Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 5.34, 66602-66604 [2021-25475]
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66602
Federal Register / Vol. 86, No. 223 / Tuesday, November 23, 2021 / Notices
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
39 U.S.C. 401, 403, 404; 1003, 1004,
and 1201–1209.
PURPOSE(S):
1. To provide administrative support
to assist end users with technical
questions and issues.
2. To provide account management
assistance.
3. To provide account security and to
deter and detect fraud.
4. To allow USPS employees to share
pre-approved USPS brand messages or
content on social media via personal
social media accounts.
CATEGORIES OF INDIVIDUALS COVERED BY THE
SYSTEM:
Current USPS employees that
voluntarily opt-in to participate in
employee programs.
CATEGORIES OF RECORDS IN THE SYSTEM:
1. User profile information: Name,
date of birth, email, gender, phone,
internally assigned identifier, username,
physical address, employee
identification number (EIN), contact
information, customer ID(s), text
message number, date of account
creation, method of referral to website,
date of last logon, and authentication
method preferences.
2. User preferences for
communications: Frequency and
channel opt in/opt out and preferred
means of contact for service alerts and
notifications, and language.
3. Online user information: Internet
Protocol (IP) address, domain name,
operating system versions, browser
version, date and time of first and last
connection, and geographic location.
4. Identity verification information:
Username, user ID, email address, text
message number, and results of identity
proofing validation.
5. Employee social media program:
Work contact information, social media
user handle, photograph, feedback
received regarding content, and
aggregate feedback metrics not
associated with personally identifiable
information.
RECORD SOURCE CATEGORIES:
Individual end user.
lotter on DSK11XQN23PROD with NOTICES1
ROUTINE USES OF RECORDS MAINTAINED IN THE
SYSTEM, INCLUDING CATEGORIES OF USERS AND
THE PURPOSES OF SUCH USES:
Standard routine uses 1–9 apply.
POLICIES AND PRACTICES FOR RETRIEVAL OF
RECORDS:
For system administrators and/or
customer service representatives, by
internally assigned identifier, or end
user account details such as name,
phone number, etc. to assist end users
with access or use of USPS social media
access and to understand and fulfill end
user needs.
POLICIES AND PRACTICES FOR RETENTION AND
DISPOSAL OF RECORDS:
1. Records stored in digital service are
retained until (1) the end user cancels
the account, (2) six years after the end
user last accesses their account, (3) until
the relationship ends, or (4) after
reasonable notice has been provided to
the end user to export their account
information in the event the agreement
is terminated.
2. Records existing on computer
storage media are destroyed according
to the applicable USPS media
sanitization practice.
3. Records are retained as long as the
employee is active in the program data
is maintained. When user is in-active,
user data is marked as inactive, but data
is retained.
4. Records for social media historical
data, posts, feedback received regarding
content, and aggregate feedback metrics
not associated with personally
identifiable information are maintained
indefinitely.
ADMINISTRATIVE, TECHNICAL, AND PHYSICAL
SAFEGUARDS:
Paper records, computers, and
computer storage media are located in
controlled-access areas under
supervision of program personnel.
Access to these areas is limited to
authorized personnel, who must be
identified with a badge.
Access to records is limited to
individuals whose official duties require
such access. Contractors and licensees
are subject to contract controls and
unannounced on-site audits and
inspections. Computers are protected by
mechanical locks, card key systems, or
other physical access control methods.
The use of computer systems is
regulated with installed security
software, computer logon
identifications, and operating system
controls including access controls,
terminal and transaction logging, and
file management software.
RECORD ACCESS PROCEDURES:
STORING, RETRIEVING, ACCESSING, RETAINING,
AND DISPOSING OF RECORDS IN THE SYSTEM:
POLICIES AND PRACTICES FOR STORAGE OF
RECORDS:
Automated database, computer
storage media, and digital files.
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18:09 Nov 22, 2021
Jkt 256001
Requests for access must be made in
accordance with the Notification
Procedure above and USPS Privacy Act
regulations regarding access to records
and verification of identity under 39
CFR 266.5.
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
CONTESTING RECORD PROCEDURES:
See Notification Procedures and
Record Access Procedures.
NOTIFICATION PROCEDURES:
Individuals wanting to know if
information about them is maintained in
this system must address inquiries in
writing to the system manager. Inquiries
must include full name, date of birth,
physical address, email address,
username, and other identifying
information, if requested.
