80 FR 37335 - Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amending Rule 6.4 To Extend the Penny Pilot through June 30, 2016
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 125 (June 30, 2015)
Federal Register Volume 80, Issue 125 (June 30, 2015)
| Page Range | 37335-37337 | |
| FR Document | 2015-15976 |
[Federal Register Volume 80, Number 125 (Tuesday, June 30, 2015)] [Notices] [Pages 37335-37337] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-15976] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75278; File No. SR-C2-2015-015] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amending Rule 6.4 To Extend the Penny Pilot through June 30, 2016 June 24, 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 June 17, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Penny Pilot Program (the ``Pilot Program'') is scheduled to expire on June 30, 2015. C2 proposes to extend the Pilot Program until June 30, 2016. C2 believes that extending the Pilot Program will allow for further analysis of the Pilot Program and a determination of how the Pilot Program should be structured in the future. During this extension of the Pilot Program, C2 proposes that it may replace any option class that is currently included in the Pilot Program and that has been delisted with the next most actively traded, multiply listed option class that is not yet participating in the Pilot Program (``replacement class''). Any replacement class would be determined based on national average daily volume in the preceding six months,\3\ and would be added on the second trading day following July 1, 2015 and January 1, 2016. C2 will announce to its Trading Permit Holders by circular any replacement classes in the Pilot Program. The Exchange notes that it intends to utilize the same parameters to prospective replacement classes as was originally approved. --------------------------------------------------------------------------- \3\ The month immediately preceding a replacement class's addition to the Pilot Program (i.e., June) would not be used for purposes of the six-month analysis. Thus, a replacement class to be added on the second trading day following July 1, 2015 would be identified based on The Option Clearing Corporation's trading volume data from December 1, 2014 through May 31, 2015. --------------------------------------------------------------------------- C2 is specifically authorized to act jointly with the other options exchanges participating in the Pilot Program in identifying any replacement class. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the [[Page 37336]] ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\4\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \5\ 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 facilitation 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) \6\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. In particular, the proposed rule change allows for an extension of the Pilot Program for the benefit of market participants. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). \6\ Id. --------------------------------------------------------------------------- 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. Specifically, the Exchange believes that, by extending the expiration of the Pilot Program, the proposed rule change will allow for further analysis of the Pilot Program and a determination of how the Program shall be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. In addition, the Exchange has been authorized to act jointly in extending the Pilot Program and believes the other exchanges will be filing similar extensions. 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\ Because the 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A)(iii). \8\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally does not become operative prior to 30 days after the date of the filing.\10\ However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because doing so will allow the Pilot Program to continue without interruption in a manner that is consistent with the Commission's prior approval of the extension and expansion of the Pilot Program and will allow the Exchange and the Commission additional time to analyze the impact of the Pilot Program.\12\ Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.\13\ --------------------------------------------------------------------------- \9\ 17 CFR 240.19b-4(f)(6). \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's 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. The Exchange has satisfied this pre-filing requirement. \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ See Securities Exchange Act Release No. 61061 (November 24, 2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44). \13\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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 CommentsUse 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-C2-2015-015 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-C2-2015-015. 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 20549-1090 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be available for inspection and copying at the principal [[Page 37337]] 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-C2-2015-015 and should be submitted on or before July 21, 2015. --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ Robert W. Errett, Deputy Secretary. [FR Doc. 2015-15976 Filed 6-29-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices 37335
rule change as operative upon filing Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s
with the Commission.12 Washington, DC 20549–1090 on official Statement of the Purpose of, and
At any time within 60 days of the business days between the hours of Statutory Basis for, the Proposed Rule
filing of such proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the Change
Commission summarily may filing will also be available for In its filing with the Commission, the
temporarily suspend such rule change if inspection and copying at the principal Exchange included statements
it appears to the Commission that such office of the Exchange. All comments concerning the purpose of and basis for
action is necessary or appropriate in the received will be posted without change; the proposed rule change and discussed
public interest, for the protection of the Commission does not edit personal
investors, or otherwise in furtherance of any comments it received on the
identifying information from proposed rule change. The text of these
the purposes of the Act. If the submissions. You should submit only
Commission takes such action, the statements may be examined at the
information that you wish to make places specified in Item IV below. The
Commission shall institute proceedings available publicly. All submissions
under section 19(b)(2)(B) 13 of the Act to Exchange has prepared summaries, set
should refer to File Number SR–Phlx– forth in sections A, B, and C below, of
determine whether the proposed rule 2015–54 and should be submitted on or
change should be approved or the most significant aspects of such
before July 21, 2015. statements.
disapproved.
For the Commission, by the Division of
IV. Solicitation of Comments Trading and Markets, pursuant to delegated A. Self-Regulatory Organization’s
authority.14 Statement of the Purpose of, and the
Interested persons are invited to Statutory Basis for, the Proposed Rule
submit written data, views, and Robert W. Errett,
Deputy Secretary.
