82_FR_11119 82 FR 11087 - Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule

82 FR 11087 - 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 82, Issue 32 (February 17, 2017)

Page Range11087-11089
FR Document2017-03182

Federal Register, Volume 82 Issue 32 (Friday, February 17, 2017)
[Federal Register Volume 82, Number 32 (Friday, February 17, 2017)]
[Notices]
[Pages 11087-11089]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03182]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80031; File No. SR-C2-2017-008]


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

February 13, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on February 1, 2017, 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

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

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

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

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

1. Purpose
    The Exchange proposes to amend its Fees Schedule. The Exchange is 
changing fees for functionality related to its PULSe workstation. The 
fees herein will be effective on February 1, 2017.
    By way of background, the PULSe workstation is a front-end order 
entry system designed for use with respect to orders that may be sent 
to the trading systems of the Exchange. Exchange Trading Permit Holders 
(``TPHs'') may also make workstations available to their customers, 
which may include TPHs, non-broker dealer public customers and non-TPH 
broker dealers.
Drop Copies
    Financial Information eXchange (``FIX'') language-based 
connectivity, upon request, provides customers (both TPH and non-TPH) 
of TPHs that are brokers and PULSe users (``PULSe brokers'') with the 
ability to receive ``drop-copy'' order fill messages from their PULSe 
brokers. These fill messages allow customers to update positions, risk 
calculations and streamline back-office functions.
    The Exchange is proposing reducing the monthly fee to be assessed 
on TPHs who are either receiving or sending drop copies via a PULSe 
workstation.

[[Page 11088]]

