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[Release No. 34-106298; File No. SR-BOX-2026-18]

Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate

Effectiveness of a Proposed Rule Change to Amend SAIL Order Entry Port Fees

September 9, 2026.

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 August 25, 2026 BOX 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 selfregulatory organization. The Commission is publishing this notice to solicit comments on the

proposed rule change from interested persons.

Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed

Rule Change

The Exchange proposes to amend the Fee Schedule. Specifically, the Exchange proposes

to amend Section III.B. (Port Fees) to propose a limit on the number of SAIL Order Entry Ports

that a Participant may be credentialed to use in a month and add language clarifying that the

Exchange currently offers two types of SAIL Ports. The Exchange is also proposing to make

certain technical and non-substantive changes within the Fee Schedule. The text of the proposed

rule change is available from the principal office of the Exchange, and also on the Exchange’s

Internet website at https://rules.boxexchange.com/rulefilings.

II.

Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the

Proposed Rule Change

15 U.S.C. 78s(b)(1).

17 CFR 240.19b-4.

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.

Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis

for, the Proposed Rule Change

Purpose

The Exchange proposes to amend Section III.B. (Port Fees) of the Fee Schedule.

Specifically, the Exchange proposes to amend Section III.B.2. (SAIL) of the Fee Schedule to

propose a limit on the number of SAIL Order Entry Ports that a Participant may be credentialed

to use in a month. The Exchange notes that the proposed limitation is similar to an existing

limitation in place at another options exchange. 3 The Exchange is also proposing to add language

to Section III.B.2. clarifying that the Exchange currently offers two types of SAIL Ports – Order

Entry and Market Making.

Currently, BOX assesses monthly SOLA® Access Information Language (“SAIL”) Port 4

Fees on all Participants in each month a Participant is credentialed to use a SAIL Port in the

production environment and based upon the number of credentialed SAIL Ports. Participants are

assessed a SAIL Order Entry Port fee of $540 per month per port for the first five ports (1-5) and

$162 per month for each additional port.

See Nasdaq Stock Market LLC (“Nasdaq”) Options 7, Section 3(i)(2) SQF Port Fee.

SAIL Market Making Ports are connections to BOX systems that enable Market Makers to continuously

quote on BOX, while SAIL Order Entry Ports allow Market Makers and other Participants to submit order

flow to BOX.

At this time, the Exchange proposes to limit a Participant to no more than 200 SAIL

Order Entry Ports per month. 5 The Exchange notes that in order to submit orders Participants

must connect to a minimum of one port via FIX or SAIL. 6 While a Participant may elect to

obtain multiple SAIL Order Entry Ports for business purposes, in order to submit orders a

Participant is only required to connect to one port and can choose between either FIX or SAIL

Ports. The Exchange utilizes ports as a secure method for Participants to submit orders and

quotes into the Trading System and for the Exchange to send messages related to those orders

and quotes to Participants. In order to properly regulate its Participants and secure the trading

environment, the Exchange has taken measures to ensure access is monitored and maintained

with various controls. The Exchange believes that adopting such limit will help to govern

connectivity management and accommodate overall demand on the Exchange by providing a

means to efficiently deploy Exchange resources, as no exchange has infinite capacity. In the

event a Participant were to reach the proposed limit of 200 SAIL Order Entry Ports, such

Participant would have the option to be credentialed for additional FIX Ports for order entry. The

Exchange notes that, generally, there are no current limitations on the number of FIX Ports that a

Participant may be credentialed for per month. Accordingly, the Exchange believes a limit of 200

SAIL Order Entry Ports will provide it with the appropriate bandwidth to support future growth

The Exchange will also issue a Notice to announce the limitation to Participants.

SAIL is the native protocol for SOLA®, which offers functionalities required by both Order Flow

Providers and Market Makers on BOX. SAIL is a proprietary protocol of BOX and allows Participants to

connect, send, and receive messages related to orders and quotes. SAIL Ports offer lower latency as

compared to Financial Information eXchange (“FIX”) Ports, which may be attractive to Participants

depending on their trading behavior. Alternatively, FIX is an order management protocol widely used by

professional trading systems and many order management systems. BOX provides a FIX interface that

allows Participants, who are already using the FIX protocol for order routing and management to other

options markets, a streamlined way to connect to the BOX Trading System.

and new Participant entrants. 7 The Exchange will announce by Notice when it will implement

the 200 SAIL Order Entry Ports per month limit.

