80 FR 45006 - Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules Related to Obvious Errors
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 144 (July 28, 2015)
Federal Register Volume 80, Issue 144 (July 28, 2015)
| Page Range | 45006-45008 | |
| FR Document | 2015-18538 |
[Federal Register Volume 80, Number 144 (Tuesday, July 28, 2015)] [Notices] [Pages 45006-45008] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-18538] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75513; File No. SR-C2-2015-018] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules Related to Obvious Errors July 23, 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 July 15, 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 Exchange seeks to amend its rules related to obvious errors. The text of the proposed rule change is provided below. (additions are italicized; deletions are [bracketed]) * * * * * C2 Options Exchange, Incorporated Rules * * * * * Rule 6.15 Nullification and Adjustment of Options Transactions Including Obvious Errors * * * * * .06 Verifiable Disruptions or Malfunctions of Exchange Systems: Electronic transactions arising out of a ``verifiable disruption or malfunction'' in the use or operation of any Exchange automated quotation, dissemination, execution, or communication system will either be nullified or adjusted by an Official. Transactions that qualify for price adjustment will be adjusted to Theoretical Price, as defined in paragraph (b) above. * * * * * The text of the proposed rule change is also available on the Exchange's Web [[Page 45007]] 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 is seeking to amend its rules related to obvious errors. Specifically, the Exchange is seeking to add Interpretation and Policy .06 to provide the Exchange the ability to nullify or adjust transactions arising out of a verifiable disruption or malfunction of Exchange systems. Similar to Chicago Board Options Exchange, Inc. (``CBOE'') Rule 6.25.05, the proposed rule would allow an Exchange Official to nullify or adjust a transaction that arises out of a verifiable disruption or malfunction in the use or operation of any Exchange automated quotation, dissemination, execution, or communication system.\3\ For example, if a malfunctioning exchange system caused orders to be generated and executed without instructions from a Trading Permit Holder, the proposed rule would allow the Exchange to nullify the transactions. Transactions that qualify for price adjustment will be adjusted to Theoretical Price, as defined in paragraph (b) of Rule 6.15. --------------------------------------------------------------------------- \3\ The proposed rule removes reference to open outcry as C2 is an all-electronic exchange. --------------------------------------------------------------------------- The Exchange believes that it is appropriate to provide the flexibility and authority provided for in the proposed rule so as not to limit the Exchange's ability to plan for and respond to unforeseen systems problems or malfunctions. The proposed rule change would provide the Exchange with the same authority that other Exchanges have to nullify or adjust trades in the event of a ``verifiable disruption or malfunction'' in the use or operation of its systems.\4\ For this reason, the Exchange believes that, in the interest of maintaining a fair and orderly market and for the protection of investors, authority to nullify or adjust trades in these circumstances, consistent with the authority on other exchanges, is warranted. --------------------------------------------------------------------------- \4\ See CBOE Rule 6.25.05, NASDAQ OMX PHLX, LLC (``Phlx'') Rule 1092(k) and NYSE Arca, Inc. (``Arca'') Rule 6.89. --------------------------------------------------------------------------- 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.\5\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \6\ 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) \7\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ Id. --------------------------------------------------------------------------- In particular, the Exchange believes that the proposed rule change would remove impediments to and perfect the mechanism of a free and open market and national market system and promote a fair and orderly market because it would provide authority for the Exchange to nullify or adjust trades that may have resulted from a verifiable systems disruption or malfunction. The Exchange believes that it is appropriate to provide the flexibility and authority provided for in the proposed rule so as not to limit the Exchange's ability to plan for and respond to unforeseen systems problems or malfunctions that may result in harm to the public. Allowing for the nullification or modification of transactions that result from verifiable disruptions and/or malfunctions of Exchanges systems will offer market participants on C2 a level of relief presently not available. The Exchange notes that the proposed rule change is based on CBOE rules and is substantially similar to rules of Phlx, and Arca. 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. Rather, the Exchange believes that the proposed rule change is pro-competitive because it will align the Exchange's rules with the rules of other markets, including CBOE, Arca, and Phlx. By adopting the proposed rule, the Exchange will be in a position to treat transactions that are a result of a verifiable systems issue or malfunction in a manner similar to other exchanges. 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: A. Significantly affect the protection of investors or the public interest; B. impose any significant burden on competition; and C. 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 \8\ and Rule 19b-4(f)(6) \9\ 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the Commission 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. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- [[Page 45008]] 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-C2-2015-018 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-C2-2015-018. 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-C2-2015-018, and should be submitted on or before August 18, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-18538 Filed 7-27-15; 8:45 am] BILLING CODE P
![45006 Federal Register / Vol. 80, No. 144 / Tuesday, July 28, 2015 / Notices
licensees pursuant to title 10 of the comments electronically should contact By the Commission.
