21280 Federal Register / Vol. 80, No. 74 / Friday, April 17, 2015 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4Such determination as to whether to expose 

marketable orders on the opening via the HAL 

The purposes of this meeting are to 

take action on the minutes of previous 

Board meetings, to provide the 

Chairperson’s report, to provide the 

Executive Director’s report, to provide a 

partner report, to present ‘‘Strategy 

2020,’’ to provide an update on the New 

Presidio Parklands Project, to take 

action on a budget adjustment, and to 

receive public comment in accordance 

with the Trust’s Public Outreach Policy. 

Individuals requiring special 

accommodation at this meeting, such as 

needing a sign language interpreter, 

should contact Mariella deMey at 

415.561.5300 prior to May 7, 2015. 

DATES: The meeting will begin at 6:30 

p.m. on Thursday, May 14, 2015. 

ADDRESSES: The meeting will be held at 

the Observation Post, 211 Lincoln 

Boulevard, Presidio of San Francisco. 

FOR FURTHER INFORMATION CONTACT: 

Karen Cook, General Counsel, the 

Presidio Trust, 103 Montgomery Street, 

P.O. Box 29052, San Francisco, 

California 94129–0052, Telephone: 

415.561.5300. 

Dated: April 13, 2015. 

Karen A. Cook, 

General Counsel. 

[FR Doc. 2015–08920 Filed 4–16–15; 8:45 am] 

BILLING CODE 4310–4R–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74718; File No. SR–C2– 

2015–006] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Exchange Opening 

Procedures 

April 13, 2015. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b-4 thereunder,3

notice is hereby given that, on April 2, 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Rule 6.11 to provide additional clarity 

regarding the Exchange’s opening 

procedures. The text of the proposed 

rule change is provided below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

C2 Options Exchange, Incorporated Rules 

* * * * * 

Rule 6.11. Openings (and sometimes 

Closings) 

(a)–(d) No change. 

(e) Opening Conditions: Subject to 

subparagraph (f) below, the System will not 

open a series if one of the following 

conditions is met: 

(1) There is no quote present in the series; 

(2) The opening price is not within an 

acceptable range (as determined by the 

Exchange) compared to the lowest quote offer 

and the highest quote bid; 

(3) The opening trade would be at a price 

that is not the NBBO; or 

(4) The opening trade would leave a market 

order imbalance (i.e., there are more market 

orders to buy or to sell for the particular 

series than can be satisfied by the limit 

orders, quotes and market orders on the 

opposite side); however, in series that will 

open at a minimum price increment (e.g., at 

a price of $0.05 or, in penny series, at a price 

of $0.01), the System will open even if a sell 

market order imbalance exists. 

(f) Presence of Opening Conditions: 

(1) If the condition in paragraph (e)(1) is 

present, the System will check to see if there 

is an NBBO quote on another market that 

falls within the acceptable opening range. If 

such an NBBO quote is present, the series 

will open and expose the marketable order(s) 

at the NBBO price. If such an NBBO quote 

is not present, the System will not open the 

series and will send a notification to 

Participants indicating the reason. 

(2) If the condition in paragraph (e)(2) is 

present, the System will match orders and 

quotes to the extent possible at a single 

clearing price within the acceptable range 

and then expose the remaining marketable 

order(s) at the widest price point within the 

acceptable opening range or the NBBO price, 

whichever is better. 

(3) If the condition in paragraph (e)(3) is 

present, the System will match orders and 

quotes to the extent possible at a single 

clearing price within the acceptable opening 

range or the NBBO price, whichever is better, 

and then expose the remaining marketable 

order(s) at the NBBO price. 

(4) If the condition in paragraph (e)(4) is 

present, the System will match orders and 

quotes to the extent possible at a single 

clearing price and then expose the remaining 

marketable order(s) at the widest price point 

within the acceptable opening range or the 

NBBO price, whichever is better. 

(g)—(j) No change. 

. . . Interpretations and Policies 

.01–.03 No change. 

