Federal Register / Vol. 81, No. 27 / Wednesday, February 10, 2016 / Notices 7171 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5Non-Auction Transactions are those transactions 

executed on the BOX Book. 

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 will also be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File No. SR–Phlx–2016– 

10 and should be submitted on or before 

March 2, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02606 Filed 2–9–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77055; File No. SR–BOX– 

2016–02] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

the Fee Schedule To Lower Certain 

Fees for Non-Auction Transactions on 

the BOX Market LLC (‘‘BOX’’) Options 

Facility 

February 4, 2016. 

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 

27, 2016, BOX Options Exchange LLC 

(the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act,3 and Rule 19b–4(f)(2) thereunder,4

which renders the proposal effective 

upon filing with the Commission. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of the Substance 

of the Proposed Rule Change 

The Exchange is filing with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

to amend the Fee Schedule to lower 

certain fees for Non-Auction 

transactions on the BOX Market LLC 

(‘‘BOX’’) options facility. While changes 

to the fee schedule pursuant to this 

proposal will be effective upon filing, 

the changes will become operative on 

February 1, 2016. The text of the 

proposed rule change is available from 

the principal office of the Exchange, at 

the Commission’s Public Reference 

Room and also on the Exchange’s 

Internet Web site at http://

boxexchange.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

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 make 

changes to Section I.A. of the BOX Fee 

Schedule, Exchange Fees for NonAuction Transactions. 

Specifically, the Exchange proposes to 

amend certain fees in the pricing model 

outlined in Section I.A. (Non-Auction 

Transactions).5 In this section, fees and 

credits are assessed depending on upon 

three factors: (i) The account type of the 

Participant submitting the order; (ii) 

whether the Participant is a liquidity 

provider or liquidity taker; and (iii) the 

account type of the contra party. NonAuction Transactions in Penny Pilot 

Classes are assessed different fees or 

credits than Non-Auction Transactions 

in Non-Penny Pilot Classes. 

Specifically, the Exchange proposes to 

reduce the Taker fees for Professional 

Customers, Broker Dealers and Market 

Makers interacting with Public 

Customers in Penny Pilot Classes. The 

fee for Professional Customers and 

Broker Dealers taking liquidity against 

Public Customers will be lowered to 

$0.50 from $0.64 and the fee for Market 

Makers taking liquidity against Public 

Customers will be lowered to $0.50 from 

$0.55. 

These transactions will remain 

exempt from the Liquidity Fees and 

Credits outlined in Section II of the BOX 

Fee Schedule. The revised fee structure 

for Non-Auction Transactions will be as 

follows: 

Account type Contra party 

Penny pilot classes Non-penny pilot classes 

Maker fee Taker fee Maker fee Taker fee 

Public Customer ............................... Public Customer ............................... $0.00 $0.00 $0.00 $0.00 

Professional Customer/Broker Dealer.0.00 0.00 0.00 0.00 

Market Maker ................................... 0.00 0.00 0.00 0.00 

Professional Customer or Broker 

Dealer.

Public Customer ............................... 0.60 0.50 0.95 1.07 

Professional Customer/Broker Dealer.0.25 0.40 0.35 0.40 

Market Maker ................................... 0.25 0.44 0.35 0.44 

Market Maker .................................... Public Customer ............................... 0.51 0.50 0.85 1.03 

Professional Customer/Broker Dealer.0.00 0.05 0.00 0.10 

Market Maker ................................... 0.00 0.29 0.00 0.29 


asabaliauskas on DSK9F6TC42PROD with NOTICES2
7172 Federal Register / Vol. 81, No. 27 / Wednesday, February 10, 2016 / Notices 

6 15 U.S.C. 78f(b)(4) and (5). 

7See Securities Exchange Act Release No. 73547 

(November 6, 2014), 79 FR 67520 (November 13, 

2014) (Notice of Filing and Immediate Effectiveness 

of SR–BOX–2014–25). 

8Miami Securities International Exchange, LLC 

(‘‘MIAX’’) charges $0.45 to firms and $0.47 to nonMIAX market makers, broker dealers and public 

customers other than priority customers for 

execution in Penny Pilot issues and NASDAQ OMX 

PHLX LLC (‘‘PHLX’’) charges $0.48 to professional 

customers, broker dealers and firms for execution 

in Penny Pilot issues. In addition, NASDAQ 

Options Market LLC (‘‘NOM’’) and BATS BZX 

Exchange (‘‘BATS’’) charge a $0.50 take fee for 

removing liquidity in Penny Pilot issues. 

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

10 17 CFR 240.19b–4(f)(2). 11 17 CFR 200.30–3(a)(12). 

The Exchange also proposes to make 

non-substantive technical chances [sic] 

to Section I.A. of the BOX Fee Schedule 

(Non-Auction Transactions) and remove 

references to credits. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act, 

in general, and Section 6(b)(4) and 

6(b)(5) of the Act,6 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees, and other 

charges among BOX Participants and 

other persons using its facilities and 

does not unfairly discriminate between 

customers, issuers, brokers or dealers. 

The proposed changes will allow the 

Exchange to be competitive with other 

exchanges and to apply fees and credits 

[sic] in a manner that is equitable among 

all BOX Participants. Further, the 

Exchange operates within a highly 

competitive market in which market 

participants can readily direct order 

flow to any other competing exchange if 

they determine fees at a particular 

exchange to be excessive. 

The Exchange believes it is equitable, 

reasonable and not unfairly 

discriminatory to assess fees according 

to the account type of the Participant 

originating the order and the contra 

party. This fee structure has been in 

place on the Exchange for some time 

and the Exchange is simply adjusting 

certain credits [sic] within the 

structure.7 The result of this structure is 

that a Participant does not know the fee 

it will be charged when submitting 

certain orders. Therefore, the Participant 

must recognize that it could be charged 

the highest applicable fee on the 

Exchange’s schedule, which may, 

instead, be lowered or changed to a 

credit depending upon how the order 

interacts. 

The Exchange believes the proposed 

fees for Non-Auction [sic] for 

Professional Customers, Broker Dealers 

and Market Makers when taking 

liquidity against Public Customers are 

reasonable, equitable and not unfairly 

discriminatory. The Exchange believes 

these fees are reasonable as they are in 

line with the current fees assessed by 

other competing exchanges.8

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes that the proposed 

adjustments to fees and rebates [sic] in 

the Non-Auction Transactions fee 

structure will not impose a burden on 

competition among various Exchange 

Participants. Rather, BOX believes that 

the changes will result in the 

Participants being charged appropriately 

for these transactions and are designed 

to enhance competition in Non-Auction 

transactions on BOX. Submitting an 

order is entirely voluntary and 

Participants can determine which type 

of order they wish to submit, if any, to 

the Exchange. Further, the Exchange 

believes that this proposal will enhance 

competition between exchanges because 

it is designed to allow the Exchange to 

better compete with other exchanges for 

order flow. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Exchange Act 9 and 

Rule 19b–4(f)(2) thereunder,10 because 

it establishes or changes a due, or fee. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend the rule change if 

it appears to the Commission that the 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or would otherwise further 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BOX–2016–02 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–2016–02. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–BOX– 

2016–02, and should be submitted on or 

before March 2, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02607 Filed 2–9–16; 8:45 am] 

BILLING CODE 8011–01–P 


asabaliauskas on DSK9F6TC42PROD with NOTICES2