Finally, the Exchange is proposing to make a few technical edits to the Fee Schedule.

Specifically, the Exchange proposes to amend Section II. C. (Options Regulatory Fee) to remove

obsolete text regarding an ORF rate that is no longer in effect, to amend III. (Technology Fees)

to add the word “Section” to the heading for consistency with the other section headings within

the Fee Schedule, to correct an internal cross reference within current endnote 36, and to

renumber certain endnotes within the Fee Schedule to conform with the changes proposed

herein.

Statutory Basis

The Exchange believes that the proposal is consistent with the requirements of Section

6(b) of the Act, 8 in general, and Section 6(b)(5) of the Act, 9 in particular, in that it is designed 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.

The Exchange’s proposal to limit a Participant to no more than 200 SAIL Order Entry

Ports per month is consistent with the Act because it will allow the Exchange to ensure rational

and efficient use of resources in its overall connectivity management. Additionally, the Exchange

believes that the proposed rule change will further the purposes of the Act by providing an

additional means to the Exchange for managing its finite resources, as no exchange has unlimited

The Exchange will periodically review the SAIL Order Entry Port limit. If the Exchange elects to amend

the limit in the future, it will file a rule proposal with the Commission.

15 U.S.C. 78f(b).

15 U.S.C. 78f(b)(5).

capacity. The proposed limit on SAIL Order Entry Ports is being proposed in order to manage

capacity and resources is designed to assist with the maintenance of a fair and orderly market,

promote just and equitable principles of trade, and prevent fraudulent and manipulative acts and

practices, as it ensures that the Exchange is utilizing its resources in an effective and efficient

manner.

The Exchange utilizes ports as a secure method for Participants to submit orders and

quotes into the Trading System and for the Exchange to send messages related to those orders

and quotes to Participants. Only approved Participants may utilize a SAIL Order Entry Port.

Once approved, Participants may be credentialed to use SAIL Order Entry Ports to submit orders

into the Exchange. While a Participant may elect to obtain multiple SAIL Order Entry Ports for

business purposes, in order to submit orders a Participant is only required to connect to one port

and can choose between either FIX or SAIL. In the event a Participant were to reach the

proposed limit of 200 SAIL Order Entry Ports, such Participant would have the option to be

credentialed for additional FIX Ports for order entry. The Exchange notes that, generally, there

are no current limitations on the number of FIX Ports that a Participant may be credentialed for

per month. In order to properly regulate its Participants and secure the trading environment, the

Exchange has taken measures to ensure access is monitored and maintained with various controls

that will protect investors and the public interest. Specifically, the Exchange ensures that

information security safeguards, upgrades, and general port management are in effect for all

SAIL Order Entry Ports regardless of whether the SAIL Order Entry Port is actively in use. As a

result of these efforts, the Exchange incurs costs to manage and maintain its SAIL Order Entry

Ports and the secure environment surrounding its platform.

The Exchange’s proposal is intended to assist the Exchange in continuing to govern its

connectivity management in a reasonable manner while protecting investors and the general

public by encouraging the efficient and effective use of the Exchange’s resources with the limit

on SAIL Order Entry Ports. The Exchange believes that its proposal is consistent with the Act in

that it will provide the Exchange the ability to maintain the appropriate bandwidth to support

future growth and new entrants thereby removing impediments to and perfect the mechanism of

a free and open market.

The Exchange believes further that adding language to Section III.B.2. clarifying that the

Exchange currently offers two types of SAIL Ports, Order Entry and Market Making, is

consistent with the Act because the proposed change will provide greater clarity to market

participants regarding the Exchange's Fee Schedule. The Exchange believes that this additional

detail relating to its current SAIL Port offerings will reduce the potential for investor confusion

and make its existing fees more clear.

Finally, the Exchange proposes to remove obsolete text regarding an ORF rate that is no

longer in effect, to add the word “Section” to existing section heading III. (Technology Fees) for

consistency with the other section headings within the Fee Schedule, to correct an internal cross

reference within current endnote 36, and to renumber certain endnotes within the Fee Schedule

to conform with the changes proposed herein. The Exchange believes that these proposed

technical and non-substantive changes will promote just and equitable principles of trade and

remove impediments to and perfect the mechanism of a free and open market and a national

market system because the proposed change will provide greater clarity to market participants

regarding the Exchange's Fee Schedule. It is in the public interest for the Exchange's Fee

Schedule to be clear and accurate so as to eliminate the potential for confusion.