EXEMPTIONS PROMULGATED FOR THE SYSTEM:
None.
HISTORY:
*
August 14, 2015, 80 FR 48935.
*
*
*
*
Ruth Stevenson,
Chief Counsel, Ethics & Legal Compliance.
[FR Doc. 2021–25498 Filed 11–22–21; 8:45 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93597; File No. SR–C2–
2021–016]
Self-Regulatory Organizations; Cboe
C2 Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Rule 5.34
November 17, 2021.
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 November
5, 2021, Cboe C2 Exchange, Inc. (the
‘‘Exchange’’ or ‘‘C2’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe C2 Exchange, Inc. (the
‘‘Exchange’’ or ‘‘C2 Options’’) proposes
to amend Rule 5.34. The text of the
proposed rule change is provided in
Exhibit 5.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
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Federal Register / Vol. 86, No. 223 / Tuesday, November 23, 2021 / Notices
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/ctwo/),
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
lotter on DSK11XQN23PROD with NOTICES1
1. Purpose
The Exchange proposes to modify the
optional duplicate order protection risk
limit setting for Users in Rule 5.34(c)(9).
Duplicate order protection is voluntary
functionality, which was designed to
protect Users against execution of
multiple identical orders that may have
been erroneously entered. Specifically,
pursuant to current Rule 5.34(c)(9), if a
User enables this functionality for a
port, then after the System receives a
specified number of duplicate orders
with the same EFID,5 side, price,
quantity, and class within a specified
time period (the User determines the
number and length of the time period),
the System will (A) reject additional
duplicate orders until it receives
instructions from the User to reset this
control or (B) reject all incoming orders
submitted through that port for that
EFID until the User contacts the Trade
Desk to request it reset this control. The
User may continue to submit cancel
requests prior to reset.
The Exchange proposes to amend this
risk setting to eliminate the time
parameter. Particularly, as amended, the
System will continue to check for a
specified number of duplicate orders
(which will continue to be determined
by the User), but no longer check to see
5 The
term ‘‘EFID’’ means an Executing Firm ID.
The Exchange assigns an EFID to a Trading Permit
Holder, which the System uses to identify the
Trading Permit Holder and the clearing number for
the execution of orders and quotes submitted to the
System with that EFID.
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18:09 Nov 22, 2021
Jkt 256001
if any such duplicative orders were
received over a specified period of time.
Instead, the system will compare each
submitted order against the immediately
preceding order that was submitted with
respect to the orders’ EFID, side, price,
quantity, and class. For example,
suppose a User sets the duplicative
order count to 10 orders. When the
System receives an incoming order, the
System checks if the immediately
preceding order it received had the
same EFID, side, price, quantity and
class. If the order does not, then the
System keeps the count at ‘‘0’’ (and
performs the same process for the next
incoming order). If the order does, the
System will count that order as ‘‘1’’. If
the following 9 incoming orders through
that port are also duplicates (i.e., same
EFID, side, price, quantity and class),
then regardless of how long it takes for
such orders to come into the System, the
System will (i) reject any additional
duplicate orders until it receives a reset
instruction from the User or (ii) reject all
incoming orders submitted through that
port for that EFID until the User
contacts the Trade Desk to request it
reset this control, as it does today.
The Exchange has observed that the
time parameter check under the current
duplicate order protection feature can
potentially create a (albeit minor)
latency impact for Users who opt to use
the functionality. More specifically,
minor latency can arise in connection
with the specified time parameter
because the System must store and
conduct a check across all orders sent
during the specified time period when
this risk check is enabled. The Exchange
believes removing the time parameter
check will eliminate this latency for
Users that opt to use the duplicate order
protection. The Exchange does not
believe that the proposed rule change
will impact the effectiveness of the
duplicate order protection feature for
those Users that opt to enable such
functionality. Also, as noted above, the
use of the risk limit is voluntary. The
Exchange will continue to offer Users a
full suite of additional price protection
mechanisms and risk controls which the
Exchange believes sufficiently mitigate
risks associated with Users entering
orders and quotes at unintended prices,
and risks associated with orders and
quotes trading at prices that are extreme
and potentially erroneous, as a likely
result of human or operational error.
