Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 23893 

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

2 17 CFR 240.19b–4. 

3The Exchange notes that BOX Rule 3140 

establishes a limit on the number of option 

contracts of a single class that an Options 

Participant can exercise within any five consecutive 

business days. Exercise limits are fixed by the 

Exchange pursuant to Rule 3140 and vary by class 

of options. See BOX Rule 3140. 

4See Cboe Options Rule 13.15(g)(1). See also 

NYSE American Rule 9217(iii)(17). See also NYSE 

Arca Rule 10.12(k)(i)(21). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34 94729; File No. SR–BOX– 

2022–08] 

Self-Regulatory Organizations; BOX 

Exchange LLC; Notice of Filing of 

Proposed Rule Change To Amend Rule 

12140 (Imposition of Fines for Minor 

Rule Violations), To Expand the List of 

Violations Eligible for Disposition 

Under the Exchange’s Minor Rule 

Violation Plan and Update the Fine 

Schedule Applicable to Certain Minor 

Rule Violations 

April 15, 2022. 

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 March 31, 

2022, BOX Exchange LLC (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 amend 

Rule 12140 (Imposition of Fines for 

Minor Rule Violations), to expand the 

list of violations eligible for disposition 

under the Exchange’s Minor Rule 

Violation Plan (‘‘MRVP’’) and update 

the fine schedule applicable to minor 

rule violations related to certain rule 

violations. 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 purpose of the proposed rule 

change is to amend Rule 12140 

(Imposition of Fines for Minor Rule 

Violations), which governs the 

Exchange’s MRVP, in connection with 

certain minor rule violations, applicable 

fines, as well as other clarifying and 

nonsubstantive changes to improve the 

consistency of the Exchange’s MRVP 

with the MRVPs at other options 

exchanges. Specifically, the proposed 

rule change amends Rule 12140(d) and 

(e) by: (1) Adding certain rule violations 

that the Exchange believes to be minor 

in nature and consistent with violations 

at other options exchange; (2) updating 

the fine schedule applicable to minor 

rule violations related to certain rule 

violations; and (3) making other 

clarifying and nonsubstantive changes. 

The MRVP provides that in lieu of 

commencing a disciplinary proceeding, 

the Exchange may, subject to the certain 

requirements set forth in the Rule, 

impose a fine, not to exceed $5,000, on 

any Options Participant, or person 

associated with or employed by an 

Options Participant, with respect to any 

Rule violation listed in Rule 12140(d) or 

(e) discussed below. Any fine imposed 

pursuant to this Rule that (i) does not 

exceed $2,500 and (ii) is not contested, 

shall be reported on a periodic basis, 

except as may otherwise be required by 

Rule 19d–1 under the Act or by any 

other regulatory authority. Further, the 

Rule provides that any person against 

whom a fine is imposed under the Rule 

shall be served with a written statement 

setting forth: (i) The Rule(s) allegedly 

violated; (ii) the act or omission 

constituting each such violation; (iii) the 

fine imposed for each violation; and (iv) 

the date by which such determination 

becomes final and such fine must be 

paid or contested, which date shall be 

not less than twenty-five (25) calendar 

days after the date of service of such 

written statement. Rule 12140(d) and (e) 

set forth the list of specific Exchange 

Rules under which an Options 

Participant or person associated with or 

employed by an Options Participant 

may be subject to a fine for violations 

of such Rules and the applicable fines 

that may be imposed by the Exchange. 

As with all the violations incorporated 

into its MRVP, the Exchange will 

proceed under this Rule only for 

violations that are minor in nature. Any 

other violation will be addressed 

pursuant to Rules 12030 (Letters of 

Consent) or 12040 (Charges). 

Exercise Limits 

First, the Exchange proposes to 

amend 12140(d)(1), Position Limits to 

include violations of Exercise limits 

pursuant to Rule 3140.3 The Exchange 

believes that amending Rule 

12140(d)(1), Position Limits, to include 

violations of Exercise Limits pursuant to 

BOX Rule 3140 is appropriate because 

it will allow the Exchange to carry out 

its regulatory responsibility more 

efficiently and in a manner that is 

consistent with the way it handles 

violations of position limits. Violations 

of position and exercise limits on the 

Exchange generally occur together, so 

adding exercise limits to the existing 

position limits MRV will allow the 

Exchange to address these related 

violations more effectively. The 

Exchange proposes that the fine levels 

for exercise limit violations match the 

fine levels for position limits. Under 

this rule, any Participant who violates 

Rule 3120 or Rule 3140 regarding 

position or exercise limits shall be 

subject to the fines listed below. The 

Exchange notes that this proposal is 

consistent with the MRVPs in place at 

Cboe Exchange, Inc. (‘‘Cboe Options’’), 

NYSE American, LLC (‘‘NYSE 

American’’) and NYSE Arca, Inc. 

(‘‘NYSE Arca’’).4

Number of cumulative violations 

within any rolling twenty-four 

month period 

Sanction 

First Offense ............................. $500 

Second Offense ........................ 1,000 

Third Offense ............................ 2,500 

Fourth and Each Subsequent 

Offense .................................. 5,000 

Requests for Trade Data 

As stated above, the Exchange is 

proposing to make clarifying and nonsubstantive changes. As such, the 

Exchange is proposing to update the 

language to use ‘‘offense’’ instead of 

‘‘occurrence’’ and ‘‘rolling’’ instead of 

‘‘running’’ within the fine schedule to 

provide greater consistency in the 

terminology used within the Exchange’s 

MRVP and with the MRVPs of the other 

options exchanges. There is no 

substantive difference in the Exchange’s 

interpretation between ‘‘offense’’ and 

‘‘occurrence’’ and ‘‘running’’ and 

‘‘rolling.’’ The Exchange is also 


jspears on DSK121TN23PROD with NOTICES1
23894 Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 

5See NYSE Arca Rule 10.12(k)(i)(41). 

6The Exchange adopted Rule 7135 (Execution 

and Pro Rata Priority) to establish and govern pro 

rate execution on BOX and Rule 8055 (Lead Market 

Makers) which details the designation and 

obligations of Lead Market Makers on BOX. Rule 

7350(c)(2) details Lead Market Maker Priority and 

Lead Market Makers may be assigned by the 

Exchange in each options class in accordance with 

Rule 8055. The Exchange now proposes to include 

Lead Market Maker Continuous Quoting in its 

MRVP. See Securities Exchange Act Release No. 

91897 (May 14, 2021), 86 FR 27490 (May 20, 2021) 

(SR–BOX–2021–11). 

7See Cboe Options Rule 13.15(g)(9). 

proposing to clarify the distinction 

between offense and violation by 

updating the terminology to only use 

the term offense when the listed fines 

are meant to cover multiple violations. 

The purpose of these changes is to 

provide greater clarity within the 

Exchange’s MRVP by using more 

consistent terminology throughout. As 

such, the Exchange is proposing to 

amend Rule 12140(d)(3) Requests for 

Trade Data pursuant to Rule 10040, to 

change occurrence to violation within 

the fine schedule. The Exchange 

believes this proposed clarifying and 

non-substantive change is appropriate 

because it will help clarify this 

distinction between offense and 

violation by updating the terminology to 

only use the term offense when the 

listed fines are meant to cover multiple 

violations. The Exchange believes these 

technical and nonsubstantive changes 

are reasonable and appropriate because 

they will increase readability of the 

MRVP and help prevent investor 

confusion. Further, these proposed 

changes will allow the Exchange to 

carry out its regulatory responsibility 

more quickly and efficiently by 

reducing confusion regarding 

terminology in the administration of the 

MRVP. The Exchange notes that the 

proposed change is intended to provide 

for greater consistency within the 

Exchange’s MRVP itself and with the 

MRVPs of the other options exchanges. 

The Exchange is not proposing to 

amend the sanctions under this Rule 

12140(d)(3). The Exchange proposes to 

update the fine schedule as follows: 

Number of violations 

within one calendar 

year 

Sanction 

2nd Violation ............. $500. 

3rd Violation .............. $1,000. 

4th Violation .............. $2,500. 

Subsequent Violations.Formal Disciplinary 

Action. 

Quotation Parameters 

The Exchange is also proposing to 

amend Rule 12140(d)(5) Quotation 

Parameters to increase and strengthen 

the sanctions imposed under this 

section. The Exchange believes that 

increasing and strengthening these 

sanctions is appropriate to prevent 

participants from trading on BOX in 

order to get lower fines for violative 

conduct. The Exchange believes that 

increasing these sanctions will allow the 

Exchange to provide more appropriate 

punishments and more effectively deter 

violations of this nature. The Exchange 

believes that removing the lesser 

penalty (letter of caution) for the first, 

second, and third offenses in order to 

provide fines for the first, second, and 

third offenses and, ultimately, formal 

disciplinary proceedings for any 

subsequent offenses during one calendar 

year is appropriate. The Exchange 

believes this fine structure may serve to 

deter repeat-offenders more effectively. 

