Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend C2 Rule 8.2 Concerning the Market-Maker Registration Cost for SPXPM, 62123-62125 [2011-25823]
Download as PDF
<![CDATA[
mstockstill on DSK4VPTVN1PROD with NOTICES
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Notices
6(b)(5) of the Act,10 which requires,
among other things, that the rules of a
national securities 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, and
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.
Section 6(b)(5) also requires that the
rules of an exchange not be designed to
permit unfair discrimination among
customers, issuers, brokers, or dealers.
Recognizing that the Commission has
expressed concern regarding the
potential for conflicts of interest in
instances where a member firm is
affiliated with an exchange to which it
is routing orders, the Exchange
previously implemented limitations and
conditions to Arca Securities’s
affiliation with the Exchange to permit
the Exchange to accept orders routed
inbound to NYSE Arca by Arca
Securities from its affiliates, NYSE
Amex and NYSE Arca, on a pilot
basis.11 The Exchange now seeks to
make this pilot permanent, and to more
accurately reflect in its rule text its RSA
with FINRA. Specifically, the Exchange
states it is in compliance with the
following obligations and conditions:12
• First, the Exchange will maintain an
agreement pursuant to Rule 17d–2
under the Exchange Act with FINRA to
relieve the Exchange of regulatory
responsibilities for Arca Securities with
respect to rules that are common rules
between the Exchange and FINRA, and
maintain an RSA with FINRA to
perform regulatory responsibilities for
Arca Securities for unique Exchange
rules.
• Second, the RSA will require the
Exchange to provide FINRA with
information, in an easily accessible
manner, regarding all exception reports,
alerts, complaints, trading errors,
cancellations, investigations, and
enforcement matters (collectively
‘‘Exceptions’’) in which Arca Securities
is identified as a participant that has
potentially violated Exchange or
Commission Rules and of which the
Exchange becomes aware, and shall
require that FINRA provide a report, at
least quarterly, to the Exchange
10 15
U.S.C. 78f(b)(5).
Routing Pilot Release. See also supra note
6 and accompanying text.
12 See Notice, 76 FR at 53514.
11 See
VerDate Mar<15>2010
17:26 Oct 05, 2011
Jkt 226001
quantifying all Exceptions in which
Arca Securities is identified as a
participant that has potentially violated
Exchange or Commission Rules; 13
• Third, the Exchange, on behalf of its
parent, NYSE Euronext, will establish
and maintain procedures and internal
controls reasonably designed to prevent
Arca Securities from receiving any
benefit, taking any action or engaging in
any activity based on non-public
information regarding planned changes
to Exchange systems, obtained as a
result of its affiliation with the
Exchange, until such information is
available generally to similarly situated
member organizations of the Exchange
in connection with the provision of
inbound order routing to the Exchange;
and
• Fourth, the Exchange may furnish
to Arca Securities the same information
on the same terms that the Exchange
makes available in the normal course of
business to any other member
organization.14
The Exchange believes that by meeting
the above-listed conditions it has set up
mechanisms that protect the
independence of the Exchange’s
regulatory responsibility with respect to
Arca Securities, and has demonstrated
that Arca Securities cannot use any
information it may have because of its
affiliation with the Exchange to its
advantage.15
In the past, the Commission has
expressed concern that the affiliation of
an exchange with one of its members
raises potential conflicts of interest, and
the potential for unfair competitive
advantage.16 Although the Commission
62123
continues to be concerned about
potential unfair competition and
conflicts of interest between an
exchange’s self-regulatory obligations
and its commercial interest when the
exchange is affiliated with one of its
members, for the reasons discussed
below, the Commission believes that it
is consistent with the Act to permit Arca
Securities to provide inbound routing to
the Exchange on a permanent basis
instead of a pilot basis, subject to the
other conditions described above.
The Exchange has proposed four
ongoing conditions applicable to Arca
Securities’s routing activities, which are
enumerated above. The Commission
believes that these conditions mitigate
its concerns about potential conflicts of
interest and unfair competitive
advantage. In particular, the
Commission believes that FINRA’s
oversight of Arca Securities,17 combined
with FINRA’s monitoring of Arca
Securities’s compliance with the
Exchange’s rules and quarterly reporting
to NYSE’s CRO, will help to protect the
independence of the Exchange’s
regulatory responsibilities with respect
to Arca Securities.
