80_FR_27305 80 FR 27214 - Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Effectiveness of a Permit Holder

80 FR 27214 - Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Effectiveness of a Permit Holder

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 91 (May 12, 2015)

Page Range27214-27216
FR Document2015-11379

Federal Register, Volume 80 Issue 91 (Tuesday, May 12, 2015)
[Federal Register Volume 80, Number 91 (Tuesday, May 12, 2015)]
[Notices]
[Pages 27214-27216]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-11379]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74888; File No. SR-C2-2015-011]


Self-Regulatory Organizations; C2 Options Exchange, Incorporated; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the Effectiveness of a Permit Holder

May 6, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on May 5, 2015, C2 Options Exchange, Incorporated (the 
``Exchange'' or ``C2'') filed with the Securities and Exchange 
Commission (the ``Commission'') the proposed rule change as described 
in Items I and II below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt a rule relating to the effectiveness 
of a Permit Holder. The text of the proposed rule change is available 
on the Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the 
Secretary, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange 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 Exchange 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 adopt a rule governing the effectiveness 
of Permit Holder status. In particular, the Exchange proposes to add 
language to its rules to codify the requirement that each applicant, to 
be a Permit Holder, must become effective in that status within 90 days 
of the date of the applicant's approval. The Exchange also proposes to 
clarify that a Permit Holder shall become effective upon (i) satisfying 
applicable requirements to obtain a Trading Permit and (ii) the release 
of a Trading Permit to that Permit Holder by the Registration Services 
Department (``RSD'').

[[Page 27215]]

    By way of background, pursuant to C2 Rule 3.1 (Trading Permits), if 
an applicant to become a C2 Permit Holder is already a Trading Permit 
Holder of the Chicago Board Options Exchange, Incorporated (``CBOE 
TPH''), that applicant can take advantage of a streamlined process to 
become a Permit Holder on C2 as compared to an applicant that is not 
already a CBOE TPH. Specifically, a CBOE TPH applicant would need to 
submit certain Exchange forms which indicate its intention to trade on 
the Exchange and which submits it to Exchange jurisdiction, as well as 
complete other operational matters as determined by the Exchange (e.g., 
complete connectivity testing).\3\ If an applicant is not already a 
CBOE Trading Permit Holder (a ``Non-CBOE TPH''), the applicant must 
complete a more involved application process which includes, among 
other things, the submission of an application to the Exchange and 
payment of any applicable application fees.\4\ Additionally, the 
Exchange will investigate each Non-CBOE TPH applicant (with the 
exception of any applicant that was a Permit Holder or that was 
investigated by the Exchange within 9 months prior to the date of 
receipt of that applicant's application). Upon completion of the 
application process for either a CBOE TPH or Non-CBOE TPH applicant, 
RSD determines whether to approve or disapprove the application. The 
Exchange notes however, that even if RSD determines to approve a CBOE 
or Non-CBOE TPH applicant to become a C2 Permit Holder upon completion 
of this process, that applicant is not automatically considered an 
``effective'' Permit Holder (i.e., the applicant is not yet permitted 
to participate on the Exchange in the capacity in which they applied 
and have been approved to act in). Rather, in order to be considered an 
effective Permit Holder, the applicant must satisfy applicable 
requirements to obtain a Trading Permit (i.e., submission of all 
required forms, fees and documentation prescribed by the Exchange, 
completion of any required investigation, satisfaction of applicable 
orientation and/or exam requirements established by the Exchange and 
any other registration and qualification requirements and completion of 
connectivity testing) and (ii) RSD must release a Trading Permit to 
that Permit Holder. In order to provide further transparency in the 
rules, the Exchange proposes to codify these requirements in the rules 
and make it explicitly clear that any applicant to become a C2 Permit 
Holder shall become an effective Permit Holder upon (i) satisfying the 
applicable requirements to obtain a Trading Permit and (ii) the release 
of a Trading Permit to that Permit Holder by RSD (i.e., RSD assigns via 
its Trading Permit System (``TPS'') a permit number to the applicant 
Permit Holder). The Exchange believes the proposed rule change will 
provide additional clarity to the rules and reduce confusion regarding 
the application process.
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    \3\ See C2 Rule 3.1(c)(1).
    \4\ See C2 Rule 3.1(c)(2).
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    The Exchange next notes that there are instances in which an 
applicant (either a CBOE TPH or Non-CBOE TPH) has completed the 
application process and RSD is ready to approve the application, but 
the applicant needs more time before it is ready to become effective 
(i.e., before it is ready to participate on the Exchange in the 
capacity in which they applied and have been approved to act in). For 
example, an applicant may have completed the application process but 
requires more time to resolve logistical issues relating to their 
systems or connectivity before it can participate on the Exchange and 
therefore wishes to hold off on requesting a Trading Permit. As such, 
the Exchange proposes to permit a Permit Holder to become effective as 
a Permit Holder within 90 days from the date RSD approved the applicant 
to become a C2 Permit Holder. If the Permit Holder does not become 
effective within 90 days, the applicant's application will expire. The 
Exchange notes that providing a deadline to become effective also 
obligates applicants to be diligent in resolving any open issues they 
have and ensures finality to the application process. Lastly, the 
Exchange notes that the requirement to go effective within 90 days of 
the date of approval of an application exists on other exchanges as 
well.\5\
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    \5\ See, CBOE Rule 3.10 and ISE Rule 306(g).
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\6\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \7\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitating 
transactions in securities, 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. Additionally, 
the Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \8\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ Id.
---------------------------------------------------------------------------

