5598 Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 

7The Commission notes that MIAX also 

submitted a similar proposed rule change to list and 

trade options on shares of certain iShares ETFs. See 

Securities Exchange Act Release No. 72492 (June 

27, 2014), 79 FR 38099 (July 3, 2014) (MIAX–2014– 

30). The Commission similarly designated a longer 

period for Commission action on proceedings to 

determine whether to approve or disapprove that 

proposed rule change as well. See Securities 

Exchange Act Release No. 73856 (December 17, 

2014), 79 FR 77075 (December 23, 2014). 

8See MIAX Rule 402(i)(5)(ii)(B). The Exchange 

represents that each of the Market Vectors ETFs are 

comprised of component securities for which the 

primary market is a single foreign market, and that, 

for each ETF, MIAX does not have a CSSA with its 

foreign counterpart in the applicable foreign 

market. 

9 Id. 

10 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(6)(iii). 

5The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer that has been admitted 

to membership in the Exchange. A Member will 

have the status of a ‘‘member’’ of the Exchange as 

that term is defined in Section 3(a)(3) of the Act. 

Membership may be granted to a sole proprietor, 

partnership, corporation, limited liability company 

or other organization which is a registered broker 

or dealer pursuant to Section 15 of the Act, and 

which has been approved by the Exchange.’’ See 

Exchange Rule 1.5(n). 

6See EDGA Rules 2.5(c)(4) and 11.13; EDGX 

Rules 2.5(c)(4) and 11.13. 

7See supra note 6. 

8See Securities Exchange Act Release No. 71375 

(January 23, 2014), 79 FR 4771 (January 29, 2014) 

(SR–BATS–2013–059; SR–BYX–2013–039). 

9The term ‘‘Qualified Clearing Agency’’ is 

defined as ‘‘a clearing agency registered with the 

Commission pursuant to Section 17A of the Act that 

is deemed qualified by the Exchange.’’ See 

Exchange Rule 1.5(u). 

10The Exchange understands that BZX is to file 

a proposed rule change with the Commission to 

adopt similar changes. 

Register on August 12, 2014. February 

8, 2015, is 180 days from that date, and 

April 9, 2015, is 240 days from that 

date. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the proposed rule change 

so that it has sufficient time to evaluate 

the proposed rule change and whether 

it is consistent with the Act.7 The 

proposed rule change would allow the 

Exchange to list for trading on the 

Exchange options on shares of the 

Market Vectors ETFs without satisfying 

the Exchange’s listing standards, which 

require, in part, that the component 

securities of an index or portfolio of 

securities on which the Exchange 

Traded Fund Shares are based for which 

the primary market is in any one 

country that is not subject to a 

comprehensive surveillance sharing 

agreement do not represent 20% or 

more of the weight of the index.8

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the Act,9

designates April 9, 2015, as the date by 

which the Commission shall either 

approve or disapprove the proposed 

rule change (File No. SR–MIAX–2014– 

39). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–01867 Filed 1–30–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74151; File No. SR–BYX– 

2015–06] 

Self-Regulatory Organizations; BATS 

Y-Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Rules 2.5(c)(4) 

and 11.5 To Harmonize With EDGA and 

EDGX Rules, Its Membership 

Requirements Applicable To Clearing 

Agencies That Clear Transactions for 

Members 

January 27, 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 January 

22, 2015, BATS Y-Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it effective 

upon filing with the Commission. 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 Exchange filed a proposal to 

amend Rules 2.5(c)(4) and 11.15 to 

harmonize its membership requirements 

applicable to clearing agencies that clear 

transactions for Members 5 of the 

Exchange with those set forth under 

EDGX Exchange, Inc. (‘‘EDGX’’) and 

EDGA Exchange, Inc. (‘‘EDGA’’) rules.6

The text of the proposed rule change 

is available at the Exchange’s Web site 

at www.batstrading.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 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 parts 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 

Rules 2.5(c)(4) and 11.15 to harmonize 

its membership requirements applicable 

to clearing agencies that clear 

transactions for Members with those set 

forth under EDGX and EDGA rules.7

Earlier this year, the Exchange and its 

affiliate, BATS Exchange, Inc. (‘‘BZX’’), 

received approval to effect a merger (the 

‘‘Merger’’) of the Exchange’s parent 

company, BATS Global Markets, Inc., 

with Direct Edge Holdings LLC, the 

indirect parent of EDGX and EDGA 

(together with BZX, BYX and EDGX, the 

‘‘BGM Affiliated Exchanges’’).8 In the 

context of the Merger, the BGM 

Affiliated Exchanges are working to 

align certain rules, retaining only 

intended differences between the BGM 

Affiliated Exchanges. As part of this 

effort, the proposal set forth below 

harmonizes Exchange Rules 2.5 and 

11.15 with EDGA and EDGX Rules 2.5 

and 11.13 by no longer requiring that a 

Qualified Clearing Agency 9 be a 

Member in order to clear other 

Member’s transactions executed on the 

Exchange.10

In sum, Rule 2.5(a)(4) currently 

provides that a Member also be a 

member of a Qualified Clearing Agency 

or clear its transactions executed on the 

Exchange through another Member that 

is a member of a Qualified Clearing 

Agency. Rule 11.15(a) currently requires 

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Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 5599 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

13See supra note 6. 

