82 FR 18790 - 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 76 (April 21, 2017)
Federal Register Volume 82, Issue 76 (April 21, 2017)
| Page Range | 18790-18792 | |
| FR Document | 2017-08061 |
[Federal Register Volume 82, Number 76 (Friday, April 21, 2017)] [Notices] [Pages 18790-18792] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-08061] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80473; File No. SR-C2-2017-015] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule April 17, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934,\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on April 13, 2017, C2 Options Exchange, Incorporated (``Exchange'' or ``C2'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Fees Schedule. The text of the proposed rule change is available on the Exchange's Web site (http://www.c2exchange.com/Legal/), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Fees Schedule.\3\ Specifically, the Exchange is eliminating certain fees relating to the PULSe workstation. 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. --------------------------------------------------------------------------- \3\ The Exchange initially filed the proposed fee change on April 3, 2017 (SR-C2-2017-012). On April 13 [sic], 2017, the Exchange withdrew that filing and submitted this filing. The Commission notes that C2 withdrew C2-2017-012 on April 17, 2017. --------------------------------------------------------------------------- The Exchange first proposes to eliminate the Away-Market Routing Intermediary fee. This fee is payable by a Routing Intermediary and only applicable for away-market routing from any PULSe workstation for which it serves as the Routing Intermediary. The fee is $0.02 per contract or share equivalent for the first million contracts or share equivalent executed in a month for executions on all away markets aggregated across all such PULSe workstations, and $0.03 per contract or share equivalent for each additional contract or share equivalent executed in the same month on all away markets. The Exchange also proposes to eliminate the C2 Routing fee. The C2 Routing fee is payable by a TPH and only applicable for routing to C2 from non-TPH PULSe workstations made available by the TPH. The fee is $0.02 [[Page 18791]] per contract or share equivalent for the first 1 million contracts or share equivalent executed in a month on C2 that originate from non-TPH PULSe workstations made available by the TPH, and $0.03 per contract or share equivalent for each additional contract or share equivalent executed on C2 in the same month from the non-TPH PULSe workstations made available by the TPH. The Exchange notes it no longer wishes to assess these fees. Lastly, the Exchange proposes to eliminate the Routing Intermediary Inactivity fee. The Routing Intermediary Inactivity fee would be charged to a Routing Intermediary in the calendar year after the year in which the Routing Intermediary was charged the Routing Intermediary Certification Fee. The fee is $5,000/year less the aggregate amount of Away-Market Routing Intermediary and C2 Routing fees charged to a Routing Intermediary during that calendar year (if Routing Intermediary was charged less than an aggregate of $5,000 in Away-Market Routing Intermediary and C2 Routing fees that year).\4\ As the Exchange is eliminating both the Away-Market Routing Intermediary and C2 Routing fees and the inactivity fee is based in part on the amount of those fees assessed, the Exchange proposes to eliminate the inactivity fee as well. --------------------------------------------------------------------------- \4\ The Exchange notes that in the filing that adopted the Routing Intermediary Inactivity fee, it inadvertently referenced the CBOE Routing fee instead of the C2 Routing Fee. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\5\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \6\ requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act,\7\ which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes eliminating the Away-Market Routing Intermediary fee, C2 Routing fee and Routing Intermediary Inactivity fee is reasonable because market participants who would otherwise be subject to those fees will no longer be assessed the fees. The Exchange believes it's reasonable, equitable and not unfairly discriminatory because it applies uniformly to the applicable market participants (i.e., applies to all Routing Intermediaries and TPHs that make the PULSe workstations available to non-TPHs). 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 rule change to eliminate certain PULSe fees applies to all applicable users of the PULSe workstation. The Exchange does not believe that the proposed change will cause any unnecessary burden on intermarket competition because the proposed relates 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 is effective upon filing pursuant to Section 19(b)(3)(A) \8\ of the Act and subparagraph (f)(2) of Rule 19b- 4 \9\ thereunder, because it establishes a due, fee, or other charge imposed by the Exchange. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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) \10\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \10\ 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-C2-2017-015 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-C2-2017-015. 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 [[Page 18792]] 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-C2-2017-015 and should be submitted on or before May 12, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2017-08061 Filed 4-20-17; 8:45 am] BILLING CODE 8011-01-P
![18790 Federal Register / Vol. 82, No. 76 / Friday, April 21, 2017 / Notices
C. Self-Regulatory Organization’s those that may be withheld from the Exchange’s Office of the Secretary, and
Statement on Comments on the public in accordance with the at the Commission’s Public Reference
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be Room.
