Document ID: SEC-2012-0495-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: C2 Options Exchange, Inc.
Posted Date: 2012-03-29T04:00Z

[Federal Register Volume 77, Number 61 (Thursday, March 29, 2012)]
[Notices]
[Pages 19041-19042]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-7525]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66651; File No. SR-C2-2012-010]

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

March 23, 2012.
    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 March 19, 2012, 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 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 a number of its application-related 
fees, as listed below:

------------------------------------------------------------------------
                                                     Current    Proposed
                        Fee                            fee      new fee
                                                      amount     amount
------------------------------------------------------------------------
Application Fee (Organizations)...................     $4,000     $5,000
Application Fee (Sole-Proprietors)................      2,500      3,000
Engage in Customer Business.......................      2,500      3,000
Associated Person.................................        350        500
Renewal (Organizations)...........................      2,000      2,500
Statutory Disqualification........................      2,750      5,000
Fingerprint.......................................         50         60
------------------------------------------------------------------------

The costs of processing these applications and activities have 
increased, and the Exchange therefore

[[Page 19042]]

proposes increasing the fees in order to recoup such costs. Further, 
these changes will make these fee amounts equivalent to corresponding 
fees on the Chicago Board Options Exchange, Incorporated (``CBOE'').\3\
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    \3\ See CBOE Fees Schedule, Section 11.
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    The Exchange also proposes waiving Renewal fees for a six-month 
period beginning on April 1, 2012. The Renewal fee is assessed to 
organizations and sole proprietorships that were once C2 Trading Permit 
Holders but gave up their trading permits, and now want to return. The 
Exchange proposes waiving the Renewal fee for a six-month period 
beginning on April 1, 2012 in order to provide an incentive to former 
C2 Trading Permit Holders to return to C2.
    The proposed changes are to take effect April 1, 2012.
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.\4\ Specifically, the Exchange believes the proposed rule change is 
consistent with Section 6(b)(4) of the Act,\5\ which provides that 
Exchange rules may provide for the equitable allocation of reasonable 
dues, fees, and other charges among its Trading Permit Holders and 
other persons using its facilities. The proposed increases in TPH 
Application fees are reasonable because such increases are necessary to 
cover the increased costs of processing such applications and 
activities. The proposed increases in TPH Application fees are 
equitable and not unfairly discriminatory because they apply equally to 
all qualifying market participants. Further, these changes will make 
these fee amounts equivalent to corresponding fees on CBOE.\6\
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(4).
    \6\ See Note 3.
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    The proposed waiver of the Renewal fees for a six-month period 
beginning on April 1, 2012 is reasonable because it will permit former 
C2 Trading Permit Holders to avoid having to pay a fee they would 
otherwise have to pay to return to C2. The proposed waiver of the 
Renewal fees for a six-month period beginning on April 1, 2012 is 
equitable and not unfairly discriminatory because it will apply equally 
to all former C2 Trading Permit Holders who wish to return to C2. 
Moreover, this waiver will encourage former C2 Trading Permit Holders 
to return to C2, which will in turn bring greater liquidity and more 
trading opportunities for all 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.

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) \7\ of the Act and paragraph (f) of Rule 19b-4 \8\ 
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.
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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-C2-2012-010 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-C2-2012-010. 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 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 No. SR-C2-2012-010 and should be 
submitted on or before April 19, 2012.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-7525 Filed 3-28-12; 8:45 am]
BILLING CODE 8011-01-P