Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 5593 

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. 

investor.’’ The public is invited to 

submit written statements for the 

meeting, including any comments. 

DATES: The public meeting will be held 

on Tuesday, February 17, 2015. Written 

statements should be received on or 

before Friday, February 13, 2015. 

ADDRESSES: Written statements may be 

submitted by any of the following 

methods: 

Electronic Statements 

• Use the Commission’s Internet 

submission form (http://www.sec.gov/

info/smallbus/acsec.shtml); or 

• Send an email message to rulecomments@sec.gov. Please include File 

Number 265–27 on the subject line; or 

Paper Statements 

Send paper statements in triplicate to 

Brent J. Fields, Federal Advisory 

Committee Management Officer, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. All submissions should 

refer to File No. 265–27. This file 

number should be included on the 

subject line if email is used. To help us 

process and review your statement more 

efficiently, please use only one method. 

The Commission will post all 

statements on the Advisory Committee’s 

Web site at http://www.sec.gov./info/

smallbus/acsec.shtml. 

Statements also will be available for 

Web site viewing and printing in the 

Commission’s Public Reference Room, 

100 F Street NE., Room 1580, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. All statements 

received will be posted without change; 

we do not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. 

FOR FURTHER INFORMATION CONTACT: Julie 

Z. Davis, Senior Special Counsel, at 

(202) 551–3460, Office of Small 

Business Policy, Division of Corporation 

Finance, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–3628. 

SUPPLEMENTARY INFORMATION: In 

accordance with Section 10(a) of the 

Federal Advisory Committee Act, 5 

U.S.C.–App. 1, and the regulations 

thereunder, Keith F. Higgins, Designated 

Federal Officer of the Committee, has 

ordered publication of this notice. 

Dated: January 28, 2015. 

Brent J. Fields, 

Committee Management Officer. 

[FR Doc. 2015–01898 Filed 1–30–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold an Open Meeting 

on Wednesday, February 4, 2015 at 

10:00 a.m., in the Auditorium, Room L– 

002. 

The subject matter of the Open 

Meeting will be: 

• The Commission will consider 

whether to approve the 2015 budget of 

the Public Company Accounting 

Oversight Board and will consider the 

related annual accounting support fee 

for the Board under Section 109 of the 

Sarbanes-Oxley Act of 2002. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: The Office of the Secretary at 

(202) 551–5400. 

Dated: January 28, 2015. 

Lynn M. Powalski, 

Deputy Secretary. 

[FR Doc. 2015–01955 Filed 1–29–15; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74152; File No. SR–BATS– 

2015–07] 

Self-Regulatory Organizations; BATS 

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 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BATS’’) 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

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5594 Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 

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 BYX is to file 

a proposed rule change with the Commission to 

adopt similar changes. 

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). 

Earlier this year, the Exchange and its 

affiliate, BATS Y-Exchange, Inc. 

(‘‘BYX’’), 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 

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 BYX 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, 

BYX, 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 

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Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 5595 

17 17 CFR 240.19b–(f)(6). 

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 Chapter 1, Section 1(a)(59) and Chapter 

IV, Supplementary Material .07 to Section 6. For 

STO Series Program rules regarding index options, 

see Chapter XIV, Section 2(p) and Chapter XIV, 

Section 11(h). 

4See Securities Exchange Act Release No. 73999 

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

(SR–ISE–2014–52) (order approving). 

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 rulecomments@sec.gov. Please include File 

No. SR–BATS–2015–07 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 20549–1090. 

All submissions should refer to File 

No. SR–BATS–2015–07. 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–BATS–2015–07 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. 2015–01870 Filed 1–30–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74146; File No. SR– 

NASDAQ–2015–005] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market 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 thereunder,2

notice is hereby given that, on January 

21, 2015. The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or ‘‘Exchange’’) 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 

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 proposes to amend 

Chapter IV, Section 6 (Series of Options 

Contracts 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 at http://

nasdaq.cchwallstreet.com/, at the 

Exchange’s principal office, 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 Chapter IV, Section 

6 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 Chapter IV, 

Supplementary Material .07(e) to 

Section 6 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 

mstockstill on DSK4VPTVN1PROD with NOTICES