80_FR_45404 80 FR 45259 - Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Price Check Parameters

80 FR 45259 - Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Price Check Parameters

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 145 (July 29, 2015)

Page Range45259-45264
FR Document2015-18540

Federal Register, Volume 80 Issue 145 (Wednesday, July 29, 2015) 
[Federal Register Volume 80, Number 145 (Wednesday, July 29, 2015)]
[Notices]
[Pages 45259-45264]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18540]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75516; File No. SR-C2-2015-021]


Self-Regulatory Organizations; C2 Options Exchange, Incorporated; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Price Check Parameters

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 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.
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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 amend Rules 6.13 and 6.17 relating to 
price check parameters on the Exchange. The text of the proposed rule 
change is provided in Exhibit 5 and is also 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.

[[Page 45260]]

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

1. Purpose
    Under Rule 6.17, C2 does not automatically execute eligible orders 
that are marketable if (i) the width between the national best bid and 
offer (the ``NBBO'') is not within an acceptable price range (as 
established by the Exchange on a series by series basis for market 
orders and/or marketable limit orders within certain parameters and 
announced to Trading Permit Holders (``TPHs'') via Regulatory Circular) 
(the ``market width parameter''), or (ii) the execution would follow an 
initial partial execution on the Exchange and would be at a subsequent 
price that is not within an acceptable tick distance (``ATD'') from the 
initial execution (as determined by the Exchange on a series by series 
and premium basis for market order and/or marketable limit orders and 
announced to TPHs by Regulatory Circular) (the ``drill through 
parameter'').
    The purpose of this proposed rule change is, first, to codify 
another price reasonability check within Rule 6.17. The reasonability 
check is currently in use but not expressly covered in the rules. 
Specifically, under this reasonability check, referred to as the 
``limit order price parameter,'' the Exchange will not accept for 
execution eligible limit orders if (i) prior to the opening (including 
before a series is opened following a halt),\3\ the order is to buy are 
at more than an acceptable tick distance above the Exchange's previous 
day's close or the order is to sell are at more than an acceptable tick 
distance below the Exchange's previous day's close (such ATD will be as 
determined by the Exchange on a series by series and premium basis and 
announced to TPHs by Regulatory Circular); \4\ or, (ii) once a series 
has opened, the order is to buy are at more than an acceptable tick 
distance above the disseminated Exchange offer or the order to sell are 
at more than an acceptable tick distance below the disseminated 
Exchange bid (such ATD will be as determined by the Exchange on a 
series by series and premium basis and announced to TPHs by Regulatory 
Circular).\5\ The Exchange will not apply pre-opening limit order price 
parameters to limit orders of Exchange Market-Makers or away Market-
Makers, or to Intermarket Sweep Orders (``ISOs'') as such cannot be 
entered prior to the opening on the System.\6\ Once a series has 
opened, limit order price parameters will be applied to ISOs in all 
classes in which the limit order price parameter is activated.\7\ The 
Exchange may determine on a class by class basis and announce via 
Regulatory Circular whether to apply the parameters in (i) and/or (ii) 
above to immediate-or-cancel orders if doing so would be necessary or 
appropriate in furtherance of the interests of investors and the 
promotion of fair and orderly markets.\8\
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    \3\ This includes halts that may occur at any time after the 
opening of trading on a particular trading day. The Exchange notes 
that this is the manner in which the limit order price parameter 
functionality currently operates. The Exchange believes that this 
functionality provides an additional safeguard to consider the 
reasonableness of limit order pricing prior to a re-opening 
following a trading halt.
    \4\ This parameter for limit orders received prior to the 
opening (including before a series is opened following a halt) is 
not applicable to limit orders of Exchange Market-Makers and away 
Market-Makers. The Exchange believes that Market-Makers actively 
evaluate the pre-opening market and utilize their own risk 
management parameters when entering, maintaining and cancelling 
orders prior to the opening, minimizing the likelihood of a Market-
Maker order resulting from an error from being entered and 
continuing to rest prior to the opening of trading. In that regard, 
while the Exchange believes that the application of its limit order 
price parameters serve to promote a fair and orderly market, the 
parameters are not a substitute for a broker-dealer's compliance 
with Rule 15c3-5 under the Act, 17 CFR 240.15c3-5 (commonly referred 
to as the ``Market Access Rule'').
    \5\ The Exchange notes that with respect to simple orders, limit 
order price parameters will be applied [sic] a series by series 
basis with ATDs to be applied to the series that is the subject of 
the simple order execution as only one series is involved in a 
simple order execution. With respect to complex orders, limit order 
price parameters will be applied on a class by class basis with ATDs 
to be applied to both (each) of the individual legs of both (each) 
series comprising the complex order as well as the net derived 
premium price (``net premium basis'') of the complex order as a 
whole. These parameters will be applied on a class by class basis 
for complex orders as multiple series in a class are involved in a 
complex order execution. The Exchange notes that the ATDs determined 
by the Exchange on a series by series and premium basis (i.e. simple 
order executions) and class by class and net premium basis (i.e. 
complex order executions) under Rules 6.17 and 6.13 will be 
announced via Regulatory Circular at least one day in advance.
    \6\ Under Rule 1.1, the term ``System'' means the automated 
trading system used by the Exchange for the trading of options 
contracts.
    \7\ For all classes where the limit order price parameter is 
activated, it is currently applied to ISOs. ISOs are oftentimes used 
to capture size on the Exchange that is not available on other 
markets. As a result, ISOs tend to be large orders and thus, the 
consequences of order entry errors may be great. In an effort to 
protect market participants from the consequences of such order 
entry errors and prevent market disruptions that may be caused by 
erroneously placed orders, the Exchange has determined to apply 
limit order price parameters to ISOs on the Exchange. The Exchange 
believes that applying limit order price parameters to ISOs serves 
to protect investors and is consistent with Section 6(b) of the Act. 
The Exchange has in place rules and surveillances to ensure that 
ISOs are used in an appropriate manner consistent with the Options 
Order Protection and Locked/Crossed Market Plan, C2 Rules, and 
Federal Securities laws. See Section E of Chapter 6 (incorporating 
by reference CBOE's rules relating to the Options Order Protection 
and Locked/Crossed Market Plan), relating to Intermarket Linkage and 
corresponding Chicago Board Options Exchange, Incorporated 
(``CBOE'') Rule 6.80(8) defining an ISO as a Limit Order for an 
options series that, simultaneously with the routing of the ISO, one 
or more additional ISOs, as necessary, are routed to execute against 
the full displayed size of any Protected Bid, in the case of a limit 
order to sell, or any Protected Offer, in the case of a limit order 
to buy, for the options series with a price that is superior to the 
limit price of the ISO and noting that a Trading Permit Holder may 
submit an ISO to the Exchange only if it has simultaneously routed 
one or more additional ISOs to execute against the full displayed 
size of any Protected Bid, in the case of a limit order to sell, or 
Protected Offer, in the case of a limit order to buy, for an options 
series with a price that is superior to the limit price of the ISO. 
Should the Exchange, in the future, determine that, in the interests 
of fair and orderly markets or, in furtherance of the objectives of 
the Options Order Protection and Locked/Crossed Market Plan, limit 
order price parameters should be applied to ISOs (or another order 
type) in a different manner as other order types, the Exchange may 
determine to widen or narrow the ATDs with respect to ISOs (or 
another order type), which would be announced via Regulatory 
Circular. Should the Exchange, in the future, determine that, in the 
interests of fair and orderly markets or, in furtherance of the 
objectives of the Options Order Protection and Locked/Crossed Market 
Plan, limit order price parameters should not apply to ISOs, a 
further rule filing would be required.
    \8\ For all classes where the limit order price parameter is 
activated, it is not currently applied to immediate-or-cancel 
orders. Immediate-or-cancel orders are oftentimes used by Market-
Makers and sophisticated investors to hit existing books as orders 
become available. Although the Exchange also believes that there is 
less of a need to protect Market-Makers and sophisticated investors 
from potential order entry errors, the Exchange is interested in the 
protection of all market participants from unintended order entry 
errors. As a result, in furtherance of the interests of investors 
and the promotion of fair and orderly markets, the Exchange is 
considering applying limit order price parameters to immediate-or-
cancel orders in the future. Any such determination would be made 
pursuant to proposed Rules 6.13.04(g) and 6.17(b) and announced via 
Regulatory Circular [sic].
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    For purposes of this limit order price parameter: An ``acceptable 
tick distance'' or ``ATD'' \9\ is to be determined by the Exchange on a 
series by series and premium basis and shall be no less than five 
minimum increment

