82 FR 7904 - 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 13 (January 23, 2017)
Federal Register Volume 82, Issue 13 (January 23, 2017)
| Page Range | 7904-7906 | |
| FR Document | 2017-01298 |
[Federal Register Volume 82, Number 13 (Monday, January 23, 2017)] [Notices] [Pages 7904-7906] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-01298] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79796; File No. SR-C2-2017-003] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule January 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 January 3, 2017, C2 Options Exchange, Incorporated (the ``Exchange'' or ``C2'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of 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:// [[Page 7905]] 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. Specifically, the Exchange proposes to increase the fees charged for a CMI Login ID and FIX Login ID. The Exchange currently assesses $500 per Login ID, per month for CMI Login IDs and FIX Login IDs. The Exchange has expended significant resources setting up, providing and maintaining this connectivity and has ongoing and increasing costs associated with maintaining connectivity. The Exchange desires to recoup such costs and as such, proposes to increase the monthly fees from $500 per Login ID, per month to $550 per Login ID, per month. 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 increasing the CMI Login ID and FIX Login ID fees is reasonable because the Exchange desires to recoup increasing costs associated with maintaining connectivity to C2. The Exchange believes it's equitable and not unfairly discriminatory because all Permit Holders will be assessed the same amount for Login ID fees. B. Self-Regulatory Organization's Statement on Burden on Competition C2 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. 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 all Permit Holders will be assessed the same Login ID fees and because the increased fee will help the Exchange recoup costs associated with maintaining connectivity to the Exchange. The Exchange does not believe that the proposed change will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act because it only applies to trading on the Exchange. Should the proposed change make C2 a more attractive trading venue for market participants at other exchanges, such market participants may elect to become market participants at C2. 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 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. --------------------------------------------------------------------------- \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 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-C2-2017-003 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-C2-2017-003. 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 [[Page 7906]] 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-C2-2017-003 and should be submitted on or before February 13, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-01298 Filed 1-19-17; 8:45 am] BILLING CODE 8011-01-P
![7904 Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Notices
six-year record retention period Reference Room, 100 F Street NE., a municipal advisory client of a solicitor
applicable to customer complaints to Washington, DC 20549 on official municipal advisor and eliminates
municipal advisory client complaints. business days between the hours of unnecessary language.84 The MSRB
In approving the proposed rule 10:00 a.m. and 3:00 p.m. Copies of the believes other technical changes made
change, as modified by Amendment filing also will be available for serve to clarify or simplify the proposed
No.1, the Commission has also inspection and copying at the principal rule change.
considered the impact of the proposed office of the MSRB. All comments For the foregoing reasons, the
rule change on efficiency, competition, received will be posted without change; Commission finds good cause for
and capital formation.80 The the Commission does not edit personal approving the proposed rule change, as
Commission does not believe that the identifying information from modified by Amendment No. 1, on an
proposed rule change, as modified by submissions. You should submit only accelerated basis, pursuant to Section
Amendment No. 1 would impose any information that you wish to make 19(b)(2) of the Act.
burden on competition not necessary or available publicly. All submissions
VII. Conclusion
appropriate in furtherance of the should refer to File Number SR–MSRB–
purposes of the Act. 2016–15 and should be submitted on or It is therefore ordered, pursuant to
For the reasons noted above, the before February 13, 2017. Section 19(b)(2) of the Act,85 that the
Commission believes that the proposed proposed rule change, as modified by
VI. Accelerated Approval of Proposed Amendment No. 1 (SR–MSRB–2016–15)
rule change, as modified by Amendment
Rule Change as Modified by be, and hereby is, approved on an
No. 1, is consistent with the Act.
Amendment No. 1 accelerated basis.
V. Solicitation of Comments on The Commission finds good cause to
Amendment No. 1 For the Commission, pursuant to delegated
approve the proposed rule change, as authority.86
Interested persons are invited to modified by Amendment No. 1, prior to Eduardo A. Aleman,
submit written data, views, and the 30th day after the date of
Assistant Secretary.
arguments concerning Amendment No. publication of Amendment No. 1 in the
[FR Doc. 2017–01300 Filed 1–19–17; 8:45 am]
1, including whether the proposed rule Federal Register. As discussed above,
Amendment No. 1 partially amends the BILLING CODE 8011–01–P
change, as modified by Amendment
No.1, is consistent with the Act. text of the proposed rule change to
Comments may be submitted by any of provide certain clarifications relating to
the notifications that would be provided SECURITIES AND EXCHANGE
the following methods:
by municipal advisors to their COMMISSION
Electronic Comments municipal advisory clients and to the [Release No. 34–79796; File No. SR–C2–
• Use the Commission’s Internet terms used with the recordkeeping of 2017–003]
comment form (http://www.sec.gov/ municipal advisory client complaints, to
rules/sro.shtml); or extend the proposed effective date, and Self-Regulatory Organizations; C2
• Send an email to rule-comments@ to make other technical changes to Options Exchange, Incorporated;
sec.gov. Please include File Number SR– clarify or simplify rule text.81 Notice of Filing and Immediate
MSRB–2016–15 on the subject line. Specifically, the changes respond to Effectiveness of a Proposed Rule To
commenters’ concerns, are technical in Amend the Fees Schedule
Paper Comments
nature, and clarify or simplify the January 13, 2017.
