Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amending the Fees Schedule, 7837-7840 [2013-02297]
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7837
Federal Register / Vol. 78, No. 23 / Monday, February 4, 2013 / Notices
trading symbol to distinguish Jumbo
SPY options from the related regular
option contracts and therefore, ease any
investor confusion as to the product
they are trading.
The Exchange also believes Jumbo
SPY options will provide investors with
an additional tool for hedging risk in the
highly liquid ETF. Further, the
proposed rule change is limited to just
the SPY ETF, a single, high-priced,
highly liquid security.
Finally, the Exchange notes that the
Commission previously approved
option contracts on ETFs that overly
[sic] 1,000 shares for NYSE Amex.8
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange believes this proposed
rule change will benefit investors by
providing additional methods to trade
options on the liquid SPY, and
providing greater ability to mitigate risk
in managing large portfolios.
Specifically, the Exchange believes that
investors would benefit from the
introduction and availability of Jumbo
SPY options by making options on large
blocks of the SPY ETF more available as
an investing tool, particularly for
institutional investors. The Exchange
also believes Jumbo SPY options will
provide investors with an additional
tool for hedging risk in the highly liquid
ETF. Further, the proposed rule change
is limited to just the SPY ETF, a single,
high-priced, highly liquid security.
Finally, the Exchange is not proposing
any limitations regarding market
participants that will be able to trade
Jumbo SPY options if they choose.
For all the reasons stated, the
Exchange 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, and believes the
proposed change will enhance
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
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The Exchange has neither solicited
nor received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
8 See Exchange Act Release No. 40157 (July 1,
1998), 63 FR 37426 (July 10, 1998) (Order
Approving SR-Amex-96–44).
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as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
such proposed rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–BOX–2013–06 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–BOX–2013–06. 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 the
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
PO 00000
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identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–BOX–
2013–06 and should be submitted on or
before February 25, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–02301 Filed 2–1–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68751; File No. SR–C2–
2013–005]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to Amending the Fees
Schedule
January 29, 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
18, 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 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 its
Fees Schedule. The text of the proposed
rule change is provided below.
(additions are italicized; deletions are
[bracketed])
*
*
*
*
*
C2 OPTIONS EXCHANGE,
INCORPORATED
FEES SCHEDULE
JANUARY 18[1], 2013
*
*
*
9 17
*
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 78, No. 23 / Monday, February 4, 2013 / Notices
3. Access Fees
Type of permit
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Market-Maker Permit
Electronic Access
Permit.
SPXPM Tier Appointment.
Cost per month
$5,000.
$1,000.
$4,000 (waived
through March 31,
2013).
Market-Maker Permit- Entitles the
holder to act as a Market-Maker. This
permit provides an appointment credit
of 1.0, a quoting and order entry
bandwidth allowance, up to three logins
and Trading Permit Holder status. The
quoting bandwidth allowance for a
Market-Maker Permit is equivalent to a
maximum of 156,000,000 quotes over
the course of a trading day.
Electronic Access Permit- Entitles the
holder to access to the Exchange.
Holders must be broker-dealers
registered with the Exchange and are
allowed to submit orders to the
Exchange. The EAP provides an order
entry bandwidth allowance, up to three
logins and Trading Permit Holder status.
SPXPM Tier Appointment- In order
for a Market-Maker Permit to be used to
act as a Market-Maker in SPXPM, the
Trading Permit Holder must obtain an
SPXPM Tier Appointment (Registration)
for that Market-Maker Permit. The
SPXPM Tier Appointment fee will be
assessed to any Market-Maker Permit
Holder that has an SPXPM Tier
Appointment at any time during a
calendar month.
