81 FR 54142 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reflect a Change in the Permitted Size of a Basket Applicable to Shares of ETFS Physical Silver Shares Issued by the ETFS Silver Trust
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 157 (August 15, 2016)
Federal Register Volume 81, Issue 157 (August 15, 2016)
| Page Range | 54142-54144 | |
| FR Document | 2016-19323 |
[Federal Register Volume 81, Number 157 (Monday, August 15, 2016)] [Notices] [Pages 54142-54144] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-19323] [[Page 54142]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78521; File No. SR-NYSEArca-2016-108] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reflect a Change in the Permitted Size of a Basket Applicable to Shares of ETFS Physical Silver Shares Issued by the ETFS Silver Trust August 9, 2016. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on July 27, 2016, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE Arca'') 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 self-regulatory organization. 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\ 15 U.S.C. 78a. \3\ 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 reflect a change in the permitted size of a ``Basket'' applicable to shares of ETFS Physical Silver Shares (``Fund'') issued by the ETFS Silver Trust. The Fund is currently listed and traded on the Exchange under NYSE Arca Equities Rule 8.201. The proposed rule change is available on the Exchange's Web site at www.nyse.com, at the principal office of the Exchange, 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 self-regulatory organization 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 those 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 parts 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 Commission has approved a proposed rule change relating to listing and trading on the Exchange of shares (``Shares'') of the Fund under NYSE Arca Equities Rule 8.201, which governs the listing and trading of Commodity-Based Trust Shares.\4\ The Shares are offered by ETFS Silver Trust (the ``Trust'').\5\ The Shares represent units of fractional undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of silver bullion, less the Trust's expenses.\6\ ETF Securities USA LLC is the sponsor of the Trust (``Sponsor''), The Bank of New York Mellon is the trustee of the Trust and HSBC Bank plc. is the custodian of the Trust. The Fund's Shares are currently listed and traded on the Exchange under NYSE Arca Equities Rule 8.201. --------------------------------------------------------------------------- \4\ Commodity-Based Trust Shares are securities issued by a trust that represent investors' discrete identifiable and undivided beneficial ownership interest in the commodities deposited into the Trust. \5\ The Trust is registered under the Securities Act of 1933 (``1933 Act''). See Post-Effective Amendment No. 1 on Form S-3 under the 1933 Act for the ETFS Silver Trust, filed with the Commission on August 8, 2014 (No. 333-195514) (``Registration Statement''). \6\ The Commission approved listing and trading of Shares of the Fund on NYSE Arca in Securities Exchange Act Release No. 59781 (April 14, 2009), 74 FR 18771 (April 24, 2009) (SR-NYSEArca-2009-28) (Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Relating to Listing and Trading of Shares of the ETFS Silver Trust) (``Prior Order''); See also Securities Exchange Act Release Nos. 72847 (August 14, 2014), 79 FR 49350 (August 20, 2014) (SR-NYSEArca-2014-88) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change (1) to Reflect a Change to the Value Used by the iShares Silver Trust, ETFS Silver Trust, ETFS White Metals Basket Trust and ETFS Precious Metals Basket Trust with Respect to Calculation of the Net Asset Value of Shares of each Trust; and (2) to Reflect a Change to the Underlying Benchmark for ProShares Ultra Silver and ProShares UltraShort Silver) (``First Prior Notice''); 77830 (May 13, 2016), 81 FR 31671 (May 19, 2016) (SR-NYSEArca-2016-72) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Changes to Procedures Regarding Establishing the LBMA Silver Price) (``Second Prior Notice''). --------------------------------------------------------------------------- As described in the Prior Order, issuances of Shares will be made only in ``Baskets'' of 100,000 Shares or multiples thereof. The Exchange proposes to eliminate the representation in the Prior Order regarding the size of a Basket. Going forward, the size of a Basket will be no greater than 100,000 Shares and the size of a Basket will be subject to change, but always equal to or less than 100,000 Shares.\7\ The Fund currently plans to change the size of a Basket to 50,000 Shares.