[[Page 45261]]

ticks.\10\ The senior official in the Help Desk might widen or 
inactivate the limit order price parameters on an intra-day basis in 
the interest of a fair and orderly market.\11\ The limit order price 
parameter takes precedence over another parameter to the extent that 
both are applicable to an incoming limit order.\12\
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    \9\ The Exchange notes that, for a given series, the applicable 
ATDs for the limit order price parameters (which may not be less 
than five minimum increment ticks) may differ from the ATDs for the 
drill through parameters (which may not be less than two minimum 
increment ticks). For example, the Exchange may determine that the 
drill through ATD for all series of a given class trading in $0.01 
increments is $0.02 and the limit order price ATD settings for the 
same class are as described in note 8, infra [sic]. The settings may 
differ because the limit order price parameters and the drill 
through parameters are intended to provide reasonability checks that 
address various trading scenarios (e.g., marketable orders that 
would otherwise drill through multiple price points and limit orders 
that are priced significantly through the disseminated Exchange bid/
offer or the prior day's close). The Exchange believes use of 
multiple reasonability checks helps to prevent the entry and 
execution of orders at potentially erroneous prices, which should 
promote a fair and orderly market.
    \10\ For example, currently the Exchange has determined for all 
classes where the limit order price parameter is activated that the 
Exchange would not accept the following limit orders for execution: 
(i) If the market quote is less than or equal to $3, limit orders to 
buy priced more than $0.50 above the offer and limit orders to sell 
priced more than $0.50 below the bid; (ii) if the market quote is 
greater than $3 and less than or equal to $10, limit orders to buy 
priced more than $1.00 above the offer and limit orders to sell 
priced more than $1.00 below the bid; (iii) if the market quote is 
greater than $10 and less than or equal to $30, limit orders to buy 
priced more than $1.50 above the offer and limit orders to sell 
priced more than $1.50 below the bid; (iv) if the market quote is 
greater than $30 and less than or equal to $50, limit orders to buy 
priced more than $2.00 above the offer and limit orders to sell 
priced more than $2.00 below the bid; or (v) if the market quote is 
equal to or greater than $50, limit orders to buy priced more than 
$3.00 above the offer and limit order to sell priced more than $3.00 
below the bid. See C2 Regulatory Circular RG13-059, which is 
available at http://www.c2exchange.com/publish/RegCir_C2/C2RG13-059.pdf. For the same classes, the Exchange has determined that 
limit orders received before a series is in opened will be checked 
against the previous trading day's closing price using the same 
parameters noted above. Exchange Market Maker and away Market Maker 
orders received pre-open are excluded from this pre-open limit order 
price parameter. The foregoing limit order price parameters are in 
effect in all classes except options on Apple Inc. (AAPL). There are 
no limit order price parameters currently activated for option class 
AAPL. See id. According to the Exchange, volume for options class 
AAPL is higher and trading is more volatile, while the price of the 
underlying stock is higher (e.g., Apple Inc. closed at $125.69 on 
July 7, 2015). The Exchange believes that application of the limit 
order price parameter in these circumstances may serve as more of a 
hindrance to the orderly processing orders (e.g., application of the 
parameter may result in an inordinate number of orders being 
excepted from automated process and instead routing for manual 
handling) and, as a result, has determined to not apply the 
parameters to option class AAPL for the time being. However, the 
Exchange may evaluate whether to apply the parameters to the option 
class and any determination to do so would be announced via 
Regulatory Circular.
    \11\ For example, if an underlying stock is high priced or 
volatile and is experiencing significant price movement and the 
existing parameters would result in an inordinate number of limit 
orders not being accepted, the senior official in the Help Desk may 
determine to widen the parameters on an intra-day basis in the 
overlying or related options series. See C2 Rule 6.17(B); see also 
C2 Regulatory Circular RG13-059, which is available at http://www.c2exchange.com/publish/RegCir_C2/C2RG13-059.pdf. As another 
example, if the overall market is experiencing significant 
volatility, the senior official in the Help Desk may determine to 
widen the limit order price parameters for a series. In that regard, 
the Exchange has determined that on any trading day where the front-
month E-mini S&P 500 Futures (symbol ES/1) are trading more than 20 
points above or below the previous day's closing values by 8:00 a.m. 
(all times noted are Central Time), the Exchange will widen the 
limit order price parameter levels from $0.50, $1.00, $1.50, $2.00 
and $3.00 as set out in note 10, supra, to $1.00, $2.00, $3.00, 
$4.00 and $6.00, respectively, for the trading day for all series 
where the limit order price parameter is activated (referred to 
herein as the ``Standing Intraday Relief Condition''). See C2 
Regulatory Circular C2 RG13-059. The next trading day, the limit 
order price parameter levels would revert back to the normal 
setting, unless the E-mini S&P 500 Future is more than 20 points 
above or below the previous day's closing values by 8:00 a.m.
    Example of Standing Intraday Relief Condition: If on Monday the 
E-mini S&P 500 Futures close at 1700 and by 8:00 a.m. on Tuesday the 
E-mini S&P 500 Future is trading at 1730 (30 points above the prior 
day's close of 1700), then the Exchange would adjust the limit order 
price parameters to the wider levels noted above. If the E-mini S&P 
500 Futures close on Tuesday at 1725 and by 8:00 a.m. on Wednesday 
are trading at 1720 (only 5 points below the prior day's close of 
1725), then the limit order price parameter settings would revert 
back to the levels that were in place on Monday. However, if by 8:00 
a.m. on Wednesday the E-mini S&P 500 Futures are trading at 1700 (25 
points below the prior day's close of 1725), then the limit order 
price parameter settings would remain at the levels that were in 
place on Tuesday.
    The Exchange notes that these examples are non-exhaustive and 
for illustrative purposes only. The Exchange also notes that it may 
determine for the parameters to differ among series and between pre-
open and intra-day.
    \12\ For example, assume the Exchange has established drill 
through and limit order price ATD settings as prescribed in notes 10 
and 11 [sic], supra. If the market quote in a given series is $2.15-
$2.55 and an incoming limit order to buy is priced at $3.50 (more 
than $0.50 above the offer), the limit order price ATD will be 
triggered and the Exchange will not accept the limit order for 
execution. The drill through parameter would not apply (the drill 
through ATD parameter would only be considered if the limit order 
price ATD parameter is not triggered).
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    The Exchange is also proposing to codify a limit order price 
parameter for complex orders within Rule 6.13 under proposed 
Interpretation and Policy .04(g). This limit order price parameter, 
which is comparable to the limit order price parameters applicable to 
simple orders described above, is not currently in use. Under this 
complex order limit order price parameter the Exchange will return a 
limit priced complex order to the order entry firm where the order is 
(i) prior to the opening (including before a series is opened following 
a halt), priced at a net debit that is more than an acceptable tick 
distance above the derived net market using the Exchange's previous 
day's close in the individual series legs comprising the complex order 
or priced at a net credit that is more than an acceptable tick distance 
below the derived net market using the Exchange's previous day's close 
in the individual series legs comprising the complex order (such ATD 
will be as determined by the Exchange on a class by class and net 
premium basis and announced via Regulatory Circular); or (ii) once a 
series has opened, priced at a net debit that is more than an 
acceptable tick distance above the opposite side derived net market 
using the Exchange's best bid or offer in the individual series legs 
comprising the complex order or priced at a net credit that is more 
than an acceptable tick distance below the opposite side derived net 
market using the Exchange's best bid or offer in the individual series 
legs comprising the complex order (such ATD will be as determined by 
the Exchange on a class by class and net premium basis and announced 
via Regulatory Circular).\13\ Similar to simple orders, this parameter 
for limit priced complex orders received prior to the opening would not 
be applicable to limit orders of Exchange Market-Makers or away Market-
Makers, or to ISOs as such cannot be entered prior to the opening on 
the System. Once a series has opened, limit order price parameters will 
be applied to ISOs in all classes in which the limit order price 
parameter is activated.\14\ The Exchange may determine on a class by 
class basis and announce via Regulatory Circular whether to apply the 
parameters in (i) and/or (ii) above to immediate-or-cancel complex 
orders (similar to the discussion above for simple orders). The 
Exchange also notes that the limit order price parameter will not be 
applicable to stock-option orders.\15\ The Exchange also proposes 
several non-substantive changes within Interpretation and Policy .04 to 
Rule 6.13 to abbreviate the terms ``acceptable price range'' and 
``acceptable tick distance'' where appropriate for consistency 
purposes.
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    \13\ In accordance with the existing provisions of Rule 6.13.01, 
all pronouncements regarding determinations by the Exchange pursuant 
to proposed Rule 6.13.04(g) will be announced via Regulatory 
Circular.
    \14\ Should the Exchange, in the future, determine that, in the 
interests of fair and orderly markets or, in furtherance of the 
objectives of the Options Order Protection and Locked/Crossed Market 
Plan, limit order price parameters should be applied to ISOs (or 
another order type) in a different manner as other order types, the 
Exchange may determine to widen or narrow the ATDs with respect to 
ISOs (or another order type), which would be announced via 
Regulatory Circular. Should the Exchange, in the future, determine 
that, in the interests of fair and orderly markets or, in 
furtherance of the objectives of the Options Order Protection and 
Locked/Crossed Market Plan, limit order price parameters should not 
apply to ISOs, a further rule filing would be required.
    \15\ Stock-options orders are excluded from the calculation 
because the individual component stock leg is not traded on the 
Exchange and, as a result, calculation of a derived net market by 
the Exchange's automated system would be a more complicated 
function. If in the future the Exchange would decide to enhance the 
limit order price parameter functionality to address stock-option 
orders, the Exchange would file a rule change to address stock-
option orders.
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    Similar to simple orders, the ATD for the limit order price 
parameter for complex orders will be no less than 5

