Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to a Fee for Qualification Examination Waiver Requests, 9022-9024 [2014-03186]
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Federal Register / Vol. 79, No. 31 / Friday, February 14, 2014 / Notices
10. Before approving any advisory
contract under section 15 of the Act, the
board of directors or trustees of each
Investing Management Company
including a majority of the disinterested
directors or trustees, will find that the
advisory fees charged under such
contract are based on services provided
that will be in addition to, rather than
duplicative of, the services provided
under the advisory contract(s) of any
Fund in which the Investing
Management Company may invest.
These findings and their basis will be
fully recorded in the minute books of
the appropriate Investing Management
Company.
11. Any sales charges and/or service
fees charged with respect to shares of a
Fund of Funds will not exceed the
limits applicable to a fund of funds as
set forth in NASD Conduct Rule 2830.
12. No Fund will acquire securities of
an investment company or company
relying on section 3(c)(1) or 3(c)(7) of
the Act in excess of the limits contained
in section 12(d)(1)(A) of the Act, except
to the extent the Fund acquires
securities of another investment
company pursuant to exemptive relief
from the Commission permitting the
Fund to acquire securities of one or
more investment companies for shortterm cash management purposes.
Commissioner Stein, as duty officer,
voted to consider the items listed for the
Closed Meeting in a closed session.
The subject matter of the Closed
Meeting will be:
Institution and settlement of injunctive
actions;
institution and settlement of
administrative proceedings;
adjudicatory matters; and
other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact the Office of the Secretary at
(202) 551–5400.
Dated: February 12, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–03457 Filed 2–12–14; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71508; File No. SR–C2–
2014–003]
[FR Doc. 2014–03251 Filed 2–13–14; 8:45 am]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change Relating to a Fee for
Qualification Examination Waiver
Requests
BILLING CODE 8011–01–P
February 7, 2014.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Kevin M. O’Neill,
Deputy Secretary.
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSK4VPTVN1PROD with NOTICES
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, February 20, 2014 at 2:00
p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matter at the Closed Meeting.
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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 February
3, 2014, 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
C2 Options Exchange, Incorporated
(the ‘‘Exchange’’ or ‘‘C2’’) proposes to
establish a fee for qualification
examination waiver requests. The text of
the proposed rule change is available on
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00086
Fmt 4703
Sfmt 4703
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
C2 Rule 3.4, Interpretation and Policy
.04, authorizes the Exchange, in
exceptional cases and where good cause
is shown, to waive qualification
examinations and accept other
standards as evidence of an applicant’s
qualification for registration. This
authority is to be exercised in
exceptional cases and where good cause
is shown by the applicant. The rule
further states that advanced age or
physical infirmity, will not individually
of themselves constitute sufficient
grounds to waive a qualification
examination. Experience in fields
ancillary to the securities business may
constitute sufficient grounds to waive a
qualification examination.
The Exchange has entered into a
regulatory services agreement (‘‘RSA’’)
with the Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) pursuant to
which FINRA will process qualification
examination waiver requests on behalf
of the Exchange (‘‘Waiver Requests’’).3
Under the RSA, C2 Permit Holders and
persons associated with C2 Permit
Holders seeking a waiver of a
qualification examination will submit a
Waiver Request to FINRA.4 FINRA will
process all Waiver Requests submitted
3 CBOE Rule 15.9(b) (which applies to C2 and is
incorporated by reference into C2’s rules)
authorizes the Exchange to enter into agreements
with another self-regulatory organization to provide
regulatory services to the Exchange to assist the
Exchange in discharging its obligations under
Section 6 and Section 19(g) of the Securities
Exchange Act of 1934.
4 Currently, Waiver Requests must be submitted
to FINRA through the FINRA Firm Gateway.
E:\FR\FM\14FEN1.SGM
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Federal Register / Vol. 79, No. 31 / Friday, February 14, 2014 / Notices
by C2 Permit Holders and their
associated persons, whether the Waiver
Request is for a FINRA examination or
a non-FINRA examination (e.g., the
Series 56 examination).
FINRA will review each Waiver
Request based on guidelines approved
by the Exchange and provide the
Exchange with a recommendation
regarding the disposition of the Waiver
Request. The Exchange will make the
final decision regarding whether or not
to grant or deny a Waiver Request.5
FINRA will maintain files and records
made, collected or otherwise created by
FINRA in the course of performing
services under the RSA. Such files and
records shall include, but not be limited
to, FINRA Waiver Request disposition
recommendations and the basis for its
recommendations,6 C2 decisions and
the basis for its decisions,7 and letters
sent to requesting C2 Permit Holders
communicating C2’s decisions.
