Document ID: SEC-2022-0469-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BOX Exchange, LLC
Posted Date: 2022-04-06T04:00Z

[Federal Register Volume 87, Number 66 (Wednesday, April 6, 2022)]
[Notices]
[Pages 19985-19990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07183]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94563; File No. SR-BOX-2022-10]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Adopt BOX Rule 
7350 (Reports and Market Data Products), Move Rule 7130(a)(2) Detailing 
the High Speed Vendor Feed to Proposed Rule 7350, and Adopt Rule 
7350(b) (Liquidity Taker Event Report)

March 31, 2022.
    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 March 18, 2022, BOX Exchange LLC (``BOX'' or ``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 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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[[Page 19986]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to proposes to adopt BOX Rule 7350 (Reports 
and Market Data Products), move Rule 7130(a)(2) which details High 
Speed Vendor Feed (``HSVF'') to proposed Rule 7350, and adopt Rule 
7350(b) (Liquidity Taker Event Report). 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 adopt BOX Rule 7350 (Reports and Market 
Data Products) to provide for the new ``Liquidity Taker Event Report'' 
(the ``Report''). This is a competitive filing that is based on a 
proposal recently submitted by MIAX Emerald, LLC (``MIAX Emerald'') and 
approved by the Commission.\3\
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    \3\ See Securities Exchange Act Release No. 91787 (May 6, 2021), 
86 FR 26111 (May 12, 2021) (SR-EMERALD-2021-09) (Order Approving 
Proposed Rule Change to Adopt Exchange Rule 531(a), Reports, to 
Provide for a New ``Liquidity Taker Event Report''). See also 
Securities Exchange Act Release Nos. 92081 (June 1, 2021), 86 FR 
30344 (June 7, 2021) (SR-MIAX-2021-21) and 92082 (June 1, 2021), 86 
FR 30337 (June 7, 2021) (SR-PEARL-2021-25).
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    The Report is an optional product \4\ available to Participants.\5\ 
Currently, the Exchange provides real-time prices and analytics in the 
marketplace.\6\ The Exchange believes the additional data points 
outlined below may help Participants gain a better understanding about 
their interactions with the Exchange. The Exchange believes the Report 
will provide Participants with a chance to learn more about better 
opportunities to access liquidity and receive better execution rates. 
The proposed Report will increase transparency and democratize 
information so that all firms that subscribe to the Report have access 
to the same information on an equal basis, even for firms that do not 
have the appropriate resources to generate a similar report regarding 
interactions with the Exchange. None of the components of the proposed 
Report include real-time market data.
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    \4\ The Exchange intends to submit a separate filing with the 
Commission pursuant to Section 19(b)(1) to propose fees for the 
Liquidity Taker Event Report.
    \5\ The term ``Participant'' means a firm, or organization that 
is registered with the Exchange pursuant to the Rule 2000 Series for 
purposes of participating in trading on a facility of the Exchange. 
See BOX Rule 100(a)(41).
    \6\ See current BOX Rule 7130(a)(2).
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    Participants generally use a liquidity accessing order if there is 
a high probability that it will execute against an order resting on the 
BOX Book.\7\ The proposed Report would identify by how much time an 
order that may have been marketable missed an execution. The proposed 
Report will provide greater visibility into the missed trading 
execution, which will allow Participants to optimize their models and 
trading patterns to yield better execution results.
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    \7\ The term ``BOX Book'' means the electronic book of orders on 
each single option series maintained by the BOX Trading Host. See 
BOX Rule 100(a)(10).
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    The proposed Report will be a Participant-specific report and will 
help Participants to better understand by how much time a particular 
order missed executing against a specific resting order, thus allowing 
that Participant to determine whether it wants to invest in the 
necessary resources and technology to mitigate missed executions 
against certain resting orders on the BOX Book. For example, 
Participant A submits an order that is posted to the BOX Book and then 
Participant B enters a marketable order to execute against Participant 
A's resting order. Immediately thereafter, Participant C sends a 
marketable order to execute against Participant A's resting order. 
Because Participant B's order is received by the Exchange before 
Participant C's order, Participant B's order executes against 
Participant A's resting order. The proposed Report would provide 
Participant C the data points necessary for that firm to calculate by 
how much time they missed executing against Participant A's resting 
order. The Exchange proposes to provide the Report on a T+1 basis. As 
further described below, the Report will be specific and tailored to 
the Participant that is subscribed to the Report and any data included 
in the Report that relates to a Participant other than the Participant 
receiving the Report will be anonymized.
    The Exchange proposes to provide the Report in response to 
Participant demand for data concerning the timeliness of their incoming 
orders and executions against resting orders. The purpose of the Report 
is to provide Participants the necessary data in a standardized format 
on a T+1 basis to those that subscribe to the Report on an equal basis.
    Proposed Rule 7350(b) would provide that the Report is a daily 
report that provides a Participant (``Recipient Participant'') with its 
liquidity response time details for executions of an order resting on 
the BOX Book, where that Recipient Participant attempted to execute 
against such resting order within a certain timeframe.
Report Content
    Paragraph (b)(1) of Rule 7350 would describe the content of the 
Report and delineate which information would be provided regarding the 
resting order,\8\ the response that successfully executed against the 
resting order, and the response submitted by the Recipient Participant 
that missed executing against the resting order. It is important to 
note that the content of the Report will be specific to the Recipient 
Participant and the Report will not include any information related to 
any Participant other than the Recipient Participant. The Exchange will 
restrict all other market participants, including the Recipient 
Participant, from receiving another market participant's data.
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    \8\ Only displayed orders will be included in the Report. The 
Exchange notes that it does not currently offer any non-displayed 
orders types on its options trading platform.
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    Resting Order Information. Rule 7350(b)(1)(i) would provide that 
the following information would be included in the Report regarding the 
resting order: (A) The time the resting order was received by the 
Exchange; \9\ (B) symbol; (C) order ID, which is a unique reference 
number assigned to a new order at the time of receipt; (D) whether the 
Recipient Participant is an Affiliate \10\ of the Participant that

