[Federal Register Volume 81, Number 244 (Tuesday, December 20, 2016)]
[Notices]
[Pages 92919-92923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30562]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79557; File No. SR-BOX-2016-57]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Detail How Complex Orders Will Execute Through the Solicitation Auction 
Mechanism

December 14, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on December 7, 2016, 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 Exchange. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to detail how Complex Orders will execute 
through the Solicitation Auction mechanism. 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 purpose of the proposed rule change is to detail how the 
Solicitation Auction mechanism will treat Complex Orders on the 
Exchange.\3\ Pursuant to BOX Rule 7270, the Exchange has two block-
sized auction mechanisms, the Solicitation Auction Mechanism and the 
Facilitation Auction Mechanism whereby Order Flow Providers (OFPs) can 
provide price improvement opportunities for a transaction where the OFP 
seeks to facilitate an order it represents as agent, and/or a 
transaction where the OFP solicited interest to execute against an 
order it represents as agent. Transactions executed through the 
Solicitation or Facilitation auction mechanisms are comprised of the 
order the OFP represents as agent (the ``Agency Order'') and the contra 
order for the full size of the Agency Order (either the 
``Solicitation'' or ``Solicited'' Order).\4\ The contra order may 
represent interest for the Participant's own account or interest the 
Participant has solicited from one or more other parties, or a 
combination of both.
---------------------------------------------------------------------------

    \3\ Complex Orders are not currently traded through the 
Solicitation Auction mechanism. Prior to implementation, BOX will 
issue an informational circular to inform Participants of the 
implementation date for Complex Orders to trade through the 
Solicitation Auction.
    \4\ The Exchange notes that it does not trade stock option 
orders.
---------------------------------------------------------------------------

    This proposal only addresses how the Solicitation Auction mechanism 
will treat Complex Orders on the Exchange.\5\ Similar to the ISE's 
Block-Trade rules,\6\ Complex Orders \7\ executed through the 
Solicitation auction mechanism on BOX function in substantially the 
same manner as single-leg orders executed through this mechanism. To 
detail how the Solicitation mechanism treats

[[Page 92920]]

Complex Orders, the Exchange proposes to adopt IM-7270-8. IM-7270-8 
will state that Participants may use the Solicitation Mechanism 
according to paragraph (b) of Rule 7270 to execute block-size Complex 
Orders at a net price. The OFP must be willing to execute the entire 
size of the Agency Order through the submission of a contra order; and 
block-size Complex Orders executed through the Solicitation Mechanism 
will continue to be limited to Complex Orders of five hundred (500) 
contracts per leg or more.\8\ Each Complex Agency Order entered into 
the Solicitation Auction shall be all-or-none.
---------------------------------------------------------------------------

    \5\ The Exchange recently adopted rules to allow Complex Orders 
to execute through the Facilitation Auction mechanism. See 
Securities Release No. 78444 (July 29, 2016), 81 FR 51533 (August 4, 
2016)(Notice of Filing and Immediate Effectiveness of file Number 
SR-BOX-2016-37).
    \6\ See International Securities Exchange Rule 716 and 
Supplementary Material .08 to Rule 716.
    \7\ Under Rule 7240(a)(5) a ``Complex Order' is defined as ``any 
order involving the simultaneous purchase and/or sale of two or more 
different options series in the same underlying security, for the 
same account, in a ratio that is equal to or greater than one-to-
three (.333) and less than or equal to three-to-one (3.00) and for 
the purpose of executing a particular investment strategy.) A 
Complex Order that does not meet this definition will be 
automatically rejected.
    \8\ See proposed IM 7270-8. Complex Orders comprised of less 
than five hundred (500) contracts on each leg will automatically be 
rejected.
---------------------------------------------------------------------------

    Upon the entry of a block-sized Complex Order into the Solicitation 
mechanism, a broadcast message will be sent to Options Participants, 
giving them one second to enter responses with the prices and sizes at 
which they would be willing to participate opposite the Agency Order 
(``Responses'').\9\ Responses to a Complex Order within the 
Solicitation Auction mechanism may be submitted for any size up to the 
size of the entire Complex Order, however, the Responses must be for 
all Legs of the unique Complex Order.\10\ Responses must be priced 
equal to or better than the Agency Order and cannot exceed the size of 
the Agency Order.\11\ At the end of the one second period for the entry 
of Responses, the block-sized Solicitation Complex Order will be 
automatically executed in full or canceled.\12\
---------------------------------------------------------------------------

