Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 8.2, 9533-9535 [2016-03959]
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Federal Register / Vol. 81, No. 37 / Thursday, February 25, 2016 / Notices
list and trade shares (‘‘Shares’’) of the
following under NYSE Arca Equities
Rule 8.600: RiverFront Dynamic
Unconstrained Income ETF and
RiverFront Dynamic Core Income ETF.
The Commission published notice of the
proposed rule change in the Federal
Register on January 6, 2016.3 On
January 19, 2016, the Exchange
submitted Amendment No. 1 to the
proposed rule change, and on January
29, 2016, the Exchange submitted
Amendment No. 2 to the proposed rule
change.4 The Commission received no
comment letters on the proposed rule
change.
Section 19(b)(2) of the Act 5 provides
that, within 45 days of the publication
of 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 April 5,
2016, 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–
NYSEArca-2015–125), as modified by
Amendment Nos. 1 and 2.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Brent J. Fields,
Secretary.
[FR Doc. 2016–03945 Filed 2–24–16; 8:45 am]
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BILLING CODE 8011–01–P
3 See Securities Exchange Act Release No. 34–
76798 (December 30, 2015), 81 FR 526 (January 6,
2016) (NYSEArca–2015–125).
4 Amendment No. 1 replaced and superseded the
original filing in its entirety. Amendment No. 1 is
available at https://www.sec.gov/comments/srnysearca-2015-125/nysearca2015125-1.pdf.
Amendment No. 2 replaced and superseded the
original filing, as modified by Amendment No. 1,
in its entirety. Amendment No. 2 is available at
https://www.sec.gov/comments/sr-nysearca-2015125/nysearca2015125-2.pdf.
5 15 U.S.C. 78s(b)(2).
6 Id.
7 17 CFR 200.30–3(a)(31).
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SECURITIES AND EXCHANGE
COMMISSION
Option class
All options .......................
[Release No. 34–77194; File No. SR–C2–
2016–002]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend Rule 8.2
February 19, 2016.
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 February
10, 2016, C2 Options Exchange,
Incorporated (‘‘C2’’ or the ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend C2
Rule 8.2 relating to the Market-Maker
registration cost for all option classes.
The text of the proposed rule change is
provided below.
(additions are italicized; deletions are
[bracketed])
*
*
*
*
*
C2 Options Exchange, Incorporated
Rules
*
*
*
*
*
Rule 8.2. Continuing Market-Maker
Registration
(a)–(c) No change.
(d) Market-Maker Option Class
Registration. Absent an exemption by
the Exchange, an option class
registration of a Market-Maker confers
the right to quote in that product. A
Market-Maker may change its registered
classes upon advance notification to the
Exchange in a form and manner
prescribed by the Exchange.
Each Trading Permit held by a
Market-Maker has a registration credit of
1.0. A Market-Maker may select for each
Trading Permit the Market-Maker holds
any combination of option classes,
whose aggregate registration cost does
not exceed 1.0. Option class
‘‘registration costs’’ are set forth below:
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00115
Fmt 4703
Sfmt 4703
9533
Registration cost
[.001].0001
(e) No change.
*
*
*
*
The text of the proposed rule change
is also available on the Exchange’s Web
site (https://www.cboe.com/AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
*
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this rule change is to
amend C2 Rule 8.2 relating to the
Market-Maker registration cost for all
option classes. All option classes on C2
currently have a registration cost of
.001. C2 proposes to reduce the
registration cost to .0001, effective
February 22, 2016, which would apply
to all existing classes that currently
trade on C2 and to all classes listed in
the future.
In support of this filing, the Exchange
states it intends to add an additional
2,000 option classes beginning the week
of February 22, 2016. By reducing the
registration cost for existing classes,
Market-Makers could utilize the excess
registration capacity of their current
trading permits to quote in these
additional option classes when they
begin trading without having to obtain
any additional trading permits, which
promotes competition and efficiency.
The Exchange will announce its plan
to reduce the registration cost for all
option classes via Regulatory Circular at
least one business day before February
22, 2016, which the Exchange believes
provides Market-Makers with sufficient
notice.
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2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act. 3 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 4 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) 5 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
that reducing the registration cost for all
option classes will foster competition
and efficiency by enabling MarketMakers to use the excess registration
capacity to quote in additional option
classes. The Exchange believes this may
result in more liquidity and competitive
pricing, which ultimately benefits
investors. Additionally, the proposed
rule change does not result in unfair
discrimination, as the reduced
registration cost will apply to all
Market-Makers.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
C2 does not believe that the proposed
rule change will impose any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act. The proposed rule
change will apply to all Market-Makers
(it is applicable only to Market-Makers,
since only Market-Makers can register to
quote in classes). C2 does not believe
that the proposed rule change will
impose any burden on intermarket
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act because the
proposed rule change only applies to
the C2 Market-Maker registration
process. C2 believes that the proposed
rule change will enhance competition
among market participants and benefit
3 15
U.S.C. 78f(b).
4 15 U.S.C. 78f(b)(5).