Whether the drop copy sender or receiver is assessed the fee is 
dependent upon whether the customer receiving the drop copies is a TPH 
or non-TPH.
    If a customer receiving drop copies is a TPH, that TPH customer 
(the receiving TPH) will be now be charged a fee of $425 per month 
(down from $1000 per month), per PULSe broker from whom it receives 
drop copies via PULSe. For example, if TPH customer A receives drop 
copies from each of PULSe broker A, PULSe broker B, and PULSe broker C 
(all of which are TPHs), TPH A (the receiving TPH) will be charged a 
fee of $1275 per month for receiving drop copies via PULSe from PULSe 
brokers A, B and C (the sending TPHs).
    If a customer receiving drop copies is a non-TPH, the PULSe broker 
(the sending TPH) who sends drop copies via PULSe to that customer will 
now be charged a fee of $400 per month (down from $500 per month). If 
that PULSe broker sends drop copies via PULSe to multiple non-TPH 
customers, the PULSe broker will be charged the fee for each customer. 
For example, if PULSe broker A sends drop copies via its PULSe 
workstation to each of non-TPH customer A, non-TPH customer B and non-
TPH customer C, PULSe broker A (the sending TPH) will be charged a fee 
of $1200 per month for drop copies it sends via PULSe to non-TPH 
customers A, B and C (the receiving non-TPHs).
``OATS Reports'' to ``Equity Order Reports''
    The Exchange is proposing to change the name of its fee relating to 
OATS Reports to ``Equity Order Reports''. The Equity Order Reports 
related to this fee are provided for a PULSe users own use. Electing to 
receive these reports does not currently and will not fulfill any PULSe 
users' OATS reporting obligations. The change will eliminate any 
potential confusion as to whether the Exchange itself or the PULSe 
system is able to fulfill any OATS reporting obligation for a PULSe 
user. Neither the content of the reports nor the manner in which they 
are received from PULSe is changing.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Securities Exchange Act of 1934 (the ``Act'') and the rules and 
regulations thereunder applicable to the Exchange and, in particular, 
the requirements of Section 6(b) of the Act.\3\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \4\ requirements that the rules of an exchange be 
designed to prevent fraudulent and manipulative acts and practices, to 
promote just and equitable principles of trade, to foster cooperation 
and coordination with persons engaged in regulating, clearing, 
settling, processing information with respect to, and 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,\5\ which requires that Exchange rules 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its Trading Permit Holders and other persons using 
its facilities.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78f(b).
    \4\ 15 U.S.C. 78f(b)(5).
    \5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that lowering the $1000 per month fee to $425 
per month on a TPH receiving drop copies from PULSe is reasonable 
because the reduced fee will continue to allow the Exchange to monitor, 
develop and implement upgrade, maintain and customize PULSe to ensure 
the TPH customer receives timely and accurate drop copies while also 
reducing TPH customers' costs. The Exchange believes the fee is 
equitable and not unfairly discriminatory because the monthly fee is 
assessed to any TPH electing to receive drop copies from a PULSe 
broker. Use of the drop copy functionality by a TPH customer is 
voluntary.
    The Exchange believes that lowering the $500 per month fee to $400 
per month on a TPH sending drop copies from PULSe to a non-TPH customer 
is reasonable because the reduced fee will continue to allow the 
Exchange to monitor, develop and implement upgrades, maintain and 
customize PULSe to ensure a non-TPH customer receives timely and 
accurate drop copies while also reducing the sending TPH's costs. The 
Exchange believes the fee is equitable and not unfairly discriminatory 
because the monthly fee is assessed equally to any TPH sending drop 
copies to its non-TPH customers. The Exchange believes that assessing a 
TPH sending drop copies to a non-TPH a monthly fee of $400, as opposed 
to the $425 per month rate assessed to TPH customers receiving drop 
copies from PULSe, is reasonable, equitable, and not unfairly 
discriminatory. Specially, the lower rates are designed to encourage 
non-TPH market participants to interact with the Exchange, which will 
accordingly attract more volume and liquidity to the Exchange and 
benefit all Exchange participants through increased opportunities to 
trade. Use of the drop copy functionality by a non-TPH customer is 
voluntary.
    The Exchange believes that changing the name of the ``OATS 
reporting'' fee to ``Equity Order Reports'' alleviates potential 
confusion and maintains clarity in the Fees Schedule, which removes 
impediments to and perfects the mechanism of a free and open market and 
a national market system, and, in general, protects investors and the 
public interest.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule changes will 
impose any burdens 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 the proposed PULSe-
related fees relate to optional reports and/or functionality and are 
assessed equally on PULSe users or TPH electing to use the 
functionality and/or receive the reports. The Exchange does not believe 
that the proposed change will cause any unnecessary burden on 
intermarket competition because the proposed fees relate to use of an 
Exchange-provided order entry system. To the extent that any proposed 
change makes the Exchange a more attractive marketplace for market 
participants at other exchanges, such market participants are welcome 
to become Exchange market participants.

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

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

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \6\ and paragraph (f) of Rule 19b-4 \7\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such

[[Page 11089]]

action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act. If the Commission takes such action, the Commission will 
institute proceedings to determine whether the proposed rule change 
should be approved or disapproved.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-C2-2017-008 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-C2-2017-008. 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 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-C2-2017-008 and should be 
submitted on or before March 10, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03182 Filed 2-16-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                 Federal Register / Vol. 82, No. 32 / Friday, February 17, 2017 / Notices                                         11087

