75602 Federal Register / Vol. 79, No. 243 / Thursday, December 18, 2014 / Notices 

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

9 17 CFR 240.19b-4(f). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

rates will be applicable to them. The 

Exchange believes that defining and 

then using the term ‘‘Underlying 

Symbol List A’’ to represent a 

commonly referred to set of proprietary 

products in lieu of listing out these 

products in various sections of the Fees 

Schedule simplifies the Fees Schedule 

and makes it easier to read. The 

alleviation of potential confusion will 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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. CBOE 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 changes apply to all Trading 

Permit Holders. The Exchange believes 

that the proposal to cease charging the 

Trade Processing Services fee for 

unmatched trade data will not cause an 

unnecessary burden on intermarket 

competition because other exchanges 

already do not charge a similar fee. To 

the extent that the proposed changes 

make CBOE a more attractive 

marketplace for market participants at 

other exchanges, such market 

participants are welcome to become 

CBOE 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 written 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 8 and paragraph (f) of Rule 

19b-4 9 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– 

CBOE–2014–092 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–CBOE–2014–092. 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–CBOE– 

2014–092 and should be submitted on 

or before January 8, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29619 Filed 12–17–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73833; File No. SR–C2– 

2014–027] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Exchange Rules 

Regarding Trade Nullification and 

Price Adjustment 

December 12, 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 December 

11, 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 

rules related to trade nullification and 

price adjustment. The text of the 

proposed rule change is provided 

below. 

(additions are italicized; deletions are 

[bracketed]) 

* * * * * 

C2 Options Exchange, Incorporated 

Rules 

* * * * * 

Rule 6.20. Trade Nullification and Price 

Adjustment Procedure 

A trade on the Exchange may be 

nullified or adjusted if the parties to the 

trade agree to the nullification or 

adjustment. A trade may be nullified or 

adjusted on the terms that all parties to 

a particular transaction agree, provided, 

however, that any trade that is nullified 

or adjusted pursuant to this Rule must 

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Federal Register / Vol. 79, No. 243 / Thursday, December 18, 2014 / Notices 75603 

3The Exchange notes that this proposal is only 

intended to be effective until the joint efforts by the 

exchanges to create uniform trade nullification and 

adjustment rules are approved and in effect. Once 

the uniform rule has been approved and is effective, 

the Exchange will amend its rules appropriately. 

4The Exchange notes that, as proposed, Rule 6.20 

will only apply to trades that were executed on the 

Exchange and, as such, any orders that were either 

fully or partially routed to, or executed, on another 

Exchange will not be subject to the proposed Rule 

6.20. 

5See Exchange Rule 6.15. 

6Securities Exchange Act Release No. 34–72970 

(September 3, 2014), 79 FR 53498 (September 9, 

2014) (SR–CBOE–2014–066). 

7For example, the Exchange would ensure that 

the mutually agreed upon price would not have 

traded through resting interest at the time of the 

initial execution. 8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

be authorized by the Exchange prior to 

the nullification or adjustment. 

In addition, any trade that is adjusted 

pursuant to this Rule must be adjusted 

to a price that was permissible and in 

compliance with all Exchange and 

Securities and Exchange Commission 

Rules, as amended, at the time the 

original transaction was executed. The 

format and information required by the 

Exchange for this submission will be 

released by the Exchange via Regulatory 

Circular. 

* * * * * 

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 add 

Rule 6.20, ‘‘Trade Nullification and 

Price Adjustment Procedure.’’ 3 As 

proposed, Rule 6.20 will allow for 

transactions to be nullified if both 

parties to the transaction agree to the 

nullification and allow the price of 

executions to be adjusted if the price 

adjustment is agreed to by both parties 

to the transaction and authorized by the 

Exchange.4

Currently, Exchange Rules do not 

allow parties to nullify or adjust the 

price on an execution, unless there is an 

obvious error or catastrophic error 

pursuant to Rule 6.15. The Exchange is 

proposing to add Rule 6.20, ‘‘Trade 

Nullification and Price Adjustment 

Procedure,’’ which would: (a) Allow for 

any trades on the Exchange to be 

nullified if both parties to the trade 

agree to such nullification, and (b) allow 

for prices of executions to be adjusted 

if the price adjustment is agreed upon 

by both parties of the trade and 

authorized by the Exchange. 

As stated above, the Exchange 

currently allows for trades to be 

nullified or prices adjusted when there 

is an obvious error or catastrophic 

error.5 The Exchange is also proposing, 

however, to add a provision to allow 

TPHs to mutually agree to nullify a 

transaction or adjust a price of an 

execution. The Exchange believes 

allowing parties to adjust the price of a 

transaction is necessary given the 

benefits of adjusting a trade price rather 

than nullifying the trade completely. 

