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This document provides notice of a proposed rule change filed by BOX Options Exchange, LLC to extend the Penny Pilot Program, allowing options classes to be quoted in penny increments until December
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How to fill out Proposed Rule Change to Extend the Penny Pilot Program

01
Start by downloading the Proposed Rule Change form from the appropriate regulatory agency's website.
02
Read the instructions carefully to understand the requirements for filling out the form.
03
Enter the proposed rule change title, ensuring it clearly indicates the focus on extending the Penny Pilot Program.
04
Provide a detailed explanation of the rationale behind the proposed extension, including market benefits and anticipated outcomes.
05
Include any necessary data or statistics that support the proposed extension.
06
Specify the duration for which the extension is being requested.
07
Review the form for completeness and accuracy before submission.
08
Submit the form through the designated submission process (e.g., online portal, mail).
09
Keep a copy of the submitted form for your records.

Who needs Proposed Rule Change to Extend the Penny Pilot Program?

01
Market participants such as traders and investors who benefit from lower transaction costs.
02
Broker-dealers looking to provide competitive trading options.
03
Regulatory agencies monitoring market efficiency and trading practices.
04
Financial institutions interested in supporting initiatives that enhance market liquidity.
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The Proposed Rule Change to Extend the Penny Pilot Program is an initiative aimed at extending the existing program that allows options on certain securities to be quoted and traded in penny increments, thereby promoting greater market efficiency and enhancing liquidity.
Typically, the exchanges that participate in the Penny Pilot Program, such as the options exchanges, are required to file the Proposed Rule Change with the relevant regulatory authorities.
To fill out the Proposed Rule Change, the exchanges must provide detailed information regarding the reasons for the extension, impact on the market, specific rules being amended, and any data supporting the need for the proposed changes.
The purpose of the Proposed Rule Change is to continue allowing the trading of certain options in penny increments, which is intended to enhance price discovery, improve execution quality, and attract more participants to the market.
The information that must be reported includes the nature of the rule change, the expected impact, data supporting the proposed extension, compliance with relevant regulations, and any public comments received during the review process.
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