[[Page 45262]]

minimum net price increment ticks (where the ``minimum net price 
increment'' is the minimum increment for net priced bids and offers for 
the given complex order strategy). For example, if the minimum net 
price increment for complex orders in a given series in a class is 
$0.01, then the ATD would be no less than $0.05 (5 x $0.01). If the 
minimum net price increment is $0.05, then the ATD would be no less 
than $0.25 (5 x $0.05). Also similar to simple orders, the Exchange 
might widen or inactivate limit order price parameter for complex 
orders for one or more classes on an intra-day basis in the interest of 
a fair and orderly market.\16\ The limit order price parameter will 
take precedence over another complex order parameter to the extent that 
both are applicable to an incoming limit order.\17\
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    \16\ See also note 11, supra.
    \17\ Rule 6.13.04 sets forth various price check parameters 
applicable to complex orders. For each price check parameter that 
may be applicable to incoming limit orders--except the market width 
parameter--the system will not accept or will return the order back 
to the order entry firm if the parameter is triggered. If the market 
width parameter is triggered, an incoming (or resting) marketable 
limit order will be held in the system, displayed in the complex 
order book if applicable, and not be eligible for automatic 
execution until the market width condition is resolved. See Rule 
6.13.04. In the instance where both the limit order price parameter 
and another parameter are applicable, the limit order price 
parameter takes precedence (i.e., is applied first) before the other 
parameter is applied.
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    The Exchange is also proposing a miscellaneous change to Rule 
6.13.04 to specifically identify the price check parameters that are 
not applicable to stock-option orders in the introductory text to this 
provision. The particular parameters to which stock-option orders may 
be subjected are already identified within the rule text. This proposed 
change is simply to include a list of those parameters which are not 
applicable to stock-option orders in the introductory paragraph for 
ease of reference.\18\
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    \18\ Specifically, paragraphs (b) (credit-to-debit parameters), 
(c) (same expiration strategy parameters), (e) (percentage distance 
parameters) and proposed paragraph (g) (limit order price 
parameters) of Rule 6.13.04 are not applicable to stock-option 
orders.
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    The Exchange notes that the limit order price parameter for simple 
and complex is intended to protect market participants from executions 
of limit orders at prices that are significantly through the Exchange's 
market (i.e., no less than five minimum increment ticks for simple 
orders and no less than five minimum net price increment ticks for 
complex orders). The Exchange believes that TPHs that submit orders on 
C2 generally intend to receive executions of their orders at or near 
the Exchange's market. A limit order that is priced significantly 
through the Exchange's market could be indicative of an error (e.g., 
mistake in intended price, series, put/call) and could result in 
executions occurring at prices that have little or no relation to the 
theoretical price of the option. Accordingly, the Exchange believes the 
limit order price parameter is a mechanism that will help prevent the 
entry of erroneous orders, dramatic price swings and, potentially, 
executions qualifying as obvious errors \19\ on C2. The Exchange also 
believes that orders that are significantly priced through the market 
have the potential to create market volatility by trading at different 
price levels until executed in their entirety. As such, the Exchange 
believes the limit order price parameter may also help limit 
volatility.
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    \19\ See C2 Rule 6.15.
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    Second, the Exchange is proposing various miscellaneous changes to 
the existing text in Rule 6.17. In particular, the Exchange is 
proposing to include a title for each type of price check parameter 
within the rule text (i.e., for the existing market width parameters, 
the existing drill through parameters, and the proposed limit order 
price parameters). The addition of these titles is non-substantive and 
is intended for ease of reference only. In addition, the Exchange is 
proposing to replace the ``class-by-class basis'' reference in proposed 
Rule 6.17(c) with ``series by series and premium basis'' to provide 
consistency within the Rules and reflect the fact that the APR for a 
simple order will apply on a series by series basis to the single 
series involved in the order and be determined on a premium basis in 
relation to the bid-ask differential in that series. For the same 
reasons, the Exchange proposes to add the term ``and premium'' to 
proposed Rule 6.17(a)(1) regarding market width parameters. The 
Exchange is also renumbering Rule 6.17 and clarifying existing 
references to APR and ATD as references to the existing market width 
APR and drill through ATD for ease of reference.
    The existing text of Rule 6.17 also provides that the senior 
official in the Help Desk may grant intra-day relief by widening the 
APR or ATD settings for one or more option series and that notification 
of intraday relief will be announced via message to Trading Permit 
Holders that request to receive such messages. The Exchange is 
proposing to amend this provision to add that such intra-day relief may 
be granted in the interest of a fair and orderly market. The Exchange 
is also proposing to amend this provision to make clear that the senior 
official in the Help Desk can grant relief by widening or inactivating 
the applicable APR and/or ATD setting. The Exchange believes including 
the reference to inactivating the applicable settings is not 
substantive because an applicable APR or ATD parameter could be widened 
to such a level that it would be in effect inactive. The Exchange is 
also proposing to provide within the rule text that the intra-day 
relief granted by the senior official in the Help Desk will not extend 
beyond the trade day on which it is granted, unless a determination to 
extend such relief if announced to TPHs via Regulatory Circular.\20\ 
The Exchange is also proposing to provide within the rule text that the 
Exchange will make and keep records to document all determinations to 
grant intra-day relief under Rule 6.17, and shall maintain those 
records in accordance with Rule 17a-1 under the Act.\21\ The rule text 
will also provide that the Exchange will periodically review 
determinations to grant intra-day relief for consistency with the 
interest of a fair and orderly market. Finally, the Exchange notes that 
the same intra-day relief provisions are proposed to apply to the limit 
order price parameter provisions for complex orders in proposed Rule 
6.13.04(g).
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    \20\ The Exchange notes that conditions when the Standing 
Intraday Relief will be instituted and the particular form of relief 
have been announced via Regulatory Circular. See note 11, supra. The 
announcement of the pre-established conditions and relief is 
intended to serve the circular notification requirement and, as 
such, a separate circular would not be issued if this relief is 
instituted over multiple days. However, if the Exchange would 
determine to modify the conditions for Standing Intraday Relief, 
then the Exchange would announce those changes by issuing another 
Regulatory Circular.
    \21\ 17 CFR 240.17a-1. The Exchange notes that determinations to 
grant intra-day relief under Rule 6.17 will be made in compliance 
with the provisions of the Act and the rules thereunder, including, 
but not limited to, the requirements in Section 6(b)(5) of the Act, 
15 U.S.C. 78f(b), that the rules of a national securities exchange 
not be designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act 
\22\ in general and furthers the objectives of Section 6(b)(5) of the 
Act \23\ in particular, which requires that the rules of an exchange be 
designed to promote just and equitable principles of trade, to prevent 
fraudulent and manipulative acts, to remove impediments to and to 
perfect the mechanism of a free and open market and a national market

[[Page 45263]]

system, and, in general, to protect investors and the public interest.
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    \22\ 15 U.S.C. 78f(b).
    \23\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the proposed rule change furthers the 
objective of Section 6(b)(5) of the Act in that it permits the Exchange 
to address the entry of simple and complex limit orders that are priced 
significantly away from the market that are likely to have resulted 
from human or operational error.\24\ By being able to quickly and 
efficiently reject orders that likely resulted from such error, the 
proposed use of the limit order price parameter would promote a fair 
and orderly market. Additionally, by having the flexibility to 
determine the series or classes where the limit order price parameter 
would be applied (or not applied) and the levels at which the ATD 
settings would be applied, and to grant relief on an intra-day basis, 
the Exchange is able to effectively structure and efficiently react to 
particular option characteristics and market conditions--including 
(without limitation) price, volatility, and significant price 
movements--which contributes to its ability to maintain a fair and 
orderly market. Accordingly, the Exchange believes that this proposal 
is designed to promote just and equity principles of trade, remove 
impediments to, and perfect the mechanism of, a free and open 
market.\25\
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    \24\ The Exchange believes that these principles are equally 
applicable to ISOs. In an effort to protect market participants from 
the consequences of such order entry errors and prevent market 
disruptions that may be caused by erroneously placed orders, the 
Exchange has determined to apply limit order price parameters to 
ISOs on the Exchange. The Exchange believes that applying limit 
order price parameters to ISOs serves to protect investors and is 
consistent with Section 6(b) of the Act.
    \25\ The Exchange notes that limit order price parameters are in 
effect in all classes except options on Apple Inc. (AAPL). There are 
no limit order price parameters currently activated for option class 
AAPL. See C2 Regulatory Circular RG13-059, which is available at 
http://www.c2exchange.com/publish/RegCir_C2/C2RG13-059.pdf. 
According to the Exchange, volume for options class AAPL is higher 
and trading is more volatile, while the price of the underlying 
stock is higher (e.g., Apple Inc. closed at $125.69 on July 7, 
2015). The Exchange believes that application of the limit order 
price parameters in these circumstances may serve as more of a 
hindrance to the orderly processing orders (e.g., application of the 
parameter may result in an inordinate number of orders being 
excepted from automated process and instead routing for manual 
handling) and, as a result, has determined to not apply the 
parameters to option class AAPL for the time being. The Exchange 
believes that because of these factors different treatment of the 
AAPL class is warranted. However, the Exchange may evaluate whether 
to apply the parameters to the option class and any determination to 
do so would be announced via Regulatory Circular.
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    The Exchange also believes that the other proposed changes to Rule 
6.17 (e.g., to include titles for the various price check parameters; 
to change a reference from class by class to series by series; to make 
clear that intra-day relief may be granted in the interest of a fair 
and orderly market and may include widening or inactivating the 
applicable APR and/or ATD; and to include provisions indicating that 
intra-day relief may not extend beyond the trade day on which it is 
granted, unless a determination to extend such relief is announced to 
Trading Permit Holders via Regulatory Circular, and that the Exchange 
will make and keep records to document determinations to grant intra-
day relief under Rule 6.17) should also serve to further these 
objectives by more clearly and fully describing certain aspects of the 
operation of these price check parameters and addressing determinations 
to modify the operation of the price check parameters on an intra-day 
basis as provided within Rule 6.17. For the same reason, Exchange 
believes the substantially similar intra-day relief provisions for 
complex orders in proposed Rule 6.13.04(g) should also serve to further 
these objectives. The Exchange also believes that the proposed change 
to the introductory paragraph to Rule 6.13.04 to specifically identify 
the price check parameters that are not applicable to stock-option 
orders should also serve to further these objectives by making the rule 
easier to read and navigate.