14See supra note 10. 

15 15 U.S.C. 78s(b)(3)(A). 

16 17 CFR 240.19b–4(f)(6)(iii). 

17 17 CFR 240.19b–4(f)(6). 

a Qualified Clearing Agency be a 

Member of the Exchange in order to 

clear transactions on behalf of another 

Member. EDGA and EDGX Rules 

2.5(c)(4) and 11.13(a) do not require 

that: (i) A Qualified Clearing Agency be 

a member in order to clear other 

member’s transactions executed on 

EDGA or EDGX; (ii) that a member be 

a member of a Qualified Clearing 

Agency; or (iii) that a member clear its 

transaction through a member of a 

Qualified Clearing Agency. Rather, 

EDGA and EDGX Rules simply require 

that a member clear transactions 

through a registered clearing agency 

using a continuous net settlement 

system. EDGA and EDGX Rules 11.13(a) 

further state that this requirement may 

be satisfied by direct participation, use 

of direct clearing services, or by entering 

into a correspondent clearing 

arrangement with another member that 

clears trades through such agency. 

As amended, Rules 2.5(a)(4) and 

11.15(a) would be substantially similar 

to EDGA and EDGX rules 2.5(c)(4) and 

11.3(a). Like EDGA and EDGX Rules 

2.5(c)(4), Exchange Rules 2.5(a)(4) 

would require that a Member clear 

transactions through a Qualified 

Clearing Agency using a continuous net 

settlement system. Like EDGA and 

EDGX Rules 11.13(a), amended 

Exchange Rule 11.15(a) would state that 

this requirement may be satisfied by 

direct participation, use of direct 

clearing services, or by entering into a 

correspondent clearing arrangement 

with another member that clears trades 

through such agency. In addition, 

Exchange Rule 11.15(a) would no longer 

require a Qualified Clearing Agency be 

a Member in order to clear another 

Members’ transactions executed on the 

Exchange. 

The Exchange also proposes to add 

new subparagraph (b) to Rule 11.15 

stating that notwithstanding 

subparagraph (a) of Rule 11.15, 

transactions may be settled ‘‘exclearing,’’ provided that both parties to 

the transaction agree. Proposed 

subparagraph (b) to Rule 11.15 would be 

identical to EDGA and EDGX Rules 

11.13(b). The Exchange also proposes to 

renumber the remaining subparagraphs 

of Rule 11.13 accordingly. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 11 and furthers 

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

Act,12 in that it is designed to promote 

just and equitable principles of trade, 

remove impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system, and, in 

general, protect investors and the public 

interest. The Exchange believes that the 

proposed rule change is not designed to 

permit unfair discrimination between 

customers, issuers, brokers or dealers. 

The proposed rule change is identical 

to the existing rules of EDGA and 

EDGX.13 Requiring Qualified Clearing 

Agencies to be Members of the 

Exchange has unreasonably limited the 

ability of Members to clear trades 

through such agencies that are not 

Members when no such restriction is 

contained in the rules of EDGA or 

EDGX. The proposed rule change is, 

therefore, intended to align the 

Exchange’s rules regarding Members 

clearing transaction through a Qualified 

Clearing Agency with that of EDGA and 

EDGX as well as BZX 14 in order to 

provide consistent rules across the BGM 

Affiliated Exchanges. Consistent rules, 

in turn, will simplify the membership 

requirements for clearing agencies that 

are also clear transactions for members 

of the other BGM Affiliated Exchanges. 

