Self-Regulatory Organizations; C2 Options Exchange, Incorporated; Notice of Filing and Immediate Effectiveness of a Proposed Rule To Amend the Fees Schedule, 18790-18792 [2017-08061]
Download as PDF
18790
Federal Register / Vol. 82, No. 76 / Friday, April 21, 2017 / Notices
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
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)(ii) of the Act.35
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
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–Phlx–
2017–29, and should be submitted on or
before May 12, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.36
Brent J. Fields,
Secretary.
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–2017–29 on the subject line.
sradovich on DSK3GMQ082PROD with 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:
[FR Doc. 2017–08056 Filed 4–20–17; 8:45 am]
Self-Regulatory Organizations; C2
Options Exchange, Incorporated;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule To
Amend the Fees Schedule
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–2017–29. 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
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80473; File No. SR–C2–
2017–015]
April 17, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934,1 and
Rule 19b–4 thereunder,2 notice is
hereby given that on April 13, 2017, C2
Options Exchange, Incorporated
(‘‘Exchange’’ or ‘‘C2’’) 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 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
36 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
35 15
U.S.C. 78s(b)(3)(A)(ii).
VerDate Sep<11>2014
17:30 Apr 20, 2017
Jkt 241001
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
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.3 Specifically, the
Exchange is eliminating certain fees
relating to the PULSe workstation. By
way of background, the PULSe
workstation is a front-end order entry
system designed for use with respect to
orders that may be sent to the trading
systems of the Exchange. Exchange
Trading Permit Holders (‘‘TPHs’’) may
also make workstations available to
their customers, which may include
TPHs, non-broker dealer public
customers and non-TPH broker dealers.
The Exchange first proposes to
eliminate the Away-Market Routing
Intermediary fee. This fee is payable by
a Routing Intermediary and only
applicable for away-market routing from
any PULSe workstation for which it
serves as the Routing Intermediary. The
fee is $0.02 per contract or share
equivalent for the first million contracts
or share equivalent executed in a month
for executions on all away markets
aggregated across all such PULSe
workstations, and $0.03 per contract or
share equivalent for each additional
contract or share equivalent executed in
the same month on all away markets.
The Exchange also proposes to
eliminate the C2 Routing fee. The C2
Routing fee is payable by a TPH and
only applicable for routing to C2 from
non-TPH PULSe workstations made
available by the TPH. The fee is $0.02
3 The Exchange initially filed the proposed fee
change on April 3, 2017 (SR–C2–2017–012). On
April 13 [sic], 2017, the Exchange withdrew that
filing and submitted this filing. The Commission
notes that C2 withdrew C2–2017–012 on April 17,
2017.
E:\FR\FM\21APN1.SGM
21APN1
Federal Register / Vol. 82, No. 76 / Friday, April 21, 2017 / Notices
per contract or share equivalent for the
first 1 million contracts or share
equivalent executed in a month on C2
that originate from non-TPH PULSe
workstations made available by the
TPH, and $0.03 per contract or share
equivalent for each additional contract
or share equivalent executed on C2 in
the same month from the non-TPH
PULSe workstations made available by
the TPH. The Exchange notes it no
longer wishes to assess these fees.
Lastly, the Exchange proposes to
eliminate the Routing Intermediary
Inactivity fee. The Routing Intermediary
Inactivity fee would be charged to a
Routing Intermediary in the calendar
year after the year in which the Routing
Intermediary was charged the Routing
Intermediary Certification Fee. The fee
is $5,000/year less the aggregate amount
of Away-Market Routing Intermediary
and C2 Routing fees charged to a
Routing Intermediary during that
calendar year (if Routing Intermediary
was charged less than an aggregate of
$5,000 in Away-Market Routing
Intermediary and C2 Routing fees that
year).4 As the Exchange is eliminating
both the Away-Market Routing
Intermediary and C2 Routing fees and
the inactivity fee is based in part on the
amount of those fees assessed, the
Exchange proposes to eliminate the
inactivity fee as well.
