Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Delivery of the Regulatory Element of C2's Continuing Education Program, 73254-73256 [2015-29839]
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73254
Federal Register / Vol. 80, No. 226 / Tuesday, November 24, 2015 / Notices
covered by units of the DIAMONDS
Trust held in the same account.12 CBOE
notes, based on this previous guidance
from the FRB and the Commission, and
in conjunction with the Exchange’s
current rules, CBOE has applied this
margin treatment to short index option
positions where there are offsetting
positions in an ETF that tracks the same
underlying index held in the same
margin account (which treatment the
Exchange has announced in Regulatory
Circulars).13 CBOE believes the
proposed rule change is consistent with
these previous findings and applies this
margin treatment generally to all ETFs
and mutual funds that overly market
indexes, in the same manner that the
rules currently apply to underlying
stock baskets. Given that the Exchange
regularly lists new products, including
index options, the Exchange believes it
is appropriate to have a more general
rule related to margin on these index
option products that applies in the same
manner rather than identifying this
margin treatment in Regulatory
Circulars.
mstockstill on DSK4VPTVN1PROD with NOTICES
III. Discussion and Commission
Findings
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.14 Specifically, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,15 which requires,
among other things, that the rules of a
national securities exchange be
designed to prevent fraudulent and
12 See Notice, supra note 3, at 60943. See Letter
dated December 3, 1997 from James M. McNeil,
Amex, to Scott Holz, FRB, and Letter dated January
8, 1998 from Scott Holz, FRB to James M. McNeil,
Amex; see also Letter dated December 16, 1997
from Richard Lewandowski, CBOE, to Mr. Michael
Walinskas, Commission. There was no objection
from the FRB or the Commission to Amex’s or
CBOE’s extension of the margin treatment
previously provided to SPDRS to DIAMONDS.
13 See Notice, supra note 3, at 60943. See also
Regulatory Circulars RG99–09 (permitting SPDRS
and DIAMONDS to cover short positions of options
on the S&P 500 (‘‘SPX options’’) and on the DJIA
(DJX), respectively); RG00–171 (permitting units of
iShares S&P 100 Index Fund to cover short
positions of options on the S&P 100 Index (OEX));
RG01–119 (permitting Nasdaq-100 Index Tracking
Shares to cover short positions of options on the
Nasdaq-100 Shares (QQQ), the Nasdaq 100 Index
(NDX) or the Mini-Nasdaq 100 Index (MNX); RG02–
110 (permitting units of the iShares S&P 500 Fund
(IVV) to cover short SPX option positions); and
RG07–126 (permitting units of the iShares Russell
200 Index Fund (IWM) to cover short positions of
options on the Russell 2000 index (RUT)).
14 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
15 15 U.S.C. 78f(b)(5).
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manipulative acts and practices, to
promote just and equitable principles of
trade, 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.
Specifically, the Commission believes
that providing for a specific margin
treatment related to covered puts and
calls to apply to all index options in the
same manner will promote just and
equitable principles of trade because
stock baskets, ETFs and mutual funds
that trade a reference index can
generally provide the same economic
function as a security underlying an
option.
Finally, the Commission believes the
non-substantive technical changes will
benefit investors by offering more clarity
with respect to the margin rules by
providing for more consistent and plain
English language in the rule.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,16 that the
proposed rule change (SR–CBOE–2015–
077) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–29842 Filed 11–23–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76468; SR–ISEGemini2015–24]
Self-Regulatory Organizations; ISE
Gemini, LLC; Notice of Withdrawal of
a Proposed Rule Change Relating to a
Corporate Transaction Involving Its
Indirect Parent
November 18, 2015.
On October 30, 2015, ISE Gemini, LLC
(the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
amend and restate certain corporate
governance documents in connection
with a proposal to remove Eurex
Frankfurt AG as an indirect, non-U.S.
upstream owner of the Exchange. The
proposed rule change was published for
16 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
17 17
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comment in the Federal Register on
November 17, 2015.3
On November 13, 2015, the Exchange
withdrew the proposed rule change
(SR–ISEGemini–2015–24).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.4
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–29841 Filed 11–23–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76466; File No. SR–C2–
2015–031]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to Delivery of the
Regulatory Element of C2’s Continuing
Education Program
November 18, 2015.
