Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule With Respect to Public Customer Maker/Taker Fee (Rebate) and Connectivity Charges, 1101-1103 [2012-97]

Download as PDF Federal Register / Vol. 77, No. 5 / Monday, January 9, 2012 / Notices 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: [FR Doc. 2012–95 Filed 1–6–12; 8:45 am] Electronic Comments BILLING CODE 8011–01–P • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File No. SR–Phlx–2011–178 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. tkelley on DSK3SPTVN1PROD with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Kevin M. O’Neill, Deputy Secretary. All submissions should refer to File No. SR–Phlx–2011–178. 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 No. SR–Phlx–2011– 178 and should be submitted on or before January 30, 2012. 1101 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 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–66082; File No. SR–C2– 2011–041] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule With Respect to Public Customer Maker/Taker Fee (Rebate) and Connectivity Charges January 3, 2012. 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 December 20, 2011, the C2 Options Exchange, Incorporated (‘‘Exchange’’ or ‘‘C2’’) filed with the Securities and Exchange Commission (‘‘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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change C2 proposes to amend its Fees Schedule. 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’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 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, CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. The Exchange proposes to amend its Fees Schedule. First, the Exchange proposes to amend its Maker and Taker fees and rebates with regards to Public Customer complex orders. Currently, the Exchange provides a Maker rebate of $0.25 per contract for such orders, and assesses no Taker fee. However, for competitive reasons, the Exchange desires to offer improved pricing for Public Customer complex orders. The International Securities Exchange, LLC (‘‘ISE’’) provides rebates of $0.30 per contract for both Makers and Takers for complex orders that trade with noncustomer orders in select high-volume, competitive classes.3 The Exchange hereby proposes to provide a rebate of $0.35 per contract for both Makers and Takers for complex orders, regardless of with whom such orders trade. By providing a higher rebate, and not limiting with whom such orders can trade nor in which classes the new rebates apply, the Exchange intends to attract a higher volume of customer trades and thereby provide other market participants with higher liquidity and greater trading opportunities. The Exchange also proposes to increase the fees charged for access to a Network Access Port (1 Gigabyte) to $500 per month for regular access and $1000 per month for Sponsored User access. The Exchange recently made a sizable investment to upgrade the equipment involved in the Network Access Port, and thereby proposes to increase the fees in order to recoup such costs and maintain such equipment in the future. The Exchange currently charges a different rate for regular access and Sponsored User access, and merely proposes to increase the rates in equal proportion. Moreover, this change in Network Access Port fees is in line with the amounts assessed for similar access at other exchanges. ISE assesses a fee of $500 for network access up to and including 1 gigabyte.4 Chicago Board Options Exchange, Incorporated (‘‘CBOE’’) also recently submitted a proposed rule change to increase the fees charged for access to a Network Access Port (1 Gigabyte) to $500 per 14 17 1 15 VerDate Mar<15>2010 16:26 Jan 06, 2012 Jkt 226001 PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 3 See 4 See E:\FR\FM\09JAN1.SGM ISE Fee Schedule, page 18 (footnote 3). ISE Schedule of Fees, page 9. 09JAN1 1102 Federal Register / Vol. 77, No. 5 / Monday, January 9, 2012 / Notices month for regular access and $1000 per month for Sponsored User access.5 The Exchange also proposes to increase the fees charged for a CMI Login ID and FIX Login ID to $500 per month for regular access and $1000 per month for Sponsored User access. Firms may access C2 via either a CMI Client Application Server or a FIX Port, depending on how their systems are configured. As with the Network Access Port, the Exchange recently made a sizable investment to upgrade the equipment involved in the CMI Client Application Servers and FIX Ports, and thereby proposes to increase the fees in order to recoup such costs and maintain such equipment in the future. Moreover, these changes are in line with amounts assessed for connectivity at other exchanges. ISE assesses a FIX fee of $1200 for a minimum of two monthly login IDs (so, $600 for one), or a fee of $2,400 for a higher-volume user.6 The NASDAQ Stock Market LLC’s Options Market (‘‘NOM’’) assesses a fee of $500 per FIX port per month, as well.7 CBOE also recently submitted a proposed rule change proposes to increase the fees charged for a CMI Login ID and FIX Login ID to $500 per month for regular access and $1000 per month for Sponsored User access.8 Regarding the Sponsored User fees, the Exchange currently charges a different rate for regular access and Sponsored User access, and merely proposes to increase the rates in equal proportion. The proposed changes are to take effect January 1, 2012. tkelley on DSK3SPTVN1PROD with NOTICES 2. Statutory Basis The proposed rule change is consistent with Section 6(b) of the Act,9 in general, and furthers the objectives of Section 6(b)(4) 10 of the Act in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among Trading Permit Holders and other persons using Exchange facilities. The proposed change to increase the Maker and Taker rebates for Public Customer complex orders is reasonable because Public Customers will now be receiving a higher rebate than previously. This proposed change is equitable and not unfairly discriminatory because offering a greater rebate for such orders will attract more customer trading volume to the Exchange, and this greater volume and 5 See SR–CBOE–2011–121. ISE Schedule of Fees, page 8 and SR–CBOE– 2011–121. 7 See NOM Rule 7053. 8 See SR–CBOE–2011–121. 9 15 U.S.C. 78f(b). 10 15 U.S.C. 78f(b)(4). 6 See VerDate Mar<15>2010 16:26 Jan 06, 2012 Jkt 226001 liquidity will benefit all market participants, including those non-Public Customer market participants who will now have more opportunities to trade with Public Customer orders. Further, this proposed change is in line with, and even more competitive than, the proposed fees on ISE for similar transactions.11 The proposed change to increase the Network Access Port fees is reasonable because the fees are within the same range as those assessed on other exchanges,12 and because such increase will assist in recouping expenditures recently made by the Exchange to upgrade the connectivity equipment. This proposed change is equitable and not unfairly discriminatory because the fees, as before, will be assessed to all market participants. The proposed changes to increase the fees assessed for CMI Login IDs and FIX Login IDs are also reasonable because such fees are within the same range as those assessed on other exchanges,13 and because such increases will assist in recouping expenditures recently made by the Exchange to upgrade the connectivity equipment. This proposed change is equitable and not unfairly discriminatory because the fees, as before, will be assessed to all market participants. Assessing higher fees for Sponsored Users is equitable and not unfairly discriminatory because Sponsored Users are able to access the Exchange and use the equipment provided without purchasing a trading permit. As such, Trading Permit Holders who have purchased a trading permit will have a higher level of commitment to transacting business on the Exchange and using Exchange facilities than Sponsored Users. 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. 11 See ISE Schedule of Fees, page 18. ISE Schedule of Fees, page 9. 13 See ISE Schedule of Fees, page 8 and NOM Rule 7053 and also SR–CBOE–2011–121. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The proposed rule change is designated by the Exchange as establishing or changing a due, fee, or other charge, thereby qualifying for effectiveness on filing pursuant to Section 19(b)(3)(A) of the Act 14 and subparagraph (f)(2) of Rule 19b–4 15 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. 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 rulecomments@sec.gov. Please include File Number SR–C2–2011–041 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–C2–2011–041. 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 12 See PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 14 15 15 17 E:\FR\FM\09JAN1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 09JAN1 Federal Register / Vol. 77, No. 5 / Monday, January 9, 2012 / Notices 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– 2011–041 and should be submitted on or before January 30, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–97 Filed 1–6–12; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–66084; File No. SR–ISE– 2011–84] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fees for Certain Complex Orders Executed on the Exchange January 3, 2012. tkelley on DSK3SPTVN1PROD with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’ or the ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that, on December 20, 2011, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) 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 Substance of the Proposed Rule Change The ISE is proposing to amend fees for certain complex orders executed on the Exchange. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.ise.com), at the principal office of 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Mar<15>2010 16:26 Jan 06, 2012 Jkt 226001 the Exchange, 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 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 these statements may be examined at the places specified in Item IV below. The self-regulatory organization 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 proposed rule change is to amend fees charged by the Exchange for certain orders on two of the most actively-traded index option products, the NASDAQ 100 Index option (‘‘NDX’’) and the Russell 2000 Index option (‘‘RUT’’). For trading in NDX and RUT, for both regular and complex orders, the Exchange currently charges $0.20 per contract for firm proprietary orders and Customer (Professional Orders), 3 and $0.45 per contract for Non-ISE Market Maker 4 orders. ISE market maker orders 5 in these two symbols are subject to a sliding scale, ranging from $0.01 per contract to $0.18 per contract, depending on the amount of overall volume traded by a market maker during a month. Market makers also currently pay a payment for order flow (PFOF) fee of $0.65 per contract when trading against Priority Customers. Priority Customer orders are not charged for trading in NDX and RUT. Options on NDX and RUT are traded on the Exchange pursuant to a license agreement entered into by the Exchange with index providers for NDX and RUT. In addition to the fees noted above, the Exchange currently charges ISE market maker orders, Non-ISE Market Maker orders and firm proprietary orders $0.22 3 The term ‘‘Professional Order’’ means an order that is for the account of a person or entity that is not a Priority Customer. See ISR Rule 100(a)(37C). 4 The term ‘‘Non-ISE Market Maker’’ means a market maker as defined in Section 3(a)(38) of the Securities Exchange Act of 1934 (the ‘‘Act’’) registered in the same options class on another options exchange. See Schedule of Fees, page 4. 5 The term ‘‘market makers’’ refers to ‘‘Competitive Market Makers’’ and ‘‘Primary Market Makers’’ collectively. See ISE Rule 100(a)(25). PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 1103 per contract and $0.15 per contract for NDX and RUT, respectively, to defray the licensing costs. Because of competitive pressures in the industry, certain customer orders are not charged this surcharge fee. The Exchange’s current fee schedule notes that Public Customer Orders are excluded from this surcharge fee. Historically, Public Customer orders were synonymous with retail customer orders. The Exchange now distinguishes retail customers from professional customers, the latter being professional traders who are not market makers or broker/dealers but behave the way that market makers and broker/ dealers do. Orders from these customers are identified on the Exchange as Professional Orders. Orders from retail customers are identified on the Exchange as Priority Customer orders. Thus, for the sake of clarity, the Exchange proposes to replace the words ‘‘Public’’ with ‘‘Priority’’ for all the surcharge fees that appear on the Exchange’s fee schedule. Thus, Priority Customer orders will remain exempt from this fee, while Professional Orders will be subject to the fee. The Exchange currently assesses a per contract transaction fee to market participants that add or remove liquidity in the Complex Order Book (‘‘maker/taker fees’’) in symbols that are in the Penny Pilot program. Included therein is a subset of 103 symbols that are assessed a slightly higher taker fee (the ‘‘Select Symbols’’).6 Additionally, pursuant to SEC approval which allows market makers to enter quotations for complex order strategies in the Complex Order Book,7 the Exchange recently adopted maker/taker fees and rebates for orders in the following three symbols: XOP, XLB and EFA.8 The Exchange now proposes to extend its maker/taker fees and rebates to complex orders in NDX and RUT. Specifically, for Customer (Professional Orders), firm proprietary and ISE market maker orders, ISE proposes to adopt a ‘‘make’’ fee of $0.25 per contract and a ‘‘take’’ fee of $0.70 per contract. For Non-ISE Market Maker orders, ISE proposes to adopt a ‘‘make’’ fee of $0.25 per contract and a ‘‘take’’ fee of $0.75 per contract. For crossing complex orders in NDX and RUT, i.e., orders executed in the Exchange’s Facilitation Mechanism, Solicited Order Mechanism, Block Order Mechanism and Price Improvement Mechanism, and 6 The Select Symbols are identified by their ticker symbol on the Exchange’s Schedule of Fees. 7 See Securities Exchange Act Release No. 65548 (October 13, 2011), 76 FR 64980 (October 19, 2011) (SR–ISE–2011–39). 8 See Securities Exchange Act Release No. 65958 (December 15, 2011) (SR–ISE–2011–81). E:\FR\FM\09JAN1.SGM 09JAN1

Agencies

[Federal Register Volume 77, Number 5 (Monday, January 9, 2012)]
[Notices]
[Pages 1101-1103]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-97]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66082; File No. SR-C2-2011-041]


Self-Regulatory Organizations; C2 Options Exchange, Incorporated; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Amend the Fees Schedule With Respect to Public Customer Maker/Taker 
Fee (Rebate) and Connectivity Charges

January 3, 2012.
    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 December 20, 2011, the C2 Options Exchange, Incorporated 
(``Exchange'' or ``C2'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

    C2 proposes to amend its Fees Schedule. 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'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 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 Exchange proposes to amend its Fees Schedule. First, the 
Exchange proposes to amend its Maker and Taker fees and rebates with 
regards to Public Customer complex orders. Currently, the Exchange 
provides a Maker rebate of $0.25 per contract for such orders, and 
assesses no Taker fee. However, for competitive reasons, the Exchange 
desires to offer improved pricing for Public Customer complex orders. 
The International Securities Exchange, LLC (``ISE'') provides rebates 
of $0.30 per contract for both Makers and Takers for complex orders 
that trade with non-customer orders in select high-volume, competitive 
classes.\3\ The Exchange hereby proposes to provide a rebate of $0.35 
per contract for both Makers and Takers for complex orders, regardless 
of with whom such orders trade. By providing a higher rebate, and not 
limiting with whom such orders can trade nor in which classes the new 
rebates apply, the Exchange intends to attract a higher volume of 
customer trades and thereby provide other market participants with 
higher liquidity and greater trading opportunities.
---------------------------------------------------------------------------

    \3\ See ISE Fee Schedule, page 18 (footnote 3).
---------------------------------------------------------------------------

    The Exchange also proposes to increase the fees charged for access 
to a Network Access Port (1 Gigabyte) to $500 per month for regular 
access and $1000 per month for Sponsored User access. The Exchange 
recently made a sizable investment to upgrade the equipment involved in 
the Network Access Port, and thereby proposes to increase the fees in 
order to recoup such costs and maintain such equipment in the future. 
The Exchange currently charges a different rate for regular access and 
Sponsored User access, and merely proposes to increase the rates in 
equal proportion. Moreover, this change in Network Access Port fees is 
in line with the amounts assessed for similar access at other 
exchanges. ISE assesses a fee of $500 for network access up to and 
including 1 gigabyte.\4\ Chicago Board Options Exchange, Incorporated 
(``CBOE'') also recently submitted a proposed rule change to increase 
the fees charged for access to a Network Access Port (1 Gigabyte) to 
$500 per

[[Page 1102]]

month for regular access and $1000 per month for Sponsored User 
access.\5\
---------------------------------------------------------------------------

    \4\ See ISE Schedule of Fees, page 9.
    \5\ See SR-CBOE-2011-121.
---------------------------------------------------------------------------

    The Exchange also proposes to increase the fees charged for a CMI 
Login ID and FIX Login ID to $500 per month for regular access and 
$1000 per month for Sponsored User access. Firms may access C2 via 
either a CMI Client Application Server or a FIX Port, depending on how 
their systems are configured. As with the Network Access Port, the 
Exchange recently made a sizable investment to upgrade the equipment 
involved in the CMI Client Application Servers and FIX Ports, and 
thereby proposes to increase the fees in order to recoup such costs and 
maintain such equipment in the future. Moreover, these changes are in 
line with amounts assessed for connectivity at other exchanges. ISE 
assesses a FIX fee of $1200 for a minimum of two monthly login IDs (so, 
$600 for one), or a fee of $2,400 for a higher-volume user.\6\ The 
NASDAQ Stock Market LLC's Options Market (``NOM'') assesses a fee of 
$500 per FIX port per month, as well.\7\ CBOE also recently submitted a 
proposed rule change proposes to increase the fees charged for a CMI 
Login ID and FIX Login ID to $500 per month for regular access and 
$1000 per month for Sponsored User access.\8\ Regarding the Sponsored 
User fees, the Exchange currently charges a different rate for regular 
access and Sponsored User access, and merely proposes to increase the 
rates in equal proportion.
---------------------------------------------------------------------------

    \6\ See ISE Schedule of Fees, page 8 and SR-CBOE-2011-121.
    \7\ See NOM Rule 7053.
    \8\ See SR-CBOE-2011-121.
---------------------------------------------------------------------------

    The proposed changes are to take effect January 1, 2012.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\9\ in general, and furthers the objectives of Section 6(b)(4) \10\ 
of the Act in particular, in that it is designed to provide for the 
equitable allocation of reasonable dues, fees, and other charges among 
Trading Permit Holders and other persons using Exchange facilities. The 
proposed change to increase the Maker and Taker rebates for Public 
Customer complex orders is reasonable because Public Customers will now 
be receiving a higher rebate than previously. This proposed change is 
equitable and not unfairly discriminatory because offering a greater 
rebate for such orders will attract more customer trading volume to the 
Exchange, and this greater volume and liquidity will benefit all market 
participants, including those non-Public Customer market participants 
who will now have more opportunities to trade with Public Customer 
orders. Further, this proposed change is in line with, and even more 
competitive than, the proposed fees on ISE for similar 
transactions.\11\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4).
    \11\ See ISE Schedule of Fees, page 18.
---------------------------------------------------------------------------

    The proposed change to increase the Network Access Port fees is 
reasonable because the fees are within the same range as those assessed 
on other exchanges,\12\ and because such increase will assist in 
recouping expenditures recently made by the Exchange to upgrade the 
connectivity equipment. This proposed change is equitable and not 
unfairly discriminatory because the fees, as before, will be assessed 
to all market participants. The proposed changes to increase the fees 
assessed for CMI Login IDs and FIX Login IDs are also reasonable 
because such fees are within the same range as those assessed on other 
exchanges,\13\ and because such increases will assist in recouping 
expenditures recently made by the Exchange to upgrade the connectivity 
equipment. This proposed change is equitable and not unfairly 
discriminatory because the fees, as before, will be assessed to all 
market participants. Assessing higher fees for Sponsored Users is 
equitable and not unfairly discriminatory because Sponsored Users are 
able to access the Exchange and use the equipment provided without 
purchasing a trading permit. As such, Trading Permit Holders who have 
purchased a trading permit will have a higher level of commitment to 
transacting business on the Exchange and using Exchange facilities than 
Sponsored Users.
---------------------------------------------------------------------------

    \12\ See ISE Schedule of Fees, page 9.
    \13\ See ISE Schedule of Fees, page 8 and NOM Rule 7053 and also 
SR-CBOE-2011-121.
---------------------------------------------------------------------------

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

    The proposed rule change is designated by the Exchange as 
establishing or changing a due, fee, or other charge, thereby 
qualifying for effectiveness on filing pursuant to Section 19(b)(3)(A) 
of the Act \14\ and subparagraph (f)(2) of Rule 19b-4 \15\ 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.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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-C2-2011-041 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-C2-2011-041. 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

[[Page 1103]]

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-C2-2011-041 and should be 
submitted on or before January 30, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-97 Filed 1-6-12; 8:45 am]
BILLING CODE 8011-01-P
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