\8\ The Exchange believes that the change to the size of a Basket will not adversely impact investors or Exchange trading. In addition, a reduction in the size of a Basket may provide potential benefits to investors by facilitating additional creation and redemption activity in the Shares, thereby potentially resulting in increased secondary market trading activity, tighter bid/ask spreads and narrower premiums or discounts to NAV.\9\ --------------------------------------------------------------------------- \7\ The Exchange notes that the Commission has approved the listing and trading of other issues of exchange-traded products for which the size of a ``Creation Unit'' is subject to change. See e.g., Securities Exchange Act Release Nos. 77522 (April 5, 2016), 81 FR 21420 (April 11, 2016) (SR-NYSEArca-2015-125) (order approving Exchange listing and trading of Shares of the of RiverFront Dynamic Unconstrained Income ETF and RiverFront Dynamic Core Income ETF under NYSE Arca Equities Rule 8.600); 76719 (December 21, 2015), 80 FR 80859 (December 28, 2015) (SR-NYSEArca-2015-73) (order approving listing and trading of shares of the Guggenheim Total Return Bond ETF under NYSE Arca Equities Rule 8.600). \8\ The change to size of a Basket will be effective upon filing with the Commission of an amendment to the Trust's Registration Statement filed pursuant to Rule 424(b)(3) under the 1933 Act, and shareholders will be notified of such change by means of such amendment. \9\ The Exchange notes that the Commission has approved the listing and trading of other issues of exchange-traded products that have applied a minimum ``Creation Unit'' size of 50,000 shares. See, e.g., Securities Exchange Act Release Nos. 65458 (September 30, 2011), 76 FR 62112 (October 6, 2011) (SR-NYSEArca-2011-54) (order approving listing and trading of WisdomTree Dreyfus Australia and New Zealand Debt Fund); 66112 (January 5, 2012), 77 FR 1761 (January 11, 2012) (SR-NYSEArca-2011-80) (order approving listing and trading of Rockledge SectorSAM ETF). --------------------------------------------------------------------------- The Sponsor represents that the proposed change to provide that the size of a Basket will be no greater than 100,000 Shares and subject to change, but always equal to or less than 100,000 Shares, as well as to reduce the Basket size to 50,000 Shares, as described above, is consistent with the Fund's investment objective, and will further assist the Sponsor to achieve such investment objective. Except for the change noted above, all other representations made in the Prior Order, the First Prior Notice and the Second Prior Notice remain unchanged.\10\ The Fund and the Shares will continue to comply with all initial and continued listing requirements under NYSE Arca Equities Rule 8.201. --------------------------------------------------------------------------- \10\ See note 6, supra. All terms referenced but not defined herein are defined in the First Prior Notice. --------------------------------------------------------------------------- The Sponsor represents that the investment objective of the Fund is not changing. The Sponsor has represented to the Exchange that it will advise the [[Page 54143]] Exchange of any failure by the Fund to comply with the continued listing requirements, and, pursuant to its obligations under Section 19(g)(1) of the Act, the Exchange will monitor for compliance with the continued listing requirements. If the Fund is not in compliance with the applicable listing requirements, the Exchange will commence delisting procedures under NYSE Arca Equities Rule 5.5(m). Except for the changes noted herein, all other facts presented and representations made in the Rule 19b-4 filing underlying the Prior Order, the First Prior Notice and the Second Prior Notice remain unchanged. 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) \11\ that an exchange have rules that are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to, and perfect the mechanism of a free and open market and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The proposed rule change is designed to perfect the mechanism of a free and open market and, in general, to protect investors and the public interest. The Exchange believes that providing for a Basket size of no greater than 100,000 Shares (with the size of a Basket subject to change, but always equal to or less than 100,000 Shares), and changing the Basket size to 50,000 Shares, will not adversely impact investors or Exchange trading. In addition, a reduction in the size of a Basket may provide potential benefits to investors by facilitating additional creation and redemption activity in the Shares, thereby potentially resulting in increased secondary market trading activity, tighter bid/ ask spreads and narrower premiums or discounts to NAV. 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 purpose of the Act. The Exchange believes the proposed rule change, by providing that the size of a Basket is subject to change, but always equal to or less than 100,000 Shares, will provide the Fund with additional flexibility in administering the creation and redemption of Shares, which will enhance competition among issues of Commodity-Based Trust Shares. 