[Federal Register Volume 80, Number 168 (Monday, August 31, 2015)]
[Notices]
[Pages 52529-52530]
[FR Doc No: 2015-21403]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75755; File No. SR-ISE-2015-24]

Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Market Data Fees

August 25, 2015.
    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 August 21, 2015, the International Securities Exchange, LLC
(the ``Exchange'' or the ``ISE'') filed with the Securities and
Exchange 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 change 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 purpose of this proposed rule change is to amend the Exchange's
Schedule of Fees to eliminate ISE's Historical Options Tick Data (``HOT
Data'') service. The text of the proposed rule change is available on
the Exchange's Web site (http://www.ise.com), at the principal office
of the Exchange, and at the Commission's Public Reference Room.

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 this proposed rule change is to amend the Exchange's
Schedule of Fees to eliminate ISE's HOT Data service because the ISE
has determined to no longer offer this service to members or non-
members.
    ISE's HOT Data was generated from daily data received from the
Options Price Reporting Authority (``OPRA''), which is the ``securities
information processor for market information generated by trading of
securities options in the United States.'' \3\ The core data
disseminated by OPRA includes last sale reports and quotations;
however, OPRA also disseminates other information including, for
example, the number of options contracts traded, open interest, and end
of day summaries.\4\ Specifically, to create ISE's HOT Data, the ISE
captured OPRA tick data \5\ and made it available as an ``end of day''
file \6\ or as a ``historical'' file \7\ for HOT Data subscribers and
other market participants that made ad hoc requests for data.
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    \3\ OPRA Overview at http://www.opradata.com/overview/opra_over.jsp.
    \4\ Id.
    \5\ The Exchange collected this data throughout each trading day
and at the end of each trading day, the Exchange compressed the data
and uploaded it onto a server. Once the data was loaded onto the
server, it was then made available to subscribers and other market
participants.
    \6\ An end of day file refers to OPRA tick data for a trading
day that was distributed prior to the opening of the next trading
day. An end of day file was made available to subscribers as soon as
practicable at the end of each trading day on an on-going basis
pursuant to an annual subscription or through an ad-hoc request.
    \7\ An end of day file that was distributed after the start of
the next trading day was called a historical file. A historical file
was available to customers for a pre-determined date range by ad-hoc
requests only.
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    The most recent fee charged to subscribers of HOT Data was $2,000
per month on an annual subscription basis. For ad-hoc requests, ISE
charged $120 per day, with a minimum purchase of $1,000 plus a
processing fee of $499 per order for up to 1.5 Terabytes (TB). An order
that exceeded 1.5 TB was charged an additional $399 for up to an
additional 1.5 TB.
    The Exchange now proposes to eliminate the HOT Data service.\8\
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    \8\ No rule requires the ISE or any other exchange to offer this
data nor are vendors required to purchase or display this data.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the requirements of section 6(b) of the Act.\9\ In
particular, the proposal is consistent with section 6(b)(5) of the
Act,\10\ because is designed to promote just and equitable principles
of trade, remove impediments to and perfect the mechanisms of a free
and open market and a national market system and, in general, to
protect investors and the public interest.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes eliminating the service is consistent with
the Exchange Act because it eliminates a service relating to market
data that the Exchange has determined to no longer offer to members or
non-members. The Exchange believes that the proposed rule change is
consistent with the protection of investors and the public interest
because the underlying data is available to market participants from
other sources. Although ISE's HOT Data is separate from the core data
feed available from OPRA, all the information that was available via
the HOT Data feed is included in the OPRA core data feed, and this data
is widely distributed. Additionally, the OPRA tick data collected and
stored by ISE is neither exclusive nor proprietary to the Exchange. As
such, the Exchange notes that there is nothing unique in ISE's HOT data
that a third party vendor could not also provide.

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

    This proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Exchange Act because ISE is eliminating a service that provides
data, which is available to market participants from other sources.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The Exchange believes that the foregoing proposed rule change may
take effect upon filing with the Commission pursuant to sction
19(b)(3)(A) \11\ of the Act and Rule 19b-4(f)(6) thereunder \12\
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 its filing date, or such shorter
time as the Commission may designate.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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: (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_ADDRESS>Please include
File Number SR-ISE-2015-24 on the subject line.