Self-Regulatory Organization’s Statement on Burden on Competition

The Exchange does not believe that the proposed rule change will result in any burden on

competition that is not necessary or appropriate in furtherance of the purposes of the Act. The

proposed change is not intended to address competitive issues and instead is being proposed to

assist with the maintenance of a fair and orderly market by providing the Exchange with the

ability govern its connectivity management in a reasonable manner and to encourage the efficient

and rational use of the Exchange’s finite resources. The Exchange also notes that the proposed

limit is similar to an existing limitation in place at another options exchange. 10

Intramarket Competition. The Exchange believes the proposed rule change to amend

Section III.B. (Port Fees) of the Fee Schedule to propose a limit on the number of SAIL Order

Entry Ports that a Participant may be credentialed to use in a month, would not place an unfair

burden on intramarket competition because it is designed to encourage the efficient use of the

Exchange’s resources and to provide the Exchange the ability to maintain the appropriate

bandwidth to support future growth. The Exchange does not believe that its proposal will place

any category of market participant at a competitive disadvantage because all Participants will

uniformly be permitted to be credentialed to use no more than 200 SAIL Order Entry Ports in a

month. Today, no Participant has exceeded 200 SAIL Order Entry Ports.

Intermarket Competition. The Exchange believes the proposal would not place an unfair

burden on intermarket competition as it is not intended to address any competitive issues but is

instead designed solely to encourage the efficient use of the Exchange’s resources and to allow the

Exchange to continue to reasonably govern its connectivity management. The Exchange believes

that the proposal to limit the number of SAIL Order Entry Ports that a Participant may be

See supra note 3.

credentialed to use each month will help ensure that the Exchange has adequate tools at its

disposal to maintain the appropriate bandwidth to support future growth and new entrants,

which, in turn, will sustain the Exchange’s overall competitiveness. The Exchange also notes that

nothing prevents other options exchanges, as applicable, from electing to adopt a similar limit. 11

The Exchange also does not believe the proposed technical and clarifying changes will

have any unnecessary or inappropriate burden on competition because these changes will apply

equally to all Participants and are intended to provide greater clarity to market participants

regarding the Exchange's Fee Schedule to reduce potential investor confusion.

For the foregoing reasons, 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.

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 from the date on which it was filed, or such shorter time

as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the

Act 12 and Rule 19b-4(f)(6) thereunder. 13

The Exchange notes that Nasdaq and Nasdaq PHLX LLC (PHLX”) currently prohibit Market Makers from

subscribing to more than 250 SQF Ports per month. See Nasdaq Options 7, Section 3(i)(2) SQF Port Fee

and PHLX Options 7, Section 9(B)(i)(3), respectively.

15 U.S.C. 78s(b)(3)(A).

17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the

Commission written notice of its intent to file the proposed rule change, along with a brief description and

text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule

A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act 14 normally does

not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) 15

permits the Commission to designate a shorter time if such action is consistent with the

protection of investors and the public interest. The Exchange has requested that the Commission

waive the 30-day operative delay so that the proposed rule change may become operative upon

filing. The proposed limit is similar to an existing limitation in place at another options

exchange 16 and raises no new or novel issues. Accordingly, it is consistent with the protection of

investors and the public interest to waive the 30-day operative delay. 17

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:

change, or such shorter time as designated by the Commission. The Exchange has satisfied this

requirement.

17 CFR 240.19b-4(f)(6).

17 CFR 240.19b-4(f)(6)(iii).

See supra note 3.

For purposes only of waiving the 30-day operative delay, the Commission has considered the proposed

rule's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f).

Electronic Comments:

•

Use the Commission’s Internet comment form

(https://www.sec.gov/rules/sro.shtml); or

•

Send an email to rule-comments@sec.gov. Please include File Number SR-BOX2026-18 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-2026-18. 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 (https://www.sec.gov/rules/sro.shtml). Copies

of the filing will be available for inspection and copying at the principal office of the Exchange.

Do not include personal identifiable information in submissions; you should submit only

information that you wish to make available publicly. We may redact in part or withhold entirely

from publication submitted material that is obscene or subject to copyright protection.

All submissions should refer to file number SR-BOX-2026-18 and should be submitted on or

before [INSERT DATE 21 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL

For the Commission, by the Division of Trading and Markets, pursuant to delegated

authority. 18

Sherry R. Haywood,

Assistant Secretary.

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

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.