Document ID: SEC-2011-0069-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: C2 Options Exchange, Inc.
Posted Date: 2011-01-14T05:00Z

[Federal Register Volume 76, Number 10 (Friday, January 14, 2011)]
[Notices]
[Pages 2735-2737]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-680]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63680; File No. SR-C2-2011-002]

Self-Regulatory Organizations; C2 Options Exchange, Incorporated; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Amend the C2 Fees Schedule and C2 Rule 3.1

January 7, 2011.
    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 January 3, 2011, C2 Options Exchange, Incorporated (the 
``Exchange'' or ``C2'') filed with the Securities and Exchange 
Commission (the ``Commission'') the

[[Page 2736]]

proposed rule change as described in Items I and II 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

    C2 proposes to amend proposes [sic] to [sic] amend [sic] its Fees 
Schedule and C2 Rule 3.1(e) regarding the assessment of Trading Permit 
fees and bandwidth packet fees. 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.

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
    C2 proposes to amend its Rules and Fees Schedule to assess access 
fees and bandwidth packet fees during the first week of the following 
month rather than the first day of the effective month. Specifically, 
C2 proposes to incorporate language regarding the manner in which these 
fees will be assessed into its Fees Schedule and to amend C2 Rule 
3.1(e) to provide that that [sic] the entire fee for a Trading Permit 
shall be due and payable in accordance with the Exchange Fee Schedule 
in place of the current language of the Rule under which fees for a 
Trading Permit shall be due and payable in full on or before the first 
day on which the Trading Permit is effective. The proposed assessment 
of the referenced fees is identical to the process in place at the 
Chicago Board Options Exchange, Incorporated (``CBOE''). C2 also 
proposes to make a technical change to the Section 3 of the C2 Fees 
Schedule to remove language referencing that access fees would not be 
assessed for October 2010.
    C2 imposes access fees for the two types of Trading Permits 
available for use on C2, the Market-Maker Permit and the Electronic 
Access Permit. C2 is proposing to add language to the Fees Schedule to 
describe the assessment of the access fees and modify the way in which 
access fees are currently assessed. Specifically, C2 is proposing to 
include language reflecting that access fees are non-refundable and 
will be assessed through the integrated billing system during the first 
week of the following month.\3\ If a Trading Permit is issued during a 
calendar month after the first trading day of the month, the access fee 
for the Trading Permit for that calendar month is prorated based on the 
remaining trading days in the calendar month. Trading Permits will be 
renewed automatically for the next month unless the Trading Permit 
Holder submits by the 25th day of the prior month (or the preceding 
business day if the 25th is not a business day) a written 
notification\4\ to cancel the Trading Permit effective at or prior to 
the end of the applicable month.\5\
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    \3\ Thus, Trading Permit Fees for access during January 2011 
will be assessed through the integrated billing system during the 
first week of February 2011.
    \4\ Written notification may be submitted to the Registration 
Services Department by e-mail to tradingpermits@cboe.com or by other 
means of written notification, including, but not limited to, a 
hand-delivered letter or facsimile to the Registration Services 
Department.
    \5\ Thus, if a Trading Permit Holder has a Trading Permit in 
January 2011, notice must be provided by January 25, 2011 if the 
Trading Permit Holder would like to terminate the Trading Permit by 
the end of January 2011 and not be assessed the applicable Trading 
Permit Fee for February 2011.
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    C2 offers two kinds of bandwidth packets for use to supplement the 
standard bandwidth allocation provided with each access permit, the 
Quoting and Order Entry Bandwidth Packet and the Order Entry Bandwidth 
Packet. Similar to the access fees, C2 currently assesses fees for 
supplemental bandwidth packets on the first day of each month. C2 is 
proposing to add language to the Fees Schedule to describe the 
assessment of bandwidth packet fees and modify the way in which the 
bandwidth packet fees are assessed. Specifically, C2 is proposing to 
include language reflecting that bandwidth packet fees are non-
refundable and will be assessed through the integrated billing system 
during the first week of the following month. If a bandwidth packet is 
issued during a calendar month after the first trading day of the 
month, the bandwidth packet fee for that calendar month is prorated 
based on the remaining trading days in the calendar month. Bandwidth 
packets will be renewed automatically for the next month unless the 
Trading Permit Holder submits by the last business day of the prior 
month written notification to cancel the bandwidth packet effective at 
or prior to the end of the applicable month.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Securities Exchange Act of 1934 (``Act''),\6\ in general, and furthers 
the objectives of Section 6(b)(4) \7\ of the Act in particular, in that 
by increasing the efficiency of the billing process and putting in 
place a process that is consistent with the process in place at CBOE 
and that is familiar to common trading permit holders, it is designed 
to provide for the equitable allocation of reasonable dues, fees, and 
other charges among C2 Trading Permit Holders and other persons using 
Exchange facilities.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(4).
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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 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

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change is designated by the Exchange as 
establishing or changing a due, fee, or other charge, thereby 
qualifying for effectiveness on filing pursuant to Section 
19(b)(3)(A)(ii) \8\ of the Act and subparagraph (f)(2) of Rule 19b-4 
\9\ thereunder. At any time within 60 days of the filing of such 
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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).

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[[Page 2737]]

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 e-mail to rule-comments@sec.gov. Please include File Number 
SR-C2-2011-002 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-C2-2011-002. This file 
number should be included on the subject line if e-mail 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 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-C2-2011-002 and should be 
submitted on or before February 4, 2011.

    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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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-680 Filed 1-13-11; 8:45 am]
BILLING CODE 8011-01-P