81 FR 40739 - 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 120 (June 22, 2016)
Federal Register Volume 81, Issue 120 (June 22, 2016)
| Page Range | 40739-40741 | |
| FR Document | 2016-14714 |
[Federal Register Volume 81, Number 120 (Wednesday, June 22, 2016)] [Notices] [Pages 40739-40741] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14714] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78090; File No. SR-C2-2016-008] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule June 16, 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 June 10, 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 (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 to amend its Fees Schedule with respect to the Linkage Routing fee.\3\ By way of background, the Linkage Routing fee is assessed to all orders routed pursuant to the Options Order Protection and Locked/Crossed Market Plan. The Linkage Routing fee is currently $0.70 per contract plus applicable Taker fees. The Exchange proposes to waive the Linkage Routing fee and Taker fees for orders that are routed to another Exchange if entered on (i) a prior business day or (ii) prior to 8:30 a.m. CST on the same business day. --------------------------------------------------------------------------- \3\ The Exchange initially filed the proposed fee change on June 1, 2016 (SR-C2-2016-006). On June 10, 2016, the Exchange withdrew that filing and replaced it with SR-C2-2016-008. --------------------------------------------------------------------------- The Exchange notes that trades on the open involve the matching of pre-opening orders and quotes and orders resting in the book from the prior business day and therefore, in effect, no Maker or Taker activity is occurring. As such, the Exchange currently waives the fees for trades on the open. The Exchange would similarly like to waive the Linkage Routing fee and applicable Taker fees for (i) pre-opening orders that are submitted by 8:30 a.m. CST and (ii) for orders resting in the book from a prior business day that link away to another Exchange. The Exchange notes that pre-opening orders submitted by 8:30 a.m. CST and orders resting in the book from a prior business day may potentially be linked away after being exposed during the opening process pursuant to C2 Rule 6.11.\4\ The Exchange notes that it does not wish to assess Linkage or transaction fees for these orders however, as no Maker or Taker activity is occurring. Additionally, the Exchange notes that [[Page 40740]] while a sender of an order intraday would likely know upon submission whether that order could potentially link away that day based on the National Best Bid and Offer (NBBO) and resting simple orders and quotes, a sender of an order could not know at the time of submission whether that order would link away after an opening rotation on the following trade date (or if entered the same business day prior to 8:30 a.m. CST, whether it would link away after being exposed during the upcoming opening). The Exchange therefore does not wish to assess Linkage or Taker fees for these orders. --------------------------------------------------------------------------- \4\ See C2 Rule 6.11. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\5\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \6\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act,7 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the proposed rule change is reasonable because market participants won't be assessed Linkage Routing or Taker fees for orders that are routed to another Exchange if entered on a prior business day or prior to 8:30 a.m. CST on the same business day. The Exchange also believes it's reasonable, equitable and not unfairly discriminatory to not assess linkage or transaction fees for these transactions because no Maker or Taker activity is occurring in these instances and because market participants cannot anticipate upon submission whether their order would be linked away after exposure during an opening process, which would result in that market participant being assessed Taker fees (and in some instances, when they may otherwise have expected to be treated as a Maker). The Exchange also wishes to avoid discouraging Trading Permit Holders (``TPHs'') from canceling resting orders at the end of the day and from sending pre-opening orders (so as to avoid possible linkage and Taker fees if linked away after an opening rotation). Finally, the Exchange believes the proposed change is equitable and not unfairly discriminatory because it applies to all market participants. 