80 FR 8719 - Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 32 (February 18, 2015)

Page Range		8719-8720
FR Document		2015-03225
Federal Register, Volume 80 Issue 32 (Wednesday, February 18, 2015)
[Federal Register Volume 80, Number 32 (Wednesday, February 18, 2015)]
[Notices]
[Pages 8719-8720]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03225]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74252; File No. SR-C2-2015-002]


Self-Regulatory Organizations; C2 Options Exchange, Incorporated; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Amend the Fees Schedule

February 11, 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 February 2, 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, II, and III 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 its Fees Schedule. The text of the 
proposed rule change is available on the Exchange's Web site (http://www.c2exchange.com/Legal/), at the Exchange's Office of the Secretary, 
and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

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

1. Purpose
    The Exchange proposes making certain amendments to the PULSe 
Workstation (``PULSe'') fees. By way of background, the Exchange 
charges a fee of $400 per month per Permit Holder workstation for the 
first 10 users and $100 per month for all subsequent users. Permit 
Holders may also make the functionality available to their customers, 
which may include non-broker dealer public customers and non-Permit 
Holder broker dealers (referred to herein as ``non-Permit Holders''). 
For such non-Permit Holder workstations, the Exchange charges a fee of 
$400 per month per workstation.
    The Exchange first proposes to clarify and make explicit that the 
PULSe fees are assessed on a ``per login ID'' basis. Currently, the 
Fees Schedule states that the monthly fee for PULSe Permit Holder 
workstations is ``$400/month (per Permit Holder workstation for the 
first 10)'' and ``$100/month (per each additional Permit Holder 
workstation)'' and for PULSe non-Permit Holder workstations ``$400/
month (per non-Permit Holder workstation).'' The Exchange believes the 
current language, and the use of the term ``workstation'', may be 
confusing to market participants. As such, the Exchange seeks to make 
clear in the Fees Schedule that the PULSe fees are assessed per login 
Id [sic]. The Exchange notes that this proposed change is merely a 
clarification and that no substantive changes are being made to how 
PULSe fees are assessed.
    Next, the Exchange proposes to provide that the $400 per month, per 
login ID fee will be applicable to the first 15 login IDs (instead of 
the first 10). The Exchange expended significant resources developing 
PULSe, and seeks to recoup more of those costs.
    Finally, the Exchange seeks to remove outdate [sic] language from 
the PULSe section of the Fees Schedule. Currently, the Fees Schedule 
provides that the PULSe Workstation fee is waived for the first month 
for the first new user of a Permit Holder and non-Permit Holder, 
respectively. Additionally, the Fees Schedule provides that the fee is 
waived for the first two months for all new users between August 1, 
2014 and December 31, 2014, and that the fee is waived for the month of 
August 2014 for all users that became new users in July 2014. As the 
above referenced waiver periods have since passed, the Exchange no 
longer believes this language is necessary to maintain in the Fees 
Schedule. The Exchange notes that the fee will continue to be waived 
for the first month of the first new user of a Permit Holder or non-
Permit Holder.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\3\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \4\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and facilitation 
transactions in securities, to remove impediments to and perfect the 
mechanism of a free and open market and a national market system, and, 
in general, to protect investors and the public interest. Additionally, 
the Exchange believes the proposed rule change is consistent with 
Section 6(b)(4) of the Act,\5\ which requires that Exchange rules 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its Trading Permit Holders and other persons using 
its facilities.
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    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
    \5\ 15 U.S.C. 78f(b)(4).
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    In particular, the Exchange always strives for clarity in its rules 
and Fees Schedule, so that market participants may best understand how 
rules and fees apply. The Exchange believes that the proposed 
clarifications and removal of outdated language in the Fees Schedule 
will make the Fees Schedule easier to read and alleviate potential 
confusion. The alleviation of potential confusion will remove 
impediments to and perfect the mechanism of a free and open market and 
a national market system, and, in general, protect investors and the 
public interest.
    The Exchange believes assessing the $400 per month, per login ID 
fee to the first 15 login IDs (instead of the first 10) is reasonable 
because the Exchange expended significant resources developing PULSe 
and desires to recoup more of those costs. The Exchange believes this 
proposed rule change is equitable and not unfairly discriminatory 
because all Permit Holders who desire to use PULSe will be subject to 
this change.