The Exchange notes this proposed 

change will bring the sanctions for 

violations regarding spread parameters 

or market maker quotations in line with 

the sanctions imposed by NYSE Arca.5

Rule 12140(d)(5) currently permits the 

Exchange to issue a letter of caution for 

the first, second, and third occurrence 

within a one calendar year running 

basis. For the fourth, fifth, sixth 

occurrences during a one-year running 

period, the fine schedule currently 

permits the Exchange to issue a fine of 

$250, $500, and $1,000, respectively. 

The fine schedule also provides that for 

the seventh occurrence and thereafter, 

during a one-year running period, the 

sanction is discretionary with the 

Hearing Committee. The proposed rule 

change updates the fine schedule to 

provide that, on a one-year rolling basis, 

the Exchange may apply a fine of $1,000 

for a first offense, may apply a fine of 

$2,500 for a second offense, may apply 

a fine of $3,500 for a third offense, and 

may proceed with formal disciplinary 

action for a fourth offense and 

thereafter. 

As described above, the Exchange is 

proposing to update the language to use 

‘‘offense’’ instead of ‘‘occurrence’’ and 

‘‘rolling’’ instead of ‘‘running’’ within 

the fine schedule, as there is no 

substantive difference in the Exchange’s 

interpretation between ‘‘offense’’ and 

‘‘occurrence’’ and ‘‘running’’ and 

‘‘rolling.’’ The Exchange believes these 

technical and nonsubstantive changes 

are reasonable and appropriate because 

they will increase readability of the 

MRVP and help prevent investor 

confusion. Further, these proposed 

changes will allow the Exchange to 

carry out its regulatory responsibility 

more quickly and efficiently by 

reducing confusion regarding 

terminology in the administration of the 

MRVP. The Exchange notes that the 

proposed change is intended to provide 

for greater consistency within the 

Exchange’s MRVP itself and with the 

MRVPs of the other options exchanges. 

Under this proposed amendment, any 

Participant who violates Rule 8040(a)(7) 

regarding spread parameters or market 

maker quotations shall be subject to the 

fines listed below. 

Fine schedule 

(implemented on a 

one-year rolling basis) 

Sanction 

1st Offense ................ $1,000. 

2nd Offense .............. $2,500. 

3rd Offense ............... $3,500. 

4th Offense and 

Thereafter.

Formal Disciplinary 

Action. 

Lead Market Maker Continuous Quoting 

Next the Exchange proposes to amend 

Rule 12140(d)(6), Continuous Quotes to 

include continuous quoting violations 

by Lead Marker Makers pursuant to 

BOX Rule 8050(e) and Rule 8055(c)(1). 

The Exchange believes that amending 

Rule 12140(d)(6), Continuous Quotes to 

include continuous quoting violations 

by Lead Marker Makers pursuant to 

BOX Rule 8055(c)(1) is appropriate 

because it will allow the Exchange to 

carry out its regulatory responsibility 

quickly and efficiently in a manner that 

is consistent with the way it handles 

continuous quoting violations for all 

types of Market Makers.6

The Exchange is also proposing to 

increase and strengthen the sanctions 

imposed under this section, which the 

Exchange believes will more effectively 

deter violative conduct. The Exchange 

notes that this proposed change will 

bring the sanctions for violations of 

continuous quoting obligations in line 

with the sanctions imposed by Cboe 

Options.7 Rule 12140(d)(6) currently 

permits the Exchange to give a letter of 

caution for the first violation within one 

calendar year. For subsequent offenses 

during the same period, the fine 

schedule permits the Exchange to issue 

a fine of $300 per day. The Exchange 

proposes to update the fine schedule as 

follows: 

Violations within one 

calendar year Sanction 

1st Violation .............. Letter of Caution. 

2nd Violation ............. $1,500. 

3rd Violation .............. $3,000. 

Subsequent Violations.Formal Disciplinary 

Action. 

The proposed rule change updates the 

fine schedule to provide that, during 

one calendar year, the Exchange may 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 23895 

8The Exchange notes that CBOE Options has 

identical sanctions in place. See Cboe Options Rule 

13.15(g)(9). 

9See Cboe Options Rule 13.15(g)(9). See also 

NYSE American Rule 9217(iii)(17). See also NYSE 

Arca Rule 10.12(k)(i)(39). 

10NYSE American and NYSE Arca have 

subsections within their MRVPs listing numerous 

specific recordkeeping violations. NYSE American 

Rule 9217 and NYSE Arca Rule 10.12 contain minor 

rule violations regarding failures to comply with the 

books and records requirements of Rule 324 and 

failures to furnish in a timely manner books, 

records or other requested information or testimony 

in connection with an examination of financial 

responsibility and/or operational conditions. See 

NYSE American Rule 9217(ii). See also NYSE Arca 

Rule 10.12(k)(iii). 

11The NYSE American and NYSE Arca MRVPs 

contain numerous recordkeeping minor rule 

violations with fines ranging from $500 to $5,000 

depending on the specific violation and the fine 

level. See NYSE American Rule 9217 (ii). See also 

NYSE Arca Rule 10.12(k)(iii). 

give a letter of caution for a first 

violation, may apply a fine of $1,500 for 

a second violation, may apply a fine of 

$3,000 for a third violation, and may 

proceed with formal disciplinary action 

for subsequent offenses.8 As described 

above, and as is the case for all rule 

violations covered under Rule 12140(d) 

and (e), the Exchange may determine 

that a violation of Market-Maker quoting 

obligations is intentional, egregious, or 

otherwise not minor in nature and 

choose to proceed under the Exchange’s 

formal disciplinary rules rather than its 

MRVP. The Exchange believes that 

maintaining the lesser penalty (letter of 

caution) for a first offense and then 

providing higher fines for second and 

third offenses and, ultimately, formal 

disciplinary proceedings for any 

subsequent offenses during one calendar 

year is appropriate. This will allow the 

Exchange to levy progressively larger 

fines and greater penalties against 

repeat-offenders (as opposed to a 

smaller fine range for any offenses that 

may come after a first offense). The 

Exchange believes this fine structure 

may serve to deter repeat-offenders 

while providing reasonable warning for 

a first offense within one calendar year. 

Under this proposed amendment, any 

Participant who violates Rule 8050(e) or 

Rule 8055(c)(1) regarding Market Maker 

or Lead Market Maker continuous 

quotes shall be subject to the fines listed 

above. Violations of Rule 8050(e) or 

Rule 8055(c)(1) that continue over 

consecutive trading days will be subject 

to a separate fine, pursuant to this 

paragraph (6), for each day during 

which the violation occurs and is 

continuing up to a limit of fifteen 

consecutive trading days. In calculating 

fine thresholds for each Market Maker 

or Lead Market Maker, all violations 

occurring within the Surveillance 

Review Period as defined within the 

Exchange Surveillance Procedures in 

any of that Market Maker or Lead 

Market Maker’s appointed classes are to 

be added together. The Exchange notes 

that Cboe Options, and NYSE Arca have 

similar rule provisions in their MRVPs 

addressing Market Maker and Lead 

Market Maker continuous quoting 

obligations.9

Mandatory Systems Testing 

The Exchange is also proposing to 

make clarifying and non-substantive 

changes to amend the language within 

the fine schedules to use the terms ‘‘and 

Thereafter’’ and ‘‘Subsequent’’ instead 

of ‘‘or more’’ when detailing the number 

of violations. There is no substantive 

difference in the Exchange’s 

interpretation between ‘‘or more’’ and 

‘‘subsequent’’ or ‘‘and thereafter’’. The 

purpose of the change is to provide 

greater clarity within the Exchange’s 

own MRVP by using more consistent 

terminology. The Exchange proposes to 

amend 12140(d)(7), Mandatory Systems 

Testing pursuant to BOX Rule 3180, to 

change ‘‘or more’’ to ‘‘and thereafter’’ 

within the fine schedule. The Exchange 

believes these technical and 

nonsubstantive changes are reasonable 

and appropriate because they will 

increase readability of the MRVP and 

help prevent investor confusion. 

Further, these proposed changes will 

allow the Exchange to carry out its 

regulatory responsibility more quickly 

and efficiently by reducing confusion 

regarding terminology in the 

administration of the MRVP. The 

Exchange notes that the proposed 

change is intended to provide for greater 

consistency within the Exchange’s 

MRVP itself and with the MRVPs of the 

other options exchanges. Under this 

rule, any Participant who violates Rule 

3180 regarding the failure to conduct or 

participate in the testing of computer 

systems, or failure to provide required 

reports or maintain required 

documentation, shall be subject to the 

fines listed below. 

Violations within one 

calendar year Sanction 

First Violation ............ $250. 

Second Violation ....... $500. 

Third Violation ........... $1000. 

Fourth Violation ......... $2000. 

Fifth Violation and 

Thereafter.

