Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Fees Schedule, 19385-19388 [2015-08203]
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Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Notices
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 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–NYSE–
2015–14 and should be submitted on or
before May 1, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Brent J. Fields,
Secretary.
[FR Doc. 2015–08197 Filed 4–9–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74648; File No. SR–NYSE–
2015–06]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Designation of a Longer Period for
Commission Action on a Proposed
Rule Change Adopting New Rule 124
To Conduct a Midday Auction and
Amending Rule 104 To Codify the
Obligation of Designated Market
Makers To Facilitate the Midday
Auction
Markets Association (‘‘SIFMA’’)
submitted a comment letter to the
Commission.4 The Commission has
received no other comment on the
proposal.
Section 19(b)(2) of the Act 5 provides
that, within 45 days of the publication
of the notice of the filing of a proposed
rule change, or within such longer
period up to 90 days as the Commission
may designate if it finds such longer
period to be appropriate and publishes
its reasons for so finding, or as to which
the self-regulatory organization
consents, the Commission shall either
approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether the proposed rule change
should be disapproved. The
Commission is extending this 45-day
time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change. Accordingly, the
Commission, pursuant to Section
19(b)(2) of the Act,6 designates May 24,
2015, as the date by which the
Commission should either approve or
disapprove or institute proceedings to
determine whether to disapprove the
proposed rule change (File Number SR–
NYSE–2015–06).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Brent J. Fields,
Secretary.
[FR Doc. 2015–08196 Filed 4–9–15; 8:45 am]
BILLING CODE 8011–01–P
mstockstill on DSK4VPTVN1PROD with NOTICES
questions about the accuracy of
statements in its filings regarding
eCareer’s use of investor proceeds for
working capital, its sales of securities in
unregistered transactions and
compensation received by eCareer’s
CEO and chairman, including
information in eCareer’s Form 10–K for
the fiscal year ended June 30, 2014,
Form 10–Q for the period ended
September 30, 2014, and Form 10–Q for
the period ended December 31, 2014. Its
stock is quoted on OTC Link, operated
by OTC Markets Group, Inc., under the
ticker: ECHI.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of eCareer.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed company is
suspended for the period from 9:30 a.m.
EDT on April 8, 2015, through 11:59
p.m. EDT on April 21, 2015.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–08373 Filed 4–8–15; 4:15 pm]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74655; File No. SR–C2–
2015–005]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend the Fees Schedule
April 6, 2015.
April 6, 2015.
On February 2, 2015, New York Stock
Exchange LLC (‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to adopt new Rule 124 to
conduct a daily single-priced auction at
a specified time in lower-volume
securities (‘‘Midday Auction’’) and to
amend Rule 104 to codify the obligation
of Designated Market Makers to
facilitate the Midday Auction. The
proposed rule change was published in
the Federal Register on February 23,
2015.3 On March 20, 2015, the
Securities Industry and Financial
14 17
CFR 200.30–3(a)(59).
U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 74282
(February 23, 2015), 80 FR 9496.
1 15
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SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
In the Matter of eCareer Holdings, Inc.;
Order of Suspension of Trading
April 8, 2015.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of eCareer
Holdings, Inc., (‘‘eCareer’’) because of
questions regarding the accuracy of
publicly available information about the
company’s operations, including
4 See letter from Theodore R. Lazo, Managing
Director and Associate General Counsel, SIFMA, to
Brent J. Fields, Secretary, the Commission (Mar. 20,
2015).
5 15 U.S.C. 78s(b)(2).
6 Id.
7 17 CFR 200.30–3(a)(31).
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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 April 1,
2015 C2 Options Exchange,
Incorporated (the ‘‘Exchange’’ or ‘‘C2’’)
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 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
1 15
2 17
E:\FR\FM\10APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
10APN1
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Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Notices
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
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The Exchange proposes to amend its
Fees Schedule, effective April 1, 2015.
First, the Exchange proposes to amend
Taker fees for complex orders in all
equity, multiply-listed index, ETF and
ETN options classes (except Russell
2000 Index (‘‘RUT’’)). Currently, for
such orders, the Exchange provides a
rebate of $0.35 per contract for Public
Customers and assesses a fee of $0.45
per contract to C2 Market-Makers as
well as to orders from all other origins
(Professional Customer, Firm, Broker/
Dealer, non-C2 Market-Maker, JBO, etc.).