.04 Opening Auction Exposure: The 

Exchange may determine to expose orders at 

the opening via auction including under any 

of the scenarios described in paragraphs 

(f)(1)–(4) above. In such cases, the exposure 

process will be conducted via the Hybrid 

Agency Liaison (‘‘HAL’’) pursuant to Rule 

6.18. Any remaining balance of orders not 

executed via HAL on the opening will be 

booked at their limit price to the extent 

consistent with Rule 6.10 except that any 

remaining balance of orders not executed via 

HAL on the opening that are priced, or would 

be executed at a price, that is not within an 

acceptable tick distance from the initial HAL 

price will be cancelled. An ‘‘acceptable tick 

distance’’ (‘‘ATD’’) shall be determined by 

the Exchange on a series-by-series and 

premium basis and shall be no less than 2 

minimum increment ticks. When the HAL 

Opening Auction Exposure procedure is 

activated, the ATD will be the same as the 

ATD established under Rule 6.17. 

* * * * * 

The text of the proposed rule change 

is also available on the Exchange’s Web 

site (http://www.cboe.com/AboutCBOE/

CBOELegalRegulatoryHome.aspx), 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 is proposing to adopt 

Interpretation and Policy .04 to Rule 

6.11 relating to the Exchange’s opening 

procedures to provide additional clarity 

in the Rules regarding the manner in 

which marketable orders may be 

exposed at the opening of trading. 

Specifically, proposed Interpretation 

and Policy .04 to Rule 6.11 would 

provide that the Exchange may 

determine to expose marketable orders 

on the opening via the Hybrid Agency 

Liaison (‘‘HAL’’) auction procedures 

described in Rule 6.18.4 Proposed 


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Federal Register / Vol. 80, No. 74 / Friday, April 17, 2015 / Notices 21281 

auction procedures described in Rule 6.18 would be 

made prior to activation and announced via 

Regulatory Circular. 

5Notably, certain order types, or portions thereof, 

may not, by rule, be booked. See, e.g., Rule 6.10(6) 

(Immediate-or-Cancel Order); 6.10(7) (Opening 

Rotation Order). Accordingly, under proposed 

Interpretation .04 to Rule 6.11, any remaining 

balance of orders not executed via HAL on the 

opening would be booked at their limit price, but 

only to the extent consistent with Rule 6.10. 

6This includes a market order, which cannot be 

filled in total. In such cases, the remainder of a 

market order would be cancelled when the order 

cannot be filled on an away exchange and no quotes 

are present on C2. 

7 In determining the priority of orders and quotes 

to be traded at a single clearing price, the System 

gives priority to market orders first, then to limit 

orders and quotes whose price is better than the 

opening price, and then to limit orders and quotes 

at the opening price. See Rule 6.11(g)(1). 

8The Exchange will not automatically execute 

eligible orders that are marketable if (1) the width 

between the national best bid and national best 

offer is not within an acceptable price range (as 

determined by the Exchange on a series by series 

basis for market orders and/or marketable limit 

orders and announced to the Trading Permit 

Holders via Regulatory Circular), or (2) the 

execution would follow an initial partial execution 

on the Exchange and would be at a subsequent 

price that is not within an acceptable tick distance 

from the initial execution (as determined by the 

Exchange on a series by series and premium basis 

for market orders and/or marketable limit orders 

and announced to the Trading Permit Holders via 

Regulatory Circular). The ‘‘acceptable price range’’ 

(‘‘APR’’) shall be determined by the Exchange on a 

class-by-class basis and shall be no less than: $0.375 

between the bid and offer for each option contract 

for which the bid is less than $2, $0.60 where the 

bid is at least $2 but does not exceed $5, $0.75 

where the bid is more than $5 but does not exceed 

$10, $1.20 where the bid is more than $10 but does 

not exceed $20, and $1.50 where the bid is more 

than $20. An ‘‘acceptable tick distance’’ (‘‘ATD’’) 

shall be no less than 2 minimum increment ticks. 

See Rule 6.17. 

