Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 37647 

19 17 CFR 200.30–3(a)(12). 

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). 5See C2 Rule 6.38. 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

BatsBYX–2017–17 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–BatsBYX–2017–17. 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 will also 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– 

BatsBYX–2017–17 and shouldbe 

submitted on or before September 1, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–16929 Filed 8–10–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81327; File No. SR–C2– 

2017–023] 

Self-Regulatory Organizations; C2 

Options Exchange, Incorporated; 

Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Adopt Rule 6.49, C2 Trade 

Match System 

August 7, 2017. 

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 August 4, 

2017, 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 

Exchange filed the proposal as a ‘‘noncontroversial’’ 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 

The Exchange is proposing to adopt 

new Rule 6.49 related to its existing C2 

Trade Match System (‘‘CTM’’) 

functionality. 

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 

new Rule 6.49 related to its existing C2 

Trade Match System (‘‘CTM’’) 

functionality. CTM is a systems user 

interface provided by the Exchange in 

which authorized Trading Permit 

Holders (‘‘TPHs’’) may receive copies of 

trade records and add and/or update 

their trade records. Although references 

to CTM exist within Regulatory 

Circulars, the functionality is not 

currently described in Exchange rules. 

The Exchange believes it would be 

beneficial to address and provide 

further detail in its rules regarding the 

CTM functionality and permitted uses. 

Post-trade modifications may be 

effected via the CTM system. A rule 

explicitly detailing the modification 

process and defining what permitted 

modifications are allowed does not 

currently exist in the Exchange’s rules. 

The Exchange believes it would be 

useful to explicitly reference within the 

rule text the term ‘‘CTM’’ and codify 

what post trade modifications via CTM 

are permitted to reduce confusion and 

add additional transparency to the rules 

regarding C2’s systems. 

First, the Exchange proposes to 

explicitly reference and describe 

‘‘CTM.’’ Specifically, CTM is a system 

in which authorized TPHs may enter 

and report transactions that have been 

effected on the Exchange in accordance 

with Exchange rules or to correct bona 

fide errors (e.g., a situation in which a 

transaction was incorrectly reported as 

an opening transaction). Documentation 

requirements related to changes made 

through the use of CTM will be 

announced via a Regulatory Circular. 

By way of background, C2 Rule 6.38 

requires that for all transactions made 

on the Exchange, TPHs must file with 

the Exchange certain trade information 5

in order to allow the Exchange to 

properly match and clear trades. This 

information is used to provide the 

comparison of the two sides (i.e., buy 

and sell) of a transaction. When the two 

sides match, the trade is successfully 

compared and will move on to the 

Options Clearing Corporation (‘‘OCC’’) 

for clearance. For trades that do not 

match (i.e., trade information from each 

side do not match) TPHs and their 

respective representatives typically 

make reasonable efforts to resolve 

unmatched trades on trade day. The 

Exchange notes that CTM may be used 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
37648 Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 

6Under a Clearing Member Trade Agreement 

(‘‘CMTA’’), an Options Clearing Corporation 

(‘‘OCC’’) clearing member (‘‘carrying clearing 

member’’) authorizes another clearing member 

(‘‘executing clearing member’’) to give up the name 

of the carrying clearing member with respect to any 

trade executed on a specific exchange (i.e., the reassignment of a trade to a different Clearing firm 

occurs post-trade at the OCC). 

7For example, if the Exchange provides a TPH 

the ability to make a change via CTM, such action 

should not be construed as a determination by the 

Exchange that the transaction proposed is in 

conformity with Exchange Rules. 

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

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

10 Id. 

by TPHs to change certain fields on a 

trade record for which it has authority 

to correct, in order to update a trade 

record or correct an unmatched field to 

resolve an out-trade. The Exchange 

proposes to codify what post trade 

modifications via CTM are permitted 

and further specify which changes will 

require notification to the Exchange. 

The Exchange first seeks to specify 

which fields may be changed by TPHs 

through the use of CTM without notice 

to the Exchange. Those fields are: (1) 

Executing Firm and Contra Firm; (2) 

Executing Broker and Contra Broker; (3) 

CMTA; 6 (4) Market-Maker Account and 

Sub Account; (5) Customer ID; (6) 

Position Effect (open/close); (7) 

Optional Data; and/or (8) Origin Code 

(provided the change is not from a 

customer origin code to any other origin 

code). The Exchange notes that the 

information contained in these fields 

does not affect the terms of a contract or 

the Consolidated Tape. Rather, the 

Exchange views these changes to be 

non-critical back office changes and as 

such, the Exchange does not believe it 

needs notice from the TPH making the 

change. The Exchange also notes that 

such changes would be captured in the 

Exchange’s audit trail. 

Next, the Exchange proposes to 

specify which fields may be changed by 

TPHs through the use of CTM that 

require TPHs to give notice to the 

Exchange in a form and manner 

determined by the Exchange. 

Specifically, those fields are: (1) Series; 

(2) Quantity; (3) Buy or Sell; (4) 

Premium Price; and/or (5) Origin Code 

(if changing origin code from customer 

(C) to any other origin code). The 

Exchange notes that these fields, with 

the exception of origin code, do change 

the terms of the contract and 

additionally affect the Consolidated 

Tape. As such, the Exchange proposes 

to require notice and further 

documentation as to why such a change 

is being made in order to monitor such 

changes, as well as take the necessary 

steps to ensure that any such changes 

are properly reflected in the 

Consolidated Tape. As to changes from 

a Customer (C) origin code to any other 

origin code, the Exchange notes that 

while such change does not affect the 

Consolidated Tape or terms of a 

contract, such changes may affect other 

substantive aspects of how a trade was 

processed, including whether a trade 

should have been given order priority. 