The Exchange will pay a fee to FINRA
under the RSA for each Waiver Request
of a non-FINRA examination (e.g., the
Series 56 examination) processed by
FINRA. The Exchange proposes to
charge C2 Permit Holders a fee of $200
for each Waiver Request of a non-FINRA
examination processed by FINRA. The
proposed fee would help the Exchange
recoup its costs under the RSA.
The proposed fee would be effective
on February 3, 2014.
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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.8 Specifically,
the Exchange believes the proposed rule
change is consistent with Section 6(b)(4)
of the Act,9 which requires that
Exchange rules provide for the equitable
allocation of reasonable dues, fees, and
other charges among its Permit Holders
5 Notwithstanding the RSA, the Exchange shall
retain ultimate legal responsibility for, and control
of, its self-regulatory responsibilities.
6 The recommendation provided to C2 will
include a detailed explanation and justification as
to whether to grant or deny the Waiver Request, and
in those cases where the recommendation is to
grant a waiver, the reasoning shall support why
FINRA believes it is an exceptional case and that
good cause has been shown to warrant the granting
of the Waiver Request.
7 C2 will notify FINRA in writing of its final
decision regarding whether to grant or deny a
Waiver Request, including any additional
information regarding such decision.
The Commission expects CBOE to document in
writing its rationale for any decision when CBOE
determines not to follow FINRA’s recommendation.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(4).
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17:47 Feb 13, 2014
Jkt 232001
and other persons using its facilities.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 10 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes the proposed fee
is reasonable because it would help the
Exchange recoup its costs in engaging
FINRA to process Waiver Requests of
non-FINRA examinations by C2 Permit
Holders and their associated persons.
The Exchange believes the proposed fee
is equitable and not unfairly
discriminatory because it would apply
equally to all C2 Permit Holders who
submit Waiver Requests of non-FINRA
examinations.
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 fee will
impose an unnecessary burden on
intramarket competition because it
would apply equally to all C2 Permit
Holders who submit Waiver Requests of
non-FINRA examinations. The
Exchange does not believe that the
proposed fee will impose an
unnecessary burden on intermarket
competition because the fee would only
apply to C2 Permit Holders.
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 11 and paragraph (f) of Rule
19b–4 12 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
10 Id.
[sic].
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f).
11 15
PO 00000
Frm 00087
Fmt 4703
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9023
change 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:
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–
C2–2014–003 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–C2–2014–003. 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
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–
2014–003 and should be submitted on
or before March 7, 2014.
E:\FR\FM\14FEN1.SGM
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9024
Federal Register / Vol. 79, No. 31 / Friday, February 14, 2014 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–03186 Filed 2–13–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71516; File No. SR–
NASDAQ–2014–013]
Self-Regulatory Organizations; the
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
NASDAQ Options Market Fees and
Rebates
February 10, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on January
29, 2014, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared by NASDAQ. 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
NASDAQ proposes to modify Chapter
XV, entitled ‘‘Options Pricing,’’ at
Section 2 governing pricing for
NASDAQ members using the NASDAQ
Options Market (‘‘NOM’’), NASDAQ’s
facility for executing and routing
standardized equity and index options.
Specifically, NOM proposes to: (i)
Amend the Customer Non-Penny Pilot
Options 3 Rebate to Add Liquidity; (ii)
amend the Customer and Professional
Rebates to Add Liquidity in Penny Pilot
Options; 4 and (iii) amend the Penny
Pilot Options Customer Fee for
Removing Liquidity.
While the changes proposed herein
are effective upon filing, the Exchange
has designated that the amendments be
operative on February 3, 2014.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
www.nasdaq.cchwallstreet.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
to add liquidity by earning a higher
Non-Penny Pilot Customer Rebate to
Add Liquidity. The Exchange also
proposes to amend the Tier 8 Rebate to
Add Liquidity to lower the Professional
rebate paid for that tier. While the
Exchange is lowering the Professional
Rebate to Add Liquidity in Penny Pilot
Options, the Exchange believes that the
rebate will continue to encourage
Participants to add volume to earn the
rebate. The Exchange proposes to
increase the Customer Penny Pilot
Options Fee for Removing Liquidity
from $0.45 to $0.47 per contract. Despite
the increase, the Exchange believes this
fee remains competitive.
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. 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.
The Exchange currently pays a
Customer Non-Penny Pilot Rebate to
Add Liquidity of $0.84 per contract.