    In particular, the Exchange believes it would be beneficial to 
market participants to expressly state in the rules that any applicant 
to become a C2 Permit Holder shall become an effective Permit Holder 
upon (i) satisfying the applicable requirements to obtain a Trading 
Permit and (ii) the release of a Trading Permit to that Permit Holder 
by RSD. The Exchange believes the proposed rule change will provide 
additional clarity to the rules and reduce confusion regarding the 
application process, thereby removing impediments to and perfecting the 
mechanism of a free and open market and a national market system. The 
Exchange also believes the proposed rule change is beneficial in that 
it provides applicants seeking to become a Permit Holder a reasonable 
time frame to resolve any open issues prior to becoming effective, 
while also requiring applicants to be diligent in resolving such open 
issues in a timely matter and ensuring finality to the application 
process. Additionally, the Exchange believes that the proposed rule 
changes are designed to not permit unfair discrimination among market 
participants, as the proposed changes are applicable to all applicants 
to become Permit Holders.

B. Self-Regulatory Organization's Statement on Burden on Competition

    C2 does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed change does not 
impose any burden on intramarket competition because it applies to all 
applicants to become C2 Permit Holders. The Exchange also does not 
believe that the proposed rule change will impose any burden on 
intermarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. Specifically, the Exchange is 
merely attempting to

[[Page 27216]]

add additional transparency to its rules relating to the application 
process as well as provide for a reasonable time frame for C2 Permit 
Holder applicants to become effective on C2 as Permit Holders. The 
Exchange notes that, to the extent that the proposed changes make C2 
more attractive for trading, market participants trading on other 
exchanges are welcome to become Permit Holders and trade at C2 if they 
determine that this proposed rule change has made C2 more attractive or 
favorable.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange 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 \9\ and Rule 19b-
4(f)(6) \10\ thereunder. 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 will 
institute proceedings to determine whether the proposed rule change 
should be approved or disapproved.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
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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:

Electronic Comments

     Use the Commission's Internet comment form http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-C2-2015-011 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-C2-2015-011. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-C2-2015-011, and should be 
submitted on or before June 2, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-11379 Filed 5-11-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                  27214                          Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices

                                                  discriminatory, when vendors and                        and Exchange Commission, 100 F Street                  ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                  subscribers can elect these alternatives                NE., Washington, DC 20549–1090.                        notice is hereby given that on May 5,
                                                  or choose not to purchase a specific                    All submissions should refer to File                   2015, C2 Options Exchange,
                                                  proprietary data product if the attendant               Number SR–NYSEMKT–2015–35. This                        Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
                                                  fees are not justified by the returns that              file number should be included on the                  filed with the Securities and Exchange
                                                  any particular vendor or data recipient                 subject line if email is used. To help the             Commission (the ‘‘Commission’’) the
                                                  would achieve through the purchase                      Commission process and review your                     proposed rule change as described in
                                                  (the returns on use being a particularly                comments more efficiently, please use                  Items I and II below, which Items have
                                                  important aspect of non-display uses of                 only one method. The Commission will                   been prepared by the Exchange. The
                                                  proprietary data).                                      post all comments on the Commission’s                  Commission is publishing this notice to
                                                                                                          Internet Web site (http://www.sec.gov/                 solicit comments on the proposed rule
                                                  C. Self-Regulatory Organization’s
                                                                                                          rules/sro.shtml). Copies of the                        change from interested persons.
                                                  Statement on Comments on the
                                                  Proposed Rule Change Received From                      submission, all subsequent                             I. Self-Regulatory Organization’s
                                                  Members, Participants, or Others                        amendments, all written statements                     Statement of the Terms of Substance of
                                                                                                          with respect to the proposed rule                      the Proposed Rule Change
                                                    No written comments were solicited                    change that are filed with the
                                                  or received with respect to the proposed                Commission, and all written                              The Exchange proposes to adopt a
                                                  rule change.                                            communications relating to the                         rule relating to the effectiveness of a
                                                                                                          proposed rule change between the                       Permit Holder. The text of the proposed
                                                  III. Date of Effectiveness of the
                                                                                                          Commission and any person, other than                  rule change is available on the
                                                  Proposed Rule Change and Timing for
                                                                                                          those that may be withheld from the                    Exchange’s Web site (http://
                                                  Commission Action
                                                                                                          public in accordance with the                          www.cboe.com/AboutCBOE/
                                                     The foregoing rule change is effective               provisions of 5 U.S.C. 552, will be                    CBOELegalRegulatoryHome.aspx), at
                                                  upon filing pursuant to section                         available for Web site viewing and                     the Exchange’s Office of the Secretary,
                                                  19(b)(3)(A) 11 of the Act and                           printing in the Commission’s Public                    and at the Commission’s Public
                                                  subparagraph (f)(2) of Rule 19b–4 12                    Reference Room, 100 F Street NE.,                      Reference Room.
                                                  thereunder, because it establishes a due,               Washington, DC 20549 on official
                                                  fee, or other charge imposed by the                                                                            II. Self-Regulatory Organization’s
                                                                                                          business days between the hours of                     Statement of the Purpose of, and
                                                  Exchange.                                               10:00 a.m. and 3:00 p.m. Copies of the
                                                     At any time within 60 days of the                                                                           Statutory Basis for, the Proposed Rule
                                                                                                          filing will also be available for                      Change
                                                  filing of such proposed rule change, the                inspection and copying at the NYSE’s
                                                  Commission summarily may                                principal office and on its Internet Web                 In its filing with the Commission, the
                                                  temporarily suspend such rule change if                 site at www.nyse.com. All comments                     Exchange included statements
                                                  it appears to the Commission that such                  received will be posted without change;                concerning the purpose of and basis for
                                                  action is necessary or appropriate in the               the Commission does not edit personal                  the proposed rule change and discussed
                                                  public interest, for the protection of                  identifying information from                           any comments it received on the
                                                  investors, or otherwise in furtherance of               submissions. You should submit only                    proposed rule change. The text of these
                                                  the purposes of the Act. If the                         information that you wish to make                      statements may be examined at the
                                                  Commission takes such action, the                       available publicly. All submissions                    places specified in Item IV below. The
                                                  Commission shall institute proceedings                  should refer to File Number SR–                        Exchange has prepared summaries, set
                                                  under section 19(b)(2)(B) 13 of the Act to              NYSEMKT–2015–35 and should be                          forth in sections A, B, and C below, of
                                                  determine whether the proposed rule                     submitted on or before June 2, 2015.                   the most significant aspects of such
                                                  change should be approved or                                                                                   statements.
                                                  disapproved.                                              For the Commission, by the Division of
                                                                                                          Trading and Markets, pursuant to delegated             A. Self-Regulatory Organization’s
                                                  IV. Solicitation of Comments                            authority.14                                           Statement of the Purpose of, and
                                                    Interested persons are invited to                     Robert W. Errett,                                      Statutory Basis for, the Proposed Rule
                                                  submit written data, views, and                         Deputy Secretary.                                      Change
                                                  arguments concerning the foregoing,                     [FR Doc. 2015–11374 Filed 5–11–15; 8:45 am]            1. Purpose
                                                  including whether the proposed rule                     BILLING CODE 8011–01–P
                                                                                                                                                                    The Exchange proposes to adopt a
                                                  change is consistent with the Act.
                                                                                                                                                                 rule governing the effectiveness of
                                                  Comments may be submitted by any of
                                                                                                          SECURITIES AND EXCHANGE                                Permit Holder status. In particular, the
                                                  the following methods:
                                                                                                          COMMISSION                                             Exchange proposes to add language to
                                                  Electronic Comments                                                                                            its rules to codify the requirement that
                                                                                                          [Release No. 34–74888; File No. SR–C2–                 each applicant, to be a Permit Holder,
                                                    • Use the Commission’s Internet                       2015–011]
                                                  comment form (http://www.sec.gov/                                                                              must become effective in that status
                                                  rules/sro.shtml); or                                    Self-Regulatory Organizations; C2                      within 90 days of the date of the
                                                    • Send an email to rule-comments@                     Options Exchange, Incorporated;                        applicant’s approval. The Exchange also
                                                  sec.gov. Please include File Number SR–                 Notice of Filing and Immediate                         proposes to clarify that a Permit Holder
                                                  NYSEMKT–2015–35 on the subject line.                    Effectiveness of a Proposed Rule                       shall become effective upon (i)
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                                                                                                          Change Relating to the Effectiveness                   satisfying applicable requirements to
                                                  Paper Comments                                                                                                 obtain a Trading Permit and (ii) the
                                                                                                          of a Permit Holder
                                                    • Send paper comments in triplicate                                                                          release of a Trading Permit to that
                                                  to Brent J. Fields, Secretary, Securities               May 6, 2015.                                           Permit Holder by the Registration
                                                                                                            Pursuant to Section 19(b)(1) of the                  Services Department (‘‘RSD’’).
                                                    11 15 U.S.C. 78s(b)(3)(A).                            Securities Exchange Act of 1934 (the
                                                    12 17 CFR 240.19b–4(f)(2).                                                                                     1 15   U.S.C. 78s(b)(1).
                                                    13 15 U.S.C. 78s(b)(2)(B).                              14 17   CFR 200.30–3(a)(12).                           2 17   CFR 240.19b–4.



