81 FR 24153 - Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule to Amend the Fees Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 79 (April 25, 2016)
Federal Register Volume 81, Issue 79 (April 25, 2016)
| Page Range | 24153-24155 | |
| FR Document | 2016-09454 |
[Federal Register Volume 81, Number 79 (Monday, April 25, 2016)] [Notices] [Pages 24153-24155] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-09454] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77651; File No. SR-C2-2016-004] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule to Amend the Fees Schedule April 19, 2016. 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 April 11, 2016, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule. The text of the proposed rule change is available on the Exchange's Web site at (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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fees Schedule.\3\ Specifically, the Exchange proposes to adopt separate transaction fees and rebates for non-Penny option classes. By way of background, the Exchange began adding an additional 2,000 option classes the week of February 22, 2016. The Exchange notes that the additional classes are non-Penny option classes (i.e., each traded in nickel increments, as opposed to penny increments). As such, the Exchange proposes adopting fee and rebate rates for these classes that would be different than the current fees and rebates which would apply to Penny option classes only. --------------------------------------------------------------------------- \3\ The Exchange initially filed the proposed fee change on April 1, 2016 (SR-C2-2016-003). On April 11, 2016, the Exchange withdrew that filing and replaced it with SR-C2-2016-004. --------------------------------------------------------------------------- Specifically, the Exchange proposes to adopt the following rates for simple and complex orders in all equity, multiply-listed index, ETF and ETN non-Penny option classes. Listed rates are per contract. ------------------------------------------------------------------------ Maker Taker fee ------------------------------------------------------------------------ Public Customer................... ($.75) $.83 C2 Market-Maker................... (.68) .85 All Other Origins (Professional (.60) .88 Customer, Firm, Broker/Dealer, non-C2 Market-Maker, JBO, etc.).. [[Page 24154]] Trades on the Open................ .00 .00 ------------------------------------------------------------------------ The Exchange notes that the proposed fees are similar to those adopted on other Exchanges.\4\ --------------------------------------------------------------------------- \4\ See e.g., NYSE Arca Options Fee Schedule, which lists, for electronic executions in in non-Penny Pilot issues, (1) the standard Customer Maker rebate of $0.75 versus a Taker fee of $0.85, (2) the standard Market Maker rebate of $0.05 versus a Taker fee of $0.99, and (3) the standard Firm and Broker Dealer Maker fee of $0.50 versus a Taker fee of $0.99. See also, ISE Gemini Schedule of Fees, which lists for executions in Non-Penny symbols, (1) the standard Customer Maker rebate of between $0.75 to $0.85 versus a Taker fee between $0.81 to $0.82, (2) the standard Market Maker rebate between $0.40 to $0.49 versus a Taker fee of $0.89, and (3) the standard Firm and Broker Dealer Maker rebate between $0.25 to $0.65 versus a Taker fee of $0.89. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\5\ Specifically, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\6\ 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. In particular, the Exchange's proposal to adopt fees and rebates for non-Penny option classes is reasonable because the amounts proposed are similar to, and in line with, the rebates and fees for non-Penny option transactions at other Exchanges that use the Make-Take pricing structure.\7\ --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(4). \7\ See supra note 4. --------------------------------------------------------------------------- The Exchange believes that it is equitable and not unfairly discriminatory to assess lower fees to Public Customers as compared to other market participants and to provide higher rebates to Public Customers as compared to other market participants because Public Customer order flow enhances liquidity on the Exchange for the benefit of all market participants. Specifically, Public Customer liquidity benefits all market participants by providing more trading opportunities, which attracts Market-Makers. An increase in the activity of these market participants in turn facilitates tighter spreads, which may cause an additional corresponding increase in order flow from other market participants. Moreover, the options industry has a long history of providing preferential pricing to Public Customers. Finally, all fee and rebate amounts listed as applying to Public Customers will be applied equally to all Public Customers. The Exchange believes that it is equitable and not unfairly discriminatory to assess lower fees to Market-Makers as compared to other market participants other than Public Customers and provide higher rebates to Market-Makers as compared to other market participants other than Public Customers because Market-Makers, unlike other C2 market participants, take on a number of obligations, including quoting obligations, that other market participants do not have. Further, these lower fees and higher rebates offered to Market- Makers are intended to incent Market-Makers to quote and trade more on the Exchange, thereby providing more trading opportunities for all market participants. Finally, all fee and rebate amounts listed as applying to Market-Makers will be applied equally to all Market-Makers. The Exchange also believes it is equitable and not unfairly discriminatory to assess higher fees and lower rebates to all other origins (i.e., Professional Customer, Firm, Broker/Dealer, non-C2 Market-Maker, JBO, etc.). Particularly, the Exchange notes that it believes it's equitable and not unfairly discriminatory to assess a higher fee and lower rebate than it does of Market-Makers, because these market participants do not have the same obligations, such as quoting, as Market-Makers do. The Exchange believes it's equitable and not unfairly discriminatory to assess a higher