The Exchange proposes to eliminate the
rebate for Public Customers and
establish a fee of $0.47 per contract for
Public Customer Orders. Additionally,
the Exchange proposes to increase the
Taker fee amounts for all other origins
by $0.03, resulting in a fee of $0.48 per
contract for all other origins, including
C2 Market-Makers. The Exchange notes
that the proposed Taker fee amounts are
the same amounts currently assessed for
simple, non-complex orders in equity,
multiply-listed index, ETF and ETN
options classes and are also in line with
Taker fees assessed at other Exchanges.3
3 See, e.g., C2 Fees Schedule, Section 1A
(Transaction Fees for Simple, Non-Complex
Orders), and NYSE Arca Options Fee Schedule,
which lists, for electronic executions in Penny Pilot
issues, (1) Customer Taker fee of $0.47, (2) Market
Maker Taker fee of $0.49, and (3) Firm and Broker
Dealer Taker fee of $0.49; and for electronic
executions in non-Penny Pilot issues, (1) Customer
Taker fee of $0.85, (2) Market Maker Taker fee of
$0.87, and (3) Firm and Broker Taker fee of $0.89.
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Currently, Section 1A of the Fees
Schedule, which sets forth fees for
simple, non-complex orders in all
equity, multiply-listed index, ETF and
ETN options classes (other than RUT),
includes an asterisk attached to all
Maker Rebates and denotes the
following language: ‘‘Rebates do not
apply to orders that trade with Public
Customer complex orders. In such a
circumstance there will be no rebate or
fee.’’ The Exchange notes that it had
adopted this language since Public
Customer Taker complex orders also
receive a rebate and thus, if the
Exchange had offered the rebate when a
Public Customer Maker simple order
trades with another Public Customer
complex order, the Exchange would be
providing a rebate on both sides of the
order (which would not have been
economically feasible or viable it would
result in a net negative for the
Exchange). As such, no fee or rebate is
applied in these circumstances.
Similarly, the Exchange notes that
Section 1B of the Fees Schedule, which
sets forth fees for complex orders in all
equity, multiply-listed index, ETF and
ETN options classes (other than RUT),
includes an asterisk attached to Public
Customer Rebates and denotes the
following language: ‘‘The rebate 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.’’ Again the
Exchange notes that Public Customers
are currently entitled to a rebate
regardless of whether they were a Maker
or a Taker for complex orders and thus,
if the Exchange offered the rebate when
a Public Customer complex order trades
with another Public Customer complex
order, the Exchange would be providing
a rebate on both sides of the order. As
noted above, it would not have been
economically feasible or viable to
provide a rebate on an order that is
trading with an order that is not
generating a fee and therefore, in these
circumstances, no fee or rebate is
applied. However, in light of the
Exchange eliminating the Taker rebate
for Public Customers complex orders
and replacing it with a fee, the Exchange
will no longer be providing a rebate on
both sides of a transaction in instances
in which a simple, non-complex Maker
order trades with a Public Customer
complex order or where a Public
Customer Complex order trades with
another Public Customer complex order.
Consequently, as the Exchange will only
be providing a rebate on one side of a
transaction for these orders, the
Exchange believes that this exception is
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no longer necessary and proposes to
eliminate the asterisk and asterisked
language from the Fees Schedule.
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.4 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 5 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) 6 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,7 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 Exchange believes that the
proposed increases to Taker fees for
complex orders in all equity, multiplylisted index, ETF and ETN options
classes (except RUT) are reasonable
because the proposed fee amounts are
equivalent to Taker fees for complex
[sic] orders in all equity, multiply-listed
index, ETF and ETN options classes
(except RUT).8 The Exchange believes it
is reasonable to eliminate the Public
Customer rebate for Taker complex
orders because Public Customer Taker
simple orders also do not offer a rebate.
Additionally, other exchanges also
provide for a fee instead of a rebate for
Public Customer Taker orders.9 The
4 15
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
6 Id.
7 15
U.S.C. 78f(b)(4).