Access fees are non-refundable and
are assessed through the integrated
billing system during the first week of
the following month. If a Trading Permit
is issued during a calendar month after
the first trading day of the month, the
access fee for the Trading Permit for that
calendar month is prorated based on the
remaining trading days in the calendar
month. Trading Permits will be renewed
automatically for the next month unless
the Trading Permit Holder submits
written notification to the Registration
Services Department by the 25th day of
the prior month (or the preceding
business day if the 25th is not a
business day) to cancel the Trading
Permit effective at or prior to the end of
the applicable month. If cancellation of
a Trading Permit is effective prior to the
end of the applicable month, and the
cancelling Trading Permit Holder later
requests issuance of the same type of
Trading Permit for the remainder of that
month, the Exchange may issue the
same type of Trading Permit (provided
that a Trading Permit is available) but
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will not impose the additional prorated
access fee for that month.
*
*
*
*
*
The text of the proposed rule change
is also available on the Exchange’s Web
site (https://www.c2exchange.com/
Legal/), at the Exchange’s Office of the
Secretary, and at the Commission.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
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 amend its
Fees Schedule.3 More specifically, the
Exchange is proposing to make changes
to the section ‘‘Access Fees.’’ Pursuant
to that section, the Exchange charges a
Trading Permit Holder a monthly fee to
use a Trading Permit, the amount of
which fee is based on the type of
Trading Permit.
Currently, the Exchange charges the
following access fees:
Type of permit
Market-Maker Permit 4.
Electronic Access
Permit 5.
SPXPM Tier Appointment 6.
Cost per month
$5,000.
1,000.
4,000 (waived
through March 31,
2013).
Pursuant to the Fees Schedule, the
Exchange assesses the access fees in
3 See Exchange Rule 2.1, which authorizes fees to
Participants to be ‘‘fixed from time to time by the
Exchange.’’
4 A Market-Maker Permit entitles the holder to act
as a Market-Maker. This permit provides an
appointment credit of 1.0, a quoting and order entry
bandwidth allowance, up to three logins and
Trading Permit Holder status. The quoting
bandwidth allowance for a Market-Maker Permit is
equivalent to a maximum of 156,000,000 quotes
over the course of a trading day.
5 An Electronic Access Permit entitles the holder
to access the Exchange. Holders must be brokerdealers registered with the Exchange and are
allowed to submit orders to the Exchange. The
permit provides an order entry bandwidth
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arrears during the first week of the
following month. For example, a
Trading Permit Holder will be billed in
February for use of a Trading Permit in
January. The Fees Schedule further
provides that if a Trading Permit is
issued during a calendar month after the
first trading day of the month, the access
fee for the Trading Permit for that
calendar month is prorated based on the
remaining trading days in the calendar
month. A Trading Permit will be
renewed automatically for the next
month unless the Trading Permit Holder
submits written notification to the
Registration Services Department by the
25th day of the prior month (or the
preceding business day if the 25th is not
a business day) to cancel the Trading
Permit effective at or prior to the end of
the applicable month.
Under the Fees Schedule, if a Trading
Permit Holder cancels a Trading Permit
effective prior to the end of the
applicable month, the Trading Permit
Holder will still be assessed the full
access fee for that month (the same
amount it would pay if the Trading
Permit Holder had cancelled the
Trading Permit effective at the end of
the month). However, if the Trading
Permit Holder later requests that the
Exchange issue the same type of Trading
Permit for the remainder of that same
month, pursuant to the Fees Schedule,
the Exchange will assess a prorated
access fee based on the remaining
trading days in that month. Thus, the
Trading Permit Holder would be
double-paying the access fee for that
remaining portion of the month.
The purpose of the proposed rule
change is to prevent a Trading Permit
Holder from double-paying a portion of
the monthly access fee in this situation.
The proposed rule change amends the
Access Fees section of the Fees
Schedule to provide that if cancellation
of a Trading Permit is effective prior to
the end of the applicable month, and the
cancelling Trading Permit Holder later
requests issuance of the same type of
Trading Permit for the remainder of that
same month, the Exchange may issue
the same type of Trading Permit
(assuming one is available) 7 but will not
allowance, up to three logins and Trading Permit
Holder status.