Code of Federal Regulations part the person identified in the FOR FURTHER Ruth Ann Abrams,
50.54(f). The information requested INFORMATION CONTACT section by Acting Secretary.
includes seismic and flooding hazard telephone for advice on filing [FR Doc. 2015–18426 Filed 7–27–15; 8:45 am]
reevaluations to determine if further alternatives. BILLING CODE 7710–FW–P
regulatory action is necessary, FOR FURTHER INFORMATION CONTACT:
walkdowns to confirm compliance with David A. Trissell, General Counsel, at
the current licensing basis and provide 202–789–6820. SECURITIES AND EXCHANGE
input to the hazard reevaluations, and COMMISSION
SUPPLEMENTARY INFORMATION:
analysis of the Emergency Preparedness
capability with respect to staffing and Table of Contents [Release No. 34–75513; File No. SR–C2–
communication ability during a 2015–018]
I. Introduction
prolonged multiunit event. The NRC II. Notice of Commission Action Self-Regulatory Organizations; C2
will use the information provided by III. Ordering Paragraphs Options Exchange, Incorporated;
licensees to determine if additional
I. Introduction Notice of Filing and Immediate
regulatory action is necessary.
Effectiveness of a Proposed Rule
III. Specific Requests for Comments On July 20, 2015, the Postal Service Change To Amend Exchange Rules
filed notice that it has entered into an Related to Obvious Errors
The NRC is seeking comments that additional Global Reseller Expedited
address the following questions: Package Contracts 2 (GREP 2) negotiated July 23, 2015.
1. Is the proposed collection of service agreement (Agreement).1 Pursuant to Section 19(b)(1) of the
information necessary for the NRC to To support its Notice, the Postal Securities Exchange Act of 1934 (the
properly perform its functions? Does the Service filed a copy of the Agreement, ‘‘Act’’),1 and Rule 19b–4 thereunder,2
information have practical utility? a copy of the Governors’ Decision notice is hereby given that on July 15,
2. Is the estimate of the burden of the authorizing the product, a certification 2015, C2 Options Exchange,
information collection accurate? of compliance with 39 U.S.C. 3633(a), Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
3. Is there a way to enhance the filed with the Securities and Exchange
and an application for non-public
quality, utility, and clarity of the Commission (the ‘‘Commission’’) the
treatment of certain materials. It also
information to be collected? proposed rule change as described in
filed supporting financial workpapers.
4. How can the burden of the
Items I and II below, which Items have
information collection on respondents II. Notice of Commission Action been prepared by the Exchange. The
be minimized, including the use of The Commission establishes Docket Commission is publishing this notice to
automated collection techniques or No. CP2015–106 for consideration of solicit comments on the proposed rule
other forms of information technology? matters raised by the Notice. change from interested persons.
Dated at Rockville, Maryland, this 21st day The Commission invites comments on
of July 2015. whether the Postal Service’s filing is I. Self-Regulatory Organization’s
For the Nuclear Regulatory Commission. consistent with 39 U.S.C. 3632, 3633, or Statement of the Terms of Substance of
Tremaine U. Donnell, 3642, 39 CFR part 3015, and 39 CFR the Proposed Rule Change
Senior Specialist, FOIA, Privacy, and part 3020, subpart B. Comments are due The Exchange seeks to amend its rules
Information Collection Branch, Customer no later than July 29, 2015. The public related to obvious errors. The text of the
Service Division, Office of Information portions of the filing can be accessed via proposed rule change is provided
Services. the Commission’s Web site (http:// below.
