[Federal Register Volume 84, Number 52 (Monday, March 18, 2019)]
[Notices]
[Pages 9856-9858]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04947]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85293; File No. SR-BOX-2019-05]
Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the BOX
Fee Schedule
March 12, 2019.
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 February 28, 2019, BOX Exchange LLC (``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 amend to BOX Fee Schedule. 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 http://boxoptions.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 add Section VIII.B. (Fee Disputes) to the
BOX Fee Schedule. Specifically, the Exchange proposes that all fee
disputes concerning fees which are billed by the Exchange must be
submitted to the Exchange in writing and must be accompanied by
supporting documentation. All fee disputes must be submitted no later
than sixty (60) calendar days after receipt of billing invoice. The
Exchange notes that similar language exists at other options exchanges
in the industry.\3\
---------------------------------------------------------------------------
\3\ See Nasdaq ISE, LLC (``ISE'') Options 7 Pricing Schedule
Section 1(b). See also Miami International Securities Exchange LLC
(``MIAX'') Fee Schedule cover page.
---------------------------------------------------------------------------
[[Page 9857]]
The Exchange provides Participants with both daily and monthly fee
reports and thus believes Participants should be aware of any potential
billing errors within sixty calendar days of receiving an invoice.
Requiring that Participants dispute an invoice within this time period
will encourage them to promptly review their invoices so that any
disputed charges can be addressed in a timely manner while the
information and data underlying those charges (e.g. applicable fees and
order information) is still easily and readily available. This practice
will avoid issues that may arise when Participants do not dispute an
invoice in a timely manner, and will conserve Exchange resources that
would have to be expended to resolve untimely billing disputes. The
Exchange notes that this type of provision is common among other
exchanges, which require that Participants dispute invoices within
sixty days.\4\
---------------------------------------------------------------------------
\4\ Id.
---------------------------------------------------------------------------
The sixty days would first apply to invoices related to
transactional billing in March 2019 and would apply thereafter. The
Exchange proposes to apply the billing policy to all charges reflected
in the BOX Fee Schedule.
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act,\5\ in general, and Section
6(b)(5) of the Act,\6\ in particular, in that it 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
providing a uniform practice for disputing fees.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes the requirement that all billing disputes
must be submitted, in writing, and with supporting documentation,
within sixty calendar days from receipt of the invoice is reasonable
and in the public interest because the Exchange provides ample tools to
properly and swiftly monitor and account for various charges incurred
in a given month. Specifically, the Exchange sends a monthly PDF
invoice to all billing contacts outlining the charges, as well as daily
and monthly transaction details to assist with monitoring trade-related
charges. Moreover, the proposed fee dispute language, which will lower
the Exchange's administrative burden, is substantially similar to
billing dispute language at other options exchanges.\7\ Also, the
Exchange's administrative costs would be lowered as a result of this
policy because staff resources would not be diverted to review untimely
requests regarding billing.
---------------------------------------------------------------------------
\7\ See supra note 3.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange notes note believe that the proposed change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The billing policy would
apply uniformly to all BOX Participants. As discussed herein, the
policy is similar to policies in place by other options exchanges.\8\
---------------------------------------------------------------------------
\8\ Id.
---------------------------------------------------------------------------
Further, this proposal would provide a cost savings to the Exchange
in that it would alleviate processes related to the untimely review of
billing disputes which divert staff resources away from the Exchange's
regulatory and business purposes.
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 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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6) \10\
thereunder.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). 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.
---------------------------------------------------------------------------
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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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-2019-05 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-2019-05. 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 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 the 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-2019-05 and should be submitted on
or before April 8, 2019.
[[Page 9858]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-04947 Filed 3-15-19; 8:45 am]
BILLING CODE 8011-01-P