6 An SPXPM Tier Appointment must be obtained
by a Market-Maker for its Market-Maker Permit in
order for the Market-Maker to act as a Market-Maker
in SPXPM. The SPXPM Tier Appointment fee will
be assessed to any Market-Maker that has an
SPXPM Tier Appointment at any time during a
calendar month.
7 The Exchange will determine whether to issue
a Trading Permit to the Trading Permit Holder in
the same manner that it issues any Trading Permit
pursuant to Rule 3.1, including subject to any
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Federal Register / Vol. 78, No. 23 / Monday, February 4, 2013 / Notices
impose the additional prorated access
fee for the remainder of that month.8
The proposed rule change results in a
Trading Permit Holder that cancels a
Trading Permit prior to the end of the
month but then has the same type of
Trading Permit issued during that same
month paying the same monthly access
fee amount as it would if it had
cancelled its Trading Permit effective at
the end of a month.
For example, if a Trading Permit
Holder cancels a Market-Maker Permit
effective January 18, 2013, but upon
request of the Trading Permit Holder
issues [sic] a Maker-Maker [sic] Permit
effective January 23, 2013, the Trading
Permit Holder will be billed a total of
$5,000 for use of the Market-Maker
Permit during January (which will be
billed during the first week of
February).9 Without the proposed rule
change, the Trading Permit Holder
would be billed $5,000 for use of the
Market-Maker Permit for the trading
days in January through January 18 plus
a prorated amount of $1,666.67 for use
of the Market-Maker Permit for the
trading days in January between January
23 and January 31. Thus, with the
proposed rule change, the Trading
Permit Holder will pay the same amount
in access fees for January as it would if
it had cancelled the Market-Maker
Permit effective at the end of January.
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2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act.10 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 11 requirements that the rules of
an exchange be designed to prevent
fraudulent and manipulative acts and
practices, to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitation [sic] transactions in
securities, to remove impediments to
and perfect the mechanism of a free and
open market and a national market
announced limit on the number of Trading Permits
that may be issued.
8 The proposed rule change does not change the
amounts of the access fees imposed on Trading
Permit Holders for the use of Trading Permits.
9 At that point, the Trading Permit will be subject
to the auto-renewal provision described above
unless the Trading Permit Holder requests that the
Trading Permit not be automatically renewed at the
end of the applicable month.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
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7839
system, and, in general, to protect
investors and the public interest.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 12 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange also believes the
proposed rule change is consistent with
Section 6(b)(4) of the Act,13 which
provides that Exchange rules may
provide for the equitable allocation of
reasonable dues, fees, and other charges
among its Trading Permit Holders and
other persons using its facilities.
In particular, the proposed rule
change is equitable and not unfairly
discriminatory as it applies to all
Trading Permit Holders that cancel a
Trading Permit effective prior to the end
of a month and request issuance of the
same type of Trading Permit during that
same month. The Exchange believes the
proposed rule change protects investors
and the public interest, as it prevents a
Trading Permit Holder from paying the
monthly access fee twice during the
same month for a Trading Permit in the
event that the Trading Permit Holder
cancels the Trading Permit effective
prior to the end of the month but later
requests issuance of the same type of
Trading Permit during that month. The
Exchange believes that the proposed
rule change is fair and reasonable,
because it results in a Trading Permit
Holder that cancels a Trading Permit
prior to the end of the month but then
has the same type of Trading Permit
issued that month paying the same
amount in access fees for that month as
a Trading Permit Holder that cancels a
Trading Permit effective at the end of a
month. A Trading Permit Holder is able
to trade the same amount in either
situation; therefore, the Exchange
believes it is reasonable that the Trading
Permit Holder pay the same amount in
either situation.
of the month but then has the same type
of Trading Permit issued that same
month paying the same amount in
access fees as a Trading Permit Holder
that cancels a Trading Permit effective
at the end of a month. Thus, these
Trading Permit Holders would pay the
same access fee during the month for
the same allowable trading activity in
each situation. The proposed rule
change does not change the amounts of
the access fees imposed on Trading
Permit Holders for the use of Trading
Permits.