                                                  C. Self-Regulatory Organization’s                       rules/sro.shtml). Copies of the                       proposed rule change from interested
                                                  Statement on Comments on the                            submission, all subsequent                            persons.
                                                  Proposed Rule Change Received From                      amendments, all written statements
                                                                                                                                                                I. Self-Regulatory Organization’s
                                                  Members, Participants, or Others                        with respect to the proposed rule
                                                                                                                                                                Statement of the Terms of Substance of
                                                    No written comments were solicited                    change that are filed with the
                                                                                                                                                                the Proposed Rule Change
                                                  or received with respect to the proposed                Commission, and all written
                                                                                                          communications relating to the                           The Exchange proposes to amend its
                                                  rule change.
                                                                                                          proposed rule change between the                      Fees Schedule. The text of the proposed
                                                  III. Date of Effectiveness of the                       Commission and any person, other than                 rule change is available on the
                                                  Proposed Rule Change and Timing for                     those that may be withheld from the                   Exchange’s Web site (http://
                                                  Commission Action                                       public in accordance with the                         www.c2exchange.com/Legal/), at the
                                                     The foregoing rule change is effective               provisions of 5 U.S.C. 552, will be                   Exchange’s Office of the Secretary, and
                                                  upon filing pursuant to Section                         available for Web site viewing and                    at the Commission’s Public Reference
                                                  19(b)(3)(A) 8 of the Act and                            printing in the Commission’s Public                   Room.
                                                  subparagraph (f)(2) of Rule 19b–4 9                     Reference Room, 100 F Street NE.,                     II. Self-Regulatory Organization’s
                                                  thereunder, because it establishes a due,               Washington, DC 20549 on official                      Statement of the Purpose of, and
                                                  fee, or other charge imposed by the                     business days between the hours of                    Statutory Basis for, the Proposed Rule
                                                  Exchange.                                               10:00 a.m. and 3:00 p.m. Copies of such               Change
                                                     At any time within 60 days of the                    filing also will be available for
                                                                                                                                                                   In its filing with the Commission, the
                                                  filing of such proposed rule change, the                inspection and copying at the principal
                                                                                                                                                                Exchange included statements
                                                  Commission summarily may                                office of the Exchange. All comments
                                                                                                                                                                concerning the purpose of and basis for
                                                  temporarily suspend such rule change if                 received will be posted without change;               the proposed rule change and discussed
                                                  it appears to the Commission that such                  the Commission does not edit personal                 any comments it received on the
                                                  action is necessary or appropriate in the               identifying information from                          proposed rule change. The text of these
                                                  public interest, for the protection of                  submissions. You should submit only                   statements may be examined at the
                                                  investors, or otherwise in furtherance of               information that you wish to make                     places specified in Item IV below. The
                                                  the purposes of the Act. If the                         available publicly. All submissions                   Exchange has prepared summaries, set
                                                  Commission takes such action, the                       should refer to File Number SR–                       forth in sections A, B, and C below, of
                                                  Commission shall institute proceedings                  NYSEArca–2017–12, and should be                       the most significant aspects of such
                                                  under Section 19(b)(2)(B) 10 of the Act to              submitted on or before March 10, 2017.                statements.
                                                  determine whether the proposed rule                       For the Commission, by the Division of
                                                  change should be approved or                            Trading and Markets, pursuant to delegated            A. Self-Regulatory Organization’s
                                                  disapproved.                                            authority.11                                          Statement of the Purpose of, and
                                                                                                          Eduardo A. Aleman,                                    Statutory Basis for, the Proposed Rule
                                                  IV. Solicitation of Comments                                                                                  Change
                                                                                                          Assistant Secretary.
                                                    Interested persons are invited to
                                                                                                          [FR Doc. 2017–03180 Filed 2–16–17; 8:45 am]           1. Purpose
                                                  submit written data, views, and
                                                  arguments concerning the foregoing,                     BILLING CODE 8011–01–P                                   The Exchange proposes to amend its
                                                  including whether the proposed rule                                                                           Fees Schedule. The Exchange is
                                                  change is consistent with the Act.                                                                            changing fees for functionality related to
                                                                                                          SECURITIES AND EXCHANGE                               its PULSe workstation. The fees herein
                                                  Comments may be submitted by any of
                                                                                                          COMMISSION                                            will be effective on February 1, 2017.
                                                  the following methods:
                                                                                                          [Release No. 34–80031; File No. SR–C2–
                                                                                                                                                                   By way of background, the PULSe
                                                  Electronic Comments                                                                                           workstation is a front-end order entry
                                                                                                          2017–008]
                                                    • Use the Commission’s Internet                                                                             system designed for use with respect to
                                                  comment form (http://www.sec.gov/                       Self-Regulatory Organizations; C2                     orders that may be sent to the trading
                                                  rules/sro.shtml); or                                    Options Exchange, Incorporated;                       systems of the Exchange. Exchange
                                                    • Send an email to rule-comments@                     Notice of Filing and Immediate                        Trading Permit Holders (‘‘TPHs’’) may
                                                  sec.gov. Please include File Number SR–                 Effectiveness of a Proposed Rule To                   also make workstations available to
                                                  NYSEArca–2017–12 on the subject line.                   Amend the Fees Schedule                               their customers, which may include
                                                                                                                                                                TPHs, non-broker dealer public
                                                  Paper Comments                                          February 13, 2017.                                    customers and non-TPH broker dealers.
                                                     • Send paper comments in triplicate                     Pursuant to Section 19(b)(1) of the
                                                  to Brent J. Fields, Secretary, Securities               Securities Exchange Act of 1934 (the                  Drop Copies
                                                  and Exchange Commission, 100 F Street                   ‘‘Act’’),1 and Rule 19b–4 thereunder,2                   Financial Information eXchange
                                                  NE., Washington, DC 20549–1090.                         notice is hereby given that on February               (‘‘FIX’’) language-based connectivity,
                                                  All submissions should refer to File                    1, 2017, C2 Options Exchange,                         upon request, provides customers (both
                                                  Number SR–NYSEArca–2017–12. This                        Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)             TPH and non-TPH) of TPHs that are
                                                  file number should be included on the                   filed with the Securities and Exchange                brokers and PULSe users (‘‘PULSe
                                                  subject line if email is used. To help the              Commission (the ‘‘Commission’’) the                   brokers’’) with the ability to receive
                                                  Commission process and review your                      proposed rule change as described in                  ‘‘drop-copy’’ order fill messages from
                                                                                                                                                                their PULSe brokers. These fill messages
mstockstill on DSK3G9T082PROD with NOTICES




