Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule, 61357-61358 [2014-24207]
Download as PDF
Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Notices
post all comments on the Commission’s
Internet Web site (https://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 such
filing also will be available for
inspection and copying at the principal
offices 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–
NYSEMKT–2014–85, and should be
submitted on or before October 31,
2014.
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Kevin M. O’Neill,
Deputy Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2014–24226 Filed 10–9–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73306; File No. SR–C2–
2014–025]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend the Fees Schedule
mstockstill on DSK4VPTVN1PROD with NOTICES
October 6, 2014.
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 30, 2014, 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
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
17:09 Oct 09, 2014
Jkt 235001
I. Self-Regulatory Organization’s
Statement of the Terms of the 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 (https://
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.
1. Purpose
The Exchange proposes to amend its
Fees Schedule.3 Specifically, the
Exchange proposes to increase the
Linkage Routing fee from $0.50 per
contract to $0.65 per contract in
addition to the applicable C2 taker fee.
The Linkage Routing fee is assessed to
all orders routed pursuant to the
Options Order Protection and Locked/
Crossed Market Plan, excluding Public
Customer orders in equity option
classes. The purpose of the proposed
change is to cover increased costs
associated with routing orders through
Linkage and paying the transaction fees
for such executions at other exchanges.
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
3 C2 initially filed the proposed fee change on
September 2, 2014 (SR–C2–2014–021). On
September 10, 2014, C2 withdrew that filing and
submitted filing SR–C2–2014–022. On September
18, 2014, C2 withdrew SR–C2–2014–022 and
submitted SR–C2–2014–023. On September 30,
2014, C2 withdrew SR–C2–2014–023 and submitted
this filing.
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
61357
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.4 Specifically,
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.
In particular, the Exchange’s proposal
to increase the Linkage Routing fee from
$0.50 per contract to $0.65 per contract
is reasonable because such increase will
help offset the costs associated with
routing orders through Linkage and
paying the transaction fees for such
executions at other exchanges.
Additionally, the Exchange notes that if
a non-customer market participant
wishes to avoid the Linkage fee, it may
choose to specify that C2 not route
orders away on its behalf or designate
the order as Immediate or Cancel, which
would prevent the order from linking
[sic] away to another Exchange [sic].
Moreover, a non-customer market
participant may route directly to
exchanges posting the best market if
desired to avoid Linkage routing fees.
The Exchange next notes that this fee
amount will be assessed to all orders
routed via Linkage (excluding Public
Customer orders in equity options
classes). The Exchange believes that this
proposed change is equitable and not
unfairly discriminatory because noncustomer (e.g., broker-dealer
proprietary) orders originate from
broker-dealers who are by and large
more sophisticated than public
customers and can readily control the
exchange to which their orders are
routed. While there may be some
sophisticated customers who are
capable of directing the exchange to
which their orders are routed, generally,
retail customers submit orders to their
brokerages but do not or cannot specify
the exchange to which a customer order
is sent. Therefore, non-customer order
flow can, in most cases, more easily
route directly to other markets if desired
and thus avoid Linkage routing fees.
Therefore, it is equitable to assess a
reasonable fee to cover the costs
incurred for processing non-customer
Linkage orders while continuing to
exempt such Public Customer orders.
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
4 15
5 15
E:\FR\FM\10OCN1.SGM
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
10OCN1
61358
Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Notices
appropriate in furtherance of the
purposes of the Act. In particular, the
increase to the Linkage Routing Fee will
apply equally to all non-customers.
Additionally, although different linkage
fees are assessed to different market
participants (i.e., non-customers vs
public customers), as described above,
non-customer order flow can, in most
cases, more easily route directly to other
markets if desired and thus avoid
Linkage fees. Therefore, it is equitable to
assess a reasonable fee to cover the costs
incurred for processing non-customer
Linkage orders while continuing to
exempt such public customer orders.
The Exchange believes that the proposal
to increase the linkage fee amount
assessed to non-customers will not
cause an unnecessary burden on
intermarket competition because
although the total fee amount assessed
to an order routed via Linkage (i.e., the
Linkage Routing fee and applicable C2
taker fee) may not always be lower than
assessed at other exchanges, noncustomer market participants may, as
noted above, choose to specify that C2
not route orders away on its [sic] behalf,
designate the order as Immediate or
Cancel, or route directly to exchanges
posting the best market to avoid Linkage
routing fees. To the extent that the
proposed changes make C2 a more
attractive marketplace for market
participants at other exchanges, such
market participants are welcome to
become C2 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
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
6 15
U.S.C. 78s(b)(3)(A).
7 17 CFR 240.19b–4(f).
VerDate Sep<11>2014
17:09 Oct 09, 2014
Jkt 235001
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–24207 Filed 10–9–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–73303; File No. SR–
NASDAQ–2014–096]
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
C2–2014–025 on the subject line.