Because options trades are used to 

hedge transactions in other markets, 

including securities and futures, many 

TPHs, and their customers, would rather 

adjust prices of executions rather than 

nullify the transactions and, thus, lose 

a hedge altogether. As such, the 

Exchange believes it is in the best 

interest of investors to allow for price 

adjustments as well as nullifications. In 

addition, the Exchange believes it is in 

the nature of a fair and orderly market 

to allow for price adjustments rather 

than only cancellations because an 

adjustment will result in the least 

amount of disruption to the overall 

market. 

As proposed, Rule 6.20 expressly 

states that trades may be subject to 

nullification or price adjustment only if 

such trades are authorized by the 

Exchange. The Exchange notes that 

proposed Rule 6.20 is based on Chicago 

Board Options Exchange, Inc. (‘‘CBOE’’) 

Rule 6.19 6 and that the process that C2 

TPHs follow to nullify or adjust the 

price of a transaction pursuant to 

proposed rule 6.20 will be similar to 

how CBOE TPHs nullify or adjust the 

price of a transaction pursuant to CBOE 

Rule 6.19. Additionally, as with CBOE 

Rule 6.19, proposed C2 Rule 6.20 

requires Exchange authorization prior to 

the effectuation of such nullification or 

price adjustment. As part of the 

authorization process, in the case of a 

mutual nullification or mutual price 

adjustment, the Exchange will only 

authorize if the Exchange received 

verification from both parties to the 

trade that a mutual agreement has been 

made. In addition, prior to an 

authorization for a mutual price 

adjustment, the Exchange will ensure 

the agreed upon price would have been 

permissible and in compliance with all 

Exchange and Securities and Exchange 

Commission Rules, as amended, at the 

time the original transaction was 

executed.7 Finally, the proposed rule 

will state that the format and 

information required by the Exchange 

for this submission will be released by 

the Exchange via Regulatory Circular. 

As such, prior to Rule 6.20 becoming 

operative, the Exchange will provide 

TPHs with specific requirements via an 

Exchange Regulatory Circular. The 

circular will, among other things, state 

specific timeframes required for 

requests and the format in which the 

requests will be accepted by the 

Exchange. 

To conclude, the Exchange believes 

that the proposed changes are in 

furtherance of the Act because the 

proposed Rule 6.20 will allow TPHs to 

agree to nullify transactions or adjust 

prices of transactions to maintain a fair 

and orderly market. As stated above, the 

Exchange intends to release a 

Regulatory Circular to announce the 

implementation of the Rule and other 

specifics surrounding the procedures of 

the implementation. In addition, prior 

to implementation, the Exchange will 

ensure it has proper policies and 

procedures in place to correctly 

administer the Rule. 

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.8 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 9 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 

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75604 Federal Register / Vol. 79, No. 243 / Thursday, December 18, 2014 / Notices 

10 Id. 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). 

13 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. 

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) 10 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

More specifically, the Exchange 

believes that the proposed changes are 

consistent with the Act as they are 

designed to promote just and equitable 

principles of trade and protect investors 

and the public interest. Because options 

trades are used to hedge transactions in 

other markets, including securities and 

futures, many market participants 

would rather adjust prices of executions 

rather than nullify the transactions and, 

thus, lose a hedge altogether. As such, 

the Exchange believes it is in the best 

interest of investors to allow for price 

adjustments as well as nullifications. In 

addition, the Exchange believes it is in 

the nature of a fair and orderly market 

to allow for price adjustments rather 

than only cancellations because an 

adjustment will result in the least 

amount of disruption to the overall 

market. In addition, the Exchange does 

not believe that the proposed changes 

are unfairly discriminatory because they 

will be applied to all Trading Permit 

Holders equally. Finally, as noted 

above, proposed Rule 6.20 is based on 

CBOE Rule 6.19. 

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. In fact, the 

Exchange believes that the proposed 

rule change will foster competition as it 

will allow for less overall disruption to 

the market and encourage participation 

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: 

A. Significantly affect the protection 

of investors or the public interest; 

B. impose any significant burden on 

competition; and 

C. 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 11 and Rule 19b–4(f)(6) 12

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 rulecomments@sec.gov. Please include File 

Number SR–C2–2014–027 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–C2–2014–027. 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 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– 

2014–027, and should be submitted on 

or before January 8, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–29620 Filed 12–17–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73829; File No. SR– 

NYSEMKT–2014–100] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Rule 

900.3NY(k) To Disallow Market Orders 

from Being Eligible for Designation as 

an Immediate-or-Cancel Order 

December 12, 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 December 

2, 2014, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) 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 self-regulatory 

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 amend 

Rule 900.3NY(k) (Orders Defined) to 

disallow Market Orders from being 

mstockstill on DSK4VPTVN1PROD with NOTICES