sradovich on DSK3GMQ082PROD 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.5 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 6 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
4 The Exchange notes that in the filing that
adopted the Routing Intermediary Inactivity fee, it
inadvertently referenced the CBOE Routing fee
instead of the C2 Routing Fee.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
17:30 Apr 20, 2017
Jkt 241001
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 eliminating
the Away-Market Routing Intermediary
fee, C2 Routing fee and Routing
Intermediary Inactivity fee is reasonable
because market participants who would
otherwise be subject to those fees will
no longer be assessed the fees. The
Exchange believes it’s reasonable,
equitable and not unfairly
discriminatory because it applies
uniformly to the applicable market
participants (i.e., applies to all Routing
Intermediaries and TPHs that make the
PULSe workstations available to nonTPHs).
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule changes will impose
any burdens 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 the proposed rule change to
eliminate certain PULSe fees applies to
all applicable users of the PULSe
workstation. The Exchange does not
believe that the proposed change will
cause any unnecessary burden on
intermarket competition because the
proposed relates to use of an Exchangeprovided order entry system. To the
extent that any proposed change makes
the Exchange a more attractive
marketplace for market participants at
other exchanges, such market
participants are welcome to become
Exchange 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 is effective
upon filing pursuant to Section
19(b)(3)(A) 8 of the Act and
subparagraph (f)(2) of Rule 19b–4 9
7 15
U.S.C. 78f(b)(4).
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(2).
thereunder, because it establishes a due,
fee, or other charge imposed by the
Exchange.
At any time within 60 days of the
filing of such proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 10 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
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–
C2–2017–015 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–C2–2017–015. 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
8 15
PO 00000
Frm 00064
Fmt 4703
10 15
Sfmt 4703
18791
E:\FR\FM\21APN1.SGM
U.S.C. 78s(b)(2)(B).
21APN1
18792
Federal Register / Vol. 82, No. 76 / Friday, April 21, 2017 / Notices
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–
2017–015 and should be submitted on
or before May 12, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Brent J. Fields,
Secretary.
[FR Doc. 2017–08061 Filed 4–20–17; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80468; File No. SR–
PEARL–2017–18]
Self-Regulatory Organizations; MIAX
PEARL, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX
PEARL Fee Schedule
April 17, 2017.
sradovich on DSK3GMQ082PROD with NOTICES
Pursuant to the provisions of 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 6, 2017, MIAX PEARL, LLC
(‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change as described in
Items I, II, and III below, which Items
have been substantially 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 is filing a proposal to
amend the MIAX PEARL Fee Schedule
(the ‘‘Fee Schedule’’).
The Exchange initially filed the
proposal on March 29, 2017 (SR–
PEARL–2017–14). That filing was
withdrawn and replaced with the
current filing (SR–PEARL–2017–18).
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/rulefilings/pearl at MIAX’s principal office,
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
17:30 Apr 20, 2017
Jkt 241001
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
BILLING CODE 8011–01–P
11 17
and at the Commission’s Public
Reference Room.
1. Purpose
The Exchange proposes to amend its
Fee Schedule to permit Exchange
Market Makers 3 to appoint Electronic
Exchange Members 4 (‘‘EEMs’’), and vice
versa, as ‘‘Affiliates,’’ solely for
purposes of calculating transaction
volume in order to qualify for certain
transaction rebate and fee incentives
under the Fee Schedule. The Exchange
notes that this concept of appointment
between market makers and order flow
providers currently exists at a number of
other exchanges, including Bats BZX
Exchange, Inc. (‘‘BATS’’), Bats EDGX
Exchange, Inc. (‘‘EDGX’’), Chicago
Board Options Exchange, Incorporated
(‘‘CBOE’’), NYSE Amex Options LLC
(‘‘Amex Options’’), and NASDAQ PHLX
LLC (‘‘PHLX’’), as more fully discussed
below.