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

    The Exchange 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 Exchange believes that 
the proposed rule change will promote competition in that the limit 
order price parameters provide market participants with additional 
protection from anomalous trading. Thus, the Exchange does not believe 
the proposal creates any significant impact on competition.
    The price check parameter features are intended to prevent 
executions at potentially erroneously prices, which should serve to 
promote a fair and orderly market and promote trading activity on the 
Exchange to the benefit of the Exchange, its TPHs, and market 
participants. The Exchange notes that the limit order price parameters 
are applied equally to all eligible limit orders, with the limited 
exception that the parameters do not apply to limit orders for Exchange 
Market-Makers and away Market-Makers entered prior to the opening. The 
Exchange believes this does not place an undue burden on competition as 
the Exchange believes that Market-Makers actively evaluate the pre-
opening market and utilize their own risk management parameters when 
entering, maintaining (and cancelling) orders prior to the opening, 
minimizing the likelihood of a Market-Maker order resulting an error 
from being entered and continuing to rest prior to the opening of 
trading.

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

    No written comments were solicited or received with respect to 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 \26\ and Rule 19b-4(f)(6) thereunder.\27\ 
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 for 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 \28\ and Rule 19b-
4(f)(6) thereunder.\29\
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    \26\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \27\ 17 CFR 240.19b-4(f)(6).
    \28\ 15 U.S.C. 78s(b)(3)(A).
    \29\ 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 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \30\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\31\ 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 proposed 
rule change may become operative immediately. According to the 
Exchange, the proposed rule change will provide additional protections 
against the execution of limit orders that are priced significantly 
away from the market as a result of human or

[[Page 45264]]

operational error. In addition, C2's proposed changes to allow 
flexibility in setting the ATD for a particular option class or series 
and to grant intra-day relief in the interest of a fair and orderly 
market should provide the Exchange with the ability to address 
particular option characteristics and markets conditions. Accordingly, 
the Commission finds that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest and 
hereby designates the proposal operative upon filing.\32\
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    \30\ 17 CFR 240.19b-4(f)(6).
    \31\ 17 CFR 240.19b-4(f)(6)(iii).
    \32\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

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-C2-2015-021 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-C2-2015-021. 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 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal offices 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-C2-2015-021, and should be 
submitted on or before August 19, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\33\
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    \33\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-18540 Filed 7-28-15; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 145 / Wednesday, July 29, 2015 / Notices 45259 burden on competition not necessary or Electronic Comments SECURITIES AND EXCHANGE appropriate in furtherance of the COMMISSION purposes of the Act, and believes the • Use the Commission’s Internet proposed change will in fact enhance comment form (http://www.sec.gov/ [Release No. 34–75516; File No. SR–C2– competition.16 rules/sro.shtml); or 2015–021] • Send an email to rule-comments@ C. Self-Regulatory Organization’s sec.gov. Please include File Number SR– Self-Regulatory Organizations; C2 Statement on Comments on the MIAX–2015–47 on the subject line. Options Exchange, Incorporated; Proposed Rule Change Received From Members, Participants, or Others Notice of Filing and Immediate Paper Comments Effectiveness of a Proposed Rule Written comments were neither • Send paper comments in triplicate Change Relating to Price Check solicited nor received. to Secretary, Securities and Exchange Parameters Commission, 100 F Street NE., III. Date of Effectiveness of the July 23, 2015. Proposed Rule Change and Timing for Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the Commission Action All submissions should refer to File Securities Exchange Act of 1934 (the Number SR–MIAX–2015–47. This file ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Because the foregoing proposed rule number should be included on the change does not: (i) Significantly affect notice is hereby given that on July 17, subject line if email is used. To help the 2015, C2 Options Exchange, the protection of investors or the public Commission process and review your Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) interest; (ii) impose any significant comments more efficiently, please use filed with the Securities and Exchange burden on competition; and (iii) become only one method. The Commission will Commission (the ‘‘Commission’’) the operative for 30 days after the date of the filing, or such shorter time as the post all comments on the Commission’s proposed rule change as described in Commission may designate, it has Internet Web site (http://www.sec.gov/ Items I and II below, which Items have become effective pursuant to 19(b)(3)(A) rules/sro.shtml). Copies of the been prepared by the Exchange. The of the Act 17 and Rule 19b–4(f)(6) 18 submission, all subsequent Commission is publishing this notice to thereunder. amendments, all written statements solicit comments on the proposed rule with respect to the proposed rule change from interested persons. At any time within 60 days of the change that are filed with the filing of the proposed rule change, the I. Self-Regulatory Organization’s Commission, and all written Commission summarily may Statement of the Terms of Substance of communications relating to the temporarily suspend such rule change if proposed rule change between the the Proposed Rule Change it appears to the Commission that such action is necessary or appropriate in the Commission and any person, other than those that may be withheld from the The Exchange proposes to amend public interest, for the protection of Rules 6.13 and 6.17 relating to price investors, or otherwise in furtherance of public in accordance with the provisions of 5 U.S.C. 552, will be check parameters on the Exchange. The the purposes of the Act. If the text of the proposed rule change is Commission takes such action, the available for Web site viewing and printing in the Commission’s Public provided in Exhibit 5 and is also Commission shall institute proceedings available on the Exchange’s Web site to determine whether the proposed rule Reference Room, 100 F Street NE., Washington, DC 20549 on official (http://www.cboe.com/AboutCBOE/ should be approved or disapproved. CBOELegalRegulatoryHome.aspx), at business days between the hours of IV. Solicitation of Comments 10:00 a.m. and 3:00 p.m. Copies of such the Exchange’s Office of the Secretary, filing also will be available for and at the Commission’s Public Interested persons are invited to Reference Room. submit written data, views, and inspection and copying at the principal arguments concerning the foregoing, offices of the Exchange. All comments II. Self-Regulatory Organization’s including whether the proposed rule received will be posted without change; Statement of the Purpose of, and change is consistent with the Act. the Commission does not edit personal Statutory Basis for, the Proposed Rule Comments may be submitted by any of identifying information from Change the following methods: submissions. You should submit only information that you wish to make In its filing with the Commission, the 16 The available publicly. All submissions Exchange included statements Commission notes that, in the Form 19b- 4, the Exchange states that the proposed rule change should refer to File Number SR–MIAX– concerning the purpose of and basis for ‘‘is based in part on the rules of another options 2015–47, and should be submitted on or the proposed rule change and discussed exchange,’’ Chicago Board Options Exchange, Inc. any comments it received on the Rule 8.18, ‘‘which gives Market Makers the ability before August 19, 2015. to specify a maximum cumulative percentage, proposed rule change. The text of these For the Commission, by the Division of defined as the sum of the percentages of the original statements may be examined at the quoted size of each side of each series within a class Trading and Markets, pursuant to delegated authority.19 places specified in Item IV below. The that traded, that a Market Maker is willing to trade during a rolling time period after which their Exchange has prepared summaries, set Robert W. Errett, quotations in the affected class are removed .’’ forth in sections A, B, and C below, of 17 15 U.S.C. 78s(b)(3)(A). Deputy Secretary. the most significant aspects of such tkelley on DSK3SPTVN1PROD with NOTICES 18 17 CFR 240.19b-4(f)(6). In addition, Rule 19b- [FR Doc. 2015–18537 Filed 7–28–15; 8:45 am] statements. 4(f)(6) requires a self-regulatory organization to give BILLING CODE 8011–01–P the Commission written notice of its intent to file 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 1 15 U.S.C. 78s(b)(1). Commission. The Exchange has satisfied this requirement. 19 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 17:33 Jul 28, 2015 Jkt 235001 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 E:\FR\FM\29JYN1.SGM 29JYN1