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                                                                                 Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices                                             27215

                                                     By way of background, pursuant to C2                 the rules and make it explicitly clear                principles of trade, to foster cooperation
                                                  Rule 3.1 (Trading Permits), if an                       that any applicant to become a C2                     and coordination with persons engaged
                                                  applicant to become a C2 Permit Holder                  Permit Holder shall become an effective               in regulating, clearing, settling,
                                                  is already a Trading Permit Holder of                   Permit Holder upon (i) satisfying the                 processing information with respect to,
                                                  the Chicago Board Options Exchange,                     applicable requirements to obtain a                   and facilitating transactions in
                                                  Incorporated (‘‘CBOE TPH’’), that                       Trading Permit and (ii) the release of a              securities, to remove impediments to
                                                  applicant can take advantage of a                       Trading Permit to that Permit Holder by               and perfect the mechanism of a free and
                                                  streamlined process to become a Permit                  RSD (i.e., RSD assigns via its Trading                open market and a national market
                                                  Holder on C2 as compared to an                          Permit System (‘‘TPS’’) a permit number               system, and, in general, to protect
                                                  applicant that is not already a CBOE                    to the applicant Permit Holder). The                  investors and the public interest.
                                                  TPH. Specifically, a CBOE TPH                           Exchange believes the proposed rule                   Additionally, the Exchange believes the
                                                  applicant would need to submit certain                  change will provide additional clarity to             proposed rule change is consistent with
                                                  Exchange forms which indicate its                       the rules and reduce confusion                        the Section 6(b)(5) 8 requirement that
                                                  intention to trade on the Exchange and                  regarding the application process.                    the rules of an exchange not be designed
                                                  which submits it to Exchange                               The Exchange next notes that there                 to permit unfair discrimination between
                                                  jurisdiction, as well as complete other                 are instances in which an applicant                   customers, issuers, brokers, or dealers.
                                                  operational matters as determined by                    (either a CBOE TPH or Non-CBOE TPH)                     In particular, the Exchange believes it
                                                  the Exchange (e.g., complete                            has completed the application process                 would be beneficial to market
                                                  connectivity testing).3 If an applicant is              and RSD is ready to approve the                       participants to expressly state in the
                                                  not already a CBOE Trading Permit                       application, but the applicant needs                  rules that any applicant to become a C2
                                                  Holder (a ‘‘Non-CBOE TPH’’), the                        more time before it is ready to become                Permit Holder shall become an effective
                                                  applicant must complete a more                          effective (i.e., before it is ready to                Permit Holder upon (i) satisfying the
                                                  involved application process which                      participate on the Exchange in the                    applicable requirements to obtain a
                                                  includes, among other things, the                       capacity in which they applied and                    Trading Permit and (ii) the release of a
                                                  submission of an application to the                     have been approved to act in). For                    Trading Permit to that Permit Holder by
                                                  Exchange and payment of any                             example, an applicant may have                        RSD. The Exchange believes the
                                                  applicable application fees.4                           completed the application process but                 proposed rule change will provide
                                                  Additionally, the Exchange will                         requires more time to resolve logistical              additional clarity to the rules and
                                                  investigate each Non-CBOE TPH                           issues relating to their systems or                   reduce confusion regarding the
                                                  applicant (with the exception of any                    connectivity before it can participate on             application process, thereby removing
                                                  applicant that was a Permit Holder or                   the Exchange and therefore wishes to                  impediments to and perfecting the
                                                  that was investigated by the Exchange                   hold off on requesting a Trading Permit.              mechanism of a free and open market
                                                  within 9 months prior to the date of                    As such, the Exchange proposes to                     and a national market system. The
                                                  receipt of that applicant’s application).               permit a Permit Holder to become                      Exchange also believes the proposed
