Federal Register / Vol. 80, No. 15 / Friday, January 23, 2015 / Notices 3689 

30See Securities and Exchange Release No. 60711 

(September 23, 2009), 74 FR 49419, 49422 

(September 28, 2009) (Order Granting Partial 

Accelerated Approval of a Proposed Rule Change, 

as Modified by Amendment Nos. 1 and 3 thereto, 

Amending NYSE Arca Rule 6.72 and Expanding the 

Penny Pilot Program). 

31See id. The Commission stated: ‘‘While the 

Commission anticipates that NYSE Arca’s proposed 

expansion of the Pilot Program will contribute to 

further increases in quotation message traffic, the 

Commission believes that NYSE Arca’s proposal is 

sufficiently limited such that it is unlikely to 

increase quotation message traffic beyond the 

capacity of market participants’ systems and disrupt 

the timely receipt of quote information. NYSE Arca 

has proposed to roll out the additional 300 classes 

over time, in groups of 75 classes each quarter 

beginning on October 26, 2009. The Commission 

further notes that a June 2, 2009 sustained message 

traffic peak of 852,350 messages per second 

reported by OPRA is still well below OPRA’s 

current messages per second capacity limit of 

2,050,000. Moreover, NYSE Arca has adopted and 

will continue to utilize quote mitigation strategies 

that should continue to mitigate the expected 

increase in quotation traffic.’’ Id. 

32See supra notes 13–18 and accompanying text. 

33 17 CFR 200.30–3(a)(57). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

that the Penny Pilot Program has 

contributed to an increase in quotation 

message traffic from the options 

markets.30 In approving the extension 

and expansion of the Penny Pilot 

Program in 2009, the Commission 

relied, in part, on the Exchange’s 

representation that it would continue to 

use quote mitigation strategies that 

would continue to mitigate quotation 

traffic sent to OPRA.31

As noted above, the Exchange 

believes that its quote mitigation 

strategy is no longer necessary because: 

(1) The Exchange has incorporated 

select provisions of the OLPP in 

Exchange Rule 6.4A, which the 

Exchange believes limits the number of 

series eligible to be listed; (2) current 

Exchange Rule 6.37B Commentary .01 

removes certain options series from 

market makers’ continuous quoting 

obligations, which the Exchange 

believes reduces the number of quote 

messages that the Exchange sends to 

OPRA; and (3) both the Exchange’s 

systems capacity and OPRA’s systems 

capacity are more than sufficient to 

accommodate any additional increase in 

quote traffic that might be sent to OPRA 

as a result of the deletion of the quote 

mitigation strategy.32 Do commenters 

believe that reliance on the Exchange’s 

current rules and the existing systems 

capacity of the Exchange and OPRA are 

sufficient or insufficient means to 

mitigate quote message traffic from the 

Exchange to OPRA? Please explain. 

2. What are commenters’ views on the 

impact, if any, that might result from the 

Exchange’s proposal to remove its 

current quote mitigation plan as 

provided in Commentary .03 to 

Exchange Rule 6.86? For example, what 

are commenters’ views on the impact 

the Exchange’s proposal would have, if 

any, on OPRA’s system capacity? Please 

explain. Or, what are commenters’ 

views on the impact the Exchange’s 

proposal would have on market 

participants using OPRA and/or the 

Exchange’s quotation message feeds? 

Please explain. 

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– 

NYSEArca–2014–117 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–NYSEArca–2014–117. 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 

filings 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– 

NYSEArca–2014–117 and should be 

submitted on or before February 13, 

2015. Rebuttal comments should be 

submitted by February 27, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.33

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01108 Filed 1–22–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74078; File No. SR– 

NASDAQ–2015–004] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Membership Application 

January 16, 2015. 

Pursuant to Section 19(b)(1) of the 

Securities Act of 1934 (‘‘Act’’),1 and 

Rule 19b–4 thereunder,2 notice is 

hereby given that on January 5, 2015, 

The NASDAQ Stock Market LLC 

(‘‘NASDAQ’’ or ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III, below, which Items 

have been prepared by NASDAQ. 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 

NASDAQ proposes to amend Rule 

1013 titled ‘‘New Member Application’’ 

to include an expedited application 

process for firms that are already 

approved members of NASDAQ OMX 

PHLX LLC (‘‘PHLX’’). 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://

www.nasdaq.cchwallstreet.com, at the 

principal office of the Exchange, 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. 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, 


tkelley on DSK3SPTVN1PROD with NOTICES
3690 Federal Register / Vol. 80, No. 15 / Friday, January 23, 2015 / Notices 

3 15 U.S.C. 78f(b). 

