81 FR 63233 - 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 178 (September 14, 2016)
Federal Register Volume 81, Issue 178 (September 14, 2016)
| Page Range | 63233-63235 | |
| FR Document | 2016-22026 |
[Federal Register Volume 81, Number 178 (Wednesday, September 14, 2016)] [Notices] [Pages 63233-63235] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-22026] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78785; File No. SR-C2-2016-017] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule September 8, 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 September 1, 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 the 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. Particularly, the Exchange proposes to amend Taker fees for simple, non-complex orders in all equity, multiply-listed index, ETF and ETN options classes (except Russell 2000 Index (``RUT'')) in both penny and non-penny classes. The Taker fees would be increased by $0.02 per contract in penny classes and by $0.02 for customers (``C'' origin code) and by $0.05 for all other origin codes in non-penny classes. Specifically, the Exchange proposes to adopt the following rates. Listed rates are per contract. ---------------------------------------------------------------------------------------------------------------- Penny classes Non-penny --------------------------------------------------- Current Proposed Current Proposed ---------------------------------------------------------------------------------------------------------------- Public Customer............................................. .47 .49 .83 .85 C2 Market-Maker............................................. .48 .50 .85 .90 All Other Origins (Professional Customer, Firm, Broker/ .48 .50 .88 .93 Dealer, non-C2 Market-Maker, JBO, etc.).................... Trades on the Open.......................................... ($0.00) ($0.00) ($0.00) ($0.00) ---------------------------------------------------------------------------------------------------------------- [[Page 63234]] The Exchange notes that the proposed Taker fee amounts are the same as, or in line with, the amounts currently assessed for simple, non-complex orders in equity, multiply-listed index, ETF and ETN options classes assessed at other Exchanges.\3\ --------------------------------------------------------------------------- \3\ See e.g., NYSE Arca Options Fee Schedule, which lists, for electronic executions in Penny Pilot issues, (1) Customer Taker fee of $0.49, (2) Market-Maker Taker fee of $0.50, and (3) Firm and Broker Dealer Taker fee of $0.50; and for electronic executions in non-Penny Pilot issues, (1) Customer Taker fee of $0.85, (2) Market- Maker Taker fee of $1.08, and (3) Firm and Broker Taker fee of $1.08. --------------------------------------------------------------------------- 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.\4\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \5\ 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 the Section 6(b)(5) \6\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. The Exchange also 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. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). \6\ Id. \7\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the proposed increase to Taker fees for simple, non-complex orders in all equity, multiply-listed index, ETF and ETN options classes (except RUT) are reasonable because the proposed fee amounts are the same as, or in line with, the amounts assessed for similar transactions at other exchanges.\8\ --------------------------------------------------------------------------- \8\ See supra note 3. --------------------------------------------------------------------------- The Exchange believes that it is equitable and not unfairly discriminatory to assess lower fees 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. Additionally, the proposed fee change 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 in non-penny classes 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 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 amounts listed as applying to Market-Makers will be applied equally to all Market-Makers. Similarly, the Exchange believes it is equitable and not unfairly discriminatory to assess higher fees to all other origins (i.e., Professional Customer, Firm, Broker/Dealer, non-C2 Market-Maker, JBO, etc.) in non-penny classes. Particularly, the Exchange notes that it believes it's equitable and not unfairly discriminatory to assess a higher fee 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 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 amounts listed for non-penny classes will also be applied equally 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 amounts described herein are intended to attract greater order flow to the Exchange, which should therefore serve to benefit all Exchange market participants. B. Self-Regulatory Organization's Statement on Burden on Competition C2 does not believe that the proposed rule changes will impose any burden on competition that are 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 are assessed to different market participants in some circumstances, these different market participants have different obligations and different circumstances as discussed above. The Exchange believes this proposal will not cause an unnecessary burden on intermarket competition because the proposed Taker fee amounts are similar to fees assessed at other exchanges for similar transactions.\9\ 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. --------------------------------------------------------------------------- \9\ See supra note 3. --------------------------------------------------------------------------- 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). --------------------------------------------------------------------------- [[Page 63235]] 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-C2-2016-017 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-C2-2016-017. 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 such 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-C2-2016-017, and should be submitted on or before October 5, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-22026 Filed 9-13-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 178 / Wednesday, September 14, 2016 / Notices 63233
Commission will institute proceedings business days between the hours of I. Self-Regulatory Organization’s
to determine whether the proposed rule 10:00 a.m. and 3:00 p.m. Copies of such Statement of the Terms of the Substance
change should be approved or filing also will be available for of the Proposed Rule Change
disapproved. inspection and copying at the principal
The Exchange proposes to amend its
office of the Exchange. All comments
IV. Solicitation of Comments Fees Schedule. The text of the proposed
received will be posted without change;
Interested persons are invited to rule change is available on the
the Commission does not edit personal
submit written data, views, and Exchange’s Web site (http://
identifying information from
arguments concerning the foregoing, www.c2exchange.com/Legal/), at the
submissions. You should submit only
including whether the proposed rule Exchange’s Office of the Secretary, and
information that you wish to make
change is consistent with the Act. at the Commission’s Public Reference
available publicly. All submissions
Comments may be submitted by any of Room.