Non-Customer Participants do not
receive a Non-Penny Pilot Rebate to
Add Liquidity. The Exchange proposes
to pay an additional $0.01 per contract
Non-Penny Pilot Options Customer
Rebate to Add Liquidity (for a total
rebate of $0.85 per contract) to a
Participant that qualifies for a Tier 7 or
8 Customer or Professional Penny Pilot
Options Rebate to Add Liquidity in a
given month. Participants would receive
the additional $0.01 per contract rebate
for each transaction which adds
liquidity in Non-Penny Pilot Options in
that month.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NASDAQ proposes to amend certain
fees in Chapter XV, Section 2. The
Exchange proposes to amend the NonPenny Pilot Options Customer Rebate to
Add Liquidity to encourage Participants
Non-Penny Pilot Customer Rebate To
Add Liquidity
Penny Pilot Options Customer and
Professional Rebate To Add Liquidity
The Exchange currently pays
Customer and Professional Rebates to
Add Liquidity based on an eight tier
rebate structure as follows:
Rebate to
add liquidity
Monthly volume
Tier 1 Participant adds Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options of up to
0.20% of total industry customer equity and ETF option average daily volume (‘‘ADV’’) contracts per day in a month ...................
Tier 2 Participant adds Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above
0.20% to 0.30% of total industry customer equity and ETF option ADV contracts per day in a month ............................................
Tier 3 Participant adds Customer and/or Professional liquidity in Penny Pilot Options and/or Non-Penny Pilot Options above
0.30% to 0.40% of total industry customer equity and ETF option ADV contracts per day in a month ............................................
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 The Non-Penny Pilot Options pricing includes
options overlying the Nasdaq 100 Index traded
under the symbol NDX.
4 The Penny Pilot was established in March 2008
and in October 2009 was expanded and extended
through June 30, 2014. See Securities Exchange Act
Release Nos. 57579 (March 28, 2008), 73 FR 18587
(April 4, 2008) (SR–NASDAQ–2008–026) (notice of
filing and immediate effectiveness establishing
Penny Pilot); 60874 (October 23, 2009), 74 FR 56682
(November 2, 2009) (SR–NASDAQ–2009–091)
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1 15
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17:47 Feb 13, 2014
Jkt 232001
(notice of filing and immediate effectiveness
expanding and extending Penny Pilot); 60965
(November 9, 2009), 74 FR 59292 (November 17,
2009) (SR–NASDAQ–2009–097) (notice of filing
and immediate effectiveness adding seventy-five
classes to Penny Pilot); 61455 (February 1, 2010),
75 FR 6239 (February 8, 2010) (SR–NASDAQ–
2010–013) (notice of filing and immediate
effectiveness adding seventy-five classes to Penny
Pilot); 62029 (May 4, 2010), 75 FR 25895 (May 10,
2010) (SR–NASDAQ–2010–053) (notice of filing
and immediate effectiveness adding seventy-five
classes to Penny Pilot); 65969 (December 15, 2011),
76 FR 79268 (December 21, 2011) (SR–NASDAQ–
2011–169) (notice of filing and immediate
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
$0.25
0.42
0.43
effectiveness extension and replacement of Penny
Pilot); 67325 (June 29, 2012), 77 FR 40127 (July 6,
2012) (SR–NASDAQ–2012–075) (notice of filing
and immediate effectiveness and extension and
replacement of Penny Pilot through December 31,
2012); 68519 (December 21, 2012), 78 FR 136
(January 2, 2013) (SR–NASDAQ–2012–143) (notice
of filing and immediate effectiveness and extension
and replacement of Penny Pilot through June 30,
2013); 69787 (June 18, 2013), 78 FR 37858 (June 24,
2013) (SR–NASDAQ–2013–082) and 71105
(December 17, 2013), 78 FR 77530 (December 23,
2013) (SR–NASDAQ–2013–154). See also NOM
Rules, Chapter VI, Section 5.
E:\FR\FM\14FEN1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 31 (Friday, February 14, 2014)]
[Notices]
[Pages 9022-9024]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03186]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71508; File No. SR-C2-2014-003]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to a Fee for Qualification Examination Waiver Requests
February 7, 2014.
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 February 3, 2014, C2 Options Exchange, Incorporated (the
``Exchange'' or ``C2'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
C2 Options Exchange, Incorporated (the ``Exchange'' or ``C2'')
proposes to establish a fee for qualification examination waiver
requests. 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
C2 Rule 3.4, Interpretation and Policy .04, authorizes the
Exchange, in exceptional cases and where good cause is shown, to waive
qualification examinations and accept other standards as evidence of an
applicant's qualification for registration. This authority is to be
exercised in exceptional cases and where good cause is shown by the
applicant. The rule further states that advanced age or physical
infirmity, will not individually of themselves constitute sufficient
grounds to waive a qualification examination. Experience in fields
ancillary to the securities business may constitute sufficient grounds
to waive a qualification examination.
