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Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices Section 6b5 of the Exchange Act 312
because they protect investors and the public interest by setting forth clear definitions that help BOX and BSTX
Participants understand and apply Exchange Rules. Without defining terms used in the Exchange Rules clearly, market participants could be confused as to the application of certain rules, which could cause harm to investors.
The Exchange believes that the proposed amendments to the other Exchange Rules detailed above are consistent with Section 6b5 of the Exchange Act 313 because the proposed rule change is designed to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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 believes that the proposed rule change would remove impediments to and perfect the mechanism of a free and open market and a national market system by ensuring that market participants can easily navigate, understand and comply with the Exchanges rulebook. The Exchange believes that the proposed rule change enables the Exchange to continue to enforce the Exchanges rules. The Exchange notes that none of the proposed changes to the current Exchange rulebook would materially alter the application of any of those Rules, other than by extending them to apply to BSTX Participants and trading on the BSTX System. As such, the proposed amendments would foster cooperation and coordination with persons engaged in facilitating transactions in securities and would remove impediments to and perfect the mechanism of a free and open market and a national exchange system.
Further, the Exchange believes that, by ensuring the rulebook accurately reflects the intention of the Exchanges rules, the proposed rule change reduces potential investor or market participant confusion.

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Forms To Be Used in Connection With BSTX
In connection with the operation of BSTX, the Exchange proposes to uses a series of new forms to facilitate becoming a BSTX Participant and for issuers to list their Securities. These forms have been submitted with the proposal as Exhibits 3A3L. Each are described below.
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BSTX Participant Application Pursuant to proposed Rule 18000b, in order to become a BSTX Participant, an applicant must complete a BSTX
Participant Application, which has been submitted with the proposal as Exhibit 3A. The proposed BSTX Participant Application requires the applicant to provide certain basic information such as identifying the applicants name and contact information, Designated Examining Authority, organizational structure, and Central Registration Depository CRD number. The BSTX
Participant Application also requires applicants to provide additional information including certain beneficial ownership information, the applicants current Form BD, an organization chart, a description of how the applicant receives orders from customers, how it will send orders to BSTX, and a copy of written supervisory procedures and information barrier procedures.
In addition, the BSTX Participant Application allows applicants to indicate whether they are applying to be a BSTX Market Maker or a Designated Market Maker. Applicants wishing to become a BSTX Market Maker or Designated Market Maker must provide certain additional information including a list of each of the applicants trading representatives including a copy of each representatives Form U4, a copy of the applicants written supervisory procedures relating to market making, a description of the source and amount of the applicants capital, and information regarding the applicants other business activities and information barrier procedures.
BSTX Participant Agreement Pursuant to Exchange Rule 18000b, to transact business on BSTX, prospective BSTX Participants must complete a BSTX Participant Agreement. The BSTX Participant Agreement has been submitted with the proposal as Exhibit 3B. The BSTX
Participant Agreement provides that a BSTX Participant must agree with the Exchange as follows:
1. Participant agrees to abide by the Rules of the Exchange and applicable bylaws, as amended from time to time, and all circulars, notices, interpretations, directives and/or decisions adopted by the Exchange.
2. Participant acknowledges that BSTX Participant and its associated persons are subject to the oversight and jurisdiction of the Exchange.
3. Participant authorizes the Exchange to make available to any governmental agency or SRO any information it may have concerning the BSTX Participant
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or its associated persons, and releases the Exchange from any and all liability in furnishing such information.
4. Participant acknowledges its obligation to update any and all information contained in any part of the BSTX Participants application, including termination of membership with another SRO.
These provisions of the BSTX
Participant Agreement and others therein are generally designed to reflect the Exchanges SRO obligations to regulate BSTX Participants.
Accordingly, these provisions contractually bind a BSTX Participant to comply with Exchange rules, acknowledge the Exchanges oversight and jurisdiction, authorize the Exchange to disclose information regarding the Participant to any governmental agency or SRO and acknowledge the obligation to update any and all Application contained in the Participants application.
BSTX User Agreement In order to become a BSTX
Participant, prospective participants must also execute a BSTX User Agreement pursuant to proposed Rule 18000b. The BSTX User Agreement, submitted with the proposal as Exhibit 3C, includes provisions related to the term of the agreement, compliance with exchange rules, right and obligations under the agreement, changes to BSTX, proprietary rights under the agreement, use of information received under the relationship, disclaimer of warranty, limitation of liability, indemnification, termination and assignment. The information is necessary to outline the rights and obligations of the prospective Participant and the Exchange under the terms of the agreement. Both the BSTX
Participant Agreement and BSTX User Agreement will be available on the Exchanges website boxoptions.com.
BSTX Security Market Designated Market Maker Selection Form In accordance with proposed Rule 25230b1, BSTX will maintain the BSTX Security Designated Market Maker Selection Form, which has been submitted with the proposal as Exhibit 3D. The issuer may select its DMM from among a pool of DMMs eligible to participate in the process. Within two business days of the issuer selecting its DMM, it will use the BSTX Security Market Designated Market Maker Selection form to notify BSTX of the selection. The form must be signed by a duly authorized officer as specified in proposed Rule 25230b1.

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