69900 Federal Register / Vol. 79, No. 226 / Monday, November 24, 2014 / Notices 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

include: restricting access to authorized 

personnel who have a ‘‘need to know’’; 

using locks; and password protection 

identification features. Contractors and 

other recipients providing services to 

the Commission shall be required to 

maintain equivalent safeguards. 

Compatibility of routine uses: The 

Privacy Act (5 U.S.C. 552a(a)(7) and 

(b)(3)) and SEC disclosure regulation (17 

CFR 200, Subpart H) permit disclosure 

of information under a published 

routine use for a purpose that is 

compatible with the purpose for which 

the information was collected. The 

routine uses are appropriate and meet 

the relevant statutory and regulatory 

criteria; are compatible with the 

purposes of this system; and will ensure 

efficient administration of the records 

contained in the system. 

OMB Requirements: A report of this 

revised system of records must be 

transmitted to OMB. 

OPM Requirements: None. 

Report Of Notice To Revise A System 

Of Records 

System Name: Information Pertaining 

or Relevant to SEC Regulated Entities 

and Their Activities (SEC–55). 

Introduction: In accordance with the 

requirements of the Privacy Act of 1974, 

5 U.S.C. 552a, the Securities and 

Exchange Commission (‘‘Commission’’ 

or ‘‘SEC’’) proposes to revise the system 

of records titled ‘‘Information Pertaining 

or Relevant to SEC Regulated Entities 

and Their Activities (SEC–55). The 

Information Pertaining or Relevant to 

SEC Regulated Entities and Their 

Activities (SEC–55) records are used by 

SEC personnel in connection with their 

official functions, including but not 

limited to, conducting examinations for 

compliance with federal securities law, 

investigating possible violations of 

federal securities laws, and other 

matters relating to SEC regulatory and 

law enforcement functions. Substantive 

changes to SEC–55 have been made to 

the following sections: (1) Name, to 

clarify the type of records in the system; 

(2) Categories of Individuals, to clarify 

the specific individuals covered in the 

system of records; (3) Categories of 

Records, modified to include specific 

data elements collected on individuals, 

name, address, telephone number, and 

email address; and (4) Routine Uses, to 

expand by one new routine use located 

at number 22. Additional minor 

administrative changes have been made 

to the Safeguards section, to clarify 

internal handling practices for the 

records; and to the System Manager(s) 

and Address Section, to update the 

Commission’s current address. 

Purpose: The records are used by SEC 

personnel in connection with their 

official functions including but not 

limited to, conducting examinations for 

compliance with federal securities law, 

investigating possible violations of 

federal securities laws, and other 

matters relating to SEC regulatory and 

law enforcement functions. 

Authority: 15 U.S.C. 78a et seq., 80a– 

1 et seq., and 80b–1 et seq. 

Probable effect on individual privacy 

or other rights: The records in this 

system may reveal personal information 

about individuals. We will disclose 

information under the routine uses only 

as necessary to accomplish the stated 

purpose. We do not anticipate that the 

routine use disclosures will have an 

unwarranted adverse effect on the rights 

of the individuals to whom the records 

pertain. 

Security provided for this system: 

Access to SEC facilities, data centers, 

and information or information systems 

is limited to authorized personnel with 

official duties requiring access. SEC 

facilities are equipped with security 

cameras and 24-hour security guard 

service. The records are kept in limited 

access areas during duty hours and 

secured areas at all other times. 

Computerized records are safeguarded 

in secured, encrypted environment. 

Security protocols meet the 

promulgating guidance as established by 

the National Institute of Standards and 

Technology (NIST) Security Standards 

from Access Control to Data Encryption, 

and Security Assessment & 

Authorization (SA&A). Records will be 

maintained in a secure, passwordprotected electronic system that will 

utilize commensurate safeguards that 

may include: firewalls, intrusion 

detection and prevention systems, and 

role-based access controls. Additional 

safeguards will vary by program. All 

records are protected from unauthorized 

access through appropriate 

administrative, operational, and 

technical safeguards. These safeguards 

include: restricting access to authorized 

personnel who have a ‘‘need to know’’; 

using locks; and password protection 

identification features. Contractors and 

other recipients providing services to 

the Commission shall be required to 

maintain equivalent safeguards. 