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. The proposed rule
change applies in the same manner to
all Trading Permit Holders that request
the issuance of a Trading Permit during
the same month they cancelled the same
type of Trading Permit. Additionally,
the proposed rule change results in a
Trading Permit Holder that cancels a
Trading Permit effective prior to the end
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–C2–2013–005 on the
subject line.
12 Id.
13 15
PO 00000
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)
of the Act 14 and paragraph (f) 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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
14 15
U.S.C. 78f(b)(4).
Frm 00102
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15 17
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E:\FR\FM\04FEN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
04FEN1
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Federal Register / Vol. 78, No. 23 / Monday, February 4, 2013 / Notices
All submissions should refer to File
Number SR–C2–2013–005. 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. 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–C2–2013–005, and should
be submitted on or before February 25,
2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–02297 Filed 2–1–13; 8:45 am]
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BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68745; File No. SR–NYSE–
2013–05]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Amending
NYSE Rule 80C, Which Provides For
Trading Pauses in Individual Securities
Due to Extraordinary Market Volatility,
Extending the Effective Date of the
Pilot Until the Earlier of the Initial Date
of Operations of the Regulation NMS
Plan To Address Extraordinary Market
Volatility or February 4, 2014
January 28, 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
15, 2013, New York Stock Exchange
LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and 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 proposes to
amend NYSE Rule 80C, which provides
for trading pauses in individual
securities due to extraordinary market
volatility, to extend the effective date of
the pilot by which such rule operates
from the current scheduled expiration
date of February 4, 2013, until the
earlier of the initial date of operations
of the Regulation NMS Plan to Address
Extraordinary Market Volatility or
February 4, 2014. The text of the
proposed rule change is available on the
Exchange’s Web site at www.nyse.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
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
1 15
16 17
CFR 200.30–3(a)(12).
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19:26 Feb 01, 2013
2 17
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PO 00000
U.S.C.78s(b)(1).
CFR 240.19b–4.
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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
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
NYSE Rule 80C, which provides for
trading pauses in individual securities
due to extraordinary market volatility,
to extend the effective date of the pilot
by which such rule operates from the
current scheduled expiration date of
February 4, 2013,3 until the earlier of
the initial date of operations of the
Regulation NMS Plan to Address
Extraordinary Market Volatility or
February 4, 2014. The pilot will
continue to operate as to individual
securities until such security is subject
to the Regulation NMS Plan to Address
Extraordinary Market Volatility.
NYSE Rule 80C requires the Exchange
to pause trading in an individual
security listed on the Exchange if the
price moves by a specified percentage as
compared to prices of that security in
the preceding five-minute period during
a trading day, which period is defined
as a ‘‘Trading Pause.’’ The pilot was
developed and implemented as a
market-wide initiative by the Exchange
and other national securities exchanges
in consultation with the Commission
staff and is currently applicable to all
NMS stocks and specified exchangetraded products.4
3 See Securities Exchange Act Release No. 67556
(August 1, 2012), 77 FR 47156 (August 7, 2012)
(SR–NYSE–2012–31).
4 The Exchange notes that the other national
securities exchanges and the Financial Industry
Regulatory Authority have adopted the pilot in
substantially similar form. See Securities Exchange
Act Release No. 62252 (June 10, 2010), 75 FR 34186
(June 16, 2010) (File Nos. SR–BATS–2010–014; SR–
EDGA–2010–01; SR–EDGX–2010–01; SR–BX–2010–
037; SR–ISE–2010–48; SR–NYSE–2010–39; SR–
NYSEAmex–2010–46; SR–NYSEArca–2010–41; SR–
NASDAQ–2010–061; SR–CHX–2010–10; SR–NSX–
2010–05; and SR–CBOE–2010–047) and Securities
Exchange Act Release No. 62251 (June 10, 2010), 75
FR 34183 (June 16, 2010) (SR–FINRA–2010–025).
