Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fees Schedule, 48785-48787 [2014-19479]
Download as PDF
Federal Register / Vol. 79, No. 159 / Monday, August 18, 2014 / Notices
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
At any time within 60 days of the
filing of such 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
under Section 19(b)(2)(B) 9 of the Act to
determine whether the proposed rule
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:
mstockstill on DSK4VPTVN1PROD with NOTICES
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–
NYSEMKT–2014–65 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–NYSEMKT–2014–65. 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 Section, 100 F Street NE.,
Washington, DC 20549–1090. Copies of
the filing will also be available for Web
site viewing and printing at the NYSE’s
principal office and on its Internet Web
site at www.nyse.com. 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–
NYSEMKT–2014–65 and should be
submitted on or before September 8,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–19473 Filed 8–15–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72823; File No. SR–C2–
2014–016]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Its Fees Schedule
August 12, 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 August 1,
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
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.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
9 15
U.S.C. 78s(b)(2)(B).
VerDate Mar<15>2010
16:57 Aug 15, 2014
Jkt 232001
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
48785
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 currently charges firms
a fee of $350 per month for the first 10
Trading Permit Holder workstations
(‘‘TPH Workstations’’) and $100 per
month for all subsequent TPH
Workstations. TPHs may also make a
workstation available to their customers,
which may include non-broker dealer
public customers and non-TPH broker
dealers (referred to herein as ‘‘non-TPH
Workstations’’). For such non-TPH
workstations, the Exchange currently
charges a fee of $350 per month per
workstation.3 In addition, the Exchange
waives the monthly workstation fees for
the first month for the first new user of
a TPH or non-TPH using a PULSe
workstation.4
The purpose of this proposed rule
change is to modify the limited fee
waiver available to new users of a TPH
or non-TPH Workstation. Specifically,
in order to give new users time to
become familiar with and fully
acclimated to the PULSe workstation
functionality, the Exchange proposes to
waive the monthly workstation fees for
the first two months for all new users 5
3 In instances where two or more TPHs wish to
make a PULSe workstation available to the same
non-TPH customer, a fee reduction applies. Under
the reduction, if two or more TPHs make the PULSe
workstation available to the same non-TPH
customer, then the monthly fee is reduced from
$350 to $250 per workstation per TPH.
4 A TPH or non-TPH Workstation is utilized by
a ‘‘user’’ with a specific user login. When a firm
with an existing workstation, either TPH or nonTPH, adds another workstation another user login
is generated. Currently, the firm receives a one
month fee waiver for the workstation utilized by the
new user login, but continues to pay the fee for the
previous workstation.
5 A firm that is currently utilizing a TPH or nonTPH Workstation but seeks to add another
workstation is adding a new user. The proposal
allows for a fee waiver for all new users between
August 1, 2014 and December 31, 2014. For
Continued
E:\FR\FM\18AUN1.SGM
18AUN1
48786
Federal Register / Vol. 79, No. 159 / Monday, August 18, 2014 / Notices
between August 1, 2014 and December
31, 2014.6 In addition, the fee for
August 2014 is waived for any users that
became new users in July 2014. After
December 31, 2014, the PULSe
workstation fee will revert to its current
form, which provides that the fee is
waived for the first month for the first
new user of a TPH or non-TPH
workstation. The proposed fee waivers
are based on CBOE’s [sic] billing period,
which is based on a calendar month
(i.e., begins on the first day of each
month and ends on the last day of each
month). For example, if a firm has a new
user that begins using a PULSe
workstation on August 15th, the firm’s
workstation fees for the new user would
be waived from August 15th–September
30th (i.e., their August and September
bills would not have a charge for the
new user’s workstation) or if a firm has
a new user that begins using a PULSe
workstation on September 25th, the
firm’s workstation fees for the new user
would be waived from September 25th–
October 31st (i.e., their September and
October bills would not have a charge
for the new user’s workstation).
mstockstill on DSK4VPTVN1PROD with NOTICES
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.7 Specifically,
the Exchange believes the proposed rule
change 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 facilitation 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
example, if a firm has one workstation and adds
three more in August, the firm will get a fee waiver
for the three new workstations for two months (i.e.,
their August and December [sic] bill will not have
a charge for the three new workstations). A firm that
is not currently utilizing a TPH or non-TPH
Workstation may also add any number of
workstations from August 1, 2014 and December 31,
2014, and receive the same two month fee waiver.