Formal Disciplinary 

Action. 

Maintenance, Retention and Furnishing 

of Books, Records and Other 

Information 

Next, the Exchange proposes to adopt 

12140(d)(10), Maintenance, Retention 

and Furnishing of Books, Records and 

Other Information pursuant to BOX 

Rule 10000. Under this rule, any 

Participant who violates Rule 10000 

regarding the failure to make, keep 

current, and preserve such books and 

records as required, or failure to furnish 

such books and records in a timely 

manner upon request by the Exchange 

shall be subject to the fines listed below. 

Number of violations 

within any twenty-four 

month rolling period 

Sanction 

Initial Violation ........... $500. 

Second Violation ....... $1,000. 

Number of violations 

within any twenty-four 

month rolling period 

Sanction 

Third Violation ........... $2,500. 

Fourth Violation and 

Thereafter.

$5,000 or Formal Disciplinary Action. 

The Exchange believes the adoption 

of Rule 12140(d)(10) into the MRVP is 

appropriate because it will allow the 

Exchange to carry out its regulatory 

responsibility more efficiently and help 

deter BOX Participants from failing to 

make, keep current, and preserve such 

books and records as required, or failure 

to furnish such books and records in a 

timely manner upon request by the 

Exchange. The Exchange notes that 

adding this provision will help ensure 

consistency within the MRVP’s of the 

various options exchanges. NYSE 

American and NYSE Arca have rule 

provisions within their respective minor 

rule violation plans that addresses 

similar recordkeeping violations.10

Further, the proposed fine schedule for 

these types of violations is similar to the 

recordkeeping sanctions imposed by 

NYSE American and NYSE Arca.11

Anti-Money Laundering Compliance 

Program 

The Exchange also proposes to adopt 

12140(d)(11), Anti-Money Laundering 

Compliance Program pursuant to BOX 

Rule 10070. Under this Rule any 

Participant who violates Rule 10070 

regarding the failure to satisfy the antimoney laundering compliance program 

requirements shall be subject to the 

fines listed below. The Exchange 

believes the adoption of Rule 

12140(d)(11), is appropriate because it 

will help deter BOX Participants from 

failing to satisfy the requirements of the 

anti-money laundering compliance 

program. The Exchange believes that 

adding this rule to the MRVP will allow 

the Exchange to carry out its regulatory 

responsibility more quickly and 

efficiently with respect to violations of 

BOX Rule 10070. The Exchange notes 

that this proposed addition is consistent 


jspears on DSK121TN23PROD with NOTICES1
23896 Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 

12See NYSE American Rule 9217(ii)(12). See also 

NYSE Arca Rule 10.12(k)(iii)(12). 

13See Cboe Options Rule 13.15(g)(13). 

14Cboe Options applies sanctions of $1000 for a 

first offense and $2500 for subsequent offenses, 

while NYSE American and NYSE Arca have 

sanctions of $2,000 for 1st level, $4,000 for 2nd 

level, and $5,000 for third level. See Cboe Options 

Rule 13.15(g)(13). See also NYSE American Rule 

9217(ii)(12). See also NYSE Arca Rule 

10.12(k)(iii)(12). 

15As discussed below, this proposed rule change 

subsequently renumbers Rule 12140 (d)(10) to 

(d)(12) as a result of the proposed addition of Rules 

12140(d)(10), and (d)(11). 

16Cboe Option’s MRVP provides for sanctions of 

$500–1,000 for a first offense, $1,000–2,500 for a 

second offense, and $2,500–5,000 and a Staff 

Interview for subsequent offenses. See Cboe 

Options Rule 13.15(g)(8). 

17As discussed below, this proposed rule change 

subsequently renumbers Rule 12140 (d)(11) to 

(d)(13) as a result of the proposed addition of Rules 

12140(d)(10), and (d)(11). 

18As discussed below, this proposed rule change 

subsequently renumbers Rule 12140 (d)(12) to 

(d)(14) as a result of the proposed addition of Rules 

12140(d)(10), and (d)(11). 

with the minor rule violations relating 

to anti-money laundering program 

failure with the MRVPs at NYSE 

American and NYSE Arca.12

Additionally, Cboe Options has a rule 

provision in its MRVP that addresses 

violations related to anti-money 

laundering implementation relating to 

the failure to designate a person 

responsible for implementing and 

monitoring the anti-money laundering 

compliance program.13 The proposed 

fine schedule provides that, within any 

twenty-four-month rolling period, the 

Exchange may apply a fine of $1,000 for 

a first violation and $2,500 for 

subsequent violations. The Exchange 

believes that the proposed sanctions are 

appropriate, as they will provide 

sufficient warning to first time 

offenders, while deterring repeat 

offenders. These sanctions are identical 

to the sanctions applied by Cboe 

Options and similar to the sanctions 

applied by NYSE American and NYSE 

Arca for minor rule violations relating to 

anti-money laundering compliance 

program violations.14

Number of violations within any 

twenty-four month rolling period Sanction 

Initial Violation .......................... $1,000 

Subsequent Violations .............. 2,500 

Locked and Crossed Market Violations 

The Exchange is proposing to amend 

current Rule 12140(d)(10) 15 Locked and 

Crossed Market Violations to increase 

and strengthen the sanctions imposed 

under this section. The Exchange 

believes that increasing and 

strengthening these sanctions for 

violations relating to locked and crossed 

markets is appropriate to prevent 

participants from trading on BOX in 

order to get lower fines for violative 

conduct. The Exchange believes that 

increasing these sanctions will allow the 

Exchange to provide more appropriate 

punishments and more effectively deter 

violations of this nature. The Exchange 

notes this proposed change will bring 

the sanctions for violations regarding 

spread parameters or market maker 

quotations more in line with the 

sanctions imposed by Cboe Options.16

Rule 12140(d)(10) currently permits the 

Exchange to issue a letter of caution for 

an initial violation within a twelvemonth rolling period. The current fine 

schedule also permits the Exchange to 

apply a fine of $250 for a second 

violation, $500 for a third violation, and 

formal disciplinary action for the fourth 

or more violations within a twelvemonth rolling period. The proposed rule 

change updates the fine schedule to 

provide that, within any twelve-month 

rolling period, the Exchange may apply 

a fine of $500 for an initial violation, 

may apply a fine of $2,500 for a second 

violation, and may apply a fine of 

$5,000 or proceed with formal 

disciplinary action for subsequent 

violations. Under this proposed 

amendment, any Participant who 

violates Rule 15020 regarding 

procedures to be followed in the 

instance of a Locked or Crossed Market 

shall be subject to the fines listed below. 

Number of violations 

within any twelvemonth rolling period Sanction 

Initial Violation ........... $500. 

Second Violation ....... $2,500. 

Subsequent Violations.$5,000 or Formal Disciplinary Action. 

Market Maker Assigned Activity 

Violations 

As stated above, the Exchange is 

proposing to make clarifying and nonsubstantive changes to amend the 

language within the fine schedules to 

use the terms ‘‘and Thereafter’’ and 

‘‘Subsequent’’ instead of ‘‘or more’’ 

when detailing the number of 

violations. There is no substantive 

difference in the Exchange’s 

interpretation between ‘‘or more’’ and 

‘‘subsequent’’ or ‘‘and thereafter’’. The 

purpose of the change is to provide 

greater clarity within the Exchange’s 

MRVP by using more consistent 

terminology. The Exchange proposes to 

amend current Rule 12140(d)(11),17

Market Maker Assigned Activity 

Violations pursuant to BOX Rule 

8030(e), to change ‘‘or more’’ to ‘‘and 

thereafter’’ within the fine schedule. 

The Exchange believes these technical 

and nonsubstantive changes are 

reasonable and appropriate because they 

will increase readability of the MRVP 

and help prevent investor confusion. 

Further, these proposed changes will 

allow the Exchange to carry out its 

regulatory responsibility more quickly 

and efficiently by reducing confusion 

regarding terminology in the 

administration of the MRVP. The 

Exchange notes that the proposed 

change is intended to provide for greater 

consistency within the Exchange’s 

MRVP itself and with the MRVPs of the 

other options exchanges. Under this 

rule, any Participant who violates Rule 

8030(e) regarding the failure of Market 

Makers to limit their execution in 

options classes outside of their 

appointed classes to twenty-five percent 

(25%) of the total number of contracts 

executed during a quarter by such 

Market Maker, is subject to the fines 

listed below. 

Number of violations 

within any twelvemonth rolling period Sanction 

Initial Violation ........... Letter of Caution. 

Second Violation ....... $500. 

Third Violation ........... $1,000. 

Fourth Violation ......... $2,500. 

Fifth Violation and 

Thereafter.

Formal Disciplinary 

Action. 

