[Federal Register Volume 80, Number 236 (Wednesday, December 9, 2015)]
[Notices]
[Pages 76609-76611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30939]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76547; File No. SR-BOX-2015-37]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
amend IM-5050-10 to BOX Rule 5050 (Mini Option Contracts)
December 3, 2015.
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 November 20, 2015, BOX Options Exchange LLC (the ``Exchange'') filed
with the Securities and Exchange Commission
[[Page 76610]]
(``Commission'') the proposed rule change as described in Items I, II,
and III 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 replace the name ``Google Inc.'' with
``Alphabet Inc.'' Google Inc. (``Google'') recently announced plans to
reorganize and create a new public holding company, which will be
called Alphabet Inc. (``Alphabet''). 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 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 IM-5050-10 to BOX Rule 5050 (Mini
Option Contracts) to replace the name ``Google Inc.'' with ``Alphabet
Inc.'' Google Inc. (``Google'') recently announced plans to reorganize
and create a new public holding company, which will be called Alphabet
Inc. (``Alphabet''). As a result of the holding company reorganization,
each share of Class A Common Stock (``GOOGL''), which the Exchange has
the ability to list as a Mini Option, will automatically convert into
an equivalent corresponding share of Alphabet Inc. stock.\3\
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\3\ The Class C Capital Stock (``GOOG'') which is also impacted
by the reorganization are not eligible to be listed as Mini Options
on the Exchange, only the Class A Common Stock.
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The Exchange is proposing to make this change to IM-5050-10 to
enable the Exchange to continue trading Mini Options on Google, now
Alphabet Class A shares. The Exchange is proposing to make this change
because, on October 5, 2015 Google reorganized and as a result
underwent a name change.
The purpose of this change is to ensure that IM-5050-10 properly
reflects the intention and practice of the Exchange to have the ability
to trade Mini Options on only an exhaustive list of underlying
securities outlined in IM-5050-10. This change is meant to continue the
inclusion of Class A shares of Google in the current list of underlying
securities that Mini Options can be traded on, while continuing to make
clear that class C shares of Google are not part of that list as that
class of options has not been approved for Mini Options trading. As a
result, the proposed change will help avoid confusion.
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''),\4\ in general, and Section 6(b)(5) of the Act,\5\ 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. Additionally, the Exchange believes the proposed rule
change is consistent with the Section 6(b)(5) \6\ requirement that the
rules of an exchange not be designed to permit unfair discrimination
between customers, issuers, brokers, or dealers.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
\6\ Id.
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In particular, the proposed rule change to change the name Google
to Alphabet to reflect the new ownership structure is consistent with
the Act because the proposed change is merely updating the current name
associated with the stock symbol GOOGL to allow for the continued
ability for mini option trading on Google's class A shares. The
proposed change will allow for continued benefit to investors by
providing them with additional investment alternatives.
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 proposed change does not
impose any burden on intra-market competition because it applies to all
members and member organizations uniformly. There is no burden on
inter-market competition because the Exchange is merely attempting to
continue to permit trading of GOOGL as a Mini Options, as is the case
today. As a result, there will be no substantive changes to the
Exchange's operations or its rules.
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 does not (i) significantly
affect the protection of investors or the public interest; (ii) impose
any significant burden on competition; and (iii) become operative for
30 days from the date on which it was filed, or such shorter time as
the Commission may designate if consistent with the protection of
investors and the public interest, provided that the self-regulatory
organization has given 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,\7\ the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-
4(f)(6) thereunder.\9\
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\7\ The Exchange has fulfilled this requirement.
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 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.
[[Page 76611]]
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-2015-37 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-2015-37. 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-2015-37 and should be
submitted on or before December 30, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-30939 Filed 12-8-15; 8:45 am]
BILLING CODE 8011-01-P