Change
arguments concerning the foregoing,
including whether the proposed rule [FR Doc. 2015–15982 Filed 6–29–15; 8:45 am] 1. Purpose
change is consistent with the Act. BILLING CODE 8011–01–P The Penny Pilot Program (the ‘‘Pilot
Comments may be submitted by any of Program’’) is scheduled to expire on
the following methods: June 30, 2015. C2 proposes to extend the
SECURITIES AND EXCHANGE
Electronic Comments Pilot Program until June 30, 2016. C2
COMMISSION
believes that extending the Pilot
• Use the Commission’s Internet
[Release No. 34–75278; File No. SR–C2– Program will allow for further analysis
comment form (http://www.sec.gov/
2015–015] of the Pilot Program and a
rules/sro.shtml); or
• Send an email to rule-comments@ determination of how the Pilot Program
Self-Regulatory Organizations; C2 should be structured in the future.
sec.gov. Please include File Number SR–
Options Exchange, Incorporated; During this extension of the Pilot
Phlx–2015–54 on the subject line.
Notice of Filing and Immediate Program, C2 proposes that it may
Paper Comments Effectiveness of a Proposed Rule replace any option class that is currently
• Send paper comments in triplicate Change Relating to Amending Rule 6.4 included in the Pilot Program and that
to Secretary, Securities and Exchange To Extend the Penny Pilot through has been delisted with the next most
Commission, 100 F Street NE., June 30, 2016 actively traded, multiply listed option
Washington, DC 20549–1090. class that is not yet participating in the
June 24, 2015.
All submissions should refer to File Pilot Program (‘‘replacement class’’).
Pursuant to Section 19(b)(1) of the Any replacement class would be
Number SR-Phlx-2015–54. This file Securities Exchange Act of 1934 (the
number should be included on the determined based on national average
‘‘Act’’) 1 and Rule 19b–4 thereunder,2 daily volume in the preceding six
subject line if email is used. To help the notice is hereby given that on June 17,
Commission process and review your months,3 and would be added on the
2015, C2 Options Exchange, second trading day following July 1,
comments more efficiently, please use Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
only one method. The Commission will 2015 and January 1, 2016. C2 will
filed with the Securities and Exchange announce to its Trading Permit Holders
post all comments on the Commission’s Commission (the ‘‘Commission’’) the
Internet Web site (http://www.sec.gov/ by circular any replacement classes in
proposed rule change as described in the Pilot Program. The Exchange notes
rules/sro.shtml). Copies of the Items I and II below, which Items have
submission, all subsequent that it intends to utilize the same
been prepared by the Exchange. The parameters to prospective replacement
amendments, all written statements Commission is publishing this notice to
with respect to the proposed rule classes as was originally approved.
solicit comments on the proposed rule C2 is specifically authorized to act
change that are filed with the change from interested persons.
Commission, and all written jointly with the other options exchanges
communications relating to the I. Self-Regulatory Organization’s participating in the Pilot Program in
proposed rule change between the Statement of the Terms of Substance of identifying any replacement class.
Commission and any person, other than the Proposed Rule Change 2. Statutory Basis
those that may be withheld from the The text of the proposed rule change
public in accordance with the The Exchange believes the proposed
is available on the Exchange’s Web site rule change is consistent with the
provisions of 5 U.S.C. 552, will be
asabaliauskas on DSK5VPTVN1PROD with NOTICES
(http://www.cboe.com/AboutCBOE/ Securities Exchange Act of 1934 (the
available for Web site viewing and CBOELegalRegulatoryHome.aspx), at
printing in the Commission’s Public the Exchange’s Office of the Secretary, 3 The month immediately preceding a
and at the Commission’s Public replacement class’s addition to the Pilot Program
12 For purposes only of waiving the operative
Reference Room. (i.e., June) would not be used for purposes of the
delay for this proposal, the Commission has six-month analysis. Thus, a replacement class to be
considered the proposed rule’s impact on added on the second trading day following July 1,
14 17 CFR 200.30–3(a)(12).
efficiency, competition, and capital formation. See 2015 would be identified based on The Option
15 U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1). Clearing Corporation’s trading volume data from
13 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4. December 1, 2014 through May 31, 2015.
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![Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices 37337
office of the Exchange. All comments II. Self-Regulatory Organization’s 2. Statutory Basis
received will be posted without change; Statement of the Purpose of, and
the Commission does not edit personal Statutory Basis for, the Proposed Rule The Exchange believes the proposed
identifying information from Change rule change is consistent with the
submissions. You should submit only Securities Exchange Act of 1934 (the
In its filing with the Commission, the
information that you wish to make Exchange included statements ‘‘Act’’) and the rules and regulations
available publicly. All submissions concerning the purpose of and basis for thereunder applicable to the Exchange
should refer to File Number SR–C2– the proposed rule change and discussed and, in particular, the requirements of
2015–015 and should be submitted on any comments it received on the Section 6(b) of the Act.7 Specifically,
or before July 21,2015. proposed rule change. The text of these the Exchange believes the proposed rule
For the Commission, by the Division of statements may be examined at the change is consistent with the Section
Trading and Markets, pursuant to delegated places specified in Item IV below. The 6(b)(5) 8 requirements that the rules of
authority.15 Exchange has prepared summaries, set an exchange be designed to prevent
Robert W. Errett, forth in sections A, B, and C below, of fraudulent and manipulative acts and
Deputy Secretary. the most significant aspects of such practices, to promote just and equitable
[FR Doc. 2015–15976 Filed 6–29–15; 8:45 am] statements. principles of trade, to foster cooperation
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s and coordination with persons engaged
Statement of the Purpose of, and the in regulating, clearing, settling,
Statutory Basis for, the Proposed Rule processing information with respect to,
SECURITIES AND EXCHANGE and facilitation transactions in
Change
COMMISSION securities, to remove impediments to
1. Purpose and perfect the mechanism of a free and
[Release No. 34–75287; File No. SR–CBOE–
2015–060] The Penny Pilot Program (the ‘‘Pilot open market and a national market
Program’’) is scheduled to expire on system, and, in general, to protect
Self-Regulatory Organizations; June 30, 2015. CBOE proposes to extend investors and the public interest.