V. Conclusion
It Is Therefore Ordered, pursuant to
Section 19(b)(2) of the Act,18 that the
proposed rule change (SR–NYSE–2011–
45) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–25825 Filed 10–5–11; 8:45 am]
BILLING CODE 8011–01–P
13 See
Notice, 76 FR at 53514, n.8 and
accompanying text. The Exchange proposed to
modify this provision, as set forth in NYSE Rule
17(c)(2)(A)(ii) to more accurately reflect its RSA
with FINRA and specify that the quarterly report of
Exceptions shall be provided to the Exchange’s
Chief Regulatory Officer (‘‘CRO’’). The Exchange
states that upon approval of this change, it will
continue to comply with the obligations and
conditions as set forth in NYSE Rule 17(c)(2). See
Notice, 76 FR at 53514.
14 See NYSE Rule 17(c)(2). See also Notice, 76 FR
at 53514.
15 See Notice, 76 FR at 53514.
16 See, e.g., Securities Exchange Act Release Nos.
54170 (July 18, 2006), 71 FR 42149 (July 25, 2006)
(SR–NASDAQ–2006–006) (order approving
Nasdaq’s proposal to adopt Nasdaq Rule 2140,
restricting affiliations between Nasdaq and its
members); 53382 (February 27, 2006), 71 FR 11251
(March 6, 2006) (SR–NYSE–2005–77) (order
approving the combination of the New York Stock
Exchange, Inc. and Archipelago Holdings, Inc.);
58673 (September 29, 2008), 73 FR 57707 (October
8, 2008) (SR–Amex–2008–62) (order approving the
combination of NYSE Euronext and the American
Stock Exchange LLC); 59135 (December 22, 2008),
73 FR 79954 (December 30, 2008) (SR–ISE–2009–
85) (order approving the purchase by ISE Holdings
of an ownership interest in DirectEdge Holdings
LLC); and 59281 (January 22, 2009), 74 FR 5014
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65452; File No. SR–C2–
2011–023]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend C2 Rule 8.2
Concerning the Market-Maker
Registration Cost for SPXPM
September 30, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
(January 28, 2009) (SR–NYSE–2008–120) (order
approving a joint venture between NYSE and BIDS
Holdings L.P.).
17 This oversight will be accomplished through
the Regulatory Contract between the Exchange and
FINRA and a 17d–2 Agreement.
18 15 U.S.C. 78s(b)(2).
19 17 CFR 200.30–3(a)(12).
E:\FR\FM\06OCN1.SGM
06OCN1
62124
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Notices
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 20, 2011, the C2 Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘C2’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The filing proposes to amend C2 rules
relating to the Market-Maker registration
cost for P.M.-settled S&P 500 Index
options (SPXPM). The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/legal), at the Exchange’s
Office of the Secretary, and at the
Commission.
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
self-regulatory organization 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 forth in sections A, B, and C below,
of the most significant parts of such
statements.
mstockstill on DSK4VPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this rule change is to
amend C2 Rule 8.2 to establish MarketMaker registration costs for SPXPM
options before trading commences in
that options class.5 The Exchange
proposes to amend Rule 8.2(d) to
specifically reference SPXPM options as
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 34–
65256 (September 2, 2011), 76 FR 55969 (September
9, 2011) (SR–C2–2011–008).
2 17
VerDate Mar<15>2010
16:07 Oct 05, 2011
Jkt 226001
having a registration cost of 1.0. The
Exchange notes that the new registration
cost for SPXPM options will be the
initial registration cost because this
options class is not currently trading.
Thus, to trade SPXPM, a C2 MarketMaker will be required to obtain a
dedicated Market-Maker permit.
Pursuant to the C2 fee schedule, a
Market-Maker permit costs $5,000 per
month (additionally the Exchange
anticipates adopting an SPXPM Tier
Appointment cost in the near future).
Among other reasons, the Exchange
believes that the registration cost change
for SPXPM is reasonable in light of the
fact that it is a new product and the
registration cost is comparable to the 1.0
appointment cost for A.M.-settled S&P
500 Index options traded on the Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’) under CBOE Rule 8.2(c)(iii).
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations under the
Act applicable to a national securities
exchange and, in particular, the
requirements of Section 6(b) of the Act.
Specifically, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) Act 6 requirements
that the rules of an exchange be
designed to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts and,
in general, to protect investors and the
public interest. Among other reasons,
the Exchange believes that the
registration cost change for SPXPM is
reasonable in light of the fact that it is
a new product and the registration cost
is comparable to the 1.0 appointment
cost for A.M.-settled S&P 500 Index
options traded on the CBOE under
CBOE Rule 8.2(c)(iii).
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 not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
6 15
PO 00000
U.S.C. 78f(b)(5).
