[Federal Register Volume 82, Number 199 (Tuesday, October 17, 2017)]
[Notices]
[Pages 48304-48306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22388]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81850; File No. SR-BOX-2017-31]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the Fee Schedule To Update Certain Fees Assessed Under Section 
VI.A (Connectivity Fees)

October 11, 2017.
    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 September 29, 2017, BOX Options Exchange LLC (the ``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 [sic] 
to amend the Fee Schedule to update certain fees assessed under Section 
VI.A (Connectivity Fees). While changes to the fee schedule pursuant to 
this proposal will be effective upon filing, the changes will become 
operative on October 2, 2017. 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 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 update the connectivity fees that are assessed on market 
participants.
    Section VI.A. of the BOX Fee Schedule ``Connectivity Fees'', was 
created to detail the fees applicable to market participants who 
connect to the BOX market network at Point of Presence (``PoP'') sites. 
These sites are owned and operated by third-party external vendors, and 
the fees listed in this section are meant to encompass the fees that 
could be charged based on each market participant's particular 
configuration. BOX does not assess Connectivity Fees; these fees are 
assessed by the datacenters and are billed directly to the market 
participant. Connectivity fees can include one-time set-up fees and 
monthly fees charged by the third-party vendor in exchange for the 
services provided to the market participant.
    The Exchange proposes to update the fees applicable for the 
datacenters where market participants may connect to the BOX network: 
NY4, owned and operated by Equinix; and 65 Broadway, owned and operated 
by 365 Main; and the connectivity fees applicable, depending upon 
connection type. Market participants are currently assessed the 
following fees when connecting to the BOX network:

----------------------------------------------------------------------------------------------------------------
                                                                NY4                         65 Broadway
                                                 ---------------------------------------------------------------
                 Connection Type                   One-time set-                   One-time set-
                                                        up            Monthly           up            Monthly
----------------------------------------------------------------------------------------------------------------
POTS............................................            $100             $25             $50             $25
Ethernet........................................             N/A             N/A             250             175

[[Page 48305]]

 
T1..............................................             500             100             250             175
Cat 5/6.........................................             500             245             250             175
COAX............................................             500             245             250             200
Single & Multi Mode Fiber.......................             500             350             500             250
Extended Cross Connect..........................           1,000             750             500             400
Intra-Customer Cross Connect....................             500               0             N/A             N/A
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    The Exchange proposes to remove the Extended Cross Connection Type 
for NY4 datacenter. Additionally, the Exchange proposes to amend the T1 
monthly fee at NY4 from $100 to $245. As such, the fees will be as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                NY4                         65 Broadway
                                                 ---------------------------------------------------------------
                 Connection Type                   One-time set-                   One-time set-
                                                        up            Monthly           up            Monthly
----------------------------------------------------------------------------------------------------------------
POTS............................................            $100             $25             $50             $25
Ethernet........................................             N/A             N/A             250             175
T1..............................................             500             245             250             175
Cat 5/6.........................................             500             245             250             175
COAX............................................             500             245             250             200
Single & Multi Mode Fiber.......................             500             350             500             250
Extended Cross Connect..........................             N/A             N/A             500             400
Intra-Customer Cross Connect....................             500               0             N/A             N/A
----------------------------------------------------------------------------------------------------------------

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,\5\ 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 does not unfairly discriminate between customers, issuers, brokers 
or dealers.
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    \5\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes it is reasonable, equitable and not unfairly 
discriminatory to state that connectivity fees are assessed on all 
market participants that establish connections to BOX through a third-
party and that these fees will be billed directly to the market 
participant. The Exchange believes that the proposed amendments to 
Section VI.A. of the Fee Schedule are reasonable as they simply reflect 
the fee changes made by the datacenters, changes which the Exchange has 
no control over.
    Further, the Exchange believes that the proposed Connectivity Fees 
constitute an equitable allocation of fees, and are not unfairly 
discriminatory, as all similarly situated market participants are 
charged the same amount depending on the services they receive.

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 the 
proposed amendments to the Fee Schedule will not impose a burden on 
competition among various Exchange Participants. The proposed change is 
designed to provide greater specificity and clarity within the Fee 
Schedule and does not place any Participants at a disadvantage compared 
to other Participants. Further, the Exchange does not believe this rule 
change will have an impact on intermarket competition.

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 \6\ and Rule 19b-4(f)(2) 
thereunder,\7\ because it establishes or changes a due, or fee.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 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-2017-31 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-2017-31. 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

[[Page 48306]]

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-2017-31, and should be 
submitted on or before November 7, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-22388 Filed 10-16-17; 8:45 am]
BILLING CODE 8011-01-P