fee and lower rebate than it does to Public Customers, because, as described above, there is a history of providing preferential pricing to Public Customers as Public Customer liquidity benefits all market participants by providing more trading opportunities. The Exchange notes that the proposed fee and rebate amounts listed will also be applied to each of these market participants (i.e., Professional Customers, Firms, Broker/Dealers, non- C2 Market-Makers, JBOs, etc. will be assessed the same amount). It should also be noted that all fee and rebate amounts described herein are intended to attract greater order flow to the Exchange, which should therefore serve to benefit all Exchange market participants. The Exchange believes it's reasonable, equitable and not unfairly discriminatory to assess no fees and offer no rebates for Trades on the Open because trades on the Open involve the matching of undisplayed pre-opening trading interest. As such, there is, in effect, no Maker or Taker activity occurring. Additionally, the Exchange would like to encourage users to submit pre-opening orders. The Exchange lastly believes it's equitable and not unfairly discriminatory to assess higher fees and rebates for non-Penny option classes than Penny option classes because Penny classes and non-Penny classes offer different pricing, liquidity, spread and trading incentives. The spreads in Penny classes are tighter than those in non- Penny classes (which trade in $0.05 increments). The wider spreads in non-Penny option classes allow for greater profit potential. Further, a number of options exchanges offer different pricing for Penny and non- Penny option classes.\8\ --------------------------------------------------------------------------- \8\ See e.g., NYSE Arca Options Fee Schedule and ISE Gemini Schedule of Fees. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition C2 does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because, while different fees and rebates are assessed to different market participants, these different market participants have different obligations and different circumstances (as described in the ``Statutory Basis'' section above). For example, Public Customers order flow, as discussed above, enhances liquidity on the Exchange for the benefit of all market participants. There is also a history in the options markets of providing preferential treatment to Public Customers. Additionally, Market-Makers have quoting obligations that other market participants do not have. The Exchange does not believe that the proposed change will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act [[Page 24155]] because it only applies to trading on the Exchange. Further, the proposed fee and rebate amounts are similar to those assessed for similar orders by other exchanges,\9\ and therefore should continue to encourage competition. Should the proposed change make C2 a more attractive trading venue for market participants at other exchanges, such market participants may elect to become market participants at C2 [sic] --------------------------------------------------------------------------- \9\ See supra note 4. --------------------------------------------------------------------------- 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 \10\ and paragraph (f) of Rule 19b-4 \11\ 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-C2-2016-004 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-C2-2016-004. 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-C2-2016-004, and should be submitted on or before May 16, 2016. --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-09454 Filed 4-22-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 79 / Monday, April 25, 2016 / Notices 24153
At any time within 60 days of the printing in the Commission’s Public I. Self-Regulatory Organization’s
filing of the proposed rule change, the Reference Room, 100 F Street NE., Statement of the Terms of Substance of
Commission summarily may Washington, DC 20549 on official the Proposed Rule Change
temporarily suspend such rule change if business days between the hours of The Exchange proposes to amend its
it appears to the Commission that such 10:00 a.m. and 3:00 p.m. Copies of the Fees Schedule. The text of the proposed
action is necessary or appropriate in the filing also will be available for rule change is available on the
public interest, for the protection of inspection and copying at the principal Exchange’s Web site at (http://
investors, or otherwise in furtherance of office of the Exchange. All comments www.c2exchange.com/Legal/), at the
the purposes of the Act. If the received will be posted without change; Exchange’s Office of the Secretary, and
Commission takes such action, the the Commission does not edit personal at the Commission’s Public Reference
Commission shall institute proceedings identifying information from Room.
to determine whether the proposed rule submissions. You should submit only
should be approved or disapproved. II. Self-Regulatory Organization’s
information that you wish to make Statement of the Purpose of, and
IV. Solicitation of Comments available publicly. All submissions Statutory Basis for, the Proposed Rule
Interested persons are invited to should refer to File Number SR–CHX– Change
submit written data, views, and 2016–05, and should be submitted on or
before May 16, 2016. In its filing with the Commission, the
arguments concerning the foregoing,
Exchange included statements
including whether the proposed rule For the Commission, by the Division of concerning the purpose of and basis for
change is consistent with the Act. Trading and Markets, pursuant to delegated the proposed rule change and discussed
Comments may be submitted by any of authority.15 any comments it received on the
the following methods: Robert W. Errett, proposed rule change. The text of these
Electronic Comments Deputy Secretary. statements may be examined at the
• Use the Commission’s Internet [FR Doc. 2016–09455 Filed 4–22–16; 8:45 am] places specified in Item IV below. The
comment form (http://www.sec.gov/ BILLING CODE 8011–01–P Exchange has prepared summaries, set
rules/sro.shtml); or forth in sections A, B, and C below, of
• Send an email to rule-comments@ the most significant aspects of such
sec.gov. Please include File Number SR– SECURITIES AND EXCHANGE statements.