Compatibility of routine uses: The 

Privacy Act (5 U.S.C. 552a(a)(7) and 

(b)(3)) and SEC disclosure regulation (17 

CFR 200, Subpart H) permit disclosure 

of information under a published 

routine use for a purpose that is 

compatible with the purpose for which 

the information was collected. The 

routine uses are appropriate and meet 

the relevant statutory and regulatory 

criteria; are compatible with the 

purposes of this system; and will ensure 

efficient administration of the records 

contained in the system. 

OMB Requirements: A report of this 

revised system of records must be 

transmitted to OMB. 

OPM Requirements: None. 

[FR Doc. 2014–27745 Filed 11–21–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73625; File No. SR–C2– 

2014–026] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Extend the Penny Pilot 

Program Through June 30, 2015 

November 18, 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 November 

12, 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 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 

C2 proposes to amend Rule 6.4 by 

extending the Penny Pilot Program 

through June 30, 2015. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http://www.cboe.

com/AboutCBOE/CBOELegalRegulatory

Home.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 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 226 / Monday, November 24, 2014 / Notices 69901 

5The month immediately preceding a 

replacement class’s addition to the Pilot Program 

(i.e. December) would not be used for purposes of 

the six-month analysis. Thus, a replacement class 

to be added on the second trading day following 

January 1, 2015 would be identified based on The 

Option Clearing Corporation’s trading volume data 

from June 1, 2014 through November 30, 2014. 

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

7 15 U.S.C. 78f(b)(5). 

8 Id. 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b 4(f)(6). 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Penny Pilot Program (the ‘‘Pilot 

Program’’) is scheduled to expire on 

December 31, 2014. C2 proposes to 

extend the Pilot Program until June 30, 

2015. C2 believes that extending the 

Pilot Program will allow for further 

analysis of the Pilot Program and a 

determination of how the Pilot Program 

should be structured in the future. 

During this extension of the Pilot 

Program, C2 proposes that it may 

replace any option class that is currently 

included in the Pilot Program and that 

has been delisted with the next most 

actively traded, multiply listed option 

class that is not yet participating in the 

Pilot Program (‘‘replacement class’’). 

Any replacement class would be 

determined based on national average 

daily volume in the preceding six 

months,5 and would be added on the 

second trading day following January 1, 

2015. C2 will announce to its Trading 

Permit Holders by circular any 

replacement classes in the Pilot 

Program. The Exchange notes that it 

intends to utilize the same parameters to 

prospective replacement classes as was 

originally approved. 

C2 is specifically authorized to act 

jointly with the other options exchanges 

participating in the Pilot Program in 

identifying any replacement class. 

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.6 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 7 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 facilitation 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) 8 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 

allows for an extension of the Pilot 

Program for the benefit of market 

participants. 

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 

appropriate in furtherance of the 

purposes of the Act. Specifically, the 

Exchange believes that, by extending the 

expiration of the Pilot Program, the 

proposed rule change will allow for 

further analysis of the Pilot Program and 

a determination of how the Program 

shall be structured in the future. In 

doing so, the proposed rule change will 

also serve to promote regulatory clarity 

and consistency, thereby reducing 

burdens on the marketplace and 

facilitating investor protection. In 

addition, the Exchange has been 

authorized to act jointly in extending 

the Pilot Program and believes the other 

exchanges will be filing similar 

extensions. 

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 

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, 

provided that the self-regulatory 

organization has given 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 proposed rule change 

has become effective pursuant to 

Section 19(b)(3)(A) of the Act 9 and Rule 

19b–4(f)(6) thereunder.10

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– 

C2–2014–026 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–C2–2014–026. 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 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
69902 Federal Register / Vol. 79, No. 226 / Monday, November 24, 2014 / Notices 

11 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. 