Request for Quote Violations 

As detailed above, the Exchange is 

proposing to make clarifying and nonsubstantive changes to amend the 

language within the fine schedules to 

use the terms ‘‘and Thereafter’’ and 

‘‘Subsequent’’ instead of ‘‘or more’’ 

when detailing the number of 

violations. There is no substantive 

difference in the Exchange’s 

interpretation between ‘‘or more’’ and 

‘‘subsequent’’ or ‘‘and thereafter’’. The 

purpose of the change is to provide 

greater clarity within the Exchange’s 

MRVP by using more consistent 

terminology. The Exchange proposes to 

amend current Rule 12140(d)(12),18

Request for Quote Violations pursuant 

to BOX Rule 8050(c)(2)–(c)(4), to change 

‘‘or more’’ to ‘‘and thereafter’’ within the 

fine schedule. The Exchange believes 

these technical and nonsubstantive 

changes are reasonable and appropriate 

because they will increase readability of 

the MRVP and help prevent investor 

confusion. Further, these proposed 

changes will allow the Exchange to 

carry out its regulatory responsibility 

more quickly and efficiently by 

reducing confusion regarding 

terminology in the administration of the 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 23897 

19As discussed below, this proposed rule change 

subsequently renumbers Rule 12140 (d)(13) to 

(d)(15) as a result of the proposed addition of Rules 

12140(d)(10), and (d)(11). 

20See Securities Exchange Act Release No. 81398 

(August 15, 2017), 82 FR 39630 (August 21, 2017) 

(SR–BOX–2017–26). 21See NYSE Arca Rule 10.12. 22See NYSE Arca Rule 10.12(k)(i)(1). 

MRVP. The Exchange notes that the 

proposed change is intended to provide 

for greater consistency within the 

Exchange’s MRVP itself and with the 

MRVPs of the other options exchanges. 

Under this rule, any Participant who 

violates Rule 8050(c)(2)–(c)(4) regarding 

the failure of a Market Maker to respond 

to a Request for Quote (‘‘RFQ’’) on BOX, 

is subject to the fines listed below. 

Number of violations 

within any twelvemonth rolling period Sanction 

Initial Violation ........... Letter of Caution. 

Second Violation ....... $250. 

Third Violation ........... $500. 

Fourth Violation and 

Thereafter.

Formal Disciplinary 

Action. 

Trade Through Violations 

As stated above, the Exchange is 

proposing to make clarifying and nonsubstantive changes to amend the 

language within the fine schedules to 

use the terms ‘‘and Thereafter’’ and 

‘‘Subsequent’’ instead of ‘‘or more’’ 

when detailing the number of 

violations. There is no substantive 

difference in the Exchange’s 

interpretation between ‘‘or more’’ and 

‘‘subsequent’’ or ‘‘and thereafter’’. The 

purpose of the change is to provide 

greater clarity within the Exchange’s 

MRVP by using more consistent 

terminology. The Exchange proposes to 

amend current Rule 12140(d)(13),19

Trade Through Violations pursuant to 

BOX Rule 15010, to change ‘‘or more’’ 

to ‘‘and thereafter’’ within the fine 

schedule. The Exchange believes these 

technical and nonsubstantive changes 

are reasonable and appropriate because 

they will increase readability of the 

MRVP and help prevent investor 

confusion. Further, these proposed 

changes will allow the Exchange to 

carry out its regulatory responsibility 

more quickly and efficiently by 

reducing confusion regarding 

terminology in the administration of the 

MRVP. The Exchange notes that the 

proposed change is intended to provide 

for greater consistency within the 

Exchange’s MRVP itself and with the 

MRVPs of the other options exchanges. 

Under this rule, any Participant who 

violates Rule 15010(a) regarding trade 

throughs is subject to the fines listed 

below. 

Number of violations 

within any twenty-four 

month rolling period 

Sanction 

Initial Violation ........... $500. 

Second Violation ....... $1,000. 

Third Violation ........... $2,500. 

Fourth Violation and 

Thereafter.

$5,000 or Formal Disciplinary Action. 

Trading Floor Violations Fine Schedules 

The Exchange is proposing to update 

the fine schedules applicable to minor 

rule violations related to certain Trading 

Floor violations listed in Rule 12140(e) 

to increase and strengthen the sanctions. 

The Exchange adopted the minor rule 

violations and corresponding fines 

under Rule 12140(e) in 2017 following 

the establishment of the BOX Trading 

Floor.20 In adopting its current trading 

floor minor rule violations, the 

Exchange believed it appropriate to 

adopt a lower fine amount than in place 

at NYSE Arca as the new trading floor 

was established and to be more 

consistent with the other fines within 

the Exchange’s own MRVP. However, 

the Exchange’s Trading Floor is now 

well-established, with a greater number 

of Participants, and the Exchange 

believes that increasing and 

strengthening these sanctions is 

appropriate to prevent participants from 

trading on BOX in order to get lower 

fines for violative conduct. The 

Exchange believes that increasing these 

trading floor related sanctions to be 

more consistent with the other options 

exchanges will allow the Exchange to 

more effectively deter trading floor 

violations. The Exchange notes that this 

proposed change will bring the 

sanctions more in line with the fine 

schedules in place at NYSE Arca.21

The Exchange is also proposing to 

update the language within each minor 

rule violation listed within Rule 

12140(e) to use the term ‘‘violation’’ 

instead of ‘‘occurrence’’ when detailing 

the number of violations within the fine 

schedules to provide consistency in the 

terminology used within the Exchange’s 

MRVP. Within the MRVP, the Exchange 

interprets violation to mean one 

instance, while multiple violations may 

be deemed to constitute one offense. 

The Exchange believes that changing 

occurrence to violation in BOX Rule 

12140(d)(3) and (e)(1)–(12) is 

appropriate because it will help clarify 

this distinction between offense and 

violation by updating the terminology to 

only use the term offense when the 

listed fines are meant to cover multiple 

violations. The Exchange believes these 

technical and nonsubstantive changes 

are reasonable and appropriate because 

they will increase readability of the 

MRVP and help prevent investor 

confusion. Further, these proposed 

changes will allow the Exchange to 

carry out its regulatory responsibility 

more quickly and efficiently by 

reducing confusion regarding 

terminology in the administration of the 

MRVP. The Exchange notes that the 

proposed change is intended to provide 

for greater consistency within the 

Exchange’s MRVP itself and with the 

MRVPs of the other options exchanges. 

General Responsibilities of Floor 

Brokers. The Exchange is proposing to 

amend Rule 12140(e)(1), General 

Responsibilities of Floor Brokers 

pursuant to BOX Rule 7570, to increase 

and strengthen the sanctions imposed 

under this section. The Exchange 

believes that increasing and 

strengthening these sanctions is 

appropriate to prevent participants from 

trading on BOX in order to get lower 

fines for violative conduct. The 

Exchange believes that increasing these 

trading floor related sanctions to be 

more consistent with the other options 

exchanges will allow the Exchange to 

more effectively deter trading floor 

violations. The Exchange notes that this 

proposed change will bring the 

sanctions in line with the sanctions 

imposed by NYSE Arca.22 Rule 

12140(e)(1) currently permits the 

Exchange to apply a fine of $500 for the 

first occurrence, $1,000 for a second 

occurrence, $2,000 for a third 

occurrence, and formal disciplinary 

action for subsequent occurrences 

within any rolling twenty-four-month 

period. The proposed rule change 

updates the fine schedule to provide 

that, within any twenty-four-month 

rolling period, the Exchange may apply 

a fine of $1,000 for the first offense, 

$2,500 for a second offense, $5,000 for 

a third offense, and formal disciplinary 

action for subsequent offenses. Under 

this proposed amendment, any Floor 

Broker who violates Rule 7580(e) 

regarding the failure to use due 

diligence when handling an order, to 

cause the order to be executed at the 

best price or prices available to him in 

accordance with the Rules of the 

Exchange shall be subject to the fines 

listed below. 

Number of violations 

within any rolling 

24-month period 

Sanction 

First Offense ............. $1,000. 


jspears on DSK121TN23PROD with NOTICES1
23898 Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 

23See NYSE Arca Rule 10.12(k)(i)(16). 

24See NYSE Arca Rule 10.12(k)(i)(9). 

25See NYSE Arca Rule 10.12(k)(i)(12). 26See NYSE Arca Rule 10.12(k)(i)(14). 

Number of violations 

within any rolling 

24-month period 

Sanction 

Second Offense ........ $2,500. 

Third Offense ............ $5,000. 

Subsequent Offenses Formal Disciplinary 

Action. 