45260 Federal Register / Vol. 80, No. 145 / Wednesday, July 29, 2015 / Notices A. Self-Regulatory Organization’s opened, the order is to buy are at more determine on a class by class basis and Statement of the Purpose of, and than an acceptable tick distance above announce via Regulatory Circular Statutory Basis for, the Proposed Rule the disseminated Exchange offer or the whether to apply the parameters in (i) Change order to sell are at more than an and/or (ii) above to immediate-or-cancel acceptable tick distance below the orders if doing so would be necessary or 1. Purpose disseminated Exchange bid (such ATD appropriate in furtherance of the Under Rule 6.17, C2 does not will be as determined by the Exchange interests of investors and the promotion automatically execute eligible orders on a series by series and premium basis of fair and orderly markets.8 that are marketable if (i) the width and announced to TPHs by Regulatory For purposes of this limit order price between the national best bid and offer Circular).5 The Exchange will not apply parameter: An ‘‘acceptable tick (the ‘‘NBBO’’) is not within an pre-opening limit order price distance’’ or ‘‘ATD’’ 9 is to be acceptable price range (as established by parameters to limit orders of Exchange determined by the Exchange on a series the Exchange on a series by series basis Market-Makers or away Market-Makers, by series and premium basis and shall for market orders and/or marketable or to Intermarket Sweep Orders (‘‘ISOs’’) be no less than five minimum increment limit orders within certain parameters as such cannot be entered prior to the and announced to Trading Permit opening on the System.6 Once a series case of a limit order to buy, for the options series Holders (‘‘TPHs’’) via Regulatory has opened, limit order price parameters with a price that is superior to the limit price of Circular) (the ‘‘market width will be applied to ISOs in all classes in the ISO and noting that a Trading Permit Holder parameter’’), or (ii) the execution would may submit an ISO to the Exchange only if it has which the limit order price parameter is simultaneously routed one or more additional ISOs follow an initial partial execution on the activated.7 The Exchange may to execute against the full displayed size of any Exchange and would be at a subsequent Protected Bid, in the case of a limit order to sell, price that is not within an acceptable parameters serve to promote a fair and orderly or Protected Offer, in the case of a limit order to tick distance (‘‘ATD’’) from the initial market, the parameters are not a substitute for a buy, for an options series with a price that is broker-dealer’s compliance with Rule 15c3–5 under superior to the limit price of the ISO. Should the execution (as determined by the Exchange, in the future, determine that, in the the Act, 17 CFR 240.15c3–5 (commonly referred to Exchange on a series by series and as the ‘‘Market Access Rule’’). interests of fair and orderly markets or, in premium basis for market order and/or 5 The Exchange notes that with respect to simple furtherance of the objectives of the Options Order marketable limit orders and announced orders, limit order price parameters will be applied Protection and Locked/Crossed Market Plan, limit [sic] a series by series basis with ATDs to be applied order price parameters should be applied to ISOs to TPHs by Regulatory Circular) (the (or another order type) in a different manner as to the series that is the subject of the simple order ‘‘drill through parameter’’). execution as only one series is involved in a simple other order types, the Exchange may determine to The purpose of this proposed rule order execution. With respect to complex orders, widen or narrow the ATDs with respect to ISOs (or change is, first, to codify another price limit order price parameters will be applied on a another order type), which would be announced via reasonability check within Rule 6.17. class by class basis with ATDs to be applied to both Regulatory Circular. Should the Exchange, in the (each) of the individual legs of both (each) series future, determine that, in the interests of fair and The reasonability check is currently in orderly markets or, in furtherance of the objectives comprising the complex order as well as the net use but not expressly covered in the derived premium price (‘‘net premium basis’’) of of the Options Order Protection and Locked/ rules. Specifically, under this the complex order as a whole. These parameters Crossed Market Plan, limit order price parameters reasonability check, referred to as the will be applied on a class by class basis for complex should not apply to ISOs, a further rule filing would orders as multiple series in a class are involved in be required. ‘‘limit order price parameter,’’ the a complex order execution. The Exchange notes that 8 For all classes where the limit order price Exchange will not accept for execution the ATDs determined by the Exchange on a series parameter is activated, it is not currently applied to eligible limit orders if (i) prior to the by series and premium basis (i.e. simple order immediate-or-cancel orders. Immediate-or-cancel opening (including before a series is executions) and class by class and net premium orders are oftentimes used by Market-Makers and opened following a halt),3 the order is basis (i.e. complex order executions) under Rules sophisticated investors to hit existing books as 6.17 and 6.13 will be announced via Regulatory orders become available. Although the Exchange to buy are at more than an acceptable Circular at least one day in advance. also believes that there is less of a need to protect tick distance above the Exchange’s 6 Under Rule 1.1, the term ‘‘System’’ means the Market-Makers and sophisticated investors from previous day’s close or the order is to automated trading system used by the Exchange for potential order entry errors, the Exchange is sell are at more than an acceptable tick the trading of options contracts. interested in the protection of all market 7 For all classes where the limit order price participants from unintended order entry errors. As distance below the Exchange’s previous a result, in furtherance of the interests of investors parameter is activated, it is currently applied to day’s close (such ATD will be as ISOs. ISOs are oftentimes used to capture size on and the promotion of fair and orderly markets, the determined by the Exchange on a series the Exchange that is not available on other markets. Exchange is considering applying limit order price by series and premium basis and As a result, ISOs tend to be large orders and thus, parameters to immediate-or-cancel orders in the the consequences of order entry errors may be great. future. Any such determination would be made announced to TPHs by Regulatory pursuant to proposed Rules 6.13.04(g) and 6.17(b) In an effort to protect market participants from the Circular); 4 or, (ii) once a series has consequences of such order entry errors and and announced via Regulatory Circular [sic]. prevent market disruptions that may be caused by 9 The Exchange notes that, for a given series, the 3 This includes halts that may occur at any time erroneously placed orders, the Exchange has applicable ATDs for the limit order price after the opening of trading on a particular trading determined to apply limit order price parameters to parameters (which may not be less than five day. The Exchange notes that this is the manner in ISOs on the Exchange. The Exchange believes that minimum increment ticks) may differ from the which the limit order price parameter functionality applying limit order price parameters to ISOs serves ATDs for the drill through parameters (which may currently operates. The Exchange believes that this to protect investors and is consistent with Section not be less than two minimum increment ticks). For functionality provides an additional safeguard to 6(b) of the Act. The Exchange has in place rules and example, the Exchange may determine that the drill consider the reasonableness of limit order pricing surveillances to ensure that ISOs are used in an through ATD for all series of a given class trading prior to a re-opening following a trading halt. appropriate manner consistent with the Options in $0.01 increments is $0.02 and the limit order 4 This parameter for limit orders received prior to Order Protection and Locked/Crossed Market Plan, price ATD settings for the same class are as the opening (including before a series is opened C2 Rules, and Federal Securities laws. See Section described in note 8, infra [sic]. The settings may following a halt) is not applicable to limit orders of E of Chapter 6 (incorporating by reference CBOE’s differ because the limit order price parameters and Exchange Market-Makers and away Market-Makers. rules relating to the Options Order Protection and the drill through parameters are intended to provide The Exchange believes that Market-Makers actively Locked/Crossed Market Plan), relating to reasonability checks that address various trading tkelley on DSK3SPTVN1PROD with NOTICES evaluate the pre-opening market and utilize their Intermarket Linkage and corresponding Chicago scenarios (e.g., marketable orders that would own risk management parameters when entering, Board Options Exchange, Incorporated (‘‘CBOE’’) otherwise drill through multiple price points and maintaining and cancelling orders prior to the Rule 6.80(8) defining an ISO as a Limit Order for limit orders that are priced significantly through the opening, minimizing the likelihood of a Market- an options series that, simultaneously with the disseminated Exchange bid/offer or the prior day’s Maker order resulting from an error from being routing of the ISO, one or more additional ISOs, as close). The Exchange believes use of multiple entered and continuing to rest prior to the opening necessary, are routed to execute against the full reasonability checks helps to prevent the entry and of trading. In that regard, while the Exchange displayed size of any Protected Bid, in the case of execution of orders at potentially erroneous prices, believes that the application of its limit order price a limit order to sell, or any Protected Offer, in the which should promote a fair and orderly market. VerDate Sep<11>2014 17:33 Jul 28, 2015 Jkt 235001 PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 E:\FR\FM\29JYN1.SGM 29JYN1