Chicago Board Options Exchange, the Pilot Program until June 30, 2016. Additionally, the Exchange believes the
Incorporated; Notice of Filing and CBOE believes that extending the Pilot proposed rule change is consistent with
Immediate Effectiveness of a Proposed Program will allow for further analysis the Section 6(b)(5) 9 requirement that
Rule Change Relating To Amending of the Pilot Program and a the rules of an exchange not be designed
Rule 6.42 To Extend Its Penny Pilot determination of how the Pilot Program
Until June 30, 2016 to permit unfair discrimination between
should be structured in the future.
During this extension of the Pilot customers, issuers, brokers, or dealers.
June 24, 2015.
Program, CBOE proposes that it may In particular, the proposed rule change
Pursuant to Section 19(b)(1) of the replace any option class that is currently allows for an extension of the Pilot
Securities Exchange Act of 1934 (the included in the Pilot Program and that Program for the benefit of market
‘‘Act’’) 1 and Rule 19b–4 thereunder,2 has been delisted with the next most participants.
notice is hereby given that on June 17, actively traded, multiply listed option
2015, Chicago Board Options Exchange, B. Self-Regulatory Organization’s
class that is not yet participating in the Statement on Burden on Competition
Incorporated (the ‘‘Exchange’’ or Pilot Program (‘‘replacement class’’).
‘‘CBOE’’) filed with the Securities and Any replacement class would be CBOE does not believe that the
Exchange Commission (the determined based on national average proposed rule change will impose any
‘‘Commission’’) the proposed rule daily volume in the preceding six
change as described in Items I and II burden on competition that is not
months,5 and would be added on the necessary or appropriate in furtherance
below, which Items have been prepared second trading day following July 1,
by the Exchange. The Exchange filed the of the purposes of the Act. Specifically,
2015 and January 1, 2016. CBOE will the Exchange believes that, by extending
proposal as a ‘‘non-controversial’’ employ the same parameters to
proposed rule change pursuant to the expiration of the Pilot Program, the
prospective replacement classes as proposed rule change will allow for
Section 19(b)(3)(A)(iii) of the Act 3 and approved and applicable in determining
Rule 19b–4(f)(6) thereunder.4 The further analysis of the Pilot Program and
the existing classes in the Pilot Program,
Commission is publishing this notice to a determination of how the Program
including excluding high-priced
solicit comments on the proposed rule shall be structured in the future. In
underlying securities.6 CBOE will
change from interested persons. announce to its Trading Permit Holders doing so, the proposed rule change will
by circular any replacement classes in also serve to promote regulatory clarity
I. Self-Regulatory Organization’s
the Pilot Program. and consistency, thereby reducing
Statement of the Terms of Substance of
the Proposed Rule Change CBOE is specifically authorized to act burdens on the marketplace and
jointly with the other options exchanges facilitating investor protection. In
The text of the proposed rule change addition, the Exchange has been
participating in the Pilot Program in
is available on the Exchange’s Web site authorized to act jointly in extending
identifying any replacement class.
(http://www.cboe.com/AboutCBOE/ the Pilot Program and believes the other
CBOELegalRegulatoryHome.aspx), at 5 The month immediately preceding a exchanges will be filing similar
asabaliauskas on DSK5VPTVN1PROD with NOTICES
the Exchange’s Office of the Secretary, replacement class’s addition to the Pilot Program extensions.
and at the Commission’s Public (i.e., June) would not be used for purposes of the
Reference Room. six-month analysis. Thus, a replacement class to be
added on the second trading day following July 1,
15 17
2015 would be identified based on The Option
CFR 200.30–3(a)(12). Clearing Corporation’s trading volume data from
1 15 U.S.C. 78s(b)(1). December 1, 2014 through May 31, 2015.
2 17 CFR 240.19b–4. 7 15 U.S.C. 78f(b).
6 See Securities Exchange Act Release No. 60864
3 15 U.S.C. 78s(b)(3)(A)(iii). 8 15 U.S.C. 78f(b)(5).
(October 22, 2009), 74 FR 55876 (October 29, 2009)
4 17 CFR 240.19b–4(f)(6). (SR–CBOE–2009–76). 9 Id.
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Document Created: 2018-02-22 11:17:12
Document Modified: 2018-02-22 11:17:12
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 37335 |
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