• Send paper comments in triplicate proposed rule change. The MSRB states
to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
that Amendment No. 1 in many respects Securities Exchange Act of 1934 (the
Commission, 100 F Street NE., eliminates unnecessary language by
Washington, DC 20549. ‘‘Act’’),1 and Rule 19b–4 thereunder,2
relying on terms that are defined in the notice is hereby given that on January 3,
All submissions should refer to File MSRB’s rule book, the Act, or
Number SR–MSRB–2016–15. This file 2017, C2 Options Exchange,
Commission rules under the Act.82 In Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
number should be included on the addition, the MSRB notes that the
subject line if email is used. To help the filed with the Securities and Exchange
changes are consistent with the Commission (‘‘SEC’’ or ‘‘Commission’’)
Commission process and review your purposes of the proposed rule change to
comments more efficiently, please use the proposed rule change as described
advance the development of a in Items I, II, and III below, which Items
only one method. The Commission will comprehensive regulatory framework
post all comments on the Commission’s have been prepared by the Exchange.
for municipal advisors and to update The Commission is publishing this
Internet Web site (http://www.sec.gov/ the Board’s customer complaint rules.
rules/sro.shtml). Copies of the notice to solicit comments on the
With respect to those portions of proposed rule change from interested
submission, all subsequent Amendment No. 1 that modify certain
amendments, all written statements persons.
definitions, the MSRB notes that the
with respect to the proposed rule proposed rule change, as described in I. Self-Regulatory Organization’s
change that are filed with the the Notice of Filing, contemplated that Statement of the Terms of Substance of
Commission, and all written the clients of both solicitor and non- the Proposed Rule Change
communications relating to the solicitor municipal advisors would be The Exchange proposes to amend its
proposed rule change between the covered by the proposed rule change.83 Fees Schedule. The text of the proposed
Commission and any person, other than
mstockstill on DSK3G9T082PROD with NOTICES
According to the MSRB, the precision rule change is available on the
those that may be withheld from the added to certain definitions by Exchange’s Web site (http://
public in accordance with the Amendment No. 1 parallels the
provisions of 5 U.S.C. 552, will be precision with which the MSRB defines 84 See Amendment No. 1.
available for Web site viewing and 85 15 U.S.C. 78s(b)(2).
printing in the Commission’s Public 81 Supra note 6. 86 17 CFR 200.30–3(a)(12).
82 See Amendment No. 1. 1 15 U.S.C. 78s(b)(1).
80 15 U.S.C. 78c(f). 83 See Notice of Filing. 2 17 CFR 240.19b–4.
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![7906 Federal Register / Vol. 82, No. 13 / Monday, January 23, 2017 / Notices
received will be posted without change; any comments it received on the the NBBO in the series at the time it is
the Commission does not edit personal proposed rule change. The text of these entered.8
identifying information from statements may be examined at the The Exchange now proposes to
submissions. You should submit only places specified in Item IV below. The eliminate the PRP as this program has
information that you wish to make Exchange has prepared summaries, set not been successful in attracting order
available publicly. All submissions forth in sections A, B, and C below, of flow that improves the NBBO. As
should refer to File Number SR–C2– the most significant aspects of such proposed, members will receive a maker
2017–003 and should be submitted on statements. rebate of $0.25 per contract in Penny
or before February 13, 2017. Symbols and Non-Penny Symbols for
For the Commission, by the Division of
A. Self-Regulatory Organization’s their Non-ISE Gemini Market Maker,
Trading and Markets, pursuant to delegated Statement of the Purpose of, and Firm Proprietary, Broker-Dealer, and
authority.8 Statutory Basis for, the Proposed Rule Professional Customer orders (i.e., the
Eduardo A. Aleman, Change current Tier 1 maker rebate). Members
Assistant Secretary.
will no longer be able to achieve higher
1. Purpose maker rebates based on their maker
[FR Doc. 2017–01298 Filed 1–19–17; 8:45 am]
ADV in Non-ISE Gemini Market Maker,
BILLING CODE 8011–01–P Currently, the Exchange offers
Firm Proprietary, Broker-Dealer, and
Performance Routing Program (‘‘PRP) Professional Customer orders that
rebates to Non-ISE Gemini Market improve the NBBO in a series at the
SECURITIES AND EXCHANGE Maker,3 Firm Proprietary,4 Broker- time of order entry.9
COMMISSION Dealer,5 and Professional Customer 6
[Release No. 34–79800; File No. SR– orders based on the member’s maker 2. Statutory Basis
ISEGemini–2017–01] average daily volume (‘‘ADV’’) in Non- The Exchange believes that the
ISE Gemini Market Maker, Firm proposed rule change is consistent with
Self-Regulatory Organizations; ISE Proprietary, Broker-Dealer, and the provisions of Section 6 of the Act,10
Gemini, LLC; Notice of Filing and Professional Customer orders that in general, and Section 6(b)(4) of the
Immediate Effectiveness of Proposed improve the national best bid or offer Act,11 in particular, in that it is designed
Rule Change To Amend the Schedule (‘‘NBBO’’) in a series at the time of order to provide for the equitable allocation of
of Fees entry (‘‘PRP eligible contracts’’).7 reasonable dues, fees, and other charges
January 13, 2017. Specifically, members that execute an among its members and other persons
Pursuant to Section 19(b)(1) of the ADV of 9,999 PRP eligible contracts or using its facilities.