[[Page 19987]]

entered the resting order; \11\ (E) whether the resting order is from a 
Public Customer \12\ or non-Public Customer; \13\ (F) side (buy or 
sell); and (G) displayed price and size of the resting order.\14\
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    \9\ The time the Exchange received the resting order would be in 
nanoseconds and is the time the resting order was received by the 
Exchange's System.
    \10\ The term ``affiliate'' of or person ``affiliated with'' 
another person means a person who, directly, or indirectly, 
controls, is controlled by, or is under common control with, such 
other person. See BOX Rule 100(a)(1).
    \11\ The Report will simply indicate whether the Recipient 
Participant is an Affiliate of the Participant that entered the 
resting order and not include any other information that may 
indicate the identity of the Participant that entered the resting 
order.
    \12\ ``Public Customer'' means a person that is not a broker or 
dealer in securities. See BOX Rule 100(a)(52).
    \13\ A non-Public Customer is a Professional Customer, broker 
dealer or Market Maker on BOX. The Exchange notes that the 
information in proposed BOX Rule 7350(b)(1)(i)(E) differs slightly 
from the information provided in MIAX Emerald's Liquidity Taker 
Event Report due to the information already provided in the HSVF. 
The MIAX Emerald Liquidity Taker Event Report provides the origin 
type (e.g., Public Customer, Market Maker, etc.) of the resting 
order, information that is also available through MIAX Emerald's 
proprietary data feeds. See e.g., MIAX Order Feed Interface 
Specification available at https://www.miaxoptions.com/sites/default/files/pagefiles/MIAX_Emerald_MIAX_Options_Order_Feed_MOR_v1.0a_re.pdf. In 
comparison, the BOX HSVF only provides Public Customer bid/ask 
volume at the best limit. While the HSVF does not provide 
information on non-Public Customer origin types, if an order from a 
Public Customer is not present, then the volume reported on the HSVF 
will be 0 (zero), which in turn allows market participants to deduce 
that the other volume executed was from non-Public Customers. 
Further, the Exchange notes that the HSVF disseminates all resting 
orders executable on BOX and thus the information to be provided in 
the proposed Report can be inferred from information already 
provided in the BOX HSVF. As such, the proposed Liquidity Taker 
Event Report will conform to the information already available in 
the BOX HSVF.
    \14\ The Exchange notes that the displayed price and size are 
also disseminated via the Exchange's proprietary data feed and the 
Options Price Reporting Authority (``OPRA''). The Exchange also 
notes that the displayed price of the resting order may be different 
than the ultimate execution price. This may occur when a resting 
order is displayed and ranked at different prices upon entry to 
avoid a locked or crossed market.
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    Execution Information. Rule 7350(b)(1)(ii) would provide that the 
following information would be included in the Report regarding the 
execution of the resting order: (A) The BBO \15\ at the time of 
execution; \16\ (B) the NBBO \17\ at the time of execution; \18\ (C) 
the time first response that executes against the resting order was 
received by the Exchange and the size of the execution and type of the 
response; \19\ (D) the time difference between the time the resting 
order was received by the Exchange and the time the first response that 
executes against the resting order was received by the Exchange; \20\ 
and (E) whether the response was entered by the Recipient Participant. 
If the resting order executes against multiple contra-side responses, 
only the BBO and NBBO at the time of the execution against the first 
response will be included.
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    \15\ The term ``BBO'' means the best bid or offer on the 
Exchange.
    \16\ Exchange Rule 7350(b)(1)(ii)(A) would further provide that 
if the resting order executes against multiple contra-side 
responses, only the BBO at the time of the execution against the 
first response will be included.
    \17\ The term ``NBBO'' means the national best bid or offer, 
each as calculated by BOX based on market information received by 
BOX from OPRA. See BOX Rule 100(a)(34).
    \18\ Exchange Rule 7350(b)(1)(ii)(B) would further provide that 
if the resting order executes against multiple contra-side 
responses, only the NBBO at the time of the execution against the 
first response will be included.
    \19\ The time the Exchange received the response order would be 
in nanoseconds and would be the time the response was received by 
