82 FR 47782 - Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 197 (October 13, 2017)

[Federal Register Volume 82, Number 197 (Friday, October 13, 2017)]
[Notices]
[Pages 47782-47784]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-22158]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81836; File No. SR-C2-2017-026]


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

October 6, 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 September 21, 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 and II, below, which Items have been prepared by the 
Exchange. The Exchange filed the proposal as a ``non-controversial'' 
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
\3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend its Fees Schedule to correct an 
inadvertent marking error made to the Exhibit 5 in a previous rule 
filing.
    The text of the proposed rule change is also available on the 
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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

[[Page 47783]]

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 to correct an 
inadvertent marking error made to the Exhibit 5 in a previous rule 
filing. Specifically, on April 13, 2017, the Exchange filed a rule 
filing, SR-C2-2017-015, which proposed to eliminate certain PULSe fees, 
effective April 3, 2017.\5\ The Exchange notes that it mistakenly used 
outdated text contained in Section 11 of the Fees Schedule in the 
Exhibit 5 of that filing. Particularly, prior to filing SR-C2-2017-015, 
the Exchange had reduced the monthly fee assessed to TPHs who either 
receive or send drop copies via a PULSe workstation. More specifically, 
if a customer receiving drop copies is a TPH, that TPH customer (the 
receiving TPH) is now charged a fee of $425 per month (down from $1000 
per month), per PULSe broker from whom it receives drop copies via 
PULSe. 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 is now charged a fee of $400 per month (down from $500 per 
month).\6\ The Exhibit 5 filed in SR-C2-2017-015 however, inadvertently 
did not reflect the new prices that had previously been adopted for 
Drop Copy fees (i.e., $425 per month and $400 per month). Rather it 
listed the older prices of $1,000 per month and $500 per month, 
respectively. The Exchange notes that it was not its intention to 
revert back to the old pricing and that no such change was otherwise 
implemented, referenced or implied in the 19b-4 of SR-C2-2017-008 or 
any other filing since then. Rather it was an inadvertent mistake that 
the Exchange seeks to correct.
---------------------------------------------------------------------------

    \5\ The Exchange initially filed the proposed fee change on 
April 3, 2017 (SR-C2-2017-012). On April 13, 2017, the Exchange 
withdrew that filing and submitted SR-C2-2017-015. See Securities 
Exchange Act Release No. 80473 (April 17, 2017), 82 FR 18790 (April 
21, 2017) (SR-C2-2017-015).
    \6\ See Securities Exchange Act Release No. 80031 (February 13, 
2017), 82 FR 11087 (February 17, 2017) (SR-C2-2017-008). The 
Exchange notes that in the filing that adopted the Drop Copy fees, 
the appended footnote for the ``Drop Copy (received by non-TPH 
customer)'' fee mistakenly referenced the fee as $1,000/month 
instead of $500/month. See Securities Exchange Act Release No. 79807 
(January 17, 2017), 82 FR 8238 (January 24, 2017) (SR-C2-2017-002).
---------------------------------------------------------------------------

    Lastly, the Exchange notes that it had previously renamed the 
``OATS Reporting'' fee to the ``Equity Order Reports'' fee.\7\ The 
Exchange inadvertently did not incorporate the name change in the 
Exhibit 5 of SR-C2-2017-015. The Exchange notes that it was not its 
intention to revert back to the old name and that no such change was 
otherwise referenced or implied in the 19b-4 of SR-C2-2017-008 or any 
other filing since then.
---------------------------------------------------------------------------

    \7\ Id.
---------------------------------------------------------------------------

    Accordingly, the Exchange proposes to amend the Fees Schedule to 
reflect the accurate prices of the Drop Copy Fees and the accurate name 
of the Equity Order Reports fee. No substantive changes are being made 
by the proposed rule change.
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.\8\ Specifically, the 
Exchange believes the proposed rule change is consistent with the 
Section 6(b)(5) \9\ 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes correcting an inadvertent marking error from 
a previous rule filing in order to accurately reflect the Drop Copy 
prices and the name of the Equity Order Reports fee will alleviate 
potential confusion, thereby removing impediments to and perfecting the 
mechanism of a free and open market and a national market system and 
protecting investors and the public interest.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. As discussed above, the 
proposed change is merely intended to correct an inadvertent marking 
error made in a previous rule filing, which will alleviate potential 
confusion.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \10\ and 
subparagraph (f)(6) Rule 19b-4 thereunder.\11\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange requests 
that the Commission waive the 30-day operative delay. The Exchange 
notes that currently the Fees Schedule doesn't reflect accurate fees 
relating to Drop Copy fees and the accurate name of the Equity Order 
Reports fee. C2 also explains that the proposal would allow immediate 
correction of the Fees Schedule, and could avoid potential confusion to 
market participants regarding the applicability of its fees. The 
Commission believes that waiving

[[Page 47784]]

the 30-day operative delay is consistent with the protection of 
investors and the public interest as it will allow the Exchange to 
accurately represent the fees it charges and thereby avoid potential 
confusion of market participants. Accordingly, the Commission hereby 
waives the 30-day operative delay and designates the proposed rule 
change operative upon filing.\14\
---------------------------------------------------------------------------

    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of 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.

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-C2-2017-026 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-C2-2017-026. 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-C2-2017-026 and should be 
submitted on or before November 3, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-22158 Filed 10-12-17; 8:45 am]
 BILLING CODE 8011-01-P