C2 Fees Schedule, Section 1A (Transaction
Fees for Simple, Non-Complex Orders)
9 See NYSE Arca Options Fee Schedule, which
lists, for electronic executions in Penny Pilot issues
a Customer Taker fee of $0.47 in non-Penny Pilot
issues a Customer Taker fee of $0.85. See also, NOM
8 See
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Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Notices
Exchange believes the proposed Public
Customer Taker fee amount for complex
orders is reasonable because the
proposed amount is equivalent to the
amount currently assessed for Public
Customer Taker simple orders on C2, as
well as the amount assessed on another
exchange for Public Customer Taker
orders.10
The Exchange believes that it is
equitable and not unfairly
discriminatory to assess lower fees to
Public Customers as compared to other
market participants because Public
Customer order flow enhances liquidity
on the Exchange for the benefit of all
market participants. Specifically, Public
Customer liquidity benefits all market
participants by providing more trading
opportunities, which attracts MarketMakers. An increase in the activity of
these market participants in turn
facilitates tighter spreads, which may
cause an additional corresponding
increase in order flow from other market
participants. Additionally, the proposed
fee change applying to Public Customers
will be applied equally to all Public
Customers.
The Exchange believes that the
differences between the Maker rebates
and fees and Taker fees for complex
orders are reasonable, equitable and not
unfairly discriminatory because they are
intended to cover the costs associated
with operating the Exchange’s trading
systems necessary to provide these
trading opportunities.
The Exchange believes that amending
the Fees Schedule so that Maker rebates
will apply to all orders, including orders
that trade with Public Customer
complex orders is reasonable, equitable
and not unfairly discriminatory because
the Exchange no longer also provides a
rebate for Public Customer complex
Taker orders, and thus it is no longer the
case that it is not economically feasible
or viable to provide a rebate in these
circumstances. Similarly, the Exchange
believes that its proposal to remove the
language that permitted the Exchange to
not provide a rebate for Public Customer
complex orders that trade with other
Public Customer orders is reasonable,
equitable and not unfairly
discriminatory because the Exchange
again no longer provides a rebate for
Public Customer complex Taker orders,
and thus it is no longer the case that it
is not economically feasible or viable to
provide a rebate in these circumstances.
The Exchange also believes this
Price List, which lists fees for Customer orders that
remove liquidity in Penny Pilot options at $0.48 per
contract and non-Penny Pilot options at $0.85 per
contract.
10 See C2 Fees Schedule, Section 1A and NOM
Price List.
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proposed rule change is reasonable,
equitable and not unfairly
discriminatory because all marketparticipants entitled to receive a rebate
when acting as a Maker in simple and
complex orders when trading against
non-Public Customers will also receive
the rebate when trading with a Public
Customer order.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
C2 does not believe that the proposed
rule changes will impose any burden on
competition that are not necessary or
appropriate in furtherance of the
purposes of the Act. The Exchange does
not believe that the proposed rule
change will impose any burden on
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because,
while different fees and rebates are
assessed to different market participants
in some circumstances, these different
market participants have different
obligations and different circumstances
as discussed above. The Exchange
believes this proposal will not cause an
unnecessary burden on intermarket
competition because the Taker fee
amounts for complex orders in all
equity, multiply-listed index, ETF and
ETN options classes (except RUT) is
similar to fees assessed at other
exchanges.11 To the extent that the
proposed changes make C2 a more
attractive marketplace for market
participants at other exchanges, such
market participants are welcome to
become C2 market participants.
Additionally, the Exchange does not
believe amending the Fees Schedule so
that all Maker rebates will apply to all
orders (including orders that trade with
Public Customer complex orders) will
impose any burden on intramarket
competition because all marketparticipants entitled to receive a rebate
when acting as a Maker when trading
against non-Public Customers will
receive the rebate when trading with a
Public Customer order. The Exchange
does not believe amending the Fees
Schedule so that all Maker rebates will
apply to all orders (including orders that
trade with Public Customer complex
orders) will impose any burden on
intermarket competition because it only
applies to trading on the Exchange and
because to the extent the availability of
11 See e.g., See NYSE Arca Options Fee Schedule,
which lists, for electronic executions in Penny Pilot
issues, (1) Customer Taker fee of $0.47, (2) MarketMaker Taker fee of $0.49, and (3) Firm and Broker
Dealer Taker fee of $0.49; and for electronic
executions in non-Penny Pilot issues, (1) Customer
Taker fee of $0.85, (2) Market-Maker Taker fee of
$0.87, and (3) Firm and Broker Taker fee of $0.89.