9See Rule 6.11(e). 

10See also Rule 6.11(g)(2). 

Interpretation and Policy .04 to Rule 

6.11 would also provide that any 

remaining balance of orders not 

executed via HAL on the opening will 

be booked at their limit price to the 

extent consistent with Rule 6.10 5 except 

that any remaining balance of orders not 

executed via HAL on the opening that 

are priced, or would be executed at a 

price, that is not within an acceptable 

tick distance from the initial HAL price 

will be cancelled..[sic] 6 The proposed 

Interpretation and Policy is 

substantially based, in all material 

respects, on the HAL Opening 

Procedure set forth in Interpretation and 

Policy .03 to Chicago Board Options 

Exchange, Incorporated (‘‘CBOE’’) Rule 

6.2B (Hybrid Opening System 

(‘‘HOSS’’)). 

Under the Exchange’s current opening 

procedures, pre-opening orders and 

quotes and orders resting in the book 

from the prior business day are matched 

in the Exchange’s automated trading 

system (‘‘System’’) at a single clearing 

price.7 Bids and offers that cannot be 

matched at a single clearing price are 

left to rest in the book. Subject to certain 

conditions, the System will not open a 

series for trading if there are no quotes 

in the series, the opening price is not 

within an acceptable range (as 

determined by the Exchange) compared 

to the lowest quote offer and the highest 

quote bid 8 or at a price at or within the 

national best bid or offer (‘‘NBBO’’), or 

the opening trade would leave an order 

imbalance.9 If one of these conditions is 

present at the opening, the Exchange 

will follow the opening procedures set 

forth in Rule 6.11(f) (as described 

below) to open trading in the affected 

series. Notably, each of the procedures 

described in Rule 6.11(f) explicitly 

permit the Exchange to expose 

marketable orders at the opening of 

trading.10

For example, under Rule 6.11(f)(1), if 

a marketable order is resting in the book 

of a series for which no quotes are 

disseminated on the Exchange, the 

System will look for another market that 

is quoting the NBBO within an 

acceptable opening price range. If such 

quotes exist, the System will open the 

series and expose the marketable order 

at the NBBO. If there are no quotes on 

C2 and no quotes on any away exchange 

that are within the APR for the series, 

the System will not open the series and 

will send a notification to participants 

indicating the reason. Thus, assume that 

the NBBO for a particular option is 

$1.00–$1.20 for 100 contracts on either 

side. The APR in the series is set at 

$0.50 above the $0.375 minimum APR 

for series with quote bids less than 

$2.00. There are no quotes in the series 

on C2, but there is a market order to buy 

100 contracts in the book. In this case, 

the System would verify that the NBBO 

quotes on the away exchange were 

within the APR for the series (the 

midpoint of the NBBO (i.e. $1.00–$1.20) 

plus or minus half of the APR (i.e. $0.25 

in either direction of the midpoint or 

$0.85–$1.35) and, if within the 

acceptable opening range (i.e. $1.20 is 

within the APR), expose the marketable 

buy order at the NBO price of $1.20. 

Under Rule 6.11(f)(2), if the opening 

price is not within an acceptable range 

compared to the lowest quote offer and 

highest quote bid, the System will 

match orders and quotes to the extent 

possible at a single clearing price within 

the acceptable range and then expose 

the remaining marketable order(s) at the 

widest price point within the acceptable 

price range or the NBBO price, 

whichever is better. For example, 

assume that the NBBO for a particular 

option is $0.90–$1.50 for 100 contracts 

on either side. The highest quote bid 

and lowest quote offer at C2 are $0.80– 

$1.50 each for 100 contracts. Again, the 

APR for series in which the quote bid 

is less than $2.00 is $0.50 and there is 

a customer order in the book to buy 100 

contracts at the market price. In this 

case, the System would check the 

marketable price of $1.50 for the trade 

against the APR for the series (i.e. the 

midpoint between the highest bid and 

lowest offer (i.e. $1.15) plus or minus 

half of the APR (i.e. $0.25) or $0.90– 

$1.40) and determine that the 

marketable price of $1.50 would not be 

within the APR. The System would then 

expose the order at the widest point 

within the APR (i.e. $1.40) or the NBBO 

(i.e. $1.50), whichever is better. Thus, in 

this case the order would be exposed at 

$1.40 (and booked provided there is no 

contra interest expressed at $1.40 or 

better during the exposure period). 