the Exchange's network, which is before the time the response would 
be received by the System.
    \20\ The time difference would be provided in nanoseconds.
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    Recipient Participant's Response Information. Rule 7350(b)(1)(iii) 
would provide that the following information would be included in the 
Report regarding response(s) sent by the Recipient Participant: (A) 
Recipient Participant ID; (B) the time difference between the time the 
first response that executes against the resting order was received by 
the Exchange and the time each response sent by the Recipient 
Participant was received by the Exchange, regardless of whether it 
executed or not; \21\ (C) time difference between the time the resting 
order was received by the Exchange and the time the response submitted 
by the Recipient Participant was received by the Exchange, regardless 
of whether it executed or not; \22\ (D) size and type of each response 
submitted by Recipient Participant; and (E) Response ID, which is a 
unique reference number attached to the response by the Recipient 
Participant.
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    \21\ For purposes of calculating this duration of time, the 
Exchange will use the time the resting order and the Recipient 
Participant's response(s) is received by the Exchange's network, 
both of which would be before the order and response(s) would be 
received by the System. This time difference would be provided in 
nanoseconds.
    \22\ The Exchange notes that this information is not provided in 
MIAX Emerald's Liquidity Taker Event Report. However, as discussed 
below, Participants can derive this information from information 
provided in the Report that is identical to information already 
provided in MIAX Emerald's Report. Specifically, Participants can 
take the sum of the time difference between the time the resting 
order was received by the Exchange and the time the first response 
that executes against the resting order was received by the 
Exchange, see proposed Rule 7350(b)(1)(ii)(D), and the time 
difference between the first response that executes against the 
resting order was received by the Exchange and the time of each 
response sent by the Recipient Participant, regardless of whether it 
executed or not, see proposed Rules 7350(b)(1)(ii)(D) and 
7350(b)(1)(iii)(B). By summing these values, the Participant could 
derive the time difference between the time the resting order was 
received by the Exchange and the time the response submitted by the 
Recipient Participant was received by the Exchange, regardless of 
whether it executed or not. This time difference would be provided 
in nanoseconds. As discussed above, the Exchange believes that 
providing this information is reasonable and appropriate as this 
data point is being derived from information already provided in the 
Report. Further, the Exchange believes providing this additional 
information in the Report is reasonable and appropriate as it will 
provide greater visibility into the missed trading execution, which 
will allow Participants to optimize their models and trading 
patterns to yield better execution results.
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Timeframe for Data Included in Report
    Paragraph (a)(2) would provide that the Report would include the 
data set forth under Rule 7350(b)(1) described above for executions and 
contra-side responses that occurred within 200 microseconds of the time 
the resting order was received by the Exchange.
Scope of Data Included in the Report
    Paragraph (b)(3) of Rule 7350 would provide that the Report will 
only include trading data related to the Recipient Participant and, 
subject to the proposed paragraph (4) of Rule 7350(b) described below, 
will not include any other Participant's trading data other than that 
listed in paragraphs (1)(i) and (ii) of Exchange Rule 7350(b) described 
above.
Historical Data
    Paragraph (b)(4) of Rule 7350 would specify that the Report will 
contain historical data from the prior trading day and will be 
available after the end of the trading day, generally on a T+1 basis.
    The Exchange also proposes to move Rule 7130(a)(2) to proposed Rule 
7350(a). The Exchange believes that moving the details regarding the 
High Speed Vendor Feed (``HSVF'') to the proposed Reports and Market 
Data Products rule (Rule 7350) will improve the overall readability of 
the BOX rules and help prevent investor confusion because all such 
market data information will reside in one place in the BOX Rulebook.
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''),\23\ in general, and Section 6(b)(5) of the Act,\24\ 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

