Document ID: SEC-2022-0878-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BOX Exchange, LLC
Posted Date: 2022-07-05T04:00Z

[Federal Register Volume 87, Number 127 (Tuesday, July 5, 2022)]
[Notices]
[Pages 39880-39884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-14177]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95173; File No. SR-BOX-2022-21]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Allow Multi-
Leg Qualified Open Outcry Orders (``QOO Orders'') That Are Not Complex 
Orders To Trade in Penny Increments Regardless of the Minimum 
Increments Otherwise Applicable to the Individual Legs of the Multi-Leg 
QOO Order

June 28, 2022.
    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 June 17, 2022, BOX Exchange LLC (the ``Exchange'') 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 Exchange. The Exchange filed the proposed 
rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and 
Rule 19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to allow multi-leg Qualified Open Outcry 
Orders \5\ (``QOO orders'') that are not Complex Orders \6\ to trade in 
penny increments regardless of the minimum increments otherwise 
applicable to the individual legs of the multi-leg QOO order. 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.
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    \5\ See BOX Rule 7600(a)(4).
    \6\ See BOX Rule 7240(a)(7).
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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 purpose of the proposed rule change is to amend BOX Options 
Market LLC (``BOX'') Rule 7600 to allow multi-leg QOO orders that are 
not Complex Orders to be quoted and executed in $0.01 increments 
(``penny increments'') regardless of minimum increments otherwise 
applicable to the individual legs of the multi-leg QOO order. 
Currently, multi-leg QOO orders that are not Complex Orders respect the 
minimum trading increment for the series of the option contracts traded 
(e.g., $0.01, $0.05, $0.10).\7\ The Exchange now proposes to amend BOX 
Rule 7600(c) to allow multi-leg QOO orders to be quoted and executed in 
penny increments, regardless of the minimum increments otherwise 
applicable to the individual legs of the order. BOX notes that this is 
a competitive rule filing based on a similar proposal filed by Cboe 
Exchange Inc. (``Cboe'') and approved by the Commission.\8\ Currently, 
multi-leg QOO orders are only traded on the BOX Trading Floor.\9\ The 
Exchange does not propose to allow multi-leg orders that are not 
Complex Orders to trade electronically as detailed in the Cboe 
filing.\10\ BOX only intends to allow multi-leg QOO orders on the BOX 
Trading Floor to be quoted and traded in penny increments. BOX will 
file a proposal with the Commission if it intends to allow multi-leg 
orders to trade electronically. BOX does not generate Legging Orders on 
behalf of multi-leg QOO orders. BOX generates Legging Orders only on 
behalf of Complex Orders resting on the Complex Order Book.\11\
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    \7\ BOX notes that a recent Cboe proposal suggested that BOX's 
current rule is silent on the minimum increment for orders submitted 
for execution on BOX's trading floor and that Cboe has been informed 
by multiple market participants that are also members of BOX that 
they may execute multi-legged orders (with ratios greater than 
three-to-one or less than one-to-three) on BOX's trading floor in 
penny increments. See Securities Exchange Act Release No. 94204 
(February 9, 2022), 87 FR 8625 (February 15, 2022) (Notice of Filing 
of Amendment No. 1 and Order Granting Accelerated Approval of a 
Proposed Rule Change, as Modified by Amendment No. 1, To Amend Cboe 
Rule 5.4 and Make Corresponding Changes to Other Rules) (``Cboe 
Order''). The Exchange reiterates that multi-leg QOO Orders 
currently executed on the BOX Trading Floor are treated like single-
leg QOO Orders with respect to execution and priority. Further, and 
contrary to the exchange's representations, each component series 
(leg) of a multi-leg QOO order on the BOX Trading Floor respects the 
minimum trading increment for the series of the option contracts 
traded on the Exchange (e.g., $0.01, $0.05, $0.10). See BOX Comment 
Letter to SR-CBOE-2021-046 available at https://www.sec.gov/comments/sr-cboe-2021-046/srcboe2021046-9238319-250622.pdf.
    \8\ See Cboe Order.
    \9\ See BOX Rule 7600(a)(2).
    \10\ See supra note 5. [sic]
    \11\ See BOX Rule 7240(c).
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Background
    Complex Orders are defined on BOX as any order involving the 
simultaneous purchase and/or sale of two or more different options 
series in the same underlying security, for the same account, in a 
ratio that is equal to or greater than one-to-three (.333) and less 
than or equal to three-to-one (3.00) and for the purpose of executing a 
particular investment strategy.\12\ Bids and offers on Complex Orders 
may be expressed in any decimal price, and the leg(s) of a Complex 
Order may be executed in one penny increments, regardless of the 
minimum increments otherwise