                                                  Upon completion of the application                      effective as a Permit Holder within 90                rule change is beneficial in that it
                                                  process for either a CBOE TPH or Non-                   days from the date RSD approved the                   provides applicants seeking to become a
                                                  CBOE TPH applicant, RSD determines                      applicant to become a C2 Permit Holder.               Permit Holder a reasonable time frame
                                                  whether to approve or disapprove the                    If the Permit Holder does not become                  to resolve any open issues prior to
                                                  application. The Exchange notes                         effective within 90 days, the applicant’s             becoming effective, while also requiring
                                                  however, that even if RSD determines to                 application will expire. The Exchange                 applicants to be diligent in resolving
                                                  approve a CBOE or Non-CBOE TPH                          notes that providing a deadline to                    such open issues in a timely matter and
                                                  applicant to become a C2 Permit Holder                  become effective also obligates                       ensuring finality to the application
                                                  upon completion of this process, that                   applicants to be diligent in resolving                process. Additionally, the Exchange
                                                  applicant is not automatically                          any open issues they have and ensures                 believes that the proposed rule changes
                                                  considered an ‘‘effective’’ Permit Holder               finality to the application process.                  are designed to not permit unfair
                                                  (i.e., the applicant is not yet permitted               Lastly, the Exchange notes that the                   discrimination among market
                                                  to participate on the Exchange in the                   requirement to go effective within 90                 participants, as the proposed changes
                                                  capacity in which they applied and                      days of the date of approval of an                    are applicable to all applicants to
                                                  have been approved to act in). Rather,                  application exists on other exchanges as              become Permit Holders.
                                                  in order to be considered an effective                  well.5                                                B. Self-Regulatory Organization’s
                                                  Permit Holder, the applicant must                                                                             Statement on Burden on Competition
                                                  satisfy applicable requirements to obtain               2. Statutory Basis
                                                  a Trading Permit (i.e., submission of all                  The Exchange believes the proposed                   C2 does not believe that the proposed
                                                  required forms, fees and documentation                  rule change is consistent with the                    rule change will impose any burden on
                                                  prescribed by the Exchange, completion                  Securities Exchange Act of 1934 (the                  competition that is not necessary or
                                                  of any required investigation,                          ‘‘Act’’) and the rules and regulations                appropriate in furtherance of the
                                                  satisfaction of applicable orientation                  thereunder applicable to the Exchange                 purposes of the Act. The proposed
                                                  and/or exam requirements established                    and, in particular, the requirements of               change does not impose any burden on
                                                  by the Exchange and any other                           Section 6(b) of the Act.6 Specifically,               intramarket competition because it
                                                  registration and qualification                          the Exchange believes the proposed rule               applies to all applicants to become C2
                                                  requirements and completion of                          change is consistent with the Section                 Permit Holders. The Exchange also does
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                                                  connectivity testing) and (ii) RSD must                 6(b)(5) 7 requirements that the rules of              not believe that the proposed rule
                                                  release a Trading Permit to that Permit                 an exchange be designed to prevent                    change will impose any burden on
                                                  Holder. In order to provide further                     fraudulent and manipulative acts and                  intermarket competition that is not
                                                  transparency in the rules, the Exchange                 practices, to promote just and equitable              necessary or appropriate in furtherance
                                                  proposes to codify these requirements in                                                                      of the purposes of the Act. Specifically,
                                                                                                           5 See,CBOE Rule 3.10 and ISE Rule 306(g).            the Exchange is merely attempting to
                                                    3 See C2 Rule 3.1(c)(1).                               6 15 U.S.C. 78f(b).
                                                    4 See C2 Rule 3.1(c)(2).                               7 15 U.S.C. 78f(b)(5).                                 8 Id.