6 If a firm has a new user in December, the firm
will receive a fee waiver for that user for December
2014 and January 2015.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
VerDate Mar<15>2010
16:57 Aug 15, 2014
Jkt 232001
the Section 6(b)(5) 9 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,10 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.
In particular, the Exchange believes
the fee waiver is reasonable because the
fee waivers will serve as an incentive for
TPHs and their sponsored user
customers to use the PULSe workstation
as an additional trading tool on their
trading desks. In addition, it is an
incentive for firms that had new users
in July 2014 to remain users of their
workstation. The Exchange believes that
it is equitable and not unfairly
discriminatory because all firms with
new users after August 1, 2014 and prior
to December 31, 2014, are eligible for
the fee waiver. In addition, allowing
firms with new users in July 2014 to
receive a fee waiver for August 2014 is
not retroactive because under the
current rules the firms are already
receiving a fee waiver for July. Although
firms that were already utilizing PULSe
prior to July 2014 only received a one
month fee waiver, which may be
perceived as unfair discrimination, they
too may have new users in the coming
months and will benefit from the two
month fee waiver for new users.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
C2 does not believe that the proposed
rule change will impose any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
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
9 Id.
10 15
U.S.C. 78f(b)(4).
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f).
11 15
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
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.
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–
C2–2014–016 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–C2–2014–016. 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
E:\FR\FM\18AUN1.SGM
18AUN1
Federal Register / Vol. 79, No. 159 / Monday, August 18, 2014 / Notices
information that you wish to make
available publicly. All submissions
should refer to File Number SR–C2–
2014–016 and should be submitted on
or before September 8, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–19479 Filed 8–15–14; 8:45 am]
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72813; File No. SR–
NASDAQ–2014–053]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Proposed Rule Change
Relating to the Listing and Trading of
the Shares of the iShares Commodities
Strategy ETF of iShares U.S. ETF Trust
August 12, 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 July 31,
2014, The NASDAQ Stock Market LLC
(‘‘Nasdaq’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in in
Items I and II 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Nasdaq proposes to list and trade the
shares of the iShares Commodities
Strategy ETF (the ‘‘Fund’’) of iShares
U.S. ETF Trust (the ‘‘Trust’’) under
Nasdaq Rule 5735 (‘‘Managed Fund
Shares’’), under Nasdaq Rule 5735
(‘‘Managed Fund Shares’’). The shares of
the Fund are collectively referred to
herein as the ‘‘Shares.’’
The text of the proposed rule change
is available at https://
nasdaq.cchwallstreet.com/, at Nasdaq’s
principal office, and at the
Commission’s Public Reference Room.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Mar<15>2010
16:57 Aug 15, 2014
Jkt 232001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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.
Nasdaq 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 list and
trade the Shares of the Fund under
Nasdaq Rule 5735, which governs the
listing and trading of Managed Fund
Shares 3 on the Exchange.4 The Fund
will be an actively managed exchangetraded fund (‘‘ETF’’). The Shares will be
offered by the Trust, which was
established as a Delaware statutory trust
on June 21, 2011.5 The Trust is
registered with the Commission as an
3 A Managed Fund Share is a security that
represents an interest in an investment company
registered under the Investment Company Act of
1940 (15 U.S.C. 80a–1) (the ‘‘1940 Act’’) organized
as an open-end investment company or similar
entity that invests in a portfolio of securities
selected by its investment adviser consistent with
its investment objectives and policies. In contrast,
an open-end investment company that issues Index
Fund Shares, listed and traded on the Exchange
under Nasdaq Rule 5705, seeks to provide
investment results that correspond generally to the
price and yield performance of a specific foreign or
domestic stock index, fixed income securities index
or combination thereof.
4 The Commission approved Nasdaq Rule 5735 in
Securities Exchange Act Release No. 57962 (June
13, 2008), 73 FR 35175 (June 20, 2008) (SRNASDAQ–2008–039). The Fund would not be the
first actively-managed fund listed on the Exchange;
see Securities Exchange Act Release No. 66489
(February 29, 2012), 77 FR 13379 (March 6, 2012)
(SR–NASDAQ–2012–004) (order approving listing
and trading of WisdomTree Emerging Markets
Corporate Bond Fund). The Exchange believes the
proposed rule change raises no significant issues
not previously addressed in those prior
Commission orders.