[[Page 8720]]

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 proposed changes to 
alleviate confusion are not intended for competitive reasons and only 
apply to C2. Additionally, the Exchange does not believe the proposed 
change to assess the PULSe login Id [sic] fee to the first 15 login Ids 
[sic] of a Permit Holder will impose any burden on intramarket 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act because the proposed change applies to all Permit 
Holders. The Exchange believes this proposal will not cause an 
unnecessary burden on intermarket competition because the proposed 
change was not motivated by intermarket competition. To the extent that 
the proposed changes make C2 a more attractive marketplace for market 
participants at other exchanges, such market participants are welcome 
to become C2 market participants.

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

    The Exchange neither solicited nor received comments on the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \6\ and paragraph (f) of Rule 19b-4 \7\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission will institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-C2-2015-002 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-C2-2015-002. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-C2-2015-002 and should be 
submitted on or before March 11, 2015.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Brent J. Fields,
Secretary.
[FR Doc. 2015-03225 Filed 2-17-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices 8719

For the Commission, by the Division of A. Self-Regulatory Organization’s necessary to maintain in the Fees
Trading and Markets, pursuant to delegated Statement of the Purpose of, and Schedule. The Exchange notes that the
authority.14 Statutory Basis for, the Proposed Rule fee will continue to be waived for the
Brent J. Fields, Change first month of the first new user of a
Secretary. Permit Holder or non-Permit Holder.
1. Purpose
[FR Doc. 2015–03228 Filed 2–17–15; 8:45 am]
The Exchange proposes making 2. Statutory Basis
BILLING CODE 8011–01–P
certain amendments to the PULSe The Exchange believes the proposed
Workstation (‘‘PULSe’’) fees. By way of rule change is consistent with the
SECURITIES AND EXCHANGE background, the Exchange charges a fee Securities Exchange Act of 1934 (the
COMMISSION of $400 per month per Permit Holder ‘‘Act’’) and the rules and regulations
workstation for the first 10 users and thereunder applicable to the Exchange
[Release No. 34–74252; File No. SR–C2– $100 per month for all subsequent users. and, in particular, the requirements of
2015–002]
Permit Holders may also make the Section 6(b) of the Act.3 Specifically,
Self-Regulatory Organizations; C2 functionality available to their the Exchange believes the proposed rule
Options Exchange, Incorporated; customers, which may include non- change is consistent with the Section
Notice of Filing and Immediate broker dealer public customers and non- 6(b)(5) 4 requirements that the rules of
Effectiveness of a Proposed Rule Permit Holder broker dealers (referred to an exchange be designed to prevent
Change To Amend the Fees Schedule herein as ‘‘non-Permit Holders’’). For fraudulent and manipulative acts and
such non-Permit Holder workstations, practices, to promote just and equitable
February 11, 2015. the Exchange charges a fee of $400 per principles of trade, to foster cooperation
Pursuant to Section 19(b)(1) of the month per workstation. and coordination with persons engaged
Securities Exchange Act of 1934 (the The Exchange first proposes to clarify in regulating, clearing, settling,
‘‘Act’’),1 and Rule 19b–4 thereunder,2 and make explicit that the PULSe fees processing information with respect to,
notice is hereby given that on February are assessed on a ‘‘per login ID’’ basis. and facilitation transactions in
