SR–BOX– 

2018–01] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

BOX Rule 3030 To Establish Rules 

Related to the Use of Floor Broker 

Error Accounts 

January 11, 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 January 2, 

2018, 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 

BOX Rule 3030 to establish rules related 

to the use of Floor Broker error 

accounts. 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://boxoptions.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. 

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 

BOX Rule 3030 to establish rules related 

to the use of Floor Broker error 

accounts. First, the Exchange proposes 

that each Participant who conducts a 

business as a Floor Broker on the 

Exchange and who is not self-clearing 

must establish and maintain an account 

with a clearing Participant of the 

Exchange, for the sole purpose of 

carrying positions resulting from bona 

fide errors made in the course of its 

floor brokerage business.3 Further, with 

respect to Floor Brokers only, such an 

account for option transactions must be 

maintained with an entity that is also a 

member of the Options Clearing 

Corporation. 

In practice, a Floor Broker will 

remedy a bona fide error by entering a 

subsequent trade on behalf of the 

customer on the correct terms of the 

original order. These types of 

transactions are transactions which 

broker-dealers place to remedy the 

execution of customer orders that have 

been placed in error or mishandled due 

to an error involving any term of an 

order, including but not limited to, for 

example, price, number of contracts, 

identification of security, or execution 

of a transaction on the wrong side of the 

market. 

Next, the Exchange proposes that each 

Participant which conducts business as 

a Floor Broker must make available to 

the Exchange, upon request, accurate 

and complete records of all trades 

cleared in such Participant’s error 

account. These records must include the 

following audit trail data elements: (1) 

Name or identifying symbol of the 

security; (2) number of shares or 

quantity of security; (3) transaction 

price; (4) time of trade execution; (5) 

executing Floor Broker badge number, 

or alpha symbol as may be used from 

time to time, in regard to its side of the 

contract; (6) executing Floor Broker 

badge number, or alpha symbol as may 

be used from time to time, of the contra 

side to the contract; (7) clearing firm 

number, or alpha symbol as may be 

used from time to time, in regard to its 

side of the contract; (8) clearing firm 

number, or alpha symbol as may be 

used from time to time, in regard to the 

contra side of the contract; (9) 

designation of whether the account for 

which the order was executed was that 

of a Participant; (10) the nature and 

amount of the error; (11) the Participant 

that cleared the error trade on the 

Participant’s behalf; (12) an explanation 

of the means by which the Participant 

resolved the error; (13) the aggregate 

amount of liability that the Participant 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 2693 

4See NYSE Arca, Inc. (‘‘NYSE Arca’’) Rule 11.17. 

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

6 15 U.S.C. 78f(b)(5). 

7See supra note 4. 

8 17 CFR 240.19b–4(f)(6). 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. 

incurred and: (i) Had outstanding as of 

the time each such error trade entry was 

recorded or (ii) had cleared by other 

Participant. The Exchange believes that 

it is important for the Participant to 

provide the above information because 

it will aid the Exchange in the 

surveillance of error account activity. 

The Exchange notes that the proposed 

change is substantially similar to rules 

at another options exchange with an 

open outcry trading floor.4

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),5 in general, and Section 6(b)(5) 

of the Act,6 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, to 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general to protect investors and the 

public interest. Additionally, the 

Exchange believes that the proposed 

rule is consistent with the Act because 

it does not unfairly discriminate 

between Public Customers, Professional 

Customers, Broker Dealers and Market 

Makers as the rule applies to all 

Participants equally. The Exchange 

believes that the proposal allows Floor 

Brokers the flexibility to execute orders 

that correct bona fide errors out of the 

Floor Broker’s error account, ensuring 

that customer orders (which were 

previously entered in error) are 

executed, thereby protecting investors 

and the public interest by ensuring that 

customer orders are executed properly. 

Further, the Exchange believes the 

proposed rule promotes just and 

equitable principles of trade by ensuring 

customer orders are not harmed for 

order entry errors. The Exchange does 

not believe the proposed rule is unfairly 

discriminatory toward customers, 

issuers, or brokers because the proposed 

rule simply sets forth the process for 

floor brokers to correct certain bona fide 

errors. As discussed above, the 

Exchange believes that the proposed 

change is appropriate as it is similar to 

rules in place at another options 

exchange with an open outcry trading 

floor.7

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. More 

specifically, the Exchange does not 

believe that the proposed rule change 

will impose any burden on intramarket 

competition because it will be 

applicable to all Floor Brokers. In 

addition, the Exchange does not believe 

that the proposed change will impose 

any burden on intermarket competition 

because proposed Rule 3030 simply 

provides a mechanism for correcting 

errors. Further, the Exchange believes 

that the proposed change does not 

impose a burden on competition 

because it simply sets forth the process 

for Floor Brokers to correct bone fide 

errors on the Trading Floor. 

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 foregoing 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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act and Rule 19b– 

4(f)(6) thereunder.8

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–2018–01 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–2018–01. 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–2018–01, and should 

be submitted on or before February 8, 

2018. 


sradovich on DSK3GMQ082PROD with NOTICES
2694 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Notices 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 81976 

(October 30, 2017), 82 FR 51312 (November 3, 

2017)(SR–MIAX–2017–43). 4 15 U.S.C. 78f(b). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–00725 Filed 1–17–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82488; File No. SR–MIAX– 

2018–01] 

Self-Regulatory Organizations; Miami 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend MIAX Options Rules 

700, 1308, and 1322 

January 11, 2018. 

