[Federal Register Volume 76, Number 133 (Tuesday, July 12, 2011)]
[Notices]
[Pages 40964-40965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-17383]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64825; File No. SR-C2-2011-014]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to PULSe Fees
July 6, 2011.
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 July 1, 2011, C2 Options Exchange, Incorporated (the
``Exchange'' or ``C2'') 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 this proposal as one establishing
or changing a 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\ 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)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange is proposing to amend its Fees Schedule to extend a
fee waiver related to the PULSe workstation and to adopt a limited fee
waiver for new users of the PULSe workstation. The text of the proposed
rule change is available on the Exchange's Web site (http://www.c2exchange.com), 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, Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is to extend a fee waiver
related to the PULSe workstation and to adopt a limited fee waiver for
new users of 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 C2. In
addition to providing the capability to send orders to the C2 market,
the PULSe workstation will also provide a user with the capability to
send options orders to other U.S. options exchanges and stock orders to
other U.S. stock exchanges through a PULSe Routing Intermediary.\5\
---------------------------------------------------------------------------
\5\ For a more detailed description of the PULSe workstation and
its other functionalities, see, e.g., Securities Exchange Act
Release No. 63246 (November 4, 2010), 75 FR 69478 (November 12,
2010) (SR-C2-2010-007).
---------------------------------------------------------------------------
The first purpose of this proposed rule change is to extend the
waiver of the PULSe Routing Intermediary fee. Currently the Exchange
has waived the Routing Intermediary fee through June 30, 2011. The
Exchange is proposing to extend this waiver through September 30, 2011.
Thus this fee will be assessed beginning October 1, 2011.
[[Page 40965]]
The second purpose of this proposed rule change is to adopt a
limited waiver for new users of the PULSe workstation. The Exchange
currently charges a fee of $350 per month for the first 10 users of a
Trading Permit Holder (``TPH'') and $100 per month for all subsequent
users. TPHs may also make the workstation available to their customers,
which may include non-broker dealer public customers and non-TPH broker
dealers (referred to herein as ``non-TPHs''). For such non-TPH
workstations, the Exchange currently charges a fee of $350 per month
per workstation.\6\
---------------------------------------------------------------------------
\6\ In instances where two or more TPHs wish to make a PULSe
workstation available to the same non-TPH customer, a fee reduction
applies. Under the reduction, if two or more TPHs make the PULSe
workstation available to the same non-TPH customer, then the monthly
fee is reduced from $350 to $250 per workstation per TPH.
---------------------------------------------------------------------------
In order to give new users time to become familiar with and fully
acclimated to the PULSe workstation functionality, the Exchange is
proposing to adopt a fee waiver applicable to new PULSe workstation
users. Specifically, the Exchange is proposing to waive the monthly
workstation fees for the first month for the first new user of a TPH
using the PULSe workstation. Similarly the Exchange is proposing to
waive the monthly workstation fees for the first new user of a non-TPH
using the PULSe workstation. The proposed fee waivers are based on C2's
billing period, which is based on a calendar month (i.e., begins on the
first day of each month and ends on the last day of each month). So, if
a new user begins using the PULSe workstation on July 15th, the user's
workstation fees would be waived from July 15th-July 31st. This new
user fee waiver will be operative July 1, 2011.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\7\ in general, and furthers the objectives of Section 6(b)(4) of
the Act,\8\ in particular, in that it is designed to provide for the
equitable allocation of reasonable dues, fees, and other charges among
C2 Permit Holders in that the same fees and fee waivers are applicable
to all Permit Holders that use the PULSe workstation. The Exchange also
believes that the fee waivers will serve as an incentive for TPHs and
their sponsored user customers to use the PULSe workstation as an
additional trading tool on their trading desks.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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 purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change is designated by the Exchange as
establishing or changing a due, fee, or other charge, thereby
qualifying for effectiveness on filing pursuant to Section
19(b)(3)(A)(ii) of the Act \9\ and subparagraph (f)(2) of Rule 19b-4
\10\ thereunder.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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.
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 (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-C2-2011-014 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-C2-2011-014. This file
number should be included on the subject line if e-mail 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 (http://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
a.m. and 3 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-C2-2011-014 and should be
submitted on or before August 2, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-17383 Filed 7-11-11; 8:45 am]
BILLING CODE 8011-01-P