Document ID: SEC-2023-0148-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BOX Exchange, LLC
Posted Date: 2023-02-10T05:00Z

[Federal Register Volume 88, Number 28 (Friday, February 10, 2023)]
[Notices]
[Pages 8947-8949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-02950]

[[Page 8947]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96830; File No. SR-BOX-2023-07]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee 
Schedule on the BOX Options Market LLC Facility To Reflect Adjustments 
to FINRA Registration Fees and Fingerprinting Processing Fees

February 7, 2023.
    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 January 31, 2023, BOX Exchange LLC (``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 
amend the Fee Schedule [sic] to reflect adjustments to FINRA 
Registration Fees and Fingerprinting Processing Fees on the BOX Options 
Market LLC (``BOX'') options facility. While changes to the fee 
schedule pursuant to this proposal will be effective upon filing, the 
Exchange designates that the FINRA Annual System Processing Fee 
Assessed only during Renewals become operative on January 2, 2024.\5\ 
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 https://rules.boxexchange.com/rulefilings.
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    \5\ See Securities Exchange Act Release No. 90176 (October 14, 
2020), 85 FR 66592 (October 20, 2020) (SR-FINRA-2020-032) (Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To 
Adjust FINRA Fees To Provide Sustainable Funding for FINRA's 
Regulatory Mission).
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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 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 reflect adjustments to FINRA Registration Fees and Fingerprinting 
Processing Fees.
    This proposal amends BOX's Fee Schedule to reflect adjustments to 
FINRA Registration Fees and Fingerprinting Processing Fees.\6\ The 
FINRA fees are collected and retained by FINRA via Web CRD for the 
registration of employees of BOX members and member organizations that 
are not FINRA members (``Non-FINRA members''). The Exchange is merely 
listing these fees on its Fee Schedule. The Exchange does not collect 
or retain these fees.
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    \6\ FINRA operates Web CRD, the central licensing and 
registration system for the U.S. securities industry. FINRA uses Web 
CRD to maintain the qualification, employment and disciplinary 
histories of registered associated persons of broker-dealers.
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    The Exchange proposes to amend: (1) the $110 fee for the additional 
processing of each initial or amended Form U4, Form U5 or Form BD that 
includes the initial reporting, amendment, or certification or one or 
more disclosure events or proceedings to $155; (2) the $45 FINRA Annual 
System Processing Fee Assessed only during Renewals to $70; and (3) the 
$15 Second Submission (Electronic) Fingerprinting Processing Fee to 
$20. Each of these fees are listed within Section II.A of the BOX Fee 
Schedule. These amendments are being made in accordance with a FINRA 
rule change to adjust to its fees.\7\
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    \7\ See note 5. FINRA noted in its rule change that it was 
adjusting its fees to provide sustainable funding for FINRA's 
regulatory mission.
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    The Exchange also proposes to amend the following Fingerprinting 
Processing Fees: (1) the $29.50 Initial Submission (Electronic) fee to 
$31.25; \8\ (2) the $44.50 Initial Submission (non-electronic) fee to 
$41.25; \9\ (3) the $29.50 Third Submission (Electronic) fee to $31.25; 
\10\ and (4) the $44.50 Third Submission (non-electronic) fee to 
$41.25.\11\ Specifically, today, the FBI fingerprint charge is $11.25 
\12\ and the FINRA electronic Fingerprinting Processing Fee has 
increased from $15 to $20 in 2023.\13\ While FINRA did not amend the 
non-electronic Fingerprinting Processing Fee, previously the FBI Fee 
was reduced from $14.50 to $11.25.\14\ The non-electronic 
Fingerprinting Processing Fees are not currently reflecting the amount 
assessed by FINRA.\15\ The amendment to the non-electronic 
Fingerprinting Processing Fees will conform these fees with those of 
FINRA.
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    \8\ This fee includes a $20.00 FINRA fee and $11.25 FBI fee. See 
https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
    \9\ This fee includes a $30.00 FINRA Fee and a $11.25 FBI fee. 
See https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
    \10\ This fee includes a $20 FINRA fee and $11.25 FBI fee. See 
https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
    \11\ This fee includes a $30 FINRA Fee and a $11.25 FBI fee. See 
https://www.finra.org/registration-exams-ce/classic-crd/fingerprints/fingerprint-fees.
    \12\ See Securities Exchange Act Release No. 67247 (June 25, 
2012) 77 FR 38866 (June 29, 2012) (SR-FINRA-2012-030) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Sections 4 and 6 of Schedule A to the FINRA By-Laws Regarding Fees 
Relating to the Central Registration Depository) (``2012 Rule 
Change'').
    \13\ See note 5.
    \14\ See 2012 Rule Change at note 12. The FBI does not charge 
its fee on a second fingerprint transaction when it identifies the 
first set of fingerprints as illegible for the same individual.
    \15\ The fees for the non-electronic first card submission and 
non-electronic third card submission are the only non-electronic 
fees impacted by FINRA's fee change.
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    The FINRA Web CRD Fees are user-based and there is no distinction 
in the cost incurred by FINRA if the user is a FINRA member or a Non-
FINRA member. Accordingly, the proposed fees mirror those currently 
assessed by FINRA.
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,\16\ 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

