Document Headings

                    Document headings vary by document type but may contain                    the following:                  
                -                       the agency or agencies that issued and signed a document                    
                -                       the number of the CFR title and the number of each part                      the document amends, proposes to amend, or is directly                      related to                    
                -                       the agency docket number / agency internal file number                    
                -                       the RIN which identifies each regulatory action listed in                      the Unified Agenda of Federal Regulatory and Deregulatory                      Actions                    

                    See the                                          Document Drafting Handbook                                        for more details.                  

###### Securities and Exchange Commission

          - [Release No. 34-92916; File No. SR-C2-2021-013]

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 7, 2021, Cboe C2 Exchange, Inc. (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 Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act [3]            and Rule 19b-4(f)(6) thereunder.[4]            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

Cboe C2 Exchange, Inc. (the “Exchange” or “C2”) proposes to make certain corrections to the Rules. The text of the proposed rule change is provided in Exhibit 5.

The text of the proposed rule change is also available on the Exchange's website (*http://markets.cboe.com/​us/​options/​regulation/​rule_​filings/​ctwo/​*), 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 proposes to make nonsubstantive cleanup changes to its Cboe C2 Exchange Rulebook (“Rulebook”) in order to remove inapplicable and obsolete terms.

Specifically, the proposed rule change deletes the definition of “L” Capacity code from Rule 1.1, which currently provides that L Capacity code applies to the account of non-Trading Permit Holder affiliate. The Exchange notes that this Capacity code is not applicable to trading on C2 and only applicable to trading on the Exchange's affiliated options exchange, Cboe Exchange, Inc. (“Cboe Options”), from which the Exchange's current definition of “L” Capacity code was inadvertently copied.[5]            Further, the proposed rule change deletes the term “Voluntary Professional Customer” from Rule 6.5. As of 2019, that Capacity designation is no longer available on C2 Exchange and the Exchange removed the term from its Rulebook. The proposed rule change merely removes the term from Rule 6.5,       ( print page 51394)    which was inadvertently left in the Rulebook.[6] 

#### 2.  Statutory Basis 

The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.[7]            Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) [8]            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) [9]            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 the proposed rule change will remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, will protect investors and the public interest by removing inapplicable and obsolete terms within the Rules. Specifically, by removing terms that reference Capacities that are not available on the Exchange, the proposed rule change is designed to protect investors by making the Rules more accurate, thereby mitigating any potential investor confusion. The proposed rule change will have no impact on trading on the Exchange, as the proposed rule change is nonsubstantive in nature.

### 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 proposed rule change is not intended as a competitive filing, but rather simply updates the Rules to remove inapplicable and obsolete terms that inadvertently remain in the Rulebook. The proposed rule change makes no substantive changes to the Rules, and thus will have no impact on trading on 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 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) of the Act [10]            and Rule 19b-4(f)(6) thereunder.[11] 

A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act [12]            normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) [13]            permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay. The Exchange believes that waiver of the operative delay is consistent with the protection of investors and the public interest because the proposed rule change will remove inapplicable and obsolete terms within the Rules. The Exchange notes that by removing terms that reference Capacities that are not available on the Exchange, the proposed rule change is designed to protect investors by making the Rules more accurate, thereby mitigating any potential investor confusion. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest because the proposed rule change is nonsubstantive in nature and makes the Exchange's rules accurate by removing inapplicable and obsolete terms. Therefore, the Commission hereby waives the operative delay and designates the proposal as operative upon filing.[14] 

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 shall 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-C2-2021-013 *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-C2-2021-013 *.* 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 website (*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       ( print page 51395)    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. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-C2-2021-013 and should be submitted on or before October 6, 2021.

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.[15] 

 

J. Matthew DeLesDernier,

Assistant Secretary.

# Footnotes

1.     15 U.S.C. 78s(b)(1).
        Back to Citation      

2.     17 CFR 240.19b-4.
        Back to Citation      

3.     15 U.S.C. 78s(b)(3)(A)(iii).
        Back to Citation      

4.     17 CFR 240.19b-4(f)(6).
        Back to Citation      

5.     *See* Securities Exchange Release No. 83214 (May 11, 2018), 83 FR 22796 (May 16, 2018) (SR-C2-2018-005).
        Back to Citation      

6.     *See.id.*
        Back to Citation      

7.     15 U.S.C. 78f(b).
        Back to Citation      

8.     15 U.S.C. 78f(b)(5).
        Back to Citation      

9.     *Id.*
        Back to Citation      

10.     15 U.S.C. 78s(b)(3)(A).
        Back to Citation      

11.     17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of 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.
        Back to Citation      

12.     17 CFR 240.19b-4(f)(6).
        Back to Citation      

13.     17 CFR 240.19b-4(f)(6)(iii).
        Back to Citation      

14.     For purposes only of waiving the 30-day operative delay, the Commission also has considered the proposed rule's impact on efficiency, competition, and capital formation. *See*15 U.S.C. 78c(f).
        Back to Citation      

15.     17 CFR 200.30-3(a)(12).
        Back to Citation      

[FR Doc. 2021-19861 Filed 9-14-21; 8:45 am]

BILLING CODE 8011-01-P