                                                  comments more efficiently, please use                   Items I, II, and III below, which Items
                                                  only one method. The Commission will                    have been prepared by the Exchange.                   allow customers to update positions,
                                                  post all comments on the Commission’s                   The Commission is publishing this                     risk calculations and streamline back-
                                                  Internet Web site (http://www.sec.gov/                  notice to solicit comments on the                     office functions.
                                                                                                                                                                   The Exchange is proposing reducing
                                                    8 15 U.S.C. 78s(b)(3)(A).                               11 17 CFR 200.30–3(a)(12).                          the monthly fee to be assessed on TPHs
                                                    9 17 CFR 240.19b–4(f)(2).                               1 15 U.S.C. 78s(b)(1).                              who are either receiving or sending drop
                                                    10 15 U.S.C. 78s(b)(2)(B).                              2 17 CFR 240.19b–4.                                 copies via a PULSe workstation.


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                                                  11088                            Federal Register / Vol. 82, No. 32 / Friday, February 17, 2017 / Notices

                                                  Whether the drop copy sender or                            6(b)(5) 4 requirements that the rules of                accordingly attract more volume and
                                                  receiver is assessed the fee is dependent                  an exchange be designed to prevent                      liquidity to the Exchange and benefit all
                                                  upon whether the customer receiving                        fraudulent and manipulative acts and                    Exchange participants through
                                                  the drop copies is a TPH or non-TPH.                       practices, to promote just and equitable                increased opportunities to trade. Use of
                                                     If a customer receiving drop copies is                  principles of trade, to foster cooperation              the drop copy functionality by a non-
                                                  a TPH, that TPH customer (the receiving                    and coordination with persons engaged                   TPH customer is voluntary.
                                                  TPH) will be now be charged a fee of                       in regulating, clearing, settling,                         The Exchange believes that changing
                                                  $425 per month (down from $1000 per                        processing information with respect to,                 the name of the ‘‘OATS reporting’’ fee
                                                  month), per PULSe broker from whom                         and facilitating transactions in                        to ‘‘Equity Order Reports’’ alleviates
                                                  it receives drop copies via PULSe. For                     securities, to remove impediments to                    potential confusion and maintains
                                                  example, if TPH customer A receives                        and perfect the mechanism of a free and                 clarity in the Fees Schedule, which
                                                  drop copies from each of PULSe broker                      open market and a national market                       removes impediments to and perfects
                                                  A, PULSe broker B, and PULSe broker                        system, and, in general, to protect                     the mechanism of a free and open
                                                  C (all of which are TPHs), TPH A (the                      investors and the public interest.                      market and a national market system,
                                                  receiving TPH) will be charged a fee of                    Additionally, the Exchange believes the                 and, in general, protects investors and
                                                  $1275 per month for receiving drop                         proposed rule change is consistent with                 the public interest.
                                                  copies via PULSe from PULSe brokers                        Section 6(b)(4) of the Act,5 which
                                                                                                             requires that Exchange rules provide for                B. Self-Regulatory Organization’s
                                                  A, B and C (the sending TPHs).                                                                                     Statement on Burden on Competition
                                                     If a customer receiving drop copies is                  the equitable allocation of reasonable
                                                  a non-TPH, the PULSe broker (the                           dues, fees, and other charges among its                    The Exchange does not believe that
                                                  sending TPH) who sends drop copies                         Trading Permit Holders and other                        the proposed rule changes will impose
                                                  via PULSe to that customer will now be                     persons using its facilities.                           any burdens on competition that are not
                                                  charged a fee of $400 per month (down                         The Exchange believes that lowering                  necessary or appropriate in furtherance
                                                                                                             the $1000 per month fee to $425 per                     of the purposes of the Act. The
                                                  from $500 per month). If that PULSe
                                                                                                             month on a TPH receiving drop copies                    Exchange does not believe that the
                                                  broker sends drop copies via PULSe to
                                                                                                             from PULSe is reasonable because the                    proposed rule change will impose any
                                                  multiple non-TPH customers, the
                                                                                                             reduced fee will continue to allow the                  burden on intramarket competition that
                                                  PULSe broker will be charged the fee for
                                                                                                             Exchange to monitor, develop and                        is not necessary or appropriate in
                                                  each customer. For example, if PULSe
                                                                                                             implement upgrade, maintain and                         furtherance of the purposes of the Act
                                                  broker A sends drop copies via its
                                                                                                             customize PULSe to ensure the TPH                       because the proposed PULSe-related
                                                  PULSe workstation to each of non-TPH
                                                                                                             customer receives timely and accurate                   fees relate to optional reports and/or