[[Page 39881]]

applicable to the individual legs of the order.\13\
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    \12\ See BOX Rule 7240(a)(7).
    \13\ See BOX Rule 7240(b)(1).
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    Multi-leg QOO orders on the BOX Trading Floor differ from Complex 
QOO Orders as they may have a ratio that is less than one-to-three 
(.333) or greater than three-to-one (3.00). Further, multi-leg QOO 
orders must involve the simultaneous purchase and/or sale of two or 
more different options series in the same underlying security, for the 
same account, and for the purpose of executing a particular investment 
strategy. Each component series of a multi-leg QOO order must be 
executed at a price that is equal to or better than the NBBO for that 
series subject to the exceptions of BOX Rule 15010(b). Each component 
series of a multi-leg QOO order (1) may not trade through any equal or 
better priced Public Customer bids or offers on the BOX book for that 
series or any non-Public Customer bids or offers on the BOX book for 
that series that are ranked ahead of or equal to better priced Public 
Customer bids or offers, and (2) may not trade through any non-Public 
Customer bids or offers for that series on the BOX book that are priced 
better than the proposed execution price.\14\
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    \14\ See BOX Rule 7600(c).
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    BOX notes that multi-leg QOO orders require special pricing and 
handling. Bids and offers for multi-leg QOO orders are typically 
represented on the basis of a total debit or credit for the order. 
After a multi-leg QOO order executes at the total debit or credit, the 
parties to the trade record the contract quantities and prices for each 
component leg of the order. For multi-leg QOO orders executed in open 
outcry, this task is straightforward when the total debit or credit for 
a complex strategy is expressed in the minimum increment.\15\ However, 
if a multi-leg QOO order is unable to be expressed in increments 
smaller than the increment for the class (such as $0.05), it may be 
difficult for Floor Participants to obtain the desired prices for their 
customers' orders, because the parties on either side of the 
transaction must perform extra calculations to break down a complex 
order into the required contract quantities and prices to fit within 
the constraint of executing multi-leg QOO orders at a minimum increment 
other than $0.01.\16\ The result is that on active trading days, 
brokers executing these types of orders cannot be as efficient in 
representing other customer orders while spending time performing these 
calculations.
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    \15\ For example, assume the market for the November FB 225 
calls is 31 bid, 32 asked, and the market for the November FB 245 
calls is 19.50 bid and 20.50 asked. The fair value of a call spread 
comprised of one leg to buy and one leg to sell the same number of 
contracts of this series is 11.50 (the difference between the prices 
quoted for each option). If an order to buy 100 of the 225 calls and 
to sell 100 of the 245 calls is quoted and executed at a net debit 
of 11.50 (expressed in a multiple of the minimum increment), the 
parties to the trade can easily determine and record a price for 
each component option that comprises the Multi-Leg Order. Any 
combination of purchase and sale prices within the quoted ranges for 
the component options that yield a net debit or credit of 11.50 
could be used (e.g., 31.50 for the 225 calls, and 20 for the 245 
calls).
    \16\ Using the example in the previous footnote, if instead a 
customer wants to pay 11.48 rather than 11.50 for a Multi-Leg Order, 
in order to determine prices for the component options that are 
expressed in a multiple of $0.05 the Floor Broker must perform a 
series of calculations. In this case, the Floor Broker might 
determine that the trade must be split up into a 40-contract spread 
that traded at a net debit of 11.45 and a 60-contract spread that 
traded at a net debit of 11.50, which together yield a net debit of 
11.48 for the entire amount. This is ultimately a better net price 
for the customer.
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    The Exchange believes the proposed rule change will enable Floor 