Federal Register / Vol. 80, No. 145 / Wednesday, July 29, 2015 / Notices 45261 ticks.10 The senior official in the Help parameter takes precedence over acceptable tick distance above the Desk might widen or inactivate the limit another parameter to the extent that opposite side derived net market using order price parameters on an intra-day both are applicable to an incoming limit the Exchange’s best bid or offer in the basis in the interest of a fair and orderly order.12 individual series legs comprising the market.11 The limit order price The Exchange is also proposing to complex order or priced at a net credit codify a limit order price parameter for that is more than an acceptable tick 10 For example, currently the Exchange has complex orders within Rule 6.13 under distance below the opposite side determined for all classes where the limit order proposed Interpretation and Policy derived net market using the Exchange’s price parameter is activated that the Exchange would not accept the following limit orders for .04(g). This limit order price parameter, best bid or offer in the individual series execution: (i) If the market quote is less than or which is comparable to the limit order legs comprising the complex order (such equal to $3, limit orders to buy priced more than price parameters applicable to simple ATD will be as determined by the $0.50 above the offer and limit orders to sell priced Exchange on a class by class and net more than $0.50 below the bid; (ii) if the market orders described above, is not currently quote is greater than $3 and less than or equal to in use. Under this complex order limit premium basis and announced via $10, limit orders to buy priced more than $1.00 order price parameter the Exchange will Regulatory Circular).13 Similar to simple above the offer and limit orders to sell priced more return a limit priced complex order to orders, this parameter for limit priced than $1.00 below the bid; (iii) if the market quote complex orders received prior to the is greater than $10 and less than or equal to $30, the order entry firm where the order is limit orders to buy priced more than $1.50 above (i) prior to the opening (including before opening would not be applicable to the offer and limit orders to sell priced more than a series is opened following a halt), limit orders of Exchange Market-Makers $1.50 below the bid; (iv) if the market quote is priced at a net debit that is more than or away Market-Makers, or to ISOs as greater than $30 and less than or equal to $50, limit such cannot be entered prior to the orders to buy priced more than $2.00 above the an acceptable tick distance above the offer and limit orders to sell priced more than $2.00 derived net market using the Exchange’s opening on the System. Once a series below the bid; or (v) if the market quote is equal previous day’s close in the individual has opened, limit order price parameters to or greater than $50, limit orders to buy priced series legs comprising the complex will be applied to ISOs in all classes in more than $3.00 above the offer and limit order to which the limit order price parameter is sell priced more than $3.00 below the bid. See C2 order or priced at a net credit that is Regulatory Circular RG13–059, which is available at more than an acceptable tick distance activated.14 The Exchange may http://www.c2exchange.com/publish/RegCir_C2/ below the derived net market using the determine on a class by class basis and C2RG13–059.pdf. For the same classes, the Exchange’s previous day’s close in the announce via Regulatory Circular Exchange has determined that limit orders received whether to apply the parameters in (i) before a series is in opened will be checked against individual series legs comprising the the previous trading day’s closing price using the complex order (such ATD will be as and/or (ii) above to immediate-or-cancel same parameters noted above. Exchange Market determined by the Exchange on a class complex orders (similar to the Maker and away Market Maker orders received pre- by class and net premium basis and discussion above for simple orders). The open are excluded from this pre-open limit order Exchange also notes that the limit order price parameter. The foregoing limit order price announced via Regulatory Circular); or parameters are in effect in all classes except options (ii) once a series has opened, priced at price parameter will not be applicable to on Apple Inc. (AAPL). There are no limit order a net debit that is more than an stock-option orders.15 The Exchange price parameters currently activated for option class also proposes several non-substantive AAPL. See id. According to the Exchange, volume changes within Interpretation and for options class AAPL is higher and trading is herein as the ‘‘Standing Intraday Relief Condition’’). more volatile, while the price of the underlying See C2 Regulatory Circular C2 RG13–059. The next Policy .04 to Rule 6.13 to abbreviate the stock is higher (e.g., Apple Inc. closed at $125.69 trading day, the limit order price parameter levels terms ‘‘acceptable price range’’ and on July 7, 2015). The Exchange believes that would revert back to the normal setting, unless the ‘‘acceptable tick distance’’ where application of the limit order price parameter in E-mini S&P 500 Future is more than 20 points above or below the previous day’s closing values by appropriate for consistency purposes. these circumstances may serve as more of a hindrance to the orderly processing orders (e.g., 8:00 a.m. Similar to simple orders, the ATD for application of the parameter may result in an Example of Standing Intraday Relief Condition: If the limit order price parameter for inordinate number of orders being excepted from on Monday the E-mini S&P 500 Futures close at complex orders will be no less than 5 automated process and instead routing for manual 1700 and by 8:00 a.m. on Tuesday the E-mini S&P handling) and, as a result, has determined to not 500 Future is trading at 1730 (30 points above the 13 In accordance with the existing provisions of apply the parameters to option class AAPL for the prior day’s close of 1700), then the Exchange would Rule 6.13.01, all pronouncements regarding time being. However, the Exchange may evaluate adjust the limit order price parameters to the wider determinations by the Exchange pursuant to whether to apply the parameters to the option class levels noted above. If the E-mini S&P 500 Futures proposed Rule 6.13.04(g) will be announced via and any determination to do so would be close on Tuesday at 1725 and by 8:00 a.m. on Regulatory Circular. announced via Regulatory Circular. Wednesday are trading at 1720 (only 5 points below 14 Should the Exchange, in the future, determine 11 For example, if an underlying stock is high the prior day’s close of 1725), then the limit order that, in the interests of fair and orderly markets or, priced or volatile and is experiencing significant price parameter settings would revert back to the in furtherance of the objectives of the Options Order price movement and the existing parameters would levels that were in place on Monday. However, if Protection and Locked/Crossed Market Plan, limit result in an inordinate number of limit orders not by 8:00 a.m. on Wednesday the E-mini S&P 500 order price parameters should be applied to ISOs being accepted, the senior official in the Help Desk Futures are trading at 1700 (25 points below the (or another order type) in a different manner as may determine to widen the parameters on an intra- prior day’s close of 1725), then the limit order price other order types, the Exchange may determine to day basis in the overlying or related options series. parameter settings would remain at the levels that widen or narrow the ATDs with respect to ISOs (or See C2 Rule 6.17(B); see also C2 Regulatory Circular were in place on Tuesday. another order type), which would be announced via RG13–059, which is available at http:// The Exchange notes that these examples are non- Regulatory Circular. Should the Exchange, in the www.c2exchange.com/publish/RegCir_C2/C2RG13- exhaustive and for illustrative purposes only. The future, determine that, in the interests of fair and 059.pdf. As another example, if the overall market Exchange also notes that it may determine for the orderly markets or, in furtherance of the objectives is experiencing significant volatility, the senior parameters to differ among series and between pre- of the Options Order Protection and Locked/ official in the Help Desk may determine to widen open and intra-day. Crossed Market Plan, limit order price parameters the limit order price parameters for a series. In that 12 For example, assume the Exchange has should not apply to ISOs, a further rule filing would regard, the Exchange has determined that on any established drill through and limit order price ATD be required. trading day where the front-month E-mini S&P 500 settings as prescribed in notes 10 and 11 [sic], 15 Stock-options orders are excluded from the Futures (symbol ES/1) are trading more than 20 supra. If the market quote in a given series is $2.15– calculation because the individual component stock tkelley on DSK3SPTVN1PROD with NOTICES points above or below the previous day’s closing $2.55 and an incoming limit order to buy is priced leg is not traded on the Exchange and, as a result, values by 8:00 a.m. (all times noted are Central at $3.50 (more than $0.50 above the offer), the limit calculation of a derived net market by the Time), the Exchange will widen the limit order order price ATD will be triggered and the Exchange Exchange’s automated system would be a more price parameter levels from $0.50, $1.00, $1.50, will not accept the limit order for execution. The complicated function. If in the future the Exchange $2.00 and $3.00 as set out in note 10, supra, to drill through parameter would not apply (the drill would decide to enhance the limit order price $1.00, $2.00, $3.00, $4.00 and $6.00, respectively, through ATD parameter would only be considered parameter functionality to address stock-option for the trading day for all series where the limit if the limit order price ATD parameter is not orders, the Exchange would file a rule change to order price parameter is activated (referred to triggered). address stock-option orders. VerDate Sep<11>2014 17:33 Jul 28, 2015 Jkt 235001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\29JYN1.SGM 29JYN1

