Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule, 29420-29422 [2013-11899]

Download as PDF 29420 Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as modified by Amendment No. 1 thereto, 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–NYSEArca–2013–48 on the subject line. mstockstill on DSK4VPTVN1PROD with NOTICES • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSEArca–2013–48. 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 will also be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR–NYSEArca– 2013–48 and should be submitted on or before June 10, 2013. 19:09 May 17, 2013 [FR Doc. 2013–11897 Filed 5–17–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–69570; File No. SR–C2– 2013–020] Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Fees Schedule May 14, 2013. Paper Comments VerDate Mar<15>2010 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.34 Kevin M. O’Neill, Deputy Secretary. Jkt 229001 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 May 01, 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 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 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. CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 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 its Fees Schedule. First, the Exchange proposes to make changes to its fees for orders in all multiply-listed index and ETF options classes. Currently, the Exchange offers a rebate for Public Customer complex orders, including those that trade against simple (noncomplex) orders (excluding trades on the open, for which no fees are assessed or rebates given). However, the Exchange also offers a rebate for all Maker simple orders (excluding trades on the open, for which no fees are assessed or rebates given). Therefore, in circumstances when a Public Customer complex order trades against a simple Maker order, the Exchange pays a rebate to both market participants and takes in no fees. The Exchange has determined that this is not economically viable. Therefore, the Exchange proposes to add a note that applies to the listing of all Maker rebates in Section 1A of the Fees Schedule (which discusses fees for simple, non-complex orders in all multiply-listed index and ETF options classes) that states ‘‘Rebates do not apply to orders that trade with Public Customer complex orders. In such a circumstance, there will be no fee or rebate.’’ The Exchange also proposes to amend the note that already applies to the listing of all Public Customer rebates in Section 1D [sic] 3 of the Fees Schedule (which discusses fees for complex orders in all multiply-listed index and ETF options classes). This note currently states that the rebate for Public Customer complex orders does not apply to Public Customer orders that trade with other Public Customer orders. In such a circumstance, there will be no Maker or Taker fee or rebate. The Exchange proposes to amend this note to state that the rebate (for Public Customer complex orders) will only apply to Public Customer complex orders that trade with non-Public Customer complex orders. In other circumstances, there will be no Maker or Taker fee or rebate. This simple language achieves the goal of excepting out Public Customer complex orders that trade with simple orders from receiving the rebate (as well as excepting out Public Customer complex orders that trade with other Public Customer complex orders, which were already excepted out of receiving the 34 17 1 15 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 3 The Commission notes that the proposed change modifies section 1C of the Fees Schedule, not 1D. E:\FR\FM\20MYN1.SGM 20MYN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices rebate), and states that such orders will be assessed no fee or rebate. The Exchange also proposes to amend fees for simple, non-complex orders in equity options classes. The maximum fees for such orders are $0.85 ($0.085 mini-options) and the maximum rebates for such orders are $0.75 ($0.075 for mini-options).4 Feedback received from C2 market participants has made it clear to the Exchange that in the BAC, MBI, BBRY, DELL and JCP equity options classes (the ‘‘Unique Classes’’), the economics of a fee/rebate structure that has a maximum fee of $0.85 per contract and a maximum rebate of $0.75 per contract is disproportionate to pricing and does not encourage trading. As such, the Exchange proposes to amend its Fees Schedule to state that the maximum fee for the Unique Classes will be $0.55 per contract and the maximum rebate for the Unique Classes will be $0.45 per contract (mini-options are not traded on the Unique Classes). This maintains the $0.10 difference between the maximum fee and rebate (as currently exists). The Exchange also proposes to amend its Fees Schedule to make a number of technical changes. First, the Exchange proposes to remove all references in the Fees Schedule to SPXPM, a product which is no longer traded on C2. Therefore, Section 1E of the current Fees Schedule, which listed the rates for SPXPM executions, is no longer relevant, and therefore the Exchange proposes to delete it. Section 1F—Index License Surcharge Fees—can also be deleted, as the only Index License Surcharge Fee listed was that for SPXPM. References to the SPXPM Tier Appointment Fee in Section 3 will also be deleted. The Exchange also proposes to delete references to past dates from its Fees Schedule. Section 1B describes how fees for simple, non-complex orders in equity options classes will be calculated, effective February 1, 2013. Since that date has passed, the Exchange proposes to delete such reference. Similarly, Section 8E lists the Options Regulatory Fee (‘‘ORF’’) as being $.0015 per contract through December 31, 2012 and $.002 per contract effective January 2, 2013. As January 2, 2013 has passed, the Exchange proposes to delete the reference to the previous fee and merely state that the ORF will be $.002 per contract. Finally, the Exchange proposes to clearly state that the fees in Sections 1A and 1C that apply to multiply-listed index and ETF options classes also 4 All fee amounts referenced are per-contract. VerDate Mar<15>2010 19:09 May 17, 2013 Jkt 229001 apply to multiply-listed ETN options classes. This was not previously explicitly-stated on the Fees Schedule. 