83 FR 23521 - Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule Related to Its PULSe Workstation

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 98 (May 21, 2018)

Page Range		23521-23522
FR Document		2018-10709
Federal Register, Volume 83 Issue 98 (Monday, May 21, 2018)
[Federal Register Volume 83, Number 98 (Monday, May 21, 2018)]
[Notices]
[Pages 23521-23522]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10709]



[[Page 23521]]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83242; File No. SR-C2-2018-008]


Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
Its Fees Schedule Related to Its PULSe Workstation

May 15, 2018.
    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 May 1, 2018, Cboe C2 Exchange, Inc. (the ``Exchange'' or 
``C2'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I, II, 
and III below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend its fees schedule related to its 
PULSe workstation.
    The text of the proposed rule change is also available on the 
Exchange's website (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 related to its PULSe workstation. The fees herein will be 
effective on May 1, 2018.
    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.
    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 to reduce and cap the monthly fee to be 
assessed on TPHs who are sending drop copies to non-TPH customers via a 
PULSe workstation. Currently, 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 charged $400 per month. The Exchange is 
proposing to reduce that fee to $0.02 per contract with a cap of $400 
per month per receiving non-TPH. 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 a PULSe broker sends 
drop copies via its PULSe workstation to each of non-TPH customer A, 
non-TPH customer B, and non-TPH customer C, the PULSe broker (the 
sending TPH) will be charged a fee of $.02 per contract for drop copies 
it sends via PULSe to non-TPH customers A, B, and C (the receiving non-
TPHs) with a cap of $1,200 ($400 per non-TPH customers A, B, and C).
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 reducing the $400 per month to $0.02 per 
contract with a cap of $400 per month on a TPH sending drop copies from 
PULSe to a non-TPH customer is reasonable because the 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 potentially 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. Additionally, use 
of the drop copy functionality by a TPH and non-TPH customer is 
voluntary.

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 are assessed equally to TPH broker's electing to use the 
optional Drop Copy functionality. 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.

[[Page 23522]]

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 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-C2-2018-008 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-C2-2018-008. 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 website (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 website 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. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-C2-2018-008 and should be submitted on 
or before June 11, 2018.
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-10709 Filed 5-18-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 98 / Monday, May 21, 2018 / Notices 23521

