Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule, 63233-63235 [2016-22026]
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<![CDATA[
63233
Federal Register / Vol. 81, No. 178 / Wednesday, September 14, 2016 / Notices
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–
Phlx–2016–91 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–Phlx–2016–91. 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
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2016–91, and should be submitted on or
before October 5, 2016.
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
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Brent J. Fields,
Secretary.
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.
[FR Doc. 2016–22025 Filed 9–13–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78785; File No. SR–C2–
2016–017]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule To
Amend the Fees Schedule
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
September 8, 2016.
The Exchange proposes to amend its
Fees Schedule. Particularly, the
Exchange proposes to amend Taker fees
for simple, non-complex orders in all
equity, multiply-listed index, ETF and
ETN options classes (except Russell
2000 Index (‘‘RUT’’)) in both penny and
non-penny classes. The Taker fees
would be increased by $0.02 per
contract in penny classes and by $0.02
for customers (‘‘C’’ origin code) and by
$0.05 for all other origin codes in nonpenny classes. Specifically, the
Exchange proposes to adopt the
following rates. Listed rates are per
contract.
1. Purpose
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
September 1, 2016, 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.
Penny classes
asabaliauskas on DSK3SPTVN1PROD with NOTICES
Current
Public Customer ..............................................................................................................
C2 Market-Maker .............................................................................................................
All Other Origins (Professional Customer, Firm, Broker/Dealer, non-C2 Market-Maker,
JBO, etc.) .....................................................................................................................
Trades on the Open ........................................................................................................
Non-penny
Proposed
.49
.50
.83
.85
.85
.90
.48
($0.00)
.50
($0.00)
.88
($0.00)
.93
($0.00)
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Proposed
.47
.48
8 17
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Federal Register / Vol. 81, No. 178 / Wednesday, September 14, 2016 / Notices
The Exchange notes that the proposed
Taker fee amounts are the same as, or in
line with, the amounts currently
assessed for simple, non-complex orders
in equity, multiply-listed index, ETF
and ETN options classes assessed at
other Exchanges.3
asabaliauskas on DSK3SPTVN1PROD 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.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 increase to Taker fees for
simple, non-complex orders in all
equity, multiply-listed index, ETF and
ETN options classes (except RUT) are
reasonable because the proposed fee
amounts are the same as, or in line with,
the amounts assessed for similar
transactions at other exchanges.8
The Exchange believes that it is
equitable and not unfairly
3 See e.g., NYSE Arca Options Fee Schedule,
which lists, for electronic executions in Penny Pilot
issues, (1) Customer Taker fee of $0.49, (2) MarketMaker Taker fee of $0.50, and (3) Firm and Broker
Dealer Taker fee of $0.50; and for electronic
executions in non-Penny Pilot issues, (1) Customer
Taker fee of $0.85, (2) Market-Maker Taker fee of
$1.08, and (3) Firm and Broker Taker fee of $1.08.
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).
8 See supra note 3.
VerDate Sep<11>2014
20:55 Sep 13, 2016
Jkt 238001
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 it is
equitable and not unfairly
discriminatory to assess lower fees in
non-penny classes to Market-Makers as
compared to other market participants
other than Public Customers because
Market-Makers, unlike other C2 market
participants, take on a number of
obligations, including quoting
obligations, that other market
participants do not have. Further, these
lower fees offered to Market-Makers are
intended to incent Market-Makers to
quote and trade more on the Exchange,
thereby providing more trading
opportunities for all market
participants. Finally, all fee amounts
listed as applying to Market-Makers will
be applied equally to all Market-Makers.
Similarly, the Exchange believes it is
equitable and not unfairly
discriminatory to assess higher fees to
all other origins (i.e., Professional
Customer, Firm, Broker/Dealer, non-C2
Market-Maker, JBO, etc.) in non-penny
classes. Particularly, the Exchange notes
that it believes it’s equitable and not
unfairly discriminatory to assess a
higher fee than it does of MarketMakers, because these market
participants do not have the same
obligations, such as quoting, as MarketMakers do. The Exchange believes it’s
equitable and not unfairly
discriminatory to assess a higher fee
than it does to Public Customers,
because, as described above, there is a
history of providing preferential pricing
to Public Customers as Public Customer
liquidity benefits all market participants
by providing more trading
opportunities. The Exchange notes that
the proposed fee amounts listed for nonpenny classes will also be applied
equally to each of these market
participants (i.e., Professional
Customers, Firms, Broker/Dealers, nonC2 Market-Makers, JBOs, etc. will be
assessed the same amount). It should
also be noted that all fee amounts
described herein are intended to attract
PO 00000
Frm 00069
Fmt 4703
Sfmt 4703
greater order flow to the Exchange,
which should therefore serve to benefit
all Exchange market participants.