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.5 Specifically, the Exchange believes the proposed rule change is consistent with Section 6(b)(4) of the Act,6 which requires that Exchange rules provide for the equitable allocation of reasonable dues, fees, and other charges among its Trading Permit Holders and other persons using its facilities. The proposed changes to the rebates offered for multiply-listed index and ETF options are reasonable because, while in the circumstances discussed, market participants will no longer be receiving a rebate, they still will not be paying a fee for such transactions. Further, it is not economically viable for the Exchange to be paying out rebates in transactions in which the Exchange does not collect a fee (especially to be paying out rebates on both sides of such transactions). This change is equitable and not unfairly discriminatory because it will apply to all market participants who had previously been receiving rebates for such transactions, and they will all now simply not be assessed a fee (or provided a rebate) in those circumstances. The Exchange believes that the proposed change to the maximum fee and rebate amounts for the Unique Classes is reasonable because the maximum amounts of both fees and rebates will be lower than it currently is. Further, the maximum fee amount is reasonable because, among other things, the fee will not always be assessed for the maximum amount. The fee will only be for the maximum amount when the BBO Market Width is wide. Otherwise, the fee will be smaller. Indeed, the purpose of the fees structure is to encourage tighter quoting by linking lower fees to such tighter quoting. It is necessary to maintain a spread between the maximum fee and the maximum rebate because, in the event that the maximum fee and rebate both apply, the $0.10 per-contract difference will allow the Exchange to maintain a minimum level of profit potential. Rebate amounts are often generally lower than fee amounts on the Exchange, as well as on other exchanges,7 for this reason (among 5 15 U.S.C. 78f(b). U.S.C. 78f(b)(4). 7 See current C2 Fees Schedule, Section 1, and NOM Chapter XV (Options Pricing), Section 2. 6 15 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 29421 others). The Exchange believes that it is equitable and not unfairly discriminatory to offer different maximum fees and rebates for simple, non-complex orders in the Unique Classes than for other equity options classes because the economics of the Unique Classes are such that the proposed maximum fee and rebates for the Unique Classes are more relevant and will encourage greater trading in those classes. Further, the spread between the maximum fee and rebate for the Unique Classes and for other equity options classes will be the same ($0.10 per contract). Finally, the proposed maximum fee and rebate amounts for the Unique Classes apply to all market participants in the same manner that the current maximum fee and rebate amounts do. The Exchange believes that making changes to remove references to SPXPM and past dates, and to add the references to ETN options, is consistent with the Section 6(b)(5) 8 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 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. Removing obsolete and irrelevant references and sections from the Fees Schedule and improving the references to ETN options prevents possible investor confusion, thereby removing impediments to and perfecting the mechanism of 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. The Exchange does not believe that the proposed changes to the rebates offered for multiply-listed index and ETF options will impose any unnecessary or inappropriate burden on intramarket competition because the changes will apply to all market participants who had previously been receiving rebates for such transactions, and they will all now simply not be assessed a fee (or provided a rebate) in 8 15 U.S.C. 78f(b)(5). E:\FR\FM\20MYN1.SGM 20MYN1 29422 Federal Register / Vol. 78, No. 97 / Monday, May 20, 2013 / Notices those circumstances. The Exchange does not believe that the proposed changes to the maximum fee and rebate amounts for the Unique Classes will impose any unnecessary or inappropriate burden on intramarket competition because they will apply to all market participants in the same manner that the current maximum fee and rebate amounts do. The Exchange does not believe that the proposed changes will impose any unnecessary or inappropriate burden on intermarket competition because they apply only to trading on C2, and because these changes lower rebates that had previously been provided. To the extent that these changes make C2 a more attractive trading venue for market participants on other exchanges, such market participants may always elect to become market participants at C2. 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 9 and paragraph (f) of Rule 19b–4 10 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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved. mstockstill on DSK4VPTVN1PROD with NOTICES IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Number SR–C2–2013–020 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–69574; File No. SR–CBOE– 2013–047] • 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–C2–2013–020. 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– 2013–020, and should be submitted on or before June 10, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–11899 Filed 5–17–13; 8:45 am] U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f). 19:09 May 17, 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 May 1, 2013, Chicago Board Options Exchange, Incorporated (the ‘‘Exchange’’ or ‘‘CBOE’’) 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 ament [sic] its Fees Schedule. The text of the proposed rule change is available on the Exchange’s Web site (https:// www.cboe.com/AboutCBOE/ CBOELegalRegulatoryHome.aspx), 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. 1. Purpose The Exchange proposes to amend Footnote 24 of its Fees Schedule. 1 15 10 17 VerDate Mar<15>2010 May 14, 2013. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8011–01–P 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 9 15 Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend the Fees Schedule 11 17 Jkt 229001 PO 00000 CFR 200.30–3(a)(12). Frm 00105 Fmt 4703 Sfmt 4703 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. E:\FR\FM\20MYN1.SGM 20MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 78, Number 97 (Monday, May 20, 2013)]
[Notices]
[Pages 29420-29422]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-11899]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69570; File No. SR-C2-2013-020]

Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend the Fees Schedule

May 14, 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 May 01, 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 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.
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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 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
Statutory Basis for, the Proposed Rule Change

1. Purpose
The Exchange proposes to amend its Fees Schedule. First, the
Exchange proposes to make changes to its fees for orders in all
multiply-listed index and ETF options classes. Currently, the Exchange
offers a rebate for Public Customer complex orders, including those
that trade against simple (non-complex) orders (excluding trades on the
open, for which no fees are assessed or rebates given). However, the
Exchange also offers a rebate for all Maker simple orders (excluding
trades on the open, for which no fees are assessed or rebates given).
Therefore, in circumstances when a Public Customer complex order trades
against a simple Maker order, the Exchange pays a rebate to both market
participants and takes in no fees. The Exchange has determined that
this is not economically viable. Therefore, the Exchange proposes to
add a note that applies to the listing of all Maker rebates in Section
1A of the Fees Schedule (which discusses fees for simple, non-complex
orders in all multiply-listed index and ETF options classes) that
states ``Rebates do not apply to orders that trade with Public Customer
complex orders. In such a circumstance, there will be no fee or
rebate.'' The Exchange also proposes to amend the note that already
applies to the listing of all Public Customer rebates in Section 1D
[sic] \3\ of the Fees Schedule (which discusses fees for complex orders
in all multiply-listed index and ETF options classes). This note
currently states that the rebate for Public Customer complex orders
does not apply to Public Customer orders that trade with other Public
Customer orders. In such a circumstance, there will be no Maker or
Taker fee or rebate. The Exchange proposes to amend this note to state
that the rebate (for Public Customer complex orders) will only apply to
Public Customer complex orders that trade with non-Public Customer
complex orders. In other circumstances, there will be no Maker or Taker
fee or rebate. This simple language achieves the goal of excepting out
Public Customer complex orders that trade with simple orders from
receiving the rebate (as well as excepting out Public Customer complex
orders that trade with other Public Customer complex orders, which were
already excepted out of receiving the

[[Page 29421]]

rebate), and states that such orders will be assessed no fee or rebate.
---------------------------------------------------------------------------

\3\ The Commission notes that the proposed change modifies
section 1C of the Fees Schedule, not 1D.
---------------------------------------------------------------------------

The Exchange also proposes to amend fees for simple, non-complex
orders in equity options classes. The maximum fees for such orders are
$0.85 ($0.085 mini-options) and the maximum rebates for such orders are
$0.75 ($0.075 for mini-options).\4\ Feedback received from C2 market
participants has made it clear to the Exchange that in the BAC, MBI,
BBRY, DELL and JCP equity options classes (the ``Unique Classes''), the
economics of a fee/rebate structure that has a maximum fee of $0.85 per
contract and a maximum rebate of $0.75 per contract is disproportionate
to pricing and does not encourage trading. As such, the Exchange
proposes to amend its Fees Schedule to state that the maximum fee for
the Unique Classes will be $0.55 per contract and the maximum rebate
for the Unique Classes will be $0.45 per contract (mini-options are not
traded on the Unique Classes). This maintains the $0.10 difference
between the maximum fee and rebate (as currently exists).
---------------------------------------------------------------------------

\4\ All fee amounts referenced are per-contract.
---------------------------------------------------------------------------