SECURITIES AND EXCHANGE workstation. The fees herein will be and coordination with persons engaged
COMMISSION effective on May 1, 2018. in regulating, clearing, settling,
By way of background, the PULSe processing information with respect to,
[Release No. 34–83242; File No. SR–C2– workstation is a front-end order entry
2018–008] and facilitating transactions in
system designed for use with respect to securities, to remove impediments to
Self-Regulatory Organizations; Cboe orders that may be sent to the trading and perfect the mechanism of a free and
C2 Exchange, Inc.; Notice of Filing and systems of the Exchange. Exchange open market and a national market
Immediate Effectiveness of a Proposed Trading Permit Holders (‘‘TPHs’’) may system, and, in general, to protect
Rule Change To Amend Its Fees also make workstations available to investors and the public interest.
Schedule Related to Its PULSe their customers, which may include Additionally, the Exchange believes the
Workstation TPHs, non-broker dealer public proposed rule change is consistent with
customers, and non-TPH broker dealers. Section 6(b)(4) of the Act,5 which
May 15, 2018. Financial Information eXchange requires that Exchange rules provide for
Pursuant to Section 19(b)(1) of the (‘‘FIX’’) language-based connectivity, the equitable allocation of reasonable
Securities Exchange Act of 1934 (the upon request, provides customers (both dues, fees, and other charges among its
‘‘Act’’),1 and Rule 19b–4 thereunder,2 TPH and non-TPH) of TPHs that are Trading Permit Holders and other
notice is hereby given that on May 1, brokers and PULSe users (‘‘PULSe
persons using its facilities.
2018, Cboe C2 Exchange, Inc. (the brokers’’) with the ability to receive
‘‘Exchange’’ or ‘‘C2’’) filed with the ‘‘drop-copy’’ order fill messages from The Exchange believes that reducing
Securities and Exchange Commission their PULSe brokers. These fill messages the $400 per month to $0.02 per
(the ‘‘Commission’’) the proposed rule allow customers to update positions, contract with a cap of $400 per month
change as described in Items I, II, and risk calculations, and streamline back- on a TPH sending drop copies from
III below, which Items have been office functions. PULSe to a non-TPH customer is
prepared by the Exchange. The The Exchange is proposing to reduce reasonable because the fee will continue
Commission is publishing this notice to and cap the monthly fee to be assessed to allow the Exchange to monitor,
solicit comments on the proposed rule on TPHs who are sending drop copies develop and implement upgrades,
change from interested persons. to non-TPH customers via a PULSe maintain, and customize PULSe to
workstation. Currently, if a customer ensure a non-TPH customer receives
I. Self-Regulatory Organization’s
receiving drop copies is a non-TPH, the timely and accurate drop copies while
Statement of the Terms of Substance of
PULSe broker (the sending TPH) who also potentially reducing the sending
the Proposed Rule Change
sends drop copies via PULSe to that TPH’s costs. The Exchange believes the
The Exchange proposes to amend its customer is charged $400 per month. fee is equitable and not unfairly
fees schedule related to its PULSe The Exchange is proposing to reduce discriminatory because the monthly fee
workstation. that fee to $0.02 per contract with a cap is assessed equally to any TPH sending
The text of the proposed rule change of $400 per month per receiving non- drop copies to its non-TPH customers.
is also available on the Exchange’s TPH. If that PULSe broker sends drop Additionally, use of the drop copy
website (http://www.c2exchange.com/ copies via PULSe to multiple non-TPH functionality by a TPH and non-TPH
Legal/), at the Exchange’s Office of the customers, the PULSe broker will be customer is voluntary.
Secretary, and at the Commission’s charged the fee for each customer. For
Public Reference Room. example, if a PULSe broker sends drop B. Self-Regulatory Organization’s
copies via its PULSe workstation to each Statement on Burden on Competition
II. Self-Regulatory Organization’s
Statement of the Purpose of, and of non-TPH customer A, non-TPH The Exchange does not believe that
Statutory Basis for, the Proposed Rule customer B, and non-TPH customer C, the proposed rule changes will impose
Change the PULSe broker (the sending TPH)
any burdens on competition that are not
will be charged a fee of $.02 per contract
In its filing with the Commission, the necessary or appropriate in furtherance
for drop copies it sends via PULSe to
Exchange included statements of the purposes of the Act. The
non-TPH customers A, B, and C (the
concerning the purpose of and basis for Exchange does not believe that the
receiving non-TPHs) with a cap of
the proposed rule change and discussed proposed rule change will impose any
$1,200 ($400 per non-TPH customers A,
any comments it received on the burden on intramarket competition that
B, and C).
proposed rule change. The text of these is not necessary or appropriate in
statements may be examined at the 2. Statutory Basis furtherance of the purposes of the Act
places specified in Item IV below. The The Exchange believes the proposed because the proposed PULSe-related
Exchange has prepared summaries, set rule change is consistent with the fees are assessed equally to TPH
forth in sections A, B, and C below, of Securities Exchange Act of 1934 (the broker’s electing to use the optional
the most significant aspects of such ‘‘Act’’) and the rules and regulations Drop Copy functionality. The Exchange
statements. thereunder applicable to the Exchange does not believe that the proposed
and, in particular, the requirements of change will cause any unnecessary
A. Self-Regulatory Organization’s
Section 6(b) of the Act.3 Specifically, burden on intermarket competition
Statement of the Purpose of, and
the Exchange believes the proposed rule because the proposed fees relate to use
Statutory Basis for, the Proposed Rule
change is consistent with the Section of an Exchange-provided order entry
Change
system. To the extent that any proposed
sradovich on DSK3GMQ082PROD with NOTICES

6(b)(5) 4 requirements that the rules of
1. Purpose an exchange be designed to prevent change makes the Exchange a more
The Exchange proposes to amend its fraudulent and manipulative acts and attractive marketplace for market
Fees Schedule. The Exchange is practices, to promote just and equitable participants at other exchanges, such
changing fees related to its PULSe principles of trade, to foster cooperation market participants are welcome to
become Exchange market participants.
1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78f(b).
2 17 CFR 240.19b–4. 4 15 U.S.C. 78f(b)(5). 5 15 U.S.C. 78f(b)(4).

VerDate Sep<11>2014 18:20 May 18, 2018 Jkt 244001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 E:\FR\FM\21MYN1.SGM 21MYN1
23522 Federal Register / Vol. 83, No. 98 / Monday, May 21, 2018 / Notices

