48302 Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Notices 

12 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15The Exchange stated that, as it originally 

committed to do, it will notify market participants 

via an Equity Trader Alert once a specific date for 

the initial rollout is determined and will publish 

the symbols that are eligible for ELO on its Web 

site. 

16For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

17 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). 

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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act and Rule 19b– 

4(f)(6) thereunder.12

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 13 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 14

permits the Commission to 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 Exchange 

may immediately extend the ELO 

implementation date. The Exchange 

stated that it will not be able to 

implement ELO by the end of the third 

quarter of 2017. According to the 

Exchange, it has encountered 

unforeseen issues in developing ELO, 

and these issues will require additional 

thoughtful and methodical development 

efforts to ensure that risks are 

adequately addressed and the System 

will accurately account for the new ELO 

priority. The Exchange also stated that 

waiving the operative delay will allow 

it to implement the proposed 

implementation delay and provide 

notice to market participants thereof.15

The Commission believes that waiving 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest. Therefore, the 

Commission hereby waives the 

operative delay and designates the 

proposed rule change operative upon 

filing.16

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 

change 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– 

NASDAQ–2017–103 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2017–103. 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– 

NASDAQ–2017–103, and should be 

submitted on or before November 7, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–22392 Filed 10–16–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81852; File No. SR–BOX– 

2017–32] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

the Fee Schedule To Adopt a Strategy 

QOO Order Fee Cap 

October 11, 2017. 

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 

September 29, 2017, 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. 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Notices 48303 

5See BOX Rule 7600. The QOO Order must be 

entered as a two-sided order when it is submitted 

to the Exchange for execution through the BOX 

Order Gateway (‘‘BOG’’). 

6A ‘‘reversal strategy’’ is established by 

combining a short security position with a short put 

and a long call position that shares the same strike 

and expiration. A ‘‘conversion strategy’’ is 

established by combining a long position in the 

underlying security with a long put and a short call 

position that shares the same strike and expiration. 

A ‘‘jelly roll strategy’’ is created by entering into 

two separate positions simultaneously. One 

position involves buying a put and selling a call 

with the same strike price and expiration. The 

second position involves selling a put and buying 

a call, with the same strike price, but with a 

different expiration from the first position. A ‘‘box 

spread strategy’’ is a strategy that synthesizes long 

and short stock positions to create a profit. 

Specifically, a long call and short put at one strike 

is combined with a short call and long put at a 

different strike to create synthetic long and 

synthetic short stock positions, respectively. These 

definitions are identical to the terms defined in the 

Chicago Board Options Exchange, Inc. (‘‘CBOE’’) 

Fee Schedule; NYSE American Options Fee 

Schedule ‘‘(‘‘NYSE’’) and Phlx Pricing Schedule 

(‘‘PHLX’’), Strategy Caps on Multiply Listed 

Options Fees. 

7 15 U.S.C. 78f(b)(4) and (5). 

8See CBOE Fee Schedule Footnote 13; NYSE Fee 

Schedule, Limit of Fees on Options Strategy 

Executions on page 18; and Phlx Pricing Schedule, 

Strategy Caps on Multiply Listed Options Fees. 

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

10 17 CFR 240.19b–4(f)(2). 

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 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 October 2, 2017. 

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 amend the 

Fee Schedule for trading on BOX to 

establish monthly and daily fee caps for 

certain manual transactions fees on the 

BOX open-outcry Trading Floor 

(‘‘Trading Floor’’). Manual transactions 

consist of Qualified Open Outcry 

(‘‘QOO’’) Orders.5 A QOO Order must 

be entered as a two-sided order, an 

initiating side and a contra-side, and the 

QOO Order fees, rebates and applicable 

fee and rebate caps will apply to both 

sides of the order. 