                                                  customer A, non-TPH customer B and
                                                                                                             drop copies while also reducing TPH                     functionality and are assessed equally
                                                  non-TPH customer C, PULSe broker A
                                                                                                             customers’ costs. The Exchange believes                 on PULSe users or TPH electing to use
                                                  (the sending TPH) will be charged a fee                    the fee is equitable and not unfairly
                                                  of $1200 per month for drop copies it                                                                              the functionality and/or receive the
                                                                                                             discriminatory because the monthly fee                  reports. The Exchange does not believe
                                                  sends via PULSe to non-TPH customers                       is assessed to any TPH electing to
                                                  A, B and C (the receiving non-TPHs).                                                                               that the proposed change will cause any
                                                                                                             receive drop copies from a PULSe                        unnecessary burden on intermarket
                                                  ‘‘OATS Reports’’ to ‘‘Equity Order                         broker. Use of the drop copy                            competition because the proposed fees
                                                  Reports’’                                                  functionality by a TPH customer is                      relate to use of an Exchange-provided
                                                                                                             voluntary.                                              order entry system. To the extent that
                                                     The Exchange is proposing to change                        The Exchange believes that lowering
                                                  the name of its fee relating to OATS                                                                               any proposed change makes the
                                                                                                             the $500 per month fee to $400 per                      Exchange a more attractive marketplace
                                                  Reports to ‘‘Equity Order Reports’’. The                   month on a TPH sending drop copies
                                                  Equity Order Reports related to this fee                                                                           for market participants at other
                                                                                                             from PULSe to a non-TPH customer is                     exchanges, such market participants are
                                                  are provided for a PULSe users own use.                    reasonable because the reduced fee will
                                                  Electing to receive these reports does                                                                             welcome to become Exchange market
                                                                                                             continue to allow the Exchange to                       participants.
                                                  not currently and will not fulfill any                     monitor, develop and implement
                                                  PULSe users’ OATS reporting                                upgrades, maintain and customize                        C. Self-Regulatory Organization’s
                                                  obligations. The change will eliminate                     PULSe to ensure a non-TPH customer                      Statement on Comments on the
                                                  any potential confusion as to whether                      receives timely and accurate drop                       Proposed Rule Change Received From
                                                  the Exchange itself or the PULSe system                    copies while also reducing the sending                  Members, Participants, or Others
                                                  is able to fulfill any OATS reporting                      TPH’s costs. The Exchange believes the                    The Exchange neither solicited nor
                                                  obligation for a PULSe user. Neither the                   fee is equitable and not unfairly                       received comments on the proposed
                                                  content of the reports nor the manner in                   discriminatory because the monthly fee                  rule change.
                                                  which they are received from PULSe is                      is assessed equally to any TPH sending
                                                  changing.                                                  drop copies to its non-TPH customers.                   III. Date of Effectiveness of the
                                                                                                             The Exchange believes that assessing a                  Proposed Rule Change and Timing for
                                                  2. Statutory Basis                                                                                                 Commission Action
                                                                                                             TPH sending drop copies to a non-TPH
                                                     The Exchange believes the proposed                      a monthly fee of $400, as opposed to the                   The foregoing rule change has become
                                                  rule change is consistent with the                         $425 per month rate assessed to TPH                     effective pursuant to Section 19(b)(3)(A)
                                                  Securities Exchange Act of 1934 (the                       customers receiving drop copies from                    of the Act 6 and paragraph (f) of Rule
                                                  ‘‘Act’’) and the rules and regulations
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                             PULSe, is reasonable, equitable, and not                19b–4 7 thereunder. At any time within
                                                  thereunder applicable to the Exchange                      unfairly discriminatory. Specially, the                 60 days of the filing of the proposed rule
                                                  and, in particular, the requirements of                    lower rates are designed to encourage                   change, the Commission summarily may
                                                  Section 6(b) of the Act.3 Specifically,                    non-TPH market participants to interact                 temporarily suspend such rule change if
                                                  the Exchange believes the proposed rule                    with the Exchange, which will                           it appears to the Commission that such
                                                  change is consistent with the Section
                                                                                                               4 15   U.S.C. 78f(b)(5).                                6 15   U.S.C. 78s(b)(3)(A).
                                                    3 15   U.S.C. 78f(b).                                      5 15   U.S.C. 78f(b)(4).                                7 17   CFR 240.19b–4(f).