PO 00000
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19387
these rebates make C2 a more attractive
marketplace for market participants at
other exchanges, such market
participants are welcome to become C2
market participants.
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 12 and paragraph (f) of Rule
19b–4 13 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.
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–
C2–2015–005 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–C2–2015–005. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
12 15
13 17
E:\FR\FM\10APN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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Federal Register / Vol. 80, No. 69 / Friday, April 10, 2015 / Notices
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–
2015–005 and should be submitted on
or before May 1, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Brent J. Fields,
Secretary.
[FR Doc. 2015–08203 Filed 4–9–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74654; File No. SR–CBOE–
2015–034]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Delay the
Implementation Date of the Rule
Change To Allow Market Orders To
Sell in No-bid Series To Be Entered
Into the Electronic Order Book From a
PAR Workstation
mstockstill on DSK4VPTVN1PROD with NOTICES
April 6, 2015.
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 April 1,
2015, Chicago Board Options Exchange,
Incorporated (the ‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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20:09 Apr 09, 2015
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change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 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
There is no proposed change to the
rule language.
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
On October 22, 2014, rule change SR–
CBOE–2014–067 5 became effective. The
filing amended Rule 6.13(b)(vi) to
increase the $0.30 parameter to $0.50.
Although not contained in the amended
rule text, the filing also amended Rule
6.13(b)(vi) to allow market orders to sell
in no-bid series that get routed to a PAR
workstation of a TPH User to be entered
into the electronic order book at the
minimum increment.6 The filing
indicated that the implementation date
of the amendments would be no later
than 180 days following the effective
date of the filing (i.e., no later than April
28, 2015). Although the parameter
change from $0.30 to $0.50 was
implemented,7 the Exchange is still in
the process of making the necessary
modifications to the CBOE Hybrid
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 Securities Exchange Act Release No. 34–73487
(October 31, 2014), 79 FR 66016 (November 6, 2014)
(SR–CBOE–2014–067).
6 Id. at 66017.
7 See CBOE Regulatory Circular RG15–002—
Automatic Order Handling Process in No-bid Series
(January 2, 2015).
4 17
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System (the ‘‘System’’) to allow market
orders to sell in no-bid series that get
routed to a PAR workstation to be
entered into the electronic order book at
the minimum increment.
The Exchange does not believe the
modifications to the System will be
completed prior to the current April
28th deadline; therefore, the Exchange
seeks to delay the implementation date
deadline for the portion of SR–CBOE–
2014–067 related to allowing market
orders to sell in no-bid series that were
routed to a PAR workstation to be
entered into the electronic order book.
The Exchange will announce the
implementation date in a Regulatory
Circular to be published no later than 90
days following the effective date of this
filing. The implementation date will be
no later than 180 days following the
effective date of this filing.
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 the Section
6(b)(5) 9 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.
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.
In particular, the Exchange believes
delaying the implementation deadline
to allow the Exchange the necessary
time to finish the modifications to the
System, which will provide the
functionality to route market orders to
sell in no-bid series from a PAR
workstation to an electronic order book,
helps protect investors by ensuring the
PAR workstation functions as intended.
8 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
10 Id.
9 15
E:\FR\FM\10APN1.SGM
10APN1
]]>Agencies
[Federal Register Volume 80, Number 69 (Friday, April 10, 2015)]
[Notices]
[Pages 19385-19388]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-08203]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74655; File No. SR-C2-2015-005]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend the Fees Schedule
April 6, 2015.