Trading Conduct and Order & 

Decorum on the Trading Floor. The 

Exchange is also proposing to amend 

Rule 12140(e)(4) Trading Conduct and 

Order & Decorum on the Trading Floor 

pursuant to BOX Rule 2120(b)–(d), to 

increase and strengthen the sanctions 

imposed under this section. The 

Exchange believes that increasing and 

strengthening these sanctions is 

appropriate to prevent participants from 

trading on BOX in order to get lower 

fines for violative conduct. The 

Exchange believes that increasing these 

trading floor related sanctions to be 

more consistent with the other options 

exchanges will allow the Exchange to 

more effectively deter trading floor 

violations. The Exchange notes that this 

proposed change brings these sanctions 

in line with the sanctions imposed by 

NYSE Arca.23 Rule 12140(e)(4) currently 

permits the Exchange to apply a fine of 

$250 for the first occurrence, $500 for a 

second occurrence, $1,000 for a third 

occurrence, and formal disciplinary 

action for subsequent occurrences 

within any twenty-four-month rolling 

period. The proposed rule change 

updates the fine schedule to provide 

that, within any twenty-four-month 

rolling period, the Exchange may apply 

a fine of $1,000 for the first offense, 

$2,000 for a second offense, $3,500 for 

a third offense, and formal disciplinary 

action for subsequent offenses. Under 

this proposed amendment, any Floor 

Participant who violates Rule 2120(b)– 

(d) regarding Trading Floor Conduct and 

decorum shall be subject to the fines 

listed below. 

Number of violations 

within any rolling 

24-month period 

Sanction 

First Offense ............. $1,000. 

Second Offense ........ $2,000. 

Third Offense ............ $3,500. 

Subsequent Offenses Formal Disciplinary 

Action. 

Floor Participant Not Available to 

Reconcile an Uncompared Trade. The 

Exchange is proposing to amend Rule 

12140(e)(6) Floor Participant Not 

Available to Reconcile an Uncompared 

Trade pursuant to BOX Rule 8530, to 

increase and strengthen the sanctions 

imposed under this section. The 

Exchange believes that increasing and 

strengthening these sanctions is 

appropriate to prevent participants from 

trading on BOX in order to get lower 

fines for violative conduct. The 

Exchange believes that increasing these 

trading floor related sanctions to be 

more consistent with the other options 

exchanges will allow the Exchange to 

more effectively deter trading floor 

violations. The Exchange notes that this 

proposed change brings these sanctions 

in line with the sanctions imposed by 

NYSE Arca.24 Rule 12140(e)(6) currently 

permits the Exchange to apply a fine of 

$500 for the first occurrence, $1,000 for 

a second occurrence, $2,000 for a third 

occurrence, and formal disciplinary 

action for subsequent occurrences 

within any twenty-four-month rolling 

period. The proposed rule change 

updates the fine schedule to provide 

that the Exchange may apply a fine of 

$500 for the first offense, $1,000 for a 

second offense, $2,500 for a third 

offense, and may proceed with formal 

disciplinary action for any subsequent 

offenses within any rolling twenty-fourmonth period. Under this proposed 

amendment, any Floor Participant who 

violates Rule 8530 regarding the 

resolution of uncompared trades shall 

be subject to the fines listed below. 

Number of violations 

within any rolling 

24-month period 

Sanction 

First Offense ............. $500. 

Second Offense ........ $1,000. 

Third Offense ............ $2,500. 

Subsequent Offenses Formal Disciplinary 

Action. 

Floor Participant Communications 

and Equipment. The Exchange is also 

proposing to amend Rule 12140(e)(7) 

Floor Participant Communications and 

Equipment pursuant to BOX Rule 7660, 

to increase and strengthen the sanctions 

imposed under this section. The 

Exchange believes that increasing and 

strengthening these sanctions is 

appropriate to prevent participants from 

trading on BOX in order to get lower 

fines for violative conduct. The 

Exchange believes that increasing these 

trading floor related sanctions to be 

more consistent with the other options 

exchanges will allow the Exchange to 

more effectively deter trading floor 

violations. The Exchange notes that this 

proposed change brings these sanctions 

in line with the sanctions imposed by 

NYSE Arca.25 Rule 12140(e)(7) currently 

permits the Exchange to apply a fine of 

$250 for the first occurrence, $500 for a 

second occurrence, $1,000 for a third 

occurrence, and formal disciplinary 

action for subsequent occurrences 

within any twenty-four-month rolling 

period. The proposed rule change 

updates the fine schedule to provide 

that, within any twenty-four-month 

rolling period, the Exchange may apply 

a fine of $1,000 for the first offense, 

$2,500 for a second offense, and $3,500 

for a third offense, and formal 

disciplinary action for subsequent 

offenses. Under this proposed 

amendment, any Floor Participant who 

violates Rule 7660 regarding Floor 

Participant Communications and 

Equipment shall be subject to the fines 

listed below. 

Number of violations 

within any rolling 

24-month period 

Sanction 

First Offense ............. $1,000. 

Second Offense ........ $2,500. 

Third Offense ............ $3,500. 

Subsequent Offenses Formal Disciplinary 

Action. 

Improper Vocalization of a Trade. 

The Exchange is also proposing to 

amend Rule 12140(e)(8) Improper 

Vocalization of a Trade pursuant to BOX 

Rule 100(b)(5), to increase and 

strengthen the sanctions imposed under 

this section. The Exchange believes that 

increasing and strengthening these 

sanctions is appropriate to prevent 

participants from trading on BOX in 

order to get lower fines for violative 

conduct. The Exchange believes that 

increasing these trading floor related 

sanctions to be more consistent with the 

other options exchanges will allow the 

Exchange to more effectively deter 

trading floor violations. The Exchange 

notes that this proposed change will 

bring these sanctions in line with the 

sanctions imposed by NYSE Arca.26

Rule 12140(e)(8) currently permits the 

Exchange to apply a fine of $250 for the 

first occurrence, $500 for a second 

occurrence, $1,000 for a third 

occurrence, and formal disciplinary 

action for subsequent occurrences 

within any rolling twenty-four-month 

period. The proposed rule change 

updates the fine schedule to provide 

that, within any rolling twenty-fourmonth period, the Exchange may apply 

a fine of $1,000 for the first offense, 

$2,500 for a second offense, $3,500 for 

a third offense, and formal disciplinary 

action for subsequent offenses. Under 

this proposed amendment, any Floor 

Participant who violates Rule 100(b)(5) 

regarding the requirements for public 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 23899 

27See NYSE Arca Rule 10.12(k)(i)(39). 28See NYSE Arca Rule 10.12(k)(i)(41). 

29See NYSE Arca Rule 10.12(k)(i)(40). 

30See NYSE Arca Rule 10.12(k)(i)(11). 

outcry shall be subject to the fines listed 

below. 

Number of violations 

within any rolling 

24-month period 

Sanction 

First Offense ............. $1,000. 

Second Offense ........ $2,500. 

Third Offense ............ $3,500. 

Subsequent Offenses Formal Disciplinary 

Action. 

Floor Market Maker Failure to Comply 

with Quotation Requirements. The 

Exchange is also proposing to amend 

Rule 12140(e)(9) Floor Market Maker 

Failure to Comply with Quotation 

Requirements pursuant to BOX Rule 

8510(c)(2), to increase and strengthen 

the sanctions imposed under this 

section. The Exchange believes that 

increasing and strengthening these 

sanctions is appropriate to prevent 

participants from trading on BOX in 

order to get lower fines for violative 

conduct. The Exchange believes that 

increasing these trading floor related 

sanctions to be more consistent with the 

other options exchanges will allow the 

Exchange to more effectively deter 

trading floor violations. The Exchange 

notes that this proposed change will 

bring these sanctions in line with the 

sanctions imposed by NYSE Arca.27

Rule 12140(e)(9) currently permits the 

Exchange to apply a fine of $250 for the 

first occurrence, $500 for a second 

occurrence, $1,000 for a third 

occurrence, and formal disciplinary 

action for subsequent occurrences 

within any rolling twenty-four-month 

period. The proposed rule change 

updates the fine schedule to provide 

that, within any rolling twenty-fourmonth period, the Exchange may apply 

a fine of $1,000 for the first offense, 

$2,500 for a second offense, and $3,500 

for a third offense, and formal 

disciplinary action for subsequent 

offenses. Under this proposed 

amendment, any Floor Participant who 

violates Rule 8510(c)(2) regarding a 

Floor Market Maker’s Obligation of 

Continuous Open Outcry Quoting shall 

be subject to the fines listed below. 

Number of violations 

within any rolling 

24-month period 

Sanction 

First Offense ............. $1,000. 

Second Offense ........ $2,500. 

Third Offense ............ $3,500. 

Subsequent Offenses Formal Disciplinary 

Action. 