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                                                                                Federal Register / Vol. 82, No. 32 / Friday, February 17, 2017 / Notices                                                    11089

                                                  action is necessary or appropriate in the               2017–008 and should be submitted on                    of those statements may be examined at
                                                  public interest, for the protection of                  or before March 10, 2017.                              the places specified in Item IV below.
                                                  investors, or otherwise in furtherance of                 For the Commission, by the Division of               The Exchange has prepared summaries,
                                                  the purposes of the Act. If the                         Trading and Markets, pursuant to delegated             set forth in sections A, B, and C below,
                                                  Commission takes such action, the                       authority.8                                            of the most significant parts of such
                                                  Commission will institute proceedings                   Eduardo A. Aleman,                                     statements.
                                                  to determine whether the proposed rule                  Assistant Secretary.                                   A. Self-Regulatory Organization’s
                                                  change should be approved or                            [FR Doc. 2017–03182 Filed 2–16–17; 8:45 am]            Statement of the Purpose of, and the
                                                  disapproved.
                                                                                                          BILLING CODE 8011–01–P                                 Statutory Basis for, the Proposed Rule
                                                  IV. Solicitation of Comments                                                                                   Change
                                                    Interested persons are invited to                                                                            1. Purpose
                                                                                                          SECURITIES AND EXCHANGE
                                                  submit written data, views, and
                                                                                                          COMMISSION                                                The Exchange proposes certain
                                                  arguments concerning the foregoing,
                                                                                                                                                                 changes, described below under
                                                  including whether the proposed rule                     [Release No. 34–80028; File No. SR–
                                                                                                          NYSEArca–2017–09]                                      ‘‘Application of Generic Listing
                                                  change is consistent with the Act.
                                                                                                                                                                 Requirements’’, regarding investments
                                                  Comments may be submitted by any of
                                                                                                          Self-Regulatory Organizations; NYSE                    of the Janus Short Duration Income ETF
                                                  the following methods:
                                                                                                          Arca, Inc.; Notice of Filing of Proposed               (the ‘‘Fund’’). The shares (‘‘Shares’’) of
                                                  Electronic Comments                                     Rule Change Regarding Investments of                   the Fund are currently listed and traded
                                                    • Use the Commission’s Internet                       the Janus Short Duration Income ETF                    on the Exchange under Commentary .01
                                                  comment form (http://www.sec.gov/                       Under NYSE Arca Equities Rule 8.600                    to NYSE Arca Equities Rule 8.600,
                                                  rules/sro.shtml); or                                                                                           which provides generic criteria
                                                                                                          February 13, 2017.                                     applicable to the listing and trading of
                                                    • Send an email to rule-comments@
                                                  sec.gov. Please include File Number SR–                    Pursuant to Section 19(b)(1) 1 of the               Managed Fund Shares.4 The Shares are
                                                  C2–2017–008 on the subject line.                        Securities Exchange Act of 1934 (the                   offered by Janus Detroit Street Trust (the
                                                                                                          ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                 ‘‘Trust’’), which is registered with the
                                                  Paper Comments                                          notice is hereby given that, on January                Commission as an open-end
                                                     • Send paper comments in triplicate                  30, 2017, NYSE Arca, Inc. (the                         management investment company.5
                                                  to Secretary, Securities and Exchange                   ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with              Janus Capital Management LLC (the
                                                  Commission, 100 F Street NE.,                           the Securities and Exchange                            ‘‘Adviser’’) is the investment adviser for