See also Securities Exchange Act Release No. 62884
(September 10, 2010), 75 FR 56618 (September 16,
2010) (File Nos. SR–BATS–2010–018; SR–BX–
2010–044; SR–CBOE–2010–065; SR–CHX–2010–14;
SR–EDGA–2010–05; SR–EDGX–2010–05; SR–ISE–
2010–66; SR–NASDAQ–2010–079; SR–NYSE–
2010–49; SR–NYSEAmex–2010–63; SR–NYSEArca–
2010–61; and SR–NSX–2010–08 and Securities
Exchange Act Release No. 62883 (September 10,
2010), 75 FR 56608 (September 16, 2010) (SR–
FINRA–2010–033). See also Securities Exchange
Act Release No. 63500 (December 9, 2010), 75 FR
78309 (December 15, 2010) (SR–NYSE–2010–81). A
proposal to, among other things, expand the pilot
to include all NMS stocks not already included
E:\FR\FM\04FEN1.SGM
04FEN1
]]>Agencies
[Federal Register Volume 78, Number 23 (Monday, February 4, 2013)]
[Notices]
[Pages 7837-7840]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02297]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68751; File No. SR-C2-2013-005]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Amending the Fees Schedule
January 29, 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 18, 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 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Fees Schedule. The text of the
proposed rule change is provided below.
(additions are italicized; deletions are [bracketed])
* * * * *
C2 OPTIONS EXCHANGE, INCORPORATED
FEES SCHEDULE
JANUARY 18[1], 2013
* * * * *
[[Page 7838]]
3. Access Fees
------------------------------------------------------------------------
Type of permit Cost per month
------------------------------------------------------------------------
Market-Maker Permit....................... $5,000.
Electronic Access Permit.................. $1,000.
SPXPM Tier Appointment.................... $4,000 (waived through March
31, 2013).
------------------------------------------------------------------------
Market-Maker Permit- Entitles the holder to act as a Market-Maker.
This permit provides an appointment credit of 1.0, a quoting and order
entry bandwidth allowance, up to three logins and Trading Permit Holder
status. The quoting bandwidth allowance for a Market-Maker Permit is
equivalent to a maximum of 156,000,000 quotes over the course of a
trading day.
Electronic Access Permit- Entitles the holder to access to the
Exchange. Holders must be broker-dealers registered with the Exchange
and are allowed to submit orders to the Exchange. The EAP provides an
order entry bandwidth allowance, up to three logins and Trading Permit
Holder status.
SPXPM Tier Appointment- In order for a Market-Maker Permit to be
used to act as a Market-Maker in SPXPM, the Trading Permit Holder must
obtain an SPXPM Tier Appointment (Registration) for that Market-Maker
Permit. The SPXPM Tier Appointment fee will be assessed to any Market-
Maker Permit Holder that has an SPXPM Tier Appointment at any time
during a calendar month.
Access fees are non-refundable and are assessed through the
integrated billing system during the first week of the following month.
If a Trading Permit is issued during a calendar month after the first
trading day of the month, the access fee for the Trading Permit for
that calendar month is prorated based on the remaining trading days in
the calendar month. Trading Permits will be renewed automatically for
the next month unless the Trading Permit Holder submits written
notification to the Registration Services Department by the 25th day of
the prior month (or the preceding business day if the 25th is not a
business day) to cancel the Trading Permit effective at or prior to the
end of the applicable month. If cancellation of a Trading Permit is
effective prior to the end of the applicable month, and the cancelling
Trading Permit Holder later requests issuance of the same type of
Trading Permit for the remainder of that month, the Exchange may issue
the same type of Trading Permit (provided that a Trading Permit is
available) but will not impose the additional prorated access fee for
that month.