Floor Market Maker Quote Spread 

Parameters. The Exchange is also 

proposing to amend Rule 12140(e)(10) 

Floor Market Maker Quote Spread 

Parameters pursuant to BOX Rule 

8510(d)(1), to increase and strengthen 

the sanctions imposed under this 

section. The Exchange believes that 

increasing and strengthening these 

sanctions is appropriate to prevent 

participants from trading on BOX in 

order to get lower fines for violative 

conduct. The Exchange believes that 

increasing these trading floor related 

sanctions to be more consistent with the 

other options exchanges will allow the 

Exchange to more effectively deter 

trading floor violations. The Exchange 

notes that this proposed change will 

bring these sanctions in line with the 

sanctions imposed by NYSE Arca.28

Rule 12140(e)(10) currently permits the 

Exchange to give a letter of caution for 

a first occurrence, apply a fine of $250 

for a second occurrence, apply a fine of 

$500 for a third occurrence, and proceed 

with formal disciplinary action for 

subsequent occurrences within any 

rolling twenty-four-month period. The 

proposed rule change updates the fine 

schedule to provide that, within any 

rolling twenty-four-month period, the 

Exchange may apply a fine of $1,000 for 

the first offense, $2,500 for a second 

offense, $3,500 for a third offense, and 

formal disciplinary action for 

subsequent offenses. Under this 

proposed amendment, any Floor 

Participant who violates Rule 8510(d)(1) 

regarding legal bid/ask differential 

requirements shall be subject to the 

fines listed below. 

Number of violations 

within any rolling 

24-month period 

Sanction 

First Offense ............. $1,000. 

Second Offense ........ $2,500. 

Third Offense ............ $3,500. 

Subsequent Offenses Formal Disciplinary 

Action. 

Floor Broker Failure to Honor the 

Priority of Bids and Offers. The 

Exchange is also proposing to amend 

Rule 12140(e)(11) Floor Broker Failure 

to Honor the Priority of Bids and Offers 

pursuant to BOX Rule 7610(d), to 

increase and strengthen the sanctions 

imposed under this section. The 

Exchange believes that increasing and 

strengthening these sanctions is 

appropriate to prevent participants from 

trading on BOX in order to get lower 

fines for violative conduct. The 

Exchange believes that increasing these 

trading floor related sanctions to be 

more consistent with the other options 

exchanges will allow the Exchange to 

more effectively deter trading floor 

violations. The Exchange notes that this 

proposed change will bring these 

sanctions in line with the sanctions 

imposed by NYSE Arca.29 Rule 

12140(e)(11) currently permits the 

Exchange to apply a fine of $500 for a 

first occurrence, $1,000 for a second 

occurrence, $2,000 for a third 

occurrence, and may proceed with 

formal disciplinary action for 

subsequent occurrences within any 

rolling twenty-four-month period. The 

proposed rule change updates the fine 

schedule to provide that, within any 

rolling twenty-four-month period, the 

Exchange may apply a fine of $1,000 for 

the first offense, $2,500 for a second 

offense, $5,000 for a third offense, and 

formal disciplinary action for 

subsequent offenses. Under this 

proposed amendment, any Floor 

Participant who violates Rule 7610(d) 

regarding a Floor Broker’s obligations in 

determining Time Priority Sequence 

shall be subject to the fines listed below. 

Number of violations 

within any rolling 

24-month period 

Sanction 

First Offense ............. $1,000. 

Second Offense ........ $2,500. 

Third Offense ............ $5,000. 

Subsequent Offenses Formal Disciplinary 

Action. 

Floor Broker Failure to Identify a 

Broker Dealer Order. The Exchange is 

also proposing to amend Rule 

12140(e)(12) Floor Broker Failure to 

Identify a Broker Dealer Order pursuant 

to BOX Rule IM–7580–2 to increase and 

strengthen the sanctions imposed under 

this section. The Exchange believes that 

increasing and strengthening these 

sanctions is appropriate to prevent 

participants from trading on BOX in 

order to get lower fines for violative 

conduct. The Exchange believes that 

increasing these trading floor related 

sanctions to be more consistent with the 

other options exchanges will allow the 

Exchange to more effectively deter 

trading floor violations. The Exchange 

notes that this proposed change will 

bring these sanctions in line with the 

sanctions imposed by NYSE Arca.30

Rule 12140(e)(12) currently permits the 

Exchange to apply a fine of $250 for a 

first occurrence, $500 for a second 

occurrence, $1,000 for a third 

occurrence, and may proceed with 

formal disciplinary action for 

subsequent offenses within any rolling 

twenty-four-month period. The 

proposed rule change updates the fine 


jspears on DSK121TN23PROD with NOTICES1
23900 Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 

31As noted above, this is current Rule 

12140(d)(10), but the Exchange is proposing to 

renumber certain subsections under 12140(d) due to 

the proposed addition of Rule 12140(d)(10) and 

(11). 

32As previously noted, these are current Rule 

12140(d)(11)–(13), but the Exchange is proposing to 

renumber certain subsections under 12140(d) due to 

the proposed addition of Rule 12140(d)(10) and 

(11). 

33 15 U.S.C. 78f(b). 

34 15 U.S.C. 78f(b)(5). 

35 Id. 

36 15 U.S.C. 78f(b)(6). 

37 15 U.S.C. 78f(b)(7) and 78f(d). 

schedule to provide that, within any 

rolling twenty-four-month period, the 

Exchange may apply a fine of $500 for 

the first offense, $1,500 for a second 

offense, $3,000 for a third offense, and 

formal disciplinary action for 

subsequent offenses. Under this 

proposed amendment, any Floor 

Participant who violates Rule IM–7580– 

2 regarding a Floor Broker’s 

responsibility to identify its orders shall 

be subject to the fines listed below. 

Number of violations 

within any rolling 

24-month period 

Sanction 

First Offense ............. $500. 

Second Offense ........ $1,500. 

Third Offense ............ $3,000. 

Subsequent Offenses Formal Disciplinary 

Action. 

The Exchange believes Exercise 

Limits (Rule 3140), Lead Market Maker 

Continuous Quoting (Rule 8050(e)), 

Maintenance, Retention, and Furnishing 

of Books, Records, and Other 

Information (Rule 10000), and AntiMoney Laundering Compliance Program 

(Rule 10070) to be minor in nature and 

consistent with violations at other 

options exchanges, and therefore 

proposes to add them to the list of rules 

in Rule 12140(d) eligible for a minor 

rule fine disposition. Particularly, the 

Exchange believes that violations of 

each of the rules listed above are 

suitable for incorporation into the 

MRVP because these violations are 

minor in nature and consistent with 

violations at other options exchange. 

The Exchange notes that the proposed 

change is intended to provide for greater 

consistency across the Exchange’s 

MRVP and the MRVPs of the other 

options exchanges. As detailed above, 

the Exchange is also proposing to 

increase and strengthen the fines for 

certain minor rule violations under Rule 

12140. The Exchange believes that the 

proposed increased fines will strengthen 

the Exchange’s ability to carry out its 

oversight and enforcement 

responsibilities in cases where full 

disciplinary proceedings are 

unwarranted in view of the minor 

nature of the particular violation. 

Specifically, the proposed rule change is 

designed to prevent fraudulent and 

manipulative acts and practices because 

it will provide the Exchange the ability 

to issue greater fines and more 

effectively deter violative conduct. 

The Exchange is also proposing to 

make additional technical and 

nonsubstantive changes to provide 

greater clarity and consistency within 

the Exchange’s MRVP and with the 

MRVPs of the other options exchanges. 

As a result of the proposed addition of 

Rules 12140(d)(10) and (d)(11) above, 

the proposed rule change subsequently 

renumbers current Rules 12140(d)(10), 

(11), (12), (13), and (14), to Rules 

12140(d)(12), (13), (14), (15), and (16), 

respectively. The Exchange is also 

proposing to amend the language within 

the fine schedules to use the terms ‘‘and 

Thereafter’’ and ‘‘Subsequent’’ instead 

of ‘‘or more’’ when detailing the number 

of violations. The Exchange proposes to 

update or more to and thereafter in Rule 

12140(d)(5) and (12),31 and or more to 

subsequent in Rules 12140(d)(7), and 

(13)–(15).32 There is no substantive 

difference in the Exchange’s 

interpretation between or more and 

subsequent or and thereafter. The 

purpose of the change is to provide 

greater clarity within the Exchange’s 

MRVP by using more consistent 

terminology. The Exchange believes 

these technical and nonsubstantive 

changes are reasonable and appropriate 

because they will increase readability of 

the MRVP and help prevent investor 

confusion. Further, these proposed 

changes will allow the Exchange to 

carry out its regulatory responsibility 

more quickly and efficiently by 

reducing confusion regarding 

terminology in the administration of the 

MRVP. The Exchange notes that the 

proposed change is intended to provide 

for greater consistency within the 

Exchange’s MRVP itself and with the 

MRVPs of the other options exchanges. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.33 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 34 requirements that the rules of 

an exchange be 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 regulating, clearing, settling, 

processing information with respect to, 

and 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. The 

Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 35 requirement that the rules of 

an exchange not be designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange further believes that the 

proposed rule changes to Rule 12140(d) 

are consistent with Section 6(b)(6) of the 

Act,36 which provides that members and 

persons associated with members shall 

be appropriately disciplined for 

violation of the provisions of the rules 

of the exchange, by expulsion, 

suspension, limitation of activities, 

functions, and operations, fine, censure, 

being suspended or barred from being 

associated with a member, or any other 

fitting sanction. As noted, the proposed 

rule change adds certain rules as eligible 

for a minor rule fine disposition under 

the Exchange’s MRVP. The Exchange 

believes that violations of these 

proposed rules are minor in nature and 

will be more appropriately disciplined 

through the Exchange’s MRVP and is 

proposing to amend the fine schedules 

applicable to these additional rules to 

appropriately sanctions such failures. 