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-ISE-2015-24. 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-ISE-2015-24, and should be
submitted on or before September 21, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-21403 Filed 8-28-15; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 86, Number 83 (Monday, May 3, 2021)]
[Notices]
[Pages 23458-23460]
[FR Doc No: 2021-09020]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91670; File No. SR-BOX-2021-05]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend the Fee
Schedule on the BOX Options Market LLC Facility

April 26, 2021.
    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 April 15, 2021, BOX Exchange LLC (``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 on
the BOX Options Market LLC (``BOX'') facility. 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://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 Section II.C (QOO Order Rebate) of
the BOX Fee Schedule. Specifically, the Exchange proposes to reinstate
the monthly rebate cap of $30,000 per month per Broker Dealer. The
Exchange notes that the proposed rebate cap was previously in place
when BOX established fees for the Trading Floor in 2017.\5\
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    \5\ See Securities Exchange Act Release Nos. 81504 (August 30,
2017), 82 FR 42195 (September 6, 2017) (SR-BOX-2017-28)
(Establishing Fees and Rebates for the Trading Floor on the BOX
Market LLC Options Facility).
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    Currently, Floor Brokers are eligible to receive a $0.075 per
contract rebate for all Broker Dealer and Market Maker QOO Orders
presented on the Trading Floor and $0.05 per contract rebate for all
Professional Customer QOO Orders presented on the Trading Floor. The
rebate is not applied to Public Customer executions, executions subject
to the Strategy QOO Order Fee Cap, or Broker Dealer executions where
the Broker Dealer is facilitating a Public Customer. Under this
proposal, Floor Brokers will continue to be eligible to receive a per
contract rebate for all applicable QOO Orders; however, the total
monthly rebate for Broker Dealer orders will now be capped at $30,000
per month per Broker Dealer.\6\
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    \6\ The Exchange notes that all Broker Dealer QOO Orders that
are eligible for the rebate will also be subject to the rebate cap.
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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,\7\ 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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    \7\ 15 U.S.C. 78f(b)(4) and (5).
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    BOX established the QOO Order Rebate program and the monthly rebate
cap in August 2017. As discussed in BOX's 2017 proposal to establish
the QOO Order Rebate program and rebate

