Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the BBO Data Feed for C2 Listed Options, 5523-5525 [2013-01491]

Download as PDF Federal Register / Vol. 78, No. 17 / Friday, January 25, 2013 / Notices extending the effective date until March 4, 2013. FINRA, therefore, believes that the proposed rule change will promote the orderly coordination and implementation of technological and other changes to facilitate compliance with new FINRA Rule 5350. B. Self-Regulatory Organization’s Statement on Burden on Competition FINRA does not believe that the proposed rule change will result in 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 Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action FINRA has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 9 and Rule 19b–4(f)(6) thereunder.10 Because the 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 prior to 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, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 11 and Rule 19b–4(f)(6)(iii) thereunder.12 A proposed rule change filed under Rule 19b–4(f)(6) 13 normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b–4(f)(6)(iii),14 the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. FINRA has indicated that its members have been delayed in their efforts to finalize standard order mstockstill on DSK4VPTVN1PROD with 9 15 U.S.C. 78s(b)(3)(A)(iii). 10 17 CFR 240.19b–4(f)(6). 11 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(6)(iii). FINRA has requested that the Commission waive the requirement that FINRA provide the Commission written notice of its 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 on which FINRA filed the proposed rule change pursuant to Rule 19b– 4(f)(6)(iii). The Commission hereby grants this request. 13 17 CFR 240.19b–4(f)(6). 14 17 CFR 240.19b–4(f)(6)(iii). VerDate Mar<15>2010 18:39 Jan 24, 2013 Jkt 229001 5523 nomenclature and order messaging standards, and have requested additional time to prepare for compliance with the new rule. The Commission notes that the proposed rule change does not present any new, unique, or substantive issues, but rather is merely delaying the implementation date of a proposed rule change the Commission previously approved, and that waiver of the 30-day operative delay will allow FINRA to announce the delayed implementation date to members immediately. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest and, therefore, designates the proposed rule change as operative upon filing.15 At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. only one method. The Commission will post all comments on the Commission’s Internet Web site (http://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 FINRA. 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–FINRA– 2013–004 and should be submitted on or before February 15, 2013. IV. Solicitation of Comments For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Kevin M. O’Neill, Deputy Secretary. 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–FINRA–2013–004 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–FINRA–2013–004. 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 15 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). PO 00000 Frm 00117 Fmt 4703 Sfmt 4703 [FR Doc. 2013–01486 Filed 1–24–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–68697; File No. SR–C2– 2013–001] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the BBO Data Feed for C2 Listed Options January 18, 2013. 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 January 11, 2013, 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 16 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 E:\FR\FM\25JAN1.SGM 25JAN1 5524 Federal Register / Vol. 78, No. 17 / Friday, January 25, 2013 / Notices 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 identify certain additional market data made available by Market Data Express, LLC (‘‘MDX’’), an affiliate of C2, as part of the BBO Data Feed for C2 listed options (‘‘C2 BBO Data Feed’’). The text of the proposed rule change is available on the Exchange’s Web site (http:// www.cboe.com/AboutCBOE/ CBOELegalRegulatoryHome.aspx), 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 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 mstockstill on DSK4VPTVN1PROD with The purpose of the proposed rule change is to reflect MDX’s current practice of making certain additional market data available as part of the C2 BBO Data Feed.3 The C2 BBO Data Feed is a real-time, low latency data feed that includes C2 ‘‘BBO data’’ and last sale data.4 The BBO and last sale data contained in the C2 BBO Data Feed is identical to the data that C2 sends to the Options Price 3 The C2 BBO Data Feed and the fees charged by MDX for the C2 BBO Data Feed were established in March 2011. See Securities Exchange Act Release No. 63996 (March 1, 2011), 76 FR 12386 (March 7, 2011). 4 The BBO Data Feed includes the ‘‘best bid and offer,’’ or ‘‘BBO’’, consisting of all outstanding quotes and standing orders at the best available price level on each side of the market, with aggregate size (‘‘BBO data,’’ sometimes referred to as ‘‘top of book data’’). Data with respect to executed trades is referred to as ‘‘last sale’’ data. VerDate Mar<15>2010 18:39 Jan 24, 2013 Jkt 229001 Reporting Authority (‘‘OPRA’’) for redistribution to the public.5 The C2 BBO Data Feed also includes certain data that is not included in the data sent to OPRA, namely, totals of customer versus non-customer contracts at the BBO, All-or-None contingency orders priced better than or equal to the BBO, and BBO data and last sale data for complex strategies (e.g., spreads, straddles, buy-writes, etc.). MDX charges Customers a ‘‘direct connect fee’’ of $1,000 per connection per month and a ‘‘per user fee’’ of $25 per month per ‘‘Authorized User’’ or ‘‘Device’’ for receipt of the C2 BBO Data Feed by Subscribers.6 Either a C2 Permit Holder or a non-C2 Permit Holder may be a Customer. All Customers are assessed the same fees. MDX currently makes available an additional set of data as part of the C2 BBO Data Feed at no additional charge to Customers. Specifically, the C2 BBO Data Feed also includes expected opening price (‘‘EOP’’) and expected opening size (‘‘EOS’’) information that is disseminated prior to the opening of the market and during trading rotations (collectively, ‘‘EOP/EOS data’’). EOP/ EOS data is calculated by the C2 System based on resting orders in the Book that remain from the prior business day and any orders and quotes submitted before the opening.7 The EOP is the price at which the greatest number of orders and quotes in the Book are expected to trade.8 EOP/EOS data is not offered separate from the C2 BBO Data Feed. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the 5 The Exchange notes that MDX makes available to ‘‘Customers’’ the BBO data and last sale data that is included in the C2 BBO Data Feed no earlier than the time at which the Exchange sends that data to OPRA. A ‘‘Customer’’ is any entity that receives the C2 BBO Data Feed directly from MDX’s system and then distributes it either internally or externally to Subscribers. A ‘‘Subscriber’’ is a person (other than an employee of a Customer) that receives the C2 BBO Data Feed from a Customer for its own internal use. 6 An ‘‘Authorized User’’ is defined as an individual user (an individual human being) who is uniquely identified (by user ID and confidential password or other unambiguous method reasonably acceptable to MDX) and authorized by a Customer to access the C2 BBO Data Feed supplied by the Customer. A ‘‘Device’’ is defined as any computer, workstation or other item of equipment, fixed or portable, that receives, accesses and/or displays data in visual, audible or other form. 7 See C2 Rule 6.11(a)(2). The Exchange has filed a separate proposed rule change to amend C2 Rule 6.11(a)(2) to provide that such pre-opening information will be disseminated to users that have elected to receive such information and to remove the existing reference to such pre-opening information being disseminated to Participants. The term ‘‘Participant’’ means a Permit Holder as defined in C2 Rule 1.1. See SR–C2–2013–002. 8 Id. PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 provisions of Section 6 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 9 in general and with Section 6(b)(5) of the Act 10 in particular in that it is designed to prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in 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, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. In adopting Regulation NMS, the Commission granted self-regulatory organizations and broker-dealers increased authority and flexibility to offer new and unique market data to the public. It was believed that this authority would expand the amount of data available to consumers, and also spur innovation and competition for the provision of market data. The Exchange believes that the proposed rule change is in keeping with those principles by promoting increased transparency through the dissemination of more useful proprietary data and also by clarifying its availability to market participants. Additionally, the Exchange believes the proposed rule change would not permit unfair discrimination because the C2 BBO Data Feed, including EOP/ EOS data, is made equally available by MDX to any market participant that wishes to subscribe to it. The Exchange notes that other exchanges make information relating to the market opening available to members and nonmembers.11 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. The Exchange believes the C2 BBO Data Feed, including EOP/EOS data, offered 9 15 U.S.C. 78f(b). U.S.C. 78f(b)(4) and (5). [sic] 11 See e.g., Securities Exchange Act Release No. 66967 (May 11, 2012), 77 FR 29440 (May 17, 2012) (SR–PHLX–2012–60); and Securities Exchange Act Release No. 67720 (August 23, 2012), 77 FR 52769 (August 30, 2012) (SR–NYSEARCA–2012–89). In addition, the Nasdaq Options Market (‘‘NOM’’) disseminates certain pre-opening order imbalance information every five seconds for a period of time prior to the open and this information is made available via subscription. See NOM Chapter VI, Section 8(b)(1) and Chapter XV, Section 4(e); see also http://www.nasdaqtrader.com/ trader.aspx?id=openclose. 10 15 E:\FR\FM\25JAN1.SGM 25JAN1 Federal Register / Vol. 78, No. 17 / Friday, January 25, 2013 / Notices by MDX will help attract new users and new order flow to the Exchange, thereby improving the Exchange’s ability to compete in the market for options order flow and executions. 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 Because the foregoing proposed rule change does not: A. Significantly affect the protection of investors or the public interest; B. Impose any significant burden on competition; and C. 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) 12 of the Act and Rule 19b–4(f)(6) 13 thereunder. At any time within 60 days of the filing of this 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–C2–2013–001 on the subject line. mstockstill on DSK4VPTVN1PROD with 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–C2–2013–001. 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 (http://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– 2013–001, and should be submitted on or before February 15, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–01491 Filed 1–24–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–68693; File No. SR–ISE– 2013–04] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange’s Obvious and Catastrophic Error Rule January 18, 2013. 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 January 8, 2013, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) filed with the Securities and 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 12 15 U.S.C. 78s(b)(3)(A). 13 17 CFR 240.19b–4(f)(6). VerDate Mar<15>2010 18:39 Jan 24, 2013 Exchange Commission (‘‘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 Exchange proposes to amend ISE Rule 720, Obvious and Catastrophic Errors, to address obvious and catastrophic errors involving complex orders. The text of the proposed rule change is available on the Exchange’s Web site www.ise.com, at the principal office of 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 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 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 ISE Rule 720 regarding Obvious and Catastrophic Errors to mitigate the risk to parties using complex orders, where part or all of a complex order traded at an erroneous price. Specifically, this proposed rule change addresses situations where one component (or leg) of a complex order is deemed an obvious (or catastrophic) error but the other component(s) is (are) not. Complex orders are orders involving the simultaneous purchase and/or sale of two or more different options series in the same underlying security, for the same account, in a ratio that is equal to or greater than one-to-three (.333) and less than or equal to three-to-one (3.00) and for the purpose of executing a particular investment strategy.3 With this proposed rule change, the Exchange is proposing to amend Rule 720 to 1 15 Jkt 229001 PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 5525 3 See E:\FR\FM\25JAN1.SGM ISE Rule 722(a)(1). 25JAN1

Agencies

[Federal Register Volume 78, Number 17 (Friday, January 25, 2013)]
[Notices]
[Pages 5523-5525]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-01491]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68697; File No. SR-C2-2013-001]


Self-Regulatory Organizations; C2 Options Exchange, Incorporated; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the BBO Data Feed for C2 Listed Options

January 18, 2013.
    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 January 11, 2013, 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

[[Page 5524]]

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 identify certain additional market data 
made available by Market Data Express, LLC (``MDX''), an affiliate of 
C2, as part of the BBO Data Feed for C2 listed options (``C2 BBO Data 
Feed''). The text of the proposed rule change is available on the 
Exchange's Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), 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 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 the proposed rule change is to reflect MDX's current 
practice of making certain additional market data available as part of 
the C2 BBO Data Feed.\3\
---------------------------------------------------------------------------

    \3\ The C2 BBO Data Feed and the fees charged by MDX for the C2 
BBO Data Feed were established in March 2011. See Securities 
Exchange Act Release No. 63996 (March 1, 2011), 76 FR 12386 (March 
7, 2011).
---------------------------------------------------------------------------

    The C2 BBO Data Feed is a real-time, low latency data feed that 
includes C2 ``BBO data'' and last sale data.\4\ The BBO and last sale 
data contained in the C2 BBO Data Feed is identical to the data that C2 
sends to the Options Price Reporting Authority (``OPRA'') for 
redistribution to the public.\5\
---------------------------------------------------------------------------

    \4\ The BBO Data Feed includes the ``best bid and offer,'' or 
``BBO'', consisting of all outstanding quotes and standing orders at 
the best available price level on each side of the market, with 
aggregate size (``BBO data,'' sometimes referred to as ``top of book 
data''). Data with respect to executed trades is referred to as 
``last sale'' data.
    \5\ The Exchange notes that MDX makes available to ``Customers'' 
the BBO data and last sale data that is included in the C2 BBO Data 
Feed no earlier than the time at which the Exchange sends that data 
to OPRA. A ``Customer'' is any entity that receives the C2 BBO Data 
Feed directly from MDX's system and then distributes it either 
internally or externally to Subscribers. A ``Subscriber'' is a 
person (other than an employee of a Customer) that receives the C2 
BBO Data Feed from a Customer for its own internal use.
---------------------------------------------------------------------------

    The C2 BBO Data Feed also includes certain data that is not 
included in the data sent to OPRA, namely, totals of customer versus 
non-customer contracts at the BBO, All-or-None contingency orders 
priced better than or equal to the BBO, and BBO data and last sale data 
for complex strategies (e.g., spreads, straddles, buy-writes, etc.). 
MDX charges Customers a ``direct connect fee'' of $1,000 per connection 
per month and a ``per user fee'' of $25 per month per ``Authorized 
User'' or ``Device'' for receipt of the C2 BBO Data Feed by 
Subscribers.\6\ Either a C2 Permit Holder or a non-C2 Permit Holder may 
be a Customer. All Customers are assessed the same fees.
---------------------------------------------------------------------------