45262 Federal Register / Vol. 80, No. 145 / Wednesday, July 29, 2015 / Notices minimum net price increment ticks their orders at or near the Exchange’s make clear that the senior official in the (where the ‘‘minimum net price market. A limit order that is priced Help Desk can grant relief by widening increment’’ is the minimum increment significantly through the Exchange’s or inactivating the applicable APR and/ for net priced bids and offers for the market could be indicative of an error or ATD setting. The Exchange believes given complex order strategy). For (e.g., mistake in intended price, series, including the reference to inactivating example, if the minimum net price put/call) and could result in executions the applicable settings is not substantive increment for complex orders in a given occurring at prices that have little or no because an applicable APR or ATD series in a class is $0.01, then the ATD relation to the theoretical price of the parameter could be widened to such a would be no less than $0.05 (5 × $0.01). option. Accordingly, the Exchange level that it would be in effect inactive. If the minimum net price increment is believes the limit order price parameter The Exchange is also proposing to $0.05, then the ATD would be no less is a mechanism that will help prevent provide within the rule text that the than $0.25 (5 × $0.05). Also similar to the entry of erroneous orders, dramatic intra-day relief granted by the senior simple orders, the Exchange might price swings and, potentially, official in the Help Desk will not extend widen or inactivate limit order price executions qualifying as obvious beyond the trade day on which it is parameter for complex orders for one or errors 19 on C2. The Exchange also more classes on an intra-day basis in the believes that orders that are significantly granted, unless a determination to interest of a fair and orderly market.16 priced through the market have the extend such relief if announced to TPHs The limit order price parameter will potential to create market volatility by via Regulatory Circular.20 The Exchange take precedence over another complex trading at different price levels until is also proposing to provide within the order parameter to the extent that both executed in their entirety. As such, the rule text that the Exchange will make are applicable to an incoming limit Exchange believes the limit order price and keep records to document all order.17 parameter may also help limit volatility. determinations to grant intra-day relief The Exchange is also proposing a Second, the Exchange is proposing under Rule 6.17, and shall maintain miscellaneous change to Rule 6.13.04 to various miscellaneous changes to the those records in accordance with Rule specifically identify the price check existing text in Rule 6.17. In particular, 17a–1 under the Act.21 The rule text parameters that are not applicable to the Exchange is proposing to include a will also provide that the Exchange will stock-option orders in the introductory title for each type of price check periodically review determinations to text to this provision. The particular parameter within the rule text (i.e., for grant intra-day relief for consistency parameters to which stock-option orders the existing market width parameters, with the interest of a fair and orderly may be subjected are already identified the existing drill through parameters, market. Finally, the Exchange notes that within the rule text. This proposed and the proposed limit order price the same intra-day relief provisions are change is simply to include a list of parameters). The addition of these titles proposed to apply to the limit order those parameters which are not is non-substantive and is intended for price parameter provisions for complex applicable to stock-option orders in the ease of reference only. In addition, the orders in proposed Rule 6.13.04(g). introductory paragraph for ease of Exchange is proposing to replace the reference.18 ‘‘class-by-class basis’’ reference in 2. Statutory Basis The Exchange notes that the limit proposed Rule 6.17(c) with ‘‘series by series and premium basis’’ to provide The proposed rule change is order price parameter for simple and complex is intended to protect market consistency within the Rules and reflect consistent with Section 6(b) of the Act 22 participants from executions of limit the fact that the APR for a simple order in general and furthers the objectives of orders at prices that are significantly will apply on a series by series basis to Section 6(b)(5) of the Act 23 in through the Exchange’s market (i.e., no the single series involved in the order particular, which requires that the rules less than five minimum increment ticks and be determined on a premium basis of an exchange be designed to promote for simple orders and no less than five in relation to the bid-ask differential in just and equitable principles of trade, to minimum net price increment ticks for that series. For the same reasons, the prevent fraudulent and manipulative complex orders). The Exchange believes Exchange proposes to add the term ‘‘and acts, to remove impediments to and to that TPHs that submit orders on C2 premium’’ to proposed Rule 6.17(a)(1) perfect the mechanism of a free and generally intend to receive executions of regarding market width parameters. The open market and a national market Exchange is also renumbering Rule 6.17 16 See also note 11, supra. and clarifying existing references to 20 The Exchange notes that conditions when the 17 Rule 6.13.04 sets forth various price check APR and ATD as references to the Standing Intraday Relief will be instituted and the parameters applicable to complex orders. For each existing market width APR and drill particular form of relief have been announced via price check parameter that may be applicable to Regulatory Circular. See note 11, supra. The through ATD for ease of reference. announcement of the pre-established conditions incoming limit orders—except the market width parameter—the system will not accept or will The existing text of Rule 6.17 also and relief is intended to serve the circular return the order back to the order entry firm if the provides that the senior official in the notification requirement and, as such, a separate parameter is triggered. If the market width Help Desk may grant intra-day relief by circular would not be issued if this relief is parameter is triggered, an incoming (or resting) instituted over multiple days. However, if the widening the APR or ATD settings for Exchange would determine to modify the marketable limit order will be held in the system, displayed in the complex order book if applicable, one or more option series and that conditions for Standing Intraday Relief, then the and not be eligible for automatic execution until the notification of intraday relief will be Exchange would announce those changes by issuing market width condition is resolved. See Rule announced via message to Trading another Regulatory Circular. 21 17 CFR 240.17a-1. The Exchange notes that 6.13.04. In the instance where both the limit order Permit Holders that request to receive price parameter and another parameter are determinations to grant intra-day relief under Rule applicable, the limit order price parameter takes such messages. The Exchange is 6.17 will be made in compliance with the tkelley on DSK3SPTVN1PROD with NOTICES precedence (i.e., is applied first) before the other proposing to amend this provision to provisions of the Act and the rules thereunder, parameter is applied. add that such intra-day relief may be including, but not limited to, the requirements in 18 Specifically, paragraphs (b) (credit-to-debit granted in the interest of a fair and Section 6(b)(5) of the Act, 15 U.S.C. 78f(b), that the parameters), (c) (same expiration strategy rules of a national securities exchange not be orderly market. The Exchange is also designed to permit unfair discrimination between parameters), (e) (percentage distance parameters) and proposed paragraph (g) (limit order price proposing to amend this provision to customers, issuers, brokers, or dealers. 22 15 U.S.C. 78f(b). parameters) of Rule 6.13.04 are not applicable to stock-option orders. 19 See C2 Rule 6.15. 23 15 U.S.C. 78f(b)(5). 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Federal Register / Vol. 80, No. 145 / Wednesday, July 29, 2015 / Notices 45263 system, and, in general, to protect reference from class by class to series by pre-opening market and utilize their investors and the public interest. series; to make clear that intra-day relief own risk management parameters when The Exchange believes the proposed may be granted in the interest of a fair entering, maintaining (and cancelling) rule change furthers the objective of and orderly market and may include orders prior to the opening, minimizing Section 6(b)(5) of the Act in that it widening or inactivating the applicable the likelihood of a Market-Maker order permits the Exchange to address the APR and/or ATD; and to include resulting an error from being entered entry of simple and complex limit provisions indicating that intra-day and continuing to rest prior to the orders that are priced significantly away relief may not extend beyond the trade opening of trading. from the market that are likely to have day on which it is granted, unless a C. Self-Regulatory Organization’s resulted from human or operational determination to extend such relief is Statement on Comments on the error.24 By being able to quickly and announced to Trading Permit Holders Proposed Rule Change Received From efficiently reject orders that likely via Regulatory Circular, and that the Members, Participants, or Others resulted from such error, the proposed Exchange will make and keep records to use of the limit order price parameter document determinations to grant intra- No written comments were solicited would promote a fair and orderly day relief under Rule 6.17) should also or received with respect to the proposed market. Additionally, by having the serve to further these objectives by more rule change. flexibility to determine the series or clearly and fully describing certain III. Date of Effectiveness of the classes where the limit order price aspects of the operation of these price Proposed Rule Change and Timing for parameter would be applied (or not check parameters and addressing Commission Action applied) and the levels at which the determinations to modify the operation of the price check parameters on an The Exchange has filed the proposed ATD settings would be applied, and to rule change pursuant to Section grant relief on an intra-day basis, the intra-day basis as provided within Rule 6.17. For the same reason, Exchange 19(b)(3)(A)(iii) of the Act 26 and Rule Exchange is able to effectively structure 19b–4(f)(6) thereunder.27 Because the and efficiently react to particular option believes the substantially similar intra- day relief provisions for complex orders proposed rule change does not: (i) characteristics and market conditions— Significantly affect the protection of including (without limitation) price, in proposed Rule 6.13.04(g) should also serve to further these objectives. The investors or the public interest; (ii) volatility, and significant price impose any significant burden on movements—which contributes to its Exchange also believes that the proposed change to the introductory competition; and (iii) become operative ability to maintain a fair and orderly for 30 days from the date on which it market. Accordingly, the Exchange paragraph to Rule 6.13.04 to specifically identify the price check parameters that was filed, or such shorter time as the believes that this proposal is designed to Commission may designate, if promote just and equity principles of are not applicable to stock-option orders should also serve to further these consistent with the protection of trade, remove impediments to, and investors and the public interest, the perfect the mechanism of, a free and objectives by making the rule easier to read and navigate. proposed rule change has become open market.25 effective pursuant to Section 19(b)(3)(A) The Exchange also believes that the B. Self-Regulatory Organization’s of the Act 28 and Rule 19b–4(f)(6) other proposed changes to Rule 6.17 Statement on Burden on Competition thereunder.29 (e.g., to include titles for the various A proposed rule change filed under The Exchange does not believe that price check parameters; to change a the proposed rule change will impose Rule 19b–4(f)(6) 30 normally does not 24 The Exchange believes that these principles are any burden on competition that is not become operative prior to 30 days after equally applicable to ISOs. In an effort to protect necessary or appropriate in furtherance the date of the filing. However, pursuant market participants from the consequences of such of the purposes of the Act. The to Rule 19b–4(f)(6)(iii),31 the order entry errors and prevent market disruptions Exchange believes that the proposed Commission may designate a shorter that may be caused by erroneously placed orders, rule change will promote competition in time if such action is consistent with the the Exchange has determined to apply limit order price parameters to ISOs on the Exchange. The that the limit order price parameters protection of investors and the public Exchange believes that applying limit order price provide market participants with interest. The Exchange has asked the parameters to ISOs serves to protect investors and additional protection from anomalous Commission to waive the 30-day is consistent with Section 6(b) of the Act. trading. Thus, the Exchange does not operative delay so that the proposed 25 The Exchange notes that limit order price believe the proposal creates any rule change may become operative parameters are in effect in all classes except options on Apple Inc. (AAPL). There are no limit order significant impact on competition. immediately. According to the price parameters currently activated for option class The price check parameter features Exchange, the proposed rule change will AAPL. See C2 Regulatory Circular RG13–059, are intended to prevent executions at provide additional protections against which is available at http://www.c2exchange.com/ potentially erroneously prices, which publish/RegCir_C2/C2RG13-059.pdf. According to the execution of limit orders that are the Exchange, volume for options class AAPL is should serve to promote a fair and priced significantly away from the higher and trading is more volatile, while the price orderly market and promote trading market as a result of human or of the underlying stock is higher (e.g., Apple Inc. activity on the Exchange to the benefit closed at $125.69 on July 7, 2015). The Exchange of the Exchange, its TPHs, and market 26 15 U.S.C. 78s(b)(3)(A)(iii). believes that application of the limit order price parameters in these circumstances may serve as participants. The Exchange notes that 27 17 CFR 240.19b–4(f)(6). more of a hindrance to the orderly processing the limit order price parameters are 28 15 U.S.C. 78s(b)(3)(A). 29 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– orders (e.g., application of the parameter may result applied equally to all eligible limit in an inordinate number of orders being excepted 4(f)(6)(iii) requires the Exchange to give the orders, with the limited exception that Commission written notice of the Exchange’s intent from automated process and instead routing for tkelley on DSK3SPTVN1PROD with NOTICES manual handling) and, as a result, has determined the parameters do not apply to limit to file the proposed rule change, along with a brief to not apply the parameters to option class AAPL orders for Exchange Market-Makers and description and text of the proposed rule change, for the time being. The Exchange believes that away Market-Makers entered prior to at least five business days prior to the date of filing because of these factors different treatment of the of the proposed rule change, or such shorter time the opening. The Exchange believes this as designated by the Commission. The Exchange AAPL class is warranted. However, the Exchange may evaluate whether to apply the parameters to does not place an undue burden on has satisfied this requirement. the option class and any determination to do so competition as the Exchange believes 30 17 CFR 240.19b–4(f)(6). would be announced via Regulatory Circular. that Market-Makers actively evaluate the 31 17 CFR 240.19b–4(f)(6)(iii). VerDate Sep<11>2014 17:33 Jul 28, 2015 Jkt 235001 PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 E:\FR\FM\29JYN1.SGM 29JYN1