The Exchange also believes that the 

proposed change is designed to provide 

a fair procedure for the disciplining of 

members and persons associated with 

members, consistent with Sections 

6(b)(7) and 6(d) of the Act.37 Rule 

12140, currently and as amended, does 

not preclude a Participant or person 

associated with or employed by a 

Participant from contesting an alleged 

violation and receiving a hearing on the 

matter with the same procedural rights 

through a litigated disciplinary 

proceeding. Finally, the Exchange 

believes that the proposed rule change 

will strengthen its ability to carry out its 

oversight responsibilities as a selfregulatory organization pursuant to the 

Act and reinforce its surveillance and 

enforcement functions. 

The Exchange believes that the 

proposed rule change to add certain 

rules as eligible for a minor rule fine 

disposition under its MRVP, which it 

considers violations of such rules to be 

minor in nature and consistent with 

violations at other options exchange, 

will assist the Exchange in preventing 

fraudulent and manipulative acts and 

practices and promoting just and 

equitable principles of trade, and will 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 23901 

38See Cboe Options Rule 13.15(g)(9). See also 

NYSE American Rule 9217(iii)(17). See also NYSE 

Arca Rule 10.12(k)(i)(39). 

39See Cboe Options Rule 13.15(g)(9). 

40See Cboe Options Rule 13.15(g)(1). See also 

NYSE American Rule 9217(iii)(17). See also NYSE 

Arca Rule 10.12(k)(i)(21). 

serve to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, protect 

investors and the public interest. The 

Exchange believes violations of the 

above-listed rules to be minor in nature 

and therefore proposes to add them to 

the list of rules in Rule 12140(d) eligible 

for a minor rule fine disposition. 

Particularly, the Exchange believes that 

violations of each of the rules listed 

above are suitable for incorporation into 

the MRVP because these violations are 

generally minor in nature and consistent 

with violations at other options 

exchange. Further, the Exchange will be 

able to carry out its regulatory 

responsibility more quickly and 

efficiently by incorporating these 

violations into the MRVP. 

Specifically, the Exchange believes 

the adoption of Rule 12140(d)(10) 

Maintenance, Retention and Furnishing 

of Books, Records and Other 

Information pursuant to BOX Rule 

10000 is appropriate because it will 

help deter BOX Participants from failing 

to make, keep current, and preserve 

such books and records as required, or 

failure to furnish such books and 

records in a timely manner upon request 

by the Exchange. The Exchange believes 

that adding this rule to the MRVP will 

allow the Exchange to carry out its 

regulatory responsibility more quickly 

and efficiently. The Exchange believes 

that the lesser penalty of $500 for an 

initial violation and then providing 

higher fines for second and third 

violations and the option of a fine of 

$5000 or formal disciplinary 

proceedings for a fourth violation and 

thereafter during a rolling twenty-fourmonth period is appropriate. This will 

allow the Exchange to levy 

progressively larger fines and greater 

penalties against repeat-offenders. The 

Exchange believes this fine structure 

may serve to deter repeat-offenders 

while providing a reasonable penalty for 

a first offense within a rolling twentyfour-month period. The Exchange 

believes that adding this rule to the 

MRVP will allow the Exchange to carry 

out its regulatory responsibility more 

quickly and efficiently in regard to 

violations of BOX Rule 10000. 

The Exchange believes the adoption 

of Rule 12140(d)(11), Anti-Money 

Laundering Compliance Program 

pursuant to BOX Rule 10070 is 

appropriate because it will help deter 

BOX Participants from failing to satisfy 

the requirements of the anti-money 

laundering compliance program. The 

Exchange believes that adding this rule 

to the MRVP will allow the Exchange to 

carry out its regulatory responsibility 

more quickly and efficiently in regard to 

violations of BOX Rule 10070. The 

Exchange believes that the proposed 

fine structure permitting the Exchange 

to apply a fine of $1,000 for a first 

violation and $2,500 for subsequent 

violations is appropriate as this will 

effectively penalize both first time and 

repeat offenders. The Exchange believes 

that the proposed fines will be sufficient 

to warn against and help deter 

potentially violative conduct. The 

Exchange believes that adding this rule 

to the MRVP will allow the Exchange to 

carry out its regulatory responsibility 

more quickly and efficiently in regard to 

violations of BOX Rule 10070. 

The Exchange believes that amending 

Rule 12140(d)(6), Continuous Quotes to 

include continuous quoting violations 

by Lead Marker Makers pursuant to 

BOX Rule 8055(c)(1) is appropriate 

because it will allow the Exchange to 

carry out its regulatory responsibility 

quickly and efficiently in a manner that 

is consistent with the way it handles 

Market Maker continuous quoting 

violations. The Exchange notes that 

Cboe Options, and NYSE Arca have rule 

provisions in their minor rule violation 

plans that address Market Maker and 

Lead Market Maker continuous quoting 

obligations.38 Rule 12140(d)(6) currently 

permits the Exchange to give a letter of 

caution for the first violation within one 

calendar year. For subsequent offenses 

during the same period, the fine 

schedule permits the Exchange to issue 

a fine of $300 per day. The proposed 

rule change increases and strengthens 

the fine schedule to provide that, during 

one calendar year, the Exchange may 

give a letter of caution for a first 

violation, may apply a fine of $1,500 for 

a second violation, may apply a fine of 

$3,000 for a third violation, and may 

proceed with formal disciplinary action 

for subsequent offenses. The Exchange 

believes that maintaining the lesser 

penalty (letter of caution) for a first 

offense and then providing higher fines 

for second and third offenses and, 

ultimately, formal disciplinary 

proceedings for any subsequent offenses 

during one calendar year is appropriate. 

This will allow the Exchange to levy 

progressively larger fines and greater 

penalties against repeat-offenders (as 

opposed to a fine range for any offenses 

that may come after a first offense). The 

Exchange believes this fine structure 

may serve to deter repeat-offenders 

while providing reasonable warning for 

a first offense within one calendar year. 

The Exchange notes that the proposed 

fines will bring the sanctions for 

violations of continuous quoting 

obligations in line with the sanctions 

currently imposed by Cboe Options.39

The Exchange believes that adding 

Lead Market Maker Continuous Quoting 

to Rule 12140(d)(6) within the MRVP 

will allow the Exchange to carry out its 

regulatory responsibility more quickly 

and efficiently in regard to violations of 

BOX Rule 8055(c)(1). The Exchange 

notes that the proposed change will also 

provide for greater consistency across 

the Exchange’s MRVP and the MRVPs of 

the other options exchanges. The 

Exchange believes violations of these 

rules to be minor in nature and would 

be more appropriately disciplined 

through the Exchange’s MRVP. As 

described above, and as is the case for 

all rule violations covered under Rule 

12140(d) and (e), the Exchange may 

determine that a violation of MarketMaker quoting obligations is intentional, 

egregious, or otherwise not minor in 

nature and choose to proceed under the 

Exchange’s formal disciplinary rules 

rather than its MRVP. 

The Exchange believes that amending 

Rule 12140(d)(1), Position Limits, to 

include violations of exercise limits 

pursuant to BOX Rule 3140 is 

appropriate because it will allow the 

Exchange to carry out its regulatory 

responsibility quickly and efficiently in 

a manner that is consistent with the way 

it handles violations of position limits. 

Violations of position and exercise 

limits on the Exchange generally occur 

contemporaneously, so adding exercise 

limits to the existing position limits 

minor rule violation will allow the 

Exchange to address these related 

violations more effectively. The 

Exchange is proposing to keep the fine 

levels for exercise limit violations the 

same as the current fine levels for 

position limits. The Exchange notes that 

this proposal is consistent with the 

MRVPs in place at Cboe Options, NYSE 

American, and NYSE Arca.40

The Exchange believes that increasing 

and strengthening the sanctions in Rule 

12140(d)(5) and (12) is appropriate to 

prevent participants from trading on 

BOX in order to get lower fines for 

violative conduct. The Exchange 

believes that increasing these sanctions 

will allow the Exchange to provide more 

appropriate punishments and more 

effectively deter violations of this 

nature. As such, the Exchange believes 

that this will assist the Exchange in 

preventing fraudulent and manipulative 


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23902 Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 

41See supra note 14. 

42See NYSE Arca Rule 10.12. 

acts and practices and promoting just 

and equitable principles of trade and 

will serve to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, protect 

investors and the public interest. 