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 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, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest because a reduction in the size of a Basket may provide potential benefits to investors by facilitating additional creation and redemption activity in the Shares, thereby potentially resulting in increased secondary market trading activity, tighter bid/ask spreads and narrower premiums or discounts to NAV. Therefore, the Commission designates the proposed rule change to be operative upon filing.\14\ --------------------------------------------------------------------------- \14\ 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). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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-NYSEArca-2016-108 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-NYSEArca-2016-108. 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-NYSEArca-2016-108 and should be submitted on or before September 6, 2016. [[Page 54144]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-19323 Filed 8-12-16; 8:45 am] BILLING CODE 8011-01-P
![54142 Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s less than 100,000 Shares.7 The Fund
COMMISSION Statement of the Purpose of, and the currently plans to change the size of a
Statutory Basis for, the Proposed Rule Basket to 50,000 Shares.8 The Exchange
[Release No. 34–78521; File No. SR– Change believes that the change to the size of a
NYSEArca–2016–108] Basket will not adversely impact
1. Purpose
investors or Exchange trading. In
Self-Regulatory Organizations; NYSE The Commission has approved a addition, a reduction in the size of a
Arca, Inc.; Notice of Filing and proposed rule change relating to listing Basket may provide potential benefits to
Immediate Effectiveness of Proposed and trading on the Exchange of shares investors by facilitating additional
Rule Change To Reflect a Change in (‘‘Shares’’) of the Fund under NYSE creation and redemption activity in the
the Permitted Size of a Basket Arca Equities Rule 8.201, which governs Shares, thereby potentially resulting in
Applicable to Shares of ETFS Physical the listing and trading of Commodity- increased secondary market trading
Silver Shares Issued by the ETFS Based Trust Shares.4 The Shares are activity, tighter bid/ask spreads and
Silver Trust offered by ETFS Silver Trust (the narrower premiums or discounts to
‘‘Trust’’).5 The Shares represent units of NAV.9
August 9, 2016. fractional undivided beneficial interest The Sponsor represents that the
in and ownership of the Trust. The proposed change to provide that the size
Pursuant to Section 19(b)(1) 1 of the
investment objective of the Trust is for of a Basket will be no greater than
Securities Exchange Act of 1934 (the
the Shares to reflect the performance of 100,000 Shares and subject to change,
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
the price of silver bullion, less the but always equal to or less than 100,000
notice is hereby given that, on July 27,
Trust’s expenses.6 ETF Securities USA Shares, as well as to reduce the Basket
2016, NYSE Arca, Inc. (the ‘‘Exchange’’
LLC is the sponsor of the Trust size to 50,000 Shares, as described
or ‘‘NYSE Arca’’) filed with the
(‘‘Sponsor’’), The Bank of New York above, is consistent with the Fund’s
Securities and Exchange Commission
Mellon is the trustee of the Trust and investment objective, and will further
(the ‘‘Commission’’) the proposed rule
HSBC Bank plc. is the custodian of the assist the Sponsor to achieve such
change as described in Items I and II Trust. The Fund’s Shares are currently investment objective. Except for the
below, which Items have been prepared listed and traded on the Exchange under change noted above, all other
by the self-regulatory organization. The NYSE Arca Equities Rule 8.201. representations made in the Prior Order,
Commission is publishing this notice to As described in the Prior Order, the First Prior Notice and the Second
solicit comments on the proposed rule issuances of Shares will be made only Prior Notice remain unchanged.10 The
change from interested persons. in ‘‘Baskets’’ of 100,000 Shares or Fund and the Shares will continue to
I. Self-Regulatory Organization’s multiples thereof. The Exchange comply with all initial and continued
Statement of the Terms of Substance of proposes to eliminate the representation listing requirements under NYSE Arca
the Proposed Rule Change in the Prior Order regarding the size of Equities Rule 8.201.
a Basket. Going forward, the size of a The Sponsor represents that the
The Exchange proposes to reflect a Basket will be no greater than 100,000 investment objective of the Fund is not
change in the permitted size of a Shares and the size of a Basket will be changing.