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Modify
NASDAQ Rule 7018 Fees
Paper Comments
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 29, 2014, The NASDAQ
Stock Market LLC (‘‘NASDAQ’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) a 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.
• 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–C2–2014–025. 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 (https://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
a.m. and 3 p.m. Copies of such 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–
2014–025, and should be submitted on
or before October 31, 2014.
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
October 6, 2014.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
NASDAQ is proposing to modify
NASDAQ Rule 7018 fees assessed for
execution and routing securities listed
on NASDAQ, the New York Stock
Exchange (‘‘NYSE’’) and on exchanges
other than NASDAQ and NYSE.
The text of the proposed rule change
is available at nasdaq.cchwallstreet.com
at NASDAQ’s principal office, 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,
NASDAQ 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 those
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\10OCN1.SGM
10OCN1
Agencies
[Federal Register Volume 79, Number 197 (Friday, October 10, 2014)]
[Notices]
[Pages 61357-61358]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-24207]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73306; File No. SR-C2-2014-025]
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, 2014.
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 30, 2014, 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.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of the
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 (https://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 proposes to increase the Linkage Routing fee from $0.50
per contract to $0.65 per contract in addition to the applicable C2
taker fee. The Linkage Routing fee is assessed to all orders routed
pursuant to the Options Order Protection and Locked/Crossed Market
Plan, excluding Public Customer orders in equity option classes. The
purpose of the proposed change is to cover increased costs associated
with routing orders through Linkage and paying the transaction fees for
such executions at other exchanges.
---------------------------------------------------------------------------
\3\ C2 initially filed the proposed fee change on September 2,
2014 (SR-C2-2014-021). On September 10, 2014, C2 withdrew that
filing and submitted filing SR-C2-2014-022. On September 18, 2014,
C2 withdrew SR-C2-2014-022 and submitted SR-C2-2014-023. On
September 30, 2014, C2 withdrew SR-C2-2014-023 and submitted this
filing.
---------------------------------------------------------------------------
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.\4\ Specifically, 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
In particular, the Exchange's proposal to increase the Linkage
Routing fee from $0.50 per contract to $0.65 per contract is reasonable
because such increase will help offset the costs associated with
routing orders through Linkage and paying the transaction fees for such
executions at other exchanges. Additionally, the Exchange notes that if
a non-customer market participant wishes to avoid the Linkage fee, it
may choose to specify that C2 not route orders away on its behalf or
designate the order as Immediate or Cancel, which would prevent the
order from linking [sic] away to another Exchange [sic]. Moreover, a
non-customer market participant may route directly to exchanges posting
the best market if desired to avoid Linkage routing fees.
The Exchange next notes that this fee amount will be assessed to
all orders routed via Linkage (excluding Public Customer orders in
equity options classes). The Exchange believes that this proposed
change is equitable and not unfairly discriminatory because non-
customer (e.g., broker-dealer proprietary) orders originate from
broker-dealers who are by and large more sophisticated than public
customers and can readily control the exchange to which their orders
are routed. While there may be some sophisticated customers who are
capable of directing the exchange to which their orders are routed,
generally, retail customers submit orders to their brokerages but do
not or cannot specify the exchange to which a customer order is sent.
Therefore, non-customer order flow can, in most cases, more easily
route directly to other markets if desired and thus avoid Linkage
routing fees. Therefore, it is equitable to assess a reasonable fee to
cover the costs incurred for processing non-customer Linkage orders
while continuing to exempt such Public Customer orders.
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
[[Page 61358]]
appropriate in furtherance of the purposes of the Act. In particular,
the increase to the Linkage Routing Fee will apply equally to all non-
customers. Additionally, although different linkage fees are assessed
to different market participants (i.e., non-customers vs public
customers), as described above, non-customer order flow can, in most
cases, more easily route directly to other markets if desired and thus
avoid Linkage fees. Therefore, it is equitable to assess a reasonable
fee to cover the costs incurred for processing non-customer Linkage
orders while continuing to exempt such public customer orders. The
Exchange believes that the proposal to increase the linkage fee amount
assessed to non-customers will not cause an unnecessary burden on
intermarket competition because although the total fee amount assessed
to an order routed via Linkage (i.e., the Linkage Routing fee and
applicable C2 taker fee) may not always be lower than assessed at other
exchanges, non-customer market participants may, as noted above, choose
to specify that C2 not route orders away on its [sic] behalf, designate
the order as Immediate or Cancel, or route directly to exchanges
posting the best market to avoid Linkage routing fees. To the extent
that the proposed changes make C2 a more attractive marketplace for
market participants at other exchanges, such market participants are
welcome to become C2 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 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-C2-2014-025 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-C2-2014-025. 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 (https://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
a.m. and 3 p.m. Copies of such 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-C2-2014-025, and should be
submitted on or before October 31, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-24207 Filed 10-9-14; 8:45 am]
BILLING CODE 8011-01-P