2, 2015, C2 Options Exchange, Currently, the Fees Schedule states that securities, to remove impediments to
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) the monthly fee for PULSe Permit and perfect the mechanism of a free and
filed with the Securities and Exchange Holder workstations is ‘‘$400/month open market and a national market
Commission (the ‘‘Commission’’) the (per Permit Holder workstation for the system, and, in general, to protect
proposed rule change as described in first 10)’’ and ‘‘$100/month (per each investors and the public interest.
Items I, II, and III below, which Items additional Permit Holder workstation)’’ Additionally, the Exchange believes the
have been prepared by the Exchange. and for PULSe non-Permit Holder proposed rule change is consistent with
The Commission is publishing this workstations ‘‘$400/month (per non- Section 6(b)(4) of the Act,5 which
notice to solicit comments on the Permit Holder workstation).’’ The requires that Exchange rules provide for
proposed rule change from interested Exchange believes the current language, the equitable allocation of reasonable
persons. and the use of the term ‘‘workstation’’, dues, fees, and other charges among its
may be confusing to market Trading Permit Holders and other
I. Self-Regulatory Organization’s participants. As such, the Exchange persons using its facilities.
Statement of the Terms of Substance of seeks to make clear in the Fees Schedule In particular, the Exchange always
the Proposed Rule Change that the PULSe fees are assessed per strives for clarity in its rules and Fees
The Exchange proposes to amend its login Id [sic]. The Exchange notes that Schedule, so that market participants
Fees Schedule. The text of the proposed this proposed change is merely a may best understand how rules and fees
rule change is available on the clarification and that no substantive apply. The Exchange believes that the
Exchange’s Web site (http:// changes are being made to how PULSe proposed clarifications and removal of
www.c2exchange.com/Legal/), at the fees are assessed. outdated language in the Fees Schedule
Exchange’s Office of the Secretary, and Next, the Exchange proposes to will make the Fees Schedule easier to
at the Commission’s Public Reference provide that the $400 per month, per read and alleviate potential confusion.
Room. login ID fee will be applicable to the The alleviation of potential confusion
first 15 login IDs (instead of the first 10). will remove impediments to and perfect
II. Self-Regulatory Organization’s The Exchange expended significant the mechanism of a free and open
Statement of the Purpose of, and resources developing PULSe, and seeks market and a national market system,
Statutory Basis for, the Proposed Rule to recoup more of those costs. and, in general, protect investors and
Change Finally, the Exchange seeks to remove the public interest.
In its filing with the Commission, the outdate [sic] language from the PULSe The Exchange believes assessing the
Exchange included statements section of the Fees Schedule. Currently, $400 per month, per login ID fee to the
concerning the purpose of and basis for the Fees Schedule provides that the first 15 login IDs (instead of the first 10)
the proposed rule change and discussed PULSe Workstation fee is waived for the is reasonable because the Exchange
any comments it received on the first month for the first new user of a expended significant resources
proposed rule change. The text of these Permit Holder and non-Permit Holder, developing PULSe and desires to recoup
statements may be examined at the respectively. Additionally, the Fees more of those costs. The Exchange
places specified in Item IV below. The Schedule provides that the fee is waived believes this proposed rule change is
emcdonald on DSK67QTVN1PROD with NOTICES