[[Page 19988]]

and a national market system, and, in general to protect investors and 
the public interest. This proposal is in keeping with those principles 
in that it promotes increased transparency through the dissemination of 
the optional Report to those interested in subscribing to receive the 
data. Additionally, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \25\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers. The proposed Report is similar 
to a report previously adopted by MIAX Emerald.\26\
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    \23\ 15 U.S.C. 78f(b).
    \24\ 15 U.S.C. 78f(b)(5).
    \25\ 15 U.S.C. 78f(b)(5).
    \26\ See supra, note 3.
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    The Exchange believes the proposed Report will serve 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 
because it will benefit investors by facilitating their prompt access 
to the value-added information that is included in the proposed Report. 
The Report will allow Participants to access information regarding 
their trading activity that they may utilize to evaluate their own 
trading behavior and order interactions.
    The proposed Report is designed for Participants that are 
interested in gaining insight into latency in connection with orders 
that failed to execute against an order resting on the Exchange's Book 
by providing those Participants data to analyze by how much time their 
order may have missed an execution against a contra-side order resting 
on the Book. The Exchange believes that providing this optional latency 
data to interested Participants is consistent with facilitating 
transactions in securities, removing impediments to and perfecting the 
mechanism of a free and open market and a national market system, and, 
in general, protecting investors and the public interest because it 
provides greater visibility into the latency of Participants' incoming 
orders. Participants may use this data to optimize their models and 
trading patterns in an effort to yield better execution results by 
calculating by how much time their order may have missed an execution.
    The proposal is designed to offer latency information in a 
systematized way and standardized format to any Participant that 
chooses to subscribe to the Report. As a result, the proposal will make 
latency information for liquidity-seeking orders available in a more 
equalized manner and will increase transparency, particularly for 
Recipient Participants that may not have the expertise to generate the 
same information on their own. The proposed Report may better enable 
Recipient Participants to increase the fill rates for their liquidity-
seeking orders. At the same time, as is also discussed above, the 
Report is designed to prevent a Recipient Participant from learning 
other Participants' sensitive trading information. The Report would not 
be a real-time market data product, as it would provide only historical 
trading data for the previous trading day, generally on a T+1 basis. In 
addition, the data in the Report regarding incoming orders that failed 
to execute would be specific to the Recipient Participant's orders, and 
other information in the proposed Report regarding resting orders and 
executions would be anonymized if it relates to a Participant other 
than the Recipient Participant.
    The Report generally contains three buckets of information. The 
first two buckets include information about the resting order and the 
execution of the resting order. Some of this information is available 
from other public sources, such as OPRA and the Exchange's proprietary 
data feed, or is similar to information included in a report offered by 
another exchange. For example, OPRA provides bids, offers, and 
consolidated last sale and quotation information for options trading on 
all national securities exchanges, including the Exchange. In addition, 
the Exchange offers the High-Speed Vendor Feed (``HSVF'') which 
broadcasts BOX's real-time trading and statistical information 
(comprised of trades, quotes, market depth, strategies, bulletins, 
summaries, auctions, and other statistics).\27\
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    \27\ See current BOX Rule 7130(a)(2).
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    The first bucket of information contained in the Report for the 
resting order includes the time the resting order was received by the 
Exchange, the symbol, unique reference number assigned at the time of 
receipt, side (buy or sell), and the displayed price and size of the 
resting order. Further, the symbol, whether the resting order is from a 
Public Customer or non-Public Customer,\28\ side (buy or sell), and 
displayed price and size are also available either via OPRA or the 
Exchange's HSVF.\29\ The first bucket of information also indicates 
whether the Recipient Participant is an Affiliate of the Participant 
that entered the resting order. This data field will not indicate the 
identity of the Participant that entered the resting order and would 
simply allow the Recipient Participant to better understand the 
scenarios in which it may execute against the orders of its 
Affiliates.\30\
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    \28\ See supra note 13. As discussed above, the Exchange notes 
that one piece of data in the first bucket of information differs 
slightly from the information provided in MIAX Emerald's Liquidity 
Taker Event Report due to the information already provided in the 
HSVF. Specifically, the MIAX Emerald Liquidity Taker Event Report 
provides the origin type (e.g., Public Customer, Market Maker, etc.) 
of the resting order, information that is already available through 
MIAX Emerald's proprietary data feeds. See e.g., MIAX Order Feed 
Interface Specification available at https://www.miaxoptions.com/sites/default/files/page-files/MIAX_Emerald_MIAX_Options_Order_Feed_MOR_v1.0a_re.pdf. In 
comparison, the BOX HSVF only provides Public Customer bid/ask 
volume at the best limit. While the HSVF does not provide 
information on non-Public Customer origin types, if an order from a 
Public Customer is not present, then the volume reported on the HSVF 
will be 0 (zero), which in turn allows market participants to deduce 
that the other volume executed was from non-Public Customers. 
Further, the Exchange notes that the HSVF disseminates all resting 
orders executable on BOX and thus the information to be provided in 
the proposed Report can be inferred from information already 
provided in the BOX HSVF. As such, the proposed Liquidity Taker 
Event Report will conform to the information already available in 
the BOX HSVF.
    \29\ See current BOX Rule 7130(a)(2).
    \30\ The Exchange surveils to monitor for aberrant behavior 
related to internalized trades and identify potential wash sales.
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    The second bucket of information contained in the Report regards 
the execution of the resting order and includes the BBO and NBBO at the 
time of execution. These data points are also available either via OPRA 
or the Exchange's HSVF. The second bucket of information will also 
indicate whether the response was entered by the Recipient Participant. 
This data point is simply provided as a convenience. If not entered by 
the Recipient Participant, this data point will be left blank so as not 
to include any identifying information about other Participant 
activity. The second bucket of information also includes the size, time 
and type of first response that executes against the resting order; as 
well as the time difference between the time the resting order and 
first response that executes against the resting order are received by 
the Exchange. These data points would assist the Recipient Participant 
in analyzing by how much time their order may have missed an execution 
against a contra-side order resting on the Book.
    The third bucket of information is about the Recipient 
Participant's response(s) and the time their response(s) is received by 
the Exchange. This includes the time difference between the time the 
first response that executes against the resting order was received by 
the Exchange and the time