fewer are entitled to a maker rebate of The Exchange believes that it is
Securities Exchange Act of 1934
$0.25 per contract in both Penny reasonable and equitable to eliminate
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Symbols and Non-Penny Symbols for the PRP as this rebate program was not
notice is hereby given that on January 3, successful in attracting the type of order
2017, ISE Gemini, LLC (‘‘ISE Gemini’’ or their Non-ISE Gemini Market Maker,
flow that it was designed to incentivize.
‘‘Exchange’’) filed with the Securities Firm Proprietary, Broker-Dealer, and
The Exchange adopted the PRP to
and Exchange Commission (‘‘SEC’’ or Professional Customer orders. Members
encourage members enter orders that
‘‘Commission’’) the proposed rule that execute an ADV of 10,000 or more improve the NBBO in order to create
change as described in Items I and II PRP eligible contracts are entitled to a more trading opportunities at better
below, which Items have been prepared maker rebate of $0.40 per contract in prices for all market participants that
by the Exchange. The Commission is Penny Symbols and $0.65 per contract trade on the Exchange. The Exchange
publishing this notice to solicit in Non-Penny Symbols for the above does not believe that the PRP has met
comments on the proposed rule change market participant types if the order this goal, and is therefore proposing to
from interested persons. does not improve the NBBO at the time eliminate the program. With the
I. Self-Regulatory Organization’s of order entry. In addition, members proposed elimination of the PRP, Non-
Statement of the Terms of Substance of that qualify for the higher tier of PRP ISE Gemini Market Maker, Firm
the Proposed Rule Change rebates are entitled to a maker rebate of Proprietary, Broker-Dealer, and
$0.47 per contract in Penny Symbols Professional Customer orders will
The Exchange proposes to amend the
and $0.71 per contract in Non-Penny continue to be entitled to a maker rebate
Schedule of Fees to eliminate the
Symbols for the above market in Penny and Non-Penny Symbols that
Performance Routing Program.
The text of the proposed rule change participant types if the order improves is the same as the current Tier 1 maker
is available on the Exchange’s Web site rebate. The current Tier 2 maker rebates
at www.ise.com, at the principal office 3 A ‘‘Non-ISE Gemini Market Maker’’ is a market for these market participant types will
maker as defined in Section 3(a)(38) of the be removed as this tier is being
of the Exchange, and at the Securities Exchange Act of 1934, as amended,
Commission’s Public Reference Room. registered in the same options class on another
eliminated with the elimination of the
options exchange. PRP program. The Exchange believes
II. Self-Regulatory Organization’s 4 A ‘‘Firm Proprietary’’ order is an order
Statement of the Purpose of, and submitted by a member for its own proprietary 8 See Schedule of Fees, Section I., Regular Order
Statutory Basis for, the Proposed Rule account. Fees and Rebates, footnotes 14 and 15.
Change 5 A ‘‘Broker-Dealer’’ order is an order submitted 9 This includes both the regular rebate for orders
by a member for a broker-dealer account that is not that do not improve the NBBO at the time of order
mstockstill on DSK3G9T082PROD with NOTICES
In its filing with the Commission, the its own proprietary account. entry, and the enhanced rebates provided in
Exchange included statements 6 A ‘‘Professional Customer’’ is a person or entity footnotes 14 and 15 of the Schedule of Fees for
concerning the purpose of and basis for that is not a broker/dealer and is not a Priority orders that improve the NBBO at the time of order
Customer. entry. The regular rebates will now be marked ‘‘n/
the proposed rule change and discussed 7 All eligible volume from affiliated members is a’’ since there will no longer be any PRP tiers, and
aggregated in determining applicable tiers, provided the associated footnotes for enhanced rebates will
8 17 CFR 200.30–3(a)(12). be eliminated.
there is at least 75% common ownership between
1 15 U.S.C. 78s(b)(1). 10 15 U.S.C. 78f.
the members as reflected on each member’s Form
2 17 CFR 240.19b–4. BD, Schedule A. 11 15 U.S.C. 78f(b)(4).
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Document Created: 2017-01-20 01:30:03
Document Modified: 2017-01-20 01:30:03
| 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 7904 |
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