75606 Federal Register / Vol. 79, No. 243 / Thursday, December 18, 2014 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Penny Pilot Program has been in effect on 

the Exchange since its inception in May 2012. See 

Securities Exchange Act Release Nos. 66871 (April 

27, 2012), 77 FR 26323 (May 3, 2012) (File No.10– 

206, In the Matter of the Application of BOX 

Options Exchange LLC for Registration as a 

National Securities Exchange Findings, Opinion, 

and Order of the Commission), 67328 (June 29, 

2012), 77 FR 40123 (July 6, 2012) (SR–BOX–2012– 

007), 68425 (December 13, 2012), 77 FR 75234 

(December 19, 2013) (SR–BOX–2012–021), 69789 

(June 18, 2013), 78 FR 37854 (June 24, 2013) (SR– 

BOX–2013–31), 71056 (December 12, 2013), 78 FR 

76691 (December 18, 2013) (SR–BOX–2013–56), 

and 72348 (June 9, 2014), 79 FR 33976 (June 13, 

2014) (SR–BOX–2014–17). The extension of the 

effective date and the revision of the dates to 

replace issues that have been delisted are the only 

changes to the Penny Pilot Program being proposed 

at this time. 

4 15 U.S.C. 78f(b). 

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– 

NYSEMKT–2014–100 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–NYSEMKT–2014–100. 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 the 

filing also will be available for 

inspection and copying at the NYSE’s 

principal office and on its Internet Web 

site at www.nyse.com. 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– 

NYSEMKT–2014–100 and should be 

submitted on or before January 8, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29617 Filed 12–17–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73822; File No. SR–BOX– 

2014–29] 

Self-Regulatory Organizations; BOX 

Options Exchange, LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Extend, 

Through June 30, 2015, the Pilot 

Program That Permits Certain Classes 

To Be Quoted in Penny Increments 

(‘‘Penny Pilot Program’’) 

December 11, 2014. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b-4 thereunder,2

notice is hereby given that on December 

10, 2014, BOX Options Exchange LLC 

(the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

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 7260 to extend, through June 30, 

2015, the pilot program that permits 

certain classes to be quoted in penny 

increments (‘‘Penny Pilot Program’’). 

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 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

Sections A, B, and C below, of the most 

significant aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to extend the 

effective time period of the Penny Pilot 

Program that is currently scheduled to 

expire on December 31, 2014, for an 

additional six months, through June 30, 

2015.3 The Penny Pilot Program permits 

certain classes to be quoted in penny 

increments. The minimum price 

variation for all classes included in the 

Penny Pilot Program, except for the 

QQQs, SPY and IWM, will continue to 

be $0.01 for all quotations in options 

series that are quoted at less than $3 per 

contract and $0.05 for all quotations in 

options series that are quoted at $3 per 

contract or greater. The QQQs, SPY and 

IWM, will continue to be quoted in 

$0.01 increments for all options series. 

The Exchange may replace any Pilot 

Program classes that have been delisted 

on the second trading day following 

January 1, 2015. The replacement 

classes will be selected based on trading 

activity for the six month period 

beginning June 1, 2014, and ending 

November 30, 2014. The Exchange will 

employ the same parameters to 

prospective replacement classes as 

approved and applicable under the Pilot 

Program, including excluding highpriced underlying securities. The 

Exchange will distribute a Regulatory 

Circular notifying Participants which 

replacement classes shall be included in 

the Penny Pilot Program. 

BOX is specifically authorized to act 

jointly with the other options exchanges 

participating in the Pilot Program in 

identifying any replacement class. 

2. Statutory Basis 

The Exchange believes that the 

proposal is consistent with the 

requirements of Section 6(b) of the Act,4

in general, and Section 6(b)(5) of the 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 79, No. 243 / Thursday, December 18, 2014 / Notices 75607 

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

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f)(6). 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f)(6)(iii). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change along with a brief 

description and the text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this pre-filing requirement. 

11 17 CFR 240.19b–4(f)(6)(iii). 

12For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

Act,5 in particular, in that it is designed 

to prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and 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. 

In particular, the proposed rule 

change, which extends the Penny Pilot 

for an additional six months through 

June 30, 2015 and changes the date for 

replacing Penny Pilot issues that were 

delisted to the second trading day 

following January 1, 2015, will enable 

public customers and other market 

participants to express their true prices 

to buy and sell options for the benefit 

of all market participants. This is 

consistent with the Act. 