5 Id.
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investors and the marketplace because
Market-Makers will be able to use the
excess registration capacity to quote in
additional option classes and increase
overall liquidity on the Exchange.
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 Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(6) thereunder.7 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange has stated that it
intends to add an additional 2,000
option classes on February 22, 2016.
The Exchange has argued that waiving
the operative delay would allow it to
reduce the registration cost for all
option classes on that date, which
would allow Market-Makers to utilize
their excess registration capacity to
quote and provide liquidity in these
additional option classes on their first
trading day without having to obtain
additional trading permits. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because it would provide
Market-Makers with the ability to quote
and provide liquidity in the new option
classes that C2 seeks to list without
necessarily requiring Market Makers to
6 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
7 17
PO 00000
Frm 00116
Fmt 4703
Sfmt 4703
purchase an additional trading permit to
do so. Market Makers could thus be
incentivized to begin making markets in
the new classes without delay, which
could enhance liquidity in these new
classes to the potential benefit of
investors. For this reason, the
Commission hereby waives the 30-day
operative delay requirement and
designates the proposed rule change as
operative upon filing.8
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–
C2–2016–002 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–C2–2016–002. 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
8 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
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Federal Register / Vol. 81, No. 37 / Thursday, February 25, 2016 / Notices
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
offices 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–
2016–002, and should be submitted on
or before March 17, 2016.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to list and
trade shares of the following under
NYSE Arca Equities Rule 8.600
(‘‘Managed Fund Shares’’): RiverFront
Dynamic US Dividend Advantage ETF
and RiverFront Dynamic US Flex-Cap
ETF. The proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
BILLING CODE 8011–01–P
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
SECURITIES AND EXCHANGE
COMMISSION
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Brent J. Fields,
Secretary.
[FR Doc. 2016–03959 Filed 2–24–16; 8:45 am]
[Release No. 34–77183; File No. SR–
NYSEArca–2016–28]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change To List and Trade Shares
of RiverFront Dynamic US Dividend
Advantage ETF and RiverFront
Dynamic US Flex-Cap ETF Under NYSE
Arca Equities Rule 8.600
mstockstill on DSK4VPTVN1PROD with NOTICES
February 19, 2016.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on February
5, 2016, NYSE Arca, Inc. (the
‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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1. Purpose
The Exchange proposes to list and
trade shares (‘‘Shares’’) of the following
under NYSE Arca Equities Rule 8.600,4
which governs the listing and trading of
Managed Fund Shares: 5 RiverFront
4 The Commission has previously approved
listing and trading on the Exchange of actively
managed funds under Rule 8.600. See, e.g.,
Securities Exchange Act Release Nos. 57801 (May
8, 2008), 73 FR 27878 (May 14, 2008) (SR–
NYSEArca–2008–31) (order approving Exchange
listing and trading of twelve actively-managed
funds of the WisdomTree Trust); 66321 (February
3, 2012), 77 FR 6850 (February 9, 2012) (SR–
NYSEArca–2011–95) (order approving listing and
trading of PIMCO Total Return Exchange Traded
Fund); 66670 (March 28, 2012), 77 FR 20087 (April
3, 2012) (SR–NYSEArca–2012–09) (order approving
listing and trading of PIMCO Global Advantage
Inflation-Linked Bond Strategy Fund).
5 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) (‘‘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
Investment Company Units, listed and traded on
the Exchange under NYSE Arca Equities Rule
5.2(j)(3), 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.
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
9535
Dynamic US Dividend Advantage ETF
and RiverFront Dynamic US Flex-Cap
ETF, each referred to as a ‘‘Fund’’ and
collectively as the ‘‘Funds.’’ The Funds
are each a series of ALPS ETF Trust
(‘‘Trust’’), a statutory trust organized
under the laws of the State of Delaware
and registered with the Commission as
an open-end management investment
company.6 The Funds will be managed
by ALPS Advisors, Inc. (‘‘ALPS
Advisors’’ or the ‘‘Adviser’’). RiverFront
Investment Group, LLC (‘‘RiverFront’’)
is the investment sub-adviser for the
Funds (the ‘‘Sub-Adviser’’).
Commentary .06 to Rule 8.600
provides that, if the investment adviser
to the investment company issuing
Managed Fund Shares is affiliated with
a broker-dealer, 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.7 In addition,
6 The Trust is registered under the 1940 Act. On
December 4, 2015, the Trust filed with the
Commission an amendment to its registration
statement on Form N–1A under the Securities Act
of 1933 (15 U.S.C. 77a) (‘‘Securities Act’’) and the
1940 Act relating to the Funds (File Nos. 333–
148826 and 811–22175) (the ‘‘Registration
Statement’’). The description of the operation of the
Trust and the Funds herein is based, in part, on the
Registration Statement. In addition, the
Commission has issued an order granting certain
exemptive relief to the Trust and the Adviser (as
defined below) under the 1940 Act. See Investment
Company Act Release No. 30553 (June 11, 2013)
(File No. 812–13884) (‘‘Exemptive Order’’). The
Funds will be offered in reliance upon the
Exemptive Order issued to the Trust and the
Adviser.