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 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 proposed Taker
fee amounts are similar to fees assessed
at other exchanges for similar
transactions.9 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.
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 10 and paragraph (f) of Rule
19b–4 11 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.
9 See
supra note 3.
U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f).
10 15
E:\FR\FM\14SEN1.SGM
14SEN1
Federal Register / Vol. 81, No. 178 / Wednesday, September 14, 2016 / Notices
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–
C2–2016–017 on the subject line.
Paper Comments
asabaliauskas on DSK3SPTVN1PROD with NOTICES
• 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–C2–2016–017. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–C2–
2016–017, and should be submitted on
or before October 5, 2016.
VerDate Sep<11>2014
20:55 Sep 13, 2016
Jkt 238001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Brent J. Fields,
Secretary.
[FR Doc. 2016–22026 Filed 9–13–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78789; File No. SR–
BatsEDGX–2016–52]
Self-Regulatory Organizations; Bats
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change to Fees for Use
of Bats EDGX Exchange, Inc.
September 8, 2016.
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
30, 2016, Bats EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposed rule change as
one establishing or changing a member
due, fee, or other charge imposed by the
Exchange under Section 19(b)(3)(A)(ii)
of the Act 3 and Rule 19b–4(f)(2)
thereunder,4 which renders the
proposed rule change effective upon
filing with the Commission. 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 filed a proposal to
amend the fee schedule applicable to
Members 5 and non-Members of the
Exchange pursuant to EDGX Rules
15.1(a) and (c).
The text of the proposed rule change
is available at the Exchange’s Web site
at www.batstrading.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(2).
5 A Member is defined as ‘‘any registered broker
or dealer that has been admitted to membership in
the Exchange.’’ See Exchange Rule 1.5(n).
1 15
PO 00000
Frm 00070
Fmt 4703
Sfmt 4703
63235
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 parts 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 Exchange proposes to amend its
fee schedule to remove fee code ZA
from footnote 1.
Currently, the Exchange determines
the liquidity adding rebate that it will
provide to Members using the
Exchange’s fee code and tiered pricing
structure. Retail orders which add
liquidity yielding fee code ZA receive a
rebate of $0.0034 in securities priced at
or above $1.00, and a rebate of $0.00003
in securities priced below $1.00. The
Exchange offers additional rebates
depending on the volume tiers for
which such Member qualifies. As is the
case with any rebate on the Fee
Schedule, to the extent that a Member
qualifies for higher rebates than those
provided under a volume tier, the
higher rebate shall apply. Footnote 1
offers volume tiered rebates ranging
from $0.0025 to $0.0033 per share to
orders yielding fee codes B, V, Y, 3, 4
and ZA. In this case, the corresponding
tiered volume rebates are lower than the
standard rebate and therefore do not
result in an additional benefit. As a
point of clarification, the Exchange
proposes to remove fee code ZA from
Footnote 1.
Implementation Date
The Exchange proposes to implement
these amendments to its fee schedule as
of September 1, 2016.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,6
in general, and furthers the objectives of
Section 6(b)(4),7 in particular, as it is
designed to provide for the equitable
6 15
7 15
E:\FR\FM\14SEN1.SGM
U.S.C. 78f.
U.S.C. 78f(b)(4).
14SEN1
]]>Agencies
[Federal Register Volume 81, Number 178 (Wednesday, September 14, 2016)]
[Notices]
[Pages 63233-63235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22026]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78785; File No. SR-C2-2016-017]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule To
Amend the Fees Schedule
September 8, 2016.