In order for the Exchange to
implement this concept of appointment,
the Exchange proposes to amend the
definition of ‘‘Affiliate’’ contained in the
Definitions section of the Fee Schedule.
The definition of ‘‘Affiliate’’ currently
reads:
‘‘Affiliate’’ means an affiliate of a
Member of at least 75% common
ownership between the firms as
reflected on each firm’s Form BD,
Schedule A.
3 The term ‘‘Market Maker’’ means a Member
registered with the Exchange for the purpose of
making markets in options contracts traded on the
Exchange and that is vested with the rights and
responsibilities specified in Chapter VI of the
Exchange’s Rules. See Exchange Rule 100.
4 The term ‘‘Electronic Exchange Member’’ or
‘‘EEM’’ means the holder of a Trading Permit who
is a Member representing as agent Public Customer
Orders and Non-Customer Orders on the Exchange
and those non-Market Maker Members conducting
proprietary trading. EEMs are deemed ‘‘members’’
under the Exchange Act. See Exchange Rule 100.
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
The Exchange proposes to amend the
definition so that it instead reads:
‘‘Affiliate’’ means (i) an affiliate of a
Member of at least 75% common
ownership between the firms as
reflected on each firm’s Form BD,
Schedule A, or (ii) the Appointed
Market Maker of an Appointed EEM (or,
conversely, the Appointed EEM of an
Appointed Market Maker). An
‘‘Appointed Market Maker’’ is a MIAX
PEARL Market Maker (who does not
otherwise have a corporate affiliation
based upon common ownership with an
EEM) that has been appointed by an
EEM and an ‘‘Appointed EEM’’ is an
EEM (who does not otherwise have a
corporate affiliation based upon
common ownership with a MIAX
PEARL Market Maker) that has been
appointed by a MIAX PEARL Market
Maker, pursuant to the following
process. A MIAX PEARL Market Maker
appoints an EEM and an EEM appoints
a MIAX PEARL Market Maker, for the
purposes of the Fee Schedule, by each
completing and sending an executed
Volume Aggregation Request Form by
email to membership@miaxoptions.com
no later than 2 business days prior to
the first business day of the month in
which the designation is to become
effective. Transmittal of a validly
completed and executed form to the
Exchange along with the Exchange’s
acknowledgement of the effective
designation to each of the Market Maker
and EEM will be viewed as acceptance
of the appointment. The Exchange will
only recognize one designation per
Member. A Member may make a
designation not more than once every 12
months (from the date of its most recent
designation), which designation shall
remain in effect unless or until the
Exchange receives written notice
submitted 2 business days prior to the
first business day of the month from
either Member indicating that the
appointment has been terminated.
Designations will become operative on
the first business day of the effective
month and may not be terminated prior
to the end of the month. Execution data
and reports will be provided to both
parties.
The purpose of the proposed rule
change is to increase opportunities for
EEMs and Market Makers, who do not
otherwise have a corporate affiliation
based upon common ownership with a
MIAX PEARL Market Maker or EEM, as
the case may be, to potentially qualify
for tiered pricing incentives on the
Exchange. Specifically, the Exchange
proposes to allow a MIAX PEARL
Market Maker to designate an EEM as its
‘‘Appointed EEM’’ and for an EEM to
designate a MIAX PEARL Market Maker
E:\FR\FM\21APN1.SGM
21APN1
Agencies
[Federal Register Volume 82, Number 76 (Friday, April 21, 2017)]
[Notices]
[Pages 18790-18792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08061]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80473; File No. SR-C2-2017-015]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule To
Amend the Fees Schedule
April 17, 2017.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on
April 13, 2017, C2 Options Exchange, Incorporated (``Exchange'' or
``C2'') 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 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.\3\ Specifically,
the Exchange is eliminating certain fees relating to the PULSe
workstation. By way of background, the PULSe workstation is a front-end
order entry system designed for use with respect to orders that may be
sent to the trading systems of the Exchange. Exchange Trading Permit
Holders (``TPHs'') may also make workstations available to their
customers, which may include TPHs, non-broker dealer public customers
and non-TPH broker dealers.