The Exchange has entered into a regulatory services agreement
(``RSA'') with the Financial Industry Regulatory Authority, Inc.
(``FINRA'') pursuant to which FINRA will process qualification
examination waiver requests on behalf of the Exchange (``Waiver
Requests'').\3\ Under the RSA, C2 Permit Holders and persons associated
with C2 Permit Holders seeking a waiver of a qualification examination
will submit a Waiver Request to FINRA.\4\ FINRA will process all Waiver
Requests submitted
[[Page 9023]]
by C2 Permit Holders and their associated persons, whether the Waiver
Request is for a FINRA examination or a non-FINRA examination (e.g.,
the Series 56 examination).
---------------------------------------------------------------------------
\3\ CBOE Rule 15.9(b) (which applies to C2 and is incorporated
by reference into C2's rules) authorizes the Exchange to enter into
agreements with another self-regulatory organization to provide
regulatory services to the Exchange to assist the Exchange in
discharging its obligations under Section 6 and Section 19(g) of the
Securities Exchange Act of 1934.
\4\ Currently, Waiver Requests must be submitted to FINRA
through the FINRA Firm Gateway.
---------------------------------------------------------------------------
FINRA will review each Waiver Request based on guidelines approved
by the Exchange and provide the Exchange with a recommendation
regarding the disposition of the Waiver Request. The Exchange will make
the final decision regarding whether or not to grant or deny a Waiver
Request.\5\ FINRA will maintain files and records made, collected or
otherwise created by FINRA in the course of performing services under
the RSA. Such files and records shall include, but not be limited to,
FINRA Waiver Request disposition recommendations and the basis for its
recommendations,\6\ C2 decisions and the basis for its decisions,\7\
and letters sent to requesting C2 Permit Holders communicating C2's
decisions.
---------------------------------------------------------------------------
\5\ Notwithstanding the RSA, the Exchange shall retain ultimate
legal responsibility for, and control of, its self-regulatory
responsibilities.
\6\ The recommendation provided to C2 will include a detailed
explanation and justification as to whether to grant or deny the
Waiver Request, and in those cases where the recommendation is to
grant a waiver, the reasoning shall support why FINRA believes it is
an exceptional case and that good cause has been shown to warrant
the granting of the Waiver Request.
\7\ C2 will notify FINRA in writing of its final decision
regarding whether to grant or deny a Waiver Request, including any
additional information regarding such decision.
The Commission expects CBOE to document in writing its rationale
for any decision when CBOE determines not to follow FINRA's
recommendation.
---------------------------------------------------------------------------
The Exchange will pay a fee to FINRA under the RSA for each Waiver
Request of a non-FINRA examination (e.g., the Series 56 examination)
processed by FINRA. The Exchange proposes to charge C2 Permit Holders a
fee of $200 for each Waiver Request of a non-FINRA examination
processed by FINRA. The proposed fee would help the Exchange recoup its
costs under the RSA.
The proposed fee would be effective on February 3, 2014.
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.\8\ Specifically, the
Exchange believes the proposed rule change is consistent with Section
6(b)(4) of the Act,\9\ which requires that Exchange rules provide for
the equitable allocation of reasonable dues, fees, and other charges
among its Permit Holders and other persons using its facilities.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \10\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The Exchange believes the
proposed fee is reasonable because it would help the Exchange recoup
its costs in engaging FINRA to process Waiver Requests of non-FINRA
examinations by C2 Permit Holders and their associated persons. The
Exchange believes the proposed fee is equitable and not unfairly
discriminatory because it would apply equally to all C2 Permit Holders
who submit Waiver Requests of non-FINRA examinations.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
\10\ Id. [sic].
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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 fee will impose an unnecessary burden on intramarket
competition because it would apply equally to all C2 Permit Holders who
submit Waiver Requests of non-FINRA examinations. The Exchange does not
believe that the proposed fee will impose an unnecessary burden on
intermarket competition because the fee would only apply to C2 Permit
Holders.
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 \11\ and paragraph (f) of Rule 19b-4 \12\
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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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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-C2-2014-003 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-C2-2014-003. 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 identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-C2-2014-003 and should be
submitted on or before March 7, 2014.
[[Page 9024]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03186 Filed 2-13-14; 8:45 am]
BILLING CODE 8011-01-P