[FR Doc. 2015–18408 Filed 7–27–15; 8:45 am] www.prc.gov). (additions are italicized; deletions are
BILLING CODE 7590–01–P The Commission appoints Lyudmila [bracketed])
Y. Bzhilyanskaya to serve as Public * * * * *
Representative in this docket.
C2 Options Exchange, Incorporated Rules
POSTAL REGULATORY COMMISSION III. Ordering Paragraphs * * * * *
[Docket No. CP2015–106; Order No. 2603] It is ordered: Rule 6.15 Nullification and Adjustment of
1. The Commission establishes Docket Options Transactions Including Obvious
New Postal Product Errors
No. CP2015–106 for consideration of the
AGENCY: Postal Regulatory Commission. matters raised by the Postal Service’s * * * * *
ACTION: Notice. Notice. .06 Verifiable Disruptions or Malfunctions
2. Pursuant to 39 U.S.C. 505, of Exchange Systems: Electronic transactions
SUMMARY: The Commission is noticing a Lyudmila Y. Bzhilyanskaya is appointed arising out of a ‘‘verifiable disruption or
recent Postal Service filing concerning to serve as an officer of the Commission malfunction’’ in the use or operation of any
an additional Global Reseller Expedited Exchange automated quotation,
to represent the interests of the general
Package Contracts 2 negotiated service dissemination, execution, or communication
public in this proceeding (Public system will either be nullified or adjusted by
agreement. This notice informs the Representative). an Official. Transactions that qualify for
public of the filing, invites public 3. Comments are due no later than price adjustment will be adjusted to
asabaliauskas on DSK5VPTVN1PROD with NOTICES
comment, and takes other July 29, 2015. Theoretical Price, as defined in paragraph (b)
administrative steps. 4. The Secretary shall arrange for above.
DATES: Comments are due: July 29, publication of this order in the Federal * * * * *
2015. Register.
The text of the proposed rule change
ADDRESSES: Submit comments 1 Notice of United States Postal Service of Filing
is also available on the Exchange’s Web
electronically via the Commission’s a Functionally Equivalent Global Reseller
Filing Online system at http:// Expedited Package 2 Negotiated Service Agreement, 1 15 U.S.C. 78s(b)(1).
www.prc.gov. Those who cannot submit July 20, 2015 (Notice). 2 17 CFR 240.19b–4.
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![45008 Federal Register / Vol. 80, No. 144 / Tuesday, July 28, 2015 / Notices
IV. Solicitation of Comments For the Commission, by the Division of Dated: July 24, 2015.
Trading and Markets, pursuant to delegated Brent J. Fields,
Interested persons are invited to authority.10 Secretary.
submit written data, views, and Robert W. Errett, [FR Doc. 2015–18599 Filed 7–24–15; 4:15 pm]
arguments concerning the foregoing, Deputy Secretary. BILLING CODE 8011–01–P
including whether the proposed rule [FR Doc. 2015–18538 Filed 7–27–15; 8:45 am]
change is consistent with the Act. BILLING CODE P
Comments may be submitted by any of SECURITIES AND EXCHANGE
the following methods: COMMISSION
SECURITIES AND EXCHANGE
Electronic Comments COMMISSION Sunshine Act Meeting
• Use the Commission’s Internet Notice is hereby given, pursuant to
Sunshine Act Meeting
comment form (http://www.sec.gov/ the provisions of the Government in the
rules/sro.shtml); or Notice is hereby given, pursuant to Sunshine Act, Public Law 94–409, that
• Send an email to rule-comments@ the provisions of the Government in the the Securities and Exchange
sec.gov. Please include File Number SR– Sunshine Act, Public Law 94–409, that Commission will hold a Closed Meeting
C2–2015–018 on the subject line. the Securities and Exchange on Thursday, July 30, 2015 at 2 p.m.
Commission will hold an Open Meeting Commissioners, Counsel to the
Paper Comments on Friday, July 31, 2015, at 1 p.m., in Commissioners, the Secretary to the
the Auditorium (L–002) at the Commission, and recording secretaries
• Send paper comments in triplicate will attend the Closed Meeting. Certain
Commission’s headquarters building, to
to Brent J. Fields, Secretary, Securities hear oral argument in an appeal by the staff members who have an interest in
and Exchange Commission, 100 F Street Respondents Raymond J. Lucia the matters also may be present.