4 15 U.S.C. 78f(b)(5). 

5Today, FINRA conducts the new member 

application reviews for NASDAQ and BX pursuant 

to a 17d–2 agreement and Regulatory Services 

Agreement. These application reviews are 

administered by FINRA and subject to NASDAQ’s 

final review and decision. 6 15 U.S.C. 78s(b)(3)(A)(ii). 

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 purpose of the proposed rule 

change is to amend NASDAQ Rule 

1013(a)(5), entitled Applicants That Are 

Members of an Association or Another 

Exchange, to permit an expedited 

review for new member applications 

seeking NASDAQ membership provided 

those applicants are approved members 

of PHLX. 

Specifically, Exchange Rule 

1013(a)(5)(C) currently permits the 

Exchange to accept applicants that 

gained membership at Financial 

Industry Regulatory Authority 

(‘‘FINRA’’) or NASDAQ OMX BX, Inc. 

(‘‘BX’’) when considering a NASDAQ 

new member application. Applicants 

who are approved members of FINRA or 

BX are eligible for an abbreviated waivein application eliminating the 

submission and review of duplicative 

supplemental material that has already 

been submitted and reviewed in 

connection with a FINRA or BX new 

member application. 

At this time, the Exchange proposes to 

extend the abbreviated application 

process already in place for approved 

FINRA and/or BX members to PHLX 

members. The Exchange notes that the 

PHLX qualifications are the same as 

those applicable to NASDAQ 

membership requirements. PHLX 

approved members seeking NASDAQ 

membership will be required to submit 

a fully executed Waive-In Membership 

Application and Membership 

Agreement but will not be required to 

submit any duplicative documentation 

that was previously provided as part of 

the PHLX application. These PHLX 

members would still be required to 

provide additional information if there 

has been a material change in status 

from its [sic] original application with 

PHLX. Applicants will be required to 

attest that the information provided as 

part of previously conducted new 

membership review remains complete 

and accurate. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act 3 in general, and furthers the 

objectives of Section 6(b)(5) of the Act 4

in particular, in that it is 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 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. 

Today, the NASDAQ Membership 

Department performs similar functions 

when reviewing new member 

applications for NASDAQ, BX and 

PHLX.5 The Membership Department 

reviews: Applicant business plans, 

clearing arrangements, FOCUS reports, 

organizational charts, and written 

supervisory procedures for applicants 

desiring membership in any of the 

aforementioned markets. These 

membership requirements include, but 

are not limited to, review of registration 

as a Broker Dealer with the Commission, 

a net capital review, qualification of 

associated persons and examining 

written supervisory procedures. The 

same material is considered for each 

new member review conducted by 

FINRA on behalf of NASDAQ. 

NASDAQ believes that this proposed 

amendment is consistent with its 

current practices today when reviewing 

applications for members of BX and 

FINRA. NASDAQ proposes this rule 

change to harmonize its affiliated 

exchanges’ rules to provide applicants 

similar application procedures on its 

markets. The PHLX new member review 

is consistent with the NASDAQ new 

member review. NASDAQ believes that 

applicants that are members of PHLX 

are eligible for the waive-in process 

when seeking membership on NASDAQ 

similar to BX and FINRA members. 

NASDAQ believes that the proposed 

rule change would eliminate the 

duplicate review for prospective 

NASDAQ applicants that were approved 

for membership by PHLX. The waive-in 

process will promote efficiency with 

respect to the Exchange’s membership 

review process and reduce the burden 

on applicants that have already been 

approved for membership on PHLX by 

reducing the duplicative information 

and documentation required to be 

provided to the Exchange. As a result, 

Exchange staff will be able to focus its 

regulatory efforts on reviewing any 

material changes or new information 

that may affect the applicant’s eligibility 

for Exchange membership. 

