# SECURITIES AND EXCHANGE COMMISSION

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URL: https://www.frixlaw.com/law-library/documents/agency%3Asec%3A70c34559b4f53e52

## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

SECURITIES AND EXCHANGE COMMISSION
[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.
I.

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

1

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

2

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.
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 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.

3

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

4

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.

2

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

5

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

6

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.

3

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.
2.

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

7

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.

8

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

9

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

4

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.

5

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.

6

B.

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

10

See supra note 3.

7

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.
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 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
11

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.

12

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

13

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

8

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.
14

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

15

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

16

See supra note 3.

17

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).

9

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.

10

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
REGISTER].
For the Commission, by the Division of Trading and Markets, pursuant to delegated
authority. 18

Sherry R. Haywood,
Assistant Secretary.

18

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

11

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Asec%3A70c34559b4f53e52. Public record. Not legal advice.