[[Page 19989]]

of each response sent by the Recipient Participant, regardless of 
whether it executed or not. Also included is the time difference 
between the time the resting order was received by the Exchange and the 
time the response submitted by the Recipient Participant was received 
by the Exchange. As stated above, these data points would assist the 
Recipient Participant in analyzing by how much time their order may 
have missed an execution against a contra-side order resting on the 
Book. This bucket would also include the size and type of each response 
submitted by the Recipient Participant, the Recipient Participant 
identifier, and a response reference number which is selected by the 
Recipient Participant. Each of these data points are unique to the 
Recipient Participant and should already be known by Recipient 
Participant even if not included in the Report. The Exchange notes one 
additional data point included in the third bucket of information that 
is not included in the information provided in MIAX Emerald's Report. 
Specifically, the Exchange proposes to include the time difference 
between the time the resting order was received by the Exchange and the 
time the response submitted by the Recipient Participant was received 
by the Exchange.\31\ As discussed herein, the Exchange believes that 
providing this information is reasonable and appropriate as this data 
point is being derived from information already provided in the Report 
that is identical to information already provided in the MIAX Emerald 
Report. Specifically, Participants can take the sum of the time 
difference between the time the resting order was received by the 
Exchange and the time the first response that executes against the 
resting order was received by the Exchange \32\ and the time difference 
between the first response that executes against the resting order was 
received by the Exchange and the time of each response sent by the 
Recipient Participant, regardless of whether it executed or not.\33\ By 
summing these values, the Participant could derive the time difference 
between the time the resting order was received by the Exchange and the 
time the response submitted by the Recipient Participant was received 
by the Exchange, regardless of whether it executed or not. This time 
difference would be provided in nanoseconds. Further, the Exchange 
believes providing this additional information in the Report is 
reasonable and appropriate as it will provide greater visibility into 
the missed trading execution, which will allow Participants to optimize 
their models and trading patterns to yield better execution results.
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    \31\ See Proposed Rule 7350(b)(1)(iii)(C).
    \32\ See proposed Rule 7350(b)(1)(ii)(D).
    \33\ See proposed Rule7350(b)(1)(iii)(B).
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    The Exchange proposes to provide the Report on a voluntary basis 
and no Participant will be required to subscribe to the Report. The 
Exchange notes that there is no rule or regulation that requires the 
Exchange to produce, or that a Participant elect to receive, the 
Report. It is entirely a business decision of each Participant to 
subscribe to the Report. The Exchange proposes to offer the Report as a 
convenience to Participants to provide them with additional information 
regarding trading activity on the Exchange on a delayed basis after the 
close of regular trading hours. A Participant that chooses to subscribe 
to the Report may discontinue receiving the Report at any time if that 
Participant determines that the information contained in the Report is 
no longer useful.
    In summary, the proposed Report will help to protect a free and 
open market by providing additional data (offered on an optional basis) 
to the marketplace and by providing investors with greater choices.\34\ 
Additionally, the proposal would not permit unfair discrimination 
because the proposed Report will be available to all Exchange 
Participants.
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    \34\ See Sec. Indus. Fin. Mkts. Ass'n (SIFMA), Initial Decision 
Release No. 1015, 2016 SEC LEXIS 2278 (ALJ June 1, 2016) (finding 
the existence of vigorous competition with respect to non-core 
market data).
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    The Exchange also proposes to move Rule 7130(a)(2) to proposed Rule 
7350(a). The Exchange believes that moving the details regarding the 
High Speed Vendor Feed (``HSVF'') to the proposed Reports and Market 
Data Products rule (Rule 7350) will benefit investors by improving the 
overall readability of the BOX rules and help prevent investor 
confusion by providing all such market data information in one place 
within the BOX Rulebook.