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 April 1, 2015 C2 Options Exchange, Incorporated (the
``Exchange'' or ``C2'') 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 the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its Fees Schedule. The text of the
proposed
[[Page 19386]]
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, effective April
1, 2015. First, the Exchange proposes to amend Taker fees for complex
orders in all equity, multiply-listed index, ETF and ETN options
classes (except Russell 2000 Index (``RUT'')). Currently, for such
orders, the Exchange provides a rebate of $0.35 per contract for Public
Customers and assesses a fee of $0.45 per contract to C2 Market-Makers
as well as to orders from all other origins (Professional Customer,
Firm, Broker/Dealer, non-C2 Market-Maker, JBO, etc.). The Exchange
proposes to eliminate the rebate for Public Customers and establish a
fee of $0.47 per contract for Public Customer Orders. Additionally, the
Exchange proposes to increase the Taker fee amounts for all other
origins by $0.03, resulting in a fee of $0.48 per contract for all
other origins, including C2 Market-Makers. The Exchange notes that the
proposed Taker fee amounts are the same amounts currently assessed for
simple, non-complex orders in equity, multiply-listed index, ETF and
ETN options classes and are also in line with Taker fees assessed at
other Exchanges.\3\
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\3\ See, e.g., C2 Fees Schedule, Section 1A (Transaction Fees
for Simple, Non-Complex Orders), and NYSE Arca Options Fee Schedule,
which lists, for electronic executions in Penny Pilot issues, (1)
Customer Taker fee of $0.47, (2) Market Maker Taker fee of $0.49,
and (3) Firm and Broker Dealer Taker fee of $0.49; and for
electronic executions in non-Penny Pilot issues, (1) Customer Taker
fee of $0.85, (2) Market Maker Taker fee of $0.87, and (3) Firm and
Broker Taker fee of $0.89.
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Currently, Section 1A of the Fees Schedule, which sets forth fees
for simple, non-complex orders in all equity, multiply-listed index,
ETF and ETN options classes (other than RUT), includes an asterisk
attached to all Maker Rebates and denotes the following language:
``Rebates do not apply to orders that trade with Public Customer
complex orders. In such a circumstance there will be no rebate or
fee.'' The Exchange notes that it had adopted this language since
Public Customer Taker complex orders also receive a rebate and thus, if
the Exchange had offered the rebate when a Public Customer Maker simple
order trades with another Public Customer complex order, the Exchange
would be providing a rebate on both sides of the order (which would not
have been economically feasible or viable it would result in a net
negative for the Exchange). As such, no fee or rebate is applied in
these circumstances. Similarly, the Exchange notes that Section 1B of
the Fees Schedule, which sets forth fees for complex orders in all
equity, multiply-listed index, ETF and ETN options classes (other than
RUT), includes an asterisk attached to Public Customer Rebates and
denotes the following language: ``The rebate 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.'' Again the Exchange notes that Public Customers are currently
entitled to a rebate regardless of whether they were a Maker or a Taker
for complex orders and thus, if the Exchange offered the rebate when a
Public Customer complex order trades with another Public Customer
complex order, the Exchange would be providing a rebate on both sides
of the order. As noted above, it would not have been economically
feasible or viable to provide a rebate on an order that is trading with
an order that is not generating a fee and therefore, in these
circumstances, no fee or rebate is applied. However, in light of the
Exchange eliminating the Taker rebate for Public Customers complex
orders and replacing it with a fee, the Exchange will no longer be
providing a rebate on both sides of a transaction in instances in which
a simple, non-complex Maker order trades with a Public Customer complex
order or where a Public Customer Complex order trades with another
Public Customer complex order. Consequently, as the Exchange will only
be providing a rebate on one side of a transaction for these orders,
the Exchange believes that this exception is no longer necessary and
proposes to eliminate the asterisk and asterisked language from the
Fees Schedule.
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.\4\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \5\ 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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ 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,\7\ 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.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
\6\ Id.
\7\ 15 U.S.C. 78f(b)(4).
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The Exchange believes that the proposed increases to Taker fees for
complex orders in all equity, multiply-listed index, ETF and ETN
options classes (except RUT) are reasonable because the proposed fee
amounts are equivalent to Taker fees for complex [sic] orders in all
equity, multiply-listed index, ETF and ETN options classes (except
RUT).\8\ The Exchange believes it is reasonable to eliminate the Public
Customer rebate for Taker complex orders because Public Customer Taker
simple orders also do not offer a rebate. Additionally, other exchanges
also provide for a fee instead of a rebate for Public Customer Taker
orders.\9\ The
[[Page 19387]]
Exchange believes the proposed Public Customer Taker fee amount for
complex orders is reasonable because the proposed amount is equivalent
to the amount currently assessed for Public Customer Taker simple
orders on C2, as well as the amount assessed on another exchange for
Public Customer Taker orders.\10\
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\8\ See C2 Fees Schedule, Section 1A (Transaction Fees for
Simple, Non-Complex Orders)
\9\ See NYSE Arca Options Fee Schedule, which lists, for
electronic executions in Penny Pilot issues a Customer Taker fee of
$0.47 in non-Penny Pilot issues a Customer Taker fee of $0.85. See
also, NOM Price List, which lists fees for Customer orders that
remove liquidity in Penny Pilot options at $0.48 per contract and
non-Penny Pilot options at $0.85 per contract.
