Document ID: SEC-2013-0290-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: BOX Options Exchange LLC
Posted Date: 2013-02-11T05:00Z

[Federal Register Volume 78, Number 28 (Monday, February 11, 2013)]
[Notices]
[Pages 9758-9760]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02999]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68833; File No. SR-BOX-2013-04]

Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change to Make 
the Market Data Product, the BOX High Speed Vendor Feed (``HSVF''), 
Available to All Market Participants

February 5, 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 January 25, 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, 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 make the direct market data product, the 
BOX HSVF, available to all market participants. 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 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

[[Page 9759]]

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, Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend Rule 7130(a)(2) 
to make the BOX High Speed Vendor Feed (``HSVF'') data product 
available to all market participants.\3\ The BOX HSVF is a proprietary 
product that provides: (i) Trades and trade cancelation information; 
(ii) best-ranked price level to buy and the best-ranked price level to 
sell; (iii) instrument summaries (including information such as high, 
low, and last trade price and traded volume); (iv) the five best limit 
prices for each option instrument; (v) request for Quote messages \4\; 
(vi) PIP Order, Improvement Order and Block Trade Order (Facilitation 
and Solicitation) information \5\; (vii) orders exposed at NBBO \6\; 
(viii) instrument dictionary (e.g., strike price, expiration date, 
underlying symbol, price threshold, and minimum trading increment for 
instruments traded on BOX); (ix) options class and instrument status 
change notices (e.g., whether an instrument or class is in pre-opening, 
continuous trading, closed, halted, or prohibited from trading); and 
(x) options class opening time.
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    \3\ Currently, the HSVF is only available to firms, or 
organizations registered with the Exchange for purposes of 
participating in options trading on BOX (``BOX Options 
Participants'' or ``Participants'').
    \4\ See Exchange Rules 100(a)(57), 7070(h) and 8050.
    \5\ As set forth in Exchange Rules 7150 and 7270, respectively.
    \6\ As set forth in Exchange Rules 7130(b)(3) and 8040(d)(6), 
respectively.
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    The HSVF is currently offered to BOX Options Participants at no 
cost.\7\ This proposed rule change will allow the Exchange to make the 
HSVF available to all market participants at no cost. If the Exchange 
decides to establish monthly fees for the HSVF, it will do so by way of 
a separate proposed rule change.
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    \7\ See Exchange Rule 7130(a)(2).
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    The HSVF provides data that should enhance the ability of 
subscribers to analyze market conditions, and to create and test 
trading models and analytical strategies. The Exchange believes that 
HSVF is a valuable tool that can be used to gain comprehensive insight 
into the trading activity in a particular option series.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\8\ in general, and Section 
6(b)(5) of the Act,\9\ in particular, in that HSVF is designed 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, by making BOX's market data product open to all market 
participants. In particular, the HSVF product will now be available to 
any market participant that wishes to subscribe to it. The Exchange 
believes this removes impediments to and better provides for a free and 
open market. Additionally, this proposed change will enhance 
subscribers' ability to make more informed and timely trading 
decisions. As such, BOX believes the proposed rule change is in the 
public interest, and therefore, consistent with the Act.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change would allow the Exchange to disseminate 
its propriety market data product, the HSVF, to both Participants and 
other subscribers on a voluntary basis. BOX is not required to make 
this data available and it is not necessary for Participants to 
subscribe to the HSVF in order to trade on BOX. Additionally, the HSVF 
is similar to propriety data products currently offered by other 
exchanges, and subscribing to the HSVF will give market participants 
greater information on which to base their trading strategies. 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.

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: (1) Does not 
significantly affect the protection of investors or the public 
interest; (2) does not impose any significant burden on competition; 
and (3) by its terms does not become operative for 30 days after the 
date of this filing, or such shorter time as the Commission may 
designate if consistent with the protection of investors and the public 
interest, the proposed rule change has become effective pursuant to 
Section 19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(6) 
thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under 19b-4(f)(6) normally may not 
become operative prior to 30 days after the date of filing.\12\ 
However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to designate 
a shorter time if such action is consistent with the protection of 
investors and the public interest. The Exchange has requested that the 
Commission waive the 30-day operative delay. The Exchange notes that 
waiver of the 30-day operative delay will allow the Exchange to 
immediately offer the product to all market participants. The 
Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because such waiver would allow all market participants to have 
immediate access to HSVF. For this reason, the Commission designates 
the proposed rule change to be operative upon filing.\14\
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    \12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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.
    \13\ Id.
    \14\ For the purposes only of waiving the 30-day operative 
delay, the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 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-2013-04 on the subject line.

[[Page 9760]]

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549.

All submissions should refer to File Number SR-BOX-2013-04. 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-2013-04 and should be 
submitted on or before March 4, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-02999 Filed 2-8-13; 8:45 am]
BILLING CODE 8011-01-P