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 the proposed rule change applies to all TPHs and because the Exchange does not wish to assess fees on orders that a TPH cannot anticipate being linked away and unexpectedly incur Linkage and Taker fees. The Exchange does not believe that the proposed change will impose any burden on intermarket competition because it only effects trading on C2. 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. Additionally, the Exchange notes that it operates in a highly competitive market, comprised of fourteen options exchanges, in which market participants can easily and readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or rebates to be inadequate. 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 \8\ and paragraph (f) of Rule 19b-4 \9\ thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission will institute proceedings to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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-C2-2016-008 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-C2-2016-008. 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 [[Page 40741]] 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-C2-2016-008 and should be submitted on or before July 13, 2016. --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-14714 Filed 6-21-16; 8:45 am] BILLING CODE 8011-01-P
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III. Date of Effectiveness of the Washington, DC 20549 on official II. Self-Regulatory Organization’s
Proposed Rule Change and Timing for business days between the hours of Statement of the Purpose of, and
Commission Action 10:00 a.m. and 3:00 p.m. Copies of such Statutory Basis for, the Proposed Rule
The foregoing rule change has become filing also will be available for Change
effective pursuant to Section inspection and copying at the principal In its filing with the Commission, the
19(b)(3)(A)(ii) of the Act.10 office of the Exchange. All comments Exchange included statements
At any time within 60 days of the received will be posted without change; concerning the purpose of and basis for
filing of the proposed rule change, the the Commission does not edit personal the proposed rule change and discussed
Commission summarily may identifying information from any comments it received on the
temporarily suspend such rule change if submissions. You should submit only proposed rule change. The text of these
it appears to the Commission that such information that you wish to make statements may be examined at the
action is: (i) Necessary or appropriate in available publicly. All submissions places specified in Item IV below. The
the public interest; (ii) for the protection should refer to File Number SR– Exchange has prepared summaries, set
of investors; or (iii) otherwise in NASDAQ–2016–083, and should be forth in sections A, B, and C below, of
furtherance of the purposes of the Act. submitted on or before July 13, 2016. the most significant aspects of such
If the Commission takes such action, the For the Commission, by the Division of statements.
Commission shall institute proceedings Trading and Markets, pursuant to delegated
authority.11
A. Self-Regulatory Organization’s
to determine whether the proposed rule Statement of the Purpose of, and
should be approved or disapproved. Robert W. Errett,
Statutory Basis for, the Proposed Rule
Deputy Secretary. Change
IV. Solicitation of Comments
[FR Doc. 2016–14713 Filed 6–21–16; 8:45 am]
Interested persons are invited to BILLING CODE 8011–01–P
1. Purpose
submit written data, views, and The Exchange proposes to amend its
arguments concerning the foregoing, Fees Schedule with respect to the
including whether the proposed rule SECURITIES AND EXCHANGE Linkage Routing fee.3 By way of
change is consistent with the Act. COMMISSION background, the Linkage Routing fee is
Comments may be submitted by any of assessed to all orders routed pursuant to
the following methods: [Release No. 34–78090; File No. SR–C2– the Options Order Protection and
Electronic Comments 2016–008] Locked/Crossed Market Plan. The
Linkage Routing fee is currently $0.70
• Use the Commission’s Internet Self-Regulatory Organizations; C2 per contract plus applicable Taker fees.
comment form (http://www.sec.gov/ Options Exchange, Incorporated; The Exchange proposes to waive the
rules/sro.shtml); or Notice of Filing and Immediate Linkage Routing fee and Taker fees for
• Send an email to rule-comments@ Effectiveness of a Proposed Rule To orders that are routed to another
sec.gov. Please include File Number SR– Amend the Fees Schedule Exchange if entered on (i) a prior
NASDAQ–2016–083 on the subject line. business day or (ii) prior to 8:30 a.m.
June 16, 2016.
Paper Comments CST on the same business day.