\10\ See C2 Fees Schedule, Section 1A and NOM Price List.
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The Exchange believes that it is equitable and not unfairly
discriminatory to assess lower fees to Public Customers as compared to
other market participants because Public Customer order flow enhances
liquidity on the Exchange for the benefit of all market participants.
Specifically, Public Customer liquidity benefits all market
participants by providing more trading opportunities, which attracts
Market-Makers. An increase in the activity of these market participants
in turn facilitates tighter spreads, which may cause an additional
corresponding increase in order flow from other market participants.
Additionally, the proposed fee change applying to Public Customers will
be applied equally to all Public Customers.
The Exchange believes that the differences between the Maker
rebates and fees and Taker fees for complex orders are reasonable,
equitable and not unfairly discriminatory because they are intended to
cover the costs associated with operating the Exchange's trading
systems necessary to provide these trading opportunities.
The Exchange believes that amending the Fees Schedule so that Maker
rebates will apply to all orders, including orders that trade with
Public Customer complex orders is reasonable, equitable and not
unfairly discriminatory because the Exchange no longer also provides a
rebate for Public Customer complex Taker orders, and thus it is no
longer the case that it is not economically feasible or viable to
provide a rebate in these circumstances. Similarly, the Exchange
believes that its proposal to remove the language that permitted the
Exchange to not provide a rebate for Public Customer complex orders
that trade with other Public Customer orders is reasonable, equitable
and not unfairly discriminatory because the Exchange again no longer
provides a rebate for Public Customer complex Taker orders, and thus it
is no longer the case that it is not economically feasible or viable to
provide a rebate in these circumstances. The Exchange also believes
this proposed rule change is reasonable, equitable and not unfairly
discriminatory because all market-participants entitled to receive a
rebate when acting as a Maker in simple and complex orders when trading
against non-Public Customers will also receive the rebate when trading
with a Public Customer order.
B. Self-Regulatory Organization's Statement on Burden on Competition
C2 does not believe that the proposed rule changes will impose any
burden on competition that are not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed rule change will impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because, while different fees and rebates are
assessed to different market participants in some circumstances, these
different market participants have different obligations and different
circumstances as discussed above. The Exchange believes this proposal
will not cause an unnecessary burden on intermarket competition because
the Taker fee amounts for complex orders in all equity, multiply-listed
index, ETF and ETN options classes (except RUT) is similar to fees
assessed at other exchanges.\11\ To the extent that the proposed
changes make C2 a more attractive marketplace for market participants
at other exchanges, such market participants are welcome to become C2
market participants.
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\11\ See e.g., See NYSE Arca Options Fee Schedule, which lists,
for electronic executions in Penny Pilot issues, (1) Customer Taker
fee of $0.47, (2) Market-Maker Taker fee of $0.49, and (3) Firm and
Broker Dealer Taker fee of $0.49; and for electronic executions in
non-Penny Pilot issues, (1) Customer Taker fee of $0.85, (2) Market-
Maker Taker fee of $0.87, and (3) Firm and Broker Taker fee of
$0.89.
---------------------------------------------------------------------------
Additionally, the Exchange does not believe amending the Fees
Schedule so that all Maker rebates will apply to all orders (including
orders that trade with Public Customer complex orders) will impose any
burden on intramarket competition because all market-participants
entitled to receive a rebate when acting as a Maker when trading
against non-Public Customers will receive the rebate when trading with
a Public Customer order. The Exchange does not believe amending the
Fees Schedule so that all Maker rebates will apply to all orders
(including orders that trade with Public Customer complex orders) will
impose any burden on intermarket competition because it only applies to
trading on the Exchange and because to the extent the availability of
these rebates make C2 a more attractive marketplace for market
participants at other exchanges, such market participants are welcome
to become C2 market participants.
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 \12\ and paragraph (f) of Rule 19b-4 \13\
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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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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-C2-2015-005 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-C2-2015-005. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/
[[Page 19388]]
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-
2015-005 and should be submitted on or before May 1, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-08203 Filed 4-9-15; 8:45 am]
BILLING CODE 8011-01-P