Frm 00090
Fmt 4703
Sfmt 4703
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule 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 if consistent
with the protection of investors and the
public interest, provided that the selfregulatory organization has given the
Commission written notice of its intent
to file the proposed rule change at least
five business days prior to the date of
filing of the proposed rule change or
such shorter time as designated by the
Commission, the proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 7 and Rule
19b–4(f)(6) thereunder.8
The Exchange has requested that the
Commission waive the 30-day operative
delay period. Waiving the operative
delay will enable the Exchange to
impose the market-maker registration
cost for SPXPM options before the
commencement of trading in that
options class. Because C2’s proposal for
a 1.0 registration cost for SPXPM is
comparable to the existing 1.0
registration cost for the similar S&P 500
index option traded on CBOE, C2’s
proposal is consistent with CBOE’s
current rule and does not raise any new
or novel issues. Accordingly, the
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, and designates the
proposed rule change to be operative
upon filing with the Commission.9
At any time within 60 days of the
filing of such 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.
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
9 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
8 17
E:\FR\FM\06OCN1.SGM
06OCN1
Federal Register / Vol. 76, No. 194 / Thursday, October 6, 2011 / Notices
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 e-mail to rulecomments@sec.gov. Please include File
Number SR–C2–2011–023 on the
subject line.
Paper Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–C2–2011–023. This file
number should be included on the
subject line if e-mail 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 C2. 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 publicly available. All
submissions should refer to File
Number SR–C2–2011–023 and should
be submitted on or before October 27,
2011.
VerDate Mar<15>2010
16:07 Oct 05, 2011
Jkt 226001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–25823 Filed 10–5–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65451; File No. SR–
NYSEAmex–2011–64]
Self-Regulatory Organizations; NYSE
Amex LLC; Order Approving a
Proposed Rule Change Amending
NYSE Amex Options Rule 993NY(b)(2)
To Make Permanent the Pilot Program
that Permits the Exchange To Accept
Inbound Orders Routed by
Archipelago Securities LLC in Its
Capacity as a Facility of Affiliated
Exchanges and To Clarify the Text of
NYSE Amex Options Rule
993NY(b)(1)(B) to More Accurately
Reflect the Regulatory Services
Agreement Between the Exchange and
the Financial Industry Regulatory
Authority
September 30, 2011.
I. Introduction
On August 18, 2011, NYSE Amex LLC
(‘‘NYSE Amex’’ or ‘‘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 make permanent the existing
pilot program that permits the Exchange
to accept inbound orders routed by
Archipelago Securities LLC (‘‘Arca
Securities’’) in its capacity as a facility
of an affiliated exchange (with the
attendant obligations and conditions),
and to clarify the text of NYSE Amex
Options Rule 993NY(b)(2) to more
accurately reflect the regulatory services
agreement (‘‘RSA’’) between the
Exchange and the Financial Industry
Regulatory Authority (‘‘FINRA’’). The
proposed rule change was published for
comment in the Federal Register on
August 26, 2011.3 The Commission
received no comment letters regarding
the proposed rule change. This order
approves the proposed rule change.
II. Background
Arca Securities is a broker-dealer that
is an NYSE Amex trading permit holder
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 65181
(August 22, 2011), 76 FR 53516 (‘‘Notice’’).
1 15
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
62125
(‘‘ATP Holder’’),4 and, among other
things, is permitted to provide to
members of NYSE Arca optional routing
services to other market centers.5 On
June 16, 2011, the Exchange filed an
immediately effective proposed rule
change to, among other things, permit
the Exchange to receive inbound routes
of option orders that Arca Securities
routes in its capacity as a facility of
NYSE Arca on a pilot basis ending
September 30, 2011.6 The Exchange
now seeks permanent approval of this
inbound routing pilot.7
III. Discussion and Commission
Findings
After careful review, 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.8 Specifically, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(1) of the Act,9 which requires,
among other things, that a national
securities exchange be so organized and
have the capacity to carry out the
purposes of the Act, and to comply and
enforce compliance by its members and
persons associated with its members,
with the provisions of the Act, the rules
and regulation thereunder, and the rules
of the Exchange. Further, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,10 which requires,
among other things, that the rules of a
national securities 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
4 ‘‘ATP Holder’’ is defined in NYSE Amex
Options Rule 900.2NY(5). Arca Securities is owned
indirectly by NYSE Euronext (‘‘NYSE Euronext’’),
which also indirectly owns three registered
securities exchanges—NYSE Arca, Inc. (‘‘NYSE
Arca’’), the Exchange, and New York Stock
Exchange LLC (‘‘NYSE’’). Thus, Arca Securities is
an affiliate of each of these exchanges.
5 Arca Securities operates as a facility of NYSE
Arca that provides outbound routing from NYSE
Arca to other market centers, subject to certain
conditions. See Securities Exchange Act Release
No. 52497 (September 22, 2005), 70 FR 56949,
56952–56953 (September 29, 2005) (SR–PCX–2005–
90).
