[Federal Register Volume 76, Number 10 (Friday, January 14, 2011)]
[Notices]
[Pages 2735-2737]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-680]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63680; File No. SR-C2-2011-002]
Self-Regulatory Organizations; C2 Options Exchange, Incorporated;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Amend the C2 Fees Schedule and C2 Rule 3.1
January 7, 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 January 3, 2011, C2 Options Exchange, Incorporated (the
``Exchange'' or ``C2'') filed with the Securities and Exchange
Commission (the ``Commission'') the
[[Page 2736]]
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 amend proposes [sic] to [sic] amend [sic] its Fees
Schedule and C2 Rule 3.1(e) regarding the assessment of Trading Permit
fees and bandwidth packet fees. 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.
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
C2 proposes to amend its Rules and Fees Schedule to assess access
fees and bandwidth packet fees during the first week of the following
month rather than the first day of the effective month. Specifically,
C2 proposes to incorporate language regarding the manner in which these
fees will be assessed into its Fees Schedule and to amend C2 Rule
3.1(e) to provide that that [sic] the entire fee for a Trading Permit
shall be due and payable in accordance with the Exchange Fee Schedule
in place of the current language of the Rule under which fees for a
Trading Permit shall be due and payable in full on or before the first
day on which the Trading Permit is effective. The proposed assessment
of the referenced fees is identical to the process in place at the
Chicago Board Options Exchange, Incorporated (``CBOE''). C2 also
proposes to make a technical change to the Section 3 of the C2 Fees
Schedule to remove language referencing that access fees would not be
assessed for October 2010.
C2 imposes access fees for the two types of Trading Permits
available for use on C2, the Market-Maker Permit and the Electronic
Access Permit. C2 is proposing to add language to the Fees Schedule to
describe the assessment of the access fees and modify the way in which
access fees are currently assessed. Specifically, C2 is proposing to
include language reflecting that access fees are non-refundable and
will be assessed through the integrated billing system during the first
week of the following month.\3\ If a Trading Permit is issued during a
calendar month after the first trading day of the month, the access fee
for the Trading Permit for that calendar month is prorated based on the
remaining trading days in the calendar month. Trading Permits will be
renewed automatically for the next month unless the Trading Permit
Holder submits by the 25th day of the prior month (or the preceding
business day if the 25th is not a business day) a written
notification\4\ to cancel the Trading Permit effective at or prior to
the end of the applicable month.\5\
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\3\ Thus, Trading Permit Fees for access during January 2011
will be assessed through the integrated billing system during the
first week of February 2011.
\4\ Written notification may be submitted to the Registration
Services Department by e-mail to [email protected] or by other
means of written notification, including, but not limited to, a
hand-delivered letter or facsimile to the Registration Services
Department.
\5\ Thus, if a Trading Permit Holder has a Trading Permit in
January 2011, notice must be provided by January 25, 2011 if the
Trading Permit Holder would like to terminate the Trading Permit by
the end of January 2011 and not be assessed the applicable Trading
Permit Fee for February 2011.
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C2 offers two kinds of bandwidth packets for use to supplement the
standard bandwidth allocation provided with each access permit, the
Quoting and Order Entry Bandwidth Packet and the Order Entry Bandwidth
Packet. Similar to the access fees, C2 currently assesses fees for
supplemental bandwidth packets on the first day of each month. C2 is
proposing to add language to the Fees Schedule to describe the
assessment of bandwidth packet fees and modify the way in which the
bandwidth packet fees are assessed. Specifically, C2 is proposing to
include language reflecting that bandwidth packet fees are non-
refundable and will be assessed through the integrated billing system
during the first week of the following month. If a bandwidth packet is
issued during a calendar month after the first trading day of the
month, the bandwidth packet fee for that calendar month is prorated
based on the remaining trading days in the calendar month. Bandwidth
packets will be renewed automatically for the next month unless the
Trading Permit Holder submits by the last business day of the prior
month written notification to cancel the bandwidth packet effective at
or prior to the end of the applicable month.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act''),\6\ in general, and furthers
the objectives of Section 6(b)(4) \7\ of the Act in particular, in that
by increasing the efficiency of the billing process and putting in
place a process that is consistent with the process in place at CBOE
and that is familiar to common trading permit holders, it is designed
to provide for the equitable allocation of reasonable dues, fees, and
other charges among C2 Trading Permit Holders and other persons using
Exchange facilities.
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\6\ 15 U.S.C. 78f(b).
\7\ 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) \8\ of the Act and subparagraph (f)(2) of Rule 19b-4
\9\ 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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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
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[[Page 2737]]
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-C2-2011-002 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-C2-2011-002. 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 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-C2-2011-002 and should be
submitted on or before February 4, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-680 Filed 1-13-11; 8:45 am]
BILLING CODE 8011-01-P