Pursuant to Section 19(b)(1) of the The Exchange notes that trades on the
• Send paper comments in triplicate Securities Exchange Act of 1934 (the open involve the matching of pre-
to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2 opening orders and quotes and orders
Commission, 100 F Street NE., notice is hereby given that on June 10, resting in the book from the prior
Washington, DC 20549–1090. 2016, C2 Options Exchange, business day and therefore, in effect, no
All submissions should refer to File Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) Maker or Taker activity is occurring. As
Number SR–NASDAQ–2016–083. This filed with the Securities and Exchange such, the Exchange currently waives the
file number should be included on the Commission (the ‘‘Commission’’) the fees for trades on the open. The
subject line if email is used. To help the proposed rule change as described in Exchange would similarly like to waive
Commission process and review your Items I, II, and III below, which Items the Linkage Routing fee and applicable
comments more efficiently, please use have been prepared by the Exchange. Taker fees for (i) pre-opening orders that
only one method. The Commission will The Commission is publishing this are submitted by 8:30 a.m. CST and (ii)
post all comments on the Commission’s notice to solicit comments on the for orders resting in the book from a
Internet Web site (http://www.sec.gov/ proposed rule change from interested prior business day that link away to
rules/sro.shtml). Copies of the persons. another Exchange. The Exchange notes
submission, all subsequent that pre-opening orders submitted by
I. Self-Regulatory Organization’s 8:30 a.m. CST and orders resting in the
amendments, all written statements Statement of the Terms of Substance of
with respect to the proposed rule book from a prior business day may
the Proposed Rule Change potentially be linked away after being
change that are filed with the
Commission, and all written The Exchange proposes to amend its exposed during the opening process
communications relating to the Fees Schedule. The text of the proposed pursuant to C2 Rule 6.11.4 The
proposed rule change between the rule change is available on the Exchange notes that it does not wish to
Commission and any person, other than Exchange’s Web site (http:// assess Linkage or transaction fees for
these orders however, as no Maker or
mstockstill on DSK3G9T082PROD with NOTICES
those that may be withheld from the www.c2exchange.com/Legal/), at the
public in accordance with the Exchange’s Office of the Secretary, and Taker activity is occurring.
provisions of 5 U.S.C. 552, will be at the Commission’s Public Reference Additionally, the Exchange notes that
available for Web site viewing and Room. 3 The Exchange initially filed the proposed fee
printing in the Commission’s Public change on June 1, 2016 (SR–C2–2016–006). On June
Reference Room, 100 F Street NE., 11 17 CFR 200.30–3(a)(12). 10, 2016, the Exchange withdrew that filing and
1 15 U.S.C. 78s(b)(1). replaced it with SR–C2–2016–008.
10 15 U.S.C. 78s(b)(3)(A)(ii). 2 17 CFR 240.19b–4. 4 See C2 Rule 6.11.
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received will be posted without change; been added to the system of records, records in various formats; supporting
the Commission does not edit personal Legal Case Management Records, State- documentation for a case against an
identifying information from 21, to ensure Privacy Act of 1974 individual; contracts and other legal
submissions. You should submit only compliance: Purpose and Disclosure to documents; income withholding orders,
information that you wish to make Consumer Reporting Agencies. garnishment orders, bankruptcy orders,
available publicly. All submissions The Department’s report was filed state tax liens, and similar court or
should refer to File Number SR–C2– with the Office of Management and agency documents; inquiries from
2016–008 and should be submitted on Budget. The amended system federal, state, and local agencies and
or before July 13, 2016. description, ‘‘Legal Case Management responses to those inquiries; documents
For the Commission, by the Division of Records, State-21,’’ will read as set forth that may be relevant to legal
Trading and Markets, pursuant to delegated below. proceedings and investigations;
authority.10 Joyce A. Barr,
correspondence related to legal or
Robert W. Errett, policy issues, regardless of format
Assistant Secretary for Administration, U.S.
Deputy Secretary. Department of State.
(paper or electronic).
[FR Doc. 2016–14714 Filed 6–21–16; 8:45 am] AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
STATE–21
BILLING CODE 8011–01–P
5 U.S.C. 301; 22 U.S.C. 2651a; 22
SYSTEM NAME: U.S.C. 2656; 42 U.S.C. 659; 42 U.S.C.
Legal Case Management Records. 666; 5 CFR part 581.
DEPARTMENT OF STATE
SECURITY CLASSIFICATION: PURPOSE(S):
[Public Notice: 9613] Unclassified and Classified. Information in the Legal Adviser’s
Privacy Act; System of Records: Legal SYSTEM LOCATION: Case Management Records is used to
Case Management Records, State-21. Department of State, 2201 C Street provide or facilitate the provision of
NW., Washington, DC 20520; legal advice and opinion to the offices
SUMMARY: Notice is hereby given that of the Department of State and to
Department of State annexes, U.S.
the Department of State proposes to facilitate defense or representation of
Embassies, U.S. Consulates General, and
amend an existing system of records, the Department in litigation and in other
U.S. Consulates.
