Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Notices 61357 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3C2 initially filed the proposed fee change on 

September 2, 2014 (SR–C2–2014–021). On 

September 10, 2014, C2 withdrew that filing and 

submitted filing SR–C2–2014–022. On September 

18, 2014, C2 withdrew SR–C2–2014–022 and 

submitted SR–C2–2014–023. On September 30, 

2014, C2 withdrew SR–C2–2014–023 and submitted 

this filing. 

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

5 15 U.S.C. 78f(b)(4). 

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 such 

filing also will be available for 

inspection and copying at the principal 

offices 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– 

NYSEMKT–2014–85, and should be 

submitted on or before October 31, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24226 Filed 10–9–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73306; File No. SR–C2– 

2014–025] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend the Fees Schedule 

October 6, 2014. 

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 30, 2014, 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, II, and 

III 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend its 

Fees Schedule. 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’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 amend its 

Fees Schedule.3 Specifically, the 

Exchange proposes to increase the 

Linkage Routing fee from $0.50 per 

contract to $0.65 per contract in 

addition to the applicable C2 taker fee. 

The Linkage Routing fee is assessed to 

all orders routed pursuant to the 

Options Order Protection and Locked/

Crossed Market Plan, excluding Public 

Customer orders in equity option 

classes. The purpose of the proposed 

change is to cover increased costs 

associated with routing orders through 

Linkage and paying the transaction fees 

for such executions at other exchanges. 

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.4 Specifically, 

the Exchange believes the proposed rule 

change is consistent with Section 6(b)(4) 

of the Act,5 which requires that 

Exchange rules provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its Trading Permit 

Holders and other persons using its 

facilities. 

In particular, the Exchange’s proposal 

to increase the Linkage Routing fee from 

$0.50 per contract to $0.65 per contract 

is reasonable because such increase will 

help offset the costs associated with 

routing orders through Linkage and 

paying the transaction fees for such 

executions at other exchanges. 

Additionally, the Exchange notes that if 

a non-customer market participant 

wishes to avoid the Linkage fee, it may 

choose to specify that C2 not route 

orders away on its behalf or designate 

the order as Immediate or Cancel, which 

would prevent the order from linking 

[sic] away to another Exchange [sic]. 

Moreover, a non-customer market 

participant may route directly to 

exchanges posting the best market if 

desired to avoid Linkage routing fees. 

The Exchange next notes that this fee 

amount will be assessed to all orders 

routed via Linkage (excluding Public 

Customer orders in equity options 

classes). The Exchange believes that this 

proposed change is equitable and not 

unfairly discriminatory because noncustomer (e.g., broker-dealer 

proprietary) orders originate from 

broker-dealers who are by and large 

more sophisticated than public 

customers and can readily control the 

exchange to which their orders are 

routed. While there may be some 

sophisticated customers who are 

capable of directing the exchange to 

which their orders are routed, generally, 

retail customers submit orders to their 

brokerages but do not or cannot specify 

the exchange to which a customer order 

is sent. Therefore, non-customer order 

flow can, in most cases, more easily 

route directly to other markets if desired 

and thus avoid Linkage routing fees. 

Therefore, it is equitable to assess a 

reasonable fee to cover the costs 

incurred for processing non-customer 

Linkage orders while continuing to 

exempt such Public Customer orders. 

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 that is not necessary or 

mstockstill on DSK4VPTVN1PROD with NOTICES

61358 Federal Register / Vol. 79, No. 197 / Friday, October 10, 2014 / Notices 

6 15 U.S.C. 78s(b)(3)(A). 

7 17 CFR 240.19b–4(f). 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

appropriate in furtherance of the 

purposes of the Act. In particular, the 

increase to the Linkage Routing Fee will 

apply equally to all non-customers. 

Additionally, although different linkage 

fees are assessed to different market 

participants (i.e., non-customers vs 

public customers), as described above, 

non-customer order flow can, in most 

cases, more easily route directly to other 

markets if desired and thus avoid 

Linkage fees. Therefore, it is equitable to 

assess a reasonable fee to cover the costs 

incurred for processing non-customer 

Linkage orders while continuing to 

exempt such public customer orders. 

The Exchange believes that the proposal 

to increase the linkage fee amount 

assessed to non-customers will not 

cause an unnecessary burden on 

intermarket competition because 

although the total fee amount assessed 

to an order routed via Linkage (i.e., the 

Linkage Routing fee and applicable C2 

taker fee) may not always be lower than 

assessed at other exchanges, noncustomer market participants may, as 

noted above, choose to specify that C2 

not route orders away on its [sic] behalf, 

designate the order as Immediate or 

Cancel, or route directly to exchanges 

posting the best market to avoid Linkage 

routing fees. To the extent that the 

proposed changes make C2 a more 

attractive marketplace for market 

participants at other exchanges, such 

market participants are welcome to 

become C2 market participants. 

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 

The foregoing rule change has become 

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

of the Act 6 and paragraph (f) of Rule 

19b–4 7 thereunder. 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– 

C2–2014–025 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–C2–2014–025. 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 

a.m. and 3 p.m. Copies of such 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– 

2014–025, and should be submitted on 

or before October 31, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–24207 Filed 10–9–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73303; File No. SR– 

NASDAQ–2014–096] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

NASDAQ Rule 7018 Fees 

October 6, 2014. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on 

September 29, 2014, The NASDAQ 

Stock Market LLC (‘‘NASDAQ’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

as described in Items I, II and III 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 the Substance 

of the Proposed Rule Change 

NASDAQ is proposing to modify 

NASDAQ Rule 7018 fees assessed for 

execution and routing securities listed 

on NASDAQ, the New York Stock 

Exchange (‘‘NYSE’’) and on exchanges 

other than NASDAQ and NYSE. 

The text of the proposed rule change 

is available at nasdaq.cchwallstreet.com 

at NASDAQ’s principal office, 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, 

NASDAQ 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 

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