Document ID: SEC-2009-0270-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: C2 Options Exchange, Inc.
Posted Date: 2009-03-03T05:00Z

[Federal Register: March 3, 2009 (Volume 74, Number 40)]
[Notices]               
[Page 9322-9323]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03mr09-130]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59441; File No. 10-191]

 
C2 Options Exchange, Incorporated; Notice of Filing of 
Application for Registration as a National Securities Exchange Under 
Section 6 of the Securities Exchange Act of 1934

February 24, 2009.
    On January 21, 2009, C2 Options Exchange, Incorporated (``C2'') 
submitted to the Securities and Exchange Commission (``Commission'') a 
Form 1 application under the Securities Exchange Act of 1934 
(``Exchange Act''), seeking registration as a national securities 
exchange under Section 6 of the Exchange Act. The Commission is 
publishing this notice to solicit comments on C2's Form 1. The 
Commission will take these comments into consideration in making its 
determination about whether to grant C2's request to be registered as a 
national securities exchange. The Commission shall grant such 
registration if it finds that the requirements of the Exchange Act and 
the rules and regulations thereunder with respect to C2 are 
satisfied.\1\
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    \1\ 15 U.S.C. 78s(a).
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    C2's Form 1 provides detailed information on its proposed structure 
and how it proposes to satisfy the requirements of the Exchange Act. In 
particular, C2 would be owned by its parent company, the Chicago Board 
Options Exchange, Incorporated (``CBOE''), but would operate as a 
separate self-regulatory organization under its own exchange license. 
The incorporator of C2 would appoint C2's initial Board of Directors, 
which would be comprised of the same individuals who are then serving 
as the board of directors of CBOE. As specified in the proposed 
Certificate of Incorporation, shortly after trading commences, C2 would 
undertake a petition process by which Trading Permit Holders could 
elect Representative Directors to the Board.
    Access to C2 would be available through trading permits. All CBOE 
members in good standing would be eligible to receive a C2 trading 
permit upon completion of a streamlined application process, while non-
CBOE members could apply for a C2 trading permit in a manner similar to 
the current process for firms applying for membership on CBOE.
    C2 would operate an all-electronic marketplace for the trading of 
listed options and would not maintain a physical trading floor. 
Liquidity on C2 would be derived from orders to buy and orders to sell 
submitted electronically by trading permit holders or their sponsored 
participants from remote locations, as well as from market makers, 
which would have certain affirmative and negative market making 
obligations.
    C2's Form 1 is available at the Commission's Public Reference Room 
and http://www.sec.gov. Interested persons are invited to submit 
written data, views, and arguments concerning C2's Form 1, including 
whether C2's application is consistent with the Exchange Act. Among 
other things, the Commission requests comments on C2's proposed 
governance and Board composition. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/other.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number 10-191 on the subject line.

Paper Comments

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

All submissions should refer to File Number 10-191. This file number

[[Page 9323]]

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/other.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to C2's Form 1 filed with the Commission, and 
all written communications relating to the application 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 inspection and copying 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. 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 10-191 and should be submitted 
on or before April 17, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\2\
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    \2\ 17 CFR 200.30-3(a)(71)(i).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-4426 Filed 3-2-09; 8:45 am]

BILLING CODE 8011-01-P