Legal Case Management Records, State- legal proceedings. Information may also
21, pursuant to the provisions of the CATEGORIES OF INDIVIDUALS COVERED BY THE be used to reply to requests from courts
Privacy Act of 1974, as amended (5 SYSTEM: or agencies.
U.S.C. 552a) and Office of Management Individuals who have filed
and Budget Circular No. A–130, ROUTINE USES OF RECORDS MAINTAINED IN THE
administrative grievances and Equal
SYSTEM, INCLUDING CATEGORIES OF USERS AND
Appendix I. Employment Opportunity complaints;
PURPOSES OF SUCH USES:
DATES: This system of records will be individuals involved in disciplinary
effective on August 1, 2016, unless we proceedings; individuals involved in The principal users of this
receive comments that will result in a alleged criminal activity or activity in information outside the Department of
contrary determination. violation of regulations; individuals State are:
who have filed claims against the (a) The Department of Justice and
ADDRESSES: Any persons interested in other federal agencies in connection
commenting on the amended system of United States; individuals who have
sued the Department of State or any with facilitating defense of the
records may do so by writing to the Department in legal proceedings,
Director; Office of Information Programs officials; individuals whose records may
be relevant to legal proceedings analyzing legal issues, or fulfilling
and Services, A/GIS/IPS; Department of statutory responsibilities;
State, SA–2; 515 22nd Street NW., involving the Department of State;
individuals who are the subjects of (b) Federal, state, and foreign courts,
Washington, DC 20522–8100. tribunals, and adjudicatory bodies in
inquiries from federal, state, and local
FOR FURTHER INFORMATION CONTACT: connection with legal proceedings;
agencies; individuals who are the
William Fischer, Acting Director; Office (c) A party to a legal proceeding
subjects of income withholding orders,
of Information Programs and Services, involving the Department, or the party’s
garnishment orders, bankruptcy orders,
A/GIS/IPS; Department of State, SA–2; attorney or other designated
state tax liens, and similar court or
515 22nd Street NW., Washington, DC representative in connection with legal
agency documents; individuals who
20522–8100, or at Privacy@state.gov. proceedings;
have raised or discussed legal or policy
SUPPLEMENTARY INFORMATION: The questions with the Office of the Legal (d) An attorney or other designated
Department of State proposes that the Adviser; and individuals who have representative of any source, witness or
current system will retain the name otherwise contacted the Office of the subject in connection with legal
‘‘Legal Case Management Records’’ Legal Adviser. proceedings;
(previously published at 42 FR 49709). (e) Appropriate committees and
Information in the Legal Adviser’s Case CATEGORIES OF RECORDS IN THE SYSTEM: subcommittees of Congress in
Management Records is used to provide Biographic information, such as furtherance of their respective oversight
or facilitate the provision of legal advice name, contact information, and place of functions; and
and opinion to the offices of the birth; employment histories; summaries (f) Federal agencies having statutory
Department of State and to facilitate of circumstances surrounding or other lawful authority to maintain
mstockstill on DSK3G9T082PROD with NOTICES
defense or representation of the grievances, Equal Employment such information.
Department in litigation and in other Opportunity complaints, claims, The Department may respond to
legal proceedings. The proposed system litigation, or disciplinary proceedings; federal, state, and local agency inquiries
will include modifications to all internal memoranda; copies of related to child support, alimony,
sections. The following sections have indictments and charges; criminal bankruptcy, state tax lien, or similar
records and reports of investigations; issues. Pursuant to a court or agency
10 17 CFR 200.30–3(a)(12). electronic mail (email); electronic order, the Department may disclose
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Document Created: 2016-06-22 01:05:39
Document Modified: 2016-06-22 01:05:39
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 40739 |
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