Similarly, Rule 6.11(f)(3) provides 

that if the opening trade would be at a 

price that is not the NBBO, the System 

will match orders and quotes to the 

extent possible at a single clearing price 

within the APR or the NBBO, whichever 

is better, and then expose the remaining 

marketable order(s) at the NBBO. For 

example, assume that the NBBO for a 

particular option is $0.05–$1.25 for 100 

contracts on either side. The highest 

quote bid and lowest quote offer on C2 

are $0.05–$1.75 respectively, each for 

100 contracts. Again, because the quote 

bid for the series is less than $2.00, the 

APR is $0.50. A customer order to buy 

100 contracts at the market is resting in 

the book. In this case, the System would 

be unable to match the market with any 

quote (i.e. $1.75) within the APR (i.e. 

$1.10 (the midpoint between the highest 

bid and lowest offer (i.e. $0.85) plus or 

minus half of the APR (i.e. $0.25) or 

$0.60–$1.10) or the NBO of $1.25. 

Accordingly, the System would expose 

the order at the NBO of $1.25. 

Finally, if the opening trade would 

leave a market order imbalance, the 

System will match orders and quotes to 

the extent possible at a single clearing 

price and then expose the remaining 

marketable order(s) at the widest price 

point within the APR or the NBBO, 

whichever is better pursuant to Rule 

6.11(f)(4). For example, assume that the 

NBBO for a particular option is $1.00– 

$1.20 with quotes for 100 contracts on 

each side. The highest quote bid on 

CBOE is $1.00 for 100 contracts and 

lowest quote offer is $1.20 for 10 

contracts. The quote bid being less than 

$2.00, the APR is $0.50. There is a 

customer order in the book to buy 100 

contracts at the market. There are no 

other quotes or orders in the book. In 

this case, the System would match the 


tkelley on DSK3SPTVN1PROD with NOTICES
21282 Federal Register / Vol. 80, No. 74 / Friday, April 17, 2015 / Notices 

11See Rule 6.11(g)(2) providing that all orders 

exposed pursuant to Rule 6.11 shall be exposed for 

a period of time designated by the Exchange that 

does not exceed 1.5 seconds. 

12Under Rule 6.11(g)(2), ‘‘All orders exposed 

pursuant to this Rule [6.11 (Openings (and 

sometimes closings))] shall be exposed for a period 

of time which shall not exceed 1.5 seconds. Once 

an exposed order has received a response, a 

matching period begins which shall last for a period 

of time designated by the Exchange that shall not 

exceed 1 second.’’ Accordingly, in context, the 

Exchange interprets the term ‘‘expose’’ to mean a 

designated period of time in which an interest will 

be represented to the trading crowd in an effort to 

solicit order responses or contra interests to trade 

against (i.e. an auction). 

13When C2 launched, C2RG10–005 announced 

that ‘‘upon opening, remaining marketable orders 

will be ‘linked,’ with no exposure period, to away 

exchanges disseminating better prices.’’ This 

‘‘linkage’’ was originally achieved on C2 by 

activating the Hybrid Agency Liaison (HAL) 