    \9\ See BOX Rule 7270(b)(1). The Exchange believes that 1 second 
is an adequate duration for the Solicitation Auction. Specifically, 
the Exchange believes customers are capable of responding within 
this duration and has not received any complaints regarding the 
duration of the Solicitation Auction broadcast since the mechanism 
was adopted in 2011.
    \10\ See proposed IM-7270-8.
    \11\ See proposed IM-7270-8.
    \12\ See BOX Rule 7270(b)(2).
---------------------------------------------------------------------------

    As is also the case for single-leg orders executed through the 
Solicitation mechanism, the Complex Agency Order will execute against 
the Complex Solicited Order at the proposed execution price if at the 
time of execution there is insufficient size to execute the entire 
Complex Agency Order at a better price (or prices) and (A) the 
execution price is equal to or greater than the NBBO and (B) there are 
no Book Priority Public Customer Complex Orders on the Complex Order 
Book. A Book Priority Public Customer Complex Order is a Complex Order 
(A) at a price equal to or better than the proposed execution price; 
and (B) on the BOX Complex Order Book within a depth of the BOX Complex 
Book so that it would otherwise trade with Agency Order if the Agency 
Order had been submitted to the BOX Complex Book.\13\ Both the 
Solicited Complex Order and the Agency Complex Order will be canceled 
if an execution would take place at a price that is inferior to the BOX 
BBO or the NBBO, or if there is a Book Priority Public Customer order 
on the BOX Book and there is insufficient size to execute the Agency 
Order, except as provided in BOX Rule 7270(b)(2)(iv).\14\
---------------------------------------------------------------------------

    \13\ See BOX Rule 7270(b)(2)(i). If the execution price is 
inferior to the best bid or offer on BOX, the NBBO or if there is a 
Book Priority Public Customer Order on the BOX Complex Book the 
Solicited Complex Order and Agency Order will be cancelled.
    \14\ See BOX Rule 7270(b)(2)(i).
---------------------------------------------------------------------------

    If at the time of execution there is sufficient size to execute the 
entire Agency Complex Order at an improved price (or prices), the 
Agency Complex Order will be executed at the improved price(s) and the 
Solicited Order will be canceled.\15\ The aggregate size of all bids 
(offers) on the BOX Book and the Complex Order Book and all Responses 
at each price will be used to determine whether the entire Agency Order 
can be executed at an improved price (or prices.) \16\ For example, an 
OFP submits a Complex Order through the Solicitation Auction to buy 
1000 A+B at $2.10. During the one second auction, BOX receives the 
following bids (offers) in time priority:
---------------------------------------------------------------------------

    \15\ See BOX Rule 7270(b)(2)(iii).
    \16\ See BOX Rule 7270 (b)(2)(iii) and proposed IM-7270-8.
---------------------------------------------------------------------------

    (1) Market Maker Complex Order Response to sell 400 of A+B at 
$2.08.
    (2) Market Maker offer on the Complex Order Book to sell 300 A+B at 
$2.08.
    (3) Public Customer Response to sell 200 A+B at $2.08.
    (4) Public Customer Complex Order on the Complex Order Book to sell 
300 A+B at $2.08.
    Since there is sufficient size to execute the entire Agency Order 
at an improved price, the Agency Order will execute in time priority 
\17\ against each of the bids (offers) and Responses at $2.08, and the 
Solicited Order will be canceled.\18\ The Agency Order would execute 
400 contracts against the Market Maker Response; 300 contracts against 
the Market Maker offer on the Complex Order Book; 200 contracts against 
the Public Customer Response and 100 contracts against the Public 
Customer Complex Order on the Complex Book. The remaining 200 contracts 
of the Public Customer Complex Order will remain unexecuted.
---------------------------------------------------------------------------

    \17\ See BOX Rule 7270(b)(2)(v).
    \18\ See BOX Rule 7270(b)(2)(iii).
---------------------------------------------------------------------------

    However, notwithstanding the execution provisions of Rule 
7270(b)(2), the execution rules for Complex Orders detailed in BOX Rule 
7240(b)(2) and (3) continue to apply for Complex Orders executed 
through the Solicitation Auction Mechanism.\19\ For example, if there 
is sufficient interest on the BOX Book for the individual legs to be 
executed at a permissible ratio, this ``Implied Order''\20\ will have 
priority over Responses and Complex Orders on the Complex Order Book. 
Although an Implied Order will be able to execute against an Agency 
Order in the Solicitation Auction mechanism, the Implied Order will not 
be considered a Book Priority Public Customer Order for purposes of 
Rule 7270(b).
---------------------------------------------------------------------------

