Document ID: SEC-2013-1811-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BOX Options Exchange, LLC
Posted Date: 2013-10-22T04:00Z

[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Notices]
[Pages 62765-62766]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24663]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70671; File No. SR-BOX-2013-46]

Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend BOX Rule 3130 (Exemptions From Position Limits)

October 11, 2013.
    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 October 2, 2013, BOX Options Exchange LLC (the ``Exchange'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the self-regulatory organization. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend BOX Rule 3130 (Exemptions from 
Position Limits) to simplify the position limit exemptions available to 
Options Participants. 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 amend BOX Rule 3130 (Exemptions from 
Position Limits) to simplify the position limit exemptions available to 
Options Participants. This is a competitive filing based on the rules 
of BX and BATS.\3\
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    \3\ See BX Chapter XIV, Section 8 and BATS Rule 18.8.
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    Specifically, the Exchange proposes to remove sections (b) through 
(e) of BOX Rule 3130. Once removed, section (a), ``Exemption Granted by 
Other Exchanges,'' will be the sole position limit exemption remaining. 
The Exchange believes that this exemption, which allows Participants to 
rely on applicable position limit exemptions granted by other 
exchanges, will result in increased uniformity among the exchanges and 
cause less confusion among all market participants. Furthermore the 
proposed change will have no impact on the position limit exemptions 
currently used by Participants on BOX. The Exchange has reviewed the 
position limit exemptions available at the other option exchanges and 
believes these represent all position limit exemptions that the 
Exchange is seeking to remove. The Exchange notes that this proposed 
change mimics the position limit exemption language used by BX and 
BATS.\4\ In addition, the Exchange believes that the proposed rule 
change will help ensure that the Exchange's rules regarding Exemptions 
from Position Limits will always be in alignment with FINRA's exemption 
rules,\5\ even if these change from time to time.
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    \4\ Id.
    \5\ See FINRA Rule 2360(b)(3)(A)(vii).
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with the

[[Page 62766]]

requirements of Section 6(b) of the Securities Exchange Act of 1934 
(the ``Act''),\6\ in general, and Section 6(b)(4) of the Act,\7\ in 
particular, in that it is designed to prevent fraudulent and 
manipulative acts and practices, to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in facilitating transactions in securities, to remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general to protect investors and the 
public interest.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
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    In particular, the Exchange believes the proposed rule change will 
provide greater clarity to market participants regarding the Exchange's 
rules. In addition, the Exchange believes that the proposed rule change 
will help ensure that the Exchange's rules regarding Exemptions from 
Position Limits will always be in alignment with FINRA's rules. 
Accordingly, this proposal is designed to harmonize the exemptions from 
position limits rules across exchanges and will help protect investors.

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. In this regard and as indicated 
above, the Exchange notes that the rule change being proposed is 
substantially similar to BX's and BATS's rules regarding Exemptions 
from Position Limits.\8\
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    \8\ See supra, note 3.
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    The Exchange believes this proposed rule change is necessary to 
establish uniform rules regarding Exemptions from Position Limits. 
Specifically, the proposed rule change will bring clarity and 
consistency to Exchange Rules by harmonizing the exemptions from 
position limits rules across exchanges and will therefore help protect 
investors. The Exchange does not believe the proposed rule change will 
impose any burden on any intramarket competition as it applies to all 
Participants. In addition, the Exchange does not believe the proposed 
rule filing will bring any unnecessary burden on intermarket 
competition as it is consistent with the ``Exemption from Position 
Limits'' rules of BX and BATS.\9\
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    \9\ See supra, note 3.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the 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 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 \10\ and Rule 19b-4(f)(6) 
thereunder.\11\ At any time within 60 days of the filing of such 
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.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 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.
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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-2013-46 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BOX-2013-46. 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 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-2013-46 and should be 
submitted on or before November 12, 2013.
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    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-24663 Filed 10-21-13; 8:45 am]
BILLING CODE 8011-01-P