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 September 1, 2016, 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 the
Substance of the Proposed Rule Change
The Exchange proposes to amend its Fees Schedule. The text of the
proposed rule change is available on the Exchange's Web site (https://www.c2exchange.com/Legal/), at the Exchange's Office of the Secretary,
and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend its Fees Schedule. Particularly, the
Exchange proposes to amend Taker fees for simple, non-complex orders in
all equity, multiply-listed index, ETF and ETN options classes (except
Russell 2000 Index (``RUT'')) in both penny and non-penny classes. The
Taker fees would be increased by $0.02 per contract in penny classes
and by $0.02 for customers (``C'' origin code) and by $0.05 for all
other origin codes in non-penny classes. Specifically, the Exchange
proposes to adopt the following rates. Listed rates are per contract.
----------------------------------------------------------------------------------------------------------------
Penny classes Non-penny
---------------------------------------------------
Current Proposed Current Proposed
----------------------------------------------------------------------------------------------------------------
Public Customer............................................. .47 .49 .83 .85
C2 Market-Maker............................................. .48 .50 .85 .90
All Other Origins (Professional Customer, Firm, Broker/ .48 .50 .88 .93
Dealer, non-C2 Market-Maker, JBO, etc.)....................
Trades on the Open.......................................... ($0.00) ($0.00) ($0.00) ($0.00)
----------------------------------------------------------------------------------------------------------------
[[Page 63234]]
The Exchange notes that the proposed Taker fee amounts are the same as,
or in line with, the amounts currently assessed for simple, non-complex
orders in equity, multiply-listed index, ETF and ETN options classes
assessed at other Exchanges.\3\
---------------------------------------------------------------------------
\3\ See e.g., NYSE Arca Options Fee Schedule, which lists, for
electronic executions in Penny Pilot issues, (1) Customer Taker fee
of $0.49, (2) Market-Maker Taker fee of $0.50, and (3) Firm and
Broker Dealer Taker fee of $0.50; and for electronic executions in
non-Penny Pilot issues, (1) Customer Taker fee of $0.85, (2) Market-
Maker Taker fee of $1.08, and (3) Firm and Broker Taker fee of
$1.08.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
The Exchange believes that the proposed increase to Taker fees for
simple, non-complex orders in all equity, multiply-listed index, ETF
and ETN options classes (except RUT) are reasonable because the
proposed fee amounts are the same as, or in line with, the amounts
assessed for similar transactions at other exchanges.\8\
---------------------------------------------------------------------------
\8\ See supra note 3.
---------------------------------------------------------------------------
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 it is equitable and not unfairly
discriminatory to assess lower fees in non-penny classes to Market-
Makers as compared to other market participants other than Public
Customers because Market-Makers, unlike other C2 market participants,
take on a number of obligations, including quoting obligations, that
other market participants do not have. Further, these lower fees
offered to Market-Makers are intended to incent Market-Makers to quote
and trade more on the Exchange, thereby providing more trading
opportunities for all market participants. Finally, all fee amounts
listed as applying to Market-Makers will be applied equally to all
Market-Makers.
Similarly, the Exchange believes it is equitable and not unfairly
discriminatory to assess higher fees to all other origins (i.e.,
Professional Customer, Firm, Broker/Dealer, non-C2 Market-Maker, JBO,
etc.) in non-penny classes. Particularly, the Exchange notes that it
believes it's equitable and not unfairly discriminatory to assess a
higher fee than it does of Market-Makers, because these market
participants do not have the same obligations, such as quoting, as
Market-Makers do. The Exchange believes it's equitable and not unfairly
discriminatory to assess a higher fee than it does to Public Customers,
because, as described above, there is a history of providing
preferential pricing to Public Customers as Public Customer liquidity
benefits all market participants by providing more trading
opportunities. The Exchange notes that the proposed fee amounts listed
for non-penny classes will also be applied equally to each of these
market participants (i.e., Professional Customers, Firms, Broker/
Dealers, non-C2 Market-Makers, JBOs, etc. will be assessed the same
amount). It should also be noted that all fee amounts described herein
are intended to attract greater order flow to the Exchange, which
should therefore serve to benefit all Exchange market participants.
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 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 proposed Taker fee amounts are similar to fees assessed at other
exchanges for similar transactions.\9\ 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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\9\ See supra note 3.
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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 \10\ and paragraph (f) of Rule 19b-4 \11\
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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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f).
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[[Page 63235]]
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-C2-2016-017 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-C2-2016-017. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-C2-2016-017, and should be
submitted on or before October 5, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-22026 Filed 9-13-16; 8:45 am]
BILLING CODE 8011-01-P