The Exchange also proposes to amend its Fees Schedule to make a
number of technical changes. First, the Exchange proposes to remove all
references in the Fees Schedule to SPXPM, a product which is no longer
traded on C2. Therefore, Section 1E of the current Fees Schedule, which
listed the rates for SPXPM executions, is no longer relevant, and
therefore the Exchange proposes to delete it. Section 1F--Index License
Surcharge Fees--can also be deleted, as the only Index License
Surcharge Fee listed was that for SPXPM. References to the SPXPM Tier
Appointment Fee in Section 3 will also be deleted.
The Exchange also proposes to delete references to past dates from
its Fees Schedule. Section 1B describes how fees for simple, non-
complex orders in equity options classes will be calculated, effective
February 1, 2013. Since that date has passed, the Exchange proposes to
delete such reference. Similarly, Section 8E lists the Options
Regulatory Fee (``ORF'') as being $.0015 per contract through December
31, 2012 and $.002 per contract effective January 2, 2013. As January
2, 2013 has passed, the Exchange proposes to delete the reference to
the previous fee and merely state that the ORF will be $.002 per
contract.
Finally, the Exchange proposes to clearly state that the fees in
Sections 1A and 1C that apply to multiply-listed index and ETF options
classes also apply to multiply-listed ETN options classes. This was not
previously explicitly-stated on the Fees Schedule.
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.\5\ Specifically, the Exchange believes the proposed rule change is
consistent with Section 6(b)(4) of the Act,\6\ which requires that
Exchange rules provide for the equitable allocation of reasonable dues,
fees, and other charges among its Trading Permit Holders and other
persons using its facilities. The proposed changes to the rebates
offered for multiply-listed index and ETF options are reasonable
because, while in the circumstances discussed, market participants will
no longer be receiving a rebate, they still will not be paying a fee
for such transactions. Further, it is not economically viable for the
Exchange to be paying out rebates in transactions in which the Exchange
does not collect a fee (especially to be paying out rebates on both
sides of such transactions). This change is equitable and not unfairly
discriminatory because it will apply to all market participants who had
previously been receiving rebates for such transactions, and they will
all now simply not be assessed a fee (or provided a rebate) in those
circumstances.
---------------------------------------------------------------------------

\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

The Exchange believes that the proposed change to the maximum fee
and rebate amounts for the Unique Classes is reasonable because the
maximum amounts of both fees and rebates will be lower than it
currently is. Further, the maximum fee amount is reasonable because,
among other things, the fee will not always be assessed for the maximum
amount. The fee will only be for the maximum amount when the BBO Market
Width is wide. Otherwise, the fee will be smaller. Indeed, the purpose
of the fees structure is to encourage tighter quoting by linking lower
fees to such tighter quoting. It is necessary to maintain a spread
between the maximum fee and the maximum rebate because, in the event
that the maximum fee and rebate both apply, the $0.10 per-contract
difference will allow the Exchange to maintain a minimum level of
profit potential. Rebate amounts are often generally lower than fee
amounts on the Exchange, as well as on other exchanges,\7\ for this
reason (among others). The Exchange believes that it is equitable and
not unfairly discriminatory to offer different maximum fees and rebates
for simple, non-complex orders in the Unique Classes than for other
equity options classes because the economics of the Unique Classes are
such that the proposed maximum fee and rebates for the Unique Classes
are more relevant and will encourage greater trading in those classes.
Further, the spread between the maximum fee and rebate for the Unique
Classes and for other equity options classes will be the same ($0.10
per contract). Finally, the proposed maximum fee and rebate amounts for
the Unique Classes apply to all market participants in the same manner
that the current maximum fee and rebate amounts do.
---------------------------------------------------------------------------

\7\ See current C2 Fees Schedule, Section 1, and NOM Chapter XV
(Options Pricing), Section 2.
---------------------------------------------------------------------------

The Exchange believes that making changes to remove references to
SPXPM and past dates, and to add the references to ETN options, is
consistent with the Section 6(b)(5) \8\ 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
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.
Removing obsolete and irrelevant references and sections from the Fees
Schedule and improving the references to ETN options prevents possible
investor confusion, thereby removing impediments to and perfecting the
mechanism of a free and open market and a national market system, and,
in general, protecting investors and the public interest.
---------------------------------------------------------------------------

\8\ 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. The Exchange does not believe
that the proposed changes to the rebates offered for multiply-listed
index and ETF options will impose any unnecessary or inappropriate
burden on intramarket competition because the changes will apply to all
market participants who had previously been receiving rebates for such
transactions, and they will all now simply not be assessed a fee (or
provided a rebate) in

[[Page 29422]]

those circumstances. The Exchange does not believe that the proposed
changes to the maximum fee and rebate amounts for the Unique Classes
will impose any unnecessary or inappropriate burden on intramarket
competition because they will apply to all market participants in the
same manner that the current maximum fee and rebate amounts do. The
Exchange does not believe that the proposed changes will impose any
unnecessary or inappropriate burden on intermarket competition because
they apply only to trading on C2, and because these changes lower
rebates that had previously been provided. To the extent that these
changes make C2 a more attractive trading venue for market participants
on other exchanges, such market participants may always elect to become
market participants at C2.

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 \9\ and paragraph (f) of Rule 19b-4 \10\
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 will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 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-C2-2013-020 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-C2-2013-020. 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-C2-2013-020, and should be
submitted on or before June 10, 2013.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-11899 Filed 5-17-13; 8:45 am]
BILLING CODE 8011-01-P

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