                                                  Washington, DC 20549–1090.                              Commission (the ‘‘Commission’’) the                    the Fund. ALPS Distributors, Inc. (the
                                                  All submissions should refer to File                    proposed rule change as described in                   ‘‘Distributor’’) is the principal
                                                  Number SR–C2–2017–008. This file                        Items I and II below, which Items have                 underwriter and distributor of the
                                                  number should be included on the                        been prepared by the self-regulatory                   Fund’s Shares. State Street Bank and
                                                  subject line if email is used. To help the              organization. The Commission is                        Trust Company serves as the custodian,
                                                  Commission process and review your                      publishing this notice to solicit                      administrator, and transfer agent
                                                  comments more efficiently, please use                   comments on the proposed rule change                   (‘‘Transfer Agent’’) for the Fund.6
                                                  only one method. The Commission will                    from interested persons.                                  Commentary .06 to Rule 8.600
                                                  post all comments on the Commission’s                                                                          provides that, if the investment adviser
                                                                                                          I. Self-Regulatory Organization’s                      to the investment company issuing
                                                  Internet Web site (http://www.sec.gov/                  Statement of the Terms of Substance of
                                                  rules/sro.shtml). Copies of the                                                                                Managed Fund Shares is affiliated with
                                                                                                          the Proposed Rule Change
                                                  submission, all subsequent
                                                                                                             The Exchange proposes to amend [sic]                   4 A Managed Fund Share is a security that
                                                  amendments, all written statements                                                                             represents an interest in an investment company
                                                                                                          certain changes regarding investments
                                                  with respect to the proposed rule                                                                              registered under the Investment Company Act of
                                                                                                          of the Janus Short Duration Income ETF,
                                                  change that are filed with the                                                                                 1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as
                                                                                                          which is currently listed and traded on                an open-end investment company or similar entity
                                                  Commission, and all written
                                                                                                          the Exchange under NYSE Arca Equities                  that invests in a portfolio of securities selected by
                                                  communications relating to the                                                                                 its investment adviser consistent with its
                                                                                                          Rule 8.600 (‘‘Managed Fund Shares’’).
                                                  proposed rule change between the                                                                               investment objectives and policies. In contrast, an
                                                                                                          The proposed rule change is available                  open-end investment company that issues
                                                  Commission and any person, other than
                                                                                                          on the Exchange’s Web site at                          Investment Company Units, listed and traded on
                                                  those that may be withheld from the
                                                                                                          www.nyse.com, at the principal office of               the Exchange under NYSE Arca Equities Rule
                                                  public in accordance with the                                                                                  5.2(j)(3), seeks to provide investment results that
                                                                                                          the Exchange, and at the Commission’s
                                                  provisions of 5 U.S.C. 552, will be                                                                            correspond generally to the price and yield
                                                                                                          Public Reference Room.                                 performance of a specific foreign or domestic stock
                                                  available for Web site viewing and
                                                                                                                                                                 index, fixed income securities index or combination
                                                  printing in the Commission’s Public                     II. Self-Regulatory Organization’s                     thereof.
                                                  Reference Room, 100 F Street NE.,                       Statement of the Purpose of, and                          5 Shares of the Fund commenced trading on the