Opening Procedure (HAL–O) functionality (which 

incorporates the NBBO calculation and linkage 

processing into the opening rotation), but setting 

the HAL–O timer to zero and also restricting 

Trading Permit Holders (TPHs) from subscribing to 

auctions. In July 2011, the Exchange introduced 

Complex Order Auctions (COA) on C2. At that time, 

the ability for a TPH to subscribe to auctions was 

made available. This caused a HAL–O auction 

message to be sent to C2 auction subscribers 

whenever an order linked away. Additionally, it is 

noted that periodically, when systems experience 

heavy processing volumes, latency may cause the 

auction process to last longer than its prescribed 

timer setting of zero. On December 5, 2014, the 

following notification was posted to the Exchange’s 

System Status Web page, ‘‘During periods of heavy 

systems processing at the open, remaining orders 

marketable against the NBBO may be exposed for 

short periods, generally not to exceed 110 MS. Until 

further notice, TPHs should subscribe to the 

exposure process to ensure response capabilities 

during these times.’’ This filing proposes to remedy 

this issue by simply exposing orders at the opening 

to an HAL–O auction process not to exceed 1.5 

seconds. 

14See note 3 supra. 

15See CBOE Rule 6.2B Interpretation and Policy 

.03. 

16 15 U.S.C. 78f(b). 

17 15 U.S.C. 78f(b)(5). 

18 Id. 

orders and quotes at $1.20 (within the 

APR of $0.85–$1.35) and allocate 10 

contracts according to the matching 

algorithm in effect in the class and the 

applicable rules. The remaining 90 

contracts would then be exposed at the 

better of the widest point within the 

APR or the NBO (in this case $1.20). 

Thus, each of the four scenarios for 

permitting the opening of trading in a 

series in which one of the four 

conditions described in Rule 6.11(e) is 

present contemplate exposing 

marketable orders at the NBBO (or, if 

better, the widest point of the APR). 

Although Rule 6.11 expressly permits 

exposure of orders on the open, Rule 

6.11does not set forth a specific process 

by which orders will be exposed or 

specify how such orders be handled 

after they are exposed.11 While the 

Exchange believes that Rule 6.11(g)(2) 

makes clear that such exposure may be 

via auction,12 the Exchange also 

believes that additional detail should be 

added to the Rules to further clarify the 

auction process on the opening.13

Proposed Interpretation and Policy .04 

to Rule 6.11 is intended to add this 

additional detail in the Rules. 

Specifically, the Exchange proposes to 

amend Rule 6.11 to include reference to 

the Exchange’s HAL procedures. The 

Interpretation and Policy would provide 

that the Exchange could determine to 

expose orders at the opening via auction 

including under any of the scenarios 

described in paragraphs (f)(1)–(4) above 

and that in such cases, the exposure 

process would be conducted via HAL 

pursuant to Rule 6.18.14 The Exchange 

notes that proposed Interpretation and 

Policy .04 to Rule 6.11, including this 

provision, is substantially similar in all 

material respects to Interpretation and 

Policy .03 to CBOE Rule 6.2B, setting 

forth CBOE’s HAL Opening Procedures. 

In addition, the proposed rule would 

operate in a manner similar to the HAL 

Opening Procedures on CBOE with 

respect to the handling of remaining 

balances not executed via HAL exposure 

and provide that any remaining balance 

of orders not executed via HAL on the 

opening would be booked except that 

any remaining balance of orders not 

executed via HAL on the opening will 

be booked at their limit price to the 

extent consistent with Rule 6.10 except 

that any remaining balance of orders not 

executed via HAL on the opening that 

are priced, or would be executed at a 

price, that is not within an acceptable 

tick distance from the initial HAL price 

will be cancelled. The ‘‘acceptable tick 

distance’’ would be determined by the 

Exchange on a series-by-series and 

premium basis in increments not less 

than two minimum increment ticks. If 

the HAL Opening Auction Exposure 

procedure were activated, the 

acceptable tick distance would be the 

same as the acceptable tick distance 

established under Rule 6.17. This final 

provision of the Interpretation and 

Policy is consistent with the Exchange’s 

Price Check Parameters rules in 

Interpretation and Policy .04 to Rule 

6.13 and Rule 6.17 and would simply 

codify the extension of the Exchange’s 

Market-Width and Drill-Through 

Parameters to Rule 6.11. These proposed 

provisions are substantially similar to 

the HAL Opening Procedures set forth 

in Interpretation and Policy .03 to CBOE 

Rule 6.2B in all material respects other 

than they do not provide for manual 

handling of orders and in open outcry. 

