Document ID: SEC-2016-0339-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BOX Options Exchange, LLC
Posted Date: 2016-02-25T05:00Z

[Federal Register Volume 81, Number 37 (Thursday, February 25, 2016)]
[Notices]
[Pages 9557-9559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03953]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77193; File No. SR-BOX-2016-09]

Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the Fee Schedule To Eliminate Certain Fees Which Relate to the 
Series 56 Examination and To Include Certain Fees Which Relate to 
Series 57 Examination and Continuing Education

February 19, 2016.
    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 February 9, 2016, 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.
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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)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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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 to 
delete the Continuing Education Fees and the Qualification Examination 
Fee which relate to the Series 56 registration category under the 
Regulatory Fees section of the BOX Fee Schedule on the BOX Market LLC 
(``BOX'') options facility. 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 delete the Continuing Education Fees and the Qualification 
Examination Fee

[[Page 9558]]

which relate to the Series 56 registration category under the 
Regulatory Fees section of the BOX Fee Schedule. The Financial Industry 
Regulatory Authority (``FINRA'') is retiring the Proprietary Traders 
Qualification Examination (Series 56) and the S501 Proprietary Traders 
Continuing Education Program and replacing them with the Securities 
Trader Qualification Examination (Series 57) and the S101 Continuing 
Education Program.\5\
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    \5\ See Securities Exchange Act Release Nos. 75783 (August 28, 
2015), 80 FR 53369 (September 3, 2015) (approving SR-FINRA-2015-017) 
and 75581 (July 31, 2015), 80 FR 47018 (August 6, 2015) (approving 
SR-FINRA-2015-015) collectively referred to herein as the ``FINRA 
Amendments''. According to the approval orders, FINRA's expected 
effective date for the FINRA Amendments is [sic] January 4, 2016.
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    Specifically, the Exchange proposes to delete the (i) $60.00 S501 
Continuing Education Fee for Series 56 and (ii) the $195.00 Series 56 
Examination Fee. The Exchange further proposes to add a (i) $55.00 S101 
Continuing Education Fee and (ii) a $120.00 Series 57 Examination Fee.
    BOX is proposing such Fee Schedule amendments in consultation with 
FINRA and the other exchanges, and anticipates that the other exchanges 
will make corresponding changes to their respective fee schedules.\6\
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    \6\ See Securities Exchange Act Release Nos. 76391 (November 9, 
2015), 80 FR 70862 (November 16, 2015) (SR-FINRA-2015-044) and 75581 
(July 31, 2015), 80 FR 47018 (August 6, 2015) (SR-FINRA-2015-015).
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Background
    BOX has amended its rules to establish the Securities Trader and 
Securities Trader Principal registration categories to establish the 
Series 57 examination as the appropriate qualification examination for 
Securities Traders and retire the Series 56 examination for Proprietary 
Traders, and to establish S101 as the appropriate continuing education 
program for Securities Traders and retire the S501 continuing education 
program for Proprietary Traders starting January 4, 2016.\7\
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    \7\ See Securities Exchange Act Release No. 76732 (December 22, 
2015), 80 FR 81390 (December 29, 2015) (SR-BOX-2015-38).
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    In accordance with BOX's amended rules relating to the new 
Securities Trader registration category, individual Participants and 
associated persons of Participants engaged in proprietary trading or 
the direct supervision of proprietary trading will be required to 
register with the Exchange as Securities Traders and be qualified by 
passing the new Securities Trader qualification examination (Series 57) 
being implemented by FINRA, unless grandfathered as provided for in the 
Rules. In addition, the Series 57 examination replaces the Series 56 
examination for those exchange registration categories, such as the 
Proprietary Trader Principal registration category, where the Series 56 
examination was the acceptable prerequisite.\8\
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    \8\ See supra note 7. These amended rule [sic] are effective as 
of January 4, 2016.
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    The Exchange has further amended its Rules, in consultation with 
FINRA and the other exchanges, to provide for the Continuing Education 
Regulatory Element for registered persons. The personalized S101 
Continuing Education Program will be the required Continuing Education 
Program for all registered persons including Securities Traders.
Proposal
    The Exchange proposes to amend its Fee Schedule to delete the (i) 
$60.00 Continuing Education Fee for Series 56 [sic] and the (ii) 
$195.00 Series 56 Examination Fee. The Exchange further proposes to add 
a $120.00 Series 57 Examination Fee which will be applicable with 
respect to the new Securities Trader Qualification Examination (Series 
57).
    The $100.00 fee charged for administration of the S101 Continuing 
Education program applicable to registrants required to take 
examinations other than the Series 56 will remain in effect, and become 
applicable to all registrants, if a continuing education session is 
conducted at a testing center from January 4, 2016 through no later 
than six months thereafter when the Continuing Education program will 
no longer be offered at testing centers. A new $55.00 fee will be 
applicable to all registrants from and after January 4, 2016 for the 
S101 Continuing Education program. The $195.00 fee currently charged 
for the Series 56 examination will be replaced with a $120.00 fee for 
the Series 57 examination starting January 4, 2016. Therefore, the 
Exchange is proposing to add the $55.00 S101 Continuing Education fee 
and the $120.00 Series 57 examination fee to the current BOX Fee 
Schedule. Additionally, the $60.00 fee currently charged for the 
administration of the S501 Continuing Education Program applicable to 
Series 56 is being retired starting January 4, 2016. Therefore, the 
Exchange is proposing to delete both the Series 56 examination fee and 
the $60.00 S501 Continuing Education fee from the current BOX Fee 
Schedule.
    Since the Series 57 and the S101 Continuing Education Program will 
fall within FINRA's jurisdiction, the related fees will be billed 
directly through FINRA commencing as of January 4, 2016.\9\
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    \9\ See supra note 6.
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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,\10\ 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.
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    \10\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that the proposal is fair, equitable and not 
unreasonably discriminatory because the fee change applies equally to 
all Participants and persons associated with Participants. The proposed 
deletion of the S501 Continuing Education Fees and Series 56 
Qualification Examination Fee is further reasonable because such 
Continuing Education program and exam will be replaced by the S101 
Continuing Education Program and Series 57 Qualification Examination 
Program. In addition, the Exchange believes that the fees added to the 
BOX Fee Schedule are equitably allocated and not unfairly 
discriminatory as they will apply uniformly to all Participants and 
persons associated with Participants who choose to take the Series 57 
examination and participate in the continuing education program through 
FINRA.

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. The Exchange further believes 
that the proposal does not impose any burden on competition because it 
believes that the other exchanges will also be making the same changes 
to their fee schedules.\11\
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    \11\ See supra notes 5 and 6.
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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.

[[Page 9559]]

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 \12\ and Rule 19b-4(f)(2) 
thereunder,\13\ because it establishes or changes a due, or fee.
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    \12\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \13\ 17 CFR 240.19b-4(f)(2).
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    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
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-BOX-2016-09 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-2016-09. 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-2016-09, and should be 
submitted on or before March 17, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-03953 Filed 2-24-16; 8:45 am]
 BILLING CODE 8011-01-P