Members, Participants, or Others available for Web site viewing and
II. Self-Regulatory Organization’s
No written comments were either printing in the Commission’s Public
Reference Room, 100 F Street NE., Statement of the Purpose of, and
solicited or received. Statutory Basis for, the Proposed Rule
Washington, DC 20549, on official
III. Date of Effectiveness of the business days between the hours of Change
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the In its filing with the Commission, the
Commission Action filing also will be available for Exchange included statements
The foregoing rule change has become inspection and copying at the principal concerning the purpose of and basis for
effective pursuant to Section office of the Exchange. All comments the proposed rule change and discussed
19(b)(3)(A)(ii) of the Act.35 received will be posted without change; any comments it received on the
At any time within 60 days of the the Commission does not edit personal proposed rule change. The text of these
filing of the proposed rule change, the identifying information from statements may be examined at the
Commission summarily may submissions. You should submit only places specified in Item IV below. The
temporarily suspend such rule change if information that you wish to make Exchange has prepared summaries, set
it appears to the Commission that such available publicly. All submissions forth in sections A, B, and C below, of
action is: (i) Necessary or appropriate in should refer to File Number SR–Phlx– the most significant aspects of such
the public interest; (ii) for the protection 2017–29, and should be submitted on or statements.
of investors; or (iii) otherwise in before May 12, 2017.
A. Self-Regulatory Organization’s
furtherance of the purposes of the Act. For the Commission, by the Division of Statement of the Purpose of, and
If the Commission takes such action, the Trading and Markets, pursuant to delegated
Statutory Basis for, the Proposed Rule
Commission shall institute proceedings authority.36
Change
to determine whether the proposed rule Brent J. Fields,
should be approved or disapproved. Secretary. 1. Purpose
IV. Solicitation of Comments [FR Doc. 2017–08056 Filed 4–20–17; 8:45 am] The Exchange proposes to amend its
Interested persons are invited to
BILLING CODE 8011–01–P Fees Schedule.3 Specifically, the
submit written data, views, and Exchange is eliminating certain fees
arguments concerning the foregoing, relating to the PULSe workstation. By
SECURITIES AND EXCHANGE way of background, the PULSe
including whether the proposed rule COMMISSION
change is consistent with the Act. workstation is a front-end order entry
Comments may be submitted by any of [Release No. 34–80473; File No. SR–C2– system designed for use with respect to
the following methods: 2017–015] orders that may be sent to the trading
systems of the Exchange. Exchange
Electronic Comments Self-Regulatory Organizations; C2 Trading Permit Holders (‘‘TPHs’’) may
• Use the Commission’s Internet Options Exchange, Incorporated; also make workstations available to
comment form (http://www.sec.gov/ Notice of Filing and Immediate their customers, which may include
rules/sro.shtml); or Effectiveness of a Proposed Rule To TPHs, non-broker dealer public
• Send an email to rule-comments@ Amend the Fees Schedule customers and non-TPH broker dealers.
sec.gov. Please include File Number SR– April 17, 2017. The Exchange first proposes to
Phlx–2017–29 on the subject line. Pursuant to Section 19(b)(1) of the eliminate the Away-Market Routing
Securities Exchange Act of 1934,1 and Intermediary fee. This fee is payable by
Paper Comments
Rule 19b–4 thereunder,2 notice is a Routing Intermediary and only
• Send paper comments in triplicate applicable for away-market routing from
hereby given that on April 13, 2017, C2
to Secretary, Securities and Exchange any PULSe workstation for which it
Options Exchange, Incorporated
Commission, 100 F Street NE., serves as the Routing Intermediary. The
(‘‘Exchange’’ or ‘‘C2’’) filed with the
Washington, DC 20549–1090. fee is $0.02 per contract or share
Securities and Exchange Commission
All submissions should refer to File (‘‘Commission’’) the proposed rule equivalent for the first million contracts
Number SR–Phlx–2017–29. This file change as described in Items I and II or share equivalent executed in a month
number should be included on the below, which Items have been prepared for executions on all away markets
subject line if email is used. To help the by the Exchange. The Commission is aggregated across all such PULSe
Commission process and review your publishing this notice to solicit workstations, and $0.03 per contract or
comments more efficiently, please use comments on the proposed rule change share equivalent for each additional
only one method. The Commission will from interested persons. contract or share equivalent executed in
post all comments on the Commission’s the same month on all away markets.
Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s The Exchange also proposes to
rules/sro.shtml). Copies of the Statement of the Terms of Substance of eliminate the C2 Routing fee. The C2
submission, all subsequent the Proposed Rule Change Routing fee is payable by a TPH and
amendments, all written statements The Exchange proposes to amend its only applicable for routing to C2 from
sradovich on DSK3GMQ082PROD with NOTICES
with respect to the proposed rule Fees Schedule. The text of the proposed non-TPH PULSe workstations made
change that are filed with the rule change is available on the available by the TPH. The fee is $0.02
Commission, and all written Exchange’s Web site (http://
communications relating to the www.c2exchange.com/Legal/), at the 3 The Exchange initially filed the proposed fee
proposed rule change between the change on April 3, 2017 (SR–C2–2017–012). On
April 13 [sic], 2017, the Exchange withdrew that
Commission and any person, other than 36 17 CFR 200.30–3(a)(12). filing and submitted this filing. The Commission
1 15 U.S.C. 78s(b)(1). notes that C2 withdrew C2–2017–012 on April 17,
35 15 U.S.C. 78s(b)(3)(A)(ii). 2 17 CFR 240.19b–4. 2017.
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![18792 Federal Register / Vol. 82, No. 76 / Friday, April 21, 2017 / Notices
10:00 a.m. and 3:00 p.m. Copies of the and at the Commission’s Public The Exchange proposes to amend the
filing also will be available for Reference Room. definition so that it instead reads:
inspection and copying at the principal ‘‘Affiliate’’ means (i) an affiliate of a
II. Self-Regulatory Organization’s Member of at least 75% common
office of the Exchange. All comments
Statement of the Purpose of, and ownership between the firms as
received will be posted without change;
Statutory Basis for, the Proposed Rule reflected on each firm’s Form BD,
the Commission does not edit personal
Change Schedule A, or (ii) the Appointed
identifying information from
submissions. You should submit only In its filing with the Commission, the Market Maker of an Appointed EEM (or,
information that you wish to make Exchange included statements conversely, the Appointed EEM of an
available publicly. All submissions concerning the purpose of and basis for Appointed Market Maker). An
should refer to File Number SR–C2– the proposed rule change and discussed ‘‘Appointed Market Maker’’ is a MIAX
2017–015 and should be submitted on any comments it received on the PEARL Market Maker (who does not
or before May 12, 2017. proposed rule change. The text of these otherwise have a corporate affiliation
statements may be examined at the based upon common ownership with an
For the Commission, by the Division of
Trading and Markets, pursuant to delegated places specified in Item IV below. The EEM) that has been appointed by an
authority.11 Exchange has prepared summaries, set EEM and an ‘‘Appointed EEM’’ is an
Brent J. Fields, forth in sections A, B, and C below, of EEM (who does not otherwise have a
the most significant aspects of such corporate affiliation based upon
Secretary.