Pursuant to the provisions of 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 January 3, 2018, Miami International 

Securities Exchange, LLC (‘‘MIAX 

Options’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) a 

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 Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

make minor corrective changes to 

Exchange Rule 700, Exercise of Option 

Contracts; Rule 1308, Supervision of 

Accounts; and Rule 1322, Options 

Communications. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/ at MIAX Options’ principal 

office, 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 Exchange proposes to amend 

Exchange Rule 700, Exercise of Option 

Contracts; Rule 1308, Supervision of 

Accounts; and Rule 1322, Options 

Communications, to make minor nonsubstantive corrective changes. 

First, the Exchange proposes to 

amend Exchange Rule 700(l) to make 

minor typographical corrections to 

cross-references in subsections (3), (5), 

and (7). The Exchange recently 

amended Rule 700 by renumbering 

paragraph (h) as paragraph (l).3

However, the Exchange inadvertently 

left in cross-references to Rule 700(h) in 

subsections (3), (5), and (7). Specifically, 

Rule 700(l)(3) currently reads ‘‘[t]he 

Exchange may determine to extend the 

applicable deadline for the delivery of 

‘‘exercise advice’’ and ‘‘advice cancel’’ 

notifications pursuant to this paragraph 

(h) if unusual circumstances are 

present.’’ The Exchange proposes to 

correct the cross-reference from 

‘‘paragraph (h)’’ to ‘‘paragraph (l).’’ Rule 

700(l)(5) currently reads ‘‘[t]he failure of 

any Member to follow the procedures in 

this paragraph (h) may result in the 

assessment of a fine, which may include 

but is not limited to disgorgement of 

potential economic gain obtained or loss 

avoided by the subject exercise, as 

determined by the Exchange.’’ The 

Exchange proposes to correct the crossreference from ‘‘paragraph (h)’’ to 

‘‘paragraph (l).’’ Furthermore, Rule 

700(l)(7) currently reads ‘‘[t]he 

procedures set forth in subparagraphs 

(1)–(2) of this subparagraph (h) do not 

apply (i) on the business day prior to 

expiration in series expiring on a day 

other than a business day or (ii) on the 

expiration day in series expiring on a 

business day.’’ The Exchange proposes 

to correct the cross-reference from 

‘‘subparagraph (h)’’ to ‘‘subparagraph 

(l).’’ The Exchange is not proposing any 

change to the wording of the Rule or to 

its application. The Exchange is only 

proposing to amend Rule 700(l) to 

renumber incorrect cross-references in 

the text of the Rule. 

Second, the Exchange proposes to 

amend Exchange Rule 1308, 

Supervision of Accounts, to make minor 

typographical corrections to crossreferences in the rule text. Specifically, 

Rule 1308(g)(6) cross-references Rule 

1307(g) and 1307(h), which should 

instead cross-reference Rule 1308(g) and 

1308(h) respectively. Rule 1308(g)(6) 

currently reads ‘‘[a] Member that 

specifically includes its options 

compliance program in a report that 

complies with substantially similar 

requirements of the New York Stock 

Exchange or FINRA will be deemed to 

have met the requirements of this Rule 

1307(g) and Rule 1307(h).’’ The 

Exchange proposes to correct this 

language to instead cross-reference 

‘‘Rule 1308(g)’’ and ‘‘Rule 1308(h)’’ 

respectively. Additionally, Rule 1308(h) 

cross-references Rule 1307(g), which 

should instead cross-reference Rule 

1308(g). Rule 1308(h) currently reads 

‘‘[b]y April 1 of each year, each Member 

shall submit a copy of the report that 

Rule 1307(g) requires the Member to 

prepare . . .’’ The Exchange proposes to 

correct the cross-reference from ‘‘Rule 

1307(g)’’ to Rule ‘‘1308(g).’’ 

Finally, the Exchange proposes to 

amend Exchange Rule 1322, Options 

Communications, to make minor 

typographical corrections and to make 

corrections to cross-references in the 

rule text. Specifically, Rule 

1322(e)(1)(ii) is currently missing the 

word ‘‘and’’ after the semicolon in this 

section. Therefore, the Exchange 

proposes to amend Rule 1322(e)(1)(ii) to 

read ‘‘[c]ontain contact information for 

obtaining a copy of the ODD; and.’’ 

Additionally, the Exchange proposes to 

correct a typographical error in Rule 

1322(e)(1)(iii). Currently, this section 

contains both a period and a semicolon 

at the end of the text. The Exchange 

proposes to remove the semicolon and 

leave only the period. Additionally, the 

Exchange proposes to make minor 

typographical changes to a crossreference in Rule 1322(f). Currently, this 

section references ‘‘Rule 1322(e)(1)(B).’’ 

However, that is an erroneous crossreference and the Exchange proposes to 

replace it with a cross-reference to 

‘‘Rule 1322(e)(1)(ii).’’ The Exchange 

notes that this does not change the 

wording of the rule or its application, 

but only corrects the cross-reference to 

properly conform to the hierarchical 

heading scheme used throughout the 

Exchange’s rulebook. 

2. Statutory Basis 

The Exchange believes that its 

proposed rule change is consistent with 

Section 6(b) of the Act 4 in general, and 

furthers the objectives of Section 6(b)(5) 


sradovich on DSK3GMQ082PROD with NOTICES