Brokers to execute multi-leg QOO Orders more efficiently, including on 
behalf of customers that wish to execute highly complicated multi-leg 
QOO orders, by permitting the parties to execute the trades more 
expeditiously on the BOX Trading Floor. Additionally, the Exchange 
believes the proposed rule change may give Floor Brokers the 
flexibility to execute customers' multi-leg QOO orders with these 
larger ratios at better prices, rather than executing at prices that 
fit within the confines of a larger increment.
    The Exchange notes that it does not propose to change the priority 
rules for multi-leg QOO Orders. Specifically, each component series of 
a multi-leg QOO order that is not a Complex Order must be executed at a 
price that is equal to or better than the NBBO for that series subject 
to the exceptions of BOX Rule 15010(b). Each component series of a 
multi-leg QOO order (1) may not trade through any equal or better 
priced Public Customer \17\ bids or offers on the BOX Book \18\ for 
that series or any non-Public Customer bids or offers on the BOX Book 
for that series that are ranked ahead of or equal to better priced 
Public Customer bids or offers, and (2) may not trade through any non-
Public Customer bids or offers for that series on the BOX Book that are 
priced better than the proposed execution price.\19\ Better or equal 
priced Public Customer bids or offers are still protected along with 
certain non-Public Customer bids or offers as described above. To 
provide additional clarity with regard to how these bids and offers are 
protected, the Exchange proposes to add language to BOX Rule 7600(c) 
that states, ``the initiating side of a single leg QOO Order must 
execute against equal or better priced interest on the BOX Book as 
provided by Rules 7600(d) and (h) before executing against the contra-
side QOO Order.'' The Exchange also proposes to add language to BOX 
Rule 7600(c) that states, ``The initiating side of a multi-leg QOO 
order must execute against equal or better priced interest on the BOX 
Book as provided by Rules 7600(d) and (h) before executing against the 
contra-side QOO order.'' The Exchange believes the proposed language 
will provide clarity with regard to the execution and priority for QOO 
Orders on the BOX Trading Floor. The Exchange notes that the proposal 
does not change the execution or priority of QOO orders on the BOX 
Trading Floor.
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    \17\ See BOX Rule 100(53).
    \18\ See BOX Rule 100(10).
    \19\ See BOX Rule 7600(c).
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    The Exchange notes that Floor Brokers are responsible for handling 
all orders in accordance with Exchange priority and trade-through 
rules.\20\ Currently, pursuant to BOX Rule 7600(d), the initiating side 
of the QOO Order will match against any bids or offers on the BOX Book 
priced better than the contra-side, provided that an adequate book 
sweep size was provided by the Floor Broker pursuant to Rule 7600(h). 
If the number of contracts on the BOX Book that have priority over the 
contra-side order is greater than the book sweep size, then the QOO 
Order will be rejected.\21\ Similarly, at the same price as the contra-
side of the QOO Order, the initiating side of the QOO Order will match 
against Public Customer Orders on the BOX Book, along with any bids or 
offers of non-Public Customers ranked ahead of such Public Customer 
Orders on the BOX Book.\22\ In other words, BOX Rules 7600(c) and 
7600(d) establish the priority rules and BOX Rule 7600(h) provides a 
mechanism for fulfilling the requirements of these rules. Further, if a 
Floor Broker attempts to enter an order without providing an adequate 
book sweep size, the order will be rejected thus protecting higher 
priority orders on the BOX Book including Public Customer orders on the 
BOX Book.
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    \20\ See BOX Rule 7600(a).
    \21\ See BOX Rule 7600(h).
    \22\ See BOX Rule 7600(d)(2).
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    The Securities and Exchange Commission (``Commission''), on 
December 1, 2003, provided: ``Because of concerns that a higher ratio 
could provide market participants with a means to enter a ratio order 
that was designed primarily to gain priority over