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 a filing submitted by MIAX Emerald that was 
recently approved by the Commission.\35\
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    \35\ See supra, note 3.
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    In this instance, the proposed rule change to offer the optional 
Report is in response to Participant interest. The Exchange does not 
believe the proposed Report will have an inappropriate burden on intra-
market competition between Recipient Participants and other 
Participants who do not receive the Report. As discussed above, the 
first two buckets of information included in the Report contain 
information about the resting order and the execution of the resting 
order, both of which are generally available to Participants that 
choose not to receive the Report from other public sources, such as 
OPRA and the Exchange's HSVF. The third bucket of information is about 
the Recipient Participant's response and the time their response is 
received by the Exchange, information which the Recipient Participant 
would be able to obtain without receiving the Report.\36\ Additionally, 
some Participants may already be able to derive a substantial amount of 
the same data that is provided by some of the components based on their 
own executions and algorithms.
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    \36\ The Exchange notes that the following two points will also 
be included in the Report: (1) Whether the resting order is from a 
Public Customer or a non-Public Customer and (2) the time difference 
between the time the resting order was received by the Exchange and 
the time the response submitted by the Recipient Participant was 
received by the Exchange. The Exchange believes providing these data 
points will not impose any burden on competition not necessary or 
appropriate in furtherance of the purposes of the Act as this 
information may be derived from information already provided in the 
Report or information already provided in the Exchange's HSVF. See 
supra, notes 13 and 22.
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    In sum, if the proposed Report is unattractive to Participants, 
Participants will opt not to receive it. Accordingly, the Exchange does 
not believe that the proposed change will impair the ability of 
Participants or competing order execution venues to maintain their 
competitive standing in the financial markets.
    Lastly, the Exchange does not believe that the proposed change to 
move the current HSVF rule to the proposed Rule 7350 will impose any 
burden on competition not necessary or appropriate in furtherance of 
the purposes of the Act. This proposed clarifying change has no 
competitive purpose and is only intended to improve the overall 
readability of the BOX rules and help prevent investor confusion by 
relocating market data information to reside in one place in the BOX 
Rulebook.

[[Page 19990]]

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

    Pursuant to Section 19(b)(3)(A) of the Act \37\ and Rule 19b-
4(f)(6) \38\ thereunder, the Exchange has designated this proposal as 
one that effects a change that: (i) Does not significantly affect the 
protection of investors or the public interest; (ii) does not impose 
any significant burden on competition; and (iii) by its terms, does not 
become operative for 30 days after the date of the filing, or such 
shorter time as the Commission may designate if consistent with the 
protection of investors and the public interest.
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    \37\ 15 U.S.C. 78s(b)(3)(A).
    \38\ 17 CFR 240.19b-4(f)(6).
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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 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-2022-10 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-2022-10. 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-2022-10, and should be submitted on 
or before April 27, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\39\
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    \39\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-07183 Filed 4-5-22; 8:45 am]
BILLING CODE 8011-01-P