4See Securities Exchange Act Release No. 73011 

(September 5, 2014), 79 FR 54315 (September 11, 

2014) (SR–NYSEARCA–2014–93) (‘‘2014 Filing’’). 

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

6 15 U.S.C. 78f(b)(5). 

7See supra n. 4. 

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– 

2014–026 and should be submitted on 

or before December 15, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27703 Filed 11–21–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73619; File No. SR– 

NYSEARCA–2014–132] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to the NYSE Proprietary 

Market Data Fee Schedule (‘‘Market 

Data Fee Schedule’’) Regarding NonDisplay Use Fees 

November 18, 2014. 

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 

November 7, 2014, NYSE Arca, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 selfregulatory organization. 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 change to 

the NYSE Proprietary Market Data Fee 

Schedule (‘‘Market Data Fee Schedule’’) 

regarding non-display use fees. The text 

of the proposed rule change is available 

on the Exchange’s Web site at 

www.nyse.com, at the principal office of 

the Exchange, 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 

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 

The Exchange proposes a change to 

the Market Data Fee Schedule regarding 

non-display use fees for NYSE Arca 

Integrated Feed, NYSE ArcaBook, NYSE 

Arca Trades and NYSE Arca BBO, the 

market data products to which nondisplay use fees apply. Specifically, 

with respect to the three categories of, 

and fees applicable to, market data 

recipients for non-display use, the 

Exchange proposes to describe the three 

categories in the Market Data Fee 

Schedule. 

In September 2014, the Exchange 

revised the fees for non-display use of 

NYSE Arca Integrated Feed, NYSE 

ArcaBook, NYSE Arca Trades and NYSE 

Arca BBO.4 In the 2014 Filing, the 

Exchange proposed certain changes to 

the categories of, and fees applicable to, 

data recipients for non-display use. As 

set forth in the 2014 Filing: (i) Category 

1 Fees apply when a data recipient’s 

non-display use of real-time market data 

is on its own behalf as opposed to use 

on behalf of its clients; (ii) Category 2 

Fees apply when a data recipient’s nondisplay use of real-time market data is 

on behalf of its clients as opposed to use 

on its own behalf; and (iii) Category 3 

Fees apply when a data recipient’s nondisplay use of real-time market data is 

for the purpose of internally matching 

buy and sell orders within an 

organization, including matching 

customer orders on a data recipient’s 

own behalf and/or on behalf of its 

clients. The Market Data Fee Schedule 

currently lists each category as Category 

1, Category 2, and Category 3, without 

further description. 

The Exchange is proposing to amend 

the Market Data Fee Schedule to add the 

descriptions of the three categories, as 

set forth above, as a footnote to the 

Market Data Fee Schedule. Because 

there will now be multiple footnotes to 

the Market Data Fee Schedule, the 

Exchange proposes non-substantive 

edits to change the existing footnote 

references from asterisks to numbers. 

2. Statutory Basis 

The proposed rule change is 

consistent with Section 6(b) 5 of the Act, 

in general, and furthers the objectives of 

Section 6(b)(5) 6 of the Act, in particular, 

in that it is 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 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, and it is not 

designed to permit unfair 

discrimination among customers, 

brokers, or dealers. 

The Exchange believes that adding the 

description of the three categories of 

data recipients for non-display use to 

the Market Data Fee Schedule will 

remove impediments to and help perfect 

a free and open market by providing 

greater transparency for the Exchange’s 

customers regarding the category 

descriptions that have been previously 

filed with the Commission and are 

applicable to the existing Market Data 

Fee Schedule.7

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 because the 

Exchange is merely adding to the 

Market Data Fee Schedule information 


asabaliauskas on DSK5VPTVN1PROD with NOTICES