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
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
66603
and, in particular, the requirements of
Section 6(b) of the Act.6 Specifically,
the Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) 7 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) 8 requirement that
the rules of an exchange not be designed
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the proposed rule
change will remove impediments to and
perfect the mechanism of a free and
open market and national market system
and benefit investors, because the
Exchange believes it will remove small
latency that may currently be caused by
use of the duplicate order protection
functionality. Moreover, the Exchange
does not believe that the proposed rule
change will affect the protection of
investors or the public interest or the
maintenance of a fair and orderly
market because Users still have the
ability to enable such control to protect
against execution of multiple identical
orders that may have been erroneously
entered, just in a different manner (i.e.,
without a specified time parameter
check). As stated, the Exchange does not
believe that the proposed rule change
will impact the effectiveness of the
duplicate order protection feature for
those Users that opt to enable such
functionality. In addition to this, the
Exchange notes that the use of this risk
control is voluntary, and the Exchange
will continue to offer a full suite of
alternative price protection mechanisms
and risk controls.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange 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. In particular,
the Exchange does not believe that the
proposed rule change would impose a
burden on intramarket competition that
6 15
7 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 Id.
E:\FR\FM\23NON1.SGM
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66604
Federal Register / Vol. 86, No. 223 / Tuesday, November 23, 2021 / Notices
is not necessary or appropriate in
furtherance of the purposes of the Act
because it will amend this risk control
in the same manner for all Users on the
Exchange. In addition to this, and as
stated above, the use of the duplicative
order protection risk control is
voluntary, and the Exchange will
continue to offer various other price
protections and risk controls that
sufficiently mitigate risks associated
with market participants entering and/
or trading orders and quotes at
unintended or extreme prices. The
Exchange does not believe 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, as the
proposed rule change only updates an
existing risk control applicable to
ordered submitted to the Exchange. The
Exchange also notes that market
participants on other exchanges are
welcome to become participants on the
Exchange if they determine that this
proposed rule change has made C2
Options a more attractive or favorable
venue.
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
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Because the foregoing 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 for 30 days after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 9 and Rule 19b–
4(f)(6) 10 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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.
10 17
VerDate Sep<11>2014
18:09 Nov 22, 2021
Jkt 256001
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.
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–
C2–2021–016 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–C2–2021–016. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (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 website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–C2–
2021–016 and should be submitted on
or before December 14, 2021.
11 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00090
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–25475 Filed 11–22–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93602; File No. SR–
NASDAQ–2021–087]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
FINRA Fees
November 17, 2021.
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 November
8, 2021, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Nasdaq’s Pricing Schedule at Equity 7,
Section 30, Registration and Processing
Fees, to reflect adjustments to FINRA
Registration Fees, Fingerprinting Fees
and Continuing Education Fees.
While the changes proposed herein
are effective upon filing, the Exchange
has designated the amendments become
operative on January 2, 2022.3
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/nasdaq/rules, at the principal
office of the Exchange, 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 90176
(October 14, 2020), 85 FR 66592 (October 20, 2020)
(SR–FINRA–2020–032) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change
To Adjust FINRA Fees To Provide Sustainable
Funding for FINRA’s Regulatory Mission).
2 17
E:\FR\FM\23NON1.SGM
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]]>Agencies
[Federal Register Volume 86, Number 223 (Tuesday, November 23, 2021)]
[Notices]
[Pages 66602-66604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25475]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93597; File No. SR-C2-2021-016]
Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 5.34
November 17, 2021.
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 November 5, 2021, Cboe C2 Exchange, Inc. (the ``Exchange'' or
``C2'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Cboe C2 Exchange, Inc. (the ``Exchange'' or ``C2 Options'')
proposes to amend Rule 5.34. The text of the proposed rule change is
provided in Exhibit 5.
[[Page 66603]]
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/options/regulation/rule_filings/ctwo/), 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 modify the optional duplicate order
protection risk limit setting for Users in Rule 5.34(c)(9). Duplicate
order protection is voluntary functionality, which was designed to
protect Users against execution of multiple identical orders that may
have been erroneously entered. Specifically, pursuant to current Rule
5.34(c)(9), if a User enables this functionality for a port, then after
the System receives a specified number of duplicate orders with the
same EFID,\5\ side, price, quantity, and class within a specified time
period (the User determines the number and length of the time period),
the System will (A) reject additional duplicate orders until it
receives instructions from the User to reset this control or (B) reject
all incoming orders submitted through that port for that EFID until the
User contacts the Trade Desk to request it reset this control. The User
may continue to submit cancel requests prior to reset.