[[Page 39882]]

orders on the limit order book or in the trading crowd, rather than to 
effectuate a bona fide trading or hedging strategy, the Commission 
would need to examine closely any proposal to provide a higher ratio 
for ratio orders and would be concerned about whether such a proposal 
would be consistent with investor protection and the public interest 
under the Act.'' \23\ While BOX allows Complex Orders to execute at a 
price that is equal to or better than the BOX BBO for each of the 
component series, among other conditions,\24\ the same is not true of 
multi-leg QOO Orders that are not Complex Orders. No change is being 
proposed to the priority of higher ratio orders, which allows Public 
Customer orders (among others) to remain protected, thus alleviating 
the Commission's concern about giving priority to higher ratio orders.
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    \23\ See Securities Exchange Act Release No. 48858 (December 1, 
2003), 68 FR 68128 (December 5, 2003) (SR-CBOE-2003-07).
    \24\ See BOX Rule 7240(b)(3)(iii).
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    The proposed rule change seeks to allow the execution of the legs 
of multi-leg QOO orders that are not Complex Orders in penny 
increments, regardless of the minimum increments otherwise applicable 
to the individual legs of the order as is currently allowed for Complex 
Orders.\25\ The Exchange understands that there may be some concerns 
that if the ratios are too greatly expanded, market participants will, 
for example, enter multi-legged strategies designed primarily to trade 
orders in a class in pennies that cannot otherwise execute as simple 
orders in that class in pennies rather than to effectuate a bona fide 
trading or hedging strategy. The Exchange believes it is highly 
unlikely that market participants will submit non-bona-fide trading 
strategies with larger ratios just to trade in penny increments. Adding 
a single leg to a larger order just to obtain penny pricing may further 
reduce execution opportunities for such an order, because it may be 
less likely that sufficient contracts in the appropriate ratio would be 
available. Additionally, as proposed, multi-leg QOO orders may not 
trade through any equal or better priced Public Customers on the BOX 
Book.\26\ Complex QOO Orders may trade at a price without giving 
priority to equivalent bids or offers in the individual series legs, 
provided that at least one options leg betters the corresponding bid or 
offer on the BOX Book by at least one minimum increment.\27\ However, 
Complex Order priority does not apply to multi-leg QOO orders.\28\ 
Therefore, if a market participant were to attempt to submit a multi-
leg QOO order primarily to trade in penny increments, it may need to 
improve more legs than a Complex Order, reducing any potential savings 
the market participant was attempting to achieve.
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    \25\ See BOX Rule 7240(b)(1).
    \26\ See BOX Rule 7600(c).
    \27\ See id.
    \28\ See 7600(c) and (d).
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    Further, the Exchange notes that the majority of volume traded on 
the Exchange in both simple and Complex Orders already trades in penny 
increments. Further, the Exchange notes that all option series traded 
on BOX can trade in penny increments in the Price Improvement Period 
(``PIP'') regardless of the minimum increment otherwise applicable.\29\ 
Therefore, the Exchange does not believe that permitting multi-leg QOO 
orders that are not Complex Orders to trade in penny increments will 
materially impact the volume that already executes in pennies on BOX.