                                                  Washington, DC 20549, on official                       Statutory Basis for, the Proposed Rule                 Exchange on November 17, 2016 pursuant to
                                                  business days between the hours of                      Change                                                 Commentary .01 to NYSE Arca Equities Rule 8.600.
                                                                                                                                                                    6 The Trust is registered under the 1940 Act. On
                                                  10:00 a.m. and 3:00 p.m. Copies of the                     In its filing with the Commission, the              November 16, 2016, the Trust filed with the
                                                  filing also will be available for                       self-regulatory organization included                  Commission its registration statement on Form N–
                                                  inspection and copying at the principal                 statements concerning the purpose of,                  1A under the Securities Act of 1933 (15 U.S.C. 77a)
                                                  office of the Exchange. All comments                                                                           (‘‘Securities Act’’), and under the 1940 Act relating
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                          and basis for, the proposed rule change                to the Fund (File Nos. 333–207814 and 811–23112)
                                                  received will be posted without change;                 and discussed any comments it received                 (‘‘Registration Statement’’). The description of the
                                                  the Commission does not edit personal                   on the proposed rule change. The text                  operation of the Trust and the Fund herein is based,
                                                  identifying information from                                                                                   in part, on the Registration Statement. In addition,
                                                  submissions. You should submit only                       8 17
                                                                                                                                                                 the Commission has issued an order granting
                                                                                                                 CFR 200.30–3(a)(12).                            certain exemptive relief to the Trust under the 1940
                                                  information that you wish to make                         1 15 U.S.C. 78s(b)(1).                               Act. See Investment Company Act Release No.
                                                  available publicly. All submissions                       2 15 U.S.C. 78a.
                                                                                                                                                                 31540 (March 30, 2015) (File No. 812–13819)
                                                  should refer to File Number SR–C2–                        3 17 CFR 240.19b–4.                                  (‘‘Exemptive Order’’).



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Document Created: 2017-02-17 00:28:35
Document Modified: 2017-02-17 00:28:35
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 11087 

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