NE., Washington, DC 20549–1090. Companies, Inc. (‘‘RJLC’’) and Raymond The General Counsel of the
All submissions should refer to File J. Lucia, Sr. (‘‘Lucia’’), and a cross- Commission, or her designee, has
Number SR–C2–2015–018. This file appeal by the Division of Enforcement, certified that, in her opinion, one or
number should be included on the from an initial decision of an more of the exemptions set forth in 5
administrative law judge. U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
subject line if email is used. To help the
On December 6, 2013, the law judge and 17 CFR 200.402(a)(3), (a)(5), (a)(7),
Commission process and review your
found that RJLC violated Sections (9)(ii) and (a)(10), permit consideration
comments more efficiently, please use
206(1), 206(2), and 206(4) of the of the scheduled matter at the Closed
only one method. The Commission will Meeting.
post all comments on the Commission’s Investment Advisers Act of 1940 by
misleading prospective clients about its Commissioner Piwowar, as duty
Internet Web site (http://www.sec.gov/ officer, voted to consider the items
rules/sro.shtml). Copies of the Buckets of Money retirement wealth
management strategy, and that Lucia listed for the Closed Meeting in closed
submission, all subsequent session.
amendments, all written statements aided and abetted and caused RJLC’s
The subject matter of the Closed
violations. For these violations, the law
with respect to the proposed rule Meeting will be:
judge barred Lucia from associating Institution and settlement of
change that are filed with the
with an investment adviser, broker, or injunctive actions;
Commission, and all written
dealer; revoked RJLC’s and Lucia’s Institution and settlement of
communications relating to the investment adviser registrations;
proposed rule change between the administrative proceedings; and
ordered RJLC and Lucia to cease and Other matters relating to enforcement
Commission and any person, other than desist from further violations of the
those that may be withheld from the proceedings.
Advisers Act; and imposed civil At times, changes in Commission
public in accordance with the penalties of $250,000 on RJLC and priorities require alterations in the
provisions of 5 U.S.C. 552, will be $50,000 on Lucia. The law judge also scheduling of meeting items.
available for Web site viewing and found that RJLC did not violate, and For further information and to
printing in the Commission’s Public Lucia did not aid and abet and cause a ascertain what, if any, matters have been
Reference Room, 100 F Street NE., violation of, Advisers Act Rule 206(4)– added, deleted or postponed, please
Washington, DC 20549 on official 1(a)(5) concerning fraudulent contact the Office of the Secretary at
business days between the hours of advertisements by investment advisers. (202) 551–5400.
10:00 a.m. and 3:00 p.m. Copies of such The Respondents appealed the law Dated: July 23, 2015.
filing also will be available for judge’s findings of violation and the Brent J. Fields,
inspection and copying at the principal sanctions imposed, and the Division
Secretary.
office of the Exchange. All comments cross-appealed the law judge’s Rule
[FR Doc. 2015–18571 Filed 7–24–15; 11:15 am]
received will be posted without change; 206(4)–1(a)(5) findings. The issues
the Commission does not edit personal likely to be considered at oral argument BILLING CODE 8011–01–P
identifying information from include, among other things, whether
submissions. You should submit only Respondents violated the antifraud
asabaliauskas on DSK5VPTVN1PROD with NOTICES
information that you wish to make provisions as alleged and, if so, the SMALL BUSINESS ADMINISTRATION
available publicly. All submissions extent to which they should be [Disaster Declaration #14330 and #14331]
should refer to File Number SR–C2– sanctioned for those violations.
2015–018, and should be submitted on For further information, please Oklahoma Disaster Number OK–00092
or before August 18, 2015. contact the Office of the Secretary at AGENCY: U.S. Small Business
(202) 551–5400. Administration.
10 17
ACTION: Amendment 8.
CFR 200.30–3(a)(12).
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Document Created: 2018-02-23 09:28:42
Document Modified: 2018-02-23 09:28:42
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 45006 |
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