C. Self-Regulatory Organization’s communications relating to the Holdings LLC and therefore this
Statement on Comments on the proposed rule change between the transaction is considered Financing an
Proposed Rule Change Received From Commission and any person, other than Associate. requiring prior SBA approval.
Members, Participants, or Others those that may be withheld from the Notice is hereby given that any
The Exchange neither solicited nor public in accordance with the interested person may submit written
received comments on the proposed provisions of 5 U.S.C. 552, will be comments on this transaction within
rule change. available for website viewing and fifteen days of the date of this
printing in the Commission’s Public publication to the Associate
III. Date of Effectiveness of the Reference Room, 100 F Street NE, Administrator, Office of Investment and
Proposed Rule Change and Timing for Washington, DC 20549, on official Innovation, U.S. Small Business
Commission Action business days between the hours of Administration, 409 Third Street SW,
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the Washington, DC 20416.
effective pursuant to Section 19(b)(3)(A) filing also will be available for
of the Act 6 and paragraph (f) of Rule inspection and copying at the principal A. Joseph Shepard,
19b–4 7 thereunder. At any time within office of the Exchange. All comments Associate Administrator for Office of
60 days of the filing of the proposed rule received will be posted without change. Investment and Innovation.
change, the Commission summarily may Persons submitting comments are [FR Doc. 2018–10792 Filed 5–18–18; 8:45 am]
temporarily suspend such rule change if cautioned that we do not redact or edit BILLING CODE 8025–01–P
it appears to the Commission that such personal identifying information from
action is necessary or appropriate in the comment submissions. You should
public interest, for the protection of submit only information that you wish
investors, or otherwise in furtherance of to make available publicly. All DEPARTMENT OF STATE
the purposes of the Act. If the submissions should refer to File
Commission takes such action, the Number SR–C2–2018–008 and should [Public Notice 10419]
Commission will institute proceedings be submitted on or before June 11, 2018.
to determine whether the proposed rule Notice of Determinations; Culturally
For the Commission, by the Division of
change should be approved or Trading and Markets, pursuant to delegated Significant Objects Imported for
disapproved. authority.8 Exhibition Determinations:
Eduardo A. Aleman,
‘‘Giacometti’’ Exhibition
IV. Solicitation of Comments
Assistant Secretary. SUMMARY: Notice is hereby given of the
Interested persons are invited to
submit written data, views, and [FR Doc. 2018–10709 Filed 5–18–18; 8:45 am] following determinations: I hereby
arguments concerning the foregoing, BILLING CODE 8011–01–P determine that certain objects to be
including whether the proposed rule included in the exhibition
change is consistent with the Act. ‘‘Giacometti,’’ imported from abroad for
Comments may be submitted by any of SMALL BUSINESS ADMINISTRATION temporary exhibition within the United
the following methods: States, are of cultural significance. The
[License No. 04/04–0340]
objects are imported pursuant to loan
Electronic Comments agreements with the foreign owners or
Resolute Capital Partners Fund IV,
• Use the Commission’s internet L.P.; Notice Seeking Exemption Under custodians. I also determine that the
comment form (http://www.sec.gov/ Section 312 of the Small Business exhibition or display of the exhibit
rules/sro.shtml); or Investment Act, Conflicts of Interest objects at the Solomon R. Guggenheim
• Send an email to rule-comments@ Museum, New York, New York, from on
sec.gov. Please include File Number SR– Notice is hereby given that Resolute or about June 8, 2018, until on or about
C2–2018–008 on the subject line. Capital Partners IV, L.P., 20 Burton Hills September 12, 2018, and at possible
Blvd., Suite 430, Nashville, TN 37215, additional exhibitions or venues yet to
Paper Comments a Federal Licensee under the Small be determined, is in the national
• Send paper comments in triplicate Business Investment Act of 1958, as interest. I have ordered that Public
to Secretary, Securities and Exchange amended (‘‘the Act’’), in connection Notice of these determinations be
Commission, 100 F Street NE, with the financing of a small concern, published in the Federal Register.
Washington, DC 20549–1090. has sought an exemption under Section
FOR FURTHER INFORMATION CONTACT:
All submissions should refer to File 312 of the Act and Section 107.730,
Elliot Chiu, Attorney-Adviser, Office of
Number SR–C2–2018–008. This file Financings which Constitute Conflicts
the Legal Adviser, U.S. Department of
number should be included on the of Interest of the Small Business
State (telephone: 202–632–6471; email:
subject line if email is used. To help the Administration (‘‘SBA’’) Rules and
section2459@state.gov). The mailing
Commission process and review your Regulations (13 CFR 107.730). Resolute
address is U.S. Department of State,
comments more efficiently, please use Capital Partners IV, L.P. proposes to
L/PD, SA–5, Suite 5H03, Washington,
only one method. The Commission will provide loan and equity security
DC 20522–0505.
post all comments on the Commission’s financing to Power Design Holdings
internet website (http://www.sec.gov/ LLC, 2200 Ross Ave., Suite 4050, Dallas, SUPPLEMENTARY INFORMATION: The
rules/sro.shtml). Copies of the TX 75201. foregoing determinations were made
pursuant to the authority vested in me
sradovich on DSK3GMQ082PROD with NOTICES

submission, all subsequent The financing is brought within the
amendments, all written statements purview of § 107.730(a)(1) of the by the Act of October 19, 1965 (79 Stat.
with respect to the proposed rule Regulations because Resolute Capital 985; 22 U.S.C. 2459), E.O. 12047 of
change that are filed with the Partners III, L.P., an Associate of March 27, 1978, the Foreign Affairs
Commission, and all written Resolute Capital Partners IV, L.P., owns Reform and Restructuring Act of 1998
more than ten percent of Power Design (112 Stat. 2681, et seq.; 22 U.S.C. 6501
6 15 U.S.C. 78s(b)(3)(A). note, et seq.), Delegation of Authority
7 17 CFR 240.19b–4(f). 8 17 CFR 200.30–3(a)(12). No. 234 of October 1, 1999, and

VerDate Sep<11>2014 18:20 May 18, 2018 Jkt 244001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4703 E:\FR\FM\21MYN1.SGM 21MYN1
Document Created: 2018-11-02 11:07:40
Document Modified: 2018-11-02 11:07:40
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		83 FR 23521