Specifically, the Exchange proposes to 

add Section II.D ‘‘Strategy QOO Fee 

Cap’’ where manual transactions fees 

will be capped at $700 for all reversal, 

conversion, jelly roll, and box spread 

strategies 6 executed on the same trading 

day in the same option class. QOO 

Order fees in these combined Strategies 

will further be capped at $25,000 per 

month per Participant. The Exchange 

then proposes to specify that executions 

subject to the Strategy QOO Order Fee 

Cap will not be subject to the Broker 

Dealer manual transaction fee cap of 

$75,000 per month in Section II.A, and 

the QOO Order Rebate outlined in 

Section II.C. 

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,7 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees, and other 

charges among BOX Participants and 

other persons using its facilities and 

does not unfairly discriminate between 

customers, issuers, brokers or dealers. 

The Exchange believes that the 

proposed Strategy QOO Order fee cap is 

reasonable and appropriate. The 

proposed fee cap of $700 per day for 

certain strategies executed on the same 

trading day in the same option class; 

and $25,000 per month per Participant 

are the same amount strategy fee caps at 

a competing exchanges with an open 

outcry trading floor.8 Further, the 

Exchange believes that this proposed fee 

cap is equitable and not unfairly 

discriminatory because it provides 

incentives for all Participants to submit 

certain strategy orders to the BOX 

Trading Floor, which brings increased 

liquidity and order flow to the floor for 

the benefit of all market participants. 

Finally, the Exchange believes it is 

reasonable, equitable and not unfairly 

discriminatory to exempt all 

transactions subject to the Strategy QOO 

Fee Cap from the Broker Dealer monthly 

QOO fee cap and the QOO Order Rebate 

as additional incentives for these orders 

will no longer be necessary. 

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. Further, the 

Exchange does not believe that capping 

the fees for certain Strategy QOO Orders 

will impose an undue burned on intramarket competition because all Floor 

Participants are eligible for the fee cap. 

Further, the Exchange believes that the 

fee cap will promote competition by 

allowing the Exchange to remain 

competitive with other exchanges with 

open outcry trading floors. 

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 


sradovich on DSK3GMQ082PROD with NOTICES
48304 Federal Register / Vol. 82, No. 199 / Tuesday, October 17, 2017 / Notices 

11 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). 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BOX–2017–32 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–2017–32. 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– 

2017–32, and should be submitted on or 

before November 7, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–22389 Filed 10–16–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81850; File No. SR–BOX– 

2017–31] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Amend 

the Fee Schedule To Update Certain 

Fees Assessed Under Section VI.A 

(Connectivity Fees) 

October 11, 2017. 

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 

September 29, 2017, 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 [sic] to 

amend the Fee Schedule to update 

certain fees assessed under Section VI.A 

(Connectivity Fees). While changes to 

the fee schedule pursuant to this 

proposal will be effective upon filing, 

the changes will become operative on 

October 2, 2017. 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 amend the 

Fee Schedule for trading on BOX to 

update the connectivity fees that are 

assessed on market participants. 

Section VI.A. of the BOX Fee 

Schedule ‘‘Connectivity Fees’’, was 

created to detail the fees applicable to 

market participants who connect to the 

BOX market network at Point of 

Presence (‘‘PoP’’) sites. These sites are 

owned and operated by third-party 

external vendors, and the fees listed in 

this section are meant to encompass the 

fees that could be charged based on each 

market participant’s particular 

configuration. BOX does not assess 

Connectivity Fees; these fees are 

assessed by the datacenters and are 

billed directly to the market participant. 

Connectivity fees can include one-time 

set-up fees and monthly fees charged by 

the third-party vendor in exchange for 

the services provided to the market 

participant. 

The Exchange proposes to update the 

fees applicable for the datacenters 

where market participants may connect 

to the BOX network: NY4, owned and 

operated by Equinix; and 65 Broadway, 

owned and operated by 365 Main; and 

the connectivity fees applicable, 

depending upon connection type. 

Market participants are currently 

assessed the following fees when 

connecting to the BOX network: 

Connection Type 

NY4 65 Broadway 

One-time 

set-up Monthly One-time set-up Monthly 

POTS ............................................................................................................... $100 $25 $50 $25 

Ethernet ........................................................................................................... N/A N/A 250 175 


sradovich on DSK3GMQ082PROD with NOTICES