Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 2735 

6 15 U.S.C. 78f. 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

(i) One Under Pricing for Certain 

Orders Executed at NYSE 

The Exchange has previously 

provided a discounted price fee for 

Destination Specific Orders routed to 

certain of the largest market centers 

measured by volume (NYSE, NYSE Arca 

and NASDAQ), which, in each instance 

has been $0.0001 less per share for 

orders routed to such market centers by 

the Exchange than such market centers 

currently charge for removing liquidity 

(referred to by the Exchange as ‘‘One 

Under’’ pricing). Based on changes in 

pricing at NYSE, BATS is proposing to 

increase its fee for a Destination Specific 

Orders executed at NYSE to align its 

fees so that the fee remains $0.0001 less 

per share for orders routed to NYSE. 

Specifically, the Exchange proposes to 

increase the fee charged for BATS + 

NYSE Destination Specific Orders 

executed at NYSE from $0.0020 per 

share to $0.0022 per share. In addition, 

the Exchange offers a variety of routing 

strategies, including ‘‘SLIM’’ and 

‘‘TRIM,’’ each of which has a specific fee 

for an execution that occurs at NYSE. 

(ii) Elimination of Dark Scan 

The Exchange has discontinued 

functionality that allowed a User to 

send an order that routes to certain dark 

liquidity venues prior to exposing the 

order to the Exchange’s order book 

(referred to by the Exchange as a ‘‘Dark 

Scan’’ order). Accordingly, the Exchange 

proposes to remove reference to Dark 

Scan orders from its fee schedule. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder that 

are applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6 of the Act.6

Specifically, the Exchange believes that 

the proposed rule change is consistent 

with Section 6(b)(4) of the Act,7 in that 

it provides for the equitable allocation 

of reasonable dues, fees and other 

charges among members and other 

persons using any facility or system 

which the Exchange operates or 

controls. The Exchange notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive. The 

Exchange believes that its fees and 

credits are competitive with those 

charged by other venues. Finally, the 

Exchange believes that the proposed 

rates are equitable in that they apply 

uniformly to all Members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 

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. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Pursuant to Section 19(b)(3)(A)(ii) of 

the Act 8 and Rule 19b–4(f)(2) 

thereunder,9 the Exchange has 

designated this proposal as establishing 

or changing a due, fee, or other charge 

applicable to its members, which 

renders the proposed rule change 

effective upon filing. 

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 rulecomments@sec.gov. Please include File 

Number SR–BATS–2011–001 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–BATS–2011–001. 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 

will also 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 No. SR–BATS– 

2011–001 and should be submitted on 

or before February 4, 2011 in the 

Federal Register. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–665 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

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 

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2736 Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 

3Thus, Trading Permit Fees for access during 

January 2011 will be assessed through the 

integrated billing system during the first week of 

February 2011. 4Written notification may be submitted to the 

Registration Services Department by e-mail to 

tradingpermits@cboe.com or by other means of 

written notification, including, but not limited to, 

a hand-delivered letter or facsimile to the 

Registration Services Department. 

5Thus, 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. 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4). 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

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. 

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 notification4 to 

cancel the Trading Permit effective at or 

prior to the end of the applicable 

month.5

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 nonrefundable 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. 

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. 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 2737 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 62822 

(Sept. 20, 2010), 75 FR 57318. 

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 rulecomments@sec.gov. 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

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–680 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63668; File No. SR–NSCC– 

2010–09] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Order Approving 

Proposed Rule Change Regarding the 

Creation of a Universal Trade Capture 

Application and Automated Special 

Representative Facility 

January 6, 2011. 

I. Introduction 

On August 30, 2010, the National 

Securities Clearing Corporation 

(‘‘NSCC’’) filed proposed rule change 

SR–NSCC–2010–09 with the Securities 

and Exchange Commission 

(‘‘Commission’’) pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder.2 On September 9, 2010, 

NSCC filed an amendment to the 

proposed rule change. The proposed 

rule change modifies NSCC’s rules and 

procedures to create a new Universal 

Trade Capture (‘‘UTC’’) application and 

an automated Special Representative 

facility. The proposed rule change was 

published for comment in the Federal 

Register on September 20, 2010.3 No 

comment letters were received. This 

order approves the proposed rule 

change. 

II. Description of the Proposal 

A. Uniform Trade Capture 

Pursuant to the proposed rule change, 

NSCC is replacing its trade capture 

applications, such as the Trade 

Comparison and Recording Operation, 

with the new UTC application that is 

designed to standardize, streamline, 

consolidate, and modernize NSCC’s 

system for capturing securities 

transaction information for clearance 

and settlement at NSCC. 

The UTC application will accept and 

process a common input record from all 

securities marketplaces. It will receive 

and report data from members and selfregulatory organizations (‘‘SROs’’) in 

both real-time and intraday batch 

submissions to and. NSCC will convert 

the existing input format to the new 

UTC input record format, which will 

enable the UTC to provide members and 

SROs with their trade output in the 

format of their choice (new or old). UTC 

will also replace all current locked-in 

over-the-counter (‘‘OTC’’) and listed 

trade capture applications with one 

central, real-time validation and 

reporting process and will have the 

capability to accept, reject, validate, 

process, and send contract output to 

members in real-time. Members will 

only have to support one standardized 

input and output format. 

B. Correspondent Clearing Service 

Prior to this rule change, NSCC’s rules 

provided that its Correspondent 

Clearing Service could only be used to: 

(a) Accommodate a member with 

multiple affiliate accounts that wishes 

to move a position resulting from an 

‘‘original trade’’ in the process of 

clearance from one affiliate account to 

another or (b) accommodate a member 

that relies on its Special Representative 

to execute a trade in a market that the 

member is precluded due to 

membership requirements (e.g., 

membership requirement for access to 

markets) or applicable regulation in 

order to enable the resulting position to 

be moved from the Special 

Representative to that member. 

Under this rule change, NSCC will 

provide that the Correspondent Clearing 

Service may be utilized by members to 

accommodate a member that relies on 

its Special Representative to execute a 

trade in any market regardless of 

whether that member maintains direct 

access to that market to enable the 

resulting position to be moved from the 

Special Representative to that member. 

C. Creation of an Automated Special 

Representative Facility 

To assist members control and 

monitor their Special Representative 

and Qualified Special Representative 

relationships, NSCC is creating an 

automated, online, secure facility by 

which members themselves may 

establish, monitor, and maintain these 

relationships. Both the Special 

Representative Member and the 

Correspondent Member will have to 

submit matching instructions within the 

facility in order for the relationship to 

be established. Either party will be able 

to submit an entry to retire the 

relationship. 

Members will be reminded, through 

formatting within the facility, of their 

existing and unchanged obligations 

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