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 November
05, 2015, 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
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The purpose of the proposed rule
change is to expand on the Exchange’s
past representations made in SR–C2–
2015–024 3 with respect to Continuing
Education (‘‘CE’’) Fees and Web-based
delivery of the Regulatory Element of
the Exchange’s CE program. There are
no proposed changes to the text of the
Exchange’s rules.
3 See Securities Exchange Act Release No. 76416
(Nov. 10, 2015), 80 FR 71876.
4 17 CFR 200.30–3(a)(57).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 76150
(October 14, 2015), 80 FR 63593 (October 20, 2015)
(Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change to Amend the Fees
Schedule) (SR–C2–2015–024).
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Federal Register / Vol. 80, No. 226 / Tuesday, November 24, 2015 / Notices
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.
S201 for Registered Principals and
Supervisors, and the S901 for
Operations Professionals will continue
to be offered at testing centers until no
later than six months after January 4,
2016.7 The Exchange therefore is
submitting this filing for the purpose of
correcting SR–C2–2015–024 and in an
effort to avoid any confusion among
Permit Holders as to how long the
Regulatory Element of the S106 for
Investment Company and Variable
Contracts Representatives, the S201 for
Registered Principals and Supervisors,
and the S901 for Operations
Professionals will continue to be offered
at testing centers.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 10 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the Exchange believes that
this filing will clarify its rules and help
ensure that Permit Holders are not
confused by discrepancies that existed
between SR–C2–2015–024 and SR–
FINRA–2015–015. The Exchange
believes that clarity in the Rules is in
the interests of Permit Holders and all
investors and consistent with the Act.
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1. Purpose
The purpose of this filing is to correct
certain statements in SR–C2–2015–024.4
On October 2, 2015, the Exchange filed
SR–C2–2015–024 to amend the Fees
Schedule with respect to CE-related fees
and, in particular, fees related to Webbased delivery of the Regulatory
Element of the Exchange’s CE program.5
SR–C2–2015–024 was materially based
upon changes to FINRA Rule 1250,
which were approved by the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) in SR–FINRA–2015–
015.6
Notably, within the Purpose section of
SR–C2–2015–024, the Exchange
incorrectly stated that ‘‘[t]he Regulatory
Element of these Continuing Education
Programs [(i.e. the S106 for Investment
Company and Variable Contracts
Representatives, the S201 for Registered
Principals and Supervisors, and the
S901 for Operations Professionals)] will
continue to be offered at testing centers
through January 4, 2016’’ and that
‘‘[p]ursuant to the Approval Order to
SR–FINRA–2015–015, the fee for testcenter delivery of the Regulatory
Element of the S106, S201, and S901
Continuing Education Programs will
continue to be $100 per session through
January 4, 2016 when the programs will
no longer be offered at testing centers.’’
According to SR–FINRA–2015–015,
however, the Regulatory Element of the
S106 for Investment Company and
Variable Contracts Representatives, the
4 Id.
5 See
id.
6 See Securities Exchange Act Release No. 75581
(July 31, 2015), 80 FR 47018 (August 6, 2015)
(Order Approving a Proposed Rule Change to
Provide a Web-based Delivery Method for
Completing the Regulatory Element of the
Continuing Education Requirements) (SR–FINRA–
2015–015).
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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. This filing
relates generally to CE requirements
required of all Permit Holders. In
addition, the filing is merely a
clarification of a previous filing already
submitted by the Exchange.
Accordingly, the Exchange does not
believe that the proposed rule change
will impose any burden on competition
in the marketplace.
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 written 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 11 and
subparagraph (f)(6) of Rule 19b–4
thereunder.12
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
become operative prior to 30 days after
the date of filing.13 Rule 19b–4(f)(6)(iii),
however, permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest.14 The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The Exchange
has stated that waiver of the operative
delay is necessary in order to correct
statements in a previous filing 15 and to
avoid any potential confusion to
investors. The Commission believes that
waiver of the operative delay is
consistent with the protection of
investors and the public interest as it
will allow C2 to update without delay
its fee schedule to accurately reflect the
timing by which FINRA will phase out
offering the regulatory element of
certain continuing education programs
11 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
14 Id.
15 See Securities Exchange Act Release No. 76150
(October 14, 2015), 80 FR 63593 (October 20, 2015)
(Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change to Amend the Fees
Schedule) (SR–C2–2015–024).