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    \29\ See BOX Rules 7150(f)(2), 7150(k).
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    The Exchange again notes that another options exchange has similar 
rules that were recently approved by the Commission.\30\
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    \30\ See Cboe Rule 5.4(b).
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    Lastly, the Exchange proposes to amend Rule 7600(h) to add language 
that was inadvertently omitted when the Exchange established the rule. 
Specifically, BOX proposes to state that, ``A Floor Broker may, but is 
not required to, provide a book sweep size for Complex QOO Orders and 
multi-leg QOO orders. The book sweep size is the number of contracts, 
if any, of the initiating side of the Complex QOO Order or multi-leg 
QOO Order that the Floor Broker is willing to relinquish to orders and 
quotes on the BOX Complex Order Book and the BOX Book that have 
priority pursuant to Rule 7240(b)(2) and (3) and Rule 7600(c) (changes 
italicized). The Exchange believes that adding this language will 
provide clarity with respect to the book sweep size functionality and 
the multi-leg QOO orders on the BOX Trading Floor.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\31\ in general, and Section 
6(b)(5) of the Act,\32\ in particular, the requirements that the rules 
of an exchange be 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 regulating, 
clearing, settling, processing information with respect to, and 
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. 
Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) requirement that the rules of an 
exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers. In particular, the Exchange 
believes the proposed rule change will remove impediments to and 
perfect the mechanism of a free and open market and benefit investors, 
because it will provide market participants with the same pricing 
flexibility with respect to all their complex trading and hedging 
strategies. Market participants may determine that investment and 
hedging strategies on the BOX Trading Floor with ratios greater than 
three-to-one or less than one-to-three are appropriate for their 
investment purposes, and the Exchange believes it will benefit market 
participants if they have additional flexibility to price their 
investment and hedging strategies to achieve their desired investment 
results. The Exchange believes the proposed rule change will help 
protect investors by allowing market participants to receive the 
benefit of complex order pricing when executing bona fide multi-legged 
trading or hedging strategies. The Exchange sees no reason to restrict 
complex orders with a ratio of greater three-to-one (or less than one-
to-three) in a class with a minimum increment of $0.05 from being 
expressed in, or having their legs execute in, $0.01 increments while 
legs of Complex Orders with a ratio less than or equal to three-to-one 
(or greater than or equal to one-to-three) in the same class may be 
expressed in, and have their legs execute in, $0.01 increments. The 
proposed rule change will further remove impediments to and perfect the 
mechanism of a free and open market and a national market system, as 
another options exchange permits multi-leg orders with any ratio and 
their legs to trade in pennies.\33\ These changes will also enable 
Floor Brokers on the BOX Trading Floor to more efficiently execute 
multi-leg QOO orders including on behalf of customers that wish to 
execute highly complicated multi-leg QOO orders, by permitting the 
parties to execute the trades more expeditiously. Additionally, as 
discussed above, this may enable Floor Brokers to execute customers' 
multi-leg