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                                                  27216                           Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Notices

                                                  add additional transparency to its rules                Electronic Comments                                    SECURITIES AND EXCHANGE
                                                  relating to the application process as                                                                         COMMISSION
                                                  well as provide for a reasonable time                     • Use the Commission’s Internet
                                                                                                          comment form http://www.sec.gov/                       [Release No. 34–74881; File No. SR–
                                                  frame for C2 Permit Holder applicants to                                                                       NASDAQ–2015–024]
                                                  become effective on C2 as Permit                        rules/sro.shtml); or
                                                  Holders. The Exchange notes that, to the                  • Send an email to rule-comments@                    Self-Regulatory Organizations; The
                                                  extent that the proposed changes make                   sec.gov. Please include File Number SR–                NASDAQ Stock Market, LLC; Notice of
                                                  C2 more attractive for trading, market                  C2–2015–011 on the subject line.                       Designation of Longer Period for
                                                  participants trading on other exchanges                                                                        Commission Action on Proposed Rule
                                                  are welcome to become Permit Holders                    Paper Comments
                                                                                                                                                                 Change To Amend and Restate Certain
                                                  and trade at C2 if they determine that                    • Send paper comments in triplicate                  Nasdaq Rules That Govern the Nasdaq
                                                  this proposed rule change has made C2                   to Brent J. Fields, Secretary, Securities              Market Center
                                                  more attractive or favorable.                           and Exchange Commission, 100 F Street                  May 6, 2015.
                                                  C. Self-Regulatory Organization’s                       NE., Washington, DC 20549–1090.                           On March 16, 2015, The NASDAQ
                                                  Statement on Comments on the                            All submissions should refer to File                   Stock Market LLC (‘‘NASDAQ’’ or the
                                                  Proposed Rule Change Received From                      Number SR–C2–2015–011. This file                       ‘‘Exchange’’) filed with the Securities
                                                  Members, Participants, or Others                        number should be included on the                       and Exchange Commission
                                                                                                          subject line if email is used. To help the             (‘‘Commission’’), pursuant to Section
                                                    The Exchange neither solicited nor                                                                           19(b)(1) of the Securities Exchange Act
                                                  received comments on the proposed                       Commission process and review your
                                                                                                          comments more efficiently, please use                  of 1934 (‘‘Act’’) 1 and Rule 19b–4
                                                  rule change.                                                                                                   thereunder,2 a proposed rule change to
                                                                                                          only one method. The Commission will
                                                  III. Date of Effectiveness of the                                                                              amend and restate certain Nasdaq rules
                                                                                                          post all comments on the Commission’s
                                                  Proposed Rule Change and Timing for                                                                            that govern the Nasdaq Market Center in
                                                                                                          Internet Web site (http://www.sec.gov/                 order to provide a clearer and more
                                                  Commission Action                                       rules/sro.shtml). Copies of the                        detailed description of certain aspects of
                                                     Because the foregoing proposed rule                  submission, all subsequent                             its functionality. The proposed rule
                                                  change does not: (i) Significantly affect               amendments, all written statements                     change was published for comment in
                                                  the protection of investors or the public               with respect to the proposed rule                      the Federal Register on March 26,
                                                  interest; (ii) impose any significant                   change that are filed with the                         2015.3 The Commission received no
                                                  burden on competition; and (iii) become                 Commission, and all written                            comment letters regarding the proposed
                                                  operative for 30 days from the date on                  communications relating to the                         rule change.
                                                  which it was filed, or such shorter time                proposed rule change between the                          Section 19(b)(2) of the Act 4 provides
                                                  as the Commission may designate, it has                 Commission and any person, other than                  that within 45 days of the publication of
                                                  become effective pursuant to Section                    those that may be withheld from the                    notice of the filing of a proposed rule
                                                  19(b)(3)(A) of the Act 9 and Rule 19b–                  public in accordance with the                          change, or within such longer period up