---------------------------------------------------------------------------
\3\ The Exchange initially filed the proposed fee change on
April 3, 2017 (SR-C2-2017-012). On April 13 [sic], 2017, the
Exchange withdrew that filing and submitted this filing. The
Commission notes that C2 withdrew C2-2017-012 on April 17, 2017.
---------------------------------------------------------------------------
The Exchange first proposes to eliminate the Away-Market Routing
Intermediary fee. This fee is payable by a Routing Intermediary and
only applicable for away-market routing from any PULSe workstation for
which it serves as the Routing Intermediary. The fee is $0.02 per
contract or share equivalent for the first million contracts or share
equivalent executed in a month for executions on all away markets
aggregated across all such PULSe workstations, and $0.03 per contract
or share equivalent for each additional contract or share equivalent
executed in the same month on all away markets.
The Exchange also proposes to eliminate the C2 Routing fee. The C2
Routing fee is payable by a TPH and only applicable for routing to C2
from non-TPH PULSe workstations made available by the TPH. The fee is
$0.02
[[Page 18791]]
per contract or share equivalent for the first 1 million contracts or
share equivalent executed in a month on C2 that originate from non-TPH
PULSe workstations made available by the TPH, and $0.03 per contract or
share equivalent for each additional contract or share equivalent
executed on C2 in the same month from the non-TPH PULSe workstations
made available by the TPH. The Exchange notes it no longer wishes to
assess these fees.
Lastly, the Exchange proposes to eliminate the Routing Intermediary
Inactivity fee. The Routing Intermediary Inactivity fee would be
charged to a Routing Intermediary in the calendar year after the year
in which the Routing Intermediary was charged the Routing Intermediary
Certification Fee. The fee is $5,000/year less the aggregate amount of
Away-Market Routing Intermediary and C2 Routing fees charged to a
Routing Intermediary during that calendar year (if Routing Intermediary
was charged less than an aggregate of $5,000 in Away-Market Routing
Intermediary and C2 Routing fees that year).\4\ As the Exchange is
eliminating both the Away-Market Routing Intermediary and C2 Routing
fees and the inactivity fee is based in part on the amount of those
fees assessed, the Exchange proposes to eliminate the inactivity fee as
well.
---------------------------------------------------------------------------
\4\ The Exchange notes that in the filing that adopted the
Routing Intermediary Inactivity fee, it inadvertently referenced the
CBOE Routing fee instead of the C2 Routing Fee.
---------------------------------------------------------------------------
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.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ 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
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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes eliminating the Away-Market Routing
Intermediary fee, C2 Routing fee and Routing Intermediary Inactivity
fee is reasonable because market participants who would otherwise be
subject to those fees will no longer be assessed the fees. The Exchange
believes it's reasonable, equitable and not unfairly discriminatory
because it applies uniformly to the applicable market participants
(i.e., applies to all Routing Intermediaries and TPHs that make the
PULSe workstations available to non-TPHs).
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burdens 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 the proposed rule change
to eliminate certain PULSe fees applies to all applicable users of the
PULSe workstation. The Exchange does not believe that the proposed
change will cause any unnecessary burden on intermarket competition
because the proposed relates to use of an Exchange-provided order entry
system. To the extent that any proposed change makes the Exchange a
more attractive marketplace for market participants at other exchanges,
such market participants are welcome to become Exchange 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 is effective upon filing pursuant to
Section 19(b)(3)(A) \8\ of the Act and subparagraph (f)(2) of Rule 19b-
4 \9\ thereunder, because it establishes a due, fee, or other charge
imposed by the Exchange.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \10\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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-C2-2017-015 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-C2-2017-015. 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
[[Page 18792]]
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-C2-2017-015 and should be
submitted on or before May 12, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Brent J. Fields,
Secretary.
[FR Doc. 2017-08061 Filed 4-20-17; 8:45 am]
BILLING CODE 8011-01-P