CHX–2016–05 on the subject line. COMMISSION A. Self-Regulatory Organization’s
Paper Comments Statement of the Purpose of, and the
[Release No. 34–77651; File No. SR–C2– Statutory Basis for, the Proposed Rule
• Send paper comments in triplicate 2016–004] Change
to Secretary, Securities and Exchange
Commission, 100 F Street NE., Self-Regulatory Organizations; C2 1. Purpose
Washington, DC 20549–1090. Options Exchange, Incorporated; The Exchange proposes to amend its
All submissions should refer to File Notice of Filing and Immediate Fees Schedule.3 Specifically, the
Number SR–CHX–2016–05. This file Effectiveness of a Proposed Rule to Exchange proposes to adopt separate
number should be included on the Amend the Fees Schedule transaction fees and rebates for non-
subject line if email is used. To help the Penny option classes. By way of
Commission process and review your April 19, 2016. background, the Exchange began adding
comments more efficiently, please use Pursuant to Section 19(b)(1) of the an additional 2,000 option classes the
only one method. The Commission will Securities Exchange Act of 1934 (the week of February 22, 2016. The
post all comments on the Commission’s ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange notes that the additional
Internet Web site (http://www.sec.gov/ notice is hereby given that on April 11, classes are non-Penny option classes
rules/sro.shtml). Copies of the 2016, C2 Options Exchange, (i.e., each traded in nickel increments,
submission, all subsequent Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) as opposed to penny increments). As
amendments, all written statements filed with the Securities and Exchange such, the Exchange proposes adopting
with respect to the proposed rule fee and rebate rates for these classes that
Commission (the ‘‘Commission’’) the
change that are filed with the would be different than the current fees
proposed rule change as described in
Commission, and all written and rebates which would apply to
Items I, II, and III below, which Items
communications relating to the Penny option classes only.
proposed rule change between the have been prepared by the Exchange. Specifically, the Exchange proposes to
Commission and any person, other than The Commission is publishing this adopt the following rates for simple and
those that may be withheld from the notice to solicit comments on the complex orders in all equity, multiply-
public in accordance with the proposed rule change from interested listed index, ETF and ETN non-Penny
provisions of 5 U.S.C. 552, will be persons. option classes. Listed rates are per
available for Web site viewing and contract.
Maker Taker fee
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Public Customer .......................................................................................................................................... ($.75) $.83
C2 Market-Maker ......................................................................................................................................... (.68) .85
All Other Origins (Professional Customer, Firm, Broker/Dealer, non-C2 Market-Maker, JBO, etc.) .......... (.60) .88
15 17 CFR 200.30–3(a)(12). 2 17
CFR 240.19b–4. April 11, 2016, the Exchange withdrew that filing
1 15 U.S.C. 78s(b)(1). 3 The
Exchange initially filed the proposed fee and replaced it with SR–C2–2016–004.
change on April 1, 2016 (SR–C2–2016–003). On
VerDate Sep<11>2014 19:02 Apr 22, 2016 Jkt 238001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\25APN1.SGM 25APN1](https://thefederalregister.org/doc/81_FR_24232/page/1.svg)
![Federal Register / Vol. 81, No. 79 / Monday, April 25, 2016 / Notices 24155
because it only applies to trading on the number should be included on the its practical utility; ways to enhance its
Exchange. Further, the proposed fee and subject line if email is used. To help the quality, utility, and clarity; and ways to
rebate amounts are similar to those Commission process and review your minimize burden on respondents,
assessed for similar orders by other comments more efficiently, please use including the use of automated
exchanges,9 and therefore should only one method. The Commission will collection techniques or other forms of
continue to encourage competition. post all comments on the Commission’s information technology. Mail, email, or
Should the proposed change make C2 a Internet Web site (http://www.sec.gov/ fax your comments and
more attractive trading venue for market rules/sro.shtml). Copies of the recommendations on the information
participants at other exchanges, such submission, all subsequent collection(s) to the OMB Desk Officer
market participants may elect to become amendments, all written statements and SSA Reports Clearance Officer at
market participants at C2 [sic] with respect to the proposed rule the following addresses or fax numbers.
change that are filed with the (OMB), Office of Management and
C. Self-Regulatory Organization’s
Commission, and all written Budget, Attn: Desk Officer for SSA, Fax:
Statement on Comments on the
communications relating to the 202–395–6974, Email address: OIRA_
Proposed Rule Change Received from
proposed rule change between the Submission@omb.eop.gov.
