[Federal Register Volume 80, Number 226 (Tuesday, November 24, 2015)]
[Notices]
[Pages 73254-73256]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29839]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76466; File No. SR-C2-2015-031]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Delivery of the Regulatory Element of C2's Continuing
Education Program
November 18, 2015.
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 05, 2015, 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 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 the
Substance of the Proposed Rule Change
The purpose of the proposed rule change is to expand on the
Exchange's past representations made in SR-C2-2015-024 \3\ with respect
to Continuing Education (``CE'') Fees and Web-based delivery of the
Regulatory Element of the Exchange's CE program. There are no proposed
changes to the text of the Exchange's rules.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 76150 (October 14,
2015), 80 FR 63593 (October 20, 2015) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change to Amend the Fees
Schedule) (SR-C2-2015-024).
---------------------------------------------------------------------------
[[Page 73255]]
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 purpose of this filing is to correct certain statements in SR-
C2-2015-024.\4\ On October 2, 2015, the Exchange filed SR-C2-2015-024
to amend the Fees Schedule with respect to CE-related fees and, in
particular, fees related to Web-based delivery of the Regulatory
Element of the Exchange's CE program.\5\ SR-C2-2015-024 was materially
based upon changes to FINRA Rule 1250, which were approved by the
Securities and Exchange Commission (``SEC'' or ``Commission'') in SR-
FINRA-2015-015.\6\
---------------------------------------------------------------------------
\4\ Id.
\5\ See id.
\6\ See Securities Exchange Act Release No. 75581 (July 31,
2015), 80 FR 47018 (August 6, 2015) (Order Approving a Proposed Rule
Change to Provide a Web-based Delivery Method for Completing the
Regulatory Element of the Continuing Education Requirements) (SR-
FINRA-2015-015).
---------------------------------------------------------------------------
Notably, within the Purpose section of SR-C2-2015-024, the Exchange
incorrectly stated that ``[t]he Regulatory Element of these Continuing
Education Programs [(i.e. the S106 for Investment Company and Variable
Contracts Representatives, the S201 for Registered Principals and
Supervisors, and the S901 for Operations Professionals)] will continue
to be offered at testing centers through January 4, 2016'' and that
``[p]ursuant to the Approval Order to SR-FINRA-2015-015, the fee for
test-center delivery of the Regulatory Element of the S106, S201, and
S901 Continuing Education Programs will continue to be $100 per session
through January 4, 2016 when the programs will no longer be offered at
testing centers.'' According to SR-FINRA-2015-015, however, the
Regulatory Element of the S106 for Investment Company and Variable
Contracts Representatives, the S201 for Registered Principals and
Supervisors, and the S901 for Operations Professionals will continue to
be offered at testing centers until no later than six months after
January 4, 2016.\7\ The Exchange therefore is submitting this filing
for the purpose of correcting SR-C2-2015-024 and in an effort to avoid
any confusion among Permit Holders as to how long the Regulatory
Element of the S106 for Investment Company and Variable Contracts
Representatives, the S201 for Registered Principals and Supervisors,
and the S901 for Operations Professionals will continue to be offered
at testing centers.
---------------------------------------------------------------------------
\7\ According to SR-FINRA-2015-015, test-center delivery of the
Regulatory Element will be phased out by no later than six months
after January 4, 2016. See id.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\8\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \9\ 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) \10\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. In particular, the Exchange
believes that this filing will clarify its rules and help ensure that
Permit Holders are not confused by discrepancies that existed between
SR-C2-2015-024 and SR-FINRA-2015-015. The Exchange believes that
clarity in the Rules is in the interests of Permit Holders and all
investors and consistent with the Act.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ Id.
---------------------------------------------------------------------------
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. This filing relates
generally to CE requirements required of all Permit Holders. In
addition, the filing is merely a clarification of a previous filing
already submitted by the Exchange. Accordingly, the Exchange does not
believe that the proposed rule change will impose any burden on
competition in the marketplace.
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 written 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 from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \11\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\12\
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(iii).
\12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) normally does
not become operative prior to 30 days after the date of filing.\13\
Rule 19b-4(f)(6)(iii), however, permits the Commission to designate a
shorter time if such action is consistent with the protection of
investors and the public interest.\14\ The Exchange has asked the
Commission to waive the 30-day operative delay so that the proposal may
become operative immediately upon filing. The Exchange has stated that
waiver of the operative delay is necessary in order to correct
statements in a previous filing \15\ and to avoid any potential
confusion to investors. The Commission believes that waiver of the
operative delay is consistent with the protection of investors and the
public interest as it will allow C2 to update without delay its fee
schedule to accurately reflect the timing by which FINRA will phase out
offering the regulatory element of certain continuing education
programs
[[Page 73256]]
in person at testing centers. Since C2's proposed rule change is
intended to correct an external reference that was the subject of a
separate FINRA proposed rule change, the Commission believes it is in
the public interest to correct and update the C2 fee schedule without
delay. Accordingly, the Commission hereby waives the operative delay
and designates the proposal operative upon filing.\16\
---------------------------------------------------------------------------
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ Id.
\15\ See Securities Exchange Act Release No. 76150 (October 14,
2015), 80 FR 63593 (October 20, 2015) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change to Amend the Fees
Schedule) (SR-C2-2015-024).
\16\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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.
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-C2-2015-031 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-C2-2015-031. 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 such filing also will be available
for inspection and copying at the principal offices 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-C2-2015-031,
and should be submitted on or before December 15, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
---------------------------------------------------------------------------
\17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-29839 Filed 11-23-15; 8:45 am]
BILLING CODE 8011-01-P