* * * * *
The text of the proposed rule change is also available on the
Exchange's Web site (https://www.c2exchange.com/ Legal/), at the
Exchange's Office of the Secretary, and at the Commission.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the 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 amend its Fees Schedule.\3\ More
specifically, the Exchange is proposing to make changes to the section
``Access Fees.'' Pursuant to that section, the Exchange charges a
Trading Permit Holder a monthly fee to use a Trading Permit, the amount
of which fee is based on the type of Trading Permit.
---------------------------------------------------------------------------
\3\ See Exchange Rule 2.1, which authorizes fees to Participants
to be ``fixed from time to time by the Exchange.''
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Currently, the Exchange charges the following access fees:
------------------------------------------------------------------------
Type of permit Cost per month
------------------------------------------------------------------------
Market-Maker Permit \4\................... $5,000.
Electronic Access Permit \5\.............. 1,000.
SPXPM Tier Appointment \6\................ 4,000 (waived through March
31, 2013).
------------------------------------------------------------------------
Pursuant to the Fees Schedule, the Exchange assesses the access
fees in arrears during the first week of the following month. For
example, a Trading Permit Holder will be billed in February for use of
a Trading Permit in January. The Fees Schedule further provides that if
a Trading Permit is issued during a calendar month after the first
trading day of the month, the access fee for the Trading Permit for
that calendar month is prorated based on the remaining trading days in
the calendar month. A Trading Permit will be renewed automatically for
the next month unless the Trading Permit Holder submits written
notification to the Registration Services Department by the 25th day of
the prior month (or the preceding business day if the 25th is not a
business day) to cancel the Trading Permit effective at or prior to the
end of the applicable month.
---------------------------------------------------------------------------
\4\ A Market-Maker Permit entitles the holder to act as a
Market-Maker. This permit provides an appointment credit of 1.0, a
quoting and order entry bandwidth allowance, up to three logins and
Trading Permit Holder status. The quoting bandwidth allowance for a
Market-Maker Permit is equivalent to a maximum of 156,000,000 quotes
over the course of a trading day.
\5\ An Electronic Access Permit entitles the holder to access
the Exchange. Holders must be broker-dealers registered with the
Exchange and are allowed to submit orders to the Exchange. The
permit provides an order entry bandwidth allowance, up to three
logins and Trading Permit Holder status.
\6\ An SPXPM Tier Appointment must be obtained by a Market-Maker
for its Market-Maker Permit in order for the Market-Maker to act as
a Market-Maker in SPXPM. The SPXPM Tier Appointment fee will be
assessed to any Market-Maker that has an SPXPM Tier Appointment at
any time during a calendar month.
---------------------------------------------------------------------------
Under the Fees Schedule, if a Trading Permit Holder cancels a
Trading Permit effective prior to the end of the applicable month, the
Trading Permit Holder will still be assessed the full access fee for
that month (the same amount it would pay if the Trading Permit Holder
had cancelled the Trading Permit effective at the end of the month).
However, if the Trading Permit Holder later requests that the Exchange
issue the same type of Trading Permit for the remainder of that same
month, pursuant to the Fees Schedule, the Exchange will assess a
prorated access fee based on the remaining trading days in that month.
Thus, the Trading Permit Holder would be double-paying the access fee
for that remaining portion of the month.
The purpose of the proposed rule change is to prevent a Trading
Permit Holder from double-paying a portion of the monthly access fee in
this situation. The proposed rule change amends the Access Fees section
of the Fees Schedule to provide that if cancellation of a Trading
Permit is effective prior to the end of the applicable month, and the
cancelling Trading Permit Holder later requests issuance of the same
type of Trading Permit for the remainder of that same month, the
Exchange may issue the same type of Trading Permit (assuming one is
available) \7\ but will not
[[Page 7839]]
impose the additional prorated access fee for the remainder of that
month.\8\ The proposed rule change results in a Trading Permit Holder
that cancels a Trading Permit prior to the end of the month but then
has the same type of Trading Permit issued during that same month
paying the same monthly access fee amount as it would if it had
cancelled its Trading Permit effective at the end of a month.