Members, Participants, or Others
Commission and any person, other than (SSA), Social Security
The Exchange neither solicited nor those that may be withheld from the Administration, OLCA, Attn: Reports
received comments on the proposed public in accordance with the Clearance Director, 3100 West High
rule change. provisions of 5 U.S.C. 552, will be Rise, 6401 Security Blvd., Baltimore,
III. Date of Effectiveness of the available for Web site viewing and MD 21235, Fax: 410–966–2830, Email
Proposed Rule Change and Timing for printing in the Commission’s Public address: OR.Reports.Clearance@ssa.gov.
Commission Action Reference Room, 100 F Street NE., Or you may submit your comments
Washington, DC 20549, on official online through www.regulations.gov,
The foregoing rule change has become business days between the hours of referencing Docket ID Number [SSA–
effective pursuant to Section 19(b)(3)(A) 10:00 a.m. and 3:00 p.m. Copies of the 2016–0013].
of the Act 10 and paragraph (f) of Rule filing also will be available for I. The information collection below is
19b–4 11 thereunder. At any time within inspection and copying at the principal pending at SSA. SSA will submit it to
60 days of the filing of the proposed rule office of the Exchange. All comments OMB within 60 days from the date of
change, the Commission summarily may received will be posted without change; this notice. To be sure we consider your
temporarily suspend such rule change if the Commission does not edit personal comments, we must receive them no
it appears to the Commission that such identifying information from later than June 24, 2016. Individuals can
action is necessary or appropriate in the submissions. You should submit only obtain copies of the collection
public interest, for the protection of information that you wish to make instruments by writing to the above
investors, or otherwise in furtherance of available publicly. All submissions email address.
the purposes of the Act. If the should refer to File Number SR–C2– Report to United States Social
Commission takes such action, the 2016–004, and should be submitted on Security Administration by Person
Commission will institute proceedings or before May 16, 2016. Receiving Benefits for a Child or for an
to determine whether the proposed rule
For the Commission, by the Division of Adult Unable to Handle Funds/Report
change should be approved or
Trading and Markets, pursuant to delegated to the United States Social Security
disapproved. authority.12 Administration—0960–0049. Section
IV. Solicitation of Comments Robert W. Errett, 203(c) of the Social Security Act (Act)
Interested persons are invited to Deputy Secretary. requires the Commissioner of SSA to
submit written data, views, and [FR Doc. 2016–09454 Filed 4–22–16; 8:45 am] make benefit deductions from the
arguments concerning the foregoing, BILLING CODE 8011–01–P following categories: (1) Entitled
including whether the proposed rule individuals who engage in remunerative
change is consistent with the Act. activity outside of the United States in
Comments may be submitted by any of SOCIAL SECURITY ADMINISTRATION excess of 45 hours a month; and (2)
the following methods: beneficiaries who fail to have in their
[Docket No: SSA–2016–0013] care the specified entitled child
Electronic Comments beneficiaries. SSA uses Forms SSA–
Agency Information Collection 7161–OCR–SM and SSA–7162–OCR–
• Use the Commission’s Internet Activities: Proposed Request and
comment form (http://www.sec.gov/ SM to: (1) Determine continuing
Comment Request entitlement to Social Security benefits;
rules/sro.shtml); or
• Send an email to rule-comments@ The Social Security Administration (2) correct benefit amounts for
sec.gov. Please include File Number SR– (SSA) publishes a list of information beneficiaries outside the United States;
C2–2016–004 on the subject line. collection packages requiring clearance and (3) monitor the performance of
by the Office of Management and representative payees outside the
Paper Comments Budget (OMB) in compliance with United States. This collection is
• Send paper comments in triplicate Public Law 104–13, the Paperwork mandatory as an annual (or every other
to Secretary, Securities and Exchange year, depending on the country of
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Reduction Act of 1995, effective October
Commission, 100 F Street NE., 1, 1995. This notice includes revisions residence) review for fraud prevention.
Washington, DC 20549–1090. of OMB-approved information In addition, the results can affect
All submissions should refer to File collections. benefits by increasing or decreasing
Number SR–C2–2016–004. This file SSA is soliciting comments on the payment amount or by causing SSA to
accuracy of the agency’s burden suspend or terminate benefits. The
9 See supra note 4. estimate; the need for the information; respondents are individuals living
10 15 U.S.C. 78s(b)(3)(A). outside the United States who are
11 17 CFR 240.19b–4(f). 12 17 CFR 200.30–3(a)(12). receiving benefits on their own (or on
VerDate Sep<11>2014 19:02 Apr 22, 2016 Jkt 238001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\25APN1.SGM 25APN1](https://thefederalregister.org/doc/81_FR_24232/page/3.svg)
Document Created: 2016-04-23 01:38:36
Document Modified: 2016-04-23 01:38:36
| 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 | 81 FR 24153 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR