Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Making Technical, Non-Substantive Clarifications to its Fees Schedule, 50741-50742 [2012-20591]

Download as PDF Federal Register / Vol. 77, No. 163 / Wednesday, August 22, 2012 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION [Release No. 34–67675; File No. SR–C2– 2012–027] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Making Technical, NonSubstantive Clarifications to its Fees Schedule August 16, 2012. 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 August 3, 2012, C2 Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘C2’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to make technical, non-substantive clarifications to its Fees Schedule. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.c2exchange.com/Legal/), at the Exchange’s Office of the Secretary, and at the Commission’s Public Reference Room. mstockstill on DSK4VPTVN1PROD with 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. 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 16:53 Aug 21, 2012 Jkt 226001 1. Purpose The Exchange proposes to make clarifying, non-substantive changes to its Fees Schedule in order to make it easier to comprehend for market participants. First, the Exchange proposes to begin referring to ‘‘straight, one-sided orders’’ as ‘‘simple orders’’. Investors generally refer to orders as either ‘‘simple’’ or ‘‘complex’’ and the terminology ‘‘straight, one-sided orders’’ is not as commonly-known. Since simple orders are straight, one-sided orders, the Exchange proposes to call ‘‘straight, one-sided orders’’ ‘‘simple orders’’ in order to make the Fees Schedule easier for investors to understand. The Exchange further proposes to clarify that such orders are not complex orders (to which a separate set of fees apply) by referring to simple orders as ‘‘simple, non-complex’’ orders.3 Second, the Fees Schedule currently applies sets of fees for simple and complex transactions (with the exception of SPXPM) to ‘‘multiplylisted, equity and ETF options classes.’’ While this is true, since SPXPM (as a singly-listed index options class) is neither a multiply-listed, equity or ETF options class, it reads slightly confusingly because there is no mention of index options classes. As such, the Exchange proposes to replace the term ‘‘multiply-listed, equity and ETF options classes’’ with ‘‘multiply-listed index, equity and ETF options classes’’ to clarify that the sets of fees apply to all index, equity and ETF options classes that are multiply-listed. 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.4 Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 5 requirements that the rules of an exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts, to remove impediments to and to 3 The Commission notes that, in this proposed rule change, C2 failed to update similar references to ‘‘straight one-sided orders’’ in Section 1.B. of its Fees Schedule. C2 has submitted a separate proposed rule change to update these references. See SR–C2–2012–028. 4 15 U.S.C. 78f(b). 5 15 U.S.C. 78f(b)(5). PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 50741 perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest. The proposed clarifying changes to the Fees Schedule serve to eliminate potential confusion, thereby perfecting the mechanism for a free and open market and a national market system, and, in general, protecting investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition C2 does not believe that the proposed rule change will impose any burden on competition that is not necessary or 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 The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) 6 of the Act and paragraph (f) of Rule 19b–4 7 thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 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–C2–2012–027 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, 6 15 7 17 E:\FR\FM\22AUN1.SGM U.S.C. 78s(b)(3)(A). C.F.R. 240.19b–4(f). 22AUN1 50742 Federal Register / Vol. 77, No. 163 / Wednesday, August 22, 2012 / Notices Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION All submissions should refer to File Number SR–C2–2012–027. 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 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– 2012–027 and should be submitted by September 12, 2012. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Elizabeth M. Murphy, Secretary. [FR Doc. 2012–20591 Filed 8–21–12; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–67666; File No. SR–NYSE– 2012–18] Self-Regulatory Organizations; New York Stock Exchange LLC; Order Approving a Proposed Rule Change Amending the New York Stock Exchange Price List To Provide for Additional Co-location Services and Establish Related Fees August 15, 2012. I. Introduction On June 13, 2012, New York Stock Exchange LLC (‘‘NYSE’’ or 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 the NYSE Price List to provide for additional co-location services and establish related fees. The proposed rule change was published for comment in the Federal Register on July 2, 2012.3 The Commission received no comments on the proposal. This order approves the proposed rule change. II. Description of the Proposed Rule Change The Exchange provides co-location services to Users from a data center in Mahwah, New Jersey.4 The Exchange’s co-location services allow Users to rent space in the data center so that they may locate their electronic servers in close physical proximity to the Exchange’s trading and execution system.5 The Exchange proposes to make multiple changes to provide for additional colocation services and establish related fees. Cabinet Cross Connects Currently the Exchange allows Users with more than one cabinet within the data center to purchase one or more fiber cross connects between its cabinets. The Exchange proposes that 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 67262 (June 26, 2012), 77 FR 39292 (‘‘Notice’’). 4 See Securities Exchange Act Release No. 62960 (September 21, 2010), 75 FR 59310 (September 27, 2010) (SR–NYSE–2010–56). 5 For purposes of its co-location services, the term ‘‘User’’ currently includes (i) member organizations, as that term is defined in NYSE Rule 2(b), (ii) Sponsored Participants, as that term is defined in NYSE Rule 123B.30(a)(ii)(B), and (iii) non-member organization broker-dealers and vendors that request to receive co-location services directly from the Exchange. See Securities Exchange Act Release No. 65973 (December 15, 2011), 76 FR 79232 (December 21, 2011) (SR–NYSE–2011–53). mstockstill on DSK4VPTVN1PROD with NOTICES 2 17 8 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:53 Aug 21, 2012 Jkt 226001 PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 each User be permitted to purchase cross connects between its own cabinets, as is currently permitted, as well as between its cabinet(s) and the cabinets of separate Users within the data center.6 A cross connect between Users could be requested in order to receive technical support, order routing and/or market data delivery services from another User. In addition, the Exchange proposes to bundle cross connects such that a single sheath can hold either one cross connect or several cross connects in multiples of six (e.g., six, twelve, eighteen or twenty-four cross connects). The Exchange proposes to charge a $500 initial fee for either single or bundled cross connects and a monthly charge contingent upon the number of cross connects established.7 10 Gb LCN Connections Users are currently able to purchase access to the Exchange’s Liquidity Center Network (‘‘LCN’’), a local area network available in the data center, in either one or ten gigabit (‘‘Gb’’) capacities, for which Users incur an initial and monthly fee per connection. The Exchange proposes that a User that purchases five 10 Gb LCN connections would only be charged the initial fee for a sixth 10 Gb LCN connection and would not be charged the monthly fee that would otherwise be applicable. LCN CSP Connections A User may act as a content service provider (a ‘‘CSP User’’) and deliver services to another User in the data center (a ‘‘Subscribing User’’), such as order routing or market data delivery services. The services can be provided either via direct cross connect between the CSP User and Subscribing Users; or in addition, CSP Users can send data to, and communicate with, all their properly authorized Subscribing Users at once, via a dedicated LCN Connection (an ‘‘LCN CSP’’ connection). The Exchange proposes an initial connection fee for CSP Users establishing a LCN CSP connection as well as a monthly charge depending on whether the connection is a 1 or 10 Gb circuit. The Subscribing User receives the services via its standard LCN connection and is charged an initial and monthly fee that 6 The Exchange notes that only the User requesting the cross connect would be charged the related initial and monthly fees; the counterparty User would simply be required to give permission for the cross connection. 7 The Exchange proposes to charge $500 monthly to furnish and install one cross connect between cabinets. For a bundle of six cross connects, the monthly charge would be $1,500; 12 cross connects would be $2,500 per month; 18 cross connects would be $3,200 per month; and 24 cross connects would be $3,900 per month. E:\FR\FM\22AUN1.SGM 22AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 77, Number 163 (Wednesday, August 22, 2012)]
[Notices]
[Pages 50741-50742]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-20591]

[[Page 50741]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67675; File No. SR-C2-2012-027]

Self-Regulatory Organizations; C2 Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change Making Technical, Non-Substantive Clarifications
to its Fees Schedule

August 16, 2012.
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 August 3, 2012, C2 Options Exchange, Incorporated (the
``Exchange'' or ``C2'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

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

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

The Exchange proposes to make technical, non-substantive
clarifications to its Fees Schedule. The text of the proposed rule
change is available on the Exchange's Web site (https://www.c2exchange.com/Legal/), at the Exchange's Office of the Secretary,
and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change

1. Purpose
The Exchange proposes to make clarifying, non-substantive changes
to its Fees Schedule in order to make it easier to comprehend for
market participants. First, the Exchange proposes to begin referring to
``straight, one-sided orders'' as ``simple orders''. Investors
generally refer to orders as either ``simple'' or ``complex'' and the
terminology ``straight, one-sided orders'' is not as commonly-known.
Since simple orders are straight, one-sided orders, the Exchange
proposes to call ``straight, one-sided orders'' ``simple orders'' in
order to make the Fees Schedule easier for investors to understand. The
Exchange further proposes to clarify that such orders are not complex
orders (to which a separate set of fees apply) by referring to simple
orders as ``simple, non-complex'' orders.\3\
---------------------------------------------------------------------------

\3\ The Commission notes that, in this proposed rule change, C2
failed to update similar references to ``straight one-sided orders''
in Section 1.B. of its Fees Schedule. C2 has submitted a separate
proposed rule change to update these references. See SR-C2-2012-028.
---------------------------------------------------------------------------

Second, the Fees Schedule currently applies sets of fees for simple
and complex transactions (with the exception of SPXPM) to ``multiply-
listed, equity and ETF options classes.'' While this is true, since
SPXPM (as a singly-listed index options class) is neither a multiply-
listed, equity or ETF options class, it reads slightly confusingly
because there is no mention of index options classes. As such, the
Exchange proposes to replace the term ``multiply-listed, equity and ETF
options classes'' with ``multiply-listed index, equity and ETF options
classes'' to clarify that the sets of fees apply to all index, equity
and ETF options classes that are multiply-listed.
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.\4\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \5\ requirements that the rules of
an exchange be designed to promote just and equitable principles of
trade, to prevent fraudulent and manipulative acts, to remove
impediments to and to perfect the mechanism for a free and open market
and a national market system, and, in general, to protect investors and
the public interest. The proposed clarifying changes to the Fees
Schedule serve to eliminate potential confusion, thereby perfecting the
mechanism for a free and open market and a national market system, and,
in general, protecting investors and the public interest.
---------------------------------------------------------------------------

\4\ 15 U.S.C. 78f(b).
\5\ 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 that is 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

The Exchange neither solicited nor received comments on the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \6\ of the Act and paragraph (f) of Rule 19b-4 \7\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 C.F.R. 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-C2-2012-027 on the subject line.

Paper Comments

Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary,

[[Page 50742]]

Securities and Exchange Commission, 100 F Street NE., Washington, DC
20549-1090.

All submissions should refer to File Number SR-C2-2012-027. 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 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-C2-2012-027 and should be
submitted by September 12, 2012.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

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

Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-20591 Filed 8-21-12; 8:45 am]
BILLING CODE 8011-01-P

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