45264 Federal Register / Vol. 80, No. 145 / Wednesday, July 29, 2015 / Notices operational error. In addition, C2’s change that are filed with the SUPPLEMENTARY INFORMATION: Notice is proposed changes to allow flexibility in Commission, and all written hereby given that as a result of the setting the ATD for a particular option communications relating to the President’s major disaster declaration on class or series and to grant intra-day proposed rule change between the 07/22/2015, Private Non-Profit relief in the interest of a fair and orderly Commission and any person, other than organizations that provide essential market should provide the Exchange those that may be withheld from the services of governmental nature may file with the ability to address particular public in accordance with the disaster loan applications at the address option characteristics and markets provisions of 5 U.S.C. 552, will be listed above or other locally announced conditions. Accordingly, the available for Web site viewing and locations. Commission finds that waiving the 30- printing in the Commission’s Public The following areas have been day operative delay is consistent with Reference Room, 100 F Street NE., determined to be adversely affected by the protection of investors and the Washington, DC 20549 on official the disaster: public interest and hereby designates business days between the hours of 10 Primary Counties: Atlantic, Burlington, the proposal operative upon filing.32 a.m. and 3 p.m. Copies of such filing Camden, Gloucester. At any time within 60 days of the also will be available for inspection and The Interest Rates are: filing of the proposed rule change, the copying at the principal offices of the Commission summarily may Exchange. All comments received will Percent temporarily suspend such rule change if be posted without change; the it appears to the Commission that such Commission does not edit personal For Physical Damage: action is necessary or appropriate in the identifying information from Non-Profit Organizations with public interest, for the protection of submissions. You should submit only Credit Available Elsewhere ... 2.625 investors, or otherwise in furtherance of information that you wish to make Non-Profit Organizations with- the purposes of the Act. If the available publicly. All submissions out Credit Available Else- where ..................................... 2.625 Commission takes such action, the should refer to File Number SR–C2– For Economic Injury: Commission shall institute proceedings 2015–021, and should be submitted on Non-Profit Organizations with- to determine whether the proposed rule or before August 19, 2015. out Credit Available Else- change should be approved or For the Commission, by the Division of where ..................................... 2.625 disapproved. Trading and Markets, pursuant to delegated IV. Solicitation of Comments authority.33 The number assigned to this disaster Robert W. Errett, for physical damage is 14385B and for Interested persons are invited to Deputy Secretary. economic injury is 14386B. submit written data, views, and [FR Doc. 2015–18540 Filed 7–28–15; 8:45 am] (Catalog of Federal Domestic Assistance arguments concerning the foregoing, Numbers 59002 and 59008) BILLING CODE 8011–01–P including whether the proposed rule change is consistent with the Act. James E. Rivera, Comments may be submitted by any of Associate Administrator for Disaster the following methods: SMALL BUSINESS ADMINISTRATION Assistance. [Disaster Declaration #14385 and #14386] [FR Doc. 2015–18556 Filed 7–28–15; 8:45 am] Electronic Comments BILLING CODE 8025–01–P • Use the Commission’s Internet New Jersey Disaster #NJ–00011 comment form (http://www.sec.gov/ rules/sro.shtml); or AGENCY: U.S. Small Business SMALL BUSINESS ADMINISTRATION • Send an email to rule-comments@ Administration. sec.gov. Please include File Number SR– ACTION: Notice. [Disaster Declaration #14371 and #14372] C2–2015–021 on the subject line. SUMMARY: This is a Notice of the Louisiana Disaster Number LA–00009 Paper Comments Presidential declaration of a major disaster for Public Assistance Only for AGENCY: U.S. Small Business • Send paper comments in triplicate Administration. the State of New Jersey (FEMA–4231– to Secretary, Securities and Exchange DR), dated 07/22/2015. ACTION: Amendment 1. Commission, 100 F Street NE., Incident: Severe storm. Washington, DC 20549–1090. Incident Period: 06/23/2015. SUMMARY: This is an amendment of the All submissions should refer to File Effective Date: 07/22/2015. Presidential declaration of a major Number SR–C2–2015–021. This file Physical Loan Application Deadline disaster for Public Assistance Only for number should be included on the Date: 09/21/2015. the State of Louisiana (FEMA–4228– subject line if email is used. To help the Economic Injury (EIDL) Loan DR), dated 07/13/2015. Commission process and review your Application Deadline Date: 04/22/2016. Incident: Severe Storms and Flooding. comments more efficiently, please use ADDRESSES: Submit completed loan Incident Period: 05/18/2015 through only one method. The Commission will applications to: U.S. Small Business 06/20/2015. post all comments on the Commission’s Administration, Processing and Effective Date: 07/21/2015. Internet Web site (http://www.sec.gov/ Disbursement Center, 14925 Kingsport Physical Loan Application Deadline rules/sro.shtml). Copies of the Road, Fort Worth, TX 76155. Date: 09/11/2015. submission, all subsequent Economic Injury (EIDL) Loan tkelley on DSK3SPTVN1PROD with NOTICES FOR FURTHER INFORMATION CONTACT: A. amendments, all written statements Escobar, Office of Disaster Assistance, Application Deadline Date: 04/13/2016. with respect to the proposed rule U.S. Small Business Administration, ADDRESSES: Submit completed loan 32 For purposes only of waiving the 30-day 409 3rd Street SW., Suite 6050, applications to: U.S. Small Business operative delay, the Commission has considered the Washington, DC 20416 Administration Processing and proposed rule’s impact on efficiency, competition, Disbursement Center, 14925 Kingsport and capital formation. See 15 U.S.C. 78c(f). 33 17 CFR 200.30–3(a)(12), (59). Road, Fort Worth, TX 76155. VerDate Sep<11>2014 17:33 Jul 28, 2015 Jkt 235001 PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 E:\FR\FM\29JYN1.SGM 29JYN1


Document Created: 2015-12-15 13:05:59
Document Modified: 2015-12-15 13:05:59
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 45259 
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