5 The Commission has issued an order granting
certain exemptive relief to the Trust under the 1940
Act (the ‘‘Exemptive Order’’). See Investment
Company Act Release No. 29571 (January 24, 2011)
(File No. 812–13601). In compliance with Nasdaq
Rule 5735(b)(5), which applies to Managed Fund
Shares based on an international or global portfolio,
the Trust’s application for exemptive relief under
the 1940 Act states that the Fund will comply with
the federal securities laws in accepting securities
for deposits and satisfying redemptions with
redemption securities, including that the securities
accepted for deposits and the securities used to
satisfy redemption requests are sold in transactions
that would be exempt from registration under the
Securities Act of 1933 (15 U.S.C. 77a).
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
48787
investment company and has filed a
registration statement on Form N–1A
(‘‘Registration Statement’’) with the
Commission.6 The Fund is a series of
the Trust. With respect to the futures
contracts held indirectly through a
wholly-owned subsidiary controlled by
the Fund and organized under the laws
of the Cayman Islands (referred to
herein as the ‘‘Subsidiary’’), not more
than 10% of the weight 7 of such futures
contracts in the aggregate shall consist
of instruments whose principal trading
market is not a member of the
Intermarket Surveillance Group (‘‘ISG’’)
or is a market with which the Exchange
does not have a comprehensive
surveillance sharing agreement.
BlackRock Fund Advisors will be the
investment adviser (‘‘Adviser’’) to the
Fund. BlackRock Investments, LLC
(‘‘Distributor’’) will be the principal
underwriter and distributor of the
Fund’s Shares. State Street Bank and
Trust Company will act as the
administrator, accounting agent,
custodian (‘‘Custodian’’) and transfer
agent to the Fund.
Paragraph (g) of Rule 5735 provides
that if the investment adviser to the
investment company issuing Managed
Fund Shares is affiliated with a brokerdealer, such investment adviser shall
erect a ‘‘fire wall’’ between the
investment adviser and the brokerdealer with respect to access to
information concerning the composition
and/or changes to such investment
company portfolio.8 In addition,
6 See Registration Statement on Form N–1A for
the Trust, dated January 24, 2014 (File Nos. 333–
179904 and 811–22649). The descriptions of the
Fund and the Shares contained herein are based, in
part, on information in the Registration Statement.
7 To be calculated as the value of the contract
divided by the total absolute notional value of the
Subsidiary’s futures contracts.
8 An investment adviser to an open-end fund is
required to be registered under the Investment
Advisers Act of 1940 (the ‘‘Advisers Act’’). As a
result, the Adviser and its related personnel are
subject to the provisions of Rule 204A–1 under the
Advisers Act relating to codes of ethics. This Rule
requires investment advisers to adopt a code of
ethics that reflects the fiduciary nature of the
relationship to clients as well as compliance with
other applicable securities laws. Accordingly,
procedures designed to prevent the communication
and misuse of non-public information by an
investment adviser must be consistent with Rule
204A–1 under the Advisers Act. In addition, Rule
206(4)–7 under the Advisers Act makes it unlawful
for an investment adviser to provide investment
advice to clients unless such investment adviser has
(i) adopted and implemented written policies and
procedures reasonably designed to prevent
violation, by the investment adviser and its
supervised persons, of the Advisers Act and the
Commission rules adopted thereunder; (ii)
implemented, at a minimum, an annual review
regarding the adequacy of the policies and
procedures established pursuant to subparagraph (i)
above and the effectiveness of their
E:\FR\FM\18AUN1.SGM
Continued
18AUN1
Agencies
[Federal Register Volume 79, Number 159 (Monday, August 18, 2014)]
[Notices]
[Pages 48785-48787]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-19479]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72823; File No. SR-C2-2014-016]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend Its Fees Schedule
August 12, 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 August 1, 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
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 currently charges firms a fee of $350 per month for
the first 10 Trading Permit Holder workstations (``TPH Workstations'')
and $100 per month for all subsequent TPH Workstations. TPHs may also
make a workstation available to their customers, which may include non-
broker dealer public customers and non-TPH broker dealers (referred to
herein as ``non-TPH Workstations''). For such non-TPH workstations, the
Exchange currently charges a fee of $350 per month per workstation.\3\
In addition, the Exchange waives the monthly workstation fees for the
first month for the first new user of a TPH or non-TPH using a PULSe
workstation.\4\
---------------------------------------------------------------------------
\3\ In instances where two or more TPHs wish to make a PULSe
workstation available to the same non-TPH customer, a fee reduction
applies. Under the reduction, if two or more TPHs make the PULSe
workstation available to the same non-TPH customer, then the monthly
fee is reduced from $350 to $250 per workstation per TPH.