should refer to File Number SR–Phlx–
the following methods: 2016–91, and should be submitted on or II. Self-Regulatory Organization’s
Electronic Comments before October 5, 2016. Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
• Use the Commission’s Internet For the Commission, by the Division of
Trading and Markets, pursuant to delegated Change
comment form (http://www.sec.gov/
rules/sro.shtml); or authority.8
In its filing with the Commission, the
• Send an email to rule-comments@ Brent J. Fields, Exchange included statements
sec.gov. Please include File Number SR– Secretary. concerning the purpose of and basis for
Phlx–2016–91 on the subject line. [FR Doc. 2016–22025 Filed 9–13–16; 8:45 am] the proposed rule change and discussed
Paper Comments BILLING CODE 8011–01–P any comments it received on the
proposed rule change. The text of these
• Send paper comments in triplicate statements may be examined at the
to Secretary, Securities and Exchange SECURITIES AND EXCHANGE places specified in Item IV below. The
Commission, 100 F Street NE., COMMISSION Exchange has prepared summaries, set
Washington, DC 20549–1090. forth in sections A, B, and C below, of
All submissions should refer to File [Release No. 34–78785; File No. SR–C2– the most significant aspects of such
Number SR–Phlx–2016–91. This file 2016–017] statements.
number should be included on the
subject line if email is used. To help the Self-Regulatory Organizations; C2 A. Self-Regulatory Organization’s
Commission process and review your Options Exchange, Incorporated; Statement of the Purpose of, and
comments more efficiently, please use Notice of Filing and Immediate Statutory Basis for, the Proposed Rule
only one method. The Commission will Effectiveness of a Proposed Rule To Change
post all comments on the Commission’s Amend the Fees Schedule 1. Purpose
Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the September 8, 2016. The Exchange proposes to amend its
submission, all subsequent Pursuant to Section 19(b)(1) of the Fees Schedule. Particularly, the
amendments, all written statements Securities Exchange Act of 1934 (the Exchange proposes to amend Taker fees
with respect to the proposed rule ‘‘Act’’),1 and Rule 19b–4 thereunder,2 for simple, non-complex orders in all
change that are filed with the notice is hereby given that on equity, multiply-listed index, ETF and
Commission, and all written September 1, 2016, C2 Options ETN options classes (except Russell
communications relating to the Exchange, Incorporated (the ‘‘Exchange’’ 2000 Index (‘‘RUT’’)) in both penny and
proposed rule change between the or ‘‘C2’’) filed with the Securities and non-penny classes. The Taker fees
Commission and any person, other than Exchange Commission (the would be increased by $0.02 per
those that may be withheld from the ‘‘Commission’’) the proposed rule contract in penny classes and by $0.02
public in accordance with the change as described in Items I, II, and for customers (‘‘C’’ origin code) and by
provisions of 5 U.S.C. 552, will be III below, which Items have been $0.05 for all other origin codes in non-
available for Web site viewing and prepared by the Exchange. The penny classes. Specifically, the
printing in the Commission’s Public Commission is publishing this notice to Exchange proposes to adopt the
Reference Room, 100 F Street NE., solicit comments on the proposed rule following rates. Listed rates are per
Washington, DC 20549 on official change from interested persons. contract.
Penny classes Non-penny
Current Proposed Current Proposed
Public Customer .............................................................................................................. .47 .49 .83 .85
C2 Market-Maker ............................................................................................................. .48 .50 .85 .90
All Other Origins (Professional Customer, Firm, Broker/Dealer, non-C2 Market-Maker,
JBO, etc.) ..................................................................................................................... .48 .50 .88 .93
Trades on the Open ........................................................................................................ ($0.00) ($0.00) ($0.00) ($0.00)
asabaliauskas on DSK3SPTVN1PROD with NOTICES
8 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
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![Federal Register / Vol. 81, No. 178 / Wednesday, September 14, 2016 / Notices 63235
IV. Solicitation of Comments For the Commission, by the Division of II. Self-Regulatory Organization’s
Trading and Markets, pursuant to delegated Statement of the Purpose of, and
Interested persons are invited to authority.12 Statutory Basis for, the Proposed Rule
submit written data, views, and Brent J. Fields, Change
arguments concerning the foregoing, Secretary. In its filing with the Commission, the
including whether the proposed rule [FR Doc. 2016–22026 Filed 9–13–16; 8:45 am] Exchange included statements
change is consistent with the Act.