7 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 Sub-Adviser and their
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. The Exchange represents that the Adviser and
Sub-Adviser, and their respective related personnel,
are subject to Investment Advisers Act Rule 204A–
1. 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
implementation; and (iii) designated an individual
(who is a supervised person) responsible for
administering the policies and procedures adopted
under subparagraph (i) above.
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]]>Agencies
[Federal Register Volume 81, Number 37 (Thursday, February 25, 2016)]
[Notices]
[Pages 9533-9535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03959]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77194; File No. SR-C2-2016-002]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Amend Rule 8.2
February 19, 2016.
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 February 10, 2016, C2 Options Exchange, Incorporated (``C2'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\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 C2 Rule 8.2 relating to the Market-
Maker registration cost for all option classes. The text of the
proposed rule change is provided below.
(additions are italicized; deletions are [bracketed])
* * * * *
C2 Options Exchange, Incorporated Rules
* * * * *
Rule 8.2. Continuing Market-Maker Registration
(a)-(c) No change.
(d) Market-Maker Option Class Registration. Absent an exemption by
the Exchange, an option class registration of a Market-Maker confers
the right to quote in that product. A Market-Maker may change its
registered classes upon advance notification to the Exchange in a form
and manner prescribed by the Exchange.
Each Trading Permit held by a Market-Maker has a registration
credit of 1.0. A Market-Maker may select for each Trading Permit the
Market-Maker holds any combination of option classes, whose aggregate
registration cost does not exceed 1.0. Option class ``registration
costs'' are set forth below:
------------------------------------------------------------------------
Option class Registration cost
------------------------------------------------------------------------
All options.......................................... [.001].0001
------------------------------------------------------------------------
(e) No change.
* * * * *
The text of the proposed rule change is also available on the
Exchange's Web site (https://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this rule change is to amend C2 Rule 8.2 relating to
the Market-Maker registration cost for all option classes. All option
classes on C2 currently have a registration cost of .001. C2 proposes
to reduce the registration cost to .0001, effective February 22, 2016,
which would apply to all existing classes that currently trade on C2
and to all classes listed in the future.
In support of this filing, the Exchange states it intends to add an
additional 2,000 option classes beginning the week of February 22,
2016. By reducing the registration cost for existing classes, Market-
Makers could utilize the excess registration capacity of their current
trading permits to quote in these additional option classes when they
begin trading without having to obtain any additional trading permits,
which promotes competition and efficiency.
The Exchange will announce its plan to reduce the registration cost
for all option classes via Regulatory Circular at least one business
day before February 22, 2016, which the Exchange believes provides
Market-Makers with sufficient notice.
[[Page 9534]]
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act. \3\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \4\ 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) \5\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78f(b).
\4\ 15 U.S.C. 78f(b)(5).
\5\ Id.
---------------------------------------------------------------------------
In particular, the Exchange believes that reducing the registration
cost for all option classes will foster competition and efficiency by
enabling Market-Makers to use the excess registration capacity to quote
in additional option classes. The Exchange believes this may result in
more liquidity and competitive pricing, which ultimately benefits
investors. Additionally, the proposed rule change does not result in
unfair discrimination, as the reduced registration cost will apply to
all Market-Makers.
B. Self-Regulatory Organization's Statement on Burden on Competition
C2 does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change will
apply to all Market-Makers (it is applicable only to Market-Makers,
since only Market-Makers can register to quote in classes). C2 does not
believe that the proposed rule change will impose any burden on
intermarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because the proposed rule change
only applies to the C2 Market-Maker registration process. C2 believes
that the proposed rule change will enhance competition among market
participants and benefit investors and the marketplace because Market-
Makers will be able to use the excess registration capacity to quote in
additional option classes and increase overall liquidity on the
Exchange.
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 Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Exchange has stated that it intends to add an additional
2,000 option classes on February 22, 2016. The Exchange has argued that
waiving the operative delay would allow it to reduce the registration
cost for all option classes on that date, which would allow Market-
Makers to utilize their excess registration capacity to quote and
provide liquidity in these additional option classes on their first
trading day without having to obtain additional trading permits. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest
because it would provide Market-Makers with the ability to quote and
provide liquidity in the new option classes that C2 seeks to list
without necessarily requiring Market Makers to purchase an additional
trading permit to do so. Market Makers could thus be incentivized to
begin making markets in the new classes without delay, which could
enhance liquidity in these new classes to the potential benefit of
investors. For this reason, the Commission hereby waives the 30-day
operative delay requirement and designates the proposed rule change as
operative upon filing.\8\
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\8\ For purposes only of waiving the 30-day operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
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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-C2-2016-002 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-C2-2016-002. 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
[[Page 9535]]
proposed rule change between the Commission and any person, other than
those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal offices 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-C2-2016-002,
and should be submitted on or before March 17, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-03959 Filed 2-24-16; 8:45 am]
BILLING CODE 8011-01-P