12 17
7 According to SR–FINRA–2015–015, test-center
delivery of the Regulatory Element will be phased
out by no later than six months after January 4,
2016. See id.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 Id.
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Federal Register / Vol. 80, No. 226 / Tuesday, November 24, 2015 / Notices
in person at testing centers. Since C2’s
proposed rule change is intended to
correct an external reference that was
the subject of a separate FINRA
proposed rule change, the Commission
believes it is in the public interest to
correct and update the C2 fee schedule
without delay. Accordingly, the
Commission hereby waives the
operative delay and designates the
proposal operative upon filing.16
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
C2–2015–031 on the subject line.
mstockstill on DSK4VPTVN1PROD with NOTICES
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–C2–2015–031. 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
16 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).
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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–C2–
2015–031, and should be submitted on
or before December 15, 2015.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
CBOE proposes to update the status of
CBOE’s administration of license
agreements for Livevol X (‘‘LVX’’).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Robert W. Errett,
Deputy Secretary.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2015–29839 Filed 11–23–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76471; File No. SR–CBOE–
2015–102]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Relating to
Administration of Livevol X License
Agreements
November 18, 2015.
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 November
13, 2015, Chicago Board Options
Exchange, Incorporated (the ‘‘Exchange’’
or ‘‘CBOE’’) 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.
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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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
On August 7, 2015, CBOE Livevol,
LLC (formerly CBOE IV, LLC) (‘‘CBOE
Livevol’’) completed its acquisition of
certain technology assets from the entity
formerly known as Livevol, Inc.
(‘‘Livevol’’), including LVX, a front-end
order entry and management tool. CBOE
had previously submitted a rule filing
that, among other things, described the
functionality of LVX and proposed
applicable fees, which would become
operative upon closing of the
acquisition of assets from Livevol.3 In
that filing, CBOE stated that it expected
CBOE Livevol to assume agreements
between Livevol and its then-current
LVX customers at the closing of the
acquisitions. CBOE further stated that
CBOE Livevol intended to prepare a
form license agreement for LVX and, no
later than three months following the
closing of the acquisition,4 ensure each
customer executed the form agreement
so that all LVX customers used the
product pursuant to the same terms and
conditions.5
CBOE has made significant progress
over the last three months in the
complicated process of integrating the
acquired Livevol business into CBOE’s
business and is in the process of
distributing its form license agreement
to LVX users. However, as LVX has
3 See Securities Exchange Act Release No. 34–
75302 (June 25, 2015), 80 FR 37685 (July 1, 2015)
(SR–CBOE–2015–062).
4 November 6, 2015 was the date three months
following the closing of the acquisition.
5 See supra note 3, at note 16.
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]]>Agencies
[Federal Register Volume 80, Number 226 (Tuesday, November 24, 2015)]
[Notices]
[Pages 73254-73256]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29839]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76466; File No. SR-C2-2015-031]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Delivery of the Regulatory Element of C2's Continuing
Education Program
November 18, 2015.
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 November 05, 2015, 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 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.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change
The purpose of the proposed rule change is to expand on the
Exchange's past representations made in SR-C2-2015-024 \3\ with respect
to Continuing Education (``CE'') Fees and Web-based delivery of the
Regulatory Element of the Exchange's CE program. There are no proposed
changes to the text of the Exchange's rules.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 76150 (October 14,
2015), 80 FR 63593 (October 20, 2015) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change to Amend the Fees
Schedule) (SR-C2-2015-024).
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[[Page 73255]]
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 purpose of this filing is to correct certain statements in SR-
C2-2015-024.\4\ On October 2, 2015, the Exchange filed SR-C2-2015-024
to amend the Fees Schedule with respect to CE-related fees and, in
particular, fees related to Web-based delivery of the Regulatory
Element of the Exchange's CE program.\5\ SR-C2-2015-024 was materially
based upon changes to FINRA Rule 1250, which were approved by the
Securities and Exchange Commission (``SEC'' or ``Commission'') in SR-
FINRA-2015-015.\6\
---------------------------------------------------------------------------
\4\ Id.