    \19\ See proposed IM-7270-8. The Exchange notes that this 
includes the Complex Order Filter outlined in BOX Rule 
7240(b)(3)(iii).
    \20\ An ``Implied Order' is a Complex Order that is derived from 
the orders on the BOX Book for each component leg of a strategy. 
Each of the Implied Order component Legs must be equal to or better 
than its respective NBBO.
---------------------------------------------------------------------------

    Using the same scenario above, an OFP submits a Complex Order 
through the Solicitation Auction to buy 1000 A+B at $2.10 and during 
the one second auction, BOX receives the following bids (offers) in 
time priority:
    (1) Market Maker Complex Order Response to sell 400 of A+B at 
$2.08.
    (2) Market Maker offer on the Complex Order Book to sell 300 A+B at 
$2.08.
    (3) Public Customer Response to sell 200 A+B at $2.08.
    (4) Public Customer Complex Order on the Complex Order Book to sell 
300 A+B at $2.08.
    (5) Interest on the BOX Book (Implied Order):
     Market Maker Option A--Order to sell 300 at $1.04.
     Market Maker Option B--Order to sell 300 at $1.04.
    There is sufficient size to execute the entire Agency Order at an 
improved price so the Solicited Order will be canceled. However, the 
Agency Order would execute first against the 300 Implied Order 
contracts and then in time priority against the remaining Complex Order 
bids (offers) and Responses. After the Implied Order contracts the 
Agency Order will execute 400 contracts against the Market Maker 
Response; and 300 contracts against the Market Maker offer on the 
Complex Order Book. Both the Public Customer Response and Complex Order 
will receive no trade allocation because the buy order has been 
exhausted.

[[Page 92921]]

    If at the time of execution, there are one or more Book Priority 
Public Customer Orders on the Complex Order Book, the Agency Order will 
execute against the Complex Order Book if there is sufficient size 
available to execute the entire Agency Order, and the Solicited Order 
will be cancelled.\21\ In this instance, the aggregate size of all bids 
(offers) on the Complex Order Book at or better than the proposed 
execution price will be used to determine whether there is sufficient 
size available to execute the entire Agency Order.\22\ BOX Book 
Interest and Responses \23\ are excluded when determining whether 
sufficient size exists to execute the Agency Order at its proposed 
price under BOX Rule 7270(b)(2)(ii). However, if there is sufficient 
interest on the Complex Order Book, the execution rules for Complex 
Orders will continue to apply and any Implied Orders will have 
priority.\24\ For example, if an OFP submits a Complex Order through 
the Solicitation Auction to buy1000 A+B at $2.10 and during the one 
second auction, BOX receives the following bids (offers) in time 
priority:
---------------------------------------------------------------------------

    \21\ See BOX Rule 7270(b)(2).
    \22\ See Rule 7270(b)(2)(ii) and proposed IM-7270-8.
    \23\ Responses are sent by Options Participants in response to a 
Facilitation or Solicitation Auction broadcast message.
    \24\ See BOX Rule 7240(b)(2) and (3).
---------------------------------------------------------------------------

    (1) Market Maker offer on the Complex Order Book to sell 300 A+B at 
$2.10.
    (2) Public Customer Complex Order on the Complex Order Book to sell 
500 A+B at $2.10.
    (3) Interest on the BOX Book (Implied Order):
     Market Maker Option A--Order to sell 300 at $1.05.
     Market Maker Option B--Order to sell 300 at $1.05.
    (4) Broker Dealer offer on the Complex Order Book to sell 300 A+B 
at $2.10.
    There is a Book Priority Public Customer Order on the Complex Order 
Book (i.e., the Public Customer Complex Order to sell 500 at $2.10) and 
there is sufficient size on the Complex Order Book to execute the 
entire Agency Order. As such, the Agency Order will be executed against 
the Implied Order and the orders on the Complex Order Book, and the 
Solicited Complex Order will be canceled. In this example, the Agency 
Order will execute 300 contracts against the Implied Order, then 300 
contracts against the Market Maker and 400 contracts against the Book 
Priority Public Customer Complex Order. The remaining 100 contracts of 
the Book Priority Public Customer Complex Order and the Broker Dealer 
300 contracts will remain unexecuted, based on price/time priority.
    If however, there is a Book Priority Public Customer Order on the 
Complex Order Book, but there is insufficient size to execute the 
entire Agency Order at the proposed execution price, both the Agency 
and Solicited Orders will be canceled, except as provided in BOX Rule 
7270(b)(2)(iv).\25\ For example, if an OFP submits a Complex Order 
through the Solicitation Auction to buy1000 A+B at $2.10 and during the 
one second auction, BOX receives the following bids (offers) in time 
priority:
---------------------------------------------------------------------------