‘‘Basket’’ applicable to shares of ETFS subject to change, but always equal to or The Sponsor has represented to the
Physical Silver Shares (‘‘Fund’’) issued Exchange that it will advise the
by the ETFS Silver Trust. The Fund is 4 Commodity-Based Trust Shares are securities
7 The Exchange notes that the Commission has
currently listed and traded on the issued by a trust that represent investors’ discrete
identifiable and undivided beneficial ownership approved the listing and trading of other issues of
Exchange under NYSE Arca Equities exchange-traded products for which the size of a
interest in the commodities deposited into the
Rule 8.201. The proposed rule change is Trust. ‘‘Creation Unit’’ is subject to change. See e.g.,
available on the Exchange’s Web site at 5 The Trust is registered under the Securities Act Securities Exchange Act Release Nos. 77522 (April
www.nyse.com, at the principal office of of 1933 (‘‘1933 Act’’). See Post-Effective 5, 2016), 81 FR 21420 (April 11, 2016) (SR–
Amendment No. 1 on Form S–3 under the 1933 Act NYSEArca–2015–125) (order approving Exchange
the Exchange, and at the Commission’s listing and trading of Shares of the of RiverFront
for the ETFS Silver Trust, filed with the
Public Reference Room. Commission on August 8, 2014 (No. 333–195514) Dynamic Unconstrained Income ETF and
(‘‘Registration Statement’’). RiverFront Dynamic Core Income ETF under NYSE
II. Self-Regulatory Organization’s 6 The Commission approved listing and trading of Arca Equities Rule 8.600); 76719 (December 21,
Statement of the Purpose of, and Shares of the Fund on NYSE Arca in Securities 2015), 80 FR 80859 (December 28, 2015) (SR–
Statutory Basis for, the Proposed Rule Exchange Act Release No. 59781 (April 14, 2009), NYSEArca–2015–73) (order approving listing and
74 FR 18771 (April 24, 2009) (SR–NYSEArca–2009– trading of shares of the Guggenheim Total Return
Change Bond ETF under NYSE Arca Equities Rule 8.600).
28) (Notice of Filing and Order Granting
8 The change to size of a Basket will be effective
In its filing with the Commission, the Accelerated Approval of Proposed Rule Change
Relating to Listing and Trading of Shares of the upon filing with the Commission of an amendment
self-regulatory organization included ETFS Silver Trust) (‘‘Prior Order’’); See also to the Trust’s Registration Statement filed pursuant
statements concerning the purpose of, Securities Exchange Act Release Nos. 72847 to Rule 424(b)(3) under the 1933 Act, and
and basis for, the proposed rule change (August 14, 2014), 79 FR 49350 (August 20, 2014) shareholders will be notified of such change by
(SR–NYSEArca–2014–88) (Notice of Filing and means of such amendment.
and discussed any comments it received 9 The Exchange notes that the Commission has
Immediate Effectiveness of Proposed Rule Change
on the proposed rule change. The text (1) to Reflect a Change to the Value Used by the approved the listing and trading of other issues of
of those statements may be examined at iShares Silver Trust, ETFS Silver Trust, ETFS White exchange-traded products that have applied a
the places specified in Item IV below. Metals Basket Trust and ETFS Precious Metals minimum ‘‘Creation Unit’’ size of 50,000 shares.