The Exchange believes that the 

proposed rule change to adopt Rule 

12140(d)(10) and (11), and amend Rule 

12140(d)(1), (5), (6), (10), (12), (13), and 

(14) will assist the Exchange in 

preventing fraudulent and manipulative 

acts and practices and promoting just 

and equitable principles of trade and 

will serve to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, protect 

investors and the public interest. The 

Exchange notes that the proposed 

updates to the minor rule violations and 

subsequent sanctions will bring them 

more in line with the MRVPs in place 

at NYSE American, NYSE Arca, and 

Cboe Options, will promote greater 

consistency across the options 

exchanges and reduce investor 

confusion. 

The Exchange believes that the 

proposed technical and clarifying 

changes are appropriate and benefit 

investors by adding clarity to the rules. 

The Exchange believes that the 

proposed rule change to renumber 

current Rules 12140(d)(10), (11), (12), 

(13), and (14), to Rules 12140(d)(12), 

(13), (14), (15), and (16), respectively, 

will benefit investors by adding clarity 

to the rules. The Exchange believes that 

updating the language to use ‘‘offense’’ 

instead of ‘‘occurrence’’ and ‘‘rolling’’ 

instead of ‘‘running’’ within the fine 

schedule is appropriate will provide 

greater consistency in the terminology 

used within the Exchange’s MRVP and 

with the MRVPs of the other options 

exchanges. There is no substantive 

difference in the Exchange’s 

interpretation between offense and 

occurrence and running and rolling. The 

purpose of the change is to provide 

greater clarity within the Exchange’s 

MRVP by using more consistent 

terminology throughout. The Exchange 

also believes that amending the 

language within the fine schedules to 

use the terms ‘‘and Thereafter’’ and 

‘‘Subsequent’’ instead of ‘‘or more’’ 

when detailing the number of violations 

will provide more clarity and may 

reduce investor confusion. There is no 

substantive difference in the Exchange’s 

interpretation between ‘‘or more’’ and 

‘‘subsequent’’ or ‘‘and thereafter’’. The 

purpose of the change is to provide 

greater clarity within the Exchange’s 

MRVP by using more consistent 

terminology. The Exchange believes 

these technical and nonsubstantive 

changes are reasonable and appropriate 

because they will increase readability of 

the MRVP and help prevent investor 

confusion. Further, these proposed 

changes will allow the Exchange to 

carry out its regulatory responsibility 

more quickly and efficiently by 

reducing confusion regarding 

terminology in its administration of the 

MRVP. The Exchange notes that the 

proposed change will also provide for 

greater consistency between the 

Exchange’s MRVP and the MRVPs of the 

other options exchanges, which is 

designed to benefit investors by 

providing more consistent language 

among the various options exchanges. 

The Exchange believes that the 

proposed rule change to update the fine 

schedule and language applicable to 

minor rule violations related to certain 

Trading Floor violations listed in Rule 

12140(e) to increase the sanctions will 

assist the Exchange in preventing 

fraudulent and manipulative acts and 

practices and promoting just and 

equitable principles of trade, and will 

serve to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general, protect 

investors and the public interest. 

Particularly, the Exchange believes that 

updating the fine schedule applicable to 

minor rule violations related to certain 

Trading Floor violations does not 

directly impact trading on the Exchange, 

maintenance of a fair and orderly 

market, and/or customer protection. The 

Exchange adopted the minor rule 

violations and corresponding fines 

under Rule 12140(e) in 2017 following 

the establishment of the BOX Trading 

Floor.41 In 2017, the Exchange believed 

it appropriate to adopt lower fine 

amounts as the new trading floor was 

established and to be more consistent 

with the other fines listed within the 

Exchange’s MRVP. However, the 

Exchange’s Trading Floor is now wellestablished, and the Exchange believes 

that increasing and strengthening these 

sanctions is appropriate to prevent 

participants from trading on BOX in 

order to get lower fines for violative 

conduct. The Exchange believes that 

increasing certain trading floor related 

sanctions to be more consistent with the 

other options exchanges will allow the 

Exchange to more effectively deter 

trading floor violations. The Exchange 

notes that this proposed change will 

bring the sanctions more in line with 

the fine schedules at NYSE Arca.42 As 

such, the proposed rule change is also 

designed to benefit investors by 

providing more consistent penalties 

across the MRVPs of the Exchange and 

another exchange. 

The Exchange believes that updating 

the language within certain minor rule 

violation listed within Rule 12140 to 

use the term ‘‘violation’’ instead of 

‘‘occurrence’’ when detailing the 

number of violations within the fine 

schedules will provide greater clarity 

and consistency in the terminology used 

within the Exchange’s MRVP. Within 

the MRVP, the Exchange interprets 

violation to mean one instance and 

multiple violations may be deemed to 

constitute one offense. The Exchange 

believes that changing offense to 

violation in BOX Rule 12140(d)(3) and 

(e)(1)–(12) is appropriate because it will 

help clarify this distinction between 

offense and violation by updating the 

language in the MRVP to only use the 

term offense when the listed fines cover 

multiple violations grouped together. 

The Exchange also believes that the 

proposed technical changes to renumber 

and update the language in certain 

minor rule violations would not be 

inconsistent with the public interest and 

the protection of investors because 

investors will not be harmed and in fact 

would benefit from increased clarity 

and transparency, thereby reducing 

potential confusion. 

In requesting the proposed additions 

to BOX Rule 12140(d), the Exchange in 

no way minimizes the importance of 

compliance with Exchange Rules and all 

other rules subject to the imposition of 

fines under the MRVP. Minor rule fines 

provide a meaningful sanction for minor 

or technical violations of rules when the 

conduct at issue does not warrant 

stronger, immediately reportable 

disciplinary sanctions. The inclusion of 

a rule in the Exchange’s MRVP does not 

minimize the importance of compliance 

with the rule, nor does it preclude the 

Exchange from choosing to pursue 

violations of eligible rules through a 

Letter of Consent if the nature of the 

violations or prior disciplinary history 

warrants more significant sanctions. 

Rather, the Exchange believes that the 

proposed rule change will strengthen 

the Exchange’s ability to carry out its 

oversight and enforcement 

responsibilities in cases where full 

disciplinary proceedings are 

unwarranted in view of the minor 

nature of the particular violation. 

Rather, the option to impose a minor 

rule sanction gives the Exchange 

additional flexibility to administer its 

enforcement program in the most 

effective and efficient manner while still 

fully meeting the Exchange’s remedial 

objectives in addressing violative 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 77 / Thursday, April 21, 2022 / Notices 23903 

43Cboe Options, NYSE American, and NYSE Arca 

have rule provisions in their minor rule violation 

plans that address exercise limits and market maker 

continuous quoting obligations. NYSE Arca and 

Cboe Options have rule provisions in their MRVPs 

that address failures related to AML Program 

Implementation. Additionally, NYSE Arca has rule 

provisions in its MRVP that address various 

recordkeeping violations. See Cboe Options Rule 

13.15(g). See also NYSE American Rule 9217. See 

also NYSE Arca Rule 10.12. 

44 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. 

conduct. Specifically, the proposed rule 

change is designed to prevent 

fraudulent and manipulative acts and 

practices because it will provide the 

Exchange the ability to issue a minor 

rule fine for violations relating to the 

Anti-Money Laundering Compliance 

Program (Rule 10070), Lead Market 

Maker Continuous Quoting (Rule 8055), 

Exercise Limits (Rule 3140), and 

Maintenance, Retention and Furnishing 

of Books, Records and Other 

Information (Rule 10000) where a more 

formal disciplinary action may not be 

warranted or appropriate. 

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 

proposed rule change is not intended to 

address competitive issues but rather is 

concerned solely with updating its 

MRVP in connection with rules eligible 

for a minor rule fine disposition. The 

Exchange believes the proposed rule 

changes, overall, will strengthen the 

Exchange’s ability to carry out its 

oversight and enforcement functions 

and deter potential violative conduct. 

The Exchange notes that the proposed 

additional violations are similar to 

minor rule violations designated in the 

MRVPs on other options exchanges.43

The Exchange believes the proposed 

rule changes, overall, will strengthen 

the Exchange’s ability to carry out its 

oversight and enforcement functions 

and deter potential violative conduct. 

Further, the proposal relates to the 

Exchange’s role and responsibilities as a 

self-regulatory organization and the 

manner in which it disciplines its 

Participants and associated persons for 

violations of its rules. As such, 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 neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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–2022–08 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–2022–08. 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–BOX–2022–08, and should 

be submitted on or before April 21, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.44

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08481 Filed 4–20–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94730; File No. SR–IEX– 

2022–03] 

Self-Regulatory Organizations: 

Investors Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Adopt on a 

Permanent Basis the Pilot Program for 

Market-Wide Circuit Breakers 

April 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 April 15, 

2022, the Investors Exchange LLC 

(‘‘IEX’’ 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. 


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