Exchange has prepared summaries, set for the first two months for all new equitable and not unfairly
forth in sections A, B, and C below, of users between August 1, 2014 and discriminatory because all Permit
the most significant aspects of such December 31, 2014, and that the fee is Holders who desire to use PULSe will
statements. waived for the month of August 2014 for be subject to this change.
all users that became new users in July
14 17 CFR 200.30–3(a)(12). 2014. As the above referenced waiver 3 15 U.S.C. 78f(b).
1 15 U.S.C. 78s(b)(1). periods have since passed, the Exchange 4 15 U.S.C. 78f(b)(5).
2 17 CFR 240.19b–4. no longer believes this language is 5 15 U.S.C. 78f(b)(4).

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8720 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices

B. Self-Regulatory Organization’s Comments may be submitted by any of SECURITIES AND EXCHANGE
Statement on Burden on Competition the following methods: COMMISSION
The Exchange does not believe that Electronic Comments [Release No. 34–74247; File No. SR–BATS–
the proposed rule change will impose 2014–09]
any burden on competition that is not • Use the Commission’s Internet
necessary or appropriate in furtherance comment form (http://www.sec.gov/ Self-Regulatory Organizations; BATS
of the purposes of the Act. The rules/sro.shtml); or Exchange, Inc.; Notice of Filing of a
proposed changes to alleviate confusion • Send an email to rule- Proposed Rule Change To Amend
are not intended for competitive reasons comments@sec.gov. Please include File Rules 11.9, 11.12, and 11.13 of BATS
and only apply to C2. Additionally, the Number SR–C2–2015–002 on the Exchange, Inc.
Exchange does not believe the proposed subject line.
change to assess the PULSe login Id [sic] February 11, 2015.
fee to the first 15 login Ids [sic] of a Paper Comments Pursuant to Section 19(b)(1) of the
Permit Holder will impose any burden Securities Exchange Act of 1934 (the
on intramarket competition that is not • Send paper comments in triplicate ‘‘Act’’),1 and Rule 19b–4 thereunder,2
necessary or appropriate in furtherance to Brent J. Fields, Secretary, Securities notice is hereby given that on January
of the purposes of the Act because the and Exchange Commission, 100 F Street 30, 2015, BATS Exchange, Inc. (the
proposed change applies to all Permit NE., Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘BATS’’) filed with the
Holders. The Exchange believes this All submissions should refer to File Securities and Exchange Commission
proposal will not cause an unnecessary Number SR–C2–2015–002. This file (‘‘Commission’’) the proposed rule
burden on intermarket competition number should be included on the change as described in Items I, II and III
because the proposed change was not subject line if email is used. To help the below, which Items have been prepared
motivated by intermarket competition. Commission process and review your by the Exchange. The Commission is
To the extent that the proposed changes comments more efficiently, please use publishing this notice to solicit
make C2 a more attractive marketplace only one method. The Commission will comments on the proposed rule change
for market participants at other from interested persons.
post all comments on the Commission’s
exchanges, such market participants are Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s
welcome to become C2 market rules/sro.shtml). Copies of the Statement of the Terms of the Substance
participants. submission, all subsequent of the Proposed Rule Change
C. Self-Regulatory Organization’s amendments, all written statements The Exchange filed a proposal to
Statement on Comments on the with respect to the proposed rule amend Rules 11.9, 11.12, and 11.13 to
Proposed Rule Change Received From change that are filed with the clarify and to include additional
Members, Participants, or Others Commission, and all written specificity regarding the current
communications relating to the functionality of the Exchange’s System,3
The Exchange neither solicited nor
proposed rule change between the including the operation of its order
received comments on the proposed
Commission and any person, other than types and order instructions, as further
rule change.
those that may be withheld from the described below.
III. Date of Effectiveness of the public in accordance with the The text of the proposed rule change
Proposed Rule Change and Timing for provisions of 5 U.S.C. 552, will be is available at the Exchange’s Web site
Commission Action available for Web site viewing and at www.batstrading.com, at the
The foregoing rule change has become printing in the Commission’s Public principal office of the Exchange, and at
effective pursuant to Section 19(b)(3)(A) Reference Room, 100 F Street NE., the Commission’s Public Reference
of the Act 6 and paragraph (f) of Rule Washington, DC 20549 on official Room.
19b–4 7 thereunder. At any time within business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the II. Self-Regulatory Organization’s
60 days of the filing of the proposed rule Statement of the Purpose of, and
change, the Commission summarily may filing also will be available for
inspection and copying at the principal Statutory Basis for, the Proposed Rule
temporarily suspend such rule change if Change
it appears to the Commission that such office of the Exchange. All comments
action is necessary or appropriate in the received will be posted without change; In its filing with the Commission, the
public interest, for the protection of the Commission does not edit personal Exchange included statements
investors, or otherwise in furtherance of identifying information from concerning the purpose of and basis for
the purposes of the Act. If the submissions. You should submit only the proposed rule change and discussed
Commission takes such action, the information that you wish to make any comments it received on the
Commission will institute proceedings available publicly. All submissions proposed rule change. The text of these
to determine whether the proposed rule should refer to File Number SR–C2– statements may be examined at the
change should be approved or 2015–002 and should be submitted on places specified in Item IV below. The
disapproved. or before March 11, 2015. Exchange has prepared summaries, set
For the Commission, by the Division of
forth in Sections A, B, and C below, of
IV. Solicitation of Comments the most significant parts of such
Trading and Markets, pursuant to delegated
emcdonald on DSK67QTVN1PROD with NOTICES

Interested persons are invited to authority.8 statements.
submit written data, views, and Brent J. Fields,
arguments concerning the foregoing, 1 15 U.S.C. 78s(b)(1).
including whether the proposed rule Secretary. 2 17 CFR 240.19b–4.
change is consistent with the Act. [FR Doc. 2015–03225 Filed 2–17–15; 8:45 am] 3 Exchange Rule 1.5(aa) defines ‘‘System’’ as ‘‘the

BILLING CODE 8011–01–P
electronic communications and trading facility
designated by the Board through which securities
6 15 U.S.C. 78s(b)(3)(A). orders of Users are consolidated for ranking,
7 17 CFR 240.19b–4(f). 8 17 CFR 200.30–3(a)(12). execution and, when applicable, routing away.’’

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Document Created: 2018-02-16 11:10:12
Document Modified: 2018-02-16 11:10:12
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 8719