Basket Trust with Respect to Calculation of the Net See, e.g., Securities Exchange Act Release Nos.
sradovich on DSK3GMQ082PROD with NOTICES
The Exchange has prepared summaries, 65458 (September 30, 2011), 76 FR 62112 (October
Asset Value of Shares of each Trust; and (2) to
set forth in sections A, B, and C below, Reflect a Change to the Underlying Benchmark for 6, 2011) (SR–NYSEArca–2011–54) (order approving
of the most significant parts of such ProShares Ultra Silver and ProShares UltraShort listing and trading of WisdomTree Dreyfus
statements. Silver) (‘‘First Prior Notice’’); 77830 (May 13, 2016), Australia and New Zealand Debt Fund); 66112
81 FR 31671 (May 19, 2016) (SR–NYSEArca–2016– (January 5, 2012), 77 FR 1761 (January 11, 2012)
72) (Notice of Filing and Immediate Effectiveness of (SR–NYSEArca–2011–80) (order approving listing
1 15 U.S.C.78s(b)(1). Proposed Rule Change Relating to Changes to and trading of Rockledge SectorSAM ETF).
2 15 U.S.C. 78a. 10 See note 6, supra. All terms referenced but not
Procedures Regarding Establishing the LBMA Silver
3 17 CFR 240.19b–4. Price) (‘‘Second Prior Notice’’). defined herein are defined in the First Prior Notice.
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![54144 Federal Register / Vol. 81, No. 157 / Monday, August 15, 2016 / Notices
For the Commission, by the Division of A. Self-Regulatory Organization’s Additionally, the Exchange will
Trading and Markets, pursuant to delegated Statement of the Purpose of, and aggregate the Market Maker Trading
authority.16 Statutory Basis for, the Proposed Rule Permits and Market Maker Quoting and
Robert W. Errett, Change Order Entry Bandwidth Packets from
Deputy Secretary. affiliated TPHs (TPHs with at least 75%
1. Purpose
[FR Doc. 2016–19323 Filed 8–12–16; 8:45 am] common ownership between the firms
BILLING CODE 8011–01–P The Exchange proposes to amend its as reflected on each firm’s Form BD,
Fees Schedule. Specifically, the Schedule A) for purposes of
Exchange proposes to establish a fee determining the number of Trading
SECURITIES AND EXCHANGE scale for the purchase of Market Maker Permits and Market Maker Quoting and
COMMISSION Quoting and Order Bandwidth Packets Order Entry Bandwidth Packets a TPH
[Release No. 34–78508; File No. SR–C2–
(‘‘Bandwidth Packets’’), provide for an holds. Particularly, the Exchange
2016–016] allotment scale of CMI CAS Servers, and proposes to add a chart listing the
adopt a fee for extra CMI CAS Servers. amounts of equivalent Bandwidth
Self-Regulatory Organizations; C2 The Exchange first proposes to adopt Packets and corresponding CAS Servers:
Options Exchange, Incorporated; a fee scale for Bandwidth Packets.
Notice of Filing and Immediate Particularly, the Exchange proposes to Total bandwidth CAS Servers
provide that the first through ninth packets equivalency
Effectiveness of a Proposed Rule To
Amend the Fees Schedule Bandwidth Packets obtained by a 1–25 .......................... 1 + shared backup.
Trading Permit Holder (‘‘TPH’’) would 26–50 ........................ 2 + shared backup.
August 9, 2016. cost $1,000 per packet per month, the 51–75 ........................ 3 + shared backup.
Pursuant to Section 19(b)(1) of the tenth through fourteenth Bandwidth 76–100 ...................... 4 + shared backup.
Securities Exchange Act of 1934 (the Packets obtained by that TPH would 100+ .......................... 5 + shared backup.