[[Page 8948]]

does not unfairly discriminate between customers, issuers, brokers or 
dealers.
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    \16\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes it is reasonable to increase: (1) the $110 
fee for the additional processing of each initial or amended Form U4, 
Form U5 or Form BD that includes the initial reporting, amendment, or 
certification or one or more disclosure events or proceedings to $155; 
(2) the $45 FINRA Annual System Processing Fee Assessed only during 
Renewals to $70; and (3) the electronic Fingerprinting Processing Fees 
for second submissions from $15 to $20 in accordance with an adjustment 
to FINRA's fees \17\ because the proposed fees are identical to those 
adopted by FINRA for use of Web CRD for disclosure and the registration 
of FINRA members and their associated persons.
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    \17\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee 
except for the second fingerprint transaction.
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    These costs are borne by FINRA when a Non-FINRA member uses Web 
CRD. The Exchange's rule text will reflect the current registration and 
electronic fingerprint rates that are assessed by FINRA for the 
additional processing of each initial or amended Form U4, Form U5 or 
Form BD and Second Submission (Electronic) Fingerprinting Processing 
Fee and the registration rates that will be assessed by FINRA as of 
January 2, 2024 for the FINRA Annual System Processing Fee Assessed 
only during Renewals.\18\
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    \18\ See note 5.
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    The Exchange believes it is reasonable to correct the non-
electronic Fingerprinting Processing Fees to reflect the reduced FBI 
Fee of $11.25.\19\ The amendments to the non-electronic Fingerprinting 
Processing Fees will provide all BOX members and member organizations 
with the correct fees.
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    \19\ See 2012 Rule Change at note 12. The FBI does not charge 
its fee on a second fingerprint transaction when it identifies the 
first set of fingerprints as illegible for the same individual.
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    The Exchange believes it is equitable and not unfairly 
discriminatory to increase: (1) the $110 fee for the additional 
processing of each initial or amended Form U4, Form U5 or Form BD that 
includes the initial reporting, amendment, or certification or one or 
more disclosure events or proceedings to $155; (2) the $45 FINRA Annual 
System Processing Fee Assessed only during Renewals to $70; and (3) the 
electronic Fingerprinting Processing Fees from $15 to $20 in accordance 
with an adjustment to FINRA's fees \20\ because the Exchange will not 
be collecting or retaining these fees, therefore, the Exchange will not 
be in a position to apply them in an inequitable or unfairly 
discriminatory manner. Similarly, the Exchange believes it is equitable 
and not unfairly discriminatory to correct the non-electronic 
Fingerprinting Processing Fees to reflect the reduced FBI Fee of $11.25 
\21\ because the Exchange will not be collecting or retaining these 
fees, therefore, the Exchange will not be in a position to apply them 
in an inequitable or unfairly discriminatory manner.
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    \20\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee 
except for the second fingerprint transaction.
    \21\ See 2012 Rule Change at note 12. The FBI does not charge 
its fee on a second fingerprint transaction when it identifies the 
first set of fingerprints as illegible for the same individual.
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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. The Exchange believes that its 
proposal to increase: (1) the $110 fee for the additional processing of 
each initial or amended Form U4, Form U5 or Form BD that includes the 
initial reporting, amendment, or certification or one or more 
disclosure events or proceedings to $155; (2) the $45 FINRA Annual 
System Processing Fee Assessed only during Renewals to $70; and (3) the 
electronic Fingerprinting Processing Fees for the second card 
submission from $15 to $20 in accordance with an adjustment to FINRA's 
fees \22\ does not impose an undue burden on competition because the 
Exchange will not be collecting or retaining these fees, therefore, the 
Exchange will not be in a position to apply them in an inequitable or 
unfairly discriminatory manner. Similarly, the Exchange believes it 
does not impose an undue burden on competition to correct the non-
electronic Fingerprinting Processing Fees to reflect the reduced FBI 
Fee of $11.25 because the Exchange will not be collecting or retaining 
these fees, therefore, the Exchange will not be in a position to apply 
them in an inequitable or unfairly discriminatory manner.
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    \22\ The $20 FINRA Fee is in addition to the $11.25 FBI Fee 
except for the second fingerprint transaction.
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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.

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 \23\ and Rule 19b-4(f)(2) 
thereunder,\24\ because it establishes or changes a due, or fee.
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    \23\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \24\ 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 [email protected]. Please include 
File Number SR-BOX-2023-07 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-2023-07. 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

[[Page 8949]]

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 
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. 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-
2023-07, and should be submitted on or before March 3, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
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    \25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-02950 Filed 2-9-23; 8:45 am]
BILLING CODE 8011-01-P