[[Page 39883]]

QOO orders at better prices, rather than executing at prices that fit 
within the confines of a larger increment, which ultimately benefits 
investors. The proposed rule change will continue to protect Public 
Customer order interest on the BOX Book in the same manner it does 
today, as all multi-leg QOO orders that are not Complex Orders may not 
trade through any equal or better priced Public Customer bids or offers 
on the BOX Book for that series or any non-Public Customer bids or 
offers on the BOX Book for that series that are ranked ahead of or 
equal to better priced Public Customer bids or offers, and may not 
trade through any non-Public Customer bids or offers for that series on 
the BOX Book that are priced better than the proposed execution price. 
As such, BOX believes the proposed rule change is in the public 
interest, and therefore, consistent with the Act.
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    \31\ 15 U.S.C. 78f(b).
    \32\ 15 U.S.C. 78f(b)(5).
    \33\ See supra note 28. [sic]
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    Further, the Exchange believes that the proposed language in 
7600(c) regarding single-leg QOO orders and multi-leg QOO orders will 
provide clarity with regard to the execution and priority for these QOO 
Orders on the BOX Trading Floor. As such, BOX believes the proposed 
rule change is in the public interest, and therefore, 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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. The Exchange does not 
believe the proposed rule change will impose any burden on intramarket 
competition, as the proposed rule change will apply in the same manner 
to all Participants (i.e., all Participants may submit multi-leg QOO 
orders in penny increments). The Exchange does not believe the proposed 
rule change will impose any burden on intermarket competition, as it 
relates to the representation and execution of orders on the BOX 
Trading Floor and will continue to protect Public Customer Orders on 
the BOX Book. The Exchange believes the proposed rule change may 
promote competition, as market participants will have additional 
flexibility to execute their trading and hedging strategies in a more 
efficient manner as it will permit multi-leg QOO orders in the same 
class to trade in the same increments as Complex QOO Orders. 
Additionally, as discussed herein, another options market currently 
permits complex orders with ratios greater than three-to-one or less 
than one-to-three and their legs to execute in penny increments on its 
trading floor.\34\ Further, the Exchange believes that the proposed 
language in 7600(c) will not impose any burden on competition that is 
not necessary or appropriate in furtherance of the purposes of the Act 
as the proposed changes will provide clarity with regard to the 
execution and priority for these QOO Orders on the BOX Trading Floor. 
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.
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    \34\ Id. [sic].
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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 foregoing proposed rule change does not (a) 
significantly affect the protection of investors or the public 
interest; (b) impose any significant burden on competition; and (c) 
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 \35\ and Rule 19b-
4(f)(6) \36\ thereunder. 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 will 
institute proceedings to determine whether the proposed rule change 
should be approved or disapproved.
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    \35\ 15 U.S.C. 78s(b)(3)(A).
    \36\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \37\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\38\ 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. The Exchange states 
that another options exchange currently allows all complex orders to be 
quoted and executed in $0.01 increments, and that waiving the operative 
delay period will allow BOX to immediately provide investors with an 
additional venue to transact larger-ratio multi-leg QOO orders in $0.01 
increments.\39\ The Exchange further states that the proposal could 
allow Floor Brokers to execute complicated multi-leg QOO Orders more 
efficiently and expeditiously on the BOX Trading Floor and provide 
Floor Brokers with flexibility to execute customers' multi-leg QOO 
orders at better prices, rather than at prices that fit within the 
confines of a larger increment. The Exchange states that the proposed 
changes to BOX Rule 7600(c) will reduce potential investor confusion 
with regard to the execution and priority of QOO Orders on the BOX 
Trading floor, and that the proposed changes to BOX Rule 7600(h) will 
add language that was inadvertently omitted when the Exchange adopted 
the rule. The Commission finds that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest. 
The Commission notes that proposal does not raise new or novel 
regulatory issues because another options exchange currently allows all 
complex orders, including complex orders with a ratio less than one-to-
three or greater than three-to-one, to be quoted and executed in $0.01 
increments.\40\ Waiver of the operative delay will allow the Exchange 
to provide investors with an additional venue for quoting and executing 
larger-ratio complex orders in $0.01 increments. The Commission 
believes that the proposed changes to BOX Rule 7600(c) will benefit 
investors by helping to clarify the priority requirements applicable to 
QOO Orders, and that the proposed changes to BOX Rule 7600(h) will 
clarify that rule by adding language regarding multi-leg QOO Orders 
that was inadvertently omitted from the rule. For these reasons, the 
Commission designates the proposal operative upon filing.\41\
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    \37\ 17 CFR 240.19b-4(f)(6).
    \38\ 17 CFR 240.19b-4(f)(6)(iii).
    \39\ See Cboe Rule 5.4(b). See also Cboe Order, supra note 7.
    \40\ See id.
    \41\ For purposes only of accelerating the operative date of 
this proposal, the Commission has considered the proposed rule's 
impact on efficiency, competition, and capital formation. 15 U.S.C. 
78c(f).
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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 necessary or 
appropriate in the public interest, for the protection of

[[Page 39884]]

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 [email protected]. Please include 
File Number SR-BOX-2022-21.

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-2022-21. 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-2022-21, and should be submitted on 
or before July 26, 2022.
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    \42\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\42\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2022-14177 Filed 7-1-22; 8:45 am]
BILLING CODE 8011-01-P