6 See Securities Exchange Act Release No. 64732
(June 23, 2011), 76 FR 38240 (June 29, 2011) (SR–
NYSEAmex–2011–40) (‘‘Routing Pilot Release’’).
See also Notice, 76 FR at 53517, n.5 and
accompanying text.
7 See Notice.
8 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition and capital
formation. 15 U.S.C. 78c(f).
9 15 U.S.C. 78f(b)(1).
10 15 U.S.C. 78f(b)(5).
E:\FR\FM\06OCN1.SGM
06OCN1
]]>Agencies
[Federal Register Volume 76, Number 194 (Thursday, October 6, 2011)]
[Notices]
[Pages 62123-62125]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-25823]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65452; File No. SR-C2-2011-023]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend C2 Rule 8.2 Concerning the Market-Maker Registration Cost for
SPXPM
September 30, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the
[[Page 62124]]
``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 20, 2011, the C2 Options Exchange, Incorporated
(``Exchange'' or ``C2'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I and II below, which Items have been prepared by the
Exchange. The Exchange has designated the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The filing proposes to amend C2 rules relating to the Market-Maker
registration cost for P.M.-settled S&P 500 Index options (SPXPM). The
text of the proposed rule change is available on the Exchange's Web
site (https://www.cboe.org/legal), at the Exchange's Office of the
Secretary, and at the Commission.
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 self-regulatory organization
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 forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this rule change is to amend C2 Rule 8.2 to
establish Market-Maker registration costs for SPXPM options before
trading commences in that options class.\5\ The Exchange proposes to
amend Rule 8.2(d) to specifically reference SPXPM options as having a
registration cost of 1.0. The Exchange notes that the new registration
cost for SPXPM options will be the initial registration cost because
this options class is not currently trading. Thus, to trade SPXPM, a C2
Market-Maker will be required to obtain a dedicated Market-Maker
permit. Pursuant to the C2 fee schedule, a Market-Maker permit costs
$5,000 per month (additionally the Exchange anticipates adopting an
SPXPM Tier Appointment cost in the near future).
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 34-65256 (September
2, 2011), 76 FR 55969 (September 9, 2011) (SR-C2-2011-008).
---------------------------------------------------------------------------
Among other reasons, the Exchange believes that the registration
cost change for SPXPM is reasonable in light of the fact that it is a
new product and the registration cost is comparable to the 1.0
appointment cost for A.M.-settled S&P 500 Index options traded on the
Chicago Board Options Exchange, Incorporated (``CBOE'') under CBOE Rule
8.2(c)(iii).
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations under the Act applicable to a
national securities exchange and, in particular, the requirements of
Section 6(b) of the Act. Specifically, the Exchange believes the
proposed rule change is consistent with the Section 6(b)(5) Act \6\
requirements that the rules of an exchange be designed to promote just
and equitable principles of trade, to prevent fraudulent and
manipulative acts and, in general, to protect investors and the public
interest. Among other reasons, the Exchange believes that the
registration cost change for SPXPM is reasonable in light of the fact
that it is a new product and the registration cost is comparable to the
1.0 appointment cost for A.M.-settled S&P 500 Index options traded on
the CBOE under CBOE Rule 8.2(c)(iii).
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 not necessary or appropriate in furtherance of
the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule 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 if consistent with the protection of investors
and the public interest, provided that the self-regulatory organization
has given the Commission written notice of its intent to file the
proposed rule change at least five business days prior to the date of
filing of the proposed rule change or such shorter time as designated
by the Commission, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6)
thereunder.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
---------------------------------------------------------------------------
The Exchange has requested that the Commission waive the 30-day
operative delay period. Waiving the operative delay will enable the
Exchange to impose the market-maker registration cost for SPXPM options
before the commencement of trading in that options class. Because C2's
proposal for a 1.0 registration cost for SPXPM is comparable to the
existing 1.0 registration cost for the similar S&P 500 index option
traded on CBOE, C2's proposal is consistent with CBOE's current rule
and does not raise any new or novel issues. Accordingly, the Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest, and designates the
proposed rule change to be operative upon filing with the
Commission.\9\
---------------------------------------------------------------------------
\9\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such 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.
[[Page 62125]]
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 e-mail to rule-comments@sec.gov. Please include
File Number SR-C2-2011-023 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-C2-2011-023. This file
number should be included on the subject line if e-mail 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 C2. 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 publicly available. All
submissions should refer to File Number SR-C2-2011-023 and should be
submitted on or before October 27, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-25823 Filed 10-5-11; 8:45 am]
BILLING CODE 8011-01-P