    \25\ See BOX Rule 7270(b)(2)(iv).
---------------------------------------------------------------------------

    (1) Market Maker offer on the Complex Order Book to sell 300 A+B at 
$2.10.
    (2) Public Customer Complex Order on the Complex Order Book to sell 
300 A+B at $2.10.
    (3) Interest on the BOX Book (Implied Order):
     Market Maker Option A--Order to sell 300 at $1.05.
     Market Maker Option B--Order to sell 300 at $1.05.
    In this example, there is a Book Priority Public Customer Order on 
the Complex Order Book (i.e. the Public Customer Complex Order to sell 
300 at $2.10) but there is insufficient size on the Complex Order Book 
to execute the entire Agency Order. As such, both the Solicited Order 
and the Agency Order will be cancelled \26\, unless the OFP has 
designated a Surrender Quantity.\27\
---------------------------------------------------------------------------

    \26\ See BOX Rule 7270(b)(2)(i).
    \27\ See BOX Rule 7270(b)(2)(iv).
---------------------------------------------------------------------------

    When starting a Solicitation Auction the OFP may designate, for the 
Solicited Order, the quantity of contracts of the Agency Order that it 
is willing to surrender interest to on the Complex Order Book.\28\ The 
Surrender Quantity only applies if at the time of execution there are 
(1) Book Priority Public Customer Orders on the Complex Order Book or 
(2) any bids (offers) on the Complex Order Book at any price better 
than the proposed execution price, but there is insufficient size to 
execute the entire Agency Complex Order at an improved price.\29\
---------------------------------------------------------------------------

    \28\ See BOX Rule 7270(b)(2)(iv).
    \29\ See BOX Rule 7270(b)(2)(iv).
---------------------------------------------------------------------------

    If there is a Book Priority Public Customer Order on the Complex 
Order Book, and the aggregate size of the Book Priority Public Customer 
Order and all bids (offers) on the Complex Order Book at prices better 
than the proposed execution price, excluding Responses and BOX Book 
Interest, are equal to or less than the Surrender Quantity, the Agency 
Complex Order will first execute against all such Book Priority Public 
Customer Orders and such bids (offers) and then against the Solicited 
Order. For example, an OFP submits a Complex Order through the 
Solicitation Auction to buy1000 A+B at $2.10 and designates 200 
contracts as the Surrender Quantity. During the one second auction, BOX 
receives the following bids (offers) in time priority:
    (1) Public Customer Complex Order on the Complex Order Book to sell 
200 A+B at $2.10.
    (2) Market Maker offer on the Complex Order Book to sell 800 A+B at 
$2.10.
    Without the Surrender Quantity, the Agency Order would execute 
against the Public Customer Order on the Complex Order Book for 200 
Contracts and against the Market Maker on the Complex Order Book for 
800 contracts. Using the Surrender Quantity, however, the Agency Order 
would still execute against the Public Customer Order on the Complex 
Order Book, but would then execute against the Solicited Order for 800 
contracts.
    As stated above, the Surrender Quantity can also be used to allow 
Solicitation auction trades which would otherwise be canceled. For 
example, if an OFP submits a Complex Order through the Solicitation 
Auction to buy 1000 A+B at $2.10 and designates 200 contracts as the 
Surrender Quantity. During the one second auction, BOX receives the 
following bids (offers) in time priority:
    (1) Market Maker offer on the Complex Order Book to sell 300 A+B at 
$2.10.
    (2) Public Customer Complex Order on the Complex Order Book to sell 
100 A+B at $2.10.
    There is a Book Priority Public Customer, but there is insufficient 
size to execute the entire Agency Order with interest on the Complex 
Order Book, and this auction would normally be canceled. However, since 
the OFP designated a Surrender Quantity of 200 that is greater than the 
total size of the Book Priority Public Customer Order, the Agency Order 
will execute 100 contracts against the Book Priority Public Customer 
Order and the remaining 900 contracts against the Solicited Order.
    However, if the aggregate size of the Book Priority Public Customer 
Order and all bids (offers), excluding Responses and BOX Book Interest, 
on the Complex Order Book at prices better than the proposed execution 
price exceeds the Surrender Quantity, and there is insufficient size to 
execute the entire Agency Complex Order, then both the Solicited 
Complex Order and the

[[Page 92922]]

Agency Complex Order will be canceled.\30\ For example, the OFP submits 
a Complex Order through the Solicitation Auction to buy1000 A+B at 
$2.10 and designates 200 contracts as the Surrender Quantity. During 
the one second auction, BOX receives the following bids (offers) in 
time priority:
---------------------------------------------------------------------------