‘‘Act’’),1 and Rule 19b–4 thereunder,2 cost $500 per packet per month, and the
notice is hereby given that on August 1, fifteenth and each additional Bandwidth Next, the Exchange proposes to
2016, C2 Options Exchange, Packet obtained by that TPH would cost provide that if a Market Maker wishes
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) $250 per packet per month. The to connect via an extra CMI CAS Server
filed with the Securities and Exchange Exchange believes the proposed fee (in order to segregate TPH users for
Commission (the ‘‘Commission’’) the scale will encourage Market Makers to business or availability purposes)
proposed rule change as described in purchase additional Bandwidth Packets beyond the TPH’s allotted number of
Items I, II, and III below, which Items which will allow them to quote and CMI CAS Servers (described above), that
have been prepared by the Exchange. trade more on the Exchange, thereby TPH will be assessed a fee of $2,000 per
The Commission is publishing this providing more trading opportunities month for each extra CMI CAS Server.
notice to solicit comments on the for all market participants. The purpose of this proposed change is
proposed rule change from interested The Exchange next proposes to amend to manage the allotment of CMI CAS
persons. its Fees Schedule with respect to Servers in a fair manner and to prevent
I. Self-Regulatory Organization’s Connectivity Charges. By way of the Exchange from being required to
Statement of the Terms of the Substance background, in order to connect to expend large amounts of resources (the
of the Proposed Rule Change CBOE Command, which allows a TPH provision and management of the CMI
to trade on the C2 System, a TPH must CAS Servers can be costly) in order to
The Exchange proposes to amend its provide TPHs with an unlimited
connect via either a CMI or FIX interface
Fees Schedule. The text of the proposed amount of CMI CAS Servers. The
(depending on the configuration of the
rule change is available on the purpose of the fee for extra CMI CAS
TPH’s own systems). For TPHs that
Exchange’s Web site (http:// Servers is to cover the costs related to
connect via a CMI interface, they must
www.c2exchange.com/Legal/), at the the provision, management and upkeep
use CMI CAS Servers. Currently each
Exchange’s Office of the Secretary, and of such CMI CAS Servers.
TPH is provided one CAS Server plus
at the Commission’s Public Reference
access to a pool of shared backup CAS 2. Statutory Basis
Room.
Servers. In order to ensure that a CAS
The Exchange believes the proposed
II. Self-Regulatory Organization’s Server is not overburdened by quoting
rule change is consistent with the
Statement of the Purpose of, and activity for Market Makers, the
Securities Exchange Act of 1934 (the
Statutory Basis for, the Proposed Rule Exchange proposes to allot each Market
‘‘Act’’) and the rules and regulations
Change Maker a certain number of CASs (in
thereunder applicable to the Exchange
In its filing with the Commission, the addition to the shared backups) based
and, in particular, the requirements of
Exchange included statements on the amount of quoting bandwidth
Section 6(b) of the Act.4 Specifically,
concerning the purpose of and basis for that they have. Quoting Bandwidth
the Exchange believes the proposed rule
the proposed rule change and discussed would be determined by the number of
change is consistent with the Section
any comments it received on the Bandwidth Packets the TPH holds in
6(b)(5) 5 requirements that the rules of
proposed rule change. The text of these addition to 5 times the number of
an exchange be designed to prevent
statements may be examined at the Market Maker Trading Permits it holds.3
fraudulent and manipulative acts and
places specified in Item IV below. The 3 The Exchange notes that a C2 Market Maker practices, to promote just and equitable
sradovich on DSK3GMQ082PROD with NOTICES
Exchange has prepared summaries, set Quoting and Order Entry Bandwidth Packet is principles of trade, to foster cooperation
forth in sections A, B, and C below, of equivalent to 1/5th of a Market Maker Trading and coordination with persons engaged
the most significant aspects of such Permit. As such, each Market-Maker Trading Permit in regulating, clearing, settling,
statements. a TPH holds is equivalent to 5 Quoting and Order
Entry Bandwidth Packet for purposes of bandwidth.
Therefore, if a TPH has 2 Market Maker Trading include this example in the Fees Schedule to
16 17 CFR 200.30–3(a)(12). provide additional clarity.
Permits and 16 Quoting and Order Entry Bandwidth
1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b).
Packets, the TPH has an equivalent of 26
2 17 CFR 240.19b–4. Bandwidth Packets. The Exchange proposes to 5 15 U.S.C. 78f(b)(5).
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Document Created: 2016-08-13 02:21:51
Document Modified: 2016-08-13 02:21:51
| 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 54142 |
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