Accordingly, the Exchange believes that 

TPHs making changes to these fields 

should be required to provide the 

Exchange notice and documentation 

relating to the change. The Exchange 

proposes to require that notification of 

the change be made as soon as 

practicable, but, no later than fifteen 

(15) minutes after the change has been 

made. The Exchange notes that it will 

not be authorizing any changes prior to 

the TPH making changes to any of the 

above-mentioned fields (i.e., the 

Exchange will not expressly indicate 

whether or not a change identified in a 

TPH’s notice is in conformity with 

Exchange rules prior to the change being 

made). Rather, due to inherent time 

constraints, such changes will be 

reviewed by Exchange personnel after 

the fact, and a TPH that is found to have 

made an improper modification may be 

subject to appropriate disciplinary 

action in accordance with the Rules of 

the Exchange as described more fully 

below. 

The Exchange lastly proposes to adopt 

Interpretation and Policy .01 to provide 

that any action taken by the Exchange 

pursuant to proposed Rule 6.49(b) and 

(c) does not constitute a determination 

by the Exchange that the transaction 

was effected in conformity with 

Exchange Rules.7 As noted above, any 

improper change made through CTM 

shall be processed and given effect, but 

the TPH may be subject to appropriate 

disciplinary action in accordance with 

Exchange rules. Additionally, the 

Exchange notes that nothing in 

proposed Rule 6.49 is intended to define 

or limit the ability of the Exchange to 

sanction or take other remedial action 

pursuant to other Exchange rules for 

rule violations or other activity for 

which remedial measures may be 

proposed. The Exchange notes that 

given the inherent time constraints in 

making various changes to exchange 

transactions, the Exchange would not be 

able to adequately consider the abovementioned requirements and make a 

determination within the time required 

as to whether a change was improper or 

not. As such the Exchange will not 

prevent any changes from being 

processed and given effect, but will 

review such changes after the fact to 

ensure compliance with Exchange rules. 

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 

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. 

The Exchange views CTM as an 

important tool that allows TPHs to 

receive copies of trade records and add 

and/or update trade records. The 

Exchange believes CTM provides TPHs 

an effective mechanism to make such 

changes and reconcile out-trades due to 

bona fide errors, thereby removing 

impediments to and perfecting the 

mechanism of a free and open market 

and a national market system, and 

protecting investors and the public 

interest. 

The Exchange also believes that 

clearly defining in the rules existing 

system functionality (i.e., CTM) 

provides additional transparency in the 

rules and provides market participants 

an additional avenue to easily 

understand the system and processes C2 

offers. The Exchange believes additional 

transparency removes a potential 

impediment to and perfecting the 

mechanism for a free and open market 

and a national market system, and, in 

general, protecting investors and the 

public interest. Additionally, the 

Exchange believes that requiring certain 

changes made through the CTM system 

allows the Exchange to receive from 

TPHs information in a uniform format, 

which aids the Exchange’s efforts to 

monitor and regulate C2 and TPHs and 

helps prevent fraudulent and 

manipulative practices. 


asabaliauskas on DSKBBXCHB2PROD with NOTICES
Federal Register / Vol. 82, No. 154 / Friday, August 11, 2017 / Notices 37649 

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

12 17 CFR 240.19b–4(f)(6)(iii). As required under 

Rule 19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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. 13 17 CFR 200.30–3(a)(12). 

Finally, the Exchange believes that 

the proposed rule changes are designed 

to not permit unfair discrimination 

among market participants. For example 

all TPHs may request access to CTM. 

Additionally, all TPHs will be subject to 

the same limitations as to the permitted 

uses of CTM functionality. 

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 believes that proposed Rule 

6.49 will promote competition by 

making the CTM functionality more 

understandable to users and the general 

public. The Exchange believes that by 

better explaining its CTM functionality 

to TPHs and codifying the permitted 

uses of CTM, TPHs will better 

understand the Exchange’s systems. The 

Exchange believes that additional clarity 

and transparency in the Rules will make 

it easier for market participants to 

compete with one another on equal 

footing in the markets and ultimately 

benefits all investors. 

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, 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 rule-comments@

sec.gov. Please include File Number SR– 

C2–2017–023 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–C2–2017–023. 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– 

2017–023 and should be submitted on 

or before September 1, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–16930 Filed 8–10–17; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #15232 and #15233; 

IOWA Disaster Number IA–00071] 

Administrative Declaration of a 

Disaster for the State of Iowa 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of Iowa dated 08/03/2017. 

DATES: Issued on 08/03/2017. 

Physical Loan Application Deadline 

Date: 10/02/2017. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 05/03/2018. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: 

A. Escobar, Office of Disaster 

Assistance, U.S. Small Business 

Administration, 409 3rd Street SW., 

Suite 6050, Washington, DC 20416, 

(202) 205–6734. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. 

Incident: Severe Weather, Tornadoes, 

High Winds, Heavy Rains, Flash 

Flooding and Riverine Flooding. 

Incident Period: 07/19/2017 through 

07/23/2017. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Bremer 

Contiguous Counties: 

Iowa: Black Hawk, Buchanan, Butler, 

Chickasaw, Fayette, Floyd 

The Interest Rates are: 

Percent 

For Physical Damage: 

Homeowners with Credit Available Elsewhere ...................... 3.500 

Homeowners without Credit 

Available Elsewhere .............. 1.750 


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