cap, the rebate was created to incentivize order flow to the BOX
Trading Floor. Further, the QOO Order Rebate program was established to
attract order flow by rewarding Floor Brokers with rebates for
directing qualifying orders to the BOX Trading Floor.\8\ The Exchange
notes that it is not making any changes to the amount of the QOO Order
Rebate, and that the QOO rebate will continue to apply to both sides of
the qualifying paired QOO Order.\9\
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    \8\ Unlike competing exchanges, the Exchange does not offer a
front-end order entry system to its Floor Brokers to submit orders
on the BOX Trading Floor. Instead, Floor Brokers use their own
proprietary front-end order entry systems on the BOX Trading Floor.
Given this, Participants have two possible means of bringing orders
to the Exchange's Trading Floor for possible execution: (1) They can
invest in the technology, systems and personnel to participate on
the Trading Floor and deliver the order to the Exchange matching
engines for validation and execution; or (2) they can utilize the
services of another Participant acting as a Floor Broker. The
Exchange notes that the investment in the technology, systems and
personnel to establish a front-end order entry system on the BOX
Trading Floor is substantial. As such, the Exchange established the
QOO Order Rebate program to incentivize Participants to (1) make
such an investment to become a Floor Broker on the BOX Trading Floor
and (2) allow Floor Brokers to price their services at a level that
would enable them to attract QOO order flow from participants who
would otherwise utilize the front-end order entry mechanism offered
by the Exchange's competitors instead of incurring the cost in time
and resources to install and develop their own internal systems to
deliver QOO orders directly to the Exchange system.
    \9\ As noted above, currently the rebate does not apply to
Public Customer executions, executions subject to the Strategy QOO
Order Fee Cap, or Broker Dealer executions where the Broker Dealer
is facilitating a Public Customer.
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    The Exchange notes that the rebate cap was removed in December 2019
to further incentivize Floor Brokers to bring QOO Order flow to the BOX
Trading Floor.\10\ The Exchange now believes the same level of
incentive is no longer necessary for Floor Brokers to bring additional
order flow to the BOX Trading Floor and, as such, believes the proposed
change to reinstate the rebate cap is reasonable and appropriate at
this time.\11\ Further, the Exchange notes that Floor Brokers will
continue to be offered the per contract rebate for applicable QOO
Orders (subject to the proposed rebate cap) and fees for Broker Dealers
will continue to be capped at $75,000 per month per Broker Dealer.\12\
The Exchange believes that, despite the reinstatement of the proposed
rebate cap, the current per contract rebate for Floor Brokers and fee
cap for Broker Dealer QOO Orders will continue to incentivize Floor
Brokers to bring Broker Dealer QOO order flow to the Exchange. The
Exchange also believes the proposed rebate cap is reasonable as it was
previously in place on the BOX Trading Floor.\13\ For the foregoing
reasons, the Exchange believes it is appropriate to reinstate the
rebate cap for Broker Dealer orders on the BOX Trading Floor.
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    \10\ See Securities Exchange Act Release No. 87704 (December 10,
2019), 84 FR 68499 (December 16, 2019) (SR-BOX-2019-35).
    \11\ As with any incentive, there are multiple ways to reduce or
raise the level. The Exchange notes it could have lowered the QOO
Rebate amount, but instead decided to reinstate the QOO rebate cap
that had already previously been in place on the Exchange.
    \12\ The Exchange notes that QOO Order fees are capped for
Broker Dealers only on the BOX Trading Floor--Market Maker and
Professional Customer order fees are not subject to any such fee
cap. As such, the Exchange believes that reinstating the rebate cap
for Broker Dealer orders is reasonable and appropriate at this time.
    \13\ See supra note 5.
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    Lastly and as noted above, the Exchange further believes that the
$30,000 rebate cap for Broker Dealer orders is equitable and not
unfairly discriminatory as Broker Dealer QOO Order execution fees are
currently capped at $75,000 per month and other QOO Order fees are not.
Further, all similarly situated Floor Brokers on the BOX Trading Floor
who receive rebates on Broker Dealer orders will be uniformly capped at
$30,000 per month per Broker Dealer.

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 the
proposed rebate cap will not impose an unfair burden on intramarket
competition because all similarly situated Floor Brokers who receive
rebates on Broker Dealer orders on the BOX Trading Floor would be
uniformly capped at $30,000 per month per Broker Dealer.\14\ Further,
the Exchange believes the proposed rule change does not impose any
burden on intermarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act as the Exchange operates in a
highly competitive market in which market participants can readily
choose to send their orders to other exchanges with trading floors if
they deem rebate opportunities at other trading floors to be more
favorable. In such an environment, the Exchange must continually
review, and consider adjusting, its fees and rebates to remain
competitive within the industry. For the reasons described above, the
Exchange believes that the proposed rule change reflects this
competitive environment.
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    \14\ As mentioned above, the Exchange believes that reinstating
the rebate cap for Broker Dealer orders is reasonable and
appropriate because Broker Dealer orders are the only executions
currently capped at $75,000 per month (Market Maker and Professional
Customer orders are not subject to any fee cap).
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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 \15\ and Rule 19b-4(f)(2)
thereunder,\16\ because it establishes or changes a due, or fee.
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    \15\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \16\ 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
exception occurred on : 2021-09020.htm
exception occurred on : 2021-09020.htm
     Send an email to rule-comme[email protected]. Please include
File Number SR-BOX-2021-05 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-2021-05. 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
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. 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-
2021-05, and should be submitted on or before May 24, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-09020 Filed 4-30-21; 8:45 am]
BILLING CODE 8011-01-P