                                                  4(f)(6) 10 thereunder. At any time within               provisions of 5 U.S.C. 552, will be                    to 90 days as the Commission may
                                                  60 days of the filing of the proposed rule              available for Web site viewing and                     designate if it finds such longer period
                                                  change, the Commission summarily may                    printing in the Commission’s Public                    to be appropriate and publishes its
                                                  temporarily suspend such rule change if                 Reference Room, 100 F Street NE.,                      reasons for so finding or as to which the
                                                  it appears to the Commission that such                  Washington, DC 20549 on official                       self-regulatory organization consents,
                                                  action is necessary or appropriate in the               business days between the hours of                     the Commission shall either approve the
                                                  public interest, for the protection of                  10:00 a.m. and 3:00 p.m. Copies of such                proposed rule change, disapprove the
                                                  investors, or otherwise in furtherance of               filing also will be available for                      proposed rule change, or institute
                                                  the purposes of the Act. If the                         inspection and copying at the principal                proceedings to determine whether the
                                                  Commission takes such action, the                       office of the Exchange. All comments                   proposed rule change should be
                                                  Commission will institute proceedings                                                                          disapproved. The 45th day for this filing
                                                                                                          received will be posted without change;
                                                  to determine whether the proposed rule                                                                         is May 10, 2015.
                                                                                                          the Commission does not edit personal
                                                  change should be approved or                                                                                      The Commission is extending the 45-
                                                                                                          identifying information from                           day time period for Commission action
                                                  disapproved.                                            submissions. You should submit only                    on the proposed rule change. The
                                                  IV. Solicitation of Comments                            information that you wish to make                      Commission finds that it is appropriate
                                                                                                          available publicly. All submissions                    to designate a longer period within
                                                    Interested persons are invited to                     should refer to File Number SR–C2–                     which to take action on the proposed
                                                  submit written data, views, and                         2015–011, and should be submitted on                   rule change so that it has sufficient time
                                                  arguments concerning the foregoing,                     or before June 2, 2015.                                to consider the proposed rule change.
                                                  including whether the proposed rule                                                                               Accordingly, pursuant to Section
                                                                                                            For the Commission, by the Division of
                                                  change is consistent with the Act.                      Trading and Markets, pursuant to delegated             19(b)(2) of the Act 5 and for the reasons
                                                  Comments may be submitted by any of                     authority.11                                           stated above, the Commission
                                                  the following methods:                                                                                         designates June 24, 2015, as the date by
                                                                                                          Robert W. Errett,
                                                                                                                                                                 which the Commission should either
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                    9 15  U.S.C. 78s(b)(3)(A).                            Deputy Secretary.
                                                                                                                                                                 approve or disapprove, or institute
                                                    10 17  CFR 240.19b–4(f)(6). As required under Rule    [FR Doc. 2015–11379 Filed 5–11–15; 8:45 am]
                                                  19b–4(f)(6)(iii), the Exchange provided the             BILLING CODE 8011–01–P                                   1 15 U.S.C. 78s(b)(1).
                                                  Commission with written notice of its intent to file                                                             2 17
                                                  the proposed rule change, along with a brief                                                                          CFR 240.19b–4.
                                                                                                                                                                   3 See Securities Exchange Act Release No. 74558
                                                  description and the text of the proposed rule
                                                  change, at least five business days prior to the date                                                          (March 20, 2015), 80 FR 16050 (‘‘Notice’’).
                                                                                                                                                                   4 15 U.S.C. 78s(b)(2).
                                                  of filing of the proposed rule change, or such
                                                  shorter time as designated by the Commission.             11 17   CFR 200.30–3(a)(12).                           5 15 U.S.C. 78s(b)(2).




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Document Created: 2015-12-16 07:55:47
Document Modified: 2015-12-16 07:55:47
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 27214 

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