statements. common ownership with a MIAX
[FR Doc. 2017–08061 Filed 4–20–17; 8:45 am]
A. Self-Regulatory Organization’s PEARL Market Maker) that has been
BILLING CODE 8011–01–P
Statement of the Purpose of, and the appointed by a MIAX PEARL Market
Statutory Basis for, the Proposed Rule Maker, pursuant to the following
SECURITIES AND EXCHANGE Change process. A MIAX PEARL Market Maker
COMMISSION appoints an EEM and an EEM appoints
1. Purpose a MIAX PEARL Market Maker, for the
[Release No. 34–80468; File No. SR– The Exchange proposes to amend its purposes of the Fee Schedule, by each
PEARL–2017–18] completing and sending an executed
Fee Schedule to permit Exchange
Market Makers 3 to appoint Electronic Volume Aggregation Request Form by
Self-Regulatory Organizations; MIAX email to membership@miaxoptions.com
PEARL, LLC; Notice of Filing and Exchange Members 4 (‘‘EEMs’’), and vice
versa, as ‘‘Affiliates,’’ solely for no later than 2 business days prior to
Immediate Effectiveness of a Proposed the first business day of the month in
Rule Change To Amend the MIAX purposes of calculating transaction
volume in order to qualify for certain which the designation is to become
PEARL Fee Schedule effective. Transmittal of a validly
transaction rebate and fee incentives
April 17, 2017. under the Fee Schedule. The Exchange completed and executed form to the
Pursuant to the provisions of Section notes that this concept of appointment Exchange along with the Exchange’s
19(b)(1) of the Securities Exchange Act between market makers and order flow acknowledgement of the effective
of 1934 (‘‘Act’’) 1 and Rule 19b–4 providers currently exists at a number of designation to each of the Market Maker
thereunder,2 notice is hereby given that other exchanges, including Bats BZX and EEM will be viewed as acceptance
on April 6, 2017, MIAX PEARL, LLC Exchange, Inc. (‘‘BATS’’), Bats EDGX of the appointment. The Exchange will
(‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed Exchange, Inc. (‘‘EDGX’’), Chicago only recognize one designation per
with the Securities and Exchange Board Options Exchange, Incorporated Member. A Member may make a
Commission (‘‘Commission’’) a (‘‘CBOE’’), NYSE Amex Options LLC designation not more than once every 12
proposed rule change as described in (‘‘Amex Options’’), and NASDAQ PHLX months (from the date of its most recent
Items I, II, and III below, which Items LLC (‘‘PHLX’’), as more fully discussed designation), which designation shall
have been substantially prepared by the below. remain in effect unless or until the
Exchange. The Commission is In order for the Exchange to Exchange receives written notice
publishing this notice to solicit implement this concept of appointment, submitted 2 business days prior to the
comments on the proposed rule change the Exchange proposes to amend the first business day of the month from
from interested persons. definition of ‘‘Affiliate’’ contained in the either Member indicating that the
Definitions section of the Fee Schedule. appointment has been terminated.
I. Self-Regulatory Organization’s The definition of ‘‘Affiliate’’ currently Designations will become operative on
Statement of the Terms of Substance of reads: the first business day of the effective
the Proposed Rule Change ‘‘Affiliate’’ means an affiliate of a month and may not be terminated prior
The Exchange is filing a proposal to Member of at least 75% common to the end of the month. Execution data
amend the MIAX PEARL Fee Schedule ownership between the firms as and reports will be provided to both
(the ‘‘Fee Schedule’’). reflected on each firm’s Form BD, parties.
The Exchange initially filed the Schedule A. The purpose of the proposed rule
proposal on March 29, 2017 (SR– change is to increase opportunities for
PEARL–2017–14). That filing was 3 The term ‘‘Market Maker’’ means a Member EEMs and Market Makers, who do not
withdrawn and replaced with the registered with the Exchange for the purpose of otherwise have a corporate affiliation
making markets in options contracts traded on the based upon common ownership with a
current filing (SR–PEARL–2017–18). Exchange and that is vested with the rights and
sradovich on DSK3GMQ082PROD with NOTICES
The text of the proposed rule change responsibilities specified in Chapter VI of the
MIAX PEARL Market Maker or EEM, as
is available on the Exchange’s Web site Exchange’s Rules. See Exchange Rule 100. the case may be, to potentially qualify
at http://www.miaxoptions.com/rule- 4 The term ‘‘Electronic Exchange Member’’ or for tiered pricing incentives on the
filings/pearl at MIAX’s principal office, ‘‘EEM’’ means the holder of a Trading Permit who Exchange. Specifically, the Exchange
is a Member representing as agent Public Customer proposes to allow a MIAX PEARL
Orders and Non-Customer Orders on the Exchange
11 17 CFR 200.30–3(a)(12). and those non-Market Maker Members conducting
Market Maker to designate an EEM as its
1 15 U.S.C. 78s(b)(1). proprietary trading. EEMs are deemed ‘‘members’’ ‘‘Appointed EEM’’ and for an EEM to
2 17 CFR 240.19b–4. under the Exchange Act. See Exchange Rule 100. designate a MIAX PEARL Market Maker
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Document Created: 2017-04-21 01:19:07
Document Modified: 2017-04-21 01:19:07
| 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 | 82 FR 18790 |
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