    \30\ See BOX Rule 7270(b)(2)(iv)(A)(1).
---------------------------------------------------------------------------

    (1) Market Maker offer on the Complex Order Book to sell 300 A+B at 
$2.10.
    (2) Public Customer Complex Order on the Complex Order Book to sell 
300 A+B at $2.10.
    Even though the OFP has designated a Surrender Quantity of 200 
contracts, the total size of the Book Priority Public Customer Order 
(300 contracts) is greater than the Surrender Quantity and there is 
insufficient size on the Complex Order Book to execute the entire 
Agency Complex Order. Therefore both the Solicited Complex Order and 
Agency Complex Order will be canceled.
    The Surrender Quantity can also be used to allow Solicitation 
Auction trades when there are bids (offers) on the Complex Book on the 
opposite side of the Agency Complex Order at a price better than the 
proposed execution price, but there is insufficient size to execute the 
entire Agency Order at an improved price.\31\ For example, an OFP 
submits a Complex Order through the Solicitation Auction to buy 1000 
A+B at $2.10 and designates 200 contracts as the Surrender Quantity. 
During the one second auction, BOX receives the following bids (offers) 
in time priority:
---------------------------------------------------------------------------

    \31\ See BOX Rule 7270(b)(2)(iv)(A)(2).
---------------------------------------------------------------------------

    (1) Market Maker offer on the Complex Order Book to sell 100 A+B at 
$2.09.
    (2) Public Customer Complex Order on the Complex Order Book to sell 
100 A+B at $2.08.
    Since there is insufficient size to execute the entire Agency 
Complex Order at a better price, this auction would normally be 
canceled. However, since the OFP designated a Surrender Quantity of 200 
that is equal to the aggregate size of these better priced orders, the 
Agency Order will execute 100 contracts against the Public Customer 
Order at $2.10, 100 contracts against the Market Maker Order at $2.09 
and the remaining 800 contracts against the Solicited Order. Note that 
even though the Public Customer Order on the Complex Order Book was 
priced lower than the proposed execution price at $2.08, it is executed 
at the proposed execution price of $2.10. Public Customer bids (offers) 
on the Complex Order Book at the time of the Surrender Quantity 
execution that are priced higher (lower) that the proposed execution 
price will be executed at the proposed execution price.\32\ Non-Public 
Customer and Market Maker bids (offers) that are priced lower (higher) 
than the proposed execution price will execute at their stated 
price.\33\
---------------------------------------------------------------------------

    \32\ See BOX Rule 7270(b)(2)(iv)(B).
    \33\ See BOX Rule 7270(b)(2)(iv)(B).
---------------------------------------------------------------------------

    The Exchange intends to implement the proposed change no later than 
January 30, 2017. The Exchange will provide Participants with notice, 
via Information Circular, of the exact implementation date.
2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act,\34\ in general, and Section 
6(b)(5) of the Act,\35\ in particular, in that it is designed to 
prevent fraudulent and manipulative acts and practices, to promote just 
and equitable principles of trade, 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 that the proposed rule change to 
amend BOX Rule 7270 to provide for the execution of Complex Orders 
through the Solicitation Auction mechanism on BOX is designed to help 
BOX remain competitive among options exchanges and provide market 
participants additional opportunities to execute block-size crossing 
transactions in Complex Orders.
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78f(b).
    \35\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed change provides for the execution of Complex Orders 
through the Solicitation auction mechanism. 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. The Exchange does not believe the proposal will impose any 
burden on intermarket competition, as the proposed rule will allow BOX 
to compete with other options exchanges in the industry. Specifically, 
ISE has a similar mechanism in place.\36\ Additionally, the Exchange 
does not believe the proposal will impose any burden on intramarket 
competition, as the Solicitation Auction mechanism is available to all 
Participants and all OFPs may submit orders through the mechanism.
---------------------------------------------------------------------------

    \36\ See supra note 6.
---------------------------------------------------------------------------

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 proposed rule change 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, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \37\ and Rule 19b-4(f)(6) 
thereunder.\38\
---------------------------------------------------------------------------

    \37\ 15 U.S.C. 78s(b)(3)(A).
    \38\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the 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.
---------------------------------------------------------------------------

    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-2016-57 on the subject line.

[[Page 92923]]

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BOX-2016-57. 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-2016-57, and should be 
submitted on or before January 10, 2017.


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\39\
---------------------------------------------------------------------------

    \39\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-30562 Filed 12-19-16; 8:45 am]
 BILLING CODE 8011-01-P