\5\ See id.
\6\ See Securities Exchange Act Release No. 75581 (July 31,
2015), 80 FR 47018 (August 6, 2015) (Order Approving a Proposed Rule
Change to Provide a Web-based Delivery Method for Completing the
Regulatory Element of the Continuing Education Requirements) (SR-
FINRA-2015-015).
---------------------------------------------------------------------------
Notably, within the Purpose section of SR-C2-2015-024, the Exchange
incorrectly stated that ``[t]he Regulatory Element of these Continuing
Education Programs [(i.e. the S106 for Investment Company and Variable
Contracts Representatives, the S201 for Registered Principals and
Supervisors, and the S901 for Operations Professionals)] will continue
to be offered at testing centers through January 4, 2016'' and that
``[p]ursuant to the Approval Order to SR-FINRA-2015-015, the fee for
test-center delivery of the Regulatory Element of the S106, S201, and
S901 Continuing Education Programs will continue to be $100 per session
through January 4, 2016 when the programs will no longer be offered at
testing centers.'' According to SR-FINRA-2015-015, however, the
Regulatory Element of the S106 for Investment Company and Variable
Contracts Representatives, the S201 for Registered Principals and
Supervisors, and the S901 for Operations Professionals will continue to
be offered at testing centers until no later than six months after
January 4, 2016.\7\ The Exchange therefore is submitting this filing
for the purpose of correcting SR-C2-2015-024 and in an effort to avoid
any confusion among Permit Holders as to how long the Regulatory
Element of the S106 for Investment Company and Variable Contracts
Representatives, the S201 for Registered Principals and Supervisors,
and the S901 for Operations Professionals will continue to be offered
at testing centers.
---------------------------------------------------------------------------
\7\ According to SR-FINRA-2015-015, test-center delivery of the
Regulatory Element will be phased out by no later than six months
after January 4, 2016. See id.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
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.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \10\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. In particular, the Exchange
believes that this filing will clarify its rules and help ensure that
Permit Holders are not confused by discrepancies that existed between
SR-C2-2015-024 and SR-FINRA-2015-015. The Exchange believes that
clarity in the Rules is in the interests of Permit Holders and all
investors and consistent with the Act.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ Id.
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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. This filing relates
generally to CE requirements required of all Permit Holders. In
addition, the filing is merely a clarification of a previous filing
already submitted by the Exchange. Accordingly, the Exchange does not
believe that the proposed rule change will impose any burden on
competition in the marketplace.
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 written 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 \11\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\12\
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\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of filing.\13\
Rule 19b-4(f)(6)(iii), however, permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest.\14\ The Exchange has asked the
Commission to waive the 30-day operative delay so that the proposal may
become operative immediately upon filing. The Exchange has stated that
waiver of the operative delay is necessary in order to correct
statements in a previous filing \15\ and to avoid any potential
confusion to investors. The Commission believes that waiver of the
operative delay is consistent with the protection of investors and the
public interest as it will allow C2 to update without delay its fee
schedule to accurately reflect the timing by which FINRA will phase out
offering the regulatory element of certain continuing education
programs
[[Page 73256]]
in person at testing centers. Since C2's proposed rule change is
intended to correct an external reference that was the subject of a
separate FINRA proposed rule change, the Commission believes it is in
the public interest to correct and update the C2 fee schedule without
delay. Accordingly, the Commission hereby waives the operative delay
and designates the proposal operative upon filing.\16\
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\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ Id.
\15\ See Securities Exchange Act Release No. 76150 (October 14,
2015), 80 FR 63593 (October 20, 2015) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change to Amend the Fees
Schedule) (SR-C2-2015-024).
\16\ 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).
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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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-C2-2015-031 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-C2-2015-031. 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
10:00 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-C2-2015-031,
and should be submitted on or before December 15, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-29839 Filed 11-23-15; 8:45 am]
BILLING CODE 8011-01-P
