Document ID: SEC-2015-1687-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: C2 Options Exchange, Inc.
Posted Date: 2015-10-20T04:00Z

[Federal Register Volume 80, Number 202 (Tuesday, October 20, 2015)]
[Notices]
[Pages 63593-63595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26521]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76150; File No. SR-C2-2015-024]

Self-Regulatory Organizations; C2 Options Exchange, Incorporated; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
to Amend the Fees Schedule

October 14, 2015.
    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 October 2, 2015, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    C2 Options Exchange, Incorporated (the ``Exchange'' or ``C2'') 
proposes to amend the 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 the Fees Schedule. Specifically, the 
Exchange proposes to make changes to the Continuing Education Fees 
section of the Fees Schedule to provide that continuing education for 
all registration except the Series 56 will be $55 if conducted via Web-
delivery. Continuing education for all registration except the Series 
56 will remain $100 if conducted at a testing center.
    On August 8, 2015, the Securities and Exchange Commission approved 
SR-FINRA-2015-015 relating proposed changes to FINRA Rule 1250 to 
provide a Web-based delivery method for completing the Regulatory 
Element of the continuing education requirements.\3\ Pursuant to the 
rule change, effective October 1, 2015, the Regulatory Element of the 
Continuing Education Programs for the S106 for Investment Company and 
Variable Contracts Representatives, the S201 for registered principles 
and supervisors, and the S901 for Operations Professionals will be 
administered through Web-based delivery or such other technological 
manner and format as specified by FINRA. The Regulatory Element of 
these Continuing Education Programs will continue to be offered at 
testing centers through January 4, 2016. Pursuant to the

[[Page 63594]]

Approval Order to SR-FINRA-2015-015, the fee for test-center delivery 
of the Regulatory Element of the S106, S201, and S901 Continuing 
Education Programs will continue to be $100 per session through January 
4, 2016 when the programs will no longer be offered at testing centers. 
The fee for Web-based delivery of the Regulatory Elements of the S106, 
S201, and S901 Continuing Education Programs, however, will be $55.
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    \3\ See Securities Exchange Act Release No. 75581 (July 31, 
2015), 80 FR 47018 (August 6, 2015) (Order Approving a Proposed Rule 
Change to Provide a Web-based Delivery Method for Completing the 
Regulatory Element of the Continuing Education Requirements) (SR-
FINRA-2015-015).
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    The Exchange currently utilizes FINRA's Continuing Education 
Programs for its own continuing education requirements. Consistent with 
SR-FINRA-2015-015, the Exchange [sic] recently filed SR-CBOE-2015-084 
\4\ relating to continuing education. In that filing, the Exchange 
[sic] proposed to follow the changes set forth in SR-FINRA-2015-015 
with respect to Web-based delivery of the Regulatory Element of the 
Continuing Education Programs for the S106 for Investment Company and 
Variable Contracts Representatives, the S201 for registered principles 
and supervisors, and the S901 for Operations Professionals. Consistent 
with SR-CBOE-2015-084, this proposed rule change, proposes to amend the 
Fees Schedule to provide that effective immediately, the fee for Web-
based delivery of the Regulatory Elements of the S106, S201, and S901 
Continuing Education Programs will be $55. The fee test-center delivery 
of the Regulatory Element of the S106, S201, and S901 Continuing 
Education Programs will continue to be $100 per session through January 
4, 2016 when the programs will no longer be offered at testing centers. 
At that time, the Exchange will file another fee filing to remove the 
test center option for delivery of the Regulatory Element from the Fees 
Schedule.
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    \4\ Available at http://www.cboe.com/publish/RuleFilingsSEC/SR-CBOE-2015-084.pdf.
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2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder applicable to the 
Exchange and, in particular, the requirements of Section 6(b) of the 
Act.\5\ Specifically, the Exchange believes the proposed rule change is 
consistent with the Section 6(b)(5) \6\ 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) \7\ requirement that the rules of 
an exchange not be designed to permit unfair discrimination between 
customers, issuers, brokers, or dealers.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ Id.
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    In particular, the Web-based delivery method for continuing 
education is in the interest of investors and free and open markets. In 
general, Web-based delivery will remove time parameters that exist with 
respect to taking continuing education at testing centers. Having 
additional time to take continuing education may result in better 
learning outcomes, which should enhance investor protection. In 
addition, the option to have Web-based delivery of the Regulatory 
Element of the S106, S201, and S901 Continuing Education Programs at a 
reduced cost lowers barriers to entry and removes impediments to a free 
and open market and national market system by making it easier and less 
costly for Trading Permit Holders to participate in the market. 
Accordingly, the Exchange believes that Web-based delivery of the 
Regulatory Element of the S106, S201, and S901 Continuing Education 
Programs and reducing the costs of continuing education in general are 
goals that are consistent with the Act.

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. As FINRA has stated, the 
proposed rule change is specifically intended to reduce the burdens of 
continuing education on market participants while preserving the 
integrity of the S106, S201, and S901 Continuing Education Programs. In 
general, reduction in cost and removal of barriers to entry encourages 
competition among market participants, particularly in situations where 
such rules are employed universally across the markets. By bringing the 
Exchange's fees structure in line with that of FINRA, the Exchange 
believes it is removing impediments to free and open markets and 
encouraging competition between the Exchange and other markets that use 
the S106, S201, and S901 Continuing Education Programs. Accordingly, 
the Exchange further believes that the proposed rule change will 
relieve burdens on, and otherwise promote competition.

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.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f).
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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-C2-2015-024 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-C2-2015-024. 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

[[Page 63595]]

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-C2-2015-024, and should be 
submitted on or before November 10, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-26521 Filed 10-19-15; 8:45 am]
BILLING CODE 8011-01-P