[Federal Register Volume 75, Number 183 (Wednesday, September 22, 2010)]
[Notices]
[Pages 57821-57822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-23595]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62910; File No. SR-C2-2010-003]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Adopt Certain Application-Related Fees
September 14, 2010.
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 September 10, 2010, 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.
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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
C2 proposes to adopt application fees. The text of the proposed
rule change is available on the Exchange's Web site (http://www.cboe.org/legal), at the Exchange's Office of the Secretary, and at
the Commission.
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 self-regulatory organization
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 those 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 parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to adopt application-
related fees for C2 Options Exchange, Inc. C2 anticipates launching in
mid/late October, 2010. In connection with the commencement of trading
on C2, the Exchange intends to begin accepting applications for C2
trading permits in the very near future. As part of the application
process, C2 intends to charge applicant organizations a $4,000
application fee, and sole-proprietor applicants a $2,500 application
fee. Existing Chicago Board Options Exchange, Incorporated (``CBOE'')
permit holders applying for C2 trading permits will not be charged an
application fee since nearly all of the necessary application
processing required by the Exchange has already been conducted with
respect to those CBOE permit holders. In fact, existing CBOE permit
holders, pursuant to C2 Rule 3.1(c)(1) are not required to complete and
submit an Exchange application. C2 notes that costs associated with
utilizing a C2 trading permit (e.g. a market-maker permit) would apply
equally to CBOE permit holder [sic] and non-CBOE permit holders.
In connection with the application process, certain application-
related fees that are in place at CBOE will also be adopted by C2.
Specifically, fees for applicants seeking to conduct a public customer
business ($2,500), fees for associated persons ($350), joint account
applicant fees ($1,000) \3\, permit renewal fees ($2,000 for
organizations and $500 for sole proprietors), fees associated with
statutory disqualification and Rule 19h-1 processing ($2,750 and $1,650
[[Page 57822]]
respectively) \4\, exam fees ($500), permit transfer fees ($500), and
fingerprint fees ($50) are all being adopted. The proposed fee levels
are comparable to those in place at CBOE. For the reasons stated above,
these fees, with the exception of renewal fees (which are applicable on
subsequent one-year anniversaries of C2 ``membership''), statutory
disqualification fees, Rule 19h-1 change in status fees, exam fees,
permit transfer fees, and fingerprint fees will not be charged to CBOE
permit holders seeking to trade on C2.
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\3\ This fee is payable for each application to establish a new
joint account.
\4\ The statutory disqualification fee is payable whenever a
person or entity is subject to a statutory disqualification under
the Securities Exchange Act of 1934 and: (i) Is an applicant for
Exchange membership, (ii) is seeking to be an associated person of
an Exchange member (except where the Exchange is merely asked to
concur in an SEC Rule 19h-1 filing by another self regulatory
organization), or (iii) is an existing Exchange member or associated
person who makes an application in accordance with Rule 3.5 or with
respect to whom a proceeding is initiated pursuant to Rule 3.5. This
fee is in addition to any other membership fees that might be
applicable. The Rule 19h-1 Change in Status Fee is payable whenever
a person or entity, on whose behalf the Exchange has filed a Rule
19h-1 filing that has been approved by the SEC, applies for a change
in status that requires the Exchange to file an amended or
additional Rule 19h-1 filing, if the Exchange approves the requested
change in status. This fee is in addition to any other membership
fees that might be applicable.
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The changes will take effect on September 13, 2010.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act''),\5\ in general, and furthers
the objectives of Section 6(b)(4) \6\ of the Act in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees, and other charges among C2 members and other persons using
its facilities. C2 notes that applicants, depending on whether they are
organizations or sole-proprietors, will all be charged fixed fees which
is [sic] intended to offset the Exchange's costs of processing the
permit holder applications and application-related matters, and that
the proposed fee amounts are comparable to those charged by CBOE.
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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 not necessary or appropriate in furtherance of
the 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) \7\ of the Act and subparagraph (f)(2) of Rule 19b-4
\8\ thereunder. 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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\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 e-mail to [email protected]. Please include
File Number SR-C2-2010-003 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-C2-2010-003. 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 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
a.m. and 3 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-C2-2010-003 and should be
submitted on or before October 13, 2010.
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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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-23595 Filed 9-21-10; 8:45 am]
BILLING CODE 8010-01-P