BILLING CODE 8011–01–P concerning the purpose of and basis for
Comments may be submitted by any of the proposed rule change and discussed
the following methods: any comments it received on the
Electronic Comments SECURITIES AND EXCHANGE proposed rule change. The text of these
COMMISSION statements may be examined at the
• Use the Commission’s Internet places specified in Item IV below. The
comment form (http://www.sec.gov/ [Release No. 34–78789; File No. SR– Exchange has prepared summaries, set
rules/sro.shtml); or BatsEDGX–2016–52] forth in Sections A, B, and C below, of
• Send an email to rule-comments@ the most significant parts of such
sec.gov. Please include File Number SR– Self-Regulatory Organizations; Bats statements.
C2–2016–017 on the subject line. EDGX Exchange, Inc.; Notice of Filing
A. Self-Regulatory Organization’s
and Immediate Effectiveness of a
Statement of the Purpose of, and the
Paper Comments Proposed Rule Change to Fees for Use
Statutory Basis for, the Proposed Rule
of Bats EDGX Exchange, Inc.
• Send paper comments in triplicate Change
to Secretary, Securities and Exchange September 8, 2016. 1. Purpose
Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the The Exchange proposes to amend its
Washington, DC 20549–1090. Securities Exchange Act of 1934 (the fee schedule to remove fee code ZA
All submissions should refer to File ‘‘Act’’),1 and Rule 19b–4 thereunder,2 from footnote 1.
Number SR–C2–2016–017. This file notice is hereby given that on August Currently, the Exchange determines
number should be included on the 30, 2016, Bats EDGX Exchange, Inc. (the the liquidity adding rebate that it will
subject line if email is used. To help the ‘‘Exchange’’ or ‘‘EDGX’’) filed with the provide to Members using the
Commission process and review your Securities and Exchange Commission Exchange’s fee code and tiered pricing
(‘‘Commission’’) the proposed rule structure. Retail orders which add
comments more efficiently, please use
change as described in Items I, II and III liquidity yielding fee code ZA receive a
only one method. The Commission will
below, which Items have been prepared rebate of $0.0034 in securities priced at
post all comments on the Commission’s by the Exchange. The Exchange has
Internet Web site (http://www.sec.gov/ or above $1.00, and a rebate of $0.00003
designated the proposed rule change as in securities priced below $1.00. The
rules/sro.shtml). Copies of the one establishing or changing a member
submission, all subsequent Exchange offers additional rebates
due, fee, or other charge imposed by the depending on the volume tiers for
amendments, all written statements Exchange under Section 19(b)(3)(A)(ii) which such Member qualifies. As is the
with respect to the proposed rule of the Act 3 and Rule 19b–4(f)(2) case with any rebate on the Fee
change that are filed with the thereunder,4 which renders the Schedule, to the extent that a Member
Commission, and all written proposed rule change effective upon qualifies for higher rebates than those
communications relating to the filing with the Commission. The provided under a volume tier, the
proposed rule change between the Commission is publishing this notice to higher rebate shall apply. Footnote 1
Commission and any person, other than solicit comments on the proposed rule offers volume tiered rebates ranging
those that may be withheld from the change from interested persons. from $0.0025 to $0.0033 per share to
public in accordance with the orders yielding fee codes B, V, Y, 3, 4
I. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be and ZA. In this case, the corresponding
Statement of the Terms of Substance of
available for Web site viewing and the Proposed Rule Change tiered volume rebates are lower than the
printing in the Commission’s Public standard rebate and therefore do not
Reference Room, 100 F Street NE., The Exchange filed a proposal to result in an additional benefit. As a
Washington, DC 20549 on official amend the fee schedule applicable to point of clarification, the Exchange
business days between the hours of Members 5 and non-Members of the proposes to remove fee code ZA from
10:00 a.m. and 3:00 p.m. Copies of such Exchange pursuant to EDGX Rules Footnote 1.
filing also will be available for 15.1(a) and (c).
Implementation Date
inspection and copying at the principal The text of the proposed rule change
office of the Exchange. All comments The Exchange proposes to implement
is available at the Exchange’s Web site
received will be posted without change; these amendments to its fee schedule as
at www.batstrading.com, at the
the Commission does not edit personal of September 1, 2016.
principal office of the Exchange, and at
identifying information from the Commission’s Public Reference 2. Statutory Basis
submissions. You should submit only Room.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
The Exchange believes that the
information that you wish to make proposed rule change is consistent with
available publicly. All submissions 12 17 CFR 200.30–3(a)(12). the objectives of Section 6 of the Act,6
should refer to File Number SR–C2– 1 15 U.S.C. 78s(b)(1).
in general, and furthers the objectives of
2 17 CFR 240.19b–4.
2016–017, and should be submitted on 3 15 U.S.C. 78s(b)(3)(A)(ii).
Section 6(b)(4),7 in particular, as it is
or before October 5, 2016. 4 17 CFR 240.19b–4(f)(2). designed to provide for the equitable
5 A Member is defined as ‘‘any registered broker
6 15 U.S.C. 78f.
or dealer that has been admitted to membership in
the Exchange.’’ See Exchange Rule 1.5(n). 7 15 U.S.C. 78f(b)(4).
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Document Created: 2016-09-14 02:27:21
Document Modified: 2016-09-14 02:27:21
| 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 63233 |
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