As proposed, the Exchange is seeking 

merely to extend the opening order 

exposure procedures already in place on 

CBOE.15 The Exchange believes that 

extending the HAL Opening Procedures 

to C2 is will provide clarity to the 

Exchange’s rules as well as harmonize 

the procedures of the two exchanges, 

ultimately to the benefit of all market 

participants. The Exchange believes the 

proposed rule change would serve to 

further enhance the efficiency of 

opening rotations with procedures to 

accommodate a process for addressing 

opening quotes, acceptable opening 

ranges, and market order imbalance 

conditions that may occur on the 

openings, as well as address NBBO 

condition scenarios where the 

Exchange’s opening trade might occur at 

an improved price rather than routing to 

an away market. Moreover, the 

Exchange believes that exposing orders 

on the open helps facilitate transactions 

in securities and is consistent with the 

goals of a free and open market and 

national market system. 

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.16 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 17 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) 18 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the proposed rule 

change is designed to align the 

Exchange’s rules with those of CBOE by 

extending the procedures of CBOE’s 

HAL on the open to C2. The Exchange 

believes that extending the HAL 

Opening Procedures to C2 is will 

provide clarity to the Exchange’s rules 

as well as harmonize the procedures of 

the two exchanges, ultimately to the 

benefit of all market participants. The 

Exchange believes the proposed rule 

change would serve to further enhance 


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Federal Register / Vol. 80, No. 74 / Friday, April 17, 2015 / Notices 21283 

19 15 U.S.C. 78s(b)(3)(A). 

20 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

21 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

the efficiency of opening rotations with 

procedures to accommodate a process 

for addressing opening quotes, 

acceptable opening ranges, and market 

order imbalance conditions that may 

occur on the openings, as well as 

address NBBO condition scenarios 

where the Exchange’s opening trade 

might occur at an improved price rather 

than routing to an away market. The 

proposed rule change will increase 

competition on C2 by providing an 

opportunity for market participants to 

benefit from additional exposure of 

orders and participation in auctions at 

the open. Furthermore, the Exchange 

believes that exposing orders on the 

open helps facilitate transactions in 

securities and is consistent with the 

goals of a free and open market and 

national market system. 

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. The 

Exchange does not believe that the 

proposed rule change will impose any 

burden on intramarket competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act 

because the proposed change will be 

equally applied and will equally affect 

all market participants’ orders that 

qualify for the HAL function. Moreover, 

the Exchange believes that the proposed 

rule change will increase competition 

amongst exchanges and market 

participants. The proposed will expose 

allow orders to be exposed to 

meaningful price improvement 

mechanisms at the opening of trading. 

The HAL on the opening procedure will 

allow C2 TPHs to compete with quotes 

on other exchanges and step up to the 

best national prices offered before 

orders are linked away. This price 

improvement process will not only 

ensure that orders on C2 are afforded 

the best prices available, but also afford 

additional opportunities to C2 TPH to 

compete with quotes on away exchanges 

at the opening of trading. The Exchange 

believes that price improvement 

mechanisms increase competition in the 

marketplace and increase opportunities 

for orders to receive best execution at 

the Exchange. 

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, if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 19 and Rule 19b–4(f)(6)(iii) 

thereunder.20

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. 

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 rule-comments@

sec.gov. Please include File Number SR– 

C2–2015–006 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–C2–2015–006. 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– 

2015–006 and should be submitted on 

or before May 8, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08795 Filed 4–16–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74715; File No. SR– 

NYSEArca–2015–24] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending the NYSE Arca 

Equities Schedule of Fees and 

Charges for Exchange Services To 

Provide a Second Way To Qualify for 

the Cross-Asset Tier Credit of $0.0030 

Per Share for Orders That Provide 

Liquidity to the Exchange 

April 13, 2015. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on March 

31, 2015, NYSE Arca, Inc. (the 


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