This proposed rule change does not 

affect the protection of investors as 

NASDAQ will maintain the vigorous 

membership review that is conducted 

today when reviewing PHLX members 

applications. 

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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed waive-in process for approved 

PHLX members will not impose any 

burden on competition, but rather it will 

remove unnecessary burdens that 

currently exist for PHLX member 

applicants seeking NASDAQ 

membership. The proposal will 

eliminate the redundant review process 

for PHLX members that currently does 

not exist for FINRA and BX members 

applying to become NASDAQ members. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

No written comments were either 

solicited or received. 

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)(ii) of the Act.6 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 shall 

institute proceedings to determine 

whether the proposed rule 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 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 15 / Friday, January 23, 2015 / Notices 3691 

7 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3As defined under Commodity Futures Trading 

Commission Regulation 39.33(c). 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2015–004 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549. 

All submissions should refer to File 

Number SR–NASDAQ–2015–004. 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 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– 

NASDAQ–2015–004 and should be 

submitted on or before February 13, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01066 Filed 1–22–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74084; File No. SR–ICC– 

2015–002] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change To Revise the 

ICC Treasury Operations Policies and 

Procedures 

January 16, 2015. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder 2

notice is hereby given that on January 6, 

2015, ICE Clear Credit LLC (‘‘ICC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared primarily by ICC. 

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 purpose of the proposed rule 

change is to revise the ICC Treasury 

Policies and Procedures to provide for 

the use of a Federal Reserve Account, to 

provide for the use of a committed repo 

facility, and to provide for engagement 

of outside investment managers to 

invest guaranty fund and margin cash 

pursuant to ICC’s USD and Euro 

investment guidelines. These revisions 

do not require any changes to the ICC 

Clearing Rules. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, ICC 

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. ICC has prepared 

summaries, set forth in sections A, B 

and C below, of the most significant 

aspects of these statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The proposed revisions to ICC’s 

Treasury Operations Policies and 

Procedures are intended to provide for 

the use of a Federal Reserve Account, to 

provide for the use of a committed repo 

facility, and to provide for USD and 

Euro investment guidelines for use by 

outside investment managers. 

ICC believes such revisions will 

facilitate the prompt and accurate 

clearance and settlement of securities 

transactions and derivative agreements, 

contracts, and transactions for which it 

is responsible. The proposed revisions 

are described in detail as follows. 

ICC has revised its Treasury 

Operations Policies and Procedures to 

demonstrate how ICC would utilize a 

Federal Reserve Account for cash and 

collateral management. ICC has applied 

for a Federal Reserve Account to hold 

both USD cash and US Treasuries. In its 

application, ICC requested separate 

accounts for house origin funds and 

customer origin funds. Should ICC be 

approved for a single account origin, 

ICC will utilize the Federal Reserve 

Accounts to hold house collateral, and 

customer collateral will continue to be 

held in commercial banks. Should ICC 

be approved for an additional account 

origin, ICC will utilize the second origin 

to hold customer collateral at the 

Federal Reserve. With respect to the 

potential utilization of a Federal Reserve 

cash Account, ICC plans to use this 

account as a depository account, in 

which cash will be consolidated on a 

daily basis and held overnight. ICC will 

continue using its commercial bank 

accounts for Clearing Participant money 

movements, and the net excess/deficit 

will be deposited to/withdrawn from 

the Federal Reserve cash Account as 

necessary. With respect to potential 

utilization of a Federal Reserve 

securities Account, ICC would use this 

account as a custody account to hold US 

Treasuries deposited by Clearing 

Participants with ICC’s commercial 

banks. 

Additionally, ICC has revised its 

Treasury Operations Policies and 

Procedures to provide for use of a 

committed repurchase (‘‘repo’’) facility. 

ICC has established a committed repo 

facility that will allow ICC to consider 

US Treasury securities deposited at ICC 

as an additional qualifying liquidity 

resource.3 The facility can be used to 

convert US Treasuries into cash when 

the sale of pledged securities needed for 

liquidity cannot be settled on a timely 

or same-day basis. Specifically, the 

facility can be used to generate 

temporary liquidity through the sale and 

agreement to repurchase securities 

pledged by ICC Clearing Participants to 

satisfy their Initial Margin and Guaranty 


tkelley on DSK3SPTVN1PROD with NOTICES