\4\ A TPH or non-TPH Workstation is utilized by a ``user'' with
a specific user login. When a firm with an existing workstation,
either TPH or non-TPH, adds another workstation another user login
is generated. Currently, the firm receives a one month fee waiver
for the workstation utilized by the new user login, but continues to
pay the fee for the previous workstation.
---------------------------------------------------------------------------
The purpose of this proposed rule change is to modify the limited
fee waiver available to new users of a TPH or non-TPH Workstation.
Specifically, in order to give new users time to become familiar with
and fully acclimated to the PULSe workstation functionality, the
Exchange proposes to waive the monthly workstation fees for the first
two months for all new users \5\
[[Page 48786]]
between August 1, 2014 and December 31, 2014.\6\ In addition, the fee
for August 2014 is waived for any users that became new users in July
2014. After December 31, 2014, the PULSe workstation fee will revert to
its current form, which provides that the fee is waived for the first
month for the first new user of a TPH or non-TPH workstation. The
proposed fee waivers are based on CBOE's [sic] billing period, which is
based on a calendar month (i.e., begins on the first day of each month
and ends on the last day of each month). For example, if a firm has a
new user that begins using a PULSe workstation on August 15th, the
firm's workstation fees for the new user would be waived from August
15th-September 30th (i.e., their August and September bills would not
have a charge for the new user's workstation) or if a firm has a new
user that begins using a PULSe workstation on September 25th, the
firm's workstation fees for the new user would be waived from September
25th-October 31st (i.e., their September and October bills would not
have a charge for the new user's workstation).
---------------------------------------------------------------------------
\5\ A firm that is currently utilizing a TPH or non-TPH
Workstation but seeks to add another workstation is adding a new
user. The proposal allows for a fee waiver for all new users between
August 1, 2014 and December 31, 2014. For example, if a firm has one
workstation and adds three more in August, the firm will get a fee
waiver for the three new workstations for two months (i.e., their
August and December [sic] bill will not have a charge for the three
new workstations). A firm that is not currently utilizing a TPH or
non-TPH Workstation may also add any number of workstations from
August 1, 2014 and December 31, 2014, and receive the same two month
fee waiver.
\6\ If a firm has a new user in December, the firm will receive
a fee waiver for that user for December 2014 and January 2015.
---------------------------------------------------------------------------
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.\7\ Specifically, the
Exchange believes the proposed rule change 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 facilitation
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) \9\ 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,\10\ 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
\9\ Id.
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
In particular, the Exchange believes the fee waiver is reasonable
because the fee waivers will serve as an incentive for TPHs and their
sponsored user customers to use the PULSe workstation as an additional
trading tool on their trading desks. In addition, it is an incentive
for firms that had new users in July 2014 to remain users of their
workstation. The Exchange believes that it is equitable and not
unfairly discriminatory because all firms with new users after August
1, 2014 and prior to December 31, 2014, are eligible for the fee
waiver. In addition, allowing firms with new users in July 2014 to
receive a fee waiver for August 2014 is not retroactive because under
the current rules the firms are already receiving a fee waiver for
July. Although firms that were already utilizing PULSe prior to July
2014 only received a one month fee waiver, which may be perceived as
unfair discrimination, they too may have new users in the coming months
and will benefit from the two month fee waiver for new users.
B. Self-Regulatory Organization's Statement on Burden on Competition
C2 does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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-C2-2014-016 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-C2-2014-016. 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
[[Page 48787]]
information that you wish to make available publicly. All submissions
should refer to File Number SR-C2-2014-016 and should be submitted on
or before September 8, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
[FR Doc. 2014-19479 Filed 8-15-14; 8:45 am]
BILLING CODE 8011-01-P