Document ID: SEC-2018-1792-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BOX Exchange LLC
Posted Date: 2018-11-23T05:00Z

[Federal Register Volume 83, Number 226 (Friday, November 23, 2018)]
[Notices]
[Page 59432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25471]

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SECURITIES AND EXCHANGE COMMISSION

[Securities Exchange Act of 1934 Release No. 84614/November 16, 2018]

In the Matter of the BOX Exchange LLC Regarding a Suspension of 
and Order Instituting Proceedings To Determine Whether To Approve or 
Disapprove a Proposed Rule Change To Amend the Fee Schedule on the BOX 
Market LLC Options Facility To Establish BOX Connectivity Fees for 
Participants and Non-Participants Who Connect to the BOX Network (File 
No. SR-BOX-2018-24); Order Granting Petition for Review and Scheduling 
Filing of Statements

    This matter comes before the Securities and Exchange Commission 
(``Commission'') on petition to review the temporary suspension and 
institution of proceedings, through delegated authority, of the BOX 
Exchange LLC (f/k/a BOX Options Exchange LLC) (the ``Exchange'') 
proposed rule change to amend the fee schedule on the BOX Market LLC 
(``BOX'') options facility to establish certain connectivity fees and 
reclassify its high speed vendor feed connection as a port fee.
    On July 27, 2018, the Commission issued a notice of filing of the 
proposed rule change filed with the Commission pursuant to Section 
19(b)(1) of the Securities Exchange Act of 1934 (``Exchange Act'') \1\ 
and Rule 19b-4 \2\ thereunder.\3\ On September 17, 2018, the Division 
of Trading and Markets (``Division''), pursuant to delegated 
authority,\4\ issued an order temporarily suspending the proposed rule 
change pursuant to Section 19(b)(3)(C) of the Exchange Act \5\ and 
simultaneously instituting proceedings under Section 19(b)(2)(B) of the 
Exchange Act \6\ to determine whether to approve or disapprove the 
proposed rule change (``Order Instituting Proceedings'').\7\ On October 
17, 2018, the Commission received one comment letter on the proposed 
rule change, supporting the decision to suspend and institute 
proceedings on the proposed fee changes.\8\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 83728 (July 27, 
2018), 83 FR 37853 (August 2, 2018).
    \4\ 17 CFR 200.30-3(a)(57) and (58).
    \5\ 15 U.S.C. 78s(b)(3)(C).
    \6\ 15 U.S.C. 78s(b)(2)(B).
    \7\ See Securities Exchange Act Release No. 84168 (September 17, 
2018), 83 FR 47947 (September 21, 2018).
    \8\ See letter to Brent J. Fields, Secretary, Commission, from 
Theodore R. Lazo, Managing Director and Associate General Counsel, 
and Ellen Greene, Managing Director, Financial Services Operations, 
Securities Industry and Financial Markets Association, dated October 
15, 2018.
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    On September 19, 2018, pursuant to Rule 430 of the Commission Rules 
of Practice,\9\ the Exchange filed a notice of intention to petition 
for review of the Order Instituting Proceedings. Pursuant to Rule 
431(e) of the Commission Rules of Practice,\10\ a notice of intention 
to petition for review results in an automatic stay of the action by 
delegated authority. On September 26, 2018, the Exchange filed a 
petition for review of the Order Instituting Proceedings.
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    \9\ 17 CFR 201.430.
    \10\ 17 CFR 201.431(e).
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    Pursuant to Rule 431 of the Commission Rules of Practice,\11\ the 
Exchange's petition for review of the Order Instituting Proceedings is 
granted. Further, the Commission hereby establishes that any party to 
the action or other person may file a written statement in support of 
or in opposition to the Order Instituting Proceedings on or before 
December 10, 2018.
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    \11\ 17 CFR 201.431.
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    Further, the Commission finds that it is in the public interest to 
lift the stay during the pendency of the Commission's review. The 
Commission believes the continued suspension of the proposed rule 
change while the Commission conducts proceedings to consider the 
Exchange's proposal will allow the Commission to further consider the 
proposed fees' consistency with the Exchange Act without the risk of 
allowing a fee that is potentially inconsistent with the Exchange Act 
to remain in effect. The Commission also does not believe that lifting 
the stay precludes meaningful review of the Order Instituting 
Proceedings.
    For the reasons stated above, it is hereby:
    Ordered that the Exchange's petition for review of the Division's 
action, by delegated authority, to temporarily suspend the proposed 
rule change and simultaneously institute proceedings to determine 
whether to approve or disapprove the proposed rule change be granted; 
and
    It is further ordered that any party or other person may file a 
statement in support of or in opposition to the action made pursuant to 
delegated authority on or before December 10, 2018; and
    It is further ordered that the automatic stay of delegated action 
pursuant to Commission Rule of Practice 431(e) \12\ is hereby 
discontinued.
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    \12\ 17 CFR 201.431(e).
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    The order temporarily suspending such proposed rule change and 
instituting proceedings to determine whether to approve or disapprove 
such proposed rule change shall remain in effect.

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-25471 Filed 11-21-18; 8:45 am]
BILLING CODE 8011-01-P