The proposed rule change would 

provide greater harmonization between 

the rules of the BGM Affiliated 

Exchanges of similar purpose, resulting 

in greater uniformity and less 

burdensome and more efficient 

regulatory compliance. As such, the 

proposed rule change would foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities and would 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change would not 

impose any burden on competition. The 

Exchange believes that the proposed 

rule changes will not burden 

intramarket competition because all 

Members would be subject to the same 

requirements with regard to clearing 

transactions through non-Member 

registered clearing agencies. The 

proposed rule change is not designed to 

address any competitive issues but 

rather is designed to provide greater 

harmonization among the Exchange, 

BZX, EDGA and EDGX rules of similar 

purpose, resulting in less burdensome 

and more efficient regulatory 

compliance for common members of the 

BGM Affiliated Exchanges. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has 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 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 15 and Rule 19b– 

4(f)(6)(iii) thereunder.16 The Exchange 

provided the Commission with written 

notice of its intent to file the proposed 

rule change, along with a brief 

description and text of the proposed 

rule change, at least five business days 

prior to the date of filing the proposed 

rule change as required by Rule 19b– 

4(f)(6).17

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (1) Necessary or appropriate in 

the public interest; (2) for the protection 

of investors; or (3) 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 proposal 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 No. SR– 

BYX–2015–06 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

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5600 Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3STOs, also known as ‘‘weekly options’’ as well 

as ‘‘Short Term Options’’, are series in an options 

class that are approved for listing and trading on the 

Exchange in which the series are opened for trading 

on any Thursday or Friday that is a business day 

and that expire on the Friday of the next business 

week. If a Thursday or Friday is not a business day, 

the series may be opened (or shall expire) on the 

first business day immediately prior to that 

Thursday or Friday, respectively. STOs are listed 

and traded pursuant to the STO Series Program. For 

STO Series Program rules regarding non-index 

options, see Rule 1000(b)(44) and Commentary .11 

to Rule 1012. For STO Series Program rules 

regarding index options, see Rule 1000A(b)(16) and 

Rule 1101A(b)(vi). 

4See Securities Exchange Act Release No. 73999 

(January 6, 2015), 80 FR 1559 (January 12, 2015) 

(SR–ISE–2014–52) (order approving). 

5See Commentary .11(a) to Rule 1012. 

6See Commentary .11 to Rule 1012. 

7See Commentary .11(e) to Rule 1012. 

8 Id. 

9See Commentary .05(b) to Rule 1012. 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File No. 

SR–BYX–2015–06. 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 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–BYX–2015–06 and should be 

submitted on or before February 23, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–01868 Filed 1–30–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74145; File No. SR–Phlx– 

2015–09] 

Self-Regulatory Organizations; 

NASDAQ OMX PHLX LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change Regarding 

the Short Term Option Series Program 

January 27, 2015. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that, on January 

21, 2015, NASDAQ OMX PHLX LLC 

(‘‘Phlx’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing with the 

Commission a proposal to amend Rule 

1012 (Series of Options Open for 

Trading) to introduce finer $.50 strike 

price intervals in non-index Short Term 

Options with strike prices less than 

$100. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqomxphlx.cchwall

street.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 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 purpose of this proposed rule 

change is to amend Rule 1012 governing 

the Short Term Option (‘‘STO’’) 3 Series 

Program to introduce finer strike price 

intervals for certain STOs. In particular, 

the Exchange proposes to amend 

Commentary .11(e) to Rule 1012 to 

extend $0.50 strike price intervals in 

non-index options to STOs with strike 

prices less than $100 instead of the 

current $75. This proposed change is 

intended to eliminate gapped strikes 

between $75 and $100 that result from 

conflicting strike price parameters 

under the STO Series Program and the 

$2.50 Strike Price Program, as described 

in more detail below. 

This is a competitive filing that is 

based on a recent STO proposal of the 

International Securities Exchange, LLC 

(‘‘ISE’’).4

Under the Exchange’s rules, the 

Exchange may list STOs in up to fifty 

option classes in addition to option 

classes that are selected by other 

securities exchanges that employ a 

similar program under their respective 

rules.5 On any Thursday or Friday that 

is a business day, the Exchange may list 

STO series in designated option classes 

that expire at the close of business on 

each of the next five Fridays that are 

business days and are not Fridays in 

which monthly or quarterly options 

expire.6 These STO series trade in 

$0.50, $1, or $2.50 or greater strike price 

intervals depending on the strike price 

and whether the option trades in dollar 

increments in the related monthly 

expiration.7 Specifically, STOs in nonindex option classes admitted to the 

STO Series Program currently trade in: 

(1) $0.50 or greater intervals for strike 

prices less than $75, or for option 

classes that trade in one dollar 

increments in the related monthly 

expiration option; (2) $1 or greater 

intervals for strike prices that are 

between $75 and $150; and (3) $2.50 or 

greater intervals for strike prices above 

$150.8

The Exchange also operates a $2.50 

Strike Price Program that permits the 

Exchange to select up to sixty options 

classes on individual stocks to trade in 

$2.50 strike price intervals, in addition 

to option classes selected by other 

securities exchanges that employ a 

similar program under their respective 

rules.9 Monthly expiration options in 

classes admitted to the $2.50 Strike 

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