---------------------------------------------------------------------------
\5\ The term ``EFID'' means an Executing Firm ID. The Exchange
assigns an EFID to a Trading Permit Holder, which the System uses to
identify the Trading Permit Holder and the clearing number for the
execution of orders and quotes submitted to the System with that
EFID.
---------------------------------------------------------------------------
The Exchange proposes to amend this risk setting to eliminate the
time parameter. Particularly, as amended, the System will continue to
check for a specified number of duplicate orders (which will continue
to be determined by the User), but no longer check to see if any such
duplicative orders were received over a specified period of time.
Instead, the system will compare each submitted order against the
immediately preceding order that was submitted with respect to the
orders' EFID, side, price, quantity, and class. For example, suppose a
User sets the duplicative order count to 10 orders. When the System
receives an incoming order, the System checks if the immediately
preceding order it received had the same EFID, side, price, quantity
and class. If the order does not, then the System keeps the count at
``0'' (and performs the same process for the next incoming order). If
the order does, the System will count that order as ``1''. If the
following 9 incoming orders through that port are also duplicates
(i.e., same EFID, side, price, quantity and class), then regardless of
how long it takes for such orders to come into the System, the System
will (i) reject any additional duplicate orders until it receives a
reset instruction from the User or (ii) reject all incoming orders
submitted through that port for that EFID until the User contacts the
Trade Desk to request it reset this control, as it does today.
The Exchange has observed that the time parameter check under the
current duplicate order protection feature can potentially create a
(albeit minor) latency impact for Users who opt to use the
functionality. More specifically, minor latency can arise in connection
with the specified time parameter because the System must store and
conduct a check across all orders sent during the specified time period
when this risk check is enabled. The Exchange believes removing the
time parameter check will eliminate this latency for Users that opt to
use the duplicate order protection. The Exchange does not believe that
the proposed rule change will impact the effectiveness of the duplicate
order protection feature for those Users that opt to enable such
functionality. Also, as noted above, the use of the risk limit is
voluntary. The Exchange will continue to offer Users a full suite of
additional price protection mechanisms and risk controls which the
Exchange believes sufficiently mitigate risks associated with Users
entering orders and quotes at unintended prices, and risks associated
with orders and quotes trading at prices that are extreme and
potentially erroneous, as a likely result of human or operational
error.
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.\6\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \7\ 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) \8\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ Id.
---------------------------------------------------------------------------
In particular, the proposed rule change will remove impediments to
and perfect the mechanism of a free and open market and national market
system and benefit investors, because the Exchange believes it will
remove small latency that may currently be caused by use of the
duplicate order protection functionality. Moreover, the Exchange does
not believe that the proposed rule change will affect the protection of
investors or the public interest or the maintenance of a fair and
orderly market because Users still have the ability to enable such
control to protect against execution of multiple identical orders that
may have been erroneously entered, just in a different manner (i.e.,
without a specified time parameter check). As stated, the Exchange does
not believe that the proposed rule change will impact the effectiveness
of the duplicate order protection feature for those Users that opt to
enable such functionality. In addition to this, the Exchange notes that
the use of this risk control is voluntary, and the Exchange will
continue to offer a full suite of alternative price protection
mechanisms and risk controls.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange 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. In particular, the Exchange
does not believe that the proposed rule change would impose a burden on
intramarket competition that
[[Page 66604]]
is not necessary or appropriate in furtherance of the purposes of the
Act because it will amend this risk control in the same manner for all
Users on the Exchange. In addition to this, and as stated above, the
use of the duplicative order protection risk control is voluntary, and
the Exchange will continue to offer various other price protections and
risk controls that sufficiently mitigate risks associated with market
participants entering and/or trading orders and quotes at unintended or
extreme prices. The Exchange does not believe 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, as the
proposed rule change only updates an existing risk control applicable
to ordered submitted to the Exchange. The Exchange also notes that
market participants on other exchanges are welcome to become
participants on the Exchange if they determine that this proposed rule
change has made C2 Options a more attractive or favorable venue.
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
Because the foregoing 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 for 30 days after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(6)
\10\ thereunder.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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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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 shall institute proceedings to
determine whether the proposed rule 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 [email protected]. Please include
File Number SR-C2-2021-016 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-C2-2021-016. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change; the Commission does not edit
personal identifying information from submissions. You should submit
only information that you wish to make available publicly. All
submissions should refer to File Number SR-C2-2021-016 and should be
submitted on or before December 14, 2021.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-25475 Filed 11-22-21; 8:45 am]
BILLING CODE 8011-01-P