---------------------------------------------------------------------------
\7\ The Exchange will determine whether to issue a Trading
Permit to the Trading Permit Holder in the same manner that it
issues any Trading Permit pursuant to Rule 3.1, including subject to
any announced limit on the number of Trading Permits that may be
issued.
\8\ The proposed rule change does not change the amounts of the
access fees imposed on Trading Permit Holders for the use of Trading
Permits.
---------------------------------------------------------------------------
For example, if a Trading Permit Holder cancels a Market-Maker
Permit effective January 18, 2013, but upon request of the Trading
Permit Holder issues [sic] a Maker-Maker [sic] Permit effective January
23, 2013, the Trading Permit Holder will be billed a total of $5,000
for use of the Market-Maker Permit during January (which will be billed
during the first week of February).\9\ Without the proposed rule
change, the Trading Permit Holder would be billed $5,000 for use of the
Market-Maker Permit for the trading days in January through January 18
plus a prorated amount of $1,666.67 for use of the Market-Maker Permit
for the trading days in January between January 23 and January 31.
Thus, with the proposed rule change, the Trading Permit Holder will pay
the same amount in access fees for January as it would if it had
cancelled the Market-Maker Permit effective at the end of January.
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\9\ At that point, the Trading Permit will be subject to the
auto-renewal provision described above unless the Trading Permit
Holder requests that the Trading Permit not be automatically renewed
at the end of the applicable month.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\10\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \11\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitation
[sic] transactions in securities, to remove impediments to and perfect
the mechanism of a free and open market and a national market system,
and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \12\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Exchange also believes the
proposed rule change is consistent with Section 6(b)(4) of the Act,\13\
which provides that Exchange rules may provide for the equitable
allocation of reasonable dues, fees, and other charges among its
Trading Permit Holders and other persons using its facilities.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ Id.
\13\ 15 U.S.C. 78f(b)(4).
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In particular, the proposed rule change is equitable and not
unfairly discriminatory as it applies to all Trading Permit Holders
that cancel a Trading Permit effective prior to the end of a month and
request issuance of the same type of Trading Permit during that same
month. The Exchange believes the proposed rule change protects
investors and the public interest, as it prevents a Trading Permit
Holder from paying the monthly access fee twice during the same month
for a Trading Permit in the event that the Trading Permit Holder
cancels the Trading Permit effective prior to the end of the month but
later requests issuance of the same type of Trading Permit during that
month. The Exchange believes that the proposed rule change is fair and
reasonable, because it results in a Trading Permit Holder that cancels
a Trading Permit prior to the end of the month but then has the same
type of Trading Permit issued that month paying the same amount in
access fees for that month as a Trading Permit Holder that cancels a
Trading Permit effective at the end of a month. A Trading Permit Holder
is able to trade the same amount in either situation; therefore, the
Exchange believes it is reasonable that the Trading Permit Holder pay
the same amount in either situation.
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. The proposed rule change
applies in the same manner to all Trading Permit Holders that request
the issuance of a Trading Permit during the same month they cancelled
the same type of Trading Permit. Additionally, the proposed rule change
results in a Trading Permit Holder that cancels a Trading Permit
effective prior to the end of the month but then has the same type of
Trading Permit issued that same month paying the same amount in access
fees as a Trading Permit Holder that cancels a Trading Permit effective
at the end of a month. Thus, these Trading Permit Holders would pay the
same access fee during the month for the same allowable trading
activity in each situation. The proposed rule change does not change
the amounts of the access fees imposed on Trading Permit Holders for
the use of Trading Permits.
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) of the Act \14\ and paragraph (f) 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f).
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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-C2-2013-005 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.
[[Page 7840]]
All submissions should refer to File Number SR-C2-2013-005. 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. 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-C2-2013-005, and should be
submitted on or before February 25, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-02297 Filed 2-1-13; 8:45 am]
BILLING CODE 8011-01-P
