BOX gets SEC approval as self-regulatory organisation

Source: BOX Options Exchange

BOX Options Exchange announces it has received SEC approval of its application for registration as a national securities exchange and thus, act as its own selfregulatory organization (SRO).

BOX expects to start using its own exchange license in mid-May.Being an SRO eliminates the need for BOX to rely on Nasdaq OMX Group Inc., which has been conducting the regulatory oversight of its options market.

"After years of hard work, we are excited to act as our own SRO and no longer be regulated by a competitor," said Tony McCormick, BOX CEO. "We are anticipating greater efficiencies, and the ability to directly file for new products and contracts that will enhance the experience for our customers."

BOX is owned indirectly by Montréal Exchange Inc. (a wholly-owned subsidiary of TMX Group Inc.) and seven broker dealers. As part of the organizational restructuring in connection with the exchange approval, TMX Group Inc. will take a 40% economic interest and a 20% voting interest in the new SRO, and will maintain its 53.8% ownership interest in the BOX options trading platform through a 53.8% stake in BOX Holdings Group LLC, which will own and operate the options trading platform.

The new SRO board will be elected in the coming weeks and will likely include: Paul Stevens, former president of OCC; Laurence Mollner, former chairman of the Futures Industry Association; Robert Whaley, Vanderbilt University professor; TMX Group CEO Thomas Kloet; and James Boyle of UBS. 

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