Document ID: SEC-2013-1140-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BOX Options Exchange LLC
Posted Date: 2013-06-25T04:00Z

[Federal Register Volume 78, Number 122 (Tuesday, June 25, 2013)]
[Notices]
[Pages 38087-38089]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15084]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69802; File No. SR-BOX-2013-30]

Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend BOX Rule 3150 (Reports Related to Position Limits)

June 19, 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 June 6, 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 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 3150 (Reports Related to 
Position Limits). 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

[[Page 38088]]

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 3150 (Reports Related to 
Position Limits) to exempt BOX Market Makers \3\ from the requirement 
to provide daily position reports. This change will permit the Exchange 
to harmonize BOX's Rules with the rules of other options exchanges, 
specifically the Chicago Board Options Exchange (``CBOE''), NYSE MKT 
LLC (``NYSE MKT''), NYSE Arca, Inc. (``NYSE Arca''), BATS Exchange, 
Inc. (``BATS''), International Securities Exchange, LLC (``ISE''), 
Miami International Securities Exchange, LLC (``MIAX''), and NASDAQ OMX 
PHLX LLC (``Phlx'').\4\
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    \3\ As defined in BOX Rule 100(a)(30).
    \4\ See CBOE Rule 4.13(b), NYSE MKT Rule 906(b), NYSE Arca Rule 
6.6(b), BATS Rule 18.10(b), ISE Rule 415(b), MIAX Rule 310(b), and 
Phlx Rule 1003(b).
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    The proposed rule change would amend the language in BOX Rule 
3150(b). Specifically, the proposed rule change will exempt a Market 
Maker that maintains an end of day position in excess of 10,000 non-
FLEX equity options contracts on the same side of the market from 
reporting whether such position is hedged and providing documentation 
as to how such position is hedged. This report is required at the time 
the subject account exceeds the 10,000 contract threshold and 
thereafter, for Customer accounts, when the position increases by 2,500 
contracts, and for proprietary accounts when the position increases by 
5,000 contracts. Currently all Options Participants, including Market 
Makers are required to provide these reports. The proposed language 
will eliminate the reporting burden for Market Makers, whose position 
information the Exchange can access as needed through the Options 
Clearing Corporation (``OCC''). Furthermore, as stated above the 
amended rule will make BOX's position limit reporting requirement 
consistent with that of other options exchanges.\5\
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    \5\ Id.
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Securities Exchange Act of 1934 
(the ``Act''),\6\ in general, and Section 6(b)(5) 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. In particular, the Exchange believes the proposed rule 
change will harmonize BOX's rules with the rules of other options 
exchanges. In addition, the Exchange believes that the proposed rule 
change will help ensure efficiency by exempting BOX Market Makers, 
whose position information can already be accessed through the OCC.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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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 is being proposed as a 
competitive response to harmonize BOX's rules with those of other 
options exchanges. The Exchange believes this proposed rule change is 
necessary to establish uniform rules regarding position limit 
reporting.
    Specifically, the proposed rule change will create consistency 
among industry rules. The Exchange does not believe the proposed rule 
filing will bring any unnecessary burden on intermarket competition as 
it is consistent with the other options exchanges' rules.\8\
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    \8\ See supra, note 4.
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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 significantly 
affect the protection of investors or the public interest, does not 
impose any significant burden on competition, and, by its terms, does 
not 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 \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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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)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and 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. The 
Exchange has satisfied this requirement.
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    At any time within sixty (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.

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-2013-30 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-2013-30. 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

[[Page 38089]]

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 offices of BOX. 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-2013-30, and should be 
submitted on or before July 16, 2013.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-15084 Filed 6-24-13; 8:45 am]
BILLING CODE 8011-01-P