    \6\ An ``Authorized User'' is defined as an individual user (an 
individual human being) who is uniquely identified (by user ID and 
confidential password or other unambiguous method reasonably 
acceptable to MDX) and authorized by a Customer to access the C2 BBO 
Data Feed supplied by the Customer. A ``Device'' is defined as any 
computer, workstation or other item of equipment, fixed or portable, 
that receives, accesses and/or displays data in visual, audible or 
other form.
---------------------------------------------------------------------------

    MDX currently makes available an additional set of data as part of 
the C2 BBO Data Feed at no additional charge to Customers. 
Specifically, the C2 BBO Data Feed also includes expected opening price 
(``EOP'') and expected opening size (``EOS'') information that is 
disseminated prior to the opening of the market and during trading 
rotations (collectively, ``EOP/EOS data''). EOP/EOS data is calculated 
by the C2 System based on resting orders in the Book that remain from 
the prior business day and any orders and quotes submitted before the 
opening.\7\ The EOP is the price at which the greatest number of orders 
and quotes in the Book are expected to trade.\8\ EOP/EOS data is not 
offered separate from the C2 BBO Data Feed.
---------------------------------------------------------------------------

    \7\ See C2 Rule 6.11(a)(2). The Exchange has filed a separate 
proposed rule change to amend C2 Rule 6.11(a)(2) to provide that 
such pre-opening information will be disseminated to users that have 
elected to receive such information and to remove the existing 
reference to such pre-opening information being disseminated to 
Participants. The term ``Participant'' means a Permit Holder as 
defined in C2 Rule 1.1. See SR-C2-2013-002.
    \8\ Id.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the provisions of Section 6 of the Securities Exchange Act of 1934 (the 
``Act'') \9\ in general and with Section 6(b)(5) of the Act \10\ in 
particular in that it is designed to prevent fraudulent and 
manipulative acts and practices, promote just and equitable principles 
of trade, to foster cooperation and coordination with persons engaged 
in 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, and is not designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4) and (5). [sic]
---------------------------------------------------------------------------

    In adopting Regulation NMS, the Commission granted self-regulatory 
organizations and broker-dealers increased authority and flexibility to 
offer new and unique market data to the public. It was believed that 
this authority would expand the amount of data available to consumers, 
and also spur innovation and competition for the provision of market 
data. The Exchange believes that the proposed rule change is in keeping 
with those principles by promoting increased transparency through the 
dissemination of more useful proprietary data and also by clarifying 
its availability to market participants.
    Additionally, the Exchange believes the proposed rule change would 
not permit unfair discrimination because the C2 BBO Data Feed, 
including EOP/EOS data, is made equally available by MDX to any market 
participant that wishes to subscribe to it. The Exchange notes that 
other exchanges make information relating to the market opening 
available to members and non-members.\11\
---------------------------------------------------------------------------

    \11\ See e.g., Securities Exchange Act Release No. 66967 (May 
11, 2012), 77 FR 29440 (May 17, 2012) (SR-PHLX-2012-60); and 
Securities Exchange Act Release No. 67720 (August 23, 2012), 77 FR 
52769 (August 30, 2012) (SR-NYSEARCA-2012-89). In addition, the 
Nasdaq Options Market (``NOM'') disseminates certain pre-opening 
order imbalance information every five seconds for a period of time 
prior to the open and this information is made available via 
subscription. See NOM Chapter VI, Section 8(b)(1) and Chapter XV, 
Section 4(e); see also http://www.nasdaqtrader.com/trader.aspx?id=openclose.
---------------------------------------------------------------------------

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. The Exchange believes the C2 
BBO Data Feed, including EOP/EOS data, offered

[[Page 5525]]

by MDX will help attract new users and new order flow to the Exchange, 
thereby improving the Exchange's ability to compete in the market for 
options order flow and executions.

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

    Because the foregoing proposed rule change does not:
    A. Significantly affect the protection of investors or the public 
interest;
    B. Impose any significant burden on competition; and
    C. 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) \12\ of the Act and 
Rule 19b-4(f)(6) \13\ thereunder.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of this 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-C2-2013-001 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-C2-2013-001. 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 (http://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-C2-2013-001, 
and should be submitted on or before February 15, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-01491 Filed 1-24-13; 8:45 am]
BILLING CODE 8011-01-P