[Federal Register Volume 79, Number 10 (Wednesday, January 15, 2014)]
[Notices]
[Pages 2737-2738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-00606]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71278; File No. SR-C2-2013-043]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend the Fees Schedule
January 9, 2014.
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 December 30, 2013, 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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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 (http://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 with regard to
PULSe Workstation routing (specifically, with regard to routing from
one PULSe Workstation to another). 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, the PULSe workstation provides a user with the capability to
send options orders to other U.S. options exchanges and/or stock orders
to other U.S. stock exchanges and trading centers \3\ (``away-market
routing'').\4\ PULSe Workstation users also have the capability to send
orders between PULSe workstations. For example, a user is able to send
an order from a PULSe workstation located in New York to a PULSe
workstation located in Chicago. The ability to send orders ``PULSe-to-
PULSe'' is available for use within a TPH (and any Non-TPHs to whom the
TPH makes the PULSe workstation available) and between TPHs that use
the PULSe workstation. A TPH may establish a PULSe-to-PULSe connection
with another TPH by contacting C2, who will permission the connection.
Before setting up the connection, both TPHs need to acknowledge in
writing (e.g., including via email) their agreement to establish the
mutual connection.
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\3\ A ``trading center,'' as provided under Rule 600(b)(78) of
Regulation NMS, 17 CFR 242.600(b)(78), means a national securities
exchange or national securities association that operates an SRO
trading facility, an alternative trading system, an exchange market
maker, an OTC market maker, or any other broker or dealer that
executes orders internally by trading as principal or crossing
orders as agent.
\4\ For a more detailed description of the PULSe workstation and
its other functionalities, see, e.g., Securities Exchange Act
Release Nos. 63246 (November 4, 2010) 75 FR 69478 (November 12,
2010) (SR-C2-2010-007), 65279 (September 7, 2011), 76 FR 56824
(September 14, 2011) (SR-C2-2011-020), 65482 (October 4, 2011), 76
FR 62879 (October 11, 2011) (SR-C2-2011-028), and 69991 (July 16,
2013), 78 FR 43956 (July 22, 2013) (SR-C2-2013-026).
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The Exchange hereby proposes to impose a monthly PULSe-to-PULSe
Routing fee of $50 for each receiving TPH. This means that each TPH
with a PULSe Workstation that elects to receive orders from another
PULSe Workstation will be assessed this fee. The Exchange proposes to
assess the fee to cover costs associated with the development of PULSe-
to-PULSe routing, as well as the upkeep of such systems. The Exchange
proposes to assess the fee to the receiving TPH because, by electing to
receive PULSe-to-PULSe orders, the receiving TPH then gets the ability
to execute those orders on the Exchange.
The proposed change is to take effect on January 1, 2014.
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 Section
6(b)(4) of the Act,\6\ 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 the imposition of the PULSe-to-PULSe
Routing Fee is reasonable because it is intended to cover the costs
associated with the development of PULSe-to-PULSe routing, as well as
the upkeep of such systems. The Exchange believes that it is equitable
and not unfairly discriminatory because it will be assessed to all
receiving TPHs that elect to receive PULSe-to-PULSe orders. The
Exchange proposes to assess the fee to the receiving TPH because, by
electing to receive PULSe-to-PULSe orders, the receiving TPH then gets
the ability to execute those orders on the Exchange.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
C2 does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. C2 does not believe that the
proposed rule change will impose any burden on intramarket
[[Page 2738]]
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because the PULSe-to-PULSe Routing Fee will be
assessed to all receiving TPHs that elect to receive PULSe-to-PULSe
orders. C2 does not believe that the proposed rule change will impose
any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because the fee
only applies to PULSe-to-PULSe routing, and is not designed for
competitive reasons or to affect competition between exchanges.
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 \7\ and paragraph (f)(2) of Rule 19b-4 \8\
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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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(2).
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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 email to [email protected]. Please include
File Number SR-C2-2013-043 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-C2-2013-043. 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 (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
10:00 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-C2-2013-043 and should be
submitted on or before February 5, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-00606 Filed 1-14-14; 8:45 am]
BILLING CODE 8011-01-P