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. To the 

contrary, this proposal is procompetitive because it allows Penny 

Pilot issues to continue trading on the 

Exchange. Moreover, the Exchange 

believes that the proposed rule change 

will allow for further analysis of the 

Pilot and a determination of how the 

Pilot should be structured in the future; 

and will serve to promote regulatory 

clarity and consistency, thereby 

reducing burdens on the marketplace 

and facilitating investor protection. The 

Pilot is an industry wide initiative 

supported by all other option 

exchanges. The Exchange believes that 

extending the Pilot will allow for 

continued competition between market 

participants on the Exchange trading 

similar products as their counterparts 

on other exchanges, while at the same 

time allowing the Exchange to continue 

to compete for order flow with other 

exchanges in option issues trading as 

part of the Pilot. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to paragraph (A) of 

section 19(b)(3) of the Exchange Act6

and Rule 19b–4(f)(6) thereunder.7

Because the proposed rule change does 

not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days after the date of 

the filing, or such shorter time as the 

Commission may designate if consistent 

with the protection of investors and the 

public interest, the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 8 and Rule 

19b–4(f)(6)(iii) thereunder.9

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative prior to 30 days after 

the date of filing.10 However, pursuant 

to Rule 19b–4(f)(6)(iii),11 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because doing so will allow the Pilot 

Program to continue without 

interruption in a manner that is 

consistent with the Commission’s prior 

approval of the extension and expansion 

of the Pilot Program and would allow 

replacement of Penny Pilot classes that 

have been delisted. Accordingly, the 

Commission designates the proposed 

rule change as operative upon filing 

with the Commission.12

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BOX–2014–29 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–2014–29. 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– 

mstockstill on DSK4VPTVN1PROD with NOTICES

75608 Federal Register / Vol. 79, No. 243 / Thursday, December 18, 2014 / Notices 

13 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. 4 15 U.S.C. 78f(b). 5 15 U.S.C. 78f(b)(5). 

2014–29 and should be submitted on or 

before January 8, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29616 Filed 12–17–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73830; File No. SR– 

NYSEArca–2014–138] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Rule 6.62(k) To 

Disallow Market Orders From Being 

Eligible for Designation as An 

Immediate-or-Cancel Order 

December 12, 2014. 

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 December 

2, 2014, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

Rule 6.62(k) (Certain Types of Orders 

Defined) to disallow Market Orders from 

being eligible for designation as an 

Immediate-or-Cancel order (‘‘IOC 

Order’’). The text of the proposed rule 

change is available on the Exchange’s 

Web site at www.nyse.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend 

Rule 6.62(k) to disallow Market Orders 

from being eligible for designation as an 

IOC Order. 

Per Rule 6.62(k), an IOC Order is 

defined as ‘‘A Market or Limit Order 

that is to be executed in whole or in part 

on the Exchange as soon as such order 

is received, and the portion not so 

executed is to be treated as canceled.’’ 

Per Rule 6.62(a), ‘‘[a] Market Order is an 

order to buy or sell a stated number of 

option contracts and is to be executed 

at the best price obtainable when the 

order reaches the Exchange.’’ Market 

participants entering a Market Order are 

instructing the Exchange to execute 

their order in its entirety at the best 

price, immediately upon arrival at the 

Exchange, subject to Trade Collar 

Protection set forth in Rule 6.60(a). 

The Exchange believes that attaching 

the IOC time-in-force condition to a 

Market Order is unnecessary because 

Market Orders, by definition, are 

intended to be executed at the best price 

available at the Exchange. In essence, 

except when subject to Trade Collar 

Protection, a Market Order already 

operates similarly to an order with an 

IOC time-in-force condition. To 

streamline the offerings of Exchange 

order types, the Exchange therefore 

proposes to eliminate the ability to 

designate a Market Orders [sic] as an 

IOC Order. The Exchange believes the 

proposed change would assist with the 

maintenance of fair and orderly markets 

because it would reduce the complexity 

of order types available to market 

participants and would help clarify the 

nature of order types available for 

trading on the Exchange. 

Implementation 

The Exchange will announce the 

implementation date of this change 

through a Trader Update. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 4 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’), in general, and furthers the 

objectives of Section 6(b)(5),5 in 

particular, in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, and to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

Specifically, the Exchange believes the 

proposed change would assist with the 

maintenance of fair and orderly markets 

because it would reduce the complexity 

of order types available to market 

participants, thereby adding 

transparency and clarity to the 

Exchange’s rules, and would help 

clarify the nature of order types 

available for trading on the Exchange. 

The Exchange further believes that 

deleting the IOC time-in-force modifier 

for Market Orders would also remove 

impediments to and perfect the 

mechanism of a free and open market by 

ensuring that members, regulators and 

the public can more easily navigate the 

Exchange’s rulebook and better 

understand the order types available for 

trading on the Exchange. Moreover, the 

Exchange believes that the elimination 

of the IOC time-in-force modifier for 

Market Orders would simplify order 

processing and reduce the burden on 

system capacity, which the Exchange 

believes is consistent with promoting 

just and equitable principles of trade as 

well as protecting investors and the 

public interest. 

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. Specifically, 

the Exchange believes that the proposed 

rule change would relieve a burden on 

competition by eliminating an order 

type and streamlining the Exchange’s 

rule. In doing so, the proposed rule 

change would also serve to promote 

regulatory clarity and consistency, 

thereby reducing burdens on the 

marketplace and facilitating investor 

protection. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

mstockstill on DSK4VPTVN1PROD with NOTICES