Document ID: SEC-2019-0292-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BOX Exchange LLC
Posted Date: 2019-03-18T04:00Z

[Federal Register Volume 84, Number 52 (Monday, March 18, 2019)]
[Notices]
[Pages 9856-9858]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04947]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85293; File No. SR-BOX-2019-05]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend the BOX 
Fee Schedule

March 12, 2019.
    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 February 28, 2019, BOX Exchange LLC (``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 Exchange. 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 to BOX Fee Schedule. 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 Exchange proposes to add Section VIII.B. (Fee Disputes) to the 
BOX Fee Schedule. Specifically, the Exchange proposes that all fee 
disputes concerning fees which are billed by the Exchange must be 
submitted to the Exchange in writing and must be accompanied by 
supporting documentation. All fee disputes must be submitted no later 
than sixty (60) calendar days after receipt of billing invoice. The 
Exchange notes that similar language exists at other options exchanges 
in the industry.\3\
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    \3\ See Nasdaq ISE, LLC (``ISE'') Options 7 Pricing Schedule 
Section 1(b). See also Miami International Securities Exchange LLC 
(``MIAX'') Fee Schedule cover page.

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[[Page 9857]]

    The Exchange provides Participants with both daily and monthly fee 
reports and thus believes Participants should be aware of any potential 
billing errors within sixty calendar days of receiving an invoice. 
Requiring that Participants dispute an invoice within this time period 
will encourage them to promptly review their invoices so that any 
disputed charges can be addressed in a timely manner while the 
information and data underlying those charges (e.g. applicable fees and 
order information) is still easily and readily available. This practice 
will avoid issues that may arise when Participants do not dispute an 
invoice in a timely manner, and will conserve Exchange resources that 
would have to be expended to resolve untimely billing disputes. The 
Exchange notes that this type of provision is common among other 
exchanges, which require that Participants dispute invoices within 
sixty days.\4\
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    \4\ Id.
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    The sixty days would first apply to invoices related to 
transactional billing in March 2019 and would apply thereafter. The 
Exchange proposes to apply the billing policy to all charges reflected 
in the BOX Fee Schedule.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\5\ in general, and Section 
6(b)(5) of the Act,\6\ in particular, in that it is designed to promote 
just and equitable principles of trade, 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, by 
providing a uniform practice for disputing fees.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the requirement that all billing disputes 
must be submitted, in writing, and with supporting documentation, 
within sixty calendar days from receipt of the invoice is reasonable 
and in the public interest because the Exchange provides ample tools to 
properly and swiftly monitor and account for various charges incurred 
in a given month. Specifically, the Exchange sends a monthly PDF 
invoice to all billing contacts outlining the charges, as well as daily 
and monthly transaction details to assist with monitoring trade-related 
charges. Moreover, the proposed fee dispute language, which will lower 
the Exchange's administrative burden, is substantially similar to 
billing dispute language at other options exchanges.\7\ Also, the 
Exchange's administrative costs would be lowered as a result of this 
policy because staff resources would not be diverted to review untimely 
requests regarding billing.
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    \7\ See supra note 3.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange notes note believe that the proposed change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The billing policy would 
apply uniformly to all BOX Participants. As discussed herein, the 
policy is similar to policies in place by other options exchanges.\8\
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    \8\ Id.
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    Further, this proposal would provide a cost savings to the Exchange 
in that it would alleviate processes related to the untimely review of 
billing disputes which divert staff resources away from the Exchange's 
regulatory and business purposes.
    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 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 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 after the date of the filing, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) \10\ 
thereunder.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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 requirement.
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    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) 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-2019-05 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-2019-05. 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-2019-05 and should be submitted on 
or before April 8, 2019.

[[Page 9858]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-04947 Filed 3-15-19; 8:45 am]
 BILLING CODE 8011-01-P